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Global economy could lose over $4 trillion due to COVID-19 impact on tourism
Economic losses are mounting in developing countries due to the absence of widespread COVID-19 vaccinations.
The crash in international tourism due to the coronavirus pandemic could cause a loss of more than $4 trillion to the global GDP for the years 2020 and 2021, according to an UNCTAD report published on 30 June.
The estimated loss has been caused by the pandemic’s direct impact on tourism and its ripple effect on other sectors closely linked to it.
The report, jointly presented with the UN World Tourism Organization (UNWTO), says international tourism and its closely linked sectors suffered an estimated loss of $2.4 trillion in 2020 due to direct and indirect impacts of a steep drop in international tourist arrivals.
A similar loss may occur this year, the report warns, noting that the tourism sector’s recovery will largely depend on the uptake of COVID-19 vaccines globally.
“The world needs a global vaccination effort that will protect workers, mitigate adverse social effects and make strategic decisions regarding tourism, taking potential structural changes into account,” UNCTAD Acting Secretary-General Isabelle Durant said.
UNWTO Secretary-General Zurab Pololikashvili said: “Tourism is a lifeline for millions, and advancing vaccination to protect communities and support tourism’s safe restart is critical to the recovery of jobs and generation of much-needed resources, especially in developing countries, many of which are highly dependent on international tourism.”
Developing countries hurt by vaccine inequity
With COVID-19 vaccinations being more pronounced in some countries than others, the report says, tourism losses are reduced in most developed countries but worsened in developing countries.
COVID-19 vaccination rates are uneven across countries, ranging from below 1% of the population in some countries to above 60% in others.
According to the report, the asymmetric roll-out of vaccines magnifies the economic blow tourism has suffered in developing countries, as they could account for up to 60% of the global GDP losses.
The tourism sector is expected to recover faster in countries with high vaccination rates, such as France, Germany, Switzerland, the United Kingdom and the United States, the report says.
But experts don’t expect a return to pre-COVID-19 international tourist arrival levels until 2023 or later, according to UNWTO.
The main barriers are travel restrictions, slow containment of the virus, low traveller confidence and a poor economic environment.
Up to $2.4 trillion loss expected in 2021
A rebound in international tourism is expected in the second half of this year, but the UNCTAD report still shows a loss of between $1.7 trillion and $2.4 trillion in 2021, compared with 2019 levels.
The results are based on simulations that capture the effects of international tourism reduction only, not policies such as economic stimulus programmes that may soften the pandemic’s impact on the sector.
The report assesses the economic effects of three possible scenarios – all reflecting reductions in international arrivals – in the tourism sector in 2021.
Figure 1: As tourism falls world GDP takes a hit in 2021 (3 alternative scenarios)
Source: UNCTAD based on GTAP simulations.
Note: Drop in global tourist sales are $934 billion in scenario 1, $695 billion in scenario 2 and $676 billion in scenario 3
The first one, projected by UNWTO, reflects a reduction of 75% in international tourist arrivals – the most pessimistic forecast – based on the tourist reductions observed in 2020.
In this scenario, a drop in global tourist receipts of $948 billion causes a loss in real GDP of $2.4 trillion, a two-and-a-half-fold increase. This ratio varies greatly across countries, from onefold to threefold or fourfold.
This is a multiplier and depends on the backward linkages in the tourism sector, including the unemployment of unskilled labour, according to the report.
For example, international tourism contributes about 5% of the GDP in Turkey and the country suffered a 69% fall in international tourists in 2020.
The country’s fall in tourism demand is estimated at $33 billion and this leads to losses in closely linked sectors such as food, beverages, retail trade, communications and transport.
Turkey’s total fall in output is $93 billion, about three times the initial shock. The decline in tourism alone contributes to a real GDP loss of about 9%. This decline in reality was partly offset by fiscal measures to stimulate the economy.
Figure 2: Estimated losses in GDP by region from reduction in tourism (percentage)
Source: UNCTAD based on GTAP simulation.
Note: Scenario 1 simulations capture effects of tourism reduction only, not other policies such as economic stimulus programmes.
The second scenario reflects a 63% reduction in international tourist arrivals, a less pessimistic forecast by UNWTO.
And the third scenario, formulated by UNCTAD, considers varying rates of domestic and regional tourism in 2021.
It assumes a 75% reduction of tourism in countries with low vaccination rates, and a 37% reduction in countries with relatively high vaccination rates, mostly developed countries and some smaller economies.
Job losses across countries
According to the report, the reduction in tourism causes a 5.5% rise in unemployment of unskilled labour on average, with a high variance of 0% to 15%, depending on the importance of tourism for the economy.
Labour accounts for around 30% of tourist services’ expenditure in both developed and developing economies. Entry barriers in the sector, which employs many women and young employees, are relatively low.
Losses worse than previously expected
In July last year, UNCTAD estimated that a four- to 12-month standstill in international tourism would cost the global economy between $1.2 trillion and $3.3 trillion, including indirect costs.
But the losses are worse than previously expected, as even the worst-case scenario UNCTAD projected last year has turned out to be optimistic, with international travel still low more than 15 months after the pandemic started.
According to UNWTO, international tourist arrivals declined by about 1 billion or 74% between January and December 2020. In the first quarter of 2021, the UNWTO World Tourism Barometer points to a decline of 88%.
Figure 3: International tourist arrivals (in thousands)
Source: UNCTAD based on UNWTO.
Developing countries have borne the biggest brunt of the pandemic’s impact on tourism. They suffered the largest reductions in tourist arrivals in 2020, estimated at between 60% and 80%.
The most-affected regions are North-East Asia, South-East Asia, Oceania, North Africa and South Asia, while the least-affected ones are North America, Western Europe and the Caribbean.
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National
Port delays, slow vaccine rollout threatening to dent consumption – Naamsa (Engineering News)
New-vehicle sales increased by 20.2% in June, to 38 030 units, compared with the same month last year. According to Naamsa, The Automotive Business Council, an estimated 32 847 units of this number, or 86.3%, were dealer sales, with 7.6% going to the vehicle rental industry, 2.2% to government and 3.9% to corporate fleets. New-vehicle exports from South Africa jumped by 50.9% in June, to 28 384 units. To date, vehicle exports are up 65.8% on the first six months of 2020. Naamsa says the new-vehicle market is continuing its gradual recovery “in the face of a number of challenges, but also opportunities”, with ongoing stronger sales through the dealer channel signalling improved consumer and business sentiment.
SA working to shift economic power into hands of women: President (Devdiscourse)
President Cyril Ramaphosa says South Africa is committed to both supporting and implementing the actions contained in the Global Acceleration Plan for Economic Justice and Rights. “Our interventions must dismantle the systemic barriers that marginalise women and girls and perpetuate inequality in the global economy,” President Ramaphosa said. “Lack of access to financial services and products disproportionately affects poorer women working in the informal sector, those without income and those who are illiterate. “It increases vulnerability to economic shocks and may, in some cases, even increase exposure to gender-based violence.” Innovation in digital financial services in Africa offers an opportunity for rapid scale-up of financial services and products.
Tourism: SA will be among the hardest hit, says UN report – and it won’t be better soon (Business Insider South Africa)
The virtual disappearance of cross-border tourism will have huge economic effects across the world into 2023, according to a new report from the United Nations Conference on Trade and Development (Unctad). And few places will suffer those effects as badly as South Africa. Measured by both impact on gross domestic product (GDP) and the loss of unskilled labour, South Africa ranked a consistent third across simulations both optimistic and pessimistic. An aversion to travel, and higher costs, may last for some time, the report warns. In the meanwhile, it says, tourist will probably “hesitate to travel long-distance, preferring closer destinations with high vaccination levels.” Without tourists, upstream sectors such as agriculture also suffer, said Unctad. So, absent stimulus measures, lost tourist sales mean 2.5 times as big a loss to real GDP. For South Africa, that means a realistic best-case hit of 6.9%, and a pessimistic forecast of 8.1% of GDP lost.
SA must show ambition or risk not getting climate finance: Ramaphosa panel (Fin24)
A panel appointed by South African President Cyril Ramaphosa urged the world’s 12th-biggest producer of greenhouse gases to adopt more ambitious plans to reduce its environmental footprint and commit to generating zero emissions on a net basis by 2050. The consequences of not setting more aggressive goals would be less access to climate finance, the Presidential Climate Change Coordinating Commission said in its first report since Ramaphosa appointed its 22 members in December. It also warned that the nation’s export markets may shrink as countries impose tariffs on their carbon intensity.
Vaccine manufacturing hub will enhance SA’s local manufacturing capabilities (SAnews)
Higher Education, Science and Innovation Minister Blade Nzimande says the establishment of Africa’s first messenger RNA (mRNA) technology transfer hub for COVID-19 vaccines will ensure that South Africa’s local manufacturing capabilities of vaccines will be enhanced. “This means that South Africa will move beyond just fill/finishing of vaccines, into the manufacturing of the active component or drug substance of vaccine. South Africa’s local manufacturing will be ready to move into commercial scale manufacturing of the drug substance, with relevant equipment, facility preparation, staff training, and doing validation runs,” Nzimande said.
WHO is seeking to expand the capacity of low and middle-income countries (LMICs) to produce COVID-19 vaccines and scale up manufacturing to increase global access to the critical tools to bring the pandemic under control. During his visit to South Africa last month, French President Emmanuel Macron announced that France will support South Africa and Africa with regards to the local manufacturing of COVID-19 vaccines, through the establishment of the mRNA Technology Transfer Hub.
First-quarter statistics cast cloud over economic growth forecasts – experts (Namibia Economist)
The economy will likely not see a quick recovery as uncertainties persist and are likely to impact the economy negatively going forward. This is clear when looking at the first quarter statistics released by Namibia Statistics Agency (NSA) this week, which indicate that 13 of the 18 sectors recorded contractions in activity on an annual basis. According to the NSA, the country’s real GDP declined by 6.5% during the period under review, compared to a smaller contraction of 5.9% during the fourth quarter of 2020. “The 8% contraction in real GDP in 2020, which followed four years of economic stagnation, has resulted in real economic activity falling to levels last seen in 2013. The compound annual growth rate experienced between 2015 and 2020 was -1.7%,” IJG said in its responsive first-quarter report. “The general recovery in commodity prices and economic growth in the major economies observed in the first quarter of 2021 did not filter through to Namibia, due to the fact that Namibia’s main mineral exports (diamonds and uranium) did not benefit that much from these external improvements,” Du Plessis said.
China halts Kenya loans amid debt reprieve bid (Business Daily)
China has frozen disbursements of active loans to Kenyan projects in the wake of differences over Nairobi’s bid to extend debt repayment holiday to December. Chinese-funded projects are facing a cash crunch, with contractors reporting delayed payments from banks like Exim Bank of China. Executives at State-owned firms say the projects risk delays due to the funding hitch. China is one of Kenya’s biggest foreign creditors, having lent Sh758 billion as at April 2021 to build rail lines, roads and other infrastructure projects in the past decade. Yesterday, the Chinese embassy in Nairobi acknowledged the funding hitch, adding that the matter was being addressed by officials of the two countries.
Kenya’s Women Entrepreneurs Held Back from Corporate Procurement: IFC Study (IFC)
Women-owned businesses in Kenya face structural barriers that limit their ability to secure contracts with large companies for growth, according to an IFC study published today that recommends ways banks and large businesses can better support female entrepreneurs. Commissioned as part of IFC’s wider efforts to connect women entrepreneurs to new markets, the study, Sourcing2Equal Kenya: Barriers and Approaches to Increase Access to Markets for Women-Owned Businesses, found that women-owned businesses face challenges accessing finance, business networks, and market information, limiting their ability to take on large contracts. “For large companies, there is a business case for contracting with women-owned small and medium enterprises,” said Amena Arif, IFC’s Country Manager for Kenya. “A diversified supplier base is key to reducing the risk of supply chain disruptions and procurement costs.”
AfCFTA: Nigeria Won’t Be Dumping Ground For Unidentified Products, FG Warns (The Tide)
The Minister for Industry, Trade and Investment, Mr Niyi Adebayo, has assured that Nigeria would not be a dumping ground of unidentified products from other African countries when the African Continental Free Trade Agreement (AfCFTA) is activated. “As regards flooding of the market with substandard products, there are mechanisms in place in the agreement. The rule of origin is a criterion where participating countries must source their products locally. There is also a provision to guide against transhipment of products outside the African market,” he said.
Nigerian lawmakers pass historic oil overhaul bill (Reuters)
Both chambers of Nigeria’s parliament have passed a bill that overhauls nearly every aspect of the country’s oil and gas production, putting a project that has been in the works for two decades one step closer to presidential sign-off. The package also includes a string of changes sought by oil majors, including amended royalties and fiscal terms for oil and gas production, and the transfer of state oil company NNPC’s assets and liabilities to a limited liability corporation created by the bill. It also divided the stakes in the new NNPC Limited evenly between the finance and petroleum ministries, but would not allow for public share sales without further government approval.
UK government says it is working on making UK-Nigeria trade easier and cheaper (Nairametrics)
Ms Emma Wade-Smith, the U.K’s Trade Commissioner for Africa, announced the UK wants to facilitate easier, cheaper trade with Nigeria as the U.K Government plans more trade deals with African nations post Brexit. “Nigeria is such a vibrant, dynamic and very important partner to the U.K. COVID-19 pandemic impact is small compared to what we will get from climate change so we must do everything we can to limit the extensive climate disruptions. Those things include sustainable infrastructure, healthcare and water product and how it can reduce our carbon footprint to drive economic growth. We will also be utilising preferential trading agreement in increasing exports and imports between us and providing technical and other supports,” she said.
IFC and World Bank Report: Mozambique can Strengthen its Private Sector for Growth, Jobs (IFC)
Mozambique could diversify its economy, build a broader base for growth, and create more jobs by promoting stronger private sector investment and development, especially in growing markets such as agribusiness and housing construction, according to a new World Bank Group report. The Mozambique Country Private Sector Diagnostic (CPSD) report, prepared by IFC and the World Bank, found Mozambique has an opportunity to spur more inclusive and sustainable growth by increasing productivity in key sectors, strengthening investment policy and promotion, and better integrating smaller businesses into the supply chains of big energy and infrastructure projects.
Finance organisations commit €600m for 100 km railway line in Ghana (Engineering News)
Development finance institutions Deutsche Bank and Investec, in partnership with Swedish Export Credit Agency (EKN), Swedish Export Credit Corporation (SEK) and Export Credit Insurance Corporation of South Africa (ECIC), have arranged for €600-million in financing for the construction of a 100 km stretch of Ghana’s Western Railway Line, from the Takoradi port to Huni Valley. “The Western Railway Line is key to the haulage of agricultural produce and minerals from the middle belt to Takoradi port in the south of Ghana. The corridor is home to key bauxite mines, which are the bedrock of the country’s integrated bauxite aluminium masterplan. “The completion of the line will boost economic activities along the corridor and will reduce the cost and time of transporting goods and passengers between the two ends,” says Ghana Finance Minister Ken Ofori-Atta.
Africa
Trade agreement brings new dawn of opportunity (Business Day)
Intra-African trade has historically been fairly limited at less than 18% compared to intraregional trade of more than 50% with Europe and Asia. AfCFTA aims to address this by creating the largest free trade area globally based on the number of participating countries. It plans to connect 1.2-billion people in 55 countries with a combined GDP of about $4-trillion and remove some of the main obstacles to intra-African trade, including weak productive capacities and limited economic diversification as well as remove – or at least significantly reduce – tariffs related to intra-African trade.
Regional economic recovery will take longer, experts say (Daily Monitor)
Progress made by the East African member countries is destined to slow further as the region is hit by a new Covid-19 wave. Economic growth in the East African Community (EAC) averaged 2.3 per cent in 2020 when the pandemic broke out a low performance compared to an average of 5.4 per cent recorded in 2019. Experts had anticipated the economic growth in the EAC region to recover in 2021, reflecting a resumption of global economic activity with the easing of containment measures. However, this may not come to fruition as the region is hit by the new pandemic waves that have seen member states locking their economies again.
“The pandemic on EAC partner states’ economies has been devastating to sectors like manufacturing and agriculture sectors because of the disruption in global supply chains and a fall in global demand for key export goods such as horticulture produce,” Mohamed said. Uganda’s industrial sector shrunk the most in region rating at 6.3 per cent. This was followed by Rwanda and Kenya whose industrial sector shrunk by 3.5 per cent, 0.5 per cent respectively.
Shrinking EAC budget worries legislators (The New Times)
The East African Legislative Assembly (EALA) has expressed concerns over the dwindling resource envelope of the East African Community (EAC). These concerns emerged on Wednesday as the lawmakers approved the Community’s $91.7 million budget for the fiscal year 2021/22, which represents a 6 per cent drop or $5.8 million compared to the previous year. “The Committee finds it ironic that while the Community continues to grow geographically and institutionally, the Council of Ministers has continued to clamour for a reduction in Partner States contribution towards the EAC budget,” Dennis Namara, the chairperson of the EALA’s Committee on General Purpose The expected contribution from member countries towards the EAC budget in 2021/22 will be slightly over $44 million compared to $46.8 million in the previous year.
EAC lawmakers seek harmonised Covid protocols, affordable tests (The New Times)
The high costs of Covid-19 tests is now becoming a hindrance to the free movement of people and goods in the East African Community (EAC). This is according to members of the East African Legislative Assembly (EALA), who are rooting for harmonised costs and to make them more affordable. “It costs an average of $100 to carry out a Covid-19 test of visitors in the six EAC partner States. The Committee finds this cost prohibitive and a challenge to the free movement of persons and goods in the region,” Dennis Namara, Chairperson of the Committee on General Purpose at EALA said. “The EAC region must cooperate to harmonise Covid-19 protocols and containment measures to reduce the cost of travel...while not undermining the safety of its citizens,” he said.
Trade Minister makes case for farmers following AfCFTA establishment (GhanaWeb)
The Minister for Trade and Industries Alan Kwadwo Kyeremanteng has charged the Food Trade Coalition for Africa to support farmers and other small-scale actors to ensure that they benefitted from increased trade opportunities. He noted that with the combined strengths of key stakeholders, the Coalition would build a stronger consensus on food trade policy, and increase policy coherence and predictability. “Throughout the COVID 19 pandemic, movement of trade hasn’t stopped but movement of people did. Therefore, the pandemic has taught us to start relying on our own local production. Thus, we are hoping to use this coalition as a platform to discuss issues of trade,” Alan Kyeremanteng made the call at a stakeholders meeting in Accra. “Increasing intra-African agricultural trade also has the potential to improve food security by moving surplus food to deficit areas and contribute to stabilizing local and regional food markets by making them less vulnerable to shocks,” he explained.
PACJA, Fairtrade Africa sign pact to build climate resilience in small holder farmers, agricultural trade (News Ghana)
The Pan African Climate Justice Alliance (PACJA) and Fairtrade Africa (FTA) have on Thursday signed a collaborative pact aimed at addressing the effects of climate change on trade from smallholder farming, and respective producer groups across Africa. Signed in Nairobi, Kenya the memorandum of understanding between the two leading coalitions on climate change and trade will seek to jointly build strong climate resilience among agricultural producer organizations, small holder farmers and workers linked to them, including addressing needs of other agricultural value chain actors across Africa. “As Africans, we realize that we cannot address climate change without seeking to offer solutions to our small holder farmers who are on the forefront of suffering from the impacts of climate change. We will jointly seek to develop the adaptive capacities of our farmers,” said Dr Mwenda.
What Financial Choices for Africa in the Face of Climate Change? (IMF)
We all agree that building resilience to climate change is of paramount importance in the region. Part of this resilience building involves investments in climate-resilient infrastructure – especially in agriculture – which will reduce the impact of climate shocks and provide a foundation for enduring economic growth. But climate resilience also requires social spending. All this, however, costs money, and with high debt levels, especially post-pandemic, many countries in the region lack the needed fiscal space. Some room can be generated by shifting the composition of spending – gradually reducing energy subsidies, for instance, could free significant resources while also supporting a greener economy. There is thus no doubt that mobilizing external public financing, as well as private-sector resources, will be a key priority for many sub-Saharan African nations. Let me highlight a few instruments or channels that I think are particularly important.
The beginning of the end for Africa’s COVID-19 vaccine struggles? (Devex)
African countries in the middle of their third – and potentially worst yet – wave of the COVID-19 pandemic may soon receive much-needed reprieve, as shipments of vaccines donated by the United States are scheduled to begin next week. “There is movement, but obviously... we have an extraordinary situation with the third wave,” he said, adding that U.S. President Joe Biden’s new administration “has really stepped up.” Masiyiwa added that shipments are set to begin in August for 400 million doses of the J&J vaccine that were purchased by the African Vaccine Acquisition Task Team on behalf of African Union member states.
Afreximbank and Africa Finance Corporation sign agreement for vaccine (Naija247news)
The AFC has agreed with African Export-Import Bank to provide funding for a $430 million vaccine manufacturing plant in Nigeria that will help the continent deal with the virus, and now hopes to attract third-party investors to the project, according to Shenouda. Under the agreement signed in April, Afreximbank and AFC will identify and engage partners, and co-finance vaccine manufacturing projects in Africa. The two institutions will provide preparatory support to project developers and promoters whilst stepping up policy and advocacy efforts to unlock major market barriers. These cross-cutting barriers include border clearance, road and freight logistics, cold-chain and warehousing on the continent and access to market.
Standard Bank is in Blockchain agreement on Asia soft commodities trade with Africa (The Africa Report)
Standard Bank is in the process of concluding an agreement with Singaporean fintech Dltledgers to use Blockchain technology to improve soft commodities trade between Africa and countries of the Association of Southeast Nations (ASEAN), the bank’s head of trade Vinod Madhavan tells The Africa Report. The agreement, which will allow trade finance letters of credit to be issued via Blockchain, is set to become operative in the coming month, Madhavan says in Johannesburg. The potential exists to extend the accord beyond ASEAN, he adds.
The African Development Bank Group President, Dr. Akinwumi A. Adesina, joined French President Emmanuel Macron and others at the Generation Equality Forum taking place in Paris this week. He highlighted the role of the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative in growing the continent’s women-led businesses. AFAWA is a pan-African initiative whose goal is to unlock financing to bridge the $42 billion financing gap that women entrepreneurs face in Africa. “Women run Africa and they should run Africa… they create more businesses than men - but the problem they have is that they do not have access to finance,” Adesina said.
India expands its Africa outreach (Asian Lite)
India has always stood with Africa even if it formally announced its Africa policy only during the visit of PM Modi to Uganda in 2018. Prime Minister Narendra Modi outlined the Africa vision through his ten guiding principles which include: Africa is among top priorities for India and momentum of cooperation will be sustained through regular exchanges; development partnership as per African priorities; preferential access to Indian markets for African products; assist in harnessing digital revolution in Africa; improve Africa’s agriculture potential; fight climate change together; work together to keep oceans and maritime lanes free for all; Africa instead of becoming a theatre of competition should become nursery for its youth; and aspire and work together for a just, representative, democratic global order.
Global
Improving trade data for COVID-19 products key to better response policies: WTO (WTO)
Improving trade data on products needed to combat the COVID-19 pandemic – including vaccines and their components – is key to ensuring that the right policies are in place to facilitate their distribution, according to a new information note issued by the WTO Secretariat on 1 July. The Secretariat note points out that detailed trade data for these products are currently not available because the information captured at the time of importation is not sufficiently detailed. The two main problems are lack of detail at the six-digit Harmonized System (HS) tariff level and lack of standardization in national tariff subcategories beyond the standardized HS categories.
Patent waiver talks falter on developed nations’ hurdles (Times of India)
After showing some promise, the patent waiver talks at the World Trade Organization (WTO) have hit a hurdle due to a split between the developed and developing countries. India and South Africa have suggested that their proposal for Covid drugs, vaccines and aids – which is backed by 60 developing and poor countries, including Pakistan, Bangladesh, Indonesia and the African group – should be the basis for “line by line negotiations”. But the European Union has rejected several arguments put forward by the developing bloc and wants its proposal to be taken up on an equal footing. Its proposal calls for limiting export restrictions, supporting the expansion of production, and facilitating the use of current compulsory licensing provisions in the TRIPS Agreement, especially clarifying that the requirement to negotiate with the right holder of the vaccine patent does not apply in urgent situations such as a pandemic.
Drop the “e” – let’s think about the future of digitally enabled trade (ICC)
Speech by ICC Secretary General John W.H. Denton AO to the World Customs Organization’s 2nd Global Online Conference on Cross-border E-commerce. Customs united effort on Recovery, Renewal and Resilience for a sustainable e-commerce supply chain
“I believe we owe it to our respective stakeholders to do all we can to maximize the benefits of cross-border commerce for the businesses, workers and families looking for relief in the wake of the Covid-19 pandemic. Governments and business need to meet this challenge together. I want to start by placing my speech today in the context of what we see happening more broadly in the global trading system. In my view, the rapid digitalization presaged by the Covid-19 pandemic means that it’s highly likely that we won’t talk of e-commerce in 2030. Perhaps not even by 2025. That’s to say, we won’t talk of digital trade – just trade.”
The proposed General SDR allocation will provide some relief but fall far short of the ambition the world should have to ensure a green and inclusive recovery, the policy brief says, unless a large portion of these resources is redirected to support the many developing countries struggling to manage the ongoing crisis. As the pandemic rages on in developing countries, limited resources are stretched thinner, debt vulnerabilities are intensifying, and governments are in acute need of liquidity support to manage the crisis. The SDR allocation will send about US$55 billion directly to 82 highly debt-vulnerable developing economies, which is equivalent to only about 1.8 percent of their gross public debt stock. In other words, the allocation would not cover even a year’s worth of interest payments for most countries.
$1 billion fund for renewables among key energy commitments made during UN ministerial forums (UN News)
Some 50 ministers outlined their plans to reduce emissions and ensure that all people have access to electricity and clean cooking fuels, as the world transitions away from fossil fuels, towards renewable energy. UN Secretary-General António Guterres told the Forums: “We are running far behind in the race against time to achieve Sustainable Development Goal 7 by 2030, and net-zero emissions by mid-century. He called on “every country, city, financial institution and company to raise ambition and submit ‘Energy Compacts’” for the High-level Dialogue. Globally, nearly 760 million people lack access to electricity and 2.6 billion continue to cook with traditional fuels like wood that not only contribute to carbon emissions but also causes 4 million deaths each year from indoor smoke.
Chair introduces revised fishing subsidies text to facilitate 15 July ministerial meeting (WTO)
“The purpose of this draft text is to serve as a basis for the ministerial level meeting on 15 July. This means that it is meant to be a genuine reflection of the whole group, one that is conducive to attracting convergence,” the chair said in his presentation to the Negotiating Group on Rules at the level of heads of delegations. The revised draft text is available here. View the chair’s statement here. Director-General Okonjo-Iweala affirmed at the meeting that the text reflects the chair’s best judgement on changes that can help members narrow the gap in their positions. The revision, she added, can be a good basis for the more detailed work members have ahead of them to conclude negotiations.
130 countries and jurisdictions join bold new framework for international tax reform (OECD)
130 countries and jurisdictions have joined a new two-pillar plan to reform international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate. 130 countries and jurisdictions, representing more than 90% of global GDP, joined the Statement establishing a new framework for international tax reform. A small group of the Inclusive Framework’s 139 members have not yet joined the Statement at this time. The remaining elements of the framework, including the implementation plan, will be finalised in October. The framework updates key elements of the century-old international tax system, which is no longer fit for purpose in a globalised and digitalised 21st century economy.
Nigeria abstains from signing global tax deal
Opinion: How to forge supply chain resilience (Devex)
Before the COVID-19 pandemic, few people spent much time thinking about global health supply chains. Suddenly, many found themselves worrying about when the next stocks of toilet paper, hand sanitizer, and face masks would arrive in stores. But aisle shelves soon filled up again, and any thoughts of supply chains evaporated from people’s minds as quickly as a squirt of antiseptic spray. But the global health supply chain hadn’t merely suffered a minor bump. It was an earthquake whose aftershocks would be felt for years to come in low- and middle-income countries, further highlighting their need for more resilient supply chain systems to both recover from this shock and shoulder the next one – whether an epidemic, pandemic, earthquake, hurricane, or blocked shipping lane.
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National
SA’s trade surplus is continuing its upward swing (IOL)
South Africa’s bumper trade activity rose above expectations in May as the country recorded the largest monthly trade surplus ever on the rise in exports. The SA Revenue Service (Sars) yesterday said South Africa’s trade surplus rose to R54.60 billion in May from an upwardly revised R51.26bn in April. South Africa’s trade balance has recorded a surplus for 13 consecutive months, with exports benefiting from elevated commodity prices and rising demand in its major trading partners. Investec economist Lara Hodes said the modest monthly pick-up in exports was largely buoyed by vegetable products and vehicles and transport equipment as global auto demand continues to recover. Sars said the year-to-date preliminary trade balance surplus of R202.59bn was an improvement from the R10.63bn surplus for the comparable period in 2020.
Poor port performance costing South Africa money, jobs (Engineering News)
The time currently wasted at the Durban port owing to poor performance and inefficiency is having a direct impact on employment generation, poverty reduction and economic growth in South Africa, says global lead for transport connectivity and regional integration at the World Bank transport global knowledge unit, Martin Humphreys. “Quite honestly, [South African ports] are just not efficient enough.” Humphreys’ remarks follow the May release of the World Bank report ‘The Container Port Performance Index 2020, A Comparable Assessment of Container Port Performance’. This report placed the performance of South Africa’s Cape Town, Durban, Port Elizabeth and Ngqura ports, all managed by parastatal Transnet, in the bottom five out of a list of 351 global ports.
SA’s clothing industry trying to stitch itself together following worst decline to date (Fin24)
South Africa’s clothing industry has not escaped the impact of the Covid-19 pandemic on heavily burdened consumers, with retail sales in the SA clothing and textile industry reaching the worst decline ever recorded in 2020. But, say local manufacturers, they are pulling out all the stops to snatch back market share from imports, as they continue to face supply chain disruptions brought on by the pandemic. Graham Choice, managing director of merchandise supply chain at clothing retailer TFG (formerly The Foschini Group), says some of the country’s leading apparel retailers have tried to tackle the problem by localising and shortening lead times. But, he says, there has been little on offer from the local manufacturing sector, which he describes as “decimated”. “Overall, the local CTFL [clothing, textile, footwear and leather] value chain in SA has come under extreme pressure as the Covid-19 pandemic significantly constrained demand for retail goods,” says Choice.
South Africa needs to improve the inclusiveness of the economy (Engineering News)
Policy research and development think tank the Centre for Development and Enterprise (CDE) notes in a new report that there is limited empirical information on which to base policies to support the growth of small, medium-sized and microenterprises (SMMEs) and grow the inclusiveness of the economy. The report, titled ‘What role can small and micro businesses play in achieving inclusive growth?’, states that the informal sector in South Africa is relatively small, employing only one-sixth of South Africa’s workers and contributing 6% to gross domestic product. The formal sector is, thus, more important for growth and inclusion.
Kenya’s attempt to boost agro-processing (Devex)
Kenya loses almost half of its farm produce to poor roads, production gluts, and policies that fail to promote local agro-processing, according to Patrick Nyangweso, business development manager at the Kenya National Chamber of Commerce and Industry. Establishing agro-processing zones close to farmers – providing value addition – can reduce these post-harvest losses. Though the Kenyan government has begun the process of establishing six agro-processing zones and its 10-year agricultural sector development strategy identified value addition as key to transforming the sector, local entrepreneurs say that progress has been too slow and that additional investment in the industry is needed. “Local agro-processing is a game changer.”
Kenya-UK economic partnership agreement betrays the East African Community (Citizen)
The fact that Kenya maintains an unhealthy trade balance with the UK where the UK imports into Kenya far outmuscle Kenya’s exports to the UK is a major concern on elimination of customs on UK imports and implementation of the agreement. It is surprising, however, that the impact of the agreement on the East African Community remains largely undebated unlike the preceding Kenya-USA Free Trade Agreement that has been critically examined against the EAC’s Customs Union Protocol and the Common Market Protocol. It is time that the stakeholders in the EAC integration process highlighted the imminent dangers posed by the Kenya-UK EPA on the EAC integration.
Dar reaffirms AfCFTA vow (Dailynews)
President Samia Suluhu Hassan has reaffirmed Tanzania’s commitment to ratify the Africa Continental Free Trade Area (AfCFTA). She also pledged that Tanzania will fully support the continent economic emancipation drives. Once Tanzania ratifies the agreement, it is expected to have access to a market of over 1.3 billion people across the continent. A statement issued by the Directorate of Presidential Communications said President Samia made the pledge, when she met with the Secretary General of the AfCFTA Secretariat, Mr Wamkele Mene, at the State House in Dodoma, yesterday. “The government is finalising the process towards the ratification of the AfCFTA agreement. On the other hand, Tanzania will fully collaborate with you to achieve your mission of recovering the economy of the African continent,” said President Samia.
