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Trade Statistics for February 2024 (South African Revenue Service)
South Africa recorded a preliminary trade balance surplus of R14.0 billion in February 2024. This surplus is attributable to exports of R161.8 billion and imports of R147.8 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN). On a year-on-year basis, export flows for February 2024 were 7.5% higher compared to the R150.6 billion recorded in February 2023, whilst import flows were 5.1% higher having increased from R140.6 billion in February 2023 to R147.8 billion in the current period.
Association expects higher export volumes across all citrus fruits (Engineering News)
As the citrus export season starts this month, the Citrus Growers’ Association of Southern Africa (CGA) is confident that 37.9-million 15 kg cartons of lemons will be exported to key markets, which is an increase of 7% year-on-year. The increase in lemon and other citrus exports is testament to the resilience of South African citrus growers, producing more citrus under challenging circumstances including high inputs costs, loadshedding and deteriorating public infrastructure, the CGA states. The association also expects higher export volumes for oranges, particularly a 4% year-on-year increase in Navel orange exports to 25.6-million 15 kg cartons.
Overall, the quality of fruit for export this season looks to be excellent, despite possible smaller sizes of fruit coming from the Northern growing regions of the country owing to dry conditions, the association points out. In the 2023 export season, citrus growers packed 165.1-million 15 kg cartons for delivery to global markets, which marked an increase of 800 000 cartons compared with 2022. The CGA is positive that by working together, industry role-players can realise the targeted export of 200-million cartons a year in the next four years, and possibly 260-million cartons a year by 2032.
The association warns, however, that freight logistics group Transnet will have to ensure there are no delays in expanding private sector involvement in port logistics, as current port congestion can imperil the citrus export economy. The CGA also warns that, while export volumes are likely to increase, it does not automatically mean an increase in profitability or the viability of many citrus farms, given the steep prices of input costs across the value chain and other severe challenges that remain.
Related: Durban Container Terminal receives ten haulers before citrus season start (Engineering News)
African food sustainability needs greener production, less waste, PwC study shows (Engineering News)
Greener food production methods and the avoidance of food waste are required to future-proof Africa’s food supply and to meet the expected future demand for nutrition in a sustainable way, says professional services firm PwC in its 'The sustainable food revolution: Future-proofing the world’s food supply' report.
Africa, and the rest of the world, is facing a food crisis. Food shortages caused by supply chain disruptions emanating from various events across the world have amplified the long-term challenges to the sustainability of global food production, including population growth, climate change, and increased reliance on resource-intensive farming, the report shows.
Sustainability concerns are increasingly being understood and recognised across the continent, with food producers and their partners beginning to look at new sustainable agricultural practices. There is also a shift, with regulators beginning to shape new requirements, alongside consumers calling for change, PwC Africa says.
BAT South Africa scales down delivery supply chain as illicit trade hits record highs (Bizcommunity)
BAT South Africa (Batsa) has scaled-down its direct retail product distribution and delivery operations in the country, as the company continues to see volume declines as a result of heightened illicit trade. Until now, Batsa has had substantial contracts in place with third-party logistics and security companies to safely deliver its products directly to retail stores. However, these contracts have now been discontinued, with an estimated 500 jobs in the security and logistics part of the Company’s value chain being impacted.
This move significantly reduces Batsa’s need for logistics and security services from its external suppliers, impacting the broader value chain attached to the business. Further, the changes have impacted approximately 20 permanent Batsa employees.
“The decision to stop direct deliveries to lower-volume retailers is an unfortunate consequence of the increasing illicit trade in tobacco products, which has continued since the Covid-19 tobacco ban. Our internal estimates now show that illicit trade now accounts for more than 70% of all cigarettes consumed in the country – leaving the legal market with less than a 30% market share,” said Johnny Moloto, area head of corporate and regulatory affairs for BAT Sub-Saharan Africa.
Prioritizing Angolan Agriculture to Unlock Economic Diversification (World Bank)
Despite its vast arable land and abundant water resources, Angola still imports most of its food. In 2022, according to figures from the National Bank, Angola spent around $3 billion on food imports. In the last five years, however, the Government of Angola has prioritized the agricultural sector and has been promoting agribusiness in view of reducing its reliance on external markets for food supply.
One such initiative is the Angola Commercial Agriculture Development Project (PDAC), co-financed by the World Bank and the French Development Agency. The project aims to incentivize bank lending to agriculture by helping producers and Small and Medium Enterprises (SMEs) prepare and finance agriculture investments, providing the needed technical assistance, grants, and de-risking through partial credit guarantees. The support is helping the transition from subsistence to a more market-oriented, competitive agriculture sector in the country.
New World Bank Financing to Boost Safety and Efficiency of Tanzania’s Key Railway Line (World Bank)
A vital railway segment linking Tanzania’s capital, Dar es Salaam, to Isaka is set for major improvements benefitting nearly 900,000 people thanks to newly approved financing from the International Development Association* (IDA).
The $200 million financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment. Apart from strengthening the infrastructure and supporting transport studies, the project is focused on strengthening the climate resilience of the Kilosa-Gulwe-Igandu section, providing operational and institutional support, and supporting emergency response measures.
“While the country’s transportation network is extensive, there are persistent bottlenecks in terms of maintenance and capacity that are limiting its full use,” said Nathan Belete, World Bank Country Director. “This investment will directly address the bottlenecks in the rail network to enhance efficiency, capacity, and competitiveness so as to maximize Tanzania’s unique position to facilitate regional connectivity.”
IMF Executive Board Concludes 2023 Article IV Consultation with Algeria
The Algerian economy was still emerging from the Covid pandemic when spillovers from Russia’s war in Ukraine and recurrent droughts pushed up inflation, while high international hydrocarbon prices boosted government revenue and exports.
The Algerian economy is estimated to have grown by 4.2 percent in 2023, a robust performance owing to a rebound in hydrocarbon production and strong performance in the industry, construction, and service sectors. The external position remained solid with a current account surplus for the second year in a row. However, inflation pressures persisted (primarily due to high food prices) and monetary policy remained accommodative.
Medium-term economic prospects hinge on efforts to diversify the economy and the ability to attract private investment, and are subject to several risks. Risks on the downside include stubborn inflation, volatility in international hydrocarbon prices, fiscal risks from contingent liabilities, large budgetary financial needs, and rising public debt. Extreme climate events would affect the economy and the budget while a disorderly energy transition is a longer-term risk. On the upside, sustained, bold, and deep structural reforms and resolute efforts to diversify the economy, improve the business climate, attract investment, and tap new export markets could spur growth and job creation further.
Ghana Ports to rollout Maritime Single Window Initiative (Norvanreports)
Plans are far advanced for the rollout of the maritime single window program intended to facilitate vessel clearance at Ghana’s ports. The digital platform will incorporate the activities of shipping lines and regulatory agencies and enable them share information so far as the clearance of vessels at the port is concerned.
This is in line with the International Maritime Organisation’s Annex to the Facilitation (FAL) Convention which makes the single window for data exchange mandatory in ports around the world. The Corporate IT Manager at GPHA, Francis Donkor highlighted the service offerings of this platform, distinct from the Integrated Customs Management System used for cargo clearance.
“Maritime single window really is about the vessel clearance, it’s not focusing on cargo which the other single window actually focuses on, this is about vessel. Before the vessel comes to our waters, it ought to be cleared. Before the vessel even docks at our ports, it ought to be cleared. Before we even start working on the vessel, that vessel have to be cleared by certain authorities. So we are building a platform that will enable all the stakeholders be it the shipping agents, the regulatory authorities, to share information and share files. That really is going to facilitate the maritime trade in Ghana.”
Nigeria to almost triple energy prices, keep subsidy for poor (Norvanreports)
Nigeria plans to almost triple energy prices within weeks, people in the presidency with knowledge of the matter said, in a bid to attract new investment and slash about $2.3 billion spent to cap tariffs.
Nigeria’s economy has been hobbled by the lack of power supply while an increasing subsidy burden has weighed on government finances, diverting capital from building roads and spending on health care. With the latest move, President Bola Tinubu wants to cut down on price distortions, which haven’t ended despite breaking the state-owned power firm into 11 distribution companies and six generation firms and selling them to investors.
Afreximbank to offer Supply Chain Finance in Nigeria in partnership with Sterling Bank (Afreximbank)
African Export-Import Bank (Afreximbank) has partnered with Sterling Bank to introduce the innovative supply chain finance product ‘Payables Finance’, in Nigeria. This product, branded as ‘Afreximbank Tradelink,’ is one of Afreximbank’s digital offerings under the umbrella of the Africa Trade Gateway (ATG). ATG provides African corporates and commercial banks with relevant digital tools to access market information, connect with buyers and sellers across the continent for efficient marketing and procurement, facilitate Know Your Customer (KYC) processes, and promote trade payments between African countries in local currencies.
Payables Finance enables suppliers to access financing from the banking system by obtaining early payment for invoices which have been approved for payment by their corporate buyers. The buyers continue to receive trade credit from the suppliers, and the suppliers finance their working capital through the early payment received, enabling them to grow their business.
Payables Finance is the fastest growing trade finance product globally and there is an enormous opportunity for African businesses to benefit from it.
Other regional news: EU stepping-up trade, investments in West Africa (Ghana Business News)
Road map for new EAC financing mechanism beckons (The Citizen)
A road map for a new financing mechanism for the East African Community (EAC) budget is finally in sight. Recommendations made by experts will be discussed at a ministerial meeting next month before the matter is escalated to higher authorities. “A modality for implementation has been agreed upon at a recent meeting held in Dar es Salaam,” said Deng Alor Kuol, the EAC Council of Ministers chairperson.
A hybrid model of financing the EAC budget was recommended by the ministers of Finance way back in 2021 following directives from the Heads of State. Under the model, 65 percent of the budget is to be contributed equally by all the partner states; they are eight now. Another 35 percent of the total budget is to be assessed based on partner states’ average nominal GDP per capita for the previous five years.
How EAC can boost exports to rest of Africa (The Citizen)
The East African Community (EAC) bloc has been urged to aggressively invest in import substitution industries (ISIs) to promote exports. This will give the region, which trades more with the rest of the world than Africa, an edge in intra-African trade. Increased exports through local manufacturing would additionally reduce existing trade gaps from soaring imports.
These are among the recommendations made by a just concluded study which examined trade implications for the bloc under the African Continental Free Trade Area (AfCFTA) agreement. The study by the East African Business Council (EABC), titled Study on Opportunities and Threats of the African Continental Free Trade Area to the East Africa Community, urged the EAC member countries to complement ISIs by embracing various AfCFTA instruments.
Those already operational include Pan African Payment and Settlement System (PAPSS) but which is yet to be accessible to some partner states. Intensive investment in the EAC manufacturing sector would also enable the region to promote value addition and product diversification
The study revealed untapped trade potential between the EAC countries which, it says, needs to be leveraged following AfCFTA tariff liberalisation. It was found out that the EAC partner states import more from the rest of Africa than they export, creating a trade gap that presents an opportunity that needs to be addressed. “The business community in EA should focus their production on goods that EAC and the rest of Africa countries source from the rest of the world,” the report said.
On average, 80 percent of EAC countries exports went to the rest of the world and consisted of mainly primary products. On the other hand, 81 percent of their (EAC states) imports came from the rest of the world and largely consisted of secondary products. The report said only 20 percent of EAC countries’ exports and 19 percent of imports came from the rest of Africa and were mainly primary products.
Related: Lobby: Kenya could miss out on continental trade deal (The Standard)
Regional Optical Fibre Regulatory Policy and Framework Validated (COMESA)
Close to 50 experts in the Information and Communications Technology (ICT) sector from Eastern Africa, Southern Africa, and the Indian Ocean region have validated the draft Policy and Regulatory frameworks for fibre infrastructures. These frameworks will help enhance digital development in the region.
To promote efficient and cost-effective deployments and use of optical fibre cable infrastructure and services, the European Union funded Programme on Enhancement of Governance and Enabling Environment in the ICT sector (EGEE-ICT), supported several activities of this cause.
The first activity was a study on optical fibre cable infrastructure, which identified missing links, capital and operational costs associated with fibre networks, and recommended appropriate policy and regulatory interventions to enable efficient and cost-effective utilization and deployment of fibre networks.
The policy and regulatory frameworks will guide the development of national frameworks at a regional and national level and support an enabling environment to accelerate the rollout of fibre-based broadband networks and penetration and use of fibre-based broadband services through effective infrastructure sharing in the EA-SA-IO region.
African countries to dominate the world’s top 10 growing economies, ECA report (UNECA)
African countries are predicted to dominate the world’s top 10 highest growing economies in 2024, according to a report on Recent Economic and Social Developments in Africa by the Economic Commission for Africa (ECA). The most notable growth drivers in Africa in 2024 will be Niger, Senegal, Ivory Coast, DRC and Rwanda.
Adam Elhiraika, Director, Macroeconomics and Governance Division at ECA said Africa was the fastest growing region after East and South Asia in the developing world in 2023, and Africa will continue this trend in 2024 and 2025. The report says that Niger and Senegal are expected to experience significant economic growth due to the increase in hydrocarbon production and exports. The report shows that the continent is expected to grow from 2.8% in 2023 to 3.5% in 2024 and reaching 4.1% in 2025, mainly underpinned by net exports, private consumption and gross fixed investment.
In 2023, the report says, the global economy showed resilience with declining energy and food prices, increased consumption in China, and improved US economic growth. Still, the outlook remains uncertain, with high debt, rising borrowing costs, weak global trade, and mounting geopolitical risks, constraining progress towards the SDGs and Agenda 2063 targets.
Experts cautiously optimistic amid positive forecasts – Dr. Mbiah on maritime trade in 2024 (Norvanreports)
Citing these predictions from UNCTAD, Drewry, Clarksons, Clyde and Co, Maritime Law Consultant and Legal Practitioner Dr. Emmanuel Kofi Mbiah has attributed the expected growth largely to demand and supply dynamics around the world favouring increased trade, in the aftermath of the COVID-19 pandemic. What is happening now affects global trade so even though the United States of America and Europe have put in place a mechanism to ensure that vessels are shepherded along key routes, big companies like CMA- CGM, Maersk line have taken a decision that they will go around the Cape of Good Hope.
ECOSOCC organizes continental dialogue on the upcoming Summit of the Future (African Union)
One of the much-awaited global events for this year is undoubtedly the Summit of the Future (SOTF) scheduled in September 2024. SOTF is a once-in-a-generation opportunity to enhance cooperation on critical challenges and address gaps in global governance, reaffirm existing commitments including to the Sustainable Development Goals and the United Nations Charter, and move towards a reinvigorated multilateral system that is better positioned to positively impact people’s lives. UN member states will be asked to endorse a ‘Pact for the Future,’ a blueprint for international cooperation in the twenty-first century.
The African Union’s Economic Social and Cultural Council (ECOSOCC) has undertaken a number of civil society consultations to provide feedback and inputs on the ‘Pact of the Future’ for the Continental Dialogue on the Summit of the Future which took place on 28th March 2024. Dr. June Soomer, Chair Designate of the UN Permanent Forum on People of African Descent, said: "The summit of the future must look to the past. Let's create financial sustainability within the continent. We must also have more global financing to deal with climate changes. We should marry Agenda 2063 with the African Financial System but let us not forget the 6th region (diaspora) in this drive towards building financial resilience and climate justice.”
Expert says up-skilling is critical in trade finance success (Businessday Nigeria)
Seyi Ebenezer, a finance and banking professional with extensive experience in trade finance, has stressed that upskilling is a paramount criterion for success in the industry. He made this known at a media briefing recently stating that the trade finance industry requires constant upskilling to attain desired progress.
Ebenezer emphasised that continuous learning and skill development are essential for staying competitive and adapting to the changing demands of trade finance. “In trade finance, where regulations, technologies, and market trends are constantly evolving, upskilling is not just beneficial but imperative for professionals aiming to excel in their careers,” he stated. According to him, trade finance encompasses a broad range of financial services and products used by companies to facilitate international trade and commerce.
China remains Africa’s largest trading partner – envoy (New Vision)
China has remained Africa’s largest trading partner, with bilateral trade exceeding two trillion United States dollars in this period, the Chinese ambassador to Uganda has said. According to Zhang Lizhong, the Chinese Government has participated in large-scale infrastructure projects, including railroads, highways, ports, and electrical infrastructure, continuously benefitting Africans. In addition to financial support, according to Lizhong, China has dispatched about 9,000 medical personnel and provided more than 100,000 training opportunities to African countries.
He said that the President of China, Xi Jinping made three proposals at the China-Africa Leaders’ Dialogue held in South Africa last August. They include the initiative to support Africa’s industrialization, agricultural modernization, and cooperation on talent development, to advance modernization and create a great future for African countries including Uganda. The three proposals, he explained, have drawn the focus of high-level China-Africa community of a shared future on bringing numerous opportunities for China-Uganda practical cooperation in the future.
What 22 Years of China-Africa Trade, Development Finance, and FDI Reveals About Renewable Energy Support for African Countries (The China-Global South Project)
A new report by the Boston University Global Development Policy Center and the African Economic Research Consortium analyzes China-Africa trade, overseas development finance, and foreign direct investment (FDI) from 2000-2022 and provides lessons for aligning China’s engagement with African countries’ energy objectives. “Given current economic challenges and future energy opportunities, China can play a role in contributing to Africa’s energy access and transition through trade, finance and foreign direct investment”, says Boston university global development policy center.
From the trade angle, Africa-China trade features expansion, trade deficits, and resource extraction. From 2000-2022, Africa’s total goods trade with China swelled from $11.67 billion to $257.67 billion, as China became many African countries’ largest trade partner. However, Africa experienced sustained trade deficits due to fluctuating commodity prices and external global shocks. About 89% of Africa’s exports to China included oil, copper, iron, and aluminum commodities, mostly hailing from Angola, South Africa, Sudan, the Democratic of the Congo, and Congo.
Chocolate price hikes bittersweet reason care about climate change (UNCTAD)
Chocolate-loving consumers around the globe are being hit by higher cocoa prices due in part to the climate crisis. Extreme weather and changing climate patterns have upended crop harvests, which are expected to fall short for the third year in a row, tightening global supplies and raising prices.
The cost of cocoa, the key ingredient for making the beloved sweets, shot up by 136% between July 2022 and February 2024, according to UNCTAD commodities price monitoring. The price per tonne on the futures market crossed $10,000 for the first time ever on 26 March. The hike has filtered through to consumers worldwide, already reeling under inflation and a generational cost-of-living crisi
Côte d’Ivoire to raise cocoa farmgate price by 50% (Norvanreports)
Côte d’Ivoire’s President Alassane Ouattara will increase the official cocoa farmgate price to 1,500 CFA francs (US$2.47) per kg from Tuesday from the current 1,000 CFA, sources at five different export companies said. The sources, who requested anonymity because of the sensitivity of the issue, said they were citing a decision at a government meeting on Saturday.
Cocoa prices have more than tripled over the last year as disease and adverse weather pushed the global market to a third successive deficit, but the official farmgate price that growers can charge for their beans in Ivory Coast, a top producer, has yet to reflect this.
Trade in Low Carbon Technologies: The Role of Climate and Trade Policies (IMF)
Curbing carbon emissions to meet the targets set in the Paris Agreement requires the deployment of low carbon technologies (LCTs) at a global scale. This paper assesses the role of climate and trade policies in fostering LCT diffusion through trade. Leveraging a comprehensive database of climate policies and a new database identifying trade in low carbon technologies and the tariffs applied to these goods, this paper shows that the introduction of new climate policies has a positive and significant impact on LCT imports.
World Bank Group Publishes New Data, Aiming to Boost Investment in Emerging Markets (World Bank)
The World Bank Group has published sought-after proprietary statistics that reveal the credit risk profile of private and public sector investments in emerging markets. Making this data publicly available is the latest in a concerted effort to drive more private sector investment to emerging and developing economies.
Two separate reports are being provided for the first time ever. The International Bank for Reconstruction and Development (IBRD) is sharing sovereign default and recovery rate statistics dating back to 1985. This information will help credit rating agencies and private investors gain a deeper understanding of IBRD’s credit risk.
At the same time, the International Finance Corporation (IFC) is providing private sector default statistics broken down by internal credit rating. The report provides insights that could help private sector investors feel more confident about investing in emerging markets.
Members discuss digital and remittance services, MC13 follow-up in Services Week (WTO)
WTO members explored the cost of cross-border remittance services and the impact of the COVID-19 crisis on ICT and digitally delivered services at two events on 25 and 27 March organized under the Committee on Trade in Financial Services and the Council for Trade in Services respectively. At a Council meeting on 27 March, they followed up on outcomes of the 13th Ministerial Conference (MC13) and previous ministerial conferences and reviewed the participation of least-developed countries (LDCs) in services trade among other issues.
Brazil Should Use G20 Momentum to Join the OECD (Council on Foreign Relations)
Brazil’s presidency of the Group of 20 (G20) presents a unique opportunity for the United States to support Brazil in its ambition to be a powerful bridge between the developed world and the developing countries often referred to as the Global South.
Brazilian President Luiz Inácio Lula da Silva’s (Lula) has had a longstanding objective to give the Global South a larger voice in decision-making in multilateral institutions. He made this objective one of three pillars of this year’s G20 presidency, together with social inclusion and the fight against hunger and poverty, and energy transition.
BRICS Countries Preparing Major Announcements At 2024 Summit (Watcher Guru)
BRICS Countries Russia and Brazil are reportedly preparing major announcements for the upcoming BRICS Summit in October. Indeed, Russian Foreign Minister Sergey Lavrov and his Brazilian counterpart, Mauro Vieira, held discussions to prepare for the upcoming BRICS and G20 summits.
The BRICS summit is scheduled for October 2024 in Kazan, Russia. The summit will bring together founding nations Brazil; Russia; India; China; and South Africa, as well as newly inducted nations. Several interested countries are also expected to receive invites to the annual summit, where multiple topics will be on the menu.
As the summit comes closer, Russia and Brazil appear to be strengthening their ties and relationship. The BRICS countries are expected to address global challenges to the alliance at the summit. These include the importance of de-dollarization, expansion, and the development of a new currency.
More BRICS news:
BRICS: China Unveils Blockchain Project to End US Dollar in Trade (Watcher Guru)
China’s Jiangsu province’s trade volume with BRICS countries surges to record high in new year (TV BRICS)
Is brics offering an alternative model for global governance (East Asia Forum)
BRICS’ new step to end US dollar dominance (PressTV)
Global trade news
Experts cautiously optimistic amid positive forecasts – Dr. Mbiah on maritime trade in 2024 (Norvanreports)
The great trade collapse of 2020 and the amplification role of global value chains (European Central Bank)
Charting a Course for Sustainable Global Trade: UNCTAD’s Inaugural Global Supply Chain Forum (Global Trade Magazine)
Replacement of human artists by AI systems in creative industries (UNCTAD)
Europe finalises rules for more recycling, less waste exports (EURACTIV)
EU says plan to ensure critical raw materials supply is not aimed at China (EURACTIV)
Related News
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Full Quarterly Bulletin - No 311 (South African Reserve Bank)
The real gross value added (GVA) by the primary sector contracted further in the fourth quarter of 2023 due to a further sharp contraction in agricultural output as the production of field crops as well as horticultural and animal products decreased. By contrast, mining output reverted to an increase in the fourth quarter as the production volumes of especially platinum group metals (PGMs), coal, chromium ore and diamonds increased.
South Africa’s trade surplus with the rest of the world narrowed to R88.1 billion in the fourth quarter of 2023 from R181 billion in the third quarter as the value of merchandise imports increased at a faster pace than the value of merchandise and net gold exports. The increase in the value of merchandise imports reflected higher volumes and prices, while that of exports reflected higher prices. South Africa’s terms of trade deteriorated further in the fourth quarter of 2023 as the rand price of imported goods and services increased more than that of exports.
The value of merchandise exports increased by 0.8% in the fourth quarter of 2023 as increases in the value of manufacturing and agricultural exports outweighed the decrease in mining exports. The lower mining exports reflected a decrease in the export values of pearls, precious and semi-precious stones as well as base metals and articles thereof, which outweighed the higher export value of PGMs. The value of manufacturing exports increased for a sixth consecutive quarter in the fourth quarter of 2023, mainly reflecting higher exports of chemical products; prepared foodstuffs, beverages and tobacco; and paper and articles thereof. Agricultural exports were boosted by the increased exports of fruit, in particular grapes, in the fourth quarter of 2023.
The value of merchandise imports increased by 5.6% in the fourth quarter of 2023 as the value of mining and agricultural imports increased. Mining imports were buoyed by mineral products, reflecting further increases in the imports of crude oil and refined petroleum products, especially distillate fuel (diesel). The value of crude oil imports surged by 85.4% in the fourth quarter of 2023 as both the physical quantity and the realised rand price thereof increased. The value of manufactured imports decreased slightly in the fourth quarter of 2023, largely due to lower imports of machinery and electrical equipment.
Government to work with transport sector for economic growth (SAnews)
“From roads and highways to railways, airports, and seaports, a well-established transportation network not only facilitates the movement of goods and people but also acts as a catalyst for economic development,” Minister of Transport Sindisiwe Chikunga said on Tuesday. “It is imperative that policymakers, businesses, and communities work together to prioritise sustainable infrastructure development that meets the needs of present and future generations. Only through concerted efforts can we build a transport infrastructure that drives inclusive and sustainable development for all,” Chikunga said.
Release of Gas Master Plan approved at Cabinet’s last official meeting ahead of May poll (Engineering News)
Cabinet approved the publication of the long-awaited Gas Master Plan for public comment during what was the last formal meeting of the executive ahead of the May 29 election. However, Minister in The Presidency Khumbudzo Ntshavheni indicated that special Cabinet meetings could still be convened should the need arise.
The master plan, Ntshavheni said, was supportive of government’s commitment to diversifying the country’s energy mix away from coal-fired power plants. She added that the document would be used as a policy instrument to guide gas investment in the country, which currently imports gas through a pipeline from southern Mozambique, from fields where production is set to taper before the end of the decade.
“The master plan will enable a natural gas economy that is favourable to investors and can provide an alternative source of energy for the country’s electricity sector.” The Gas Master Plan has been published amid warnings of a “gas cliff” for industrial consumers in Gauteng and KwaZulu-Natal from mid-2026, at which date Sasol will divert the remaining gas imports from its wells in Mozambique towards its own facilities in Secunda and Sasolburg to help reduce its use of coal and, thus, its carbon emissions.
See also: Metals and engineering industry must find common purpose in negotiations (Engineering News)
State moves to address concerns raised by Nairobi traders (The Star)
The Ministry of Trade has moved quickly to address the recent tax concerns raised by traders in various parts of Nairobi announcing a raft of measures to unlock the stalemate. In a meeting chaired by Deputy President Rigathi Gachagua at his Karen residence Thursday, the ministry announced that going forward, no further tax increments will be made without consultations with the traders. This comes as a huge reprieve for the traders who have in the past accused the government of imposing taxes without consulting them.
To deal with the issue of counterfeits, the meeting agreed to streamline pre-shipment inspection and how it will be done. Anti-counterfeit Authority (ACA) was also directed to work closely with the Kenya Bureau of Standards to enrich the Certificate of Conformity. In what is also a huge relief for the traders, ACA was directed to release all seized goods within 2 weeks upon verifications.
Kenya ends oil import feud with Uganda (The East African)
Kenya will finally license the Uganda National Oil Company (Unoc), ending months of a major feud that spilled over to the regional court and hurt diplomatic ties between the two countries. Energy Cabinet Secretary Davis Chirchir on Wednesday said that work is in progress to issue a permit that will allow Unoc to import fuel directly through Kenya Pipeline Company (KPC).
“You will see Unoc getting a licence and then we will see how to work together because usage of our pipeline is an opportunity for us,” Mr Chirchir said. “They will employ Kenya Pipeline Company’s infrastructure so there will be no loss of opportunity, the transporter will remain to be KPC. We are working closely with Uganda to resolve the challenge.”
Uganda went to the regional court in December last year to fight for the licence that would allow the use of KPC’s infrastructure. The case is yet to be determined but issuing the license is likely to end the case at the regional court as the two countries move to avert a diplomatic fallout.
Government launches digital media campaign to position Kenya as top tourism and tech hub (TechTrendsKE)
The Kenya Government has launched a digital media campaign dubbed, “Let’s Go to Kenya”, to promote the country as a premier destination for tourism, technology, innovation, and investment. The campaign, launched today will be spearheaded by the Ministry of Information Communication and Digital Economy (MoICDE), in collaboration with Konza Technopolis and ICT Authority.
Speaking at the launch event in Nairobi, Permanent Secretary, State Department for Information Communications Technology (ICT) and Digital Economy, Eng. John Kipchumba Tanui said the campaign will highlight Kenya’s scenic beauties, Kenya’s burgeoning tech sector, investment-friendly environment, and the opportunities available for entrepreneurs and investors in tech and tourism. “The Government through the Ministry of ICT and Digital Economy is embarking on a mission to elevate the awareness of Kenya as a premier destination for tourism and investment. We aim to achieve this through the power of technology, working with our partners specifically harnessing the capabilities of digital media platform that’s why we’ve launched the hashtag #LetsGoToKenya digital campaign,” Eng. Tanui said.
New Digital Trade Hub to boost Zambian businesses online (ITC)
The programme, a collaboration between the International Trade Centre (ITC) and Absa Bank Zambia Plc, aims to unlock the potential of online business for growing trade. ‘The initiative represents a significant milestone in our efforts to foster economic development and empower our local entrepreneurs,’ Livingstone Mayor Constance Muleabai said at the launch on 14 March. ‘Our city is also home to a vibrant community of small and medium enterprises striving to succeed in an increasingly digital world,’ she said. ‘Today we take a bold step forward in supporting these businesses on their journey towards ecommerce excellence.’
Ethiopia eyeing e-government, e-commerce for digital transformation (Ethiopian Herald)
Among the digital strategies, e-government and e-commerce are highly contributing to the success of the country’s digital transformation, the Ministry of Innovation and Technology (MinT) said. MinT Minister Belete Molla (PhD) made the above remark during the panel discussion held on Tuesday in relation to the performance evaluation forum on mid-term digital transformation 2025.
“Various infrastructure development activities are also made by prioritizing legal frameworks, strategic planning, institutional development, telecom infrastructure expansion in the past three years, thus, attracting a huge amount of local and international investments,” he pointed out. Moreover, issuing digital ID, applying digital payment systems and delivering financial technology services are among the achievements of the strategy, he added. The Ministry has launched over 587 e-governance service and e-commerce platforms, Belete said, adding that currently, pertinent institutions are offering reliable and fast services through deploying digital infrastructures.
Ethiopian officials discuss development of infrastructure projects (TV BRICS)
The country plans to achieve middle-income status by 2030. Speaking on the subject, Ethiopia’s Minister of State for Urban Planning and Infrastructure, Wondimu Seta, emphasised the country’s efforts to ensure building a more resilient and sustainable future, such as developing a regulatory framework that also takes into account the effects of climate change. Seta drew attention to the many ongoing projects that serve as a foundation for future social and economic transformation and should meet current development needs while ensuring long-term sustainability.
Nigeria to grant mining licences only to locally processing firms (The East African)
Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson confirmed on Thursday. This signals a shift from Nigeria’s decades-old policy of exporting raw materials as African governments take steps to extract more value from their solid mineral deposits.
To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria’s minister of Solid Minerals development said. “In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said. He did not say when the guidelines would be finalised or come into effect. However, last week the minister of Solid Minerals Development Dele Alake said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.
Cocoa crisis plunges Ghana’s trade surplus; currency stability at risk (Norvanreports)
Ghana, the world’s second-largest cocoa producer, is experiencing a significant downturn in its cocoa sector, with export revenues plummeting by nearly one-third to $508.4 million. The decline comes despite a bullish trend in New York cocoa futures, propelled by production setbacks across West Africa due to adverse weather conditions, disease outbreaks, and fertilizer shortages.
The sharp contraction in cocoa export revenues has taken a toll on Ghana’s trade surplus, which contracted by 54% to $392.8 million for the first two months of the year. Coupled with a surge in imports by 26%, the widening trade deficit is putting immense pressure on the Ghanaian cedi, which has depreciated by 8.3% against the US dollar this year. The currency’s dismal performance positions it among the worst-performing African currencies, raising concerns about inflationary pressures, import costs, and foreign investor sentiment.
Navigating these multifaceted economic challenges demands a comprehensive and nuanced policy response. Strengthening cocoa productivity, diversifying export earnings, curbing import growth, managing public debt prudently, and bolstering the resilience of the financial sector are imperative.
Zimbabwe makes headway towards joining Brics bank (The Herald)
Zimbabwe’s bid for admission into the BRICS New Development Bank has been given a huge boost following the recent pledge of support by Russia, South Africa, and now Brazil. Currently, indications are pointing at Zimbabwe, together with Argentina and Saudi Arabia, being officially announced as new members of the NDB at the BRICS summit to be held in South Africa this August.
In an interview yesterday, Brazil’s Secretary for Africa and Middle East in the Ministry of External Relations, Ambassador Carlos Duarte, said Zimbabwe’s admission was an active issue which the bloc was seized with. He said Zimbabwe’s willingness to join the NDB would not affect its ultimate goal to become a full BRICS member and vice versa.
Stats SA has released its first-ever migration profile, which tracks the movements of labour migration in the SADC region (Voice of the Cape)
Statistics South Africa (Stats SA) has released its first-ever migration profile, which has tracked the movements of labour migration in the Southern African Development Community (SADC) region. Speaking on VOC’s In Conversation show on Wednesday, the Chief Director responsible for demographic and population Statistics Diego Iturralde, said the genesis of this report stems from the processes around the negotiation of the global compact for safe, orderly, and regular migration, which South Africa signed in 2018.
“One of the objectives of the global compact was to improve data collection of migration in all its forms, and it was recommended that member states who signed the global compact should produce a migration profile report that is comparable in each respective country.”
Comesa installs Smart Gate at Mchinji One-Stop-Boarder-Post (Malawi Nyasa Times)
Common Market for Eastern and Southern Africa (Comesa) has installed a state-of-the-art Smart Gate at Mchinji One Stop Border Post (OSBP) to fast track the clearance system. A Research Fellow at Comesa, Jane Kibiru said during a Media tour at Mchinji OSBP that the gate will address challenges faced by the border like reduce congestion of vehicles entering or exiting the border. “Once operational, the gate is going to help in reducing costs, congestion, as well as time spent by trucks due to overstay at the border,” she said.
“The gate will help in capturing information on traffic that comes into and out of the border,” she said. Mzunga said the gate is intended to be integrated with custom system that MRA uses. Adding that once the integration is done, it will be able to track down clearance of all goods that enter into the OSBP as well as be able to generate the collection of storage fees from motor vehicles or overstayed goods.
Small firms say AfCFTA tariff liberalisation may push them out of business (The East African)
The African Continental Free Trade Area (AfCFTA) is expected to significantly boost intra-Africa trade when fully implemented, but small businesses in East Africa are not happy about it, as it may not bode well for them. A survey by the East African Business Council (EABC), a lobby for private-sector players in the East African Community (EAC), shows that small businesses in the region are worried that a full take-off of AfCFTA could edge them out of business, unless they change tack.
Battered by a raft of challenges at home and dissatisfied with the progress in the elimination of intra-EAC trade barriers, the small businesses worry they may not withstand the competition from AfCFTA, which could force many of them to close down. “Intense competition arising from AfCFTA tariff liberalisation is likely to drive weaker enterprises out of business; unless they scale up their efficiency levels,” EABC says in the survey co-published with the African Export-Import Bank.
pdf Study on Opportunities and Threats of the AfCFTA to the EAC - Focus On Trade In Goods (1.43 MB)
10 longest bridges in Africa (Business Insider Africa)
Seamless transportation is still a challenge for trade in Africa, and the importance of bridges in addressing this issue cannot be overstated. By connecting previously isolated areas, bridges cut down travel times and costs, making it easier for businesses to move goods and people to access essential services. So it is no surprise that governments across many African countries pour finances in bridge construction projects, due to its role in facilitating trade and stimulating economic growth. Bridges in Africa come in various sizes, designs, and importance, each carrying its own significance for the communities they serve.
McDan Group CEO pleads for African ownership in logistics and transport sectors (The Africa Report)
Foreign dominance in logistics must be countered by local investment to guarantee African ownership over continental trade, says Daniel McKorley, CEO at McDan Group, a Ghanaian transportation and logistics company. While transport and logistics will be essential to realise the continent’s free trade ambitions, Africa’s trade landscape is dominated by foreign-owned air cargo and sea freight companies, perpetuating a cycle of economic dependence on more developed economies and missed opportunities for indigenous African businesses, says Daniel McKorley, CEO at Ghanaian transportation and logistics company McDan Group.
Empowering Africa’s Small and Medium-sized Enterprises (SMEs) through Technology Adoption (Africa.com)
Nearly 70% of small and medium-sized enterprises (SMEs) in Africa invested in technology in the past 12 months to help boost growth and resilience – an indication that SMEs are embracing the positive impact of technology. There are numerous opportunities that unlock the full potential of digitalisation for these businesses and the continent, which means addressing barriers, such as infrastructure, connectivity, and the high cost of implementing technology, and developing best practice frameworks for better collaboration.
These are findings from a new report, titled ‘Levelling the SME Playing Field’, jointly launched by Vodacom Group, Vodafone Group and Safaricom. The report is the sixth research paper under the Africa.connected campaign, which aims to drive sustainable development by closing the digital divides in Africa’s key economic sectors through strategic partnerships.
China is Buying More Agricultural Products From Africa, But There Is Still a Lot of Room For Growth (The China-Global South Project)
Chinese consumers can now buy Kenyan coffee, tea, and avocados — all shipped tariff-free. The latest data show that China is buying more agricultural products from Africa, but for all the Kenyan farm produce heading east, Chinese garlic and fish are also increasingly heading in the opposite direction. In the context of overall China-Africa trade that hardly grew in 2023 while Africa’s trade deficit widened, the agricultural trade segment increased by over 6%, and China is the side holding the trade deficit.
Deputy Administrator Isobel Coleman at the Africa Trade Desk Event (USAID)
Today, the African continent is a powerhouse of promise. This year, the continent is poised to be the world’s second fastest-growing region – Africa is home to 12 of the 20 fastest growing economies on the planet. And by 2040, Africa will have the largest workforce in the world – larger than China and India combined. The United States is eager to partner with Africa to harness this potential – helping generate broadly shared opportunity and prosperity that benefits families and communities across the continent, and sustainable growth that benefits economies across the world. To do this, we need to energize our efforts to mobilize the private capital that can advance Africa’s continued transformation.
That’s why the United States is proud to support Prosper Africa, a U.S. Presidential-level initiative to scale trade and investment in Africa. Prosper Africa is strengthening the strategic and economic partnership between the United States and Africa by catalyzing two-way trade and investment flows, forging new private-sector partnerships, and mobilizing large-scale private investment in Africa’s greatest opportunities.
Today, I am pleased to announce the launch of the Africa Trade Desk, a joint venture between Prosper Africa and Afritex ventures, which aims to bridge the gap between African agricultural suppliers and U.S. buyers, helping them surmount the physical and logistical hurdles that too often keep them from doing business together.
We’ve found that African producers are eager to sell to the U.S. market, but often lack access to networks of U.S. buyers. And U.S. retailers like Shopify, Sam’s Club, Walmart, and Whole Foods are eager to carry a diverse supply of products from across Africa, but similarly lack established connections. The Africa Trade Desk addresses this problem.
By connecting African suppliers with Prosper Africa’s network of over 20,000 U.S. retail buyers, the Trade Desk simplifies the partnership process, making it easier for African and American enterprises to establish mutually beneficial trade relationships that serve both parties’ needs. More than that – the Trade Desk goes beyond just matching buyers with suppliers. It leverages its connections with freight and insurance companies to negotiate lower costs, and makes use of its access to market data to inform business recommendations – providing benefits that would not typically be available to small producers on their own.
How Business Builds Bridges Between the U.S. and Africa (U.S. Chamber of Commerce)
The United States and the nations of Africa enjoy a vibrant, multifaced relationship focused on expanding partnerships, global cooperation, and shared prosperity. These countries also share another powerful bond: people. In the 2020 Census, more than 14.4% of Americans self-reported tracing their heritage to the African continent, and these cultural and familial ties provide a source of strength in building bridges through business.
Most small businesses do not export, but when they do, they tend to export to markets closest to them. The reasons to encourage small business owners, who make up 99% of all U.S. entrepreneurs, to consider new markets lie in a staggering statistic: 96% of the world’s consumers live outside the United States. Yet only one percent of all U.S. companies export, and when they do, these exporters are overwhelmingly small businesses, and nearly half of these firms sent the bulk of their goods to Canada, Mexico, the United Kingdom, and Japan in 2019. That makes the African diaspora a powerful force for building bridges and expanding our economic partnership with the fast-growing countries across Africa.
The U.S.-Africa Business Center’s mission to expand U.S.-Africa trade and investment led to the launch of Advance with Africa, with its goal of encouraging more U.S. companies—particularly diaspora-led ventures—to play a role in increasing commercial flows, educating them about doing business in Africa and equipping them with the tools to do so.
See also: AfDB, US forge strong partnership on African development (Nigerian Observer)
Members agree on timetable for market access thematic sessions, discuss trade concerns (WTO)
At a meeting of the Committee on Market Access (CMA) on 25-26 March, members agreed on a timetable for thematic sessions in 2024 focusing on supply chain resilience and on how to promote a greener Harmonized System (HS), the system used to classify traded goods, in collaboration with the World Customs Organization (WCO). Members also addressed a high number of trade concerns and elected Mr Kenya Uehara of Japan as interim Chair of the Committee.
Applying digital supply-use tables in developing economies (UNCTAD)
Digitally focused indicators are absent within the System of National Accounts, the standard statistical framework for measuring economic activity. The Digital Supply–Use Tables (Digital SUTs) framework was created to improve the visibility of and information available on digital phenomena while being consistent with the existing national account statistics. The framework has been designed as a derivation from the Supply-Use Tables (SUTs). However, SUTs are not available in many developing countries and often come infrequently with significant time lags.
Riding the circular wave: Entrepreneurs tackle the waste crisis, redefine economies (UNCTAD)
In convenience stores across Chile, customers are bringing reusable containers to fill up on essential products like shampoo, soap and detergent, thanks to refill stations set up by Chilean start-up Algramo, which in Spanish means “by the gram”. Such services are key to tackling the world’s waste problem, including the reliance on single-use plastic products like bottles and containers.
Each year, cities worldwide produce between 2.1 billion and 2.3 billion tonnes of solid waste. The UN warns that a business-as-usual scenario would require two planets by 2030 to meet global production and consumption needs. The make-take-waste economy is closely linked to major global challenges, such as climate change, biodiversity loss and the soaring costs of energy. The world needs to urgently transition to a more sustainable, circular model to keep products and materials in circulation as long as possible.
An UNCTAD report, “Entrepreneurs riding the wave of circularity”, spotlights companies like Algramo that are pioneering circular business models, reimagining humanity’s relationship with materials and natural resources.
Related: A new holistic view on circular value chains (McKinsey & Company)
Quick links
African island states take fresh step towards joint medicines procurement (WHO | Regional Office for Africa)
Africa is fueling India’s economic ambitions (Norvanreports)
The growth of the South in global finance: New bilateral data and stylised facts (CEPR)
Global Trade Finance in the 21st Century: Challenges and Opportunities (Financial Express)
Is this a pivotal moment for the rise of the middle powers? (WEF)
Is the US Dollar losing its grip? The rise of alternative reserve currencies (Norvanreports)
G20’s Brasilia Meeting: Promoting Inclusive Growth & Gender Equality (EastMojo)
EU Commission proposes common agricultural policy revisions following farmer protests (FreshPlaza)
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tralac Daily News
Chicken industry needs no tariff rebates because there is no shortage, Sapa stresses (Engineering News)
Executives from the South African Poultry Association (Sapa) met with Trade, Industry and Competition Minister Ebrahim Patel last week to discuss, among other matters, tariff rebates on chicken imports that were introduced as a safeguard against potential shortages on the back of bird flu outbreaks.
“We appreciate the reason that the tariff rebates were published, which is to address a potential shortage of chicken on the market. However, our data indicates that there has not been and is no shortage in the supply of chicken to the market, and thus there is no need for the rebates to continue,” Sapa Broiler Organisation GM Izaak Breitenbach explained.
South Africa faces a balancing act with China over its digital transformation (Africa at LSE)
South Africa is an African leader when it comes to digitalisation. The International Telecommunication Union ranks the country’s ICT development index at 4.96 out of 10, ranked at number 92 out of 176 countries. It boasts the highest mobile phone – 84 per cent – and internet penetration – 53 per cent – rates in Africa. The African National Congress-led government has established a Commission on the Fourth Industrial Revolution, an area many believe the country can benefit from its connections with China to leapfrog its infrastructure gap.
Chinese tech giants like Huawei and ZTE are major players in the South African market. Despite the presence of these two digital giants, South Africa’s digital connectivity still lags with several rural schools, public health institutions and communities remain unconnected. The rollout of 4G and 5G in rural areas is proceeding at a snail’s pace. This is despite Chinese companies like Huawei partnering with telecommunications operators like Vodacom and MTN to deploy 4G and 5G networks. Yet these digital infrastructures are still to diminish the existing digital divide between rural and urban areas.
South Africa should be able to leverage Huawei’s skill set, prowess and capacity to effectively build sound digital infrastructure. But that is not happening.
WCO renders support to the Namibia Revenue Agency on Customs Valuation (WCO)
The World Customs Organization (WCO) organized a technical assistance mission on Customs valuation to benefit the Namibia Revenue Agency (NamRA) from 18 to 22 March 2024. The mission was built upon previous technical assistance and capacity-building support to NamRA on Customs valuation in March 2023 and followed up on the recommendations made at the time. Cascading from this mission were policy elements such as a draft Policy on Customs valuation and Standards of Procedure (SOP).
