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Commodities boom: SA’s current account and trade surpluses hit records in Q2 (Daily Maverick)
South Africa recorded its largest current account surplus ever in the second quarter of this year, widening to R343-billion from R262-billion in Q1. The trade surplus also hit a record high. The commodities boom is the main reason for this positive state of affairs against the backdrop of an otherwise frail economic recovery. Prices for a range of metals and minerals, from rhodium to iron ore, have been scaling historic highs this year as the global economy rebounds from 2020’s pandemic-induced contraction. That’s good news for resource-rich economies such as South Africa’s, where mining companies have been posting record results. Much of that money has been flowing to Treasury at a time when it needs every rand it can lay its hands on, while shareholders have reaped windfall dividends. For the South African economy more broadly, this can be seen in the current account, which forms part of a country’s balance of payments and is basically an accounting of its transactions with the rest of the global economy.
South Africa emerges as Namibia’s largest market for both exports, imports in July (China.org.cn)
Namibia’s trade composition by partner illustrated that South Africa emerged as Namibia’s largest market for both exports and imports in July 2021, according to trade statistics released Thursday by the Namibia Statistics Agency (NSA). South Africa emerged as the country’s largest export destination, with a share of 20.1 percent of all goods exported followed by Spain with a share of 15.1 percent, NSA statistician general Alex Shimuafeni said, adding that China, Zambia and the Netherlands formed part of Namibia’s top five export markets.
SA losing more and more farmers as agriculture faces tough challenges (News24)
The number of farmers in SA is declining, with a notable drop since the start of the Covid-19 pandemic. And those that remain - especially small-scale farmers - face ongoing challenges. Dairy farmers alone have dropped in number by more than two-thirds in the last 14 years, from 3 899 in January 2007 to 1 053 in January 2021. This is according to the latest in a series of Essential Food Pricing Monitoring reports issued by the Competition Commission. The latest report focused on the impact of the Covid-19 pandemic on food markets in the country.The report says small-scale and emerging farmers were particularly hard hit by poor yields and low productivity, and struggled to grow their operations. Barriers include access to finance, infrastructure and routes to market.
Economic Survey: Kenya’s GDP contracts by 0.3pc (The East African)
The Kenya National Bureau of Statistics has released the annual Economic Survey 2021 after a four-month delay. The report capturing the performance of the economy and the jobs market is usually released in late April or early May, ahead of the budget reading. However, this year, the statistics agency did not release the data, prompting Parliament to probe the delay. KNBS had earlier cited the late submission of data by some of the respondents in economic sectors.
Kenya GDP contracted by 0.3pc in 2020, hit by the economic fallout of Covid-19, compared to 5pc growth in 2019.GDP jumps to Ksh10.75 trillion ($97.8 billion) after rebasing of the economy to 2016 base year from 2009. The economy is projected to grow by 6pc this year helped by the manufacturing sector
Cross border traders appeal to govt for help (Graphic Online)
Ghanaian traders who travel to neighbouring countries to do business have appealed to the government to take steps to save them from the challenges they face at the borders and in the neighbouring countries. While some of them complained about human rights violations and the impact of the closure of land borders, others accused customs officers of extorting various sums of money from them at the borders before allowing them to bring their goods into the country. According to the traders, without immediate intervention and sustained efforts by the government, their businesses faced existential threat, which could inhibit the goal of having a robust trading system among African countries, as envisioned under the African Continental Free Trade Area (AfCFTA) agreement.
2021 US Ghana Business Forum: Government calls for strategic partnership to develop Covid-19 economic transformation (Myjoyonline)
Government is calling for a strategic partnership with the United States of America to develop a post Covid-19 economic transformation agenda which will mutually benefit the two countries. According to Trade and Industry Minister, Alan Kyerematen, this will enable the country to attract more investments from the USA to take advantage of the African Continental Free Trade Area. He explained that the country’s economy is being diversified from cocoa, gold and oil to pharmaceutical, energy and telecommunications, amongst others. Speaking at the virtual 2021 US Ghana Business Forum which opened yesterday, Mr. Kyerematen said “we [government] have launched a very aggressive programmes for industrial transformation which I believe offers strategic entry points for US investments into our country. Now these new strategic anchor industries that are part of this industrial transformation agenda includes the following; vehicle assembling and component manufacturing, garments, petro chemicals, agro industry, industrial chemicals including the process of industrial salt, Integrated bauxite and aluminium, iron and steel and the manufacture of machinery and equipment.”
Benin road project boosting transport (World Highways)
West Africa is to benefit from a road improvement project that will boost the country’s transport connections internally and also with its neighbours. The road links the cities of Banikoara, Djougou and Péhunco and will be resurfaced with asphalt. Financing has already been secured for the project, which is being provided by the West African Development Bank (BOAD), the African Development Bank (AfDB) and also the Benin Government. The work is expected to commence in October 2021, once the rainy season has passed. The project is costing US$236.7 million.
The city of Banikoura lies close to Benin’s borders with both Niger and Burkina Faso and this road provides an important transport link for both of these landlocked nations. Upgrading the road will lower transport costs while boosting safety, delivering significant economic gains for Benin as well as its neighbours, which also include Nigeria and Togo.
Africa
Tanzania ratifies Africa free trade area treaty (The East African)
Tanzania on Thursday ratified the agreement establishing the African Continental Free Trade Area (AfCFTA), effectively joining a pact connecting countries with a total gross domestic product of $3.4 trillion. Minister of Industry and Trade, Kitila Mkumbo, made the announcement via Twitter, noting the country has joined a market of 1.2 billion customers. Tanzania had not formally joined although former President John Magufuli signed on the agreement in 2019. After signing, parliamentary approval is required for ratification of the agreement. The ratification is an indicator of President Suluhu’s intention to return the country to regional integration.
Freight, logistics integration key to successful intracontinental trade (Engineering News)
Although the African Continental Free Trade Area (AfCFTA) agreement aims to achieve an economically integrated continent, with successful trading among African countries, the Trade Research Advisory tells Engineering News that this will prove challenging in the short to medium term. “Government officials and politicians are understandably optimistic about the AfCFTA agreement, but it is a big basket of promises. “The reality is that the practical and physical logistics of intracontinental trade facilitating infrastructure will, ultimately, be a core deciding factor in whether the aims as set out by the agreement will be achieved within planned time frames,” says Trade Research Advisory MD and international trade specialist Dr Martin Cameron. Access to finance is, first and foremost, required to achieve economic growth in African countries under the AfCFTA agreement, but the ‘nuts and bolts’ of logistics – such as existence of well-maintained and efficiently functioning bridges, roads, railway networks and ports – within and among African countries are bigger hampering factors than the much publicised tariff reduction negotiations and process. In addition, core utility infrastructure development related to power, water and education are also necessary.
Reform Africa’s Trade Agenda or continue to sink deeper in the claws of Neoliberalism (Citizen TV)
The global North is fiercely and actively coveting Africa for her resources, how prepared is Africa to counter this undeniable neo-liberalism of our times? Unless Africa, a continent of 1.3 billion people, redefines and re-strategizes how it is trading with the global North then the ensuing plunder and exploitation of her resources will continue unabated as has been the case in the pre- and post-colonial era. Re-defining her trade destiny means Africa must adopt three critical approaches: – Resist Western imposition, engage for continental integration and build alternatives that will sustain a solid economic base.
“The first thing we must do is resist with all consciousness the deliberate imposition of trade treaties and agreements by the West. Then we must engage as Africans the issue of our fragmentation which makes us economically not viable and easier to colonize in our current state of division. Third, we must build alternatives that can be articulated well enough to be implemented.
Lastly and more importantly, we must pause, rethink and focus on reforming our trade policy and systems from neoliberal embrace to a model grounded on the human element. This is how we can challenge the neo-liberalism adherents to their dogma and offer better benefits to the (African) people and the environment,” said panelist Brian Tamuka Kagoro, a Pan African Lawyer.
Experts Call For Development Of Transport Systems Among Others To Realize Benefits Of AfCFTA (News Ghana)
Maritime industry experts have called for the development of a robust maritime industry for effective trading within the single continental market. Africa has been opened up for free trading, since the beginning of 2021, with the introduction of the African Continental Free Trade Area, but experts believe much is left to be desired in terms of the readiness of countries to trade effectively within the single continental market.
Maritime law consultant and legal practitioner at Alliance Partners, Dr. Kofi Mbiah stated that since trade is inextricably tied to transport, failure to invest and develop hinterland transport systems will render developments in port infrastructure futile. “The transport connectivity in most sub-Saharan ports are poor. Go to Apapa port in Lagos, for example there is serious gridlock – about 5-10km of trucks lined up in a queue. You can’t build AfCFTA on that,” Dr. Mbiah cited.
AfCFTA, public-sector support vital for aerospace growth (Engineering News)
The African Continental Free Trade Area (AfCFTA), implemented at the beginning of this year, can potentially boost African aerospace manufacturing by improving export sophistication across Africa, states Commercial Aerospace Manufacturing Association of South Africa chairperson Themba September. “The importance of the AfCFTA is often overlooked – perhaps because it is so unconventional – but it is a potentially decisive element, as its scope exceeds that of traditional free trade areas, which generally focus on trade in goods. The AfCFTA includes trade in services, investment, intellectual property rights and competition policy, and possibly e-commerce.”
“For aerospace manufacturing, the prospect of improvement in export sophistication across Africa by enabling more countries to integrate regional and global value chains – and consequently increase the quality of exports – can result in an enhanced prominence of aerospace manufactured products being traded.”
He acknowledges that, while the African aerospace sector can benefit, it is unlikely that African manufacturers will be able to emulate the investments made by developed countries in their aerospace manufacturing capabilities.
Why paytech is the key to unlocking Africa’s new free trade zone (NewsDay)
EFFICIENT payment will be needed across the African Continental Free Trade Agreement (AfCFTA)’s 55 countries, with their varying financial systems. Africa’s emerging paytech sector has experience working across borders. Government-sanctioned paytech is a better trade facilitation option than unregulated cryptocurrencies. Optimistic, the world holds its breath for the AfCFTA as it seeks to redefine African markets. It will create uniform rules to guide trade, dispute settlement, investments, competition and intellectual property rights across the continent.
with the AfCFTA signed, implementation is the next critical hurdle. In the words of its secretary-general Wamkele Mene: “We have completed the easiest part — that is for 55 countries to negotiate a single set of rules. The most difficult part is implementation.”
Kenyatta urges African states to base food security policy on data (The East African)
Kenyan President Uhuru Kenyatta on Wednesday urged leaders in the continent to improve food security policies by basing decisions on data and science. The President spoke at the virtual African Green Revolution Forum (AGRF) summit at State House, Nairobi, on the same day he declared drought in some parts of Kenya as national disaster.
“Equally important to note is that our renewed drive anchors our food systems transformation agenda on data-driven decisions. “Armed with relevant and precise data, we are better able to make targeted interventions that address water-scarcity, climate change, land pressure, and the competition between subsistence food crops and export cash crops.”
Africa, President Kenyatta said, must make agriculture as attractive to children just as law or other careers are. “In order to overcome these negative perceptions and to show our children and youth the nobility and profitability of agriculture, we are elevating the place of agriculture in our schools by revitalising the 4-K-Clubs,” he said of Kenya’s efforts. “We are doing this because Kenya’s 31,218 primary schools and their enrolment of close to 10 million school-going children, offers a vast network through which knowledge about food and nutrition security can be boosted.”
Historic CARICOM-AFRICA Summit Plans to Strengthen Unity, Trade and Investment Between the Two Regions (PRNewswire)
History was made on September 7th 2021, when the inaugural CARICOM-Africa Summit was held virtually under the theme ‘Unity Across Continents and Oceans: Opportunities for Deepening Integration’. The meeting, which was delayed a year due to the pandemic, aimed at ‘Promoting closer collaboration between Africa Diaspora, People of African Descent and the Caribbean and Pacific region and institutions.’ Kenyan President Uhuru Kenyatta led the summit with leaders of 69 countries between Africa and the Caribbean. Among matters discussed were greater economic trade and investment opportunities between Africa and the Caribbean and solidarity in addressing global challenges, including climate change and the COVID-19 pandemic.
“Colleagues, we have it within our power to demand change in the international system and to fight for it and to make it happen. But only if we act harmoniously,” said President Kenyatta. “We are a population of approximately 1.4 billion people, with great natural and wealth-creating resources including oil, gas, agriculture, minerals, forestry, tourism, fisheries and much more.”
Absa leads the pack in support for SMEs through its Africa trade finance (CapeTalk)
Small and medium-sized enterprises (SMEs) are crucial to an economy such as SA’s no less so than the rest of Africa’s. The SME sector urgently requires optimal bank funding support to ensure its recovery from the pandemic and to adequately exploit the new growth opportunities presented by the African Continental Free Trade Area (AfCFTA), launched on 1 January 2021. “The AfCFTA is a new frontier and a potential game change for the continent, and one that stands to benefit entrepreneurs as much as the corporate sector,” says Doreen Fick, Head of Funded Wholesale Trade Finance products at Absa. “It is therefore vital that it in practice benefits SMEs and entrepreneurs across the continent and does not simply become the domain of big businesses. This is a massive opportunity for SMEs to grow their intra-Africa trade with the potential only limited by their access to trade finance.”
Africa grapples with surging food import bill (IPP Media)
Kalibata made the disclosure during the African Green Revolution Forum (AGRF) where she made the case for prioritising moving smallholder farmers from subsistence agriculture to profitable agribusiness. At the forum, a Deal Room—a matchmaking event seeking to mobilise $5 billion in agribusiness financing, was launched. Africa remains a net food importer with the food import bill outstripping export revenuers.
Africa’s exports of food and agriculture products are somewhere between $35 billion and $40 billion a year, and some $8 billion a year flows through intra-regional trade in these products, according to McKinsey & Company – a US-based management consulting firm. “We cannot develop this continent on the back of seven out of 10 people living as producers of food (farmers) who are facing high poverty,” Kalibata observed.
The African Development Bank Wednesday joined leaders of government and international organizations in calling for stronger partnerships to support Africa’s recovery from the Covid-19 pandemic at the first Egypt-International Cooperation Forum. Participants also urged greater cooperation with the private sector in the short term to secure more rapid vaccine access for Africans. Gender equality and climate action were also discussed.
Dr. Rania Al-Mashat, Egypt’s Minister of International Cooperation, highlighted the opportunities that have emerged from the Covid-19 pandemic to accelerate progress towards the 2030 Agenda, as well as how South-South cooperation can be exploited to foster enhanced flows and increased volumes of trade, as well as the exchange of solutions and experts, technology transfer, and dialogue on options for policy reforms.
“There is this common conviction of the importance of SDGs. We need to work more together to enhance complementarity between different multilateral institutions to achieve them,” she said.
AfDB pledges more support for EAC integration process (EAC)
The Executive Director of the African Development Bank (AfDB) for Kenya, Eritrea, Ethiopia, Rwanda Seychelles, South Sudan, Tanzania and Uganda, Mr. Cheptoo Amos Kipronoh, has pledged more support to Infrastructure, power connectivity and capacity building for the East African Community bloc.
Mr. Kipronoh said that investment in infrastructure, power connectivity and capacity building was the key to economic development and strengthening EAC integration. Mr. Kipronoh commended the EAC for being the most integrated bloc among the eight regional economic communities (RECs) recognized by the African Union. “The AfDB rates EAC very highly. You are truly on course to the Community’s intended objective of transforming the region into a single market for all factors of production for enhanced welfare and economic prosperity of the people of East Africa,” he said.
International
BRICS statement bats for multilateralism, reform of UN bodies (THE WEEK)
Asserting that effective and representative multilateralism is essential for building resilience against current and future global challenges, the BRICS grouping on Thursday recommitted itself to instil “new life” in the discussions on reform of the UN Security Council and keep working to revitalise the General Assembly.
In the Delhi Declaration, adopted after a summit between leaders of the member states of Brazil, Russia, India, China and South Africa, the influential grouping pledged its resolve towards strengthening and reforming the multilateral system to make global governance more responsive and agile, effective, transparent, democratic, representative and accountable to member states.
“The pandemic has reinforced our belief that effective and representative multilateralism is essential for building resilience against current and future global challenges, promoting well-being of our people and building a sustainable future for the planet,” said the declaration issued after deliberations between Prime Minister Narendra Modi, Russian President Vladimir Putin, Chinese President Xi Jinping, South African President Cyril Ramaphosa and Brazil’s Jair Bolsanaro.
They agreed that the task of strengthening and reforming the multilateral system encompasses making instruments of global governance more inclusive, representative and participatory to facilitate greater and more meaningful participation of developing and least-developed countries, especially in Africa, in global decision-making processes and structures, and make it better attuned to contemporary realities.
The leaders also asserted that the macroeconomic stability of the BRICS economies will play a major role in achieving global recovery and stability.
The least developed countries (LDCs) are vulnerable to exogenous economic, environmental and health-related shocks, such as the coronavirus 2019 (COVID-19) pandemic, due to the low level of development of their productive capacities. The fifteenth session of the United Nations Conference on Trade and Development (UNCTAD XV) will be held in October 2021 and the fifth United Nations Conference on the Least Developed Countries (LDC5) will be held in January 2022; both conferences will aim to seek ways and means of expanding productive capacities, critical to building socioeconomic resilience and enabling LDCs to achieve structural transformation and sustainable economic growth. In this policy brief, UNCTAD intends to shed light on the role of institutions in fostering productive capacities, and examines Institutions as one of the eight categories of the UNCTAD Productive Capacities Index.1 In the context of the formulation and implementation of policies and strategies in support of LDCs, recommendations are provided to support the building of stronger and more effective institutions, a prerequisite for fostering productive capacities.
Invest in technology today to power logistics solutions for tomorrow (Construction Week Online)
There’s no doubt about it – technology has not only changed the way we work and live, it’s also pushing boundaries in the way we do business. For instance, e-commerce has become the norm rather than an option today. We’re now used to the luxury of everything being just a click away or at our fingertips. With options like premier delivery services it is possible to receive an order within an hour of placing it. This was unheard of until about five years ago and in the years ahead, it is quite possible that there will be further disruption with the advent of technology and blurring of boundaries. According to Global Total Logistics Market Report the pandemic has had highly complex and nuanced effects on supply chains, despite which the sector is expected to grow by 4.7% through to 2024. All over the world, supply chains are being transformed by the development of a more digitalised environment, where value chains are connected, and distribution systems are increasingly intelligent, autonomous and automated. The pace of advancements here is rapid and has led to huge impacts in flexibility, efficiency and automation of distribution. The fundamental building blocks of Industry 4.0 are driving innovation in supply chain and as companies seek to make their supply chains more efficient, the adoption of these new technologies into operations is becoming more prevalent.
It’s tough to delink technology from all this. This has allowed companies in logistics and supply chain management – both legacy brands and emerging ones – to forecast their requirements, deploy effective solutions and put in place measures leading to better efficiencies. Here are some of the trends that will act as the torch-bearers for the future of this industry.
Innovative debt financing could close the digital access gap. Here’s how (World Economic Forum)
Digital connectivity is oxygen for opportunity. The opportunities made possible to those who are connected are rapidly expanding as services across every sector are increasingly provided and consumed online. These include healthcare, education and financial services. Yet, the global COVID-19 pandemic has laid bare the vast divide between those who are connected and the billions of people who are not. Increasingly, leaders in business, government and civil society have recognized the societal and economic imperative to invest in digital inclusion, and many have invested in projects designed to advance this objective.
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National
New Trade Idea for South Africa Is Debt Relief for Climate Goals (Bloomberg)
Politicians and academics are turning their attention to a new trade pitch for South Africa: debt relief in exchange for progress toward global climate goals.
Backers of the proposal hope creditors can be persuaded that climate change is a global problem so urgent that it’s worth forgiving debts in developing nations to help them pay for costly transitions to cleaner energy. While such initiatives have been tried before, they’ve never been realized on the scale that South Africa would be seeking.
The initiative would have multiple benefits for Africa’s biggest emitter of greenhouse gases. South Africa’s finances have been battered by its debt-ridden electricity company, Eskom Holdings SOC Ltd., which has required repeated bailouts and cash injections. The government is also seeking financing to switch Eskom from mostly coal-fired power to cleaner renewable energy. The price tag for that transition would be astronomical though, costing as much as 400 billion rand ($28 billion), according to Masondo, the deputy finance minister. Under his proposal, 146 billion to 213 billion rand of sovereign debt would need to be forgiven or deferred, allowing the government to give Eskom an equity injection, help it secure green financing and close polluting power plants.
SA records largest current account surplus on record (Fin24)
South Africa’s current account balance widened to its largest surplus ever at R343 billion for the second quarter, according to data released by the SA Reserve Bank (Sarb) on Thursday. The current account balance is considered an indicator of an economy’s health. It is the difference between credits - incomes and receipts - and debits - imports and payments. The current account balance, in monetary terms, was R261 billion in the first quarter. As a ratio of GDP, the surplus widened from 4.3% in the first quarter to 5.6% in the second quarter.
According to the Reserve Bank, merchandise exports increased to a “new all-time high” during the second quarter. Merchandise includes agriculture, mining and manufacturing exports. Imports increased by 3.4%, its second highest level since the second quarter of 2019.
Stats SA reported this week that on a quarter-on-quarter basis, exports lifted 4%, linked to the increase in trade of mineral products, precious metals and stones - as well as vehicles and transport equipment. The commodities boom has been helping bolster the trade account, Fin24 previously reported.
“The widening to a record high of the trade surplus in the second quarter was due to the increase in value of merchandise exports, especially mining exports,” the Sarb said. These commodities include pearls, precious and semi-precious stones, and precious metals - particularly platinum group metals, driven by higher rand prices for rhodium. The Sarb also noted increased export prices of coal, and to a certain extent, iron ore. Increases in imports is also linked to the increase in prices, the Sarb said.
Digitalisation offers opportunity to improve supply chains, manufacturing (Engineering News)
Digitalisation provides an opportunity to improve manufacturing and supply chain processes. Companies in these sectors have, as a result of the Covid-19 pandemic, had to quickly adapt to using new technologies, which has driven increased digitalisation efforts, speakers noted during a webinar hosted by SAP and OneConnect on September 8.
Kenya appeals to Uganda to sign EU trade pact (Independent)
Kenya has again appealed to Uganda for a joint strategy on accessing the European market through the stalled EU/EAC Economic Partnership Agreement (EPA). Kenya also wants to partner with Uganda in negotiating a trade deal with the US as the the AGOA, the American Growth Opportunities Act nears expiry in 2025. Betty Maina, Kenya’s cabinet secretary for trade says a joint approach would not only help Kenya and Uganda’s trade with the EU, but will also be a basis for a stronger East African Community. Maina also thinks that if a deal was struck by the two nations with the EU, it would also encourage the other EAC member states to join in and make the agreement a fully EAC deal. She was speaking at the ongoing Uganda-Kenya Agri Business Exhibition in Mombasa.
Maina said they committed and did resolve all the issues notified to us by the business membership groups from both countries, we signed a joint communique on the issues that were there then including elimination of non compliant taxes and charges. “Unless we have new issues, my concern today would be the mechanisms both countries are putting together to address the common market access challenges facing EAC products in European Union through EAC-EU-EPA and United States through the AGOA framework,” she said.
She says poorer countries will only overcome challenges of accessing international markets if they make joint approaches. “To overcome these market access challenges, it is important for both Kenya and Uganda to present these issues jointly or under the EAC framework,” she said, adding that the two countries produce similar products, which would be an advantage.
Kenya to improve business environment to woo foreign investors (China.org.cn)
Kenya plans to improve its business environment in order to attract foreign investors into the country, a senior government official said on Wednesday. Adan Mohamed, Cabinet Secretary for East African Community and Regional Development told journalists in Nairobi that the investment climate will be enhanced through redesigning service delivery processes to eliminate compliance burden for foreign firms relocating to Kenya. “By improving the business regulatory environment, Kenya will become the preferred investment destination in Africa,” Mohamed said. Mohamed said that some of the measures to be undertaken will reduce the cost associated with a wide array of critical business processes such as commercial litigation, company registration and paying taxes.
Government unhappy with Kenya’s ‘unfair’ trade restrictions (Daily Monitor)
Agriculture Minister Frank Tumwebaze has said Uganda can no longer afford to be diplomatic as East African states treat it unfairly, taking its liberal approach towards partners for granted. In response to questions regarding the new quota in which Kenya cut Uganda’s sugar imports under the Common Market for East and Southern Africa (Comesa), Mr Tumwebaze wondered why Kenya would be instituting quotes on Uganda’s sugar exports yet the country has a large consumption deficit. ”We are not demanding anything unimaginable but only seeking an honest and fair discussion with our long time trading ally - Kenya - so as to achieve a mutually rewarding position for our people. Talking of quotas of anything of a Ugandan product is even bad enough. Why quotas in the supposedly free East Africa Common Market?” he wondered, noting that even if Kenya allowed Uganda to export all its sugar to its market, its demand would remain unmet.
However, in a statement last week Trade Ministry Permanent Secretary Geraldine Ssali disputed the alleged quota reduction, noting that media reports had only considered allocations under the Comesa regime, which had given Uganda an allocation of about 18,923 tonnes for 2021. In a notice last week the Sugar Directorate of Kenya notified traders that it would only allow 18,923 tonnes of sugar imports from Uganda, a reduction from 90,000 tonnes, which had been agreed earlier on in April.
Firm taps gig economy to expand across borders (Business Daily)
The Kenyan gig economy is gathering momentum on the back of expanding start-ups and enterprises, pushing up demand for technology skills. Kenyans are also increasingly signing up for online gig work with local, regional and global companies that require high digital skills. “The need for technology skills is exploding. There is no new start-up that will go online without technology skills,” said Leul Girma, chief operating officer at Gebeyam, an African online talent marketplace. “Kenya is booming in terms of the number of start-ups coming up and for all of them the common denominator is the need for technology talent.”
The Kenyan digital economy has tremendously grown in the last few years. A report by Mercy Corps released in August 2019, showed online gig economy was concentrated in ride-hailing industry and online rental such as Airbnb, while the online uptake of professional services offered by gig workers was very slow.
AmCham Ghana US-Ghana Business Forum - Remarks by Ambassador Sullivan (US Embassy in Ghana)
The U.S. and Ghana share a longstanding, strong, and dynamic relationship. We work together on a broad spectrum of issues, including public health, education, entrepreneurship, security, and perhaps most important for this audience, building business relationships. American businesses and investors deepen the ties between our two countries. We greatly appreciate the leadership of the American Chamber of Commerce in Ghana in advancing this aspect of our long-term partnership. There are well over a hundred U.S. firms operating in Ghana. From the development and exploration of major oil fields by Kosmos Energy to the transformation of healthcare delivery by Zipline, which transports lifesaving medical products and vaccines to remote areas by drone, companies are finding success in Ghana and contributing to prosperity in both our countries. American innovators are eager to partner with Ghanaian businesses across a wide range of industries that support their work, from logistics to raw materials, and much, much more.
I am very pleased that despite the pandemic, this year several well-known American companies and brands have chosen Ghana as a market for growth: Twitter announced in April that it will open its West African headquarters here; the Fareast Mercantile Company recently opened a new Estee Lauder cosmetics store as well as two Domino’s pizza franchise stores in Accra; and in May, United Airlines reopened its direct non-stop route between Washington, DC and Accra.
As Africa’s economy, and economies around the globe, dust themselves off from the effects of the pandemic, the opportunity is ripe for the African Continental Free Trade Area to deliver on its objective to expand intra-regional trade and capture new foreign direct investment – with Ghana in the lead as host of the Secretariat. The AfCFTA is a game changer not only for doing business across the continent, but also for how the world thinks of Africa. And Ghana is well positioned to capitalize on the new economic synergies and opportunities for growth that AfCFTA can bring to the continent.
Ghana Remains Favourite Destination For Investment - Foreign Minister Assures EU Envoy (Peace FM Online)
Ghana remains a favourite destination for investment in Africa, Madam Shirley Ayorkor Botchwey, Minister of Foreign Affairs and Regional Integration has assured Mr Irchad Razaaly, Ambassador-Designate of the European Union (EU) to Ghana. In this regard, the Minister highlighted the political stability, open democratic values, free media and vibrant civil society which Ghana enjoys. Madam Ayorkor Botchwey stated this when she received the Open Letters of the EU Ambassador-Designate in Accra.
The Minister alluded to the fact that the EU was Ghana’s largest multinational development trade partner. She reiterated Ghana’s ready business climate, indicating that Ghana remained an important Foreign Direct Investment (FDI) destination on the African continent as in 2017, it ranked 7 out of 54 countries
Ministry suspends more than 80,000, revokes 520 licenses & sues 2,230 businesses; issues warning against price hiking (Addis Standard)
The Ministry of Trade and Industry said it has taken actions against more than 80,641 businesses that have made improper price hikes and participated in illegal activities. The Ethiopian Press Agency (EPA) quoted Communications Adviser to the Minister of Trade and Industry of the Federal Democratic Republic of Ethiopia, Wondatir Mekonnen, as saying, “Action is being taken against businesses involved in illegal activities to reverse the success of the law enforcement campaign.” According to Wondatir: “Action is being taken against those who support the ‘terrorist group’ by concealing dollars and products, and engaging in improper and unreasonable price increases.”
Nigeria’s Exports to Africa drops by 25% in H1 2021, Despite AfCFTA Aspirations (Proshare Nigeria)
Nigeria’s exports to Africa fell by 25% in H1 2021 Y-o-Y; this is according to foreign trade data released recently by the National Bureau of Statistics (NBS). The fall in African exports was despite the African Continental Free Trade Agreement (AfCFTA), which started in January 2021.
Analysts had expressed optimism about the country’s trade prospects under the free trade agreement, expected to increase intra-African trade by 50% in 2022. Meanwhile, total merchandise trade, which steadied at N12.03tr in Q2 2021, saw an increase of 88.71% Y-o-Y. The rise in trade merchandise came about because of sharp growth in exports, which soared by 26% Y-o-Y. Compared to the first three months of the year, Total trade increased by 23% from N9.75tr in Q12021 to N12.03tr in Q22021. Meanwhile, the country’s import bill rose by 1.45% from N6.85tr in Q1 2020 to N6.95tr in Q2 2020. The rise occurred as exports rose by 74.7% from 2.9tr in Q12021 to 5.07tr in Q22021.
Analysis of the trade data showed that while exports accounted for N6.95trn (57.78% of total trade), the complementary 42.22% valued at N6.95trn was contributed by imports bringing trade deficit for the period to N1.87trn. Nigeria had recorded a trade deficit of N3.94trn in Q1 2021, indicating a -52.5% reduction in trade deficit Q-o-Q. Together, imports rose year-on-year (Y-o-Y) by 60% from N8.59trn in H1 2020 (during the pandemic) to N13.8trn in H1 2021. Exports rose in the same period but by only 26%. Expectedly, the trade deficit rose year on year by 157% from N2.25trn in H12020 to N5.81trn in H1 2021
Ethiopia makes plans to become Africa’s clean energy hub (The Africa Report)
Of those projects, 16 are hydro-power, 24 wind, 17 steam, and 14 are solar, making the model arguably one of the world’s biggest policy shifts towards clean energy and potentially building Ethiopia into a leader in clean energy in Africa. At the same time, Ethiopia will bolster its electricity generating capacity from the current 4,200 MW to around 35,000 MW by 2037. The East African state is inching closer to commissioning its controversial Grand Ethiopian Renaissance Dam (GERD), which at 6,000 MW, will be the largest hydroelectric power plant in Africa, as well as the 8th largest in the world. Upon completion, the dam will double Ethiopia’s electricity generation. However, it is also expected to reduce the flow of the Nile flow to Sudan and Egypt during reservoir filling – a source of friction with its downstream neighbours.
UK-Liberia Chamber of Commerce holds Trade & Investment Dialogue (The New Dawn Nigeria)
The UK-Liberia Chamber of Commerce in London is pleased with the outcome of its Round-table on UK-Liberia Trade & Investment Opportunities which was held on Thursday, September 2nd.
The Executive Director of Stronghold Global Finance UK – Matthew Goddard, stated that “investment inflows come from supply chains being in-place, Liberia needs to do more of exports than imports, whether in Agriculture, Fisheries or Scrap shipping, to facilitate more interests, and that is what Stronghold Global Finance is looking to follow, serving as a bridge for funding of infrastructure projects across the continent.
The Deputy Minister of Commerce and Industry of Liberia, John D. Wolo, Stated that “post COVID-19, the Government of Liberia is actively seeking a range of investments in various sectors, including Agriculture, manufacturing, energy, and water. The ministry of commerce and industry is currently working to increase trade, and Liberia has a lot of advantages for investors seeking inward entry.
The Director of Global Business Network, British Chambers of Commerce, Anne-Marie Martin, stated that “Liberia remains one of Africa’s most attractive and emerging markets for British Investments”.
Towards attracting foreign direct investment, promoting and accelerating economic growth, the ministry of commerce along with its economic management team is working to utilize the free zone enacted in 2017 by President Geroge Weah.
Trade and investment incentives are anchored on the accessibility of loans in Liberia, as there are no real protectionist measures, whether, on the basis of regional or geopolitical consideration, banks are open to providing finance.
Africa
AfCFTA widens e-commerce opportunity for regional businesses (Chronicle)
THE African Continental Free Trade Area (AfCFTA) presents a window of opportunity for regional businesses and public entities to harness widening digital or electronic trading gains. Electronic (e) commerce has recently become a huge part of the global economy with businesses riding on digital resources to sell their products or services online. The outbreak of Covid-19 and the subsequent lockdown measures has given e-commerce higher impetus, as businesses were able to remain operational, taking advantage of the ability to reach more customers through contactless means than traditional retail. With so many people migrating to online and projected to make their purchases remotely, experts view e-commerce as the fastest-growing retail market. The operationalisation of the AfCFTA in January this year has come in handy for those businesses with a keen focus on digital trading.
Zimbabwe is already seized with the idea with the Government exploring the possibility of introducing mobile addresses and using drones for courier deliveries, among other electronic substitutes for the country’s post offices in line with global trends.
Inter-regional payments system crucial for AfCFTA success – Osinbajo (Vanguard)
The Vice President, Prof. Yemi Osinbajo, has said that the development of an efficient inter-regional payments system aimed at facilitating ease of cross-border payments is essential to the successful implementation of the African Continental Free Trade Area (AfCFTA) agreement. This is even as business mogul, Aliko Dangote, counselled that the best approach to achieving Ease of Doing Business is for the government to prioritise removal of barriers to competitiveness. Osinbajo noted that foreign currencies have been mostly used for payments for intra-Africa trade which constrains the amount of trade that takes place because most African economies face foreign exchange constraints.
EAC ombudsman to iron out trade rows (Business Daily)
A new regulator or ombudsman for regional trade disputes with powers to investigate and address unfair trade practices and subsidies will begin operating at the end of this year. East Africa Community (EAC) Secretary- General Peter Mathuki said the Trade Remedies Committee (TRC) will assist businesses in the bloc’s five-member States when they have concerns over unfair trade deals from foreign rivals. Spats among member States have in recent times almost paralysed trade and led to huge losses incurred by traders. “We are in the process of setting up the Trade Remedies Committee to deal with matters including rules of origin, anti-dumping measures and subsidies. It is our hope that it will be in place before the end of the year,” Mr Mathuki said.
Experts had warned the delay of the EAC to effect the TRC was negatively affecting the business community, prolonging resolution of trade disputes and impacting on intra EAC trade.
Data Centre Operators Restate Commitment to Grow Africa’s Digital Infrastructure (THISDAY Newspapers)
Leading data centre operators across Africa are investing massively in expanding their footprint to power the explosive growth in data consumption and digital services fuelled by the COVID-19 pandemic. The investments will ensure that large enterprises delivering services across Africa, and global Content Delivery Networks will be able to provide seamless and uninterrupted services to their subscribers without incurring the costs of building their own data centres. This was revealed at the recently concluded plenary session at the International Telecoms Week 2021, themed: “Explore the growing Data Center ecosystem in West Africa,” sponsored by MainOne.
S. Sudan joins Kenya and 47 other countries as a member of ATU (Kenya Broadcasting Nigeria)
The African Telecommunications Union (ATU) has welcomed its 49th member state after the Republic of South Sudan was officially admitted into the Union through an announcement made in Nairobi Kenya at the ATU Headquarters. South Sudan will be joining 48 other African countries and 54 ICT companies under the ATU umbrella. As a specialized agency of the African Union in the field of telecommunications/ICT, ATU represents its members’ interests at global decision-making ICT conferences and provides a forum for stakeholders involved in ICTs to formulate effective strategies to improve access to information infrastructure and services in the continent.
Cybercrime, A barrier to Africa’s thriving digital economy (UNECA)
Cybercrime is one of the top risk factors likely to jeopardize Africa’s economy especially at this time when the continent is transitioning to E-commerce under the Africa Continental Free Trade Area (AfCFTA). That’s according to panelists at a Book Talk hosted by the Economic Commission for Africa (ECA) on 2 September 2021 The “Book Talk” was jointly organised by ECA’s Knowledge Management Section and the Information and Communications Technology Services Section (ICTSS) in collaboration with the Communications Section under the theme “Dangers/Risks of Cybercrime to E-Commerce in Africa”.
“Many domestic regulations on the internet are being enforced without paying due consideration to the global and universal nature of cyberspace, cyber security and its relevance for e-commerce,” said Almoustapha Cisse, ICTSS Chief, adding that cybercrime has become a big issue in the world because of emerging technology and high internet penetration on the continent.
Redirecting Attention to Domestic Gas (BusinessGhana)
Intra-African gas trade models such as the West African Gas Pipeline should be adopted in other emerging natural gas regions such as SADC and CEMAC, as they represent fundamental opportunities for enhanced domestic gas utilization and monetization. As a widely available resource in Africa and comprising the ideal transitionary resource in the transition to cleaner energy sources, natural gas has seen an influx of investment and development in recent years, with many stakeholders hoping to use the resource as a catalyst for enhanced energy sector and economic growth. With emerging natural gas markets in Nigeria, Mozambique, Senegal and Tanzania offering new energy sources for regional actors, and the African Continental Free Trade Agreement (AfCFTA) ensuring lucrative trade opportunities across the continent, attention is turning to regional distribution, with models such as the West African Gas Pipeline (WAGP) taking the lead.
Comprising a 681km natural gas pipeline, the WAGP is the first regional natural gas transmission system in sub-Saharan Africa, linking Nigeria’s gas-rich region of the Niger Delta to neighboring countries Benin, Togo and Ghana. With over 200 trillion cubic feet (tcf) of natural gas reserves in Nigeria, and growing demand across the entire West African region, the WAGP enables the transportation and distribution of critical gas reserves from gas-rich countries to high demand markets, establishing a viable gas network that will accelerate regional energy access.
Kagame rallies African leaders on sustainable food systems (The New Times)
President Paul Kagame has challenged African leaders to commit to the implementation of the long discussed ideas for the transformation of food systems and livelihoods that depend on them. He was addressing the Alliance for Green Revolution in Africa (AGRA) Presidential Summit hosted by President Uhuru Kenyatta of Kenya, on September 8. Some 35 per cent of the world’s hungry people are in Africa, and yet 70 per cent of the continent’s adults work in agriculture and agribusiness. “If they aren’t doing well then Africa isn’t doing well,” Kagame said, as he made the case for equitable and affordable access to food for all.
He also touched on the daunting challenges of climate change, which continue to undermine food production on the continent. With stakes very high when it comes to climate change, Kagame has advocated for a common African voice on the global stage.
Global leaders stressed the critical urgency of climate adaptation when they came together in Rotterdam, the Netherlands, on Monday at a meeting of the Friends of the Global Center on Adaptation (GCA). The agenda was the acceleration of adaptation solutions ahead of November’s United Nations global climate summit, COP26. The leaders underlined the imperative for all countries to step up climate adaptation initiatives while mitigating carbon emissions in the global effort to combat climate change.
More than fifty leaders from the international climate and development community impressed the need to forge a clear “adaptation acceleration imperative for COP26”. The meeting concluded with a communiqué adopted in the presence of the Dialogue’s co-conveners
In August, the UN’s Intergovernmental Panel on Climate Change published its most comprehensive assessment report ever, issuing a somber warning that planetary heating could reach 1.5°C in the next decade, as climate impacts worsen.
Verkooijen stressed that adapting the world to the climate emergency was essential for world safety. “We are now living in the eye of the storm…From now on we are fighting a battle on two fronts: we have to fight to slash emissions while investing the same level of energy to adapt to a global climate emergency,” Verkooijen said. While Africa is responsible for a mere 5% of global emissions, the continent bears a disproportionate negative impact of climate change. This includes changing rainfall patterns, droughts, floods, and other natural disasters. They affect agriculture and reduce food security. The leaders agreed that action on climate adaptation was even more urgent in the wake of the Covid-19 pandemic. “We need the world to come together and be very specific... We should see this as a combination of opportunities that should mobilize us,” Timmermans said. “Adaptation and mitigation are two sides of the same coin.” Addressing the financing aspects of climate adaptation, Adesina told participants that African countries had to make climate adaptation a key element of their recovery plans if they are to build back better from the Covid-19 pandemic.
COMESA To Hold 8th Annual Research Forum (COMESA)
The COMESA Secretariat will hold the Eighth Annual Research Forum virtually on 13-16 September 2021 due to COVID-19 restrictions. The theme for this year’s Forum is “Rethinking Trade and Doing Business in the Wake of COVID-19 Pandemic”. The theme has been motivated by the shock triggered by the COVID-19 pandemic which has plunged the global economy into a deep recession comparable only to the 2008 financial crisis and the Great depression of the 1930’s. According to trade experts, economic disruptions caused by COVID-19 resulted in an unprecedented decline of international trade in 2020. The subdued trade volumes reflect in part, possible shifts in supply chains as firms restore production to reduce vulnerabilities from reliance on foreign producers. For the COMESA region, disruptions in services supply have a broad economic and trade impact due to the sector’s role in providing inputs for other economic activities, including facilitating supply chains and trade in goods.
What is China’s role in Africa’s environmental degradation? (Quartz Africa)
China became the largest source of construction financing for infrastructural development at the turn of the 21st century. While legal systems vary in content or interpretation, a company theoretically is bound by both laws of its home country and the host country and the growing body of international law. In other words, a national firm must legally only be concerned by host country regulations but organizations operating in different countries must understand and comply with laws of both domestic and foreign countries where they operate. An unintended consequence of more stringent regulations on pollution globally is how firms relocate production to places with looser environmental regulations – a phenomenon known as the pollution haven hypothesis. There is evidence that host countries with “more relaxed” environmental regulations attract FDI from polluting industries.
Are African countries incentivized to have lax environmental regulations to attract FDI from China – a major funder of the region’s large scale infrastructure projects? According to China Africa Research Institute—a Johns Hopkins University research body—in 2019, the gross annual revenues of Chinese companies’ engineering and construction projects in Africa totaled $46 billion accounting for ~27% of global revenues for these companies. The top five countries for investment in such projects in Africa were Algeria, Nigeria, Kenya, Egypt, and Angola.
Dubai’s Food And Beverage Trade With Africa Reaches $13.9 Billion Over 2015-2020 Period (Al-Bawaba)
Dubai’s food and beverage trade, excluding tobacco, reached $13.9 billion during the 2015-2020 period, while the sector has been identified as a key factor expected to drive bilateral trade in the short-term, new Dubai Chamber analysis has revealed. In 2020, the value of food and beverage trade (excluding tobacco) between Dubai and Africa amounted to $2.4 billion in food and beverage trade, marking a growth rate of 18 percent compared to the previous year and the highest level since 2017.
The analysis was released in the lead up to the 6th Global Business Forum Africa, organised by Dubai Chamber in partnership with Expo 2020 Dubai. The study highlighted Dubai-Africa F&B bilateral trade trends by region, as well as the potential avenues for future cooperation. In 2020, North Africa accounted for the largest share of Dubai-Africa F&B trade, reaching a value of $971.2 million, followed by East Africa ($828.3 million). Southern Africa ranked third among Dubai’s largest food and beverage trading partners, with a total value of $362.9 million.
International
Economic recovery and growth beyond COVID (UNDP)
These are extraordinary times. We face at the same time a pandemic, a climate emergency, political polarization, continued conflicts, natural disasters and widespread humanitarian needs. The pandemic not only disrupted the global supply chains and slowed down the world economy, but it has also caused a severe reversal in well-being. The socio-economic impact of COVID-19 has been felt in every corner of the world, by people from all walks of life. Various data and analyses show that economies that could afford to provide universal social assistance, generous social insurance, and adequate labor market and SME support (in the form of tax deferrals, subsidies and liquidity support) have done so, with remarkable mitigating effects, largely neutralizing income losses, job losses and poverty increases. However, most developing economies have not been able to afford full mitigation.
While we cannot sum-up women in numbers, gender data are important (UNCTAD)
Gender gaps and biases continue in all spheres of life – wages, access to the internet, access to medicines, and medical research, just to name a few. Yet, data are not systematically collected and produced to understand these many gender gaps, especially those that persist in economy and trade. Lack of data can lead to misguided policy measures or unintended impacts. It may also reinforce gender bias and stereotyping. Sometimes lack of data can be a useful way of keeping a debate closed and preventing new perspectives. Assessing gender dimensions has not been part of the traditional toolbox. In many spheres, this has been neglected, including in global public health and international trade. Yet, this is changing, and we simply cannot afford not to invest in gender data if we are committed to fostering a more equal world through inclusive policies.
President Ramaphosa to participate in BRICS Summit (SAnews)
President Cyril Ramaphosa will lead the South African delegation during his participation in the virtual 13th BRICS Summit scheduled for Thursday, 9 September 2021. The summit will be chaired by India’s Prime Minister, Narendra Modi, as Chair of BRICS for 2021, under the theme, ‘BRICS@15: lntra-BRICS Cooperation for Continuity, Consolidation and Consensus’.
“Leaders will be focused on strengthening intra-BRICS relations and mutually beneficial cooperation across the BRICS pillars of cooperation, namely, political and security, economic and finance, social, and people-to-people cooperation,” the Presidency said ahead of Thursday’s summit.
The conference will also adopt the BRICS 2021 New Delhi Declaration, which emphasises the priorities of the Indian Chairship in 2021, namely reform of the multilateral system, counter-terrorism cooperation, the application of digital and technological solutions for the achievement of the Sustainable Development Goals and enhancing people-to-people exchanges.
For this year’s summit, the Presidency said some of the cooperation outcomes include a revised Action Plan for Agricultural Cooperation of BRICS Countries, Counter-Terrorism Strategy Action Plan, Action Plan for implementing the Strategy on BRICS Economic Partnership, and revised BRICS Action Plan for Innovation Cooperation.
“South Africa’s membership of BRICS enables the country to employ additional and powerful tools in its fight to address its domestic triple challenges of unemployment, poverty and inequality through increased trade, investment, tourism, capacity building, skills and technology transfers, particularly to address its post-pandemic economic recovery,” said the Presidency.
Regional countries reaffirm commitment to closer Africa-Caribbean unity (Jamaica Observer)
Guyana Tuesday called on African and Caribbean countries to collectively advocate for greater financial flows so as to allow them to adapt to the impact of climate change. “Climate change is a serious threat which is exacerbating and further weakening us. Developing countries like Guyana and our sister states in the Caribbean and Africa are facing great difficulties. We have not been historically responsible, but we suffer the greatest and are least equipped to respond,” President Irfaan Ali told the first ever Africa-Caribbean Community (Caricom) summit.
Related News
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National
South African economy records fourth consecutive quarter of growth (BusinessTech)
The South African economy recorded its fourth consecutive quarter of growth, expanding by 1.2% in the second quarter of 2021. This followed a revised 1.0% rise in the first quarter of the year. The transport, storage and communication industry increased by 6.9% in the second quarter and made the largest contribution to Gross Domestic Product (GDP) growth, namely 0.5 percentage points, data from StatSA showed.
The trade, catering and accommodation industry increased by 2.2% and contributed 0.3 of a percentage point to GDP growth. Increased economic activity was reported in wholesale, retail and motor trade, and there was increased spending on catering and accommodation services.
The agriculture, forestry and fishing industry increased by 6.2% and contributed 0.2 of a percentage point to GDP growth. The increase was mainly due to increased production of field crops, horticulture and animal products, Stats SA said.
South Africa’s updated NDC climate pledge to be released ‘very soon’ (Engineering News)
Forestry, Fisheries and the Environment Minister Barbara Creecy reported on Tuesday that South Africa’s revised Nationally Determined Contribution (NDC), which is to be deposited with the United Nations Framework Convention on Climate Change later this year, is close to being finalised and will be presented to lawmakers “very soon”. In a briefing of the Portfolio Committee on Environment, Forestry and Fisheries, on the country’s preparations ahead of the COP26 climate negotiations scheduled for Glasgow, Scotland, in early November, Creecy reported that her department was in the process of synthesising the comments received during the public comment period, including those made by the Presidential Climate Commission (PCC).
Kenya sees tourism returning to normalcy in 2 years (Business Daily)
Kenya is launching a robust marketing abroad to lure more regional and international tourists whose numbers have slumped due to Covid-19 travel restrictions. Tourism Cabinet Secretary Najib Balala assured international tourists that Kenya has invested heavily in the vaccination drive to keep both its citizens and visitors safe.
“We cannot ignore the international market ... it has its dynamics and advantages. We have heavily invested in domestic market tourism, Kenya has a thriving domestic market. Kenyans have been supporting the sector but we need to revive international market,” said the CS who spoke during an interview from Cape Verde.
“2024 is the time tourism will go back to normal. Health is going to be the first agenda in everyone’s mind when travelling so we need to vaccinate our people so that travellers can feel Kenya is safe,” he said. The UK is a top tourism source market for Kenya.
Current account steady despite higher import bill on remittance growth (Business Daily)
Kenya’s current account deficit has remained steady at 5.4 percent of GDP in the 12 months to July, as higher remittance and horticulture earnings balanced out lower service receipts and a rising import bill. Central Bank of Kenya (CBK) data show the current account—which measures inflows and outflows of hard currency—remained unchanged in the month. It was, however, higher in May at 5.5 percent, but CBK expects it to end the year at 5.2 percent.
A strong growth in imports as domestic consumption and production continues to recover has also weighed on the current account, with petroleum, food and industrial goods imports going up significantly this year. Food imports for instance hit a record high of Sh103.34 billion in the six months to June, a 13.6 percent increase on the corresponding period last year. Higher remittance and agriculture export earnings have however helped temper the widening of the deficit.
Kenyan truck drivers call off South Sudan boycott (Nation)
Kenyan truck drivers say they will resume cargo transport to South Sudan after a two-week boycott over insecurity on the country’s highways. This comes after the South Sudan government, which heavily depends on foreign supplies, assured the truckers of beefed-up security along the Juba-Nimule Highway. It is along this key road that several drivers were recently killed and their trucks torched by unknown gunmen, sparking the boycott.
On the government’s part, South Sudan Deputy Foreign Affairs and International Cooperation Minister Deng Dau Deng told local reporters on Monday that the deal was reached after several negotiations. He, however, didn’t specify whether it was a written agreement and if so, which countries had signed.
The Juba-Nimule highway connects Juba to the border with Uganda, the main route Kenyan drivers use to ferry goods to South Sudan. The highway is notorious for ambushes and illegal roadblocks by some of the militia groups in South Sudan.
South Sudan Freight Forwarders Associations chairman, Mr Emmanuel Kachoul Mayen, reckons the rebels’ motive is to disrupt the supply chain from Mombasa port to South Sudan and to discourage the business community and people of South Sudan who use Mombasa Port as their port of preference.
KPA seeks Sh17.4bn for Lamu port works (Business Daily)
The Kenya Ports Authority (KPA) says it requires Sh17.4 billion to buy equipment and complete the construction of the two berths at the port of Lamu. Tender documents show that the KPA targets borrowing Sh12.4 billion from local and foreign banks, of which Sh3.2 billion will be used to complete construction works at the port that is not yet fully operational.
The launch of the Lamu Port had been delayed thrice over the past two years due to funding challenges and incomplete construction of all three berths. As a result, it has only been able to attract ships that have their own gear for ship operations and roll-on/roll-off shipping like motor vehicle carriers as opposed to container shipping. The KPA says it needs to fund operations at the new port to generate money for servicing debt and creating room for borrowing to acquire new equipment.
Develop a working strategy that supports our local food systems (The Standard)
That Kenya is now importing more food at the expense of consumers is not a surprise to anyone who has been in a supermarket recently. The cost of basic food stuff has gone up, some, like cooking oil, to eye-watering levels. Many households are having to tighten already tight belts in order to put a meal on the table. Kenya’s local food producers have over the years suffered recurring setbacks in their trade, forcing the country to import food to fill the gap. As reported by the Business Daily on August 23, 2021, the current food import bill stands at an unprecedented Sh103.34 billion between January and June this year. Up to 84 per cent of fish is imported with the largest percentage (70 per cent) coming from China alone. This has largely been attributed to underlying issues on policy and market systems development which have not fully addressed inputs supply, optimal utilisation of available water resources, breeds improvement and diversification, among other factors.
Uganda: Sugarcane growing: Is it a raw deal for farmers? (Daily Monitor)
Despite government earmarking sugarcane as one of the 14 strategic cash crops, it has not really transformed livelihoods and household incomes of the farmers who are commercially engaged in it. This is a consensus that most key stakeholders apart from some manufacturers of this commodity, largely concur with. According to an in-depth analysis of the sugar sub-sector, there is a massive variance between the livelihood and the income levels of the people engaged in sugarcane growing, raising the question whether this economic activity is worth farmers’ time or it is about time they ditched it for another viable venture.
The irony is that there has been increased cane production and milling capacity over the last two and half decades which essentially should result into potential employment opportunities with better incomes, reduced poverty and guaranteed food security.
Nigeria’s trade GDP growth and the AfCFTA (Nairametrics)
Nigeria’s GDP report for the second quarter was recently released showing that Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020. The growth represented the fastest quarterly growth in five years, with a single sector, the Trade Sector contributing about 16.66% of GDP, a sharp rise of 22% in Q2 2021, and its fastest since at least 2016. According to a recent report by Nairametrics, the reason for trade growth lies in an economic phenomenon termed base effects. In 2020, Nigeria’s trade sector suffered a massive contraction of 16.5%, at the time the 5th straight contraction that started in the third quarter of 2019 when the government announced its border closure.
The growth in Trade represents a major factor for the success of the African Continental Free Trade, (AfCFTA), and Nairametrics also recently reported that the Secretary-General of the Africa Continental Free Trade Area, Mr Wamkele Menes revealed the Pan-African Payment and Settlement System (PAPSS) would save the continent the sum of $5 billion annually when operational. He said: “There is an objective that one day, Africa would be a monetary union.” “Converting the about 42 currencies in Africa with its attendant cost of over five billion dollars yearly is a whole lot and so we want to reduce and eliminate this for the purpose of trading. “Local banks would be able to switch to the platform as we are in consultation with the central banks and by the end of the year, we would be in a position to say the platform is available for all African countries that want to switch to it.
Ghana to spearhead Africa’s economic emancipation – Yofi Grant (News Ghana)
Mr Yofi Grant, Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), says Ghana is well endowed with human and natural resources to spearhead Africa’s economic emancipation. He said with the country hosting the African Continental Free Trade Area (ACFTA) Secretariat, it was imperative that individuals and businesses took advantage of the opportunity to strike partnerships for growth. The GIPC Boss said it was time Ghana moved away from exportation of raw materials to increase productivity and value addition.