TRA waives 15 pc import duty on industrial sugar (Dailynews)
Tanzania Revenue Authority (TRA) has from today waived the 15 per cent import duty on industrial sugar for use in industries. The move follows the 2021/22 budget tabled by Minister for Finance and Planning, Dr Mwigulu Nchemba indicating the government strong commitment to further improve the business environment in the country. According to TRA Commissioner General, Alphayo Kidata the import duty was among the concerns raised by business people in the country. The additional 15 per cent duty on imported industrial sugar to Tanzania was imposed to curb misuse of the commodity by unscrupulous traders selling it on the local market for domestic use, and hence posing unfair competition for local producers of domestic sugar.
Six months after, Nigeria yet to domesticate, implement AfCFTA (Guardian)
Six months after trading officially commenced under the African Continental Free Trade Area (AfCFTA), Nigeria and some other countries continue to lag behind, having stalled the process to domesticate trade protocols in line with the implementation of the new trade regime. With the rules of origin yet to be defined, Nigerian exporters and manufacturers are left in the dark on the next line of action as other countries take national positions in safeguarding local industries and expanding regional agenda.
Though the Nigerian Office for Trade Negotiations (NOTN), in February, unveiled trading requirements for Nigerian traders under the AfCFTA, while also identifying 89 items that qualify for preferential trade under the deal, the delay in domesticating the treaty remains a challenge for its operationalization. With the details of tariff lines yet to be unveiled, manufacturers, traders and other exporters are awaiting a comprehensive list of the products that would be liberalised and restricted under the trade deal.
Rwanda economy hit hard as infections rise (The East African)
Rwanda is grappling with a rise in Covid-19 infections, which has forced the government to re-impose containment measures to stem its spread countrywide. Faced with a risk of a severe third wave, the government last week imposed restrictions that are expected to dampen recovery after the economy recovered to a modest 3.5 percent in the first quarter of this year after slowing to 3.6 percent year-on-year in the first quarter of 2020, from 6.1 percent in the same period in 2019. The pandemic has hit Rwanda’s key strategic services sector, particularly retail trade, leisure, hospitality and conference tourism, which collectively account for most jobs in the country.
White gold gamble: Togo turns to private sector for cotton revival (Eyewitness News)
In a bold but contested strategy, the West African state of Togo has bet heavily on the private sector to revive its struggling cotton industry. ‘White gold’, as cotton is sometimes called, accounts for only between one and 4.3% of the country’s GDP, bringing 500,000 jobs for a population of 8.8 million. Yet cotton also has huge potential in terms of job creation, especially for the poorest and smallest producers in the marginalised north. Eyeing the success of privatisation in neighbouring Benin, Togo last December sold a majority stake in its largest cotton producer, the New Cotton Company of Togo (NSCT), to a Singaporean giant. NSCT says it aims to produce 135,000 tonnes next year and 225,000 by 2025 – a target that many say is a big ask.
Africa
AfCFTA considers $40b fund for tariff-reducing countries (Graphic Online)
The African Continental Free Trade Area (AfCFTA) Secretariat, is working towards establishing an adjustment fund to serve as a cushion for countries that will reduce their tariffs to support the implementation of the agreement. The secretariat said it was concerned about the possible drop in revenue for countries in that circumstance and that the fund would help to lessen the economic impact of tariff reduction on such countries. The secretariat said it had already made available $1.5 billion for the fund and was mobilising resources to increase it to $40 billion. Mr Wamkele Mene stressed the need for governments to desist from considering tariffs as a revenue generation tool, but should rather be an industrial development tool to propel the growth of the continent.
He, however, mentioned currency convertibility as among the key issues affecting trading within the continent, revealing that the cost of currency convertibility alone added about $5 billion to the cost of doing business in the continent. To address this challenge, he said the secretariat was establishing a Pan-African payment platform which would offer businesses an opportunity to conveniently make payments without necessarily converting their currencies. “We are also establishing digital platforms that will enhance the ease of doing business. This will make it easier for SMEs to connect with larger markets on every part of the continent and accelerate interconnectivity,” he said.
AfCFTA strengthens the continent’s energy transition (ESI-Africa)
The AfCFTA Agreement aims to reduce all trade costs and enable Africa to integrate further into global supply chains – it will eliminate 90% of tariffs, focus on outstanding non-tariff barriers, and create a single market with free movement of goods and services. Cutting red tape and simplifying customs procedures will bring significant income gains. Beyond trade, the pact also addresses the movement of persons and labour, competition, investment, and intellectual property.
One of the industries that can benefit from AfCFTA is the energy sector, both the traditional oil and gas operators as well as the growing number of renewable enterprises. Oil and gas and mineral resources account for more than 75% of the continent’s exports and with the high growth potential in oil and gas, it will still have a role to play in the short and mid-term. Estimations vary but recent figures put Africa’s proven gas reserves at 487.7 tcf with proven oil reserves in the region of 125 billion bbl.
Countries Implementing the Simplified Trade Regime Set to Rise (COMESA)
Ethiopia is set to start implementing the COMESA Simplified Trade Regime (STR) and other related trade facilitation instruments, which are critical in strengthening cross-border and COMESA intra-regional trade especially during this time of the COVID-19 pandemic. Eight other regional States including Burundi, D R Congo, Kenya, Malawi, Rwanda, Uganda, Zambia, and Zimbabwe are already implementing the STR. COMESA launched the STR in 2010 to simplify and streamline the documentation and procedures for the clearance of small cross border traders’ consignments, while enabling them to benefit from the COMESA preferential tariffs trading environment. “Previously, preferential trade regime benefitted the big and established traders who are able to obtain the Certificates of Origin and to complete required customs documents with ease. This excluded small-scale traders,” said the Director of Trade and Custom in COMESA, Dr Christopher Onyango.
Can EAC partner states have centralized tax system? (Independent)
Uganda’s finance ministry and Uganda Revenue Authority executives have agreed that there is need to centralize collection of revenues within the East African Community. This, they say, will play an important role on mitigating tax competition which has significant implications on attracting investors. Leonard Kizito Ojara, the Commissioner of Economic Affairs at the Ministry of EAC Affairs revealed during the Post-EAC Budget Dialogue on June.22 that Uganda as a member of the trading bloc is ready to implement policies geared towards the harmonization of the policies because the government knows its implications. “Uganda has an elaborate regime that lists the qualifying sectors. In Kenyan and Tanzania, regimes are wider without being limited to specific sectors,” SEATINI Uganda Executive Director, Jane Nalunga said adding that Uganda tries to favor local industries and EAC citizens.
African mining needs responsible rethink for future success (Mining Weekly)
Amid a changing operating landscape being shaped by the Covid-19 pandemic, technology advancement and climate change, the African mining sector finds itself in unchartered and uncertain territory, necessitating a shift in how the sector will operate going forward. To this end, stakeholders such as policy think tank SAIIA senior fellow Deon Cloete says the African Mining Vision (AMV), which was drafted in 2009, already illustrated the need for futures literacy, foresight and anticipatory governance. Mastering the ability to view uncertainty as a resource, rather than the enemy of planning, is key to transforming the African mining sector. Therefore, adopting the discipline of anticipation in the aftermath of the global Covid-19 pandemic should include the use of foresight methods beyond the conventional limitations of mineral and mining forecasting, he points out.
Skills Development, Education and PPPs Key for Successful Job Creation in Africa (expert) (UNECA)
The Economic Commission for Africa and NKC African Economics (an Oxford Economics company) launched today a joint report on “Best Practices in Job Creation, lessons from Africa.” “Through this document, we are sharing successful job creation policies with the hope that they will provide insights and learning for other countries across the region”, said Amal Elbeshbishi, Economic Affairs Officer in charge of employment at the ECA Office for North Africa. This new report reveals that “a focus on skills development and education not only improves employability, but also provides the youth with the tools needed to be successful in entrepreneurship endeavours. Meanwhile, fiscal pressures have intensified following the COVID-19 pandemic, and it will become increasingly imperative [for governments] to partner with the private sector to implement employment creation initiatives,” according to Cobus de Hart, Head of Consulting at NKC African Economics.
The EAC Sectoral Council on Transport Communications and Meteorology (TCM) has directed the United Republic of Tanzania to adhere to the set date of 30th September, 2021 on the implementation of the EAC Roaming Framework. The TCM which met in Dar es Salaam, Tanzania further directed the Republic of Burundi to expedite the implementation of the EAC Roaming Framework. The EAC Roaming Framework or One Network Area was meant to harmonise mobile and data roaming charges across the region and make affordable calls starting from and ending within the region, in addition to enhancing intra-regional trade. The framework imposed price caps on roaming charges and called for the removal of surcharges on cross-border telecommunications traffic. So far, the Republics of Kenya, Rwanda, Uganda and South Sudan have implemented the framework.
African RECs move to formalize and consolidate closer cooperation on labour migration policies (African Union)
The IOM JLMP Programme Coordinator, Mr Edwin Righa said that ‘labour migration has become very important for development and integration of the African continent as highlighted in some of the flagship programmes and policy frameworks like the Migration Policy Framework for Africa (MPFA), the African Union Free Movement Protocol and the Global Compact for Migration’. He highlighted that political will to facilitate trade in the continent must be matched with facilitation of the Rights of Movement, Residence and Establishment as articulated in AU and RECs Protocols and frameworks. It was clearly noted that the AU Free Movement Protocol was the bedrock of facilitating labour migration in the continent, hence all hands should be on deck to facilitate ratifications among AU Member States.
Global
Members and stakeholders provide new impetus to future WCO work on cross-border e-commerce (World Customs Organization)
On 28 and 29 June 2021 the World Customs Organization (WCO) held its Second Global Conference on Cross-Border E-Commerce that was organized with the financial support of the Customs Cooperation Fund of Japan and gathered more than 800 experts from Member Customs administrations, partner international organizations, regional organizations, industry associations, the private sector, development partners and academia. “New business models and the characteristics of e-commerce present a number of challenges that affect the basic principles of traditional Customs procedures,” said the WCO Secretary General, Dr. Kunio Mikuriya in his opening speech. “The WCO Framework of Standards on Cross Border E-Commerce offers 15 standards that broadly cover all issues of relevance to the management of the growing volumes of small and low-value consignments.”
The Secretary General of the International Chamber of Commerce (ICC), Mr. John Denton, joined the WCO Secretary General in the opening session of the conference and highlighted the paramount importance attributed by the ICC to the relationship with the WCO. “The future belongs to a fully digitally-enabled trading system”, said Mr. Denton. “Customs administrations have made remarkable steps to secure cross-border trade in the face of the unprecedented shock created by the spread of the coronavirus. From an economic perspective, you are the true heroes of the pandemic. But it is vital that we don’t lose the gains that we have made through your emergency actions”, the ICC Secretary General added.
World Bank Financing for COVID-19 Vaccine Rollout Exceeds $4 Billion for 50 Countries (World Bank)
The World Bank announced today that it is providing over $4 billion for the purchase and deployment of COVID-19 vaccines for 51 developing countries, half of which are in Africa. More than half of the financing comes from the International Development Association (IDA), the Bank’s fund for the world’s poorest countries, and is on grant or highly concessional terms. This financing is part of the Bank’s commitment to help low- and middle-income countries acquire and distribute vaccines and strengthen their health systems. Since the start of the COVID-19 pandemic, the World Bank Group has approved more than $150 billion to fight the health, economic, and social impacts of the pandemic.
WTO issues new update on trade in medical goods in the context of COVID-19 (WTO)
Following up on the revised note issued on 22 December, the Secretariat’s latest update includes 2020 trade statistics for medical goods from around 100 economies as well as comparisons with 2019 trade statistics. The report also includes a special case study on diagnostic reagents and test kits, two critical products for monitoring the prevalence of the virus and which constitute a crucial barometer for governments to determine policies to fight the COVID-19 pandemic. Trade in medical goods continued to register phenomenal growth of 16.3 per cent in 2020 compared to the 4.7 per cent growth of the same sector in 2019. Medicines remained the largest category by trade value, with more than 50 per cent of the total share of medical goods both in 2019 and in 2020.
World Bank, IMF, WHO, WTO heads call for urgent action to accelerate global vaccine access (WTO)
As many countries are struggling with new variants and a third wave of COVID-19 infections, accelerating access to vaccines becomes even more critical to ending the pandemic everywhere and achieving broad-based growth. We are deeply concerned about the limited vaccines, therapeutics, diagnostics, and support for deliveries available to developing countries. Urgent action is needed now to arrest the rising human toll due to the pandemic, and to halt further divergence in the economic recovery between advanced economies and the rest.
WTO Informal Dialogue Calls for Ministerial Declaration on Plastics (IISD)
World Trade Organization (WTO) members participating in the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP) explored ways to strengthen policy coherence through collective approaches and improved technical assistance to developing countries such as to support global efforts to reduce plastic waste and achieve a circular plastics economy. To guide further action, participants called for a declaration at the WTO’s Twelfth Ministerial Conference (MC12). Among the key topics identified by the proponents for discussion in 2021 are: improving transparency; monitoring trade trends; promoting best practices; strengthening policy coherence; identifying the scope for collective approaches; assessing capacity and technical assistance needs; and cooperating with other international processes and efforts.
Strengthening corporate governance should be a priority to boost economic recovery, says OECD (OECD)
The COVID-19 pandemic has exacerbated existing structural weaknesses in the corporate sector and capital markets. Without an effective policy response, the number of undercapitalised and underperforming firms will likely rise and remain high, while an increasing amount of productive resources will be tied up in non-viable companies, dragging down investment and economic growth, according to a new OECD report. The Future of Corporate Governance in Capital Markets Following the COVID-19 Crisis says that substantial financial resources will be needed for investment both to support the recovery from the COVID-19 crisis and to further strengthen resilience to possible future shocks. Strengthening corporate governance policies and frameworks will help both existing and new companies access the capital they need.
World must strike right balance between ocean protection and production (UNCTAD)
This year’s World Oceans Day on 8 June looked at the role of oceans in the lives and livelihoods of all. This viewpoint is critical as the world seeks sustainable, regenerative ways for people to live and work with the ocean and develop a healthier relationship with our blue planet. To acknowledge the significance of the ocean to the 3 billion people that depend on it for their food and livelihoods, UNCTAD Special Adviser for the Blue Economy, Dona Bertarelli, spoke at a series of events during the month-long ocean celebrations. Throughout her engagements in June, Ms. Bertarelli emphasized that it’s critical to pull off the great balancing act between production and protection of our oceans.
Protecting nature could avert global economy losses of $2.7 trillion per year (World Bank)
A new World Bank report estimates that the collapse of select ecosystem services provided by nature – such as wild pollination, provision of food from marine fisheries and timber from native forests – could result in a decline in global GDP of $2.7 trillion annually by 2030. The Economic Case for Nature underscores the strong reliance of economies on nature, particularly in low-income countries. The report highlights that Sub-Saharan Africa and South Asia would suffer the most relative contraction of real GDP due to a collapse of ecosystem services by 2030: 9.7 percent annually and 6.5 percent, respectively. This is due to a reliance on pollinated crops and, in the case of Sub-Saharan Africa on forest products, as well as a limited ability to switch to other production and consumption options that would be less affected.
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National
SA’s trade partners embroiled in nasty spat over alleged abuse of UN resources (Independent Online)
South Africa’s trade partners, the UK and the Democratic Republic of Congo, are in a nasty entanglement, with the UK accused of abusing the UN’s scarce resources in secret probe. The Serious Fraud Office (SFO) in the UK is fingered in abusing UN resources in a clandestine investigation they are running against Kazakhstan giant mining house ENRC in the Democratic Republic of the Congo. The Star is informed that some SFO officials sneaked into the DRC in April 2021, claiming to be employed by the UN and attempted to collect information and intelligence on ENRC, but their attempts came to naught when it became apparent that they were not UN officials.
Local tyre manufacturers driving more sustainable practices (Engineering News)
The South African Tyre Manufacturers Conference (SATMC) and its members Bridgestone, Continental, Goodyear and Sumitomo Rubber SA are leading the way in improving the industry’s impact on the environment, SATMC highlights. It notes in a statement that the industry is currently focussing on four main areas of improvement – the proper mutilation and disposal of waste tyres, a reduction of materials used in manufacturing tyres, the sustainable sourcing of materials and a reduction in carbon emissions.
Kenya trade deficit widens on machinery imports rise (Business Daily)
Kenya’s trade deficit for the first four months of the year widened by 29.7 percent to Sh420 billion on the back of an increase in imports of commercial goods, data from the Central Bank of Kenya (CBK) shows. The import bill grew by 22.5 percent to a record Sh669.4 billion for the period driven largely by commercial goods, which accounted for 97 percent of expenditure on imports. Total export receipts, on the other hand, grew at a relatively slower pace of 12.2 percent to Sh248 billion, compared to the Sh221.9 billion earned over a similar period last year. Last year’s shutdowns of mass production and supply chain disruptions due to the rare, Covid-led twin supply-demand shock had helped Kenya narrow the trade deficit on the back of lower imports. This is, however, unwinding now as countries reopen their economies after the beginning of the global vaccination programme, which has resulted in a jump in international trade.
Truckers hit as cargo volumes decline at Mombasa port (Business Daily)
A decline in cargo at the port of Mombasa has hit freighters who have seen 40 percent of the trucks parked due to lack of business. The slowing demand for ferrying cargo has also affected freight charges with the cost of transport to Kampala dropping by 17 percent, according to the Kenya Transporters Association (KTA). KTA chief executive officer Dennis Ombok said they are now charging as low as $2,000 down from $2,400 with the decline attributed to sluggish demand. “The volumes of cargo at the port have gone down and now most trucks have been parked due to lack of business,” Mr Ombok said in an interview with the Business Daily. Kenya Ports Authority acting managing director Rashid Salim said the fall in cargo has been occasioned by the effects of the Covid-19 and a shortage of containers that have affected the shipping industry across the world.
S. Sudan firm sues over termination of its operations at Mombasa port (The East African)
A South Sudanese clearing company is seeking to challenge termination of its operations at the Port of Mombasa by two South Sudan government agencies. AA Global Logistics Ltd wants to have a unilateral decision by the Director General South Sudan Customs Service and South Sudan Embassy in Kenya contained in their letters dated April 29 and May 7, whose effect is to terminate its operations at the Port of Mombasa, quashed. According to the company, which has also named Kenya Ports Authority as an interested party, the decision by the respondents to terminate its operations at the Port of Mombasa is high handed and capricious. “To terminate the applicants’ operations is flawed in law for lack of any legal basis to warrant the termination,” argued AA Global Logistics Ltd in its application seeking leave (permission of the court) to institute judicial review proceedings against the two South Sudan agencies.
Kenya’s gross domestic product (GDP) is projected to grow by 4.5 percent in 2021, signaling a partial recovery from the COVID-19 (coronavirus) pandemic which caused growth to stall last year. According to the 23rd edition of the Kenya Economic Update, Rising Above the Waves, private consumption is expected to strengthen, supported by a recovery in wages and household incomes, and strong remittances. A slower deployment of vaccines due to supply challenges, logistical impediments to domestic distribution, and vaccine hesitancy, could weaken the recovery. Furthermore, external factors such as setbacks to the global economy due to a resurgence in infection rates could adversely impact the projected recovery in Kenya’s goods exports, tourism, and capital inflows. In an adverse scenario, near term average growth would be lower, at 3.7 percent. On the upside, the pandemic’s economic impacts could fade faster than anticipated, including due to accelerated vaccination, leading to a faster recovery in economic activity.
Economy now stable despite blips – Mthuli (The Herald)
The Government has assured economic stability despite flash blips witnessed recently and the threat of the Covid-19 pandemic that has left many scars on global economies. Finance and Economic Development Minister, Professor Mthuli Ncube said this in an interview with The Herald, giving assurance that measures put in place to insulate the local currency were sustainable and being fortified. “There is a predictable environment, the exchange rate and also a downward environment for inflation. You want inflation to come down and it is on the way down overall. He said the current situation is that there is still macro-economic stability and there is determination to maintain macro-economic stability and supporting sustainable economic growth, on the macro front, as well as providing cover for the micro-economy.
Angola: Changes in oil and gas sector accelerate economic diversification (International Financial Law Review)
Angola is among the resource-richest countries in the world, but its economy seems to be forever moving at a crawl. The reason is well-known: over the past decades, it has become so dependent on petroleum that it has neglected every other key sector. In fact, hydrocarbon production still represents over 90% of the country’s exports. Once famed for being a major global producer and exporter of iron ore, gold and copper, the industries in Angola have largely slowed. Likewise, production of coffee, sugarcane and cotton, timber and paper-pulp, and processed fishing have also diminished, and Angola’s exports of these products today represent close to a hand full of nothing. The pandemic has hit Angola hard. A stimulus plan including social assistance and health spending measures was cleared, a supplementary budget (using a conservative oil reference price) was approved, and a set of tax and monetary measures aimed at supporting the economy and controlling inflation were passed.
Sudan to Receive Debt Relief Under the HIPC Initiative (World Bank)
The Executive Boards of the World Bank’s International Development Association (IDA) and the International Monetary Fund (IMF) have determined that Sudan has taken the necessary steps to begin receiving debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Debt relief will support Sudan in implementing essential reforms to improve the lives of its people by allowing the freeing up of resources to tackle poverty and improve social conditions. Sudan’s external public debt will be irrevocably reduced – through HIPC debt relief and other debt relief initiatives anchored to the HIPC initiative – by more than US$50 billion in net present value terms, representing over 90 percent of Sudan’s total external debt – if it reaches the HIPC Completion Point in about three years’ time.
Morocco Economic Monitor: Building Momentum for Reform (World Bank)
Morocco stands out as a country that has seized the COVID-19 crisis as an opportunity to launch an ambitious program of transformative reforms. After its initial efforts to mitigate the immediate effects of the pandemic on households and firms, the authorities have launched various policies to correct long-standing inequities and overcome some of the structural bottlenecks that have constrained the performance of the Moroccan economy in the recent past. This reform program has the following pillars: (i) the creation of a Strategic Investment Fund (the Mohammed VI Fund) to support the private sector; (ii) the overhaul of the social protection framework to boost human capital; (iii) the restructuring of Morocco’s large network of State Owned Enterprises. In addition, the government has recently unveiled the terms of a new development model that places significant emphasis on human development and gender equity, and on the need to reinvigorate recent efforts to incentivize private entrepreneurship and boost competitiveness. If successfully implemented, these reforms could lead to a stronger and more equitable growth path.
Morocco asks Egypt to abide by fair trade rules (The North Africa Post)
Moroccan Trade Minister has asked Egyptian peer to abide by fair trade principles in line with the Agadir Free Trade deal after Egyptian authorities blocked on purpose a cargo of Dacia cars made in Morocco. Trade Minister Moulay Hafid Alamy told MPs he complained to his Egyptian peer about the unjustified delays and waved the card of reciprocity. He said that cars made by the same company at Somaca factory in Casablanca were allowed in while a cargo of 630 Dacia cars was blocked, adding that delays in Egyptian ports may reach up to 3 months.
Speaking on L’Expert Tunisian tv, Libya’s Minister of Industry Ahmed Abuhisa said it has become a given and a necessity for Libya and Tunisia to have much closer trade linkages and interconnections as they complement each other. Abuhisa was speaking on the margins of the ‘Financing Investment and Trade in Africa 2021’ conference that was held between 24-26 June at the Laico Hotel, Tunis and organized by the Tunisian African Business Council (TABC). The event had dedicated a day to Libya during which transit trade with sub-Saharan Africa was discussed in a workshop entitled: “Reviving the transit route and transit trade and making Tunisia and Libya the gateway to sub-Saharan Africa”. Localizing industry and manufacturing Abuhisa said Tunisia is well ahead and the model for Libya to follow in industry/manufacturing. It is our first model to learn from, he insisted.
Experts unveil fortunes awaiting DRC, Africa in the battery-electric vehicle value chain (UNECA)
A senior official of the Subregional Office for Central Africa of the United Nations Economic Commission for Africa (ECA/SRO-CA) has urged the Government and private stakeholders of the Democratic Republic of the Congo (DRC) to fully appropriate the African Mining Vision of 2009 in order to sustainably exploit and beneficiate the country’s strategic mineral deposits, link the mining sector to other sectors of the economy and create lasting jobs and wealth for Congolese and other Africans. Jean Luc Mastaki, who heads the Economic Diversification and Policy Reform Section of ECA/SRO-CA, was speaking at the weekend at the Protestant University of Congo during a panel discussion to announce and emphasise the importance of a forthcoming DRC-Africa Business Forum meant to prompt the development of a robust battery, electric vehicle (BEV) and renewable energy value chain and market in Africa. Such a value chain should be capable of helping Africa to capture a larger share of this expanding BEV industry projected to be worth US$8.8 trillion by 2025.
Africa
The African Continental Free Trade Agreement – A major boost to eliminating poverty in Africa (iAfrica)
The African Continental Free Trade Agreement (AfCFTA) will create the largest free trade area (since the formation of the World Trade Organisation), in the world measured by the number of countries participating. It has the potential to lift 30 million people out of extreme poverty, but achieving its full potential will depend on putting in place significant policy reforms and trade facilitation measures. It will make African countries more competitive. Successful implementation will be key, including careful monitoring of impacts on all workers – women and men, skilled and unskilled – across all countries and sectors, ensuring the agreement’s full benefit. Under AfCFTA, extreme poverty would decline across the African continent – with the biggest improvements will be in countries with currently high poverty rates.
The Economic Commission for Africa (ECA) will continue to support the LAPSSET Corridor Infrastructure Project linking the East African countries of Kenya, Ethiopia and South Sudan with the potential of increasing trade, peace, security and women’s development, its Executive Secretary Vera Songwe said on Monday. In a speech at a ministerial meeting to inspect projects under the corridor in Addis Ababa, Ms Songwe said the ECA was supporting the project, which connects the three countries by roads, rail and ports, not just as an infrastructure project but as a gender project that would see women traders benefit from lower costs of doing business that the facilities would engender.
LAPSSET in good shape to materialize regional integration (Ethiopian Press Agency)
The Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor Project, which aims to connect Ethiopia, Kenya and South Sudan via road, rail, air and petroleum pipeline said to demonstrate substantial infrastructural progress and it is in a good shape to enhance connectivity among the three countries. Addressing the meeting, Ethiopia’s Transport Minister Dagmawit Moges said that the main section of Ethiopian side of the project is near to completion as the 92 km express road is completed, the Moyale one stop center inaugurated and preparation of necessary legislations are completed.
Implementing gender responsive strategies towards combatting Covid-19 in Africa (African Union)
The year 2020 witnessed the full effect of the Covid-19 global pandemic that met a world unprepared to deal with the disruptions it brought on, drastically changing and impacting the lives of people all over the world and generations to come. In Africa, like elsewhere, communities and nations banded together to adapt to the new Covid-19 reality. However, as has been witnessed in the past, vulnerable groups were still left with a greater burden to bear as a result of the economic and social impact of Covid-19 lockdowns coupled with inadequate access to healthcare facilities. Africa’s women and girls constitute one of the most vulnerable groups impacted by Covid-19 and the lockdowns.
Gender mainstreaming is a priority for the African Union in its approach towards responding to the pandemic. The African Union is working on a report that will consist of necessary approaches that will aid in assessing the impact of COVID-19 responses on gender equality and women’s empowerment as well as raise awareness and sensitise African citizens by demonstrating the need for gender mainstreaming in tackling the impact of COVID-19 on women and girls. The report will provide recommendations to member states on concrete interventions which can be enacted in policy and practice across sectors such as the economy, health and education, to ensure gender-responsive COVID-19 responses.
Analysis: African countries collaborate to advance Africa through innovation (Briefly)
The African Union Development Agency (AUDA-NEPAD), the Council for Scientific and Industrial Research (CSIR) and Stellenbosch University formed a trilateral partnership to help in the development of African countries. The arrangement will be focusing on the improvement of food security, clean energy and education through innovation of already existing science and technology elements. The AfCFTA in collaboration with AUDA-NEPAD has identified priorities that are centred on increasing investments in human development. Such increases in welfare come with effective and capable institutions such as the public, private, and academic sectors, as well as non-governmental, inter-governmental, regional, and continental institutions.
5G can add value in Africa, help address mobile broadband inefficiencies (Engineering News)
Fifth-generation (5G) mobile telecommunications technologies can add value and solve several consumer and business challenges in Africa. Previous generation mobile broadband technologies have limitations regarding network capacity, spectral efficiency and latency, but 5G is well-positioned to ameliorate concerns around the inefficiencies of previous mobile broadband generations, says information and communication technology market research multinational IDC West Africa senior research analyst Oluwole Babatope
New report finds fruit, vegetables, protein remain out of reach for most Africans (FAO)
According to the latest Africa Regional Overview of Food Security and Nutrition, Africans face some of the highest food costs when compared to other regions of a similar level of development. Nutritious foods, such as fruits, vegetables and animal proteins, are relatively expensive when compared to staples such as cereals and starchy roots, and, the report argues, some of the reasons for this are systemic. Overall progress in meeting global nutrition targets remains unacceptably slow in Africa, according to the report. Sub-Saharan Africa is the only region in the world where the number of stunted children continues to rise. Although the prevalence of stunting is declining, it is falling only very slowly and despite progress, nearly a third of the children in sub-Saharan Africa are stunted.
The findings highlight the importance of prioritizing the transformation of agri-food systems to ensure access to affordable and healthy diets for all, produced in a sustainable manner. Smart policies and interventions throughout agri-food systems are needed to raise yields, lower costs, promote nutritious foods, and reduce health and environmental costs.
Economic Integration in West Africa Starts with Road Corridors (World Bank)
While significant efforts have been made in recent years to facilitate transport along West Africa’s corridors, building transport infrastructure remains a huge challenge. “As a woman, it’s not always easy spending long hours on the road. Our corridors do not have enough rest areas with proper bathrooms and facilities, and I often have to wash up behind my truck,” Maman Africa says. Insecurity creates additional logistical challenges, as violence along corridors has intensified in recent years. “We need a clear security plan because security and document controls often overlap. We want a safe corridor with less red tape and smoother processes that will make our ports and businesses more competitive.”
Innovation at the heart of new Swiss plan for Africa (Business Daily)
The first Swiss strategy for sub-Saharan Africa was only recently adopted by the Swiss government. The document – only the second regional strategy in Swiss Foreign Policy – reflects the fact that Africa is of increasing importance on the world stage and of growing economic relevance. It focuses not only on challenges, but emphasizes the opportunities and, importantly, it no longer argues in terms of aid, but promotes economic cooperation, beneficial to both parties.
Africa’s economic development, in particular, has a direct impact on Europe, both positive and negative. On the one hand, the growing middle classes in many African countries render the continent increasingly attractive for investments and exports; on the other hand, the migration flows of young Africans to Europe – on the rise again just in the last few weeks – remain a cause of concern. A country like Switzerland clearly benefits when Africa prospers. The emphasis of the Swiss government will therefore increasingly shift from development to economic cooperation.
Global
WTO members agree to extend TRIPS transition period for LDCs until 1 July 2034 (WTO)
Since the inception of the TRIPS Agreement, LDCs have benefitted from an extended transition period to apply provisions of the TRIPS Agreement, in recognition of their special requirements, their economic, financial and administrative constraints, and their need for flexibility in order to create a viable technological base. The transition period for LDC members under Article 66.1 of the TRIPS Agreement had been extended twice before (in 2005 and 2013). The decision adopted was the result of intensive consultations over several months. Members were broadly in agreement on the principle of the extension but were unable to reach a decision due to their differences on the additional request that members graduating from LDC status should be accorded additional flexibilities under the TRIPS Agreement after their graduation.
Least developed countries should be prioritised in vaccine cooperation: Nepal (Devdiscourse)
Highlighting the disproportionate impact of COVID-19 on the least developed countries, Nepal has stressed on the need to give due priority to such nations in vaccine cooperation as well as on post-pandemic recovery. Nepal Deputy Prime Minister and Minister for Finance Bishnu Prasad Paudel said this at a key ministerial conference of Asia Pacific countries held virtually by China on Wednesday to discuss the Beijing-backed Belt and Road Cooperation. More than 30 parties, including foreign ministers or economic ministers of relevant countries in Asia-Pacific and representatives of the UN and other international organisations attended the conference themed “Promoting Cooperation on Combating the Pandemic for Sustainable Recovery”. Highlighting the disproportionate impact of COVID-19 on the LDCs and poorer segment of society, he stressed on the need to give due priority to those countries in vaccine cooperation as well as on post-pandemic recovery, the statement said.