The mission concluded with recommendations regarding the Policy related to the adjustments to be made when arriving at the Customs value. The updated Policy and SOP, as well as the other related SOPs to be developed, will be submitted to NamRA’s high-level management for approval according to the Action Plan agreed upon by the officials and according to NamRA’s internal procedures. Customs Officials and stakeholders will be made aware of the approved changes before implementing the new Policy and SOPs.
Egypt To Benefit From More Intra-Africa Trade (Global Finance Magazine)
Two recent expert reports supply evidence of Egypt’s unique potential to benefit from a more fully implemented African Continental Free Trade Area (AfCFTA) agreement. They are helping to fuel much needed optimism about the future of an economy battered by short-term geopolitical and other challenges that have led to symptoms such as 38% inflation last September.
The AfCFTA-Egypt reports come from the Organization for Economic Cooperation and Development (OECD), a Paris-based club of rich countries, and the Trade Law Centre (tralac) in Western Cape, South Africa. Both suggest that Egypt is well placed to benefit from and help advance AfCFTA. “Egypt has what it takes to play a key role,” said Landry Signé, senior fellow at the Brookings Institute, a Washington D.C.-based think tank, and professor at the Thunderbird School of Management, a business school in the United States. “For SMEs (small and medium sized enterprises) and larger companies, there are opportunities everywhere.”
WCO Anti-Corruption & Integrity Promotion (A-CIP) and Sida WCO Trade Facilitation and Customs Modernization (TFCM) Programmes organized on 18-22 March 2024, a series of workshops in Dar es Salaam, Zanzibar & Holili, in the United Republic of Tanzania in cooperation with the Tanzania Revenue Authority (TRA). The workshops aimed to raise awareness of the Authorized Economic Operator Programme (AEO) among Other Government Agencies (OGA) to support the TRA in increasing the implementation of the national AEO Programme.
WCO Experts and the TRA AEO Unit engaged with representatives of Customs and OGAs working at the border to discuss possible enhancements to the AEO Programme with the aim to achieve more significant benefits for operators and effectively implement the AEO. Discussions contributed to the TRA-specific priority under the A-CIP Programme: “Implementation of Customs regulatory framework harmonized with international standards”. In particular, this outcome relates to the implementation of article 7.7 of the WTO Trade Facilitation Agreement (TFA) and the EAC regional AEO Programme. Under the Sida WCO TFCM Programme, these workshops aimed to advance the technical capacity of TRA officers to implement the AEO Programme.
EU Launches €9 Million Energy Projects To Propel Nigeria’s Sustainable Development (Science Nigeria)
The European Union (EU) has reaffirmed its commitment to advancing Nigeria’s energy sector by introducing two groundbreaking projects worth €9 million. These initiatives, Small Hydro Power Development for Agro-industry Use in Nigeria (SHP-DAIN) and Advancing Nigeria’s Green Transition to Net Zero through Circular Economy Practices, are poised to revolutionise energy accessibility and promote sustainable practices to combat pollution and climate change.
Under the EU Global Gateway Strategy, these projects aim to enhance connectivity, foster economic growth and promote sustainability through collaborative efforts. With a budget of €5 million, the SHP-DAIN project focuses on increasing the capacity of small hydropower in Nigeria’s energy mix to drive productivity along agricultural value chains, thereby enhancing livelihoods and promoting food security.
Liberia: Lift Up the Executive Order George Weah Imposed on Rubber Exportation (FrontPageAfrica)
A former Representative candidate of District #16 is calling on President Joseph N. Boakai’s government to lift the executive order on rubber exportation in Liberia imposed by the then George Weah government. Mr. Archie Sarnor stressed that the monitoring of the executive order was intended to give Jetty Rubber Company the leverage under the canopy of building a factory to process rubber, but the main aim of the rubber factory was just to mislead the Liberian people so that they can export unprocessed rubber.
He emphasized that Weah announced the executive order in December 2023 to ban the export of rubber as a result of the huge sum of money he got from Jetty to finance his campaign. He alleges that Jetty is exporting unprocessed rubber out of the country, while other Liberian rubber containers at the port have been denied for exportation because Jetty is the only entity in charge of rubber exportation in Liberia, which is causing a setback to rubber production in the country.
Kalu meets Okonjo-Iweala, seeks WTO’s help in contamination of agricultural products during export (Premium Times Nigeria)
The Deputy Speaker of the House of Representatives, Ben Kalu, has solicited the cooperation of the World Trade Organization (WTO) in boosting the exportation of primary products from Nigeria and Africa in general. Mr Kalu made the call, Monday, when he visited the Director-General of the WTO, Ngozi Okonjo-Iweala, in Geneva on the sidelines of the ongoing 148th Assembly of the Inter-Parliamentary Union (IPU) in Switzerland.
Mr Kalu said African businessmen face hurdles in marketing their products, primarily due to aflatoxins contaminating them en route to their destinations. He added that the challenge is particularly pronounced within the context of “The African Growth and Opportunity Act (AGOA),” which grants duty-free treatment to goods from specified sub-Saharan African countries (SSAs). He, therefore, solicited the help of the WTO to set up centres in Africa for the treatment of the primary products packaged for export.
Sadc discusses challenges contributing to limited achievements of development targets (Chronicle)
The 2023/24 Infrastructure Performance Review and Planning Session took place in Kasane, Botswana from 16 to 22 March 2024, under the auspices of the Directorate of Infrastructure, which operates within the Secretariat of the Southern African Development Community (Sadc). This year’s session was held under the theme; “Accelerating the implementation of the Sadc Regional Infrastructure Development Master Plan (RIDMP) 2027 and Sadc Regional Indicative Strategic Development Plan (RISDP 2020-2030).
Ms Angele Makombo N’tumba, the Sadc Deputy Executive Secretary for Regional Integration, emphasised the importance of bolstering climate services to mitigate the adverse effects of climate-related disasters, which have regrettably hindered the economic progress achieved by Member States. Ms Makombo N’tumba encouraged the development of new propositions that address the deficit in power supply and promote greater access to sustainable and affordable energy. In regard to other essential infrastructure components, she strongly urged all relevant stakeholders to expedite the implementation of transport corridor development and the establishment of strategic roadmaps, as well as the adoption of digital technologies to facilitate universal digital connectivity.
Nigeria Urges ECOWAS Scientists To Leverage STI To Drive Economic Growth (News Agency of Nigeria)
Nigeria has called on the West African Network of the National Academies of Sciences (WANNAS) to leverage Science, Technology and Innovation (STI) to drive economic growth in the ECOWAS subregion. Minister of Science, Technology and Innovation, Geoffrey Nnaji, made the call at the opening ceremony of the General Assembly of WANNAS held at the ECOWAS Commission headquarters on Tuesday in Abuja.
“This event is very important as the highest echelon of the Science, Technology and Innovation Sector of our economies will deliberate and chart a way forward for a formidable sector that would proffer solutions to our economic challenges. “The ECOWAS subregion has immense potential waiting to be unlocked, harnessed, and propelled into the forefront of global innovation and technological advancement. According to him, the STI ministry, through the application of various STI apparatuses, is poised to diversify the Nigerian economy, which is a major priority of the Federal Government.
Central Bank Digital Currency and Other Digital Payments in Sub-Saharan Africa: A Regional Survey (IMF)
This Fintech Note reports key findings from the Sub-Saharan Africa Central Bank Digital Currency (CBDC) and Digital Payments Survey, shedding light on the motivations, benefits, and challenges of CBDC adoption, as well as the developments of digital private money and crypto assets in sub-Saharan Africa. It emphasizes the pivotal role of collaboration and shared knowledge in navigating the intricate landscape of digital currencies and assets in sub-Saharan Africa.
As this evolving digital frontier is explored, the experiences and aspirations of the region’s central banks, as expressed in the survey, will help harness the potential for digital currencies, assets, and payments, and foster cooperation among countries in sub-Saharan Africa. A forthcoming IMF Departmental Paper will focus on key issues for countries in sub-Saharan Africa pertaining to CBDCs, private digital payments, and crypto assets. It will provide a deeper discussion of the benefits, costs, and risks of these digital payment systems and present policy options to enhance financial digital development and inclusion, while safeguarding macroeconomic and financial stability.
Civil Society Coalition for African Continental Free Trade Area inaugurated (Ghana News Agency)
The African Continental Free Trade Area (AfCFTA) Monday inaugurated the Civil Society Coalition for African Continental Free Trade Area (CSCAfCFTA) in Accra. The CEO and Founder of CSCAfCFTA Dr. Emmanuel V. Brown said in a statement that it had been in discussions with representatives from several African countries since 2023 on ways to promote the AfCFTA concept in those nations. He said the formal inauguration marked the conclusion of actions that began with the idea development stage and included engagements with AfCFTA officials, government leaders, and international entities, including strategic collaboration with civil society groups to ensure that Africans benefited from the concept.
The statement urged the public to support the call for businesses to use AfCFTA to boost intra-Africa trade and secure long-term growth with less dependency on foreign handouts on the African continent.
Key Statistics and Trends in International Trade 2023 (UNCTAD)
Global trade has followed a highly volatile pattern since the onset of the COVID-19 pandemic. Fragmentation and increased heterogeneity of trade performance characterize not only the rebound of 2021 and 2022 but also the recent trade slowdown, albeit to a lesser extent.
While it is premature to definitively assert whether the recent trend is a substantial departure from established global trade trends, it appears possible that COVID-19 disruptions initiated a significant shift in global trade, now fuelled by systemic patterns tied to geopolitical issues and risk-mitigating strategies. The convergence of these factors raises the possibility that global trade patterns will be undergoing more significant changes, ushering in a new era with distinct challenges and opportunities for economies worldwide.
In value terms, global trade in goods and services rebounded to about US$ 28 trillion in 2021 from the lows of the COVID-19 pandemic and further grew to about US$ 32 trillion in 2022. The value of international trade is expected to moderately decline to around US$ 31 trillion in 2023, driven by lower global demand, particularly for goods. On a positive note, trade volumes have been less volatile in recent years and are expected to remain stable in 2023. Trade in services has also proved to be more resilient, with its value reaching approximately US$ 7 trillion in 2022 and expected to increase by about US$ 500 billion in 2023.
WTO and EIF host discussion on trade policy and women’s economic empowerment (WTO)
An event titled “A joint conversation on women’s economic empowerment”, hosted by the WTO and the Enhanced Integrated Framework (EIF) on 26 March, provided a platform to showcase recent advances and initiatives aimed at addressing gender inequality in trade and fostering women’s empowerment. Speakers at the event presented recent developments concerning trade and gender. The WTO’s Trade and Gender Office highlighted three member-led outcomes on trade and gender from the 13th WTO Ministerial Conference, marking a significant milestone in advancing gender-responsive policies.
Women Critical To Driving Sustainable Devt, Mitigating Climate Change Impacts (New Telegraph)
The Group Chief Executive Officer NNPC Limited, Mele Kyari has said women in the oil and gas sector play critical roles in driving sustainable development and mitigation of the impacts of climate change in the country. Kyari made the assertion while speaking at the Strategic Women In Energy Oil And Gas Summit & Awards held in Abuja to commemorate the 2024 International Women’s Day (IWD) celebration with the theme, with the theme: “Closing Energy Gaps in Nigeria by Investing in Women.”
Kyari who reaffirmed NNPC Limited’s commitment to gender equality and inclusive development, noted that empowering women as leaders and decision-makers in the energy sector would help in promoting more sustainable practices, accelerate the energy transition process and ensure a brighter future for generations to come. He said: “As we reflect on the achievements and challenges faced by women in the energy sector, let us reaffirm our commitment to gender equality and inclusive development.
Record Growth in Renewables, but Progress Needs to be Equitable (IRENA)
Renewable Capacity Statistics 2024 released by the International Renewable Energy Agency (IRENA) today shows that 2023 set a new record in renewables deployment in the power sector by reaching a total capacity of 3 870 Gigawatts (GW) globally. Renewables accounted for 86% of capacity additions; however, this growth is unevenly distributed across the world, indicating a trend far from the tripling renewable power target by 2030.
IRENA Director-General, Francesco La Camera said, “This extraordinary surge in renewable generation capacity shows that renewables are the only technology available to rapidly scale up the energy transition aligned with the goals of the Paris Agreement. Nevertheless, the data also serves as a telltale sign that progress is not moving fast enough to add the required 7.2 TW of renewable power within the next seven years, in accordance with IRENA’s World Energy Transitions Outlook 1.5°C Scenario.”
Climate Change: Group unveils actionable plans for ‘sustainable future for Africa’ (Premium Times Nigeria)
An International Press Conference announcing the inaugural convening of the Climate Action Africa Forum (CAAF24) concluded on Friday at the Transcorp Hilton Abuja, marking a significant milestone in the journey towards a sustainable future for Africa, according to officials. Under the theme, “Green Economies, Brighter Futures – Innovating and Investing in Africa’s Climate-Smart Development,” the International Press Conference provided a vibrant platform for insightful discussions, strategic collaborations, and impactful engagements. The conference was a precursor to the upcoming Climate Action Africa Forum scheduled from 17-19 June, 2024.
“It’s no news that the world stands at a critical juncture, where decisive action is imperative to mitigate the adverse impacts of climate change. Against this backdrop, CAAF24 is a pivotal platform for key stakeholders to engage in meaningful discourse, and forge collaborative pathways towards a greener, more sustainable future,” officials said. Throughout the conference, distinguished speakers and thought leaders underscored the urgency of collective action in addressing Africa’s climate challenges.
Africa must work to urgently address its staggering $65 billion timber trade deficit to position forests as a critical driver for the continent’s future development, global experts urge. This deficit, accrued between 1992 and 2020, reflects the continent’s imbalance between earnings from timber exports and expenditures on imports of wood-related products, they said during a panel discussion to commemorate this year’s International Day of Forests on March 21.
The experts called on development partners to support investment in Africa’s timber processing capacity and a continental wood marketing information system. The discussions, titled “Forests and Innovation: New Solutions for a Better World,” centered around a report released by the African Development Bank’s African Natural Resources Management and Investment Centre entitled “Regional timber trade flows and trends in Africa.”
USAID Launches the Africa Trade Desk through Prosper Africa (USAID)
Today, Deputy Administrator Isobel Coleman announced the launch of the Africa Trade Desk, a signature trade platform from Prosper Africa that links large U.S. food retailers to African producers. The announcement was made during the Atlanta Phambili: A Trade & Investment Gateway to Africa & South Africa event, an event highlighting the economic relationship between the United States and Africa, with a spotlight on South Africa.
The Africa Trade Desk, a public-private partnership between Prosper Africa and Afritex Ventures, is set to facilitate at least $300 million in export sales between Africa and the United States within the next 18 months. The Africa Trade Desk bridges the gap between African suppliers and U.S. retailers by establishing a secure supply chain from Africa to U.S. retailers by consolidating logistics, insurance, and track and trace technology from farm to retailer.
Initially, the focus will remain on specialty food products such as seafood, peppadews, stone fruit, citrus, and high-value herbs and vegetables. This initiative aggregates products from African suppliers, secures firm orders from its established network of U.S. buyers, and accesses financial resources to fund large orders.
Fossil fuel-focused Africa Energy Bank on track to start this year (The East African)
The proposed Africa Energy Bank, which will focus investment in oil and gas projects across the continent, is set to start operations later this year with an initial $5 billion authorised capital base, a senior official said on Wednesday. The bank, a partnership between Afreximbank and the African Petroleum Producers Organisation (Appo), is meant to help plug a funding gap in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects.
Ghana on Friday deposited just over $20 million to the Africa Energy Investment Corporation (AEICORP), becoming the third African country to pay after Africa’s top two crude oil producers, Nigeria and Angola, each deposited $10 million last year to help fund the bank. “Africa Energy Bank is on the verge of becoming a reality and should be operational during the second half of 2024,” Zakaria Dosso, managing director of AEICORP, said.
Greener practice is more sustainable (Ghana News Agency)
Mr Valdis Dombrovskis, Executive Vice-President of the European Commission for an Economy that Works for People and Commissioner for Trade, says transitioning to greener practice is more sustainable and its path of progress will benefit all. That, he explained, was part of the EU’s resolve to find the right balance between building a more sustainable future and pursuing trade policy to attain such a broader objective, drive innovation and create market access opportunities for green goods and services. The EU, he said for instance, was of the conviction that trade could and should be a driver for accelerating fair transition to a low-carbon and climate resilient economy.
Advancing shared prosperity through biodiversity-friendly trade (UNCTAD)
With one million species currently at risk of extinction, the state of global biodiversity loss spells trouble for nature and economies. The impact of losing bees and other wild pollinators, fisheries and forestry – just a fraction of natural resources at risk – could reduce global GDP by an estimated $2.7 trillion annually by 2030, according to World Bank simulations.
Kicking off the 7th BioTrade Congress in Geneva, UNCTAD and partners gave a renewed push for stronger trade policies and governance to help tackle the biodiversity crisis. Valued at $3.7 trillion, products with a biological origin represented 17% of global exports in 2021, according to the Trade and Biodiversity (TraBio) statistical tool, UNCTAD’s database that measures the international trade of biodiversity-based products. The economic stakes are even higher for low-income economies, with the share often surpassing 40% of their exports during the past decade.
With 783 million people going hungry, a fifth of all food goes to waste (UN News)
The UN Environment Programme’s Food Waste Index Report 2024 highlights that latest data from 2022 shows 1.05 billion tonnes of food went to waste. Some 19 per cent of food available to consumers was lost overall at retail, food service, and household levels. That is in addition to around 13 per cent of food lost in the supply chain, as estimated by the UN Food and Agriculture Organization (FAO), from post-harvest up to the point of sale.
“Food waste is a global tragedy. Millions will go hungry today as food is wasted across the world,” said Inger Andersen, Executive Director of UNEP, explaining that this ongoing issue not only impacts the global economy but also exacerbates climate change, biodiversity loss, and pollution. Most of the world’s food waste comes from households, totalling 631 million tonnes – or up to 60 per cent - of the total food squandered. The food service and retail sectors were responsible for 290 and 131 million tonnes accordingly.
UN global climate report: a stark reminder of the urgent need to leverage agrifood solutions (FAO)
There is an urgent need to transform agrifood systems and leverage their climate solutions, the Food and Agriculture Organization of the United Nations (FAO) has said in light of the findings of the latest UN State of the Global Climate Report.
The World Meteorological Organization-(WMO)-led report in collaboration with other UN agencies including FAO, shows how climate change indicators records including surface temperatures and greenhouse gas levels were once again broken in 2023. It also brings light on how extreme weather events are progressively affecting food security and agriculture, with wider socio-economic implications.
“The latest WMO report is a chilling reminder of runaway climate change and its impacts, including on food insecurity. Reversing this trend will require major investments in solutions that can help countries and communities build resilience to a changing climate, reduce record-breaking emissions and protect lives and livelihoods all at once. Nowhere are these solutions more abundant and impactful than in agriculture and food systems”, said Kaveh Zahedi, Director of the FAO Office of Climate Change, Biodiversity and Environment.
Quick links
Women in Trade, Treasury & Payments 2024 - Policy to practice: Addressing gender disparity in financial access (Trade Finance Global)
BRICS: Expansion of the BRICS (Friedrich Naumann Foundation)
Is India really leaving BRICS? - Here is what we know (CryptoRank)
Anti-Corruption and Integrity Outlook 2024 (OECD)
Red Sea shipping disruptions likely to exacerbate the dire humanitarian situation in Yemen (FAO)
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Protectionism and shipping disruptions threaten agri trade (Farmer’s Weekly)
Solid business partnerships will become increasingly important to navigate market threats, according to Absa’s recently released AgriTrends Autumn 2024. While the impact of the COVID-19 pandemic has dissipated, Absa AgriTrends identified various other global and local megatrends that now threaten international trade. The first of these is a slowdown in globalisation, called slobalisation.
Protectionism directly affected South Africa when the EU introduced additional phytosanitary measures on citrus in 2022, which cost the industry around R200 million to execute. The US’s protectionist strategies also affected South Africa by increasing indirect costs, causing supply chain disruptions and inflationary pressure, and affecting purchasing power and market access, according to Absa AgriTrends. The report also highlighted the importance of South Africa’s inclusion in the Africa Growth and Opportunity Act (AGOA) of the US.
South Africa’s maize production to dip, but remain sufficient to cover local demand (Engineering News)
While South Africa’s maize production will be about 2.1-million tons lower this year, there is still enough to meet local consumption and supply neighbouring countries that are having difficult growing seasons owing to adverse weather, financial services firm Standard Bank says. According to the Crop Estimates Committee (CEC), South Africa is projected to produce 14.3-million tons of maize this year, compared with 16.4-million tons produced last year, which was also the second-highest crop on record.
With domestic consumption of maize averaging below 12-million tons every year, Standard Bank environment, social and governance and climate change investment analyst Dr Penny Byrne says the country should have enough maize to cover local demand and some demand from abroad, including from neighbouring countries such as Zambia, Botswana and Zimbabwe.
Mombasa port grows 12pc despite regional rivalry (The East African)
Container traffic through Kenya’s main port serving several countries in the region grew by 11.9 percent in 2023 on the back of a resurgent trade and economic activity, its operator Kenya Ports Authority (KPA) has said. Traffic through Mombasa port is observed as an indicator of activity in the region’s economies. Apart from Kenya, it handles cargo to and from Uganda, Burundi, Rwanda, South Sudan, the eastern DRC and Somalia.
“Despite global uncertainties, the port of Mombasa has demonstrated significant growth in 2023. This is a testament to our commitment to operational excellence and efficiency,” he said on the Mombasa port performance. By weight, the Mombasa port handled 35.98 million tonnes of cargo in 2023, up from 33.88 million the previous year. Transit traffic — destined for countries other than Kenya — rose 11.5 percent to 11.41 million tonnes in 2023. “This growth underscores the port’s strategic importance in facilitating trade flows within the East African region,” Mr Ruto said.
Farm produce stuck due to ship shortage (The East African)
Tea, coffee, avocado and fresh produce farmers in Kenya are staring at losses as the wars in the Middle East and Ukraine continue to disrupt export routes. The Mombasa and Dar es salaam ports have lately recorded a shortage of refrigerated containers (reefers) and normal containers, blamed on delays caused by longer cargo delivery time.
Increasing attacks on major ships through the Suez Canal, which is a key route to the East African coast, have forced two of the world’s largest shipping groups — Mediterranean Shipping Company and Maersk — to divert their vessels via South Africa, extending the transit time by two weeks. Shippers have termed the disruption as grave, considering Kenya’s bumper avocado harvest beginning February.
Shippers Council of Eastern Africa acting chief executive Agayo Ogambi termed lack of reefers a big concern. “The shortage will affect exports of avocado and other fresh produce,” Mr Ogambi said. According to avocado exporters, the disruption has affected scheduled export dates, forcing some to suspend harvesting to mid-April when reefers are expected to arrive. Maersk, which handles more than 80 percent of Kenyan fresh produce confirmed delays.
Kenya’s Water and Sanitation Investors Conference 2024, held in the capital, Nairobi, concluded with a call for accelerated investment towards universal access to water and sanitation by 2030. The March 6-8 conference underscored the need for collaboration to support governments in bridging the financing gap through private sector funding, blended financing from commercial banks, Development Finance Institutions, and capital markets. Kenya requires about Ksh 995 billion (around $7.5 billion) to achieve universal access to water and sanitation by 2030.
Kenya, Tanzania push for anti-counterfeit law in EAC (The Star)
The East African region is planning to set a common standard on goods across the block to fight counterfeits. The latest push follows an earlier attempt under the 2011 Anti-Counterfeiting Bill that collapsed at the East African Legislative Assembly. Kenya’s Anti-Counterfeit Authority (ACA) and the Fair Competition Commission (FCC) of Tanzania have announced joint efforts to disrupt and combat the trade in counterfeit goods across the region. The partnership will see among others, regulation changes to harmonise the areas of conflict in the current laws of the two countries.
Anti-Counterfeit Authority Executive Director Robi Njoroge said the renewed partnership opens avenues for law enforcement agencies to develop innovative approaches and strategies in combating counterfeit trade. “The first step we want is to have the East Africa Anti-Counterfeiting Bill that will allow harmonisation of the laws not only in Kenya and Tanzania but our sister states, Uganda, Rwanda, Burundi, DRC, South Sudan...that’s something we are working on,” said Njoroge.
Kenya allows electronic IPOs to boost efficiency and confidence (The East African)
Kenya’s Capital Markets Authority has opened a window for new firms to list on the Nairobi Securities Exchange through an electronic process to reduce time and cost of initial public offerings (IPOs). This is part of reforms that the markets regulator and other stakeholders are implementing to inject fresh interest in the bourse, which attracted a quick succession of listings during President Mwai Kibaki’s administration.
“Electronic IPOs are more efficient. You know the IPO process is quite cumbersome — that is the reconciliation process and the refunds process and all those kinds of things. If this process can be automated, it becomes quite quicker and cleaner. It is very welcome. It also gives you an opportunity, in some cases, what they do is you can actually do a first come, first served basis and help to eliminate the issues of refunds,” Mr Mwai said.
How Kenya can boost agricultural productivity with fertiliser subsidy (Business Daily)
To assess the impact of the NFSP on farm productivity, researchers collected data in main maize producing counties and conducted appropriate econometric analysis to isolate the effect of fertiliser subsidy on maize yield by accounting for other factors such as seed, rainfall, access to credit, irrigation, gender, education, etc. These initiatives have evolved over the years, from targeted programmes for resource-poor farmers to broader, non-targeted schemes like the National Fertiliser Subsidy Programme (NFSP) implemented in 2022 to boost food production and stabilise prices in the wake of global supply chains disruptions related to the Russia-Ukraine conflict and the Covid-19 pandemic.
Wars threaten US interests in Africa, report says (The East African)
China and Russia could still be the biggest rivals of American interests especially in Africa, a public assessment of threats to Washington shows. The report compiled by the American intelligence community names the expected enemies: China, Russia, Iran and North Korea. But it also lists Houthis and the conflict in Gaza among threats to watch out.
The 2024 Annual Threat Assessment report published last week is a summation of threats seen from January to date, which means it reflects the most recent incidents on global scale like the Israel-Hamas war, Russia-Ukraine war, Sudan war as well as trouble in the Red Sea. The US further identified Africa’s vulnerability to terrorism as a threat to its own interests.
Brazil keen on increasing trade with Zimbabwe (The Herald)
Brazil is keen on expanding its relations with Zimbabwe to the fields of education and health following successes recorded in the agriculture sector, its Secretary for Africa and Middle East in the Ministry of External Relations of the Federative Republic of Brazil, Ambassador Carlos Duarte has said. He said this during the opening of the inaugural session of political consultations between Brazil and Zimbabwe in Harare yesterday.
“I am very pleased in the case of Zimbabwe to recall the progress we have achieved in the two technical cooperation projects that we have been involved with this country, both in the area of agriculture, as you have pointed out, and I am also happy to notice that Zimbabwe has already sent its comments on the final text of a third envisaged project regarding exports of flowers and ornamental plants, which can be one of the few projects in which Brazil will be receiving assistance from a developing country.
Mauritius most suitable gateway for Indian investors to Africa: Minister (The Economic Times)
Soomilduth Bholah, Minister of Financial Services and Good Governance, Mauritius, on a recent visit to India strongly urged the Indian investors to use the island country as a gateway to access the emerging African markets given Mauritius expertise on the continent. Bholah undertook an ‘India Business Mission’ from March 14 to March 23 covering New Delhi, Chennai, Hyderabad, and Mumbai. Speaking to ET in New Delhi the Minister urged investors and companies in India to set up their office in Mauritius to operate in Africa. “Mauritius is part of several regional groupings in Africa. We have strong understanding of African markets, resources and political systems and can guide Indian investors about investing in Africa.”
Nigeria Customs suspends 25% penalty on improperly imported vehicles (Premium Times Nigeria)
The Nigeria Customs Service (NCS) has announced the suspension of the 25 per cent import duty penalty on improperly imported vehicles. The directive for the suspension came from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and is said to be part of strategies to help rejuvenate the economy and ensure compliance. The National Public Relations Officer of the Nigeria Customs Service, Abdullahi Maiwada, made this known in a statement on Friday.
“The Nigeria Customs Service (NCS), under the directives of the Honourable Minister of Finance and Coordinating Minister of the Economy, has initiated a 90-day window, effective from 4th March 2024 to 5th July 2024, for the regularisation of import duties on specific categories of vehicles. “To ease economic hardship and encourage compliance, the Honourable Minister and Coordinating Minister of the Economy has approved the suspension of the 25% penalty previously imposed in addition to import duty on improperly imported vehicles,” the official said.
The Board of Directors of the African Development Bank Group approved a $50 million loan for the Yobe State Environmental and Climate Change Action Project (ECCAP) to enhance climate change resilience, boost food security, and improve livelihoods for over 3.5 million people in northeast Nigeria. The project cost is estimated at $101.34 million with the African Development Bank providing a $50 million loan while the Arab Bank for Economic Development in Africa (BADEA) is expected to provide $30 million in co-financing. Yobe State Government will contribute $4.52 million in counterpart funding, and project beneficiaries are contributing $16.82m
New Report to Address Poverty in Liberia Launched (World Bank)
The World Bank has launched a new report titled Liberia Poverty Assessment 2023 Report: Towards a More Inclusive Liberia. The report highlights that while 3 out of 10 people in Monrovia are living in poverty, the situation is significantly worse in rural areas, where 8 out of 10 individuals were affected by poverty in 2016. This stark disparity between urban and rural areas poses a significant challenge to poverty reduction efforts in Liberia.
The report describes Liberia as one of the world’s poorest countries, having experienced a volatile growth trajectory marked by challenges of fragility. Despite possessing significant natural resources such as gold, iron ore, and plenty of land, Liberia’s economic performance has been unstable, largely hindered by conflict and reliant on exports of primary commodities. This resource-driven growth model has failed to generate sufficient employment opportunities for Liberians or foster broad-based growth and development, further exacerbating the country’s poverty and economic challenges.
Mauritania: eTrade Readiness Assessment (UNCTAD)
The eTrade Readiness assessment (eT Ready) of Mauritania is the thirty-sixth assessment conducted by UNCTAD. It provides a detailed diagnostic of the e-commerce ecosystem in Mauritania pinpointing both obstacles and prospects for its advancement. It also provides a set of key policy recommendations to address those challenges and to seize the opportunities arising from digitalization. Trade logistics and trade facilitation are major challenges. The lack of a reliable physical addressing system negatively impacts the quality of last-mile delivery services of products ordered online. Facilitating international trade and digitalizing related administration and logistic procedures are perceived as the most pressing factors for fostering cross-border e-commerce development.
Advancing Coordinated Border Management: Strategies for Efficiency and Competitiveness (COMESA)
Borders serve as crucial points where various agencies act as gatekeepers to territorial boundaries, with Customs authorities and other border management agencies playing essential roles in community protection. There is a notable shift towards facilitation and competitiveness through the implementation of Coordinated Border Management (CBM) programs. CBM aims to enhance efficiency and competitiveness by facilitating legitimate trade and travel while ensuring predictable and streamlined clearance procedures.
In the COMESA region, CBM is being implemented under the Trade Facilitation Project, funded by the European Union under the EDF 11 program. Previous efforts to facilitate trade within COMESA have not yielded significant results, as intra-COMESA trade flows remain low at around 10%. The COMESA Medium-Term Strategic Plan 2021-2025 aims to raise this figure to 25%. “Effective implementation of CBM is a crucial strategy that can significantly contribute to achieving this ambitious goal,” remarked COMESA Director of Trade, Dr. Christopher Onyango, during his address at the Coordinated Border Management Implementation Workshop held in Lusaka, Zambia, on March 20 – 22, 2024.
The African Pharmaceutical Technology Foundation (APTF) and Nigeria’s National Institute for Pharmaceutical Research and Development(link is external) (NIPRD) will work together to revolutionize the country’s pharmaceutical and vaccine manufacturing industry. The decision was announced by the two organisations following a High-Level Dialogue on Technology Gaps in Nigeria’s Pharmaceutical and Vaccine Industry’ hosted in Abuja from 18-19 March. The APTF will work with countries such as Nigeria to help them achieve Good Manufacturing Practices (GMP) to ensure they meet World Health Organization standards, and to build local capacity and specific skills to strengthen domestic production of medicines.
Key Statistics and Trends in Trade Policy 2023 (UNCTAD)
With the notable exception of the increase in bilateral tariffs between the United States of America and China, tariffs applied to imports have been largely constant declining during the last few years, with tariff protection remaining a significant factor in some sectors and markets. As of 2022, trade costs directly related to tariffs remained stable at about 2 per cent for developed countries and about 4 per cent for developing countries. Tariff restrictiveness remains substantial in many developing countries, especially in South Asian and African countries. Moreover, tariffs remain relatively high in some sectors where tariff peaks are present, including some of key interest to low-income countries such as agriculture, apparel, textiles, and leather products. Tariffs also remain substantial for most South–South trade.
Red Sea crisis: Adverse impact on trade data to be substantial in new fiscal; Asia, Africa, Europe to face most disruption, says GTRI (Financial Express)
The Red Sea crisis is expected to adversely impact trade volumes in a substantial way in 2024, said a report by GTRI, adding that rising shipping, and insurance costs, delayed arrival of shipments will continue to disrupt global value chains, squeeze margins and make exports of many low margin products unviable from current locations. Countries like Asia, Africa and Europe will face the most disruption across industries. Started in a major way on October 19, 2023, the Red Sea crisis is in its fifth month now.
The Red Sea shipping crisis has disrupted global trade and supply chains, particularly affecting routes through the Suez Canal, which handles about 30 per cent of global container trade. With ships now detouring around Africa’s Cape of Good Hope, transit times have gone up by 30 per cent and the global container shipping capacity too has dropped by about 9 per cent, said GTRI. This detour delays shipments from Asian producers to European consumers by up to 20 days.
Better data needed to green the digital transformation (World Bank Blog)
The rapid expansion of digital technology has already resulted in a major rise in energy consumption. This underscores the urgent necessity to address the environmental consequences associated with this sector. A new report from the International Telecommunication Union (ITU) and the World Bank, ‘Measuring the Emissions & Energy Footprint of the ICT Sector: Implications for Climate Action,’ presents a comprehensive analysis of the energy and emissions landscape across 30 countries. The report examines connectivity networks, data centers, and consumer devices, offering insights into the current environmental impact of the information and communication technology (ICT) sector. It also explores policy and regulatory implications through detailed case studies from France, the United Kingdom, Brazil, and Rwanda.
Conflict and violence remain the main drivers of displacement and movements in sub-Saharan Africa in 2022, exacerbated by increasing climate shocks and hazards, according to a new report launched today by the International Organization for Migration (IOM) and the African Union Commission (AUC). The report, which is the second edition of the Africa Migration Report, highlights that migration primarily occurs within the Africa continent, rather than beyond its borders.
The interlinks between migration drivers in Africa, including economic disparities, political instability, and the impacts of climate change is also emphasized in the report. Prolonged drought in the Horn of Africa and severe seasonal flooding across the continent evidently led to record internal displacements in 2022, adding to the fact that many African countries experienced conflict and climate events at the same time.
Development banks urged to invest more in power, transport infrastructure (BusinessWorld Online)
Multilateral lenders should make more investments in power and transport infrastructure to meet the United Nations’ sustainable development goals (SDGs), according to the European Investment Bank (EIB). “In the coming years, emerging markets will require significant infrastructure investment to facilitate economic growth, respond to demographic and urbanization pressures and meet the sustainable development goals,” the EIB said in its Global Emerging Markets Risk Database Consortium report.
Investment in the global infrastructure market is valued at around $1 trillion a year, though the unmet need is estimated at $2-4 trillion. More than half of the total investment demand would be allocated to finance generation, capacity, transmission and distribution networks in countries’ power sectors. It would also be needed for investment in transport (roads, ports and airports) and telecommunications.
WTO members examine ways to support smooth transition after graduation from LDC status (WTO)
Welcoming the decision on LDC graduation reached at the 13th WTO Ministerial Conference, WTO members shared experiences at a meeting of the Sub-Committee on Least Developed Countries (LDCs) on 25 March on how to support LDCs as they graduate from the LDC category. “It is very encouraging to see that WTO members have shown commitment to support a smooth transition for graduating LDCs,” said the newly elected chair of the Sub-Committee, Ambassador Ib Petersen of Denmark.
Members make progress with SPS Agreement Sixth Review, discuss trade concerns (WTO)
WTO members made progress with the Sixth Review of the Operation and Implementation of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and addressed a high number of trade concerns at a meeting of the SPS Committee on 20-22 March. Members also took note of the Declaration adopted at the 13th Ministerial Conference (MC13) in Abu Dhabi on the implementation of special and differential treatment (S&DT) provisions of the SPS Agreement and the Agreement on Technical Barriers to Trade (TBT).
Quick links
High dependence on commodity trade challenge to AfCFTA — Stanchart report (Graphic)
Rising from the Ashes: Tigray’s industrial renaissance amidst war’s toll (Addis Standard)
BRICS development bank aims to make $5 billion in loans in 2024 (CGTN Africa)
Digital Money, Carefully Managed, Can Aid Pacific Island Growth and Equality (IMF)
UN Women welcomes the adoption of robust blueprint to end women’s poverty (UN Women)
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Call to transform the biodiversity sector (SAnews)
Minister of Forestry, Fisheries and the Environment Barbara Creecy has called for the urgent transformation of the biodiversity sector. “This transformation must ensure the meaningful and equitable inclusion of rural communities and previously disadvantaged individuals into the biodiversity economy, and biodiversity conservation and sustainable use in general,” Creecy said on Monday.
Leading the inaugural Biodiversity Economy and Investment Indaba in Boksburg, the Minister said such inclusion is critical for sustainable rural socio-economic development to address the triple burden of poverty, inequality and unemployment. “This requires new approaches such as investment in community owned land for conservation compatible land-use with biodiversity-based enterprises, more inclusive processes, opening up of value chains, and ensuring equitable and inclusive access and benefit flows.
First-quarter agriculture sentiment largely influenced by droughts, public infrastructure deterioration (Engineering News)
The Agricultural Business Chamber (Agbiz) and Industrial Development Corporation’s Agribusiness Confidence Index (ACI) has remained unchanged in the first quarter of the year at a level of 40. This followed a deterioration of ten points to 40 in the fourth quarter of last year.
The ACI remains below the neutral 50-point mark, which implies that South African agribusinesses remain downbeat about business conditions, mostly owing to persistent port issues, poor rail infrastructure and worsening municipal service delivery. Other factors such as the El Niño-induced drought devastating summer grains and oilseeds in some regions; rising crime rates; lingering animal disease challenges; persistent loadshedding; and the uncertain policy environment ahead of elections, also continue to weigh on sentiment.
The volume of export subindex fell by seven points to 35 in the first quarter of the year, which signals the potential decline in export volumes this year – from a record $13.2-billion of exports in 2023.
Defence PS Attends The Second Session Of The Kenya-China Investment Forum Ahead Of The Focac Summit (Ministry of Defence – Kenya)
Defence Principal Secretary, Mr. Patrick Mariru, and his counterpart in the State Department for National Treasury, Dr. Chris Kiptoo participated in the Second Session of the Kenya-China Joint Commission on Trade, Investment, Economic, and Technical Cooperation. They were joined by a Chinese delegation led by Assistant Minister of Commerce, Mr. Tang Wenhong.
During the session held at a Nairobi hotel, the discussions centered around the implementation of nine programs resulting from the 8th Ministerial Conference of the Forum for China-Africa Cooperation (FOCAC) by the Government of Kenya. Additionally, priority bilateral cooperation areas were explored with the aim of strengthening the already robust Kenya-China bilateral relations for the benefit of citizens from both states.
The forum also served as a planning platform for the proposed upcoming FOCAC summit scheduled to take place later this year in Beijing.
Kenya-Uganda oil tiff: Dodoma offer Kampala can’t refuse (Nation)
Tanzania has seized a momentous opportunity in the Kenya-Uganda stalemate over oil importation with a raft of offers that Kampala cannot refuse. The EastAfrican understands that President Samia Suluhu Hassan’s government has offered to register Uganda National Oil Company (Unoc) to use the Dar es Salaam port in the importation of fuel for Uganda as Kenya sticks to its guns on Uganda’s demands.
Meanwhile, a case that Kampala lodged at the East African Court of Justice (EACJ) awaits determination, with no set timelines although various sources have indicated a willingness by Uganda to withdraw it, on which Kenya is banking. Presidents William Ruto, Yoweri Museveni and Samia recently converged in Zanzibar -- rare tripartite meeting reportedly requested by Uganda, people close to the discussions say, to seek assurance of Uganda’s smooth importation of petroleum and other products.
And while Kenya offers Uganda a pass through the Northern Corridor, it seems to insist on local regulatory processes, saying they are legal under Kenyan law. Nairobi is also opposed to Uganda’s decision to take the matter to the regional court.
Tanzania and Rwanda to open new border point (The East African)
Rwanda and Tanzania are moving to open a new border post, as the two countries deepen trade ties at a time trade and political forces pull regional partners in different directions. The new post will be opened at Tanzania’s Kyerwa district in Kagera Region to provide a second passage for people and goods and reduce pressure on the Rusumo border post. Tanzania’s Minister of Foreign Affairs and East African Cooperation, January Makamba, said this in Kigali during his recent four-day visit to Rwanda.
“We want to make it easy for people of the two countries to cross and visit each other,” he said. “We have talked about the possibility and readiness to open a new border front in Kyerwa, and we are ready to have it operational.”
South Sudan orders new tracking measures for transit cargo (The East African)
About 1.5 million metric tonnes of cargo passing through Mombasa port to South Sudan will have to be tagged before leaving the country in measures to control illegal, undeclared goods. South Sudan Minister of Finance and Planning Dr Bak Barnaba Chol has informed shippers on the new tracking measures by Electronic Cargo Tracking Note (ECTN). The country has appointed Invesco Uganda Ltd, under supervision by the Customs Revenue Division of South Sudan Revenue Authority, to start and run the programme.
“The sole purpose of the ECTN is to help the government of South Sudan to maximise its revenue collection by remedying the challenges of underestimation, undervaluation, diversion of cargo and round tripping,” Dr Chol said.
All importers and exporters will pay the agent’s service charge of $350. ECTN also known as Waiver Certificate is a mandatory shipping document for importing cargo to 25 African countries. The cargo tracking note is designed to provide local customs authorities with the required information and visibility about the import shipment. But Kenyan clearing and forwarding agents have said it will increase the cost of transport and that payments should be made to the South Sudan agents not Kenyan brokers.
Trade policy review - Angola 2024 - Concluding Remarks by the Chairperson (WTO)
Members appreciated Angola’s efforts to improve its business climate, including measures to reform taxes, ease visa requirements, implement a single window for investment, and establish a regime for free trade zones. Members welcomed steps to simplify and modernize Angola’s customs procedures, including those taken to implement the WTO Trade Facilitation Agreement, which Angola ratified in 2019.
The World Bank Group’s new Country Climate and Development Report (CCDR) for Liberia explores the mounting risks that climate change could undercut Liberia’s economy and push more Liberians into poverty. Highlighting the role of proactive action, the report calls for adaptation and better planning for low-carbon growth, land use, and investment.
While Liberia is among the lowest emitters of greenhouse gases responsible for global climate change, it is among the most vulnerable countries to climate impacts. For instance, rice – Liberia’s main staple – is highly reactive to increased humidity, extreme temperatures, heavy rainfall, and the pests that flourish under these conditions. The CCDR finds that Liberia’s rainfed rice production could be reduced by up to 13 percent over 2041-2050 from climate change compared to the baseline scenario. The resultant decrease in income and heightened reliance on costly imports could exacerbate poverty and food insecurity for many Liberian households.
Sierra Leone Records Progress in Human Capital Development (World Bank)
Sierra Leone has made commendable strides in improving human capital development with the government demonstrating a strong commitment to enhancing the well-being and productivity of its population through significant investments in health and education, according to a new World Bank report launched today in Freetown. The report also highlights the prioritization of social protection interventions like cash transfers to extremely vulnerable groups as a notable intervention aimed at reducing poverty and building human capital.
The Sierra Leone Human Capital Review: Maximizing Human Potential for Resilience and Inclusive Development, provides critical insights into the country’s efforts to foster human capital development and economic growth. The report examines the current state of health, education, and social protection systems in the country and offers recommendations to enhance the effectiveness of human capital investments.
Goldstar Air to enhance cargo movement across the continent under AfCFTA (GhanaWeb)
Wholly-owned Ghanaian airline, Goldstar Air aims to enhance cargo movement across the continent under the Africa Continental Free Trade Area (AfCFTA) initiative. Each year, more than 52 billion tonnes of cargo are shipped by air, creating a constant demand for industry jobs. As an indigenous airline, our vision extends to operating over one hundred aircraft and generating sustainable job opportunities for Ghanaians to connect African businesses and capitalize on the opportunity presented by the Africa Continental Free Trade Area, with a staggering 44 million Small and Medium- sized Enterprises (SMEs) across Africa.
The continent possesses the resources to make significant economic strides, and the Africa Continental Free Trade Area aims to eliminate trade barriers, representing a significant opportunity for Africa to assert itself on the global economic stage. Therefore, the airline has introduced Afrik Allianz, a multi-model single air transportation alliance connecting Africa and beyond.
Why travel within Africa is expensive despite visa openness initiative (Businessday Nigeria)
Despite the continent’s allure with its stunning landscapes from the majestic Victoria Falls in Zimbabwe to the pristine beaches of La Digue in Seychelles, the costs of intra-Africa travel rate remains one of the highest globally when compared with other regions. This stems from a myriad of factors, from economic struggles to colonial legacies, amid visa openness initiatives allowing 54 African passports visa-free access to other nations.
For instance, airfares from Nigeria to popular African destinations range from N1 million to N6 million, pricing many potential travellers out of the market. Bernard Bankole, an aviation analyst, attributes these sky-high costs to weak African currencies, especially the naira, expensive aviation fuel and maintenance of air planes, as well as strained trade relations between African countries. He emphasised the need for seamless intra-continental trade and cooperation to make travel more affordable.