4 Ways Trade Can Help Ghana Transition to a Circular Plastics Economy (Africa.com)
Ghana is a fast-growing economy facing a plastics dilemma. Given the material’s favorable characteristics, plastics are a vital resource. It is used as an industrial input; ensures access to safe drinking water; and plays an important social role by enabling low-income populations to purchase safe drinking water, food, and other basic necessities, sold in low-priced miniature plastic sachets. At the same time, the growth of single-use plastics, estimated to be up to 70% of total plastics consumption, is resulting in a burgeoning plastic waste problem for Ghana. To address its plastic waste problem, Ghana needs to take urgent action to boost a more circular economy. With low plastic waste recovery and recycling rates of 12% and 10% respectively, Ghana could deploy policy instruments to stimulate domestic demand for recycled plastics and increase recovery and recycling rates. Industries such as consumer-packaged goods, construction, textiles, and Ghana’s newly emerging automotive sector could benefit from such interventions. Ghana could also evaluate its capacity to become a regional recycling hub. Stakeholders will need to assess the merits of this approach against the capacity to ensure environmental goals are met. A recent study commissioned by the Global Plastic Action Partnership (GPAP) and the Platform for Shaping the Future of Trade and Global Economic Interdependence – both initiatives of the World Economic Forum – highlights the realities of the plastics landscape in Ghana and how trade policy could be used to achieve a more circular economy and add to domestic interventions. Here are four ideas to consider:
High-speed fiber-optic link between Angola and DRC launched (Africa Science News Service)
Internet Technologies Angola (ITA), part of the Paratus Group, announces the launch of its high-speed fiber-optic link connecting Angola to DRC across Noqui (Angola) and Matadi (DRC). The 600-kilometre connection between Luanda and Noqui, with a capacity of up to 200 gigabits per second, will also provide internet services to municipalities along the route, including Nzeto, Tomboco and Mbanza Congo in the province of Zaire. Following substantial investment by ITA and Paratus Group, this link between Angola and DRC signals the first of many to be launched in the SADC region by the group.
With more inter-SADC fiber connections planned in 2022, this roll-out is part of the ITA/Paratus strategy to interconnect Angola with the region, through fiber, and to realise the group’s strategic vision for establishing Angola as a traffic hub within the SADC.
“For businesses in the SADC region, fiber-optic connectivity is essential”, says ITA Managing Director, Francisco Pinto Leite. “Fiber delivers high speed and reduced latency through a quality connection to the business community. The other key benefit is affordability because, for a comparable satellite connection delivering high bandwidth and speeds, fiber is actually around 70% cheaper.”
Africa
What you need to know about the African Continental Free Trade Area (African Business)
The African Continental Free Trade Area is an ambitious trade pact to form the world’s largest free trade area by connecting almost 1.3bn people across 54 African countries.
The agreement was brokered by the African Union (AU) and was signed by 44 of its 55 member states in Kigali, Rwanda on March 21, 2018. Trading under the agreement commenced on 1 January 2021, after a sixth month delay as a result of the impact of Covid-19. As of 27 August 2021, 38 of 54 signatories (70%) have deposited their instruments of ratification with the chair of the African Union Commission, according to the Tralac Trade Law Centre. The only country not to sign the agreement was Eritrea, which has a largely closed economy. The AfCFTA Secretariat, an autonomous body within the African Union based in Accra, Ghana, and led by secretary general Wamkele Mene, is responsible for coordinating the implementation of the agreement.
Osinbajo Wants African Industries To Develop Regional Value Chains (Leadership)
The vice president, Prof Yemi Osinbajo said to increase the competitiveness of African industries is to develop and deepen regional value chains. Osinbajo stated this at the Manufacturers Association of Nigeria (MAN) roundtable on industrialisation in Africa themed: ‘Positioning African Industries for Economic Transformation and Continental Free Trade’. According to the vice president, the theme for the roundtable is an important one. We must all, governments and private sector alike, pay close attention to ‘Positioning African Industries for Economic Transformation and Continental Free Trade.’ He noted that manufacturing is critical to economic transformation, saying that it has been key in adding value to agricultural products and minerals and has also been a major motor of economic growth because it boosts productivity. “Equally compelling from the perspective of Nigeria which has a large population is that manufacturing has the potential to create a large number of sustainable jobs. Given the large number of entrants into the workforce every year and the important role of employment in reducing poverty, there is no doubt at all that industrialization must remain a key priority for African countries,” he said.
He added that “One of the ways to increase the competitiveness of African industries is to develop and deepen regional value chains wherein production systems starting from conception and design right through to supply of raw materials, processing, transport, storage, marketing, and sales take place within our countries and continent. When we export commodities to the rest of the world, we are also exporting jobs and the positive spill over effects such as learning that come with manufacturing are lost.”
UAE targets new Kenya trade deal (Business Daily)
The United Arab Emirates (UAE) plans to sign a comprehensive economic partnership agreement with Kenya to consolidate its position as a gateway for global trade and investment. The UAE said this week the deal with Kenya, alongside six other countries including India, Indonesia, Turkey, UK, Israel, South Korea and Ethiopia will widen its access in the emerging markets. “These comprehensive agreements will help us get wider accessibility to those markets. We are talking about 10 per cent of the global trade and 60 percent of the global populations of those eight countries,” said Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade in a statement.
India-East Africa Community (EAC) to drive enhanced trade partnerships (Hindustan Times)
Indian Economic Trade Organization in association with the India Africa Trade Council organized the INDIA EAC SUMMIT in New Delhi on 3rd September which was attended by the High Commissioners of Rwanda, Tanzania, Uganda and the Ambassador of Zimbabwe in India. The motive was for building up bilateral business relations between both the countries of India and the countries in the EAC region namely Uganda, Tanzania, Rwanda, Burundi, South Sudan, Kenya. The event focused on the emerging relationships with the EAC region with various presentations by the Heads of Missions and thrust on developing partnerships that would be mutually beneficial to these regions especially post Covid 19.
SADC and Partners Launch a Financing Facility to Boost Transboundary Conservation in Southern Africa (SADC)
The Minister of Forestry and Natural Resources of the Republic of Malawi, Hon. Nancy Tembo, on 5 September 2021 launched a Financing Facility to support transboundary conservation actions for Southern African Development Community (SADC) Transfrontier Conservation Areas (TFCAs). The SADC TFCA Financing Facility aims to reach a volume of EUR 100 Million in the medium to long term benefitting 18 Transfrontier Conservation Areas (TFCAs) in 16 countries and covering over 700 000 km2 of shared ecosystems in the SADC region. Speaking at the launch, Hon. Tembo noted: “The TFCA Financing Facility will complement efforts by governments of Southern Africa to develop sustainable financing mechanisms for conservation of nature which straddles across international boundaries in the region.” The SADC TFCA Financing Facility is a grant-making mechanism established to support development of TFCAs in the SADC region. The first phase of the financing facility currently funded by the German Government through KfW has an initial budget of €12 million with an overall ambition to reach a target of €100 million
Africa’s Tourism Leaders Identify Investments as Key to Sustainable Recovery (Modern Diplomacy)
The World Travel & Tourism Council (WTTC) and the United Nations Environment Programme (UNEP), launch a major new report today, addressing the complex issue of single-use plastic products within Travel & Tourism. ‘Rethinking Single-Use Plastic Products in Travel & Tourism’ launches as countries around the world begin to reopen, and the Travel & Tourism sector starts to show signs of recovery from the COVID-19 pandemic which has been devastating. The report is a first step to mapping single-use plastic products across the Travel & Tourism value chain, identifying hotspots for environmental leakages, and providing practical and strategic recommendations for businesses and policymakers. It is intended to help stakeholders take collective steps towards coordinated actions and policies that drive a shift towards reduce and reuse models, in line with circularity principles, as well as current and future waste infrastructures.
Virginia Messina, Senior Vice President and Acting CEO, WTTC said: “The COVID-19 pandemic has accelerated the sustainability agenda with businesses and policymakers now putting an even stronger focus on it. As a growing priority, businesses are expected to continue to reduce single-use plastic products waste for the future and drive circularity to protect not only our people, but importantly, our planet. “It is also becoming clear that consumers are making more conscious choices, and increasingly supporting businesses with sustainability front of mind.”
Guest Article: Achieving SDG 7 in Africa: New Analysis Shows Where We Stand (IISD)
As the world prepares to convene the first UN High-Level Dialogue on Energy in 40 years, attention is focused on the importance of achieving universal access to affordable, reliable, sustainable, and modern energy. A new analysis by the Africa-EU Energy Partnership (AEEP) sheds light on progress toward achieving this in Africa, and what still needs to be done to achieve SDG 7 in the years ahead.
On 31 August 2021, AEEP released the ‘European Financial Flows on SDG7 to Africa’ report. Looking at official development assistance (ODA) data and private sector investments over recent years (2014-2019), the report finds that while a lot remains to be done, SDG 7 is achievable in Africa. And, importantly, the cost of inaction is far greater – both in terms of the risk posed to achieving other Sustainable Development Goals (SDGs), and in financial terms.
Our look at overall energy investment in the region shows that African governments and institutions are leading the way to achieving their energy goals. In 2019 alone, African governments and developments banks spent €12.7 billion of public spending on energy in all its forms, with €10.1 billion of public sector expenditure financed by government revenues and debt. These strong public commitments show the central role that energy plays for many countries.
ECA cyber security week launched (UNECA)
The Economic Commission (ECA)’s Cybersecurity Week 2021 has kicked off in Addis Ababa, Ethiopia and will run for three days from September 7 – 9. This is an effort by the Information and Communications Technology Services Section (ICTSS) to promote the culture of information security at the ECA, and its compliance with UN-wide cyber security policies.
It is estimated that about 80% of personal computers (PCs) in Africa are affected by viruses and malware. “Covid 19 has led to more cyber security risks as many individuals work at home sometimes on their computers and using their own routers, virus protection,” said Mr Cisse adding that the evolution of new technologies and rapid changes in workforce practices has resulted in one pf the greatest challenges for governments and organizations around the world. “Flurry of devices are moving rapidly from analog to digital, the phenomenon is a broad and complex terrain – the internet of things. Everyone needs to be aware of the risks of cybersecurity especially on data protection.”
International
More than 100 countries depend on commodity exports (UNCTAD)
Commodity dependence increased over the last decade from 93 countries in 2008–2009 to 101 in 2018–2019, according to UNCTAD’s State of Commodity Dependence 2021 report released on 8 September. The nominal value of world commodity exports reached $4.38 trillion in 2018–2019, a 20% increase compared with 2008–2009, the report shows. “Commodity dependence makes countries more vulnerable to negative economic shocks,” said UNCTAD’s commodities head, Janvier Nkurunziza. “It can have a negative impact on export and fiscal revenues and adversely affect a country’s economic development.”
Commodity export dependence in Africa and Oceania is particularly noteworthy, with more than three quarters of countries in both regions relying on commodity exports for more than 70% of their total merchandise export revenues, the report said.
ASYCUDA marks 40 years of keeping international trade flowing (UNCTAD)
UNCTAD’s largest technical assistance programme, ASYCUDA, is marking 40 years of helping customs offices around the world accelerate the clearance of goods and increase the pace of trade. ASYCUDA’s 2020 annual report released on 8 September outlines how the programme adapted its flagship software, ASYCUDAWorld, to help the countries using it hasten the import of essential medicines and goods as they tackle the COVID-19 pandemic.
UNCTAD’s director of technology and logistics, Shamika N. Sirimanne, said: “Amid the pandemic, ASYCUDA has demonstrated flexibility and innovation, providing excellent value to user countries.” ASYCUDA has assisted 126 countries and territories over the past 40 years to improve their import and export processes. Its software is currently being used in 100 countries, including 39 least developed countries, 34 small island developing states and 21 landlocked developing countries.
According to recent UNCTAD analysis, most LDCs will likely take several years to recover the level of GDP per capita they had in 2019, and compared to developed countries, which may experience a short V-shaped recovery, the median LDC would take roughly three years to climb back to pre-COVID-19 levels of output per capita. Moreover, extreme poverty in LDCs is projected to rise to 35%, equivalent to 32 million people, due to the pandemic.
Confronted with looming fiscal distress, LDCs will need further long-term support to recover and address the structural economic challenges they face. Beyond the recovery, for LDCs to achieve inclusive development, global action should be geared towards supporting LDCs build their underdeveloped production systems.
BRICS Trade Minister’s meeting discusses MSME cooperation (SME Times)
During the 11th BRICS Trade Ministers’ Meeting held in virtual format on 3rd September, 2021, with Piyush Goyal, Minister of Commerce and Industry, chairing the meeting, discussed among the MSME sector of the member countries. The meeting was attended by Trade and Economic Ministers of BRICS Countries (Brazil, Russia, India, China and South Africa). The MSME Roundtable was held to promote the cause of the MSME sector through learning of best practices amongst BRICS countries. India has also organized a number of B2B events through the BRICS Business Council and the BRICS Women’s Business Alliance to advance business cooperation in BRICS countries.
He stressed for the BRICS countries to work together for strengthening the Multilateral system, with WTO at its core, and need for a balanced and inclusive outcome in the forthcoming WTO Ministerial Conference (MC12) keeping in mind the developmental needs of developing countries and Least Developed Countries. He highlighted the principles of Special & Differential Treatment and the “Common but Differentiated Responsibility”. He also emphasized, amongst other things, on the need for a permanent, adequate and equitable solution to the Public Stock Holding programmes for food security purposes; early outcome of the TRIPS Waiver proposal for vaccines, therapeutics and diagnostics; adoption of emerging new technologies in a swiftly changing world while finding solution to the challenges of data protection and cyber security; and ensuring sustainable consumption and production patterns.
BRICS summit is likely to strongly oppose carbon tax proposed by EU (Mint)
Brazil, Russia, India, China and South Africa may strongly oppose the proposed Carbon Border Adjustment Mechanism (CBAM) by the European Union at the 13th BRICS Summit on Thursday as the five developing countries will likely be the biggest losers from its implementation. In a veiled reference to CBAM, BRICS trade ministers last week cautioned that any measure to tackle climate change must be in conformity with multilateral trading rules and shouldn’t put arbitrary restrictions on international trade. “We underline that all measures taken to tackle climate change must be designed, adopted, and implemented in full conformity with WTO agreements and must not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade,” BRICS trade ministers said in a statement.
Collaboration key to African-Caribbean prosperity (SAnews)
President Cyril Ramaphosa has urged African and Caribbean states to join hands in solidarity as the regions face common challenges. He was speaking during a virtual gathering of the inaugural Africa-Caribbean Community (CARICOM) Summit where Heads of State from Caribbean nations and Africa were expected to discuss various issues including trade, investment and ways to mitigate the impact of the COVID-19 pandemic.
High-profile Egypt investment summit opens today as economy keeps growing (Gulf News)
Investment prospects, climate change and food security will be among the topics discussed at the Egypt International Cooperation forum (Egypt-ICF), which opens today (September 8). The conference will try to “advance dialogue on international cooperation” as the global economy gradually recovers from the strain of a pandemic. The event, under the patronage of Abdel Fattah Al Sisi, the President of Egypt, will bring together national and international policymakers, multilateral and bilateral development partners, private sector, civil society, and think-tanks to join efforts in identifying the parameters of sustainable recovery. The two-day event, at Cairo’s Ritz-Carlton hotel, will also be streamed online on the forum’s website. It will comprise panel discussions, specialized workshops that delve into sector focus, capacity building sessions for participants, as well as development cooperation projects’ visits.
How African countries can benefit from plan to reform global tax (World Economic Forum)
As of July 2021, over 130 countries and jurisdictions, including many African countries, have joined a new two-pillar plan to reform global tax rules and ensure that multinational corporations (MNCs) pay their fair share of taxes irrespective of where they operate.
Pillar One of the Agreement on base erosion and profit shifting (BEPS) seeks to ensure a fairer distribution of profits and taxing rights among countries with respect to the largest multinationals including digital companies, while Pillar Two introduces a global minimum corporate tax rate that has the effect of protecting the tax bases of countries and putting a floor on tax competition amongst jurisdictions.
Today, many African countries are unable to tax highly digitalised businesses as a result of current international tax rules, which only allocate taxing rights to a country where non-resident businesses create sufficient physical presence in that country. With taxing rights of over $100 billion in multinational profits expected to be reallocated to market jurisdictions annually under Pillar One, ATAF argues that the rules will be effective measures that can be used to address the current imbalance in the allocation of taxing rights between source and residence countries which deny source countries such as African countries of much-needed tax revenue.
DDG Paugam: Trade policy must be mobilized for promoting a sustainable ocean economy (WTO)
“The first and most important issue is that of the negotiations on fisheries subsidies reform. … Concluding these negotiations, which are now in their final stage, is the Organization’s number one priority and we hope that an agreement can be reached by the end of the year prior to our Ministerial meeting in November,” DDG Paugam said. “If I had just one message to convey here at the IUCN Congress, I would request everyone’s support in encouraging the governments engaged in these negotiations to secure an ambitious outcome.” DDG Paugam also cited discussions among several WTO members on plastics pollution, which could lead to new initiatives on marine litter, and stressed how broader discussions at the WTO on trade and the environment could assist ocean conservation. “My key message is that, among all the instruments of international cooperation, trade policy instruments can and must be mobilized for the health of the ocean,” he said.
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National
SA’s economy grew by 1.2% in second quarter of 2021 (Eyewitness News)
Statistics SA revealed on Tuesday the country’s economy increased by 1.2% in the second quarter of 2021 – a fourth consecutive positive quarterly growth. Statistician-General Risenga Maluleke released the latest gross domestic product (GDP) data in Pretoria on Tuesday morning. The increase followed a revised 1% rise during the first quarter of this year. Six industries recorded positive growth between the first and second quarter.
Bid to improve productivity in clothing manufacturing industry (SAnews)
Finding ways to improve productivity and sustainability in the clothing manufacturing industry will come under the spotlight this week. The entity tasked with promoting productivity and employment growth in South Africa, Productivity SA, the National Bargaining Council for the Clothing Manufacturing Industry (NBCCMI)’s Productivity and Training Institute (PTI) will host a knowledge sharing session that will bring union members and business owners together on Wednesday.
SA Remains Zim’s Major Trading Partner As Imports Hit 47,1% (NewZimbabwe.com)
NEIGHBORING South Africa has remained Zimbabwe’s major trading partner after imports from the regional powerhouse reached a record 47,1 % last year, Zimbabwe Revenue Authority (ZIMRA) has reported. Speaking during an annual general meeting Thursday, ZIMRA acting commissioner general, Rameck Masaire said statistics at hand shows that neighboring South Africa is still the country’s largest trading partner both in terms of imports and exports. “The major trading partner remained South Africa from where 47,1% of Imports were sourced from as well as 45,2% of exports. During the period under review, the total Imports for the year 2020 were $324,6 billion. Total exports reached $257 billion with a trade deficit of $67,6 billion,” he said.
Extractives sector moves to turn the tide on corruption (Engineering News)
Governments, business and civil society are uniting in the fight against corruption in the extractives sector, demonstrating support and commitment for beneficial ownership transparency. The Extractive Industries Transparency Initiative (EITI) reports that anonymous ownership of companies can be used to facilitate corruption across many sectors, including the extractive industries.
Govt bans export of raw materials (Daily Monitor)
The Ministry of Trade, Industry and Cooperatives has banned exportation of raw materials starting this financial year. During a press conference last week, the State Minister for Trade, Ms Harriet Ntabazi, said 69 per cent of raw materials in the country are exported hence causing revenue loss, adding that the move will improve the manufacturing sector. She said the ministry has negotiated a Shs100b loan from development partners and sourced another Shs100b given to Uganda Development Bank this financial year to give to traders. “Government has banned exports of unprocessed raw material starting this financial year to encourage adding of value on all raw materials before exporting them, so this money will help traders embrace value addition,” Ms Ntabazi said. She said the main plan of government is to turn all traders into industrialists to boost manufacturing.
Kenya seeks US market access for fresh oregano, parsley (Business Daily)
Kenya has asked the United States Department of Agriculture’s Animal and Plant Health Inspection Service (Aphis) to authorise the importation of fresh oregano and parsley to the US from Kenya. Aphis has drafted a pest risk assessment that describes potential pests associated with the commodities ahead of the possible approval process. The agency is making the assessment available for public comment before it finalises its draft assessment that identifies pest control measures in the import approval process.
“Based on the market access request submitted by the government of Kenya, the pathway was considered to include fresh shoots of oregano shipped by air in cartons,” it said.
Northern Poultry Farmers Association unhappy about high cost of feed for poultry (Myjoyonline)
The Northern Poultry Farmers Association has bemoaned the high cost of feed for poultry farming. Addressing a press conference in Tamale, Chairman of the Association, George Dassah said within a year the cost of maize has almost tripled. He noted that a year ago, 100kg of maize was sold at GH¢130 but currently, the prices range from GH¢320 to GH¢350.”Is it not curious that the Planting for Food and Jobs was successful, maize farmers had increased yield, yet poultry farmers find it difficult to get the commodity, that occasioned the issuing of permit by government through the Ministry of Agriculture to import 60,000mt of yellow maize,” he quizzed. He also questioned government’s decision to allow persons from neighbouring countries to come into the country and buy a significant amount of maize under the guise of ECOWAS protocol, trade liberalisation and the quest for foreign exchange when poultry farmers needed maize. He said poultry farmers have resulted in selling some of their birds to generate enough money to purchase feed to feed the remaining poultry.
Bottlenecks At Border Making Intra-Africa Trade Difficult, Says Dangote (BizWatchNigeria.Ng)
The President of the Dangote Group, Mr. Aliko Dangote, says barriers at the nation’s border are making movement of goods to other African countries for trade burdensome. According to him, most countries prefer to ship their goods from China than face the hassles at the borders. He made this known while speaking at the High-Level Roundtable Discussion on Industrialisation in Africa, organised by the Manufacturers Association of Nigeria (MAN) as part of the activities to mark its 50th anniversary.
“So, how can we be competitive? Government has to do quite a lot in terms of having the political will to remove all these bottlenecks at the borders. “So, I think that there are quite a lot of areas we have to look at to make this thing competitive. The border crossing is the most important one for us. We must make sure that crossing our borders does not take time. It will not make sense at all if it is going to take time. People would rather ship from China straight into their markets. So, we will never be competitive if we do not do that. We actually need to work with the government to remove these bottlenecks, which will need a lot of political will by governments,” Dangote said.
Governance requires strong institutions — NCCE (Graphic Online)
The Chairperson of the National Commission on Civic Education (NCCE), Ms Josephine Nkrumah, has stated that democratic governance required strong, independent and well-resourced institutions to keep the wheel of democracy running. She said it was important for African countries to work together, learn from one another and help one another to achieve the common goal of promoting freedoms and bringing prosperity to their citizens. The African Continental Free Trade Area (AfCFTA) agreement with its headquarters in Ghana, she said, was one of such initiatives which showed that the continent was willing to work together and forge ahead.
Nigerian economy comatose, open policy on AfCFTA needed ― ANLCA (Nigerian Tribune)
The Association of Nigerian Licensed Customs Agents (ANLCA) has urged the Federal Government to come up with an open policy on the government agency that will be handling the nation’s involvement in the African Continental Free Trade Area (AfCFTA) agreement. He said that the importance of the Association’s submission on the AfCFTA is to prevent the country from being turned into a dumping ground.
Saudi businesses asked to take advantage of AfCFTA opportunities in Ghana (GhanaWeb)
Alhaji Mohammed Habib Tijani, Ghana’s Ambassador to Saudi Arabia, has asked businesses in the oil-rich Kingdom to take advantage of the African Continental Free Trade Area (AfCFTA) to invest in Ghana.
He said Ghana was a safe and profitable destination for doing business in Africa and that taking up opportunities would ensure the mutual benefit of the investors and the host country. At a meeting with the Chief Executive Officer (CEO) of the Saudi Fund for Development (SFD), Sultan bin Abdul Rahman Al-Marshad, the Ambassador wooed investors of that country to make use of opportunities presented by AfCFTA.
Alhaji Tijani said the initiatives were introduced to ensure all-year-round access to water by farmers, tackle youth unemployment, achieves food security, and add value to Ghana’s export through agro-processing.
Egypt’s SME Development Agency aims to market small business products in Africa (Daily News Egypt)
Nevine Gamea, Minister of Trade and Industry, and Executive Director of the Micro, Small, and Medium Enterprises Development Agency, stressed that increasing cooperation and trade exchange with African countries is one of the top priorities for the Egyptian state at present. She indicated that MSMEDA is working in coordination with various concerned authorities to benefit from the promising African market to market the products of small business owners and open new outlets for them to export and develop their products, enabling them to meet the needs of these markets.
Africa
AfCFTA: Creating Globally Competitive African Manufacturing Sector (THISDAYLIVE)
The marking of the 50th Anniversary of the Manufacturers association of Nigeria (MAN) provided the opportunity to bring together the movers and shakers of African economy, which included policy makers, industrialists, academicians, regulators and bankers to discuss the challenges and prospects of making African manufacturing a globally competitive industry, writes Dike Onwuamaeze The President of the Manufacturers Association of Nigeria (MAN), Mr. Mansur Ahmed, set the tone of discussion at the “High-Level Roundtable on Industrialisation in Africa,” that marked the commemoration of the 50th anniversary of MAN, with a brief remark.
Ahmed said: “It is our firm belief that our conversations at this event will help chart the course for sustainable Africa’s industrialisation and economic transformation.” Ahmed cleared the ground for the erudite Economist and Senior Lecturer, Lagos Business School, Dr. Doyin Salami noted that it would be important while emphasising the size of the market offered by the free trade area to take into cognizance issues around the payment system, the movement of people, the impact on SMEs, intellectual property and regional value chain.
He pointed out two dimensions that manufacturers and other stakeholders should bear in mind revolved critically around Africa building a globally competitive manufacturing capacity and how it would set the boundaries between collaboration and corporation, bearing in mind the already existing custom unions across Africa that have failed to succeed. “One characteristic of them is that for the most part they have not succeeded. It is going to be important to understand why they have not succeeded. “Also, the issue of funding industrialisation on the continent across the different countries is going to be very important.
Cargo has played key role in supporting African aviation during pandemic, notes TV network (Engineering News)
US news TV group CNN has highlighted the importance of air cargo in underpinning the African commercial aviation industry during the Covid-19 pandemic. Air cargo formed a “lifeline” for African aviation, the network reported. The African airport which handled the largest amount of cargo last year was Nairobi’s Jomo Kenyatta International Airport (JKIA), in Kenya. And the continent’s number one dedicated air cargo operator, Astral Aviation, is also Kenyan and based at JKIA.
African skies empty amid SAATM rhetoric (New Telegraph)
When the Single African Air Transport Market (SAATM) was launched in January 2018, it was enthusiastically embraced as the key that would unlock air travel growth in the continent. Although 33 countries in the continent are signatories to the project, the agreement appears to be on paper rather than being implemented as nations are still not fully opening their airspace for a single air market in the continent. According to the International Civil Aviation (ICAO) Aviation Infrastructure for Africa Gap Analysis 2019, direct traffic from the SAATM States are mainly to Europe and intra-Africa, while traffic from SAATM to other regions are carried mainly through connecting flights.
Kenyatta’s EAC agenda: Admit more countries to regional bloc (The East African)
“Since Kenya took over the EAC chair in February 2021, there are a few things that President Kenyatta has given his strong views on. One of them expansion of our market so that goods and services across East Africa access bigger and wider markets. It is in that context that the admission of the Democratic Republic of Congo is being looked at,” said the CS, who chairs the EAC Council of Ministers.
Kenya’s President Uhuru Kenyatta wants the East African Community to expand to include Central, Northern and Southern African states. The Kenyan leader, who is the current EAC chair, wants this expansion to form his legacy at the regional bloc. He is proposing some amendments to the Treaty establishing the Community to accommodate new members, said Adan Mohamed, Cabinet Secretary in the Ministry of EAC and Regional Development.
Mr Mohamed told The EastAfrican this week that DR Congo is likely to be admitted before the end of this year, or during the first quarter of 2022, using recommendations of a report of the verification mission carried out by the EAC Secretariat.
Kenya blames ‘rogue traders’ for EAC trade rows (Business Daily)
Kenya has blamed persistent trade disputes among member states of the East African Community (EAC) on incidents of dishonest traders breaking the rules of cross-border commerce. Adan Mohamed, the Cabinet Secretary for East African Community and Regional Development, said disputes in recent months between Kenya and its neighbours have largely been a result of non-conformity with controls and standards governing trade. “Whilst the rules are very clear, there are some private business entities that abuse those rules. And the abuse of those rules is what normally leads to some of these disputes,” he told the Business Daily in an interview.
Kenya early March banned maize imports from Tanzania and Uganda after the Kenya Bureau of Standards (Kebs) and the Agriculture and Food Authority (AFA) raised concerns that some of the consignments had surpassed the maximum aflatoxin levels of 10 parts per billion.
The unending trade tiffs among EAC member states have slowed growth in intra-regional trade, currently estimated at about 15 percent of total volumes, despite the bloc being the most integrated in Africa. EAC secretary-general Peter Mathuki in May blamed the unending trade disputes within the bloc on failure to enforce the EAC Elimination of Non-Tariff Barriers (NTBs) Act, 2017, and establish the EAC Committee on Trade Remedies to amicably resolve persistent rows. “The EAC Elimination of NTBs Act 2017, shall facilitate the resolution of persistent NTB and force partner States to refrain from imposing new ones,” Dr Mathuki told the Business Daily in May.
“The mechanisms to report and resolve NTBs, as stipulated in the NTBs Act 2017, include compensation where the Council [of Ministers] finds that the imposing partner State caused unnecessary trade loss to the affected Partner States as shall be determined by the Committee on Trade Remedies.”
Removal of non-tariff trade barriers alone, the Arusha-based EAC secretariat estimated earlier in the year, will double intra-regional trade to 30 percent, rising to 50 percent in coming years.
DR Congo’s EAC admission report positive, says Nshuti (The New Times)
A report earlier prepared by an East African Community (EAC) verification mission on the DR Congo’s eligibility to join the six-member bloc is ready, as well as positive, and could be examined by the Council of Ministers sometime this month, an official has told The New Times. As he addressed the media on the occasion of his 100 days at the helm of the bloc’s Secretariat early last month, EAC Secretary General, Peter Mathuki, indicated that the process of admitting the DR Congo was in advanced stages, and a report on its eligibility was awaiting approval by the Council of Ministers.
The EAC Summit on February 27 considered the application by DR Congo to join the Community and directed the Council of Ministers to expeditiously undertake a verification mission in accordance with the EAC procedure for admission of new members into the bloc and report to the next Summit. The Sectoral Council had earlier directed the Secretariat to submit the report of the verification mission to the Council of Ministers by November.
African nations asked to digitalize revenue collection (Capital Business)
Tax experts have called on African countries to digitalize revenue administration and collection as businesses increasingly shift activities online amid the COVID-19 disruption. Githii Mburu, commissioner-general of the Kenya Revenue Authority, said COVID-19 challenges have now made it mandatory to digitalize tax collection. “The business environment has transformed faster due to modern technology. The COVID-19 pandemic has forced businesses to go online thus tax administrators must align to this change,” he said on Monday during the sixth African Tax Research Network conference held virtually.
African Economist Says Regulated Cryptocurrencies Are Reasonable Alternative to Single Trade Currency (Bitcoin News)
A Nigeria-based research and development economist, Gospel Obele, has called “for a unified regulatory mechanism for cryptocurrency trading.” He adds that such regulation of cryptocurrencies can potentially “complement an African digital currency,” hence this needs to be considered.
In remarks published by Joy Online, Obele insists that cryptocurrencies have already shown how a single currency must function. The economist explained: Crypto has been able to build a level of singular markets when it comes to digital currency use and trade across borders, and this is a significant philosophy which the [African Continental Free Trade Area] originates. One of the significant issues that the AFCTA presents is an important opportunity for a singular currency in the African Market. We all know because of the different development stages of financial markets in respective member states.
As some African central banks contemplate launching their own digital currencies, privately issued cryptocurrencies are already being used as a medium of exchange in some cross-border trades.
However, the growing use of cryptocurrencies when making cross-border payments has seen some central banks impose measures that hinder this practice. Commenting on this, Obele reminded central banks that “cryptocurrency has come to stay.” Therefore, instead of restricting the use of such digital currencies, the economist wants central banks to understand the technology that underpins such digital currencies — the blockchain.
Realisation of low-cost shared financial systems will hasten inclusion – experts (Daily Monitor)
Actualisation of the ability to put on the market low-cost software products or systems to connect and exchange information with one another without restriction, which is also known as interoperability, remains the single largest challenge to financial inclusion in Uganda, according to financial technology experts. This, experts say, together with real-time payment solutions, remains one of Uganda’s silver bullets that will deliver the digital economy enhanced through financial inclusion. Speaking at the 2021 Fintech Landscape Exhibition in Kampala, industry experts drawn from financial technology companies such as banks, telecoms, Saccos and developers’ communities conceded that although a number of positives have been registered, Uganda will attain financial inclusion only if issues around the cost of interoperable services and real-time payment solutions are conclusively addressed. Financial interoperability allows customers of different service providers to transact across networks, ranging from mobile money to banking. Telecoms have already implemented interoperability but the cost involved continues to deter customers from using cross network services.
The African Development Bank returns as a top-tier partner of the African Green Revolution Forum (AGRF) – Africa’s largest agriculture conference – to be held in a hybrid format 6-10 September 2021. The Bank has earmarked $100,000 to support this year’s annual AGRF, which will be headlined by African Heads of State and Government, and will bring together delegates from governments, civil society, the private sector and research communities. The Government of Kenya and the AGRF Partners Group are hosting AGRF 2021, organized under the theme, Pathways to Recovery and Resilient Food System. “As Covid-19 continues to cause disruptions across Africa, we must prioritize policy and facility support that focuses on rebuilding infrastructures that foster the production, processing and availability of more – and more nutritious – food to feed Africa. AGRF is the platform to move these policy conversations forward, addressing every facet of the continent’s food system,” said Dr. Beth Dunford, Vice President for Agriculture, Human and Social Development, African Development Bank.
Modelling Africa’s Continental Power Systems Master Plan (ESI-Africa)
The International Renewable Energy Agency (IRENA) will collaborate with the International Atomic Energy Agency (IAEA) as a modelling partner for the development of the African Continental Power Systems Master Plan (CMP). The initiative is led by the African Union Development Agency (AUDA-NEPAD) with technical and financial support from the European Union. It is meant to establish a long-term continent-wide planning process. The two agencies’ modelling tools will be the official planning models used in the initiative. Energy ministers from around Africa have asked the AUDA-NEPAD to lead the development of the power systems master plan. After a two-year consultation process, coordinated by the EU Technical Assistance Facility (TAF) for Sustainable Energy, the five African power pools chose IRENA and the IAEA to support the continent’s modelling and capacity needs.
African countries to speak in one voice at UN food summit (UNECA)
The Economic Commission for Africa (ECA), in partnership with the African Union Commission (AUC) and the Africa Union Development Agency (AUDA), is spearheading the conversation that will ensure that African countries speak in one voice at the upcoming United Nations Food Systems Summit (UNFSS)
Vera Songwe, the United Nations Under-Secretary-General and ECA Executive Secretary said the Summit will focus the discussions on game-changing solutions to transform food systems across the globe in order to achieve all the 17 SDGs of Agenda 2030. “In the African context, food systems transformation will help the continent to also achieve all the goals of Africa’s Agenda 2063,” said Songwe.
It is expected that the momentum to be created by the UNFSS will result in mobilizing and galvanizing support for the implementation of the identified priorities within the context of Agenda 2063, CAADP Malabo declaration, the Africa Continental Free Trade Agreement (AfCFTA), and other continental frameworks that have the consensus of AU Member States.
Africa/Middle East Air Transport Virtual Symposium (African Union)
H.E. Dr Amani Abou-Zeid, African Union Commissioner for Infrastructure & Energy delivered the keynote speech to the International Civil Aviation Organization (ICAO) Africa/Middle East Air Transport Virtual Symposium, held on 30 August 2021 under the theme “Promoting and harnessing the benefits of liberalisation”. In her speech, Commissioner Abou-Zeid highlighted the African Union Commission’s efforts to support African air transport industry during the severe crisis due to COVID-19 pandemic, to prevent the spread of COVID-19 and to position the aviation sector on a path to restart and recover sustainability.
“The AU Taskforce on safe reopening of borders is also working on harmonizing the existing digital platforms for traveler health credentials and border requirements – the AU Trusted Traveler Platform and the IATA Travel Pass. It is also important to ensure that the adopted platforms are interoperable and are recognized by other regions to address the issue of restrictions to travel within or out of Africa. On this note, the AUC is urging Governments to continue to provide timely and accurate updates on their health protocols or requirements and to continue to provide digital COVID-19 test/vaccination certificates for citizens who get tested.” said Dr Abou-Zeid, while urging African Union Member States to join and use these platforms.
International
13th BRICS Summit: PM Modi to push for greater trade, investment as part of Strategy 2025 (Moneycontrol)
Prime Minister Narendra Modi will keep the focus on closer bilateral trade and investment between nations of the BRICS grouping (Brazil, Russia, India, China, and South Africa) when he hosts the 13th BRICS Summit on September 9.At the leaders’ meeting, Modi is expected to push for further reduction in barriers in trade and the development of multilateral trading rules and re-orient markets to increase trade turnover within BRICS, a senior official said.
India has recently made significant progress in convincing BRICS members to reaffirm the BRICS Strategy 2025, a seminal agreement on boosting trade and investments.
The Strategy includes a new framework for greater cooperation in services trade, promising easier movement of professionals across BRICS nations. This is expected to eventually lead to discussions on movement of natural persons, such as independent professionals (called Mode 4 services trade) and Mode 1, the cross- border supply of services, sources said.
Also included is a pledge to establish a common approach towards the multilateral trading system, keeping in mind the upcoming 12th Ministerial Conference of the World Trade Organisation to be held in Geneva in December 2021. This is expected to bring the BRICS countries on an unprecedented common platform on matters of global trade policy.
Climate action, trade top agenda at the inaugural CARICOM-Africa Summit (Capital News)
Marshaling collective action to combat climate change has been listed as a key agenda at the inaugural CARICOM-Africa Summit set to begin on Tuesday, September 7. The virtual meeting bringing together Heads of State and Government from the Caribbean Community and Common Market (CARICOM) and the African Union (AU) will also deliberate trade and investment between the two regions.
The summit themed ‘Unity Across Continents and Oceans: Opportunities for Deepening Integration,’ will also seek to harness CARICOM-Africa partnership with the AU recently acceding to a request to onboard the Caribbean region on the African Medical Supplies Platform (AMSP) for the acquisition of COVID-19 vaccines.
CIFTIS 2021: Focus on e-commerce in Africa (CGTN)
Kenya is among many countries in Africa that continue to enjoy strong e-commerce viability owing to its reliable internet network. Other countries that have strong e-commerce platforms include Nigeria, South Africa and Egypt. E-commerce platforms are among the companies participating in the 8th China International Fair for Trade in Services (CIFTIS), that started on September 2 and is scheduled to run until September 7.
CIFTIS is the first comprehensive platform specializing in the trade in services around the world. Defined as a state-level, international and comprehensive fair for trade in services, the CIFTIS currently figures as the only comprehensive trading platform in the world covering the 12 sectors of trade in services defined by the World Trade Organization. Trade in services involves the sale and delivery of intangible products such as transportation, tourism, telecommunications and computing. This year’s edition has given more focus on e-commerce, as the industry continues to make steady growth across the world.
E-commerce has experienced phenomenal growth rates around the world amid the COVID-19 pandemic that has ravaged the world for the better part of two years. According to VISA, e-commerce sales are projected to grow to $7 trillion across the globe by 2024. This growth has been well documented in Africa, where merchants have taken advantage of the budding internet-based platforms to sell goods and offer services. A recent report by VISA themed ‘E-trade advancements across Sub Saharan Africa (SSA)’, shows that despite being one of the smallest regions of ecommerce globally, Sub-Saharan Africa has shown steady growth potential.
Commonwealth Secretary-General urges G20 to urgently vaccinate the world’s small states (The Commonwealth)
Commonwealth Secretary-General The Rt Hon Patricia Scotland QC has called on G20 members to urgently work with the Commonwealth and other partners, particularly the World Health Organization and World Trade Organization, to urgently put in place a robust plan to vaccinate the world’s 42 smallest states and shield them from COVID-19. “As the pandemic unfolded, we were urged to act selflessly to protect the most vulnerable. As some of the more affluent countries of the world start to emerge from the crisis, we must work now to protect the smallest and most vulnerable nations from COVID-19.
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National
How the South African government can boost its credibility in the agricultural sector (Yahoo!)
Governments can build credibility over time through consistent commitment to implementing policies efficiently and effectively. South Africa hasn’t done well on this score. As a result of the poor record of policy implementation, investors and the general public have become sceptical of government policy pronouncements.
The factors that lie behind poor policy implementation are varied and complex. They range from conflicting ideologies, a lack of capacity within the state and its institutions, corruption, and poor governance at local municipalities. But the government seems to be waking up to the fact that the key to success is public policy implementation. Take the Economic Reconstruction and Recovery Plan launched in October 2020. The plan is focused on energy security, infrastructure development, green economy, food security, and the tourism sector, among others.
Unlike the slow policy implementation observed over the past decade, government has followed through with reforms in the energy sector. It is worth highlighting that this is a sector that was already beset by crisis. Elsewhere, the departments of Agriculture, Land Reform and Rural Development, and Trade, Industry and Competition have followed up with sectoral master plans. These include building local industrial capacity, for both domestic and export markets. The master plan for agriculture and agribusinesses, for example, has included government, farmer organisations, agribusiness, commodity organisations and labour representatives. This process too could suffer inertia if it only leans on grand ideas which are not implemented.
SA in the World: Navigating a changing African landscape (IOL)
Following its tenure on the UN Security Council and as rotating chair of the AU, South Africa will have to continue to engage in the conduct of strategic geopolitical power diplomacy if it is to regain the “punching above its weight” momentum on the international scene it once enjoyed. The challenge here continues to be compounded by a global pandemic in the form of Covid-19 and South Africa’s weakened domestic economic predicament. If the country does not act decisively, it will find itself in a disadvantageous diplomatic position on the continent and internationally for years to come as the ground continues to shift beneath its feet.
This is because of the unfavourably aligned global balance of forces working against progressive internationalism and how this anti-progressive alignment is unfolding on the continent, including within the Southern African Development Community (SADC). In an increasingly complex landscape, South Africa will have to adopt a geopolitical risk analysis approach to preparing for the unknown and planning for multiple scenarios in the region and beyond. This would allow the country to devise well balanced strategies and actions with available resources at a bilateral level as well as within continental bodies.
Local dairy industry on the verge of imploding (New Era)
Major players in Namibia’s dairy industry last week warned of the imminent collapse of the entire sector, and requested government to consider mechanisms to save both jobs and businesses. Producers and farmers have expressed concern as the country’s milk production has already dropped by 50% during the last three to four years, while feed costs have risen to account for between 70% and 85% of production costs.
When asked how Namibia’s small producers can compete with larger international producers, Prinsloo replied that the dairy business is a value generator based on volumes. She explained that supporting local producers will not result in a price increase for Namibian consumers because “with more volumes, the producers can ask less for their product as the production cost will be less”.
Ban all maize exports, parliamentary committee tells government (Malawi Nyasa Times)
Despite the country registering a bumper maize harvest during last agricultural season there are fears that there could be a scarcity of the commodity in the near future and the parliamentary committee on agriculture has advised government to consider issuing a maize export ban.
Among others, the Committee cited the heightening rise of fertilizer prices as a factor that would affect the amount of maize produce in the next growing season.
According to Suleman, the ban would be in the best interest of all Malawians and that it would be reasonable to suspend exportation of maize now until the country was sure of a surplus. Grain Traders and Processors Association Chairperson, Grace Mijiga Mhango, advised government to purchase more produce through Agricultural Development and Marketing Corporation (ADMARC) and National Food Reserve Agency (NRFA) before exporting.
“Government should not rely on maize in the hands of private sector players as some can informally export or hoard it at will,” Mijiga-Mhango warned. But trade minister, Sosten Gwengwe, said the food balance sheet informs that Malawi has achieved excess maize.
Kenya, Uganda locked in new sugar trade dispute (Daily Monitor)
Uganda has protested a 79 percent cut on its scheduled sugar exports to Kenya, reigniting trade disputes between the two East African Community states. Agriculture Minister Frank Tumwebaze said Thursday Uganda was “not happy” with restrictions on its sugar exports to Kenya. “We need an honest conversation about these trade restrictions from your side,” he said in a tweet addressed to his Kenyan counterpart, Peter Munya.
Kenya’s Trade Cabinet Secretary Betty Maina and her Ugandan counterpart had in April this year agreed that Uganda would export 90,000 tonnes of sugar to Kenya as soon as the verification mission on the country of origin was completed. A deal between the two countries allowed Uganda to export surplus sugar into the country three years ago. But Nairobi delayed the implementation until late last year when the neighbouring state was allowed to ship in 20,000 tonnes of the 90,000 tonnes surplus that it had requested.
The change of plans by Kenyan authorities have rubbed their Ugandan counterparts the wrong way amid threats of retaliatory action.
Importers raise concern on rising insecurity, heated politics (Business Daily)
Traders have expressed fears that increasing insecurity along Northern Corridor and rising political temperatures ahead of next year general election might heavily hurt Mombasa port business. Importers have asked the government and leaders to intervene in boosting security and lowering political temperatures to avoid a situation where traders will give Mombasa port a wide berth. “We are worried with the increasing insecurity along Uganda-South Sudan route and the ongoing political temperatures in Kenya. We have seen chaos before during elections and lost a lot of goods while in transit. We do not want to incur this as from next next year,” said Hedlam Kariuki, a Kenyan importer. Shippers Council of Eastern Africa (SCEA) chief executive officer Gilbert Lagat echoed the traders’ fears saying there is need to reassure importers of their safety so that they continue using the port.
Kenyan horticulture companies target Italian market at fair (Business Daily)
Ten Kenyan horticulture companies are looking to gain a foothold in the Italian market through this year’s Macfrut Digital Trade Fair in Rimini, Italy. The three-day event, which will run from September 7 to 9, will see participants showcase their products as well as attend meetings with the world’s leading exporters, importers, technicians, experts and investors in value addition.
The fair is expected to give a shot in the arm for Kenyan exports to Italy, which dropped from Sh5.3 billion in 2015 to Sh3.5 billion in 2019. It will also help the horticulture sector firm up its good performance this year, where earnings for the first six months rose by 29.5 percent to hit Sh68.6 billion ($624 million).
KRA seizes 25 export containers, spared Sh75m tax loss (Business Daily)
The Kenya Revenue Authority (KRA) has seized 25 containers loaded with hides and skins worth millions of shillings at the Mombasa port that would have denied the taxman Sh75 million in revenue. The agency intercepted the consignment as the traders attempted to smuggle them out of the country by bribing KRA officers. The Commissioner, Investigation and Enforcement Edward Karanja said the containers were among 50 others with hides and skins set aside for verification. “We suspected that the containers were misdeclared as other goods to evade the payment of export duties,” he said. “The government would have lost approximately Sh75 million in export duty should the culprits have managed to sneak the cargo out of the port for export,” he said. KRA says unscrupulous traders stuff containers with hides and skins at local godowns in the absence of Customs officers. They then make false declarations of goods, local exporter, country of destination and weight.
Tanzania tips balance of trade in its favour under Samia leadership (The East African)
Tanzania’s President Samia Suluhu has, over the past week, embarked on a promotion drive to attract investors and visitors to the country in efforts to revive the economy, amid positive sentiment that has recently tipped the balance of trade in favour of Dar es Salaam.
The president’s diplomatic and trade charm offensive has already begun bearing fruit. Data from the region’s central banks shows that East Africa’s largest economy, Kenya, is losing ground to Tanzania, in a turn of tables by Dodoma, as political temperatures rise in Nairobi ahead of next year’s general election. The shift in trade flow within the East African Community signals Tanzania’s slow but sure growth after years of languishing in Kenya’s shadow. Observers say the tide may be irreversible, especially if Dodoma attracts the requisite funding for its big-ticket projects in infrastructure, energy, agribusiness and information and communication technology.
Tanzania’s changing fortunes are coming at a time when Kenya and Uganda are reporting lower figures in their bilateral trade over the past six months, with the credit going to President Samia’s efforts to address tariff and non-tariff barriers since assuming office in March.
According to the latest trade statistics, Kenya’s imports from Tanzania, comprising mainly cereals, wood and edible vegetables, grew by 70 percent to $159.48 million in the six months to June, compared with the corresponding period in 2020.
Nigeria’s merchandise trade rises by 23.28% to N12.02 trillion, records trade deficit of N1.87 trillion (Nairametrics)
Nigeria’s Total Merchandise trade rose by 23.28% to N12.02 trillion in the second quarter of 2021. This was disclosed by the National Bureau of Statistics (NBS) after its “Foreign Trade in Goods Statistics – Q2, 2021” was released over the weekend. The NBS added that the figure rose to N12.02 trillion from N9.75 trillion recorded in Q1, due to a sharp increase in export value during the quarter under review. They added that the export component of the trade was valued at N5.07 trillion or 42.2% while import was valued at N6.95 trillion or 57.78 %
AfCFTA: Dangote Group Projects $12 billion Annual Revenue (THISDAYLIVE)
The President of the Dangote Group, Mr. Aliko Dangote, has disclosed that the African Continental Free Trade Area (AfCFTA) would offer his conglomerate a business opportunity that is estimated to be worth $12 billion per annum. Dangote made this disclosure during a “High-Level Roundtable Discussion on Industrialisation in Africa,” which was organised by the Manufacturers Association of Nigeria (MAN) as part of the activities to mark its 50th anniversary celebration.
He said: “You know that long before the AfCFTA, we have always designed and planned to be an export-based company. We (Dangote Group) are interested in the AfCFTA because we are going to be its major beneficiaries. Number one, if you look at it today, we have the largest fertilizer plant in Africa so we will supply fertilizer all over the continent. We are building the largest petrochemicals on the continent. Dangote also said that manufacturing in Africa would become globally competitive when industries in the continent begin to produce very high-quality products at the cheapest possible cost.
Boosting cooperation, trade exchange with African countries on top of Egypt’s priorities: Trade minister (Ahram Online)
Egypt’s Trade and Industry Minister Nevine Gamea said that boosting cooperation and trade exchange with African countries is at the top of the state’s priorities in a meeting on Sunday with the Egyptian Micro, Small, and Medium Enterprises Development Agency (MSMEDA) and representatives from the Common Market for Eastern and Southern Africa (COMESA). She said that the MSMEDA is coordinating with all bodies concerned to benefit from the promising African market by opening new vistas for exporting the products of small businesses. The meeting also tackled means of providing services for the 50 Million African Women Speak Platform (50MAWSP) — which is the first platform to group 50 million women in the trade and industrial domains in 38 African countries.
Seychelles Affirms Commitment to COMESA (COMESA)
The President of Seychelles His Excellency Wavel Ramkalawan has affirmed his government’s commitment to COMESA and called for deepening of regional integration through increased intra-regional trade among the 21 Member States. President Ramkalawan says the COMESA region needs to move from mere discussions and signing of agreements to implementing decisions that will produce tangible progressive results which will have a positive impact on the lives of its citizens. He was speaking at State House in Victoria on Mahe island in Seychelles on 31st August 2021 when he met COMESA Secretary General Chileshe Mpundu Kapwepwe who was on a four-day official visit to that country. “My government is committed to COMESA and expect our full support. As an organization, we need to move to making positive impact on the ground. We need programmes that our people will directly benefit from. Decisions made at the various meetings need to be implemented,” said President Ramkalawan.
Africa
Prof. Quaynor wants AfCFTA to consider cryptocurrencies in digitisation drive (Business24)
Prof. Nii Narku Quaynor, chairman of Ghana.com and regarded as the “father of the internet” in Ghana, has proposed that the continent incorporate emerging technologies such as cryptocurrencies and block chain in the African Continental Free Trade Area (AfCFTA) digitisation drive. According to him, Africa loses billions from intra-regional trading in foreign currency, and he believes adopting an African Union coin to fund Africa’s Agenda 2063 will revolutionise the continent’s trading activities. Speaking virtually at the Africa Digital Forum (ADF), Accra edition, on the theme “The Digital Challenge, Africa’s Opportunity under AfCFTA”, he said “one forward-looking proposal is to take advantage of advances in cryptocurrencies and block chain and issue [the] African Union coin to fund Africa’s Agenda 2063, and we will trade only in African Union coin among ourselves.”
A W T N, AfCFTA sign partnership to boost intra-regional trade (Business24)
The Africa World Trade Network (AWTN) has signed a partnership agreement with the Africa Continental Free Trade Area (AfCFTA) Secretariat to accelerate intra-regional trade and investment through exhibitions, meetings, and events. The partnership seeks to mobilise private sector actors across Africa to drive the attainment of strategic objectives that underpin the AfCFTA agreement. It is also to work towards three common objectives that support continental trade and investment promotions across Africa and promote the overall objectives of the AfCFTA agreement.
The objectives include co-organising and hosting forums that support continental trade and investment promotions in Africa and promote the overall objectives of the AfCFTA agreement; supporting the growth and development of Africa’s commercial community and collaborating on matters of common interest in the pursuance of enhancing intra-trade on the continent.
Mr. Otwasuom Osae Nyampong VI, Board Chair of AWTN in a statement, said “Intra-regional trade promises a real win for Africa, and the AfCFTA Secretariat is at the forefront of this significant progress in the continent’s history.”
EAC promotes women’s participation in AfCFTA MI (Tanzania Dailynews)
Traders in Africa, especially women, youths and SMEs face significant challenges when attempting to benefit from multilateral and regional trade agreements as many trade agreements do not include their specific needs and concerns. This was said recently during a two-day East African Community (EAC) workshop aimed at enhancing the participation of women in the African Continental Free Trade Area (AfCFTA).
Mr Bazivamo, who represented the EAC Secretary General, said that the goal of the EAC was to ensure that women in the region were fully equipped and capable of accessing and exploiting the numerous opportunities and benefits that accrue from the AfCFTA initiative, adding that the continental free trade area provides significant business opportunities for the region.
The Deputy Secretary General disclosed that the EAC had initiated a number of steps towards implementation of the AfCFTA Agreement. “We have now almost finalised the submission of our tariff offers, which conform to the agreed modalities in addition to the schedules of liberalisation of trade in services. We have also prepared a draft strategy for implementation of the Agreement, which takes into account the need for capacity building. It is presently under consideration by the Partner States,” said Hon Bazivamo. “Further, we are also fully involved in negotiations on the outstanding areas such as Rules of Origin, Trade in services as well as the phase II issues on investment, competition, intellectual property rights and e-commerce,” he added.
The Trillion Dollar Investment Framework for Africa - In Support of AfCFTA Implementation (Proshare Nigeria)
This Investment & Financing Framework is an initiative by the African private sector in partnership with the African Union, and led by AfroChampions, to create the first phase of an investment framework within which the private sector can take advantage of the AfCFTA to not only trade, but also invest in infrastructure, set up industries, add value to goods and services, increase intra-Africa trade and eventually transform the continent.
For AfCFTA to succeed, a set of preconditions must be created These include Cross-border transportation networks for the movement of goods and people. Regular and stable supply of power to industries at competitive tariff and the removal of non-tariff barriers to trade
Unlike other parts of the world, where free trade blocs were created at a time cross-border infrastructure and industries already existed, these basic requirements will now need to be created in Africa. The infrastructure shortfall alone is estimated by the AfDB at almost two trillion dollars ($2 trillion) over a ten-year period. The AfCFTA is therefore not just a trade treaty but a program that opens the door to one of the biggest opportunities for the private sector to transform the continent by investing in infrastructure and industries to increase intra-Africa trade and create wealth. AfCFTA holds the key to trigger an infrastructure and economic transformation of Africa.