Time is running out – global emissions rules for shipping need to be reached now (WEF)
Transport and logistics account for a considerable part of GHG emissions globally, with shipping alone accounting for 2-3%. We, the corporate leaders, must make decisions with long-term perspectives and accelerate the transition now. At the same time, the global community and international regulatory authorities need to move faster on the climate agenda than has been the case so far. At its MEPC76 meeting on June 10-17, the International Maritime Organization (IMO) adopted already-agreed short-term efficiency measures and agreed to start discussing market-based measures. Market-based measures consisting of a greenhouse gas price should be introduced to close the competition gap between new, green fuels and fossil fuels. That way, switching to green fuels will make economic sense for the industry. We support such a CO2 price, and it must be substantial enough to achieve true price parity.
On prioritizing digital communications infrastructure, for digital nomads and new economic promise (Trade for Development News)
Tourism has traditionally been an important tool for many of these countries to develop their economies and bring in foreign revenue. But, as Small Island Developing States (SIDS) have discovered, dependence on tourism can be a double-edged sword, and many of their economies have been seriously affected during the pandemic. LDCs and recent graduates can learn from some SIDS attempts to tap into the growing opportunity from the number of persons seeking to work remotely. Island nations including Dominica have paved the way for emerging economies by launching a variety of schemes to attract remote workers, including new visa categories and targeted marketing efforts. This has been a vital step in recovering some of the income lost due to the dearth of holidaymakers. To both attract this new form of visitor and encourage local workers to take up new opportunities, communications infrastructure is more important than ever. Given that the new remote worker economy usually requires a strong and stable internet connection, it can present a particular barrier for SIDS and LDCs to benefit from this new growth opportunity.
Countries ramp up cybersecurity strategies (ITU)
The latest Global Cybersecurity Index (GCI) from the International Telecommunication Union (ITU) shows a growing commitment around the world to tackle and reduce cybersecurity threats. “In these challenging times, the unprecedented reliance on ICTs to drive society, economy and industry, makes it more important than ever before to secure cyberspace and build confidence among users,” affirmed ITU Secretary General Houlin Zhao. “Governments and industry need to work together to make ICTs consistently safe and trustworthy for all. Some 64 per cent of countries had adopted a national cybersecurity strategy (NCS) by year-end, while more than 70 per cent conducted cybersecurity awareness campaigns in 2020, compared to 58 per cent and 66 per cent, respectively, in 2018.
MDBs’ climate finance rose to $66 billion in 2020, joint report shows (AfDB)
Climate finance committed by major multilateral development banks (MDBs) rose to a total of $66 billion last year from $61.6 billion in 2019, according to the 2020 Joint Report on Multilateral Development Banks’ Climate Finance, published today. Of this, 58 per cent – or $38 billion – was committed to low- and middle-income economies. The total climate co-finance committed during 2020 alongside MDB resources was $85 billion. Together, MDB climate finance and climate co-finance totalled more than $151 billion. The amount of private direct mobilisation stood at $5.9 billion.
Global economy could lose over $4 trillion due to COVID-19 impact on tourism (UNCTAD)
The crash in international tourism due to the coronavirus pandemic could cause a loss of more than $4 trillion to the global GDP for the years 2020 and 2021, according to an UNCTAD report published on 30 June. The estimated loss has been caused by the pandemic’s direct impact on tourism and its ripple effect on other sectors closely linked to it. The report, jointly presented with the UN World Tourism Organization (UNWTO), says international tourism and its closely linked sectors suffered an estimated loss of $2.4 trillion in 2020 due to direct and indirect impacts of a steep drop in international tourist arrivals.
Pandor calls for affordable COVID-19 vaccines at G20 (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, has reiterated South Africa’s support for international efforts to tackle the health and socio-economic impact of the COVID-19 pandemic. The Minister said the country regards “access to affordable vaccines for all” as one of the immediate priorities. Pandor was speaking at meetings of the Group of 20 (G20) taking place in Matera, Italy, on Tuesday. “Every effort must be made to support the rollout of vaccines to all. Defeating the virus is our common interest, as no one is safe until everyone is safe,” she said.
ESCAP launches online tool to help countries visualize and analyze trade integration (ESCAP)
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) today launched the RIVA value chain analyzer, a new online platform to support policymakers, analysts and researchers who want to understand how well integrated countries are in global value chains. Through RIVA, the Regional Integration and Value Chain Analyzer, policy analysts from more than 72 economies can now easily generate insightful graphs and statistics about their contribution to, or dependence on, imports or exports of partner countries across 38 sectors. The tool automates time-consuming data analysis tasks that could previously only be performed by experts with specialized trade and data management skills.
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National
6 in 10 small business owners proactively planning for growth (IOL)
As the lockdown regulations, tightened by President Cyril Ramaphosa on Sunday, continue to put pressure on small, medium and micro enterprises (SMMEs) financially and operationally, 6 in 10 business owners said they were proactively planning for and anticipating growth in the next year. This is according to the Mastercard SME Index released yesterday, which surveyed 300 SMMEs in South Africa between April and last month. While 84 percent of South African SMME owners said the pandemic has negatively impacted their revenue, looking forward, 79 percent were projecting that their earnings will either hold steady or grow in the next year.
Nigeria’s Access Bank faces tough competition in South Africa venture (S&P Global)
Nigeria’s Access Bank PLC faces tough competition from incumbents as it ramps up operations in South Africa, but could find success in niche markets. On May 27, Access renamed its recently acquired unit Grobank Ltd as Access Bank South Africa Ltd. At a press conference to mark the rebranding, the unit’s CEO Bennie van Rooy said it would launch a “full retail banking suite” and highlighted opportunities to provide trade finance, treasury services, loans, and international payments to corporations. Access Bank has long had subsidiaries scattered across sub-Saharan Africa, but they have not been key priorities. Such was the scale of the opportunity in Nigeria that it made little sense for the country’s banks to invest much in their foreign subsidiaries when they could make more money on a single domestic deal, said Ronak Gadhia, Director of Research on Sub-Saharan African Banks at EFG Hermes.
Nigeria needs to build infrastructure to benefit from the AfCFTA (Nairametrics)
Last month, at the UBA Africa Day event which centred on the importance of fixing infrastructure and customs unions to enable the implementation of the African Continental Free Trade Agreement (AfCFTA), the Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, spoke some profound words on the subject matter. “To make it work, we need to do a few more things, including logistic issues that prevent us from benefitting. Some parts of the continent are doing better than us on implementing than others, we still have lorries lined up by border and we are looking for digital passports and things, so that they can move easily… “We need to make it easier to move goods from one part of the country to the other,” she said, citing that Africa must make free trade work to enable the return to economic growth in a post-pandemic world. Nigeria became the 34th African country to fully ratify and submit its Instrument of Ratification of the AfCFTA.
Eureka as Nigeria accidentally discovers gas while searching for oil (Nairametrics)
Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, says the country has “accidentally” discovered 206 trillion cubic feet of gas reserves while searching for crude oil. 206 trillion cubic feet of gas is about 5,834 billion cubic meters of gas. This year, Turkey explorers announced they had discovered 405 billion cubic meters of gas. To put it in context, Nigeria discovered more than ten times the size of gas by “accident” than what Turkey discovered “on purpose”. Nigeria’s crude oil and natural gas resources are the mainstay of the country’s economy. According to the EIA, Nigeria has an estimated 200.4 trillion cubic feet (Tcf) of proved natural gas reserves by the end of 2019 which puts it as one of the highest in Africa. Nigeria exports natural gas primarily as LNG.
Mobile money transactions up 56pc in five months to May (Business Daily)
The value of cash handled by mobile money agents in the five months to May rose by nearly Sh1 trillion compared to a similar period last year, indicating the continued recovery of the economy in the second quarter of this year. Central Bank of Kenya (CBK) data show agent transactions in the period rose by 56.1 percent or Sh982.76 billion to Sh2.73 trillion from Sh1.75 trillion in the corresponding period in 2020, with higher volumes in May boosting this year’s numbers. May recorded a higher amount of transaction volumes compared to the first four months of the year, the CBK data shows.
Rich pickings for exporters under new RBZ incentive scheme (The Herald)
The Reserve Bank of Zimbabwe (RBZ) has started operationalising the incremental export incentive scheme, which will see some exporters retain up to 100 percent of the qualifying portion of their earnings, as it seeks to drive export-led growth. All gold producers, the central bank said, who deliver gold to Fidelity Printers and Refiners, Zimbabwe’s sole authorised gold buyer, above their monthly average, will be allowed to retain 80 percent on the incremental export scheme. RBZ said large scale gold producers who qualify for the incentive will be allowed to export directly gold equivalent to the incremental portion so they can secure loans to support production.
Kenya pledges to work with Somaliland (Nairobi News)
Kenyan leaders are ready to work closely with the Republic of Somaliland to build trade and social networks in the region. Mandera Senator Mohamed Maalim Mahmoud says Somaliland has become a key ally of Kenya in seeking peace and security in the Horn of Africa. “I and other members of the Kenya delegation are extremely elated to be in Somaliland and to witness and celebrate with the people of Somaliland in two momentous occasions this week,” said the Senator. “The first one is the Inauguration of the first phase of the expansion and modernization of the Berbera Port and launch of its second phase. That was a monumental infrastructural feat for Somaliland and our Eastern Africa Region as a whole,” he added.
‘Tanzania regaining in Africa leadership’ (IPPMedia)
“The secretariat is impressed that Tanzania is now re-engaging and taking a leadership role it has been associated with, since the days of founding president Julius Nyerere,” H.E. Mene Wankele said. The AfCTFA secretariat official who is in the country for a familiarization tour, hailed the various steps taken by the government towards ratification of the treaty, noting that after the end of colonialism, the continent started to work towards opening and linking up the continent to create markets and facilitate trade. Foreign Affairs and East Africa Cooperation minister Liberata Mulamula said Tanzania is in the final process of ratifying the AfCFTA pact. “There are a few issues that have to be sorted out because this is a union government and we have to ensure everything has been considered,” she said.
Bagamoyo Port project: State on revival move (Dailynews)
The government is in talks with Chinese investors on the way forward to kick off implementation of the Bagamoyo port in the Coast region. This was revealed yesterday by President Samia Suluhu Hassan as she was gracing the Tanzania National Business Council (TNBC) meeting held at the State House in Dar es Salaam. “I have good news here, that we have started discussion with the investor who came for the Bagamoyo port project with the aim of opening it, for the greater benefit of our nation and the investment sector,” she told members of TNBC. Earlier, the Chairperson of Tanzania Private Sector Foundation (TPSF), Ms Angelina Ngalula explained the necessity of the country to have a modern port that is capable of hosting large ships. “As a country, we really need to have this port which is strategically located, it can be easily linked to the Standard Gauge Railway (SGR) and Tanzania Zambia Railway (Tazara) infrastructures,” she said.
Libya has elements for successful transit trade: Libyan Business Council eastern branch head speaking at Tunis conference (Libya Herald)
Libya has the elements for a successful transit trade industry, Fawzia Furjani head of the Libyan Business Council (LBC) eastern branch said Saturday. She was speaking on the closing day of the 4th edition of the Financing Investment and Trade in Africa 2021 conference that was held between 24-26 June at the Laico Hotel, Tunis. The event, organized by the Tunisian African Business Council (TABC) dedicate a day to Libya during which Furjani was speaking. The day was devoted to a workshop entitled: “Reviving the transit route and transit trade and making Tunisia and Libya the gateway to sub-Saharan Africa”. Furjani said Libya is safe and that activating transit trade through it, to and from Africa, is a project that will bring reward to Libya and a source of great income – without dependence on oil.
First ‘transit trade’ trucks travel from Tunisian border to Misrata Free Zone (Libya Herald)
Misrata Free Zone announced today that the first convoy of goods-laden trucks arrived from the Libyan-Tunisian land border, Ras Ajdir – launching transit trade for the Zone. The convoy of trucks crossed escorted by customs guards. MFZ did not name the goods being transported but revealed that the consignment was for Rouge Supply and Export, adding that it is the first foreign company licensed by MFZ to conduct transit trade. MFZ said transit trade will achieve a set of direct and indirect gains for the Libyan economy, will raise the volume of intra-trade between Libya and neighbouring countries, in addition to achieving a set of benefits as another source of hard currency, and achieving development along the lines that it passes through in the future.
Rwanda passes law on using, growing, exporting cannabis (Taarifa Rwanda)
The 14th Meeting of the Sectoral Council on Agriculture and Food Security (SCAFS) came to a close in Arusha, Tanzania on 25th June, 2021. Chairing the Ministerial Session, Chief Administrative Secretary, Ministry of Agriculture, Livestock, Fisheries and Cooperatives, Republic of Kenya, Mr. Lawrence Angolo Omuhaka, noted the urgent need for the region to implement harmonized policies and to operationalize regional instruments in order to guarantee sustainable agricultural production, trade in commodities and to attain sustainable regional food and nutrition security.
Speaking on behalf of the EAC Secretariat, Director of Productive Sectors, Mr. Jean Baptiste Havugimana noted that more than 70% of the industries in EAC were agro-based, including production of agricultural inputs; while 75% of the traded goods are agricultural commodities and products. “Linking agricultural trade and industry is therefore imperative in promoting agricultural production as industries provide the market for agricultural produce while trade delivers processed agricultural products to the market/consumer,” noted Mr. Havigimana. “Textile industries need to be promoted instead of depending on import of used cloths. It is necessary to promote local consumption and procurement of locally produced goods as emphasized by the Heads of State,” he noted.
Mauritius: 2021 Article IV Consultation (IMF)
Economic Impact of the Pandemic and Policy Responses. Mauritius has been successful in containing the COVID-19 pandemic thanks to strict health measures but the halt in tourism has significantly affected its tourism-dependent economy. A comprehensive set of stimulus measures to mitigate the economic impact of the pandemic, including a wage subsidy and income support for the self-employed, have provided support to firms and households.
Africa
SADC-PF Concerned That Some Member States Are yet to Ratify Africa Free Trade Agreement (Parliament of South Africa)
The Secretary General of the AfCFTA Secretariat, Mr Wamkele Mene, told a virtual sitting of the Southern Africa Development Community Parliamentary Forum (SADC-PF) that reducing barriers to trade and increasing free movement of goods will drive Africa’s recovery. “Africa has a unique opportunity to position for industrial development and value addition. Something drastic has to be done to resolve low growth. This is an opportunity to accelerate Africa development.”
Mr K Sibande noted that commodity diversification in Africa is too low and that African countries should trade more with one another. Poor ICT infrastructure, digital penetration and road infrastructure compounds the problem. Mr Sibande asked SADC-PF if it was possible to increase intra-African trade without industrialising. He identified competitiveness, industrialisation and support for regional infrastructure development as key elements in the process. The Southern African Customs Union’s (SACU’s) Ms Paulina Mbala Elago said the low intra-African trade is a characteristic of a lack of market integration. “Trade liberalisation is not sufficient to maximise gains from trade. Importantly, we need to refocus our agenda on industrialisation.”
Sub-Saharan Africa: We Need to Act Now (IMF Blog)
Sub-Saharan Africa is in the grips of a third wave of COVID-19 infections that threatens to be even more brutal than the two that came before. This is yet more evidence of a dangerous divergence in the global economy. One track for countries with good access to vaccines, where strong recoveries are taking hold. And another for those countries that are still waiting and at risk of falling further behind. Without significant, upfront, international assistance – and without an effective region-wide vaccination effort – the near-term future of sub-Saharan Africa will be one of repeated waves of infection, which will exact an ever-increasing toll on the lives and livelihoods of the region’s most vulnerable, while also paralyzing investment, productivity, and growth. In short, without help the region risks being left further and further behind.
EAC tables USD 91.7 million budget estimates before EALA for the 2021/2022 Financial Year (EAC)
The East African Community has tabled before the East African Legislative Assembly the budget estimates for the 2021/2022 Financial Year totalling US$91,784,296. The Chairperson of the Council of Ministers and Kenya’s Minister for EAC, Hon. Adan Mohamed, in the Budget Speech read on his behalf by Chief Administrative Secretary, Hon. Ken Obura, said that the 2021/2022 budget was coming at a time the COVID-19 pandemic had ravaged economies through lockdowns and economic shutdowns that had affected economic performance in the entire region negatively. The 2021/2022 Budget is themed Economic Recovery through Industrialization and Inclusive Growth.
On the EAC Single Customs Territory, the Cabinet Secretary said that during the next financial year, Customs would focus on some key areas, among them: Finalization of the review and development of Customs Union Instruments including the comprehensive review of the EAC Common External Tariff (CET), EAC Customs Management Act 2004, and the EAC Regional Customs bond and the regulatory framework for the Assembly Sector. Customs would also focus on the: Consolidation of the gains of the Single Customs Territory for the full attainment of a fully-fledged Customs Union; Enhancement of Interconnectivity of systems in key sectors to facilitate information exchange; Development of suitable infrastructure to facilitate cross border women traders, and; Strengthening of mechanisms to resolve Customs related Non-Tariff Barriers (NTBs) that hamper intra EAC trade.
Berbera Port enters second phase, opens container terminal (Engineering News)
Trade and logistics multinational DP World on June 28 inaugurated a 500 000 twenty-foot equivalent unit (TEU) a year container terminal at the Berbera Port, in Somaliland. The followed completion of the first phase of the port’s expansion as part of its development into a major regional trade hub to serve the Horn of Africa. DP World has committed to investing up to $442-million to develop and expand the Berbera port. The economic zone will serve as a centre of trade with the aim to attract investment and create jobs, and will target a range of industries, including warehousing, logistics, traders, manufacturers and other related sectors. It will allow producers, suppliers, and customers to operate in a conducive and competitive environment for investment and trade.
Ethiopia, Kenya, S. Sudan fast-track mega regional infrastructure dev’t program (Xinhua)
Ethiopia, Kenya, and South Sudan on Monday reiterated their commitment to advance the implementation of a mega infrastructure project in the East Africa region, also known as the LAPSSET Corridor Program. Kenya’s Cabinet Secretary for East African Community and Regional Development, Adan Mohammed, said Africa is challenged by unemployment, especially among the youth, low levels of intra-African trade and industrialization, and inefficient agriculture. “The other major issue which is the subject of why we are meeting today is the poor infrastructure that links the continent of Africa together. And that is why we believe that LAPSSET and similar programs will play a very big role reversing these challenges that we are facing today as a continent,” said Mohammed. “For Africa to realize its potential of regional integration through transformative regional infrastructure, harmonization of monitoring policies, standards, the removal of tariff and non-tariff barriers, improving business climate must be the continued areas of focus for all of us on the continent,” he said.
Investment, deal-making and energy transition to top the agenda at African Energy Week 2021 (Africanews)
The African Energy Chamber (AEC) is reaffirming its commitment to Nigeria with a planned visit by AEC Executive Chairman NJ Ayuk on the 5th-10th July 2021. With the goal of supporting Nigeria in its efforts to pass the Petroleum Industry Bill, market the country as a premier investment destination, and promote African Energy Week (AEW) 2021 as the ideal networking platform for Nigerian oil and gas companies, Ayuk is prioritizing pan-African partnerships and continent-wide energy growth. Committed to African-focused dialogue, Ayuk’s visit will comprise private meetings with both government representatives, National Oil Company leaders, and private sector executives.
A bigger role for women in African e-commerce (IGCL)
Africa’s e-commerce sector has thrived during the Covid-19 pandemic, but gender gaps and reduced access to finance for women leaves room for economic improvement. E-commerce in Africa has expanded rapidly in the last 20 years and is considered “a powerful engine for economic development” according to Women and E-commerce in Africa, a report by the International Finance Corporation (IFC). Rashida Abdulai, lawyer and CEO of Strand Sahara, an online legal platform serving African businesses, agrees that “e-commerce presents a great opportunity for economic growth across Africa”. Women represent half of Africa’s population and in many African countries, female entrepreneurs outweigh their male counterparts, so “women having the same opportunities as men to thrive on ecommerce platforms will have a huge economic impact on African economies,” Abdulai tells ALB.
AAAM, ARSO to deepen automotive standards in Nigeria, others (Guardian)
The African Association of Automotive Manufacturers (AAAM) has said that the project to harmonise standards across the automotive sector in Africa is on course. AAAM said the African Export-Import Bank (Afreximbank) is supporting the African Organisation for Standardisation (ARSO), as it works to harmonise standards to facilitate the accelerated development of the automotive industry across the continent. The harmonised standards are to be adopted by individual African countries, facilitating cross-border trade, under the African Continental Free Trade Agreement (AfCFTA). According to AAAM, there are 1432 international automotive standards worldwide, developed largely by the International Organisation for Standardisation and the American Society for Testing and Materials. To initiate the process of developing African automotive standards, ARSO prioritised what is referred to as ‘Whole Vehicle Standards’, encompassing motor vehicle components, accessories and replacement parts.
Addressing COVID-19 while building long-term capacity (Proshare Nigeria)
The African pharmaceutical market’s estimated worth is between US $40 - $65 billion, but it remains largely untapped, with a heavy reliance on imports. The market is expected to grow in response to the novel coronavirus (COVID-19) pandemic, a changing disease burden, urbanization, new technologies, health insurance expansion, anticipated continental market integration and industry consolidation. But the ongoing pandemic shows the urgent need to unlock new partnerships and investments to accelerate the local production of medical supplies, medicines and vaccines, which could save lives and create jobs across the healthcare and pharma value chains. As Africa’s pharmaceutical sector continues to respond to COVID-19 with international partnerships, policymakers, investors and other industry players need to pay attention to the changes spurred by the crisis, along with other major trends shaping the market.
ECA, NKC African Economics to Present Joint Report on Best Practices in Job Creation in Africa (UNECA)
The Economic Commission for Africa and NKC African Economics (an Oxford Economics company) will present on Wednesday 30 June their joint report on “Best Practices in Job Creation, lessons from Africa.” The COVID-19 crisis is threatening to leave a lasting negative impact on Africa’s economy and employment opportunities, especially among the region’s bulging youth population. As Africa initiates its economic recovery, this report aims to inform policy makers seeking to accelerate job creation about successful areas of intervention and key lessons through an investigation of 34 employment initiatives. Fifteen African countries were covered as part of this study (Algeria, Angola, Cameroon, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Kenya, Mauritius, Morocco, Nigeria, Rwanda, South Africa, Tanzania and Tunisia).
Global
WTO report: Trade policy restraint prevented destructive acceleration of protectionism
Trade policy restraint by G20 economies, as well as WTO members more broadly, prevented a destructive acceleration of protectionist trade measures that would have further hurt the world economy, according to the WTO’s latest Trade Monitoring Report. But WTO Director-General Ngozi Okonjo-Iweala cautioned that obstacles to trade remain in place and continue to undermine global efforts to increase and diversify the production of vaccines.
India, China, 50 others to float food security proposal at WTO (Economic Times)
Ahead of a key ministerial meeting of the World Trade Organization this year, India, China and 50 other developing countries are working on a proposal to be able to purchase, stockpile and distribute food to ensure food security. As part of a lasting solution for their public stockholding programmes, the developing countries want programmes such as procurement of food products from farmers at minimum support price and their distribution at subsidised rates to the poor, included in the global rules of agriculture. They also want such programmes to be exempt from subsidy reduction commitments.
Letter from 7 Civil Society Groups to USTR supporting LDC request to extend TRIPS Waiver for as long as they remain LDCs (International IP and the Public Interest)
We urge the United States to support the request of Least Developed Countries (“LDCs”) to the TRIPS Council of the World Trade Organization (IP/C/W/668) for a transition period from implementing the TRIPS Agreement for as long as they remain LDCs. The current transition period is due to expire on July 1, 2021. The preamble of the TRIPS Agreement recognizes the “special needs” of LDCs and their need for “maximum flexibility in the domestic implementation of laws and regulations in order to enable them to create a sound and viable technological base.” Accordingly, Art. 66.1 grants LDCs an automatic right to transition period following a duly motivated request by LDCs. Although LDCs only make up 14 percent of the global population, they account for 50 percent of the world’s extremely poor (i.e., those living on less than $1.90 a day). Their constraints include the very limited availability of skilled labor, productive capacities, access to secondary education, electricity, and internet access. Consequently, LDCs do not have the conditions to benefit from the full implementation of the TRIPS.
In view of the exceptional massive challenges lying ahead for LDCs and uphill battle towards sustainable development with a viable technological base, we are of the view that the LDC Group’s request to the WTO is justified and urge you to support the LDCs’ request.
Commentary: Your supply chain is the secret to sustainability success (Fortune)
Many companies can decarbonize their supply chains – and fight climate change – without inflicting major cost increases on their customers. With the potential for huge impact at manageable cost, why has the supply chain sustainability agenda not yet been launched at scale? Many company leaders are eager to cut supplier emissions, but it’s a daunting proposition. While they are getting increasingly adept at tracking and measuring their own emissions, it’s much more challenging for leaders to have the same clarity about their suppliers’ product-specific emissions – especially for companies with tens of thousands of product components and a constantly changing supplier base. They face obstacles in data and analytics, tracking and measuring, procurement, certification, and more.
The trillion dollar climate finance challenge (and opportunity) (UN News)
Investments in renewable energy and sustainable infrastructure are growing, however from January 2020 to March 2021, globally, more money was spent on fossil fuels, which when burned, create the harmful gasses driving climate change. Many countries lack the financial resources to make the transition to clean energy and a sustainable way of life that could reverse climate change. The UN says that climate finance is the answer because not investing will cost even more in the long-term, but also because there are significant opportunities for investors. Significant investments are needed and international cooperation is critical. More than a decade ago, developed countries committed to jointly mobilize $100 billion per year by 2020 in support of climate action in developing countries.
Government support has helped save many SMEs but challenges remain (OECD)
The COVID-19 pandemic has taken its toll on small‑ and medium-sized enterprises and entrepreneurs globally, but they are weathering the storm thanks to strong government support packages, according to a new OECD report. The OECD SME and Entrepreneurship Outlook 2021 looks at measures taken to help SMEs survive, and in many cases thrive, during the pandemic. It also considers the longer-term effects of the crisis and how countries can create the conditions for a greener, more sustainable and inclusive recovery. The report finds that SMEs and entrepreneurs are fundamental in driving the recovery and confirms that government rescue packages are playing a crucial role.
New ITC guide lays out the business case for sustainable investment (ITC)
Caring for the environment and local communities is good for business – and that’s just one reason international investors should embed sustainability in each step of their operations. With COVID-19 putting more pressure than ever on small firms, sustainable investment is critical. Yet investors lack information on sustainability requirements and best practices. A new International Trade Centre (ITC) publication, The Business Guide for Sustainability in Foreign Investments, fills that gap. It offers social, environmental and economic practices for international investors entering new markets in developing countries around the world and explains how to comply with both the legal and voluntary requirements. The report is based on extensive research in Ethiopia, Kenya, Mozambique and Zambia, where ITC’s Partnership for Investment and Growth in Africa (PIGA) works to attract foreign direct investment with a high developmental impact.
Seizing the opportunities of a circular economy in textiles (UNCTAD)
The global textiles market is estimated at around $1.4 trillion, and employs over 300 million people, especially in developing countries like Bangladesh, Brazil, China, India, Pakistan and Turkey. While socially important, the textile industry is a major source of pollution and waste. It’s characterized by overproduction and overconsumption of low-cost clothes, often produced under poor working conditions and ending up in landfills. Today, consumers, businesses and regulators are realizing the wasteful pattern in which this industry operates. This problem not only concerns the environment but also represents missed economic opportunities. In the quest to make the textiles sector more efficient and less polluting, one answer lies in circular economy approaches connecting downstream and upstream segments of this global industry. This means using more renewable and safe inputs, increasing clothing durability, reuse, or turning used garments into new ones.
G20 to endorse deal on global minimum corporate tax – draft (Global Banking and Finance Review)
The world’s financial leaders will endorse on July 9-10 a deal setting a global minimum corporate tax and call for technical work to be finished so they can approve the framework for implementation in October, their draft communique showed. “After many years of discussions and building on the progress made last year, we have achieved an historical agreement on a new, fair and stable international tax architecture,” the draft said.
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National
Poultry and Automotive Masterplan to Achieve Necessary Reform Parliament Hears (the dtic)
Government is implementing necessary reforms to transform and revive the poultry and automotive sector a delegation of senior management from the Department of Trade, industry and Competition (the dtic) told the Select Committee on the dtic, Small Business, Tourism and Labour. The Department was briefing the committee on Poultry Industry Master Plan and South Africa Automotive Master Plan: Progress on Implementation. In their presentation to the selected committee, the department said since the implementation of the Poultry Master Plan, a new tariff was put on imported poultry which provides greater protection for local producers, and an increase in production capacity was realized at one million additional chickens produced locally every week since the new duty structure
Quarter of SME staff work for free, says CBK (Business Ghana)
More than a quarter of employees in the small and medium enterprises (SMEs) are working without pay amid the recovery of business from the Covid-19 economic fallout. Central Bank of Kenya (CBK) data shows that 27 percent of employees in the SME sector were working without pay in March, from nine percent a year earlier when the country reported the first case of the virus, leading to restrictions that hurt businesses. The increase in those on unpaid employment highlights the fall in the quality of jobs as businesses struggle to recover from the fallout, occasioned by depressed sales.
Tanzania considers reviving $10 billion port project (Reuters)
President Samia Suluhu Hassan said on Saturday that Tanzania will look to revive a $10 billion stalled port project on the eastern coast of the country. Tanzania inked a framework agreement in 2013 with China Merchants Holdings International to construct the port and a special economic zone that aimed to transform the east African country into a trade and transport hub to rival its neighbours. China Merchants, China’s largest port operator, said in 2019 that years of negotiations with Tanzania had failed to produce an agreement. The port, was to be located in Bagamoyo, about 75 km (47 miles) north of Dar es Salaam.
Govt banks on manufacturing sector, trade to boost economy (Dailynews)
The government of Tanzania is improving the manufacturing sector and trade to address emerging challenges and to boost the economy and make the country develop. German International Development Cooperation (GIZ) has supported a desk study to identify what the manufacturing sector needs to grow and uplift the livelihoods of Tanzanians. A paper was presented early this month, which highlights and proposes to the government to have a special budget for research, big data and artificial intelligence (AI) innovations. The paper entitled “The current state of play of the manufacturing sector in Tanzania” also proposes incentives to attract multinational companies to set up manufacturing industries and supply networks in the country. This, according to the report, will facilitate access to inputs for Tanzanian manufacturers and pave the way for localization.
Middle East, COMESA dominate Uganda’s exports (New Vision)
The regional and Middle East market remain key destinations for Uganda’s exports. According to preliminary figures from Bank of Uganda (BOU), the country’s total formal merchandise exports for last year stood at $4.1b (about sh14.5 trillion). However, for informal cross border trade, the figures declined by 42% from $532m (2019) to $305m (2020). This is linked to limited movement of small-scale traders due to the impact of the COVID-19 pandemic restrictions. This is unlike long-haul truck drivers who were guaranteed passage dependent on negative test results. Uganda’s exports to the Middle East reached $1.9b last year compared to $1.27b for the Common Market for Eastern and Southern Africa (COMESA) region. Uganda’s major market destinations in the trade bloc are Kenya ($465m), South Sudan ($357m), DR Congo ($267m), Sudan ($95m), Burundi ($59m) and Ethiopia ($15m).
National Assembly approves ratification of AfCFTA, opening door between Seychelles and 1.2 billion customers (Seychelles News Agency)
Businesses in Seychelles will be able to access a market of 1.2 billion people after the National Assembly approved the ratification of the African Continental Free Trade Area (AfCFTA), a top government official said on Friday. This agreement aims to create a single continental market for goods and services, with free movement of business people and investments, while paving the way for accelerating the establishment of the customs union. The Principal Secretary for Trade, Cillia Mangroo, told reporters that it would be in the Seychelles’ best interest to ratify and join this trade block as Africa has a very large middle-class population with an expendable budget at its disposal. “It will benefit Seychelles in terms of getting products at a cheaper price and our products being sold in the region at a preferential rate,” she said.
Ghana must tap into Nigeria’s petroleum sector experiences – Dr Prempeh (Graphic Online)
The minister who is also the Chairman of the Committee of Energy Ministers of the Economic Community of West African States (ECOWAS), said there is the need for collaborative efforts and drawing of useful lessons Nigeria has accumulated over the years. With Ghana recently joining the comity of oil producing nations, he said, “there is the need to take lessons from Nigeria and learn from all the mistakes they made regarding the signing of petroleum agreements and maximizing their quota of local content and local participation, something Ghana is still getting a grasp on.”
ECA supports Côte d’Ivoire to accelerate its structural transformation (UNECA)
The Government of Côte d’Ivoire, through the Ministry of Planning and Development and the Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (UNECA), launched on Friday the restitution of the 2020 report on structural transformation, employment and production and society for sustainable development in Côte d’Ivoire (STEPS4SD) as part of the monitoring and evaluation of the National Development Plan (NDP 2016-2020) and the formulation of the NDP 2021-2025. For the Director of Cabinet of the Ministry of Planning and Development of Côte d’Ivoire, Dr Yeo Nahoua, “This study is part of the logic of consolidating the achievements and strengthening strategic planning placed at the heart of the development process of Côte d’Ivoire since 2011,” he said.