FTA talks with SACU nations on the cards after new govt takes over (Business Standard)
Discussions for a free-trade agreement (FTA) between India and the five-member South African Customs Union (SACU) nations may begin after the new government takes over in June, two people aware of the matter said. The customs union includes South Africa, Namibia, Botswana, Lesotho and Eswatini. After the Lok Sabha elections, India plans to reach out to SACU nations to launch trade talks, one of the persons cited above said. Last year, discussions on the terms of reference were initiated, but not much progress was made thereafter.
Bottlenecks stagnating the EAC integration amid fresh lobbying (The Standard)
The regional private sector has noted with concern the slow integration of the East African Community (EAC), which has now informed a renewed intent to re-strategise their lobbying efforts. The services sector will now be prime owing to some of the bottlenecks businesses in the region have faced when trading in goods.
The East African Business Council (EABC), which is the regional lobby body for the private sector, recently held a two-day meeting in Nairobi, together with the East African Community (EAC) and other partners to devise new ways of advancing the integration agenda. The meeting was aimed at revamping the Technical Working Group for this purpose. It was noted in the meeting how some of the tools put in place to reduce trade barriers and increase regional exchange of goods and services are not working. This is the reason why intra-EAC trade stands at 15 per cent.
DRC Minister visits COMESA: affirms commitment to regional integration (COMESA)
The Minister of Regional Integration in the Democratic Republic of Congo, Hon. Antipas Mbusa Nyamwisi visited the COMESA Headquarters in Lusaka, Zambia on Friday 22 March 2024 and held discussions with the Secretary General, Chileshe Mpundu Kapwepwe. The discussions focused on key developments in the implementation of regional integration programmes that relates to the DR Congo, including an update on the COMESA Free Trade Area (FTA) which the country is poised to fully enlist.
Currently, the FTA has sixteen participating Member States while the DRC is in the process of tariff reduction that will pave way for its full participation once it is completed. “We will continue doing our best to advance regional integration,” said Minister Nyamwisi. “The DRC believes that as Africa and the COMESA region, we should avoid remaining isolated. We need each other by pooling our resources for the betterment of all people.”
The ECOWAS Commission reviews a draft action plan for its Integrated Maritime Strategy (EIMS) (ECOWAS)
In order to achieve the objectives of its Integrated Maritime Strategy, the ECOWAS commission is holding an interdepartmental meeting to review the draft Action Plan of the EIMS from 20 to 22 March 2024 at Abidjan, Cote d’Ivoire. The EIMS is a legal instrument that provides a comprehensive reference framework for actions to be taken by the various stakeholders at national and regional levels.
The general objective of this meeting, which brings together different ECOWAS departments; representatives of ECOWAS Regional Fisheries Centers, ECOWAS institutions and agencies and West African Fisheries Commissions, is to make sure that the technical departments adopts the SMIC Action Plan in order to ensure integrated and coordinated implementation in line with the mission of the ECOWAS Commission.
African Development Bank, IOM launch report on harnessing migration for development in Africa (AfDB)
The African Development Bank and the International Organization for Migration (IOM) today released a joint report designed to support practitioners and decision makers to turn migration into a force for development in Africa. The report, Diaspora Engagement, Climate-Induced Migration and Skills Mobility: A Focus on Africa examines the impact of migration on human development and poverty reduction. It provides insights to leverage the potential of the African diaspora, build climate resilience, and harness skills mobility to drive Africa’s development trajectory.
Africa Development Bank and the US government strengthen strategic partnership (AfDB)
Dr. Akinwumi Adesina, the president of the African Development Bank Group, has praised US President Joe Biden’s administration for its approach towards Africa particularly its emphasis on the development of quality infrastructure, which he described as the “backbone of every economy.” Dr Adesina was speaking on Tuesday when he received a delegation from the US Trade and Development Agency (USTDA) led by Director Enoh Ebong, at the Bank’s headquarters in the Cote D’Ivoire’s commercial capital, Abidjan.
The PGII initiative sees the US investing over $1.5 billion in various African projects, including digital access, agriculture, clean energy infrastructure, and the Lobito corridor for transportation corridor linking Zambia, Angola, and the Democratic Republic of Congo.
EU backs AU’s initiative for in-continent vaccine production (The Independent Uganda)
“Learning the lessons from the COVID-19 pandemic, the AU and the EU are committed to advance health systems and strengthen health capacities globally,” she said on March 20 in Brussels, “We are proud of the results achieved in increasing local manufacturing of medicines and vaccines in Africa, for Africa.” She said Team Europe’s (joint European Union approach that seeks to pool EU members’ resources and expertise to deliver more effective and greater impact) initiative on manufacturing and access to vaccines, medicines and health technologies in Africa has already mobilised over €1.3 billion in grants and loans.
Britain agrees $100mln trade finance to boost Africa food security (ZAWYA)
Development lender British International Investment said on Monday it had agreed a $100 million finance facility with the Eastern and Southern African Trade and Development Bank (TDB) to boost trade finance, farming and food security in the region.
The finance will help fund trade, including importing and exporting goods, on a continent where many debt burdened African economies face currency depreciation and rising debt and inflation compounded by issues such as climate change. Providing more capital to help bolster trade finance in the region is important as many international lenders have pulled back from offering it, leading to a finance gap of up to $120 billion a year, African Development Bank research shows.
Quick links
What mega-farming could mean for African economies (GIS Reports)
Global competition law and policy approaches to digital markets (UNCTAD)
Brazil’s ambitious G20 agenda is threatened by geopolitics (Arab News)
India wants WTO bodies to prioritise finance access, food security, tech (The Economic Times)
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$10-billion Namibian green hydrogen project receives major German boost (Engineering News)
Namibia’s first gigawatt scale green hydrogen project – the $10-billion Hyphen development scheme – this week received a major boost from Germany. The boost came in the form of the German government presenting a letter of intent to Enertrag, confirming the suitability of the project to be designated as a strategic foreign project. Hyphen Hydrogen Energy is a Namibian-registered joint venture between Enertrag and Nicholas Holdings.
Strategic foreign project designation renders projects eligible to receive targeted support – a status reserved for high-priority global projects of strategic interest to Germany. The project is seen as the first step of a large-scale green hydrogen industry in various regions in Namibia to support both economic growth in the Southern African country itself and to assist the world in achieving its decarbonisation goals
Hyphen and the Namibian government aim to begin construction in January 2025, with commissioning of the first phase by the end of 2026. Moreover, the Namibian government confirmed in June that it would take up a 24% equity stake in the project, which is targeting yearly production of one-million tonnes of green ammonia by 2027, and then the two-million tonnes by 2029, mostly for export.
Nigeria sustaining investments in digital technology, Tinubu tells META delegation (Premium Times Nigeria)
President Bola Tinubu says his administration is sustaining investments in digital technology to enhance the sustainability of small businesses, expand opportunities across sectors, and propel Nigeria to become the lodestar of information and communications technology in Africa. Speaking when he received a delegation from Meta Platforms Incorporated, led by Nick Clegg, former UK Deputy Prime Minister and Meta’s President of Global Affairs, at the State House in Abuja on Thursday, the president said Nigeria cannot afford to be left behind in this age of technological advancements; hence, his administration is opening up channels of opportunities in information and communications technology, deepening capacity, and fostering partnerships.
Digital platform to integrate small holder farmers in agriculture value chain (Kenya News)
Stakeholders in the Kenya Rural Transformation Centers Digital Platform (KRTCDP) project have for the last one year been collecting critical views from farmers on three key value chains of dairy, Irish potatoes and maize.
The project funded by African Development Bank (AfDB)project was launched a year ago and is being spearheaded by the Cooperative University of Kenya (CUK) to empower and integrate smallholder farmers and related stakeholders in the agriculture value chain into a digital platform.
How Rwanda will benefit from hosting Pan African Export Fund (The New Times)
The Afreximbank officially launched its domiciled Fund for Export Development in Africa (FEDA) in Kigali, on March 20, an impetus to the country’s positioning as a financial hub and an active participant of intra-African trade. FEDA was established to tackle Africa’s $110 billion financing gap for intra-African trade, value-added export development, and industrialization value chains.
Rwanda became the first among 15 African nations to ratify its establishment agreement, and is now hosting the $1 billion African Continental Free Trade Area (AfCFTA) Adjustment Fund managed by FEDA. As the country continues to attract international financial institutions through different initiatives like the Kigali International Financial Centre (KIFC), greater benefits can only be expected, with significant economic impact.
Trans-Zambezi among Africa’s safest corridors (New Era)
The Trans-Zambezi Highway officially known as the Walvis Bay-Ndola-Lubumbashi Development Corridor (WBNLDC) is without a doubt one of the safest corridors in Africa, as it eliminates the necessity for police escorts to accompany trucks moving valuable cargo along the corridor. To maintain this status, the Walvis Bay Corridor Group (WBCG) undertakes regular corridor assessments.
These were the views of WBCG CEO Mbahupu Tjivikua, who explained the economic benefits of the Trans-Zambezi highway during a recent interview with this reporter. ”Given the safety of the corridor and the fact that Namibia has the best quality roads in Africa, travellers are poised to experience the WBNLDC as not only safe but also efficient and reliable,” Tjivikua said.
He said the corridor has become one of the preferred trade routes for imports and exports in the region, consequently reducing the cost of doing business and enhancing intra-Africa trade in the region. The corridor is a major trade route linking the port of Walvis Bay in Namibia with the hinterland countries of Zambia and the Democratic Republic of Congo (DRC).
Positioning the Lobito Corridor as a Model for Foreign Investment (Energy Capital & Power)
In February this year the U.S. International Development Finance Corporation announced new financing in support of the Lobito Corridor – a transnational 1,300-km railway line linking Angola’s Port of Lobito with southern DRC and north-western Zambia. The U.S. and its partners – which include the European Commission, African Development Bank and Africa Finance Corporation – have already mobilized nearly $1 billion for the project, representing the largest single US and EU investment on the African continent in recent years.
The Lobito Corridor has been uniquely able to galvanize broad international support, primarily due to its alignment with the energy transition and economic ties to US and European markets. As a result, the project serves as a finance and development model for other large-scale African infrastructure projects seeking foreign investment and participation. The upcoming Invest in African Energy (IAE) forum in Paris will unpack this model, as it aims to connect Africa’s project pipeline with global investor interest. For Africa, infrastructure deals represent some of the most strategic transactions, able to trigger a “domino effect” on local job creation and the establishment of value-added industries.
East Africa rebrands energy summit to attract investments (The Citizen)
Potential energy investments in the East African Community (EAC) region will be rebranded under a recently signed deal. The partnership is intended to bolster the key economic sector through a platform that will increase the visibility of available opportunities. The deal was signed between the EAC and EnergyNet Limited, an entity based in London that profiles energy projects in the region. The EAC deputy secretary general in charge of infrastructure, productive sectors and political affairs, Andrea Maleuth, signed on behalf of the community.
The inking of the partnership comes nearly two months after the Tanzania Energy Cooperation Summit (TECS), which took place in Arusha. The summit, organised by EnergyNet with the support of an array of donors, was aimed at wooing more energy investors to Tanzania and other eastern African states. The partnership signed in Washington during the March 5th to 6th Powering Africa Summit gave TECS more responsibilities for energy development in the region.
“Energy is a pillar for development and growth and is crucial for the functioning of the economies of the EAC partner states. “The East Africa Energy Cooperation Summit will serve as the ideal platform for advancing projects and bringing tangible changes to the industry,” Mr Maleuth said. He added that energy was a crucial sector of the regional economies and a catalyst for the EAC’s industrialization strategy for 2012–2022.
EAC blue economy drive to benefit from €28 million fish project (The Citizen)
The blue economy drive in East Africa will benefit from the 28 million Euro project through increased fish output. Ecofish, the five-year project being implemented in four economic blocs in Africa since 2019, comes to an end later this year.
“We need fish to feed our population. The fisheries sector will also boost our blue economy,” said Mr Edward Rukunya, a fisheries expert. He said this here on Thursday when addressing a steering committee meeting of the programme being implemented in various countries. Mr Rukunya, the director of fisheries with the Lake Victoria Fisheries Organisation (LVFO), said that through the project, fishermen will be able to increase catches.
Within the East African Community (EAC) bloc, the project is being implemented around lakes Victoria and Tanganyika. The EAC region was allocated some four million euros (Euro 2 million each) for the two lakes’ basins out of 28 million euros for the continent-wide project. According to Mr Rukunya, the Lake Victoria basin was notorious for illegal fishing in all three riparian states.
A recent report by the East African Legislative Assembly (Eala) said the economic contribution of fisheries to national GDPs is only seen in raw harvests rather than in earnings. Statistics, though, show that the contribution of the fisheries sector to the partner states’ GDP has continued to increase. Currently, the sector contributes 1.75 percent to the GDP of Tanzania and 3.6 percent and 0.6 percent for Uganda and Kenya, respectively.
‘Settle all EAC partner states trade bills in local currencies’ (IPP Media)
Partner states in the East African Community (EAC) zone need to settle payments in intra-EAC trade in local currencies to mitigate the depreciation of the shilling to dollar, a regional executive has appealed. John-Bosco Kalisa, the East African Business Council (EABC) executive director, made this declaration at the CEOs roundtable meeting on East African integration and economic outlook for 2024 in Dar es Salaam on Wednesday.
East African countries mostly exceeded 5.0 percent growth levels during 2023, underscoring strong performance and diversified economies, while showing a low share of savings and tax to GDP which leads to budget deficit and higher borrowing, it cautioned
John Ulanga, the director of international trade at the Foreign Affairs ministry, noted that the EAC industrialisation strategy, transport inter-connectivity and trade facilitation are crucial elements to boosting intra-EAC and Africa-wide trade growth.
New Milestone in the AfCFTA-anchored Pharma Initiative’s engagement with Kenya’s Ministry of Health (UNECA)
The AfCFTA-anchored Pharma Initiative team of the Economic Commission for Africa convened a two-day meeting in collaboration with the Ministry of Health Kenya in Nairobi to review and provide comments on the Pooled Procurement Legal Instrument & Guiding Framework in preparation for the upcoming Ministerial Meeting to be convened by the ECA in May 2024 where the documents will be presented to the Ministers for signature and endorsement.
The deliberations resulted in concrete feedback and recommendations, that once compiled will be submitted to the ECA by the Permanent Secretary (PS) of the Kenyan Ministry of Health. On behalf of the technical team, the PS will submit the recommendations and briefs to keep the Minister of Health appraised prior to the forthcoming Ministerial Meeting of participating pilot countries.
The UNESCO biosphere reserve of Príncipe island was the site of the first international conference dedicated to biodiversity financing hosted by the Government of São Tomé and Príncipe, the Regional Government of Príncipe, in partnership with the United Nations and the African Development Bank.
Raising awareness of the challenges in mobilizing sustainable financing, the event held 14-15 March 2024, identified concrete mechanisms to generate additional financial flows anchored in biodiversity. It also showcased solutions that Mozambique, Rwanda, Seychelles and Cape Verde have found to attract innovative environmental finance and blended finance investments to support terrestrial (green) and marine (blue) conservation activities.
Diaspora, Climate-Induced Migration and Skills Mobility: A focus on Africa (AfDB)
The pursuit of better employment opportunities is a major drive for intra-regional migration within Africa and towards other regions outside the continent. In a post-pandemic era, it has become evident that safe, orderly, and regular migration can play a role in “building back better”. However, there is a need to strengthen capacities to gain a deeper understanding of how mobility can be optimized as a catalyst for the socio-economic recovery of an integrated Africa. When well-managed, migration can be a powerful strategy for human development and poverty reduction. It can further foster sustainable and equitable economies by introducing innovation, skills, knowledge, and remittances to both the countries of origin and destination. This dynamic can open new markets, create economic opportunities, and address labor market gaps, ultimately increasing productivity.
UNCTAD’s Global Trade Update shows encouraging signs amidst persistent challenges (UNCTAD)
After facing declines over several quarters, international trade is poised for a rebound in 2024, according to the latest Global Trade Update from the United Nations Conference on Trade and Development (UNCTAD).
In 2023, global trade saw a 3% contraction, equalling roughly $1 trillion, compared to the record high of $32 trillion in 2022. Despite this decline, the services sector showed resilience with a $500 billion, or 8%, increase from the previous year, while trade in goods experienced a $1.3 trillion, or 5%, decline compared to 2022.
The fourth quarter of 2023 marked a departure from previous quarters, with both merchandise and services trade stabilizing quarter-over-quarter. Developing countries, especially those in the African, East Asian and South Asian regions, experienced growth in trade during this period.
During 2023, trade performance diverged between developing and developed countries, with the former experiencing a decline of approximately 4% and the latter around 6%. South-South trade, or trade between developing economies, saw a steeper decline of about 7%. However, these trends reversed in the last quarter of 2023, with developing countries and South-South trade resuming growth while trade in developed countries remained stable.
BRICS: Egypt To Ditch The US Dollar in 2024? (Watcher Guru)
BRICS members Russia and Egypt were recently in talks as Russian President Vladimir Putin and Egyptian President Abdel Fattah al-Sisi reviewed agendas on the phone. During those talks, President al-Sisi shared his support for the newly re-nominated Russian leader and discussed multiple mutually beneficial projects. Among those plans, the new BRICS nation Egypt will look to ditch the US dollar in 2024 completely.
Egypt was one of five nations to accept an invitation to join the BRICS alliance at its 2023 summit. Subsequently, it has already firmly embraced its shift to local currency trade, ditching the US dollar. In the latest talks, the Egyptian President reinforced the country’s plan to follow Russia’s de-dollarization efforts.
Uneven development progress is leaving the poorest behind, exacerbating inequality, and stoking political polarization on a global scale. The result is a dangerous gridlock that must be urgently tackled through collective action, according to a new report released today by the United Nations Development Programme (UNDP).
The 2023/24 Human Development Report (HDR), titled Breaking the Gridlock: Reimagining cooperation in a polarized world, reveals a troubling trend: the rebound in the global Human Development Index (HDI) – a summary measure reflecting a country’s Gross National Income (GNI) per capita, education, and life expectancy – has been partial, incomplete, and unequal.
Global inequalities are compounded by substantial economic concentration. As referenced in the report, almost 40 percent of global trade in goods is concentrated in three or fewer countries; and in 2021 the market capitalization of each of the three largest tech companies in the world surpassed the Gross Domestic Product (GDP) of more than 90 percent of countries that year.
“The widening human development gap revealed by the report shows that the two-decade trend of steadily reducing inequalities between wealthy and poor nations is now in reverse. Despite our deeply interconnected global societies, we are falling short. We must leverage our interdependence as well as our capacities to address our shared and existential challenges and ensure people’s aspirations are met,” said Achim Steiner, head of the UN Development Programme. “This gridlock carries a significant human toll. The failure of collective action to advance action on climate change, digitalization or poverty and inequality not only hinders human development but also worsens polarization and further erodes trust in people and institutions worldwide.”
STDF promotes safe trade for development in Africa on International Francophonie Day (WTO)
An event held at the WTO to mark International Francophonie Day on 20 March highlighted how compliance with sanitary and phytosanitary (SPS) measures can foster economic growth, create jobs and promote international trade opportunities in Francophone Africa. The event was organized by the Standards and Trade Development Facility (STDF) in partnership with the International Organization of la Francophonie (OIF), the permanent missions of Cameroon, Canada and France, and the Committee Linking Entrepreneurship, Agriculture and Development (COLEAD).
In his welcome remarks, WTO Deputy Director-General Jean-Marie Paugam said: “It is more important than ever today to provide tangible support, through the STDF, to farmers, producers, traders, and governments of developing countries to overcome disruptions in global supply chains, maintain the smooth flow of trade, and ensure that countries can continue to be competitive in global markets”.
Quick links
Uganda state oil firm begins fuel sales after Kenya fallout (The East African)
EU’s carbon border tariff can be a catalyst for intra-Africa trade (Business Daily)
Margins to centre: AU in the G20 (+1) (ORF)
Resilient and Sustainable Food Value Chain Development Training Toolkit (UNDP)
General Assembly adopts landmark resolution on artificial intelligence (UN News)
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Competition Commission to tackle economic concentration by large companies, Ramaphosa promises (Engineering News)
Government will be setting a target for the Competition Commission to undertake market inquiries in more strategic sectors of the economy over the next few years to address high levels of economic concentration by major companies and low participation by small- to medium-sized enterprises, President Cyril Ramaphosa has said.
“We need to open up the economy and make it more inclusive. This means that we need to address features of the market structure that inhibit the participation of black industrialists in the economy,” he said at the Black Industrialists and Exporters Conference, in Sandton, on March 20. Ramaphosa said that the International Monetary Fund and the World Bank both agreed that one of the key problems with the South African economy was the high level of concentration, ownership, control and market dominance by large companies.
Uganda diaspora inflows grows 13.4pc (The East African)
Uganda’s diaspora remittance has registered 13.4 percent growth over the last 12 months which ended January 2024, according to the country’s central bank head of research. Globally, remittances continued to be the premier source of external finance for low-income countries (LMICs) during 2023, relative to foreign direct investment and official development assistance.
Bank of Uganda Executive Director of Research Mr Adam Mugume said the remittance grew to $1.42 billion (Ush5.5 trillion) in the 12 months to January 2024, up from $1.25 billion (Ush4.8 trillion) in the same period to January 2023.”Personal transfers, which we usually call workers remittances, amounted to $1.42 billion in the 12 months to January 2024, up from $1.25 billion in the same period to January 2023, a growth of about 13.4 percent,” Mr Mugume said. Mr Mugume also said the main source of these personal transfers were from the Middle East, Europe, Americas and Africa.
Uganda set to join Single African Air Transport Market (COMESA)
So far, only fourteen countries out of 29 that belong to the Eastern Africa, Southern Africa and Indian Ocean Community (IOC) have acceded to the Single African Air Transport Market, six years since it was launched. This has limited the potential economic growth and development of the region and greatly affected air connectivity within Africa as air travel costs remain prohibitive. To the contrary, many air transport markets outside Africa have been liberalised to a significant extent while most intra-African air transport markets remain largely closed.
This was communicated during a two-day national awareness workshop on the Single African Air Transport Market (SAATM) held in Kampala from 29 February to 1st March 2024. The objective of the workshop was to create awareness of the existence of SAATM and underscore its benefits to the people of Uganda,
In his statement during the workshop, Uganda’s Minister of Works and Transport Gen. Edward Katumba Wamala acknowledged the importance of the SAATM and called for the establishment of enabling legal and institutional frameworks at the continental, regional and national levels in order to operationalise the market. “Apart from proper infrastructure that will ensure safe, effective and efficient air transport systems, he said the region requires appropriate institutions, infrastructure and procedures,” he added.
Lesotho validates a successor national industrial policy to harness economic growth (UNECA)
The United Nations Economic Commission for Africa, Sub Regional Office for Southern Africa (ECA SRO SA) provided technical support to the Government of Lesotho to develop the country’s successor national industrial policy through the Ministry of Trade, Industry and Business Development (MTIBD). The policy document aims to harness an export driven economic growth trajectory through industrialization, and was validated through a one-day workshop jointly organized by MTIBD and ECA SRO SA.
The objective of the workshop was to review and identify gaps in the policy document, obtain feedback from participants and further, provide a platform for stakeholders who were unable to participate in the questionnaire-based data collection process to provide inputs into the draft policy document to enhance collective ownership of the Lesotho National Industrial Policy.
Powering Africa’s green growth with new sustainable investment models offers huge opportunities for the continent, a workshop organised jointly by the U.S. Trade and Development Agency and the African Development Bank heard. At the opening session held on Tuesday 19 March, Côte d’Ivoire’s Environment, Sustainable Development and Ecological Transition Minister Jacques Assahore Konan hailed the two-day session dedicated to exploring innovative financial investment opportunities.
“This workshop offers huge opportunity to explore investment models … and important collaboration between the public and private stakeholders. By investing in clean technologies, companies can reduce their ecological footprints. In view of the stakes involved, Côte d’Ivoire intends to play its part and is committed to implementing the recommendations of this workshop,” Konan declared.
The African Development Bank and Mozambique reinforced their partnership during a visit by Mr. Solomon Quaynor, the Bank’s Vice President for Private Sector, Infrastructure and Industrialization. This visit, held from March 12th to 15th, 2024, underscores the Bank’s commitment to supporting Mozambique’s economic growth trajectory, particularly following the third review of the country’s Extended Credit Facility with the International Monetary Fund and the Bank’s recent Economic Acceleration Package and Budget Support Mission.
Quaynor stated, “Mozambique’s resilience is a strong indication of the leadership role that it is poised to play in ensuring green energy supply to the South African Power Pool, as well as building climate resilient economic corridors to benefit internal markets in Mozambique as well as regional trade with and from land-linked countries in the Southern Africa Development Community. We appreciate the government’s steadfast trust in the Bank’s capacity to deliver on its mandate in Mozambique.”
This is what it takes to double intra-EAC trade by 2030 (The Citizen)
Concerted efforts and strategic interventions are key for the East African Community (EAC) to achieve its goal of doubling intra-regional trade from the current levels of 15 percent to 30 percent by 2030, according to the East African Business Council (EABC) executive director, Mr John Bosco Kalisa. The efforts would have to include having a common investment framework or a regional investment authority, improving port efficiency and productivity and addressing all regulatory hurdles, just to mention a few.
Mr Kalisa was speaking during the CEO Roundtable Meeting on East African Integration and Economic Outlook 2024 held here on March 20. He remarked that while the EAC economies continued strong performance and diversified the targets to improve trade, there is a need for clear and simple tax policies that support business operations and facilitate trade finance while also promoting regional value chains.
“It’s only possible to reach that target if we put down the right policy environment, with the private and public sectors working together in designing solutions,” he said. “Some of the other recommended issues by the EABC include improving port efficiency and productivity, having a one-stop border post, and branding products from the region as ‘Buy East Africa’ or ‘Build East Africa’ to enhance market visibility and promote regional identity,” said Mr Kalisa.
The East African Community (EAC) capacity building workshop on mainstreaming the Democratic Republic of Congo (DRC) into the EAC Customs Union is currently underway in Kampala, Uganda. The five-day workshop from 18th -22nd March, 2024 facilitated by the Trade Mark Africa under funding of the USAID- ERRA program is being attended by Senior Officials from the Ministry of Trade, Ministry EAC affairs, Ministry of Agriculture, Bureau of Standards, Immigration and Customs Administrations
The main objective of the capacity building workshop is to sensitize the DRC officials on EAC regional integration, Customs Union Protocol and the concept of One Stop Border Post (OSBP) legal framework and procedures.
Speaking during the opening session of the workshop, Mr. Evaristae Munyampundu, from the EAC Secretariat underscored the importance of the regional integration, Trade Facilitation and the role of OSBP in establishing cultural linkages among the Partner States as well as enhancing intra-EAC trade. He urged the participants to familiarize themselves with the EAC instruments including; EAC Treaty, Customs Union Protocol; Customs Management Act; SQMT Act; NTBS Act; OSBP Act, Regulations and Procedure Manuals to name the few and implement them in order to allow traders and people to enjoy the benefits of integration.
A landmark 5-day Implementation Support Mission for the “Accelerating Sustainable and Clean Energy Access Transformation (ASCENT)” program, jointly spearheaded by the COMESA and the World Bank, took place in Lusaka, Zambia, from 11 – 15 March 2024. This collaborative endeavor represents a significant stride towards enhancing energy access throughout the region.
ASCENT aims to enhance health and reduce time spent on cooking chores by providing access to clean energy sources, thereby improving overall well-being and alleviating the burden of domestic responsibilities, particularly on women. Additionally, the program endeavors to bolster the resilience of essential services by electrifying schools and health clinics, ensuring vital services remain accessible, even during times of crisis.
Critically, the ASCENT program prioritizes gender equality by acknowledging the disproportionate impact of energy poverty on women. Through targeted interventions, ASCENT seeks to empower women, recognizing them as catalysts for socio-economic progress.
Cocoa beans are in short supply: what this means for farmers, businesses and chocolate lovers (The Conversation)
A shortage of cocoa beans has led to a near shutdown of processing plants in Côte d’Ivoire and Ghana, the two countries responsible for 60% of global production. With chocolate makers around the world reliant on west Africa for cocoa, there is significant concern about the impact on the prices of chocolate and the livelihood of farmers.
Three factors are at play: environmental, economic cycle related and human. One environmental factor is the impact of the El Niño weather phenomenon, which has caused drier weather in west Africa. The economic cycle of cocoa production refers to the inherent patterns of expansion and contraction in cocoa farming. The human factor includes challenges such as illegal mining, which has overtaken numerous farms in Ghana.
AfCFTA investment protocol signals a new era in sustainable trade and investment (IOL)
Since the start of trade under AfCFTA in 2021, African countries have been implementing changes to diversify their economies, increase production capacity, and widen the range of products made in Africa. To be able to do so effectively, they must attract sustainable funding and investment.
Some of the AfCFTA Protocols, developed to facilitate investment and harmonize policy and regulations across African Union (AU) member states, have now been adopted, including Protocols on Investment, Competition Policy and Intellectual Property. Most recently, in February 2024, Protocols on Digital Trade and Women and Youth in Trade, were adopted.
The pdf Protocol on Investment (1.08 MB) was launched in February 2023, at the same time as the Competition Policy Protocol. The AfCFTA Protocols include in their mandates a focus on sustainable and inclusive socio-economic transformative goals, and a consistent approach to public interest.
AfCFTA: Ethiopia to commence trial trading commodities (ENA)
Ethiopia is set to commence trial trading of commodities under the African Continental Free Trade Area (AfCFTA), Ministry of Trade and Regional Integration (MoTRI) announced. In an interview with FBC, MoTRI Minister Gebremeskel Chala said that Ethiopia has made the necessary preparations put in place the trial trading phase and implement the framework agreement through streamlined strategies.
“Alike other African member countries, Ethiopia is currently employing preliminary activities to commence commodities trial exchange of goods with selected counterpart countries,” he underscored. He further mentioned that the Ministry has also projected to nullify 90% import taxes of agricultural and industrial products within ten years. Thus, the country has approved 90% of commodity tariffs for 6,000 goods to the African Free Trade Zone, he further remarked.
Zim adopts top-notch continental payment system (New Zimbabwe)
Zimbabwe has become a part of the three first Southern African countries to embrace the efficient Pan-Africa Payment System (PAPPS) in a bid to improve the ease of payments for local businesses when transacting beyond the borders.
PAPSS was jointly created by the Africa Continental Free Trade Area (AfCFTA) Secretariat and the African Export and Import Bank (Afreximbank) to allow for instantaneous cross-border payments in local currency. The African Union also gave a hand in the development of the platform guided by the objective of promoting trade and commerce between corporate and retail clients. This financial market infrastructure facilitates real-time settlement of intra-African trade and payments in African currencies, across the continent.
In a recent update, trade promotion agency, ZimTrade revealed that PAPPS has to date steadily expanded into four regions. “This network includes 13 central banks, with 6 in the West African Monetary Zone (WAMZ) region Nigeria, Ghana, Guinea, Gambia, Liberia, and Sierra Leone, three in East Africa Kenya, Rwanda, and Djibouti. “In Southern Africa, Zimbabwe is among the first three countries to embrace the system with two other nations being Zambia and Malawi,” said ZimTrade.
GHIB to boost trade finance in Sub Saharan Africa (Graphic)
THE Ghana International Bank (GHIB) has committed to evolve into a true Pan-African firm over the next decade to address the urgent trade needs across Sub-Saharan Africa. This transformation underscores GHIB’s commitment to make a tangible impact in the lives of people across the continent while serving as a catalyst for development in the region.
“Over the next decade, it is my sincere hope that GHIB can once again transform itself, from a fledgling multinational financial institution to a truly pan-African firm with the scale and resources to address the urgent trade and financial needs of its clients – governments, corporates and other institutions - across markets in sub-Saharan Africa,” Chief Executive Officer of GHIB, Dean Adansi said.
New champion could drive home African Union reforms (ISS Today / Daily Maverick)
When the reform process started, member states focused on human resources as a solution to the AU’s ineffectiveness — avoiding the problem of AU Assembly decisions not being implemented. The skills audit and competency assessment, aimed at enhancing recruitment, promoting diversity and ensuring all member states are represented in the AU Commission, has fallen short.
Ruto has emphasised the need for genuine reform so the AU can deliver on its priorities. He has repeatedly called for a stronger and financially autonomous AU and for member states to cede some sovereignty to ensure a strengthened AU Commission. Having been clear that the AU needs ‘fixing’, Ruto can now push for the change he talks about.
Five ways to boost intra-African trade for growth, prosperity - McKinsey (Businessday Nigeria)
Improving manufacturing competitiveness for both local markets and exports, as well as boosting agricultural productivity, are critical tactics to stimulate intra-African trade for future economic advancement, McKinsey & Company says in its latest report. In the report titled ‘Reimagining Economic Growth in Africa: Transforming Diversity into Opportunity,’ the global management consulting firm said sluggish intra-African trade was stated as one of the obstacles hindering the continent’s economic potential.
Building on the health commitments of the 6th EU-AU Summit and outcomes of the Addis Ababa AU-EU High-level dialogue, the AU and EU expanded collaboration in priority areas of common interest in the New Public Health Order and the EU Global Health Strategy.
Enhancing equitable access to safe, qualitive, effective and affordable health services and products and national sovereignty will be key to reach SDG-targets such as achieving Universal Health Coverage. Therefore, it is crucial to support social protection systems which incorporate social health protection, aiming at gradually granting universal health coverage as well as at providing income security in case of sickness. The AU and EU further stressed the importance of the health sector in the creation of jobs and growth.
Most African countries are struggling to ensure sustainable and equitable access to the health products needed to meet the continent’s priority health needs. At the same time, the EU has expertise in health as well as manufacturing and access, including regulation of health products and has set out clear targets in supporting human development in its international partnerships.
Undue detainments, confiscations & restrictions: Shut out of normal participation at WTO, civil societies claim (Down To Earth)
Civil society organisations (CSO) have complained that they have been shut out of normal participation at the ongoing World Trade Organization’s (WTO) 13th Ministerial Conference (MC13) in Abu Dhabi. A day after filing a complaint to Ngozi Okonjo-Iweala, WTO director general, about several incidents of detainment, confiscation of materials and heavy-handed restrictions on lobbying CSOs, participants alleged they have faced an “escalation in repression” despite fully complying with the WTO’s guidelines for the conference.
The WTO has failed to ensure the safety and rights of participants that it has registered for this meeting, claimed Sidik. “This incident happened during a public civil society event where affected community groups — fishers from developing countries — were discussing the negotiations that would directly impact them,” he said.
“Participants, especially from developing countries, are fearful of even walking alone in the conference centre now, lest they be unjustly detained and possibly deported and then unable to secure visas ever again. This climate of fear should not be the result of advocacy for an institution of global economic governance,” Sidik said.
Members supporting Investment Facilitation for Development Agreement discuss next steps (WTO)
WTO members who are parties to the Investment Facilitation for Development (IFD) Agreement discussed the way forward at a meeting on 19 March, reiterating their aim to incorporate it into the WTO framework as a most-favoured-nation-based plurilateral agreement open to all members. Participants welcomed two members (Democratic Republic of the Congo and Côte d’Ivoire) who joined the Agreement during the 13th Ministerial Conference in Abu Dhabi. Burkina Faso also announced it was joining, bringing to 125 the number of co-sponsors requesting the Agreement to become part of the WTO’s legal architecture.
Working group on small business discusses way forward post MC13, welcomes 99th member (WTO)
At its first meeting of the year, on 19 March, the Informal Working Group (IWG) on Micro, Small and Medium-sized Enterprises (MSMEs) considered possible topics for discussion in their future work. The Group welcomed the Democratic Republic of the Congo as a new participant, bringing the total number of WTO members taking part in the initiative to 99. Participants heard an update on the Trade4MSMEs platform, aimed at improving MSMEs’ ability to trade internationally, and discussed various issues facing small businesses.
Timor Leste and Comoros, whose WTO membership terms were endorsed at the 13th Ministerial Conference (MC13) in Abu Dhabi in February, shared with the Group how issues related to small business were considered in their accession process and how WTO membership will support the sustainable development of MSMEs.
DG Okonjo-Iweala lauds MC13 work, urges members to swiftly complete unfinished business (WTO)
Speaking at the formal meeting of the WTO’s General Council on 21 March, Director-General Ngozi Okonjo-Iweala commended members for concluding a package of 10 outcomes at the 13th Ministerial Conference (MC13) and urged them to deliver results on the remaining issues as soon as possible. “Despite the more than challenging context, we concluded MC13 with 10 consensus multilateral Ministerial Decisions and Declarations,” DG Okonjo-Iweala said. “That’s why I personally see the glass as half full.”
The future of global trade: UNCTAD announces first-ever Global Supply Chain Forum (UNCTAD)
In a world facing unprecedented challenges, the Global Supply Chain Forum (GSCF) 2024 is set to provide a crucial platform for leaders and experts to discuss the changing landscape of international trade and logistics. This first event of its kind, organized by the United Nations Conference on Trade and Development (UNCTAD) in collaboration with the Government of Barbados (Bridgetown, 21-24 May 2024), aims to shape the future of global trade in a rapidly evolving world.
In recent years, global trade has faced significant disruptions, from the COVID-19 pandemic to climate change and geopolitical tensions. These challenges have not only tested global supply chains but have also highlighted the urgent need for resilience and sustainability, particularly for developing countries. The forum will feature an innovation challenge, aimed at inspiring solutions to make global production and distribution networks greener and more efficient and resilient.
Quick links
Did Russia, Iran provoke Niger walkout from US military pact? (Al Jazeera)
US pushes India to reverse laptop trade policy, says they will ‘think twice’ about future business (Fox News)
Gender and trade policy: how agricultural tariff reform can support rural women in Bangladesh (World Bank Blogs)
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Transport infrastructure foundation for economic development in Africa, says Mashatile (SAnews)
Deputy President Paul Mashatile has described transport infrastructure as the cornerstone of economic expansion in Africa. “We must make sure that we use the discussions and deliberations of the symposium to bring tangible collaboration on bi-national projects that will strengthen the continent and its economy,” he said on Monday. The Deputy President was speaking at the Sustainable Infrastructure Development Symposium South Africa (SIDSSA) in Cape Town.
He said he was confident that the gathering would establish more strategic collaborations with the other African leaders. “The African Continental Free Trade Area (AfCFTA) agreement remains an important platform for us as a continent to strengthen regional integration at both an economic and cultural level.” The gathering is a platform that brings together critical role players in the infrastructure investment space to accelerate an infrastructure-led economic recovery plan. The symposium also sets the tone for collaboration and cooperation within the continent.
South Africa needs to upgrade its air cargo and related infrastructures (Engineering News)
South Africa is beginning to fall behind other African countries, when it comes to being a centre for air cargo, Swissport South Africa CEO Khangi Khoza has warned. She was delivering a keynote address at the Wesgro Western Cape Air Cargo Conference 2024, in Cape Town. Already, Johannesburg has lost its place as the number one air cargo hub in Africa. First place is now held by Nairobi. And Addis Ababa and Lagos were not far behind Johannesburg.
Implementation of the African Continental Free Trade Area (AfCFTA) Agreement would cause African air cargo volumes to almost double by 2030, she noted. South Africa could be expected to benefit from this increased intra-African trade. But this would require the upgrading of the country’s air cargo infrastructure. Regarding technology, South Africa still has a long way to go. The country is still dependent on undersea cables for telecommunications, which were, as recent events have shown, vulnerable to disruption. But the Starlink satellite-based system, for example, can not be used in South Africa.
China, Angola upgrade ties to comprehensive strategic cooperative partnership (Africanews)
Chinese President Xi Jinping held talks with Angolan President Joao Lourenco in Beijing on Friday. Xi extended warm welcome to Lourenco, calling him as an old friend of the Chinese people.
“China-Angola relations have withstood the test of the changing international landscape, and forged ahead, which has really benefited the people of the two countries. China-Angola cooperation is South-South cooperation, cooperation among developing countries. It is a win-win cooperation between good friends who are helping and benefiting each other. It has been 40 years since the establishment of the diplomatic relations between China and Angola. The determination of the two sides to carry forward the traditional friendship has become stronger, and the confidence in achieving common development through solidarity and cooperation has become stronger,” Xi said.
“Your Excellency President Xi, we are very grateful to China for the unique support. The economic and trade cooperation between us is very good and exemplary. There is still great development potential between our two countries, which will also benefit both of us,” said Lourenco.
DP World Vows to Continue Legal Fight Over Djibouti’s Port Terminal Share Purchase (Capital Business)
DP World, a major Dubai-based port operator, said on Tuesday it would continue its legal fight over the Doraleh Container Terminal (DCT) in Djibouti, calling the government’s recent actions a “blatant disregard for the rule of law.” The statement comes after Djibouti announced on September 10, 2023 that it would seize all shares held by the Port of Djibouti, S.A. (PDSA) in the DCT. This escalation follows a British court upholding a previous ruling by the London Court of International Arbitration (LCIA) which deemed the concession agreement between Djibouti and DP World to be legally binding.
Stakeholders canvass more as Nigeria’s trade with ECOWAS hits N2.41tr (The Guardian Nigeria)
As Nigeria’s trade with the Economic Community of West African States (ECOWAS) hit N2.41 trillion in 2023, stakeholders have advocated increased regional commercial activities. At a two-day workshop, comprising participants from regional civil society groups, policymakers, representatives of the bloc, academics, development practitioners, non-governmental organisations and other stakeholders, they maintained that trade remains the backbone of West Africa’s integration.
The event, which held in Abuja with the theme, ‘West Africa under ECOWAS Vision 2050 and the Role of Civil Society’ Head of Policy Influencing and Advocacy Unit of WACSI, Omolara Balogun listed the outcomes from the workshop to include a deeper understanding of Vision 2050, enhanced civil society commitment and ownership of the vision, as well as the identification of strategic actions to increase civil society’s contributions to its implementation.
Businesses To Get Cheap Funds As Afreximbank’s $800m FEDA Targets Nigeria Before Year End – Oramah (The Whistler Newspaper)
The President of Afreximbank and Chairman of the Board of the Fund for Export Development in Africa (FEDA), Professor Benedict Oramah has said that Nigeria is one of the 20 countries in the continent that will witness massive funding from FEDA. Oramah said this on Wednesday at the launch and official opening of the Fund for Export Development in Africa (FEDA) office in Kigali, Rwanda.
The FEDA targets a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain. Oramah noted in his keynote address how the funds under management which is about $800m have been used to reshape trade activities in the continent. He said, “FEDA is using some of these funds to create and mobilise additional funds, and it’s currently a co-promoter of a $500m African Credit Opportunity Fund
EU supports 273 CSOs in Nigeria as stakeholders worry over sustainable development (The Guardian Nigeria)
The European Union (EU) and stakeholders across civil society bodies yesterday in Abuja raised concerns over sustainable development in the country as the Agents for Citizen-driven Transformation (ACT) was brought to a close in 10 states.
Raising concerns over the current rising cost of living in Nigeria, poor governance, effective utilisation of aid amidst shrinking donor and funding support, the stakeholders, who gathered at the close out ceremony of ACT programme noted the need to address the bureaucracy in government ministries and agencies as they decried the implications on national development.
The stakeholders also insisted that unless the capacity of CSOs are strengthened, sustainable development may remain challenging in Nigeria. The ACT Programme funded by the EU and implemented by the British Council in 10 states was designed to strengthen the capacity of CSOs and to make them more impactful.
Chamber of Agribusiness blames high cost of food prices on E-Levy (MyJoyOnline)
The Chamber of Agribusiness Ghana has blamed the high cost of food prices on the Electronic Transaction Levy. According to its Chief Executive Officer, Anthony Morrison, the implementation of the E-levy has increased the cost of aggregation along the agricultural value chain, hence, stakeholders at that stage are forced to increase food prices when the products get to the urban centres.
“Due to the rising cases of robbery attacks, most traders and aggregators keep their monies on their mobile money accounts when going for produce. Assuming an aggregator goes to the rural areas to get goods from different sources, mobile money transactions will be done between the trader and the different sources which come with charges per transaction”. “So when the aggregator returns to the urban centres, they add the accumulated E-levy charges to the price on the market. This then leads to increased food prices,” he said.
Mr. Morrison therefore called on government to exclude the rural economy from paying the electronic transaction levy.
Ghana to achieve upper-middle-income country status in the next four years if… (NORVANREPORTS.COM)
Ghana, the second-largest economy in West Africa is likely to achieve an upper-middle-income country status by 2028 if it can maintain a gross domestic product growth rate of 6% with a steady 1.9% population growth rate over the next four years. This is a projection by Economist and Political Risk Analyst, Dr Theo Acheampong.
In a short missive, Dr. Acheampong noted that Ghana has to do a consistent 7% per annum growth rate to get anywhere close to $5,000 GDP per capita mark. Currently, Ghana has a GDP per capita of $2,176 with a GDP growth rate of 1.5% and a population growth rate of 2.1% with the country’s nominal population figure being 31.8 million.
Afreximbank to Help Enhance Liberia’s Development (Liberian Observer)
Eric Monchu Intong Regional Chief Operating Officer, Anglophone West Africa, Afreximbank, has said that the bank is here to ensure collaborative efforts with public and private institutions to enhance trade and infrastructural development in Liberia.
Despite substantial investments in the country already in major national infrastructures, Intong disclosed that Afreximbank stands ready to partner with the public and private sectors of Liberia in advancing development through trade promotion, trade facilitation, and trade financing, in line with the Bank’s mandate.
The continental bank’s Regional Chief Operating Officer, Anglophone West Africa, spoke at the opening of the second edition of the AFREXIMBANK Liberia TRADE ROADSHOW held on Tuesday, March 19. Meant to enhance the capacity of financial institutions in Liberia, the event was organized by Afreximbank and the Ministry of Commerce and Industry. It was held at the EJS Ministerial Complex under the theme: “Advancing Economic Development in Liberia through Trade.”