“UNIDO is a key partner in the preparation of the many strategic documents that will be considered by the Committee before their submissions to the Heads of State and Government during the African Union (AU) Summit on Industrialization and Economic Diversification, which will take place in November 2021”, said Li. “UNIDO is proud to co-organize the Summit, and to foster inclusive and sustainable industrial development in Africa”. The DG also highlighted an ongoing collaboration on Regional Value Chains-development, affirming that “under the leadership of the AUC, UNIDO and other partners have initiated a collaborative study on the mapping of regional value chains. We hope that the findings from this study will contribute to the development of a robust evidence-based pan-African regional value chain strategy”. The study will result in the formulation of an Action Plan for implementation of Regional Value Chain Upgrading programmes that take advantage of the opportunities offered by the AfCFTA. The study is expected to support the establishment of a new industrialization framework for the continent that would take into account Africa’s changing socio-economic and political landscape, including the impact of the COVID-19 pandemic”.
Africa’s Commodities Strategy; Value Addition for Global Competitiveness (African Union)
Africa has about 12% of the world’s oil reserves, 42% of its gold, 80%–90% of chromium and platinum group metals, and 60% of arable land in addition to vast timber resources. Africa experienced a commodity boom during the early 2000s translating into the continent’s unprecedented growth that was only disturbed by the onset of the global financial crisis of 2008. Whilst the Continent was able to recover from this global shock by 2010, and rebounded with a strong growth rate of 4.6% on average, this boom did not translate in to consummate economic diversification that would have led to faster social-economic development for Africans. In addition most African economies still rely heavily on commodity production and exports, with minimal value addition and even fewer forward and backward linkages to other sectors of the economy.
However, in recent years and prior to the COVID-19 Pandemic, many African economies had been pursuing reforms aimed at integrating into the world economy and were as a result, experiencing substantial economic growth. This growth has primarily been supported by commodity exports. Transforming Africa from a raw materials exporter to a producer of market-competitive value added products will require the continent to integrate into regional and global value chains and promote horizontal and vertical diversification anchored in value addition, innovative approaches and local content development.
The African Mining Vision: Transparent, equitable and optimal exploitation of Africa’s mineral resources (African Union)
The vision for a well-structured and properly managed African mining sector is encapsulated in the African Union’s African Mining Vision (AMV) which calls for the “Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development”.
The AMV envisages an African mining sector that is: Knowledge-driven and contributes to growth & development which is fully integrated into a single African market; Sustainable and well-governed and effectively garners and deploys resource rents, is safe, healthy, gender & ethnically inclusive, environmentally friendly, socially responsible and appreciated by surrounding communities; A key component of a diversified, vibrant and globally competitive industrialising African economy Helping to establish a competitive African infrastructure platform, through the maximisation of its propulsive local & regional economic linkages; Optimising Africa’s finite mineral resource endowments and that is diversified, incorporating both high value metals and lower value industrial minerals at both commercial and small-scale levels; Harnessing the potential of artisanal and small-scale mining to stimulate local/national entrepreneurship, improve livelihoods and advance integrated rural social and economic development; A major player in a vibrant and competitive national, continental and international capital and commodity markets.
EABC asked to help improve trading climate in the region (Tanzania Dailynews)
MEMBERS of the business community in Zanzibar have appealed to the East African Business Council (EABC) to help push for a conducive environment in the region so as to improve trade amid Covid-19 pandemic. The call was made here yesterday at the ‘EABC-CEO Breakfast Roundtable engagement on EAC Regional Integration’. The meeting was organized by the EABC in collaboration with the Zanzibar National Chamber of Commerce (ZNCC) under the theme ‘Enhancing a private led integration and emerging opportunities’. Non-Tariff barriers (NTBs), unnecessary multiple levies within Zanzibar, high costs in air transportation and reluctance to accept or recognize goods bearing ‘Zanzibar Bureau of Standards (ZBS)’ mark in East African market, are some of the issues raised during the roundtable.
€18,5 million disbursed under SADC TRF (SADC)
The Southern African Development Community (SADC) Trade Related Facility (SADC TRF) has to date disbursed 81% (€18.5 million) of the grant funding earmarked for 12 SADC Member States.
After 90 months of operation, the SADC TRF is scheduled to conclude its work in March 2022. Sustainability of the TRF outputs and outcomes will be ensured by close collaboration with successor programmes such as the Trade Facilitation Programme (TFP) and the Support to Industry and the Productive Sectors (SIPS).
The outputs have also covered trade facilitation under which there has been adoption of online systems for reporting and resolving Non-Tariff Barriers, upgrading of the Automated System for Customs Data (ASYCUDA) and National Single Window clearance systems and training of customs officials, and accreditation of clearing and forwarding agents to build their capacity to lodge correct customs clearance documentation across the SADC Region. ASYCUDA is an integrated customs management system for international trade and transport operations in a modern automated environment.
The outputs realised by the TRF in capacitating Member States to domesticate the provisions and benefit from the SADC Trade Protocol and SADC- EPA include enhancing customs cooperation resulting in the development of one stop border instruments and coordinated border management systems.
COMESA to Host 1st RECAMP Steering Committee Meeting (COMESA)
The inaugural Steering Committee (PSC) meeting for the Regional Enterprise Competitiveness and Access to Markets Programme (RECAMP) is expected to be held virtually on Tuesday 7 September 2021. The PSC meeting will provide an opportunity to review the progress made towards implementation of the RECAMP activities that commenced in January 2020 as well as review some of the key challenges encountered so far. According to a statement issued from the COMESA Secretariat, this meeting will enable stakeholders to come up with key recommendations and overall policy and strategic guidance, necessary for the smooth implementation and coordination of the programme. The RECAMP is funded under the 11th European Development Fund to the tune of Euro 8.8 million. Through this support, RECAMP is expected to galvanize the deepening of regional economic integration in the COMESA region by increasing and strengthening private sector participation in regional and global value chains. The main focus will be on three priority value chains namely, Agro-processing, Horticulture and Leather and Leather Products.
EAC says industrial parks key to increasing regional trade (Capital FM Kenya)
The East African Community (EAC) Secretary-General, Peter Mathuki says that investments in industrial parks and infrastructure is key to boosting the region’s competitiveness and subsequently increase Intra-EAC trade. Mathuki, who spoke in Dar es Salaam during the opening session of the East Africa Trade and Industrialization Week, urged EAC partner states governments to focus on strengthening institutional frameworks and policies that will accelerate economic growth in the region. “Currently, manufacturing contributes to GDP a meagre 8.9%. To achieve the set target of 25% in 2032, there is a need for diversification of the manufacturing base and raising local value-added content resource-based exports,” he said. He said enhanced industrial productivity could be achieved through an agricultural development-led industrialization strategy and strengthening of research and technology.
“Instead of competing, EAC Partner States need to complement each other. Harnessing our comparative advantage by collectively improving infrastructure connectivity will fast-track regional development,” Mathuki added.
Steering the right course for Africa’s prosperity (BusinessAMLive)
THE PROSPECTS OF A PROSPEROUS AFRICA should be the preoccupation of all African leaders now. But that is not likely to happen based on many factors. Let us be clear, things don’t just happen in policy space or diplomatic relationships. Events are products of deliberate actions or inactions. Beginning with trade, Africa still remains the least relevant in global trade, contributing to less than five per cent of global trade. The continent-wide contributions have remained mostly in commodities in their raw, unprocessed forms. So, in terms of value, Africa’s revenues from the commodities are infinitesimally low. A continent-wide strategy therefore has to be built around the subject of Africa within the context of global value chains (GVC). But this may continue to remain problematic based on governance issues.
Dependence on natural resources explains this tardiness in part. It shapes the local politics of countries and their foreign relations and diplomatic leanings. Countries that depend mostly on export of raw natural resources for their national revenues will be reluctant to allow certain changes. While many countries of the world are actively promoting renewable energy and pushing the use of mineral oil to the background, Nigerian government is still actively exploring new oilfields.
The first continental review Conference of the Global Compact for Safe, Orderly and Regular Migration (GCM) in Africa concluded today (1/09) with a call for greater collaboration among countries in Africa to implement this global framework and reap the benefits of migration for all.
“Last year, the COVID-19 pandemic has wreaked havoc around the globe and ravaged our communities, with particular impacts for the most vulnerable, including migrants and people on the move,” said António Vitorino, Director-General of the International Organization for Migration (IOM) and Coordinator of the UN Network on Migration. The COVID-19 pandemic has severely disrupted trade and travel on, to and from the continent, leading to a spike in unemployment. This threatens to undo much of the progress that has been achieved in recent years with increasing numbers of migrants facing food insecurity and compromised access to health-care services. “The GCM continental review for Africa is a prime opportunity for governments and stakeholders to work together and learn from each other to address migration in all its dimensions,” Vitorino concluded.
“As we discuss the progress made towards the implementation of the GCM in Africa, we need to take into account the significant linkages this will have with the success of the African Continental Free Trade Area (AfCFTA), which marks a significant milestone towards the realization of the free movement of people, goods, and capital on the continent, and progress towards enhanced availability and flexibility of pathways for regular migration” said Thokozile Ruzvidzo, Director of the ECA Gender, Poverty and Social Policy Division in a speech read on behalf of ECA Executive Secretary Vera Songwe.
Kagame: Donations insufficient, Africa needs to manufacture vaccines (The East African)
Covid-19 vaccine donations will not cut it for Africa, and the continent needs to be serious about setting up vaccine manufacturing plants so as to end reliance on the West, Rwandan President Paul Kagame has said. His remarks come a week after BioNTech, a German biotechnology company producing the Pfizer vaccine, announced that it was looking to build vaccine manufacturing sites in Rwanda and Senegal. “It takes a long time for African countries to get Covid-19 vaccines, and when the vaccines get here, many people are already in critical health conditions. That is why it is important for Africa to find a way to manufacture vaccines,” Kagame said in a televised interview on Rwanda Broadcasting Agency on Sunday.He said that vaccine plants in Africa, such as the one his country is planning to construct, would help to end the monopoly of the West and save many lives on the continent.
India bets on health diplomacy to expand presence in Africa (FairPlanet)
As COVID-19 continues to rage across Africa, and as developed nations persistently withhold vaccines from low income countries, India resorts to health diplomacy as a way to tighten its grip on the African continent and cement its position as a global power. Over a year into the world’s most devastating health crisis, and as developed nations advance vaccine nationalism at the expense of hundreds of low income countries (the majority of which are in Africa), India, recognised as the world’s pharmacy, is changing tact by dedicating its medical supplies to the African continent either as gifts or at subsidised rates. Beyond the gesture, analysts predict that this health diplomacy is a strategy used by India to grow its toehold on the continent, arguing that the COVID-19 pandemic has given it a perfect opportunity to do so.
Indo-Africa relations date back to the colonial era when the two regions were fighting against their oppression by colonial rulers. “India knows that it has a strategic standpoint in its relations with Africa. Unlike the Western nations that have the burden of colonialism and China that has been accused of advancing debt trap diplomacy, [India] has had cordial relations with the continent,” said Gerald Makau, an International relations expert. “Health diplomacy therefore gives [India] a perfect chance to advance its agenda in Africa.”
Global
How cooperation on trade can help tackle plastic pollution | UNCTAD
Cooperation on trade is critical to global efforts to tackle plastic pollution, one of today’s most evident and persistent environmental problems. That was the message from several speakers at a high-level event organized by UNCTAD, the UN Environment Programme (UNEP), the Forum on Trade, Environment and the SDGs and Ecuador on 2 September. The event highlighted where and how trade and trade policies are relevant to plastic pollution, and the need for stronger international efforts and cooperation to tackle plastic pollution, including through a proposed new global treaty under the UN Environment Assembly. “Plastic is everywhere. It’s a multi-faceted, big business,” said UNCTAD Acting Secretary-General Isabelle Durant. “Global plastics trade is worth at least $1 trillion, and virtually every country is involved.”
Ms. Durant said cooperation on trade can play a big role in tackling the plastic pollution menace because “trade occurs at every step in the plastics lifecycle; from its fossil fuel inputs, to intermediate products, final goods and even waste.” She outlined how trade and development policies and negotiations can be essential vehicles for change in the fight against plastic pollution. “Multilateral trade rules should ensure that national regulations, bans, taxes and other mechanisms meant to tackle plastic pollution are set in a fair, non-discriminatory and transparent manner,” she said.
UAE to grow Asia, Africa trade, seeks US$150b investment (The Business Times)
THE United Arab Emirates (UAE) is deepening its trade ties in fast-growing economies in Asia and Africa, and plans to draw US$150 billion in foreign investment from mainly older partners to reposition itself as a global hub for business and finance. Only one of the countries in Sunday’s announcement is from the region, suggesting a growing shift towards markets further afield. They include South Korea, Indonesia, Kenya, Ethiopia and Turkey, where ties with President Recep Tayyip Erdogan have warmed dramatically in recent months after years of tensions over regional politics.
Caribbean Export calls for greater trade and investment partnerships between the region and Africa (Jamaica Observer)
Head of the the Caribbean Export and Development Agency (Caribbean Export) Deodat Maharaj has called on Caribbean countries to deepen ties and leverage greater partnerships with Africa. “The opportunities to partner with Africa and a market of an estimated 1.4 billion people are immense. As we seek to advance an agenda for a resilient Caribbean, it is not only important to shore up existing trade partnerships but to also look to new relationships on the trade and investment front. The world is changing and so must we,” the executive director said in a recent statement where he also encouraged regional businesses, private sectors, chambers of commerce and manufacturers associations to establish relationships with their counterparts on the continent. The Caribbean Export head said that while the entire world was reeling from the effects of the novel coronavirus pandemic with most countries and regions, including the Caribbean, showing economic contraction, recent studies done by the African Development Bank noted that real gross domestic product (GDP) for that continent is expected to grow by 3.4 per cent .
The most interesting trade dispute you’ve never heard of (TheHill)
The European Union (EU), the world’s single largest consumer of cocoa, is causing havoc in global markets, worrying several of the poorest countries in Africa and Latin America. The EU contends that it is trying to limit child labor, deforestation and exposure to cadmium. Peru and others allege disguised protectionism. It’s the chocolate wars, and it’s a wake-up call for U.S. agricultural exporters. Europe has also opened up another front in the chocolate wars, this one backed up by non-governmental organizations like Fairtrade, and companies like Nestle. Talking about Cote d’Ivoire and Ghana, in particular, the group says there is a “cocoa poverty trap” that needs to be solved by getting Europe to incentivize “sustainable” production.” As the EU’s ambassador to Cote d’Ivoire explains, “[t]he European consumer wants to eat chocolate without having to think about child labor, deforestation or the poverty of those who grow cocoa.”
WHO to G20 Health Ministers: Meet COVID-19 pledges, support regional vaccine manufacturing (UN News)
Despite hopes that by now the pandemic would be under control, the head of the UN’s health agency told the G20 leading industrialized nations Health Ministers Meeting in Rome on Sunday that ”the opposite is true”. Director-General of the World Health Organization (WHO) Tedros Adhanom Ghebreyesus pointed out that “many countries continue to face steep increases in cases and deaths” – despite that more than five billion vaccines have been administered globally.
“But almost 75 per cent of those doses have been administered in just 10 countries”, he explained, adding that at 2 per cent, Africa has the lowest vaccination coverage. “This is unacceptable”.
Innovative Financing for the Sustainable Development Goals (International Banker)
The Sustainable Development Goals (SDGs) have increasingly transformed how the private sector operates to achieve inclusive and sustainable development. Corporations are beginning to realign their priorities with the SDGs in the face of increasing pressure from consumers, investors and employees. Innovative business models such as social enterprises and inclusive businesses are emerging, which purposefully aim to address social and environmental challenges as well as provide products and services to those at the base of the economic pyramid.
In order to scale up their impact, these enterprises need additional investment. Prior to the COVID-19 pandemic, it was estimated that developing countries in the Asia-Pacific region would need an additional annual investment of $1.5 trillion to achieve the SDGs by 2030. In a post-pandemic world, this figure is likely to be significantly higher, and private-sector investors are key to bridging this gap. If even a fraction of the $50 trillion in assets managed by the financial sector in the Asia-Pacific region were channelled towards enterprises that contribute to the SDGs, their achievement by 2030 would be within reach.
Adopt new support policy for LDCs (The Daily Sun)
Bangladesh has urged the global community for a new support policy for the LDCs and the graduating LDCs as the pandemic affected the economies, especially of the developing nations, enormously. Foreign Minister AK Abdul Momen made the call at the high-level opening session of the four-day Asia-Pacific Regional Review Meeting, which began at the UN Headquarters in Geneva on Monday.
During the meeting with Dr Tedros Adhanom Ghebreyesus, director general of WHO, Momen yesterday emphasised WHO’s effective role to ensure the availability, affordability and equitable distribution of Covid-19 vaccines for the developing countries.
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Lockdown restrictions likely to slow South Africa’s Q2 GDP growth (Daily Maverick)
Softer mining production anticipated, while declines in manufacturing output and negative sentiment towards construction point towards a slowdown in GDP growth for the second quarter. Gross domestic product (GDP) figures due for release on Tuesday, 7 September, will likely show that the rate of economic growth in South Africa in the second quarter slowed, with manufacturing and retail sectors offsetting expansions in mining and agriculture driven by a global boom in demand for commodities.
Economist at Momentum Investments Sanisha Packirisamy sees growth at closer to the 1% mark. “We expect mining and manufacturing data to lag, but a mild recovery in the services-related sectors (accommodation, transport and restaurants) is anticipated given that the end of the second wave brought about some activity in these sectors,” said Packirisamy.
Economic Reconstruction, Recovery Plan to address soaring unemployment (SAnews)
The country’s dire unemployment statistics have brought to the fore the urgency for the public and private sector to expedite the implementation of the Economic Reconstruction and Recovery Plan (ERRP) to address the devastating effects of COVID-19, says Cabinet.
South Africa companies could develop trade with Romania, European area via Constanta Port (ACTmedia)
South African companies could use the Port of Constanta as a logistics hub within the trade operations with Romania and the European area, the president of the Chamber of Commerce and Industry of Romania (CCIR), Mihai Daraban, told Thursday the Deputy Minister of International Relations and Cooperation of South Africa, Alvin Botes, during the visit made by the latter to the institution’s headquarters.
SA encouraged to support local tourism (SAnews)
With Tourism Month having kicked off, Cabinet has encouraged South Africans to travel their country supporting the local tourism sector.
Focus on South Africa’s critical PGMs supply role increasing – Implats (Engineering News)
The critical role South Africa plays in the supply of platinum group metals (PGMs) is gaining increasing focus, Implats said on Thursday. Following a period where South Africa’s relevance and the country’s importance tended to be discounted on the assumption that sourcing could be done from mainly recycling, provision for the new hydrogen vision has highlighted South Africa as a critical PGMs provider to ensure future growth.
Uganda protests move to reduce its sugar exports to Kenya (The East African)
Uganda has protested a 79 percent cut on its scheduled sugar exports to Kenya, reigniting trade disputes between the two East African Community states. Uganda’s Agriculture Minister Frank Tumwebaze said Thursday his country was “not happy” with restrictions on its sugar exports to Kenya.
Mr Tumwebaze was reacting to a notice by the Sugar Directorate in Nairobi that traders will only be allowed to import 18,923 tonnes of sugar from Uganda, down from 90,000 tonnes that Kenya had earlier said would be shipped in from its landlocked neighbour. Kenya’s Trade Cabinet Secretary Betty Maina and her Ugandan counterpart had in April this year agreed that Uganda would export 90,000 tonnes of sugar to Kenya as soon as the verification mission on the country of origin was completed. A deal between the two countries allowed Uganda to export surplus sugar into the country three years ago. But Nairobi delayed the implementation until late last year when the neighbouring state was allowed to ship in 20,000 tonnes of the 90,000 tonnes surplus that it had requested.
With 115m Tons Annual Import Deficit in Air Cargo, Nigeria May Lose Benefits of AfCFTA (THISDAY Newspapers)
Nigeria may not benefit from the African Continental Free Trade Area (AfCFTA), which favours countries that export high volume of products and services, as records indicate that the country exports only about 13 per cent of its cargo imports, which amounts to 115 million tons annual import deficit.
According to 2019 records of the Federal Airports Authority of Nigeria (FAAN), Nigeria’s annual air cargo import stands at about 131 million tons, while it exports only 16 million tons by air.
Aviation expert and specialist in cargo freighting Mr. Amos Akpan, warned that Nigeria is losing income it could have earned from export by air cargo because it did not build capacity for export. He regretted that most cargo flights that bring goods to Nigeria fly back empty because there are not products to take out of the country.
“The World Trade Systems capture air cargo as integral part of the entire logistics chain. As at 2020, air cargo accounted for 35 per cent of the movement of goods worldwide. Air cargo is critical to world economy; International Air Transport Association (IATA) records six trillion dollars as airlines contribution out of which air cargo generated $111 billion. The resolution from the 73rd AGM of IATA is to equip air cargo to benefit from the anticipated $1 trillion increase in trade growth in the next five years. All sectors of our socio-economic life depend a lot on air cargo. In medicine, air cargo is relied upon to deliver vaccines and body organs on-time to save lives,” Akpan said.
AfCFTA cannot fail under Ghana’s watch so get involved -Gov’t to private sector (The Business & Financial Times)
Addressing a stakeholder engagement forum on leveraging opportunities under AfCFTA to boost economic growth in Ghana, organized by the Good Governance Africa (GGA), a Deputy Minister of Trade and Industries in charge of Micro, Small and Medium Enterprises, Nana Ama Dokua Asiamah Adjei emphasized that beyond working hard to have the AfCFTA Secretariat in Ghana, the government has also created the enabling environment for the private sector to own the AfCFTA and use it to their benefit and the benefit of Ghana and Africa as a whole.
Ministry of Trade justifies agreement that gives EU 80 percent access to Ghanaian market (BusinessGhana)
The Ministry of Trade and Industry says it will not allow Ghana to become a dumping ground for goods from the UK following the Ghana-UK: Tariff liberalization interim trade agreement which began on Wednesday, September 1, 2021. The tariff liberalization exercise will see Ghana reduce some tariffs on goods coming from the UK. The interim trade pact was ratified by the Parliament of Ghana in May 2021 after the UK completed processes to exit the European Union. This provided an opportunity for renegotiation of new tariff regimes in line with the partnership. Already, Ghana is benefiting from the treaty, as vegetable and fruit exporters enjoy duty and quota-free access to the UK market for goods originating from Ghana.
Africa
We need standards to govern e-commerce under AfCFTA — Prof. Dodoo - Graphic Online
Director-General of the Ghana Standards Authority, Professor Alex Dodoo, has said that e-commerce, under the African Continental Free Trade Area (AfCFTA), must be governed by standards. As such, he said, there was the need for the development and implementation of the technical regulations of such standards. Speaking at the Africa Digital Forum, which was organised by AIDEC, he said there must be a conscious effort to standardise e-commerce trading in the continent. He was speaking on the topic: “e-commerce, Border Trade Protocols and Standardisation under AfCFTA” This, he said, would help make locally produced materials and goods more competitive, as compared with products from other continents.
How Nigeria’ll become maritime hub for AfCFTA, Shippers’ council (Vanguard)
The Executive Secretary, Nigerian Shippers’ Council (NSC), Mr Emmanuel Jime, on Thursday listed key issues to be addressed to make Nigeria a maritime hub for the African Continental Free Trade Area (AfCFTA). Jime made the recommendations at a sensitisation seminar with the theme, ‘African Continental Free Trade Area: Implementation Strategy for the Maritime Sector,’ organised by the council. Jime, represented by Mr Cajethan Agu, Director Consumer Affair of the council, noted that there was need to look at some indicators critically so that Nigeria could benefit adequately from AfCFTA. “The first indicator has to do with the Logistics Performance Index. On the table, the first is South Africa, followed by Egypt and Kenya; Nigeria is number 14, globally we are 110.
Organisers of the Intra-African Trade Fair 2021 explain the benefits of participating in the event during a roadshow in Kenya (Afreximbank)
Kenya hosted a Country Roadshow to raise awareness about the substantial benefits of attending the second Intra-African Trade Fair (IATF2021). Organised by the African Export-Import Bank (Afreximbank) in collaboration with the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat, IATF2021 will take place in Durban, KwaZulu-Natal, South Africa from 15 to 21 November 2021. Hon. Betty Maina, Cabinet Secretary, Ministry of Industrialisation, Trade and Enterprise, Kenya said: “The South-South Co-operation created opportunities for our people, the African Continental Free Trade Area (AfCFTA) will lead to great things going forward. Inward-looking policies hindered trade, the East African Community and COMESA harnessed opportunities.”
Hon. Ravi Pillay, MEC for Economic Development, Tourism & Environmental Affairs said: “Economic transformation is about local production, trade on equal terms. The vision of the African Union must remain alive and the AfCTA is a critical step forward. The success of this event will be achieved through partnerships and working together, marking a significant milestone towards the Africa we want, a collective effort, hard work and dedication. KZN is open for business, and we are ready to host the most successful IATF 2021 event on behalf of the country, region and continent.”
African informal trade worth $93bn annually — Osinbajo (Daily Trust)
Vice President Yemi Osinbajo said that authorities across the continent must take the right policy actions to actualise limitless opportunities for the industrialisation of Africa as contained in the African Continental Free Trade Area (AfCFTA). He said this in a message he delivered Thursday at a ‘Roundtable on Industrialisation in Africa’ themed “Positioning African Industries for Economic Transformation and Continental Free Trade”, organised by the Manufacturers Association of Nigeria (MAN) to celebrate its golden jubilee. He said such actions include the protection of local industries and improving value chains. “We must take policy actions to create an environment in which businesses can thrive. To start with, we must adopt the right type of macroeconomic and industrial policies.
“This will go a long way in creating the desired continental payments system and also in facilitating cross-border informal trade which is estimated to be about $93 billion per annum.”
Top 10 countries in Africa by GDP per capita, Nigeria ranks 17th (Nairametrics)
The world economy was disrupted in 2020, due to the outbreak of the covid-19 pandemic, which brought economic activities to a halt in most countries, with Africa not exempted from the downturn. In 2020, a number of African countries fell into economic recession including Nigeria, however, the list of top economies per capita, remains fairly unchanged compared to the previous year. According to data obtained from the World Bank, the Sub-Saharan African economy declined by 2.45% in 2020 from $1.85 trillion recorded in 2019 to $1.81 trillion. Also, the middle East and North Africa region recorded a 3.66% contraction in its economy to an aggregate of $3.37 trillion.
New report signposts opportunity in Africa’s diverse aftermarket parts business (Africanews)
A new report commissioned by Messe Frankfurt Middle East, organiser of Automechanicka Dubai (www.AutomechanikaDubai.com) – the largest international trade show for the Middle East and Africa’s (MEA) automotive aftermarket and service industry – signposts huge aftermarket potential in the African continent.
Produced by German consultants Africon GmbH, which supports international companies looking to expand their automotive businesses in Africa, the report identifies Nigeria and Kenya as key to unlocking the continent’s automotive aftermarket potential and the individual characteristics needed to succeed in each national marketplace. The report points to a resurgence of international interest in the African market, which boasts one of the world’s fastest-growing populations, with the United Nation’s 2021 population estimates putting Africa at 1.374 billion.
African airlines still need help to survive heavy losses from effects of Covid-19 (Enginering News)
As the Covid-19 pandemic continues to afflict Africa, with the number of deaths increasing while the rate of vaccination remains slow, the African Airlines Association (AFRAA) has warned that the lack of support from governments and development finance institutions for the continent’s aviation and tourism industries was a major threat to the African commercial aviation sector. AFRAA warned that, should governments fail to respond to the appeals of itself, the African Civil Aviation Commission and the African Union, to supply financial support and relief to those carriers which had been most affected by the pandemic, there was a danger that the African aviation industry could collapse.
The association reported that it was forecasting that African airlines would suffer a full-year revenue loss of $8.2-billion for this year. This would be roughly equivalent to 47.2% of their full-year revenues during 2019, the last pre-Covid-19 year. Last year, African airlines suffered total losses of $10.21-billion, or 58.8% of their 2019 revenues.
Why Nairobi summit is a big deal for Africa’s agriculture (Business Daily)
The four-day AGRF 2021 Summit starts in Nairobi next week, with participants expected to chart a recovery path for Africa’s food system out of the Covid pandemic and build its resilience to future shocks. The AGRF 2021 Summit is critical for Africa’s agriculture. It is a defining moment to highlight achievements and unlock many of the political, policy, and financial commitments and innovations the continent needs to advance the pledges made at the Malabo Heads of State Summit and towards the achievement of the UN Sustainable Development Goals. Through the Agribusiness DealRoom, a matchmaking platform at the AGRF aimed at catalysing new business deals, partnerships and commitments, we were able to mobilise investments amounting to $4.7 billion in 2020. Over the last three years, the deal room has facilitated public and private actors who jointly sought an aggregate capital of $11 billion
On 9 September, the African Development Bank Group, Green Growth Knowledge Platform (GGKP), and other partners will launch a new initiative on integrating natural capital into development finance in Africa. This initiative, called the Natural Capital for African Development Finance Programme NC4-ADF, is supported by the World Wide Fund for Nature (WWF), the German Federal Ministry for Economic Cooperation and Development (BMZ) through its dedicated agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the United Nations Environment Programme (UNEP), the MAVA Foundation, the International Institute for Sustainable Development (IISD) and the Economics for Nature (E4N) partnership, with the goal of giving a central economic role to natural capital. “The inclusion of natural capital in development finance is essential for post-Covid-19 recovery,” said Vanessa Ushie, Director of the Policy Analysis Division at the African Development Bank’s African Natural Resources Centre. “The Bank recognises that nature-based approaches are key to addressing biodiversity and climate emergencies. It is working to integrate natural capital into infrastructure financing, investments, and economic policies in Africa.”
Outcomes of G20 Compact with Africa meeting welcomed (SAnews)
South Africa’s Cabinet has welcomed the outcomes of the G20 Compact with Africa meeting held in Berlin, Germany, last month. Currently, 12 African countries have joined the Compact with Africa initiative as well as the Democratic Republic of Congo in its capacity as the chair of the African Union. The meeting was held to discuss Africa’s vaccine production and to find ways to improve the business environment and to increase investment.
“We expressed our disappointment and we expressed our unhappiness and said that it’s not fair that Africa has only vaccinated 2% of the 1.3 billion people and yet the more developed countries in the North have vaccinated up to 60%. We expressed a lot of unhappiness with this inequality that currently exists. “It is to this end that South Africa and India made a proposal to the World Trade Organisation that there should immediately be a temporary suspension of the intellectual property rights so that vaccine production should be spread to other countries as well,” President Ramaphosa said.
Kenya to host the African – Caribbean Community summit Tuesday (Kenya Broadcasting Corporation)
Kenya will next week Tuesday 7th September 2021, virtually host the first-ever African – Caribbean Community (CARICOM) Summit. The theme of the Summit will be Unity Across Continents and Oceans: Opportunities for Deepening Integration. It is aimed at promoting closer collaboration between Africa Diaspora, People of African descent and the Caribbean and Pacific region and its institutions. Debt sustainability and development financing; trade investment and economic integration; blue economy and transport connectivity; fintech-related solutions; political integration between Africa and Caribbean countries; people to people contacts and cultural exchanges; COVID-19 pandemic management and AU-CARRICOM collaboration, will be among the thematic focus areas to be discussed at the Summit.
China’s Telecommunications Footprint in Africa (CGTN Africa)
China has continued to play a major role in financing and supplying telecom and ICT equipment to Africa. CGTN’s Daniel Arap Moi submits that Chinese companies like Huawei have helped to bring down charges and contributed to the success of mobile phones on the continent. Besides Huawei, Transsion Holdings group reportedly controls 40 percent of the smartphone market in Africa.
Global
India to chair BRICS Trade Ministers’ Meeting | Foreign Brief
India will chair a virtual meeting today of BRICS (Brazil, Russia, China, India and South Africa) trade ministers. Assuming the BRICS chairmanship from Russia earlier this year, India will seek to leverage today’s gathering to set priorities for the 13th BRICS summit—to be held in New Delhi— in September. Expect trade and counter-terrorism to feature prominently in discussions. The ministers will likely review measures aimed at advancing a BRICS multilateral trading system. Making progress on a non-tariff measures resolution mechanism—recommended successfully by India at the bloc’s July meeting — will be key to gauging the feasibility of developments geared towards forging the multilateral trading system.
Kenya lobbies for Commonwealth top job (The East African)
Kenya’s Interior Cabinet Secretary (CS) Fred Matiang’i Thursday lobbied for support from Zambia for Kenya’s bid for the Commonwealth top job when he met new President Hakainde Hichilema. Kenya’s President Uhuru Kenyatta last week proposed Defence CS Monica Juma for Commonwealth secretary general.
Zambia, like Kenya, belongs to the Commonwealth, colloquially referred to as the Club, and includes the UK, its former colonies, and Rwanda and Mozambique. Kenya and Zambia, both former British colonies, also belong to regional blocs such as the African Union and the Common Market for Easter
Momentum rising in WTO discussions on plastics trade, DDG Paugam notes at high-level event (WTO)
“My central message is that we detect an increasing interest from our members to discuss the environmental implications of plastic trade and plastic waste,” DDG Paugam said at the event organized by the United Nations Conference on Trade and Development; the UN Environment Programme; the Forum on Trade, Environment and the SDGs, and the Government of Ecuador titled “How can cooperation on trade contribute to the United Nations Environment Assembly (UNEA) process on plastic pollution?”
UN Food Systems Summit: Africa’s Farmers Deserve Choices (Inter Press Service)
In a few weeks, the United Nations will host the first international Food Systems Summit. The goal is to create a global movement committed to solving the many dietary, economic and environmental problems linked to the way food is produced, sold and consumed today. Africa, a continent with high rates of poverty and malnutrition that are strongly connected to poorly performing farms—and home to vast tracts of uncultivated but farmable land—will be a stress test for the summit’s aspirations.
Most Africans—including up to 90% of people living in rural communities—still rely on small-scale or “smallholder” crop and livestock production to generate the income they need to support their families. Their farms—if productive and with good access to markets—can be the blessing that pays for school fees, health care and also food to round out their family’s nutritional needs. Farming is especially important for providing economic opportunities for African women. But farming is often a burden for many Africans because they lack what they need to succeed—so their farms don’t provide sufficient incomes or even enough food. This burden grows heavier every day as the stresses of climate change and, more recently, the impact of the COVID-19 pandemic add new obstacles.
Global food commodity prices rebound in August (FAO)
Global food commodity prices rebounded rapidly in August after two consecutive months of decline, led by strong gains in the international price quotations for sugar, wheat and vegetable oils, the Food and Agriculture Organization of the United Nations (FAO) reported today. The FAO Food Price Index averaged 127.4 points in August, up 3.1 percent from July and 32.9 percent from the same month in 2020. The index tracks monthly changes in the international prices of commonly-traded food commodities.
Monetary and Macroeconomic Policies At the Crossroads (IMF)
Presentation by Economic Counsellor Gita Gopinath at the Bruegel Annual Meetings 2021
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South Africa backs GDP data despite missing mine statistics (Engineering News)
South Africa’s statistics agency maintains that its gross domestic product estimates for the second quarter will be credible amid plans to use an estimated value for missing mining data. “Although concerned about the delayed mining data, we are not concerned about the integrity of the GDP,” Statistics South Africa said Wednesday in an emailed response to questions. “We always indicate that the first estimate of each quarterly GDP is preliminary and may be revised when new/revised source data is available.”
Special Economic Zones are Key Instruments to Industrialise the Country (the dtic)
The Acting Deputy Director-General of Spatial Industrial Development and Economic Transformation at the Department of Trade, Industry and Competition (the dtic), Mr Maoto Molefane says Special Economic Zones (SEZs) are key instruments to industrialise the country and create jobs. Molefane was addressing the Limpopo Investment Conference. The objectives of the conference included attracting local and international investments; creating a network of investors, industry experts and key stakeholders in pursuit of industrialisation; and receiving investment pledges. According to Molefane, the SEZs have attracted more than R56 billion worth of private investors in the ten operational zones. 222 companies have been attracted into the zones. “We recently undertook a SEZ programme review to look at what works and what is not working. We introduced a new approach aimed at solidifying a number of instruments, including a strong involvement of national government in terms of assisting provinces to ensure that all the SEZs are accelerated, attract investment and that they are operational,” said Molefane.
How SA has shot itself in the foot with trade precedent (Business LIVE)
President Cyril Ramaphosa may, through neglect or design, be stifling the birth of the huge continental African market he needs to create for his ambitious manufacturing localisation policies at home to take root. While SA does not have an internal market big enough to support manufacturing growth on the scale of China, Russia or the US, the rest of Africa represents a real opportunity. But despite the importance of the African Continental Free Trade Agreement (AfCFTA), there is a real possibility the agreement will never function. It may be signed off and “implemented”, but there is not much hope of it actually working, and a big part of the problem lies with SA. It may have lost its leadership of the project.
US-Ghana Business Forum to deepen trade schedule for September 8th (Myjoyonline)
The American Chamber of Commerce (AmCham) Ghana in partnership with the U.S. Chamber of Commerce are organizing the 2021 U.S.-Ghana Business Forum – a high-level conference between U.S. and Ghanaian Government Officials, and Private Sector Leaders aimed at deepening commercial partnerships between Ghana and the United States as well as the U.S- Africa commercial relations in the context of the Africa Continental Free Trade Area (AfCFTA).The 2021 U.S.-Ghana Business Forum is on the theme: Promoting U.S.- Ghana Partnership through Trade and Investment, comes on the back of Ghana’s hosting of the Africa Continent Free Trade Area (AfCFTA) Secretariat and also after several months of trading through the AfCFTA- the world’s largest free trade area in terms of number of countries encompassing 1.3 billion people and about $3.4 trillion in GDP.
The forum schedule for September 8th and 9th, 2021 will be virtual. It will have plenary sessions with high-level government officials as speakers; and panel discussions on pertinent topics including Technology and Digitization, Energy and Mining, Infrastructure, Manufacturing, Services and Franchising.
The 2021 forum aims to strengthen trade and investment, promote business partnerships, and opportunities between U.S. and Ghanaian and also review trading under the Africa Continental Free Trade Area (AfCFTA) and assess how U.S. and Ghanaian companies can take advantage of this opportunity.
Nigeria’s Federal and State governments have expressed overwhelming support for an initiative to create Special Agro-industrial Processing Zones (SAPZ) - public-private partnerships aimed at developing priority value chains through developing infrastructure in rural areas, focused on finishing and transforming raw materials and commodities. At a high-level briefing session held on Monday, Minister of Finance, Budget, and National Planning Dr. Zainab Shamsuna Ahmed, who hosted the meeting, reaffirmed the Federal Government’s commitment to put in place enabling policies and incentives to attract private sector investment in the Zones, to ensure successful implementation.
The Nigeria Special Agro-industrial Processing Zone programme consists of four mutually reinforcing components - infrastructure development and agro-industrial hubs management; agriculture productivity and production; policy and institutional development; and programme coordination and management. “The Bank and its development partners are mobilizing $520 million to co-finance the first phase of the program in Nigeria, be implemented in phases across six geo-political zones,” Barrow said.
Nigeria’s Investment Climate Improving—FG | Business Post Nigeria
In recent times, many people are getting to know that if nothing was done to protect the atmosphere, businesses and the human race may pay dearly for this. This has amplified the need to adopt a sustainable lifestyle and business practices and for the Chief Executive Officer of the Nigerian Exchange (NGX) Limited, Mr Temi Popoola, there is a shift in the global financial industry in favour of sustainable business practices. He commended this development, noting that this trend is most likely to continue at an accelerating pace.
Speaking at the Facts Behind the Sustainability Report presentation by Lafarge Africa Plc on the NGX platform last Thursday, he stated that, “With the recent advancements in climate change and the global charge to achieve sustainable development, Environmental, Social and Governance (ESG) factors are increasingly becoming a critical part of the investment decision-making process. “This clearly highlights the big shift in the global financial industry in favour of sustainable business practices and this trend is most likely to continue at an accelerating pace.
Dangote Refinery Complex in Nigeria Set to Cost $19 Billion (Bloomberg)
A giant oil refinery complex being built in Nigeria by a company owned by Aliko Dangote, Africa’s richest person, will cost more than double the amount originally projected.”Our capex will almost go to $19 billion by the time we finish,” Devakumar Edwin, group executive director of Dangote Industries Ltd., said in an interview broadcast on Arise News on Aug. 31. The facility near Lagos, Nigeria’s commercial hub, was expected to cost $9 billion eight years ago, a price tag that had climbed to $15 billion by 2019. The 650,000 barrel-a-day refinery is part of a vast petrochemical project that will also house the world’s biggest ammonia plant. Once operational, the facility is intended to curb, or even end, the nation’s dependence on fuel imports -- a source of embarrassment for the government of Africa’s largest crude producer.
The refinery will be able to supply all the gasoline, diesel and aviation fuel used in the West African country, and a third of its output will still be available for export, Dangote told the Lagos-based television station. Originally set for completion in 2016, the project is now expected to be commissioned next year.
‘Suez Canal on rails’ - Egypt signs $4.5 billion high-speed rail deal (Engineering News)
Egypt has signed a $4.45-billion deal for a high-speed electric rail line to link its Red Sea and Mediterranean coasts that contractor Siemens dubbed a “Suez Canal on rails”. The contract between Egypt’s National Authority for Tunnels (NAT) and a consortium including Siemens Mobility, Orascom Construction and Arab Contractors will cover design, installation and maintenance of the rail link over 15 years, a cabinet statement said on Wednesday.
ECA-SRO-SA accompanies the launch of the report on developing a financing model for MSME in Eswatini (UNECA)
The United Nations Economic Commission for Africa (ECA, Sub-Regional Office for Southern Africa (SRO-SA) supported the launch of a new innovative, comprehensive and inclusive financing model to stimulate the sustainable growth for Micro Small and Medium Enterprises (MSMEs) in the Kingdom of Eswatini. The Financing model was officially launched by Manqoba Khumalo, Minister of Commerce, Industry and Trade who emphasized that Building back after the pandemic requires all stakeholders to participate in the implementation for recovery of local economy. He said that, “MSMEs in Eswatini have the potential to contribute considerably to employment, economic growth and poverty reduction and that Innovation-driven MSMEs can be a catalyst for structural transformation”.
Director, ECA Sub Regional Office for Southern Africa (ECA SRO-SA), Ms. Eunice Kamwendo commended the Government of Eswatini, particularly the Ministry of Commerce, Industry and Trade, for initiating the development of the MSME financing model in her remarks delivered on her behalf by the Chief Sub-Regional Initiatives, Isatou Gaye. She said that, MSMEs are widely recognised as cornerstones for inclusive and sustainable development with the potential to significantly accelerate industrialisation and support high value addition activities. She emphasizes that MSMEs have potential to promote domestic-led growth in new and existing industries, and to strengthen the resilience of the economy in a competitive and challenging environment. “The MSME sector forms the foundation for private sector led growth and expansion, and constitutes an important source of job creation and innovation”.
Africa
EAC businesses not ready for continental free trade area - Experts (Independent)
Business leaders and experts have cast doubt on whether the East African Community will benefit from the African Continental Free Trade Area, AfCFTA, that took effect January 1 this year.
In the East African Community, Tanzania is yet to ratify the deal, while other countries have not yet put in place local or national measures to ensure that the citizens benefit. The Secretary-General of the SADC Youth Council, Mansouza Kingu blamed his country, Tanzania for being an example of the countries lacking the political will towards the continental treaty, despite recently showing interest in integration affairs.
EAC Deputy Secretary-General for Productive and Social Sectors, Christophe Bazivamo, said that the goal of the EAC was to ensure that women in the region were fully equipped and capable of accessing and exploiting the numerous opportunities and benefits that accrue from the AfCFTA initiative, adding that the continental free trade area provides significant business opportunities for the region.
“We have now almost finalized the submission of our tariff offers which conform to the agreed modalities in addition to the schedules of liberalization of trade in services. We have also prepared a draft strategy for the implementation of the agreement, which takes into account the need for capacity building. It is presently under consideration by the partner states,” said Bazivamo.
It was noted that women dominate the cross-border trade between many African countries, but that not much has been done to prepare them to take advantage of the intended opportunities from the treaty. Unfortunately, these women are mostly small-scale traders and informal too. This means there is a risk that when the AfCFTA takes full effect, traders from other countries will easily invade these countries and disrupt the trade with imports into the region.
SMEs digest: Why East Africa states need to invest in industrial parks (The Citizen)
The East African Community (EAC) partner states have been implored to invest in industrial parks. The move would not only improve the competitiveness of the bloc in international trade but raise the contribution of manufacturing to the economies. The appeal was made in Dar es Salaam yesterday earlier this week by EAC Secretary General Peter Mathuki when he opened the EA Trade and Industrialization Week 2021. “Currently, manufacturing contributes to gross domestic product (GDP) a meagre 8.9 percent,” he said. He added in a dispatch to The Citizen: “To achieve the set target of 25 percent in 2032, there is a need for diversification of the manufacturing base and raising local value-added content resource-based exports”.
EABC signs MoU with Afreximbank on rolling out the Africa Customer Due Diligence Platform (MANSA digital platform) (East African Business Council)
The East African Business Council (EABC) has today signed a Memorandum of Understanding (MOU) with Afrieximbank on rolling out the African Customer Due Diligence Platform (Mansa digital platform). This partnership is set to boost East African companies and Small Medium Enterprises (SMEs) to take advantage of African Continental Free Trade Area (AfCFTA) through accessing a centralized source of due diligence information. The MANSA digital platform provides a single primary source of Know-Your-Customer (KYC) data required to conduct customer due diligence checks on counterparties in Africa with a special focus on African Corporates, SMEs and financial institutions.
Speaking at the virtual launch ceremony of the Africa Customer Due Diligence Platform, Mr. John Bosco Kalisa said” the MANSA digital platform will enable African financial institutions and corporate entities to meet customer and business partners’ expectations while ensuring regulatory compliance.”
“The MANSA digital platform is set to facilitate smooth onboarding of customers and business relationships as well as ensure availability of due diligence information plus mitigate perceived risk of trading with African counterparties,” said Mr. Kalisa.
While Nigeria guesses, Rwanda, others move to establish Africa’s first export development fund (BusinessAMlive)
Nigeria, still basking in the euphoria of a Q2 GDP growth of 5.01 percent year-on-year, is perhaps unaware that it can seize the opportunity of this positive to further notch up its economy, direly in need of growth, by boosting its export trade sector using the yet un-accessed Fund for Export
Osinbajo, Dangote to speak at MAN ‘high-level’ event on economic transformation in Africa (TheCable)
Vice-President Yemi Osinbajo and Aliko Dangote to speak at a “high-level” roundtable discussion on economic transformation in Africa and post-African Continental Free Trade Area (AfCFTA) hosted by the Manufacturers Association of Nigeria (MAN). With the theme, “Positioning African industries for economic transformation and continental free trade”, the event will hold in Lagos on Thursday sequel to MAN’s 50th anniversary.
Africa makes progress on Global Compact for Migration but more action is needed (UNECA)
Africa has made significant progress to implement the Global Compact for Migration but more action is needed to sustain the momentum amid the COVID-19 pandemic, according to the reports presented at a high-level meeting.
The statement builds on the findings of a Continental Migration Report produced by the United Nations Economic Commission for Africa (ECA), four sub-regional reports complied by the African Union Commission (AUC) and a summary from stakeholder consultations held since December 2020. These documents attempted to unpack migration patterns, progress, practices and pathways in Africa for the GCM’s implementation, involving all stakeholders. Speaking about the continental report, Ms. Thokozile Ruzvidzo, the ECA’s Director for the Gender, Poverty and Social Policy Division, said: “The report reveals that while Africa has made significant progress on GCM, the pandemic threatens to flatten the positive trajectory against several indicators, especially decent jobs and migrants’ safety. In parallel, we see a rise in xenophobia and restrictive policies that only increase irregular migration.”
She continued: “Such disruptive developments require concerted efforts to make migration work for all. Our report offers policymakers with good practices to build on and a timely evidence base for migration policy development and resource allocation to ensure we bring the GCM commitment to action.”
Across the African continent an increasing number of countries are introducing local content regulations that include requirements for investing extractive industry companies (EICs) to procure goods and services from local suppliers. These local content laws have typically also included requirements for local hiring and skills training for those directly employed by the EICs. For EIC procurement, the last decade has seen increasing regulations ranging from requirements for companies to submit local procurement plans, to percentage targets and lists of products that must be purchased from national suppliers. However, generally such demand-side measures have not been accompanied by an equally weighted level of supply-side interventions to support local businesses and build their capacity. This gap, as well as continued challenges across many host countries to meaningfully increase local procurement, has created a realisation that more proactive efforts are needed for enhanced supplier development programmes (SDPs).
It is time to reimagine and reawaken Africa’s Tourism Industry of the future (botswanaunplugged.com)
The last time there was a travel trade show on African soil – Meetings Africa 2020 – there was talk of the tourism sector being the economy’s last great hope as it boosted GDPs and created jobs with the trajectory of an Airbus A380. Fast-forward 19 months, and Africa’s tourism sector is reflecting, reimagining a different future and reigniting itself after it was upended by the world-engulfing Coronavirus. And there seems to be no better place to start than with a fresh event – Africa’s Travel and Tourism Summit (ATTS). The ATTS Media Launch, held on 31st August 2021 at the Maslow Hotel in Sandton, gave tourism and media stakeholders a chance to learn more about the Summit as a platform whereby travel trade across the continent would come together to share ideas on how to revive the industry.
Mahlalela also spoke of the Coronavirus’ impact on the Southern African Development Community’s member states, saying that it could cost the region up to 4.5-million jobs and up to US$40-billion in GDP.
“The Costed Action Plan for the SADC Tourism Programme has found that countries that significantly rely on tourism and services sectors will experience a downturn in their GDP due to Covid-19 and the resultant restrictions on travel. Micro, small and medium-sized enterprises will be most vulnerable to the impact,” he said.
‘Mauritius can be a bridge between countries and continents’ (African Business)
Mauritius indeed has built a solid reputation as a recognised international player in several sectors as the country continuously engaged in an economic diversification agenda to avoid the risks we faced as a mono-crop economy at the whims of climate changes and other shocks. The Mauritian economic landscape is a much more diversified one than we had in the late 1960s with tourism, financial services and export-oriented manufacturing, especially with regards to textile and apparels and the seafood industry having become major contributors to national output. The strategy today is two-fold. First, we are looking at consolidation and diversification within the established sectors of activity, and second, we aim at furthering the development of new economic pillars. Within the traditional sectors, building on the know-how we have developed over several decades, we aim at attracting investments in high-tech manufacturing, medical devices, pharmaceutical products and technical textiles among others. Several incentives have been put in place to this effect.
We have recently signed a series of trade agreements with India, China and Africa which will increase our market size. Moreover, we have developed an Africa Strategy that relies on three legs, which are to position Mauritius as a gateway for investments into the continent, attracting manufacturers to operate and export from Mauritius to Africa and finally, we are setting up Special Economic Zones in several African countries to allow operators to engage in larger scale production and be closer to both raw materials and markets.
Chinese firms play key role as Africa aims for economic rebooting (Chinadaily USA)
A new report by the China-Africa Business Council indicates that foreign direct investment in Africa by Chinese companies was valued at $56 billion at the end of 2020, with private enterprises accounting for 70 percent of that. Driven by market expansion, return on investments, industrial transfers and a search for resources, Chinese companies have made huge contributions to infrastructure modernization through the Belt and Road Initiative, jobs creation and industrialization.
The report builds on earlier surveys and studies that pointed to the role of Chinese companies in Africa’s socioeconomic transformation. According to the Brookings Institution, for example, between 2014 and 2018, China’s total FDI in Africa was $72.2 billion, compared with $30.9 billion from the US and $34.2 billion from France. During the same period, Beijing helped create 137,028 jobs in Africa, compared with Washington’s 62,004.
Acknowledging China’s strong role in Africa’s trade, investment, infrastructure financing and aid portfolios, a 2017 report by McKinsey, which surveyed more than 1,000 Chinese enterprises, said that China’s FDI in Africa increased by 25 percent between 2010 and 2014. The survey also found that 89 percent of employees in Chinese companies on the continent were African.
The China-Africa Business Council report comes amid unprecedented economic challenges for the continent as a result of the COVID-19 pandemic. Government revenues in Africa have dropped 25 percent, while more than 100 million jobs have been lost to the pandemic. There is therefore greater need for progressive economic partnerships with Africa’s development partners to recover from the global health crisis.
Biden eyes up Africa as new trade market, reboots Trump-era initiative (Global Trade Review)
The Joe Biden administration has announced plans to revamp the Trump-era Prosper Africa initiative, as it works to “substantially increase” two-way trade and investment between the US and Africa. With a focus on infrastructure, clean energy and healthcare, the White House said in recent weeks that it would kickstart a new Prosper Africa Build Together Campaign, having also requested US$80mn from Congress in additional funding resources. “Our goal is to substantially increase two-way trade and investment between the United States and Africa by connecting US and African businesses and investors with tangible deal opportunities,” Dana Banks, senior director for Africa at the White House National Security Council, said in a digital press briefing.
What’s going on between African nations and the EU? (Devex)
despite the commission’s release of a comprehensive strategy for Africa early last year, that partnership has yet to flourish. A high-level AU-EU summit scheduled for October 2020 has repeatedly been stalled, even as African leaders have strengthened ties with other global powers, particularly China. The COVID-19 pandemic contributed to derailing the European Commission’s efforts, but experts said there may also be a disconnect between the priorities of the two continents, with Europe focused on climate change and migration and Africa determined to end the COVID-19 pandemic and jump-start its economies.
EU commits to fund African vaccine hubs (EURACTIV)
The European Union will provide financial support for vaccine manufacture on the African continent with the specific aim of supplying Africa, as it seeks to fight back against accusations of ‘vaccine nationalism’. Following last Friday’s (27 August) ‘Compact with Africa’ summit, hosted by German Chancellor Angela Merkel as part of the G20 presidency, German pharmaceutical giant BioNTech SE has agreed in principle to manufacture vaccines at two sites proposed by the African Center for Disease Control: the Rwanda Biomedical Centre and the Institut Pasteur de Dakar.
The summit was attended by President Paul Kagame of Rwanda, Macky Sall of Senegal, European Commission President Ursula von der Leyen and Council chief Charles Michel, as well as a host of African leaders. It focused primarily on how best to use the $650 billion of Special Drawing Rights issued last week by the International Monetary Fund to help mitigate the economic damage caused by the COVID pandemic. “This initiative is a very good step toward self-reliance in vaccines, including in COVID vaccine launched with the MADIBA – Institut Pasteur de Dakar project,” said Senegal’s President Macky Sall. “Supporting such initiatives to materialize quickly in Africa, would contribute to boosting COVID vaccine access and to building a sustainable health security for a stronger and more equitable economic recovery globally,” he added. The European Commission has said it will provide financial support as part of its ‘Team Europe’ plans to fund three vaccine hubs in Africa.
Global
Exports of intermediate goods sustain gains in Q1 of 2021 after rebound from pandemic (WTO)
Asia recorded the highest growth in exports of intermediate goods in the first quarter (28 per cent) due to a 41 per cent increase in Chinese exports of industrial intermediate goods, mainly parts for information communication technology equipment and photovoltaic cells. The most resilient supply chains in the first quarter were for ores, precious stones and rare earths, with exports increasing by 43 per cent in the first quarter, and for food and beverages (up 22 per cent). In contrast, exports of transport parts and accessories posted the weakest recovery at 6 per cent following steep declines in 2020 as the pandemic affected both demand for and production of automotives.