With domestic value addition, Côte d’Ivoire is finally cashing in on its cashews (Equal Times)
While Africa, led by Côte d’Ivoire, currently produces 90 per cent of the world’s raw cashew nuts, less than 15 per cent are processed on the continent. In Côte d’Ivoire, the number is only 6 per cent. The majority of production is exported to Asia, where processing plants run at full capacity, roasting, salting and incorporating the nuts into snacks destined for the European and American markets. Relocating cashew nut processing to African countries would mean an important new source of income for the continent.
New Economic Analysis Calls for Affordable ICT for Youth, Women, and Rural Communities in Malawi (World Bank)
Malawi’s low levels of electricity access, high internet prices, unpredictable connectivity, high cost of smart devices, and lack of digital skills hinder a potential of $189 million in additional GDP and $33 million in tax revenues per year, says the latest World Bank Malawi Economic Monitor (MEM). “Developing Malawi’s digital economy will diversify and strengthen economic growth, job creation, and innovation. Digital technologies can help lower the cost of economic and social transactions for firms, individuals, and the public sector. They can also help improve safety nets, delivery of public services, and transparency for better fiscal management and management of future crises,” said Hugh Riddell, World Bank Country Manager for Malawi.
The online launch of the 2nd phase of the project “Promotion of Export Activities to New Markets in Sub-Saharan Africa” (PEMA II), is scheduled for June 29, the Export Promotion Centre (CEPEX) said Sunday. The PEMA project is implemented by GIZ, under the mandate of the German Federal Ministry for Economic Cooperation and Development (BMZ), in cooperation with the Ministry of Trade and Export Development and the Export Promotion Center (CEPEX). The goal is to enable more Tunisian SMEs tap into the commercial potential of the new markets in sub-Saharan Africa.
Africa
AfCFTA lays foundation for establishment of a Continental Common Market (New Ghana)
“Notwithstanding the challenging circumstances, exacerbated by the impact of the COVID-19 pandemic, the results achieved in the implementation of the Agreement and execution of work programme of the AfCFTA Secretariat are a source of satisfaction.” Mr Mene said currently, 37 countries (almost 69 per cent of Member States) had deposited their instruments of ratification at the African Union Commission. “However, negotiations on some issues of Phase I are ongoing, namely, rules of origin, schedules of tariff concessions, and schedules of specific commitments on the five priority service sectors (business services; communications; finance; tourism and transport).” He said these outstanding issues were expected to be concluded by June 2021. Phase II negotiations will cover IPRs, investment and competition policy, while Phase III covers E-Commerce.
Low level of intra-Africa trade results from the continuity of colonialism, says Lindiwe Zulu (IOL)
Deputy Minister of International Relations Alvin Botes said on Sunday that the African Continental Free Trade Agreement was regarded as an important repository in an effort to negate poverty in South Africa and the African continent. The International Relations Subcommittee, chaired by Botes, hosted a virtual Umrabulo session on Sunday. Lindiwe Zulu said Africa “with 3% of the world’s trade and claims only 2% of the world’s manufacturing output compared with Intra-Asia Trade, which is 52%; Intra-North America Trade, at 50%; and Intra-EU Trade, which is at 70%. Intra-Africa Trade is small, covering only 16 to 18% of traded goods. Among other factors, the low level of Intra-Africa Trade results from the continuity of colonialism into present Africa and the exclusion of the informal sector by the market research methodologies.”
African countries face growing risk of debt defaults, AfDB warns (Devex)
There is a heightened risk of defaults on the African continent as a result of the COVID-19 pandemic, which has led to heavier debt burdens while worsening poverty and widening inequality, the African Development Bank has warned. “The deep scars of the pandemic are really there and will take time to heal,” bank President Akinwumi Adesina said. Speaking Wednesday at the opening public event of the bank’s annual meetings, he grimly cautioned that the continent must avoid another “lost decade” for growth and development. “If there is no debt relief and restructuring, many more countries will slide into debt distress,” he said. “We don’t expect that by the end of this year African countries will be back to booming again,” he said.
SADC-PF key to AfCFTA implementation (Botswana Daily News)
Minister of Investment, Trade and Industry, Mr Mmusi Kgafela has pleaded with the SADC-Parliamentary Forum to advocate for inclusion of African Continental Free Trade Area agreement (AfCFTA) in national laws, national development plans and all other pieces of legislation existing in the member states.. Minister Kgafela said such a move would assist in building the requisite capacity for parliaments and relevant parliamentary committees to utilise their law-making and oversight mandate in ensuring effective implementation of the AfCFTA and build a more inclusive and equitable SADC region, post COVID-19. He said as the apex parliamentary body in the SADC region, SADC-PF had a critical role to play in ensuring a coordinated and collaborative approach by African Parliaments, emphasising the need for the parliamentary forum to strive for awareness creation and amplifying of citizens’ voices in the AfCFTA processes.
Region in dry ports revolution (The Southern Times)
Regional trade is set for a major overhaul with the imminent establishment of four dry ports to improve trade in and with landlocked SADC members. The Southern Times Business can report that bilateral and multilateral talks involving Botswana, Mozambique, South Africa and Zimbabwe are at an advanced stage for establishment of dry ports. The customs dry ports are appointed inland facilities whereby commercial cargo may be consigned to pending final clearance and are mainly established to help land locked countries to facilitate and handle their cargo. “(Establishment of dry ports) increases the volumes that are carried on the corridors. It’s also a way of promoting trade relations within the Southern African Development Community through preferred gateways. The long term goal is to establish a cargo clearing one-stop facility at the dry ports for efficient customs clearance and border crossing.”
EAC ripe for reforms to serve effectively – President Samia (The East African)
President Samia has suggested a review of the East African Community Treaty to reflect the current regional situation. The president made the suggestion during a recent meeting with EAC Secretary General Dr Peter Mathuki who had paid her courtesy call at Ikulu, in Dar es Salaam. While referring to the EAC’s institutional framework, President Samia stressed the need for a comprehensive review of the Treaty and other legal instruments. “The Treaty establishing the EAC was signed 20 years ago when we were only three members. We have now grown to six and hopefully we shall continue growing,” said President Samia. “We therefore need to not only review the Treaty, but other instruments as well, to align them with what we have already done, and what we aspire to do.”
What it would take to build Africa’s local production capacity (Devexx)
By 2030, Africa’s health market is estimated to be worth hundreds of billions of dollars, making a strong case for building local production capacity in the continent – an agenda that has taken hold as countries realize the deadly consequences of relying on imports for health products like COVID-19 vaccines. But Emmanuel Mujuru, chairperson at the Federation of African Pharmaceutical Manufacturers Associations, cautioned that it requires political commitment from the highest levels of government; the right regulations and policy coherence across government agencies; long-term financing that should come in the form of development finance with affordable interest rates; and market access to ensure there is sufficient demand for locally produced medicines, vaccines, and other health products. Mujuru said sub-Saharan Africa imports most of its medicines, effectively leaving a small market of 30% to local producers. “This is not just about money and infrastructure. It is about regulation, capacity and skills, supply chain management, trade integration, scientific cooperation, and demand-side considerations.”
Museveni: Vaccine inequality Africa’s wake-up call (The Star, Kenya)
Uganda’s President Yoweri Museveni has called out “vaccine selfishness” in the world but said it will “wake up” Africans to be self-sufficient. President Museveni said what Africa needs is raw materials to produce its own Covid vaccines and not donations from the developed nations. “Africans are a disgrace to ourselves. Why do we have to depend on the outside for everything? This is a big shame for Africa,” he told delegates attending the World Health Summit on Sunday. President Museveni said countries across the continent need to stop waiting for vaccine donations and manufacture them locally.
New deal pushes regional trade (The Southern Times)
The Eastern and Southern African Trade & Development Bank (TDB) and TradeMark East Africa (TMEA) on Wednesday signed an MoU that establishes a framework for collaboration that will boost regional trade. The TDB said leveraging the two institutions’ expertise in project development and finance could improve investments in trade logistics and production systems, including roads, ports and industrial parks. “Moreover, institutions will work to collaborate in carrying-out analytical and advisory services aiming, among other things, to support the digitisation of trade and investment processes as well as information technology innovations in trade, logistics and transportation,” said the TDB in a statement after the signing.
Why DRC is keen to join the EAC bloc (The Citizen)
The Democratic Republic of Congo (DRC) will benefit enormously by joining the East African Community (EAC). The benefits include free movement of people to the rest of the bloc and goods to the Dar es Salaam and Mombasa ports. “It would ease free movement of goods, especially the country’s eastern region,” said Peter Mathuki, EAC’s secretary general. He made this argument on Friday evening during the official launching of the EAC verification mission to DRC on the latter’s bid to join the bloc. The launching by President Felix Tshisekedi was held at the eastern border city of Goma.
Dangers of Ditching the Dalasi for the ECO (Freedom Newspaper)
ECOWAS has decided to introduce the Single Currency for all member countries in 2027, so that the ECO will become for West Africa what the EURO is for the European Union (EU). The primary reason for introducing the ECO across ECOWAS is to facilitate easier trade between the countries of West Africa. That it will undoubtedly do, just as the EURO has done for EU countries. But it has also to be pointed out that UK’s biggest trading partner (some 40% of all trade I think) is the EU… and UK refused to adopt the EURO and kept the POUND.
Boost for digital transformation in Africa as Huawei Pens Deal with ATU (Kenya Broadcasting Corporation)
The African Telecommunications Union (ATU) has signed a Memorandum of Understanding (MoU) with tech giant Huawei that will see African countries and organizations build capacity for ICT transformation. Under the agreement, Huawei will provide training on skills development, including reskilling and upskilling for ATU members. The MoU will also see the two organizations collaborate to support local innovation, share information on latest trends, challenges and solutions in Africa and globally, and expand the digital economy as well as rural connectivity, in the continent, through furthering research.
14th Sectoral Council on Agriculture and Food Security ends in Arusha (EAC)
The 14th Meeting of the Sectoral Council on Agriculture and Food Security (SCAFS) came to a close in Arusha, Tanzania on 25th June, 2021. Chairing the Ministerial Session, Chief Administrative Secretary, Ministry of Agriculture, Livestock, Fisheries and Cooperatives, Republic of Kenya, Mr. Lawrence Angolo Omuhaka, noted the urgent need for the region to implement harmonized policies and to operationalize regional instruments in order to guarantee sustainable agricultural production, trade in commodities and to attain sustainable regional food and nutrition security.
Building the Capacity of Member States to Report on Climate Change Actions (COMESA)
The United Nations Framework Convention on Climate Change (UNFCCC) in partnership with the COMESA Secretariat will offer a two-day virtual training to technical officers from Member States on the preparation and submission process of new/updated Nationally Determined Contributions (NDCs). NDCs are national climate plans highlighting climate actions, including climate related targets, policies and measures governments aims to implement in response to climate change and as a contribution to global climate action. Central to the NDCs is the concept of national determination. The training will be conducted on 28-29 June 2021 and will also cover the Katowice guidance on NDCs, which are also at the heart of the Paris Agreement on Climate Change.
Give Africa clean energy funds – IEA (Mail & Gaurdian)
Wealthy countries have a “moral responsibility” to support clean energy transitions in Africa, said Fatih Birol, the executive director of the International Energy Agency (IEA). The world has two major challenges: to provide energy to 800-million people on the planet – 600-million of whom live in sub-Saharan Africa – and to reach its climate goals, he said. Some countries, with their vast economies, have begun this race ahead of others. “But one thing that is important to note is that unless everybody crosses the finish line, nobody wins this race, because it’s a global issue.” A new report from the IEA – Financing Clean Energy Transitions in Emerging and Developing Economies – shows how investment in clean energy in emerging and developing economies fell by 8% to less than $150-billion in 2020, with only a slight rebound expected this year.
A new dawn for Africa’s climate research for development narrative (UNECA)
The inaugural cohort of some 21 African post-doctoral researchers under the aegis of Climate Research for Development (CR4D) presented their pioneering findings, last week in Nairobi, Kenya, signaling a bold path for the new decade and dawn. The researchers who were selected from 11 countries namely Benin, Cameroon, Cote D’Ivoire, Ethiopia, Ghana, Madagascar, Namibia, Uganda, Kenya, Senegal and Zimbabwe unveiled their 18-month long findings in a three-day workshop (21-23 June). “By investing in research for development we are trying to find African solutions. Not only for the problems which are plaguing our continent but for those which are global.” Jean-Paul Adam, the director of the Economic Commission for Africa’s (ECA) technology, climate change and natural resources division says.
EU relations in north Africa hampered by migration tensions (EURACTIV)
The EU’s role and political influence in North Africa has been hampered by economic and security policy priorities being trumped by the bloc’s desire to control migration flows, a leading analyst of the region told EURACTIV. Despite the political fragility in much of North Africa, and particularly in several of the countries which saw governments ousted during the Arab Spring ten years ago, the EU’s policy engagement with the region has tended to be through the prism of controlling migration flows from the African continent. “Where there has been tension is when efforts to support regional trade run up against something like the migration agenda, where the EU has taken a much harder line on prevention and blocking migration, and less focused on other ostensibly EU priorities like the promotion of free movement and trade in Africa,” Andrew Lebovich, policy fellow at the European Council for Foreign Relations, told EURACTIV in an interview.
US Set To Expand Businesses In Africa (Leadership)
As part of its support for growth of the continent, the government of the United States of America has said it would engage African governments on policies and regulatory practices to support digital economy, trade and engagement on the continental free trade area. Speaking at a recent event on the new US/Africa relations, Scott Eistner of the US-Africa Business Council highlighted the Biden government’s plan for Africa to include; make Africa great and continued negotiations with Kenya on free trade agreement. He said the expectation of the US is to support Africa on the post-pandemic recovery with the needed investments and create jobs for youths across the continent. “We need to deepen the expansion of our businesses in the whole area, including a focus on trade facilitation and enhance the role of the US in capacity building across sections of the whole continent. We need to engage African governments on policies and regulatory practices to support the digital economy and digital trade,” he said.
Global
BRICS could be the world’s economic beacon (Hellenic Shipping News Worldwide)
The BRICS countries – Brazil, Russia, India, China and South Africa – could recover from the Covid-19 pandemic and its induced recession more quickly if India and Brazil work with China instead of fight it. In doing so, the BRICS could pull the world economy on an upward trajectory for a number of reasons. One, the five countries” economies are highly complementary. For example, Brazil, Russia and to some extent South Africa and India could guarantee the natural resources China needs to sustain its manufacturing prowess. China, for its part, has the capital, know-how and technology to invest in its fellow members” infrastructures and help their industrialization, taking them to the next stages of development. Two, being major developing nations, the BRICS have considerable room for expanding the size and scope of their economies.
WCO Council renews support for the Secretariat in preparation for a post-pandemic world (WCO)
Heads of Delegation of some 130 World Customs Organization (WCO) Member Customs administrations took part in the virtual meeting of the 138th Session of the WCO Council, held from 24 to 26 June 2021. As the world is bracing for recovery with a glimmer of optimism emerging from the global effort regarding vaccinations, this session focused on Capacity Building, Rules of Origin, Valuation, Nomenclature and Classification, Compliance and Trade Facilitation as well as budgetary and financial matters. “The ongoing pandemic has accentuated the relevance of Customs in ensuring connectivity at borders and maintaining the integrity of global supply chains to facilitate the cross-border movement of medicines, vaccines and other essential goods,” stated WCO Secretary General Dr. Kunio Mikuriya.
EIF Annual Report highlights resilience of poorest countries despite COVID-19 crisis (WTO)
The report highlights the vulnerability of LDC economies during the COVID-19 crisis and the trade opportunities they were able to leverage despite the pandemic. It describes how the projects led by the EIF have helped LDCs to mitigate the negative impact of the crisis and build their trade capacities. The EIF’s Executive Director, Ratnakar Adhikari, said: “The COVID-19 pandemic underscored the economic vulnerability of LDCs and acts as a reminder of why continuous support is needed to help them leverage trade as an engine for growth and poverty reduction. I am pleased that the EIF was able to help LDCs swiftly respond to the crisis, from helping with the assessment of the impact on tourism in Zambia to supporting the analysis of the potential effects of the crisis on countries graduating from LDC status.”
India, South Africa bid to ban COVID vaccine patents finds few takers in Latin America (DW)
In May, India and South Africa called on the World Trade Organization (WTO) to temporarily waive intellectual property (IP) rules related to COVID-19 vaccines, medicines, diagnostics and other technologies. The reasoning was that waiving parts of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) would allow drugmakers in poor countries to produce effective vaccines without worrying about being sued for patent infringements and speed up the end of the pandemic, which if allowed to linger could see the emergence of vaccine-resistant COVID variants. The countries backing the revised proposal ranged from Eswatini to Indonesia and Pakistan to Vanuatu, adequately representing regions with some of the lowest vaccination rates globally. However, Latin America, the region worst hit by the pandemic and desperately in need of vaccines, only saw Venezuela and Bolivia proposing the IP waiver, leaving many experts confounded.
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Attaining port efficiency requires purpose rethink, says law firm (Engineering News)
South Africa’s maritime ports, known to be highly inefficient, need to be repurposed and redesignated to increase their efficient use, says law firm Norton Rose Fullbright South Africa chairperson Andrew Robinson. Speaking during an Infrastructure Africa panel discussion on transformation in the transport sector, on June 23, he reiterated that the World Bank recently ranked the Port of Durban among the bottom three of 351 global ports for its container handling competency.
Industry 4.0 training key to ensuring South Africa is not left behind (Engineering News)
To fully realise the potential of Industry 4.0 and remain relevant as the way of conducting business evolves, South African organisations should consider making strategic investments in infrastructure and technology as soon as possible. However, these investments will be rendered ineffective if organisations do not simultaneously ensure that the necessary skills development takes place in parallel to support the investments.
Study Shows South Africa is Well Placed to Lead the Production of Zero Carbon Shipping Fuels (Environmental Defense Fund)
A study by Ricardo and Environmental Defense Fund for the P4G Getting to Zero Coalition Partnership finds that South Africa holds an untapped opportunity to supply the global shipping industry with zero carbon fuels. “Our study shows that South Africa has an abundance of renewable energy potential. It is enough to supply the country’s domestic electrical demand as well as the production of zero carbon fuels to supply commercial vessels refueling in its international ports. The adoption of zero carbon propulsion technologies at South Africa’s ports could attract investment of between 122 and 175 billion Rand in onshore infrastructure by 2030. All that is needed to unlock this investment is the right policy incentives set at the International Maritime Organization,” says Aoife O’Leary, Director, International Climate, Environmental Defense Fund.
Ghana needs a ‘national branding’ strategy to fully enjoy AfCFTA benefits – Fatima Alimohamed (BusinessGhana)
Chairperson of the Agribusiness Sector at the Association of Ghana Industries (AGI), and CEO of Africa Brand Warrior, Fatima Alimohamed, says getting a “national branding” strategy remains one of the major hurdles Ghana needs to cross if the country can obtain maximum benefit from the Africa Continental Free Trade Area (AfCFTA). She is of the view that a working plan for a national brand will not only make Ghana more attractive and marketable, but also make the country stand tall among its peers on the continent in the area of trade and export going forward. “Everything has to matter seamlessly anytime you walk in somewhere, and it must match the vision of the country. So obviously, the national branding ought to be looked at. It is the first step for us to take,” Fatima Alimohamed said. Sloganeering not branding
Come back home and let’s build Ghana together – Finance Minister to Ghanaians abroad (Modern Ghana)
Ken Ofori-Atta, the Finance Minister, has urged the diaspora community to return home with their talents, capital, skills and knowledge to facilitate Ghana’s growth. “There will be challenges but you need to exercise patience to tolerate the inefficiency in the system with the intention of helping it to be better. We will do all we can to help you settle in,” he said. Mr Ofori-Atta, who was speaking at the maiden edition of the Diaspora Investment Summit that seeks to create an avenue to foster partnerships between local and Diaspora investors said returning home signified a sense of belonging and uniting with family.
Zimbabwe reaches another landmark in work on tariff matters (WCO)
Stepping up its efforts to implement the 2022 version of the Harmonized System (HS) in time, the Zimbabwe Revenue Authority (ZIMRA) held a meeting of the Technical Working Group on HS 2022. The Working Group examined market access offers involving agreements with the European Union, the United Kingdom, Eastern and Southern Africa. On the HS 2022 Nomenclature, and drafted the required statutory instruments. The Regulations are used by Customs alongside the national tariff with regard to imported goods when collecting VAT. In order to set up a solid framework for the implementation of HS amendments, the Working Group developed a scheme describing and sequencing all the major steps whereby national HS-based instruments are migrated to new editions of the HS, in consultation with the HS-Africa Programme. The ZIMRA and the HS-Africa Programme furthermore agreed on an action plan to join hands in ensuring a smooth and timely implementation of the HS 2022 amendments in Zimbabwe.
Construction of Nigeria-Morocco gas pipeline begins (Pumps Africa)
Construction of the Nigeria-Morocco gas pipeline has commenced. Chief Operating Officer of the gas and power of the Nigerian National Petroleum Corporation (NNPC), Yusuf Usman announced the start of the project. The pipeline project falls in line with the “Decade of Gas Master Plan” that Nigeria’s President Muhammadu Buhari launched in 2020, which seeks to bolster Nigeria’s gas production and gas exports despite a global transition to clean energy. The pipeline project is expected to be mutually beneficial for Morocco, Nigeria, and a slew of countries along the pipeline’s route in West Africa. The pipeline will pass through West African countries such as Benin, Tago, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Senegal, and into Morocco.
IMF Executive Board Concludes 2021 Article IV Consultation with Mauritius (IMF)
While the pandemic has hit the Mauritian economy hard, the authorities have been successful in containing the virus and mitigating the economic impact of the crisis. With tourism halted, real GDP contracted by 15 percent in 2020, and the current account deficit widened substantially. However, unemployment – while high – was contained by wage support schemes. In the face of falling revenue and urgent social spending needs, the fiscal deficit has widened notably. Inflation is low, while the banking and global business sectors appear to be sound. From the outset of the pandemic, the rapid closure of the border, imposition of a lockdown, and other public health measures have kept viral transmission to a low level. Vaccinations began in February 2021, and the authorities target vaccinating 60 percent of the population by end-September 2021.
Sector grapples with challenges (Botswana Daily News)
The informal sector is grappling with challenges emanating from lack of access to credit, Minister of Nationality, Immigration and Gender Affairs, Ms Anna Mokgethi has said. She was speaking at the Women in Trade National Consultations in Botswana on African Continental Free Trade Area (AfCFTA) meeting in Gaborone on Tuesday. Ms Mokgethi said, despite existing for a long time, the sector continued to face unsupportive regulatory framework and restricted operation space. Therefore, she said this called for appropriate policies and favourable laws that would encourage growth and productivity of informal enterprises.
Mixed reactions as govt slashes rice farm gate prices (The New Times)
Rice farmers have said that they are set to witness a decline in their fortunes after the government announced a reduction in farm gate prices. A kilogramme of unprocessed short-grain rice was reduced from Rwf270 to Rwf259 while that of long grain rice was reduced from Rwf290 Rwf279, according to new prices announced by the Ministry of Trade and Industry on June 24. The new prices will affect the harvest from agriculture season B, which started in March and ends June 30, this year.
Regional trade promotion – Kampala (Independent)
At a recent post-budget forum, organized by Absa Bank Uganda, experts including Daniel Birungi, the executive director for Uganda Manufacturers Association, said, Uganda needs an export guarantee scheme for trade with Democratic Republic of Congo and South Sudan given that the two countries have experienced political instability that has cost traders billions of shillings. “We have opened up South Sudan and DRC, which is very good work. But the aspect of volatility in these markets requires that we have an export guarantee scheme… so that, when a manufacturer transports their goods to these countries and loses them, they are able to have recourse.” An export credit guarantee provides safeguards and insurance for exports by a government or semi-government agency to ensure that an exporter receives payment for goods shipped overseas in the event the customer defaults.
Creating An African Medicine Agency: Cameroon Praised For Pushing Agenda (Actualités au cameroun)
The Republic of Cameroon has been acclaimed for supporting the idea of the creation of an African Medicine Agency (AMA) by accelerating the ratification process of the treaty. The remark was made by the African Union’s Special Envoy for AMA, Michel Sidibe after an audience granted him by the Prime Minister, Joseph Dion Ngute on June 22, 2021. “What was really important is the fact that the Prime Minister was very knowledgeable and shared with us the interest of his country (Cameroon) to be amongst the first 15 countries that will ratify this treaty. It is not just for the health of our people which is so critical because as at today, we don’t have even more than 80 million people who receive two doses of Covid-19 vaccines. Economically, it is important,” he noted, making comparison with the medicine market vis-à-vis Africa.
Today, the BRIDGES Programme signed a Memorandum of Understanding with the Ministry of Trade and Industry that will lead to significant work opportunities for young people in Ethiopia. The collaboration will focus on enhancing the competitiveness of the industrial sector to attract qualified workers and will offer support to existing micro, small, and medium enterprises (MSMEs). The parties agreed to cooperate, share information and resources, and enter necessary and specific agreements to realize the objectives of the initiative. This endeavour is expected to facilitate increased local manufacturing and create domestic linkages between MSMEs and large manufacturing firms in the country. This will lead to greater competitiveness for Ethiopia’s MSMEs, as well as the development of sustainable business linkages between large enterprises and MSMEs.
How Togo, one of West Africa’s smallest countries, became the region’s trade hub (How we made it in Africa)
Togo has staked its future on becoming West Africa’s trade and logistics hub. In the constraint of its borders, Togo found an opportunity. Togo became a transit country – a trade entrepôt. With its small size, Togo could play off currency differentials, tax, and duty regimes to attract trade. Like any place rooted in arbitrage, it indirectly benefits from its neighbours’ woes, whether political instability, trade bans, or congested port infrastructure. Togo capitalised on its small size to turn into West Africa’s largest trade hub. Today, Lomé port is West Africa’s busiest port. It is the vital node connecting the region to global markets. How did a small country like Togo turn into a trade powerhouse, exerting a significant influence on the region?
Support for Economic Transformation in Côte d’Ivoire (World Bank)
The World Bank approved this Wednesday new financing to support Côte d’Ivoire to strengthen the competitiveness of export-oriented agro-industrial and manufacturing value, a key objective of the government’s Vision 2030. The financing also aims to increase access to long-term finance for start-ups, young small and medium enterprises (SMEs), as well as large enterprises carrying out green investments. With $200 million in total financing from the International Development Association (IDA), the Competitive Value Chains for Jobs and Economic Transformation Project (PCCET) will support the efforts by the Ivorian authorities to ensure the structural transformation of the national economy through economic diversification and strengthening the competitiveness of its key sectors, notably agricultural, agro-industry and manufacturing. The project will assist actors in supported value chains to overcome market failures by providing services aiming to improve the quality standards, add value to their products and access higher value markets.
Tunisians and Africans take part in 4th Financing Investment & Trade in Africa conference (TAP)
In a statement to the media at the start of the event, President of the Tunisian-African Business Council (TABC) Anis Jaziri pointed out that several representatives of international and African banks are also taking part in the conference and will propose their financing solutions to economic actors. “The objective is to propose financing mechanisms for African operators in a pandemic context, to promote investment in Africa and to boost Tunisian exports to this continent,” he indicated. The themes of financial support in Africa, the major structuring themes for African economies, the establishment of the African Continental Free Trade Area (AfCFTA), the business environment, sectoral development strategies, local transformation and industrialisation as well as the stepping up of competitiveness are the themes that will be debated during the conference.
Africa
AfCFTA updates
AfCFTA targets zero duty on 97% products traded in Africa in 15yrs (Vanguard)
The target of the African Continental Free Trade Area (AfCFTA) agreement is to achieve zero duty on 97 percent of all products traded in Africa in the next 15 years, the Secretary-General of AfCFTA Secretariat, Mr Wamkele Mene, has stated. Mene who is currently on an official tour to Nigeria, said: “I think Africans should be patient and understand that we are in the initial stages of significance to go together under a single set of rules.”
Africa needs to industrialise to create jobs – AfCFTA (BusinessGhana)
Mr Wamkele Mene, Secretary-General, Africa Continental Free Trade Area (AfCFTA), has reiterated that Africa needs to industrialise to create jobs for the people. Speaking on the topic, “The AfCFTA and the New Age of African Enterprise,” Mr Mene said it was estimated that the African labour force would swell by more than 170 million people between 2010 and 2020. “If there are no productive jobs for these people, the fight against poverty will be lost given that the most important determinant of whether someone in Africa is in poverty, or not, is whether they have a job,” Mr Mene stated.
Mr Mene argued that industrialization was crucial for African countries to transform their economies, create jobs, add value and promote trade through greater integration into regional/global value chains. He said Africa, despite failing to industrialize in the past, might have a new window of opportunity.
AfCFTA to boost private sector growth in Africa (Engineering News)
The African Continental Free Trade Area (AfCFTA) will boost private sector growth and reach in the continent, panellists participating in an Infrastructure Africa session on restoring economic growth, connecting African countries and optimising the AfCFTA, on June 22, concurred. AfCFTA policy network Ghana executive director Louis Afful said the AfCFTA was a good option to enable African markets to have access to each other and was the “best opportunity perspective” in the area of boosting intra-African trade. He noted that Africa had not performed well in terms of countries on the continent trading with each other, especially compared with other regions of the world that had been trading “massively” among themselves for some time.
African Rail Industry Association CEO Mesela Nhlapo said the AfCFTA was an instrument that could bring about the vision that Africans were looking for, from an African perspective. She says Africans, embracing the AfCFTA, should no longer continue being separated from each other and that to achieve the most benefits from the trade agreement, they had to work together. One key area of development and integration was that of transport, where Nhlapo said shifts needed to be made away from road-based transport which fulfilled 90% of the needs of transporting goods and people in Africa.
Focus on investments, knowledge and skills to facilitate trade – Wamkele Mene to Diaspora (GhanaWeb)
The Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene has stated that, the diaspora has positive development potential which when well harnessed, will help mitigate the development challenges of Africa and Ghana, as a whole. He said there is still potential to enhance engagements not just in dealing with the challenges of COVID-19 but also in the pursuit of national economic development and the AU’s Agenda 2063, ‘The Africa We Want’, as well as the United Nation’s Sustainable Development Goals. He also said the Ghana Beyond Aid initiative is a step in the right direction, and the diaspora has played a significant role in government’s developmental effort.
ECA partners ODI and ACET to research into how AfCFTA will promote post COVID-19 economic recovery (UNECA)
The Economic Commission for Africa (ECA) is to assist member states to develop their national African Continental Free Trade Area (AfCFTA) implementation strategy with an environmental bias in anticipation of challenges of COVID-19 and climate change. The assistance will be underpinned by an assessment of the environmental impacts that could result from increased economic and trade activities under the AfCFTA in order to devise mitigation actions, the Coordinator of the ECA’s African Trade Policy Centre (ATPC), David Luke, said today. Speaking at the inception meeting of a complementary research project the Centre is starting together with the Overseas Development Institute (ODI) and the African Centre for Economic Transformation (ACET), he said that the joint research would determine how climate change-related risks could alter comparative advantages and trade patterns or affect infrastructure, and identify adverse effects on particular sectors such as agriculture and tourism.
Opportunities abound in Agriculture as a driver of AfCFTA – PEF (News Ghana)
DP World and Somaliland opened a new container terminal at Berbera Port, with work under way to further expand the terminal’s capacity and develop it into a major regional trade hub serving the Horn of Africa. The newly opened container terminal increases the port’s container capacity from current 150,000 Twenty Foot Equivalent Units (TEUs) to 500,000 TEUs annually. “With the new terminal, along with the second phase of expansion and economic zone along the Berbera corridor, we are now firmly positioned to further develop and grow our economy through increased trade, attracting foreign direct investment and creating jobs,” Muse Bihi Abdi, president of Somaliland, said.
‘Pan-African Settlement System to Slash Transaction Costs by $5bn Annually’ (THISDAY Newspapers)
The Secretary-General of the African Continental Free Trade Area Agreement (AfCFTA) Secretariat, Mr. Wamkele Mene, has said that the full implementation of Pan-African Payment and Settlement System (PAPSS) will cut annual cost of transactions by $5 billion. The amount he said represented the aggregate amount spent on currency convertibility. While pointing out that the pilot implementation of the platform had already started in six countries in West Africa, which have switched on unto the system, Mene added that the system is currently running smoothly. said: “We have started a piloting phase of the Pan-African Payment and Settlement System (PAPSS); six countries in West Africa which have switched on unto the platform. Transactions are already happening within these six countries that are at the advanced stage of pilot project.”
“Africa has 42 currencies and the cost of the currency convertibility actually is a constraint to intra-African trade.” He said: “It makes us inefficient and makes our trade unnecessarily expensive and adds to the cost of doing business for the SMEs. “So the payment settlement platform will really make a significant contribution and our estimates that it would reduce the cost of transactions by $5 billion annually and that is the aggregate amount that is the aggregate amount that is spent on currency convertibility.”