CEMAC at 30: Absence of harmonized trade policies among drawbacks (Cameroon Radio Television)
As the Economic and Monetary Community of Central Africa (CEMAC) celebrates 30 years of existence, economic and international relations experts say the absence of harmonized trade policies is one of setbacks to subregional integration.
Experts say CEMAC is the least integrated economic block Africa with a current trade volume of only 4%. CEMAC member states are said to carry out 80% of business transactions with external business partners likes China, Russia and European partners. Thus, leaving the block with a significantly low intra-community trade volume. Political tensions and security concerns are among major challenges to trade and subregional integration within the subregion.
“Lack of harmonization of trade policies and regulations between CEMAC countries creates an uncertainty, and makes it difficult for these countries to increase their inter-trade volume. Secondly, there are inefficient custom and border procedures and tariff barriers that make it difficult for these countries to increase their bilateral trade volumes and benefit from sub regional integration” Dr. Neba Ridley Ngwa, expert in International Relations told CRTV Web.
The WAEMU has proved resilient amid significant adverse shocks, maintaining strong growth estimated at 5.1 percent in 2023. Inflation has fallen rapidly from its 2022 peaks and is now back within the 1-3 percent target range. External reserves continued to fall significantly in 2023, by about US$2.6 billion, or to about 3.3 months of imports, although they rebounded by US$1.8 billion in January. Against the background, the central bank raised interest rates by a cumulative 150 basis points over 2022-2023, and limited the amount of bank refinancing.
Growth is projected to rise to about 6.8 percent in 2024-2025, due to the start of new hydrocarbon production, and hover near 6 percent in the longer term. Fiscal consolidation would proceed in 2024 and bring the deficit back to 3 percent of GDP in most member countries in 2025.The completion of these hydrocarbon projects, together with fiscal consolidation, would lead to a quick narrowing of the current account deficit, and contribute to a gradual rebuilding of external reserves The region remains subject to downside risks, including to the regional security situation and political uncertainty.
How Africa Trades (LSE Press)
Trade is an essential driver of economic transformation, growth, and prosperity. At a time of global uncertainty and policy fluidity, this comprehensive volume demystifies African trade and trade policy to provide a deeper understanding of how trade impacts the lives of all Africans and the continent’s development aspirations.
Featuring a wealth of data-driven evaluations of trade negotiations and policy choices, How Africa Trades is an invaluable open access resource for making sense of the continent’s major trade challenges, including commodity dependence, competitiveness, and how African countries engage with often unconducive international trade rules that distort global markets.
In-depth analysis focuses on intra-African trade initiatives, including the African Continental Free Trade Area (AfCFTA), trade between African countries and their major trading partners, and how the short-term shocks of Covid-19 restrictions brought about longer-term changes in informal and formal trade patterns, and sped-up shifts in digital trade.
1.3 billion AFCFTA market agreement kicks off (The Patriot On Sunday)
The Ministry of Trade and Industry is pleased to announce that trade under preferential terms of the African Continental Free Trade Area Agreement (AfCFTA) can commence from the 1st April, 2024. This follows the publication of the Tariff Concessions and Rules of Origin for imports from participating AfCFTA members in the Government Gazzette Extraordinary of 8th March,2024.
The commencement of trading under this landmark Agreement provides the Private Sector with market access to the larger African market of 1.3 billion and will stimulate industrial development, investment and job creation which are in line with Botswana’s Vision 2036. This will result in wider and increased market access for Botswana’s exports in the African continent. The Private Sector will also access a wide range of inputs or raw materials from the continent at competitive prices. The Agreement also supports growth of Women and Youth owned businesses.
In preparation for trading under the AfCFTA Agreement from the 1st April 2024, companies that wish to trade under the Agreement are invited to contact the Botswana Unified Revenue Services (BURS) to be assisted in putting together administrative requirements for trading. Women and Youth businesses that are ready to trade in the continent are especially encouraged to register to trade under the Agreement.
The complex challenges that face the world today – conflict, the climate crisis and economic challenges – all require cooperation to overcome. It won’t have escaped your attention, however, that globally, cooperation and collaboration are being eroded and being replaced by competition, adding to the difficulty of bringing stability to a world in turmoil.
“Heightened competition and conflict appear to be replacing cooperation. The result is that new power dynamics, changing demographic realities and breakthrough frontier technologies are raising the temperature on long-simmering distrust rather than fueling opportunities for benefit.”
While there is doubtless cause for concern at the current state of global mistrust – there is also room for optimism. The Global Cooperation Barometer uses a number of metrics to assess the state of global cooperation – and trade is bucking the wider downward trend.
The report concludes that “cooperation is multifaceted and can coexist with competition”. Proof of this comes in the form of a raft of recently agreed trade deals that demonstrate that cooperation is still possible in fractious times.
Experts meet in Kenya to boost climate finance in Africa (Capital Business)
Experts began a two-day meeting in the Kenyan capital of Nairobi on Tuesday to discuss ways to increase climate finance in Africa. The first Climate Change Global Business Summit on Africa brought together more than 200 participants from the United Nations, the African Development Bank (AfDB), and senior government and private sector officials from across Africa to increase the amount of funding dedicated to climate change mitigation and adaptation in the region.
Winnie Chepkemoi Mutai, the AfDB’s climate finance specialist, said Africa receives climate finance amounting to about 250 billion U.S. dollars annually, which is about 10 percent of the figure required to combat climate change. Multilateral development finance institutions should strengthen their role in de-risking green projects to make it more attractive for domestic and international private sector players to enter the green space.
Charting a sustainable future with electric mobility revolution in Africa (The Standard)
In a continent marked by rapid urbanisation and an increasing focus on sustainable development, Africa’s electric mobility sector stands at the forefront of a transformative era. As cities across the continent flourish, grappling with environmental challenges and the demands of growing populations, electric vehicles (EVs) offer a beacon of hope, promising cleaner, more efficient, and sustainable urban transport solutions.
We had a conversation with Olivia Lamenya, General Manager of Ebee Africa, who shared her insights on the evolution of the electric mobility sector in Africa. She delved into the driving forces behind this change, the critical role of African governments, the transformative potential of electric bicycles in urban settings, the barriers to adopting electric mobility solutions, and the game-changing impact of technological innovation in this sector. She sheds light on a future where African cities are not just coping with growth but are thriving through sustainable and innovative mobility solutions.
ICT experts meet in Nairobi to discuss building trust in digital economy (KBC)
ICT industry stakeholders drawn from different countries are meeting in Nairobi to discuss ways of unlocking digital trust, a move that could see more opportunities being realised within the digital economy. During a two-day 2024 National Public Key Infrastructure Forum hosted by the Communications Authority of Kenya, experts from Uganda, Cameroon, India, Cote d’Ivoire, South Africa, and Ghana are discussing the need for developing standards that can enable the consumption of digital innovations in a secure way across the borders.
Themed Building Trust in a Digital World: The Future of the NPKI, the forum which started on Tuesday serves as a pivotal platform for relevant licensees in the ICT industry, such as the ICT Authority, whose role is to issue digital certification subscribers to government agencies.
“Building a secure digital superhighway means that we can create an environment in which Kenya’s digital economy thrives and our citizens derive value in the immense possibilities in the digital space,” added PS Kisiang’ani.
India Africa Trade Council, BDAC Ghana sign MOU to boost cooperation (Graphic)
BDAC Ghana Limited, an indigenous Ghanaian strategic consulting and advisory company, has signed a memorandum of understanding (MOU) with the India Africa Trade Council (IATC) to strengthen business relations and develop reciprocal cooperation between India and Ghana through BDAC Ghana Limited.
The new partnership aims to identify business opportunities in various sectors of the Ghanaian economy and the broader African region. It will facilitate the exploration of these opportunities by their respective clients. The Trade Commissioner of IATC and leader of the delegation, Dr. Chetna Ilpate expressed strong interest in investing in key sectors of the Ghanaian economy, including health and pharmaceuticals, agro-processing, tourism, mining, and energy.
Nigeria contemplates BRICS membership (The Business & Financial Times)
President, Global Migration Research Institute (GMRI), Professor Williams Ijoma, has said it is time Nigeria joined the league of nations in BRICS (Brazil, Russia, India, China and South Africa) bloc to rescue Nigeria from the clutch of poverty and open opportunities for rapid development, according to the report in Guardian newspaper.
He spoke at a one-day summit on BRICS themed ‘BRICS + and Global South: Problems and Prospects’ organized by Upriver Needy’s Empirical Solution Centre (UNESCO), Foundation in partnership with the Universal Migration Enlightment Centre (UMEC) in Abuja, Nigeria. “BRICS is a very important organization that will enhance the economy of Nigeria because Nigeria has got all it takes to be a world power. We have the raw materials and we have the human resources and I believe that joining BRICS will boost Nigeria’s economy,” he said at the summit.
Related news:
Saudi Arabia Gives Update on Joining BRICS Alliance (Watcher Guru)
Presidents of Russia and Iran agreed on further co-ordination of countries’ actions in BRICS and SCO (TV BRICS)
Russian grain chief says BRICS exchange idea gaining traction (Nasdaq)
A Russian idea backed by President Vladimir Putin for a BRICS grain exchange that would allow buyers to purchase directly from producers is gaining traction ahead of summit of the group in October, the head of the Russian Union of Grain Exporters said.
China and India are the world’s biggest wheat producers and Russia the biggest exporter of the grain so any exchange based on the BRICS grouping of Brazil, Russia, India, China and South Africa as well as Egypt, Ethiopia, Iran and United Arab Emirates would have global clout.
Eduard Zernin, head of the Russian Union of Grain Exporters (Rusgrain), told Reuters that he hoped organizational issues regarding the exchange should be resolved by this year’s planned BRICS summit in the Russian city of Kazan.
Zernin said the main problem with traditional commodity exchanges was that they were beholden to “speculators”, including hedge funds which trade derivatives of the commodity, and said this had led to prices below the cost of production. “We believe it is in the interest of both suppliers and buyers of real grain to eliminate such extreme volatility and add transparency and predictability to the world grain market”.
See also: Oleg Kobyakov, Director of FAO Liaison Office to Russian Federation: BRICS countries are driver of agro-industrial production (TV BRICS)
Brasil presents agendas of the Women’s Empowerment Working Group at the UN Women’s Conference (G20 Brasil)
Brazil took to the 68th Session of the Commission on the Status of Women (CSW) the agendas that will be discussed with the G20 Working Group on Women’s Empowerment, coordinated by the Ministry of Women’s. The Minister of Women, Cida Gonçalves, and the First Lady, Janja Lula da Silva, as well as the Brazilian delegation, discussed Brasil’s priority issues for women in bilateral talks and meetings during the CSW program week.
The theme of Brasil’s presidency at this year’s G20 meeting is “Building a just world and a sustainable planet”, representing the commitment to more equitable governance, which places the combat against inequalities and social inclusion as a priority for countries. 2024 is the first year of the G20 Working Group on Women’s Empowerment, which will reinforce the Brazilian government’s commitment to tackling gender inequality.
Created to support the Ministries responsible for conducting gender equality policies in the G20 countries, the institutionalization of a WG on Women’s Empowerment represents the commitment made by member States with the empowerment of girls and women.
China ramps up efforts to attract foreign investment across diverse industries (Xinhua)
China has started revising the industry catalog of sectors encouraging foreign investment, the country’s top economic planner said on Wednesday. During the revision process, the National Development and Reform Commission will engage in extensive communication with foreign chambers of commerce and enterprises through field investigations and seminars, said Hua Zhong, an official of the commission.
The revision will maintain a focus on the manufacturing sector as one of the priorities for attracting foreign investment, Hua said, adding that China will step up support to advanced manufacturing, modern services, advanced technology, energy conservation and environmental protection to attract more foreign investment in these areas.
Chair briefs members on consultations regarding post-MC13 dispute settlement reform work (WTO)
The Chair of the Dispute Settlement Body, Ambassador Petter Ølberg of Norway, briefed WTO members on 19 March regarding recent consultations he had to hear delegations’ views on how to follow up on the 13th Ministerial Conference (MC13) decision on dispute settlement reform and on the appointment of a facilitator for the reform process. The DSB also adopted on 19 March a compliance panel report in a dispute between the European Union and the United States over US duties on imported olives from Spain.
Records smashed – new WMO climate report confirms 2023 hottest so far (UN News)
Heatwaves, floods, droughts, wildfires and rapidly intensifying tropical cyclones caused misery and mayhem, upending everyday life for millions and inflicting many billions of dollars in economic losses, according to the WMO State of the Global Climate 2023 report.
“Sirens are blaring across all major indicators... Some records aren’t just chart-topping, they’re chart-busting. And changes are speeding up,” said UN Secretary-General António Guterres in a video message for the launch. “The scientific knowledge about climate change has existed for more than five decades, and yet we missed an entire generation of opportunity,” WMO Secretary-General Celeste Saulo said presenting the report to the media in Geneva. She urged the climate change response to be governed by the “welfare of future generations, but not the short-term economic interests”.
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Infrastructure investment central to achievement of SA’s development goals (SAnews)
President Cyril Ramaphosa says investment in infrastructure is central to the achievement of the country’s development goals. “Infrastructure is an enormous economic multiplier, providing dividends for an economy long after the infrastructure has been built,” President Ramaphosa said.
Addressing the 2024 Sustainable Infrastructure Development Symposium of South Africa (SIDSSA) currently underway at the Century City Conference Centre in Cape Town, President Ramaphosa said the symposium is an important part of government’s effort to close the infrastructure spending gap in the country. “It is estimated that to achieve our infrastructure goals, we need an additional R1.6 trillion in public sector infrastructure investment and a further R3.2 trillion from the private sector by 2030,” President Ramaphosa said.
A number of bold initiatives are being implemented to deliver infrastructure at the required scale and pace. “We are working on reforms to develop sustainable infrastructure, lift business confidence and encourage investment. See Infrastructure SA names 12 projects it will aim to unblock this financial year (Engineering News)
Malawi and maize: prices have spiked on the back of bad weather and trade bans (The Conversation)
Maize is the leading staple food in Malawi and crucial for food security. Typically, local production from smallholder farmers meets and exceeds annual requirements of around 3 million metric tonnes. The country, however, is currently facing a crisis with 4.4 million Malawians (22% of the population) being food insecure.
This is due firstly to a poor harvest in 2023. The subsequent shortages led to a spike in prices which hit households hard. Such severe impacts on households could have been avoided, however, with more integrated regional markets to buffer against such shocks. We analysed the dynamics behind these developments. We concluded that regional trade was not working well. Supply shocks driven by extreme weather were exacerbated by ad hoc trade bans and by apparent market speculation.
Kenya launches strategic plan to promote use of nuclear energy (CGTN Africa)
Kenya launched its strategic plan on Monday, providing a roadmap to promote the peaceful use of nuclear technology in electricity generation. Alex Wachira, principal secretary for the Ministry of Energy and Petroleum, told journalists in the national capital of Nairobi that the plan provides guidelines for developing the infrastructure for constructing, operating, maintaining and decommissioning nuclear facilities safely and securely.
“The strategic plan proposes practical interventions to ensure Kenya commences construction of its first nuclear power plant in 2027 and commissions it in 2034,” Wachira said. According to the ministry, Kenya’s domestic installed electricity capacity is about 3,073 megawatts (MW), comprising 839 MW of hydropower, 940 MW of geothermal and 646 MW of thermal power. Wind power capacity is about 436 MW, solar sources account for 210 MW, and the rest is from biomass.
Kenya mulls VAT on bread, milk in fresh revenue push (The East African)
Kenya’s National Treasury is considering introducing a 16 percent value-added tax (VAT) on bread and milk in a fresh push to boost revenue collections. Treasury Cabinet Secretary Prof Njuguna Ndung’u said studies by government agencies had shown that the current structure, where VAT on bread and milk is zero-rated, had failed to cushion the targeted poor households and instead benefited the middle class, who have relatively high income.
“When we started doing some simulation work, we realised that we could actually gain a lot. Once you have high tax rates, the political remedy is often to try and create a rebate or should I say create refunds for some of the institutions dealing with products that are related and being considered to be consumed by the poor” Prof Ndung’u said on Tuesday during the Africa Fiscal Monitor form organised by the International Monetary Fund (IMF).
“Total VAT collected in Kenya comprises about 40 percent of the total taxes, but 18 percent of it goes to tax refunds for products assumed to be consumed by the poor. When you look at those products, you realise 95 percent of refunds go to bread and milk. Who goes to the supermarket to buy bread and milk? We are not compensating the poor, we are compensating the middle class,” he said. If this happens, Kenyans will witness a rise in the cost of the two commodities.
Rwanda-Zimbabwe ties show the potential of intra-Africa trade (The New Times)
The Rwanda-Zimbabwe Business Forum which went underway on Monday serves as a powerful testament to the transformative potential of South-South cooperation. The 50% surge in trade between these two nations over the past two years is a resounding success story, offering valuable lessons for the entire African continent. The growth has surged thanks to the annual forum, which is now happening for the third time, interchangeably between both Kigali and Harare.
For too long, Africa has been a net importer, with trade largely flowing outwards. This forum demonstrates the immense potential of intra-African trade – the exchange of goods and services among African nations. By fostering partnerships like the one between the two countries, Africa can unlock its vast economic potential and chart a path towards self-reliance.
See also: Can Rwanda-Zim business community drive AfCFTA realization? (The New Times)
Trade Policy Review: Angola (WTO)
the potential contribution of trade and trade policy to reduce trade costs and support Angola’s broader competitiveness and diversification agenda remains largely untapped. This partly reflects the emphasis on substituting domestically produced goods for imports in some sectors, one of the tools used by Angola to nurture its nascent private sector and create much-needed jobs for its young and rapidly growing population. As the authorities consider ways to expand the contribution of trade policy to sustain inclusive economic growth, it would be important to assess the costs of higher trade protection, which may come in the form of higher prices and less choice for consumers, especially those with the lowest incomes, and fewer opportunities for Angolan firms, especially small- and medium-sized ones, to join regional and global value chains.
Civil society and cultural communities call for the restoration of the SADC Tribunal (Namibia Economist)
The Mike Campbell Foundation, the Mthwakazi Republic Party (MRP), the Southern African Agri Initiative (SAAI), AfriForum and the Office of Kgosi Mogakolodi Masibi of the Batlharo Boo Tokwana Ba Ga Masibi Cultural Community today sent a memorandum to the Secretariat of the Southern African Development Community (SADC), calling for the restoration of the regional court of justice, the SADC Tribunal. The representatives also signed a copy of this memorandum at the historic Turnhalle Building, the former seat of the Tribunal, as a symbol of their appeal to SADC.
The symbolic signing of the memorandum was the final step of a two-stage trek undertaken by Ben Freeth, Executive Director of the Mike Campbell Foundation, that started at the gate of the farm Mount Carmel in central Zimbabwe on 28 November 2023. “This court of justice was open to any SADC citizens whose justice systems had failed them in their own countries. The effective closure of the Tribunal was a travesty of justice that has denied access to justice to the 400 million citizens of the 16 SADC countries,” explains Freeth.
ECA, WFP Explore Renewable Energy Solutions for Enhanced Food Security in Madagascar (UNECA)
A joint team from the Economic Commission for Africa (ECA) and the World Food Programme (WFP) has concluded a three-day series of strategic discussions on enhancing food security through renewable energy in Madagascar. The talks, which ended on 15 March 2024
The discussions highlighted initiatives for rural electrification and explored collaborations with agencies like the Rural Electricity Development Agency (ADER) and the National Institute of Statistics. The delegates examined ongoing challenges in rural energy deployment, as well as the tender management processes. Contributions from the German Corporation for International Cooperation (GIZ) to rural growth via electrification initiatives were also highlighted.
The ECA-WFP initiative is set to make a significant impact in Madagascar by refining WFP business models, expanding strategies, and bolstering financial and regulatory frameworks. It leverages best practices and builds local capacity to quickly roll out clean energy solutions, aiming to enhance food security and reshape the rural landscape.
Togo Customs takes steps in its Rules of Origin competency development (WCO)
Under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union, the World Customs Organization (WCO), in partnership with the West African Economic and Monetary Union (WAEMU), held a national training workshop on rules of origin in Lomé, Togo, from 11 to 15 March 2024 with the participation of officials from Togo Customs, Ministry of Trade, Ministry of Industry, Chamber of Commerce and private sector. The objective of the workshop was to assist Togo in enhancing its knowledge and application of preferential rules of origin.
In his opening remarks, the Director General of the Investment Promotion Agency and Free Zones, Mr. Atsouvi Yawo SIKPA, representing the Minister of Investment Promotion in Togo, thanked the WCO and the EU for their support in building capacity on rules of origin. He stressed the importance of having an in-depth knowledge of the WAEMU, ECOWAS and AfCFTA rules of origin to avoid diversity in their application on regional and continental levels. He also reiterated the government’s engagement to promote peace, security and the consolidation of regional communities, which is a guarantee of industrial and economic development and regional integration.
The Southern African Development Community (SADC) conducted a five-day capacity-building workshop in the Kingdom of Lesotho from 4th to 8th March 2024 on sanitary requirements that are demanded when exporting food products and agricultural commodities to the European Union (EU) market.
The EU and SADC signed an Economic Partnership Agreement (EPA) commonly known as the EU SADC EPA, to preserve market access and preferences for Botswana, Eswatini, Lesotho, Namibia, Mozambique, and South Africa. Agriculture is one of the sectors that benefits immensely from the improved market access under the EU SADC EPA, particularly sugar, dairy products, canned fruits, flowers, and fisheries.
Non-compliance with Non-Tariff Measures (NTMs) in the form of Sanitary and Phytosanitary (SPS) requirements, as well as inadequate knowledge about SPS principles, were identified as major impediments to the growth of exports in food products and agricultural commodities from SADC EPA Member States to the EU market. Additionally, high production, transportation, and marketing costs, along with inadequate testing facilities and conformity assessments, posed barriers to entry and trade in the EU market.
See also: EU-SADC Trade Agreement: A Push for Partnership and Sustainable Progress (Africa24.it)
Is East Africa’s currency dream on hold? (Tanzania Daily News)
In recent weeks, East Africans found themselves caught in a whirlwind of online fake news, falsely suggesting the imminent arrival of a unified currency. Thankfully, these claims were categorically denied by authorities. Nevertheless, this incident serves as a reminder of a much-discussed, yet seemingly elusive, goal of establishing a single currency for the East African Community (EAC).
The EAC envisioned the East African Monetary Union (EAMU) as a cornerstone for deeper economic integration, following in the footsteps of the customs union and common market, which also faced implementation challenges. A single currency was expected to enhance regional stability, boost trade and investment, streamline transactions, and drive overall economic growth. However, the path to this goal has proven rockier than anticipated.
However, there’s still hope. Public support for a single currency within the EAC is strong, providing policymakers with a powerful tool to expedite its establishment. The EAC operates on a more balanced playing field compared to some regional blocs dominated by a few powerful members.
On March 6, 2024, the World Bank officially declared the ECOWAS Commission had met all the conditions for the effectiveness of a Financing Agreement with the International Development Association. This declaration of effectiveness paves the way for the disbursement of a grant dedicated to implementing key components of the Digital Transformation for Africa /Western Africa Regional Digital Integration (DTfA/WARDIP) Program.
The objective of the DTfA/WARDIP program is to increase broadband access and usage and advance integration of digital markets in Western Africa. The program is expected to contribute to bridging the digital divide by making internet services more affordable, promoting competition among service providers, and improving the underlying infrastructure. These efforts are aimed at unlocking new opportunities for employment, improving access to services for 1.3 million individuals, ensuring inclusivity including 50% women, and people with disabilities.
‘Digital economy thrives on inclusivity’ (The Herald)
The digital economy thrives on inclusivity and to ensure this by 2030 needs everyone on board especially women, Information Communication Technology (ICT), Postal and Courier Services Minister Tatenda Mavetera, said. Speaking at the Women ICT conference in Harare, Minister Mavetera said her Ministry was actively promoting women’s participation in ICT.
The Computer Society of Zimbabwe is a valuable partner in realising the Smart Zimbabwe 2030 vision and their focus on infrastructure, skills development and fostering a knowledge-based economy aligns perfectly with our goals.” Minister Mavetera said the computer society was actively participating in Government programmes and national committees making them a vital contributor. The Ministry was committed to supporting all women’s programmes that propelled the digital economy agenda.
Surge in mergers, acquisitions forecast (The Herald)
Zimbabwe could see a rise in mergers and acquisitions (M&A) activity this year, driven by increased foreign investor interest exploring opportunities under the African Continental Free Trade Area (AfCFTA) and the attractiveness of mergers for firms seeking to adapt and remain competitive within this integrated trade environment. With Zimbabwe’s post-election period underway, a slight increase in local mergers is expected, according to an analysis by the Competition and Tariff Commission (CTC). This follows a period of foreign investor caution, but with the political landscape clearer, they are now poised to explore acquisition opportunities.
“Foreign investors, who were previously adopting a ‘wait and see’ approach, are now poised to explore opportunities for acquisitions. Businesses believe that merger transactions in many cases are the best way to keep up with the ever-changing market developments and allow them to transform faster than otherwise feasible,” the commission added. “Also, as firms continue to realise the changes that are going to come through the African Continental Free Trade Area this can also render mergers attractive for firms to reinvent themselves to stay ahead and relevant in this trade integration agenda.”
AfCFTA : Let’s accelerate harmonisation of goods and services across Africa - Shippers Authority (Ghana News Agency)
Mr. Baffour Okyere Sarpong, the Chief Executive Officer (CEO) of the Ghana Shippers Authority (GSA), has stressed the urgent need to expedite harmonisation of standards for goods and services in support of the Africa Continental Free Trade Agreement (AfCFTA). In an news brief, he asserted that the move was crucial for enhancing commercial activities within AfCFTA and bolstering businesses across the continent.
Mr. Okyere Sarpong said the harmonisation of standards would help eliminate technical barriers inhibiting continental trade. He underscored the importance of Shippers Councils across the continent sharing data to enhance AfCFTA trade, and called for collaboration to exchange vital information related to cargo handling, customs procedures, and trade regulations to foster economic growth.
Kebs chief highlights quality as key to Africa’s trade growth (Capital Business)
Esther Ngari, the Managing Director of the Kenya Bureau of Standards (Kebs), has emphasized quality excellence as a critical driver for sustainable business growth and a competitive edge for African enterprises. Themed ‘Realizing Competitive Advantage through Quality Excellence’, the conference brought together industry leaders, policymakers, and quality practitioners from across the region.
The Future of Excellence Ngari pointed to ‘Quality 4.0’ as a key theme for the conference, referencing the future of quality and organizational excellence within the context of Industry 4.0. “Quality professionals can play a vital role in leading their organizations to apply proven quality disciplines to new, digital, and disruptive technologies,” she noted. The conference also focused on the African Continental Free Trade Area (AfCFTA).
The critical-minerals boom is here. Can Africa take advantage? (Atlantic Council)
Technology is increasingly influencing the way people around the world live, creating opportunities in some cases and introducing new challenges in others. Just as important as a technology’s impact is the technology’s origin—or origins. Any given technology can be traced back, through its individual components and materials, to a number of sources. And the question about where those components and materials come from matters. Modern technology, economies, livelihoods, and weapons depend on critical minerals such as magnesium, cobalt, lithium, or even copper. Where countries source these minerals makes a difference for national and strategic security.
Since Africa is home to 30 percent of the world’s known critical minerals, the continent is at the forefront of conversations. But currently, African nations aren’t getting their fair share of the benefits of the critical-minerals boom and buzz generated by the evolution of modern technologies. For that to happen, Africa will need more investment in its capacities to refine or add value to minerals within the continent; such investment could fuel a long-awaited boost in development.
4th AmCham Business Summit To Advocate For Enhanced Partnership And Investment In US-East Africa Trade (Africa.com)
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit, the premier platform for strengthening bilateral trade and investment between the United States, Kenya, and East Africa is set to be held on April 24–25, 2024, in Nairobi, Kenya.
AmCham’s Board President, Mr Peter Ngahu highlighted that the Summit would explore opportunities to promote sustainable and inclusive growth while increasing investment in Kenya and the East African region. “As we celebrate years of shared value and interests, the AmCham Business Summit stands as a beacon of opportunity. We look forward to exploring how we can leverage these opportunities as we stay committed to helping drive investments in East Africa.”
A wide range of topics critical to the region’s economic development, including shaping the future of US-East Africa trade and investment, climate action, digital transformation, and sustainable finance for East African economies, will be covered in a series of panel discussions, keynotes, and roundtables moderated by experts from the public and private sectors.
U.S. Chamber of Commerce hosts panel on Advance with Africa (The Atlanta Voice)
The U.S. Chamber of Commerce’s U.S. – Africa Business Center hosted a special forum for their Advance With Africa program in partnership with the President’s Advisory Council on African Diaspora Engagement to foster economic engagement through Diaspora business ties.
According to the Council on Foreign Relations, by the end of the century, 1 in 3 people in the world will be African, inhabiting a huge consumer market with vast growth potential. According to the United Nations, Africa’s population is set to double by 2050, reaching 2.5 billion people. This will create a massive demand for goods and services, presenting businesses with historic opportunities to build profitable, sustainable enterprises.
Advance with Africa aims to advance Africa’s commercial profile, increase U.S. exports and investment, showcase tools to support new market entrants, and foster commercial opportunities for businesses in the United States and Africa. This multi-year campaign is targeting cities across the U.S. with a significant African diaspora and minority business communities, existing business linkages with Africa, and high interest from elected officials.
Report on the formation of a Trust Corridor for innovation exchange and trade across Africa launched (MyJoyOnline)
A new report to guide the formation and implementation of the proposed UK-Africa Innovation Trust Corridor (ITC) to facilitate the transparent, secure, and demonstrable exchange of research and innovation outputs between the United Kingdom and its African Commonwealth nations has been launched in Accra. The report, titled “Research-based evidence to support the formation of the proposed UK-Ghana Innovation Trust Corridor (ITC),” was unveiled at the maiden Africa Research and Innovation Commercialization Summit (ARICS 2024), held at the Labadi Beach Hotel.
The UK-Africa Innovation Trust Corridor establishes the infrastructure and protocols for innovation co-creation, innovation trade, protecting intellectual property rights, knowledge transfer, and shared operational standards. It will also foster a robust regime for research and innovation commercialisation within and across nations in the commonwealth, with the United Kingdom being the initial anchor region.
BRICS: Important announcement about the new currency of the union (Cryptodnes.bg)
BRICS is exploring the possibility of creating a new currency for world markets to facilitate international trade between member countries. The alliance seeks to reduce dependence on the US dollar and increase the importance of the upcoming currency. Amid concerns about the risks associated with holding the U.S. dollar in reserve, the nine-nation bloc has sought to support its home currencies.
Amid concerns stemming from an unmanageable debt of $34.4 trillion, developing countries are turning to hoarding gold as an alternative to cushion the impact on their economies. In particular, the BRICS countries, which are major buyers of gold, have accumulated significant amounts of the precious metal, as reported by the World Gold Council.
Related news:
BRICS Urges Middle East To Ditch US Dollar For Oil Trade (Watcher Guru)
Inside the BRICS rival to Horizon Europe (Science | Business)
The great balancing act: Making trade and payments faster, cheaper, and easier in 2024 (Trade Finance Global)
The trade and payments industry is at a crossroads in its digitalisation journey. Recent years have shown a clear shift towards a more digital world, but there has been asymmetric adoption across the industry, uneven regulation, unintended consequences, winners and losers. While the progress is encouraging, the next steps are marked by the need for interoperability and uniform adoption of standards such as the full adoption of ISO 20022 by November 2025.
BAFT’s inaugural 2024 ‘International Trade and Payments’ conference covered many topics, but digitalisation and the transformation of trade and payments shone brightly. Bringing together over 200 industry participants, it was clear that the evolution of the trade and payments industry was moving ahead, and the need to talk about both, in sync, was tantamount.
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Africa’s biggest economies set to hold interest rates as inflation risks linger (Engineering News)
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SADC boosts support towards Namibia in developing a CBM National Strategy (SADC)
The Southern African Development Community (SADC), in collaboration with the Namibia Revenue Agency (NamRA) convened a workshop in Windhoek, Namibia from 29th February 2024 - 1st March 2024 to validate the Draft Coordinated Border Management (CBM) National Strategy.
The Namibia CBM National Strategy demands a coordinated approach by border control agencies in seeking greater efficiencies in managing the flow of legitimate trade and commerce, while satisfying compliance requirements and national security interests. The Strategy will assist Namibia in simplifying and harmonising trade documentation and border procedures, as well as enhancing the predictability of control procedures based on risk management of border agencies.
Tanzania raises budget to $19bn on polls, Afcon costs (The East African)
Tanzania’s Finance Ministry has proposed a Tsh49.34 trillion ($19.35 billion) budget for the 2024/2025 financial year, an 11 percent increase from the Tsh44.4 trillion ($17.41 billion) in 2023/2024.A big chunk of expenditure is expected to go the elections and preparations for the 2027 Africa Cup of Nations (Afcon) finals, which Tanzania is hosting jointly with Kenya and Uganda.
According to budget guidelines announced by Finance Minister Mwigulu Nchemba this week, recurrent spending will go up to Tsh33.55 trillion ($13.15 billion), from Tsh29.17 trillion ($11.44 billion) in the current fiscal year, as the government prepares for local government elections in October and the 2025 general election.
Nigeria Considers Possibility of ECOWAS Single Currency as Naira Dips (Legit.ng)
Nigeria’s finance minister and coordinating minister of the economy, Wale Edun, remains hopeful about the feasibility of the proposed monetary union and single currency for the West African Monetary Zones (WAMZ).This comes despite the recent failure of member states to meet the established convergence criteria.
The development follows an earlier report by Legit.ng that Nigeria has yet to decide on the next course of action for the adoption of the Economic Community of West African States (ECOWAS) single currency, “Eco”, by member states. This is subsequent to the failed promise by ECOWAS to begin the use of the regional bloc’s single currency in 2020.
Edun’s optimism on the eventual use of the single currency follows the release of the latest progress report on the project, which revealed a decline in performance scores for WAMZ member states. According to BusinessDay, in 2023, these states not only fell short of meeting the criteria for adopting a single currency but also saw their performance score decrease to 29.2% from 41.7% in 2022. The single currency initiative entails each member state meeting four key criteria: maintaining an inflation rate of 5%, sustaining a fiscal deficit GDP ratio of 4%, limiting deficit financing by the central bank to 10%, and ensuring a sufficient level of gross official foreign exchange reserves equivalent to at least six months of imports.
Thirty-one countries to start trading under AfCFTA Agreement this year (Engineering News)
Amid the increasing importance of intra-African trade, 31 countries are expected to start trading under the African Continental Free Trade Area (AfCFTA) Agreement by the end of the year, South Africa’s Department of Trade, Industry and Competition Trade Branch Africa bilateral economic relations chief director John Rocha said during a March 14 Transport Forum webinar. Supply chain advisory company Sincpoint CEO Lebo Letoalo highlighted that the AfCFTA is the largest free trade area globally connecting 1.3-billion people across Africa.
She added that the AfCFTA was aimed at transforming Africa into “the global powerhouse of the future,” adding that the agreement would progressively eliminate tariffs on intra-African trade, making it easier for African businesses to trade within the continent and benefit from the growing African market.
The AfCFTA was also aimed at encouraging increased beneficiation in Africa. “We need to get to a point where we reduce commodity dependence and foster diverse resilient economies.” However, Letoalo pointed out that a lack of efficient transport and logistics infrastructure added about 30% to 40% to intra-African trade costs, thereby stifling growth and hindering progress.
Hence, the AfCFTA provides opportunities for investment in the expansion and upgrade of Africa’s logistics infrastructure, including ports, roads, railways and warehouses, to facilitate the seamless movement of goods across Africa and link it to the global market. Automated systems will also be integrated into the supply chains to enable faster and more cost-effective transportation.
See also: SA, Ghana must push AfCFTA to improve trade (IOL)
“Africa Needs Trade, Not Aid” (Liberiann Observer)
With a population of 1.2 billion people, the African continent should prioritize intra-trade and investments amongst its people and countries, Speaker of the House of Representatives, J. Fonati Koffa, has urged African leaders and other stakeholders on the continent. He emphasized the importance of prioritizing intra-trade and investments within Africa to boost economic growth. He advocated for open borders, a single currency, and the leveraging of technology as key factors in promoting trade over aid on the continent.
“As I am given this platform or any other, I will continue to preach the dual theme of open border and single currency because a continent of 1.2 billion people should depend on trade not aid,” the Speaker told stakeholders in a special statement at the 12th African Leadership Magazine Persons Of The Year Awards ceremony held in Addis Ababa, Ethiopia, on Friday. “It is my submission that for us to build resilient African economies, we need open borders, embrace, invest and leverage technology and move faster towards a single African currency.”
Green hydrogen: The future of African industrialisation? (ECDPM)
While exports present opportunities to some African countries, the risks can also be considerable, given the chicken-and-egg situation between low-cost production of green hydrogen and large-scale consumption in decarbonised industries. Exports, however, are only part of the picture.
Many African countries are developing highly ambitious hydrogen economy strategies (figure map). The underlying assumption is that cheap hydrogen can be a game changer for their economies, and can ‘flip the script’ from energy poverty to green energy leadership. At the same time, initiatives like the Africa Green Hydrogen Alliance, between Egypt, Kenya, Mauritania, Morocco, Namibia and South Africa, and several national strategies have an implied sequencing between export markets and domestic hydrogen economies: Exports of hydrogen, ammonia, and other derivatives like e-fuels create “breakthrough opportunities” to develop the sector today, while unlocking domestic opportunities for decarbonised heavy industries tomorrow.
Realizing Africa’s demographic dividend: A call to action (Brookings)
Africa stands at a crossroads, facing both unprecedented opportunity and daunting challenges on the path to realizing its demographic dividend. With a youthful population that could potentially fuel a transformative wave of economic growth and development, the continent is poised for significant progress. However, several formidable hurdles stand in its way. Among these challenges, the role of medium, small, and micro enterprises (MSMEs) emerges as a critical factor, with limited access to finance and loans, stringent collateral requirements, and a lack of capacity-building opportunities posing significant barriers to the growth of these businesses. Furthermore, the broader issue of financial inclusion amplifies these challenges. In addressing these multifaceted problems, Africa must overcome these hurdles to harness the promise of its youthful population, ultimately turning demographic potential into lasting socioeconomic progress.
Digital finance boosting women’s financial inclusion in sub-Saharan Africa: Emerging evidence (Brookings)
In the 10 years leading up to 2021, the share of women in sub-Saharan Africa who owned a financial account more than doubled to reach 49%, according to data from the Global Findex. Since 2017 alone, account ownership rates for women in the region increased 12 percentage points, driven entirely by increased adoption of mobile money accounts.
Mobile money is a financial service offered by a telecom or a fintech firm that partners with mobile network operators independent of the traditional banking network (this is different from traditional banking services accessed through a mobile phone). Mobile money services are typically enhanced by local mobile agents, where women can conveniently deposit even small amounts of cash to make payments, pay bills, send remittances, or store money outside of the home.
Two striking examples include Cameroon, where account ownership for women increased from 30% in 2017 to 49% in 2021, including a 26 percentage point increase in mobile money accounts, and Ghana, where account ownership for women increased from 54% to over 63%, including a 21 percentage point increase in mobile money accounts.
The continued growth in financial access is excellent news, given evidence showing the ways women benefit from having their own financial accounts. These include greater personal safety and less exposure to theft, more say over how household resources are spent, and greater ability to receive money from friends and family in the event of an emergency.
SADC aviation leaders call for open skies to promote economic growth in the region (IOL)
According to Natalia Rosa, the project lead on SADC Business Council Tourism Alliance, the current state of aviation in SADC is a massive own goal for the region’s economies and the region can talk about a free trade area and regional integration, however, if people and goods can’ t move efficiently then it’s all just empty promises. Rosa was speaking at the Southern African Industrialisation Forum (SAIF) held in Sandton recently.
Why Internet disruptions have rocked parts of Africa (The East African)
Damages on multiple undersea telecommunication cables are the cause of a far-reaching connection outage that rocked parts of the African continent for the second day on Friday, with operators and Internet watch groups warning that the situation could take weeks if not months to fix. As of the close of Friday, at least eight countries in the continent had reported major connectivity issues even as details regarding the cause of the sub-sea cable damages remained scanty.
According to reports by global media networks, the cable lines affected included the West Africa Cable System (WACS), MainOne, South Atlantic 3 and ACE sea cables—all of which are regarded as key continental arteries for telecommunications data.
Among countries that took the biggest hit included Côte d’Ivoire, Liberia and Benin while Ghana, Nigeria, Cameroon and South Africa reported mild disruptions. Others affected included Burkina Faso, Gambia, Guinea, and Niger.
Internet blackout an attack on Africa’s trade, democracy – Agumenu (Ghana News Agency)
Dr Donald Agumenu, a leadership and management expert, has described the internet blackout experienced in parts of the African continent as “suspicious threat to its trade and democracy”. He said it was unfortunate that major trading blocs in Africa were hit by the cyber storm, disrupting trading activities.
Dr Agumenu said it was also worrying that it occurred when some of those countries were seriously preparing for elections. He said the excuse for an undersea cable disruption should not be taken lightly, saying, there were more to it from a geo-cyberpolitical perspective that needed to be explored to its logical conclusion.
“Africa may experience a more complex internet and cyber warfare if the techno-revolutionary narrative remains the same. What is more worrying is the level of vulnerability it brings to a continent with over half a billion people online.” “We need to wake up to the fact that the era of ICT and digital transformation has ushered in a new community with its own complexities and that we need to manage this paradigm shift with the utmost care to stay afloat in global affairs,” he cautioned.
EAC partner states ignite federation quest (IPP Media)
President Samia Suluhu Hassan at midweek hosted Kenyan President William Ruto and Ugandan counterpart Yoweri Museveni in a meeting aimed to discuss East African economic and political integration. The meeting held on Thursday evening at the Tunguu State Lodge in Zanzibar, saw the three leaders agreeing on the need to hasten public hearings on the structure and areas to be considered in a draft constitution for East African political federation.
This exercise has already been conducted in Burundi, Uganda and Kenya, it said, with the president saying in the X post that “apart from other things, we have also discussed measures to take to ensure that citizens in the EAC benefit from available economic opportunities.” The leaders also discussed the importance of heightening security and safety as a major pillar helping the various countries attain development goals.
President Museveni similarly affirmed that the discussion was centred on the significance of the East African Community (EAC) attaining political federation, “which would most certainly guarantee the prosperity of our people.”
On the other hand, President Ruto said that the discussion was focused on the fast tracking of the federation. “Today, as leaders among the eight EAC partner states, we reaffirm our unwavering support for further regional integration and prosperity, focusing on fast-tracking the federation,” the Kenyan leader wrote on X.
Red Sea, Suez Canal crisis fuels fresh wave of rate hikes in East Africa (The East African)
East African central banks are facing a fresh wave of rate hikes to contain inflationary pressures emanating from surging shipping and insurance costs for vessels diverting from the Suez Canal as a result of the Middle East conflict which continues to disrupt the flow of goods through the Red Sea.
The Bank of Uganda (BoU) recently convened a Monetary Policy Committee (MPC) meeting that increased its policy rate by 50 basis points to 10 percent to deal with the new inflation threats. This signals likely rate hikes in Kenya and Tanzania, whose 15 percent and 10 percent, respectively, of foreign trade goes through the Egyptian waterway, according to data by the United Nations Conference on Trade and Development (Unctad).
“Risks to the inflation outlook remain highly dependent on the global and domestic environment. Specifically, higher global commodity prices, partly due to geopolitical tensions and an increase in shipping costs resulting from the Middle East conflict as well as tighter global financial market conditions could result in higher domestic inflation,” BoU’s deputy governor Michael Atingi-Ego said in a statement dated March 6.
US-East Africa trade summit set for April (CAJ News Africa)
The fourth edition of the regional American Chamber of Commerce Kenya (AmCham) Business Summit will advocate for enhanced partnership and investment in the United States-East Africa trade. AmCham is the premier platform for strengthening bilateral trade and investment between the US, Kenya, and East Africa. The upcoming edition is set to be held on April 24–25, in Nairobi, Kenya.
AmCham’s Board President, Peter Ngahu highlighted that the summit would explore opportunities to promote sustainable and inclusive growth while increasing investment in Kenya and the East African region. “As we celebrate years of shared value and interests, the AmCham Business Summit stands as a beacon of opportunity. We look forward to exploring how we can leverage these opportunities as we stay committed to helping drive investments in East Africa,” Ngahu said.
A wide range of topics critical to the region’s economic development, including shaping the future of US-East Africa trade and investment, climate action, digital transformation, and sustainable finance for East African economies, will be covered in a series of panel discussions, keynotes, and roundtables moderated by experts from the public and private sectors.
Co-convenors mark March round of e-commerce negotiations an important milestone (WTO)
During the second round of e-commerce negotiations in 2024, held from 11 to 14 March, e-commerce negotiators reviewed a second iteration of the Chair’s text that had been circulated shortly before the WTO’s 13th Ministerial Conference. Co-convenors of the talks — Australia, Japan and Singapore — said that this version is comprehensive and could pave the way for the conclusion of the agreement by the summer.
Progress Report: Sustainability, Digitalization and Safety in Air Cargo (IATA)
The International Air Transport Association (IATA) reviewed progress in digitalization, safety and sustainability at the opening of the IATA World Cargo Symposium with the aim of accelerating progress on these critical priorities. “Air cargo volumes are now firmly back to pre-pandemic levels. The challenge now is to ensure that air cargo growth is efficient, safe and aligned with achieving net zero carbon emissions by 2050. Through the hard work of the air cargo industry, the building blocks are in place to significantly accelerate progress in all these areas,” said Brendan Sullivan, IATA’s Global Head of Cargo at the World Cargo Symposium (WCS), which opened in Hong Kong, on 12 March.