DDG Paugam highlights role of trade in global action on plastic at UN ministerial meeting (WTO)
“There is a growing recognition that the way we produce, consume, and dispose of plastics causes significant damage to our environment and to our health,” DDG Paugam said. “Back in November last year a group of WTO members launched an Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP). Since this launch, discussions on the topic have more than quadrupled at the WTO, seeking to identify key opportunities for enhanced trade cooperation to support domestic, regional, and global efforts against plastic pollution,” he said.
“The role that trade policy may have in fighting plastic pollution is becoming better understood. There are specific tools that trade policymakers may want to leverage to contribute to achieving global goals on plastics,” DDG Paugam said, noting for instance lowering trade barriers to environmental goods and services for plastics circularity, establishing standards and regulations needed to ensure recyclability and compostability of plastics, facilitating and building capacity for environmentally sustainable reverse supply chains, as well as exploring economic drivers of environmentally sustainable plastics and alternatives.
Building a trade and investment partnership with Rising Africa (EU Reporter)
Many Caribbean countries mark Emancipation in the month of August. Indeed, the CARICOM Community celebrates this historical milestone on 1st August annually. During this time, we reflect on the end of slavery which will forever remain a stain etched on the collective conscience of humanity. We use the remembrance of Emancipation to celebrate the deep and inextricable bonds we as Caribbean people have with Africa
Thus far, these connections have largely remained in the historical, cultural and people spheres. This must change to also include translating our excellent ties into trade and investment relationships that will redound to the benefit of people here in our Region and in Africa.
Africa’s rise is also eloquently illustrated by the data. Whilst the entire world is reeling from the coronavirus pandemic and most countries and Regions like ours showing negative growth, the African Economic Outlook done by the African Development Bank noted that real GDP is expected to grow by 3.4 percent despite the COVID-19 pandemic. Countries such as Mozambique have been receiving record levels of foreign direct investment. Yet, whilst Asian countries led by China have been rushing to Africa, we have largely lagged behind in terms of pursuing an aggressive trade and investment relationship with Africa. The opportunities to partner with Africa and a market of an estimated 1.4 billion people are immense. As we seek to advance an agenda for a resilient Caribbean, it is not only important to shore up existing trade partnerships but to also look to new relationships on the trade and investment front.
Africa countries, UN, IOM review migration aims (Africanews)
The exploitation of migrants in Africa and the protection of their human rights were among the topics discussed by officials on Wednesday at a conference looking at the impact of migration across the African continent.
COVID-19: Rich countries should donate at least 1 billion vaccine doses, says WHO panel (UN News)
Ellen Johnson Sirleaf, former President of Liberia, and Helen Clark, former Prime Minister of New Zealand, expressed deep concern over the slow pace of vaccine redistribution from high-income to low-income countries. The two former leaders served as co-chairs of the Independent Panel on Pandemic Preparedness and Response (IPPPR), launched by WHO in July 2020. Its final report was published in May.
“The Independent Panel report recommended that high-income countries ensure that at least one billion doses of vaccines available to them were redistributed to 92 low and middle-income countries by 1 September, and a further one billion doses by mid-2022”, they declared. “Ensuring that all those around the world most vulnerable to the impact of the virus, including healthcare workers, older people and those with significant comorbidities, can be vaccinated quickly is a critical step towards curbing the pandemic.”
ICAO Africa and Middle East Air Transport Symposium renews key multilateral commitments on path to recovery (Mirage News)
ICAO’s Africa-Middle East Air Transport Symposium concluded yesterday with renewed regional commitments on addressing pandemic recovery efforts, the harmonization of regional air transport regulatory frameworks, cross-border investments in airlines, the impact of levies and charges on air transport sustainability, and financing approaches for the modernization of aviation infrastructure. Focused around the theme of Promoting and harnessing the benefits of liberalization, the virtual event brought together high-level policy makers, air transport regulators, industry representatives, aviation professionals, and other stakeholders to drive important progress on regional air transport coordination and recovery.
After appreciating how aviation pre-pandemic had generated over ten million jobs in the AFI and MID Regions, and close to $700 billion in combined GDP, Mr. Salazar recalled that full air transport recovery for the respective regions would help to assure the successful implementation of the African Continental Free trade area, Single African Air Transport Market, the freedom of mobility goals of the African Union’s Agenda 2063, and to reopening economically critical tourism markets for affected oceanic and landlocked countries.
UN Report Sets Out Stakes for Energy Summit (IISD)
A report from the UN Secretary-General sets the stage for an upcoming high-level event on sustainable energy. It notes the need for more momentum towards universal energy access and a decarbonized, climate-resilient energy system in order to deliver on SDG 7 and many other aspects of the 2030 Agenda. The report titled, ‘Ensuring access to affordable, reliable, sustainable and modern energy for all’ (A/76/206), is issued annually to review progress towards SDG 7 and efforts to accelerate progress. The 2021 report explains what is needed in five areas: access to electricity, access to clean cooking solutions, renewable energy, energy efficiency, and means of implementation. It also reviews the state of SDG 7 progress in each region of the world and in the least developed countries (LDCs), landlocked developing countries (LLDCs) and small island developing States (SIDS).
According to the Secretary-General’s report, a global stocktaking should be convened by the end of 2023 to review the global plan of action for the UN Decade of Sustainable Energy for All (2014-2024), in light of the outcomes of the September 2021 energy summit.
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National
Trade balance remains in surplus while exports take a knock after July unrest (Daily Maverick)
South Africa recorded a trade surplus in July of R36.9bn, down from a revised R54.5bn in June. Exports fell 11% month-on-month on the back of the disruptions caused to transport links by the riots in KwaZulu-Natal and the cyberattack on Transnet that stalled movement at the country’s busiest port for nearly a week. The R18-billion slide in monthly exports only dims some of the shine. Between January and July, exports increased by 45% to more than a trillion rand, compared with R716-billion over the same period during 2020. It could have been even better were it not for July’s looting, but analysts believe commodities still have legs and that South Africa’s current account will remain healthy for the rest of 2021. “The substantial drop in July’s export figure can largely be attributed to the unrest in KwaZulu-Natal that caused disruptions at the Durban port, while the cyberattack that crippled Transnet operations at ports also had a severe impact,” said Pieter du Preez of NKC African Economics.
South Africa has enjoyed its fattest trade surplus on record, now up to a cumulative R290-billion, buoyed by booming global commodity prices as major economies such as China and the United States, as well as European economies, ramp up activity and invest heavily in infrastructure building in a bid to shake off the downturn induced by Covid-19.
Trade, Industry and Competition on women empowerment | South African Government (South African Government)
Women must challenge the status quo and fight against inequality and poverty. They must never accept the status quo and the stereotypes. This was said by the Acting Deputy Director-General of Industrial Financing at the Department of Trade, Industry and Competition (the dtic), Ms Susan Mangole. Mangole made the call during a panel discussion of the Women in Public Sector Webinar held under the theme: Tackling gender boundaries and changing the narrative on women in leadership.
According to Mangole, women must take the lead in building the economy and each other. She said the recent unrests left many with destroyed companies, jobless and confused, and these unrests called for collaborations. She further urged women entrepreneurs to take up assistance offered through the recently announced economic recovery interventions administered by the Industrial Development Corporation that offers interest-free loans and grants.
South Africa retail store Game to exit East African market (The East African)
South African retail giant Massmart that operates the Game Stores has revealed its plan to sell its stores in Kenya, Uganda and Tanzania, marking the latest of a string of retreats from East Africa by a southern African firm.
Massmart chief executive Mitchell Slape said the chain had begun a formal sales process to divest in five Game stores in Nigeria, four in Ghana, three in Kenya, one in Uganda, and one in Tanzania. “We have reached the conclusion that the performance and complexity in running the 14 stores in five markets in the East and West Africa is something frankly that we needed to address,” said Mr Slape during the group’s virtual financial results presentation on Friday. The exit plan ends a five-year stint for the Sandton-headquartered retailer in Kenya and further extends the poor run by South African retailers and companies who have faced headwinds trying to crack the local market.
Kenya Has Not Cut Uganda's Sugar Export Quota – Trade Ministry (Chimp Reports)
The Ministry of Trade, Industry and Cooperatives has dismissed media reports that Kenya has cut Uganda’s sugar export quota by 79% from 90,000 metric tons to 18,923 metric tons. The Trade Ministry Permanent Secretary, Geraldine Ssali described the reports as “misrepresentation of facts”. Mrs Ssali clarified that following the April 2021 Uganda’s Kenya bilateral Ministerial meeting, Uganda’s annual sugar export quota to Kenya has increased from 55,000 metric tons to 90,0000 metric tons, consisting of both the Common Market for Eastern and Southern Africa (COMESA) Kenya sugar safeguard and the bilateral quotas.
Kenya-Pakistan end tariff wars, draft MoUs for more trade (The Star, Kenya)
Kenya and Pakistan have ended a long-standing tariff war that hurt trade between the two countries, mainly Kenyan tea exports. Yesterday, the two countries announced the removal of the 'Attestation Fee' that was charged by the Pakistan High Commission in Nairobi. Calculated at 0.5 per cent of the entire export volume for the tea exporters from Kenya, it made Kenyan tea costlier when it landed in Pakistan compared to other teas. Pakistan slapped the fee on Kenya tea when it initiated taxation of Pakistan rice at 75 per cent under the East African Community (EAC) protocol in 2007.
Tea exporters from Kenya were required to get their export documents confirmed and approved by the Pakistan High Commission, before shipping out consignments. Pakistan absorbs about 40 per cent of all tea exports from Kenya. In 2020, Kenya earned about Sh25.9 billion of the total $589.8 million (Sh64.7billion) worth of teas Pakistan imported from across the world. The two countries initiated talks on April 7 this year, which also included development of MoUs that will help increase and diversify bilateral trade.
IDB, others earmark $520m for Nigeria’s agro-industrial zones (Punch Newspapers)
The Senior Special Adviser to the President of the Africa Development Bank on Industrialisation, Prof Banji Oyeyinka, has disclosed that $520m has been earmarked for the development of the first phase of Special Agro-industrial Processing Zones in some selected states across Nigeria. According to him, the AfDB committed $160m; the Africa Growing Together Fund $50m; the Islamic Development Bank, $150m, while the International Fund for Agricultural Development committed $160m for the development of the project in Nigeria. He added that the project would be inaugurated in the selected states before the end of the year.
She said this was based on an assessment of their state of readiness, adding that other states were to be selected to participate in subsequent phases. This was contained in a statement on Tuesday by the Special Adviser on Media to FCT Minister of State, Austine Elemue.
The statement was titled ‘Partners commit $520m to develop SAPZ in Nigeria’. It read, “The Senior Special Advisor to the President of the Africa Development Bank on Industrialization, Prof. Banji Oyeyinka, revealed that the AfDB has committed the sum of $160m, the Africa Growing Together Fund has committed $50m, the Islamic Development Bank has committed $150m, while the International Fund for Agricultural Development committed $160m, bringing the total to $520m for the development of the project in Nigeria.
Nigerian economy getting stronger –Minister (Daily Sun)
Minister of Industry, Trade and Investment, Adeniyi Adebayo, Tuesday declared that Nigeria’s economy was coming back strongly with foreign investors making a commitment to invest in the country. Adebayo who spoke at the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) Diplomatic Luncheon in Abuja, said in a statement by his media aide, Ifedayo Sayo, said Nigeria was open for business and that the country’s investment climate was continually improving. The minister said although 2020 was challenging for all economies, Nigeria was coming back strong. He noted that in the first half of the year investment announcements were at $10.1 billion, an increase of 100 per cent from 2020.
He said the Federal Government recognised the importance of attracting and retaining patient investment into the economy, adding that this accounted for the ministry’s commitment to the strategic relationship that existed with the chamber.
FDI Report 2021: Ghana records $874m of inbound Investments in first half of the year (3news)
Ghana records 874 million dollars of inbound Investments in first half of the year Ghana’s attractiveness as an investment destination has proved resilient amid the COVID-19 pandemic, with the country raking in 874.01 million dollars’ worth of investments from 122 projects in the first half of 2021. Of the total investment of US$874.01 million, The Foreign Direct Investment (FDI) component amounted to US$829.29 million while the local component accounted for US$44.72 million. The FDI amount of US$ 829.29 million was a remarkable increase of 32.15 percent in inbound FDI compared to the FDI value of US$ 627.52 million recorded in the same period last year.
EABC applauds the Government of the Republic of Burundi for facilitating trade (East Africa Business Council)
EABC CEO Mr. John Bosco Kalisa joined Chairman Muzaneza Antoine of the Association of Burundi Traders (ACOBU) to the Burundi -Democratic Republic of Congo (DRC) Katumba- Kavivira border to assess the free movement of goods, services and people. In his remarks, EABC CEO commended the Government of Burundi for facilitating trade to unlock the great economic potential of Burundi.
Katumba-Kavivira border is a vibrant trade route for small cross-border traders but has been highly impacted by COVID-19 and the floods of River Rusizi and Lake Tanganyika. Mr Kalisa commended the Government of the Republic of Burundi for kick starting the industrial park set to attract more investors into Burundi.
He noted that the COVID-19 has disrupted global and regional value chains impacting international trade and reducing warehouse receipts. The East African Business Council in partnership with the Association of Burundi Traders (ACOBU) urges the Government of the Republic of Burundi to champion:
Africa
Women traders in AfCFTA event – Expo 2020 Dubai (etrade hubs)
Are you a business leader or a woman doing business in Africa? Then be part of the "Women Traders in AfCFTA" event at EXPO 2020 Dubai, in person or virtual on 16th October 2021, at the Women's Pavilion. The event is a unique opportunity to bring together AfCFTA entrepreneurs, innovators and business leaders, highlighting outstanding contributions, successes and challenges and showcasing creativity. To Register, visit: https://lnkd.in/eVAaeUwR
Expected benefits for women under AfCFTA should be real (BusinessGhana)
The implementation of the African Continental Free Trade Area (AfCFTA) must be accompanied by policies supported by Regional Economies to ensure the inclusion of women and youth. AfCFTA in the Futures Report, “Making the AfCFTA Work for Women and Youth,” said the implementation should also improve the cooperation of Customs to reduce trade costs. The Report is a narrative about the promise of AfCFTA as told through the voices of Africa’s producers, traders, policy officials and regulators. Under the Agreement, African Union Member States, now also AfCFTA State parties, explicitly seek to achieve gender equality and enhance the export capacity of women and youth. The Report said limited property rights for women farmers led to low levels of investment, which limited the full potential of export-led growth. Similarly, women and youth may be limited from gains in agriculture due to barriers in accessing finance, productive resources and other assets. That, in addition to foreign direct investment, flows towards high productivity and better-established exporting operations to capture scale economies, may increase the gap.
Africa World Trade Network, AfCFTA Secretariat sign partnership to boost intra-regional trade and investment - MyJoyOnline.com (MyJoyOnline)
The Africa World Trade Network (AWTN) has partnered with the Africa Continental Free Trade Area (AfCFTA) Secretariat to accelerate intra-regional trade and investment through exhibitions, meetings and events. The partnership seeks to mobilise private sector actors across Africa to drive the attainment of strategic objectives that underpin the Africa Continental Free Trade Area Agreement. The partnership between AWTN and the AfCFTA Secretariat is meant to work towards three common objectives that support continental trade and investment promotions across Africa and promote the overall objectives of the Africa Continental Free Trade Area Agreement:
Speaking at the signing ceremony, Board Chair of AWTN, Otwasuom Osae Nyampong VI, said: “Intra-regional trade promises a real win for Africa, and the AfCFTA Secretariat is at the forefront of this significant progress in the continent’s history; it is a second Pan-African victory after Independence.
Opening of COMESA trade office gives Seychellois women a business boost (Seychelles News Agency)
(Seychelles News Agency) - Seychellois women entrepreneurs gained additional support for trade activity in the African region with the opening of an office of the COMESA Federation of Women in Business. The Seychelles' chapter of the Common Market for Eastern and Southern Africa (COMESA) Federation of Women in Business was officially launched in a ceremony on Tuesday at Eden Bleu by President Wavel Ramkalawan.
"SIB opens the door to many investments. It is only the beginning in our step to improving facilitation services in the country as we are working very hard to ease the procedures of doing business in Seychelles. COMFWB and SIB is a very good opportunity to marry the public and private partnership and it will be good support for our entrepreneurs," she said. Minister Vidot hopes that the new desk will help in supporting and empowering women throughout the country and make the visions of women a reality. Claudette Albert, the chairperson of the Seychelles Chapter of COMESA Federation of Women in Business, said this "represents the support the government is offering to us by giving us an office so that we can give business advisory, support and training for the women. If women need any help in finding business partners or markets in the African region, our office will act as the liaison for them. Now we are going to organise ourselves so that we can provide training to the women."
SADC has promoted women empowerment and gender equality across all sectors
The Southern African Development Community (SADC) has engendered women empowerment and gender equality across sectors at regional and national levels, and in 2019 adopted a Regional Multi-Dimensional Women’s Economic Empowerment Programme aimed promoting women’s economic empowerment and gender-responsive development. This was said by outgoing SADC Executive Secretary, Dr Stergomena Lawrence Tax, in a keynote address at a webinar on Empowering Women and Achieving Gender Equality to Date organised by the Department of Government Communications and Information Systems of the Republic of South Africa on 30 August 2021.
Dr Tax said economic empowerment of women is central to sustainable development and poverty alleviation and that poverty eradication can be addressed meaningfully through programmes that target women, and facilitate women economic independence and reduction of exploitation, feminisation of poverty, discrimination, and disregard of women’s fundamental human rights.
Dr Tax called upon SADC Member States to include women in the ongoing digitisation initiatives at the regional and national levels and improve the plight of women and gender equality.
Information, communication and technology (ICT), she said, is among sectors where women are under-represented, and such a gender gap also exists in the digital economy that is growing very fast globally. It was therefore important to strengthen women empowerment in the ICT sector by developing national and regional initiatives that foster participation of women and girls in the ICT sector.
The United Nations Economic Commission for Africa (ECA) has announced her invitation to sector champions in various industries to be a part of Regional Business Forum structured around high-level meetings, consultations with Business Champions, the youth and women in the West African business ecosystems . The 3-day Forum will be held in Lagos, Nigeria from September 21st – 23rd, 2021, at The Intercontinental Hotel, Victoria Island, Lagos, using a hybrid format i.e. physical and virtual, due to COVID-19 The Regional Business Forum will be held in collaboration with strategic partners from across the region/Continent at, bringing together women and youth from across the 15 West African countries, business leaders, the private sector, and SMEs. The forum is set to encompass various activities such as panel discussions, exhibitions, mentoring sessions, presentations and many more.
The West Africa Business Forum is the first edition in a series of stakeholders’ engagements by the Economic Commission for Africa with top business leaders, and sector champions in Africa. The theme of the first ever forum is “Empowering Women and Youths to Spur Africa’s Transformation Agenda”. With Africa being the youngest continent and a projection of Africans constituting a whooping quarter of the world’s labor force by 2050 due to high fertility and declining child mortality rates, it has become imperative to pivot the continent’s demographic dynamics for sustainable development.
SheTrades Hub in Rwanda to bring new trade opportunities for women-led businesses (ITC)
On September 2, 2021, the International Trade Centre (ITC) and the PSF Chamber of Women Entrepreneurs, in collaboration with the Rwandan Ministry of Trade and Industry (MINICOM), will launch a SheTrades Hub in Rwanda to bolster the competitiveness and market access of Rwandan women-led businesses. Speaking about the importance of the upcoming SheTrades Hub, Jeanne Françoise Mubiligi, the Chairperson of Rwanda Chamber of Women Entrepreneurs hailed ITC for bringing this Hub to Rwanda noting that it will go a long way in facilitating women in business to realize their dream of exporting their goods to international market and maximizing profitability.
“This SheTrades Hub will support Rwandan women entrepreneurs to improve their competitiveness, connect them to new markets and internationalize their businesses. The Hub will also serve as a resource centre for women-owned businesses giving them access to more than 100 relevant trade-related modules, webinars, and trainings in addition to market access and investment opportunities. Mubiligi said.
Critical financial industry reforms are needed to accelerate African integration and make AfCFTA work (CNBC Africa)
The recently concluded Annual Meetings of the African Development Bank remind us that the consequences of Covid-19 will weigh on the continent’s economic prospects for the foreseeable future, with between $145-$190 billion lost in terms of GDP, 30 million people falling into extreme poverty, and economic growth in 2021 less than half the world average. In a world faced with a crisis of such magnitude, the temptation to protectionism is gaining ground. Africa must avoid this trap at all costs. Even more so as the African integration was given a huge boost just before the crisis, thanks to the adoption of the AfCFTA. This ambitious project must not be allowed to suffer. To the contrary, it should be used as the powerful tool it is, both to mitigate the consequences of the pandemic and to transition to a more unified Africa. AFIS – the leading pan-African financial industry platform that brings together private operators and public institutions – calls for a critical acceleration of financial reforms as a priority step to achieve the overarching goals of the AfCFTA. We think that the African financial industry has a decisive part to play in supporting companies and individuals to trade and invest across the continent and ease cross-country payments and capital flows.
AfCFTA: Movement of people vital to African free trade – UNECA (Nairametrics)
The United Nations Economic Commission for Africa (UNECA) has stated that the African Continental Free Trade Area Agreement (AfCFTA) will not fully succeed unless there are policies for the free movement of people in the area. This was disclosed by Ms Thokozile Ruzvidzo, Director, Gender, Poverty and Social Policy Division, UNECA on Tuesday during the Africa Regional Review of the Implementation of the Global Compact For Migration conference in Rabat, Morocco. She added that the leading role of the Global Compact For Migration review and its other related initiatives all aimed to help Africa retain skills, improve migration data collection and assist in the implementation of the continent’s integration through facilitating portability of skills and qualifications as well as trade through the African Continental Free Trade Area Agreement (AfCFTA).
East Africa Trade and Industrialization Week: AfCFTA crucial stage in achieving integration | Business (Devdiscourse)
The 2021 East Africa Trade and Industrialization Week, which opened today in Dar es Salaam, Tanzania, centred the African Continental Free Trade Area (AfCFTA) as an impetus to the region's integration process. "The African Continental Free Trade Area is a crucial stage in achieving regional integration, which has remained a key objective of the East African Community as a means to sustainably develop economies," Secretary-General of the East Africa Community, Hon. Dr Peter Mathuki said at the opening of the East Africa Trade and Industrialization Week (EATIW).
On his part, Hon. Prof Kitila Mkumbo, Minister for Industry and Trade of the United Republic of Tanzania stated that the theme resonated well with the East African Community's vision and mission as it is consolidating its external trade policy by undertaking trade negotiations as a bloc with partners, a key feature of the implementation of AfCFTA. Therefore, he challenged the private sector to get involved in the integration process.
How regional 'roadblocks' are derailing EAC trade (Daily Monitor)
The unending conflict in South Sudan is slowly taking a toll on Uganda’s economy and becoming a threat to regional trade. The power struggle in South Sudan has been brewing for a while despite the formation of the national unity government following the signing of a peace agreement in 2018 under the watchful eyes and facilitation of regional blocs, including the Intergovernmental Authority on Development (IGAD).
South Sudan, a member of the East African Community (EAC), continues to be a fragile economy despite its enormous untapped economic potential, largely being derailed on the power struggle between President Silva Kiir and first Vice President, Dr Riek Machar. According to regional business experts, integration analysts, and Afro-centric researchers, the reputation of the EAC region as a trade and investment hub, will remain blemished until total stability in the region is restored. If nothing is done to prevail over the cause of the uncertainty, in this case bringing an end to the political stability in South Sudan, the biggest losers apart from lives and properties, will be trade and investment, with Uganda particularly bearing the biggest brunt.
Freight costs go up as container shortage persists (The East African)
Sea freight charges have doubled in the past one month due to a global shortage of containers as players in the logistic sector urge ports management in East Africa to increase empty container limitations at their facilities to allow more containers to be shipped back. Shipping agents and Container Freight Stations (CFSs) officials said the cost of importing a 20ft container from China to East African ports has risen from $1,500 to $2,500 while that of 40ft container doubled from $2,000 to $4,000. Kenya Ships Agents Association chief executive Juma Tellah accused Kenya Ports Authority and Tanzania Ports Authority of allocating limited space for empty containers at the ports meaning very few empties were being shipped back. Tellah said most ports prioritise exports leaving empties piled up at different container depots. “We are having empties piled up in our CFSs since very few containers are being returned as a result of imbalance of trade and limited space allocated for empties at the ports. There is a limited space at Mombasa and Dar es Salaam ports, which has hampered return of empties,” said Tellah.
East African states work to reduce regional air travel costs (The East African)
Plans are underway to reduce air travel charges in East Africa to ease the free movement of people, goods and services. The process includes the harmonisation of air travel policies of each partner state, examination of the factors that determine air ticket costs and development of uniform air travel regulations. A meeting of Transport and Communication ministers from the EAC partner states chaired by Kenya has since issued a directive to the East African Community secretariat to initiate the process. “It was proposed that the EAC Secretariat convenes the meeting in consultation with the hosting Partner States and the outcomes of the Forum be channelled to EAC policy organs through the Sub-committee on Air Transport,” said Wavinya Ndeti, Kenya’s chief administrative secretary in the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works, adding, “On Liberalisation of Air Transport in the EAC, the regulations have been developed and the process of finalising these regulations is ongoing.”
Report encourages fit-for-purpose cross-border road transport interventions (Engineering News)
South Africa has seen a 6% fall in exports, from R253-billion in 2019 to R238-billion in 2020, which the Cross-Border Road Transport Agency (C-BRTA) largely attributed to the widespread impact of the Covid-19 pandemic. The pandemic, it said, severely affected South Africa’s exports owing to the shutdown of economies implemented to contain the risk of spreading the Covid-19 virus. The report, titled ‘Statistics on Trade Volumes and Values Moved by Road Through South African Commercial Border Posts and Destination Countries’, was commissioned by C-BRTA, and found that, in 2020, South Africa exported 27.2-billion units of goods, valued at about R238-billion, to neighbouring countries by road.
As per the report, South Africa exported the highest trade volumes to Mozambique through the Lebombo border post. The Lebombo border post handled the highest trade volumes (46%) of all border posts in South Africa. Mineral ores accounted for the highest volume of South Africa’s exports to Mozambique, at about 9.8-billion kilograms. Minerals ores accounted for 72% of Mozambique’s total imports from South Africa. Meanwhile, in 2020, Botswana was the major importing trading partner for South Africa, with goods valued at about R74-billion imported from South Africa.
Awareness on EAC customs union hampers trade – Kenya News Agency
The EA Customs Union operations have remained opaque to traders since its launch in 2005, claims the business community at Isebania border town. The traders in Migori County say that the ineffectiveness results from poor understanding of its concept by the business people in the region. Although there had been an improvement in the amount of goods traded between Kenya and Tanzania, the group points out that more efforts are still needed to make the union a
Africa has all the ingredients to be a globally competitive energy and industry leader, and with policies such as the African Continental Free Trade Agreement (AfCFTA) serving as a key driver of intra-African trade, the continent is well-equipped to accelerate economic development and enhance industrialization. However, even with the right policies and available resources, the continent has been slow to take advantage of these new and improved trade opportunities. Therefore, African Energy Week (AEW) 2021 in Cape Town has placed a focus on driving regional trade deals, urging countries to leverage the AfCFTA as a catalyst for enhanced cross-border cooperation, driving continent wide poverty alleviation and industrialization.
With regards to Africa’s energy sector, the agreement offers valuable opportunities to expand regional trade and enhance intra-African collaboration. Notably, in addition to international exports, emerging natural gas economies across Africa can redirect their attention to regional exports, boosting industrialization through the consistent supply of petrochemicals and Liquified Natural Gas (LNG). By establishing regional supply networks, Africa can construct and position fertilizer plants, manufacturing facilities, and gas-to-power projects in key locations, boosting economic development, job creation and energy access continent wide.
With regards to regional trade, one of the most notable challenges has been foreign exchange (forex) barriers. Uncertain and unproductive forex policies have not only restricted regional trade, but have essentially limited both national and international oil company activities. In order for countries to fully exploit the benefits of the AfCFTA, there is a need for central banks to create an enabling financial climate for business, stimulating economic activities by independent companies – such as Springfield and Afentra -, international investors, and regional stakeholders. The AfCFTA has presented the opportunity for regional governments to create an enabling environment for foreign investors, and by removing forex challenges that plagued regional trade before its implementation, the agreement will drive investment and development across a regional base.
Industrial agriculture is no solution for Africa (Capital Business)
Around the globe, agribusinesses, driven by initiatives like AGRA, have been trying to convince governments and financial institutions that they hold the answer to solve the world’s hunger problems through improved production. However, this concept has been debunked by food system research and a complete lack of success. The world does not have a food production problem, rather hunger is a result of lack of access and inequality.
The “Green Revolution” has already failed in India where recent widespread farmer protests made it crystal clear that this approach does not work out fairly for small farmers. In Africa, small holder farmers, oftentimes women, are indispensable to its nutritional and climate resilient future. Those funding AGRA need to take stock of its failures to date and realise that farmers already know what they need to tackle climate change and need support to do so.
The theme for this year’s African Green Revolution Forum (AGRF) to be held in Nairobi from September 6-10 is ‘Pathways to Recovery and Resilient Food Systems’.
The Impact of Telematics in Africa's E-Commerce Market - BORGEN (Borgen Project)
Telematics is a technology used in companies’ transportation cars that gathers information on the car’s whereabouts and utilization. For instance, when the vehicle stops, gas levels, required servicing and repairs are reported via a tracker placed inside the car. This tracker is connected through the car’s “onboard diagnostics (ODBII) or CAN-BUS port with a SIM card, and an onboard modem enables communication through a wireless network.” Through these reported data, telematics enhances E-commerce in Africa and improves the continent’s economy as a whole.
According to IT News Africa, telematics can tremendously improve the online business sector in Africa. This is especially true during the pandemic. Based on Mastercard’s research, 68% of South Africans have increased their e-commerce purchasing due to COVID-19. As a result, product deliveries rose to satisfy customers. In addition, lockdowns and pandemic policies have caused many people to rely more on goods being delivered to their doorsteps. Telematics tremendously enhanced how vehicles operate and enable a safer ride for employees and packaged goods. Telematics became necessary for carrier organizations because it allows employees to satisfy customers by providing them with faster deliveries. As a result, telematics enhances e-commerce in Africa by minimizing package mix-ups and delivery failures. In addition, telematics makes consumers trust the business more by ensuring that they will receive their products. As a result, customers are more willing to make online purchases.
Jumia is an example of a successful digital organization in Africa. It experienced a 50% increase in online shopping within the first half of 2020. Jumia started in 2012 in Lagos, Nigeria, and is now the region’s most prominent digital organization. In addition, GetBoda, an online shopping carrier firm in Kenya, experienced an increase of 150% in purchases at the beginning of the COVID-19 pandemic.
Are African countries doing enough to ensure cybersecurity and Internet safety? (Mirage News)
As the world continues to recover from the disruptions of the COVID-19 pandemic, coping mechanisms such as increased use of virtual workspaces, online marketplaces and e-governance have become the norm. While this presents opportunities to revamp economies and streamline public service delivery, it may also heighten exposure to cybercrime. In Africa, many countries have seen a rise in reports of digital threats and malicious cyber activities. The results include sabotaged public infrastructure, losses from digital fraud and illicit financial flows, and national security breaches involving espionage and intelligence theft by militant groups. Addressing these vulnerabilities requires a greater commitment to cybersecurity. This requires enforceable policy safeguards, risk prevention and management approaches, along with technologies and infrastructure that can protect each country’s cyber environment, as well as individual and corporate end-user assets. However, the latest Global Cybersecurity Index (GCI), released this June by the International Telecommunication Union (ITU), suggests Africa’s levels of commitment to cybersecurity – as well as capacity for response to threats – remain low compared to other continents.
Africa Must Produce Its Own Vaccines by Landry Signé (Project Sybndicate)
During the pandemic, wealthy countries led the way in rapidly developing and producing COVID-19 vaccines. The same countries then bought up and administered those vaccines to their own populations, and have even ordered boosters for already-vaccinated people. Meanwhile, many developing countries have not been able to deliver even one dose to most of their populations. Africa, in particular, is struggling with limited access to COVID-19 vaccines. As of August 31, African countries had administered 94 million doses to the continent’s population of nearly 1.4 billion, with a total supply of 134.5 million. By contrast, the United States – with a total population of 332 million – has administered over 375 million vaccine doses. This disparity partly reflects the fact that most African countries are not able to produce the vaccines needed to protect their populations against not only COVID-19, but also the myriad other diseases that plague the continent. Africa is home to only four local drug substance vaccine manufacturers – two more are in development – and two “fill-and-finish” facilities that rely on imported vaccine substances to produce distributable doses. Supply-chain disruptions during the COVID-19 pandemic showed just how risky this dependence on imports of critical medical supplies can be.
Africa is almost totally dependent on vaccine imports, producing just 1% of the vaccines it administers. So far during the pandemic, African countries have received most of their COVID-19 vaccine doses through either bilateral agreements or the COVID-19 Vaccine Global Access (COVAX) facility, an initiative launched last year by the World Health Organization and Gavi, the Vaccine Alliance. COVAX aims to provide vaccines for 20% of people in low- and middle-income countries. But while initiatives like COVAX are clearly needed to fulfill Africa’s short-term needs, they will do little to improve the continent’s capacity to provide crucial vaccines for itself in the future.
Global
It's time to build BRICS better (The Hindu)
The 13th BRICS summit is set to be held on September 9 in digital format under India’s chairmanship. This plurilateral grouping comprising Brazil, Russia, India, China and South Africa is chaired by turn. India held the chair in 2012 and 2016 too. The preparatory meeting of Foreign Ministers in June and dialogue at the BRICS Academic Forum in early August offered an important opportunity to present an objective assessment of the grouping’s record amid differing views of believers and sceptics. The importance of BRICS is self-evident: it represents 42% of the world’s population, 30% of the land area, 24% of global GDP and 16% of international trade.External Affairs Minister S. Jaishankar, noting that BRICS was 15 years old, recently portrayed it as a young adult, equipped with “thoughts shaped and a worldview concretised, and with a growing sense of responsibilities.” Others tend to view it as caught up in angst and confusion typical of a teenager.
Launched by a meeting of the Foreign Ministers of Brazil, Russia, India and China in 2006 and riding on the political synergy created by regular summits since 2009, BRIC turned itself into BRICS in 2010, with the entry of South Africa. The grouping has gone through a reasonably productive journey. It strove to serve as a bridge between the Global North and Global South. It developed a common perspective on a wide range of global and regional issues; established the New Development Bank; created a financial stability net in the form of Contingency Reserve Arrangement; and is on the verge of setting up a Vaccine Research and Development Virtual Center.
What are its immediate goals now? As the current chair, India has outlined four priorities. The first is to pursue reform of multilateral institutions ranging from the United Nations, World Bank and the International Monetary Fund to the World Trade Organization and now even the World Health Organization. The second is the resolve to combat terrorism. Promoting technological and digital solutions for the Sustainable Development Goals and expanding people-to-people cooperation are the other two BRICS priorities.
Europe’s glory days of trade deals are over (POLITICO)
Striking trade deals is only getting tougher for the EU. Under previous European Commission President Jean-Claude Juncker, Brussels' trade negotiators were on a deal-making roll, concluding or signing landmark pacts with Canada, Japan, Vietnam, Singapore and Mexico. That seems a distant memory now for the world's biggest trade bloc.
Panel established to review China’s compliance with ruling on certain farm product imports (WTO)
At the meeting of the Dispute Settlement Body (DSB) on 30 August, WTO members agreed to the establishment of a dispute panel at the request of China to determine whether China complied with an earlier WTO ruling regarding the administration of its tariff rate quotas (TRQs), including those for wheat, rice, and corn.
Strong Cargo Demand Continues in July (IATA)
Geneva - The International Air Transport Association (IATA) released July 2021 data for global air cargo markets showing that demand continued its strong growth trend. “July was another solid month for global air cargo demand. Economic conditions indicate that the strong growth trend will continue into the peak year-end demand period. The Delta variant of COVID-19 could bring some risks. If supply chains and production lines are disrupted, there is potential for a knock-on effect for air cargo shipments,” said Wille Walsh, IATA’s Director General.
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UCD opens new depot in Cape Town (Engineering News)
United Container Depots (UCD) has moved from its location in Paarden Eiland to larger premises in Beaconvale, Parow, also in Cape Town. The new depot has a container stacking area of more than 20 000 m²; warehouse space of 4 000 m²; a dedicated controlled atmosphere (CA) gassing area for up to four trucks; three empty container handling machines; 120 reefer plug points; as well as dedicated collection and drop-off truck lanes.
“Over the years we have adjusted our business model from operating as a general purpose depot, to now focusing on 60% to 70% reefer-orientated work. “Having doubled our current capacity, we can now offer our customers a more streamlined system of container movement through the yard.”
Zambia material export ban sends feed prices record high (Business Daily)
The cost of animal feeds has hit a record high after Zambia banned the export of soya and sunflower meals, which are major raw material used in feed production. Zambia is one of the main source markets for Kenya for the products, and a freeze in exports is expected to have a negative effect on feed supply. The Association of Kenya Feed Manufacturers (Akefema) says that 15 millers have already closed shop due to high cost of doing business. The cost of Soya has now doubled to Sh130 from Sh65 a kilogramme in August last year, while sunflower meal is up from Sh25 to Sh35. Akefema appealed to the government to allow duty-free importation of GMO yellow maize and soya to ease the current deficit.
Botswana lifts 2021 economic growth forecast to 9.7% (Reuters)
Botswana now expects economic growth of 9.7% in 2021, compared with the 8.8% forecast in February, helped by higher diamond sales and a recent rebasing of GDP accounts, Finance Minister Peggy Serame told Reuters on Monday. She added the 2021 budget deficit was expected to widen to 3.9% from the 2.8% seen in February. In July, Botswana revised its real GDP accounts base year to 2016 from 2006, seeking to improve the accuracy of its measurement of economic growth. “The larger than forecast contraction in 2020 is, however, expected to be offset by an improvement in growth in 2021 which has now been revised upwards to 9.7 percent growth for the year,” Serame said in response to emailed questions.
Kenyan youth stake claim to digital jobs, seat at negotiating table (UNCTAD)
Young people can be catalysts of inclusive development. That’s the mantra of Linda Okero, a communication enthusiast who leads Youth Action Hub Kenya, a group of young trailblazers from Nairobi.
With the COVID-19 pandemic accelerating digital transformation across sectors – spurring the rise of platform economies and with it the emergence of new employment trends, job roles and opportunities – the youth in Kenya are looking towards the future of work with hope and optimism. “Economically empowered young people are more likely to step into leadership roles and dare to voice and propose solutions, hopes and visions for a better tomorrow,” Ms. Okero says. In Kenya, digital access has been instrumental in reshaping the concept of work, with many unemployed youth, students or young professionals leaning towards newly available short-term jobs or “gigs” to earn an additional income. In the next five years, the gig industry in the country is projected to grow by 33% annually, offering the youth with relevant digital skills a chance to compete for opportunities on a global scale.
To leverage this blooming sector, Youth Action Hub Kenya launched the “Own Your Voice on SDGs” project to educate young people on emerging job opportunities within the digital economy.
One drag on Nigeria’s GDP growth is not because of the pandemic (Quartz Africa)
On the face of it, Nigeria’s economic recovery is on the right track. The country’s GDP grew 5% from April to June, according to official data last week (Aug. 26), making it Nigeria’s best quarterly performance since the closing months of 2014. The easing of Covid-19 restrictions, and the reopening of land borders with neighboring Benin after 16 months, contributed to retail and other domestic trade growing by 22.5%, according to Ibukunoluwa Omoyeni, an analyst at Vetiva Capital, a Lagos-based firm. Transportation and storage also contributed to the bump with nearly 77% year-on-year growth. However, this year’s second quarter is only impressive because it is being compared to a 6.1% slump in the same period in 2020. Omoyeni says growth of up to 8% aided by better performance in other sectors is needed to restore Nigeria to its pre-pandemic growth path. One of those sectors is the telecommunications and information services sector, which is a case study for how poorly-timed policies can impact an economy’s ability to recover from shocks.
NPA sets new guidelines for barge operations at seaports (Daily Trust)
The Nigerian Ports Authority (NPA) has established a new regulatory framework for the operation of barges across the nation’s seaports. A statement by the authority, signed by the general manager, Corporate and Strategic Communication, Olaseni Alakija, stated that the guidelines, which come under a new Standard Operating Procedure (SOP), must be obeyed by all operators effective September 1, 2021. The authority, the statement said, is poised to review the modalities for the registration of barge operating license with emphasis on operators meeting the minimum safety standards ((MSS) of their barges. Failure to meet this requirement will bar an operator from using the channel, it said.
Alakija noted that under the new set of regulations, an electronic call-up system would be developed for deployment for barge operations in which barges would remain at their anchor until they are called to pick or discharge cargo.
Economic growth may regress if we don’t borrow — FG (Daily Trust)
The Minister of Finance, Budget and National Planning, Zainab Ahmed, has said the 5.01 percent Gross Domestic Product (GDP) growth recorded in the second quarter of 2021 will regress if the federal government does not borrow to invest in critical infrastructure for investments required for business productivity. Speaking in Abuja Monday during a joint press conference with the Minister of Information and Culture, Lai Mohammed and other government officials, Ahmed said the government was “happy economic and business activities are fully returning to pre-COVID-19 period.”
Govt reintroduces mandatory sale of export proceeds (Malawi Nyasa Times)
The Reserve Bank of Malawi (RBM) has reintroduced mandatory sale of export proceeds, a facility that the Bank introduced in 1994 as an export incentive scheme. The scheme allowed exporters to retain export proceeds in their Foreign Currency Denominated Accounts (FCDAs). The scheme started with a Retention/Conversion ratio of 10/90 and has progressively been adjusted downwards until it was abolished in March 2015. Since the abolition of the Retention/Conversion ratio, exporters are allowed to retain 100 percent of export proceeds in their FCDAs.
Zimbabwe: Unfortified Food Faces Ban (The Herald)
Manufacturers of foods that are required to be fortified have been warned by the Ministry of Health and Child Care that they risk having their products banned if they do not meet the required standards. In 2016, the idea was pushed a lot further to combat the loss of most vitamins and minerals when many common grains are processed, with these losses having to be replaced at levels previously set, as laid out in Statutory Instrument 120 of 2016: Food and Food Standards (Food Fortification Regulations).
Ethiopia Positions as Africa’s Aviation Hub (East African Business Week)
Ethiopian Airlines Group and the Boeing Company have signed a strategic Memorandum of Understanding (MoU) on positioning Ethiopia as an aviation hub for Africa. Building on the two parties’ seventy years of shared history in aviation, the MoU aims at positioning Ethiopia as Africa’s aviation hub – “Ethiopia for Africa”. Boeing has recognized Ethiopian as a global aviation leader in the continent. The MoU is indicative of Boeing and Ethiopian Airlines’ interest to establish a mutually beneficial world-class aviation partnership. To realize their shared vision, Ethiopian and Boeing have agreed to work in partnership in four areas of strategic collaboration namely: Industrial Development, Advanced Aviation Training, Educational Partnership, and Leadership Development in a span of three years.
Africa
A two-day East African Community (EAC) workshop aimed at enhancing the participation of women in the African Continental Free Trade Area (AfCFTA) opened on Monday. Speaking during the opening session of the workshop, the EAC Deputy Secretary General in charge of the Productive and Social Sectors, Hon. Christophe Bazivamo, said that traders in Africa especially women, youth and SMEs face significant challenges when attempting to benefit from multilateral and regional trade agreements as many trade agreements do not include their specific needs and concerns.
“In EAC, the AfCFTA will allow our people to access a large continental market and increase EAC export to African countries outside the region. It will also improve movement of people across Africa, advance trade and development aspirations and ultimately put the region in a better position to trade more with the rest of the world,” said Hon. Bazivamo.
AfCFTA: A Guide for Export Oriented Nigerian Manufacturers, SMEs (THISDAY Newspapers)
The National Action Committee on AfCFTA provided needful guide on how Nigerian enterprises could participate effectively in the African Continental Free Trade Area (AfCFTA).
Secretary, NAC on AfCFTA, Mr. Francis Anatogu said: “What is important is to know the steps and how to take them. It is important to know what is in place and what are still being discussed to enable businesses to get up and do what that are needed to be done. “The AfCFTA is about rules and making them clear; about reducing tariffs and harmonising policies, standards and operationalising corporation among African countries so that we can increase trade among ourselves. It is also about exporting and earning FX,” adding that the agreement offered those who are able to produce, the market to sell at discretional terms.
Sadc should tap into digital industrialisation opportunities (Chronicle)
INCREASING digitalisation is critical for Southern African Development Community (Sadc) countries to minimize disturbances to the development of industry as a result of Covid-19. The Vice President of Malawi, Dr Saulos Klaus Chilima, said this in a recent Sadc public lecture on industrial digitalisation where he stressed the need for scaling up regional collaboration in driving innovation in various sectors to foster development. He called for the strengthening of Sadc member States’ capacities and exploring possibilities of establishing a regional centre of excellence on digital technology. “Covid-19 has provided impetus for innovation and development of technologies for continuation of business amidst the pandemic,” said Dr Chilima, a former chief executive officer for Airtel Malawi. His lecture was delivered under the theme: “Promoting Digitalisation for the Revival of the Sadc Industrialisation Agenda in the Covid-19 Era”, taking into account the disruptive impact of the pandemic on regional supply chains.
Côte d’Ivoire, Ghana, Nigeria… Is West Africa ready for life without the CFA Franc? (The Africa Report)
After a further postponement of the launch of the ECOWAS single currency, which was supposed to be launched in 2020, the 15 heads of state and government concerned have set a new date for the transition in 2027. Will it work this time? The question is legitimate, because the deadline for creating the eco is very tight. The eight member states of WAEMU have been slow to ratify the abandonment of the CFA franc. Nigeria is sulking over this move by Francophone countries. There has been little improvement in convergence between the countries that are candidates for the monetary union. Will the eco rate be fixed or flexible? Will its central bank be truly independent?
Can Africa Fund its Way Out of Poverty? (News Ghana)
The narrative of Africa is nothing but positive. From time immemorial, Africa has been battling with all sorts of labels. These include lack of infrastructure, inequality, lack of opportunities, high crime rate, overpopulation, bad governance, corruption, and poverty. Many on the continent are already used to the over-flogged statement that Africans live on less than a dollar a day and that it is the world’s poverty capital. The international poverty line the World Bank says is $1.90 per day using purchasing power parity.
In 2021 according to Development aid, there are 490 million people in Africa living in extreme poverty, or 30% of the total population. This number is up from 481 million in 2019. Unfortunately, what further compounds the problem of poverty in Africa is the rapidly growing African population.
The Organisation for Economic Cooperation and Development (OECD) Development Assistance Committee, which tracks Official Development Assistance (ODA) spending, reported that in 2019, aid to Africa totalled $US49.1 billion or 34% of total net ODA. Furthermore, a Washington Times report said that “Over the past 60 years, at least $1 trillion of development-related aid has been transferred from rich countries to Africa, yet, endemic poverty still exists.” So, the question now is, where are the international aids meant for development going? Are they only good enough to purchase motorcycles et al.? Are they being lost to corruption or other unproven or not well thought out modes of resolving poverty?
France works with African partners to deliver 10 million vaccines to Africa (UNECA)
African Union Member States will receive an additional 10 million doses of Astra Zeneca and Pfizer COVID-19 vaccines over the next three months through a new partnership between the French government and the African Union. The vaccines will be allocated and distributed by the initiative known as the Africa Vaccine Acquisition Trust (AVAT) and the COVAX global vaccine initiative. The AVAT initiative was set up as a pooled procurement mechanism for the African Union Member States to be able to buy enough vaccines for at least 50% of their needs. The AVAT works closely with the COVAX initiative, which seeks to provide the other 50% through donations. AVAT is managed on behalf of the African Union Member States by an alliance of the Africa Centres for Disease Control and Prevention (Africa CDC), the United Nations Economic Commission for Africa (UNECA), as well as the African Export-Import Bank (Afreximbank), which also provides the funding for the acquisition of vaccines. AVAT has already acquired enough vaccines for African countries to vaccinate 400 million people, or one-third of the African population, by September next year, at a cost of $3 billion, supported by an innovative partnership with the World Bank.
African campaigners call for climate justice to hasten green recovery (News Ghana)
Delivering climate justice to African countries is crucial to accelerate the continent’s green recovery in the wake of the COVID-19 pandemic’s social and economic aftershocks, campaigners said on Monday. The green campaigners stressed that promoting a climate-resilient future for Africa was paramount in order to safeguard the livelihoods of communities.
Keriako Tabiko, Kenya’s cabinet secretary for Environment and Forestry in his opening remarks at the Nairobi Summer School on Climate Justice said that Africa deserved a fair allocation of resources, technologies and innovations to help communities cope with extreme weather events.
“Every climate action that will be undertaken in Africa going forward should have justice, equity and human rights as key components. We must entrench climate justice in legislation and policies,” Tobiko said at a forum in Nairobi. Mithika Mwenda, executive director of PACJA noted that there is a growing consensus on the need to promote justice, equity and inclusivity in Africa’s quest for carbon neutrality. “Climate justice is no longer an abstract concept. It is key to raising the voices of local communities in Africa and the global south who have suffered heavily from failed crops, droughts, floods and disease outbreaks linked to rising temperatures,” said Mwenda.
A Turning Point for Dubai-Africa Trade (Forbes Africa)
The Global Business Forum Africa in Dubai and Dubai Chamber’s representative offices across the continent have catalysed bilateral trade growth over the last decade. Dubai’s trade with Africa has grown by leaps and bounds over the last decade, thanks to several important developments that have established new business links between the emirate and promising markets across the continent. The emirate’s trade and investment relationship with Africa has gone from strength to strength in recent years as more African companies have entered the UAE, while many UAE companies have expanded their presence in Africa. Among the most crucial factors that facilitated bilateral trade and investment flows is the Global Business Forum Africa in Dubai. Since this high-profile event series was launched by Dubai Chamber in 2013, Dubai’s non-oil trade with Africa has surged by over 71 percent to exceed $50 billion in 2020. The 6th edition of the Global Business Forum Africa, set to descend on Expo 2020 Dubai October 13th -14th, 2021, comes at a time when UAE-Africa ties are rapidly expanding as the African Continental Free Trade Area (AfCFTA) and regional integration efforts gain momentum.
Dubai’s trade with Africa is projected to see an annual increase of up to 10% over the next five years following the implementation of AfCFTA, according to recent analysis from Dubai Chamber.
Global
International community must act to avert a two-speed global economic recovery post Covid-19 (AfDB)
Heads of international development institutions held a closed-door session with German Chancellor Angela Merkel on Thursday to discuss the uneven global economic recovery, access to vaccines, and strategies to drive a recovery from the Covid-19 crisis. Merkel was joined by the heads of the African Development Bank, World Trade Organization, the International Monetary Fund (IMF), the World Bank, the Organisation for Economic Cooperation and Development (OECD), and the International Labour Organization (ILO).
Addressing Africa’s economic prospects, African Development Bank President Akinwumi A. Adesina said the continent’s economies were forecast to grow by 3.4%. He said the IMF special drawing rights were invaluable in facing down economic headwinds. “The recent IMF release of $650 billion in SDRs, with $27 billion to Africa, will go a long way in helping to boost reserves for developing countries,” he said. He added: “If the developed countries reallocate $100 billion of SDRs to Africa, as agreed at the Paris leaders meeting and by the G7, that will further support faster economic recovery in Africa.”
The meeting took place a day before a Compact with Africa conference, which several African heads of state are attending. The Compact with Africa is a G20 initiative that promotes private investment in Africa. It involves reform of the continent’s macroeconomic, business and financing frameworks.
Allow Least Developed Countries to Develop (Inter Press Service)
The pandemic is pushing back the world’s poorest countries with the least means to finance economic recovery and contagion containment efforts. Without international solidarity, economic gaps will grow again as COVID-19 threatens humanity for years to come. While bringing some concessions, the ‘least developed countries’ (LDCs) designation – introduced five decades ago – has not generated changes needed to accelerate sustainable development for all.
With many others joining, the LDCs list rose to 49 in 2001. Half a century later, with only seven having ‘graduated’ – after meeting income, ‘human assets’ and economic & environmental vulnerability criteria – the 44 remaining LDCs have 14% of the world’s people. With more than two-thirds in Sub-Saharan Africa, LDCs have over half the world’s extreme poor, surviving on under US$1.9 daily. LDCs are 27% more vulnerable than other developing countries, where 12% are extreme poor. Although they have not yet graduated, several LDCs have successfully begun diversifying their economies. Their policy initiatives offer important lessons for others.
Food systems: seven priorities to end hunger and protect the planet (Nature)
The world’s food system is in disarray. One in ten people is undernourished. One in four is overweight. More than one-third of the world’s population cannot afford a healthy diet. Food supplies are disrupted by heatwaves, floods, droughts and wars. The number of people going hungry in 2020 was 15% higher than in 2019, owing to the COVID-19 pandemic and armed conflicts.
Our planetary habitat suffers, too. The food sector emits about 30% of the world’s greenhouse gases. Expanding cropland, pastures and tree plantations drive two-thirds of the loss in forests (5.5 million hectares per year), mostly in the tropics. Poor farming practices degrade soils, pollute and deplete water supplies and lower biodiversity.
As these interlinkages become clear, approaches to food are shifting — away from production, consumption and value chains towards safety, networks and complexity. Recent crises around global warming and COVID-19 have compounded concerns. Policymakers have taken note.
Era of leaded petrol over, eliminating a major threat to human and planetary health (UN Environment)
When service stations in Algeria stopped providing leaded petrol in July, the use of leaded petrol ended globally. This development follows an almost two decades long campaign by the UNEP-led global Partnership for Clean Fuels and Vehicles (PCFV).
2021 has marked the end of leaded petrol worldwide, after it has contaminated air, dust, soil, drinking water and food crops for the better part of a century. Leaded petrol causes heart disease, stroke and cancer. It also affects the development of the human brain, especially harming children, with studies suggesting it reduced 5-10 IQ points. Banning the use of leaded petrol has been estimated to prevent more than 1.2 million premature deaths per year, increase IQ points among children, save USD 2.45 trillion for the global economy, and decrease crime rates.
“The successful enforcement of the ban on leaded petrol is a huge milestone for global health and our environment,” said Inger Andersen, Executive Director of UNEP. “Overcoming a century of deaths and illnesses that affected hundreds of millions and degraded the environment worldwide, we are invigorated to change humanity’s trajectory for the better through an accelerated transition to clean vehicles and electric mobility.”
By the 1980s, most high-income countries had prohibited the use of leaded petrol, yet as late as 2002, almost all low- and middle-income countries, including some Organisation for Economic Co-operation and Development (OECD) members, were still using leaded petrol. The PCFV is a public-private partnership that brought all stakeholders to the table, providing technical assistance, raising awareness, overcoming local challenges and resistance from local oil dealers and producers of lead, as well as investing in refinery upgrades.
FAO calls for renewed digital push in Small Island Developing States battered by COVID-19 (FAO)
The Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, today called on Small Island Developing States (SIDS) to foster the power of innovation and digitalization to accelerate the achievement of the Sustainable Development Goals (SDGs), particularly SDG 1 (No poverty), SDG 2 (No hunger) and SDG 10 (Reduced inequalities). Qu spoke at the opening of the two-day virtual SIDS Solutions Forum (30-31 August), co-hosted by FAO and the Government of Fiji.