The 2021 African Development Bank Group Annual Meetings, held virtually starting on Wednesday, opened with discussions on African debt management. The pandemic has created huge financing needs for governments, widened budget deficits and driven governments into debt. On Wednesday, the African Development Bank hosted panel discussions on the issue. One knowledge event was titled “From Debt Resolution to Growth: The Way Forward for Africa”. African Development Bank President Dr. Akinwumi A. Adesina said: “The deep scars left by the Covid-19 pandemic (in Africa) will take time to heal.” As a result of the pandemic, the continent’s GDP fell by 2.1% in 2020 and poverty and inequality are increasing. The debt-to-GDP ratio is expected to increase by 10-15 percentage points in 2021 and debt is a pervasive concern.
Women and gender-focused policies have a pivotal role in African recovery programs following the Covid-19 pandemic, affirm some of the continent’s top development leaders. “Women have to be part of the decision-making process…it is critical that gender equality, women entrepreneurship and women’s empowerment are at the center, when it comes to solutions for economic resilience on the continent. This is the path to putting Africa back on the economic growth trajectory,” said Atsuko Toda, the Bank’s Acting Vice President for Agriculture, Human and Social Development. “As long as women entrepreneurs remain in the informal sector, we will not really see [them] benefiting from all these different investments,” said Dassanou.
Investment: Post-pandemic prospects for Africa (The Africa Report)
2020 was a particularly mediocre year for foreign investment in Africa due to the pandemic and the fall in commodity prices. However, with a drop of 16% ($40bn in 2020 against $47bn in 2019), Africa does not seem to be doing as badly as Europe (-80%) or North America (-40%), according to the World Investment Report 2021 published on 21 June by the United Nations Conference on Trade and Development (UNCTAD). There are several factors that give hope for recovery. “Global recovery will generate an increase in demand for metals and energy, of which Africa is a producer, and therefore investments in these sectors,” says the analyst, who also expects global value chains to be reconfigured and “take on a more regional dimension”.
Africa’s Shot at Local Pharma Production (IFC)
“Africa must begin to produce medicines for Africa, with raw material produced in Africa,” Margaret Ilomuanya, Editor-in-Chief of the Nigerian Journal of Pharmacy and a Senior Lecturer in the Department of Pharmaceutics and Pharmaceutical Technology at the University of Lagos said. “There’s a big risk in relying on elaborate global supply chains in which the supply of many essential and critical drugs is dependent on overseas suppliers. We have the wherewithal to build the local pharmaceutical industry, and we have the hands. We can take it from bench to bedside.” The Pharmaceutical Manufacturing Plan for Africa, rolled out in 2005 by the African Union Development Agency, created a business plan to boost local pharmaceutical production and improve public health outcomes. Other strategies to promote African pharmaceutical manufacturing include initiatives from the African Medicines Agency and the African Vaccine Regulatory Forum. In late May, 54 African countries co-sponsored a resolution on the local manufacturing of medicines, medical technologies, and vaccines that was presented at the WHO’s World Health Assembly.
Rich countries ‘deliberately’ keeping Covid vaccines from Africa, says envoy (The Guardian)
African Union special envoy Strive Masiyiwa has accused the world’s richest nations of deliberately failing to provide enough Covid-19 vaccines to the continent. Masiyiwa, the union’s special envoy to the African vaccine acquisition task team, said the Covax scheme had failed to keep its promise to secure production of 700 million doses of vaccines in time for delivery by December 2021. “It’s not a question of if this was a moral failure, it was deliberate. Those with the resources pushed their way to the front of the queue and took control of their production assets,” Masiyiwa told a panel discussion hosted by CNBC on Wednesday.
The People’s Democratic Republic of Algeria deposits the instrument of ratification of the African Medicines Agency (AMA) (African Union)
The People’s Democratic Republic of Algeria becomes the ninth (9th) Member State to deposit the instrument of ratification of the African Medicines Agency (AMA). The Republic of Algeria ratified the Treaty for the establishment of AMA on 10 June 2021 and deposited the instrument of accession, to the Commission of the African Union (AU) on 22 June 2021 in Addis Ababa, Ethiopia. H.E. Amira Elfadil Mohamed noted that the need for Africa to produce its medicines and vaccines has been amplified by the COVID-19 pandemic and without a regulatory body this cannot be achieved. “AMA as a regulatory body will harmonize the policies as well as strengthen the capacity for Member States to produce medicines and medical products,” she noted.
DP World and Somaliland open new terminal at Berbera port (The National)
DP World and Somaliland opened a new container terminal at Berbera Port, with work under way to further expand the terminal’s capacity and develop it into a major regional trade hub serving the Horn of Africa. The newly opened container terminal increases the port’s container capacity from current 150,000 Twenty Foot Equivalent Units (TEUs) to 500,000 TEUs annually. “With the new terminal, along with the second phase of expansion and economic zone along the Berbera corridor, we are now firmly positioned to further develop and grow our economy through increased trade, attracting foreign direct investment and creating jobs,” Muse Bihi Abdi, president of Somaliland, said.
ATU signs digital transformation MoU with Huawei (Developing Telecoms)
The African Telecommunications Union (ATU) has signed a Memorandum of Understanding (MoU) with Huawei that will see African countries and organizations build capacity for ICT transformation. Under the agreement, Huawei will provide training on skills development, including reskilling and upskilling for ATU members. The MoU will also see the two organisations collaborate to support local innovation, share information on latest trends, challenges and solutions in Africa and globally, and expand the digital economy as well as rural connectivity in the continent through furthering research. “The document we are signing today aims at strengthening this partnership… Africa has a tremendous opportunity to fully grasp the potential from new technologies,” concluded Omo.
Fintech firms find it hard to gain a foothold in Africa’s fragmented markets (BusinessLIVE)
Telecom operators are ramping up to make a play for market share in Africa’s fast-growing fintech space, but in a diverse, fragmented and rapidly changing landscape the path to rapid scaling remains unclear. The scramble for market share in Africa’s burgeoning payments sector is gaining momentum. Sub-Saharan Africa has one of the highest percentages of unbanked adults in the world, according to the World Bank Findex study, but also the highest percentage (21%) of adults with a mobile money account – and the Covid-19 pandemic has only underscored the social and economic importance of such services. What’s more, no major tech companies have yet emerged to dominate the market. This opens the door for telecoms players that, on the surface, are ideally placed to lead in this space.
ECCAS assesses e-communication infrastructure (ANGOP)
Ministers of Telecommunications and Information Technologies of the Economic Community of Central African States (ECCAS) discussed Thursday the consensual action plan for the implementation of electronic communications infrastructure in the region. The plan will allow the provision of electronic communications services and the integration of infrastructure between governments, states and companies, in addition to strengthening information security and electronic commerce, especially in rural areas. “The continent must continue to address the improvement of telecommunications infrastructure, a project of the 20/63 agenda of the African Union, which will allow a digital agenda for the continent,” he stressed.
East African Countries Unveil Optimistic Budgets as They Recover from an Economic Slump (East Africa Monitor)
East African countries have tabled their budget allocation as they prepare for uncertain economic times. However, the budgetary estimates paint an optimistic future buttressed by tax waivers and economic incentives. In uncertain times, the countries have put in place measures to jumpstart their pandemic hit economies. Moreover, the countries are bracing themselves for declining revenue collection and increased government expenditure. Uganda’s budget allocation stands at $12.61 billion, Tanzania’s at $15.59 billion and Kenya has laid out a budget of $33.3 billion. In addition, Kenya has set aside $133 million for the purchase of Covid-19 vaccines, while Uganda will use $159 million.
Convention to Promote Fair Trade in Agriculture Commodities (COMESA)
The COMESA-SADC-EAC tripartite agreement and the African Continental Free Trade Area (AfCFTA) present huge opportunities for enhancing intra-African trade in agricultural commodities and food. According to the Secretary General of COMESA, Ms. Chileshe Kapwepwe, while the African continent has the potential to feed itself as well as export to the rest of the world, trade data disappointingly shows that over the last 15 years the African countries have been net food importers. “Diversification of agricultural exports, away from primary commodities is key to intra-African trade expansion,” she said. “There is potential for intensifying intra-regional trade by building on localized comparative advantages within the region for selected regional agricultural value chains.”
States Urged to Honour Contributions as Remittances Fall (COMESA)
The 42nd Meeting of the COMESA Committee on Administrative and Budget matters met Wednesday, June 23, 2021, with a call to Member States to meet their budgetary contributions to the annual budget of the Secretariat and its institutions. This follows a slow funding of the annual budget with four out the 21 Members States having fully paid their contributions for 2021. Secretary General of COMESA, Ms. Chileshe Kapwepwe, noted that the slow remittance to the budget has resulted in the utilization of reserves to fund the planned activities. “Over the years approved sanctions have not been rigorously applied on member States that have defaulted in paying their contributions to the annual budget and this needs to change. This has been a major contributory factor to the financial position that we now find ourselves in, where a few member States fund the organization,” said the Secretary General.
AU, EU and ICMPD launched a study on Return, Readmission and Reintegration programmes in Africa (African Union)
Within the framework of the AU-EU Continent-to-Continent Migration and Mobility Dialogue, the African Union Commission and European Union Commission, in partnership with the International Centre for Migration Policy Development (ICMPD) conducted a study on Return, Readmission and Reintegration programs in Africa. The study includes nine country briefs of selected African Union Members States. “AU Member States and all stakeholders are invited to adopt out-of-the-box and flexible approaches to reintegration, in order to harness long-term added value impact on the life of returnees and the return communities and achieve impetus on socio-economic sustainability,” concluded H.E. Commissioner Amira Elfadil. The Commissioner emphasized the necessary linkage between reintegration and development programmes.
African Union strategy for gender equality & women’s empowerment (The East African)
These legal frameworks along with other key decisions and declarations of the African Union as well as international conventions on the rights of women and girls are at the core of the African Union’s Strategy for Gender Equality and Women’s Empowerment (GEWE). The GEWE strategy for the period of years from 2018 – 2028 identifies and proposes practical measures to eliminate the major social and economic constraints hindering gender equality and women’s empowerment if Africa is to achieve the goals of Agenda 2063 and specifically Aspiration 6 which envisions “An Africa where development is people driven, relying upon the potential offered by people, especially its women and youth and caring for children.”
Chinese logistics network launches China-Africa air cargo route (Xinhua)
Cainiao Smart Logistics Network, the logistics arm of Alibaba Group, announced on Thursday the launch of its first air cargo route between China and Africa, aiming to enhance cross-border parcel shipping efficiency. “As one of Cainiao’s key emerging markets, Africa has witnessed a booming demand from local consumers purchasing items such as apparel, home appliances and electronic accessories from China,” Cainiao said. The launch of the air cargo route will support the surge in trade volume and rise of e-commerce in Africa, with the African e-commerce market projected to reach about 34.6 billion U.S. dollars by 2024, an average annual growth rate of 17.1 percent, according to Cainao.
Staging a comeback, re-energising India’s Africa policy (The Hindu)
Africa is considered a foreign policy priority by India. Even as the COVID-19 era began in March 2020, New Delhi took new initiatives to assist Africa through prompt despatch of medicines and later vaccines. But now the policy implementation needs a critical review. According to the Confederation of Indian Industry, in 2020-21, India’s exports to and imports from Africa stood, respectively, at $27.7 billion and $28.2 billion, a reduction of 4.4% and 25% over the previous year. Thus, bilateral trade valued at $55.9 billion in 2020-21, fell by $10.8 billion compared to 2019-20, and $15.5 billion compared to the peak year of 2014-15. India’s investments in Africa too saw a decrease from $3.2 billion in 2019-20 to $2.9 billion in 2020-21.
Global
Merchandise trade posts strong gains in first quarter despite growing regional disparities (WTO)
The volume of world merchandise trade grew 2.1% quarter-on-quarter in Q1, which is equivalent to an annual rate of 8.7%. Year-on-year growth picked up to 4.3% in the same period. A bigger increase is expected in the second quarter due to the steep decline in the same quarter a year ago. Inequitable access to COVID-19 vaccines continues to pose the greatest threat to the economic outlook since a failure to protect all people regardless of income leaves populations vulnerable to further waves of infection.
Most regions have seen merchandise exports and imports recover to varying degrees since trade bottomed out in the second quarter of last year. They were down more substantially in Africa (‑4.6%), the Middle East (‑8.4%) and the CIS (‑13.9%). By comparison, merchandise import volumes were up year-on-year in all regions except Africa (‑0.9%) and the Middle East (‑2.7%). Overall, it appears that the trade recovery to date has been strongest in Asia and weakest in regions that export natural resources disproportionately.
On 15 June 2021, we, the Directors-General of WHO, WIPO and the WTO, met in a spirit of cooperation and solidarity to map out further collaboration to tackle the COVID-19 pandemic and the pressing global challenges at the intersection of public health, intellectual property and trade. Acutely conscious of our shared responsibility to communities across the world as they confront a health crisis of unprecedented severity and scale, we pledged to bring the full extent of the expertise and resources of our respective institutions to bear in ending the COVID-19 pandemic and improving the health and well-being of all people, everywhere around the globe.
Why is Global Air Cargo Demand on the Rise (Global Trade Magazine)
According to the International Air Transport Association (IATA), the official global body of the airline industry, the demand for global air cargo reached its highest level since IATA began collecting the data in 1990. In March 2020, the demand was 4.4 percent higher than in March 2019. This was the month before the Covid-19 outbreak. However, the statistics don’t necessarily explain why global air cargo demand is at such an all-time high.
New global index seeks to transform how developing nations are supported (The Commonwealth)
The Commonwealth Secretary-General Patricia Scotland has spoken today urging the international community to make crucial changes to how it delivers finance to developing nations, proposing a new system that moves beyond the use of GDP as the sole criteria for receiving certain types of support. The proposed Universal Vulnerability Index (UVI) has been shared with Commonwealth member countries for their review in ongoing consultations. If endorsed globally, the Index could transform the way development finance is delivered to developing nations. “We must do better and act smarter when it comes to the support the international community gives to more vulnerable countries. If we are to rise above the current interlinked global crises we face, we need to muster all our resources in the most effective way.”
Why African women lag in mobile Internet usage (Business Daily)
An estimated 112 million more women started using mobile internet for the first time last year across low- and middle-income countries (LMIC), according to the 2021 GSMA Mobile Gender Gap Report. However, there are still 74 million unconnected women in Sub-Saharan Africa (SSA), and women are still less likely to own a mobile phone than men in the region. However, there has been some improvement, with the global mobile gender gap shrinking over the past year to 15 percent from 19 percent in 2019. The improvement was mostly because a record number of women in South Asia are now using mobile Internet services, but unfortunately the same cannot be said for sub-Saharan Africa where things got worse over the past year. Women in SSA are 37 percent less likely to use mobile Internet compared to men, slightly worse than 36 percent in 2019, making it the region with the largest mobile gender gap globally.
Global roadmap to sustainable energy by 2030 (Africa Renewal)
In order to achieve the SDGs and Paris Agreement targets, energy transition must become a transformational effort, a system overhaul, the proposed roadmap suggests. The reports recommend a rapid scale-up of available solutions to reach 8000 GW of renewables by 2030 from 2800 GW currently, and to increase the average annual rate of energy efficiency improvement from the current 0.8 to 3 per cent. By 2025, 100 countries should establish targets for 100% renewable-based power, and there should be no new coal plants in the pipeline globally.
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National
Pandemic has presented ‘economic reset’ opportunities (Engineering News)
Deputy Minister of Employment and Labour Boitumelo Moloi said on Wednesday that while the Covid-19 pandemic has been catastrophic, it has, in many ways, presented a lot of economic reset opportunities in the process. She was addressing delegates at the launch of Switzerland’s Institute of Management Development’s (IMD’s) 2021 World Competitiveness Yearbook Survey (WCY). The event was organised by Productivity SA, an entity of the Department of Employment and Labour.
South Africa ranked sixty-first in economic performance, government efficiency and infrastructure and fifty-eighth in business efficiency. “Of great importance to us should always be the amount of heart and objective data that is used to determine our country’s productivity and competitiveness. It is the usefulness of data collected by other institutions, which could be the IMD’s competitors, such as the World Economic Forum, that we should measure against our challenges as a country,” she said.
Panel unpacks what is necessary to increase Africa’s agricultural productivity (Engineering News)
Given Africa’s rapidly growing population, demand for food is set to escalate dramatically in the medium term, creating new growth opportunities in agriculture. By 2030, 20% of the world’s population is expected to be in Africa. The growing population will place immense pressure on Africa’s food supply, consequently requiring substantial investment, particularly from the private sector, to guarantee food security. Agricultural Business Chamber of South Africa chief economist Wandile Sihlobo views the law of productivity as a hindrance to trade activity on the continent, because too few countries have the volumes required to be able to trade. To improve on that productivity, he believes further policy interventions are needed to attract investment. In achieving increased agricultural productivity on the continent, Sihlobo believes regional value chains need to be embraced. For example, he says, the poultry sector in South Africa is not very competitive, owing to high input costs, including soybeans as feedstock.
Rising costs of essential foods influenced by some global trends, says economist (Eyewitness News)
Statistics South Africa has published its latest figures showing that consumer price inflation has hit a 30-month high. Steep fuel prices have also contributed to increasing costs in the transport sector. There’s been a drastic rise in the prices of essential food items like cooking oil and tomatoes. These hikes over the past year have contributed to the rise in the consumer price index to 5.2% in May compared to 4.4% the previous month.
Nam exports more live animals than beef (The Namibian)
For the past five months Namibia has exported more live animals than it has slaughtered for value addition and export, the Meat Board of Namibia’s statistics for May indicate. According to the statistics, the country exported 45 623 live animals, while local slaughtering stood at 29 379 head of cattle for both export and local consumption during the period under review. This indicates that more live animals are sold while the country restocks its livestock sector. A new trend of the country importing more beef than usual has also emerged.
Kenya moves to implement trade deal with EU as neighbours lag (Nation)
Kenya will begin implementing a key trade deal with the European Union (EU), after partners in the East African region allowed Nairobi to go first. The revelations emerged on Monday night as President Uhuru Kenyatta toured Brussels, the Belgian capital that also hosts the headquarters of the European bloc. A communique released after the meeting with EU chiefs indicated Kenya will be allowed to move forward with implementing the agreement, even after EAC member states hold reservations. “Trade relations between Kenya and the European Union are an important underpinning of the Strategic Dialogue and the two partners will seek ways to strengthen their cooperation in this field,” said a joint statement issued after the two sides agreed on implementing relations under the Strategic Dialogue Framework. “[This will be through] the implementation by Kenya and the European Union, based on the principle of ‘variable geometry’, of the Economic Partnership Agreement between the European Union and the East African Community.”
IMF to give Kenya additional $407m budgetary support (The East African)
The International Monetary Fund (IMF) executive board has approved the release of an additional $407 million budgetary support for Kenya after being satisfied with the government’s commitment to socio-economic and structural reforms under its 38-month financing programme with the East African nation. In a statement Wednesday the Fund said the Board’s decision allows for an aggregate immediate disbursement of $407 million, bringing Kenya’s total disbursements for budget support under the under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) programme to about $714.5 million.
Central Bank will continue to provide policy support for economic recovery – Governor (MyJoyOnline)
Governor of the Bank of Ghana, Dr Ernest Addison, has said that the Bank will continue to provide strong policy support to aid the economic revitalization process under government’s CARES (Obaatan pa) programme. He said in that direction, monetary and financial sector policies would be designed to anchor the disinflation process, create supportive frameworks for credit enhancement, and enhance the financial digitisation process to support businesses and overall economic growth. Dr Addison made these remarks at the Ghana National Chamber of Commerce and Industry (GNCCI) Chief Executive Officers Business Forum in Accra, Wednesday, June 23. The Forum was on the theme: “Redefining Business Success: The path for Business Value, Resilience and sustainability.”
Ghana-Rwanda relations catalyst for trade, investment – Rwanda High Commissioner (BusinessGhana)
Rwanda’s High Commissioner to Ghana, Dr Aisa Kirabo Kacyira, has underscored the steady development of mutual ties between Rwanda and Ghana, in spite of disruption caused by the COVID-19 pandemic. She noted that the strong relations between the two countries, which had developed over the past 27 years and enhanced through the shared vision of the governments of both countries, should serve as a catalyst to propel trade and investment flows between the two countries for economic growth and improvement of livelihoods in the face of the implementation of the African Continental Free Trade Area agreement. In this regard, Rwanda has identified three key areas of focus for stronger cooperation with Ghana, namely tourism, trade and business investment, and education.
Somalia, Ethiopia agree to trade fish for miraa (Nairobi News)
Somalia has agreed on a barter trade deal with Ethiopia that enables them to export fish to their neighbours in exchange for Khat (miraa). The deal is part of a landmark bilateral agreement signed by the leaders of these two countries on Monday, June 21, 2021. The agreement appears to be part of a handshake between the neighbouring countries that have not been seeing eye to eye on several diplomatic matters for the past decade. Experts have said the new pact, other than boosting bilateral trade relations between the two countries, will also spur development in the Horn of Africa by creating employment opportunities.
Africa
38 countries have ratified AfCFTA agreement – Secretary-General (The NEWS)
Mr Wamkele Mene, the Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, says 38 countries have now deposited their instrument of ratification of the agreement establishing the AfCFTA. Mene, who disclosed this while speaking with newsmen on Wednesday in Abuja, said that it was at the initial stages of AfCFTA implementation. He said though ratifying an international instrument involved a lot of processes but governments were encouraged to be fast for full AfCFTA implementation and benefits across the continent.
“We are still waiting for others to ratify the agreement. “But I am not worried that we are about 38 because in ratifying any international instrument, processes including legal and political processes needed to be followed for a country to be in a state of readiness. “There are countries that are ready with custom’s infrastructure that is required to be able to trade in a commercial and meaningful sense, examples are South Africa, Egypt, Ghana and Kenya. “These are countries that have introduced the necessary customs procedures for the trading to start happening,” he noted.
Africa’s Trade Revolution Needs Peace (CNBCAfrica)
Besides causing untimely deaths and suffering, and destroying infrastructure, conflicts impede economic activity and undermine formal and informal cross-border trade. Informal trade between Mali and Algeria, for example, has fallen by more than 64% since 2011, largely owing to the conflict in northern Mali and the closure of the two countries’ border. The negative impact of wars on trade can be long-lasting. Globally, violent conflict is estimated to cause a 26% reduction in exports in the year that hostilities begin, rising to 35% five years later and 58% after a decade. Across Africa, where the median duration of conflict is about four years, the negative spillovers of wars on trade could persist in the medium and long term. High-intensity conflicts also hinder trade and economic integration indirectly by triggering a sharp rise in military expenditures.
Trade Expert Calls For Increased Investments In AfCFTA to Boost The African Economy (Investors King)
On Friday, The Nigerian Economic Summit Group said that many more Nigerians are expected to fall into the poverty trap amid rising unemployment in the country. The NESG, a private sector-led think-tank, noted in its economic report for the first quarter of 2021 that the country’s economic growth in the period under review was relatively weak. It said, “Nigeria’s economic growth trajectory is better described as jobless and less inclusive even in the heydays of high growth regime in the 2000s. “While the Nigerian economy recovered from the recession in Q4 of 2020, the unemployment rate spiked to its highest level ever at 33.3 percent in the same quarter. “With the COVID-19 crisis heightening the rate of joblessness, many Nigerians are expected to fall into the poverty trap, going forward.”
AfCFTA Targets 52% Intra-African Trade Increase – Nana Dokua Asiamah-Adjei (Peace FM Online)
The Deputy Trade and Industry Minister nominee, Nana Ama Dokua Asiamah-Adjei says Intra-African Trade will soon compete with other developed countries. According to her, African Continental Free Trade Area (AfCFTA), is targeting 52% of intra-African trade increase by 2022. “Intra-Asian trade is well over 60%, intra-European trade is well over 50%, and intra-North American trade is well over 40%. “Currently, intra-African trade stands at 12% and it is the target of the AfCFTA that by 2022, the intra-African trade will increase to 52%.” Nana Dokua Asiamah-Adjei posted on social media in his quest to educate the public on Tade and Industry If this is achieved; Africa will be ranked among the best trade hub in the world.
Women in maritime sector challenged on AfCFTA (Vanguard)
Nigerian women in the maritime industry have been charged to explore investment opportunities in the African Continental Free Trade Agreement AfCFTA which came into full effect in January 2021. President of the Women’s International Shipping and Trading Association, WISTA, Mrs Eunice Ezeoke, made the charge in Lagos while heralding the association’s 2021 Business Luncheon and Magazine Launch in Lagos with the theme: “AfCFTA: Investment Opportunities for Women in Trade.” She said that the association is contented that Nigeria has keyed-in and embraced the AfCFTA adding that the Federal Government is presently sensitising the various stakeholders in the public and private sectors on how to take advantage of the new agreement.
Beware of debt distress, Okonjo-Iweala, Adesina warn African leaders (Guardian Nigeria)
The Director-General of the World Trade Organisation (WTO) and ex-Minister of Finance, Dr. Ngozi Okonjo-Iweala; President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina; Governor of the Central Bank of Egypt (CBE), Tarek Amer and other regional economic stakeholders, yesterday, expressed concern about rising national debts, warning that majority of countries in the continent to face a high risk of falling into a debt trap. They expressed their concerns during the ongoing African Development Bank Group’s 2021 Annual Meetings, warning African political leaders to explore other funding options and scale up debt management transparency. The experts observed that majority of the countries are grappling with sustainability just as debt servicing has become a major burden on the regional economy. Okonjo-Iweala observed that the current debt burden pre-dated COVID-19 but was worsened by the pandemic. Noting that “prevention is better than crisis management”, she warned that Africa could not afford to fall into a debt trap again.
The Road Ahead for Africa – Fighting the Pandemic and Dealing with Debt (IMF)
Africa is now facing the world’s fastest growth rate for new COVID cases, with an exponential trajectory even more alarming than during the second wave in January. Based on current trends, this wave will likely surpass previous peaks within the next week. The warning signs are clear: a two-track pandemic is leading to a two-track recovery. Africa is already falling behind in terms of growth prospects. This year, we project the global economy to grow by 6 percent, but only half that – 3.2 percent – in Africa. This ought to change, for the sake of Africa and for the benefit of the world. And it requires international cooperation on multiple fronts.
Entrepreneurship is critical to Africa’s transformation (AfDB)
A June 2021 African Development Bank White Paper, Entrepreneurship and Free Trade: Africa’s Catalysts for a New Era of Economic Prosperity, states that entrepreneurship must be at the heart of efforts to transform Africa’s economic prospects. The paper posits the Covid-19 crisis has triggered shifts that open up prospects for enhancing resilience and economic growth. As African economies begin rebounding from the crisis, the continent stands at an inflection point. The report also notes a number of trends that could bring about more inclusive economic growth are beginning to take hold – including digitalization and the emergence of business opportunities linked to greening economies. The right interventions could open the door for the continent’s young and dynamic entrepreneurs and help build linkages with the large firms that are the key drivers of supply chains to create jobs and revenues to help scale up businesses.
New ECA study shows Africa may not meet SDG7 targets (UNECA)
The Economic Commission for Africa (ECA) on Tuesday 22 June 2021 unveiled findings of a study titled “Energy Prices in Africa: Transition Towards Clean Energy for Africa’s Industrialization.” The presentation, which was made during a virtual ministerial meeting, indicates that 600 million people in Africa do not have access to electricity and 900 million have no access to clean cooking fuel. Meanwhile, electricity access rates in 24 countries are below 50%. “Access to cheap and clean energy is an essential component of Africa’s transformation and industrialization,” said Oliver Chinganya, Director of the African Centre for Statistics (ACS), who moderated the session. The ACS Director said, “in the context of AfCFTA deployment and implementation, supplying economies with affordable fuel is integral to supporting actions for faster achievement of the Sustainable Development Goals and Africa’s Agenda 2063.”
Southern Africa: Governments must urgently ramp up Covid-19 vaccination efforts to avoid third wave catastrophe (Amnesty International)
With a number of countries across Southern Africa experiencing a deadly third wave of Covid-19 infections, Amnesty International and 27 other Non-Governmental Organizations are calling on regional leaders, businesses, foreign governments and donors, to ramp up efforts and increase resources to speedily vaccinate as many people as possible. The organizations are also calling on high income countries and their groupings, including G20 and G7, to ensure that the intellectual property rights do not to prevent any country from upholding the right to health. “A number of countries across Southern Africa, including Namibia, South Africa.”
Communiqué of the Extraordinary Summit of SADC Heads of State and Government, 23rd June, 2021
The Extraordinary Summit of the Heads of State and Government of the Southern African Development Community (SADC) was held at Joaquim Chissano International Conference Centre in Maputo, Republic of Mozambique, on the 23rd June 2021.
10. Summit launched the SADC at 40th Publication, and urged SADC citizen to use the Publication to appreciate the history of SADC.
11. Summit committed to enhance SADC regional and national capacities in research and manufacturing of pharmaceuticals and other essential drugs and medicines, promotion of traditional and alternative medicines, and the development of vaccines.
12. Summit urged SADC Member States and the International Community to support the proposal for a temporary waiver of certain provisions of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) to allow more countries to produce COVID-19 vaccine, for more efficient response to the COVID-19 pandemic.
13. Summit called upon the World Trade Organization (WTO) to finalize negotiations on the waiver of certain provisions of the Agreement on Trade-Related Aspects of the Trade Related Intellectual Property Rights (TRIPS), and expedite its operationalization.
14. Summit called for the end of vaccine nationalism and for equal access to vaccine by all countries.
New plan to mitigate Covid impact on East Africa logistics (Business Daily)
Shippers and freight forwarders have agreed to develop a regional stimulus-response plan in efforts to mitigate the effects of the Covid-19 pandemic on business and spur regional trade. This is among a raft of policy proposals arrived at following an industry study at the Nairobi and Naivasha inland container depots, the border towns of Namanga and Malaba as well as Rusumu in Rwanda. The study conducted between March 2020 and March this year established that over 75 percent of transport and logistics businesses in the East African community were negatively impacted by the Covid-19 pandemic.
DRC President to launch EAC Verification Mission to the country (EAC)
The President of the Democratic Republic of Congo, H.E. Felix Tshishekedi, will on Thursday this week launch the East African Community’s verification mission to the country in the eastern Congolese town of Goma. The Summit of EAC Heads of State at its 21st Ordinary Meeting held on 27th February, 2021 considered the application by DRC to join the Community and directed the Council to expeditiously undertake a verification mission in accordance with the EAC procedure for admission of new members into the EAC and report to the 22nd Summit.
“Intra-EAC trade has increased among the EAC Partner States in the past 10 years. And we have no choice. That is why we are widening to include the DR Congo to become the 7th member of the EAC,” EAC Secretary General Hon. Dr. Mathuki said in a tweet shared on the Community’s official twitter handle @jumuiya. DRC shares a border with five EAC Partner States namely Tanzania, Burundi, Rwanda, Uganda and South Sudan.
EAC tax harmonisation efforts still poor – report (Daily Monitor)
Despite having the same theme for the financial year 2021/2022 Budget, the six regional East African Community member states have not done much in harmonising their tax regime. This results into unnecessary trade competition which paves way for protectionism, which threatens regional integration. This is according to a report titled: Analysis of Tax Measures in the East African Community Member States: Are we moving towards a harmonised tax system? The report which was presented yesterday during the post EAC Tax and Budget Dialogue FY 2021/22 in Kampala by the executive director of SEATINI Uganda, Ms Jane Nalunga on behalf of other Civil Society Organisations with regional presence among them EATGN-Kenya, Policy Forum Tanzania and Tax Justice Network Africa, further disclosed that there is limited effort to harmonise tax laws at regional level.
Engaging private sector in EAC will enhance regional integration (IPPMedia)
The private sector employs most of the workforce in some countries. In private sector, activities are guided by the motive to earn money. A 2013 study by the International Finance Corporation (part of the World Bank Group) identified that 90 per cent of jobs in developing countries are in the private sector. In some cases, usually involving multinational corporations that can pick and choose their suppliers and locations based on their perception of the regulatory environment, local state regulations have resulted in uneven practices within one company. Uganda has reaffirmed its commitment towards the East African Community (EAC) integration and urged the Secretary General to revitalise the Community’s strategies by engaging more with the private sector and other stakeholders to enhance integration. Uganda’s High Commissioner to Tanzania, Richard Kabonero expressed his country’s commitment recently in Arusha when he paid a courtesy call to the Secretary General of EAC Dr Peter Mathuki.