UNCTAD urges reforms on global debt architecture amid rising distress (UNCTAD)
UNCTAD has called for urgent reforms to the global debt architecture to avert a widespread debt crisis among developing countries. In the wake of the COVID-19 pandemic, developing countries’ external sovereign debt – funds borrowed in foreign currency – increased by 15.7% to $11.4 trillion by the end of 2022. The mounting debt levels are further complicated by the diversity of lenders and financial instruments.
Equally alarming is the surge in debt servicing costs. Low-income and lower-middle-income countries – also referred to as frontier markets – that borrowed when interest rates were low and investors keen are now spending around 23% and 13% of their export revenues, respectively, to repay their external debt.
The rising debt costs are draining vital public resources needed for development. About 3.3 billion people – almost half of humanity – now live in countries that spend more money paying interest on their debts than on education or health. The UN’s “A World of Debt Dashboard” provides data and in-depth insight on key public debt and development spending indicators for 188 countries.
“This situation is clearly unsustainable,” Ms. Nesvetailova says. “While a systemic debt crisis, in which a growing number of developing countries move from distress to default, looms on the horizon, a development crisis is already underway.”
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Trade Policy Review: Angola (WTO)
Brazil reaffirms bond with Africa (The Independent Uganda)
Understanding rules of origin: Getting the details right (Trade Finance Global)
Russia formally accepts Agreement on Fisheries Subsidies (WTO)
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Industrial gas users prepare to make ‘orderly transition’ case at crunch gas-cliff meeting (Engineering News)
The creation of a formal public-private platform to assess solutions to a pending “gas cliff” for industrial consumers in South Africa points to the fact that the issue is finally being taken seriously by all stakeholders, Industrial Gas Users Association of South Africa (IGUA-SA) executive director Jaco Human tells Engineering News.
Speaking at the African Energy Indaba, Mineral Resources and Energy Minister Gwede Mantashe said the task team had been established “to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses”. Mantashe also announced that the efforts would be supported by the finalisation of the Gas Master Plan, which would be presented to Cabinet in March, and various collaborative efforts being pursued with the Mozambique government, including on the proposed Matola liquefied natural gas (LNG) hub.
Kenya posts $1.2bn surplus in trade with Africa (The East African)
Kenya’s earnings from goods exported to African countries exceeded expenditure on imports by a record Ksh164.04 billion ($1.22 billion) in 2023, provisional data shows, boosting the government’s renewed push for integration of markets on the continent. The value of goods sold to other countries in the continent amounted to Ksh431.89 billion ($3.22 billion) last year, a growth of 22.99 percent over Ksh351.16 billion ($2.62 billion) the year before.
The increased earnings came at a time when expenditure on imports remained largely flat, rising a measly 0.31 percent to Ksh267.86 billion ($2 billion), according to data collated by the Central Bank of Kenya (CBK).
The Southern African Development Community (SADC) region is actively working towards promoting and advancing the growth of the regional leather value chain, which is among the 32 priority value chains in the region. The leather value chain aligns to the regional strategic objectives which seeks to advance industrialisation and regional integration through the agricultural and natural resource led economic growth.
As part of the implementation of the Support to Industrialisation and Productive Sectors Programme (SIPS), the SADC Secretariat, in partnership with the Ministry of Trade and Industry of the Republic of Malawi, hosted a 2-day strategic workshop on 12-13 March 2024 in Blantyre, Malawi to develop a national Strategic Workplan as part of the domestication of the Regional Leather Value Chain Model Policy Framework.
Delivering the keynote address on behalf of the Permanent Secretary of the Ministry of Trade and Industry, Ms. Gladys Chimpokosera, Deputy Director of Industry in the Ministry of Trade and Industry for Malawi, emphasised that the workshop is aligned with the specific objectives outlined in Malawi’s Vision 2063. The Vision places impetus on industrialisation through promotion of research, science, technology and innovation as well as education and skills development to promote product development and design.
Nigeria’s top 10 import trading partners (Business Insider Africa)
Nigeria engages in the international trade game for several reasons. Sometimes it is to fill in the gaps where resources are lacking; other times, it is to keep up with the latest and greatest technology. And, of course, there’s also the need to meet the demands of a ballooning citizenry.
According to the National Bureau of Statistics in its latest “Foreign Trade Statistics” in Q4 of 2023, the total import value hit ₦14,108.33 billion. This represents a 56.04% surge compared to Q4 2022 (₦9,041.24 billion) and a staggering 163.08% jump compared to the same quarter in 2022 (₦5,362.83 billion). The boost in import value during the quarter was mainly driven by the import of ‘Tanks and other armored fighting vehicles, motorized, whet,’ which accounted for ₦5,061.25 billion.
Talking about imports, the top five trade partners were Singapore, bringing in goods worth ₦5,092.36 billion (or 36.09%); China, with ₦2,060.59 billion (or 14.61%); Belgium, with ₦1,140.97 billion (or 8.09%); India, with ₦908.59 billion (or 6.44%); and the USA, contributing goods valued at ₦512.99 billion (or 3.64%).
Expert highlights advantages of changes made to the customs tariff (Angop)
The technician from the Northern regional department of the General Tax Administration (AGT), Dionísio Domingos, highlighted, on Wednesday, in Ndalatando, Cuanza-Norte province, the advantages of the changes made to the national customs tariff. He considered that the changes inserted as part of the customs tariff review will help develop the economy, encourage national production and reduce imports.
The revision of the Act, which comes into force from April this year, is a result of compliance with the Constitution of the Republic and the regulations of the world Customs and Trade organizations. Dionísio Domingos provided this information during a lecture on “The dissemination of changes to the New Customs Tariff”. He highlighted that the review of the national customs tariff takes place every five years to confirm it to international regulations, promote an increase in production, exports, State revenue and reduce smuggling.
Among the changes, the new agenda enshrines tax exemptions for the import of agricultural inputs, machinery, medicines and other goods with a low level of production on the national market, in addition to attractive rates for the primary sectors of the economy.
UNDP boosts Ghanaian MSMEs AfCFTA participation with US$70,000 grant (GhanaWeb)
Ghanaian Micro, Small, and Medium Enterprises’ (MSMEs) participation in the African Continental Free Trade Area (AfCFTA) gets a major boost with a $70,000 grant. The United Nations Development Programme (UNDP)/Absa Bank Ghana partnership is part of a series of business development activities, which has already supported about 3,000 enterprises over the past four years.
Under the current programme, some 18 MSMEs that qualified from an innovation pitching competition would be supported to scale and firm up their operations and leverage opportunities presented by the continental free trade. Dr Angela Lusiga, UNDP Resident Representative to Ghana, expressed confidence in the programme helping address the financing gap for MSMEs, and for them to be fully prepared to participate in AfCFTA.
“We started with a survey where we asked MSMEs what they knew about AfCFTA. We found out that there were many enterprises that didn’t even know about AfCFTA. Most of them didn’t know much about the opportunities and products that are allowed under the AfCFTA,” she said. Dr Lusiga said UNDP had effectively addressed the awareness deficit about the AfCFTA with the beneficiary MSMEs through working with the National Coordination Office of AfCFTA to spread awareness of the agreement in different districts.
EAC member states to develop GMO policy despite debate (NTV Uganda)
The East African Community (EAC) member states have agreed to develop a policy on genetically modified organisms (GMOs) despite mixed feelings on whether the region should adopt the technology. Kenya’s Cabinet Secretary in charge of the EAC, Peninah Malonza, told the regional assembly sitting in Nairobi, Kenya, that the member states will soon enact a regional policy to guide the implications and regulate the use of GMOs. Today, the assembly’s committee on Agriculture, Tourism, and Natural Resources tabled a report in which the legislators assessed the region on the adoption of GMOs.
Local experts share insights on what a common currency would mean for East African integration (The Citizen)
Economic experts have outlined the potential of using a common currency in the East African Community (EAC), stating that it will deepen economic integration. The eight-member regional bloc aims to achieve a Monetary Union or Single Currency by 2031. The experts argue that the common currency stage will generate more economic benefits for residents and states through trade facilitation.
An economist and lecturer at the University of Dar es Salaam (Udsm), Dr Mwinuka Lutengano, said the common currency would be beneficial, especially in facilitating trade. “By adopting a common currency, EAC member states will eliminate the need for currency conversions and associated transaction costs. This streamlines trade transactions, making it easier and cheaper for businesses to conduct cross-border trade,” he said. He added that the use of a single currency would allow businesses within the region to price their goods and services more efficiently, leading to increased competitiveness and potentially higher export volumes.
Ruto joins Museveni, Suluhu in Zanzibar to discuss EAC political federation (The Star)
President William Ruto on Thursday traveled to Zanzibar to meet Ugandan President Yoweri Museveni and Tanzania’s President Samia Suluhu. The meeting, the three Heads of State said was organised to discuss matters in the East African Community. “Today, as leaders among the eight EAC partner states, we reaffirm our unwavering support for further regional integration and prosperity, focusing on fast-tracking the federation,” Ruto wrote on X.
Communication from Ikulu in Tanzania said that the presidents in the meeting agreed on the need to hasten the public participation exercise on the structure and areas to be considered in the Draft Constitution of the East African Community Political Federation.
The vision of the meeting, Ruto said, is to promote the unity of the communities in the three member states, to harness the economic benefits of creating a larger market, and the imperative of security for stability within the expanded Community. The Political Federation, if formed, will be founded on three pillars; common foreign and security policies, good governance and effective implementation.
East African Petroleum Conference 2025 preparations commence as Uganda hands over to Tanzania (EAC)
The stage is set for the 11th East African Petroleum Conference and Exhibition 2025 (EAPCE’25), scheduled to take place from 5th – 7th March, 2025 in Tanzania. Organized by the East African Community (EAC) Secretariat and the EAC Partner States, the event anticipates attracting over 1,000 participants. Under the theme “Unlocking Investment in Future Energy: The Role of Petroleum Resources in the Energy Mix for Sustainable Development in East Africa”, the 2025 edition aims to highlight the region’s petroleum potential and investment opportunities.
The Regional Steering Committee for EAPCE’25, comprised of experts from the EAC Partner States, convened in Zanzibar, Tanzania for a pivotal meeting marking the official commencement of preparations. The Chairperson of the Regional Steering Committee, Deputy Permanent Secretary, Ministry of Energy Tanzania, Dr. James Mataragio emphasized the conference’s significance, noting its evolution into the region’s premier petroleum event.
Looking ahead to 2050, the EAC envisions a sustainable, affordable, and secure energy mix to meet regional needs. With a focus on access, capacity, efficiency, and sustainability, the region aims to transform its energy landscape, ensuring efficient distribution of petroleum products and strategic reserves.
Central Africa Says Economic Bloc Poorest, Integration Stagnant at 4% (Voice of America)
The Central African Economic and Monetary Community, CEMAC, marks its 30th anniversary this week but by some measures has little to celebrate. The bloc says member countries conduct most of their trade with outside countries and have made little attempt to break down economic barriers between them, leaving CEMAC the least developed and poorest economic bloc in Africa.
Officials say the Central African Economic and Monetary Community remains the least integrated economic bloc in Africa, despite its very strong economic and social potential. CEMAC officials say member countries conduct more than 80 percent of their foreign trade with Europe, China and Russia – and only 4 percent with each other.
Sylvestre Michel Nkou is an economic adviser to the Congo government and CEMAC. He spoke during celebrations marking the economic bloc’s 30th anniversary in Yaounde Thursday. Nkou says CEMAC member states should emulate the Economic Community of West African States, in which civilians and merchants move from one country to the other without fear of police harassment, brutality or the confiscation of their goods. He says poverty will be reduced in central Africa and the economic bloc will cease to become the poorest on the continent when integration becomes a reality, not a political slogan.
Africa CEO Forum 2024: Leaders convene in Kigali to shape continent’s future (The Citizen)
As Africa grapples with pressing global challenges, the 2024 Africa CEO Forum is poised to address the continent’s pivotal moment. Set for May 16th and 17th in Kigali, Rwanda, this year’s forum poses a critical question: Will Africa seize the opportunity to lead or risk being sidelined in history?
With the theme “At the Table or On the Menu? A Critical Moment to Shape a New Future for Africa,” the 11th edition of the Africa CEO Forum emphasizes the urgency for African leaders to unite and forge a path forward amidst economic shifts and uncertainties. For over a decade, the Africa CEO Forum has served as a gathering ground for the continent’s most influential figures in business, innovation, and policy-making. This year’s event will focus on four transformative agendas: leadership, digital transformation, continental integration, and financing.
Amidst the gathering, leaders will engage in panel discussions, workshops, and roundtables aimed at strategizing for growth, fostering innovation, leveraging the African Continental Free Trade Area (AfCFTA), and overcoming financial obstacles. The forum aims to catalyze actionable solutions to accelerate Africa’s progress and prosperity.
Africa seems to be embracing the Russian currency at the expense of the dollar (Business Insider Africa)
A report by Sputnik Africa showed that the use of the Russian currency for trade between Russia and Africa has more than doubled since 2022. This information is according to the Central Bank of Russia which disclosed that the percentage in rubles of Russian-African settlements doubled in 2023 compared to the year prior. In 2022, the percentage of Russia-African trade transacted in rubles came in at 21.9%, while 2023 figures were twice that at 48.1%.
The Russian Central Bank also reported that there has been a substantial rise in the amount of ruble settlements in other regions outside of Africa including with American countries. The trade-in rubles between American countries and Russia rose from 22.7% to 35.1%. Likewise with Asian nations, the ruble’s percentage increased from 20.5% to 24%.
The shift toward local currency transactions represents a turning point in the development of the world economy. For the foreseeable future, the dollar will definitely continue to dominate international banking. Still, the emergence of local currency trading indicates a larger move towards a more decentralized and multipolar monetary system.
Africa awaits French bid to ban $1bn second-hand clothes trade (EUobserver)
France’s attempts to impose an EU-wide ban on the export of used clothes will be watched closely by dozens of African countries, that receive millions of tonnes of used clothes each year. On Thursday (14 March), the French national assembly approved a new law that would gradually impose fines of up to €10-per-item of clothing by 2030, as well for a ban on advertising for such products.
On the same day, the environment ministry in Paris told Reuters that it would push for an EU ban to be discussed at a meeting of EU environment ministers on 25 March, with the support of Sweden and Denmark.
Trade data from the United Nations shows the EU exported 1.4m metric tons of used textiles in 2022. A European Environment Agency report in 2023 showed that Europe dumps 90 percent of its used clothes in Africa and Asia, warning that clothes can cause pollution in African countries where items that cannot be resold end up in dumps.
‘Uplifting women in decision-making relevant for public, private institutions’ (IPP Media)
President Samia Suluhu Hassan has urged public and private institutions to increase efforts to ensure that more women have an opportunity to be in various decision making bodies. She was gracing an opening ceremony for the launch of the Tanzania Women in Financial Sector Association (TAWiFA) at Kizimkazi Township in Unguja South Region, organised by TAWiFA in collaboration with the Tanzania Insurance Regulatory Authority (TIRA) and the Mwanamke Initiatives Foundation (MIF).
The one-day event brought on board participants from both sides of the union, where apart from the launch of the association, the event gave a platform to extensively discuss how to overcome the challenges they face.
Pollution – a Threat To Our Groundwater Resources (Inter Press Service)
Groundwater pollution significantly affects the prevalence of waterborne diseases. This form of pollution occurs when hazardous substances, such as pathogens, chemicals, and heavy metals, seep into underground aquifers, the primary source of drinking water for approximately 70% of the 250 million people living in the SADC region.
“The link between contaminated groundwater and waterborne diseases underscores the urgency of protecting these vital water resources. To mitigate these dangers, concerted efforts are required to prevent pollutant infiltration, monitor water quality, and enhance water treatment facilities”, said Gerald Mundondwa, SADC-GMI Senior Groundwater Specialist.
Addressing these challenges is pivotal for the preservation of groundwater quality and the prevention of the dire ecological and health repercussions associated with its contamination.
Commonwealth Law Ministers encouraged to enable move to paperless trade (The Commonwealth)
This March, Commonwealth Law Ministers were encouraged to enable the move to paperless trade by undertaking legal reform allowing digital trade documents to have the same force in law as paper-based documents. At the Commonwealth Law Ministers Meeting in Zanzibar, Tanzania, held from 4-8 March, the Commonwealth Connectivity Agenda (CCA) presented its Working Group on Legal Reform and Digitalisation to Ministers and senior legal officials.
Whilst the CCA Trade Specialist Mr Niels Strazdins noted that the Working Group and its outputs will play a crucial role in helping member states unlock up to US$1.2 trillion in additional Commonwealth trade by moving to paperless trade. This number includes a potential US$90 billion in savings from the cost reductions resulting from the move to digital processes, and an additional US$1.1 trillion in additional trade resulting from greater access to finance, according to CCA research.
Making artificial intelligence work better for consumers and societies (UNCTAD)
The growing presence of artificial intelligence (AI) in consumers’ lives has put our societies at a crossroads, said UNCTAD Secretary-General Rebeca Grynspan, marking World Consumer Rights Day on 15 March. The secretary-general was addressing an event in Geneva on consumer experience and generative AI, gathering international organizations, businesses and consumer rights groups.
Advancing at breakneck speeds, data-driven AI holds vast promise for consumer welfare, through personalizing products and services, optimizing customer support, and addressing disputes online. But at the same time, there are growing concerns over the fair, responsible and ethical use of AI,
UN Paper Discusses Governments’ Role in Regulating and Using AI for the SDGs (IISD)
The UN Secretariat has published a paper prepared by members of the UN Economic and Social Council (ECOSOC) Committee of Experts on Public Administration (CEPA) discussing ways in which artificial intelligence (AI) governance can help reinforce the 2030 Agenda for Sustainable Development and leave no one behind. Its findings will inform the Committee’s deliberations in April.
Titled, ‘Artificial Intelligence Governance to Reinforce the 2030 Agenda and Leave No One Behind,’ the paper (E/C.16/2024/7) highlights AI’s “immense” potential benefits, “augmenting human capabilities, increasing the well-being of people and contributing to the betterment of society.” It recognizes that AI is evolving at an “unprecedented” pace, warning of many challenges, risks, and ethical concerns that must be urgently addressed. The paper underscores that as regulators and users of AI, governments have an especially important role to play in making sure AI contributes to sustainable development and improves people’s lives.
Expert Urges Rethink of Business Paradigm to Protect Earth, Human Rights (IISD)
In his report to the Human Rights Council (HRC), UN independent expert on human rights and the environment David Boyd warns that humanity is exceeding planetary boundaries. The report calls for “an urgent rethinking of the business and economic paradigms that have pushed civilization to the brink of disaster.”
The report of the Special Rapporteur on the issue of human rights obligations relating to the enjoyment of a safe, clean, healthy, and sustainable environment is titled, ‘Business, Planetary Boundaries, and the Right to a Clean, Healthy and Sustainable Environment’ (A/HRC/55/43). It points to the “inadequacies of voluntary normative frameworks for ensuring that businesses respect human rights and clarifies State obligations to protect the right to a clean, healthy and sustainable environment from harms caused by businesses.”
The report calls for “systemic and transformative changes” to achieve a just and sustainable future. These include new business models, climate and environmental laws that incorporate planetary limits, fiscal policies that internalize externalities and reduce inequality, and societal goals that replace gross domestic product (GDP) and limitless growth.
Small business investing abroad: Why it matters and what needs to happen next (UNCTAD)
Foreign direct investment by small- and medium-sized businesses (SMEs) has been falling in recent years. Between 2015 and 2022, the number of overseas greenfield investment projects by SMEs dipped by about 75%, according to a new UNCTAD report published on 6 February.
“SME investment can be most beneficial for development,” says Amelia Santos-Paulino, head of investment issues and analysis at UNCTAD. “Because these businesses are more agile, relying more on local suppliers and partners, and less likely to crowd out local firms.”
SMEs can become a real game changer, especially when globally, there’s increasing competition for a shrinking pool of large-scale projects, and an accelerating trend towards regional economic integration. But in practice, SME investors commonly grapple with financial and information constraints, and difficulties navigating complex regulations. Adding to the challenge is an international context where policy efforts to facilitate and promote investments are often geared towards attracting large multinational enterprises (MNEs).
‘Record high’ in UN development index masks stark disparities (UN News)
According to 2023-24 Human Development Report from the UN Development Programme (UNDP), the Human Development Index (HDI) stands at a new high following steep decline during 2020 and 2021 due to the COVID-19 pandemic. Rich countries experienced unprecedented development, the Human Development Report details, yet half of the world’s poorest nations continue to languish below their pre-COVID crisis levels.
“The widening human development gap revealed by the report shows that the two-decade trend of steadily reducing inequalities between wealthy and poor nations is now in reverse,” said UNDP Administrator Achim Steiner.
See also: Growing gulf between rich and poor countries ‘recipe for much darker future’, says UN (The Guardian)
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MSC South Africa Inaugurates MEDLOG Cold Store Facility, revolutionizing trade dynamics in the region (FreshPlaza)
The MSC Group operates various entities including Mediterranean Shipping Company, Mediterranean Shipping Depot, MSC Logistics (MEDLOG), MSC Technical and Shosholoza Operations. The breadth of MSC’s presence is reflected in its extensive network here, with six offices strategically located in Durban, Cape Town, East London, Johannesburg, Port Elizabeth and Pretoria.
MSC continues its journey in the region, opening a state-of-the-art 15,000-metre cold storage facility, also in Durban. The enormous cold store, part of MSC’s MEDLOG logistics division, promises to catalyse advancements in the handling of perishable goods in South Africa and beyond, and will open up the country’s trade landscape.
An inaugural event for the cold storage facility took place on 7 March, 2024, attended by MSC CEO, Soren Toft, with the presence of government officials, industry partners, clients and MSC personnel. Mr Toft gave a keynote address highlighting the impact of the new facility as part of South Africa’s bright economic trajectory.
Cabinet welcomes AfCFTA Protocol on Women and Youth in Trade (SAnews)
Cabinet says it welcomes the African Union Assembly’s adoption of key protocols and decisions affecting the African Continental Free Trade Area (AfCFTA). “These included the first-ever Protocol on Women and Youth in Trade, as well as Protocols on Investment and on Digital Trade,” said Minister in the Presidency Khumbudzo Ntshavheni. The Protocol on Women and Youth in Trade aims to promote sustainable and inclusive socioeconomic development, provide equal opportunity for women and youth in intra-Africa trade, and the structural transformation of African economies.
In addition, Ntshavheni said the Executive noted the outcome of the 13th Ministerial Conference of the World Trade Organisation (WTO). They also welcomed the acceptance by the WTO of South Africa’s instrument of ratification of the Fisheries Subsidies Agreement.
On the other hand, Ntshavheni said the Executive noted with concern a number of key development goals of African countries were not concluded after opposition from larger and developed economies. “These relate to policy space for industrialisation by developing countries, an agriculture agreement that provides greater access to developed country markets and opportunities for farmers in the global south, further measures to avoid over-fishing and steps to roll back unilateral and unjustified green protectionism measures such as the Carbon Border Adjustment Mechanism (CBAM) of the European Union,” the Minister said.
TNPA seeks to unlock land value through big leasing offer across seven ports (Engineering News)
South Africa’s State-owned Transnet National Ports Authority (TNPA) has released tenders for nearly 100 leasing opportunities across seven of its sea ports in line with a real estate strategy that aims to unlock the economic value of the land within the ports.
At 26 a piece, the Ports of Cape Town and Durban have the most leases on offer, followed by 24 at the Port of Richards Bay, 11 at the Port of Port Elizabeth, six for the Port of Saldanha, four at the Port of Mossel Bay and two for the Port of East London. The primary lease term ranges between a period of one to 15 years, and included in the request for proposals (RFP) documents are facilities and land that TNPA says could be repurposed for industrial and recreational purposes, along with vacant office buildings.
“While these leasing opportunities allow TNPA to fully optimise the use of land within the ports, they undoubtedly present an untapped opportunity for the business to unlock the future of South Africa’s trade economy whilst opening up the market for new entrants,” acting GM for commercial services Dr Dineo Mazibuko said in a statement.
South Africa and Namibia Set To Build $377million Transport Infrastructure Fund (Nairametrics)
Namibia and South Africa are set to launch transport infrastructure projects worth over $377 million over the next three years to address current rail and port inadequacies. The news was made public when the Namibian Executive Director for the Ministry of Finance and Public Enterprises, Titus Ndove told CNBC Africa that his office was preparing an initial R2bn for the project which aims to link the two nations and other parts of South Africa.
Speaking at the second annual Ninety-one Infrastructure Forum, Mr Ndove told delegates that it was vital South Africa resolve its logistics and port crisis by investing in Key infrastructure. “Most of our goods- about 70% of them coming from South Africa- move on the road and that has complications in the form of high maintenance costs for the roads. Sometimes we transport dangerous goods, which ideally, we want to get them off the road and carry on the rail.”
Zambia records positive ICT growth in 2023 (CGTN Africa)
Zambia’s information and communications technology (ICT) sector recorded positive growth last year, the country’s telecommunications regulator said Wednesday. The Zambia Information and Communications Technology Authority (ZICTA) said the various sub-sectors of ICT recorded positive growth in 2023 compared to 2022 due to increased investments in the sector.
Hanford Chaaba, ZICTA corporate communications manager, said in a statement that among the subsectors that recorded positive growth are active mobile cellular subscriptions, which increased to 21.1 million in 2023 from 19.8 million in 2022, and the total number of internet subscriptions, which increased to 12.6 million in 2023 from 11.1 million in 2022, reflecting a growth rate of 12.7 percent.
Trade between Tanzania and India is set to break its record (Business Insider Africa)
Mr. Manoj Verma, an official of the Indian High Commission in Tanzania announced during the Tanzania/India Business Forum during the weekend, as seen in the Tanzanian newspaper, The Citizen that trade between India and Tanzania is on track to surpass $7 billion. He also noted that Tanzania at this rate would become India’s largest trading partner in Africa.
“Our bilateral trade is set to cross $7 billion this year,” he said. “This has become possible due to favorable policies bolstering trade,” he added. The Indian official revealed that India has become the top destination for Tanzanian exports, thanks to the duty-free scheme initiated by India. The scheme ensures that over 90% of Tanzanian goods entering India are duty-free. “In fact as per Indian statistics, India is the number one destination for Tanzanian exports. It is undoubtedly the best trade partner for Tanzania,” Mr. Manoj Verma stated.
From White Gold to a Brighter Future - A Model for Sustainable Development in Burkina Faso (Islamic Development Bank)
Nestled in the heart of West Africa, Burkina Faso pulsates with the rhythm of cotton production. Lush fields stretching towards the horizon are meticulously tended by families whose lives have been interwoven with this precious crop, “white gold,” for generations.
Beyond its national pride, cotton is the lifeblood of countless rural communities, providing not just export earnings but a vital source of income and stability for millions. Recognizing this significance, the Burkina Faso government joined hands with the International Islamic Trade Finance Corporation (ITFC), the trade arm of the IsDB Group, to weave a remarkable story of partnership and progress.
While statistics boast of cotton as the nation’s second-highest source of export revenue, a deeper look reveals the even more impactful human story. A staggering 15-20% of the workforce relies on cotton, translating to millions depending on this crop for their very livelihood, considering many families have five or more members.
Despite its economic importance, the sector faced significant challenges. Delays in payments to farmers created financial insecurity and hindered investment in farms and families. Additionally, limited access to export markets restricted growth and development. The need for a comprehensive solution became apparent.
‘Gov’t does not intend to regulate prices of food commodities’ (The Point)
The minister for Trade, Industry, Regional Integration and Employment, Baboucarr Ousmaila Joof has told National Assembly Members (NAMs) that the government has no plans of regulating prices of rice, oil and sugar as such measures would only be counterproductive. “Price control is against the principle of a free market system and has not ensured price stability in the economy according to the evidence, but rather leads to hoarding and shortage of goods and services in economies,” he told deputies.
The Trade minister noted that The Gambia maintains a free market economy policy and the liberal trading environment where prices of goods and services are determined by market forces. However, he added the government is aware and conscious of their responsibility to ensure that consumers are not exploited through market failures including anti-competitive practices.
Nigerian Government Launch $2 Billion Initiative to Connect 774 Local Government Areas with Fiber Optic Network (Innovation Village)
The Federal Government revealed on Wednesday its plan to launch a $2 billion fund aimed at connecting all of Nigeria’s 774 local government areas through fiber optics. Spearheaded by the Ministry of Communications, Innovation, and Digital Economy, the initiative seeks to enhance internet connectivity nationwide.
According to Dr. Bosun Tijani, the Minister of aCommunications, Innovation, and Digital Economy, the project received pledges from various institutions, including a commitment of $200 million from the African Development Bank. Other donors include the World Bank, the African Export and Import Bank, and the United States Export and Import Bank.
The expansion of Nigeria’s broadband access aligns with the Ministry’s vision outlined in a white paper published in January 2024. The document emphasises the importance of deploying fiber optic cables across the country to achieve a 70 percent broadband penetration target by 2025.
Niger eyes April for first oil export with the completion of 110,000 b/d Benin pipeline (Business Insider Africa)
The initial shipment of crude oil was anticipated to be exported in January, as announced by the military leader of the country, Abdourahamane Tiani, via state television. The relaxation of sanctions on junta-led Niger by the Economic Community of West African States (ECOWAS) in February, seven months after a military coup, allowed China National Petroleum Corporation to complete construction of the 2,000 km pipeline and crude was flowing through the conduit last week, sources said.
Benin is part of the ECOWAS regional bloc which placed sanctions on Niger, preventing important equipment from crossing the border between the two countries. This led to delays in the completion of the Niger-Benin pipeline project, with some pump stations awaiting the arrival of equipment held up in Benin.
France proposes EU ban on exports of used clothes (The East African)
French Environment Ministry told Reuters on Thursday that Paris is proposing a European Union (EU) ban on exports of used clothes as governments look for new ways to tackle the worsening problem of textile waste.
UN trade data shows the EU exported 1.4 million metric tons of used textiles in 2022, more than twice as much as in 2000. The clothes can cause pollution in African countries where items that can’t be resold end up in dumps, the EU has said. In total, Europe produces 5.2 million tons of clothing and footwear waste every year, according to the European Commission. “Africa must no longer be the dustbin of fast-fashion,” France’s Environment Ministry said in a statement to Reuters.
EALA tasks regional authorities on cross-border trade (New Vision)
EALA Speaker, Joseph Ntakirutimana and his team observed a stakeholders’ engagement session to hear first-hand the challenges facing cross-border trade in the East African Community (EAC) region. By addressing the concerns stakeholders raise, the EALA seeks to strengthen regional trade relations, improve economic growth, and enhance the overall welfare of East African communities.
Inept African ports miss chance as Red Sea attacks reroute ships (Engineering News)
Africa’s inefficient and aging ports are hampering the continent’s chances of capitalizing on a surge in ship traffic that’s avoiding attacks by Houthi rebels through the Red Sea, logistics experts said.
The number of vessels sailing around the southern tip of Africa is up 85% from the first half of December, when the Iran-backed, Yemen-based terrorists intensified their attacks on ships, according to Clarksons Research. Some of the biggest beneficiaries are ports in South Africa, Madagascar, Mauritius, and Namibia, all of which have seen volumes rise, manufacturing and logistics company Fictiv said.
“However, most ports in Africa are inefficient and not in the best condition to be able to fully realize all the benefits,” said Vinny Licata, Fictiv’s head of logistics. “This is could be a real opportunity for Africa, but several ports were already congested due to inefficiencies. Investments are needed to enable them to compete.”
Currently, Africa accounts for about 6% of global maritime trade, despite approximately 90% of its imports and exports being transported by sea, according to Freight Right Global Logistics Chief Executive Officer and Founder Robert Khachatryan.
Burkina Faso, Mali and Niger hint at a new west African currency: what it’ll take for it to succeed (The Conversation)
On 11 February 2024, the head of Niger’s ruling military junta, General Abdourahmane Tiani, spoke of the possible creation of a common currency with Burkina Faso and Mali. “The currency is a first step toward breaking free from the legacy of colonisation,” he said on national TV, referring to the CFA franc inherited from French colonisation.
Thierno Thioune, an expert on monetary policies and unions between west African states, analyses the potential implications and feasibility of launching a new currency for the AES member countries.
First, macroeconomic and budgetary policies must be closely coordinated. Rigorous harmonisation of economic and budgetary policies between participating countries is imperative to guarantee the stability of the currency’s value and prevent trade imbalances. This will help maintain the confidence of economic players and promote regional growth.
Third, creating an integrated common market is vital. The unrestricted flow of goods, services, capital and labour is key to driving economic growth and enhancing regional cooperation. The current framework provided by the West African Economic and Monetary Union offers a significant advantage in this regard.
Create conducive environment for women under AfCFTA - GNCCI to government (Graphic)
The Ghana National Chamber of Commerce and Industry (GNCCI) has called on the government and other relevant organisations to create a conducive environment for women and youth businesses to thrive under the African Continental Free Trade Area (AfCFTA).
The National Treasurer of GNCCI, Dr Emelia Assiakwa, said women entrepreneurs and traders dominated the private sector, with approximately 44 per cent of micro, small, and medium enterprises (MSMEs) in Ghana being owned by them. In spite of this, she indicated that women still encountered many challenges such as trade facilities, inadequate capital and production resources.
African countries strategise to boost diamond trade (Tanzania Daily News)
The African Diamond Producers Association (ADPA) member states have deliberated on strategies to augment the worth of rough diamonds and collaborate in the mineral markets rather than depending solely on markets beyond Africa. The agenda has been considered during the Council of Ministers’ 9th African Diamond Producers Association (ADPA) ordinary meeting, which started on Tuesday and is scheduled to end today in Zimbabwe.
Opening the meeting, Mines and Mining Development Minister, Zhemu Soda, who chairs ADPA on behalf of Zimbabwe, said: “We have had challenges during our time, as you might be aware; that is, when the G7 countries intended to come up with their protocol on how diamonds are to be segregated and how they will be traded or marketed, which was opposed to what they had been obtaining previously.
The 9th African Diamond Producers Association (ADPA) ordinary meeting of the Council of Ministers has begun amid calls for member states to harmonise diamond policies and enhance the sharing of ideas to realise value from the natural resource.
GITEX Africa 2024 to unveil new digital economy blueprint (The Exchange)
This year, thousands of investors and entrepreneurs are converging in Marrakech, Morocco, for GITEX Africa, a signature tech and start-up expo that is poised to define the next phase of the continent’s digital economy. The show, now in its second edition, comes under the Patronage of His Majesty King Mohammed VI of the Kingdom of Morocco. GITEX Africa, which is scheduled from 29-31 May 2024, is organised under the authority of the Moroccan Ministry of Digital Transition and Administration Reform and hosted by the Digital Development Agency (ADD).
When Dr Ghita Mezzour, the Moroccan Minister of Digital Transition met with organisers in Morocco, he said: “The success of the 1st edition of GITEX Africa Morocco highlights our continent’s enthusiastic embrace of the digital revolution and Morocco’s commitment to strengthen South-South cooperation in the digital field, as well as its contribution to the international promotion of the African continent in accordance with the High Royal Vision of His Majesty King Mohammed VI, may God assist Him.”
“The global community is experiencing the growing energy, curiosity and demand for digital advancement from Africa which is outpacing that of matured developed continents,” explains Trixie LohMirmand, CEO of KAOUN International, organiser of GITEX Africa and World Future Health Africa. Trixie adds: “This sequel of GITEX Africa this year follows the upbeat trend of tech discovery we created last year in its inaugural edition.
South Africa’s VP wants urgency to grow Africa’s digital economy (ITWeb Africa)
South African Deputy President Paul Mashatile has urged policymakers to lay the groundwork for Africa’s digital economy. This, he said, entails enhancing digital infrastructure, digital skills, cybersecurity capabilities, and affordable and accessible data. Mashatile was a keynote speaker at the Global Entrepreneurship Congress Africa (GEC+Africa) in Cape Town, South Africa.
“We need to do more to implement the African Union’s Digital Transformation Agenda, adopted at its Summit of Heads of State in February 2019. We must ensure that by 2030, every individual, business, and government on the continent will be digitally enabled and ready to support a growing digital economy,” he said. According to Mashatile, “Africa is a continent overflowing with untapped potential, a hub of innovation and invention waiting to be re-awakened.”
Sixth Africa Climate Resilient Investment Summit (ACRIS VI) (UNECA)
The Sixth Africa Climate Resilient Investment Summit (ACRIS VI) ends today in Kigali Rwanda. ACRIS is a flagship event of the Africa Climate Resilient Investment Facility (AFRI-RES) – a joint initiative of the Economic Commission for Africa, the African Union Commission, and the World Bank with initial funding support from the Nordic Development Fund (NDF). AFRI-RES supports African countries and infrastructure project developers with tools and capacities for integrating climate resilience in investments in key sectors, including agriculture, energy, water, transport, cities and ecosystems.
ACRIS VI, under the theme of ‘Advancing Adaptation in Africa’, brought together stakeholders from governments, international organizations, the private sector, civil society, and academia to discuss strategies and opportunities for investing in climate-resilient infrastructure in key sector.
In her opening remarks, Dr Claudine Uwera, Minister of State for the Environment in the Ministry of Environment of Rwanda in her welcome and opening remarks stressed that “…to effectively address the negative impacts of climate change now and in the future, climate change adaptation strategies need to be integrated into wider national policies and planning processes – adaptation cannot stand in isolation, and climate resilience would not be achieved with only good policies and financial investments but also effective collaborations, knowledge and experience sharing and a strong collective commitment to action”.
Kenya: Global Conference Opens to Promote Food Safety (teleSUR)
On Tuesday, a five-day global conference to promote food safety around the world opened in the Kenyan capital of Nairobi. The 54th Session of the Codex Committee on Food Hygiene brought together more than 200 participants, including representatives of the World Health Organization (WHO) and the Food and Agriculture Organization of the United Nations (FAO), as well as senior government officials, to review ways to eliminate foodborne disease hazards.
In his opening remarks, Mithika Linturi, Kenya’s cabinet secretary for the Ministry of Agriculture and Livestock Development, said food safety is key to achieving several of the United Nations Sustainable Development Goals, including zero hunger, health and well-being, clean water and sanitation, and responsible production. “Without food safety, the Sustainable Development Goals will not be met,” Linturi said, calling for sustained investment in regulatory frameworks, laboratory capabilities and monitoring systems in order to enhance food safety.
Reduce Resource Use Growth While Growing Economy: UNEP Report (IISD)
The UN Environment Programme’s (UNEP) International Resource Panel (IRP) has published the second edition of its Global Resources Outlook. The report argues that for the 2030 Agenda for Sustainable Development to succeed, better resource management is essential, and provides recommendations to “bend the trend” on material extraction and use.
Themed, ‘Bend the Trend: Pathways to a Liveable Planet as Resource Use Spikes,’ Global Resources Outlook 2024 warns that material use has tripled over the last 50 years and continues to increase, driving the triple planetary crisis of climate change, biodiversity loss, and pollution. With resource use projected to go up 60% from 2020 levels by 2060, unsustainable levels of production and consumption could derail efforts to achieve much of the 2030 Agenda.
According to Global Resources Outlook 2024, high-income countries use six times more materials and generate ten times more climate impacts than low-income countries.
New initiative aims to curb the toxic impacts of agriculture (UN Environment)
The governments of Ecuador, India, Kenya, Laos, Philippines, Uruguay, and Vietnam have come together to launch a $379 million initiative to combat pollution from the use of pesticides and plastics in agriculture. Chemicals play a crucial role in farming, with nearly 4 billion tons of pesticides and 12 billion kg of agricultural plastics used every year.
Despite their benefits for food yields, these chemicals pose significant risks to human health and the environment. As many as 11,000 people die from the toxic effects of pesticides annually, and chemical residues can degrade ecosystems, diminishing soil health and farmers’ resilience to climate change. The opening burning of agricultural plastics also contributes to an air pollution crisis that causes one in nine deaths worldwide.
Uneven development progress is leaving the poorest behind, exacerbating inequality, and stoking political polarization on a global scale. The result is a dangerous gridlock that must be urgently tackled through collective action, according to a new report released today by the United Nations Development Programme (UNDP).
The 2023/24 Human Development Report (HDR), titled “Breaking the Gridlock: Reimagining cooperation in a polarized world”, reveals a troubling trend: the rebound in the global Human Development Index (HDI) – a summary measure reflecting a country’s Gross National Income (GNI) per capita, education, and life expectancy – has been partial, incomplete, and unequal.
DDG Ellard & fisheries subsidies negotiations chair share next steps at World Ocean Summit (WTO)
DDG Ellard said: “The WTO’s Fisheries Subsidies Agreement will materially improve the health and sustainability of the world’s fisheries by prohibiting the worst forms of subsidies. I call on WTO members to complete their domestic procedures, allowing the Agreement to take effect and benefit the lives of 260 million people around the globe who depend on fisheries for food, income and employment.”
Seventy-one WTO members have formally accepted the Agreement and a further 39 formal acceptances are needed for the Agreement to come into effect. The Agreement will enter into force upon acceptance of its legal instrument by two-thirds of the membership.
BRICS+ and the Global South Collaboration: Problems and Prospects (Modern Diplomacy)
In recent years, there has been a growing trend towards collaboration among countries in the Global South, with BRICS+ emerging as a key player in this movement. BRICS+, consisting of the original BRICS countries (Brazil, Russia, India, China, and South Africa) and now includes countries such as Argentina, Indonesia, Mexico, South Korea, and Turkey, has the potential to drive significant economic growth and development in the region. However, there are also challenges that must be addressed in order to fully realize the potential benefits of this collaboration.
One of the key problems facing BRICS+ and the Global South collaboration is the diversity of the countries involved. While this diversity can be a source of strength, it can also create challenges in terms of aligning priorities and interests. Differences in political systems, economic structures, and cultural norms can make it difficult for countries to work together effectively. Additionally, the members of BRICS+ vary significantly in terms of their level of economic development and political influence, which can further complicate efforts to create a cohesive alliance.
Another challenge facing BRICS+ is the unequal distribution of power within the group. Despite these challenges, there are also many reasons to be optimistic about the prospects for BRICS+ and the Global South collaboration. By pooling their resources and expertise, these countries have the potential to drive economic growth, promote innovation, and address shared challenges.
BRICS+: Membership Would Serve Nigeria Well - Prof. Ijoma (TV360 Nigeria)
BRICS building bloc in Africa (ALB)
Quick links
Unleashing the Power of Intra-African Trade: A Path to Prosperity for West Africa (CNBC Africa)
What to expect at the 2024 global inclusive growth summit 107242 (Devex)
Op-ed: Africa’s agency in a time of governance disillusionment (UNDP)
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Scorching heat raises SA food inflation risk (The Herald)
Dryer and hotter-than-usual weather across South Africa’s main summer crop growing regions is hurting the outlook for the key corn harvest and raising risks for higher food-price inflation, according to a farm-industry group. “The major risks to consumer food inflation in South Africa in 2024 will primarily be white maize products,” Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa said. “We see upside risks in maize prices and grain products in the consumer food inflation basket.”
The South African central bank is closely watching food prices as it assesses if it can safely start lowering interest rates later this year. It has repeatedly flagged the risk that El Niño-induced weather patterns may have on inflation.
“While farmers have managed to expand planting areas relative to the previous season, yields are expected to be poor and suffer from heat damage and a lack of rainfall,” Sihlobo said.
Kenya dairy imports from Uganda nearly triples to $210m (The East African)
Kenya’s dairy imports from Uganda nearly tripled in the year to June 2023, driven by increased production in the East African neighbour as well as a growth in demand from processors in Kenya. The dairy products include butter, cheese, ghee, ultra-heat-treated (UHT) milk, yoghurt, and milk powder.
Data from the Uganda Dairy Development Authority (DDA), which is the regulator of the dairy sub-sector, shows the country exported dairy worth Ush810.56 billion (Ksh29.2 billion - $210.83 million) to Kenya during the period. This translates to 83 percent of the total dairy products sold by Uganda during the period, cementing Kenya’s position as the country’s largest dairy market by far.
“Dairy exports have been increasing over time except for the financial year 2020/21 which showed a drop due to the Covid-19 pandemic, however, in the last financial year 2022/23 there was a sharp increase in the value of exports by about 158 percent,” said DDA. The jump in dairy imports from Uganda comes despite the restrictions that Kenya has put on the importation of some dairy products from its neighbour.
Rwanda, Tanzania commit to stronger trade, energy ties (The New Times)
Rwanda’s Minister of Foreign Affairs and International Cooperation, Vincent Biruta, and his Tanzanian counterpart, January Makamba, committed to boosting the two countries’ bilateral ties in various sectors including trade, energy and infrastructure.
The two ministers made the commitment in Kigali on Tuesday, March 12 during a press briefing that followed bilateral engagement between their delegations. Makamba, who is in Rwanda for a four-day working visit, said Tanzania would “continue to make it easier for Rwanda to use the port of Dar es Salam for its international trade.”
Mozambique lays down legislation to govern revenue from natural-gas exports (Engineering News)
Mozambique’s council of ministers approved a decree for the nation’s new sovereign wealth fund legislation, governing how one of the world’s poorest nations spends earnings from an estimated $91.7-billion in natural-gas exports in the coming decades.
Introducing the law was a key part of an economic program with the International Monetary Fund. It’s an important step in improving governance in the southeast African nation that got cut off from most international financing in 2016, when the government admitted it had borrowed more than $1-billion that it didn’t disclose to the IMF as required.
The law sees 40% of state revenues from liquefied natural-gas exports going to the fund for the first 15 years, with the rest allocated to the national budget. After that, the money will be split evenly between savings and annual spending.
Mozambique joined the elite club of LNG exporters in 2022, when a 3.4 million ton per year offshore platform sold its first shipment. Still, the nation’s much bigger onshore export projects, which companies including TotalEnergies SE and ExxonMobil Corp. plan, have suffered years-long delays as Islamic State-linked militants carried out a violent campaign in the surrounding province of Cabo Delgado.
Zim trade volume with Africa bulking (The Herald)
Zimbabwe is seeing more trade with African countries whom it had low or non-existent trade before the launch of the African Continental Free Trade Area (AfCFTA). This comes as shipments between Zimbabwe and African countries that hitherto did not have any trade agreements with Harare having started picking up on account of improved access to previously protected markets such as East and West Africa. South Africa is Zimbabwe’s biggest trading partner.