"Advances in digital innovation have seen the vast oceans that separate us give way to vast possibilities. Alone, we are small islands. Together, we are one connected continent bound by a spirit of innovative resilience,” said Josaia V. Bainimarama, Prime Minister of Fiji. “Our 39 states, from the South Pacific, to the Caribbean, to the Indian Ocean, are home to incredible minds, cutting edge innovation and deep traditional knowledge.”
Digital technologies are transforming agri-food systems. While this is an important development everywhere, it is of great importance to remote areas such as SIDS. The expansion of mobile technologies, remote-sensing services and distributed computing are already improving smallholders’ access to information, inputs and markets, increasing production and productivity, streamlining supply chains, reducing operational costs, and consequently enabling farmers to gain more economically.
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National
New number plate system to speed up South Africa’s border controls (BusinessTech)
The South African Revenue Service (SARS) is piloting a new Number Plate Recognition (NPR) system, which aims to speed up trade across the country’s land borders significantly.
The new system will eliminate the need for manifests and CN2 gate pass documents to be presented at the border for arrival and exit control measures, the revenue authority said. “The NPR solution is an initiative under the customs modernisation programme and is informed by the SARS strategic objectives of making it easy for taxpayers and traders to comply with their obligations, as well as to detect taxpayers and traders who do not comply, and to make non-compliance hard and costly,” it said. SARS said that the system also aligns with international standards and the World Customs Organisation (WCO) ‘smart borders’ concept that requires customs administrations to utilise automation, technology, and risk management to facilitate and secure cross-border trade and improve customs processes, services and overall performance.
Kenya cereal producers see red over Dar imports (The East African)
Tanzanian exports to Kenya, which include maize, have exceeded imports for the first time in decades and now cereal producers in Kenya are worried that these imports could spell doom for food production in the long run. “This country should not import what it can produce locally. Because we must not forget that for every metric tonne of grain or some other produce we import, we have in essence exported a few jobs,” said Anthony Kioko, the chief executive of the Cereals Growers Association (CGA). The association is now calling for a review of bilateral and EAC protocols on food commodities.
Kenya strengthens partnership with U.S. Trade and Development Agency (Today News Africa)
The government of Kenya has strengthened its partnership with the U.S. Trade and Development Agency, as the East African nation recovers from the global impact from the coronavirus economic turmoil.
Launched in 2013, USTDA’s Global Procurement Initiative: Understanding Best Value is dedicated to assisting public officials in emerging economies to better understand the total cost of ownership of goods and services for infrastructure projects. The Initiative now includes 14 partner countries. Last week, the U.S. Trade and Development Agency welcomed Kenya as its 14th partner under the Global Procurement Initiative (GPI): Understanding Best Value.
“USTDA has a long history of engagement with Kenya. Our GPI partnership builds on this foundation to support the country’s efforts to ensure fair, transparent procurements and increased international competition for its public tenders,” said Enoh T. Ebong, USTDA’s Acting Director. “This will lead to higher-quality and more resilient infrastructure for the people of Kenya. We are excited about the positive transformations that the GPI will facilitate.”
Under the partnership, USTDA will lead trainings in the United States, Kenya and virtually on international best practices and the integration of best value methodologies in public procurement.
Cotton production rises 16 percent (Business Daily)
“Yield per acre increased due to use of superior seed provided to the farmers by the government during the period under review as farm input support,” AFA said. Kenya’s cotton production increased 16 percent last year on better quality seed, a new report showed. Data by the Agriculture and Food Authority (AFA) shows that cotton production increased from 3,015 tonnes in 2019 to 3,495 tonnes last year despite a 45 percent drop in the area under crop.
Tea price hits highest this year on reserve price, rising demand (Business Daily)
The price of tea at the Mombasa auction has this week climbed to the highest level seen this year on the back of good demand and a government backed reserve price. The average price of a kilogramme of the beverage rose past the key two-dollar mark to hit $2.04 (220) from $1.97 (Sh212) in last week’s trading, maintaining a seven week of rally at the auction. “There was better absorption and much-improved demand for the 129,475 packages (8.41 million kilogrammes) available for sale with 87,895 packages (5.68 million kilogrammes) being sold,” said the East African Tea Traders Association (Eatta). The higher price was also helped by declining volumes of the beverage at the auction, which recorded 132,495 fewer kilos compared with the previous sale. The lower volumes have seen the auction cut the trading days to two from three.
Dar ports bring more fortune (Dailynews)
TANZANIA’s ports have attracted more revenues in the past six months, garnering 531.1bn/- between February and July, this year up from 525.4bn/- earned during corresponding period last year. The increased revenues came in the wake of improved infrastructures and performance which enhanced cargo handling capacity. Statistics indicate that the cargo handled at the country’s ports increased from 7.83 million tonnes between February and July last year to 8.87 million tonnes in corresponding period this year, despite the Covid-19 pandemic that disrupted business globally.
The Chief Government Spokesperson, Mr Gerson Msigwa, revealed this over the weekend during a press briefing held in Dodoma, noting that the surge was driven by an increasing number of ships docking at the ports from 1,388 to 2,206 ships. “We cannot underestimate the increase in revenue taking into account that some countries are experiencing a significant drop due to the effects of Covid-19 pandemic,” he said.
Zimbabwe Saves US$38,1 Million As Import Bill Declines - NewZimbabwe.com
THE huge import bill decline has enabled the country to save US$38,1 million, the Reserve Bank of Zimbabwe’s (RBZ) has said in its latest economic review report. The document, which covers the period ended April 30 2021, says the import bill was relatively lower when compared to the previous month. “Merchandise imports eased by 7,2%, from US$528 million in March 2021 to US$489,9 million in April 2021. The decline in imports in April 2021 was largely driven by slowdowns in imports of maize, crude soya bean oil and electricity. Maize imports slumped largely on account of the current year’s bumper harvest estimated at 2.7 million metric tonnes,” the bank said, adding the general improvement in hydroelectricity generation, following rising dam levels, accounted for the fall in the country’s energy import bill.
Zim Farmers Urged To Tap Into US$1,7 Million Bambara Nuts Export Market (New Zimbabwe.com)
TRADE promotion agency, Zimtrade has urged local farmers to tap into the US$1,7 million Bambara nuts (nyimo/indlubu) export market covering countries like the USA, UK and the Netherlands among others. In a recent update, the agency said the global import bill of the product was just US$1.7 million in 2020, up from US$1.23 million in 2019. “What this figure shows is that countries that are quick to increase exports right now will likely command the largest share when the market grows bigger. “Although Zimbabwe’s exports of the product are still low, the current market share indicates potential for the country to command a much bigger market,” said Zimtrade.
Currently, the major importing countries for the product are Saudi Arabia, South Africa, USA, Chile, Uganda, UK, and Netherlands. Local farmers intending to export Bambara beans to Europe are encouraged to adhere to the strict rules and obligations on food safety.
Trade Ministry Seeks Amendment to PIA, Eyes N1bn Revenue (THISDAYLIVE)
There are indications that the the Federal Ministry of Industry, Trade and Investment has put machinery in motion to push for the amendment of the newly passed Petroleum Industry Act (PIA) to address certain conflict with the mandate of the Weights and Measures Department particularly in the area of pre-shipment inspection activities at the crude oil terminals.
Director, Weights and Measures Department, Mr. Hassan Ejibunu said that the federal government had issued a marching order to the department to improve on it revenue generation efforts to achieve the over N1 billion target before the end of the year. He said as at July, the department had generated over N357 million to the federal government, working with limited tools
Stanbic IBTC Tasks Investors To Maximise AfCFTA Opportunities (Leadership Nigeria)
Stanbic IBTC Bank Plc, has urged Nigerian investors and business owners to harness and maximise the business opportunities that are inherent in the African Continental Free Trade Area (AfCFTA) agreement. According to the bank, this will boost intra-Africa trade beyond the current level of 17 per cent as well as promote industrialisation and the economic growth of the continent. The chief executive, Stanbic IBTC Bank, Wole Adeniyi, made the call at the African Continental Free Trade Area webinar organised by Stanbic IBTC themed: ‘AfCFTA State of Play: Understanding Potential and Maximising Opportunities for the Customer’. Adeniyi stated that multiple studies have shown that the increase in trade has a direct impact on reducing unemployment and poverty in societies, noting that the AfCFTA agreement presents numerous trade opportunities that are both exciting and promising not just for the continent but specifically for the Nigerian market.
Congo reviews $6b mining deal with Chinese investors: minister (The East African)
Democratic Republic of Congo’s government is reviewing its $6 billion “infrastructure-for-minerals” deal with Chinese investors as part of a broader examination of mining contracts, Finance Minister Nicolas Kazadi told Reuters. President Felix Tshisekedi said in May that some mining contracts could be reviewed because of concerns they are not sufficiently benefiting Congo, which is the world’s largest producer of cobalt and Africa’s leading miner of copper. His government announced this month it had formed a commission to reassess the reserves and resources at China Molybdenum’s massive Tenke Fungurume copper and cobalt mine in order to “fairly lay claim to (its) rights”.
Africa
Africa can become a maritime hub for global trade (Africa Renewal)
It’s difficult to gain a breakdown of the data at this stage, but I think the conversation about what free trade means is vital. It is important to explain the various non-tariff barriers that are in place currently and try to persuade nations that removing some of those barriers will be economically advantageous.
What does efficient shipping look like for Africa? It’s having ships being able to trade freely in the ports; it’s having services that facilitate the import and export of goods without too many administrative barriers. The entire supply chain becomes more efficient when you’re not stopping things from being loaded onto ships or being discharged from the ships. It’s about proportionate regulation. How do you see the future of trade in Africa? Africa has a huge global potential. The continent has an increasingly well-educated workforce. It can take advantage of all these opportunities and become a maritime hub for the world. I genuinely believe that Africa is strategically well placed to do just that.
The digital currency race between Nigeria and Ghana – A win-win for AfCFTA? (Nairametrics)
The wind of Central Bank Digital Currency (CBDC) is currently blowing across the globe with major Central Banks in the process of developing systems that will support digital money. China is testing a digital renminbi version, whereby customers can transact payments over their mobile phones. Europe announced the launch of a digital Euro as part of their five-year plan. The USA Federal Reserve Bank (Fed) is planning to release a discussion paper regarding digital payment system. Africa is not left behind as two very significant countries within the African Continental Free Trade Area (“AfCFTA”) have been in the news recently in their race to launch the first CBDC on the continent. Nigeria, the continent’s biggest economy, through the Central Bank Governor, Mr Godwin Emefiele, announced on July 27, 2021, the launch of the pilot phase of the Nigerian CBDC (e-Naira) in October this year (less than two months from now).
There are other African countries in the race, but Nigeria and Ghana appear to be leading in this regard. Beyond the less important issue of who becomes the first to launch a State-backed digital currency on the continent, there are questions around what benefits the digital currency would add to the African economy.
Experts demand digital solutions “designed by Africa, for Africa” to drive AfCFTA (The Business & Financial Times)
For the African Continental Free Trade Area (AfCFTA) to see true prosperity, there is a need for stakeholders on the continent to devise digital solutions “designed by Africa and used by Africa”.
This was the principal takeaway from the array of experts who shared thoughts at the maiden edition of the Africa Digital Conference, which had as its theme ‘The Digital Challenge: Africa’s Opportunity Under AfCFTA’.
Multiple charges, poor government policies, others pose setback to AfCFTA (The Guardian Nigeria)
To facilitate the much-anticipated progressive continental trade, the African Continental Free Trade Area (AfCFTA) will need to scale several hurdles.
The United Nations Conference on Trade and Development (UNCTAD) in a new report titled: “Implications of the African Continental Free Trade Area for Trade and Biodiversity: Policy and Regulatory Recommendations,” stated that the new regime is facing some critical challenges, which need to be eliminated urgently. It noted that unharmonised or burdensome non-tariff measures (NTMs) can dramatically restrict market entry, limiting the ability of countries to reap economic, social and environmental gains from trade in sustainably produced biodiversity-based goods and services.
UNCTAD therefore stressed the need for an identification exercise on key NTMs affecting biodiversity-based products and services, and BioTrade in particular so that these may be addressed by novel mechanisms within the framework of the AfCFTA Agreement.
AfCFTA: FG Targets to Control 10% of Africa’s Imports (THISDAY Newspapers)
The federal government has stated that the strategic objectives of Nigeria’s participation in the African Continental Free Trade Area (AfCFTA) is to capture 10 per cent of Africa’s imports as well as to double the country’s export revenue by 2035. In addition, the government said it aims to become “the preferred supplier of value-added products and services to Africa.” These were disclosed by the Secretary of the National Action Committee on AfCFTA, Mr. Francis Anatogu, during a seminar organised by the Lagos Chamber of Commerce and Industry (LCCI) with the theme: “AfCFTA: The Roadmap for Exporters Successful Participation.” He said the strategic objective would be achieved by growing export capacity of every state in the country to $1.2 billion as well as by focusing on specific product/service chains.
Equatorial Guinea is well on its way to become a regional natural gas producer and exporter, having recently delivered the country’s first shipment of methanol to neighboring Gabon. Carried by the Jipro Isis Liquified Natural Gas (LNG) carrier, the 2,000MT methanol shipment arrived at the new international port of Owendo in Gabon from Equatorial Guinea’s state of the art Punta-Europa petrochemical complex.
The shipment marks an important step in the move to create a viable regional natural gas trade network, whereby reserves can be effectively monetized – through the conversion into LNG, power and petrochemicals – and used to drive regional economic growth and industrialization. Enabled by the African Continental Free Trade Agreement (AfCFTA), implemented in January 2021, the methanol delivery is expected to spark a significant increase in regional petrochemical and LNG trade. Accordingly, as Africa’s premier energy event, African Energy Week (AEW) 2021 in Cape Town will not only promote the value of regional trade and cooperation in driving energy sector growth, but will both emphasize and showcase post-AfCFTA opportunities.
East African Community Headquarters, Arusha, Tanzania, 30th August, 2021: The East African Community (EAC) Secretary General, Hon. Dr. Peter Mathuki, is urging EAC Partner States’ governments to invest in industrial parks and infrastructure to improve the competitiveness of the region and increase Intra-EAC trade.
Speaking during the opening session of the East Africa Trade and Industrialization Week (EATIW 2021), held at the Julius Nyerere Convention Centre, in Dar es Salaam, Tanzania, Dr. Mathuki urged EAC Partner States’ governments to enhance industrial productivity and strengthen institutional frameworks and policies to accelerate economic growth in the region. “Currently, manufacturing contributes to GDP a meagre 8.9%. To achieve the set target of 25% in 2032, there is a need for diversification of the manufacturing base and raising local value-added content resource-based exports,” he said. The Secretary General called for promotion of rural industrialization through an agricultural development led industrialization strategy and strengthening of research, technology and innovation capabilities of all EAC Partner States, to foster structural transformation of the manufacturing sector and industrial upgrading. As a strategy towards economic recovery amid Covid-19 in the region, Dr. Mathuki called upon EAC Partner States Governments to offer long-term stimulus packages for private sector development and sector-specific incentives for the established regional value chains such as cotton, textile and apparel, leather livestock and Agro-processing.
“Instead of competing, EAC Partner States need to complement each other. Harnessing our comparative advantage by collectively improving infrastructure connectivity will fast-track regional development,” Dr. Mathuki added.
EAC CS on Ease of Doing Business and attracting investors (Capital FM Kenya)
Globally, the growth of investments and private capital has been critical to stimulating economic growth and job creation. The Ministry of EAC and Regional Development notes that many governments have prioritized boosting their standing incredible international investment reports to help attract investments. One such important tool is the World Bank’s Global Ease of Doing Business report, which measures the competitiveness of 190 global economies according to set parameters. Given its robust methodology, wide acceptance, and practical approach to addressing the business climate issues facing small and medium businesses (SMEs), investors refer to this report to guide investment decisions. In 2014, Kenya was at the bottom quarter globally as an investment destination, primarily because of its difficult business environment: Kenya was ranked 136th on the ease of doing business, while foreign direct investment (FDI) for some of our neighboring countries was triple that of Kenya then at US$ 300 million.
The Ministry notes that investors complained of a lack of clear information on investment procedures, even from key government agencies. To address the situation, the Government of Kenya under the Leadership of President Uhuru Kenyatta set an ambitious target to be among the top 50 countries globally by 2022.
Kenya has since risen 80 places, ranking 56th globally in 2019, and achieved several important milestones through ten reforms areas to date – including starting a business; dealing with construction permits, getting electricity, registering property, getting credit; protecting investors; paying taxes, trading across borders, enforcing contracts, resolving insolvency and procurement, with remarkable benefits that have accrued to the private sector, especially to small and medium businesses, and to the Government through realizing new efficiencies. The CS for Ministry of EAC and Regional Development Adan Mohamed, who has been in charge of the reforms since 2014, is keen to articulate how the legal and regulatory reforms have impacted the registration, growth, and sustainability of small businesses and Foreign Domestic Investment (FDI) in Kenya, under President Uhuru Kenyatta’s tenure.
Participants of a G20 Compact with Africa meeting this week assessed Africa’s progress in fighting the Covid-19 pandemic. “We are meeting at a pivotal time in the relationship between Africa and the rest of the world,” said Italian prime minister Mario Draghi. The Compact with Africa is a G20 initiative that promotes macroeconomic, business and financing reforms to attract more private investment in Africa, including in infrastructure. The conference brought together heads of state of the 12 Compact members and institutional partners, including the African Development Bank and the International Monetary Fund (IMF). It involved strategy discussions around attracting higher inflows of foreign direct investment to Africa and the urgent imperative to develop vaccine manufacture capability on the African continent. Securing the continent’s recovery from the impacts of Covid-19 is one of the Compact’s near-term objectives.
President Cyril Ramaphosa of South Africa emphasized that “Africa will not be able to recover until Africans are vaccinated.” President Emmanuel Macron said France had committed to providing $10 million vaccine doses for Africa. African Development Bank President Akinwumi Adesina said the African Development Bank had committed to investing $5 billion to support vaccine manufacturing across Africa, while World Bank President David Malpass highlighted vaccine financing programs set up in 54 countries, noting that more than half of these are in Africa.
Merkel wants more investment in Africa, ‘fair’ vaccine distribution (DW)
German Chancellor Angela Merkel on Friday talked with leaders of 12 African nations that are part of the Compact with Africa initiative, some of whom tuned in virtually to the Berlin summit. At the meeting, Merkel promoted economic cooperation with Africa and stressed the importance of containing the spread of COVID on the continent. She appealed for more German investment in Africa, particularly in the renewable energy sector. “Africa has so much market potential, but we need to make better use of it,” Merkel said at the conference. Expansion of renewable energy investment “is of enormous importance for us to achieve our global climate goals,” the German chancellor added.
Stakeholders meet on the implementation of the Global Compact for Migration in Africa (UNECA)
Stakeholders involved in the migration sector have met today to share their perspectives on a cohesive implementation of the Global Compact for safe, orderly and regular Migration (GCM) in Africa. The purpose of the meeting was to review the GCM’s implementation, discuss pressing challenges, share good practices and make recommendations to the first Africa Regional Review of the Global Compact for Migration taking place on 31 August and 1 September.
In her opening remarks, Ms. Thokozile Ruzvidzo, Director of the United Nations Economic Commission for Africa’s (ECA) Gender, Poverty and Social Policy Division, said: “The GCM offers us opportunities to boost migration benefits for migrants as well as for origin, transit and destination societies. While its adoption is a milestone, the GCM’s implementation remains key.” She added: “This meeting allows us to reflect on the status of the GCM’s implementation by African member States since its adoption in 2018 from stakeholders’ perspectives. I urge all of you to continue your active engagement in ensuring the GCM’s vision of safe, orderly and regular migration is achieved in Africa.”
SADC convenes virtual meeting of Ministers responsible for Gender and Women Affairs (SADC)
The Southern African Development Community (SADC) Ministers responsible for Gender and Women’s Affairs convened a virtual meeting to review progress made in the implementation of the SADC Gender Programme on 26th August 2021.
Honourable Dr Patricia Annie Kaliati, Minister of Gender, Community Development and Social Welfare of Malawi, delivered the official remarks and highlighted that it is important to realise that the SADC Regional Indicative Strategic Development Plan (RISDP) does not only identify gender as an important cross cutting issue but also recognises gender equality and women’s empowerment as important enablers of regional integration.
The Ministers approved the Draft Regional Guidelines on Developing and Implementing National Gender Action Plans and their recommendations and encouraged the use of these Guidelines by Member States to strengthen development, implementation, monitoring, and coordination of national gender policies, strategies and action plans, including allocation of the necessary resources. They urged the SADC Secretariat to expedite the processes of implementation of the SADC-GIZ Project on Industrialisation and Women’s Economic Empowerment (IWEE) and disseminate information to Member States about the Project to guide the participation of relevant sectors from Member States in this Project and also urged Member States to fully participate in the implementation of this Project upon engagement by the SADC Secretariat and other project stakeholders.
Identifying export opportunities in agriculture inputs, implements (Sunday Mail)
The growing world population and changing climatic patterns have resulted in a major boost towards increased agricultural production across countries. The fast-changing diets of developing countries have also changed the structure of the global agricultural systems and this has seen an increase in agricultural production in most parts of the world. In fact, the need to be food sufficient has become a key strategy for growth in most third world countries, especially in Africa where economies that had not previously relied on agriculture are increasing investments into the sector.
In southern Africa for example, countries such as Botswana and Angola have introduced some measures to diversify their economies from dependency on the volatile mining sector to developing the agriculture sector, which is considered to be more sustainable.
From all these developments in countries in the region, there is a realisation that appropriate and affordable agricultural inputs and implements made available to farmers will go a long way in increasing output in a short period of time.
As the world’s food production system has become more interdependent, trade in agricultural inputs and implements has grown tremendously. The expansion of the global food market has resulted in a reshuffling of resources over the entire globe, providing food and export opportunities where they may have been previously limited, unavailable, or untenable.
Trade expansion in agricultural commodities and food products has been accompanied by significant increases in demand for agricultural inputs, such as fertilisers, pesticides, farm machinery, feedstuffs, and genetic material.
Why is used clothing popular across Africa? (IPPmedia)
Burundi, Kenya, Rwanda, Tanzania, and Uganda could all ban second-hand clothes and leather, among the countries which make up the East Africa Community (EAC). The EAC directed member countries to buy their textiles and shoes from within the region with a view to phasing out imports. In 2019 the EAC also proposed a reduction in imports of used cars. The EAC suggested phasing out imports. However, that it depends on the heads of state all agreeing to a common industrialisation policy. The proposal suggests a ban would only come in after an increase in local textile production. The idea is to give a boost to local manufacturing, and help the economy. One argument is that the imported clothes are so cheap that the local textiles factories and self-employed tailors can’t compete, so they either close down or don’t do as well as they could. A release from a previous EAC manufacturing and business summit says the leather and textile industries are “crucial for employment creation, poverty reduction and advancement in technological capability” in the region.
Across the African continent second-hand clothes from developed countries are a mainstay of many informal traders, dominating local market stalls. East African Community (EAC) proposed ban aims is to encourage local production and development within member countries: Burundi, Kenya, Rwanda, Tanzania and Uganda alone imported $151m of second-hand clothing in 2018, most of which was collected by charities and recyclers in Europe and North America. In the 1970s, East Africa’s clothing manufacturing sector employed hundreds of thousands of people, but when the debt crisis hit local economies in the 1980s and 1990s, local manufacturing struggled to compete with international competition and factories were forced to close. Today, the small sector remaining is geared towards production for exports.
Windfall for African SMEs (The Southern Times)
During the micro, small and medium-sized enterprises (MSMEs) consultation on the Africa Continental Free Trade Area in Dakar, Senegal last week, the European Union pledged 74 million euros to support the businesses. The pledge was announced by the Secretary-General of the All-Africa Association for Small and Medium Enterprises (AAASME), Mr Ebiekure Eradiri. “I hope this information can help ignite your commitment towards ensuring that the AfCFTA does not fail,” said Mr Eradiri. “Let us build Africa, grow Africa, and buy Africa.” According to the World Bank, SMEs play a major role in the economies of developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development, representing about 90 percent of businesses and more than 50 percent of employment. Formal SMEs contribute up to 40 percent of national income in emerging economies. These numbers are significantly higher when informal SMEs are included.
The goal of the Dakar forum was to give an insight into the challenges AfCFTA poses to MSMEs, find solutions to them, and encourage them to build networks across the continent.
“MSMEs employ the most people, occupy the biggest position in making contribution to countries’ gross domestic product, and are a force for social, economic, and political stability. The AfCFTA is one big opportunity for SME growth. The AfCFTA which commenced operation on 1 January is set to create the biggest free trade area in the world with a market of more than 1.2 billion people and a gross domestic product (GDP) of more than US$2.5 trillion,” said Mr Eradiri.
Investment dealings help reinforce ties (Chinadaily)
Chinese private companies are becoming a driving force in promoting industrialization and economic growth in Africa, with the level of China’s investment in the continent rising steadily in recent decades, a report says. “Market Power and Role of the Private Sector: Report on Chinese Investment in Africa”, published by the China-Africa Business Council on Thursday, said Chinese private companies have advanced industrialization, developed infrastructure, promoted employment and improved people’s lives in Africa with growing investment in the continent over recent decades. The report comes as China and Africa prepare for the Forum on China-Africa Cooperation, or FOCAC, in Senegal later this year. Since 2000, when the first FOCAC meeting was held, China’s direct investment in Africa has risen more than 25 percent a year, the report said.
TradeMark East Africa women entrepreneurs funded trade project succeed (IPPmedia)
Financed by TradeMark East Africa and implemented by Tanzania Women Traders’ Association, the project has so far witnessed more than 200 women entrepreneurs given knowledge and skills to produce quality products. TradeMark East Africa’s Country Director for Tanzania, Monica Hangi said in Dar es Salaam on Friday during TWCC’s exhibition which was also meant to congratulate women entrepreneurs who took part in the 45th Dar es Salaam International Trade Fair, at which TWCC won an award that their products are not competing in the market.
She said TradeMark East Africa’s project had the goal of helping Tanzanian women traders to do business not only locally, but cross borders by securing permanent reliable markets. “Sometimes you can find a market but you no longer have enough products to continue producing but for most their production is sustainable,” she added.
Singapore doubles Africa-focused investments (The Southern Times)
The COVID-19 pandemic had a significant impact on FDI into Africa as flows to the continent declined by 16 percent in 2020 to US$40 billion from US$47 billion in 2019. Cascading economic and health challenges due to the pandemic combined with low prices of energy commodities weighed heavily on foreign investment to the continent, according to UNCTAD’s World Investment Report 2021. However, last week’s Africa Singapore Business Forum revealed a positive side of investment activity. According to Enterprise Singapore (ESG), over the last five years the number of projects by Singapore companies in Africa doubled. Many of these projects were in the information communication media (ICM), urban infrastructure and food sectors. In 2020, despite the pandemic, Enterprise Singapore facilitated 20 percent more projects by Singapore companies in Africa compared to 2019.
The role of fiscal decentralization in promoting effective domestic resource mobilization in Africa (Brookings)
The lingering economic impact of the COVID-19 pandemic is disrupting sub-Saharan Africa’s traditional financial inflows, revealing the heightened need to strengthen domestic resource mobilization and improve tax administration in the region. This unprecedented shock to the world economy has revealed the volatility of financial inflows that African nations are dependent on: Indeed, foreign direct investment (FDI)—an increasingly important source of development financing traditionally rooted in oil, gas, and infrastructure projects—has declined approximately 12 percent and 25 percent in sub-Saharan and North Africa, respectively, between 2019 and 2020. Remittance inflows, which millions of African households rely on to support their families, declined by 12.5 percent throughout sub-Saharan Africa over the same period. In addition, discontent with globalization, inconsistent political environments, and competing humanitarian issues are transforming official development assistance (ODA) into an increasingly uncertain source of development financing.
Global
The G20's COVID Agenda by Jeffrey Frankel (Project Syndicate)
Finance ministers, central bank governors, and political leaders are hard at work preparing for the 2021 G20 Heads of State and Government Summit in Rome on October 30-31. With the COVID-19 pandemic stretching well into its second year, the meeting will come at a time of heightened uncertainty about public health and the global economy. And though the mechanisms of international cooperation have been weakened by the pandemic and remain bruised by former US President Donald Trump’s legacy, they are more important than ever. “Cooperation” need not refer to international coordination of national monetary or fiscal policies. For the most part, countries on their own can move those levers in whatever direction is best for them. Instead, the G20 should focus on financial stability, trade, and vaccination. This is in addition to other important areas, especially the existential issue of global climate change, which should and will receive a lot of attention.
the G20 can help to reduce the likelihood and severity of a potential emerging-market debt crisis. The Debt Service Suspension Initiative that it created during the pandemic was a good first step, but it only postponed repayment, and only one class of international creditors: governments. It is widely recognized that provisions for possible debt restructuring should be extended to cases where the international creditors are private financial institutions (or where Chinese state-backed lenders are claiming to be private). A second positive step is the new allocation of Special Drawing Rights agreed to by International Monetary Fund members this month.
Argentina, among the 20 countries with the most barriers to trade: WTO / UNCTAD (Sunday Vision)
The frequent complaints raised by importers because of the delays they are experiencing in obtaining a license for goods trying to enter the country do not respond only to the delicate balance that the government is trying to achieve in the balance of exchange and the availability of dollars, in the elections. general. There is also a correlation in the high cost of importing, which exposes local industries to out of competition, with no chance of including themselves in global value chains. On a global scale, a recent technical report showed that Argentina is among the 20 countries that put the most obstacles in the way of imports, by collecting import duties or tariffs at the border that make goods more expensive and impede their access to domestic manufacturers and consumers. According to global tariff files periodically prepared by the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (Unctad), Argentina imposes an average tariff of 13.4% on goods, with a peak of 35% in some cases. The global average is about 8.7 percent.
WTO members gear up for marathon fishing subsidy negotiations starting September (WTO)
WTO members are resuming negotiations on fisheries subsidies after the August break under an intensified programme of meetings beginning on 1 September. The chair of the negotiations, Ambassador Santiago Wills of Colombia, said the objective, as affirmed by ministers at the 15 July virtual meeting, will be to produce a clean text of fisheries subsidy rules ahead of the 12th Ministerial Conference.
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Bid to renew anti-dumping duties on bone-in chicken welcomed (IOL)
THE SOUTH African Poultry Association (Sapa) yesterday welcomed the recommendation for the renewal of anti-dumping duties on imports of bone-in chicken from the European Union.Earlier this week, Import and Export Control (Itac) recommended the renewal of anti-dumping duties on poultry imports from Germany, the Netherlands and the UK in terms of the Customs and Excise Act, 1964.Itac made an amendment to Part 1 of Schedule No 2, by the deletion as well as substitution of various items in order to maintain the anti-dumping duties on frozen bone-in portions of the species Gallus domesticus originating or imported from these countries.The imports regulatory body found that dumping by the three countries had continued in spite of anti-dumping duties of between 3.86 and 73.33 percent imposed in 2015.
“The poultry industry faces the prospect of renewed dumping, with damage to the local industry, slower transformation and a loss of jobs if the duties are not renewed,” Breitenbach said. “This would be disastrous, with loss of revenue, profits and market share when the industry was already under severe pressure.”
South Africa’s largest retailer reports growth – despite liquor trade setbacks (BusinessTech)
South Africa’s largest food retailer, Shoprite, says that its liquor business was severely impacted by Covid-19 lockdown regulations, being unable to trade for 144 days over the past financial year. Despite this setback, the Shoprite Group increased total merchandise sales from continuing operations by 8.1% to approximately R168 billion for the 53 weeks ended 4 July 2021.
“Growth was significantly impacted by the mandated liquor trade closures forming part of Covid-19 lockdown regulations. In total, our LiquorShop business was closed for 144 days over the 53 weeks – 79 days during the first half and 65 days during the second half,” it said.
SA is dancing the tango at the ballet with its localisation plan (BusinessLIVE)
SA’s localisation plan, which intends to reduce imports at least 20% to promote local content on the expectation of netting the country an estimated R200bn, is distressing news for the AfCFTA. It is a plan forged under pressure to produce a strategy for economic recovery, and ignores the implications for one of the most historically significant global trade agreements of our time. This merits a range of sober questions which discussions of the plan must carefully examine and address.
Transforming the N3 freight corridor (SAnews)
Gauteng MEC for Public Transport and Roads Infrastructure, Jacob Mamabolo, has emphasised the importance of securing the N3 as a Smart Freight Corridor. “While this initiative is still at its early stage, our success to secure the N3 as a Smart Freight Corridor will serve as a benchmark and a standard for replication and expansion to other corridors,” the MEC said on Thursday.
The MEC joined the workshop under the theme, ‘Securing and Restoring the N3 as a Smart Freight Mobility Corridor’, as envisaged in the Growing Gauteng Together Through Smart Mobility Plan. The plan looks at taking advantage of the province’s current standing as a gateway to Africa in order to position it as the freight and logistics hub for the country and the continent.
Supported by IFC, Kenya Launches Web Portal to Boost Investment in Special Economic Zones (IFC)
With support from IFC, Kenya’s Special Economic Zones (SEZ) Authority today launched a one-stop-shop web portal to boost communication, transparency, and service provision for current and potential investors in special economic zones, a pillar of the country’s industrial policy. The web portal, found at www.sezauthority.go.ke, will help the SEZ Authority adapt its investor outreach, retention, and after-care strategies to an interactive online platform, supporting investment, growth, and job creation in Kenya. SEZs are demarcated areas with unique rules of business. They provide private firms with quality, cost-effective, reliable infrastructure, efficient customs services, regulatory predictability, and even fiscal incentives. Kenya has about ten SEZs. Through SEZs, Kenya aims to boost competitiveness by ensuring regulatory and administrative predictability, quality industrial infrastructure, and market access.
“Special Economic Zones are a key pillar for Kenya’s industrialization agenda, value addition, and platform to leverage and catalyze private sector investment,” said Hon. Betty Maina, Cabinet Secretary, Ministry of Industrialization, Trade and Enterprise Development. “We will work hand in hand with the SEZ Authority to boost the private sector’s contribution to GDP and scale-up investment generation, especially in manufacturing.”
Somalia launches cross-border trade portal (The East African)
Somalia has set up a trade information portal to facilitate cross-border trade and provide businesses with a transparent environment. The portal, launched on Wednesday, is the government’s latest move to improve cross-border trade and facilitate Somalia’s accession to the World Trade Organisation (WTO) by complying with the WTO Trade Facilitation Agreement. Abdulkadir Sharif Shekhuna, the state minister at the Ministry of Commerce and Industry, said the portal, https://stip.gov.so/, which provides a unified source for all cross-border trade information, will lower costs and simplify trade procedures for Somali importers and exporters.
Updated: Nigeria’s GDP grows further by 5.01% in Q2 2021 (Nairametrics)
Nigeria’s Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020. This is according to the recently published GDP report, released by the National Bureau of Statistics (NBS). The steady recovery observed since the end of 2020, with the gradual return of commercial activity as well as local and international travel, accounted for the significant increase in growth performance relative to the second quarter of 2020 when nationwide restrictions took effect.
LCCI, stakeholders kick against continued export of raw products (The Guardian Nigeria)
The Lagos Chamber of Commerce and Industry (LCCI) has stated that exportation of primary products to the global community without value addition by way of processing, will not generate the desired level of foreign exchange needed to achieve economic diversification and accelerate economic growth. The president, LCCI, Mrs. Toki Mabogunje, at a seminar on Africa Continental Free Trade Agreement (AfCFTA), noted that Nigeria’s non-oil export sector is dominated by export of raw materials and primary products over the years, saying that Nigeria could generate more foreign exchange earnings if these primary products were processed into value-added commodities before exportation.
The Assistant Director, Research and Advocacy, LCCI, Sunnie Omeize-Michael, represented the president at the event. Themed, “AfCFTA: The Road Map for Exporters Successful Participation”, Mabogunje said the event was part of the public engagement series of the Chamber aimed at facilitating discussions among stakeholders on the appropriate steps towards maximum utilisation of the trade agreement.
Let localisation lead in post-pandemic recovery – agribusiness expert (Business and Financial Times)
The ongoing Coronavirus (COVID-19) induced economic crisis means that Ghana and the rest of Africa must prioritise becoming locally sufficient in key sectors such as agribusiness and manufacturing in post-recovery efforts, says Chairperson of the Association of Ghana Industries (AGI) Agribusiness Sector, Fatima Alimohamed.
Ghana, just like many other African countries, experienced a significant reduction in economic growth as GDP grew 0.4 percent last year against 6.5 percent in 2019 due to the pandemic’s impact. But Ms. Alimohamed says the key lessons from the ongoing global crisis is the glaring need for the continent’s economies to be domestically efficient in food production and manufacturing critical goods and services.
Commonwealth helps The Gambia grow and diversify exports (The Commonwealth)
This week, The Gambia with the support of The Commonwealth Secretariat launched its new five-year export strategy aimed at growing dynamic and sustainable economic growth in the country.
At a launch ceremony held on Tuesday 24th of August in Banjul, the Hon. Seedy Keita, Minister of Trade, Industry, Regional Integration and Employment for The Gambia, acknowledged the Commonwealth’s role in providing technical assistance to support the development of the strategy. “This Strategy is expected to improve the country’s trade balance and its ranking in exports. Despite the country’s small-scale production, it is envisaged that the Strategy will provide support to diversify the economy, which will improve The Gambia’s access to the international markets,” he said. The new strategy is crucial for the exports sector as currently The Gambia experiences trade deficits as imports exceed exports. In 2019 alone, The Gambia’s total export of goods amounted to 1.573 billion dalasi (GMD), while its total import of goods stood at GMD31.076 billion.
Africa
Why paytech is the key to unlocking Africa’s new free trade zone (World Economic Forum)
Optimistic, the world holds its breath for the African Continental Free Trade Agreement (AfCFTA) as it seeks to redefine African markets. It will create uniform rules to guide trade, dispute settlement, investments, competition and intellectual property rights across the continent. However, with the AfCFTA signed, implementation is the next critical hurdle. In the words of its Secretary-General Wamkele Mene: “We have completed the easiest part – that is for 55 countries to negotiate a single set of rules. The most difficult part is implementation.” Payment has always been
Access AfCFTA through Ghana (Business & Financial Times)
Government is engaging the European Union (EU) and other major economic and trade partners across the world to consider Ghana as an investment destination to access the African Continental Free Trade Area (AfCFTA), the Special Advisor on AfCFTA at the Ministry of Trade and Industry, Anthony Nyame Baafi, has said. According to him, Ghana remains the best venue on the African continent to invest due to opportunities provided by the political and economic stability enjoyed in the country.
SADC to review progress on regional gender development (sardc.net)
Ministers responsible for gender and women affairs will this week meet to review progress on the implementation of regional programmes aimed at advancing gender equality and equity in southern Africa.
According to a draft agenda, the meeting to be held in a virtual format on 26 August will deliberate on a wide range of issues including the approval of the Draft Regional Gender Based Violence (GBV) Training Guidelines and progress towards the signing of the revised SADC Protocol on Gender and Development.
The revised SADC Protocol on Gender and Development provides for the empowerment of women, elimination of discrimination and attainment of gender equality and equity through enactment of gender-responsive legislation and implementation of policies, programmes and projects.
Maritime Development Bank for West and Central Africa underway – MOWCA Chairman (GhanaWeb)
Minister for Transport, Kwaku Ofori Asiamah, who is now the Chairman of the Maritime Organisation of West and Central Africa, (MOWCA) has revealed that plans exist for the establishment of a development bank dedicated to the maritime industry of West and Central Africa to see to the financing of maritime infrastructure. He said, to improve resources available for the everyday running of the Maritime Organisation of West and Central Africa, he has begun embarking on diplomatic calls to various member countries to live up to their financial obligations to the organization.
The Chairman of MOWCA said the ultimate aim shared among the leadership of the organization is to transform this subregional organization into an arm of the African Union so as to promote the operationalization of action plans and policies.
Chinese enterprises important force boosting Africa’s development: Report (China.org.cn)
Chinese enterprises are becoming a significant force behind Africa’s development, boosting its economic development and improving people’s livelihoods in the region, said a report released Thursday by the China-Africa Business Council (CABC). With rapidly increasing investment in recent decades, Chinese enterprises have facilitated trade and investment in Africa. They have also assisted the region with the COVID-19 fight and poverty reduction, said the report on Chinese Investment in Africa. Investments by Chinese enterprises in Africa’s infrastructure, manufacturing, and agricultural processing, among others, have helped host countries accumulate foreign reserves, promote technology transfer, and eliminate supply constraints, it said.
2021 Singapore Africa Business Forum: In Africa, challenges are the opportunities despite Covid-19 (AfDB)
The global Covid-19 pandemic should not dampen investor appetite in Africa. The continent remains an investment destination of choice despite the challenges, panelists at an opening session of the 2021 Africa Singapore Business Forum heard today. Trade between Singapore and Africa has been growing steadily over the past five years, with Singapore being among the top 10 investors in Africa. More than 100 Singaporean companies are currently operating across 50 African countries in the oil and gas, consumer, digital, agri-business and trade sectors.
Talking with Tharman Shanmugaratnam, Senior Minister and Coordinating Minister for Social Policies, African Development Bank President Akinwumi A. Adesina spoke about the global recession and disruption in African markets that Covid-19 had caused. But he voiced optimism about opportunities for investment. “You cannot ignore African markets…Africa is open to investors,” Adesina said, stressing that “the challenges are the opportunities.”
The digital and industrial revolution, Africa’s new free trade area agreement and green growth were also discussed during the session, as were other sectors offering good investment potential. Shanmugaratnam highlighted small and medium-sized enterprises as an overlooked sector because of the perceived risk associated with them. “Africa is at the cusp of a connectivity revolution…it’s a huge opportunity,” he said. He gave the example of an innovative pilot platform that Singapore had signed with the Bank of Ghana, which links small and medium-sized enterprises with creditors and provides free exchange of information.
Global
Leading South African business executives recently shared their insights with the BRICS Business Forum hosted virtually by India. The purpose of the forum was to host discussions and expand relations in key areas of cooperation and develop joint recommendations for strengthening trade and economic relations within BRICS against the backdrop of pressing socio-economic difficulties that emanated as a result of COVID-19. Chairperson of the BRICS Business Council South Africa Chapter, Ms Busi Mabuza says that “the pandemic could have decimated our global food supply chains. Sub-Saharan Africa escaped catastrophic impact through a combination of two factors: good fortune in the form of better rains last year and prompt public policy responses. We are not yet out of the woods.”
“When the pandemic hit our shores in March 2020, there were legitimate fears that agricultural production would be disrupted, food insecurity would grow resulting in tens of millions more people consequently falling into extreme poverty. This fear was expressed by many including the World Bank. It’s important we contextualize this reasonable apprehension. Ours is a continent that is a net importer of agricultural and food products whilst South Africa continues to work to gain greater market access especially into China, Russia and India for our numerous high value agricultural products," she said, adding that “due to the initial uncertainty of how coronavirus was transmitted, major food exporting and importing countries (including some of our BRICS partners) understandably decided to impose bans on various food products including grain exports. South Africa also initially closed her ports,” Mabuza said.
WTO report shows food safety dominates new trade concerns (Food Safety News)
Almost half of the new trade issues discussed in a WTO committee in 2020 mentioned food safety, according to a report on the meeting. Of the 36 new specific trade concerns (STCs) raised in the World Trade Organization’s (WTO) Sanitary and Phytosanitary (SPS) Committee, 16 referred to food safety measures. More than a third were due to other areas, such as certification, inspection and approval procedures. Those remaining referred to plant and animal health. The 36 STCs is the most since 2003. An additional 17 previously raised STCs were also debated.
In the early stages of the pandemic, a few emergency measures imposed restrictions on the import, and sometimes transit, of live animals and animal products, or certain species. While a few other bans came at a later stage, most have been lifted. Many notices involved acceptance of electronic copies or scanned certificates.
Achieving graduation with momentum through the development of productive capacities (UNCTAD)
The development path a least developed country (LDC) follows to achieve the eligibility criteria for graduation has important implications for the challenges and vulnerabilities they face after graduation, as well as the means they have at their disposal to address them. The dynamics that drive LDCs to achieve graduation also impacts their performance on graduation. UNCTAD maintains that a country’s development process continues indefinitely beyond graduation, and its subsequent success critically depends on the foundations it was able to build during graduation. How graduation is achieved is thus as important as when it is achieved.
Realising the benefit of a global carbon tariff (East Asia Forum)
Taxing the carbon content of imports, if done right, can contribute to cutting global emissions and slowing climate change. The European Union has made the first such proposal, and its potential for good or for harm can be seen in relation to how it might work in Asia — the bloc’s major trading partner and a region with very high stakes on global warming. The proposal will enhance the wellbeing of people and the health of the planet if its implementation contributes to lowering the high carbon intensity of international trade in Asia. But it will turn into an economically costly project if it degenerates into a protectionist trade war between regions.
The starting point for worrying about international trade in the context of climate change is that calculations of country responsibility for global emissions usually leave out the roughly one-fifth of effluents that are embedded in traded goods. Accounting for these would be timely as the divergence between consumption and production-based emissions has been rising.
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Infrastructure remains biggest source of concern for many citizens – Hlahla (Engineering News)
While South Africa has made significant progress in improving the living standards of its citizens, Bafokeng Holding chairperson Monhla Hlahla laments that infrastructure still remains the biggest challenge for many in the country. “Infrastructure is the main source where our people see no service delivery, where our people have seen monies lost and have nothing to show for delivery. It is the main source for growing poverty and strife,” she bemoaned during her keynote address at the virtual Women in Infrastructure Summit on August 24.
Zimbabwe: Good harvest knocks imports (The herald)
Zimbabwe has started reaping the benefits of a stellar agricultural season after cereal imports, including maize, dropped to 1,9 percent in the five months to May 2021 from 9,1 percent in January, official statistics show. Statistics from May’s trade report released by the Zimbabwe National Statistical Agency (Zimstat) show that maize output for this season is projected at a record 2,7 million tonnes, about 193,1 percent up from 0,9 million tonnes produced in last season. Central bank chief Dr John Mangudya is on record saying, due to the good harvest this year the country will save hundreds of millions of US dollars that were being spent on importing cereals, particularly maize and wheat, which would now be channelled towards productive sectors.
Kenya, Tanzania set December deadline to remove trade barriers (The East African)
Kenya and Tanzania have set December as the target time when the two neighbouring countries will have resolved most of the non-tariff barriers affecting cross-border trade. The decision came out of a meeting of the Joint Commission on Cooperation (JCC).“On trade, the JCC took note of the progress made by the Joint Trade Committee in addressing 30 out of 64 challenges facing bilateral relations and urged the resolution of the remaining 34 issues before the end of December 2021,” a joint dispatch from the JCC said on Tuesday.
In June, a month after the State visit by Tanzanian President Samia Suluhu to Kenya, the committee identified 60 tariff and non-tariff barriers between the two countries. Last week, officials said there would also be preferential treatment on cement made in their territories and that Tanzania would install the Single Window System as Kenya did to enable faster clearance of goods. Further, the countries would harmonise standardisation with veterinary products becoming valid for export for up to 30 days. A permanent committee has also been established to monitor the implementation of decisions made.
Tanzania, Kenya lead the world in peer to peer crypto trade (The Citizen)
Tanzania and Kenya have emerged as leaders in peer to peer (P2P) trading of cryptocurrencies more than any other market in the world, a new report shows. Residents of other African countries are jumping at the opportunity to cushion remittances and cross-border businesses from costly transfer fees and the risks of weakening currencies. According to Quartz Africa, internet-savvy Kenyans are leading the world when it comes to using digital currency platforms where individuals trade amongst themselves, a new report shows. Chainalysis, Global Crypto adoption Index 2021 has ranked Kenya the top country in the world in terms of peer to peer exchange trade, ahead of the other 154 countries surveyed.
Traders face losses as truckers suspend South Sudan business (Business Daily)
Traders in South Sudan expect to incur huge losses as hundreds of consignment remain uncollected at the Mombasa port while others have been dumped at the customs yard at the Elegu borderpoint after transporters suspended transport to Juba citing insecurity. More than 5,000 truckers have promised to stop hauling South Sudan destined cargo from Mombasa and other port facilities until they are assured of their security. This will not only result in cargo shortage in the country but will add to cost of transportation as the delay will attract demurrage to importers. According to the Kenya Transporters Association (KTA) chief executive Dennis Ombok, disruptions to cross-border trade is likely to last through the month of September as they need assurance from both Kenyan and South Sudan governments before resuming operations.
China port chaos pressures Kenya’s import prices (Business Daily)
Congestion at Chinese ports due to a two-week partial closure of the world’s third-largest container port has triggered anxiety over fresh increases in the cost of goods imported into Kenya. Meishan terminal at Ningbo port resumed operations Wednesday after shutting down due to a Covid-19 infection case.
“The [Kenya Association of Manufacturers (KAM)] is constantly monitoring global trends on logistics matters, including possible delays and disruptions that may occur due to the sudden surge of Covid-19 cases and consequent measures to mitigate its spread,” the lobby said in e-mailed responses to Business Daily.
The situation has already forced many traders in the global supply chain to source goods from alternative costlier markets. “The pandemic has revealed the risks of overreliance on imports, including raw materials. To this end, local industries are also trying to create sustainable backward linkages in the country and regional levels, to supplement the shortage that may arise out of global logistics network,” KAM also said.
Kenya cuts Uganda sugar imports quota by 79pc (Business Daily)
Kenya has cut sugar imports from Uganda by 79 percent in a move that is likely to escalate the ongoing trade dispute between Nairobi and Kampala. The Sugar Directorate said this week that traders will only be allowed to import 18,923 tonnes of sugar from Uganda down from 90,000 that Kenya had earlier said would be shipped in from its landlocked neighbour. Kenya’s Trade Cabinet Secretary Betty Maina and her Ugandan counterpart had in April agreed that Uganda will be allowed to export 90,000 tonnes of sugar to Kenya as soon as the verification mission on the country of origin is completed. In the revised quota published this week, countries from the Southern Africa will account for the largest share of imports under the Common Market for Eastern and Southern Africa (Comesa) window.
TZ, Burundi eye trade ties (Dailynews)
Trade ties between Tanzania and Burundi are set to flourish with technical teams from the two neighbouring countries currently meeting in Dar es Salaam, laying a groundwork for enhancing business flow. The meeting is the part of the implementation of recent directives by President Samia Suluhu Hassan and her Burundian counterpart Evariste Ndayishimiye to strengthen trade relations between the East African neighbours.
The technocrats from Works and Transport Ministries from both countries began their strategic meeting yesterday, with focus on transport infrastructures, mainly to set up partnership in the use of Dar es Salaam Port and the Standard Gauge Railway (SGR). The meeting will also draft a Memorandum of Understanding (MoU) for partnership in handling Burundi-bound cargoes in Tanzania’s dry ports.
No clear timelines for US-Kenya trade deal after key meeting (The East African)
The United States remained mum on the fate of a free trade pact after US trade Chief Katherine Tai met her Kenyan counterpart Betty Maina on Monday, amid growing unease in Nairobi about the delay by Joe Biden’s administration to conclude the deal. Separate statements issued by both Kenya’s trade Cabinet Secretary Betty Maina and her US counterpart US trade Chief, Katherine Tai, after a virtual meeting did not provide any timelines for resuming the stalled talks on the deal signalling a persisting deadlock. Both Nairobi and Washington however emphasised deepening trade engagement between the two countries.
A separate statement issued by Kenya’s trade ministry however struck an optimistic tone on the future of the deal saying Nairobi remains committed to conclusion of the talks. The statement said Ms Maina had expressed “Kenya’s desire to negotiate and conclude a predictable trade
Time to Revitalize Pursuit of U.S.-Kenya Free Trade Agreement (The Heritage Foundation)
In a letter to U.S. Trade Representative Katherine Tai, seven Republican senators have underscored the importance of resuming the negotiation of a bilateral U.S.-Kenya trade agreement. The Aug. 20 letter highlighted that a free trade pact with Kenya would be “the appropriate next step in recognizing and strengthening relations, economic opportunities, and a security partnership between the United States and Kenya.”
Currently, the cornerstone of America’s economic engagement with Africa is the 21-year-old African Growth and Opportunity Act. A preferential trade program, it offers eligible sub-Saharan African countries duty-free access to the U.S. market for more than 1,800 goods until 2025.
More can and should be done to build on the African Growth and Opportunity Act and upgrade it to strengthen and broaden commercial ties with Africa. A renewed U.S. effort to promote economic freedom across Africa should also be a central part of America’s long-term mission to assist African countries. Greater economic freedom, reinforced by trade freedom, is the long-term solution to the continent’s weak health security capacities and many more of its economic and social challenges.
Nigeria’s Buhari signs long-awaited Petroleum Industry Bill (Global Trade Review)
Nigerian President Muhammadu Buhari has officially signed the country’s much-anticipated Petroleum Industry Bill (PIB) into law, following nearly two decades of attempts, revisions and false dawns. Just weeks after the country’s Senate and House of Representatives passed a harmonised version of the PIB, on July 16, President Buhari’s office has announced that it formally approved the legislation. The move comes after years of legislative effort, with Buhari himself having rejected a previous iteration of the bill in 2018 over concerns around the potential loss of ministerial power and a lack of “fiscal content”.
Invest in Africa signs MOU with Ghana Enterprises Agency to support 1000 SMEs (Myjoyonline)
Invest in Africa (IIA), a not-for-profit organisation focused on growing local Small and Medium Enterprises (SMEs) in Ghana and across Sub-Saharan Africa to deliver positive economic impact and create jobs, have signed a Memorandum of Understanding (MoU) with the Ghana Enterprises Agency (GEA). Based on synergies identified through their respective Recovery and Resilience Programmes funded by the Mastercard Foundation, both organisations are collaborating to strengthen the resilience of local businesses and young entrepreneurs.
The GEA is an agency under the Ministry of Trade and Industry (MoTI) mandated to promote and develop the MSME Sector in Ghana. Since the COVID 19 pandemic, the GEA has focused on supporting local businesses as they navigate challenges resulting from the Pandemic and begin preparing for opportunities created by the African Continental Free Trade Agreement (AfCFTA).
Africa
How trade restrictions meant to curb Covid-19 have hit Africa’s urban poor (The Citizen)
Trade routes have been significantly disrupted this year in efforts to contain Covid-19. The effects of this are already showing: global growth is set to contract by 4.9 percent and growth in sub-Saharan Africa will contract by 3.2 percent. This will get worse if continued restrictions further impede trade. The World Trade Organisation has warned that at worst, global trade could collapse by a third this year, and at best, it will contract by 13 percent, similar to the recorded drop after the 2009 financial crisis. In the current economic climate, trade is not a luxury that can be temporarily avoided. In Africa, there’s a growing body of evidence showing that firms – from large to very small – have been severely affected by restrictions in the movement of goods and people. For many this means not only losing a livelihood, but a direct impact on their ability to meet basic needs.
EAC member states in pilot project for cross-border Comesa digital payments (The East African)
Comesa is recommending adoption of a digital payment system that supersedes similar systems adopted in the bloc to avoid disputes arising from overlapping systems. Plans are ongoing to introduce the payments platform for informal cross-border trade in the Comesa bloc, with EAC members Tanzania, Kenya, Uganda and Rwanda on board. A public-private partnership dialogue is underway to discuss a draft model policy for the Comesa platform and specifically designed to benefit micro, small and medium-sized enterprises (MSMEs) under the bloc’s Digital Financial Inclusion Project. The aim of the platform will be to further integrate informal traders into formal markets through better access to digital finance systems which are fast becoming the global norm.