“It is a critical that the EAC Secretariat involves the private sector especially as we move closer to the latter stages of integration,” said Amb Kabonero. The High Commissioner commended the efforts of the EAC’s towards the inclusion of Democratic Republic of Congo into the EAC as Summit directed. “Admitting the DRC to the EAC presents an opportunity to increase trade flows and it may play a key role in promoting stability in the region,” he said. “It is high time EAC partner states find a way to work together against COVID-19,” said the envoy.
Figure of the week: The rise of African tech startups (Brookings)
Technology startups and the venture capital ecosystem that transforms ideas and fledgling companies into disruptive businesses are growing globally – a phenomenon that the Boston Consulting Group (BCG) explores in a recent report on the expansion and maturation of African tech startups. According to the authors, Africa enjoys a fertile environment for tech entrepreneurs due to the continent’s youthful and growing population, rising internet penetration, and the application of emerging technologies that have the potential to improve access to healthcare, financial services, education, and energy. As such, the research paper focuses on the meteoric growth of tech startups throughout the continent, persistent challenges and structural barriers stymying these firms’ further growth, and policy recommendations to overcome these obstacles and develop Africa’s innovation hubs.
Investment climate bounces back – IFLR’s Africa Market Makers Guide launched (International Financial Law Review)
With a young population and a grand consumer base, Africa remains the world’s goldfield of economic potential. The African Development Bank projects that the continent’s real GDP will increase by 3.4% in 2021, after contracting by 2.1% in 2020. The rebound will be spearheaded by a number of resumed infrastructure projects, a rebound in commodity prices, and further government support for pandemic-hit businesses. With Africa’s fondness for imagination and entrepreneurship, new solutions will appear to overcome obstacles. As governments, businesses and investors strive for prosperity, the demand for legal advice remains high. Associating with experts who are closest to the action, IFLR brings you an exclusive insight into some of the most important developments from the continent. In spite of the pandemic and social unrest arising from the Hirak movement, Algeria has successfully revamped its investment framework in order to attract foreign financiers.
World Bank and African Union Team Up to Support Rapid Vaccination for Up to 400 million People in Africa (World Bank)
The African Finance Ministers and the World Bank Group met today to fast track vaccine acquisition on the continent and avoid a third wave. In a boost to the African Union’s target to vaccinate 60% of the continent’s population by 2022, the World Bank and the AU announced that they are partnering to support the Africa Vaccine Acquisition Task Team (AVATT) initiative with resources to allow countries to purchase and deploy vaccines for up to 400 million people across Africa. This extraordinary regional effort complements COVAX and comes at a time of rising COVID-19 cases in the region. World Bank financing is available to support the purchase and deployment of doses secured by AVATT. “A key priority in this initiative is to make sure the purchase of vaccines translates into people getting vaccinated,” noted Vera Songwe, the Executive Secretary of the ECA.
Global
Business leaders express support for WTO, underline priorities for MC12 (WTO)
The fourth Trade Dialogues session dedicated to the business community was organized jointly with the International Chamber of Commerce (ICC) and brought together over 80 business representatives who discussed their priorities in the various areas of the WTO’s work. DG Okonjo-Iweala said: “I am very pleased to have facilitated another Trade Dialogues with the private sector. Our rules directly impact businesses’ ability to move goods and services across borders and tap into new markets. Because they deal with these realities every day, they can help us and the members understand what is working well, and more importantly, what is not. This is much needed input as we work to deliver results between now and our 12th Ministerial Conference in early December.”
ICC Chair Ajay Banga said: “Global trade is the foundation for global prosperity and global trust. Over the past decades, global trade has helped to close economic gaps, foster diversity, drive innovation and efficiencies. We have to be ready to make the most of this moment – and that will come not by talking about the future of the WTO, but by empowering and building the WTO of the future. The ICC stands ready to shape a more inclusive, sustainable global trading system that will benefit us all.”
World manufacturing: one year of COVID-19 (UNIDO)
The most recent data, including the first months of 2021, confirm that global manufacturing production continues to recover, following a major drop during the first half of 2020 due to COVID-19. However, the pace of recovery is unequal. While manufacturing production in some countries, such as China, has reached and exceeded its pre-crisis production level, other countries still show only weak signs of recovery. The latest World Manufacturing Report, published by the United Nations Industrial Development Organization (UNIDO), includes the most recent official data on manufacturing production across the world and points to a year-over-year growth of 12.0 per cent in the first quarter of 2021. However, the report also shows the different pace of recovery in different regions.
IMF Reserves Could Help Rebuild Emerging Debt Markets, UN Says (Bloomberg)
A record injection of International Monetary Fund resources this year could fund a facility to lower the costs for developing economies selling sovereign debt abroad, according to the head of the United Nations Economic Commission for Africa. Uneca’s Vera Songwe said she’s proposed a facility to bolster the liquidity of the secondary market for emerging and frontier-market debt, reducing the premium some issuers are charged by investors that can’t immediately trade their bonds.
“We are not asking for any special treatment for frontier and emerging market economies. We are actually trying to perfect the market,” Songwe said in an interview at the Qatar Economic Forum. “We can reduce the cost of the bond or give an additional premium if you are going to invest the resources in sustainability or green growth, renewable energy, better infrastructure.”
Emerging trends from the UN Global Compact Leaders Summit (Devex)
The UN Global Compact 2021 Leaders Summit was a 26-hour virtual marathon bringing together global business leaders and partners to create a sustainable and socially responsible world. A range of new announcements was made, and programs were launched. The new UN Global Compact Strategic Plan was released for “bold and rapid progress to boost business action,” according to Sanda Ojiambo, CEO and executive director at the UN Global Compact. A framework for action on Sustainable Development Goal 16 focuses on improving practices for corporate governance. An anti-corruption collective action playbook will fight against entrenched corruption. And a new report on climate action sets bold targets for businesses.
A wake-up call on digitalisation (Central Banking)
António Guterres, the UN secretary-general, launched the Task Force on Digital Financing of the Sustainable Development Goals (SDGs) in November 2018. The group was asked to identify and recommend ways in which digitalisation could be harnessed to better align financing with the UN’s SDGs. Two years later, in August 2020, the Task Force published a report, People’s money – Harnessing digitalization to finance a sustainable future, which has proved a wake-up call to many. The report found that digitalisation is playing an important role in aligning key aspects of global finance with the UN’s SDGs, and is already a feature of our global economy and of our global financial system, in both private and public finance. It would not be possible to have US$1 trillion worth of green bonds if large-scale datasets and rapid real-time data flows were not becoming the norm. Nor can carbon markets exist without a sophisticated digital infrastructure. Equally important is that financial and product innovation are driving new ways of financing in both education and health, not simply at the larger institutional scale, but also at the individual level – even at the lower levels of income.
Small businesses unprepared for pandemic-sized climate shock ‘every decade’ (UN News)
“The pandemic has shown that the resilience of businesses matter,” said ITC Executive Director Pamela Coke-Hamilton. “Going green is a survival imperative; the longer firms take to act, the higher the costs become.” Although small businesses account for more than 50 per cent of global emissions, only 38 per cent invested in environmental adaptation, compared to 60 per cent of large firms. “Developed countries have the financial means to sustain their economies and protect the most vulnerable. But most developing and least-developed countries are unable to do the same,” Ms. Coke-Hamilton said. She added that if such resilience among micro and small businesses had been necessary during the pandemic, “it will be even more crucial in addressing climate change”, whose economic disruption will be like “a COVID-19-size pandemic happening every decade”.
The economics of deep trade agreements: A new eBook (VOX EU)
Regional agreements are not a new feature of the global trade system; they have been around long before multilateral trade rules were even established. What is new is the recent surge in their number, from less than 50 in 1990 to more than 300 today, and especially their increased complexity. While WTO rules still form the basis of most trade agreements, regional agreements have in some sense run away with the trade agenda. As Pascal Lamy recently put it: More than tariffs, trade agreements today are about regulatory measures and other so called “non-tariff measures”, that were once the exclusive domain of domestic policymaking. For these reasons, “deep” trade agreements, as trade experts refer to this new class of agreements, are fundamentally different than the previous generation of trade agreements. (Lamy, 2020). A new CEPR-World Bank eBook (Fernandes et al. 2021) brings together recent research on the economics of deep trade agreements (DTAs). What are the determinants of DTAs? How do their detailed provisions affect trade and non-trade outcomes? Are these effects different from those of shallow trade agreements?
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National
South Africa unearths hidden strengths during pandemic (OMFIF)
This October, OMFIF and ABSA launch the fifth edition of the ABSA Africa Financial Markets Index, the region’s financial market development benchmark. South Africa, the index’s top scorer, is steering through the Covid-19 crisis better than initially expected. Its fiscal deficit is lower than was predicted at the beginning of the pandemic, and the country is projected to experience a more robust recovery in 2021. SARB reviewed its growth outlook at the end of May. The central bank expects a 4.2% GDP growth in 2021, up from the 3.8% it had previously estimated. ‘The stronger growth forecast for 2021 reflects better sectoral growth performances and more robust terms of trade in the first quarter of this year’, explained Lesetja Kganyago, SARB’s governor.
South Africa has undoubtedly discovered some hidden strengths during the pandemic. However, economic recovery is still vulnerable. OMFIF’s ABSA Africa Financial Markets Index will analyse these and other developments that have taken place during the past year in the financial markets of South Africa and 22 other countries from the region.
Court extends suspension of order to stop SGR cargo rule (Business Daily)
The Kenya Ports Authority (KPA) got a reprieve on Tuesday after the High Court extended orders that suspended a decision that would allow importers to choose their preferred mode of transport for their cargo whether by the standard gauge railway (SGR) or trucks. Justice Eric Ogola extended the interim orders until September 30 when a five-judge bench is expected to deliver its ruling on an application by KPA seeking a further stay for 90 days. “The judges have not had time to sit and write a ruling,” said Justice Ogola on Tuesday, the day the bench was to give its judgment.
Tanzanian MPs approve national budget estimates (The East African)
Tanzania’s Members of Parliament have unanimously approved the national budget estimates. They voted Tuesday through open ballot as outlined in parliamentary standing procedures. The government had asked the August House to approve the Tsh36.6 trillion ($15.8 billion) which was unveiled last week by Finance Minister Mwigulu Nchemba. The amount is slightly higher than the previous budget estimates of Tsh34.5 trillion ($14.9 billion) which was approved during the 2020/21 fiscal year which will come to an end on June 30.
Building Back Better: Supporting Egypt’s efforts at inclusive recovery (World Bank Blog)
Egypt’s macroeconomic reforms of recent years helped stabilize the economy, allowing the country to enter the pandemic with a level of economic stability that somewhat cushioned the blow of the COVID-19 crisis. The pandemic’s impact has however impacted the country’s prospects of growth – exacerbating longstanding issues but also highlighting what Egypt can do to recover and build back better in a way that enables the country to fulfill its potential. For this, a multi-dimensional approach is needed to put Egypt on the path to inclusive and green development, to protect the poor and strengthen human capital, to help create private sector jobs, and to strengthen policies, institutions and investments.
U.S. seeks beneficial trade ties with Nigeria, others (The Guardian Nigeria)
The United States – Africa relationship under the government of Biden – Harris Administration, will entail increasing two-way trade and investment between Africa and the United States, working with African Governments as partners in pursuing shared interests such as global health, climate change and the creative industry, Deputy Assistant Secretary of State for African Affairs, Akunna Cook, has said. The US Ambassador to Nigeria, Ambassador Mary Beth Leonard, stated that one of her most important roles as an Ambassador is to advocate for hugely beneficial trade and investment opportunities of which an enabling environment allows companies to expand, thereby creating jobs and growth for the economy of both Countries.
Hope for Nigeria’s trade integration as $430m Enugu-Cameroon road ready soon (International Centre For Investigative Reporting)
The African Development Bank (AfDB) has said that the $430 million highway project linking Enugu in South-East Nigeria to Bamenda in Cameroon will be completed soon. This, when completed, is expected to bolster integration of Nigerian businesses with African peers and support the African Continental Free Trade Area (AfCFTA). The AfDB confirmed this development in a statement on Tuesday, saying that it was part of its investments in West Africa which currently stood at $16 billion.
Malawi, south Sudan strike deal (The Nation Online)
Malawi and South Sudan on Thursday signed a trade agreement that will see Lilongwe exporting its surplus food to Juba to help ease a widening deficit of cereals in Africa’s youngest nation. The two countries officially signed a memorandum of understanding (MoU) in Juba that allows Malawi to export to South Sudan products such as maize, maize flour, sugar, rice, groundnuts and beans. The deal also allows South Sudan to export refined petroleum products to Malawi, a move which is expected to cut costs of importing from the Arab world, according to Minister of Trade Sosten Gwengwe.
MoU on Trade and Economic Cooperation between Malawi and South Sudan - 10 June 2021
Beyond Cocoa, Ivory Coast Seeks to Produce Greener Raw Materials (Bloomberg)
Ivory Coast, the world’s biggest cocoa producer, plans to raise ethical standards for all its key exports as it faces increasing consumer pressure to grow the chocolate ingredient more sustainably. Cocoa accounts for roughly half of Ivorian exports, which include rubber, oil and gold. While its exploitation has contributed to the country losing more than 80% of its forest cover since the 1960s, that trend is showing signs of progress. Ivory Coast now seeks to expand forest area to 20% of its territory by 2030.
Egypt implements plan to upgrade sea ports, promote int’l trade: experts (Xinhua)
Egypt has been implementing a comprehensive plan to upgrade its ports at the Red Sea and Mediterranean Sea with the goal of becoming a logistic center in the Middle East and Africa and promoting its presence on the international trade map, said Egyptian experts. “The plan aims to boost the competitiveness of Egypt’s ports, create added value, lure investments, and activate the flow of importation and exportation,” said Mona Sobhy, professor of economic geography and transportation with the Al-Azhar University in Cairo. “Egypt is working on digital transformation of the operation of ports, linking seaports, dry and internal ports, consumption centers and manufacturing areas through road and rail networks, which would facilitate the movement of transport and distribution of exports and imports,” Sobhy said.
IMF Managing Director Kristalina Georgieva Announces Financing Milestone on Debt Relief for Sudan (IMF)
IMF Managing Director Kristalina Georgieva today announced that the International Monetary Fund has secured sufficient financing pledges to allow the Fund to provide comprehensive debt relief to Sudan. 101 IMF member countries have pledged to provide more than SDR 992 million (US$1,415.7 million) in financing. This will enable the clearance of Sudan’s arrears to the IMF, allow for the provision of new Fund financing, and facilitate the delivery of the HIPC Initiative and other debt relief to Sudan. This will also help unlock significant amounts of development assistance and create the conditions for higher and more inclusive growth in Sudan.
IFC Partners with East Africa Bank to Support Increased Trade and Economic Activity in Djibouti (IFC)
Supporting a vital engine of economic growth that has been strained by the COVID-19 pandemic, IFC today announced a trade finance guarantee facility to Djibouti-based East African Bank to help local companies engage in cross-border trade. IFC's trade finance facility guarantee of up to $5 million under its Global Trade Finance Program (GTFP) will help EAB provide financing to importers and exporters in Djibouti, supporting the local economy and helping maintain the flow of essential goods into the country, including medical equipment and commodities. IFC's support to EAB is underpinned by the International Development Association's Private Sector Window (IDA PSW), which is providing first-lost guarantees and limit enhancements to the GTFP in low-income countries.
Africa
Use the Africa free-trade area to create jobs and enable entrepreneurship for the youth (Bizcommunity)
Across the continent, the AfCFTA is seen as an important milestone that has the potential to improve the economic fortunes of the region and to energise its socioeconomic objectives through industrialisation and the strengthening of regional and interstate cooperation. By easing some of the industrialisation constraints, the regional economy can generate more than sufficient jobs and reduce the youth unemployment rate. Ultimately, the success of AfCFTA will primarily depend on the capacity of the African governments to tap into the potential of the youthful human capital.
In fact, 75% of Africa’s population are youth. It has become crucial for young people to be actively involved in the successful implementation of the AfCFTA. It’s a perfect situation for the continent: a massive human capital and a free-trade area. However, without adequate skills, infrastructure and a strong manufacturing sector, the AfCFTA cannot be effectively implemented. Whilst this is a great opportunity for the regional economy, it also risks stagnation if the fundamentals are not addressed as a matter of urgency.
AfCFTA: SON Canvasses Standards’ Harmonisation for Products (THISDAY Newspapers)
In order to reap the full benefits of the African Continental Free Trade Agreement (AfCFTA), there is the urgent need to harmonise products standards in Africa, the Standards Organisation of Nigeria (SON) has said. It further stated that standards’ harmonisation would equally go a long way towards checking the activities of unscrupulous importers and dealers on fake and sub-standard products who would want to use the window opened by the trade pact to carry out economic sabotage. “Africa is no doubt a big market. The advanced countries know this. Africa must therefore put her act properly together to compete with the rest of the world. “ARSO needs to brainstorm concerning the kind, type and nature of products and services that could give Africa comparative advantage and value addition at the global market. It is all about global acceptability, competitiveness and regional economic development.’’
Experts call for African countries to learn from China’s experience in poverty alleviation (Xinhua)
Experts and policymakers, attending a poverty reduction-themed seminar, on Tuesday called on African countries to craft specific strategic cooperation endeavors towards replicating China’s achievements in poverty alleviation. The high-level seminar that was held virtually under the theme “China’s Poverty Reduction Practice Supports African Union (AU)’s Agenda 2063,” was organized by the United Nations Economic Commission for Africa (UNECA), the Chinese Mission to the AU and the China-Africa Institute. Albert Muchanga, AU Commissioner for Trade and Industry, said that China’s rich poverty eradication experience can be replicated in Africa as numerous researches and publications depicted a downward trend in the global poverty statistics with China’s remarkable achievements.
Promoting ‘Brand Africa’ to Realize the Continent’s Tourism Potential (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.
Africa as dumping ground for used cars must stop – AAAM President (GhanaWeb)
The President of the African Association of Automotive Manufacturers (AAAM), Mike Whitfield, has said that the current situation wherein Africa seems to be the dumping-ground for used and unwanted automotive products needs to change. He has therefore impressed on the global automotive industry to join forces and establish a strong base in Africa to help accelerate the continent’s economic growth. Speaking in a virtual webinar to explore how the AfCFTA can help shape auto policies for African nations to drive industrialisation, Mr. Whitfield – who is also the Nissan Africa South (NAS) chairperson – said there are enormous statistics to show that the continent holds huge opportunities for the future of the automotive sector, and it is about time global players paid more attention to Africa.
Covid-19: African farmers lost 80% of revenue in 2020 (Food for Mzansi)
Improving value chains and conditions translating to improved livelihoods for farmers and workers in Africa will be at the heart of a global discussion at the Africa Fairtrade Convention (AFC), which kicks off today. This, as new research shows African farmers lost up to 80% of their revenue last year. Speaking during a virtual press conference, Fairtrade Africa programme director Chris Oluoch said farmers in Africa lost 80% of their revenue due to the pandemic. Furthermore, as companies closed shop due to lack of access to markets as most countries closed their borders, many workers also lost their jobs. Furthermore, the pandemic, Oluech reckons, triggered a wake-up call for governments to increase their investment in protecting African farmers from these losses.
Making FTZs useful to agric (The Nation)
The food sector is an economic powerhouse, a jobs creator and major contributor to the Gross Domestic Product (GDP). Policymakers across Africa are making efforts to provide the most conducive condition for the industry to thrive. In the last 10 years, attention has been given to upgrading the agricultural transportation system, including the establishment of logistics and manufacturing clusters, to lift food production. Addressing the Africa Economic Zones Organisation (AEZO) meeting, African Development Bank (AfDB) President, Dr Akinwunmi Adesina noted that special economic zones are helping to grow the economies of many countries. His words: “Their numbers have exploded from less than 200 in the 1980s to 5,000. Collectively, they have contributed exports worth $3.5 trillion, roughly 20 per cent of global trade in goods.
EAC Sectoral Council on Agriculture and Food Security currently underway in Arusha (EAC)
The 14th meeting of the EAC Sectoral Council of Ministers on Agriculture and Food Security is currently ongoing at the EAC Headquarters in Arusha, Tanzania and through hybrid means. Among the items on the agenda are: consideration of the reports on Implementation of previous Council and Sectoral Council Decisions, EAC Regional Project on Aflatoxin Prevention and Control, Lake Victoria Fisheries Organization and Competitive African Rice Initiative in East Africa Project (cari-ea). In addition to the agenda for discussion will be reports on livestock development, harmonization of farm inputs as well as resource mobilization.
FAO launches Green Cities Action Programme for Africa (FAO)
A big push in a rapidly urbanizing continent kicked off today as the Food and Agriculture Organization of the United Nations (FAO) launched the Green Cities Regional Action Programme for Africa. The Programme aims to apply innovative solutions and turn urbanization into an opportunity for cities to become more sustainable, more resilient, provide access to healthy foods and ensure a better life for everyone. The initiative aims to scale-up fast-action measures for large, medium and small cities to be more resilient, food and nutrition secure, with pleasant natural environments, more integrated nutritious food production-and-distribution systems benefiting residents and farmers alike.
S. Korea, African development bank ink deal on energy, infra projects (Yonhap News Agency)
South Korea's finance ministry said Tuesday it has clinched a US$600 million deal with Africa's development bank to expand its investment in energy and infrastructure projects in the continent over the next five years. The Korean government, the African Development Bank (AfDB) and the state-run Export-Import Bank of Korea inked the so-called Korea-Africa Energy Investment Framework, according to the Ministry of Economy and Finance. The move is aimed at building a cooperative financing scheme between the country's low-interest loan program and the AfDB as part of efforts to support energy and infrastructure projects in Africa.
Global
COVID-19 pandemic: threats to SMEs in poorest nations require swift policy action (UNIDO)
Despite the overwhelming dominance of services in the world economy, the manufacturing sector continues to punch above its weight. It remains a main driver of the productivity growth needed to spur technological change and innovation, essential for both job creation and well-being. This is especially true for developing countries, making industrialization a crucial part of efforts to achieve the Sustainable Development Goals (SDGs). We should therefore be concerned about signs emerging in the world’s poorest countries. Data sets are scarce, but there is evidence to suggest that the COVID-19 pandemic has had a severe impact on small and medium-sized enterprises (SMEs) and on the informal sector in least developed countries (LDCs). Without swift action from governments and the international community to get key industrial sectors back on track, a protracted downturn may be on the cards, with knock-on effects on development and efforts to cut poverty.
WTO members review CPTPP at 100th session of Committee on Regional Trade Agreements (WTO)
WTO members considered the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) at the landmark 100th session of the Committee on Regional Trade Agreements (RTAs) on 21 June. Dr Ngozi Okonjo-Iweala, Director-General, said the Committee’s work is especially valuable as trading relationships become more complex under new agreements. “There has always been a close relationship between RTAs and the multilateral trading system,” she said. “The work done by the Committee helps us understand how this relationship is evolving and is a regular reminder of how important it is for RTAs and the multilateral trading system to work towards the same goals,” she said, noting that over 190 RTAs have been reviewed in the Committee.
EU ignores India, S Africa’s patent waiver plea at WTO (Times of India)
The European Union has submitted a draft declaration at the World Trade Organization (WTO), “ignoring” the objectives of intellectual property (IP) waiver jointly sought by India and South Africa on Covid drugs and vaccines. While the waiver proposal is backed by over 100 countries, the EU has resisted it for eight months now. The EU declaration, which reiterates its position of using existing provisions under the WTO’s TRIPS (Trade-Related Aspects of Intellectual Property Rights) agreement during the pandemic, is being perceived by public health experts as a diversionary tactic. This could delay the progress of reaching a consensus on the waiver, which is critical to address the stark inequities in access to Covid vaccines globally, they added.
COVID-19 recovery: some economies will take longer to rebound – this is bad for everyone (World Economic Forum)
In 2020, the global economy contracted by 4.3%, with some countries doing considerably worse than others. Two main factors underpin the speed of a country’s economic recovery from the pandemic: the strength of its COVID-19 policy response, and the success of its vaccination programme. Importantly, policy action varied significantly across countries in type, size and scope. The pandemic hit emerging markets harder than advanced economies, unlike in the aftermath of the 2008 global financial crisis. Many poorer countries have found it harder to contain and mitigate the virus because of their limited healthcare capacity, and with less ability to expand public spending, suffered greater losses from the pandemic. But divergence in the speed and scale of economic recovery also entails substantial risk to individual countries as well as their trading partners. The COVID-19 economic crisis has exposed the fragility of existing international trade structures, where countries are highly dependent on one another. These interdependencies arise from the global value chains – production broken into multiple stages and completed in different countries – accounting for 70% of current global trade.
World Bank Group Increases Support for Climate Action in Developing Countries (World Bank)
The World Bank Group today announced its new Climate Change Action Plan that aims to deliver record levels of climate finance to developing countries, reduce emissions, strengthen adaptation, and align financial flows with the goals of the Paris Agreement. The Action Plan for 2021-25 broadens World Bank Group efforts from investing in “green” projects to helping countries fully integrate their climate and development goals. The Plan also comes as countries seek sustainable pathways out of the disruption caused by the COVID-19 pandemic. “Our new Action Plan will identify and prioritize action on the most impactful mitigation and adaptation opportunities, and we will drive our climate finance accordingly,” said World Bank Group President David Malpass. “We will be delivering climate finance at record levels and seeking solutions that achieve the most impact.”
Foundations announce $1 billion fund for renewables in emerging economies as over 45 ministers review plans to achieve clean, affordable energy for all (United Nations)
Efforts to accelerate global actions to ensure that all people have access to clean energy and electricity received a lift today as The IKEA Foundation and The Rockefeller Foundation announced plans to launch a $1 billion fund to boost access to renewable energy in developing countries, and a consortium of organizations led by Kenya, Malawi and the Netherlands advanced a call to action for clean cooking. At the same session, Google reaffirmed its commitment to source carbon-free energy for all of its operations in all places, at all times, by 2030, setting a high bar for other tech companies. These announcements came today as the UN opened a week of Ministerial Thematic Forums on energy. The Forums, running from 21 to 25 June, are part of an effort to engage governments, businesses and financial institutions to develop “energy compacts” that spell out plans to ensure universal access to clean energy and a pathway to net-zero emissions.
Launch of Green Recovery Plan for small firms to face climate crisis (ITC)
The latest SME Competitiveness Outlook 2021, released today, focuses on empowering small businesses to rebuild from the pandemic in a way that prepares them to face the looming climate crisis. ‘Going green is both a survival imperative and a business opportunity,’ said ITC Executive Director Pamela Coke-Hamilton. ‘Small businesses must rebuild in a way that prepares them for future shocks and strengthens their competitive position.’ Small businesses make up more than 50% of all jobs and emissions worldwide, so their level of resilience and sustainability matters.
New global costs report confirms new renewables are undercutting existing coal (Engineering News)
The cost of electricity from new solar and wind plants is increasingly undercutting the operating costs alone of existing coal‑fired power plants and strengthening the case for their early retirement, a newly released International Renewable Energy Agency (Irena) report confirms. Published on June 22, the ‘Renewable Power Generation Costs 2020’ report states that over 800 GW of existing coal capacity already costs more than new solar photovoltaic (PV) or onshore wind projects commissioned in 2021. It adds that retiring these plants would reduce power generation costs by up to $32.3-billion yearly and avoid around three-gigatonnes of yearly carbon dioxide emissions. “With new renewables, energy efficiency and, in some regions, natural gas all reducing existing coal‑fired power plants’ capacity factors, these higher costs look set to be the norm,” the reports asserts.
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National
Lemon export protocol to boost investment, create jobs (Engineering News)
The recent signing of a revised citrus protocol between South Africa and China by Agriculture, Land Affairs and Rural Development Minister Thoko Didiza will secure R325-million in new export revenue and create 800 jobs in the industry, the Citrus Growers’ Association of South Africa (CGASA) says. With local lemon production expected to grow by 175 000 t by 2024, the finalisation of the revised protocol means China will become a critical new market for growth.
Ports Authority announced as independent subsidiary of Transnet (SAnews)
As government continues to implement structural economic reforms to accelerate economic recovery, President Cyril Ramaphosa announced the establishment of the Transnet National Ports Authority as an independent subsidiary of Transnet. The Board of Transnet and the new management team have done well to stabilise Transnet, develop a world-class strategy and undertake actions to promote investment and improve performance at the ports. “This is an important part of the Economic Reconstruction and Recovery Plan that we developed together with our social partners in business, labour and the community. The weak performance of our ports is the result of structural challenges in our logistics system and operational inefficiencies. “It is for this reason that we are today announcing the establishment of the Transnet National Ports Authority as an independent subsidiary of Transnet, in line with the National Ports Act of 2005.
Macro-economic study, sectoral road maps required for SA’s NEV transition (Engineering News)
Government’s efforts to advance the use and production of new-energy vehicles (NEVs) in South Africa must include a macro-economic impact study, as well as sectoral road maps detailing how and when electro-mobility should be achieved. This is according to Intelligent Transport Society South Africa (ITSSA) CEO Dr Paul Vorster and Automotive Investment Holdings (AIH) deputy chairperson Johan Cloete.
KRA to auction overstayed cargo at Mombasa port (Business Daily)
The Kenya Revenue Authority (KRA) will auction more than 200 motor vehicles, among other assorted goods, whose owners have failed to pay tax .The taxman set the auction for this week and interested bidders have been invited to view the goods with full details being listed in a public notice published in a gazette notice dated June 21. In the notice, the taxman says it intends to auction different types of cars and imported goods which have overstayed in different customs warehouses in the port city. According to the notice, the auction is scheduled for Wednesday and Thursday this week. Importers of the goods have been given until the auction day to pay duty, ranging from Sh200,000 to millions of shillings.
Dar port authorities ban storage of imported explosives in harbour area (The East African)
Tanzania’s largest port, Dar es Salaam, has issued a notice to its users that forbids storage of explosive consignments at its complex, citing safety reasons. The ex post facto announcement by its Port Director issued on Monday and seen by The EastAfrican says effective last January explosives among other “dangerous goods” will have to be moved out of the port area faster after their onshore handling. “All cargo which have been classified according to International Maritime Dangerous Goods (IMDG) Code as classes… will not be allowed to be stored into the Port premises and therefore will be treated under direct delivery procedures in order to safeguard the people, port infrastructures, properties and environment,” the statement partly reads.
Diaspora remittances hit record Sh34 billion in May (Business Daily)
Kenyans in foreign countries sent home a monthly record Sh34 billion ($315.8 million) in May, a 22 percent jump from the corresponding month last year, supported by higher flows from the US and Saudi Arabia. This is the first time diaspora remittances have crossed the $300 million mark, continuing to defy expectations of a dip due to the Covid-19 pandemic. Inflows from Asia jumped 12 percent month-on-month to Sh3.5 billion ($32.6 million), while remittances from North America – which includes the US, Canada and Bahamas – grew six per cent to Sh20.8 billion ($193.5 million).Remittance from European countries grew three per cent to Sh7 billion ($65.8 million) while Africa stayed flat at Sh1.4 billion ($13.5 million).
Lamu port: Game-changer for East Africa’s prosperity (Business Daily)
The President commissioned the new Port of Lamu on May 20 this year. Ever since the colonial era, Kenya has been dependent on one major Port (Mombasa) and transport corridor (the Mombasa–Kisumu-Busia highway and railway, also referred to as the Northern Corridor). Indeed, Kenya’s population settled roughly along this corridor, about 100 miles North and South of it. Both have withstood many challenges over time. The most pressing one from a geo-political point of view has been the capacity of the Port of Mombasa and the Northern Corridor to satisfy the shipping, maritime and transport needs of Greater East Africa. With the growth of trade ties with neighbouring land-linked countries like Uganda, Ethiopia, South Sudan and others in the region, and growth in population here in Kenya and beyond, the Northern Corridor has been stretched to its limits, negatively impacting Kenya’s competitiveness to serve itself, East Africa and our neighbours in the region. It is this realisation that necessitated new thinking around the possibility and viability of a new transport corridor that would once again cement Kenya’s position as the entry point into Greater Eastern Africa.
Ministry of Trade opens online platform for essential service certificates applications (Namibia Economist)
The Ministry of Industrialisation and Trade has announced that the online platform to apply for Essential Service Certificate is now active, for all essential service providers. The ministry in an issued statement on Monday encouraged new and existing essential service providers to apply immediately by following the link www.namessentialservice.com. “However, do note that new users should sign up first by following an easy step registration process, while, existing users have to use their old credentials to access the platform to reapply,” they added.
Dar, Beijing boost ties (Dailynews)
President Samia Suluhu Hassan and Chinese President Xi Jinping yesterday agreed to expand Sino-Tanzania cooperation in the fields of agriculture, transport, telecommunications, tourism, energy and investment. The two leaders also expressed willingness to actively promote bilateral ties under the Belt and Road Initiative (BRI). “Tanzania values its friendship with China and appreciates China’s support and help over a long period of time,” she said, assuring the country’s commitment to continue strengthening further the existing bilateral ties. “China is willing to strengthen political mutual trust with Tanzania and jointly safeguard the legitimate rights and interests of developing countries,” he said.