According to the Competition and Tariff Commission (CTC), trade with countries like Nigeria, Ghana, Morocco, and Mauritania is growing, which has been attributed to the AfCFTA.
Last year, the AfCFTA launched the Guided Trade Initiative where eight countries (mainly West and East African countries) are currently participating under Phase 1 of the initiative. Ms Phiri added that the AfCFTA had been instrumental in creating access to larger markets for Zimbabwean goods as well as cheaper sources of raw materials. The bulk of the imports are raw materials, which reduces costs for the local industry.
“We can get raw materials, which our industries will beneficiate before selling to the export market and fetch more foreign currency,” she said, emphasising other benefits such as ease of doing business, greater business and trade opportunities as well as increased economic growth. “Previously protected sectors will have their tariffs reduced, for example, textiles 40 percent . . . meaning goods that previously were not able to enter the domestic market can do so as long as they meet the Rules of Origin,” she informed.
Zambia To Spearhead Regional Connectivity With The 3rd Land-Linked Conference And Exhibition (Railways Africa)
In an ambitious move to enhance regional trade and mobility, the Zambian Ministry of Transport and Logistics in conjunction with the Zambia Development Agency and industry stakeholders is set to host the third iteration of the Land-linked Zambia (LLZ) Conference and Exhibition. This key event, slated for the 4th and 5th of April 2024 in Lusaka, aims to foster dialogue and collaboration among Southern African Development Community (SADC) member countries in the advent of the African Continental Free Trade Area Agreement (AfCFTA).
This annual event comes on the backdrop of the recently held Lobito Corridor Private Sector Investor Forum in Lusaka and will host other port authorities from the SADC region including Beira, Dar es Salaam, Nacala, Walvis Bay, and Durban.
With the theme “Connecting Zambia and SADC by Land to Facilitate Trade, Investments, and Ease of Movement of Goods and People,” LLZ 2024 seeks to explore and solidify transport corridors and business partnerships. These efforts are geared towards ensuring seamless movement of goods and services across borders, thereby reinforcing Zambia’s role as a strategic link in the SADC and COMESA corridor networks.
India Africa Trade Council and BDAC Ghana sign MOU to boost business cooperation (Asaase Radio)
BDAC Ghana Limited, an indigenous Ghanaian strategic consulting and advisory company has signed a memorandum of understanding (MOU) with the India Africa Trade Council (IATC) to strengthen business relations between the two entities and to develop reciprocal cooperation between India and Ghana through BDAC Ghana Limited.
The MOU was signed in Accra on Monday, 11 March 2024 at the end of a working visit of a 12-member IATC delegation to Ghana. The new IATC and BDAC partnership will, among other things, seek to identify avenues of business opportunities in various sectors of the Ghanaian economy and that of the rest of Africa, to facilitate the exploration of the opportunities by their (IATC and BDAC) respective clients.
Report to facilitate innovation exchange and trade between UK-Africa launched (The Business & Financial Times)
A new report to guide the formation and implementation of the proposed UK-Africa Innovation Trust Corridor (ITC) to facilitate the transparent, secure and demonstrable exchange of research and innovation outputs between the United Kingdom and its African Commonwealth nations has been launched in Accra. The report, titled ‘Research-Based Evidence to Support the Formation of the Proposed UK-Ghana Innovation Trust Corridor (ITC)’, was unveiled at the maiden Africa Research and Innovation Commercialization Summit (ARICS 2024), held in Accra.
The UK-Africa Innovation Trust Corridor establishes the infrastructure and protocols for innovation co-creation, innovation trade, protecting intellectual property rights, knowledge transfer, and shared operational standards. It will also foster a robust regime for research and innovation commercialisation within and across nations in the commonwealth, with the United Kingdom being the initial anchor region.
Another report launched concurrently with the ITC was the Trajectorial Discovery of Ghana’s Innovation and Value Chain Map (IMVCM), which explored and mapped Ghana’s innovation market and value chain.
The IMVCM, co-authored by Mr. Derrydean Dadzie and Dr. Gordon Adomdza, is a tool that helps ecosystem actors understand and improve the innovation landscape and market in Ghana. It outlines the journey from research intent to market through utilisation to disposal. The report recommended effective coordination among supporting entities to ensure the relevance and sustainability of research and innovation activities in Ghana. It also suggested that transforming research into marketable products would require addressing funding and resource constraints.
Nigeria reopens land, air borders with Niger, lifts other sanctions (Premium Times)
Nigeria’s President Bola Tinubu has ordered the lifting of all sanctions imposed on neighbouring Niger following the coup there. Mr Tinubu gave the order on Wednesday following a decision by ECOWAS leaders to lift all sanctions on Niger, Mali and Guinea, three West African countries currently led by putschists.
According to a statement by his spokesperson, Ajuri Ngelale, President Tinubu “directed the opening of Nigeria’s land and air borders with the Republic of Niger and the lifting of other sanctions against the country with immediate effect.” ECOWAS leaders last month met in Abuja where they resolved to lift all the sanctions imposed on the three countries and continue to engage in dialogue with the putschists.
Nigeria secures $1.3bn funding for rail link to Niger (The East African)
Nigeria has secured $1.3 billion in funding to complete a railway project connecting Kano, the largest city in the north, to Maradi in neighbouring Niger, the Transport Ministry said on Wednesday. The railway line will build on existing economic and social ties to boost trade and cultural cooperation between the two countries. Funding will come from a consortium led by the China Civil Engineering Construction Company (CCECC), which will contribute 85 percent of the total, the Transport Ministry said in a statement.
The remaining 15 percent will be covered by the Nigerian government alongside institutions like the Africa Export-Import Bank and African Development Bank (AfDB).”The securing of $1.3 billion signifies a monumental step forward in the completion of this critical infrastructure,” Transport Ministry spokesperson Jamilu Ja’afaru said.
Africa imports 70-80% of its drugs, losing $2.6tn yearly due to ill-health - AfDB chief (The North Africa Post)
Africa imports between 70 and 80% of its medicines, according to Akinwumi Adesina, the President of the African Development Bank (AfDB), who also warned that the continent suffers an annual loss of $2.6 trillion yearly due to lack of productivity caused by ill-health.
Speaking at a recent ceremony in Lagos where he was honored with the Obafemi Awolowo Prize for Leadership, the AfDB boss said that “Africa loses today, $2.6 trillion in lack of productivity, due to illnesses and diseases.” He also recounted how the Covid-19 pandemic exposed Africa’s weakness in the area of healthcare as the continent was caught unprepared, unprotected and left at the bottom of the ladder when it came to the distribution of vaccines. “What is not acceptable or sustainable is that today, Africa imports 70 to 80% of its medicines and produces only one per cent of its vaccines. The health security of 1.4 billion people in Africa must not be subjugated or subjected to the generosity of others.”
He then outlined several initiatives introduced by the AfDB to address Africa’s health challenges, which include a $10 billion facility to assist countries in managing the pandemic and a $3 billion program aimed at revitalizing Africa’s pharmaceutical industries. Another initiative is the recent establishment of the African Pharmaceutical Technology Foundation that aims to support access to proprietary technologies from global pharmaceutical companies. It is part of the effort by African health leaders to increase the manufacturing of pharmaceutical products on the continent, as all attempts to increase technology transfers haven’t gained much traction.
Related:
Regional parliament petitioned over inadequate healthcare in EAC (The New Times)
Mid-Term Review of the Multi-Sectoral Nutrition Action Plan (MNAP) 2018-2025 (AfDB)
One-Stop Border Post At Isebania-Sirare Border To Enhance EAC Integration (Kenya News Agency)
The European Union (EU) Ambassador, Mrs Henriette Geiger, has said that the EU-funded One- Stop- Border- Post at Isebania-Sirare towns along the Kenya-Tanzania Borders, will ease trade among the East Africa Community (EAC) Member States.
Geiger who paid a courtesy call to the Migori Governor, Ochilo Ayacko, Tuesday, accompanied by the Austria, Germany, Sweden and Poland Ambassadors to Kenya, encouraged the East Africa Community to emulate the European Union bloc, to strengthen the economic aspect of individual counties, to foster peace, unity and enhance free trade and movement of EAC people.
Geiger added that the free trade and economic partnership agreements between the European Union and Kenya, will enhance the trade through the duty-free access to goods and services, between Kenya and the EU.
SADC financial prospect hindered by strict visa and flying rules (Travel And Tour World)
Difficult flying rules, strict necessities of visa along with an absence of cross-industry teamwork are hindering the Southern African Development Community’s (SADC) financial prospect. This was the categorical note from aviation specialists at the latest Southern African Industrialization Forum (SAIF) which happened in Sandton.
Natalia Rosa, the head of SADC Business Council Tourism Alliance said that they can exchange dialogue regarding a free trade zone and provincial incorporation, but if people and goods can’t move capably, it’s all just meaningless assurances. She said that the present state of flying in SADC is a colossal own objective for their economies.
Panelists stressed on threats that airlines, stakeholders and tourists face within the region: Governing blockages, Visa limitations, and Restricted cooperation.
SADC launches Approved Natural Resources and Wildlife Frameworks (SADC)
In a groundbreaking workshop held on 13 March, 2024 in Johannesburg, South Africa, the Southern African Development Community (SADC) launched its approved Natural Resources and Wildlife Frameworks, setting the stage for collaborative implementation in the region.
The SADC Deputy Executive Secretary for Regional Integration, Ms. Angele Makombo N’tumba highlighted the significance of the frameworks aligned with the SADC vision, focusing on key pillars of the Regional Indicative Strategic Development Plan. High-level policies, including protocols on Wildlife Conservation and Law Enforcement, guide strategies for regional cooperation on sustainable utilisation of natural resources and effective protection of the environment.
Emphasizing regional integration as a necessity in conservation, the Deputy Executive Secretary called for a shared commitment to addressing challenges collectively in the region. Key strategies approved in June 2023, such as the Law Enforcement and Anti-Poaching (LEAP) Strategy, Wildlife Based Economy (WBE) Strategy Framework, Transfrontier Conservation Area (TFCA) Programme, Multilateral Environmental (MEA) Guidelines, SADC CITES Engagement Strategy, provide blueprints for reducing wildlife crime, intertwining economic prosperity with preservation, and advocating for sustainable resource use.
Eliminate red tape to make it easier for African entrepreneurs to do business (SAnews)
Deputy President Paul Mashatile has called for the elimination of red tape to facilitate cross-border trade for African entrepreneurs. “Countries on our continent typically perform poorly in various categories related to corporate performance and competitiveness due to an unfriendly environment, particularly in terms of intra-continental trade,” the Deputy President said on Wednesday.
This is the reason he believes that countries should take advantage of the African Continental Free Trade Area (AfCFTA) agreement, which seeks to eliminate barriers to trade in Africa.
The country’s second-in-command was delivering a keynote address at the Global Entrepreneurship Congress (GEC+ Africa) at the Cape Town International Convention Centre. “As policymakers, we have to create an enabling environment for our entrepreneurs,” Mashatile said.
South Africa, like the rest of the continent, according to the Deputy President, needs to be strategic in increasing its competitiveness in higher-productivity trade-able commodities and services, as well as in becoming ready for a digital and environmentally friendly future. “We must recognise that there is a link between the environment, economy, and agriculture. All economic activities either affect or are affected by natural and environmental resources.”
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank. These opportunities would ease the pressure to import goods from the rest of the world, says Philip Myburgh, Executive Head of Trade and Africa-China, Business and Commercial Clients at the Standard Bank Group.
The 4th Global Conference of The World Banana Forum (WBF), hosted by the Food and Agriculture Organization of the United Nations (FAO), opened at FAO headquarters today to discuss an array of challenges faced by banana producers, including the impacts of the climate crisis, high energy and fertilizer costs, and the spread of the destructive Fusarium wilt Tropical Race 4 (TR4) disease.
In his opening remarks to the WBF, FAO Director-General QU Dongyu highlighted the importance of banana in several aspects: “Bananas are among the most produced, traded and consumed fruits globally, with more than 1000 varieties produced worldwide they provide vital nutrients to many populations.” Qu noted that the banana sector is particularly significant in some of the least developed and low-income food-deficit countries, where it contributes not only to household food security as a staple, but also to job creation and income generation as a cash crop. The Director-General also highlighted that he hoped that the conference would benefit smallholders the most as they continue to be a priority.
UN chief calls for global action to defend women’s rights amid disturbing trends (UN News)
Addressing the opening of the Commission on the Status of Women (CSW), the pivotal forum dedicated to promoting and safeguarding the rights of women and girls worldwide, Secretary-General António Guterres stressed the disproportionate impact of wars on women. “In conflict zones around the globe, women and girls are suffering most from wars waged by men,” he said, urging immediate ceasefires and humanitarian aid.
Secretary-General Guterres stressed that despite evidence that women’s full participation makes peacebuilding much more effective, the number of women in decision-making roles is falling. “The facts are clear: Women lead to peace,” he said, calling for more funding and new policies to boost women’s participation and investment in women peacebuilders.
The UN chief also emphasized a growing digital gender divide, noting the dominance of men in digital technologies, particularly in Artificial Intelligence. He warned that male-dominated algorithms could perpetuate inequalities into various aspects of life, noting that women’s needs, bodies and fundamental rights are often overlooked in the design of systems by male leaders and technologists.
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G20 GDP Growth - Fourth quarter of 2023, OECD
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SA, Ghana explore ways to expand trade and investment (SAnews)
President Cyril Ramaphosa has emphasised the significance of expanding trade and investment between South Africa and Ghana, highlighting the need to explore avenues for enhancing cooperation beyond the existing areas covered by the Bi-National Commission (BNC). He was delivering opening remarks at the second session of the South Africa-Ghana BNC held at the Department of International Relations and Cooperation’s OR Tambo Building in Pretoria on Tuesday.
“In addition to the many areas of cooperation that the BNC covers, it is important that we explore how best both countries can increase trade and investment among ourselves... The purpose of the Business Forum that will take place on the margins of this BNC is to expand trade and investment between our two countries.
Botswana strengthens Rules of Origin competence through an Advanced Training Workshop (WCO)
The World Customs Organization (WCO) under the framework of the EU-WCO Rules of Origin Africa Programme, funded by the European Union (EU), held an Advanced Training workshop on Rules of Origin in Gaborone, Botswana, from 26 February to 1 March 2024. The workshop benefited the Botswana Unified Revenue Service (BURS) and aimed at enhancing the understanding of preferential rules of origin and regional trade agreements among customs officials from various units and border stations within the Customs Department.
Mr José Angel Marta Becerra, representing the EU Delegation to Botswana and SADC, emphasised the importance of capacity building in rules of origin, highlighting its role in ensuring the efficiency of Customs administrations.
Mrs. Jeanette Chanda Makgolo, Botswana Unified Revenue Commissioner General, noted the timeliness of the advanced rules of origin training, especially considering Botswana's preparations for implementing the AfCFTA trade agreement. She encouraged participants to approach the training with enthusiasm and to share the knowledge gained during the workshop with their colleagues.
The workshop covered critical aspects such as proper origin determination, operational and procedural issues, and the establishment of efficient origin implementation of rules of origin.
China leads global lithium race amid processing plant building boom in Zimbabwe (South China Morning Post)
Beijing currently controls the global lithium-ion battery industry, while it also dominates much of the processing of the mineral. To get the raw materials it needs, China has ramped up its procurement of lithium from Africa and elsewhere amid disquiet from Washington over Beijing’s grip on critical metal supply chains.
That grip got even tighter last year when African exports of lithium, which mostly go to China, rose sharply between August and November. That was when the companies commissioned processing plants for two products – mainly lithium concentrates spodumene and petalite – for export to China for further processing into lithium chemicals to make batteries and other electronics.
At present, Megginson said, the facilities in Zimbabwe are producing spodumene or petalite concentrate which, while not completely raw products, still require further refining. This process, also referred to as beneficiation, then turns the concentrate into chemicals that can be used in the production of lithium-ion batteries.
“For these projects, this further processing is currently happening entirely in China, though there is strong political momentum – not only in Zimbabwe – towards encouraging more of this refining capacity to take place in the country of extraction,” Megginson said. “This is to capture more of the added value of this step in the process domestically.”
Egypt-Kenya trade ties: CIB pledges support to traders (The Exchange Africa)
Lender Commercial International Bank (CIB) has identified partnerships as key drivers of growth that will power investments by bringing together businesses seeking to explore Egypt-Kenya trade opportunities. Kenya’s Prime Cabinet Secretary Musalia Mudavadi says the entry of CIB into Kenya’s market is a major win for Africa’s quest to enhance trade among its 54 member states.
Speaking at the Egypt-Kenya trade forum in Nairobi attended by roughly 40 Egyptian companies drawn from construction, transport, water, tourism, manufacturing and healthcare sectors, Mudavadi said Kenya was at the forefront of opening its market to African countries to boost intra-Africa trade.
“Over the past two years, we have played a great role in funding trade and investment opportunities for Egyptian companies doing business with Kenya. Since we now have a solid footprint in Kenya, we have provided a seamless platform for the businesses to unlock growth opportunities and we see that we can play an integral role in doing the same for Kenyan companies doing business with Egypt,” said Daphne Maina, the Acting CEO of CIB Kenya.
Tanzania Can Unlock Important Economic Benefits by Accelerating Health and Fertility Improvements (World Bank)
Tanzania has made important strides in reducing infant and child mortality, but the authorities must act quickly to capitalize on this progress and accelerate efforts to reduce fertility rates in order to unlock the full potential of a demographic dividend, according to a new World Bank report. The latest 20th Tanzania Economic Update explores the country’s progress towards attaining a demographic dividend, which refers to how improved health and reduced fertility can drive economic growth.
The report titled, ‘Overcoming Demographic Challenges while Embracing Opportunities’, shows that while Tanzania has seen a rapid drop in infant and child mortality over several decades, there has been only a minimal decline in fertility. As a result, the population growth rate remains high, at three percent. At this rate, the population will double in 23 years, increasing demand for social services outstripping the economy’s capacity to provide essential services, such as health and education, and create jobs.
On Tanzania’s economic outlook, the Update shows the economy has been resilient, growing by 5.2 percent in 2023, compared to 4.6 percent in 2022. The services sector remained the main driving force behind Tanzania’s overall economic growth, expanding by 7.3 percent, supported by buoyant economic activities in financial and insurance, transport and storage, and trade and repair subsectors. Despite recurrent droughts and floods, the agriculture sector grew at 3.4 percent in 2023.
Tanzanian Shippers Choose Mombasa Port Over Dar Inefficiencies (Business Day Africa)
The Port of Mombasa is capitalising on inefficiencies at the Port of Dar es Salaam as shipping companies opt for the expeditious and cost-effective route through Kenya. Last week, the MV Jolly Giada arrived at the Port of Mombasa, unloading 2,000 Tonne Equivalent Units (TEUs) at the harbour. Notably, 35 percent of this cargo, totaling 700 containers, constituted transit cargo destined for Dar es Salaam.
Dar es Salaam Port has grappled with a substantial backlog, imposing elevated costs on shippers through demurrage payments. The Kenya Ports Authority reported a surge in initial calls to the Port of Mombasa, attributing the growth to operational efficiency enhancements that have significantly reduced ship waiting times.
“Mombasa has observed a rise in the number of initial calls to the port, with the growth credited to operational efficiency improvements that have led to decreased ship waiting times,” said Kenya Ports Authority. Key metrics affirm the port’s increased competitiveness. The turnaround time for container vessels dropped from an average of three days in 2022 to two days in 2023. Furthermore, the average container dwell time decreased to 3.5 days from 3.9 days in 2022, marking a 10 percent improvement.
The Port of Mombasa is experiencing a notable influx of transit cargo, primarily from landlocked countries diverting to Kenya due to quicker turnaround times in clearance processes, exacerbated by inefficiencies at the Port of Dar es Salaam.
Tehran, Dodoma finalize draft of double taxation avoidance agreement (Tehran Times)
Iranian and Tanzanian tax officials have signed the draft of an agreement to eliminate double taxation on income taxes and prevent tax evasion with the presence of the ambassador of the Islamic Republic of Iran in Tanzania, IRNA reported on Tuesday. As reported, the draft was signed by Hossein Abdollahi, director general of the Legal Office and Tax Contracts of the Islamic Republic of Iran, and William M. Moja, the acting commissioner of the policy analysis department of the Ministry of Finance of Tanzania. According to Abdollahi, the two sides have so far held three rounds of negotiations to prepare the mentioned agreement for signing.
This agreement has various goals such as the elimination of double taxation in the two countries, the attraction of direct investment, further development of economic relations and expansion of tax cooperation between the two countries, exchange of information to promote transparency in the tax behavior of the parties, assistance in tax collection, and the provision of facilities, the official explained.
Nigeria’s trade with African countries yet to reach pre-COVID-19 levels despite AfCFTA (Nairametrics)
Nigeria’s trade with African countries has yet to reach pre-COVID-19 levels despite implementing the African Continental Free Trade Area (AfCFTA) agreement in 2021. Data from the latest foreign trade report of the National Bureau of Statistics (NBS) reveals a slow recovery in Nigeria’s trade with other African nations. Although there has been a progressive trend from the pandemic slump, the trade volumes have yet to eclipse the pre-COVID-19 zenith, casting a shadow on the effectiveness of the AfCFTA agreement in catalysing a robust trade recovery.
A breakdown analysis shows that in 2019, the import trade figure was N1.11 trillion, while exports soared at N3.92 trillion, cumulating a total trade of N5.03 trillion. This period represents a high-water mark for Nigerian trade within the continent, according to data presented by the NBS. However, the advent of 2020 and the ensuing global pandemic inflicted a pronounced disruption, manifested by a steep contraction in trade. Import values plummeted to N406.88 billion—a stark contrast to the previous year.
While less affected, exports still declined to N2.37 trillion, bringing the total trade down to N2.78 trillion, signalling a retreat in economic interactions and a disruption of supply chains across the continent.
Region’s private sector moot plan to grow intra-EAC trade (The Standard)
The Namanga border between Kenya and Tanzania is one of the key areas that a team from the East African Business Council (EABC) and the East African Community (EAC) plans to visit next month. The visit is aimed at determining the extent of the challenges affecting cross-border trade in the region. The visit, which will be done by a Technical Working Group already in place, forms part of the intense lobbying by EABC to remove barriers hindering cross-border trade.
EABC also wants designated checkpoints for goods originating from partner States as the lobby body seeks to boost intra-regional trade to 40 per cent. EABC is the apex umbrella body for the private sector in the EAC. The Technical Working Group formed between EABC and EAC is in Nairobi for two days to deliberate trade policy issues and proposals which should inform EABC Policy Advocacy Priorities for 2024/25.
COMESA Leads Regional Energy Regulatory Harmonization for Enhanced Access and Trade
Harmonization of regional energy regulatory frameworks is now a priority for the regional economic communities towards improving reliable and affordable energy access. Towards this goal, the Common Market for Eastern and Southern Africa (COMESA) is leading the implementation of a $1.5m African Development Bank (AfDB) funded Project on Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in the COMESA region. The project aims to promote cross-border power trading by advancing intra-regional harmonization of electricity regulations in the region.
West Africa not producing enough palm oil to meet its needs – ECOWAS official (Daily Trust)
ECOWAS Commission’s Director of Customs, Union and Taxation, Salifou Tiemtore, has lamented that West African countries are not producing enough palm oil to meet members’ needs. He disclosed this while speaking to journalists on the sideline of the meeting on the free movement of palm oil under the ECOWAS preferential tariff regime – ECOWAS Trade Liberalization Scheme (ETLS), in Abuja on Tuesday.
“If you take a country like Nigeria, it has the capacity to double its production in terms of palm oil but we need to put in place some incentives so that through ECOWAS ETLS Nigeria can cover the Nigerian market and also go beyond the Nigerian market.” He said the region has the potential to meet the needs of member states if support were given to entrepreneurs to expand production and take advantage of the ECOWAS ETLS.
Regional meeting on ECOWAS draft Report on the State of the Environment Climate and perspectives (ECOWAS)
The Department of Economic Affairs and Agriculture, through the Directorate of Environment and Natural Resources, organized the regional meeting on the draft report on the State of the Environment, Climate and prospects for ECOWAS, from March 5 to 7, 2024 in Abuja, Nigeria . The meeting brought together representatives of Member States, representatives of regional and international institutions (UEMOA, IUCN, WASCAL), the ECOWAS Staff and two external consultants.
The main objective of the meeting was to examine the draft ECOWAS report on the state of the environment, climate and regional perspectives in order to collect observations and contributions from experts in order to substantially improve the said report. .
The draft ECOWAS Environment and Climate Report constitutes an important first attempt to provide Member States with relevant data and information on the environmental and climate status and trends of the region as well as political and operational recommendations. The draft report covers the following environmental thematic areas: i) Climate change and air quality; ii) Land; iii) Biodiversity and ecosystems; iv) Fresh waters; v) Marine and coastal environment; vi) Human settlements; vii) Waste.
African countries should put an end to resource backed loans (Nairametrics)
The African Development Bank’s President, Akinwunmi Adesina is advocating for an end to the practice of offering loans in return for access to Africa’s abundant oil reserves and vital minerals, which are essential for producing smartphones and electric car batteries. These transactions he said have facilitated China’s dominance in the mineral extraction sector in regions such as Congo, leading to financial instability in several African nations in an interview with AP.
He pointed out that the negotiations often favour the lenders, who wield more power and set the terms for financially constrained African countries. This imbalance, along with limited transparency and opportunities for corruption, paves the way for exploitation.
Regional workshop highlights the importance of efficient transit regimes for LLDCs (WCO)
From 26 to 29 February 2024 the World Customs Organization (WCO) delivered a Regional Workshop on transit interconnectivity and the use of regional transit guarantees for the West and Central Africa (WCA) region. The workshop was organized as a WCO pre-conference event to the Third United Nations Conference on Landlocked Developing Countries (LLDCs) that will be held from 18 to 21 June 2024 in Kigali, Rwanda and will adopt a renewed framework for international support to address the special needs of LLDCs.
The first day of the workshop was devoted to discussions on the principle of freedom of transit and the provisions of the relevant international and regional framework including the Agreement on Trade Facilitation of the World Trade Organization (WTO TFA), the Revised Kyoto Convention, the WCO Transit Guidelines, and the Agreement establishing the African Continental Free Trade Area (AfCFTA) among others. This was done based on presentations delivered by the WCO experts and the AfCFTA Secretariat.
Then participants delved into the topic of transit interconnectivity in West Africa. Seven Members of the sub-region (Benin, Burkina Faso, Ghana, Mali, Niger, Nigeria and Togo) presented the status of implementation of the Interconnected System for the Management of Goods in Transit widely known as SIGMAT from the French title Système Interconnecté pour la Gestion des Marchandises en Transit.
The main objective of these sessions was to showcase good practices implemented by Members of the West Africa sub-region, with a view to enabling other Members to benefit from the lessons learnt and to replicate those good practices throughout the region.
Mudavadi seeks European support for Africa’s trade challenges in Copenhagen (The Standard)
Prime Cabinet Secretary Musalia Mudavadi has advocated for a stronger Europe-Africa alliance to drive sustainable development. Speaking in Denmark on Monday, March 11, where he is representing President William Ruto at the High-Level Dialogue meeting in Copenhagen, Mudavadi stressed the need for both regions to unlock their full potential by promoting inclusive growth and fostering cross-sector collaboration.
“Let us remain steadfast in our dedication to cooperation and dialogue, translating our discussions into tangible actions that foster positive change in our societies. Together, we can build stronger partnerships, foster innovation, and create a more prosperous world for future generations,” he said.
‘There’s a $42 billion gender gap for financial inclusion in Africa’ — AUC (Modern Ghana)
The gender gap in access to financial services in Africa is costing the continent an estimated $42 billion each year, according to the African Union Commission (AUC). In an effort to boost women’s economic empowerment, the AUC is stepping up work to close this gap through new initiatives targeting women and youth.
Speaking at the launch of the AUC’s flagship “1 Million Next Level” youth-focused program, Prudence Ngwenya, Director of the AUC’s Women, Gender and Youth Directorate, stressed the need for greater investment in women’s economic capacity and inclusion. “One of the things that have been lacking in terms of investment is capacity and economic empowerment for women. So currently, the gender gap for financial inclusion on the continent is 42 billion US dollars,” Ngwenya said.
‘AfCFTA would be futile if airspace and landing are not free across Africa’ (GhanaWeb)
Professor Kofi Abotsi, the Dean of Law School at the University of Professional Studies (UPSA), has opined that the African Continental Free Trade Area (AfCFTA) would be inefficient and an illusion if airspace and landing are not made free across Africa.
In a tweet published on his official X page, Professor Abotsi reiterated the exorbitant rates of air travel in Ghana and its negative impact on businesses. He attributed the high cost of air travel in Africa to protectionism, taxes, and fuel costs. According to him, the current state of air travel in Africa would inhibit business travel across Africa. He called for free airspace and landing to be incorporated into AfCFTA.
“Air travel is senselessly expensive and difficult in Africa. And apparently, protectionism, taxes & fuel costs are driving that. The AfCFTA would be a mirage without a free airspace and landing across the continent,” Prof Abotsi’s tweet on the microblogging platform, X formerly known as Twitter read.
DP World’s global freight network grows with 18 new offices in sub-Saharan Africa (Bizcommunity)
Globally, DP World has opened 100 freight forwarding offices and created 1,000 jobs across six continents, as it looks to capitalise on an industry that is projected to reach a global market size of over $215bn by 2029. These offices already employ 1,000 people, adding to DP World’s 108,000-strong team – helping move more than 10% of global trade each year.
Beat Simon, group chief commercial officer of logistics at DP World, says: “Our expansion in freight forwarding complements our end-to-end supply chain solutions and capabilities. Our asset-appropriate approach is a step-change for the freight forwarding industry that puts customers in the driving seat with more visibility and control and gives them the confidence to trade in today’s global market.
“As we continue to grow our freight forwarding footprint, we are building a network that will cover more than 90% of global trade. We are focused on densifying our network as we build a best-in-class, strong and resilient global capability.”
Across sub-Saharan Africa, businesses are choosing to build resilience into their supply chains in the face of growing challenges such as fragmented markets and infrastructure constraints. To support these businesses, DP World is helping clients to overcome customs and trade barriers. By expanding its freight forwarding offering with a focus on air and ocean freight, DP World will deploy its ‘toolbox’ of owned global assets made up of ports, terminals, warehouses, trucks, rail and shipping services to increase control and resilience, whilst also working with complementary partners across the supply chain to boost efficiency.
‘Africa cannot achieve sustainable development without the youth’ — Mustapha Ussif (Modern Ghana)
Speaking at the opening ceremony of the Youth Pavilion organised by the African Union Commission’s Women, Gender and Youth Directorate in Accra on Monday, March 11, the Minister said young people must be at the centre of efforts to realize Africa’s development aspirations. Promotion of an all-inclusive and sustainable development for Africa and the African youth cannot be achieved without the involvement of our future leaders,” Minister Ussif told attendees, which included young leaders from across the continent.
He added that “To achieve the Africa we Want, all young persons seated here, should rise to the call through collaborative and shared efforts. All young people should be agents of change and take advantage of the numerous opportunities that exist in the continental and global space.”
How a shipping carbon tax could help Africa build climate resilient trade (African Arguments)
With Africa disproportionately affected by climate change and its impacts worsening other structural deficiencies, climate-resilient development is urgent. African countries are well aware of this and are committed to adapting to and mitigating climate change as demonstrated by their Nationally Determined Contributions (NDCs).
The difficulty is that implementing these national climate plans costs around $2.8 trillion between 2020 and 2030 (or about $250 billion a year). African governments can barely cover 10% of this total. At least 77% of the greenhouse gas (GHG) emissions reductions envisaged by African NDCs are conditional on international support. The result has been huge shortfalls in what is needed. In 2020, for instance, annual climate finance flows in Africa – from domestic and international sources – amounted to just 12% of the sum required.
It is in this context that a proposal to tax GHG emissions from the international shipping industry is advancing at the UN’s International Maritime Organization (IMO). The proposed levy comes as climate vulnerable countries call for more global action and has been supported by over 100 countries, from the Global South and North.
Africa is moving towards greater integration as Niamey meeting drives the momentum (AU)
Following the historical context of the African integration process and the progress of African leaders towards achieving a united, integrated and prosperous continent under the Abuja Treaty and Africa’s Agenda 2063 and the ultimate goal to transform its fifty-five (55) economies into a single economic and monetary union, with a common currency and free mobility of capital and labour, the African Union (AU) is convening in Niamey, Niger for the Extraordinary Summit on the African Continental Free Trade Area and the first Mid-Year Coordination meeting of the AU and the Regional Economic Communities (RECs), both purposed at moving the integration agenda forward.
In Niamey, the African Union will also hold an Extraordinary Summit on the African Continental Free Trade Area (AFCFTA) to celebrate the first Anniversary of the Signing of the AfCFTA and to formally launch the operational phase of the African Internal Market which officially entered into force on the 30th of May 2019. More on the AfCFTA event is available at AfCFTA Web Page
The Mid-Year Coordination meeting and the AFCFTA summit will be preceded by a two-day Executive Council meeting. The Executive Council will among other agenda items, consider and adopt the AU Budget for the year 2020. The budget preparation process, before adoption by the Executive Council, involves the oversight role of the Committee of Fifteen Ministers of Finance (F15) tasked with strengthening the financial and budgetary reforms within the Union.
What we learned from the WTO trade meeting in Abu Dhabi (WEF)
Industrial Policy: Trade Policy and World Trade Organization Considerations in IMF Surveillance (IMF)
Maritime trade navigating troubled waters: UNCTAD (BusinessLine)
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Infrastructure finance expert commends incoming amendments to PPP framework (Engineering News)
As government garners public comment on key proposed amendments to legislation governing public-private partnerships (PPPs), Infrastructure Finance Advisory Institute director Bongani Mankewu says the framework reform is the right course of action but needs to be free of “bureaucratic clumsiness”.
PPPs serve as channels for the importation of industrial components, and the government is left with the debt incurred in setting up the special purpose vehicle for the execution of, for example, mega infrastructure projects. Legislation, therefore, must be enacted to support the PPP framework and ensure localization and industrialisation happen.
Mankewu elaborates that, similarly, to ensure the flexibility of negotiations and the effectiveness of project execution, the PPP framework needs to be improved to remove any bureaucratic clumsiness. He believes mega infrastructure projects, which South Africa is in dire need of, need to be insulated from politics. To this end, infrastructure funds, combined with other instruments, offer the most effective insulation against political interference in executive large-scale infrastructure projects.
CEOs in Kenya bank on strong regional trade to raise profits (The East African)
The majority of Chief Executive Officers (CEOs) in Kenya view Tanzania and Uganda as key East African countries in which to grow their revenue, as they seek to make new acquisitions in the new year. A survey by consultancy firm, PricewaterhouseCoopers (PwC) revealed three in ten CEOs see Tanzania (34 per cent) and Uganda (34 per cent) as important markets for their goods and services, a move that aims to increase their margins and enhance intra-EAC trade.
Heightened trade and political tensions between the East African member states threatened to erode the gains of a free market and the dividends of a united bloc for a region expected to achieve the fastest growth across Africa this year.
EAC trade is dominated by agricultural commodities, namely coffee, tobacco, cotton, rice, maize, wheat and tea. Manufactured goods (cement, petroleum, textiles, sugar, confectionery, beer, salt fats and oils, steel and steel products, paper, plastics and pharmaceuticals) are also traded across the region.
IMF Executive Board Concludes 2023 Article IV Consultation with Angola (IMF)
Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock in the first half of the year, as the oil sector weakened, and the debt moratorium ended. Growth is estimated at 0.5 percent for 2023, with an estimated contraction in the oil sector of 6.1 percent and softened non-oil growth at 2.9 percent. Headline inflation increased significantly in 2023, to 20.0 percent y/y at end-December, driven by the depreciation of the kwanza and cuts in fuel subsidy in mid-2023.
Economic growth is projected to recover in the near-term, supported by improved oil production and the recovery in the non-oil sector. Inflation is expected to remain temporarily elevated in 2024 and to gradually decline thereafter, as the effects of the subsidy removal and the pass-through from nominal exchange rate depreciation diminish. Meanwhile, the primary fiscal balance is expected to improve and remain positive given the expected continuation of fuel subsidy reform; lower debt service starting in 2024; and the expected recovery in growth. Downside risks to the near-term outlook include a larger-than-expected decline in global oil prices and/or domestic oil production as well as a delayed implementation of the fuel subsidy reform. Upside risks would mainly stem from higher-than-expected oil prices.
Tinubu directs Nigerian Customs to return seized food items to owners (Premium Times Nigeria)
President Bola Tinubu has directed the Nigeria Customs Service (NCS) to return food items that were confiscated at border communities to owners on the condition that they would be sold in the Nigerian markets to boost food sufficiency. This was disclosed Saturday by the Comptroller General of the NCS, Adewale Adeniyi, during an interface with residents of border communities in Kongolam and Mai’Adua border stations.
Mr Adeniyi hinted that the president has decided to exercise his power “according to the feelings of magnanimity that he has for Nigeria”, contrary to what the law stipulates. “In doing so, he has directed that those food items that were going out of the country that have been seized in various border areas should be returned to the owners on the condition that those goods would be sold in the Nigerian markets,” the official said.
Nigeria’s export doors open to South Africa, Rwanda, Cameroon, and Kenya (Business Insider Africa)
A report seen in the Nigerian newspaper The Punch shows that by April, Nigeria would begin exporting products to some African markets under the Guided Trade Initiative of the African Continental Free Trade Area. The information was disclosed by the National Centre of AfCFTA. While trade with these countries prior to this initiative has been active, these trades have not been formal. The African Continental Free Trade Area is a free trade agreement created by 54 of the 55 African Union states, making it the world’s biggest free trade area by number of participant countries.
“We haven’t started trading in AfCFTA, we are duly going through the protocols. But recently the AfCFTA secretariat itself launched what they call the Guided Trade Initiative to get some countries to start trading outside their regional blocks,” the Executive Secretary, of the National Action Committee on AfCFTA, Olusegun Awolowo, stated.
The Council of Ministers of the Southern African Development Community (SADC) met on 10-11 March 2024 in Luanda, Republic of Angola and deliberated on programmes, policies and interventions aimed at accelerating deeper regional integration, peace and economic development. The Council of Ministers meeting was held under the 43rd SADC Summit Theme, “Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region”.
H.E António reiterated the call made by His Excellency João Manuel Gonçalves Lourenço, President of the Republic of Angola, in his acceptance speech as the SADC Chairperson in August 2023, to expedite the approval and ratification of the agreement to facilitate operationalisation of the SADC Regional Development Fund (RDF), a self-financing and revolving financing mechanism intended to sustainably support the SADC regional development projects.
SADC economic future takes flight - Aviation leaders call for liberalisation of skies (Bizcommunity)
Onerous aviation regulations, stifling visa requirements, and a lack of cross-industry collaboration are hampering the Southern African Development Community’s (SADC) economic potential. This was the resounding message from aviation experts at the recent Southern African Industrialisation Forum (SAIF) held in Sandton. “We can talk about a free trade area and regional integration, but if people and goods can’t move efficiently, it’s all just empty promises,” asserted Natalia Rosa, SADC Business Council Tourism Alliance lead. “The current state of aviation in SADC is a massive goal for our economies.”
The World Trade Organisation (WTO) defines Intellectual Property Rights (IPR) as the rights given to persons over the creations of their minds. IPRs usually give the creator an exclusive right over the use of their product or innovation for a certain period. These can be copyrights and other rights related to copyright or industrial property.
With this in mind, Intellectual Property Rights (IPR) also affect activities along value chains. From pre-production to post-production, IPR determines different aspects of a value chain: Who gets access to the production process, what they produce, the production process, the location of the production, and distribution of the products.
Recognising the importance and implications of IPR on regional value chains, the SIPS programme incorporated IPR technical assistance and capacity building into activities. To date, SIPS has provided technical assistance on IPR to 25 regional private sector stakeholders in the leather value chain, ARV manufacturers, and COVID-19-relevant medical products value chains. The technical assistance ensures that stakeholders get appropriate advice on Intellectual Property Rights (IPR) considerations during product development processes.
Top sectors to watch in East African Community in 2024 (The East African)
East African economies are expected to grow by 5.1 percent in 2024 and 5.7 percent in 2025 buoyed by the service, tourism and transport sectors, according to a new report. The East African Economic Outlook 2024 released by RSM Eastern Africa Consulting Ltd, an audit, tax and consulting firm, shows that the agriculture, manufacturing, financial, and infrastructure sectors grow in Kenya, Tanzania, Rwanda and Uganda.
“The agriculture, forestry, and fishing sector registered 6.7 percent growth in Q3. The improved performance was attributed to favourable weather conditions that characterised the first three-quarters of 2023,” said Ashif Kassam, executive chairman of RSM Eastern Africa. “The service sector in both Kenya and Tanzania has been the driving force of economic growth in the region,” said John Bosco Kalisa, CEO, and the East African Business Council. “Services exports increased to 10.7 billion in 2021 from 8 billion in 2020. A significant increase by 34 percent. EAC services exports are dominated by the travel and other services categories representing more than two-thirds of total trade in services.”
The report which was presented during the EAC CEO Roundtable on Tuesday in Nairobi, says that on the economic outlook, the EAC economy has shown resilience amidst global challenges. Studies by the African Development Bank Report of 2024 point to the EAC as a region with some of the fastest growing economies. However, Kepsa is concerned with the frequent Stay of Application to the EAC Common External Tariff by EAC member states.
State, transporters lock horns over EAC vehicle load rule (The Star)
A row is brewing between transporters, shippers and the government over the implementation of the EAC vehicle load act, which limits the height of vehicles. The government, through the Kenya National Highways Authority (KeNHA) has been enforcing the East African Community Vehicle Load Control Act, 2016, meant for the region.
The Act puts the maximum overall height of vehicles at 4.3 metres, unless it is an abnormal load, which is allowed, subject to the authority granting and exemption permit which gives conditions on times of travel and routes to be followed, to protect public safety and road related infrastructure.
Heavy commercial vehicles hauling containers have been breaching the rule where most 40-foot containers being used are higher than the allowed limit. Most traders prefer to use the 40-foot high cube shipping containers as they give more room to stack goods unlike general shipping units, they offer a little extra height. The regional rule has, however, not been fully enforced as authorities allowed shipping lines and transporters to continue using high cube units.
ECOWAS single currency 2027 deadline unrealistic, says WAMZ boss (Peoples Gazette Nigeria)
The director-general of West African Monetary Zone (WAMZ), Olorunsola Olowofeso, says expectation for an ECOWAS single currency by 2027 is no longer realistic. He spoke against the backdrop of the recently held 48th meeting of the Committee of Governors of the Central Banks of the member-states of the WAMZ in Abuja. According to him, it is unlikely that any of the member-states will satisfy all four primary convergence criteria on a sustainable basis between 2024 and 2026.
“The quest for a single currency by WAMZ will take much longer to achieve as the convergence indicators have declined significantly. The assessment of member states’ performance reveals that, as of the end of June 2023, all member states failed to meet all the four primary convergence criteria. “The zone’s performance score declined to 29.2 per cent, compared to 41.7 per cent during the same period in 2022,” he said.
Sahel-ECOWAS impasse: Experts concerned for trade and security (GhanaWeb)
The stalemate between ECOWAS and the Sahelian countries of Burkina Faso, Mali, and Niger lingers on, causing further apprehension among citizens within and outside of the economic community. Recent efforts by ECOWAS demonstrate some sense of a desire to reconcile, but the question remains: has the bridge been burnt beyond repair or can it be rebuilt?
ECOWAS has lifted sanctions on travel and trade while urging the countries in question to “reconsider their decision to withdraw from ECOWAS, given the benefits that all ECOWAS Member States and their citizens enjoy for being part of the Community,” citing socio-economic, political, security and humanitarian consequences of parting ways. Returning ECOWAS to the fervor of its early years would not be easy; but, regional and security proponents believe it is a worthwhile endeavor.
‘Collaboration, integration critical to growing intra-Africa trade’ (The Guardian Nigeria)
The Chief Executive Officer (CEO), Achile Sime, SL Financial, and Managing Partner of Epena Law, Johanna Monthe, have said that collaboration and integration are critical to growing intra Africa trade, which the continent must be deliberate about.
Speaking at the Francophone Africa Business Summit (FABS) themed “Investing in Francophone Africa: Playbook and Opportunities,” they said eliminating barriers against trade and entrepreneurship are important steps that Africa must take to grow intra trade, stating that it is vital that African countries grow trade among themselves. The summit called for a review of obnoxious policies that inhibit trade, free movement of people within the continent to encourage SMEs, entrepreneurship and trade.
Women in cross-border trade violated (CAJ News Africa)
Women participating in informal cross-border trade (ICBT) within some Southern African countries are bearing the brunt of gender-based violence and economic exploitation. This has impeded women’s ability to exercise their human rights in the context of decent work.
Amnesty International has reported the violations, in a new report that accuses the governments of Malawi, Zambia and Zimbabwe for failing to protect these women. The report, “Cross-border is our livelihood, it is our job” details how women working in ICBT in these countries frequently face physical assault, sexual harassment and intimidation, which is often perpetrated by state officials, including border authorities. Women also face violence from non-state actors.
“The vulnerability of women in informal employment to diverse forms of abuse, combined with restricted access to justice, highlights a glaring gap in state protection,” said Tigere Chagutah, Amnesty International’s Director for East and Southern Africa.
CSW68: African Union Ministerial Consultation Meeting (AU)
The African Union Ministers in charge of Gender and Women’s Affairs will converge for a Consultation Meeting in the sidelines of the Sixty-Eighth session of the Commission on the Status of Women (CSW68), which will take place from 11 to 22 March 2024, at the United Nations Headquarters in New York, USA.