Govt’s bid to host East African Monetary Institute progressing (New Vision)
Uganda is currently in the process of bidding to host the East African Monetary Institute (EAMI), as a precursor to hosting the East African Central Bank. Dr Chris Baryomunsi the minister of ICT and National Guidance on Tuesday revealed that Government had made progress saying the loci of EAMI would become a central hub of crucial economic activities with significant multiplier effects. “This will boost economic activities by offering business opportunities to local entrepreneurs in hotels and restaurants, transport, trade, ICT, financial services and tourism in addition to providing lucrative business for the national carrier-Uganda Airlines,” Baryomunsi said.
The East African Monetary Institute (EAMI) is one of the four institutions expected to carry out much of the preparatory work for the creation of the East African Monetary Union. The other three institutions are the: East African Community (EAC) Financial Services Commission; EAC Surveillance, Compliance and Enforcement Commission, and; EAC Statistics Commission. It is anticipated that the Monetary Union, the third pillar in the EAC Integration, will be in place in 2024 with the introduction of a common currency and the establishment of a regional central bank.
Private Sector called to drive the single currency discourse (UNECA)
The two-day roundtable on Single Currency and Fintech to boost Intra-African trade concluded today with calls for greater engagement and commitment of the private sector for achieving continental monetary union. Participants argued that although Governments and the business community should be equal stakeholders in trade matters, the sheer gap in communication between the two often becomes a formidable barrier to mutual understanding and effectiveness. The establishment of a credible mechanism for effective State-business relations is therefore needed to unlock private sector potential, and enhance prospects for a Single Currency. In this regard, the private sector on its part was called to explore an innovative approach to economic development that is specific to Africa, notably in terms of investing in strategic areas that will have a real impact on job creation and poverty reduction.
Africa Eyes Monetary Union in a Bid to Boost AfCFTA Implementation (UNECA)
Adoption of a single currency within the framework of the African Continental Free Trade Area (AfCFTA) dominated presentations at a two-day roundtable to deliberate on the Single Currency and build awareness of the potential role of FinTech in boosting intra-African trade.
Mr. David Luke, Professor in Practice and Strategic Director of Firoz Lalji Institute for Africa at the London School of Economics and former Coordinator of the African Trade Policy Centre of ECA opined that the AfreximBank initiative, which is known as the Pan-African Payment and Settlement System (or PAPSS) is an optimal policy response. “The PAPSS aims to establish a clearinghouse payment platform that utilizes national currencies. In view of the systemic risks of a single currency, an effective clearinghouse system with room for innovation by utilizing FinTech solutions is a viable alternative.”
Mr. Jean-Denis Gabikini, Acting Director of Economic Affairs of the African Union Commission said: “The AU is developing a payment and settlement platform to facilitate payments between African countries without having to recourse to a third currency, such as the euro or the dollar.”
Regional institution to enhance capacity in energy sector (The Star, Kenya)
An institution that will help enhance sustainable capacity in the energy sector in the East African region will be built in Arusha, Tanzania. The Energy Regulators Association of East Africa (EREA) Executive Secretary is spearheading the project that will cost between $12 million (Sh1.3billion) and $15 million (Sh1.6billion). EREA Chief Executive Officer Geoffrey Aori said the member states are in support of the project and implementation will start within the next one year. “The project will help us enhance skills and knowledge and competencies critical for regional policy harmonization and integration processes,” Mabea said. The establishment of this institution, the first of its kind in Africa has received overwhelming support from the governments from various quarters in Africa. “For increased operational efficiency to achieve the EAC’s policy harmonization agenda there is a need to develop highly skilled staff to provide services in the highly specialized field,” Mabea said.
International trade with Africa
Ramaphosa arrives in Germany for Africa investment talks (The South African)
South African President Cyril Ramaphosa has arrived in Germany to attend a G20 Compact with Africa (CwA) investment summit meeting in Berlin on 26 and 27 August. Ramaphosa arrived in Berlin on Thursday to attend the two day summit, the presidency said in a statement. The G20 Compact with Africa (CwA) was initiated under the G20 German Presidency in 2017 to promote private investment into the African continent.
South Africa, which is a member of the G20, co-chairs the initiative alongside Germany. “The Berlin meetings will include a G20 Investment Summit, as well as a separate meeting of Heads of State and Heads of Government, where discussions will take place on ways in which to improve the business environment and increase investment in Africa,” the presidency said. The conference will also discuss vaccine production in Africa, which is key to enabling African countries to build back stronger, faster and more inclusively, and ensuring that the post-pandemic African economies become more resilient and equitable.
Charting Africa’s digital future (NewsDay)
According to McKinsey and Company, the COVID-19 crisis “contains the seeds of a large-scale reimagination of Africa’s economic structure, service delivery systems and social contract. The crisis is accelerating trends such as digitalisation, market consolidation and regional co-operation, and is creating new opportunities – for example, the promotion of local industry, the formalisation of small businesses and the upgrading of urban infrastructure.”
Africa faces a myriad of challenges from healthcare, food security, education and energy. There is also a digital divide across the continent. The only way to address these challenges and to recover from the COVID-19 pandemic is for policy-makers to embrace and harness innovation and the potential brought by digital technologies.
China in Africa: The Role of Trade, Investments, and Loans Amidst Shifting Geopolitical Ambitions (Observer Research Foundation)
Chinese influence in Africa is high on the global agenda, as China within just a few decades has become a key political and economic power in the continent. Indeed, its emergence as a dominant economic and political actor might be the most important development in Africa since the end of the Cold War. This paper analyses China's economic and political relations with Africa beginning in the 1990s when China first pondered a “grander strategy” for Africa. It argues that the concern is not that China has expanded its economic and political presence in the African continent; rather, that the other stakeholders have ignored it for long.
China seeks to expand influence in Africa with more digital projects (South China Morning Post)
China said it would step up digital cooperation and investments in Africa, as Beijing seeks to deepen its influence on the continent alongside its pledges for trade, infrastructure and Covid-19 vaccines. At a time when the US is also seeking to reinvigorate its trade and investment with Africa, assistant foreign minister Deng Li told a virtual forum on Tuesday that China would boost its partnership with African nations in areas such as the digital economy, smart cities and 5G networks. “China will share the achievements of digital technology with Africa to promote interconnectivity of digital infrastructure,” he said. “China’s initiatives will never just remain a vision on paper, and [we] will work with Africa to formulate and implement the China-Africa digital innovation partnership plan to achieve results as soon as possible.”
Brexit is good news for Africa (The Spectator)
Few who voted for Brexit were actually racists, much as those opposed to the project would like to have you believe. There were probably as many reasons as the 17.4 million people who voted to leave the EU.
Even the EU’s supporters accept that the Common Agricultural Policy is a disaster for its southern neighbour. The programme sees unwanted European produce dumped on Africa – forcing down profits for the continent’s farmers – while blocking imports, again weakening the economic viability of African agriculture. No wonder Tanzania and several other African countries have repeatedly refused to sign a new Economic Partnership Agreement with the European Union. It was heartening therefore to see the new Prime Minister Boris Johnson organise the first UK-Africa investment summit in London last year, just a few weeks after the election.
Global Business Forum Africa 2021 to highlight trade potential (Khaleej Times)
Dubai’s growing appeal as a strategic hub for African companies that are keen to expand their global reach and tap into new trade opportunities will be a main focus of discussions at the 6th Global Business Forum Africa, which descends on Dubai October 13 and 14, 2021. Dubai Chamber of Commerce and Industry (Dubai Chamber) has announced the agenda for the Global Business Forum (GBF) Africa 2021 – the first of its programme of activities that it is running as the Official Business Integration Partner of Expo 2020 Dubai. Bearing the theme Transformation Through Trade, GBF Africa 2021 will turn its attention to explore an array of challenges and opportunities across the continent that have emerged in the wake of Covid 19 and the African Continental Free Trade Area (AfCFTA), while putting the spotlight on Dubai as a preferred gateway connecting African countries to promising markets in various regions of the world.
Global
Okonjo-Iweala urges developed economies to support African countries with IMF’s SDR allocations (Premium Times Nigeria)
The Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, on Tuesday asked developed countries to channel their shares of the International Monetary Fund (IMF) Special Drawing Rights (SDRs) to poor African countries. The IMF announced on Monday that its new allocation of Special Drawing Rights SDRs was equivalent to $650 billion. The largest SDR in the IMF’s history comes into effect in an effort to help countries recover from the COVID-19 pandemic, the IMF noted. “The SDR allocation will provide additional liquidity to the global economic system supplementing countries’ foreign exchange reserves.”
SDR is an international reserve asset created by the United Nations specialised agency to supplement its member countries’ official reserves. Africa is entitled to about $33 billion, but French President Emmanuel Macron pledged during a summit of African leaders in May to urge richer nations to support an allocation of $100 billion to Africa.
IFC Invests Record $10.4 Billion for Private Sector Development in Africa and the Middle East (IFC)
IFC provided record financing in fiscal year 2021 in the Middle East and Africa to help thousands of small businesses access finance, connect people and businesses to reliable digital infrastructure, trade and services, and help to meet critical health needs amid the COVID-19 pandemic. The financing reached $10.4 billion. IFC’s financing included short-term finance ($2.9 billion) and mobilization ($4.2 billion), with 70 percent of IFC’s own account financing going to low-income and fragile and conflict affected states. In sub-Saharan Africa, where country leaders have called for greater support for vaccine manufacturing in the region, IFC committed $8.7 billion in investments Under the Global Trade Finance Program (GTFP), the largest ever annual commitment in the region, with the financing going to attract private investment in regional vaccine manufacturers, greater access for small businesses to life-saving medical equipment, and to climate-smart development projects and digital connectivity.
Embracing a new conceptual framework for the statistical measurement of illicit financial flows (UNCTAD)
Economic Development in Africa Report 2020: Tackling Illicit Financial Flows for Sustainable Development in Africa argues that tackling illicit financial flows is essential in order for countries in Africa to strengthen domestic resource mobilization, boost hard and soft infrastructure investment and achieve the Sustainable Development Goals. Illicit financial flows from Africa are large and growing: in 2010–2018, Africa lost at least $220 billion linked to the export of extractive resources, compared with $40 billion in 2000–2009. The lack of internationally comparable data and conceptual clarity as to what constitutes illicit financial flows and how to measure them have been major challenges in designing policies to curb such flows. This policy brief examines illicit financial flows linked to the export of extractive resources from Africa. It highlights opportunities to curb illicit financial flows using improved methodologies for customs fraud detection and to enhance resource governance with regard to metals that will be in high demand for the battery-storage technology needed in the transition to a low-carbon future.
Science, Technology and Innovation: Mapping the Donor and Investment Landscape in Africa (GOV.UK)
The United Nations Sustainable Development Goals (SDGs) were launched in 2015 with the aim to end global poverty and ensure long term sustainability of the planet. As a part of the Agenda 2030, advancing Science, Technology and Innovation (ST&I) has been recognised as one of the key strategies to achieve the global goals by 2030. Yet, prior to the global pandemic, the world was not on track to achieve the UN SDGs and the advent of COVID-19 has only exacerbated this problem by increasing inequalities, decreasing food security and causing large-scale loss of employment and livelihoods. Much like the rest of the world, Sub-Saharan African (SSA) countries are struggling to meet their SDG targets, with an annual requirement of USD 500 billion to USD 1.2 trillion in SDG financing. Consisting of 33 of the Least Developed Countries, SSA continues to rely heavily on funding from Development Finance Institutions (DFIs), multilaterals and philanthropic organizations for economic growth.
Given the urgent need for innovation and technology to address critical gaps in sustainable development, especially to help rebuild economies in the pandemic era, this report provides a timely benchmark to understand the effectiveness of capital financing flows in the Science, Technology and Innovation (ST&I) sector within South Africa, Kenya, Nigeria, Uganda, Ethiopia and Rwanda, with the aim to identify critical gaps across the spectrum of financing, and recommendations on different avenues for partnership and private sector participation.
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National
New transport initiative aims to empower almost a thousand women (Engineering News)
A new initiative championed by the Commercial Transport Academy (CTA) will aim to empower almost a thousand women in the transport sector. The Women Inspiring Women to Lead in Transport initiative comprises three structured programmes: CTA Excellence; Run With It; and Iron Women. Supported by the US government through the United States Agency for International Development (USAID), it will train and mentor 120 female professionals, 300 entrepreneurs and 495 truck drivers over a three-year period.
Investment board to establish retail store (The Namibian)
The Namibia Investment Promotion and Development Board (NIPDB) has set the ball rolling to establish its own branded retail store that would exclusively stock Namibian goods produced by small and medium-sized businesses. The intent is to fast track obtaining shelf space for Namibian goods, which would level the playing field with other goods, the board confirmed last week. Dino Ballotti, executive member of the NIPDB, last week said the store would be set up by at least the end of this year, if not in the first or second quarter of 2022.
Kenya, Tanzania Hold Talks On Improving Relations (Kenya News Agency)
Kenya and the neighbouring Tanzania have continued having talks on how to better their relations for the benefit of their citizens. Ministry of Foreign Affairs Principal Secretary (PS) Amb. Macharia Kamau said that the two countries are in agreement on the need to straighten issues which have been hampering smooth relations and in return hurting the local business communities. Speaking Monday at a Nairobi hotel during a Joint Commission for Cooperation (JCC) meeting between the Principal Secretaries of both countries and their delegations, Amb. Kamau said that they are looking forward to signing a Memorandum of Understanding (MoU) at the end of the deliberations.
Kenya eyes duty-free access to South Korea market (The Star, Kenya)
Kenya is engaging South Korea for a trade deal that will see reduction or complete removal of duty on exports to the Asian country. Targeted is coffee, the current leading export alongside tea, mate and spices, which attract an eight per cent duty. Trade, Industrialization and Enterprise Development CS Betty Maina said the duty disadvantages Kenya’s exports, which compete with Least Developed Countries (LDCS) that enjoy duty-free access. “Kenya has renewed the cordial bi-lateral relations with South Korea which will now facilitate for negotiation of tariffs reduction especially on our coffee. It is a conversation we have started with the Korean government,” CS Maina told a media briefing in Nairobi, yesterday. The two countries have also agreed to fast-track pending issues on market access of Kenyan produce including fresh avocados into the South Korean market with a solution expected before year end.
Kenya, US to resume trade relations talks (The Star, Kenya)
Kenya is seeking to negotiate and conclude a trade arrangement with the USA. In a statement on Tuesday, Industrialisation and Trade CS Betty Maina said representatives have agreed to deepen trade engagement to promote the interests of the two countries. According to the CS, Ambassador Tai observed that the US was interested in an approach to trade policy that fits in the overall Biden-Harris Administration’s ‘Build Back Better’ and work-centric trade policy. On her part, CS Maina expressed Kenya’s desire to conclude a trade arrangement that gives confidence to investors while safeguarding the country’s commitments under its regional, continental and multilateral trade agreements. This comes a few weeks after Kenya and the United Kingdom agreed to use blockchain tech to free up trade logistics.
Most Kenya sugar imports to come from Eswatini, Zambia (Business Daily)
Shipments from Eswatini, Zambia, and Mauritius will dominate Kenya’s duty-free sugar imports from the Common Market for Eastern and Southern Africa (Comesa) this year to bridge a local deficit in production, a report shows. Supplies from the three countries will account for 69.5 percent of the overall 210,163 tonnes of the commodity that Kenya targets to import from Comesa. The largest consignment of duty-free sugar into Kenya will be sourced from Eswatini (68,959 tonnes) followed by Zambia at 41,152 and Mauritius bringing in 36,036. In East Africa, traders will be allowed to import 18,923 tonnes of the commodity from Uganda, Rwanda (4,072), and Burundi 0.27 tonnes. The Ministry of Agriculture in the new quota rules for each country will see millers allowed to import only 210,163 tonnes of the commodity this year from the usual 350,000 tonnes that the country is normally allocated under the Comesa window.
Kenyan transporters suspend ferrying cargo to Juba over attacks (The East African)
Kenyan truck drivers have suspended transporting cargo to South Sudan after two drivers were killed just 45 kilometres from Juba on Sunday evening. Five trucks were attacked by unknown people at about 5.30pm and two Kenyans were killed while drivers of three other trucks had to flee for their lives. The group said the continual attacks on their drivers and vandalism of their trucks is taking a toll as many lives have been lost and members have also lost their vehicles and goods. Kenya Transporters Association (KTA) Chief Executive Officer Dennis Ombok said two Kenyans and a Ugandan driver had not been traced by Monday morning. But their trucks had been vandalised, he added.
Uganda’s monthly commodity export earnings fall to Shs1.5t in June (Daily Monitor)
Uganda’s foreign earnings from commodity exports in the international market fell in the month of June 2021 due to a decline in export receipts from some commodities. In the monthly economic performance July report seen by Daily Monitor, the Ministry of Finance, Planning and Economic Development in comparison to the previous month said export receipts declined by 3.9 per cent from $469.98 million (Shs1.661 trillion in May 2021 to $451.72 million (Shs1.597 trillion) in June 2021. “This performance was attributed to lower export receipts of commodities like mineral products, tea, tobacco and maize,” said the Ministry of Finance, Planning and Economic Development.
Adebayo Wants Financial System Broadened to Aid Sustainable Growth (THISDAYLIVE)
The Minister of Industry, Trade and Investment, Mr. Adeniyi Adebayo has said that the financial system should be broadened and deepened to sustain the growth of the economy. The minister at the 2021 national workshop of the Chartered Institute of Stockbrokers (CIS) in Abuja, stressed that the financial sector was central to an economic growth. He also said that the implementation of the Africa Continental Free Trade Area Agreement (AfCFTA) will enhance the continent’s capacity to unlock growth and create jobs by building the nation’s industrial capacity, enlarging its productivity as well as becoming competitive globally. “As the economy grows, the financial services sector needs to keep pace with changing industry demands, especially in terms of assessing the prospects for risk and return. Sustainable growth of the economy needs to be underpinned by a broadening and deepening of the financial system, capable of serving the needs of all parts of the economy.”
Ghana commended for role in Africa (BusinessGhana)
The outgoing Egyptian Ambassador to Ghana, Mr Emad Magdy Hanna, has said that Ghana’s good foreign policy makes the country a leader in African affairs with credible global standing. These, he explained, were evident in Ghana becoming the hub of international conferences, including the hosting of the ACFTA Secretariat and the election of President Nana Addo Dankwa Akufo-Addo as a two-term Chairman of ECOWAS. According to Mr Hanna, the onset of the pandemic did not affect the growing relationship between Ghana and Egypt since they continued to engage in virtual meetings, visits and other progressive engagements and agreements and said such efforts would soon yield the needed results. He said the two countries had reached a trade balance of $100 million, and that was expected to increase to about $150 million soon.
AfCFTA: Nigerian Industries Need Investment Friendly Environment to Thrive (THISDAYLIVE)
The President of the African Export and Import Bank (Afreximbank), Professor Benedict Okey Aramah, is an incurable optimist that the African Continental Free Trade Agreement (AfCFTA) has the possibility to spur industrialisation in Africa and Nigeria in particular.
“Despite the challenges of the past, the future of manufacturing in Nigeria looks bright. The coming into force of the AfCFTA opens the wider African market for Nigerian manufacturer. The preferences that AfCFTA offers can make Nigerian manufactured goods more competitive in many African markets and can also make it possible for integration into regional and global supply chains. “The rising middle class in Nigeria and Africa and the rapid urbanisation will expand demand for manufactured goods. It is the manufacturing industry that will supply these items.
He said: “The AfCFTA will build our capacity to manufacture and change the narrative of African economy and give Africa a stronger voice and positioning in the global economy as we go on. He, however, noted that success of the industrial sector would depend much on the federal government coming up with right policies that would attract investments into the country’s manufacturing sector as well as the willingness of the African governments to enforce the free trade area’s agreement favourablly to checkmate dumping.
Know about major trade agreements linking Egypt with Africa (EgyptToday)
As Egypt always seeks to create more cooperation and trade interdependence with other countries in the African continent, there are a number of economic and trade agreements that plays this role. Egypt has a number of trade agreements that link it with 55 African states, aiming to increase economic cooperation. Cairo currently working to finish the linkage between the northern tip of the continent with the southern top through several projects, atop of which is a road between Cairo and Cape Town, South Africa’s capital city. This road to facilitate the transfer of goods and products between African countries, which was one of the biggest obstacles facing businessmen, importers and exporters.
Sudan, South Sudan to reopen borders after 11 years (The East African)
Sudan and South Sudan have agreed to open their borders after 11 years. This was announced after a meeting between South Sudan’s President Salva Kiir and Sudan’s Prime Minister Abdalla Hamdok according to President Kiir’s office. According to a press statement seen by The EastAfrican at the weekend, the diplomatic meeting convened in Juba also resolved the re-opening of water transport. The borders were closed in 2011 when relations deteriorated after the south seceded following a long civil war, taking with it three quarters of the country’s oil.
Africa
AfCFTA should enhance bio-diversity trading: UN (The Herald)
The United Nations has called upon Africa to mainstream trade and bio-diversity to unlock wider economic potential under the African Continental Free Trade Area (AfCFTA). The continent is regarded as one of the most bio-diverse regions on earth and yet commitments negotiated so far under the landmark AfCFTA agreement barely mention the environment. This represents a missed opportunity to achieve sustainable development through trade integration in Africa, as stipulated under the Africa 2063 Agenda, says a new United Nations Conference of Trade and Development (UNCTAD) study entitled “Implications of the African Continental Free Trade Area for Trade and Biodiversity: Policy and Regulatory Recommendations.”
EAC tourism sector lost $4.8b, 2m jobs (The East African)
The East African region lost more than $4.8 billion and two million jobs in the tourism sector in 2020 due to the pandemic, according to a new report. The August report titled “EABC Studies on Impact of Covid-19 on Selected Sectors: Tourism & Hospitality Industry; Light Manufacturing Sector and Agriculture & Food Security” found that 4.2 million foreign tourists were not able to travel to their preferred East African Community destinations. The impact has also been felt across affiliated industries and other sectors of the economy. Tourism is one of the leading foreign-exchange earners and fastest-growing sectors in the EAC.
Three Paths to Accelerating Digital Access in West and Central Africa (World Bank)
Just before the coronavirus (COVID-19) pandemic struck, just over half of the world’s population approximately (51%) had access to the internet compared with just 30% in Western and Central Africa. With the strict lockdown implemented during the pandemic, many services were only available to people across the region through the internet. Ever since, the need for universal, affordable, and safe high-speed connectivity has increased exponentially. West African countries will not be left behind and will need to deepen reforms and attract the necessary investments for increased digitalization of services, an essential condition for strong, resilient, green economic growth and quality job creation. The stakes are therefore high and the region is showing tremendous potential and opportunities. Although the challenges are not to be underestimated, this potential allows us to hope that West and Central Africa will accelerate the digitalization of its economy. What will it take? Three important steps:
How can more micro-enterprises adopt e-commerce platforms? (The New Times)
There is a need to subsidize the cost required for Micro, Small and Medium Enterprises (MSMEs) to be on e-marketplace, players in the ICT sector have made the case. According to an assessment by the ministry of ICT, currently, there are 186,396 Micro, Small and Medium Enterprises (MSMEs) registered in Rwanda, but less than one per cent of them are running their business through e-commerce platforms due to some challenges crossing the e-commerce value chain. The assessment shows that some of these challenges range from the high cost for Merchant Discount Rate (MDR), high cost of delivery, the low level of digital and financial literacy, and many other issues. Consolata Nakure, the E-commerce projects lead at ICT Chamber said that there is a pilot project that has been going on for six months to stimulate e-commerce adoption.
2021 SAAFF Summit programme announced (Bizcommunity)
The South African Association of Freight Forwarders (SAAFF) has announced details of the programme line-up for its virtual Summit, taking place from 16-17 September. The SAAFF Summit is one of the most comprehensive and influential online business platforms for the freight forwarding, logistics and supply chain sectors in Southern Africa. “The freight forwarding and supply chain industries have been through a series of intense disruptions and challenges over the past year,” says Dave Logan, SAAFF’s chief executive officer. “The SAAFF Summit provides a valuable opportunity for the industry to re-connect, gain new perspectives an
How to put women firmly at the centre of Africa’s food systems (The Citizen)
The number of hungry people in the world grew by a staggering 161 million people in 2020 to 811 million. More than one third of these people live in Africa. One of the main reasons for this increase is the COVID-19 pandemic, coupled with the cost of healthy diets and high levels of income inequality. More concerted efforts are needed to address the problem of food security. Empowering women is often said to be the key. In the past, researchers have looked to their specific disciplines to suggest how women could be empowered to improve food security.
The need for developing new EU-African agricultural trade policies (Farmers Review Africa)
Agriculture is one of the most critical industries globally, and it’s one of the essential industries in Africa. It accounts for many jobs and keeps the economy going in African countries. Without agriculture, the continent would not compete with other countries, and many people would be without an income. Fortunately, there are opportunities for trade between other countries that can help promote the agricultural industry in Africa. One of those trading partners is the European Union (EU). Even though they have this partner, the trade policies need to be updated and further developed for African farmers to continue working in the agricultural industry. The need for developing new EU-African agricultural trade policies is ever-pressing.
One solution to the trade policies is for African countries to switch to cash crops rather than continue with subsistence crops. Africa has potential for products like cotton, tobacco, avocados, coffee, milk, peanuts and mangoes. Europe is an important market for these products, and Africa has the availability to grow them. Those kinds of crops, if exported from Kenya, are not taxed in Europe.
Global
International trade statistics: trends in second quarter 2021 (OECD)
The second quarter of 2021 saw international merchandise trade for the G20, as measured in seasonally adjusted current US dollars, reach a new high following the record levels already posted in Q1 2021. G20 merchandise exports and imports increased by 4.1% and 6.4% in Q2 2021 compared to the previous quarter, showing a slowdown compared with the rates posted in Q1 2021 (8.6% and 8.5% for exports and imports, respectively). Q2 2021 growth in services exports and imports for the G20 aggregate is estimated (based on preliminary information available for a subset of the G20 economies) at around 4.5% and 4.0%, respectively, compared to the previous quarter and measured in seasonally adjusted US dollars. This compares to the slower rate recorded in Q1 (2.9% for exports and imports).
Waiver of IP Protections for COVID-19 Vaccines Still Under Consideration at WTO (Lexology)
Surprising very few, the intensive discussions at the World Trade Organization (WTO) over specific text for a proposed waiver of intellectual property (IP) protections for COVID-19 vaccines, and possibly other related technologies, came to a pause in late July with no notable progress being made.
The original proposal put forth by India and South Africa in October of last year called for the waiver of obligations under Sections 1 (Copyright and Related Rights), 4 (Industrial Designs), 5 (Patents), and 7 (Protection of Undisclosed Information) of The Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement) to enforce intellection property protections in relation to “prevention, containment, or treatment of COVID-19” for a to-be-determined number of years. The proposal has since been updated to specify a duration of at least 3 years, although critics worry that a waiver without a definitive expiration could require consensus to terminate, potentially leaving the temporary nature of the provisions in limbo.
Hectic parleys to start from Sept 1 in WTO to conclude negotiations on fisheries subsidies pact (Business Today)
Hectic parleys will begin from September 1 among members of the World Trade Organization (WTO) in Geneva to iron out differences on a proposed agreement on fisheries subsidies, an official said. The aim is to conclude the negotiations soon so that the member countries can finalise the text on the pact before the 12th ministerial conference, to be held in Geneva from November 30, the official added. “The objective is to finalise a fully-agreed clean text, ahead of 12th ministerial conference,” the official said. The agreement is aimed at disciplining subsidies with the overall objective to have sustainable fishing, eliminate IUU (illegal, unreported and unregulated) fishing subsidies and prohibit subsidies contributing to overcapacity and overfishing.
GVCs for LDCs: How would new plan boost trade for least developed countries? (Trade for Development News)
GVCs for LDCs would offer additional and untapped potential not only for greater participation of LDCs in global trade but also for those exporters that incorporate LDC value-added in their products. Instead of preferential schemes based on ‘direct’ LDC exports, under the new GVCs for LDCs initiative, WTO members would offer duty-free access to LDC value-added that ‘travels’ inside finished products exported worldwide by any other WTO member.
Opinion: 4 ways to promote vaccine equity through trade (Devex)
Vaccine inequity is one of the most striking – but solvable – challenges of the COVID-19 pandemic. It also provides a wake-up call for what can happen when so-called least-developed countries, or LDCs, are not able to participate fully in global trading systems. By supporting programs such as COVAX, advancing trade facilitation efforts, and directing more aid toward trade initiatives such as Aid for Trade, the global community can help right this imbalance.
New guide to shape trade policy agendas for women (ITC)
A new International Trade Centre (ITC) report shows policymakers how to unlock markets for women through inclusive trade policies. From Design to Evaluation: Making Trade Policy Work for Women is the latest in a series of ITC trade policy publications focusing on women. Policymakers can use the guide to create inclusive policies in trade, industry or small business institutions. It outlines steps to use data that spot opportunities in value chains, engage partners, carry out policies and monitor their impact.
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National
SA agri posts trade surplus in Q2 despite ongoing Covid challenges (Bizcommunity)
The results of both the first and second quarter of 2021 agriculture export performance reflects the resilience of the sector despite the ongoing Covid-19 related challenges across the globe.
The agriculture sector was able to operate during the various lockdown periods due to it being considered an essential service. Weather also came to the party and allowed for an excellent agriculture season which saw record crops across most commodities with the grain and oilseed crop topping 17.07m tonnes which is almost 2% higher year-on-year. Despite logistical challenges, the sector managed to move hefty quantity of produce to the rest of the world with the second quarter of 2021 recording a trade surplus of US$1.5m which is 40% ahead of the same period in 2020. The follows a 36% year-on-year spike in total agriculture exports in quarter two of 2021 at US$3.2bn, bringing the total 1H2021 export value to US$6.1bn which is 30% higher year-on-year.
South Africa looks to private sector to upgrade ageing logistics infrastructure (The National)
Moving goods around Africa is notoriously difficult. Potholed roads, shakedowns at paramilitary checkpoints and weeks spent at border posts are only some of the challenges freight companies face. For those willing to brave the conditions, however, returns can be lucrative. The continent imported around $560 billion in goods in 2019, according to the United Nations Conference on Trade and Development, the global trade and development body. African countries also bought $69bn worth of goods from each other in the same year. The planned acquisition of South African freight company Imperial Logistics by the UAE’s DP World, announced in July, is a logical tie-up between two specialist operators. DP World specialises in global port operations, trade parks and maritime services. Imperial, on the other hand, has moved from global logistics operations to near-exclusive focus on moving goods around Africa. “The combination is complimentary,” Imperial chief executive Mohammed Akoojee says of the $890 million deal. “It will certainly bring down the cost of logistics in Africa, which is very much needed.”
Road transport costs in Africa are almost twice that of South-East Asia, according to the London-based International Growth Centre. For the 16 landlocked African countries it is even worse, as freight costs are three to four times higher than in developed countries.
Regulatory certainty needed for dope exports to gain momentum (IOL)
THE fast-growing cannabis industry in South Africa needs better regulatory clarity with the respective government departments able to talk to each other for it to dominate the potential R56 billion a year potential by 2025. Managing director Mark Corbett said the co-ordination between the Departments of Trade and Industry (DTI), Agriculture and Fisheries and the South African Health Products Regulatory Authority (Sahpra) was not where it needed to be. “It makes much more sense to extract the product, but growth will be hampered by the regulatory environment.
Turmoil in global trade ‘could spur’ SA recovery (TimesLIVE)
There is still uncertainty about when SA’s growth will return to pre-Covid-19 levels, but the pandemic’s disruption of global supply chains is expected to continue, which will boost local manufacturing and potentially help speed up the country’s economic recovery. This is the view of Gary Chaplin, CEO of KAP Industrial, the diversified chemical and logistics business
Zambia’s new president a boon for mining sector reform - Sub-Sahara Mining & Industrial Journal (Sub-Sahara Mining & Industrial Journal)
Zambian opposition leader Hakainde Hichilema’s surprise win in the Aug. 16 presidential election may lead to a fresh start in the country’s relationship with the mining sector. While it was still early days, the appointment of Hichilema was “a welcome surprise for investors and miners”, UK broker Liberum analyst Ben Davis said.
Africa’s second-largest copper-producer — the metal accounts for more than 70% of the country’s export earnings — had witnessed a noticeable deterioration in its mining investment climate during Lungu’s second term in office, “damaging relations between miners and the government beyond repair”, the CEO of Africa-focused strategic advisory firm Africa Practice, Marcus Courage, told S&P Global Platts.
“This also resulted in lower levels of investment, lower copper production and reduced receipts for the government, in spite of a rebound in global copper prices,” Courage said.
Horticulture exporters sue to block new levy (Business Daily)
Fresh produce exporters have moved to court to stop the implementation of a 0.25 percent levy that the Horticulture Directorate is banking on for development projects including putting up a fumigation plant. The exporters, under the umbrella of Fresh Produce Consortium of Kenya, Fresh Exporters Association of Kenya and the Avocado Association of Kenya, have sued the Ministry of Agriculture, the Attorney- General and the Horticultural Directorate over what they term a rushed implementation of the levy. The exporters, however argue that there is no defined method under the Regulations for the Ministry of Agriculture and Attorney-General’s office to determine the customs value and thereby raise the amount collected in levies. “The taxable value is amorphous, ambiguous and arbitrarily imposed on the petitioners’ members for compliance, thus presenting an administrative difficulty and leaving the application of the levy open to manipulation and abuse,” said the exporters in a court filing.
Trade lobbies want immediate reopening of economy (Business Daily)
Trade associations have asked for immediate reopening of the economy and ending the Covid-19 containment measures issued by the Government to reduce the loss of livelihoods from the effects of the pandemic. The eight trade associations from across the retail, hospitality, transport creative, and entertainment sectors also backed the motion in Parliament urging the Government to concentrate on measures to revive the economy and vaccinate more people. The associations said there is confusion among business people on the orders from the President on the one hand and the Judiciary on the other on Wednesday evening.
Bill proposes tougher sugar import rules to curb glut (Business Daily)
Sugar dealers shall be required to present proof of shortage in the domestic market before importation if MPs approve changes to the law. Factories and importers will also be compelled to obtain pre-import approval from the State in new measures aimed at curbing flooding of the local market with cheap sugar. The National Assembly’s Agriculture committee has proposed further amendments to the Sugar Bill, 2019 sponsored by Kanduyi MP Wafula Wamunyinyi.
Kenya imports sugar mainly from the Common Market for Eastern and Southern Africa(Comesa) to cover for production deficits locally. According to the Sugar Directorate, imports of the commodity between January and June this year stood at 237,581 tonnes compared to 200,442 tonnes in the same period last year. The higher imports came even as local production recorded a 22 percent increase, with growth in local yields attributed to improvement in sugarcane supply to private millers The Sugar Bill, 2019 also seeks to reinstate the Sugar Act which was repealed through the enactment of the Crops Act, 2013.
Debt repayment relief saves Kenya Sh100bn (Business Daily)
Kenya saved Sh99.73 billion in deferred repayments for its external debt for the year ended June following a deal with several rich nations, lifting pressure on its thin domestic revenue collection. Fresh Treasury data shows expenditure on servicing external loans amounted to Sh234.59 billion, a drop of 29.83 percent compared to Sh334.32 billion that had initially been budgeted for.This is attributed to deferred repayments for loan principals and a more stable shilling against the US dollar than earlier forecast.
Kenya was initially reluctant to apply for the debt suspension offered by the rich countries but made an about-turn in January after domestic revenue collection missed the target by 12.4 percent, or Sh115.9 billion, in the half year to December 2020 — hurt by the economic fallout from Covid-19.
Kenya is among 46 countries that had by April applied to defer payment of an estimated $12.5 billion (Sh1.35 trillion) in bilateral debt owed to G-20 countries under the Debt Service Suspension Initiative (DSSI) programme. Seventy-three countries are eligible for the DSSI programme.
Treasury data shows expenditure on servicing bilateral debt for the year through June 2021 amounted to Sh55.99 billion, a drop of 24.83 percent compared with Sh74.49 billion a year earlier.
Kenya’s food imports bill surges to record Sh103bn (Business Daily)
Kenya’s food import bill hit a record high in the six months to June, piling pressure on household budgets that have already been ravaged by the Covid-19 pandemic, the latest official data shows. Import data tracked by the Kenya Revenue Authority (KRA) shows traders ordered food — including live farm animals for slaughter and breeding— and beverages valued at Sh103.34 billion between January and June this year. This is Sh12.35 billion, or 13.57 percent, more than the Sh91 billion that was spent on food imports in a similar period last year, according to the data collated by the Kenya National Bureau of Statistics (KNBS).
The expenditure on food imports in the half-year period is even higher than the Sh96.41 billion that was spent in the first half of 2017 when a biting drought hurt crop and fodder production hit —triggering a national crisis that forced the Treasury to allow subsidies and waiver of import duties to smooth purchase of key food items such as maize, rice and milk powder from abroad.
Analysts attributed the latest rally in the food import bill to enhanced shipments of items such as grain and cereals to cover for production shortfalls locally on the back of late planting in the March-April-May main crop season and a weakened local currency against the US dollar, which meant importers paid more.
Dar port braces for more large vessels (Dailnews)
AFTER successful construction of berth number zero and dredging the depth of Dar es Salaam Port, the government has embarked on expansion of the port entrance by increasing four more meters. The port entrance which has 11.5 metres is undergoing expansion to have 15.5metres which will enable the port to host large ships up to 400 meters from the current 200metres. This was revealed yesterday during Dar es Salaam Regional Commissioner Amos Makalla’s tour at the port, where he was briefed that the dredging is going on alongside construction of the port access entry roads.
According to the Director General of the Port of Dar es Salaam Elihuruma Lema, the construction work is expected to be concluded on November 25 this year. “The project worth 10bn/- is now at 51 per cent of its accomplishment,” he said, noting that the work continues day and night since they are behind by 13 per cent. “Right now it was supposed to be at 64 per cent towards accomplishment, but we are behind the time, in this case, we have decided that the work should be done in day and night hours,” he added.
Record gold imports tip Uganda-Tanzania balance of trade (Independent)
Uganda imported gold from Tanzania worth $591 million, which is more than half of all imports from the country and five times more than all that Uganda exports there
Uganda and Kenya have lost their balance of trade surpluses to Tanzania over the last one year, as the country opens up to regional integration. This comes as the East African Community (EAC) is planning to roll out a 24-hour operating system across all the borders of the region to improve trade, according to the Secretary General Peter Mathuki. The growth of Tanzania’s trade with other states is largely attributed to the removal of the non-trade barriers that had characterized cross-border operations, for some time, especially regarding trade with Kenya. On the other hand, Tanzania’s huge export volumes to Uganda are being boosted by the growing amount of gold shipped into Uganda, while Uganda’s exports to Tanzania are yet to grow significantly since the ban on grain and sugar more than two years back.
FG Launches Digital Hub for Agribusiness (THISDAYLIVE)
The Minister of Industry, Trade and Investment, Mr. Niyi Adebayo, has launched a digital agribusiness hub, known as I-Produce, to link young farmers with international investors and markets. The digital hub was created by Inara Foundation and funded by the Islamic Development Bank. The minister at the launch in Abuja recently said the federal government fully understood the importance of digital platforms like I-Produce adding that this was why it established the Micro, Small and Medium Enterprise (MSME) Innovation Portal to ensure that MSMEs have access to a wider market and can be matched with customers and clients.
He said, “Navigating international trade can be a daunting experience for small businesses and I am pleased that the I-Produce platform will provide opportunities for businesses to learn more about capitalizing on opportunities under AfCFTA and understanding cross-border trading. “We expect to conclude the development of a world-class investment policy that reflects Sustainable Development Goals (SGDS), climate concerns, the advent of AfCFTA and position Nigeria as Africa’s premier investment destination.”
Africa
Target low-hanging fruits – AfCFTA Secretariat to party states (GhanaWeb)
Chief of Staff at the African Continental Free Trade Area (AfCFTA) Secretariat, Commissioner Silver Ojakol, has called on governments and businesses from party-states to prioritize what he describes as “low-hanging” fruits, particularly agricultural trade as the first, but most important step towards the prosperity of the arrangement. According to him, the sector provides the ideal launching pad for the initiative, and its proper execution is required for the wide-scale industrialization which the continent sorely requires.
Offering caution, he stated that failure to tow this path could see AfCFTA end up with similar ‘unfulfilled development promises’ in agriculture as witnessed under the General Agreement on Tariffs and Trade (GATT) as well as the World Trade Organisation (WTO). “Agricultural trade is the prime example of low-hanging fruit, and we urge the members of the business community to urge your governments to free the areas that you know are low-hanging. If you treat agriculture in the AfCFTA in the same manner in which it has been treated at the WTO, we will not move forward.” Taking the argument further on the sidelines with the B&FT, he stated that an agric-first approach aid in developing inclusive regional value chains around priority commodities, led by a dynamic and diverse private sector of smallholders, commercial farmers, processors and service providers. This, he noted would be a boost for intra-African Trade and Africa’s trade with the rest of the world.
The European Union (EU)has pledged 74 million euro to the African Continental Free Trade Area (AfCFTA) to support small medium enterprises (SMEs), said the Secretary General of the All Africa Association for Small and Medium Enterprises (AAASME), Ebiekure Eradiri. He made the disclosure today at the end of a three-day micro Small and Medium Enterprises (MSMEs) consultation on the AfCFTA in Dakar, organized by the Economic Commission for Africa (ECA) and AUNIQUEI Communication Company, with financial support from the EU. “I hope this information can help ignite your commitment towards ensuring that the AfCFTA does not fail,” said Mr. Eradiri who sought the continent’s patronage for the SMEs’ goods and services. “Let us build Africa, grow Africa, and buy Africa,” he said.
The bloc has immense opportunities for increasing intra-regional trade, enhancing production, promoting economies of scale, creating jobs, raising incomes and improving the standard of living of the African people.
SADC to take advantage of African trade opportunities (Namibia Economist)
The Southern African Development Community is ready to use the opportunities presented by the African Continental Free Trade Area to drive industrialization and boost the region’s agricultural production. President Lazarus McCarthy Chakwera of Malawi said in his acceptance speech after taking over as SADC chair at the 41st Summit of SADC Heads of State and Government, that the region already has the right tools in place to achieve its goals. He said that Malawi, as chair for the period August 2021 to August 2022, was fully committed to drive the implementation of the region’s integration agenda, particularly industrialization, riding on the success of programmes launched in the past year when Mozambique chaired the regional organization. Mozambique hosted the launch of the SADC Vision 2050 and the SADC Regional Indicative Strategic Development Plan 2020 – 2030 as well as the SADC Emergency and Humanitarian Centre.
EAC integration is on course despite hurdles — sec gen (The Star, Kenya)
Trade within the East African Community has increased significantly over the past three months despite the ravages caused by Covid-19.EAC secretary general Peter Mathuki said at the Namanga border post in particular, trade between Kenya and Tanzania has risen six-fold. There is still room for improvement. Intra-EAC trade stands at less than 15 per cent compared to 70 per cent in the EU, he said, adding that the community would try to raise it over the next five years.
Political federation is a key objective of the EAC regional integration. Is there hope this will happen any time soon? It is the fourth pillar and already, we are discussing with partner states because we must sensitise the citizens of the respective member states: We must move along with the citizens of East Africa.
By when will DRC’s admission to the EAC be finalised, and what opportunities and challenges do you think its membership will bring to the EAC? The population of DRC as we speak is close to 180 million people. DRC brings to the community more than 80 million. So, with its admission, the economic bloc will have a total population of close to 300 million. That is a huge market for us and will make EAC competitive in the world. We are going to see people moving from DRC to the region and vice versa. So the entry of DRC will be a game-changer in as far as intra-regional trade in East Africa is concerned.
MTN spearheading digital solutions for Africa’s progress (News Ghana)
Mobile telecommunications giant MTN Group, is spearheading digital solutions for Africa’s progress, as part of its strategic vision 2025. Mr Selorm Adadevoh, the Chief Executive Officer of MTN Ghana, said MTN recently announced its Ambition 2025 Strategic Vision with a focus on the African continent; the reason the group is exiting some of the other markets. “But what is important is not so much the focus on the continent but what that focus means? It means sustained investment,” Mr Adadevoh stated in his presentation at the MTN Media Forum in Accra.
The Chief Executive Officer said the infrastructure investment was the company’s highest investment in any single year in the last 10 to 15 years. “And that just tells you that our appetite is to continue to take the risk, our belief in the Ghana market and our desire to continue to push the boundaries of technology is even higher today than it was in 10 to 15 years ago. And for me, that is fantastic,” he stated.
Since 2015, the African Development Bank has made significant progress in reorganizing its operations and strengthening its internal processes to improve its overall delivery effectiveness. On 18 May 2016, the Bank Group Strategy for the New Deal on Energy for Africa (NDEA) 2016–2025 was approved by the Board of Directors of the African Development Bank Group. The aspirational goal of the NDEA is for Africa to achieve universal access to cost-effective, affordable and reliable electricity by the year 2025 (100 percent access in urban areas and 95 percent access in rural areas). The strategy also places an emphasis on encouraging clean and renewable energy solutions. The NDEA also supports the implementation of the new strategic goals of the Bank (the High 5s), namely: Feed Africa, Industrialize Africa, Integrate Africa, Improve the Quality of Life of Africans, and in particular, to Light up and Power Africa on a fasttrack, accelerated basis.
2nd Regional Bioeconomy Conference to be held virtually from 10th to 11th November, 2021 (EAC)
East African Community Headquarters, Arusha, Tanzania, 20th August, 2021: The 2nd Regional Bioeconomy Conference will be held virtually on 10th and 11th November, 2021 with a small group of in-person participants in Nairobi, Kenya. The theme of the conference is “Building a Sustainable and Resilient African Bioeconomy.” The theme is cognisant of the global need to reduce carbon emissions, as well as build resilience against emerging and re-emerging diseases such as COVID-19, thus opening up new possibilities for biologically based research and innovation.
Africa, with its rich biological diversity, and a relatively large proportion of arable land, is well positioned to tap these opportunities, and build a competitive but sustainable bioeconomy. The latter is seen as one of the ways of diversifying sources of growth through value addition to biological resources, and linking production to new markets.
IATF 2021 targets more than 40billion dollars in trade deals (BUsinessGhana)
More than 40billion dollars worth of trade deals are expected to be sealed at the Intra-African Trade Fair(IATF) 2021 scheduled for Durban, KwaZulu-Natal South Africa in November this year. The IATF 2021 will provide a unique and valuable platform for businesses to access an integrated African Market of over 1.2billion people with a Gross Domestic Product of over 2.5trillion dollars created under the African Continental Free Trade Area (AfCFTA).
Mr Denys Denya, Executive Vice President, Finance, Administration and Banking Services at Afreximbank, said the trade fair would make AfCFTA a possibility. Mr Denya was speaking at the first Country Roadshow held in Accra as a prelude to IATF 2021. IATF 2021 will be on the theme:” Building Bridges for a Successful AfCFTA.” Mr Denya said the trade fair would play a significant role in making Intra-African trade a reality by providing a sustainable platform for buyers and sellers, investors and governments to connect and exchange trade investment information.
PROJECTS: Singapore aims to Africa’s gateway to Southeast Asia (ZAWYA)
Sugumaran Devaraja, Regional Director, Middle East & North Africa, Enterprise Singapore, pointed out that Singapore companies can be found in various sectors ranging from agribusiness, marine and offshore, urban solutions and digital solutions in Africa. “In recent years, we have seen more Singapore companies offer technology-based solutions to the continent in line with the technology leapfrogging that we have seen, further accelerated by the pandemic.”
Enterprise Singapore has been holding ASFB for the past five years, bringing together business and industry leaders from 30 countries, with the sixth edition this year will be held virtually on August 23 -24. The event will see Ashraf Sabry, CEO of Fawry, speaking on Panel 3 – Digital Africa besides General Authority for Investment & Free Zones (GAFI) presenting on investment opportunities in Egypt.
Devaraja revealed that Singapore’s biggest trading partners in Africa are South Africa and Nigeria. “Our interests in North Africa are varied ranging from agri-business, manufacturing, digitalisation and technology-based including fintech and are covered by our office in Dubai, UAE.”
“We already see growing interest from African companies to look towards Singapore and Southeast Asia/Greater China as an alternative market for diversification. We also have strong free trade networks through Free Trade Agreements (FTAs) with major economies and countries,” said the regional director of Enterprise Singapore.
He pointed out that Singapore’s position as the leading global trading hub for sectors like agriculture, metals & minerals and energy & chemicals is something, coupled with its pro-business environment, diverse pool of experienced trade professionals, and strong connectivity to the region, would
Global
Export credit: Key interest subsidy scheme to be extended (The Financial Express)
Under the scheme, large manufacturing and merchant exporters get an interest subsidy of 3% on pre- and post-shipment rupee credit for the outbound shipment of 416 products (tariff lines). However, manufacturing MSMEs get a 5% subsidy on such credit to ship out any product.
The scheme, introduced in 2015, was initially valid up to March 2020. Its validity was then extended periodically, along with that of the foreign trade policy, up to September 2021.The scheme has been an effective instrument for exporters, especially the small ones, struggling to cope with a cash crunch in the aftermath of the Covid-19 outbreak. Having witnessed a 7% year-on-year drop in FY21, the country’s goods exports have staged a rebound this fiscal. Exports in the first four months of this fiscal rose to $130.8 billion, recording a jump of 75% year on year and 22% from the pre-pandemic level (same period in 2019), as orders from key western markets poured in and global commodity prices remained elevated. Of course, export growth was subdued even before the pandemic – outbound shipments rose about 9% in 2018-19 but again shrank by 5% in 2019-20. So only a sustained uptick over the next 2-3 years would help recapture the lost heights. Sustained credit push will help exporters benefit from a rise in external demand.
However, inadequate credit flow to exporters has been a nagging issue for the past three years before the recent pick-up. Export credit under the priority sector grew 18.3% as of June 19 from a year before, driven by a favourable base and growing demand in light of the latest surge in exports.
Minding the gap to foster better trade for sustainable development | UNCTAD
Trade is recognized as a vital factor for the 2030 Agenda. It’s singled out as a key policy instrument to contribute to sustainable development. Trade is now predominantly conducted through global value chains (GVCs). Today, about $8 trillion worth of world trade goes through GVCs, accounting for
How natural disasters reshape supply chains (VOX, CEPR Policy Portal)
COVID-19 has disrupted global value chains (GVCs). Some observers expect firms to respond by abandoning their pursuit of lower production costs in favour of building stronger resilience in production – by reshoring, nearshoring, and/or diversifying sources of production (e.g. Javorcik 2020, Kilic and Marin 2020, Lund et al. 2020, UNCTAD 2020). In contrast, others have argued that the same technological and institutional factors that have underpinned the international fragmentation of production in the past decades would make a retrenchment of GVCs post-COVID-19 unlikely, unless there is a radical change in the policy environment
The long-term impact of natural disasters on global value chains and their organisation is ultimately an empirical question. To understand how firms behave when faced with new risks, we examine in a recent paper how trade patterns adjusted in the longer term after the 2011 earthquake in Japan (Freund et al. 2021). Our results suggest reshoring, nearshoring, and diversification are unlikely, but production is likely to shift away from risky countries to which importers are highly exposed and towards low-cost producers and large countries.
Climate curse of the developing countries (NewsDay)
LOW-INCOME countries continue to endure negative impacts of climate change that include, humanitarian, socio-economic and environmental. The possible threats of climate change are compounding an already dire situation of some developing countries where poverty is no longer regarded as a condition or state of affairs, but an established institution while climate-induced disasters have become a way of life. Despite being the least equipped, climate-induced disasters always hit developing countries with devastating impacts. These disasters always strike ahead of time, contributing to commotion and leaving no time for planning and coping.
Many developing countries are confronted by a host of climate risks. Instead of being up-to-date, the impacts of climate change are always far ahead of them. Despite contributing far much less carbon emissions, the least developed countries have been vulnerable to climate change ranging from lack of material needs, energy consumption, lack of technologies and resources to fight pollution, including low coal prices which lead to more demand and wide usage of coal. For the least developed countries, it is no longer a question of maybe or otherwise it is the real impact unfolding complemented by weak climate actions, lack of capacity, commitment, political will and funding.
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National
Unpacking economic recovery support interventions (SAnews)
The Department of Trade, Industry and Competition (the dtic) has unpacked the R3.75 billion Economic Rebuilding Package for the restoration of businesses adversely affected by the violent looting and unrest that took place in KwaZulu-Natal and Gauteng recently. “Government has set aside funds to ensure that businesses are able to rebuild as quick as possible… It will be distributed through the department, the Industrial Development Corporation (IDC) and the National Empowerment Fund (NEF),” the department’s Deputy Director-General (DDG) Susan Mangole said on Friday. Addressing a webinar on the economic recovery support interventions, Mangole said the Economic Rebuilding Package is part of the broader R38 billion relief package that was announced by the Minister of Finance.
Riots, Port Stoppages Dim South Africa Economic Growth Prospects (Bloomberg)
South Africa’s economic growth prospects waned for the first time this year after deadly riots and a cyber attack on the nation’s ports operator weighed on activity. Economists surveyed by Bloomberg predict gross domestic product will expand 4.2% in 2021, compared with a previous estimate of 4.5%. While that matches the central bank’s forecast, Governor Lesetja Kganyago has warned that the economic damage caused by last month’s unrest could “fully negate” the better-than-expected first-quarter expansion and have a lasting impact on investor confidence and job creation.
SA to host first ever Africa’s Travel and Tourism Summit (SAnews)
The Department of Tourism and South African Tourism will host Afrca’s first ever Travel and Tourism Summit. The hybrid summit, which coincides with Tourism Month in South Africa, is set to take place from 19 to 21 September 2021. The summit aims to be a catalyst for engagement on the current state of tourism on the African continent.
Acting SA Tourism CEO, Sthembiso Dlamini said that some of the major topics to be discussed at the summit include aviation, innovation, technology, the health and safety protocols currently in place, as well as the continent’s positioning post the COVID-19 pandemic. “The African continent is resilient and this summit is important, as it will contribute towards picking up the momentum within the sector, as it works towards an inclusive recovery.
“The COVID-19 pandemic may have dealt both business and leisure tourism a heavy blow, but we are now in the recovery phase, and a summit of this nature is critical in ensuring that we are aligned as a continent, whilst reigniting the tourism industry,” Dlamini said.
Senegal set as a model for intra-African trade but… (Ecofin)
Of Senegal’s overall exports over the first half of 2021, 38.21% went to African countries. This share is, according to official data, less than the 44.2% achieved in H1 2020. However, compared to an average of 16% on the continent, the African Development Bank believes that Macky Sall’s country is a model in terms of intra-African trade. Senegal sells most of its products on the West African Economic Monetary Union. Mali came first with 17% of Senegalese exports over the period reviewed, ahead of Switzerland (13.8%) and China (11.3%). The seller cashed out CFA533.2 billion from sales on the continent, including CFA486.4 billion in WAEMU alone. When analyzed in an African context, this strategy aligns with the desire to build a common market. But Senegal loses a lot on a macroeconomic level. The large volume of trade with the WAEMU has little impact on its forex buffers, as transactions are in local currency. At the same time, its economic players who operate on international markets have to settle bills in U.S. dollars. Asia and Europe account for 79.5% of the country’s imports.
Another challenge lies in the fact that in its trade with partners outside WAEMU and CEMAC, Senegal has lost CFA1,337 billion (in foreign currency). This gap was not closed by the CFA310.3 billion trade surplus with partners in the CFA zone. Commodities such as oil and gold generate export revenues, but not enough to boost exports and meet external purchasing needs.
Kigali hails Dar Port’s contribution to its economy (Tanzania dailynews)
RWANDA has hailed the contribution of the Port of Dar es Salaam to its growing economy. The land linked East African nation has over the years seen more than 80 per cent of its exports and imports passing through the seaport which handles over 90 per cent of Tanzania’s cargo traffic.