Govt scouts for high potential AfCFTA products to support (GhanaWeb)
Deputy Minister for Trade and Industry, Herbert Krapa, has said that the nation is scouting for products and companies with high export potential to support them in taking advantage of the Africa Continental Free Trade Area (AfCFTA) to make Ghana competitive in Africa. According to him, there are constant efforts being advanced by the ministry toward positioning the country to benefit from the AfCFTA, and government is keen on supporting viable projects. Answering a question from James Agalga during his vetting in parliament, Mr. Krapa noted that the nation is not satisfied with only hosting the AfCFTA secretariat, but is also bent on taking advantage of it to become a commercial hub on the continent.
GIPC organises Ghana Diaspora Investment Summit (BusinessGhana)
The Ghana Investment Promotion Centre (GIPC) will on June 23rd and 24th, 2021, hold the maiden Ghana Diaspora Investment Summit at the Kempinski Gold Coast City Hotel in Accra. The two-day event, on the theme, “The New Normal, Leveraging Diaspora Investments to build back better” will create an opportunity to foster partnerships between domestic and diaspora investors, and showcase Ghana as the destination of choice for doing business, as well as to spur the inflow of Diaspora Direct Investments. The Summit is consistent with the recent, “Beyond the Return” initiative, which is a follow-up to the “Year of Return” campaign that was launched in 2019. It is expected to engender a more constructive interaction with Africans in the diaspora and all people of African descent in areas such as trade and investment, as well as skills and knowledge development.
Zambia, Zimbabwe Develops Implementation Plan for the Joint Industrialization Programme (COMESA)
The Zambia-Zimbabwe Technical Working Group (TWG) on the Joint Industrialization programme has agreed on an action matrix to guide the implementation of the programme and provide a timeframe for achieving the set targets. The programme is intended to promote industrial cooperation and increase competitiveness of goods produced within the two countries. “In COMESA, we take this programme seriously as it will set the pace towards achieving the aspirations of the region as we regard it as a Flagship Project,” he said. The Programme is also a tool for the implementation of the COMESA Industrial Strategy whose vision is to have a globally competitive environmental-friendly, diversified industrial sector which is based on innovation and manufacturing as tools for transforming regional resources into sustainable wealth and prosperity for all.
Joint statement to the press by the Republic of Kenya and the European Union (European Council)
The Strategic Dialogue between the Republic of Kenya and the European Union was launched on the occasion of the meeting between H.E. Uhuru Kenyatta, C.G.H., President of the Republic of Kenya, and H.E. Charles Michel, President of the European Council, held on 21 June 2021 in Brussels. The Strategic Dialogue underlines the solid bilateral and multilateral partnership between the European Union and Kenya and interest to mutually cooperate. Kenya is a strong democratic partner in the East African region and in the Horn of Africa, and has a potential for enhancing regional stability and for a constructive role in peace and security. Moreover, Kenya is a key player internationally at the United Nations, the African Union and other fora. Kenya and the European Union have sustained a consistent and long-term partnership over many years, and share multilateral and global aims such as combating climate change, and fostering peace and security.
EU and Republic of Angola launch negotiations for a first-ever Sustainable Investment Facilitation Agreement (European Commission)
The Commission has kicked off a first round of negotiations with the Republic of Angola for a Sustainable Investment Facilitation Agreement. The negotiations are taking place via videoconference today, 22 June 2021. Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “Launching negotiations with Angola shows that we are deepening our engagement with African countries – a key pledge of the new EU trade strategy launched in February 2021. Africa is our nearest neighbour and we should develop our partnership of equals. This new form of investment agreement will promote sustainable and responsible investment, which will diversify and improve the resilience of our economies, and support our climate and energy transformations. I also welcome Angola’s interest in joining the Economic Partnership Agreement between the EU and the Southern African Development Community. Building closer ties between us will support our mutual stability and prosperity.” This is the first-ever bilateral agreement on investment facilitation that the EU is negotiating.
Tunisia: Trade deficit widens by 378.2 million dinars in May (INS) (TAP)
The trade deficit widened by 378.2 million dinars to 1,554.1 million in May 2021, from 1,175.9 MD in April 2021, reads the monthly note on foreign trade of current prices, published by the National Institute of Statistics (INS). Exports went down 9.5%. This decline is the largest since the beginning of the year. It has affected all sectors except the agriculture and agro-food industry which posted a 9.4% rise. Regarding imports, they stagnated for the second consecutive month. The 9.0% increase under the offshore regime is offset by a decrease under the general regime (-4.4%). According to the INS, this stability in imports is due to a dynamic in the supplies of raw materials and semi-finished products (+ 8.9%) as well as of capital goods products ( + 10.8%) offset by a sharp drop in purchases of food products (-26.4%) and energy products (-11.7%).
Egyptian Trade Ministry: Non-oil exports up to $12.323 in 5 months (State Information Service)
Trade and Industry Minister Nevine Gamae has said that Egypt’s non-oil exports increased by 19 percent during the first five months of 2021. In a statement on Sunday 20/6/2021, Gamae put the value of non-oil exports at 12.323 billion dollars up from about 10.375 billion during the same period in 2020. The government is credited for that, said the minister, pointing to efforts to support the production and export sectors during the coronavirus pandemic. She added that the economic reform program is the main pillar of achieving positive growth rates, especially where production projects are concerned. This translated into rises in exports and jobs, Gamae noted.
The World Bank’s Board of Executive Directors approved on Friday $10 million in International Development Association (IDA) funding to scale-up and expand the activities to strengthen State-Owned Enterprises (SOEs) related fiscal management in Cabo Verde. According to Eneida Fernandes, World Bank Resident Representative in Cabo Verde, “The crisis negatively impacted the financial performance of an already weak SOE sector. It is crucial to deepen support to the sector to reduce fiscal risks and maintain debt sustainability that is significantly challenged and support post-pandemic economic recovery by enhancing competitiveness and improving service delivery. The 23 SOEs in Cabo Verde are mandated to provide essential public services, including economically strategic areas such as transport, electricity, housing, and financial services”.
Africa
African Development Bank Group president Dr Akinwumi A. Adesina has again urged regional leaders to focus on vaccine production and access for the African continent as the Covid-19 epidemic continues to take lives and hurt economies and livelihoods. Adesina addressed leaders of the Economic Community of West African States (ECOWAS) at a special summit held on Saturday, just days before the Bank Group’s 2021 Annual meetings, scheduled for 23-25 June. “Africa needs solutions to help it navigate through the very challenging times posed by the Covid-19 pandemic,” Adesina said. “But the rebound will depend on access to vaccines.” The African Development Bank will support the continent as part of the vaccines plan of the African Union. It is planning to commit $3 billion to develop the pharmaceutical industry in Africa, Adesina said. “Africa should not be begging for vaccines,” Adesina said. “Africa should be producing vaccines,” he stressed.
The 17th Meeting of the East African Community Sectoral Council on Transport, Communication and Meteorology (TCM) is currently underway in Dar es Salaam, Tanzania. Among the items on the Agenda of the TCM are the consideration of the programmes and projects in: the Roads Sub-Sector; the Railways Sub-sector; the Civil Aviation Sub-sector; the Maritime and Integrated Corridor Development Sub-sector; the Meteorology Sub-sector, and; the Communications Sub-sector. Also due for consideration by the meeting are updates on: the Tripartite Transport and Transit Facilitation Programme (TTTFP); the Programme for Infrastructure Development in Africa (PIDA); the Heads of State Retreat on Infrastructure Development and Financing; the Civil Aviation Safety and Security Oversight Agency (CASSOA); the Lake Victoria Basin Commission (LVBC), and; the Implementation of Agreements and MoUs between EAC and Cooperating Partners.
Southern African Development Community (SADC) Ministers responsible for Environment, Natural Resources and Tourism held a virtual meeting on 18 June 2021 to review progress in the implementation of sectoral programmes, strategies and projects under the Regional Indicative Strategic Development Plan (RISDP) 2020-2030. They approved the Revised SADC Climate Change Strategy and Action Plan to fully align it with the Paris Agreement, Sustainable Development Goals (SDGs) and the African Union Agenda 2063. They urged Member States to use the harmonised continental tool platform in reporting their National Determined Contributions implementation to comply with the Paris Agreement. The Ministers approved the costed action plan and proposed human resources capacity, and resource mobilisation strategy to facilitate and fast track the implementation of the SADC Tourism Programme 2020-2030 to boost the regional economic growth which is heavily affected by the impact of COVID-19.
Momentum gathers on ground-breaking African driven climate research priorities (UNECA)
In a first of its kind end-of-research workshop, some 21 post-doctoral researchers drawn from 13 African countries namely Benin, Cameroon, Cote D’Ivoire, Ethiopia, Ghana, Kenya, Madagascar, Namibia, Uganda, Senegal, South Africa, Tanzanian and Zimbabwe, will this coming week present their climate change and development findings. The intensity and frequency of disruptions in natural and socioeconomic systems caused by climate change have placed a heavy toll on African nations forcing stakeholders to plan necessary interventions to forestall risks. In this regard, the 21 researchers embarked on 18-month research in late 2019 to understand better these dynamics and try to find some answers. In their study they covered key areas of improving early warning systems, weather and public health, climate resilience for African islands, floods, drought mitigation and adaptation.
Africa Renewable Energy Fund II secures €130 million first close with SEFA and CTF investments (AfDB)
The Africa Renewable Energy Fund II has achieved its first close at €130 million, following a joint investment of €17.5 million from The Sustainable Energy Fund for Africa and the Climate Technology Fund through the African Development Bank. AREF II, a successor to the original Fund, is a 10-year closed-ended renewable energy Private Equity Fund with a $300 million target capitalization. The Africa Renewable Energy Fund II, managed by Berkeley Energy, invests in early-stage renewable energy projects, thereby not only de-risking the most uncertain phase of power projects, but also promoting increased green baseload in Africa’s generation mix. The Sustainable Energy Fund for Africa and the Climate Technology Fund will each contribute roughly €8.7 million to mobilize private-sector investment into Africa’s renewable energy sector.
Focus Report: How can Africa’s leading sugar producers increase output? (Oxford Business Group)
The African continent accounts for around 6% of global sugar output, half of which is concentrated in COMESA countries – a figure that is set to expand to 8% by 2029. While local production takes place on a relatively small scale, countries in the region are among the world’s largest net exporters. Looking ahead, the industry’s continued development will be supported by the Africa Continental Free Trade Area, which will help facilitate continental trade by reducing or eliminating tariff and non-tariff barriers. However, establishing supportive and sustainable ecosystems and regulatory frameworks will also be necessary to improve competitiveness and boost yields. The Sugar in Africa Focus Report was produced in partnership with the International Sugar Organisation, the African Sugar Task Force, the Royal Eswatini Sugar Corporation, the Zimbabwe Sugar Association and the Moroccan sugar company, Cosumar.
Charting a new course in US-Africa relations: The importance of learning from others’ mistakes (Brookings)
This is an exciting time for Africa. In early January 2021, the first shipments traded under Africa Continental Free Trade Area (AfCFTA) preferences left Ghana bound for Guinea and South Africa. Since its signing in March 2018, the rapid implementation of the agreement raises hopes of a more inclusive and prosperous future for the continent. How global trading partners support this project could set the tone of relationships for decades to come.
The Biden administration is applying a healthy dose of fresh thinking to a number of Africa-relevant policy areas, from global taxation to intellectual property. In terms of trade, United States Trade Representative Ambassador Katherine Tai has already signaled a welcome new direction, stressing multilateral solutions over bilateral ones and emphasizing the importance of incorporating climate action in discussions on trade policy.
Global
WTO head says South Africa, Senegal, Rwanda and Nigeria considered as vaccine production hubs (Reuters)
Africa is working with the European Union and other partners to help create regional vaccine manufacturing hubs in South Africa, Senegal and Rwanda, with Nigeria under consideration, World Trade Organization Director-General Ngozi Okonjo-Iweala said. “We have now seen that over-centralization of vaccine production capacity is incompatible with equitable access in a crisis situation,” Okonjo-Iweala said on Monday during a virtual meeting. “Regional production hubs, in tandem with open supply chains, offer a more promising path to preparedness for future health crisis.”
New tech hub aims to boost access to mRNA COVID-19 vaccines in Africa (Devex)
The first “technology transfer hub” for messenger RNA COVID-19 vaccines will be established in South Africa to scale up production of and access to doses across the African continent, which has vaccinated less than 1% of its population. The new hub, which the World Health Organization announced on Monday, will provide training on mRNA technologies for manufacturers from low- and middle-income countries and license them to move forward with local production. But the hub still needs to secure agreements with mRNA vaccine manufacturers, and these efforts are not a substitute for a waiver of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS, according to health officials. “We just cannot continue to rely on vaccines that are made outside of Africa, because they never come. They never arrive on time, and people continue to die,” said South African President Cyril Ramaphosa during a press conference.
Pandemic ‘rolled back’ sustainable development funding for weak economies: UNCTAD (UN News)
According to UNCTAD’s World Investment Report 2021, total foreign direct investment also dropped by more than a third globally, to $1 trillion (from $1.5 trillion in 2019), threatening progress on sustainable development. This level was last seen in 2005 and it is an urgent problem because foreign direct investment is vital to promoting sustainable development in the world’s poorest regions, said Isabelle Durant, Acting Secretary-General of UNCTAD. “The (COVID-19) crisis has had an immense negative impact on the most productive types of investment, namely, greenfield investment in industrial and infrastructure projects,” she said. “This means that international production, an engine of global economic growth and development, has been seriously affected.”
Government support to agriculture is low on innovation, high on distortions (OECD)
Agricultural support has continued to grow worldwide in recent years, but is often failing to meet its stated aims of improving food security, livelihoods and environmental sustainability, according to a new report from the OECD. Agricultural Policy Monitoring and Evaluation shows that the 54 countries monitored - including all OECD and EU economies, plus 11 key emerging economies – provided on average USD 720 billion of support to agriculture annually over the 2018-20 period. Consumers paid for more than one-third of the annual support, or USD 272 billion, through higher prices, in the form of market price support, while taxpayers paid for the remaining USD 447 billion, through budgetary transfers.
A year of digitalization for women entrepreneurs? (Trade 4 Dev News)
Business and trade rely on a vast ecosystem with various stakeholders. For women traders and entrepreneurs in LDCs, this includes participants along the value chain such as suppliers of raw materials, cooperatives, transporters, warehouse managers and airlines, to mention a few. Elements such as clear customs procedures, established banking systems and good internet connectivity are equally vital. The COVID-19 pandemic disrupted these systems and stakeholders. Women entrepreneurs had to creatively devise means to continue doing business while navigating the complexities that arose from closed borders and lockdown orders. Traditional models of doing business involving physical movement of persons to facilitate transactions were no longer viable, and e-commerce and digital trade were catapulted to the fore as the most viable means of trade.
5 Export Strategies For Small Businesses (Alibaba News)
As we know, small businesses are part of the backbone of economies around the world. Not only are they a major source of job creation globally, but also they are an integral part of global supply chains, as both buyers and suppliers. For most companies around the world, winning trade overseas is a key way to kickstart growth and prosper in the marketplace. Small businesses that export successfully can also expect to grow their revenue and profitability by expanding into new markets. But how can small businesses break into and thrive in international markets? Given the various requirements, companies need to satisfy to ship their products abroad, this sort of expansion can often be a complex and time-consuming process. To answer the question above, this article explains why small businesses should start exporting and discuss some key export strategies that small businesses can pursue.
Related News
COVID-19 slashes foreign direct investment in Africa by 16%
The continent’s commodity-dependent countries have been affected more severely than non-resource-based economies
The COVID-19 pandemic had a significant impact on foreign direct investment (FDI) in Africa as flows to the continent declined by 16% in 2020 to $40 billion, from $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, published on 21 June.
The report shows that commodity-dependent countries were affected more severely than non-resource-based economies. “The challenging environment affected all aspects of foreign investment,” said UNCTAD’s director of investment and enterprise, James Zhan.
Greenfield project announcements, a measure of investor sentiment and future FDI trends, dropped by 62% to $29 billion, from $77 billion in 2019.
Cross-border mergers and acquisitions (M&As), fell by 45% to $3.2 billion, from $5.8 billion in 2019. International project finance announcements, especially relevant for large infrastructure projects, plummeted by 74% to $32 billion.
By region
North Africa
FDI inflows to North Africa contracted by 25% to $10 billion, down from $14 billion in 2019, with major declines in most countries. Egypt remained the largest recipient in Africa, albeit with a significant reduction (-35%) to $5.9 billion in 2020.
Sub-Saharan and Southern Africa
FDI inflows to sub-Saharan Africa decreased by 12% to $30 billion, with investment growing in only a few countries. FDI to Southern Africa decreased by 16% to $4.3 billion even as repatriation of capital by multinational enterprises (MNEs) in Angola slowed down. Mozambique and South Africa accounted for most inflows in Southern Africa.
West Africa
Despite the slight increase in inflows to Nigeria from $2.3 billion in 2019 to $2.4 billion, FDI to West Africa decreased by 18% to $9.8 billion in 2020. Senegal was also among the few economies on the continent that received higher inflows in 2020, with a 39% increase to $1.5 billion, due to investments in energy.
Central Africa
Central Africa was the only region in Africa that registered an increase in FDI in 2020, with inflows of $9.2 billion, compared with $8.9 billion in 2019. Increasing inflows in the Republic of Congo (by 19% to $4.0 billion) helped prevent a decline.
East Africa
FDI to East Africa dropped to $6.5 billion, a 16% decline from 2019. Ethiopia, despite registering a 6% reduction in inflows to $2.4 billion, accounted for more than one third of foreign investment to East Africa.
Investment in SDGs also fell except in renewable energy
Foreign investment in Africa directed towards sectors related to the Sustainable Development Goals (SDGs) fell considerably in nearly all sectors in 2020. Renewable energy was an outlier, with international project finance deals increasing by 28% to $11 billion, from $9.1 billion in 2019.
Outflows also declined
FDI outflows from Africa fell by two thirds in 2020 to $1.6 billion, from $4.9 billion in 2019. The highest outflows were from Togo ($931 million). Investment from that country was largely directed to other African countries. Outflows from Ghana ($542 million) and Morocco ($492 million) were also significant, although they dropped by 8% and 45% respectively compared with 2019.
Looking ahead
Although UNCTAD forecasts FDI in Africa to grow in 2021, a tepid economic recovery and slow vaccine roll-out programme threaten the scale of the investment recovery. FDI to the continent is projected to grow by only 5% in 2021, lower than both the global and developing country projected growth rates.
Some mitigating factors even as headwinds persist
“Despite projections for only a weak investment recovery in 2021, there are some mitigating factors that signal FDI picking up momentum by 2022 and returning to pre-pandemic levels,” Mr. Zhan said.
First, an expected rise in demand for commodities, especially in the energy sector as the global economy picks up steam in the second half of 2021, will result in higher resource-seeking investment.
Second, the reconfiguration of global value chains (GVCs) and the increasing importance of regional value chains (RVCs) will open new opportunities for African countries.
Third, the implementation of some key projects announced in 2021 and earlier, including those that were delayed due to the pandemic, may support FDI.
Finally, the impending finalization of the African Continental Free Trade Area (AfCFTA) agreement’s Sustainable Investment Protocol could give impetus to intra-continental investment.
Africa: FDI flows, top 5 host economies, 2020 (value and change)
Source: UNCTAD, World Investment Report 2021.
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There is a great need to get more young people participating in the agriculture and agroprocessing economy. The sentiment came out during of the “Youth In Manufacturing Webinar hosted by the Department of Trade, Industry and Competition (the dtic) in partnership with Proudly South Africa. The dialogue was part of the “Youth In Industries” series and forms part of the dtic’s youth month activities. It brings together private and government institutions current and potential entrepreneurs to accelerate and advance youth industrialists in the specified sectors.
Appeal for halt to further increases in poultry tariffs (IOL)
Emerging Black Importers and Exporters of South Africa (EBieSA) last week appealed to the Minister of Trade, Industry and Competition to halt further reviews of the import tariffs for poultry because the increases last year distorted the market. This follows an ongoing review of the tariff structure, which was last upgraded in March last year, which resulted in increases from 37 percent to 62 percent on frozen bone-in chicken portions and increases on frozen boneless portions from 12 percent to 42 percent.
Deputy Minister Encourages Young People to Take Interest in Consumer Rights (the dtic)
The Deputy Minister of the Department of Trade, Industry and Competition, Ms Nomalungelo Gina reminded students from the University of Cape Town-Faculty of Law that they need to take interest in consumer rights. Speaking at a virtual consumer education webinar hosted by the National Consumer Commission (NCC) in partnership with the University of Cape Town and the National Credit Regulator (NCR), Gina said consumer protection is a specific challenge in South Africa, where many local consumers are vulnerable due to lack of financial literacy. Gina said pyramid and related schemes are giving consumer protection bodies’ sleepless nights as they mushroom on a daily basis masquerading as investment opportunities. “It is imperative for every consumer to understand the Consumer Protection Act (CPA) and be able to distinguish between a pyramid scheme and an investment opportunity,” she said.
Building a digital economy (SAnews)
The Department of Communications and Digital Technologies has embarked on a process to develop Data and Cloud Policy as one of the enablers of the digital economy. Addressing the virtual colloquium on the Draft Data and Cloud Policy on Friday, Minister of Communication and Digital Technologies, Stella Ndabeni-Abrahams, emphasised the importance of building a digital economy, as it presents opportunities to create jobs. “The digital economy is driven by digitalisation, which is the use of digital technologies and digitised data to impact how work gets done, transform how customers and companies engage and interact, and create new (digital) revenue streams.”
Uganda’s export earnings increase to Shs1.5 trillion (Daily Monitor)
The performance of the economy report May 2021 by the Ministry of Finance, Planning, and Economic Development released on June 18 2021, shows Uganda’s Merchandise export receipts more than doubled on an annual basis to $426.56 million (Shs1.5 trillion). Increased earnings from commodity exports always shield the local currency from severe depreciation against the US dollars and other currencies as well. The report reveals that export receipts rose by 106 percent representing $219.51million (Shs776.079 billion) from $207.05 million (Shs732.009 billion) in April 2020 to $426.56 million (Shs1.507 trillion) in April 2021. The value of merchandise imports registered a third consecutive monthly increase in April 2021. The Ministry of Finance, said merchandise worth $695.81 million (Shs2.461trillion) were imported in April 2021, registering an increment of 5.3 percent from the previous month.
Hope for private sector as government takes measures (The Citizen)
The sixth-phase government of President Samia Suluhu Hassan has assured the private sector that the state will not be competing in doing business. Instead, it expressed its commitment to working with private sector operators in promoting the development of industries to widen its tax base. Prof Mkumbo outlined the six priorities of the government - which he called “the position of the sixth-phase government” under the direction of President Hassan in promoting the private sector - and the issue of differentiating trade with the government was among them.
Tanzania market ripe for Zimbabwean products (Chronicle)
Zimbabwean producers should tap into the Tanzania market as part of their regional export growth strategy to enhance the country’s gains under the African Continental Free Trade Area (AfCFTA). Following the operationalisation of the AfCFTA early this year, the country through the trade development and promotion agency, ZimTrade, is increasing its engagement with regional markets by exploring opportunities for local products. Trading under the historic trade regime began on January 1, this year and is seen as a significant stride towards continental economic integration. Last Thursday, ZimTrade hosted a market intelligence information dissemination seminar focusing on Tanzania market to prepare and equip local producers with knowledge regarding the vast export opportunities in that country.
Grab market opportunities in Egypt, traders advised (The Citizen)
Tanzanian businesses have been urged to strategically engage and fully exploit the relatively huge potential in the Egyptian market in an effort to fill the trade gap between the two countries that currently stands at $31 million in favour of the north African nation. Speaking on this yesterday, the Tanzania Trade Development Authority (TanTrade) director general, Edwin Rutageruka, said that, although the value of exports from Tanzania to Egypt has increased from $1 million in 2016 to $3 million in 2020, fluctuations continue to exist, affecting the volume of trade between the two countries.
FG Urges Shippers to Be Involved in Policy, Trade Negotiations (THISDAYLIVE)
The federal government has enjoined shippers nationwide to unite and take part in policy formulation and trade negotiation in Nigeria as well as globally as key players in the nation’s economy. The Executive Secretary of Nigerian Shippers Council (NSC), Hassan Bello, stated this at the Election and Inauguration of the National Shippers Association of Nigeria (NASAN) in Lagos. He said: “There are many shippers, who are exporting now, and one of the problems is access to the port, we have cargoes that spend 20-days and 24 days before they gain access into the port, we have struggled so much to ensure that this is not done. We need exporters who are shippers to also have free access to the port, they should have access to information about the market, and they should also have access to finance. The same situation is with importers, there are issues at the port, cargoes have 21-days dwell time, meanwhile it is 7-days at our competing neighboring ports.”
Ghana sets three-billion-dollar FDI target for 2021 (GhanaWeb)
The Ghana Investment Promotion Centre (GIPC) has set a target to attract three billion dollars this year in Foreign Direct Investment (FDI) into the country. The FDI is expected to boost investments in agribusiness, pharmaceutical, manufacturing and industry as well as other sectors of the economy to create jobs and spur socio-economic development. Mr Reginald Yofi Grant, the CEO of GIPC, who announced this at a press briefing in Accra on Sunday, said the Centre had so far raised US$780 million.
Morocco Commits to Development of Least Developed Countries in Africa (Morocco World News)
Morocco’s Foreign Minister Bourita released on Friday a statement that emphasized the country’s commitment to helping Least Developed Countries (LDCs) in Africa as the central tenet to its African foreign policy plans. Bourita gave the statement during a meeting of the UN’s General Assembly of the Economic and Social Council (ECOSOC). The Moroccan minister stated that Morocco’s commitments had “a new concrete translation in the context of the health crisis.” Africa has struggled during the midst of COVID, and many countries on the continent still remain among the lowest in the world in terms of vaccine distribution.
Liberia: Financing to Support Reforms for Inclusive Growth and Development (World Bank)
The World Bank Board today approved the second in a series of three single-tranche Inclusive Growth Development Policy Operations (IGDPO) to support key reforms for enabling inclusive growth in Liberia. The financing, amounting to $40 million, comes in the form of an International Development Association (IDA) concessional credit of $20 million and an IDA grant of $20 million to be disbursed as budget support. The underlying reforms being supported seek to remove distortions in selected sectors, strengthen public sector transparency, and promote economic and social inclusion. “The continued implementation of critical policy reforms in sectors such as energy and agriculture helps create a conducive environment for transformative investments being made in these sectors by the Government, with support from development partners,” said Dr. Khwima Nthara, World Bank Liberia Country Manager.
Africa
Virtual Meeting of AU’s Ministers Responsible for Trade and the WTO (Republic of Mauritius)
A Virtual Meeting of the African Union’s (AU) Ministers Responsible for Trade and the World Trade Organization’s (WTO) Director General, Dr Ngozi Okonjo-Iweala, was held, yesterday, under the chair of the Minister of Land Transport and Light Rail, Minister of Foreign Affairs, Regional Integration and International Trade, Mr Alan Ganoo, in his capacity as Coordinator of the African Group. The meeting aimed at reaching an agreement and adopting decisions on a few select issues that are faced regularly in sectors such as the fisheries sector, Micro, Small and Medium Enterprises (MSMEs) and women empowerment, and bring forth solutions.
AfCFTA is developing a Pan-African Payments and Settlement platform (BusinessGhana)
The African Continental Free Trade Area (AfCFTA) Secretariat is developing a Pan-African Payments and Settlement (PAPSS) platform, in collaboration with the Afreximbank to enhance cross border payments. Mr Wamkele Mene, Secretary-General, Africa Continental Free Trade Area (AfCFTA), said the PAPSS would allow African businesses to make cross border payments for intra-Africa trade in national currencies, thereby saving the continent an estimated five billion dollars in transfer charges that flow out of the continent annually. Mr Mene made the disclosure at an honorific lecture in honour of Daniel M.C. Korley at the University of Professional Studies, Accra (UPSA) in Accra on the theme, “Creating the Next Generation of Entrepreneurs Through AfCFTA”. Mr Mene, who spoke on the topic, “The AfCFTA and the New Age of African Enterprise,” said as provided for by the AfCFTA Agreement, the Secretariat had also developed a platform for reporting non-tariff barriers, which disproportionately impacted SMEs due to their limited resources and access to information.
Continental Free Trade agreement will unlock auto opportunities in Africa (Moneyweb)
“We have a very unique opportunity in Africa to, for the first time since the end of colonialism, accelerate industrial development, leveraging on the legal framework that the AfCFTA has provided,” Wamkele Mene, secretary-general of the AfCFTA secretariat said during a webinar on the agreement and the auto sector. Alec Erwin, former South African deputy minister of finance and minister of trade and industry and public enterprises, who is now a policy expert to the African Association of Automotive Manufacturers (AAAM), said the free trade agreement is a fundamental breakthrough and a unique opportunity for the automotive sector in Africa. “The finalisation of the AfCFTA agreement and the rules of origin with respect to automotive are vital to the realisation of the AAAM’s vision of building a successful automotive ecosystem that will lead to a sustainable industry of scale that creates significant jobs, while assisting in the industrialisation of the automotive sector in Africa.”
WISTA to Sensitise Women on AfCFTA (THISDAY Newspapers)
The Women’s International Shipping and Trading Association (WISTA) Nigeria over the weekend announced that it has concluded arrangements to organise its 2021 business luncheon aimed at encouraging women’s participation in the African Continental Free Trade Agreement (AfCFTA) through the maritime sector. The one-day conference, WISTA said, would be part of the group’s efforts geared at increasing and developing shipping policy that would deepen women’s participation in the maritime sector with the view of empowering them with adequate manpower, policy framework and connections. Highlighting the significance of the forthcoming conference at a media briefing in Lagos, the President, WISTA Nigeria, Mrs. Eunice Ezeoke, said the organisation seeks to encourage women to participate in trade opportunities within the sector.
Tackling illicit financial flows, a matter of survival for Africa’s development (Africa Renewal)
Stemming the flow of money-laundering linked to terrorism, organized crime, corruption and other crimes would make a significant contribution to economic growth, the FACTI report says. It further acknowledges that African countries are increasing their ability to trace and recover laundered assets from human trafficking, corruption and wildlife crime, as well as other types of crime, with the forfeited assets being used to support development, including COVID-19 relief efforts. However, the report notes that Africa still faces a multitude of challenges in repatriating stolen assets, with a wide gap between the levels of frozen or confiscated assets and those returned. The FACTI report adds that many practitioners lack the recovery expertise to enforce, prosecute and confiscate assets. In line with the AU Common African Position on Asset Recovery, effective, accountable and transparent institutions are required to effectively address corruption and accelerate the repatriation of assets stolen from Africa.
Corridor efficiency critical to successful intra-African trade (Namibian)
The extent and speed at which trading partners exchange goods is determined by the efficiency of their cross-border transport systems, a transport expert says. Therefore, if Africa wants to boost intra-African trade under the African Continental Free Trade Area (AfCFTA) agreement, corridors and railways have to function optimally. This is according to Etiyel Chibira, a corridor and cross-border transport expert, in the May 2021 trade brief prepared by the Trade Law Centre. Chibira said cross-border road transport in Africa carries over 80% of intra-regional and inter-regional trade.
How the region scored in Common Market Protocols (The East African)
Tanzania attracted more citizens of other partner states to live and work within its borders in the past years, a new scorecard on the Common Market shows. The country issued 19,629 residents permits compared with Kenya’s 2,378, Uganda’s eight and Burundi’s 459. The report shows that Kenya and Tanzania issued the highest number of work permits to other EAC citizens between January 2019 and December 2020. Kenya issued 2,378 work permits to mostly Tanzanian and Ugandan nationals, while Tanzania issued 1,664 work permits mostly to Kenyans and Ugandans. Kenya, Tanzania and Burundi attracted the highest number of students from other partner states between 2019 and 2020. “Intra-EAC trade has increased among the EAC partner states in the past 10 years. And we have no choice. That is why we are widening to include the DR Congo to become the seventh member to the EAC,” he added.
EAC operations could grind to a halt over budget cuts (The East African)
The East African Community risks paralysis if it does not get additional funding on its budget day, June 22. The secretariat says that the $90 million proposed in the bloc’s 2021/2022 budget by the Council of Ministers can’t finance its development agenda. Among the priorities to be achieved within this financial year are consolidation of the Single Customs Territory; infrastructure development; enhancement of free movement of factors of production across the Partner States; regional industrial development; improvement of agricultural productivity and value addition; promotion of regional peace, security and good governance; and institutional transformation at the regional and partner state levels. The admission of the Democratic Republic of Congo, which is being fast-tracked, also faces headwinds, as there are no funds for the drive.