The WGYD of the AU Commission takes part in the annual Sessions of the United Nations Commission on the Status of Women (CSW) to ensure the integration of the Africa Common Position (CAP) on Gender Equality and Women’s Empowerment in global decision-making processes. The priority theme is: Accelerating the achievement of gender equality and the empowerment of all women and girls by addressing poverty and strengthening institutions and financing with a gender perspective.
ECOSOCC holds working session with PAP on the Free movement Protocol (AU)
The African Union Economic, Social and Cultural Council (ECOSOCC) held a joint working session with Pan African Parliament (PAP) on the Continental Free Movement Protocol. The working session brought together Members of Parliament from AU member states serving on the PAP Committee on Trade, Customs and Immigration.
The Protocol was adopted in 2018 by the AU Assembly of Heads of State and Government to be co-implemented alongside the African Continental Free Trade Area (AfCFTA). Despite its critical importance in operationalizing it, only four-member states have ratified the Protocol out of the 15 ratifications needed for it to go into force. ECOSOCC has launched the Parliamentary outreach campaign in partnership with PAP to advocate for the full ratification and domestication of this important Protocol.
Advancing Climate-Smart Agriculture Technologies in Africa (World Bank)
The World Bank Board of Directors today approved an additional $40 million in IDA grants to the Accelerating Impacts of CGIAR Climate Research for Africa project (AICCRA), a significant step towards advancing climate-smart agriculture (CSA) technologies and addressing critical gaps in climate resilience and food security in Ethiopia, Ghana, Kenya, Mali, Senegal, and Zambia.
The new financing, allocated to CGIAR centers through the International Center for Tropical Agriculture (CIAT), will facilitate the validation and dissemination of CSA technologies and methods in the beneficiary countries, which represent various agro-ecological zones vulnerable to the impacts of climate change. With this operation, farmers and livestock keepers will be equipped to predict and prepare for climate-related events more effectively, along with improved access to climate advisories directly connected to actionable response measures. This will enable communities to protect their livelihoods and the environment more successfully.
Irrigation in Africa can boost production by 50 percent (The Exchange Africa)
Irrigation in Africa has the potential to essentially double agricultural productivity, boosting output by up to 50 per cent. This optimistic evaluation is provided by the UN Food and Agriculture Organisation (FAO). However, even with this potential, FAO shares concerns that it is vastly underutilized, with agriculture in Africa remaining predominantly rain-fed. According to FAO data, the area under irrigation in Africa currently makes up just 6 percent of the total cultivated area. “While nearly 40 per cent of the world’s agricultural production comes from irrigated land, the figure for sub-Saharan Africa is only 10 per cent,” FAO laments. In Sub-Saharan Africa, irrigation is a key factor in achieving food security.
US committed to deepening trade ties, investing in SA economy (Daily Maverick)
We recognise a simple truth: economic growth in Africa is good for the global economy, including the American economy. That’s why the United States is committed to deepening trade ties, investing in the South African economy, and fostering people-to-people relationships among our citizens, businesses, and universities. By deepening our trade partnership, rebuilding our infrastructure, and securing reliable energy, South Africa and the United States can unlock the potential of both our citizens and economies.
At the heart of our relationship is the African Growth and Opportunity Act (Agoa), our mutually beneficial economic partnership. South Africa has become America’s largest trading partner in Africa, with over $20-billion of two-way trade of goods. More than 600 American businesses now operate in South Africa. Ford has invested more than $1-billion in producing cars in South Africa, manufacturing companies like General Electric are setting up shop, and financial firms like Visa have also grown their footprint.
Why U.S Govt is investing in the health and wealth of Africa’s livestock (The Independent Uganda)
Corporate Council on Africa Appoints Distinguished Business Leaders to its Board of Directors
Fractures in Global Trade Deepen as WTO Musters Only a Small Win (Bloomberg)
How sustainability and geopolitics shape foreign investment policies (UNCTAD)
UNCTAD’s latest Investment Policy Monitor, published on 29 February, uncovers how policies have evolved globally over the last two decades, when it comes to promoting and regulating outward foreign direct investment (OFDI). The report shows 79% of developed countries, where OFDI traditionally originated, have introduced promotion initiatives, which are increasingly focused on advancing the Sustainable Development Goals (SDGs).
Based on a review of legislation and promotional strategies in 194 economies, the report spotlights a shift “from liberalization to regulation” in countries’ approach to OFDI amid rising geopolitical tensions. Over the past decade, restrictions surged across developed and developing ones alike, in part driven by efforts to comply with anti-money laundering standards, as well as national security interests linked to sensitive economic sectors.
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Patel meets with EV manufacturers, investors during visit to China (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel and a high-level delegation recently completed a four-day working visit to Shanghai, Nanjing and Beijing, in China, during which they met with government officials, investors and a number of Chinese electric vehicle (EV) and battery manufacturers.
China is the world’s leading producer of EVs and batteries and is currently South Africa’s largest trading partner, with bilateral trade estimated at $34-billion in 2022.
The Minister was accompanied by senior staff of the Industrial Development Corporation and the Department of Trade, Industry and Competition (dtic). The visit provided Patel with an opportunity to present the South African automotive value proposition and government policy support to companies looking to invest into the South African automotive industry, particularly in EV manufacturing.
Eswatini, in collaboration with the Economic Commission for Africa (ECA) and the United Nations System has launched the National AfCFTA Implementation Strategy to boost the country’s trade and investment opportunities. It facilitates the identification of regional value chains to maximise value addition benefits and also identifies trade opportunities and constraints, including measures and capacities required to take full advantage of national, regional, and global markets for goods and services within the context of the AfCFTA.
UK Export Finance delegation heralds new trade opportunities for Benin and Togo (GOV.UK)
The CEO of the United Kingdom’s export credit agency has this week visited Togo and Benin, meeting government ministers in both countries to signal UKEF’s readiness to extend up to £4 billion of support for local projects. Last year, the UK’s exports to Togo were worth £287 million whilst its exports to Benin were worth £58 million. UKEF is working to enable British businesses of all sizes to access opportunities in these and in other Francophone West African countries.
Tim Reid, CEO of UK Export Finance, said: Benin and Togo have ambitious plans for infrastructure and development. UK Export Finance is already supporting exciting projects underway like Cotonou Ministerial City and the Sokode-Benin Road. My visit is giving me the opportunity to make it very clear that UK Export Finance is able to do even more, with billions of pounds available to help local buyers access British exports.
Turkey, Somalia announce agreement to explore for oil and gas (Hiiraan Online)
Somalia and Turkey have announced the signing of a deal to explore for oil and gas that further strengthens cooperation between the two countries, according to officials from both countries. Under the agreement signed Thursday in Turkey, the deal is to promote the development of bilateral, scientific, technical and commercial cooperation between Turkey and Somalia in developing the oil and gas of Somalia, according to Somali Petroleum and Mineral Resources Minister Abdirizak Mohamed.
Sudan economy on brink of collapse following nearly a year of war (The East African)
Largely ravaged productive sectors, stagnating exports, severely devalued national currency, and plummeting public revenues. The nearly one year of war in Sudan has pushed the country’s economy to the brink of paralysis. “According to official estimates, there has been a significant contraction of 40 percent in the gross domestic product (GDP),” a prominent feature of the Sudanese economy’s declined performance due to the ongoing war, Abdul-Khaliq Mahjoub, a Sudanese economic analyst, told Xinhua.
Sudan’s agricultural sector, representing more than a third of its GDP, has been severely affected by “the loss of financing and production inputs, including fertilisers, seeds, and fuel,” Abdul-Qadir Abdoun, a member of the Northern Sudan Farmers Union, told Xinhua.
Crossborder Investments Key to Enhancing Intra-Africa Trade (TechTrendsKE)
Prime Cabinet Secretary Musalia Mudavadi has said entry of Commercial International Bank (CIB) into Kenya’s market is a major win for Africa’s quest to enhance trade among its 54 member states. Speaking at the Kenya-Egypt Business Forum in Nairobi attended by 40 Egyptian companies among them construction, transport, water, tourism, manufacturing and healthcare, Mr Mudavadi said Kenya was at the forefront of opening its market to African countries as a boon to intra-Africa trade saying this will generate more jobs for locals as well as help retain more wealth within the country.
“Kenya appreciates the people and the government of Egypt for accepting to have this engagement on Kenya-Egypt cross-border trade on the sidelines of the Joint Commission for Cooperation(JCC). As a government, we will facilitate and give you the necessary support so that trade, commerce and investments can grow and benefit the people in our two countries,” he said.
Trade Pivotal To Nigeria, Africa’s Development (News Agency of Nigeria)
Lennart Oestergaard, Resident Representative Friedrich- Ebert-Stiftung Nigeria Foundation, says trade is pivotal to the development of Nigeria and Africa as a continent. Oestergaard said this at a media briefing on Wednesday in Abuja organised to summarise a Policy Focus Book “How Africa Trades”.
According to Oestergaard, trade is of high importance and should be prioritised if we must achieve the Sustainable Development Goals (SDGs) in Africa. He, therefore, urged the Federal Government to accord priority attention to trade so it could contribute to national development.
AfCFTA: Nigeria sets another date to commence official export to S’ Africa, Cameroon, others in April (Ripples Nigeria)
After serially missing crucial deadlines for joining other nations in trading under the African Continental Free Trade Area (AfCFTA), Nigeria is to begin the formal export of locally produced commodities to South Africa, Rwanda, Cameroon and Kenya from next month under the Guided Trade Initiative (GTI), the Nigerian National Action Committee (NAC) of AfCFTA announced on Thursday.
Again, Nigeria missed the August 2023 trading date for the launch of the second phase of GTI, passing over the opportunity to join countries like Rwanda, Cameroon, Egypt, Ghana, Kenya, Mauritius, Tanzania, and Tunisia, which have already commenced trading under the GTI.
Despite assurances from the NAC that Nigeria would participate in the second phase of GTI by October 2023, the nation once again failed to meet the target. NAC had cited the awaited official launch date from the AfCFTA Secretariat in Accra, Ghana, as the reason for the delay, further exacerbating concerns about Nigeria’s readiness for AfCFTA trading.
AfCFTA Secretariat, African shippers’ councils sign MoU (Graphic)
The Africa Continental Free Trade Area (AfCFTA) Secretariat has signed a memorandum of understanding (MoU) with the Union of African Shippers’ Councils (UASC) to help boost intra-African trade.
Under the agreement, the two parties are to collaborate to remove all bottlenecks affecting transit, trade facilitation, carriage of goods along the entire supply chain and eliminate non-tariff barriers. As a result, the Secretary-General of AfCFTA, Mr Wamkele Mene, signed the agreement on behalf of the secretariat while the President of UASC, Mr Patient Sayiba Tambwe, appended his signature for the union.
Leveraging the designation of the SADC Climate Service Centre as a WMO Regional Climate Centre (SADC)
According to a report released in 2018 by the United Nations Office for Disaster Risk Reduction (UNDRR), climate-related disasters accounted for 91% of all major disasters and 77% of direct economic losses. This shows a 9% increase in climate-related economic losses compared to the period from 1978 to 1998.
The changing climate has impacted various sectors, including water, agriculture, energy, peace and security, and infrastructure, which are fundamental to economic integration. This has led to an increase in food insecurity, poverty, and the loss of livelihoods and economic activities and has given rise to health challenges. Economically interconnected countries must collectively address climate-related risks to ensure shared resources’ resilience and maintain regional economies’ stability.
President of the African Development Bank Group Dr. Akinwumi Adesina has appealed to leaders in Nigeria and across Africa to make poverty history as he outlined a compelling case for welfarist policies and people-centred development.
“Given the high levels of poverty in Africa, and Nigeria, what is needed are welfarist policies that exponentially expand opportunities for all, reduce inequalities, improve the quality of life of people,” Adesina said as he received the prestigious Awolowo prize for leadership at a colourful ceremony in Lagos on Wednesday.
Adesina said a better Africa must start with transforming rural economies, “that is because some 70% of the population lives there. Rural poverty is extremely high. At the heart of transforming rural economies is agriculture, the main source of livelihoods.”
March 8 holds a special place in the calendar of the entire world. On this day, the world celebrates International Women’s Day (IWD) to commemorate and honor women’s accomplishments in all fields of human endeavor, from the social to the economic to the cultural and political. This year’s IWD is celebrated with the overarching theme of “Invest in Women: Accelerate Progress”. The theme emphasizes the importance of gender equality and women empowerment in all facets of life and its role as a critical ingredient for the creation of prosperous, stable and sustainable economies societies.
Gender equality is a priority globally through the 2030 Agenda of the UN (where Goal 5 simply puts its ambition as “achieve gender equality and the empowerment of women”) and continentally through Africa’s Agenda 2063 for ‘The Africa We Want’ and even the AU Constitutive Act (Article 3 of which commits the AU “to ensure the effective participation of women in decision-making, particularly in the political, economic and socio-cultural areas”). Despite this seemingly universal consensus, however, gender-based discrimination remains extant to this day.
But, Africa is leading the world on the issue of women economic empowerment particularly in relation to trade policy. As part the initiative to integrate the Continent through the African Continental Free Trade Area (AfCFTA), just last month the AU Assembly adopted a landmark legal instrument that aims to pave the way for women and youth to play a proportionate role in leading the Continent’s trade-led integration and shared prosperity. Known as the AfCFTA Protocol on Women and Youth in Trade, this decision represents a significant and unique step towards a more inclusive, equitable and prosperous Africa.
1 in every 10 women in the world lives in extreme poverty (UN Women)
We cannot continue to miss out on the gender-equality dividend. More than 100 million women and girls could be lifted out of poverty if governments prioritized education and family planning, fair and equal wages, and expanded social benefits. Almost 300 million jobs could be created by 2035 through investments in care services, such as provision of daycare and elderly care. And closing gender employment gaps could boost gross domestic product per capita by 20 per cent across all regions.
The areas needing investment are clear and understood. First and foremost there must be an investment in peace. Beyond this, the investments needed include: laws and policies that advance the rights of women and girls; transformation of social norms that pose barriers to gender equality; guaranteeing women’s access to land, property, health care, education, and decent work; and financing women’s groups networks at all levels.
Explainer: How can gender equality reduce poverty? (UN Women)
DDG Hill: Digital and services trade foster socio-economic inclusion of women (WTO)
Delivering a keynote speech on 7 March at a “Women in Trade” event organized by Trade Finance Global in London, Deputy Director-General Johanna Hill emphasized the powerful role digital trade and trade in services can play in fostering women’s socio-economic inclusion.
DDG Hill noted that while trade is known to have a positive impact on women's economic participation, the global trading system is undergoing significant changes. This is why, she said, "we need to ensure that [the future of trade] holds the promise of a better life, in particular for women." She focused her intervention on digital trade and trade in services, citing them as some of the main factors that will shape the future of trade.
On digital trade, DDG Hill gave the example of female farmers of coffee and cocoa, who can connect to new markets and access financial services thanks to blockchain-based technology. Cocoa and coffee farmers are struggling financially, given the prices received for the commodities they produce, she said. According to the Fairtrade Foundation, cocoa farmers earn on average just 6% of the final value of a chocolate bar. Thanks to digital technology, they can connect with buyers and cooperate with other farmers, ensuring a fair price for their products.
Trade and gender co-chairs discuss post-MC13 work, launch prize for gender equality in trade (WTO)
At a meeting of the Informal Working Group (IWG) on Trade and Gender on 6 March, the co-chairs highlighted gender outcomes at the 13th Ministerial Conference (MC13) in Abu Dhabi and outlined their vision for advancing work on trade and gender. Members stressed the IWG’s dedication to advancing gender inclusivity in trade. To mark International Women’s Day on 8 March, the co-chairs launched the International Prize for Gender Equality in Trade, with the aim of recognizing the most impactful gender-responsive trade policies implemented by WTO members and observers.
Southern Africa: Malawi, Zambia and Zimbabwe failing to protect the human rights of women working in informal, cross-border trade (Amnesty International)
The governments of Malawi, Zambia and Zimbabwe have failed to protect women participating in Informal Cross-Border Trade (ICBT) from gender-based violence and economic exploitation, which has impeded the women’s ability to exercise their human rights in the context of decent work, Amnesty International said today in a new report.
The report, ‘Cross-border is our livelihood, it is our job’- Decent work as a human right for women cross border traders in southern Africa, details how women working in ICBT in Malawi, Zambia and Zimbabwe frequently face physical assault, sexual harassment, and intimidation, which is often perpetrated by state officials, including border authorities. Women also face violence from non-state actors.
In 2018, the value of informal cross-border trade in the Southern Africa region reached USD $17.6 billion. Informal cross-border trade is predominantly conducted by women, with women comprising 60% to 90% of those engaged in this trade across subregions. This sector presents significant potential for poverty alleviation.
Govt leads calls to uplift women entrepreneurs (The Herald)
The Government has called for enhanced capacitation of budding women entrepreneurs as part of efforts to improve the quality of products they produce in order to benefit from the vast export opportunities under the African Continental Free Trade Area (AfCFTA). Micro, Small to medium enterprises (SMEs) in Zimbabwe employ 76 percent of the working population, with 57 percent of these being women, according to a 2021 MSME survey.
A recent study by United Nations Women identified opportunities for women entrepreneurs in the AfCFTA. The study focused on three areas of interest: women in informal cross-border trade (WICBT), gender and value chain analysis, and affirmative action/preferential public procurement.
However, while the regional trading block presents unlimited export opportunities for MSMEs, especially one run by women, it is also a highly competitive market where the quality of products and services plays a critical role in ensuring small businesses successfully tap into the market.
Women in African business take two steps forward, one step back (African Business)
Women in Africa are leading the way when it comes to establishing their own businesses. A quarter of all businesses on the continent are started or run by women, in contrast to Europe where the share of entrepreneurial activity by women is a lowly 5.7%.
“Africa does stand out in the global landscape when it comes to entrepreneurship,” according to Toni Weis, a financial specialist at the World Bank’s Gender Innovation Lab. “Of all the regions, Africa is the one that has gender parity in self-employment and entrepreneurship, which is really quite remarkable especially if you look at a neighbouring region like the Middle East and North Africa.”
Women’s strong participation in business in Africa is linked to a number of factors, including survival – formal job prospects can be limited, necessitating innovation and self-employment by women. Conversely, it is also likely that strong economic growth in many countries, widespread urbanisation and changing laws around women’s rights across the continent have enabled much greater female participation in businesses in recent years. There are also now far more initiatives that encourage women’s participation, including specific calls for female applicants for roles.
Despite this considerable progress, a number of structural, social and infrastructure challenges persist. Whereas more and more women are participating in the private sector, this participation is not always sustained higher up the career ladder.
5 ways to accelerate women’s economic empowerment (UN News)
“This year’s theme – invest in women – reminds us that ending the patriarchy requires money on the table,” UN Secretary-General António Guterres said in a statement for the International Day.
“This all depends on unlocking finance for sustainable development so that countries have funds available to invest in women and girls,” he said, calling for action to support programmes to end violence against women and to drive women’s inclusion and leadership in economies, digital technologies, peacebuilding and climate action. While increasing women’s share of assets and finance is vital for their economic empowerment, equally important is building institutions that promote public investment in social goods and sustainable development.
See UN Secretary-General’s message on International Women’s Day (UN Women)
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UN telecomms agency chief: One third of humanity still offline (UN News)
In Least Developed Countries, only 30 per cent of women have access to the internet, Secretary-General Bogdan-Martin said. “I’ve seen women who can’t afford a smartphone, women in countries where entry-level handsets can exceed 70 per cent of the average household’s monthly income,” she said reflecting on the time spent in office, on the eve of the International Women’s Day. Women still account for a disproportionate share of those offline, outnumbering men by some 20 per cent.
Speaking about generative artificial intelligence (AI) – an area where ITU holds a leading role among the UN-family agencies – the Secretary-General stressed there are clear pros and cons. Citing AI’s potential to mitigate greenhouse gas emissions by 10 per cent and advance progress across the 17 UN Sustainable Development Goals, she cautioned against the threat AI poses, including cyberattacks and erosion of trust caused by dis and misinformation.
Goods barometer continues to signal weak upward momentum in trade (WTO)
The current reading of 100.6 for the barometer index is above the quarterly trade volume index but only slightly above the baseline value of 100 for both indices. This suggests that merchandise trade should continue to recover gradually in the early months of 2024, but any gains could be easily derailed by regional conflicts and geopolitical tensions.
The volume of world merchandise trade fell 0.4% in the third quarter of 2023 compared to the previous quarter and was down 2.5% compared to the same period in 2022.
The steep year-on-year drop in the third quarter was mostly due to relatively strong growth in the first three quarters of 2022. Goods trade from January to October in 2023 has been mostly flat, with volume in the third quarter nearly unchanged since the start of the year and up just 3.2% over two years. These developments are more negative than the WTO’s most recent forecast of 5 October 2023, which predicted 0.8% growth in merchandise trade in 2023.
Critical minerals: Harnessing data key to unlocking hidden treasures (UNCTAD)
The global quest for a cleaner energy system has escalated the demand for critical energy transition minerals such as lithium, cobalt, nickel and copper. These minerals play a crucial role in renewable energy technologies such as solar photovoltaic cells, wind energy, battery storage and electric vehicles.
For example, the demand for copper in clean energy systems is forecast to increase from 23% of total demand across all applications to over 42% by 2050, according to UNCTAD calculations based on data from the International Energy Agency. But if copper’s production continues at its current rate, the burgeoning demand won’t be met, creating a significant gap that needs to be addressed to keep global warming to no more than 1.5°C, in line with the Paris Agreement on climate change.
To meet the increasing demand, countries need to explore new resources abundant in high-grade mineral ores and attract investments into the sector, among other essential measures. They can use technology and data to identify resources that traditional geologists might overlook and assist miners in determining optimal drilling locations.
New UNCTAD-WHO analysis reveals trends in processed foods trade (UNCTAD)
Global trade in food grew by 350% from 2000 to 2021, reaching a total value of $1 689 billion. Food now represents about 8% of total merchandise trade globally, compared to 6% in 2000. With as many as 783 million people facing hunger worldwide in 2022, trade can help improve access to food.
“But not all foods that are imported and exported are equally good for us, and the composition of food trade can have important health impacts,” says Anu Peltola, director of UNCTAD’s statistics service.
A study by UNCTAD and the World Health Organization (WHO) presents a new framework for analysing the global food trade. The global trade matrix of processed food released on 7 March shows trends for food imports and exports at different levels of processing and for different country groups. The trends can help shed light on important economic, social and health dimensions in a country or region.
Red Sea Attacks Disrupt Global Trade (IMF)
In the past few months, global trade has been held back by disruptions at two critical shipping routes. Attacks on vessels in the Red Sea area reduced traffic through the Suez Canal, the shortest maritime route between Asia and Europe, through which about 15 percent of global maritime trade volume normally passes. Instead, several shipping companies diverted their ships around the Cape of Good Hope. This increased delivery times by 10 days or more on average, hurting companies with limited inventories.
On the other side of the world, a severe drought at the Panama Canal has forced authorities to impose restrictions that have substantially reduced daily ship crossings since last October, slowing down maritime trade through another key chokepoint that usually accounts for about 5 percent of global maritime trade.
Trade policy vital for sustainability despite questions (Allen Overy)
Trade policy is increasingly recognised as a key route to achieving global sustainability goals. Commitments to reach Net Zero require vast amounts of international investment to build green infrastructure and adapt existing systems. Free trade agreements can remove barriers to trade in sustainable products and technologies, while subsidies and tariffs can be used to incentivise the transition.
However, the legality of some of these measures is hotly debated, including whether they are compliant with international law. Trade and sustainability were also key topics of discussion at COP28, including the possibility of a more global approach to sustainable trade policy.
Closing remarks by Minister for Foreign Trade and Development Ville Tavio at the LDC Future Forum in Helsinki (Valtioneuvosto)
The topic of the Forum has been the role of innovations in transforming the economy and society, for innovations can truly accelerate development. Scaling up is much needed to reach the sustainable development goals.
As we have discussed, digitalization is leaping forward, but we also see digital gaps still being wide. We need to pay special attention to digital gaps which prevent women and girls from accessing online data. The digital economy holds many promises, but apart from the private sector we also need to enable institutions, citizens and civil society organizations to fully benefit from it. I hope that the Forum has given inspiring ideas on how to tackle these challenges.
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Innovative businesses gain more access to global markets, study finds (SAnews)
Innovation-active South African businesses have more skilled labour and greater access to the global markets compared to non-innovation enterprises, according to results from the latest round of the South African Business Innovation Survey (BIS). The Human Sciences Research Council (HSRC) survey revealed that during the 2019 to 2021 period, 62% of South African businesses took scientific, technological, organisational, financial, or commercial steps aimed at realising an innovation.
According to the statement, training emerged as the most common innovation activity for 47% of innovation-active businesses, followed by software and database activities (29%), and marketing initiatives (25%). Of the employees involved in these innovation activities, only 38 in 100 workers were female and 62 in 100 were African.
“In South Africa, where we face multiple challenges, a more innovative business sector can contribute to productivity and business resilience as well as job creation, improved working conditions and quality of life,” said the HSRC’s Dr Amy Kahn, who led the BIS.
South Africa’s current account deficit widens sharply in fourth quarter (Engineering News)
South Africa’s current account deficit widened sharply in the fourth quarter of 2023 to 2.3% of gross domestic product (GDP) from a revised 0.5% of GDP in the third quarter, central bank data showed on Thursday. The trade surplus narrowed to R88.1-billion in the fourth quarter from R181.1-billion in the third quarter, while the annual trade surplus more than halved in 2023, to 1.5% of GDP from 3.4% in 2022.
Kenya takes funding crown as African tech investment dips (CGTN Africa)
Kenya emerged as the surprise leader in African startup funding despite a global slowdown in tech investment, according to Disrupt Africa’s latest report. While total investment dropped by nearly 28 percent in 2023 compared to 2022, Kenya attracted a record-breaking 674 million U.S. dollars, surpassing the previous frontrunner, Nigeria. The report, titled “The African Tech Startups Funding Report 2023,” highlights a period of recalibration for the continent’s tech ecosystem.
Kenya’s rise to the top is attributed in part to significant funding rounds secured by two of its energy companies. This shift suggests a growing focus on sectors beyond the traditionally dominant fintech space. While the “big four” – Nigeria, Egypt, South Africa, and Kenya – continued to attract the lion’s share of funding (90.4 percent), their dominance appears to be waning slightly compared to 2022 (80.8 percent).
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank.
These opportunities would ease the pressure to import goods from the rest of the world, says Philip Myburgh, Executive Head of Trade and Africa-China, Business and Commercial Clients at the Standard Bank Group (parent company of Stanbic Bank Ghana).
“Besides reducing the need to import goods from outside of Africa, the preferential tariff rates promote Africa’s growth. AfCFTA has the potential to boost South Africa’s economy and create new jobs by increasing economic participation.” “Last month, South Africa exported its first shipment of goods to Ghana under the AfCFTA agreement. The goods shipped were forged grinding balls and high-chrome grinding media products supplied to the platinum, gold, ferrochrome, base metal, power generation and cement industries.” However, several other markets remain to be explored, says Myburgh.
The inception of the Southern African Community Development (SADC) Atlantic Project took place on 20thFebruary 2024, in the Republic of Angola, in Luanda.The primary goal of the project is to support the coordinated efforts of Angola, Namibia, and South Africa to mitigate illegal, unreported, and unregulated (IUU) fishing and organised crime in the fisheries industry. This initiative is one of many carried out by the SADC Regional Monitoring Control and Surveillance Coordination Centre (MCSCC).
Fisheries in the SADC region yield substantial economic benefits, including fish production of about 3,7 million tons of fish, with exports of fish and fishery products at about US$ 2.3 billion, accounting for 31% of Africa’s total exports of fish and fishery products in 2022. They also provide direct and indirect employment to about 3.5 million SADC citizens and contribute to the region’s food and nutrition security.
East African economy to expand by 5.1 percent (The East African)
The East African economy is projected to grow by 5.1 percent this year with Kenya, Rwanda and Tanzania leading the region’s economic momentum. A report by audit, tax and consulting firm RSM (Eastern Africa) Consulting Ltd, dubbed “The East African Economic Outlook 2024” and presented during the EAC CEO Roundtable on Tuesday in Nairobi, reveals that the region will continue to lead Africa’s growth pace, expanding by 5.7 percent in 2025.
“Kenya was among the four EAC partner states in the top performing economies in Africa in 2023. It is also envisaged that EAC partner states will have a strong economic rebound, with an expectation to attain a GDP growth rate ranging from 4.1 percent to 7.2 percent,” said Annette Mutaawe Ssemuwemba, EAC Deputy Secretary-General for Customs, Trade, and Monetary Affairs. Global shocks, however, continue to threaten regional economies.
Illicit trade, counterfeit and substandard goods, high cost of electricity and transport, and currency depreciation are among the issues that have led to the high cost of doing business in the region.
The Private Sector Directorate of the Economic Community of West African States (ECOWAS) played host to Delegates from member states, including delegates from the African Union Commission (AU) and UEMOU to the 1st Steering Committee Meeting on regional Small Business Coalition in Abuja from 4th to 6th of March, 2024. This meeting was aimed at promoting and boosting small and medium enterprises in the region.
It was agreed that the coalition is important and timely, as it presents an opportunity to create a platform for dialogue, cooperation, and innovation among our small and medium enterprises and industries, which are the backbone of our economies and the drivers of our development. We can share best practices, exchange information, access new markets, enhance our competitiveness, and create more jobs and wealth for our people by joining forces.
3rd EAC Science, Technology and Innovation Conference opens in Nairobi (EAC)
The 3rd East African Community Science, Technology and Innovation (STI) Conference opened in Nairobi, Kenya on Wednesday with an appeal to all stakeholders to work together to enable the Community to tap into and benefit from STI opportunities and accelerate their diffusion.
“Today, East Africa’s innovation level is insufficient to reach ambitious levels of inclusive growth and development due to prevailing technological and innovation constraints, which include financing, and information asymmetries that need to be addressed to harness STI full potential fully,” said Ms. Hendrina C. Doroba, the Division Manager in charge of Education and Skills Development at the African Development Bank (AfDB) East Africa Regional Office, adding that the situation had been worsened by the slow global recovery from the Covid-19 pandemic and the ongoing Russian-Ukraine war.
“A critical pathway in responding to these challenges and ensuring that STI works for East Africa is the urgent need to train the next generation of scientists and innovators, who should take the lead in driving the region’s development agenda,” she added.
Related: Digital space incomes grow for Kenyan youth (The East African)
Africa risks missing out on AI revolution benefits (The East African)
African economies risk being left behind in the artificial intelligence (AI) shift that is changing the way companies do business, with the continent’s low capacity for virtual storage and increasingly outdated mobile technology a cause for concern. In Africa, according to the African Telecommunications Union (ATU), investments are still going towards closing a connectivity gap—bringing more people into the network especially in rural areas.
“The key then is for our governments to embrace the fact that we are now in a data driven economy, where access and control of information can help in tooling AI to do what we need and want it to do,” said ATU Secretary General John Omo. Even as countries bring in supporting legislation however, the EAC region and sub-Saharan Africa as a whole will still need to address the internet coverage and usage gaps which blunt the impact of new technology on the economy.
Global mobile network association GSMA, in its 2023 State of Mobile Internet Connectivity Report, says that just 25 percent of the total population in sub-Saharan Africa—or 290 million people—has mobile internet coverage, against a global average of 51 percent.
Partner2Connect: Mobile industry answers call for connectivity (ITU Hub)
Fifth generation (5G) mobile telecommunication services could contribute almost USD 1 trillion to the global economy by 2030, becoming a vital component of education, health care, energy distribution, and more. Mobile services, meanwhile, are intertwined with the booming space economy, itself set to grow to USD 1 trillion by the end of the decade.
“Universal, meaningful connectivity is within our grasp,” Bogdan-Martin said. “These commitments will help provide accessible and affordable network connectivity to millions of people in need.” Read the press release Associated infrastructure deployments and upgrades “will have a long-term impact on markets and economies across the globe,” she added.
ITU – the UN digital agency – has called on governments and industry to work together to connect every corner of the globe. Pledges mobilized through Partner2Connect in the last two years now exceed USD 46 billion in value. The ITU-led connectivity campaign aims to reach USD 100 billion by 2026. The latest pledges from mobile operators bring it close to halfway there.
Earth’s ‘life support system’ is being destroyed by global business paradigm, UN expert warns (UN News)
In a hard-hitting report to the Human Rights Council, Special Rapporteur David Boyd underscored that current business practices, particularly large corporations, pose a severe threat to the planet’s ecological integrity. Mr. Boyd emphasized the “colossal impacts” on natural resources, which are being consumed six times faster than the planet can sustain.
“Led by the ultrarich, with their private jets, yachts, massive mansions, space travel and hyperconsumptive lifestyles, humanity is exceeding Earth’s carrying capacity,” the report stated in stark language, singling out the ecological footprint of the world’s most developed nations.
Empowering vulnerable women: African Development Bank financing bolsters economic inclusion in Togo (ZAWYA)
Some 45 kilometres from Lomé, in the village of Aného, a transformative initiative is reshaping the lives of vulnerable women like Adjoa Agbomassi. Following her successful treatment from obstetrical fistula, Adjoa now stands proudly by her vegetable stalls, a testament to the success of the Project to Support the Financial Inclusion of Vulnerable Women in Togo (PAIFFV).
“Before, I struggled to sustain my business. Now, with the project’s support, I’ve expanded my operations, attracting more customers and securing a stable income, thanks to the loan from the Project to Support the Financial Inclusion of Vulnerable Women,” says Adjoa, reflecting on her journey to financial independence.
With over $990,248 (around 600 million CFA francs) disbursed to women entrepreneurs, the project has facilitated the creation of 8,072 micro- and small businesses, boasting an average profitability of 26.5 percent. Each enterprise has also helped to generate 1.2 jobs, fostering economic growth and stability within local communities.
See also: Barriers still exist for women in political participation (CGTN Africa)
The climate crisis is unjust for rural women: FAO gender expert (FAO)
Rural communities worldwide are grappling with escalating challenges brought on by the climate crisis. As disasters become more frequent and severe, and environmental conditions grow harsher, the burden on these communities intensifies. However, it is women who are bearing the heaviest brunt of these impacts, including significant financial losses.
Until now, no study had ventured to quantify the monetary costs faced by these women due to heat stress, floods, or droughts. The newly released FAO report, The Unjust Climate: Measuring the impacts of climate change on the rural poor, women and youth, sheds light on how climate change disproportionately affects the rural poor, older people and women in low- and middle-income countries. It reveals billions of dollars in losses among female-headed farming households, further widening the income gap between men and women.
Invest in women to accelerate development for all: UNCTAD chief (UNCTAD)
As the world marks International Women’s Day on 8 March, UNCTAD Secretary-General Rebeca Grynspan calls for bolder efforts to invest in creating equal opportunities for women and girls across the globe. They often get less access to education and health care, are paid less than men and are more likely to leave work to care for families.
It’s now projected that closing the global gender gap will take almost 132 years – about 30 years more than estimated in 2019. According to the United Nations, accelerating the pace to achieve gender equality by 2030 would require an additional $360 billion each year.
Speaking on a special episode of UNCTAD’s Weekly Tradecast, Ms. Grynspan underlined the pivotal role that investing in women plays not only in achieving gender equality but also in building stronger, more resilient and sustainable economies and societies for everyone.
Video: Women’s Day: Why investing in women is the key to faster development for all
World Bank: International Women’s Day 2024
Trillion-dollar shift urgently needed to align global finance with climate and development goals (UNCTAD)
An estimated $4 trillion needs to be mobilized each year to fight climate change and achieve the Sustainable Development Goals (SDGs) UNCTAD’s latest Trade and Development Report says. This amounts to the GDP of Germany in 2022 and can only be accomplished through a major shift in global financial flows, entailing the reallocation of trillions of dollars currently funding – directly and indirectly – economic activities that undermine these goals.
The estimated financing needs represent just 1% of total global financial assets, currently valued at more than $470 trillion. “But it’s not easy to shift resources away from long-standing and often profitable activities,” says Anastasia Nesvetailova, head of UNCTAD’s macroeconomic and development policies branch.
The report highlights that, for example, eight years after the Paris Agreement, finance for fossil fuels continues unabated at more than $1 trillion annually to companies supporting new development projects.
See also: Greening global trade: A reform agenda for a sustainable future (YaleNews)
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Automotive demand for platinum expected to hit seven-year high this year (Engineering News)
This year could potentially turn out to be quite an interesting year for platinum as a commodity and also as an investment, with the 2023 platinum market deficit of 878 000 oz forecast to be followed by a 2024 deficit of 418 000 oz.
In addition to automotive demand being poised to reach the seven-year-high figure of 3 297 000 oz, demand for platinum from stationary fuel cells and electrolysers is set to rise by more than 120%, amid green hydrogen projects getting under way in Europe, following oversubscribed auctions, and also in North America, where the Inflation Reduction Act is stimulating widespread development.
Contrasting sharply with this are the two substantial consecutive yearly platinum supply deficits, plus a seeming momentous decline in above-ground stocks, which is kindling hopes of a much-needed price rise.
Treasury urged to fast track harmonization of custom and excise duty of ethanol in EAC bloc (Capital News)
The National Treasury has been urged to speed up the harmonization of customs and excise duty on ethanol in the East Africa Community (EAC) region to protect Kenyans from exploitation by unscrupulous dealers and traders. Interior Cabinet Secretary Kithure Kindiki on Wednesday called on the Njuguna Ndung’u-led Ministry to complete the process within 45 days.
Kindiki added that the Kenya Bureau of Standards shall within 45 days ensure that all industrial ethanol is denatured or marked with a denaturing agent (denatonium benzoate) to prevent diversion and/or the accidental use of industrial ethanol in alcohol manufacture. He disclosed that within 60 days, the National Treasury shall conclude taxation proposals for the incorporation of a model of taxation based on alcohol content.
Botswana pushes for exemption of citizens from Kenya’s eTA (CGTN Africa)
Botswana will soon engage Kenya to lobby for the exemption of its citizens from the East African country’s electronic Travel Authorization (eTA) requirement. Botswanan President Mokgweetsi Masisi said on Monday that the eTA, a semi-automated system that determines the eligibility of visitors to travel to Kenya, has imposed unexpected costs on some Botswanan citizens wishing to travel to Kenya.
Vertical market linkage favors Ethiopia’s coffee: Authority (ENA)
Ethiopian Coffee and Tea Authority (ECTA) disclosed that the vertical coffee market linkage is benefiting farmers, export associations, and coffee suppliers thereby avoiding manipulators. Authority Director General Adugna Debela (PhD) told The Ethiopian Press Agency (EPA) that the Authority is working on alternative approaches to legal coffee producers and suppliers in order to benefit them and the country sustainably as well.
The Authority secured 620 million USD from coffee export of the planned 1.75 billion USD to be achieved this fiscal year, he said, adding that the Authority is working hard to achieve its target utilizing the suitable season. He further stated that 80% of the coffee pruning that has been carrying out on 500,000 hectares is achieved. Adugna expressed that the pruning is significantly helpful to increase the productivity and production of coffee by three folds whereas improving the quality by 30 % to 40 %. The effort has paid off as the international coffee market was reduced last year by 32 % while the quality of Ethiopian coffee increased by 18 %.
He remembered that the vertical coffee market linkage was commenced three years ago and gained merely 700 million USD whilst the authority secured 1.42 billion USD from exported 300,000 tons of coffee in 2022.
New Reports Identify Pathways to Build a Climate-Smart Economy in Zimbabwe (World Bank)
Zimbabwe remains vulnerable to climatic shocks and without adaptation, climate change will impose high costs on the economy, getting progressively larger over time, and this could cost nearly 5 percent of GDP annually by 2050.
The Zimbabwe Country Climate and Development Report (CCDR) and the Country Private Sector Diagnostic Report (CPSD) reports launched recently by the World Bank point to Zimbabwe’s abundant natural capital (mineral and renewable) as key to driving the country’s growth potential. Furthermore, leveraging the private sector to build a climate-smart resilient economy could reap dividends for the country that has significant opportunities in several key value chains such as agribusiness, tourism, and green minerals mining.
Women inclusion in politics, governance essential for Nigeria’s sustainable development (Tribune Online)
The European Union (EU) Ambassador to Nigeria and ECOWAS, Samuela Isopi, has emphasised that women’s active participation in decision-making and politics is an essential factor in helping Nigeria achieve equality, sustainable development, peace, and democracy. She noted that while women have the fundamental right to participate in political life, most of them still face numerous social, cultural, and financial challenges.
Therefore, she reminded stakeholders, especially the National Assembly, that the ongoing constitution reform process presents Nigeria with a unique opportunity to join the league of progressive nations in promoting gender parity through the adoption of a legal framework that discourages discrimination based on gender.
US, Morocco Sign Action Plan to Boost Cooperation Against Climate Challenges (Morocco World News)
Morocco and the US signed the fourth cooperation action plan for 2024-2027 as part of the two countries’ determination to continue to work to achieve environmental and sustainable development goals. The action plan covers priority areas, including environmental laws and regulations as well as climate change, green growth, economy as well as environmental education.
Minister of Energy Transition and Sustainable Development Leila Benali signed the agreement with US ambassador to Morocco Puneet Talwar today, in an effort to strengthen actions towards the achievement of sustainable, national objectives in line with the new development model. In a press statement, Benali expressed satisfaction with the signing of the agreement, stressing that the aim is to strengthen cooperation relations between the two countries in terms of biodiversity, environmental protection, and energy transition.
Africa Needs A Transcontinental Trade Adjustment And Facilitation Fund (Forbes)
The debate about establishment of the Africa Continental Free Trade Agreement (AfCFTA) unveiled in 2019 has focused on a core—and for now—the most visible elements of the agreement: African governments’ commitments to reduce trade policy barriers—mostly import tariffs—on goods traded among the 54 countries on the continent.
Unfortunately, Africa’s leaders have paid less attention to the reform of two equally important corollary measures to establish modern continent-wide institutions and administrative rules: (i) those that facilitate or otherwise enhance consistency of regulatory protocols governing cross-border commerce—an “African Transcontinental Trade Facilitation Fund” to enable uniformity and implementation of licensing protocols, and (ii) those that cushion the impacts from closure or relocation of African firms as well as the layoff, retraining or relocation of workers—an “African Transcontinental Trade Adjustment Assistance Fund.”
Global Players Exploring Opportunities Within African Continental Free Trade Area (AfCFTA) (Modern Diplomacy)
The scramble for the multidimensional control of the African continent by global players is a geopolitical reality. In order to be part of this geopolitical arena, foreign players have been devising different mechanisms for revitalizing partnership and strengthening cooperation with Africa, says Dr. Babafemi A. Badejo.
Many foreign players and investors are now looking forward to exploring several opportunities in the African Continental Free Trade Area (AfCFTA), he adds. With an array of economic activities undertaken currently in various sectors, building media network is one of the instruments for consolidating their influence, and broadly boost the understanding of their corporate interest, products’ image and business services among the large spectrum of the population.
During this interview, Professor Babafemi A. Badejo says Russia needs a comprehensive African agenda and a well-defined approach with its economic diplomacy, it has to take hyperbolic steps in raising its economic influence in Africa.
African countries should unite on the reform of the global financial architecture (UNECA)
The 56th Conference of Ministers of Finance, Planning and Economic Development (COM2024) closed in Victoria Falls, Zimbabwe with a consensus that African countries should with one voice, advocate for the reform of the global financial architecture for it to be fit for purpose and serve Africa’s development priorities.
The ministers also called upon countries to develop instruments and institutions that can bridge the technology gap and develop innovative financing mechanisms that can work for Africa with the right governance frameworks.
Claver Gatete UN Under-Secretary-General and Executive Secretary, Economic Commission for Africa (ECA) said the resolution adopted on tax cooperation is important as it will help countries strengthen domestic resource mobilization and prepare for the Financing for Development Conference that will take place in 2025.
In addition to the need for increased financing, they said, there is a need for more effective policy and regulatory frameworks to help to close development and climate finance gaps in Africa, and that a supportive policy environment for scaling up renewable energy.
Miga sticks by €349mn guarantee for African trade finance (Global Trade Review)
The World Bank’s investment guarantee agency has renewed €349mn in cover for a Standard Chartered-led loan to the Eastern and Southern African Trade and Development Bank (TDB), which will be used to finance trade transactions. The guarantee replaces one Miga issued for the first time in 2020 for €358.9mn with a tenor of up to ten years, although original lenders MUFG and SMBC are no longer participating, according to a Miga spokesperson.
Miga says in a statement that the funding will support TDB’s trade finance operations and help close the African trade finance gap, which the African Development Bank (AfDB) estimated to be US$81.8bn in 2019 and has likely grown since.
The EAC wants to become a “Political Confederation”. What could this mean? (tralac)
The media recently reported that the process of transforming the EAC into a political confederation “is in progress”. Certain recommendations have already been made by a “Committee of Experts” tasked with drafting a model constitution for the EAC confederation. This Confederation will apparently have its own institutions, officials, and funds. It would deal directly with Partner States rather than EAC citizens. The Confederal authority will, however, have the right to suspend or expel a member state that violates the confederal constitution.”
These matters require careful negotiations about demarcating powers between the member states and confederal authorities. Specific legal instruments will have to be drafted, be ratified by the Partner States, and gradually implemented. They will have to be aligned to existing EAC institutions, such as the Legislative Assembly and the East African Court of Justice. This will take time and cautious statecraft; African States treasure their sovereignty.
SADC tackles impediments in the SPS management system of SADC EPA Member States
The Southern African Development Community (SADC) Secretariat convened a five-day capacity-building workshop in the Kingdom of Lesotho from 4-8 March 2024 aimed at enhancing capacity on food safety principles and promoting general awareness on sanitary requirements that are needed for participating in exporting food products and agriculture commodities in the European Union (EU) market.