Rwanda’s Ambassador to Tanzania, Major General Charles Karamba said Rwanda continues to depend on the seaport for its imports and exports. “It is a very important point for Rwanda and I’ve been routinely meeting senior port officials with a view of scaling up the use of the port,” asserted the envoy after he paid the East African Business Council (EABC) a courtesy call.
The Gambia Women’s Chamber of Commerce boosts women’s networks (ITC)
Inspired by discussions at the International Trade Centre’s SheTrades Global event in Liverpool in 2018, Naffie Barry and Beatrice Mboge from the Gambia began brainstorming about creating a dedicated chamber of commerce for women. While many national organizations exist to champion women’s empowerment, none were dedicated to creating a network to guide women on their business journey, which is the mission of the now established Gambia Women’s Chamber of Commerce.
“We are proud that our women are so motivated. People do not ask us anymore what the benefits of the Chamber are. People are calling us and wanting to join,” says Beatrice Mboge, CEO of the Gambia Women’s Chamber of Commerce.
Africa
Intra-Africa Trade Fair sees offers to help boost Ghana, SA’s trade (Eyewitness News)
The Intra-Africa Trade Fair in Accra, Ghana, has seen a number of offers in line with the Inter-Continental Free Trade Agreement to boost trade with countries including South Africa. Ghanian officials have on Thursday told the fair that the deal can be used to boost certain industries including infrastructure. President Cyril Ramaphosa recently highlighted infrastructure as one of the main pillars of future job creation in the country. William Obeng, the general manager for corporate banking at the Ghana Export Import Bank said: “In getting our share of the export trade throughout the world and in doing this, we are mainly supporting around 120 companies to build infrastructure.” The trade show moves to Durban in November.
ACFTA: Singapore looks to invest more in Africa’s manufacturing (The New Times)
With the African Continental Free Trade Area (ACTFA) coming into force, Singaporean companies hope to invest more in Africa’s manufacturing industry, according to Linn Neo, the Regional Director – East Africa Enterprise Singapore. Neo made the remarks during a press briefing that her office organised ahead of the biennial Africa Singapore Business Forum (ASBF), a platform for business exchange and fostering trade between Africa and Asia scheduled for August 23 to 24. “We do see a lot of potential. I think with the Africa continental free trade agreement coming into force,” she said.
“This presents an entire continent to Singaporean manufacturers. We are not new to doing manufacturing from the ground. We do have a number of investors who have been doing manufacturing in Tanzania, Uganda, Nigeria, Ghana, and we think that with the ACFTA coming into force, this will assist our
Gender Disaggregated Small Scale Cross Border Trade Data for Zambia (COMESA)
COMESA, with financial support from the European Union has been implementing the Small-Scale Cross Border Trade Initiative (SSCBTI) which aims at increasing small scale cross-border trade flows in the COMESA Tripartite region. This is being done by facilitating small-scale cross border trade between targeted countries through effective policy and governance reforms, institutional capacity building, improved border infrastructure and better gender disaggregated data collection and monitoring.
“The goal is to remove gender-related constraints that women face in participating in trade and understand the obstacles to cross border commerce that happens within the region,” according to a report by the COMESA Statistics Unit that coordinated the data collection.
SADC Summit approves transformation of SADC PF into regional parliament (sardc.net)
Leaders of the Southern African Development Community have approved the much-awaited SADC Regional Parliament, bringing on board what has long been seen as the missing piece in the regional integration jigsaw puzzle.
“Summit approved the transformation of the SADC Parliamentary Forum into a SADC Parliament as a consultative and a deliberative body,” said outgoing SADC Executive Secretary, Dr. Stergomena Lawrence Tax, delivering the final communiqué at the closing session of the two-day 41st SADC Summit of Heads of State and Government held in Lilongwe, Malawi on 17-18 August 2021.
More care needed in EAC single-currency initiatives (IPPmedia)
That means that this is something to be done within the current financial year – that is, 2021/2022 – in a situation where no such indication or inkling of preparations to that effect was evident in the government budget a couple of months ago. Such a move would also have elicited a detailed statement of monetary policy movement and even a presidential address to the National Assembly. This is what happened in 2014 at the time of forming the ‘coalition of the willing’.
It is undeniable that there has been a sea change in attitudes concerning major bloc-level projects like the common market, the free movement of goods, people and capital, as well as auxiliary ones like the envisaged common currency and – ultimately – the political federation.
Most of these are however still in the drawing stages or the key issues are being ironed out, and it was a bit surprising to hear EAC Secretary General Dr Peter Mathuki making the declaration as to start using an EAC single currency this soon.
East Africa’s natural capital yields $608bn to economies (IPPmedia)
Titled ‘Protecting East Africa’s Natural Capital: The Cost of Inaction,’ the new report indicates that the Great East African Plains, the Northern Savannas, the Albertine Rift Forests, and the Ruweru-Mugesera-Akagera Wetlands, together contribute over US $10.9 billion annually to East African Community economies and $608 billion to the global economy.
The term natural capital means stocks of natural assets which include its geology, soil, air, water and all living things., says the study, commissioned by the EAC in partnership with the USAID-funded Economics of Natural Capital in East Africa (NatCap) program. It shows that these ecosystems contribute US $5.92 billion, US $1.1 billion and US $2.6 billion to climate regulating capacities, carbon storage and harvestable resources in the region, respectively.
Rich countries want to strike trade deals in Africa (The Economist)
“WE is Kenya’s President Uhuru Kenyatta said before trade negotiations with the United States began last year. The agreement will sign Kenya’s second free trade agreement with the United States in Africa after Morocco. Trump administration officials called the proposed transaction a “model” of future transactions. However, such bilateral talks are incompatible with promoting regional integration in Africa and President Joe Biden’s emphasis on multilateralism. Negotiations are currently pending while the United States is thinking about what to do next.
Since 2000, American policy has been the African Growth and Opportunity Law (AGOA), Allows tax-exempt access to thousands of products exported from about 40 countries. African countries have no control over eligibility standards because this is a law passed by Parliament and not a treaty negotiated between governments. It creates friction. For example, Rwanda was partially suspended in 2018 as a ban on second-hand clothing imports aimed at promoting local production frustrated American companies exporting them.
Now African countries have to wait worried about whether parliament will be extended AGOA It has exceeded the current expiration date of 2025. Uncertainty makes businesses “unpredictable” and Ugandan technicians sigh. Kenya’s promotion of a full-scale trade agreement with the United States is an attempt to take the lead.It also takes advantage of promises AGOA As such, it was always envisioned as a stepping stone to the negotiated agreement. But there is a problem. Kenya is part of the East African Community, a customs union on paper. If Kenya lowers barriers to American products, the other five countries in the block will need to either leak their products to their markets or tighten border checks to keep them out. Negotiating with countries as a group rather than individually would not be a more disruptive way to move forward.
Whoever is at the table, many American companies are now AGOA-Towards a mutual agreement, like a trade concession. They don’t want to “lose” while other countries trade, says Whitney Schneidman, former Assistant Secretary of State for African Affairs.
How Dubai firms are focusing in on West Africa with $387m trade (Arabian Business
Dubai Chamber member companies’ exports and re-exports to West Africa surged 42 percent in first five months of 2021 to reach a record $387 million, fuelled by a recovery in trade activity. According to analysis by Dubai Chamber as it prepares to host the 6th Global Business Forum Africa in Dubai in October, 3,201 Certificates of Origin for West Africa-bound shipments were issued between January and May, marking a year-on-year increase of 20 percent
The latest estimates by the International Trade Centre (ITC), indicate that there is potential for UAE traders to double their exports and re-exports to the Western Africa markets, currently valued at $2.1 billion.
Global
What does the IPCC climate change report mean for trade? (World Economic Forum)
The recent report from the Intergovernmental Panel on Climate Change (IPCC) warned that temperatures are very likely to reach or exceed 1.5°C of warming versus pre-industrial levels, by 2050. But what could this mean for global trade, trade finance and supply chains? Aside from sending a pretty strong warning to G7 ministers as they prepare for both Glasgow’s COP26 gathering in just three months and then the World Trade Organization’s twelfth ministerial conference (MC12), we will likely see many commitments for policymakers step-change how the world deals with climate change and cross-border trade.
Trade and climate change discussions have long been siloed by policymakers. Yet it is clear that trade impacts the climate, and vice versa, and the links between the two remain relatively unexplored. International trade did not receive much coverage in this recent IPCC assessment by Working Group I, appearing in limited ways, often in relation to keywords such as ‘infrastructure’ or ‘transport’. This is a notable absence, given that trade-induced economic growth due to trade liberalization increases carbon dioxide emissions, the main contributor to greenhouse gas emissions driving climate change. Here are 4 areas that we could see being explored more intensely over the coming months, which supports initiatives to limit global warming to 1.5°C and reaching net-zero emissions by 2050.
Climate change action needed at COP 26 … as UN report projects a gloomy future (sardc.net)
US moves to secure critical minerals for EV supply chain (Engineering News)
Various oil majors continue to produce huge volumes of oil and natural gas, owing to fossil fuels still being used to meet the bulk of the world’s energy requirements. Although energy demand is expected to continue to increase, the share of fossil fuels in the global energy mix is set to decline. This shift is particularly profound when considering the current technological revolution in the transportation industry. Increasing concern over the environmental degradation caused by excessive fossil fuel extraction and burning has led to the development of alternative technologies, disrupting the monopoly once held by petroleum-powered vehicles.
Minorities are ‘key partners’ in saving planet’s biodiversity – UN expert (UN News)
The global initiative to save the planet’s biodiversity on land and water must not be allowed to threaten the world’s most vulnerable people, a top human rights expert said on Thursday. Under a UN-backed global biodiversity framework draft agreement, countries have agreed to protect 30 per cent of the planet and restore at least 20 per cent by 2030.
Rich nations hoarding COVID jabs makes mockery of vaccine equity – WHO Africa (Eyewitness News)
The World Health Organisation (WHO) Africa has described richer countries hoarding COVID-19 jabs as “making a mockery of vaccine equity”. The health body was highlighting efforts made to roll out coronavirus shots on the continent during its weekly press briefing on Thursday. Regional director, Doctor Matshidiso Moeti, said that through WHO’s COVAX facility, almost 10 million vaccine doses have so far been delivered to the continent during the month of August.
“The move by some countries, globally, to introduce booster shots threatens the promise of a brighter tomorrow for Africa. As some richer countries hoard vaccines, they make a mockery of vaccine equity.”
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Sugar industry reiterates commitment to transformation (SAnews)
South African Sugar Association (SASA) Vice Chairperson, Joanmariae Fubbs, has commended the organisation for recognising the need to promote diversity by availing more land for black farmers in the industry. “SASA has been able to transform more than 21% of free owned land on the sugarcane from white farmers to black farmers without a shot being fired,” Fubbs said. Fubbs was speaking at the Women in Leadership webinar, hosted by Proudly South African on Wednesday.
The master plans have targeted specific action points relating to the respective industries, but there are also generic objectives, including a change in ownership and production patterns within each sector. The master plans aim to increase localisation, which will lead to re-industrialisation and growth, as well as to reclaim domestic markets lost to imports.
The clothing and textile sector, automotive industry, sugar, and creative arts sectors have been identified by the Department of Trade, Industry and Competition (dtic) as worthy of particular attention for their job creation potential.
Imports of goods, services decline (Tanzania Dailynews)
THE imports of goods and services declined to 9,869.7 million US dollars from 10,043.7 million US dollars in the corresponding period last year with a significant decrease in travel payments, transport equipment, building and construction materials. According to the Bank of Tanzania (BoT) monthly economic review, oil imports which constituted 18.4 per cent of all goods imports, increased marginally by 1.3 per cent to 1,576.7 million US dollars mostly on account of the volume effect. The recent increase of oil prices in the world market is projected to revert to the pre-pandemic level, which could adversely affect the balance of payments. Goods import bill increased to 795.3 million US dollars from 575.4 million US dollars recorded in June last year due to a rise in oil imports as well as capital and consumer goods. Services payments amounted to 1,282.7 million US dollars in the year ending June lower than 1,608.3 million US dollars recorded in the corresponding period last year bolstered by lower travel payments, arising from containment measures by other countries in an attempt to limit the spread of Covid-19.
Local businesses should be bold enough to venture beyond Rwanda (The New Times)
In April, a group of Rwandan investors went on a business mission to the Central African Republic, with a view to exploring investment opportunities there. The team was received by high-profile personalities, including the president himself, and were encouraged to venture into the CAR market with a promise of a few incentives and other offers. Rwandan businesses would also benefit from the fact that RwandAir operates flights between Kigali and Bangui, meaning movement of both people and merchandise between the two countries has never been easier.
Court stops building of second grains terminal at Mombasa port (Business Daily)
Kenya Ports Authority (KPA) has been stopped from awarding a licence to Portside Freight Terminals Limited for the development of a second grain bulk handling facility at the Port of Mombasa. High Court judge Reuben Nyakundi suspended the plans pending the determination of a case filed by activist Okiya Omtatah, who argues that KPA has failed to undertake the procurement as required by the Constitution and provisions of the Public Procurement and Asset Disposal Act.
n June 28, the board approved the use of the procurement procedure and awarded the contract to the Portside Freight Terminals Limited. Mr Omtatah argued that KPA and Treasury employed the use of the procedure to avoid the competition of bidders and is being employed in favour of the firm associated with a prominent Mombasa politician.
Nigeria must pursue import-substitution policies, protectionism for local (Naija247news)
The First Abuja Small and medium-sized enterprises (SMEs) Conference and Exhibition participants have called for deliberate import-substitution policies and protectionism for local industries, especially Micro, Small and Medium Enterprises (MSMEs). The participants made the call in a communiqué signed by Mr Olawale Rasheed, Executive Director, National Chamber Policy Centre (NCPC), Abuja Chamber of Commerce and Industry (ACCI), on Wednesday in Abuja.
The communiqué seen by Naija247news the end of the maiden conference, organised by ACCI on Aug. 16, which focused on “Solution Strategies for resolving tax, regulatory, packaging and logistics challenges facing SMEs in Nigeria”. In view of challenges identified by participants, the communiqué recommended that MSMEs as economy drivers, making up 90 per cent of economic activities, government must support their growth as obtainable in India, China and emerging markets.
Buhari tells FEC that Nigeria lost $50b on delayed petroleum law (Businessday Nigeria)
Nigeria lost an estimated $50b worth of investment in the petroleum sector. This is was due to uncertainty over the 20 years’ non-passage of the Petroleum Industry Bill (PIB), lack of progress, and stagnation in the petroleum industry. President Muhammadu Buhari stated this on Wednesday at a ceremony on passage of the PIA, which preceded the Federal Executive Council (FEC) meeting, at the Presidential Villa, Abuja The stagnation, he said affected the growth of the economy, citing a lack of political will on the part of past administrations to actualize the needed transformation.
A Digitized Ghana - New Technologies and Innovation (Lexology)
The past year has been a year of exciting initiatives for Ghana’s digital infrastructure. The Government has adopted digitization as a key policy objective and has recently introduced a number of programs designed to develop a more digitally accessible public sector and encourage transparency and efficiency, in order to drive growth in all aspects of the country’s economy. The private sector is also playing its part. In his recent mid-year fiscal policy review of the 2021 budget statement and economic policy, the Minister of Finance, Ken Ofori-Atta, observed that the use of mobile money, door to door delivery via courier services and internet usage for business operations has increased significantly with about 77 percent of businesses increasing the use of the internet in marketing, compared to 19 percent during the lockdown period. As the ongoing COVID-19 pandemic continues to make digital innovation a priority in Ghana and internationally, this article looks at some of the recent initiatives that are putting Ghana at the cutting-edge of developments in this space.
Coffee Export Generates $115.4 million in July (Ethiopian Monitor)
Coffee export generated 115.4 million dollars in the first month of the new 2021/22 fiscal year, surpassing the value and volume of the corresponding month of previous year. Ethiopian Coffee & Tea Authority, in its performance report, says the country had a plan to export 21,339.80 tons of coffee to the international market in the 30-day period of the FY, beginning July 8. But it has managed to export a total of 31,145 tons of coffee, generating 115.46 million dollars, says the Authority. The volume of export increased by 146 percent while the revenue jumped by 161 percent, according to the Authority.
Ethiopia Attracts $3.9 billion FDI in 2020/21 Fiscal Year (Ethiopian Monitor)
Foreign Direct Investment (FDI) inflow into Ethiopia reached 3.9 billion US dollars in the recently concluded 2020/21 fiscal year, says country’s investment commission. The amount, recorded in the FY which ended on July 7, has shown nearly a billion jump as compared to the figure the East African nation attracted in the previous year. The Ethiopian Investment Commission (EIC) said the encouraging performance in attracting the FDI, amid the security and Covid-19 pandemic induced challenges, could be attributed to several reasons. “The sale of the first private telecom license, however, has been the main factor,” said Henok Solomon, Communication Director of the EIC.
Africa
How continental treaty can foster sustainable trade in biodiversity in Africa | UNCTAD
Africa is one of the most biodiverse regions on earth. Yet commitments negotiated so far under the landmark African Continental Free Trade Area (AfCFTA) agreement barely mention the environment. This represents a missed opportunity to achieve sustainable development through trade integration in Africa, as stipulated under the Africa 2063 Agenda, says a new UNCTAD study entitled “Implications of the African Continental Free Trade Area for Trade and Biodiversity: Policy and Regulatory Recommendations.” The study developed in partnership with the ABS Initiative investigates the link between trade and biodiversity and the existing parties’ commitments under the AfCFTA. It recommends ways of transforming the agreement into an enabler of sustainable trade in biodiversity and a key driver of post-COVID-19 recovery and development in Africa.
State parties under AfCFTA urged to formulate policies to regulate digital currency regime (Ghana News Agency)
The Ghana International Trade and Finance Conference (GITFiC) has called on State parties under the Africa Continental Free Trade Area (AfCFTA) Agreement to formulate policies for the regulation of the digital currency regime. This, it said, would present a viable means to improve financial inclusion on the African continent,
Ms Bridget Agbenya, a Research Intern from Ashesi University at GITFiC, presenting the August 2021 Research Report, said the Conference wished to re-echo the recommendation given by the Vice President, Dr Mahamadu Bawumia on the need for the Pan-African Payment and Settlement Systems (PAPSS) architecture to allow national banks of State Parties to connect to ensure seamless operationalization and financial integration. The Report was on the Impact of Digital Payment Systems in Facilitating Cross Border Trade under AfCFTA. GITFiC’s August 2021 paper will consider an overview of digital payment and discuss the structure of digital payment systems with a focus on adopting a continental single digital currency, which is expected to facilitate the operationalization of the AfCFTA.
Businesses should concentrate on production to remain competitive- Osafo-Maafo (BusinessGhana)
Mr Yaw Osafo-Maafo, Presidential Advisor, has called on businesses to concentrate on production to remain competitive in the global market as they take advantage of the African Continental Free Trade Area (AfCFTA) Agreement. He said if businesses produced but could not be competitive, then they have a problem, because other African countries are also producing onto the same market. Mr Osafo-Maafo, speaking at the fourth Ghana Industrial Summit and Exhibition 2021, said “competitive production is key.”
The Summit will hold discussions on technological advancements in industry, energy requirements, infrastructure, financing and many other thought-provoking topics needed by local businesses seeking to trade within the African single market.
Centre for Greater Impact Africa urges industries to take advantage of AfCFTA (GhanaWeb)
The Reverend Dr. Worlanyo Mensah, Executive Director of Centre for Greater Impact Africa, a policy think tank, has called on industries to take advantage of the African Continental Free Trade Area (AfCFTA) to expand. He said there was the need to empower the private companies to take advantage of the AfCFTA to expand and create more jobs for the youth. Rev. Mensah said this when he led a five-member delegation from the Centre for Greater Impact Africa to pay a working visit to ‘B5 Plus’ the largest steel manufacturer in West African and the third in Africa.
Businesses must improve internal processes to benefit from AfCFTA (Ghana News Agency)
Businesses need to focus and improve internal processes to benefit from the African Continental Free Trade Area (AfCFTA), Mr Emmanuel Antwi-Darkwa, Chief Executive Volta River Authority (VRA), has said. He said to unlock the potential for economic transformation, it was imperative that local businesses fully comprehend the agreement to leverage its opportunities for growth and expansion.
ECA Director seeks ways to boost AfCFTA’s implementation as MSMEs consultation opens (UNECA)
The Economic Commission for Africa (ECA) and communication consultancy AUNIQUEI, with funding from the European Union (EU) today in Dakar opened a consultation with African micro, small and medium enterprises (MSMEs) on the implementation of the African Continental Free Trade Area (AfCFTA). Business leaders and trade experts from across Africa are participating in the three-day event to gain insight into the challenges the agreement poses to small and medium businesses.
In her speech to open the meeting, the Director of the African Institute for Development and Economic Planning (IDEP), Karima Bounemra Ben Soltane, said the gathering was intended to see how participants could together boost the agreement’s implementation, adding that, the MSMEs should play their part alongside the public sector if the AfCFTA was to succeed.
President Akufo-Addo Accepts Role of Champion of the 3rd Industrial Development Decade for Africa (Africanews)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has accepted an invitation from the Director General of the United Nations Industrial Development Organization to play the role of a Champion of the Third Industrial Development Decade for Africa.
It may be recalled that on 25th July 2016, the United Nations General Assembly adopted resolution A/RES/70/293 in which it proclaimed the period 2016–2025 as the Third Industrial Development Decade for Africa (IDDA III), calling upon the African Union Commission, the New Partnership for Africa’s Development, the Economic Commission for Africa and, specifically, the United Nations Industrial Development Organization (UNIDO), to develop, operationalize and lead the implementation of the programme for the IDDA III. Consequently, UNIDO developed a Roadmap for implementing the IDDA III anchored on six interlinked pillars namely, global forums, strategic support to develop and manage industrial policy instruments, technical cooperation, cooperation at the level of the African Union, regional economic communities and countries, partnerships and resource mobilization, and communication and advocacy.
Malawi Vice President delivers SADC Public Lecture on Industrial Digitalisation (SADC)
The Vice President of Malawi, Dr Saulos Klaus Chilima on 12th August delivered the keynote address on promoting digitalisation in support of industrialization in the Southern African region at the 2021 SADC Public Lecture which Malawi hosted as part of the 41st Ordinary SADC Summit taking place in the country. The Public Lecture was organized by the Malawi National Planning Commission in collaboration with SADC Secretariat. In his lecture delivered under the theme: "Promoting Digitalisation for the Revival of the SADC Industrialisation Agenda in the COVID 19 Era", Dr. Chilima, formerly CEO of Airtel Malawi, said SADC countries needed to promote digitalisation to minimize disturbances to the development of industry as a result of COVID 19.
"COVID 19 has provided impetus for innovation and development of technologies for continuation of business amidst the pandemic. SADC countries should tap opportunities for the challenge," he said.
The East African Community Secretary General, Hon. (Dr.) Peter Mathuki, is urging the private sector to take advantage of the ongoing bilateral engagements between Partner States, to promptly resolve trade disputes so as to increase trade among EAC Partner States. Hon. (Dr.) Mathuki further called upon the private sector to promptly harmonise their positions on trade agreements at the national level before engaging their counterparts in other Partner States to fast track trade deliberations. “Regular consultations and dialogues within the national private sector bodies, is critical in building consensus within a Partner State. Divergent positions within a country will only delay in concluding trade deliberations at the regional level, further delaying implementation of regional trade policies,” said Dr. Mathuki.
EAC Secretary-General tips private sector on infrastructure development (The New Times)
The East African Community Secretary-General, Peter Mathuki, on Wednesday, August 18, urged the private sector to drive the trade and investment agenda by establishing partnerships with their governments to fast track infrastructure development.
He was speaking during a CEOs engagement roundtable with business leaders in Arusha, Tanzania, convened by the East African Business Council (EABC). Mathuki said: “Private sector needs to move beyond advocacy and liaise with the Government in providing solutions to some of the trade issues being faced across EAC Partner States.”
EAC single currency set for use next year (IPPmedia)
EAC Secretary General Dr Peter Mathuki said here yesterday that the technical process to that effect will be fast-tracked in order to be completed before the end of this year. “We are late and need to run,” he said. He was addressing a CEOs Roundtable breakfast engagement on East African regional integration organized by the East African Business Council (EABC) in conjunction with KCB Bank here, A single EA trading and investment area will only have meaning if the biggest barrier to trade, that is different currencies, is removed into one currency, acceptable across all borders, he said, referring to Kenya, Uganda and Tanzania as well as Rwanda, Burundi and South-Sudan.
UN Under-Secretary General and Executive Secretary of the United Nations Economic Commission for Africa (ECA) – Vera Songwe, and Cameroon’s Minister of Finance – Louis Paul Motaze, discussed, yesterday, the country’s need to move fast with innovative financing, industrial clustering and digital transformation while keeping up the fight against COVID-19 especially through massive vaccination. This, against the backdrop of an extraordinary summit of CEMAC Heads of State, chaired on the same day by Cameroon’s President Paul Biya on the theme “Review of the Economic, Monetary and Financial Situation in the CEMAC Zone and Analysis of its Prospects.”
But more needs to be done, especially on the financial front in order to cushion the calamitous impact of the pandemic on African economies, she maintained.
Debt Service Suspension Initiatives (DSSI) and other innovative means of financing Africa’s way through this pandemic period needed follow up, she intimated, as she pointed to the Liquidity and Sustainability Facility (LSF) launched by ECA and the investment management firm PIMCO last March.
The LSF aims to reduce governments’ borrowing costs by increasing demand for their sovereign bonds. This, Ms Songwe said, could save Africa US$11 billion of interest on loans in just five years.
COVID-19 is aggravating long-standing challenges of the region. Growth turned negative, and there has been a widespread loss of jobs and economic opportunities. Fiscal and external imbalances have grown wider, reducing the room for governments to respond. In addition, the sharp reduction in oil prices during the pandemic exposed again CEMAC’s vulnerability to the volatility in the demand and price for commodities. Deep structural reforms are needed now more than ever to secure social cohesion and put the region on a sustainable and more inclusive development path.
The pandemic has left many CEMAC member countries with elevated debt levels. Debt transparency and sustainability will be vital to a sustained recovery and attracting new investment. At the outset of the pandemic, I proposed with Kristalina a broad moratorium on debt service. The G20’s DSSI – which benefitted Cameroon, the CAR, Chad, and Congo – provided liquidity support and additional fiscal space to help respond to the health emergency.
Lasting debt relief will be needed to encourage investment and growth, and we are working toward a strong G20 Common Framework for Debt Treatment. Chad was the first country to request participation in the Common Framework. To succeed will require the full participation of commercial creditors in the workout for debt and debt-equivalent instruments, including comparable treatment using consistent discount rates.
Does West Africa Need a Single Currency? (Foreign Affairs)
Over a decade ago, the leaders of the Economic Community of West African States (ECOWAS), a regional trade bloc of 15 countries with a total population of roughly 400 million, committed to establishing a monetary and currency union by the end of 2020. In other words, they agreed to renounce monetary sovereignty and adopt a common currency managed by a single central bank. Eliminating multiple currencies, they believed, would dismantle barriers to the flow of goods, money, and people and lay the foundations for greater prosperity. Ultimately, they hoped their regional monetary organization might blaze a trail to an Africa-wide currency union that could unite the continent and expand its influence on the world stage.
But 2020 has come and gone, and the ECOWAS currency union has yet to break ground. Despite the initial rush of enthusiasm around the project, the goal of a currency union has slipped further and further out of reach in recent years. Prior to the 2020 deadline, virtually no ECOWAS country had attained the economic benchmarks the group had established as preconditions for the union. And then came the COVID-19 pandemic, which wreaked economic carnage in West Africa, as it did in much of the world, and sent member states into economic survival mode.
The ECOWAS currency union faced considerable challenges from the get-go, not least being the very different stages of development of the bloc’s member states. Six of its 15 members are middle-income states, with estimated annual incomes of at least $1,000 per capita. The other nine are low-income states, with per capita incomes falling below $600 in Liberia, Niger, and Sierra Leone. Countries at such divergent economic stages are unlikely to reach a consensus on short-term economic priorities even in the best of times, making it difficult to develop a uniform monetary policy for all of them.
One alternative to a monetary union—or a steppingstone to one—that could spur growth and accelerate regional integration without the added political complications of a common currency can be found in Asia. The ten members of the Association of Southeast Asian Nations have established an extensive network of financial and trade arrangements but retained monetary policy autonomy. This has allowed them to foster economic integration and to speak with a more unified voice on important economic and geopolitical issues while avoiding any tensions that might arise from trying to coordinate their monetary and fiscal policies. Should they continue to pursue a currency zone, ECOWAS leaders might consider starting with similar small steps toward trade and financial integration as precursors to a more durable monetary union.
How to put women at the centre of Africa’s food systems (The Conversation Africa)
The number of hungry people in the world grew by a staggering 161 million people in 2020 to 811 million. More than one third of these people live in Africa. One of the main reasons for this increase is the COVID-19 pandemic, coupled with the cost of healthy diets and high levels of income inequality. More concerted efforts are needed to address the problem of food security. Empowering women is often said to be the key. In the past, researchers have looked to their specific disciplines to suggest how women could be empowered to improve food security. Some have focused on increasing women’s income because women spend more of their income on household nutrition. Others have focused on providing women with nutrition education because women carry the primary responsibility for preparing food. While these studies are valuable for improving food security and nutrition, we also need to consider what shapes women’s participation in different aspects of the food system. Globally, experts are beginning to recognise that focusing on one aspect of food overlooks the trade-offs or sacrifices people make. For example, women’s economic empowerment may mean that they spend more time on economic activities, and less time preparing food.
IEA holds symposium on China-Africa Cooperation (News Ghana)
Participants at the close of a symposium on the Forum on China-Africa Cooperation (FOCAC) initiative, in Accra, have called for strengthened collaboration among African countries for the sustainable development of the continent. The participants identified poor cohesion among African countries as a contributory factor to the underdevelopment of the continent and urged governments to draw lessons from China’s value addition through infrastructural initiatives to boost their development.
They argued that although Africa was endowed with numerous resources, the financing of major national infrastructural projects was often left in the hands of foreign nations, leading to high indebtedness to those countries, with very limited involvement of the local people in those developments. They proposed among other things, that African leaders lead a unified crusade for domestic mobilisation of funding for the development of quality infrastructure, both within countries and across the continent, while ensuring a high level of accountability as a key pre-requisite for achieving success and maintaining the required standards of development.
Global
China’s Shipping Delays Are Costing African Economies (The Diplomat)
It is almost 18 months into the COVID-19 pandemic, and with increasing vaccination rates globally, on land, a return to “normal life” seems to be plausible in the coming months. However, on the sea, it is a different story. Global logistics is and looks like it will remain a snarled mess, with significant consequences in particular for African economies. While Africa accounts for only 3 percent of global trade, it is the region that depends most on external trade – 85 percent of its total trade is extra-regional, even though 30 percent of African countries are landlocked. Ship and air freight delays and supply chain disruptions have been endemic since the onset of the COVID-19 pandemic. Factory closures, worker restrictions, and varying degrees of lockdown all contributed to reduced production and distribution of many goods, while logistics requirements for health and medical equipment rose. Overall, global shipping activity overall reduced by around 10 percent in 2020. Logjams on trade lines originating in China, responsible for 16 percent of global trade, have been particularly challenged. In early 2020, China initially reduced external trade, then, as the country gained control over COVID-19, it experienced an export boom – for medical equipment as well as other goods. This export boom has continued, but with lockdowns elsewhere and thus fewer imports returning, containers to sustain outflows have proved difficult to source.
What do people think about globalization and trade? (World Economic Forum)
Most people think that expanding trade is a good thing, according to a recent Ipsos-World Economic Forum survey of adults in 25 countries around the world. But support for globalization has declined - with half of people unsure of its benefits and a third advocating for trade barriers.
“International trade and investment can grow economies, reduce poverty, improve healthcare and empower people worldwide,” says Sean Doherty, Head of International Trade and Investment at the World Economic Forum. “However, changes caused by trade can be disruptive and painful, and can sometimes undermine local reforms. The seeming contradiction in survey results is understandable: people want more of the good and less of the bad of globalization.
Despite this widespread support for increased trade, more people agreed there should be more trade barriers to limit the import of foreign goods and services into their country than disagreed.
China Is the Biggest Winner From Africa’s New Free Trade Bloc (Foreign Policy)
When the African Continental Free Trade Area (AfCFTA) was initially proposed at the African Union summit in 2012, it had two goals: First, build a pan-African agenda in trade and cooperation. Second, lift a large percentage of people out of poverty by instituting structural economic changes and cooperative legislation. The bloc’s establishment signified a monumental shift in African trade and development. For years, African trade has been mostly limited to colonial trade routes, a practice that has resulted in the continent’s countries trading more internationally than among themselves.
But now, as the trade bloc enters its first few months, African nations are not the ones who will be reaping the deal’s greatest benefits—Beijing is.
China is now sub-Saharan Africa’s most visible—and perhaps even biggest—trading partner, a role that has even positioned it to shape policy across the continent. Through its spending sprees, Beijing is shifting African policy in its favor.
Rich countries want to strike trade deals in Africa (The Economist)
“WE WILL BE the guinea pig,” said Uhuru Kenyatta, Kenya’s president, before trade talks with America opened last year. A deal would make Kenya only the second African country after Morocco to sign a free-trade agreement with the United States. Officials in the Trump administration called the proposed deal “a model” for future ones. But such bilateral talks jar with Africa’s push for regional integration and with President Joe Biden’s emphasis on multilateralism. Negotiations are now on hold while America works out what to do next.
The pause reflects a sense of drift in Africa’s trade relations with the West, as both America and Europe rethink how they do business with the continent. In the past they granted concessions, such as lower tariffs on African exports, without requiring African countries to reciprocate. Now they are increasingly looking to negotiate two-way agreements which will open up African markets, too. The old approach was paternalistic and gave Africans little say. But the new one, handled badly, could put Africa’s own integration at risk.
BRICS reiterates commitment to foster open, fair and non-discriminatory trade environment (Hindustan Times)
The industry ministers of Brazil, Russia, China and South Africa (BRICS) reiterated their commitment to foster an open, fair, and non-discriminatory trade environment to ensure greater participation in global value chains by promoting digital inclusion and encouraging the sustainable use of disruptive technologies for advancing growth. India, chairing the 5th meeting of BRICS industry ministers, expressed its desire to expand the horizon of the New Development Bank (NDB) in strengthening social infrastructure besides promoting the industrial sector. The ministers agreed to collaborate with the NDB. The multilateral financial institution became fully operational in 2016 with an aim to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies. BRICS ministers recognised the unprecedented impact of the Covid-19 pandemic particularly on the trade and industry, an official statement said. The virtual meeting was chaired by India’s minister of commerce and industry Piyush Goyal on Wednesday. It was attended by Chinese minister of industry Xiao Yaqing, South African trade minister Ebrahim Patel, Brazil’s deputy minister for economy Carlos Da Costa and Russian industry minister Denis Manturov.
Europe receiving 10M COVID-19 vaccine doses produced in South Africa (Devex)
Ten million COVID-19 vaccines partially produced in South Africa are being exported to Europe in August and September, according to an op-ed published in the Guardian by former U.K. Prime Minister Gordon Brown. This comes as many African nations have waited for access to adequate numbers of doses all year, with high-income countries hoarding vaccines rather than working to immunize the most vulnerable portions of society around the world. Many African nations have gone through third and fourth waves of the coronavirus pandemic and seen their health systems overwhelmed, as less than 2% of the continent’s population has been fully vaccinated.
Achieving inclusive growth through skills development (The Star, Kenya)
With a combined population of 1.4 billion, it is arguable that Africa’s greatest asset and potential lies in its people. However, for the continent to harness this potential and translate the same into productivity and economic growth, investments ought to be targeted at education and skills development. It is through these investments that Africa’s human capital potential – the stock of economically productive human capabilities – will be unlocked.
Human capital encompasses knowledge, health, skills, entrepreneurial talent, determination and other human traits that lead to success in endeavours. It comprises a crucial component of sustainable economic growth, as it is through human capital that ideas are generated and thereafter translated into goods and services that create value.
Per the 2018 Human Capital Index spearheaded by the World Bank, it is unfortunate to note that the region has only attained 40% of its human capital potential. While this may be viewed as a dire picture in part, a positive aspect would be to note that vast potential is yet to be tapped into. This presents opportunities to African governments, policy makers, educators and investors that can not be overlooked.
This opportunity is even more pressing in the present day - a world ravaged by the COVID-19 pandemic and a rising political class pushing against the globalisation movement toward more nationalistic policies and ideals.
Developing Country Blocs Issue Position Paper ahead of COP 26 (IISD)
A paper on the perspective of Least Developed Countries (LDCs) calls for stronger emissions cuts and financial compensation for the impacts they are expected to suffer from climate change. The paper was released in July 2021 ahead of the Glasgow Climate Change Conference (UNFCCC COP 26). The paper published by Power Shift Africa is supported by developing country negotiating blocs, including the Africa Group, the Climate Vulnerable Forum, Least Developed Countries, and the Alliance of Small Island States (AOSIS). According to Climate Action Network International, the five-point plan contained in the paper “has been developed and endorsed by Government leaders representing countries and UN negotiating blocs which make up more than half the nations of the world.”
Titled ‘COP 26: Delivering the Paris Agreement: A five-point plan for solidarity, fairness and prosperity,’ the position paper calls COP 26 a moment of “both maximum need and maximum opportunity.” At this Conference, governments that signed the Paris Agreement in 2015 “are due to deliver on promises made.” The paper cites the needs of nations most acutely threatened by climate change, and says COP 26 cannot succeed without delivering for the most vulnerable.
The paper indicates five areas in which governments must deliver on their promises – and particularly the governments whose countries “became prosperous through the untrammeled burning of fossil fuels.”
IATA survey reports global air cargo demand to increase next year
Airline chief financial officers and cargo chiefs were positive on cargo demand for the rest of the current financial year and the next year, according to an International Air Transport Association (IATA) survey done last month. As many as 73 percent of respondents reported that cargo volumes were higher than last year in Q2 as the rising number of passenger flights eased the pressure on belly cargo capacity.
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South Africa wants to introduce a vaccine passport – but there’s a catch (BusinesTech)
The Department of Tourism says that it wants to introduce a vaccine passport for South Africa. Still, several international and legislative hurdles need to be addressed.
“Even in some jurisdictions that have opted to apply this (passport), there isn’t yet a sense of uniformity. When we don’t have a single, standardised specimen, it is a little bit difficult to say which one is which. “If South Africa introduces (a passport), and there is access to information from the National Institute for Communicable Diseases (NICD) that confirms that a person has been vaccinated, the question is if that person arrives Lagos (Nigeria), what resources will they use to verify this information that is stored on a database in South Africa?”
He said that the government was also cautious about introducing a vaccine passport system that is discriminatory against certain groups of people. “When we reopen, and when everyone is starting to travel, it should not be discriminatory. And that principle has been reiterated time and time again.”
KRA gazettes Nairobi inland depot road a customs route (Business Daily)
The Kenya Revenue Authority (KRA) has gazetted the Cabanas- Nairobi Inland Container Depot (ICDN)-Southern Bypass road as a route for custom goods transiting Kenya. The designation of the area is set to reduce the time it takes truck drivers to clear their goods with customs department. Trucks are required to use designated routes while transporting goods to avoid penalties.
The designation of the new customs area will provide drivers with an alternative route that will save them distance travelled and penalties. Kenya’s customs clearance is known for long delays, forcing traders to incur huge costs.
Our development model is fine, graft is the spoiler (Business Daily)
There have been very interesting and welcome debates about what Kenya’s development model is and what it should be going forward. This is welcome because national development is a dynamic process that shifts with evolving human and national needs, changing demographics, and new knowledge/ technologies. Manifestos for parties aspiring to form new governments essentially aim at realigning development priorities to address specific needs of the time, and this is why five-year development plans and longer-term plans and visions have always been prepared.
What has also not changed and is unlikely to change is that rapid development is achieved when individual and community efforts are enabled by appropriate policies, regulations, relevant skills, efficient local and national value chain systems, and facilitative infrastructure. All these plus private sector partnerships.
Going forward national development should be a well lubricated partnership between the national government, county governments and private sector players, all targeting to increase national productivity and wealth. This way Kenyans will have an opportunity to participate and share in the form of grassroots production, enterprises, and employment. Productive sectors (agriculture, mining, manufacturing, SMEs) and general commerce have the greatest development multiplier effects. These should be prioritised and supported with equitable budgetary allocations, enabling regulatory frameworks and facilitative infrastructure. This is in addition to socio-infrastructure (education, health, recreation) which enhance the quality of lives.
Take advantage of AfCFTA to make Ghana an industrial hub - Osafo-Maafo charges local industries (Graphic Online)
Senior Presidential Advisor, Mr. Yaw Osafo-Maafo, has urged industries to reposition themselves to tap into the opportunities presented by the African Continental Free Trade Area (AfCFTA) to ensure Ghana becomes the centre of industrial establishments in Africa. He said the establishment of the AfCFTA Secretariat in Ghana presented a bigger market to local industries which they must exploit by targeting markets within the continent to help put Ghana on the map as an industrial country. That, he indicated, would help strengthen the national currency and reduce the high unemployment rate which had become a national security concern.
ZITF 2021 Postponed Again To September (NewZimbabwe.com)
THE 2021 edition for the Zimbabwe International Trade Fair (ZITF) initially slated for 20 – 23 July has been postponed to the 21 to 24 September, organisers have said.
This year’s edition is running under the theme ‘Showcasing the New Normal For Business and Industry: Realities and Opportunities’ However, in a statement, the ZITF board chairperson Busisa Moyo said the move was due to the extension of the national Level 4 lockdown by the government last Wednesday.
Africa
Northern Corridor gets $4.4m for trade projects (The East African)
The Northern Corridor secretariat has a $4.4 million budget for the 2021/2022 financial year to implement and complete pending projects, as was approved by the Council of Ministers recently. The budget, passed at the 33rd meeting, was recommended by the executive committee as the Corridor reports inefficiencies and challenges in achieving its full potential in promoting intra-regional trade and integration. Some of the key programmes still pending include the establishment of the $700 million Road Side Stations (RSS), developing conformity testing laboratories to improve efficiency along the Corridor and implementation of uniform levies as agreed on in 2015 in Kinshasa.
Lamu port plans to set up berths for special cargo (Business Daily)
The Port of Lamu will open dedicated berths to handle specialised cargo as the facility seeks to attract more business from the region. The move will see the recently commissioned port construct specifics berths for specialised products such as agriculture goods, livestock and crude oil. The port as planned, said Kenya Ports Authority acting chief executive officer John Mwangemi will not only serve the transshipment market, but all kinds of cargo destined for the hinterland and transit markets as already demonstrated. “As part of diversification of the port, there are plans to develop specialised berths to handle Agri-bulk, livestock, crude oil among other specialised products,” said Mr Mwangemi.
EAC, India pact to ease goods clearance at port
Goods imported from India can now bypass tight security checks at the port after the Asian country and the East African Community (EAC) entered into a Mutual Recognition Agreement (MRA).The MRA will benefit companies under the Authorised Economic Operators (AEO) Programme run by the EAC Partner States and coordinated by the EAC Secretariat since 2008.AEO is a preferential customs clearing programme that allows trusted customs clients to enjoy quick clearance on their consignments as the goods are not subjected to physical examination, except for random or risk-based interventions, hence saving on time and cost.
The AEO concept is derived from the World Customs Organisation (WCO) SAFE Framework of Standards, an instrument that was adopted by the WCO Council in 2005 to enhance facilitation and security of global trade. It works on the principle of compliance, trust and partnership whereby, economic operators that demonstrate compliance with customs supply chain security standards, are recognised as low-risk clients with whom customs enter into a partnership arrangement.
President of Seychelles tells SADC Summit that cooperation drives progress (Seychelles News Angency)
The values and principles of the Southern African Development Community (SADC) are guiding its members in the creation of a region in which cooperation, rather than conflict, drives progress, said President Wavel Ramkalawan of Seychelles in an address to the bloc's annual summit on Tuesday.
"Maritime security may seem to be a somewhat distant concept to some of us on the mainland. But let me reassure you all that the protection of our waters must be a concern to us all. The western Indian Ocean maritime route accounts for 12 percent of the global world trade and the protection of this important route means protecting our very livelihood," said Ramkalawan.
Ramkalawan said that the World Bank has estimated that the African Continental Free Trade Agreement will boost regional income by 7 percent or to the value of $450 billion. "In this regard, I am pleased to announce to this Summit that Seychelles is the latest SADC member to ratify the African Continental Free Trade Agreement. Being an import-dependent country, the agreement will be a positive tool to help us achieve our objectives, tackle inflation and lower the cost of living for our people," he added.
COMMUNIQUÉ of the 41st Ordinary Session of. SADC Heads and Government- 18 August 2021 (SADC)
Zim keen to host medicines body (The Herald)
Zimbabwe is vying to host the African Medicines Authority (AMA), which is a specialised continental body that is envisaged to contribute to improved regulation of medicines, medical products and technologies, including promoting access to quality and efficacious drugs. Speaking on the sidelines of the 41st Summit of SADC Heads of State and Government in Lilongwe, Malawi, yesterday, Foreign Affairs and International Trade Minister Ambassador Frederick Shava said the country wanted to “accommodate AMA”.
Tanzanian farmers reap the benefits of rapid agricultural mechanization (AfDB)
Farmers in Tanzania have benefited from rapid transformation, thanks to financial support from the African Development Fund to a national agricultural bank program. With the support, paddy rice farmers are reaping the benefits of improved access to farm inputs, including the supply of quality seeds and technology. “Nothing beats the power of a skilled, knowledgeable farmer who is equipped with the right information at the right time in the right season,” said Noelah Bomani-Ntukamazina, the Learning and Talent Development Manager at the Tanzania Agricultural Development Bank.
The Ghana Chamber of Mines is funding a study on the positioning of Ghana as the hub of mining support services in West Africa. In this direction, the Chamber has commenced a process to select a suitable consultant for the study.
Mr Eric Asubonteng, President of the Chamber, who announced this at a meeting with Parliament’s Mines and Energy Committee, said now was the time for Ghana to take its position to become a mining support services hub. Ghana is currently the leading gold producer on the continent, accounting for about a third of total gold production. He said the growth in mineral production in the sub-region provided Ghana with the advantage to become the hub of mining support services in West Africa. On building linkages, Mr Asubonteng said the Chamber recognized that the commercial relationships between the mining and non-mining sector had not been adequately researched.
Rare Earth Elements (REE) - Value Chain Analysis for Mineral Based Industrialization in Africa (AfDB)
In addition to export earnings, African countries aspire to derive greater economic value from their mineral resources. One of the most assured ways is through linkage development. Besides resource endowments, other critical factors include the international trade environment and its impact on a country’s ability to successfully leverage its competitive advantage. In view of this, a value chain analysis is a useful tool to define options and permit a more thorough assessment of policy trade-offs. It is within this context that the African Development Bank initiated a study of a group of minerals with immense significance for the future. This study assesses the opportunities and challenges of harnessing the Rare Earth Element (REE) value chain to contribute to both the global transition to a low carbon future and increased socioeconomic development across African countries.
Global
Goods Barometer hits record high, confirming strength of trade recovery (WTO)
The Goods Trade Barometer is a composite leading indicator providing real-time information on the trajectory of merchandise trade relative to recent trends ahead of conventional trade volume statistics. The latest barometer reading of 110.4 is the highest on record since the indicator was first released in July 2016, and up more than 20 points year-on-year.
Global goods trade has grown steadily since it registered a sharp decline in the second quarter of 2020 during the early days of the pandemic. The volume of merchandise trade was up 5.7% year-on-year in the first quarter of 2021, the largest jump since the 5.8% rise in third quarter of 2011. The latest barometer reading suggests that goods trade will see an even larger year-on-year increase in the second quarter once trade volume data for that period are available. The outlook for world trade continues to be overshadowed by downside risks, including regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries. COVID-19 continues to pose the greatest threat to the outlook for trade, as new waves of infection could easily undermine the recovery
For women in e-commerce, ‘entrepreneurship means freedom’ (UNCTAD)
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SA needs to up its export game, if it’s going to grow - economist | Fin24
As SA focuses on localisation strategies, it should make sure protection measures do not hamper export competitiveness, say economists. In recent months, South Africa has recorded trade surpluses which have exceeded market expectations, mainly off the back of a commodities boom and an economist expects a bumper crop to also help exports this year surpass 2020 levels. However, for this good performance to be sustained over the long term, and for the country’s share of world exports to climb back to 0.6%, from 0.4%, there must be significant policy and structural changes, according to economist Matthew Stern of DNA Economics.
N3 closures may hold security risk for food transporters (Food For Mzansi)
Eskom’s decision to close parts of the N3 in KwaZulu-Natal in the coming weeks may create a logistical nightmare for trucks that will transporting agricultural products along the highway. This may also affect the perishable goods being transported in the trucks and generate a security risk for those truck drivers as well. This is the view of Agbiz chief executive Dr John Purchase after Eskom announced that it will close parts of the N3, a key trade route between Durban and Johannesburg for two-hour intervals from Monday, 16 August until Wednesday, 1 September 2020 to install conductors.
Nigeria Imports N3.32trn Goods From Asia In 2021 – NBS (The Tide)
The National Bureau of Statistics (NBS) says Nigeria imported goods worth N3.32 trillion from Asian countries in the first quarter of this year. NBS said the import placed the region at the top of the list of Nigerian trade partners.
NBS also said Nigeria earned only N1.32 billion from exports to Asian countries, creating a trade deficit of over N3.3 trillion. The Bureau breakdown shows Nigerians imported motorcycles worth N117.65 billion from India and China in the first quarter of this year.
The NBS foreign trade statistics showed that trade with Asia countries constituted 48.45 per cent of Nigeria’s total import trade of N6.85 trillion. According to the NBS, Asia was followed by Europe with N2.47 trillion or 36.08 per cent, America with N827.8 billion or 12.08 per cent and Africa with N183.4 billion or 2.68 per cent.
Nigeria’s high-debt risk exposure – The Sun Nigeria
The World Bank’s damning report has listed Nigeria among top 10 countries in the world with high-debt risk exposure. This is contained in the bank’s International Development Association (IDA), which was among its audited Financial Year, 2021. Undoubtedly, the financial report has far-reaching implications for Nigeria. It is a timely warning to the government to be extremely cautious about borrowing. The immediate implication of the World Bank’s report is that Nigeria’s credit is at great risk due to the fear that it might not meet its contractual obligations.
Nigeria is rated fifth on the list with $11.7billion, while India is top on the log with $22billion. Six African countries are on the list, with a combined debt exposure of $51.4 billion. As at June 30, 2021, the 10 countries’ total debt exposures accounted for 66 per cent of IDA exposure. Bangladesh occupies second position in the inglorious list with $18.1billion, followed by Pakistan with $16.4billion IDA debt stock and Vietnam with $14.1billion. Other countries on the list in order of appearance included: Ethiopia with $11.2billion, Kenya, $10.2billion IDA debt stock; Tanzania, $8.3billion; Ghana, $5.6 billion and Uganda with $4.4billion IDA debt stock.
In all, Nigeria was elaborately mentioned in the World Bank IDA debt risk exposure report. According to the report, Nigeria’s undisbursed balance with the global financial institution was about $8.656billion as at June 30, 2021. The financial statement for the International Bank for Reconstruction and Development (IBRD), a subsidiary of the World Bank, showed Nigeria having a total of $589 million undisbursed balance, comprising $500million loans approved but not yet signed and $80million signed loan commitment. Besides, the financial statement for IDA revealed that Nigeria has a total undisbursed balance of $8.07 billion, consisting of $1.462 ban loans approved but not yet signed and $6.61billion signed loan commitment.
Indian High Commissioner to Nigeria, Mr Abhay on Sunday disclosed that India’s volume of bilateral trade with Nigeria has reached $14 billion in the first quarter of this year, representing about a 17 per cent increase from the same period in 2020. He said, though the bilateral trade witnessed disruptions in 2020 due to the COVID-19 pandemic, which ravaged the global economy, the trade is back on track and even witnessing steady progress. “The current trade volume is nearly $14 billion. I’m very happy to report that in the first quarter of this year, our trade has increased by nearly 17 per cent, compared to the first quarter of 2020.
Minister of Industrialisation and Trade Lucia Iipumbu said a number of export markets have been secured for Namibian exporters, including in Africa, and encouraged all local producers to seize opportunities of continental access. Iipumbu made these remarks when she officiated at the first Namibia Annual Exporter Awards last week. The awards were held in collaboration between the USAID Southern Africa Trade and Investment Hub (USAID TradeHub) and Namibia Manufacturers Association (NMA). “Hence, the call is now upon you, entrepreneurs, to work hard and utilise the opportunity made available for you to thrive globally and contribute to the country’s foreign exchange reserves through export earnings,” said Iipumbu.
Multinationals push for minimum Sh200 price for a kilo of tea (BUsinss Daily)
The multinational tea firms want to set the minimum price of tea at more than Sh200 for a kilo to break even, which will be Sh20 above the reserve price the government set on purchases of the smallholders’ produce. The plantation owners argue that the cost of production for a kilo of the beverage is between Sh190 and Sh200, way above the selling price at the auction. Kenya Tea Growers Association chief executive Apollo Kiarii said the multinationals produce has been fetching Sh150 a kilo on average in the last couple of months, implying that they have been operating at a loss. The companies announced last week that they would set a minimum price for their tea at the Mombasa auction to cut on losses occasioned by the low cost of the commodity in the market.
“Our cost of production is around Sh190-200 per kilo of made tea. The average price in the last few months of 2021 has been about Sh150,” he said. “The current prices offered at the auction, which are frequently below the cost of production, are not sustainable and unless something is done, the entire sector and the livelihoods it supports is at risk.”
Agriculture Cabinet secretary Peter Munya introduced the minimum price at the auction for Kenya Tea Development Tea Agency (KTDA) farmers produce last month at Sh183, citing low value for the beverage amid high cost of production.
Can Kenya defeat poverty by 2030? What the global clock indicates (Business Daily)
Like other African countries emerging from colonial rule, Kenya’s independence leadership proclaimed a development focus on the elimination of three ills: poverty, ignorance and disease. The last two have been addressed, with mixed success, through program or project-specific education and health initiatives over time. But poverty is more complex; its reduction, or eradication, is a higher-order task.
Kenya’s most recent official poverty data was published in the 2015/16 Kenya Integrated Household Budget Survey, which updated the earlier 2005/06 one. The overall poverty headcount fell from a CPI-adjusted 46.8 percent in 2005/06 to 36.1 percent in 2015/16.
Currently, only Kenya and Rwanda have positive poverty escape rates, while Burundi stands out as the only place where the absolute poverty headcount will be higher in 2030 than it is today.
Kenya to increase cash threshold for foreign investors (Business Daily)
Kenya has lined up drastic changes to its investment promotion law in a bid to seal loopholes exploited by foreigners to compete with local small traders and commit crimes such as money laundering. Interior Cabinet Secretary Fred Matiang’i says the ministry will be seeking parliamentary approval of amendments to the law, including raising the minimum investment threshold for foreigners. The Kenya Investment Promotion Act requires foreigners to have a minimum of $100,000 (Sh10.92 million) to obtain an investment certificate that qualifies them for incentives such as investment deductions and tax rebates.
The Kenya Investment Authority (KenIvest) has proposed a flexible minimum foreign investment threshold, depending on the capital requirement of different sectors based on feedback from stakeholders during engagements that led to the development of the country’s first investment policy, launched in November 2019.
Tanzania Exports To Kenya Dwarf Its Imports (Taarifa Rwanda)
As Rwanda’s Commercial Court awaits to arbitrate a dispute between shareholders in an energy company REFAD Rwanda Limited, Taarifa has learned that one party (Omnicane- a Mauritian sugar company) is allegedly carrying out activities that can be described as prejudicial to the court process. Early this year, REFAD Rwanda Limited, a firm investing in energy production was dragged to court by one of its shareholders after noticing that his shares had been mysteriously trimmed to an insignificant value.
Cairo-New Delhi trade exchange grows to $1.10bn in Q1 2021, despite COVID-19 impact: Indian Ambassador (Daily News Egypt)
Trade exchange between India and Egypt increased to $1.10bn in the first quarter (Q1) of 2021, compared to $ 968.6m in Q4 of 2020, which shows a steady improvement, and promises optimistic trade figures in the future, according to India’s Ambassador to Egypt Ajit Gupte. India’s exports to Egypt increased to $628.2m in Q1 of 2021, compared to $575m in Q4 of 2020, while Egyptian exports to India increased from $393.6m to $474.2m in the same comparison period.
Tunisian exports of manufacturing industries rise 28.2 in H1 2021 (TAP)
Exports of manufacturing industries have increased by 28.2% to 20.6 billion dinars in the first half of 2021, from 16 billion dinars during the same period last year, according to data released by the Agency for the Promotion of Industry and Innovation (APII). Most manufacturing industries saw growth ranging from 14 to 81%, according to APII. The value of the reported industrial investments (investment intentions) amounted to 1310 MD until the end of June of this year, against 1648,2 MD during the same period of the previous year.
Côte d’Ivoire: 2021 Article IV Consultation reports (IMF)
Press Release; Staff Report; Informational Annex; Debt Sustainability Analysis; Selected Issues; and Statement by the Executive Director for Côte d’Ivoire
Côte d’Ivoire has demonstrated strong resilience to the pandemic. While economic growth is expected to have dropped by some 4½ percent compared to the pre-COVID-19 forecast, it is still estimated at 2 percent in 2020, ranking among sub-Saharan Africa’s (SSA) best performing frontier market economies. Economic performance and resilience were underpinned by strong pre-crisis fundamentals, a rapid policy response, a relatively lower dependency on sectors that have been typically hit the hardest elsewhere, as well as the support of the international community including the IMF.
ECA supports Mali efforts to strengthen migration policy(UNECA)
The Subregional Office for North Africa of the Economic Commission for Africa held on Wednesday August 12, 2021, a workshop on the issues of migration statistics and migrant skills recognition in Mali. The meeting aimed to present the work plan and methodology of studies on both topics, consult with the working group’s and with national and international partners for a better understanding of national migration policies.
In her opening speech, the Secretary General of the Ministry of Malians Abroad and African integration Ms. Tangara Néma Guindo stressed the importance of improving the global management of migratory movements: “the highest authorities in our country have made this a top priority. This is why Mali has participated in all phases of negotiations of the Global Compact for Safe, Orderly and Regular Migration,” she said.
About 80% of African migration takes place within the continent presently. Unfortunately, most African countries do not have sufficiently robust migration policies, nor data collection systems that can provide them with the information needed for the design of fact based and therefore more effective policies. Likewise, while migrant integration has always happened naturally due to Africa’s well-known tradition of hospitality, there is a need now for it to become better structured, especially through better skill recognition, so migrants can actively contribute to their host countries’ development, said Sarah Boukri, migration Program Manager at the ECA Office for North Africa.
Africa
Three Reasons to Be Worried About Africa’s Progress (Bloomberg)
One of the saddest stories of the year has gone largely unreported: the slowdown of political and economic progress in sub-Saharan Africa. There is no longer a clear path to be seen, or a simple story to be told, about how the world’s poorest continent might claw its way up to middle-income status. Africa has amazing human talent and brilliant cultural heritages, but its major political centers are, to put it bluntly, falling apart. Three countries are more geopolitically central than the others. Ethiopia, with a population of 118 million, is sub-Saharan Africa’s second-most populous nation and the most significant node in East Africa. Nigeria has the most people (212 million) and the largest GDP on the continent. South Africa, population 60 million, is the region’s wealthiest nation, and it is the central economic and political presence in the southern part of the continent. Within the last two years, all three of these nations have fallen into very serious trouble.
This study focuses on: analyzing the different international agreements regulating trade in services in Africa ( covering at least one mode of supply); determining whether and to what extent, in addition to commitments liberalizing barriers to trade in services, African countries have already used standstill and ratchet mechanisms in their negotiations on trade in services; and if that is the case, determining whether and how much mechanisms could be adapted to facilitate the objectives of the AfCFTA protocol on trade in services.
Devise Strategies to finance businesses to grow towards AfCFTA - AGI (BUsinessGhana)
Mr Tsonam Cleanse Akpeloo, Accra Regional Chairman, Association of Ghana Industries, has called for strategies to help find pathways to grow businesses towards the Africa Continental Free Trade Area Agreement (AfCFTA). He said the Association believed that the challenge of industry currently was access and cost of capital to businesses. Mr Akpeloo in an interview with the Ghana News Agency said, “We are also aware that the government is coming up with the establishment with a Developing Bank to support industries and I think it is a great intervention for industrial growth.”
Next Parliament sitting set to ratify Africa’s trade treaty (The Citizen)
Tanzania is waiting for the September House to ratify the African Continental Free Trade Area (AfCFTA) which is touted as a game changer in the continent’s trade, The Citizen can report. Industry and Trade deputy minister Exaud Kigahe told The Citizen yesterday that the cabinet had in last week approved the document, ready for taking the same to Parliament slated to kick off on August 31 this year. The question of the AfCFTA, the agreement which focuses on removing non-tariff trade barriers in the continent, he expounded, would be on top of the list of agenda in the august House.
Auto policy, key to Nigeria’s gain from AFCFTA – Whitfield, Nissan boss (Daily Sun)
Mike Whitfield, managing director of Nissan’s regional business unit in Africa, has urged Nigeria and other African nations to put in place automotive industrial development plans towards unlocking the economic benefits of the African Continental Free Trade Agreement (AfCFTA).
Whitfield, president of the Association of African Automotive Manufacturers (AAAM), made the plea in a recent interview on the state of the automotive industry in Nigeria and Africa generally. Though he affirmed AfCFTA as the world’s last automotive frontier, Whitfield lamented that fewer vehicles are owned in Africa than anywhere else in the world. According to him, while Africa accounts for only 1.3 per cent of the world’s vehicles, the continent comprises 17 per cent of the globe’s people with motorisation rate is 42 per 1,000 individuals, compared to the global average of 182.
He said: “The biggest problem is that 80 per cent of the African vehicle fleet is second-hand, imported from the UK, the US and Japan.
“Quite frankly, the vehicles that are brought into the continent are not made for either our road severity or the quality of fuel that is available. As a result, the people who sell them have to alter the engines by disabling the sensors and removing the catalytic converters, creating vehicles that become the worst polluters on the road.
Afreximbank partners with YALDA to enhance youth involvement in the implementation of the AfCFTA (Afreximbank)
African Export-Import Bank (Afreximbank) has announced funding and technical support to the Youth Alliance for Leadership and Development in Africa (YALDA), an international nonprofit organisation that aims to contribute to the development of Africa’s young leaders and enhance youth participation in the implementation and achievement of the African Continental Free Trade Area (AfCFTA). The support will cover YALDA’s activities and events, which aim to provide a platform for African youth both within Africa and in the diaspora. These activities encourage them to participate in the implementation of the AfCFTA under a campaign named the ‘Umoja Africa Campaign – Youth Contributing to the Implementation of the AfCFTA’.
SADC truckers threaten Moza blockade (The Southern Times)
Truck drivers from across Southern Africa are threatening to blockade Mozambican border posts, in protest at corrupt behaviour by the Mozambican traffic police, according to a report in the Maputo daily Noticiasa. The Association of Truck Drivers of the Southern African Development Community (SADC) made the threat in a letter to the Sofala Provincial Office for the Fight Against Corruption. The association claims that the behaviour of the traffic police on the roads from Beira to Zimbabwe and to Tete “is intolerable, and, if it continues, the truck drivers will have no choice but to station their vehicles at the border”.
“Regardless of whether the transporters are Mozambicans or foreigners, illicit charges constitute deplorable behaviour, which should be fought against through denunciations to the anti-corruption offices,” he said.Matsinhe called on the police and other sectors of the public services to draw up strategies for intervening to halt traffic police corruption.
The Republic of Malawi attaches greater importance to the principles, ideals, values, goals and aspirations of Forefathers of the Southern African Development Community (SADC) as encapsulated in the SADC Treaty, Honourable Eisenhower Nduwa Mkaka, Chairperson of the SADC Council of Ministers, and Minister of Foreign Affairs of the Republic of Malawi, has said. In his acceptance speech at the opening of the SADC Council of Ministers in Lilongwe, on 13 August 2021, Hon. Mkaka said his country is committed to continue spearheading the implementation of programmes and projects derived from the SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030 as guided by the SADC Vision 2050. “We are also resolved to sustaining the implementation of programmes drawn from the theme of the Republic of Mozambique for the 40th SADC Summit titled ‘SADC: 40 Years Building Peace and Security, and Promoting Development and Resilience in the Face of Global Challenges’,” he said.
“We will need to muster as a Region and have coordinated efforts to respond to external shocks that have caused devastating reversals on economic gains achieved by SADC. This meeting provides us with a rare opportunity to discuss the socio-economic hurdles in the Region and thrash out workable solutions to rebound our economies on the sustainable path for inclusive and economic growth,” he said.
‘As SADC, we can overcome anything’ (The Southern Times)
The emergency of COVID-19 pandemic will not only require us to redouble our efforts in industrialization but also embrace digital technological and knowledge transfer, in order to attain these ambitious goals so as to maximise new market opportunities brought forth by the operationalisation of the African Continental Free Trade Area (AfCFTA).
EAC, India ink deal to ease business (The Star, Kenya)
Traders from the East African Community (EAC) would benefit from faster clearance of their goods and lower costs of running their business following the signing of a Joint Action Plan between the EAC and the Government of India. The Joint Action Plan will pave the way for a full Mutual Recognition Agreement (MRA) between the two parties. The MRA once realised, will benefit companies under the Authorised Economic Operators (AEO) Programme run by the EAC partner states under the coordination of the EAC Secretariat since 2008.
Speaking on behalf of the Government of India, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Ajit Kumar, emphasized the crucial role of having in place a robust, safe and largely digitized system, on one hand, and a pool of trusted and validated trading entities on the other hand. Kumar said that a fully digitized system and valid trading entities would guarantee security in the entire supply chain in trading across borders, adding that an AEO-MRA agreement was one such endeavour.
This timely MRA will enable trade facilitation in the region under the AEO programme while in India and vice versa, enabling fast clearance of their goods and as a result saving in costs and time.
Safaricom tops EA’s list of most valuable firms (The East African)
Kenyan companies dominated East African and Mauritius most valuable brands in the three months to June 30, with Safaricom being the highest prized brand in the region. According to the latest quarterly market report by analysts at African Financials Group titled The East Africa & Mauritius Top 30 Companies, Kenya leads with 14 companies followed by Mauritius with eight, Tanzania with six, Uganda and Rwanda with one each.
According to the report, Safaricom is the most valuable brand in East Africa and Mauritius with a market capitalisation of $15.39 billion followed by the Mauritius Commercial Bank ($1.59 billion ), Equity Bank ($1.53 billion), Tanzania Breweries ($1.38 billion ), East African Breweries Ltd ($1.32 billion), KCB Bank ($1.26 billion), Co-operative Bank ($750 million), Tanzanian Vodacom ($744 million), Tanzania Cigarette ($733 million) and Mauritian Ireland Blyth ($633 million). Other valuable brands in the region include Tanzania’s National Microfinance Bank ($505 million), Absa Kenya ($499 million), BAT Kenya ($417 million), Stanchart Kenya ($413 million) and Stanbic Uganda ($379 million).
Africa’s rapidly urbanising cities a money-making opportunity for food producers (How We Made it in Africa)
Africa’s export-oriented farmers and food producers may want to look at markets closer to home as Africa’s rapidly urbanising cities fuel a voracious appetite for food. Would-be young farmers might also want to take note. Farmers in Africa can expect better days as the continent’s fast-growing cities guarantees and expands the market for their agricultural produce, according to a report that digs deep into Africa’s food chains.
Africa needs more funds to fight COVID-19 (Africa Renewal)
The AU COVID-19 Response Fund was created by the Africa Union as an emergency response to the pandemic. It was created essentially for the continent to have a whole-of-Africa approach to the pandemic. We have 55 fragmented economies. And if you take your mind back to April last year, the big issues were personal protective equipment (PPE) and test kits, and the big economies were buying them all up. The manufacturers were not going to listen to small economies placing orders of a few million or thousands of dollars. So, the response fund was intended to help us deal with such issues.
As soon as we were created, we set up the structures to make it possible for us to operate in an effective way. We were asked to intervene in two areas: to help mobilise funds and to help in the utilisation of the funds. So we quickly created two key subcommittees for these. Of course, we are serving essentially the Africa Centres for Disease Control and Prevention (CDC).
We don’t have sufficient funds because as we get the money, we use it. On mobilisation, I think we have a healthy pipeline of pledges that we should collect. We organised a fundraising event with the private sector participating. And many of them have made pledges. What we’re doing now is making sure that we convert the pledges to cash—pledges from governments, from development partners, from the private sector.
Africa-China trade slowed by container shortage as Covid-19 hits shipping (South China Morning Post)
China is Africa‘s largest trading partner, exporting products such as garments, electronics and construction equipment to many countries on the continent, but traders are facing cargo delays and steep import costs during the Covid-19 pandemic. Observers blame this on an acute shortage of shipping containers, with more vessels prioritising China-Europe and trans-Pacific trade routes before serving other markets including Africa. Importers from East Africa say their orders are subject to delays of weeks or months.
Analysts: China Expanding Influence in Africa Via Telecom Network Deals (Voice of America)
Telecommunications networks funded and built by China are taking over Africa’s cyberspace, a dependence that analysts suggest puts Beijing in a position to exert political influence in some of the continent’s countries.
Huawei, the world’s leading seller of 5G technology and smartphones, is seen by the U.S. and other countries as “beholden to the Chinese government, which could use the company” for spying, an accusation Huawei denies, according to the Council on Foreign Relations.
The Center for Strategic and International Studies (CSIS), a think tank in Washington, reported in May that worldwide, “the majority of [Huawei’s] deals (57%) are in countries that are middle-income and partly free or not free.” The CSIS report added that Huawei’s cloud infrastructure and e-government services are handling sensitive data, services that “could provide Chinese authorities with intelligence and even coercive leverage.”
The African Union has set the goal of connecting every individual, business and government on the continent by 2030, an expansion that is supported by the World Bank Group.
The scale of need for data centers to meet population growth “is astoundingly significant,” Guy Zibi, principal analyst at Xalam Analytics, who is tracking the African data center boom, told the website DataCenterKnowledge.
Corporate Council On Africa Hosts 13th US-Africa Business Summit – OpEd (Eurasia Review)
Corporate Council on Africa (CCA), the leading reputable U.S. business association with a strategic focus on connecting business interests between the United States and Africa, has held the 13th U.S.-Africa Business Summit. The U.S. government and private sector leaders together African political and corporate business leaders have been working consistently over these years to share insights on critical issues and policies influencing the U.S.-Africa economic partnership.
The three-day Summit held virtually included 5 plenaries and 12 panel sessions highlighting key economic recovery strategies and focused on a range of sectors and issues, including health and vaccine access, trade, digital transformation, infrastructure, financing, small and medium scale enterprises, tourism, women’s leadership and investment opportunities in various African countries.
Global
South China Sea, Xinjiang muddy the waters of WTO fishing subsidies debate (South China Morning Post)
Targeted import bans by the United States on seafood caught by Chinese owned vessels over forced labour claims, while reflecting Washington’s increasing pressure on Beijing over the hot button issue, show that US-China tensions have spread into an area that is crucial for the World Trade Organization (WTO) to restore its prestige.
Under growing scepticism and setbacks, the global trade body was hoping to strike a multilateral pact over fishing subsidies by the end of 2021 to bring at end to a two-decade deadlock.
However, the discord between the world’s two largest economies could now become a “flashpoint” that threatens the talks as they enter the final stretch, analysts have warned.
“The remaining effective time for negotiations is not enough, differences among major members are apparent, it is still very difficult to conclude the fisheries subsidies [talks] at an early date, many experts in Geneva are not optimistic,” said Lu Xiankun, a former senior Chinese trade negotiator at the WTO, at the end of July.
BRICS for partnership in strengthening agro-biodiversity for food security (Business Standard)
BRICS nations have pitched for closer ties in strengthening agro-biodiversity to ensure food and nutrition security, the government said on Saturday.
The issue was discussed in the working group of agriculture represented by top agriculture officials from Brazil, Russia, India, China and South Africa (BRICS) virtually on August 12-13. The group stressed on having closer ties in strengthening cooperation and research in the field of agriculture, an official statement said. In the meeting, the group shared that the United Nation has noted BRICS countries are well positioned to take a leading role in helping to achieve the objectives of the 2030 Sustainable Development Goals to eradicate hunger and poverty. The strong agricultural research base in BRICS countries and the need to harness and share knowledge, facilitate transfer of technologies from lab to land to provide improved solutions for enhanced productivity, especially in the face of climate change, maintaining agro biodiversity and ensuring sustainable use of natural resources was acknowledged, it added.
The world is making billions of Covid vaccine doses, so why is Africa not getting them? | Gordon Brown (The Guardian)
In a shocking symbol of the west’s failure to honour its promise of equitable vaccine distribution, millions of Covid vaccines manufactured in Africa that should have saved the lives of Africans have been shipped to Europe in recent weeks. Indeed, this month and next, I have learned from African leaders that about 10m single-shot Johnson & Johnson (J&J) vaccines filled and finished at the Aspen factory in South Africa will be exported to Europe, at the very time that Africa is grappling with its deadliest wave of Covid-19 infections yet.
But vaccines are not yet available to meet Africa’s vaccination target, set at 60% of adults, or to cover that other 30% people who were promised vaccines provided by the west. As a result, I am told the African Union has had no choice but to open negotiations with China to buy at least 200m Chinese-made vaccines. The hold-ups are now so serious that a vaccine “war room” has been created by the IMF, World Bank, WHO and World Trade Organization (WTO) to help track, coordinate and advance the delivery of vaccines. Despite this, only political leadership from the G7 countries, which have negotiated vaccines far in excess of their population numbers, will ensure that all continents receive an adequate supply. The world will manufacture around 6bn more vaccine doses by December and ramp up production by many billions more next year. This supply could be sufficient for every country to meet the 60% vaccination target by next summer. Problems that will perpetuate the inequalities in vaccine distribution can only be resolved with a level of global coordination that has so far been absent among G7 and G20 leaders.
As migration is rising, so are border barriers | DW | 13.08.2021
Although thousands of miles apart, Lithuania and the Dominican Republic have something very specific in common: Due to increasing migration from their respective neighboring countries, both recently decided to tightened their borders. Both countries are showcases of an ongoing trend: The world today is seeing ever more refugees and asylum-seekers than two decades ago. Political conflicts and the effects of climate change are among factors forcibly displacing people around the world. And the situation looks set to continue along this path.
The effectiveness of border barriers against irregular migration, illegal trade or terrorism attacks is not always easy to assess, since there are often multiple interlinked factors at play.
Governments mostly cited illegal immigration as the main reason for building border walls, followed by illegal trade (i.e. the smuggling of goods, and trafficking of people or drugs) and terrorism concerns, according to a study headed by the Delàs Center for Peace Studies that analyzed border walls built between 1968 and 2018.
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20 products identified as key drivers for KZN economy (IOL)
The KwaZulu-Natal government has identified 20 products with “huge export potential” as part of a new strategy to develop its economy, Premier Sihle Zikalala said. The products will be traded across the top 21 countries on the continent through the newly promulgated Africa Free Continental Area Agreement (AfCFTA), Zikalala told a group of high profile foreign delegates in Gauteng province on Thursday. A copy of his speech was made available. “We have no doubt that this strategy will open up opportunities to grow the market share for KZN companies in already established African markets for their matured products or less matured products and a conduit into entering existing African markets with new products,” Zikalala said in his opening remarks.
South Africa’s localisation policy may rile global trade partners and break international law (Daily Maverick)
South Africa’s localisation plan, which aims to reduce imports by at least 20% by channelling government procurement to locally produced goods, risks contravening international trade laws and triggering a backlash by the country’s trade partners, according to SA law firm Herbert Smith Freehills. In a web presentation to the European Union Chamber of Commerce and Business Unity South Africa (Busa), Herbert Smith Freehills partner Peter Leon said the localisation policy could trample international and regional trade deals like the World Trade Organization’s (WTO’s) General Agreement on Tariffs and Trade (Gatt).
South Africa’s trade balance is heavily skewed towards exporting raw materials and importing finished manufactured goods, although the Covid-19 impact on production and supply chains globally has seen imports fall off dramatically. The top three importers to South Africa are China, the US and Germany, accounting for more than 35% of total imports worth around R1.1-trillion in 2020. Re-industrialisation has failed to take off, with South African manufacturers struggling to compete with international competitors with higher levels of technological know-how and cheaper input costs. That inspired Pretoria to explore localisation to nurture local industries while running the risk of riling its powerful trade partners and stalling foreign direct investments.
South Africa – United States Joint Statement following the Working Group on African and Global Issues (US Embassy in South Africa)
South Africa hosted a successful meeting of the South Africa – United States Working Group on African and Global Issues (WGAGI) on 02 August 2021, at the Department of International Relations and Cooperation (DIRCO) in Pretoria. The WGAGI, which forms part of the annual structured engagements between South Africa and the United States, focuses on Africa and global issues of common concern with a view to exploring opportunities for bilateral and multilateral collaboration. The two delegations reinforced their commitment to working with and strengthening the African Union in light of the unique role it can play to strengthen democratic institutions, further lasting peace and security, propel economic growth, trade, and investment, and promote health security, particularly in the context of COVID-19.
First phase of Beitbridge Border Post upgrade nears completion (The Herald)
Work on the massive US$300 million modernisation of Beitbridge Border Post into a world class commercial hub has gathered momentum with major developments under the first phase of the project almost complete. The modernisation of Beitbridge is one of the key projects being undertaken by the Second Republic to promote the ease of doing business and trade facilitation. Civil works are being rolled out in three phases among them pre-commencement works (phase one), internal border infrastructure development (phase two) and outside border infrastructure development (phase three). The project will see new terminals being built for each vehicle category. They will include new vehicle parking areas and feeder roadways. New cargo scanning equipment will be installed to allow for faster inspection of cargo and detection of fraud, contraband and potential threats; explosives, radioactive materials, among others.
Completion of Karuma Dam pushed to 2022 (The East African)
The completion date for Karuma Dam – Uganda’s flagship $1.7 billion hydropower project – has been pushed to June 22, 2022 following routine inspection on June 25. “The remaining works may look small, but are enormous in terms of what needs to be rectified,” UEGCL board chairperson Proscovia Njuki told The EastAfrican. “We are impressed that the contractor has made overall progress and has also started working on the remedial works,” said Harrison Mutikanga, UEGCL’s chief executive officer. Initially, the project was to be commissioned in December 2019, but it missed the target date, and an extension of 12 months was granted, which the contractor again failed to meet in December last year after UEGCL raised concerns about quality issues and more defects.
Mozambique: International truckers threaten blockade (AIM)
Truck drivers from across southern Africa are threatening to blockade Mozambican border posts, in protest at corrupt behaviour by the Mozambican traffic police, according to a report in Thursday’s issue of the Maputo daily “Noticiasa”. The Association of Truck Drivers of the Southern African Development Community (SADC) made the threat in a letter to the Sofala Provincial Office for the Fight against Corruption. The Association claims that the behaviour of the traffic police on the roads from Beira to Zimbabwe and to Tete “is intolerable, and, if it continues, the truck drivers will have no choice but to station their vehicles at the border”.
Trade balance registers USD 8,381.9 million surpluses (ANGOP)
The Secretary of State for Planning, Milton Reis, who was speaking at the usual briefing of the Ministry of Economy and Planning (MEP), said that the figure represents an increase of 40.2 percent. He noted that this was the result of a 25.0 percent rise in exports, influenced by a 28.4 percent rise in exports from the oil sector. According to Milton Reis, the stock of Gross International Reserves stood at US$15.1 billion, against US$14.9 billion at the end of 2020, representing an increase of 1.8 percent, equivalent to 11.4 months of imports of goods and services.
How Crypto Can Help Nigeria’s Economy (Yahoo Finance)
Africa’s leading crude oil exporter and largest, most populous country – has about 40% of its population living below poverty levels. The COVID-19 pandemic caused falls in the output of goods and services, which negatively affected the economy and caused thousands of jobs to be lost. To strengthen the development of Africa’s largest economy, Nigerian regulators and stakeholders must tap into the potential inherent in crypto to improve such unimpressive economic data. A crypto economy can help Nigerians who lack bank accounts deal with many of the challenges of international trade.
Africa
Traders from the East African Community (EAC) stand to benefit from faster clearance of their goods and lower costs of running their business following the signing of a Joint Action Plan between the EAC and the Government of India. The Joint Action Plan will pave the way for a full Mutual Recognition Agreement (MRA) between the two parties. The MRA once realised, will benefit companies under the Authorised Economic Operators (AEO) Programme run by the EAC Partner States under the coordination of the EAC Secretariat since 2008. “Besides the optimism, however, we are aware that the path to an MRA is usually lengthy, meticulous and tedious. The signing of the Joint Action Plan which we are doing today, signals an important milestone in this journey that we have started, and we are delighted to undertake it,” said EAC Director General for Customs and Trade, Mr. Kenneth Bagamuhunda.
EAC secretariat keen to protect local industries, grow trade (The Star, Kenya)
Whilst consensus has been achieved on the lower tariff bands of CET, it is yet to be achieved for the upper tariff band. In Kenya, manufacturers holds that Kenya should adopt 35 per cent as the fourth tariff band, to support the industrialisation agenda. “We are looking at a comprehensive review of the EAC Common External Tariff (CET) to be concluded by December,” Mathuki said. He is also leading the push to remove Non-Tariff Barriers (NTBs) which are hindering growth of intra-EAC trade, where some countries have been playing protectionism on their markets. NTBs generally include laws, regulations and administrative and technical requirements (other than tariffs) imposed by a partner state, whose effect is to impede trade.
Rwanda to host headquarters of AU backed e-commerce platform (The New Times)
Rwanda will host the continental headquarters of Sokokuu, an e-commerce platform aimed at enhancing the role of Africa’s small and medium enterprises in inter and intra-African trade. This emerged following a meeting of President Paul Kagame and former Ethiopian Prime Minister, Hailemariam Desalegn, who is the Patron for The Africa Electronic Trade Group and Mulualem Syoum, the Group’s CEO & Board Chair. The Africa Electronic Trade Group is developing a comprehensive e-commerce platform, Sokokuu, to enhance the role of Africa’s small and medium enterprises in inter and intra-African trade. Rwanda will host the Group’s continental headquarters working closely with regional offices. The A-eTrade Group works to empower the African digital economy. This work focuses on a trading platform and capabilities that boost intra-African and inter-African trade.
‘An economic calamity’: Africa faces years of post-Covid instability (The Guardian)
Analysts and experts are warning of many years of instability across Africa, possibly leading to wars and political upheavals, as the economic impact of the Covid-19 pandemic deepens across the continent. Though many have been encouraged and inspired by the response of African countries to the pandemic, led by the newly created African Union’s Centres for Disease Control and Prevention, the economic effects of the pandemic have been drastic. Ahunna Eziakonwa, the director of the United Nations Development Programme’s regional bureau for Africa, said African countries had been disproportionately hit by the economic shock from Covid-19.
The Partnerships for African Vaccine Manufacturing (PAVM) was launched by H.E Felix Tshisekedi, Chair of the African Union and President of the Democratic Republic of Congo, during a virtual summit hosted by the African Union Commission (AUC) and the Africa Centres for Disease Control and Prevention (Africa CDC) on 12-13th April 2021 under the theme “Expanding Africa’s Vaccine Manufacturing for Health Security: Building back better, bolder and bigger.” Strong political commitments were made to drive momentum for the African Union’s bold vision to manufacture about 60% of its vaccines on the continent by 2040, an initiative that will be led by Africa CDC.
Africa: Why Investing in Emerging Markets is a Win for Investors and African Companies (allAfrica)
Most money, most capital in the world, lies in the private sector. Most invested money lies in the pension fund systems, the sovereign funds, and endowments, and most of that money is in the U.S. Accelerating U.S. pension fund money, endowment money, foundation, and family office money into Africa can transform the whole continent. If it is done well, through the right companies, and with responsible fund managers, then this will catalyze the continent. Africa today is in a place where the basics are there in most of the countries. There is an entrepreneurial mentality. Throughout Africa, there are ecosystems of startups. Look at Nigeria, technology companies are doing extremely well there.
Chilima asks Sadc countries to transition to digital economies in face of Covid-19 (Nyasa Times)
Malawi’s deputy leader, Saulos Chilima, has called on Southern African Development Community (Sadc) member states to consider adopting recommendations he made in his public lecture delivered on Thursday at the Bingu International Convention Centre (BICC) on the sidelines on the 41st Ordinary Summit of Sadc Heads of State and Government. “There is an urgent need for serious investment and budgets in the Sadc region should support ICT as a transition to digital economies. Sadc member states should swiftly adopt online marketing for the tourism and other industries and the use of internet and mobile money platforms to create employment,” Chilima said.
BAT explores new export markets as Kenyan sales dip (Business Daily)
Kenya is seeking new exports markets to compensate for lower consumption of cigarettes in Kenya. “Our objective is to continue increasing share of exports looking at the current regulatory framework. We expect that over the medium to long term period revenue from the export stream will continue to increase with the investment we are making,” said BAT finance director Philemon Kipkemoi. BAT supplies 15 countries with cigarette and cut rag tobacco from its Kenyan plant. Export revenues hit Sh13.7 billion last year, representing 54.2 percent of Sh25.3 billion total revenues especially due to growth in volumes to Egypt and Sudan. The revenues as a percentage of total earnings increased to 54.2 percent last year from 44.3 percent in 2015, while Kenyan sales has dropped to 48.8 percent from 55.7 percent over the period.
New web portal to boost tourism in East Africa (The East African)
The East Africa Tourism Platform (EATP) has introduced a regional web portal as part of efforts to promote the region as a single tourist destination amid the ravaging effects of covid-19 pandemic. The region’s tourism private sector body has launched the www.visiteastafrica.net portal that will enable tourists to plan and book tourist packages and offers from service providers of the region’s various tourist attractions in Kenya, Rwanda and Uganda.
Skills for Africa’s Economic Growth (AUDA-NEPAD)
Africa is known as the fastest growing labour force in the world yet needs to create 15-20 million jobs per year. The ‘Africa Creates Jobs’ initiative that was created in 2017 is a dialogue platform to develop a continental response to youth employment and skills promotion. Piloted by the African Union Commission (AUC), AUDA-NEPAD with support of the German Development Cooperation (GIZ) and European Union (EU) under the Skills Initiative for Africa programme (SIFA), its objective is to mobilize and strengthen partnerships to transform skills development delivery and employment prospects for youth. The East Africa Regional “Africa Creates Jobs (ACJ)” will hold the first workshop under the theme “Skills for Africa’s Economic Growth” virtually on 16 and 17 August 2021.
African Union Commemorates the African Day of Seas and Oceans (African Union)
The commemoration of the 2021 edition of African Day of Seas and Oceans was held in Mahe, Republic of Seychelles under the theme “Transforming the challenges of African seas and oceans into opportunities”, with the objective of raising awareness on the critical role played by Africa’s oceans and seas in attaining sustainable development within the framework of Agenda 2063 and the 2030 Sustainable Development Goals (SDGs). In his keynote address H.E Mr. Wavel Ramkalawan, President of the Republic of Seychelles and African Union Champion for Blue Economy called for a push for continued scientific research; for oceans and seas not only to have ecological, nutritional and economic values, but also to recognise their role as key climate regulators that influence global weather systems. “Our nations need to know the ripple effects of human interventions specially when there is over exploitation and sustainability is threatened. Our ‘blue’ blind spot or ocean-related scientific knowledge gaps need to be filled.”.
Africa’s Blue Economic potential under serious threats (Ghana Business News)
Ambassador Josefa Sacko, African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment (ARBE), says Africa’s Blue Economy is under serious threats largely due to governance, capacity issues, and pollution. “The huge opportunities around Africa’s Blue Economy can change the narrative for the continent as an engine for socio-economic development and industrialization. “It can further create job opportunities and improve livelihoods for the teeming population in the continent, particularly for women and youth,” Ambassador Sacko added.
To Tackle China, the US Should Invest More in Africa (Independent Women’s Forum)
The Biden administration has requested that Congress approve an $80 million package to finance the newly launched Prosper Africa Build Together initiative. The project will focus on fostering trade and investment between the world’s poorest continent and the United States. Given Africa’s ambitious free trade aspirations and China’s ever-growing obsession with the continent, such a move couldn’t come at a better time. The past few years can hardly be seen as the golden age of free trade in the West. However, while European Union governments and the U.S. have imposed sanctions, blocked exports as part of COVID measures, and failed to negotiate new agreements, Africa has been silently making strides toward its own free trading future – with China’s help.
Although ambitious, the AfCFTA is also riddled with implementation problems. Decades of socialist African governments whose main objective was their own enrichment have resulted in substantial infrastructure problems, among other things, in many countries. The construction and modernization of infrastructure combined with establishing efficient customs check procedures is key to making the AfCFTA succeed. This is where China has stepped in to fill the gap.
Global
Developing Digital Approaches to Trade Finance (Lexology)
The digital revolution affecting so much change across the world is coming to international trade processing and logistics. The transition to all digital documentation and processing from formerly inefficient analog systems is well underway. To comply with the World Trade Organization (WTO) Trade Facilitation Agreement, most countries have implemented “single window” customs processing of imports and exports electronically through a single electronic website, although the efforts vary widely as to filing requirements and means. Sensors allow tracking of goods and data collection from mine or farm to the ultimate sales outlet. Blockchain systems allow decentralized storage of information with high security and transparency. Machine learning and AI offer empowered analytical techniques for businesses to extract value and implement advanced strategy with their competitors.
For women in e-commerce, ‘entrepreneurship means freedom’ (Modern Diplomacy)
Entrepreneurship can mean more freedom for women according to the first Latin-American advocate of eTrade for All, an initiative developed by the United Nations Conference on Trade and Development (UNCTAD) to expand and promote the digital economy, especially in low and middle-income countries. In 2019, 1.5 billion people, or approximately 27 per cent of the world’s adult population, made purchases online, according to UNCTAD. The overall number is increasing annually and is expected to grow further as a result of the COVID-19 pandemic. However, the proportion of people using e-commerce in low- and middle-income countries is much lower compared to high-income nations.
How to cushion consumers from high maritime freight rates (Hellenic Shipping News Worldwide)
Containerised shipping underpins the transport and delivery of global manufactured goods, including inputs, parts, components and consumer goods. On the heels of the Covid-19 pandemic and its aftermath, the cost of shipping containers has reached historical highs. The cost of shipping one standard 20-foot container from Shanghai to Brazil, for example, is today nearly five times higher than the average of the last 12 years. The surge in freight rates and surcharges in container shipping are occurring in tandem with reduced service reliability, a key performance metric for shippers and supply chain managers.
Digital platforms can provide scale and access through partnerships (Engineering News)
The use and growth of digital platforms worldwide will provide greater value to users, but also enable and require a variety of companies to provide their services at scale to solve specific user requirements, which necessitates partnerships and greater collaboration among value chain stakeholders. The development of digital platforms worldwide is part of a cycle in which financial technology innovations provide unbundled financial services, which are now being recombined with a range of ancillary and non-financial services on digital platforms, to provide greater convenience and lower costs for users and financial services firms, explains business digital transformation company Platformation Labs founder and author of Platform Revolution and Platform Scale Sangeet Paul Choudary.
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SA records agricultural trade surplus of R22bn (IOL)
South Africa recorded an agricultural trade surplus of $1.5 billion (about R22bn) in the second quarter of this year, which represented a year-on-year increase of 40 percent, according to the Agricultural Business Chamber (Agbiz). Agbiz chief economist Wandile Sihlobo said yesterday that agricultural exports amounted to $2.9bn in the first quarter, which was a year-on-year increase of 28 percent. “We now have the full data for the second quarter, which showed an even stronger performance, with exports valued at $3.2bn, up 36 percent year-on-year. This means that in the first half of 2021, South Africa’s agricultural exports amounted to $6.1bn, which is a 30 percent year-on-year increase. Compared with last year, the growth is partly because of base effects, as the first half of 2020 was heavily affected by the Covid-19-related disruptions to global supply chains. Still, the growth reflects rising export performance for various products,” said Sihlobo.
Draft National Infrastructure Plan 2050 gazetted for public comments (South African Government)
The draft National Infrastructure Plan 2050 (NIP 2050) has been gazetted for public comment by the Department of Public Works and Infrastructure. The plan was gazetted on Tuesday following six months of preparation by Infrastructure South Africa working with sector specialists and stakeholders. The NIP 2050 recommends a focus on strengthening the performance of state-owned enterprises, sector specific regulations, state capacity and private participation in public infrastructure delivery and management.
Coal still a lifeline for South Africa as transition begins (World Coal)
While the global focus on environmental, social and governance (ESG) issues looks to phase out coal as an energy resource, the prospects for South African coal production remain strong for coming decades. SRK Consulting principal coal geologist Lesley Jeffrey said coal remains a key contributor to the country’s economy – both in terms of energy production and mineral export revenues. Coal was only recently overtaken by platinum group metals as the country’s leading commodity by sales, but it remains the most significant component of the country’s mining in terms of value added – accounting for 25%. The export market was vital to sustain, she emphasised, as it created the economic balance that keeps coal producers profitable while they continue to supply Eskom at low margins. Without the higher-value exports, local electricity prices would likely have to rise even faster to meet the full cost of mining.
Unique regional status to South Africa’s rooibos tea can turn fortunes for crop (Reuters)
Come December, when farmers near Cape Town harvest rooibos leaves, they will become the first generation to grow and sell a tea with a unique regional status, a designation awarded to other such products as French champagne or Irish whiskey. The rooibos tea, whose name means “red bush” in Afrikaans - the language of South Africa’s earliest European settlers - was the first African product to get such a status in the European Union in June. Farmers and agriculture experts now hope the EU’s treatment of rooibos could help boost demand and improve the crop’s profitability. “We expect there to be a considerably bigger market so definitely we will expand now that there is more stability and economic viability,” said 61-year old Deon Zandberg, a manager at Vanrhynsdorp farm.
SA, Kenya cement bonds (SAnews)
While South Africa and Kenya enjoy strong bilateral relations, the two countries will work together to address hindrances to bilateral cooperation. In a joint communiqué issued following the inaugural session of the South Africa-Kenya Joint Commission for Cooperation on Wednesday, the two Ministers reviewed and exchanged views on the status of bilateral relations and expressed satisfaction with the progress achieved in various areas of cooperation since its signing. The two Ministers further exchanged views on possible areas of cooperation and collaboration and committed to, among others things, address all the impediments that hinder bilateral cooperation. These areas include trade and investment; agriculture, livestock and fisheries; science and technology; energy; maritime and air transport; Housing and human settlement and infrastructure development within the Lamu Port, South Sudan [and] Ethiopia (Lapsset) Corridor.
Is Botswana’s private COVID-19 vaccine offer too good to be true? (Devex)
This week, former Botswana President Seretse Khama Ian Khama announced that his foundation has secured two million doses each of the AstraZeneca and Pfizer COVID-19 vaccines for the government of Botswana. In a statement issued Aug. 9, the SKI Khama Foundation said the vaccines were “available to the country immediately upon submission of a purchase order and an end-user-certificate, both of which must come from the government of the receiving country as per established procedures and protocols for the acquisition of COVID-19 vaccines.”
Uganda plans new campaign to deal with plastic waste, conserve environment (The East African)
Uganda is embarking on a 10-year environmental restoration programme that will include a ban on polythene bags and a range of plastics. According to the Junior Minister for Environment Beatrice Anywar, the ban is one of the measures the Cabinet has passed as it gets down to fixing the mess that is environment conservation even as environmentalists argue there is still no political will to see them through. Section 2 of the 2009 Finance Act prohibits the importation, local manufacture, sale or use of plastic bags or bags of polymers of ethene and polyethene but implementation of the ban hit a snag following a disagreement on the back of intense lobbying by plastics manufacturers. Among the new measures, the government wants encroachers on forest reserves, lakeshores and riverbanks evicted while those on rural wetlands will be offered alternative sustainable models. Also, the growing of rice in the wetlands has been banned.
Vietnam, Tanzania look to step up bilateral investment cooperation (Vietnam Plus)
Vietnam is willing to share its socio-economic development experience and lessons with Tanzania, especially in attracting foreign investment and developing garment, footwear, and seafood sectors, Vietnam Ambassador to Tanzania Nguyen Nam Tien has said. During a meeting with Tanzanian Minister of Investment Geoffrey Mwambe on August 10, the Vietnamese diplomat suggested the two sides complete legal frameworks for bilateral investment activities, and proposed specific cooperation orientations and plans between the two nations in the fields of agriculture, education and infrastructure development. Amid complicated developments of the COVID-19 pandemic, partners of the two sides should enhance online meetings to maintain information exchange and strengthen connectivity, Tien said.
Unlocking export market opportunities for women, youth (The Nation Newspaper)
The Nigerian Export Import Bank (NEXIM) Bank has over time intervened in key non-oil sectors that are high employers of women and youth such as the cleaning and packaging of shea, cashew, hibiscus and ginger for exports. However, the Export Credit Agency and the Trade Policy Bank of Nigeria are focusing on diversification of the external sector of Nigerian economy towards increased jobs creation and foreign exchange earnings from the non-oil export sector. Having observed the unfolding dynamics of the Nigerian economic environment and the need for specific policy intervention to promote economic and social inclusion of key segments of the country’s population, in particular the women and youth, the bank recently launched the Women and Youth Export Facility (WAYEF) to reduce poverty and contribute to the nation’s Gross Domestic Product (GDP).
Gov’t is determined to boost APRM capacity – Foreign Minister (Business & Financial Times)
Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey has said that government is determined to boost the capacity of the African Peer Review Mechanism (APRM) in the performance of the needed analytical work that underpins targeted review processes. The meeting discussed the expanded mandate of the APRM, the need for increased resources, the Council’s membership and the country’s plan for a targeted review. The meeting was to enable the Governing Council to seek the Minister’s opinion on the themes for the targeted review, to request for the Ministry’s support in obtaining legal backing for the work of the APRM and also request the Ministry’s assistance for befitting office space and logistics to enhance the work of the Council.
Mali: Understand COVID-19’s impacts for better actions (World Bank)
According to the recent World Bank “Mali Economic Update: Protecting the vulnerable during the recovery”, measures adopted by authorities to contain the spread of the COVID-19 virus, did not prevent the slowdown of Mali’s economy. Following a sustained period of expansion with economic growth averaging 5.1% between 2013 and 2019, real GDP contracted by 2% in 2020.
“All drivers of economic growth in Mali were severely affected by the COVID-19 pandemic. The slowdown in global economic activity and disruptions to international trade were strongly felt by Malian households, who experienced an abrupt welfare deterioration,” highlights Xun Yan, economist at the World Bank and author of the report. The economic recession and the slowdown in international trade induced a mechanic decline in fiscal revenues. Additional spending in the context of the COVID-19 emergency program (2.3% of GDP), drove up the fiscal deficit to 5.5% of GDP in 2020. Public debt rose to reach 44.1% of GDP in 2020.
Africa
4 ways Africa’s AfCFTA will benefit the Islamic economy (Salaam Gateway)
Africa is at a turning point in its history. The continent has the opportunity to transform itself from a fragmented group of economies dependent on commodities into an integrated global powerhouse under the African Continental Free Trade Area agreement. With 27 Organization of Islamic Cooperation (OIC) countries also members of the African Union – representing half of all the nations on the continent – the Islamic economy is expected to make significant gains from this landmark deal. These 27 OIC countries collectively account for more than 60% of total GDP and more than 55% of total trade of African countries, according to the International Islamic Trade Finance Corporation (ITFC).
AfCFTA’s main aim is to remove trade barriers, chief of which is the scrapping of custom duties on at least 97% of tariff lines that account for 90% of intra-Africa trade over five years for developing countries, and 10 years for the least developed nations. A new study from the ITFC and SESRIC on the impact of the AfCFTA on six OIC countries – Côte d’Ivoire, Egypt, Guinea, Mozambique, Tunisia and Uganda – found that their total trade could grow by 30% with other African countries. Two additional ITFC studies, scheduled for 2022 and 2023, will look at the free trade area’s impacts on countries along the trans-Saharan road and landlocked countries, according to Sonbol.
FDA establishes two new centres to support AfCFTA (Business & Financial Times)
The Food and Drugs Authority (FDA) has established the Centre for Laboratory Services and Research and the Centre for Import and Export Control as part of strengthening its regulatory function to deliver improved services to support a strong implementation of the African Continental Free Trade (AfCFTA) regime. The two new facilities are also expected to monitor and control imports of unregistered products into the country. Addressing the media at a press engagement in Accra, the CEO was positive the Laboratory Centre, which she described as having the “largest testing scope under one roof in Africa,” would support the “implementation of the One District, One Factory (1D1F) initiative and be a key collaborator to the African Continental Free Trade Area (AfCFTA).”
What is driving COVID-19 vaccine hesitancy in Sub-Saharan Africa? (World Bank Blog)
As African countries accelerate the deployment of COVID-19 (coronavirus) vaccines, the issue of vaccine hesitancy looms. Globally, there has been a rise in general vaccine hesitancy but especially towards COVID-19 vaccines. In Africa, hesitancy must be viewed in the context of significant vaccine shortage; hesitancy does not explain fully the low vaccination rates in Africa. The slow vaccine rollout on the continent is due to supply constraints, structural issues, and logistical barriers. The critical question is how to increase both supply and demand.
EAC pushes for coordinated approach in tackling pandemic (Kenya Broadcasting Corporation)
The East African Community (EAC) partner states have been challenged to embrace a coordinated approach in the fight against Covid-19. Consequently, EAC Secretary General, Peter Mathuki is pushing for harmonization of COVID-19 testing charges and quarantine administrative procedures across the region in addition to strengthening public-private sector cooperation for joint investment in the manufacturing COVID-19 vaccines. The Secretary-General, however, noted that there was immense hope on the horizon with all Partner States having embarked on national vaccination drives, adding that more work needs to be done to increase vaccination levels in the region that currently stand at 2% vis-à-vis 70% in other parts of the world.
United Republic of Tanzania signs the Treaty for the establishment of the African Medicines Agency (AMA) (African Union)
The United Republic of Tanzania becomes the twenty second (22nd) African Union (AU) Member State to sign the Treaty for the establishment of the African Medicines Agency (AMA) on 10 August 2021, at the AU Commission in Addis Ababa, Ethiopia. H.E. Dr Monique Nsanzabaganwa noted that Tanzania has been a key leader in supporting the efforts of the Commission and the East African Community, in the harmonization of regulatory policies, under the African Medicines Harmonization Initiative, being led by the African Union Development Agency (AUDA-NEPAD). “The current pandemic has reinforced the need for the continent to have very strong continental health institutions and the AMA working in tandem with the African CDC will be the key to collectively address the continental health challenges,” she added. She encouraged Tanzania to move to the next step of ratifying the Treaty for the establishment of AMA.
Report on DR Congo admission to EAC awaits ministerial decision (The New Times)
The process of admitting the Democratic Republic of Congo (DRC) to the East African Community (EAC) is in advanced stages, and a report on their eligibility to join the six-nation group is now awaiting approval by the Council of Ministers. This was highlighted on Wednesday, August 11, by Peter Mathuki, the Secretary General of the EAC as he addressed the media on the occasion of his 100 days at the helm of the Tanzania-based secretariat of the regional bloc. DRC’s request to join the bloc took centre stage in February 2021, after the EAC Summit approved their application and later on in June, launched a verification mission to assess its suitability for admission into the Community, in line with the EAC’s procedures for admission of new members. DR Congo gets only 11 percent of its imports from East Africa. With their coming on board to take advantage of the frameworks that we (EAC) have, it is possible this 11 percent is going to increase four-fold to almost 50 percent,” he added.
Africa still at sea over its vision of a thriving blue economy (The East African)
Unresolved maritime boundary disputes, illegal arms, drug trafficking and piracy continue to hamper Africa’s dreams of a thriving blue economy, warns a report by the African Union’s Peace and Security Council (PSC) on African maritime safety and security issues. The AU organ is apprehensive of the sector’s returns, seeing as violence and corruption hold sway. Thirty-eight of Africa’s 54 countries boast of a coastal boundary while 90 percent of import-export occur via the sea. The PSC recommends that member states move from acknowledging that maritime insecurity poses severe threats to Africa’s security and development agenda to crafting and implementing effective responses that connect and complement cross-cutting intervention efforts at all levels.
Biden’s different approach to Africa (Christian Science Monitor)
For each new American president in recent decades, one rite of passage has been to launch a U.S. initiative to lift up Africa. For Barack Obama, the focus was on more electricity for the continent. For Donald Trump, it was negotiating trade pacts with individual countries. The emphasis was on tangible help. For President Joe Biden, whose initiative was launched in July, the starting point is more intangible. The focus is on partnerships with Africans, mainly youth and women, who share American values such as democratic governance and accountability. To make his point, Mr. Biden sent a high-level delegation to Africa in early August, but only to four of its stronger democracies (South Africa, Botswana, Tanzania, and Niger). His top official for foreign aid, Samantha Power, speaks of treating Africans as equals, not dependents, based on “mutual respect.”
The geopolitical wind is behind the president’s approach. “The pandemic has created unique momentum for engagement with Africa,” says Landry Signé of the Brookings Institution. “When the U.S. is engaged [with Africa], we have better quality; we have more accountability and sustainable development which will also follow,” says Mr. Signé. In particular, the Biden administration wants to steer Africa away from nonsustainable fossil fuels and toward a reliance on wind and solar power.
UAE-Africa: Building on a $50bln partnership (ZAWYA)
The 54-nation AfCFTA economic bloc came into effect at the start of 2021 and aims to create a single, continent-wide market for goods and services and to promote the movement of capital and people¸ facilitating greater trade flows between African countries. “By increasing regional trade, lowering trade costs and streamlining border procedures, full implementation of AfCFTA would help African countries increase their resiliency in the face of future economic shocks and help usher in the kinds of deep reforms that are necessary to enhance long-term growth,” according to the World Bank. Long-term trends measured over decades show that African countries have now emerged as very attractive investment destinations, according to Ernst & Young: “All this is happening in the last region of the world offering a demographic dividend: sub-Saharan Africa will soon be the only place with birth rates at replacement level or higher.” Overall, the UAE’s trade with African countries surged to $50 billion in 2019 and around $40 billion in the first nine months of 2020, according to Dr. Thani bin Ahmed Al Zeyoudi, the UAE’s Minister of State for Foreign Trade.
Global
It’s time for a rethink on financial inclusion – new principles show how (WEF)
Where trade thrives, people thrive. This has been true for centuries. Opportunity was a matter of getting to the marketplace. These days, more and more of the work we do and the widgets we exchange are digitized. Even before the pandemic sparked a rapid shift to e-commerce and digitization, services and data flows were outpacing goods as the main units of trade. In theory, the internet became the global commons, a place where anyone with a solid business idea and internet access could link up to the supply chain system and become a legitimate entrepreneur. The problem, however, is that while technology serves as a gateway for many, a lack of internet access, affordable tools and the skills to use them and navigate the system safely and beneficially has effectively created a digital divide. If we don’t find a way to close that divide soon, we will be barring the pathway to growth and opportunity for all.
UNCTAD, IATA Extend Partnership to Facilitate e-commerce (FTNnews)
The International Air Transport Association (IATA) and UNCTAD have extended their collaboration to facilitate international trade, particularly e-commerce. The extended partnership will enrich their history of working together. This includes the successful integration of air cargo messaging standards (Cargo-XML) into UNCTAD’s automated customs management system, ASYCUDAWorld. For the 100 counties choosing to deploy the latest version of ASYCUDAWorld, this enables more efficient processing of air cargo shipments. “Through this extended partnership, we look forward to leveraging the leadership of UNCTAD and IATA in their respective fields to boost e-commerce in developing countries through improved exchanges of trade data,” said Shamika N. Sirimanne UNCTAD’s Technology and Logistics Director.
Multilateralism is needed to prepare for next pandemic, experts say (Devex)
Preparing for the next pandemic requires greater multilateralism, not ad hoc bilateral funding, according to experts advising the G-20 group of nations. “We should not be thinking about it as helping other countries,” said Tharman Shanmugaratnam, a senior minister in Singapore and one of the experts, in a session held on Thursday. “We should be thinking about this within the framework of global public goods.” Amanda Glassman, an adviser who works for the Center for Global Development, said international finance institutions can have a key role in helping the world get ready for future shocks.
Global airlines book Sh13trn loss as Covid grounds planes (Business Daily)
The airline industry recorded a total loss of $126 billion dollars in 2020 as the sector grappled with the effects of the Covid-19, which saw passenger aircraft grounded worldwide, posting the worst year on record. The International Air Transport Association (IATA) said in the recently released World Air Transport Statistics (WATS) that the losses were occasioned by a sharp decline on number of passengers, which was down by 60.2 percent from the previous year. The statistics show that passengers who travelled by air in the review period were 1.8 billion from 4.5 billion in corresponding period in 2019. The agency says air connectivity declined by more than half in 2020 with the number of routes connecting airports falling dramatically at the outset of the crisis and was down more than 60 percent year-on-year in April 2020.
World Maritime theme 2022: New technologies for greener shipping (Graphic Online)
The International Maritime Organisation (IMO) council, meeting for its 125th session, endorsed the theme following a proposal by the Secretary-General of the IMO, Mr Kitack Lim. Mr Lim said the theme would provide an opportunity to focus on the importance of a sustainable maritime sector and the need to build back better and greener in a post pandemic world. “The IMO actively supports a greener transition of the shipping sector into a sustainable future and showcases maritime innovation, research and development, and the demonstration and deployment of new technologies. The theme will allow for a range of activities to delve into specific topics related to promotion of inclusive innovation and uptake of new technologies to support the needs for a greener transition of the maritime sector, especially in the context of developing countries and in particular the Small Island Developing States (SIDS) and Least Developed Countries (LDCs).”
To achieve inclusive growth globally, we must invest in our women (Thomson Reuters Foundation)
The world will only achieve its economic potential when its women are fully empowered to participate in their communities and their economies. Perhaps no country more than Liberia understands the essential role women play in forging peace and stability. Liberia’s women continue to be cornerstones of political and economic activity, running many of the businesses that form the backbone of the national economy and carrying out most of the unpaid work that sustains families and communities.
As in Liberia, women around the world are challenged at almost every turn to fully participate in the economy and build a secure future for themselves and their families. They are less likely to work in the formal economy, hold a position in management, earn a living wage, and have access to financial services. These disparities exist everywhere, but they are most pronounced in developing countries, where women are also more likely to bear responsibility for carrying out the unpaid work of caring for their families and maintaining the smallholder farms that provide essential food. There are many factors underlying gender disparities, but they are often rooted in restrictive government policies and patriarchal cultural norms.