Agriculture is one of the sectors that benefits extensively from the improved market access under the EU SADC EPA particularly sugar, dairy products, canned fruits, flowers and fisheries. Mr. Lebusetsa Pholosi, Programme Officer, EPA Unit at the SADC Secretariat highlighted that the EU grants 100 percent duty-free quota-free access for products originating from Botswana, Eswatini, Lesotho, Namibia, and Mozambique and removes customs duties on 98.7% of imports coming from South Africa.
African Seed Trade Members Meet to Boost Seed Adoption, Distribution (Voice of America)
More than 350 delegates from governments, research institutions and seed production companies are gathering in Kenya this week to address challenges in getting good-quality seeds to African farmers. Experts say the lack of good seeds is hampering food production across the continent and contributing to the hunger crisis in many countries.
According to U.N. agencies, more than 280 million people in Africa are food insecure, with over a billion unable to afford healthy diets. One of the problems is that quality seeds are inaccessible to many African farmers, leading to higher rates of crop failure.
Charles Miller, a board member of the African Seeds Trade Association, says countries would benefit if they harmonized their policies so seeds could be shipped across borders with no issues.
WTO asks African nations to improve quality of shea butter to boost exports (The Cable)
The World Trade Organisation (WTO) says the shea butter market is expected to reach about $850 million by the end of 2027. Delivering a virtual address at the 2024 shea annual conference organised by the Global Shea Alliance in Abuja, Ngozi Okonjo-Iweala, director-general of the WTO, said it is crucial to look at the shea value chain beyond farming and processing for butter.
Agricultural Trade between North Africa and the EU in Times of Crisis (Transnational Institute)
Despite the noticeable growth in agricultural trade volumes between North Africa and the EU, stubborn issues such as food insecurity, escalating poverty and hunger rates, widening social and gender inequality, and the degradation and exhaustion of vital natural resources persist. These challenges undermine the region’s stride towards the Sustainable Development Goals (SDGs).
This unequal exchange becomes clear when we look at the nature of the products exported from Tunisia and Egypt to Europe. Since then, trade with the EU has steadily increased with European markets accounting for 70.9% of Tunisia’s exports in 2022.
UNCTAD chief: Fractured world in crisis demands ‘immediate action’ from G20
At a record high of $92 trillion, global public debt poses not only financial challenges but also a development crisis, UNCTAD Secretary-General Rebeca Grynspan told a meeting of the Group of 20 (G20) held in Brazil on 29 February.
The G20, which comprises the world’s major economies, has three priorities for 2024 under the Brazilian presidency: fighting poverty and hunger, the energy transition and sustainable development, and governance reform. A lead speaker before the bloc’s finance ministers and central bank heads, the UNCTAD chief urged comprehensive and immediate efforts to address the systematic barriers in the international financial architecture, including the reform of the G20’s Common Framework on debt restructuring and relief.
BRICS pursues de-dollarisation with blockchain-based payments (The Paypers)
The five-nation BRICS group comprising Brazil, Russia, India, China, and South Africa will work on creating a payment system based on blockchain and digital technologies, a report by Russian news agency TASS said. BRICS officials emphasised the importance of establishing an autonomous BRICS payment system, leveraging cutting-edge tools like digital technologies and blockchain. The priority is to ensure convenience for governments, individuals, and businesses, along with cost-effectiveness and non-political influences.
Gen AI, sustainability, monetisation key themes of 2024 TMT predictions (Engineering News)
Generative artificial intelligence (AI), sustainability and monetisation have emerged as three key themes in the 2024 edition of advisory firm Deloitte’s ‘Technology, Media and Telecommunications (TMT) Predictions’ report. The TMT report outlines 19 global trends for 2024, grouped into four categories or themes, namely generative AI; sustainability; media, entertainment and sports; and telecoms and technology, said Deloitte Global TMT research head Paul Lee.
“The first four predictions all focus on generative AI, and these are four disparate but all intimate themes, and with every technology, our underlying question is, would it monetise and if so, how?”
More global trade news:
Global Challenges Must Be Tackled Collectively (Voice of America)
Shaping an inclusive digital economy (China Daily)
Trade, sustainability and climate: What is at stake 30 years after WTO’s creation? (WTO Blog)
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Workshop aims to provide an overview of the AfCFTA (SAnews)
South Africa’s Special Economic Zones operators and businesses are to be exposed to the benefits of the African Continental Free Trade Agreement (AfCFTA) during a workshop by the Department of Trade, Industry and Competition (dtic). The department will host the workshop in collaboration with the Industrial Development Corporation (IDC) at the IDC Auditorium in Sandton on Wednesday from 09:00 in the morning.
The six sector master plans targeted are steel and fabrication, agriculture and agro-processing, retail-clothing textile leather and footwear, automotive industry, sugar value chain and forestry. “The aim is to share export opportunities for the SEZs arising from the AfCFTA and to sensitise them on the benefits of exporting under the AfCFTA,” Mlumbi-Peter said.
South Africa formally accepts Agreement on Fisheries Subsidies (WTO)
South Africa deposited its instrument of acceptance of the Agreement on Fisheries Subsidies on 1 March. Ebrahim Patel, Minister of Trade and Industry, presented South Africa’s instrument of acceptance to Director-General Ngozi Okonjo-Iweala at the closing session of the 13th Ministerial Conference (MC13) taking place in Abu Dhabi, United Arab Emirates.
Government working to address South Africa’s gas supply (SAnews)
The Department of Mineral Resources and Energy (DMRE) is expected to present a Gas Master Plan to Cabinet this month to address gas supply in the country. This is according to DMRE Minister Gwede Mantashe, who delivered the opening address at the Africa Energy Indaba held in Cape Town.
Recent media reports have suggested that South Africa may run out of natural gas supply in 2026, which could have devastating consequences for jobs and manufacturing. In his written speech, the Minister said government has “noted concerns regarding the current and future gas supply in the South African market due to commercial disputes between Sasol and its customers”.
Kenya-EU Trade Deal Faces Headwinds Amid Green Deal Compliance Concerns (Business Daily Africa)
The free trade agreement between Kenya and Europe may encounter challenges, as it needs to address compliance issues related to the EU Green Deal. This initiative binds Kenya’s exports to sustainable production under the farm-to-folk approach, potentially impacting the perceived benefits of the agreement.
Last week, Kenya moved closer to sealing a duty and tax-free trade pact with the EU after the agreement received approval from the EU parliament. However, the European Green Deal, launched in December 2019, poses hurdles, outlining stringent policies and targets to make the EU climate-neutral by 2050.
Ruto uses back channels to ease Ethiopia, Somalia tensions (The East African)
Kenya’s President William Ruto has engaged a higher gear for back channels to ease tension between Ethiopia and Somalia, motivated by business fervor in both countries. And, from this week, both Addis and Mogadishu are expected to tone down their public rhetoric against each other, sources privy to the discussions indicated.
“The two leaders discussed ways and means to expand close partnership on a wide range of issues, including further developing bilateral economic and security ties to the benefit of both the people of Somalia and Kenya,” said a dispatch after Dr Ruto and Mr Mohamud met at State House, Nairobi.
Ethiopian Airlines rues naira devaluation, inaugurates $55m e-commerce facility (Daily Trust)
The Group Chief Executive Officer of Ethiopian Airlines, Mesfin Tasew, has said the devaluation of naira has affected the airline’s cash flow management but stated that it has not affected passenger volume. Tasew said this in an interview on the sidelines of the inauguration of a state-of-the-art e-commerce cargo terminal in its hub in Addis Ababa which is a $55m investment to facilitate the development of e-commerce in Ethiopia, Africa.
The GCEO hinted about replicating the e-commerce facility outside Addis Ababa, especially Nigeria, in the near future. He said the inauguration of the e-commerce facility is a “significant breakthrough for the Ethiopian Group and the entire African economy. “We have implemented high-end technologies in the infrastructure that revolutionise the way goods are transported and delivered in the e-commerce industry in Africa.
Customs opens 90-day window for vehicle import duty regularisation (Daily Trust)
The Nigeria Customs Service (NCS) has announced the introduction of a 90-day window to facilitate the regularisation of import duties on specific vehicle categories.
“Owners of vehicles with pending customs duties or those detained due to undervaluation can apply through zonal coordinators and CAC FCT Command. However, it’s essential to note that seized and condemned vehicles are not eligible. “The valuation will follow the VIN method, and duty payments, accompanied by a 25% penalty, must adhere to import guidelines and procedures. Vehicle owners are encouraged to seize this opportunity for compliance within the specified timeframe,” Maiwada said.
The Kingdom of Lesotho streamlines border operations to facilitate trade efficiently (SADC)
The Kingdom of Lesotho validated the draft Coordinated Border Management (CBM) National Strategy which is geared at enhancing border efficiency by eliminating redundancies, duplications, and delays without compromising controls, safety and security in Maseru, Lesotho between 26 - 27 February 2024.
The Southern African Development Community (SADC) Secretariat, through the European Union (EU) funded SADC Trade Facilitation Programme (TFP) provided technical assistance to the Kingdom of Lesotho in developing the draft CBM.
The Chairperson of the National Trade Facilitation Committee (NTFC), Ms Malineo Seboholi, highlighted that trade facilitation is central to Lesotho’s achievement of developmental aspirations as a landlocked country.
IMF Staff Completes 2024 Article IV Mission to Nigeria (IMF)
“Nigeria’s economic outlook is challenging. Economic growth strengthened in the fourth quarter, with GDP growth reaching 2.8 percent in 2023. This falls slightly short of population growth dynamics. Improved oil production and an expected better harvest in the second half of the year are positive for 2024 GDP growth, which is projected to reach 3.2 percent, although high inflation, naira weakness, and policy tightening will provide headwinds.
“Recent improvements in revenue collection and oil production are encouraging. Nigeria’s low revenue mobilization constrains the government’s ability to respond to shocks and to promote long-term development. Non-oil revenue collection improved by 0.8 percent of GDP in 2023, helped by naira depreciation.”
Reassuring Investor Confidence in the Central African Economic and Monetary Community (CEMAC) Region (Africa.com)
In a bid to safeguard foreign exchange reserves in the region, the Bank of Central African States (BEAC) imposed stricter rules on currency transfers and payments in January 2022 – a move it has been unwilling to reverse despite opposition by energy stakeholders and leaders. Recent regulation significantly impacts dollar-dominated industries – such as the oil and gas sector – and reform is imperative to regain foreign investor confidence in West African oil and gas.
The upcoming African Energy Week (AEW): Invest in African Energy conference – scheduled for November 4-8 in Cape Town – will delve into the West African region’s vulnerability caused by foreign exchange regulations. Centered around facilitating investment in African oil and gas, the event unites regional energy leaders, financial institutions and foreign investors to discuss strategies for improving business environments; facilitating cross-border deals; and reassuring investor confidence.
The generally low share of intra-African trade is often cited as evidence of a lack of effective regional integration in Africa. In the first ten months of 2023, intra-African trade accounted for only 18 per cent of Africa’s total exports and 15 per cent of African total imports. For West Africa, the share of intra-African trade stood at 21 per cent of total exports and 15 per cent of total imports. Within West Africa, the intraregional trade share stood at 14 per cent in terms of exports and 12 per cent in terms of imports.
Among West African economies, the share of intraregional trade is higher in The Gambia, Guinea-Bissau, Mali, Niger, Senegal, and Togo. In part, this can be attributed to transit trade to the region’s landlocked countries, namely Burkina Faso, Mali, and Niger. Togo’s high intraregional export share (70 per cent) reflects the activities in the port of Lomé, the major transshipment centre in West Africa. The high intraregional export share of Niger (53 per cent) partly reflects transit trade activities (to Burkina Faso and Mali) but also exports of agricultural goods to Nigeria. Mali is the destination of many transit trade activities in West Africa, from Togo, Côte d’Ivoire, and Senegal.
Intra-Africa Entrepreneurship: Nurturing Africa’s economic renaissance (Nairametrics)
A wave of entrepreneurial vitality is sweeping the African continent, with more people daring to establish and nurture enterprises within and across the continent.
The African Development Bank has previously indicated that 22% of working-age people in Africa start a new business, more than anywhere else the highest rate of entrepreneurship in the world. These businesses are also innovative, with 20% of new African entrepreneurs introducing a new product or service. At the same time, funding for startups and African businesses has witnessed unprecedented growth in the last decade, albeit more muted following the aftershocks of COVID-19.
Still, this intra-Africa entrepreneurship is playing a pivotal role in creating jobs and spurring growth. As a collective, Africa could emerge as one of the world’s largest economies by 2050. Fostering its entrepreneurial spirit could be catalytic in propelling us toward this milestone.
Fifty-sixth session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development
African countries trading more outside the continent than amongst themselves, ECA report (UNECA)
The African share of global trade remained at less than 3 per cent, driven largely by merchandise trade, an indicator that African countries continue to trade with the rest of the world more than among themselves, according to a new report on Assessment of progress on regional integration in Africa by the Economic Commission for Africa (ECA).
Despite trade under the Agreement Establishing the African Continental Free Trade Area having officially started on 1 January 2021, the envisaged changes in intra-African trade are yet to appear. Intra-African trade as a share of global trade declined from 14.5 per cent in 2021 to 13.7 per cent in 2022.
COM2024: Africa is stronger together, says African Union Commission Deputy Chairperson (The New Times)
The outcome of the 56th Session of the Conference of Ministers of Finance, Planning and Economic Development opening held in Victoria Falls, Zimbabwe, will go a long way in realizing and fostering inclusive growth and sustainable development of Africa towards achieving Agenda 2063 and Agenda 2030, Monique Nsanzabaganwa, the Deputy Chairperson for the African Union Commission, said on March 4.
“Today, more than ever, we stand a better chance; to develop Africa’s productive capacities through industrialization; to harness the potential of our youth as an engine for greener economic transformation; to tap Africa’s green potential; to stem illicit financial flows and recalibrate our taxing rights; to harness the role of private sector investments and innovative financing mechanisms; and to reform the global financial architecture. However, no African country can do it alone. Africa is stronger together.”
Global system reform will help Africa (African Business)
Speaking at the official opening of the Ministerial Segment of the 56th Session of the ECA Conference of African Ministers of Finance, Planning and Economic Development, Gatete said with 2.7% growth in 2023, and a projection of 2.4% in 2024, inflation at nearly 20% and 21 countries at risk of, or already in, debt distress, the future seems bleak.
But all was not lost, he said, proposing a cocktail of solutions to help the continent navigate the restricted fiscal space. “First, the global financial architecture needs to be fixed. It must work for everyone and reflect the new dynamics. In this regard, we welcome the membership of the African Union in the G20. But we need to go further!
Africa to be $2.5tr short of climate finance by 2030, UN says (Engineering News)
Africa will be $2.5-trillion short of the finance it needs to cope with climate change by 2030, a UN official said on Monday, adding that the continent has contributed the least to greenhouse gas emissions while seeing some of the worst impacts.
Africa attracts only 2% of global investments in clean energy but needs $2.8-trillion of investment in the sector by 2030, United Nations Economic Commission for Africa chief economist Hanan Morsy told a conference in Victoria Falls, Zimbabwe, warning against the consequences of under-funding.
Reports:
pdf Overview of recent economic and social developments in Africa (512 KB)
pdf Assessment of progress on regional integration in Africa (345 KB)
Africa Taking Charge Of Its Development Agenda (AU)
The African Union is playing a leading role in improving Africa’s partnerships and refocusing them more strategically to respond to African priorities for growth and transformation as accentuated in the continent’s development blueprint, Agenda 2063. In recent months the various development partners working with the African Union, met with the AUC Chairperson and other leaders in the AU Commission (AUC), to discuss how to strengthen cooperation between them, and streamline agreed projects and activities to ensure they are delivering on “the Africa We Want”.
The following major activities took place under the different partnerships: The AU- EU Partnership; the Tokyo International Conference on African Development (TICAD 7) Summit; African Union – Korea; the Africa - Arab partnership; and the African Union – Eurasia Economic Commission (EEC).
Related: EU must overhaul Africa trade offer to parry China, warns MEP (EUObserver)
The African Union is weak because its members want it that way – experts call for action on its powers (The Conversation)
The African Union (AU) comes in for a lot of criticism. Most recently this is from within its own ranks. The AU Commission chairperson, Moussa Faki Mahamat, set out his frustrations after an AU summit in February 2024. The commission is the executive organ which runs the AU’s daily activities.
Mahamat accused member states of getting in the way of the commission doing its work, and failing to match rhetoric with action: Over the last three years, 2021, 2022 and 2023, 93% of African Union decisions have not been implemented. We think many of the criticisms of the AU are justified. This is based on more than 15 years of researching its political and legal development.
Africa: A Global Food Exporter By 2050, a Myth or Reality? (Modern Diplomacy)
Africa plans to become a global food exporter by 2050, as the continent currently imports about $50 Billion worth of agricultural products per year. This goal is expected to be achieved through the AfCFTA agreement where Intra-African agricultural trade is projected to increase by 574% after the elimination of Import tariffs by 2030. By the year 2035, the total exports would increase by nearly 29 percent relatively to the baseline. Agriculture exports will experience smaller gains of 49 percent for the intra-African trade and 10 percent for the extra-Africa trade. In terms of volume, it is USD 191 Billion.
DDG Ellard gives debrief on key outcomes from MC13 and path forward (WTO)
Watch the video here: here.
EU secures results at WTO Ministerial but important work remains to reform global trade rulebook (The European Sting)
The European Commission was instrumental in brokering important outcomes at the 13th ministerial meeting of the World Trade Organization (MC13) that ended Friday in Abu Dhabi. Over the past months, the EU had worked for ambitious results to revitalise the WTO at a time of rising geopolitical tensions, including a comprehensive agreement on global fisheries subsidies, agriculture reform, and meaningful progress on dispute settlement. The EU regrets that, despite willingness by a large majority of WTO members, it was not possible to find compromises on these issues.
“At a time of rising geopolitical tensions and political uncertainty, I welcome that MC13 delivered some positive results for the global trading system,” said Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade. “However, we were disappointed at the lack of breakthroughs in a number of important areas. Agreements were within reach, supported by an overwhelming majority of members, but ultimately blocked by a handful of countries – sometimes just one. The EU will continue to actively support work on a more inclusive and fit-for-purpose global trade rulebook and to show leadership and engagement. We hope all our partners will replicate this can-do approach.”
LDCs to get interim duty-free and quota-free market access after graduation (The Kathmandu Post)
During the 13th Ministerial Conference of the World Trade Organisation that concluded in Abu Dhabi of the UAE last Friday, member countries agreed to provide duty-free and quota-free market access for a smooth and sustainable transition period for the countries that are set to graduate from least developed countries (LDCs) category. Nepal, Bangladesh and the Lao People’s Democratic Republic will formally come out of the UN-defined category, LDC, by the end of 2026 and become developing countries.
More LDCs will follow these countries. There are 45 LDCs, of which 15 are now on the path to graduation to developing countries, and 10 are WTO members. Last December, Bhutan came out of the list.
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Fractures in global trade deepen as WTO musters only a small win (The Economic Times)
WTO conference ends in division and stalemate - does the global trade body have a viable future? (The Conversation)
A 2024 guide to customs compliance and cross-border trade (Trade Finance Global)
The 4th International Conference on Small Island Developing States (SIDS4) will be held in Antigua and Barbuda from 27 - 30 May 2024, under the theme “Charting the course toward resilient prosperity”. It will aim to assess the ability of small island developing States (SIDS) to achieve sustainable development, including the 2030 Agenda for Sustainable Development and its Sustainable Development Goals. The SIDS4 Conference will bring together leaders to agree on a new programme of action for SIDS with a focus on practical and impactful solutions and to forge new partnerships and cooperation at all levels. It will result in an intergovernmentally agreed, focused, forward-looking and action-oriented political outcome document.
From 15 December 2023 to 19 January 2024 a global online stakeholder consultation was held to solicit informal inputs from stakeholders related to the themes of the five interactive dialogues. A summary report is now available highlighting key messages and takeaways from the consultation.
Trade facilitation could make countries more resilient to climate impacts (Brookings)
Following the United Nations Climate Change Conference, or COP28, in Dubai in December 2023, two of our Brookings colleagues, Samantha Gross and Landry Signé, pointed out that the international community is failing to mobilize the resources to help countries improve their resilience to climate change. This is particularly pertinent as people in the worst affected communities are increasingly compelled to migrate in search of safety and stability. Apart from disasters and extreme weather displacing people, climate change is a “threat multiplier” that exacerbates instability, threats to security, and existing inequalities that drive people from their homes.
Given the mounting challenges of climate change, including large-scale displacement, Europe and the United States should consider extending preferential trade arrangements as an innovative policy approach to supplement the Loss and Damage Fund that was operationalized at COP28 to help the most vulnerable countries. By itself, the pledges committed to the fund are gravely insufficient to meet the actual costs of addressing climate damages and adaptation financing needs.
A Global Cash-Transfer Fund Could End Extreme Poverty (Project Syndicate)
For decades, the international community has grappled with the challenge of ending extreme poverty, which is the leading Sustainable Development Goal for 2030. Despite some progress, we remain far off track, with an estimated 700 million people still struggling to survive on less than $2.15 per day. Unlike in previous decades, however, we now have a solution that can be scaled up rapidly to accelerate the end of extreme poverty: direct cash transfers to the poorest households.
Direct transfers are powerful tools for helping individuals to take control of their lives and invest in their families’ well-being. That is why high- and middle-income countries are increasingly incorporating cash aid as a central part of their social safety nets. Still, it is estimated that less than 5% of the $200 billion spent annually on international development is allocated to cash transfers.
Gas touted as cleanest energy source in transition to sustainable fuels (Daily Maverick)
At their summit in Algiers, leaders of gas-exporting countries asserted their sovereignty over their reserves and their determination to promote the resource as affordable, accessible, sustainable and secure. The 20-member Gas Exporting Countries Forum (GECF) gathering came three months after COP28 in Dubai declared that planetary survival depended on a transition away from fossil fuels, with a goal of ending their use by 2050. The Algiers Declaration presents gas as the cleanest source of energy in the transition from fossil to sustainable fuels.
Empowering LDCs: Harnessing STI for Economic Growth and SDGs Achievement (BNN Breaking)
Amidst the backdrop of global advancements in science, technology, and innovation (STI), the world’s 45 Least Developed Countries (LDCs) find themselves at a significant crossroads. With challenges ranging from infrastructural deficits to educational barriers, these nations struggle to harness the full potential of STI, essential for their socio-economic transformation and sustainable development. This disparity not only impedes their progress towards the Sustainable Development Goals (SDGs) but also widens the gap between them and more developed regions, threatening to leave them further behind in the fast-paced global economy.
Accelerated by COVID and AI, Global Digital Landscape Remains Uneven (World Bank)
The COVID-19 pandemic brought about unprecedented acceleration of digital transformation across the globe – with spikes in data traffic, app usage, IT sector growth, digital business resilience, and much more. All countries saw a significant uptick in digital adoption, though the gains in low-income countries were not enough to keep the gap with high income countries from growing or to close the digital divide within their borders. In low-income countries, only one in four people are able to access the internet.
The World Bank Group’s new “Digital Progress and Trends Report 2023” provides a sweeping analysis of countries’ production and use of digital technologies – from digital jobs, digital services exports, and app development, to internet use, affordability, quality, and more. Gaps in internet speed, data traffic, and digital use are hampering digital gains for individuals and firms in low- and middle-income countries.
More action needed to tackle disinformation and enhance transparency of online platforms: OECD
As roughly half the world’s population prepares to vote in elections, a new OECD report offers the first baseline assessment of how OECD countries are upgrading their governance measures to support an environment where reliable information can thrive, prioritising freedom of expression and human rights, and sets out a policy framework for countries to address the global challenge of disinformation.
Facts not fakes: Tackling disinformation, strengthening information integrity emphasises the need for democracies to champion diverse, high-quality information spaces that support freedom of opinion and expression, along with policies that may be utilised to increase the degree of accountability and transparency of online platforms.
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Solar, battery, inverter imports surged to R70bn in 2023 as wind turbines recovered from two-year lull (Engineering News)
South African imports of solar panels, lithium-ion batteries and inverters climbed to a record $3.8-billion last year, or about R70-billion, while imports of wind turbines began to recover following a two-year lull, analysis compiled by Trade & Industrial Policy Strategies senior economist Gaylor Montmasson-Clair shows.
Imports in 2023 were double the $1.7-billion of 2022 and lifted the overall value of the three energy components imported over the ten years from 2014 to 2023 to above $10-billion. The analysis points to an extremely strong rise in solar-panel imports last year, which was also the country’s worst-ever year for loadshedding.
African experts meet to discuss auto industry standardisation (Engineering News)
South Africa is hosting the African Organisation for Standardisation Technical Committee 59 (ARSO/TC 59) this month to discuss technical standardisation within the African automotive industry. The four-day event includes the participation of technical experts from the automotive industry across continental national standards bodies.
ARSO/TC 59 is being held with the objective of reaching consensus on the adoption of international standards and harmonisation of standards for the region in support of the African Continental Free Trade Area (AfCFTA).
ARSO secretary-general Dr Hermogene Nsengimana says the established Strategy for the African Automotive Manufacturing Sector, within the framework of the AfCFTA, highlights the need of harmonised standards in tackling the challenge of imported vehicles, regional value chains, and the long-term goal of establishing a common external tariff for the sector.
Kenya to ‘fast-track’ Lapsset projects to woo Ethiopia (The East African)
Kenya and Ethiopia have agreed to fight insecurity, review tariffs and fast-track completion of infrastructure projects to facilitate seamless flow of cargo from Lamu to Ethiopia. The two governments on Thursday held a meeting during which Nairobi assured Addis Ababa of a functional Port of Lamu, with a superstructure, cargo yard, operational equipment, port workshop, warehouses, office space, and accommodation facilities. The Kenya Ports Authority (KPA) will rework port tariffs as Ethiopia puts in place plans to start using the port the month. The tariffs are one of the conditions Addis asked to be considered after Kenya assured them of security on the Lamu Port, South Sudan Ethiopia transport (Lapsset) corridor.
Uganda ready to sign Africa open skies plan (The East African)
Uganda is keen to sign the Single Africa Air Transport Market protocol, ending years of fence-sitting. Authorities in Kampala indicated this week that the Uganda will join the open skies regime in the next financial year.
“We are left with approval by Cabinet. Once that is done, we will be good to go,” said Fred Bamwesigye, director-general of Uganda Civil Aviation Authority (UCCA) at a meeting in Kampala. Mr Bamwesigye, who represented Works and Transport Minister Gen Edward Katumba Wamala, said Uganda’s reluctance to join the Single Africa Air Transport Market (SAATM) since its launch in 2018 was due to a need to shield its national carrier from competition.
Other considerations were invest in and build new infrastructure such as the Kabalega International Airport, to support traffic numbers resulting from liberalisation; improve Entebbe International Airport to requisite standards as well as reorient the regulatory regime, which was inward-looking.
Increase in Domestic Savings Can Unlock Rwanda’s Private Sector Potential (World Bank)
Maintaining Rwanda’s development trajectory and achieving the goals outlined in its Vision 2050 will require increased efforts to shift the drivers of economic growth towards a private investment-led model, given the country’s depleting fiscal space. This is according to the 22nd edition of the Rwanda Economic Update (REU): Mobilizing Domestic Savings to Boost the Private Sector in Rwanda, which underscores the critical link between private sector investment growth and domestic savings capacity.
Given the backdrop of sluggish productivity and limited fiscal resources, there is therefore a need for Rwanda to bolster private investment to adequately complement public spending and sustain economic growth. Rwanda’s financial sector, industry leaders and policymakers need to address certain challenges to maximize the country’s savings potential.
The Board of Directors of the African Development Fund approved, in Abidjan on 27 February 2024, $11.96 million Grant to speed up the establishment of the African Pharmaceutical Technology Foundation, headquartered in Kigali, Rwanda.
The financial support from the African Development Bank Group’s Regional Public Good window, together with a contribution of $1.93 million from the Rwandan government, is intended to implement the Regional Pharmaceutical Sector Support Project in Rwanda.
“The project should produce considerable benefits (outputs and outcomes) throughout Africa,” stated Aissa Touré Sarr, head of the African Development Bank’s Rwanda country office. “The leading-edge research and technological innovations of the African Pharmaceutical Technology Foundation should improve health care outcomes by providing access to advanced medicines and treatments, tackling prevalent diseases and contributing to the continent’s overall health resilience.”
Port of Mombasa receives longest-ever container ship (The East African)
The longest-ever vessel to call on the Mombasa port has berthed, targeting to pick up more than 5,000 cargo containers that would free up massive space at the main gateway. The Mv Kotka, currently sailing under the flag of Liberia and operated by Mediterranean Shipping Company, is 318 metres long and 42.92 meters wide. This is equivalent to three football fields end to end. The ship with 8,000 twenty-foot equivalent units (Teus) capacity docked in Mombasa from the port of Durban Thursday morning carrying 400 empty containers.
Meeting in Abidjan on 14 February 2024, the Board of Directors of the African Development Bank Group approved a loan of $117.9 million to the Democratic Republic of Congo to implement the Project to Support Governance and Skills Development in support of the Agriculture Transformation Programme (PTA).
“This project is to support agricultural transformation in the Democratic Republic of Congo through the improvement of sectoral governance and the quality of labour and by promoting entrepreneurship in agricultural value chains to support the agricultural transformation programme,” explained African Development Bank Director-General for Central Africa, Serge N’Guessan.
Tanzania and Ethiopia seal trade deals (The East African)
Tanzania and Ethiopia this week signed bilateral agreements targeting agriculture, trade, energy and air transport and aviation technology exchange. Tanzanian President Samia Suluhu Hassan and the visiting Ethiopian Prime Minister Abiy Ahmed on Friday witnessed the signing of agreements strengthen trade between the two countries.
Ministry of Foreign Affairs and East African Co-operation said on Friday that the two leaders agreed to deepen trade and bilateral relations that would create new opportunities for trade between Tanzania, with a population of over 61 million, and Ethiopia, with a population of more than 100 million people.
“Ethiopia is globally renowned for coffee and tea production, Tanzania’s tea and coffee are equally popular, therefore, how to access markets together will be an integral part of bilateral agreements during this visit,” Mr Makamba said.
A decade of logistics performance in Africa: Navigating trade and the blue economy (MyJoyOnline)
The Logistics Performance Index (LPI), a detailed gauge developed by the World Bank, has chronicled Africa’s trade logistics landscape since 2007, offering a snapshot of its performance in customs efficiency, infrastructure, international shipments, and the overall quality of logistics services. As Africa confronts the twin tasks of advancing its blue economy and maximizing the AfCFTA’s potential, the LPI not only reflects past and present performance but also serves as a beacon for what could be achieved through sustained focus and development in logistics.
Africa needs supportive policies and robust infrastructure to tap the limitless opportunities of Artificial intelligence to leapfrog its development, experts have said. Speaking at a panel discussion on ‘Fostering prosperity through policies on artificial intelligence in Africa’, on the sidelines of the on-going 56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM), experts agreed that Artificial Intelligence presented massive development opportunities for Africa if the right policies and infrastructure were in place.
Artificial intelligence, a fast-evolving technology that taps the intelligence of machines or software is transforming all social spheres globally. Research shows that the technology has the potential to contribute up to $15.7 trillion to the global economy by 2030, of which $1.2 trillion could be generated in Africa, representing a 5.6 per cent increase in the continent’s gross domestic product by 2030.
EAC Bloc Has Not Launched Common Currency – Secretariat (Taarifa Rwanda)
The secretariat of the East African Community (EAC) regional bloc has dismissed rumours circulating that a new common currency has been launched. A post on platform X (formerly Twitter), claimed that the bloc’s member countries have launched a common regional currency.
“The EAC Secretariat wishes to inform all our stakeholders that the Partner States’ journey to a single currency is still a work in progress. Kindly ignore any rumors circulating on social media on the unveiling of new banknotes for the region “the EAC stated.
South Sudan’s Economic Leap: EAC Membership Fuels Trade, Investment, and Growth (BNN Breaking)
South Sudan, the world’s youngest nation, is witnessing a substantial economic transformation, thanks to its strategic initiatives and international partnerships. With its recent membership in the East African Community (EAC), South Sudan has unlocked doors to tariff-free trade, attracting significant investor interest and paving the way for economic diversification beyond its oil-dependent economy.
The opening of the one-stop border post at Nimule, located approximately 200km from Juba, symbolizes the burgeoning trade and connectivity between Uganda and South Sudan. This development is crucial for trade via Mombasa, with expansion plans also exploring export routes through Djibouti. Furthermore, the government’s prioritization of the construction of 13 major highways is set to revolutionize the country’s trade and connectivity, with the Pagak Mathiang Malakal Road project, supported by a loan from the Ethiopian government, highlighting efforts to boost economic growth and provide alternative export routes for South Sudanese crude oil.
EAC, US seek stronger trade, investment ties (The Citizen)
Trade and investment ties between East Africa and the United States are set for a boost during a business summit scheduled to take place in Nairobi next month. The event will see US business executives and investors engage with government representatives from East Africa partner states on crucial areas of cooperation.
“They will engage in dialogue that will showcase opportunities that will foster increased two-way trade and investment between the two sides,” the East African Business Council (EABC) said in a statement.
During a similar summit initiated by AmCham with the EAC and other African countries held last year, business deals worth over $700 million were struck. “Such outcomes underscore the summit’s efficacy as a catalyst for advancing business partnerships and investment opportunities,” the regional business body added.
All eyes on Kenya, EAC after European parliament backs free trade pact (The Standard)
Lawmakers at the European Parliament this week voted overwhelmingly to ratify a new bilateral deal that will boost trade between Kenya and the EU bloc. The deal’s controversial negotiations have been years in the making and the landmark nod now paves the way for its implementation. The agreement will now enter into force after the Kenyan parliament also gives its consent.
In signing the deal earlier this year, Kenya risked the wrath of her East African neighbours who have been dithering to sign it. Kenya and the European Union (EU) bloc earlier this year finally signed the bilateral deal that will boost trade between the two regions.
Related: Kenya-EU trade pact to come into force ‘in 2-3 months’ (The East African)
Somalia finally joins EAC as the bloc’s 8th Partner State (EAC)
The Federal Republic of Somalia has finally joined the East African Community as the bloc’s 8th Partner State after officially depositing her instrument of ratification of the Treaty of Accession with the EAC Secretary General at a ceremony held at the EAC Headquarters in Arusha, Tanzania. Somalia’s Minister of Commerce and Industry, Hon. Jibril Abdirashid Haji Abdi, presented the Horn of Africa nation’s instrument of ratification to the EAC Secretary General, Hon. (Dr.) Peter Mathuki, completing the admission process in line with EAC Procedure for Admission of new members.
In line with the EAC Admission Procedure for new members, Dr. Mathuki subsequently pronounced the Federal Republic of Somalia (FRS) as a new member of the Community after receiving the instrument of ratification from the Hon. Abdi. Dr. Mathuki further said Somalia now has the green light to contribute in the development of a roadmap for her integration into the EAC.
CEMAC sees commodity price rise in Q4 2023 but faces bleak outlook for 2024 (Business in Cameroon)
Export commodity prices for the six CEMAC countries experienced a 1.3% increase in the fourth quarter of 2023, according to the Composite Commodity Price Index (CCPI) released on February 29, 2024, by the Bank of Central African States (Beac).
In the previous quarter, the increase was 8.3%. The central bank attributes this growth to rising prices in the agricultural market sector. “The index of prices for major agricultural products exported by CEMAC countries rose by 8.0% to 153.29. This increase, starting since the third quarter of 2022, correlates with ongoing uncertainties in the global economic situation, affecting international markets for products like coffee, cocoa, and bananas,” Beac explains.
ECOWAS is taking steps to address the impediments to the unhindered intra-community movement of persons, goods and services to improve the implementation of its flagship protocol and facilitate the realisation of the economic union of the 15-member community, the President of the Commission, H.E. Dr Omar Alieu Touray has said.
In an address to mark the launch of a new media engagement for the Commission on Wednesday, February 28, 2024, the President said that these include the introduction of two travel documents - the ECOWAS passport and a biometric identity card for intra-community travel for those without their national passports which has been deployed in six Member States. This is in addition to the phased construction of joint border posts to facilitate the processing of people at border posts with the support of the European Union.
SADC adopts technology to drive financial inclusion initiatives within the region (SADC)
The Southern African Development Community (SADC) Financial Inclusion (FI) Subcommittee convened a meeting in Johannesburg, South Africa on 19-20 February 2024 to review progress on the implementation of the SADC Strategy on Financial Inclusion and Small to Medium Enterprises (SMEs) Access to Finance 2023-2028.
The SADC Financial Inclusion Strategy and SME Access to Finance aspires an inclusive, stable, and innovative SADC financial system that empowers individuals and businesses to access and use quality financial services, to contribute to industrialisation, inclusive growth, and resilient, sustainable economic well-being in line with the SADC Vision 2050.
Financial Inclusion is a significant result area of the Support to Improving the Investment and Business Environment (SIBE) Programme, which is a five-year Programme, implemented by the SADC Secretariat and financed by the European Union under the 11th European Development.
Unpredictable global trade reveals the benefits of AfCFTA and intra-African trade as South Africa celebrates first AfCFTA export to Ghana (Business Tech Africa)
Amidst disruptions to traditional trade routes, unpredictable shipping times and soaring freight tariffs caused by the conflict in the Red Sea region, the opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-Africa trade are becoming apparent, says Standard Bank.
“Besides reducing the need to import goods from outside of Africa, the preferential tariff rates promote Africa’s growth. AfCFTA has the potential to boost South Africa’s economy and create new jobs by increasing economic participation.”
See also:
Cross-Border Traders in Zimbabwe Navigate Challenges, Eye AfCFTA Opportunities (BNN Breaking)
Traders await benefits of AfCFTA (African Business)
Experts propose advancing AfCFTA implementation as theme of the next Conference of Ministers (UNECA)
The next Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development (COM2025) will be held in Ethiopia in March 2025. At the closing of the Experts Segment of the Conference of African Ministers of Finance, Planning and Economic Development, on 1 March, the meeting proposed to hold COM 2025 in the Ethiopian capital, Addis Ababa on the theme, “Advancing the implementation of the Agreement Establishing the AfCFTA: Proposing Transformative Strategic Actions”.
In making the case for the theme, ECA Deputy Executive Secretary and Chief Economist, Hanan Morsy, said that inter-regional trade in Africa stands at only 13 percent, compared to 55% in Asia and 70% in Europe. Furthermore, we have witnessed disruptions in global supply chains due to global shocks, which has impacted on costs, trade flows, costs, and efficiency.
Three top priorities for Africa in the G20 (African Business)
Last week, the G20 Finance Ministers and Central Banks Governors gathered in Sao Paulo, Brazil. On the agenda was a multitude of issues, including the reforms of the global financial architecture, the state of the global economy, food security, development and equity, trade and investment, climate change, energy transition, the digital economy, among many others. In the course of 2024, the Brazilian G20 Presidency has scheduled a total of 120 meetings before it hands over the Presidency to South Africa.
2024 is the first year that the African Union is participating as a permanent member. The just-concluded African Union Summit in Addis Ababa, Ethiopia provided key guidance on the process of setting up the support structure around the AU’s participation in the G20. This process will be subject to further discussions among African Union member states. But the G20 agenda is moving forward and seizing this opportunity to already put forward AU proposals is important.
First, the AU can play an important role to advocate other G20 members to double efforts to address the challenge of debt distress in many low- and middle-income countries and address liquidity challenges head on. Second, the African Union Summit deliberations flagged several concerns by African countries regarding the reforms of the global financial architecture. Third, Africa’s fiscal challenges will increasingly arise from trade shocks. Discussions on inequality and development can therefore not be detached from trade.
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks (WTO)
The Ministerial Declaration underlines the centrality of the development dimension in the work of the WTO, recognizing the role that the multilateral trading system can play in contributing towards the achievement of the UN 2030 Agenda and its Sustainable Development Goals. DG Okonjo-Iweala emphasized the recognition by members of “the role trade and the WTO can play in empowering women, expanding opportunities for micro, small, and medium-sized enterprises (MSMEs,) and achieving sustainable development in its three dimensions — economic, social and environmental.”
WTO Decision Shields Diagnostics, Therapeutics from TRIPS Waiver Expansion, Bolsters Digital Economy (BNN Breaking)
This move, supported by the National Association of Manufacturers (NAM), underscores the importance of protecting intellectual property to ensure continued innovation and preparedness for future health crises. At the 13th World Trade Organization (WTO) ministerial meeting in Abu Dhabi, a pivotal decision was made not to expand the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver to include diagnostics and therapeutics.
WTO’s Abu Dhabi Declaration to empower least developed nations (Arab News)
The least developed countries are set to benefit from the Abu Dhabi Declaration at the 13th WTO Ministerial Conference, improving global supply chain access. Trade deals, aimed at fostering new agreements, will extend international trading system benefits to more nations, following intensive negotiations, as reported by the UAE’s official news agency, WAM.
Members have agreed to implement Special and Preferential Treatment for Sanitary and Phytosanitary Measures and Technical Barriers to Trade. This effort supports producers in the least developed countries, facilitating their global supply chain access, the WAM report stated.
The report added that the current measures of SPS constitute a staggering 90 percent of non-tariff trade barriers, posing a significant obstacle for smaller nations and being viewed as discriminatory. In a significant development for developing countries, ministers approved a decision responding to a 23-year-old mandate. The aim is to revamp special and differential treatment provisions for improved precision, effectiveness, and operational functionality.
Accelerated action for African LLDCs and LDCs needed to achieve sustainable development (UNECA)
Multiple crises, including the COVID-19 pandemic and the current geopolitical and global macroeconomic situation have resulted in poor economic progress and exacerbated the structural challenges of African Landlocked Least Developed Countries (LLDCs), putting them off track in meeting the Vienna Programme of Action for LLDCs (VPoA). This, according to experts meeting ahead of the March 4-5 ministerial segment of the Conference of African Ministers of Finance, Planning and Economic Development, “requires accelerated action for them to achieve sustainable development.”
Africa’s LLDCs contend with many development challenges due to their lack of direct territorial access to the sea, remoteness and distance from world markets. They face higher trade costs than their transit neighbours, limited infrastructure, undiversified economies and export markets. LLDCs fared poorly in health delivery, real GDP growth and infrastructural development.
The WTO just extended its moratorium on digital trade tariffs. Here’s why it will boost innovation and productivity (World Economic Forum)
Digital trade, from software sales to streaming movies, plays a bigger role than ever in the global economy. Its meteoric growth has renewed interest on the implications that this form of globalisation could have on the global economy, development opportunities, and jobs. A related question is how countries, especially developing economies, need to adapt their policies to the increasing digitalization of international trade.
The value of global trade in digitally delivered services reached $3.82 trillion in 2022, or 54% of total global services trade and 12% of total goods and services trade combined, and its average annual growth rate was 8.1%, outpacing both goods and other services. Trade through digital channels has several unique benefits beyond traditional gains from trade: it contributes to the digitalisation of all aspects of the economy; enables more efficient processes that boost productivity; promotes interconnectivity, communication, and hence the transmission of existing knowledge and technology as well as innovation; and fosters inclusion by reducing trade barriers for small firms and women-led businesses.
Visit tralac's WTO MC13 Resource page for more
UN Environment Assembly advances collaborative action on triple planetary crisis (UN Environment)
The sixth UN Environment Assembly (UNEA-6) concluded today in the Kenyan capital, Nairobi, with Member States delivering 15 resolutions aiming to boost multilateral efforts to address the triple planetary crisis of climate change, nature loss and pollution.
The UNEA-6 resolutions advance the work of Member States on management of metals, mineral resources, chemicals and waste, on environmental assistance and recovery in areas impacted by armed conflict, on integrated water resource management in the domestic sector, agriculture and industry to tackle water stress, on sustainable lifestyles, on rehabilitation of degraded lands and waters, and more.
The 2024 Assembly also held its first Multilateral Environmental Agreements (MEA) Day, dedicated to the international agreements addressing the most pressing environmental issues of global or regional concern, which are critical instruments of international environmental governance and international environmental law. UNEA-6 also welcomed youth to host their own environmental summit, which called for greater inter-generational equity. A Ministerial Declaration on the closing day affirmed Member States’ commitment to slow climate change, restore and protect biodiversity, create a pollution-free world and confront issues of desertification, land and soil degradation, drought and deforestation by taking effective, inclusive and sustainable multilateral actions.
Trade Drives Gender Equality and Development (IMF)
Gender equality is not only a fundamental right but an economic imperative. A considerable body of research shows that it makes economic sense for society to benefit fully from the skills and labor of the entire population, not just half of it. And it makes economic sense for men and women to receive commensurate rewards. For developing economies, the economic case for gender equality is even more compelling, for two reasons: the levels of inequality between men and women are higher, and the potential rewards from reducing the gender gap are greater.
So how can developing economies promote gender equality? International trade offers a promising path. Our research shows that trade has the potential to significantly boost women’s role in the economy, reduce inequality, and expand women’s access to skills and education. Countries that are open to international trade tend to grow faster, innovate more, improve productivity, and provide higher income and more opportunities to their people.
New Data Show Massive, Wider-than-Expected Global Gender Gap (World Bank)
The global gender gap for women in the workplace is far wider than previously thought, a groundbreaking new World Bank Group report shows. When legal differences involving violence and childcare are taken into account, women enjoy fewer than two-thirds the rights of men. No country provides equal opportunity for women—not even the wealthiest economies.
The gender gap is even wider in practice. For the first time, Women, Business and the Law assesses the gap between legal reforms and actual outcomes for women in 190 economies. The analysis reveals a shocking implementation gap. Although laws on the books imply that women enjoy roughly two-thirds the rights of men, countries on average have established less than 40% of the systems needed for full implementation.
Myanmar Eyes 2024 BRICS Currency Adoption, Joining Global Financial Shift (BNN Breaking)
This bloc, consisting of Brazil, Russia, India, China, and South Africa, has seen its influence grow with a combined effort to reduce reliance on the US dollar and enhance trade and investment among member countries. Myanmar is set to embrace the BRICS currency in 2024, aligning with global financial reforms spearheaded by the bloc’s initiatives like the New Development Bank.