Preparations for Accra’s COVID-19 economic recovery and resilience plan kick-off (UNECA)
The United Nations Economic Commission for Africa (ECA) and the Accra Metropolitan Assembly hosted a two-day workshop in Accra, with a focus on the preparation of a COVID-19 economic recovery and resilience plan for the city to withstand shocks. Held on 16 and 17 June, the hybrid workshop centered around the economic and financial impacts of the COVID-19 pandemic on Accra, as part of a wider UN project covering 16 cities around the world. Ghana’s Deputy Minister of Finance, Hon. John Kumah, emphasized the need to boost local productivity in food production, digital economy and construction. He pointed out: “To accelerate the resilience of Accra, productivity needs to be enhanced. Significant challenges exist, however, related to the high prevalence of informality.”
‘Rising shipping costs will hurt Africa’ (The Southern Times)
The skyrocketing prices of shipping goods across the globe will result in higher cost of goods for net importers of finished products, like Africa, economists say. A conflux of factors – including soaring demand, a shortage of containers, saturated ports and too few ships and dock workers – have contributed to the squeeze on transportation capacity on every freight path. Economist Duduzane Ngezi told The Southern Times Business that Africa was likely to be hit hardest by the price increases, and retailers faced three tough choices: halting trade, raising prices, or absorbing the cost to pass it on later. “The more than 100 percent increase in shipping costs is already being felt in Africa. The continent imports plenty of goods from Asia, Europe USA and other countries ranging from furniture, food, drinks, clothing and other goods. Consumer demand is likely to shift to services from goods, but the risk of course is that if higher shipping costs persist especially given ongoing shipping disruptions producers become more willing to pass these higher costs on to consumers.”
Zanzibar President calls for increased intra-EAC and intra-African trade (EAC)
The President of Zanzibar, Dr. Hussein Ali Mwinyi, has called for increased trade among East African Community Partner States and by extension African countries. President Mwinyi said that EAC Partner States and African countries trade more with nations in other continents while trade amongst them was way too low, adding that intra-EAC and intra-continental trade was the best way to promote economic prosperity in East Africa and on the African continent. President Mwinyi urged the EAC Secretariat to continue working closely with Partner States to address Non-tariff Barriers (NTBs) that were impeding intra-regional trade and singled out the tiff between national standards bodies that certify goods for export across the region. The President noted that certification standards should be harmonised across the region with national standards authorities not insisting on retesting import goods that had already been tested certified in other Partner States, cautioning that this was a major impediment to the free movement of goods.
Tanzania owes NOT a single cent to EAC, Mulamula reveals (The Citizen)
Tanzania is not owed any monies by the East African Community (EAC) as budget contribution. And the country would no longer allow accumulation of debts owed to the regional organization. “It is true there have been some delays (in remittances). But as of now, we have settled all our mandatory contributions,” affirmed Foreign Affairs minister Liberata Mulamula. Tanzania is not owed any monies by the East African Community (EAC) as budget contribution. And the country would no longer allow accumulation of debts owed to the regional organization. “It is true there have been some delays (in remittances). But as of now, we have settled all our mandatory contributions,” affirmed Foreign Affairs minister Liberata Mulamula. The minister said she was aware of how the cash crisis had seriously impacted on the activities of the Arusha-based EAC in the past few years. However, she said some countries, she could not mention, remained behind in settling their bills due to political turmoils.
Lawyer seeks to block DR Congo admission to EAC bloc (Daily Monitor)
A Ugandan lawyer has filed a suit with the East African Court of Justice seeking to block the admission of DR Congo into the East African Community (EAC) bloc. Mr Adam Kyomuhendo, an advocate of the High Court of Uganda, filed the suit before the First Instance Division of the regional court against the EAC secretary general and attorney generals of all the partner states. Mr Kyomuhendo works with Byaruhanga and Company Advocates in Kampala. His application seeks court orders to restrain the admission of DR Congo into the six-nation bloc by the EAC heads of state. Mr Kyomuhendo wants the admission of the vast country as the seventh member of EAC stayed until hearing and determination of the case. The court will fix the matter for hearing in the next session. The main case is seeking court orders to permanently stop the Summit, a supreme organ of the EAC, from admitting the country into the bloc.
African medical experts, researchers, others move for local production of vaccines (Guardian)
Coalition for Dialogue on Africa (CoDA) will today host medical experts, researchers and policymakers from the Africa continent to unveil its Independent Task Team (ITT) on equitable and universal access to vaccines and vaccination on the continent. The meeting is expected to end the long wait for health solutions across Africa with regards to vaccine development, production and distribution. Speaking with journalists in Benin City, Executive Director of CoDA), Ms. Souad Aden Osman said the initiative was aimed at generating demand for vaccine development, production and distribution in Africa.
ECOWAS: West African bloc aims to launch single currency in 2027 (DW)
The 15-nation Economic Community of West African States (ECOWAS) on Saturday announced 2027 as the new date to launch its single currency, the “eco.” The bloc had planned to launch a common currency this year but postponed the plan due to challenges posed by the coronavirus pandemic. “Due to the shock of the pandemic, the heads of state had decided to suspend the implementation of the convergence pact in 2020-2021,” Jean-Claude Kassi Brou, president of the ECOWAS Commission, told a news conference after a summit of the leaders in Ghana on Saturday. “We have a new road map and a new convergence pact that will cover the period between 2022-2026, and 2027 being the launch of the eco,” he said.
Insecurity shrinking Africa’s investment space – AfDB President tells ECOWAS Leaders (GhanaWeb)
President of the African Development Bank Group, (AfDBG) Dr. Akinwumi Adesina, says insecurity on the African Continent and for that matter in the ECOWAS sub-region, is seriously affecting the investable space of the continent and as a result, urgent steps need to be taken to arrest the situation. Addressing Heads of State of the Economic Community of West African States (ECOWAS) at their 59th ordinary session today the 19th of June 2021 at the Kempinski Hotel in Accra, Dr. Akinwumi Adesina, says the rapidly deteriorating security situation on the continent needs their immediate attention. “When we resolve Africa’s debt challenges, I can rest if just only to, but one thing will still keep me awake at night, Africa’s rising insecurity. As you well know, the situation is most precarious in the Sahel and the Lake Chad Basin. I am sure your Excellencies, it keeps you also awake at night. The trend is disturbing as expenditures on defence are rising fast,” Dr. Akinwumi Adesina said.
Covid-19: African countries win the race against time with testing laboratories (AfDB)
In March 2020, Africa had its back to the wall, helpless in the face of the magnitude of a virus that appeared in Asia and quickly spread to the entire planet. Only two African countries were then able to test for the novel coronavirus: Senegal, with its Pasteur Institute, and South Africa, the most industrialized country on the continent. But Africa is recovering. Countries have begun to develop testing laboratories. Strongly supported by the African Development Bank, they have achieved a logistical and scientific feat. As soon as the pandemic began, the Bank provided $2 million in emergency assistance to help the World Health Organization strengthen its capacity to support African countries. Since March last year, the Bank has been helping countries cope with the health emergency and the socio-economic consequences of the pandemic, notably through its Covid-19 Response Facility of up to $10 billion.
Embedding and financing climate resilience underpins Africa’s recovery (UNECA)
The fifth African Climate Resilience Infrastructure Summit (ACRIS5), which was held virtually highlighted that integration of climate resilience in the design and implementation of key areas such as agribusiness, hydropower plants, transport corridors, urban sprawls and ecosystems such as protected areas, which are vulnerable to climate change, is critical if Africa is to recover and building forward better to attain sustainable development and shared prosperity. “Investments in these sectors are critical for Africa trade agenda through the African Continental Free Trade Area, for regional integration and for a smart and climate neutral industrialisation agenda.” Adam said. “Africa presents unique challenges, but also unique opportunities for climate resilience. The challenge lies in ensuring that investments needed for growth and development gaps can happen and do so fast enough to leave no one behind. We need the resources upfront. The opportunity lies in building a resilient Africa starting from a very low base in ways that are climate resilient and inclusive.”
Africa Roundtable: ‘Health is economy and economy is health’ (DW)
German President Frank-Walter Steinmeier set the tone in his opening remarks for the “Africa Roundtable” held on Wednesday when he called for greater cooperation between Europe and Africa. “We, Africa and Europe, need each other to tackle the big challenges, and we can learn a lot from each other in the process,” he said at the start of the online debate organized by the Global Perspectives Initiative (GPI). Steinmeier said that it was crucial to cooperate closely in fighting the pandemic, on climate change, migration, digitization, terrorism, and globalization. All panelists agreed that one thing the pandemic had taught the world was, as Nigerian economist Oby Ezekwesili put it: “Health is economy and economy is health.” Ngozi Okonjo-Iweala had already warned in February, when she took over as director-general of the World Trade Organization (WTO), that there would be no “business as usual” after the pandemic. At the online debate, she specified that she intended to dismantle existing trade barriers for basic medical products, vaccines, and active ingredients.
Brexit: Liz Truss eyes huge six-country Africa trade deal – worth millions (Express)
The UK’s Trade Commissioner to Africa said the UK will forge closer links with African countries in the years ahead following a landmark agreement that was signed with Kenya. The UK signed a trade deal with Kenya in December 2020 to ensure that all companies operating in Kenya can continue to benefit from duty-free access to the UK market. But Emma Wade Smith said this agreement could be expanded out in the near future to the whole of the East African Community (EAC) states. The trade chief also reaffirmed Britain’s commitment to investing in Africa claiming the UK wants to be “Africa’s investment partner of choice.” Department for International trade sources said a potential deal with the EAC could be worth at least £1billion and links some of the continents “fast-developing” economies.
Global
COVID-19 slashes foreign direct investment in Africa by 16% (UNCTAD)
The COVID-19 pandemic had a significant impact on foreign direct investment (FDI) in Africa as flows to the continent declined by 16% in 2020 to $40 billion, from $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, published on 21 June. FDI inflows to sub-Saharan Africa decreased by 12% to $30 billion, with investment growing in only a few countries. FDI to Southern Africa decreased by 16% to $4.3 billion even as repatriation of capital by multinational enterprises (MNEs) in Angola slowed down. Mozambique and South Africa
Investment facilitation talks advance, delve into implementation and technical assistance (WTO)
Participating members heard the reports from the facilitators of the discussion groups on “scope” and “facilitation of the entry and temporary stay of businesspersons for investment purposes” who highlighted progress since the last intersessional meeting on 31 May-1 June. The facilitator of the group on scope presented the group’s text contribution, which addresses some key aspects of the overall scope of application of the future agreement. The group will continue working on other important related issues, such as definitions. Participants also heard about ongoing work by the group on facilitation of the entry and temporary stay of businesspersons for investment purposes, which met on 3 June.
President Cyril Ramaphosa signals ‘tremendous progress’ on Covid vaccine patent waiver at G7 summit (Daily Maverick)
President Cyril Ramaphosa left the G7 Cornwall summit last weekend pleased with the progress he has made in persuading most of the world’s richest countries to step up their support to Africa in fighting the Covid-19 pandemic. As the only representative from Africa, Ramaphosa shouldered the burden of the entire continent in lobbying the US, Germany, Japan, the UK, France, Italy and Canada for more help. The summit host, UK Prime Minister Boris Johnson, invited Ramaphosa mainly because of his success in mobilising global support for Africa’s fight against the Covid-19 pandemic last year when he was the AU chairperson. Ramaphosa said that “tremendous progress” had been made at the G7 summit in convincing the leaders of these major economies to open a debate at the World Trade Organization (WTO) about introducing a broad waiver on the patents of international pharmaceutical companies to allow developing countries to produce their Covid-19 vaccines.
New compensation offer made over Suez Canal blockage – lawyer (Reuters)
The owners of a giant container ship that blocked the Suez Canal in March have made a new offer in a compensation dispute with the canal authority, a lawyer for the authority said on Sunday. The Ever Given container ship has been anchored in a lake between two stretches of the canal since it was dislodged on March 29. It had been grounded across the canal for six days, blocking hundreds of ships and disrupting global trade. The Suez Canal Authority (SCA) demanded $916 million in compensation to cover salvage efforts, reputational damage and lost revenue, before publicly lowering the request to $550 million. The Ever Given’s Japanese owners Shoei Kisen and its insurers have disputed the claim and the ship’s detention under an Egyptian court order.
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SA exports have the potential to drive growth in post-pandemic boom (Citypress)
South Africa is experiencing a record trade surplus in the wake of the Covid-19 pandemic with our exports far outpacing imports. This is according to Justin Milo, Standard Bank’s executive head of trade and supply chain finance sales, who said exports could hold the key to South Africa’s economic recovery and growth. Milo said rising global commodity prices, together with increased demand for South African exports by trading partners, was the key driver of local export performance.
Third wave weighing on trade conditions (Engineering News)
Trade conditions during December 2020 and January 2021 suffered a severe second wave of Covid-19 infections, which negatively impacted trade. While trade conditions have subsequently improved, South African Chamber of Commerce and Industry (Sacci) CEO Alan Mukoki says these were down again in May with the Trade Activity Index (TAI) having declined to 36.
Industry must implement poultry sector transformation commitments, urges EBieSA (Engineering News)
The Emerging Black Importers and Exporters of South Africa (EBieSA) is calling on the domestic poultry industry to urgently implement the transformation commitments contained in the Poultry Master Plan. Speirs says that this is despite what was agreed on in the Poultry Master Plan, and which was signed by the local poultry industry and President Cyril Ramaphosa in November 2019. “As soon as any measure to drive transformation is raised, the local industry counters this by saying it will lead to job losses. We see this as nothing more than a diversion strategy and amounts to blackmail,” Speirs notes. EBieSA has also made a submission to the Department of Trade, Industry and Competition (DTIC), warning that further tariffs on imports could impact on food security for the poorest in South Africa. The submission was made in response to the DTIC’s Poultry Tariff Structure Review.
Massmart says localisation project yielding benefits, lauds DTIC (Engineering News)
Wholesale and retail group Massmart says its localisation focus, in partnership with the Department of Trade, Industry and Competition (DTIC), is bearing fruit, with visible benefits being experienced by the group and an increasing number of local suppliers. Massmart, over the past nine months, reviewed its top imported products and determined which of these have the potential to be manufactured more competitively by local manufacturers. “There are several benefits to localising supply. Locally manufactured products present significant supply chain benefits by reducing supply lead times so that stock arrives in our stores faster and more reliably, which translates directly into improved sales,” says Massmart sourcing optimisation executive Von Stander.
IMF, SACU inflows partly boost Namibia’s foreign reserves: central bank. (Namibia Daily)
Namibia’s foreign reserves stood at 39 billion Namibia dollars (about 2.8 billion U.S. dollars) as of May 31, partly due to an inflow from the International Monetary Fund (IMF) and Southern African Customs Union (SACU) receipts, a central bank official said Wednesday. The IMF funds came in the form of disbursement of IMF Rapid Financing Instrument which partly contributed to the increase from the 34.7 billion Namibia dollars seen in March, said Johannes Gawaxab, the governor of the Bank of Namibia, the country’s central bank, during a Monetary Policy Committee (MPC) announcement. According to Gawaxab, at the current level of 39 billion, the international reserves are estimated to cover six months of imports.
AfCFTA to inspire rebound: Govt (Zimbabwe Independent)
Government has moved to allay private sector concerns that the African Continental Free Trade Area (AfCFTA) would knock them out of business as high quality, competitively-priced products flood the domestic space. AfCFTA was established on January 1, 2021, creating a market of 1,3 billion people with US$3 trillion combined gross domestic product. “I would like to allay private sector fears on unfair trade practices that might arise as a result of trade liberalisation under the AfCFTA by assuring them that the AfCFTA agreement has provisions on trade remedies to defend domestic industries against unanticipated import surges, dumping or subsidised imports, if necessary,” Deputy Foreign Affairs and International Trade minister David Musabayana said during a meeting to discuss AfCFTA.
World Bank eyes Kenya removal from high-risk debt list (Business Daily)
The World Bank Group says it is likely to remove Kenya from countries with high risk of default on loans in 2028 if the authorities stick to a programme aimed to curtailing growth in government expenditure and growing taxes. The multilateral lender says it expects the country’s debt risk profile to improve in coming years on projected recovery in economic growth and exports, helped by fiscal consolidation programme and implementation of policy reforms. “Kenya’s public debt burden is projected to peak in FY2022/23 and then decline consistently, with the present value (PV) of public debt set to fall below the 55 percent high risk threshold by 2028,” World Bank wrote in the report following the $750 million (Sh81 billion) under the Development Policy Operations (DPO) last week.
We have adopted 58 African Regional Standards – UNBS (Daily Monitor)
Previously, the major source of substandard products was through imports. But this has since changed after UNBS strengthened its compliance requirements for imported products requiring that they are inspected and tested in their countries of exports before coming to Uganda. This initiative is being done under the Pre-Export Verification of Conformity (PVoC) Programme. However, with the promotion of Buy Uganda Build Uganda which is aimed at promoting import substitution and encouraging exports of Ugandan products to regional and international markets, we have seen an increase of noncompliance to quality standards from locally manufactured products, especially by Micro, Small and Medium Enterprises (MSMEs) who have significant challenges with capacity and resources required to put in place basic quality management systems to ensure that their products comply to the required safety and quality standards.
Export guarantee safeguards key for promoting regional trade (The Independent Uganda)
Uganda needs an export guarantee scheme for trade with Democratic Republic of Congo and South Sudan, according to the Uganda Manufacturers Association Executive Director, Daniel Birungi. Birungi made the remarks at the recently held post-budget virtual conference in Kampala sponsored by Absa Bank Uganda. Birungi’s call has been previously advanced by many trade experts given that the two countries have experienced political instability that has cost many Ugandan traders billions of shillings. He said: “We have opened up South Sudan and DRC, which is very good work. But the aspect of volatility in these markets requires that we have an export guarantee scheme… so that, when a manufacturer transports their goods to these countries and loses them, they are able to have recourse.”
Museveni, Tshisekedi commission construction of DRC roads (The Observer)
Uganda President Yoweri Kaguta Museveni and his Democratic Republic of Congo counterpart today Wednesday Felix Antoine Tshisekedi Tshilombo commissioned the construction of the cumulative 233km road project between the two countries at Mpondwe in Kasese district in western Uganda, through the minister for Works and Transport will be injecting up to Shs 243.7 billion into the Congo roads project.
The two Heads of State exchanged views on bilateral, regional and international issues of mutual interest. They reiterated their commitment to promoting trade, investment and common infrastructure as well as deepening integration among the peoples of the African continent. They stressed the importance of strengthening cooperation in different sectors including; security, infrastructure connectivity, energy, trade and investment, health, management of transboundary water resources, petroleum and minerals with the view to promoting peace, stability and prosperity of the two countries.
Trade Hub awards $1.4 million co-investment grant to boost fertilizer production in Nigeria (Premium Times)
The West Africa Trade & Investment Hub (Trade Hub) on Tuesday announced that it has awarded a $1.4 million (N574 million) co-investment grant to OCP Africa Fertilizers Nigeria Limited (OCP Africa). The hub, funded by the United States Agency for International Development (USAID), said the grant would help boost specialised fertilizer production in Nigeria, in order to help farmers grow crops in commercial scale and support food security in the country. This was disclosed in a statement by Michael Clements, Trade hub’s chief of party. “This project is quite a unique one, and we are excited to partner with OCP Africa to complement the Nigerian government’s policy to leverage locally available resources to expand food production capabilities… Such policies contribute significantly toward achieving the food security goals in Nigeria, in line with the USAID Feed the Future initiative,” he noted.
Nigeria prepares to kick off works to build West Africa gas pipeline (The North Africa Post)
Nigeria’s federal government prepares to launch works to build a pipeline that will channel gas to Morocco through a combined offshore and onshore track. The announcement was made by senior official at the Nigerian National Petroleum Corporation (NNPC), Yusuf Usman, during an interview with local NewsDirect newspaper. Feasibility studies have been completed and Nigeria is about to take a “final investment decision for the project.” After recalling the commitment of the leadership of the two countries to the project, Usman reaffirmed that the project “will pick up a lot of African countries. Some of these African countries have gas they will inject into the pipeline while some don’t have but can take the gas for development, if they cannot pay for the gas, they can get electricity.”
IMF Staff Concludes Virtual Visit with Nigeria (IMF)
“The Nigerian economy has started to gradually recover from the negative effects of the COVID-19 global pandemic. Following sharp output contractions in the second and third quarters, GDP growth turned positive in Q4 2020 and growth reached 0.5 percent (y/y) in Q1 2021, supported by agriculture and services sectors. Nevertheless, the employment level continues to fall dramatically and, together with other socio-economic indicators, is far below pre-pandemic levels. Inflation slightly decelerated in May but remained elevated at 17.9 percent, owing to high food price inflation. With the recovery in oil prices and remittance flows, the strong pressures on the balance of payments have somewhat abated, although imports are rebounding faster than exports and foreign investor appetite remains subdued resulting in continued FX shortage.”
Bawumia, UK Minister for Africa co-chair fifth UK-Ghana Business Council (MyJoyOnline)
A statement issued by the British High Commission in Accra, copied to the Ghana News Agency, said the meeting built UKGBC 2020, which supported more than £223m of investment in Ghana’s infrastructure. It said the UK Government announced a new programme of support for Ghana Revenue Authority (GRA) and noted that the meeting reflected on the achievements of the UK-Ghana partnership over the past year, including support for the security sector following the recent visit of Madam Priti Patel, the UK Home Secretary. The statement said since the last meeting of the UKGBC, the UK-Ghana economic partnership had supported more than £223m of investment in infrastructure across the country, the biggest UK investment into infrastructure in Ghana in a generation. “This investment has significantly developed the country’s critical infrastructure, combining UK support and expertise with Ghanaian skills and entrepreneurship to build roads, bridges, hospitals, water infrastructure, airports and the expansion of Kumasi market,” it stated.
‘Egyptian economy is rebounding’: Expert (Ahram Daily)
Despite the ongoing impact of the Covid-19 pandemic, economic activity in Egypt is rebounding. According to the World Bank, remittances, portfolio inflows, and external financing continue to support the country’s international reserves. As part of its national development strategy, the government intends to increase exports to $100 billion cumulatively within the next five years, as well as to strengthen private-sector development and tap into its productive capacities to meet the country’s economic ambitions. The AfCFTA represents an important opportunity for Egypt, especially in supporting the country’s ambitions to build fourth-generation cities that will accommodate an estimated 30 million people, providing millions of jobs and catalysing the role of the private sector in driving growth. This is where programmes such as the Arab-Africa Trade Bridges (AATB) Programme, which aims to drive inter-regional trade and investment flows between Arab and African countries, are supporting both the Egyptian public and private sectors to identify and build stronger commercial partnerships, develop export capacity, and enhance trade potential across key growth sectors.
ECA examines Côte d’Ivoire’s migration policy (UNECA)
The Economic Commission for Africa (ECA) initiated on Tuesday a coordination mission to the national authorities and the United Nations System in Côte d’Ivoire, with a view to increasing the country’s capacity to manage migration issues. The visit, which took place from 8 to 10 June, 2021, was held as part of a project led by the ECA in collaboration with the United Nations Department of Economic and Social Affairs (UNDESA), the International Labour Organisation (ILO) and the International Organisation for Migration (IOM).
The project, which covers Côte d'Ivoire, Mali, Morocco, Senegal, South Africa, and Zimbabwe, aims to increase these countries’ capacity to design migration policies and programmes tailored to their needs, based on factual data, and in line with their ambitions to implement the Sustainable Development Goals (SDGs), Agenda 2063 for Africa's Development, and the recommendations of the Global Compact for Safe, Orderly and Regular Migration (GCM). The ongoing programme also aims to provide a framework for intra-African dialogue and exchange on migration issues, so as to provide these countries with an opportunity to share their experiences and good practices.
Africa
AfCFTA Young Entrepreneurs Federation launched (Graphic Online)
African Youth Entrepreneurship groups have launched the AfCFTA Young Entrepreneurs Federation (AfYEF) to mobilise the youth to take advantage of the single continental market. The federation is a league of youth entrepreneurship organizations from across the African continent that serves as a representative voice for young entrepreneurs on AfCFTA. It among other things seeks to train and build capacity of youth entrepreneurs, advocate for them when the need arises and further facilitate trade. For her part, a minister at the Nigeria High Commission, Mrs Esther Adebola Arewa, acknowledged that the success of the AfCFTA was critical to the successful integration of regions on the African continent. She, therefore, advised the youth not to take for granted the AfCFTA Young Entrepreneurs Federation platform, saying “please take advantage of those opportunities that abound”.
Experts and government officials discussed strategies for mobilizing internal resources to cope with the growing debt of African countries and allow the continent to recover better after the Covid-19 pandemic. The webinar, titled “Exploring the Link Between Fiscal Policies and Debt Management”, is the second in a series of webinars on African debt management organized by the African Development Bank with the support of the Government of Japan. According to the director of the governance and public finance management department at the African Development Bank, Abdoulaye Coulibaly, it is necessary “to start a discussion on how to reduce dependence on debt, but also on how fiscal policies and tax policies in particular can contribute to avoiding a situation of debt distress.”
EAC’s $90m budget set for tabling during first physical session (The Citizen)
The East African Community (EAC) budget for the 2021/22 financial year will be read in the regional Legislative Assembly here on Tuesday next week. The budget speech will be delivered by the chairperson of the EAC Council of Ministers, Adan Mohammed, who is Kenya’s Cabinet Secretary for EAC Affairs The EAC organs and institutions are expected to spend $90 million during the coming financial year which begins on July 1. According to a statement by Eala, the proposed estimates have been approved by the Council of Ministers – a powerful organ of the regional economic integration bloc. Mr Charles Kadonya, the acting Eala Clerk, said a total of $53.1 million (58 percent of the entire budget for 2021/22) will be raised from the six EAC partner states. The other $37.4 million (42 percent of the total $90 million budget) will be sourced from an array of development partners of the Community.
Tough times not yet over for African airlines (Engineering News)
Around the world, light is now visible at the end of the Covid-19 pandemic tunnel (although the distance to the end of the tunnel varies greatly from country to country). One of the economic sectors that will be most relieved by this is the airline sector, and not least its African, Southern African and South African members. Even before the pandemic hit, many of the continent’s airlines were in financially weak situations, in large part as a result of heavy government charges and taxes, but also because of restricted access to markets within Africa and low load factors. In 2019, African airlines suffered a combined loss of $200-million, despite the continent’s economic growth.
Africa yet to meet target of 10 percent national budget for agriculture (The East African)
In 2003, the heads of state and government of the African Union recognised that greater public spending on agriculture was needed to eradicate hunger and poverty across the continent. This prompted them to make a political commitment – the Maputo Declaration – to allocate at least 10 percent of their national budget to food and agriculture, under the Comprehensive Africa Agriculture Development Programme (CAADP). A new report titled Public expenditure on food and agriculture in sub-Saharan Africa: Trends, challenges and priorities, found few countries have met the 10 percent Maputo target, despite a renewed commitment in 2014 through the Malabo Declaration. Surprisingly research showed that on average, 21 percent of budgets devoted to food and agriculture in the region were not spent, often due to either funds being disbursed too slowly or complications in project implementation.
Regional coffee agencies want tariffs removed to boost trade (The Herald)
Coffee agencies in the East African region have proposed the removal of trade tariffs in the continent to boost earnings. A policy brief published by the East African Business Council (EABC) says countries should heavily maximise on the African Continental Free Trade Area (AfCFTA) agreement to search for new markets. The policy, published May 17, 2021, notes that given the economies of scale, the free trade agreement is a golden opportunity for the East African Community (EAC) to export coffee to the rest of the continent. “To this end, the EAC should advocate and push for zero tariff coffee trade, especially processed coffee, across the entire African region as part of the AfCFTA,” it says. EABC says that since all the five countries – Burundi, Rwanda, Kenya, Uganda and Tanzania – produce coffee of high quality, none should consider the beans to be sensitive products. Instead, they should use the opportunity to boost local uptake of coffee. The document is titled, Policy Brief on General Trade Obstacles on Coffee Trade in the East African Community.
Enhancing the Performance of National Oil Companies (AfDB)
Revenues from oil and gas resources have been the value-creating engines for governments across the globe. For African countries, commercializing oil reserves is a major opportunity to fund the breadth of socio-economic industrialization programmes for which they strive and as a result National Oil Companies (NOCs) have been established by many, whether petroleum producing or still in the process of exploring. assets. It is tempting to make the assumption that National Oil Companies must add more value than their international oil competitors but the situation is often more complex. National energy companies usually have multiple roles including revenue generation, local content promotion, providing preferential energy pricing to stimulate the local market and delivering national expertise ranging from geo-data to managing and partnering with international peers. But the window for extracting value from oil is beginning to close as the global energy transition gets underway and NOCs must meet these sometimes diverse objectives while also helping their countries make progress against challenging social development enabling and climate change reduction goals.
IFC and BMZ, the German Ministry for Economic Cooperation and Development, launched a new program today that will leverage greater private sector investments to support the food production value chain across Africa and increase access to finance for rural farmers and businesses. The Euro 21 million Food Systems Development Program, focuses on giving food producers, ranging from smallholder farmers to small and medium-sized agri-businesses in Africa, greater opportunities to improve their incomes. IFC’s technical assistance will strengthen agricultural value chains from farm to market. Supply chain disruptions caused by the COVID-19 crisis have highlighted weaknesses in the food supply system and created an opportunity to explore technology-based solutions that will make the sector more efficient, adaptive, and resilient. Meanwhile, global demand for food will grow by 50 percent by 2030 due to population growth and dietary shifts. This could exacerbate food insecurity for some countries if no action is taken. African countries, in particular, are at high risk of facing severe food insecurity by 2030.
India-African continental free trade area launched on the India-Africa trade Council Platform (ThePrint)
Higher trade levels can facilitate economic growth for Indian companies and transform domestic economies. The Indian office of AfCFTA in New Delhi will support the African efforts in elevating the potential impact it will create on India-Africa trade and bilateral investments. “The vision of Indian leadership of Atmanirbhar Bharat and the African “collective self-reliance” has long been an integral component attempted by African leaders and policymakers, to find Indo Africa-driven solutions to African problems in trade and commerce,” said Varun Jain, the Chairman of the India Africa Trade Council (IATC) committee for AfCFTA.
The future of trade between Europe and Africa: The new scramble for Africa is on (Vanguard)
The continent that’s been described as the last frontier seems to be on its way to deliver on its enormous promise. High economic growth rates, combined with the world’s youngest and fastest-growing population continues to fuel optimism amongst observers. The increasing trend of political stability and cooperation within Africa is also a positive sign. With initiatives like the African Continental Free Trade Area (AfCFTA) and Agenda 2063, a blueprint for socio-economic transformation, Africans are showing ambitions for the future. However, just like Brazil, Russia, India, China, and South Africa (BRICS) in recent years, Africa will need strong strategic partnerships to make things happen. That’s where Europe comes in.
Global
WTO members consider how to monitor Aid for Trade for 2022 Global Review (WTO)
The Monitoring and Evaluation (M&E) exercise that will underpin the Aid for Trade Global Review, due to take place in mid-2022, was one item discussed by members at a Committee on Trade and Development workshop on the circular economy. Ambassador Mujtaba Piracha of Pakistan, the chair of the committee, outlined the process that he envisaged would lead to the Aid for Trade Global Review based on the theme “Empowering connected, sustainable trade”. The need to facilitate economic recovery from the COVID-19 pandemic was highlighted by some members as a theme to be explored. Members noted that the Aid for Trade Stocktaking event last March was a first attempt to survey the trade impact of the COVID-19 pandemic. Another theme that several delegations highlighted as a topic for consideration was the gender dimension to Aid for Trade and how it can contribute to the work in the Informal Working Group on Trade and Gender.
TRIPS Council of WTO to hold series of meetings till July-end on patent waiver proposal (Times of India)
The TRIPS Council of the World Trade Organisation on Thursday agreed to hold a series of meetings till July-end to take stock of the text-based discussions on a proposal seeking patent waivers to deal with the Covid-19 crisis, an official said. This was agreed upon at the informal meeting of the council in Geneva. The meeting follows after the members of the World Trade Organization (WTO) agreed by consensus to start the text-based negotiations on the proposal. “At the informal TRIPS Council meet on June 17, members agreed to a calendar of meetings until the end of July to organise and take stock of the text-based discussions on an urgent IP response to Covid-19,” the Geneva-based trade official said.
DDG Zhang highlights role of trade in promoting security, peace and development (WTO)
Trade plays a key role in producing economic opportunities, helping to create employment and strengthening institutions, which are indispensable factors for lasting peace and stability, Deputy Director-General Xiangchen Zhang said on 17 June. Speaking at the launch of the Global Peace Index 2021, DDG Zhang underlined the importance of the WTO’s Trade for Peace Programme in emphasizing the linkage between trade and peace at a time when the COVID-19 pandemic has worsened fragility risks across the world, particularly in fragile and conflict-affected states.
A transformative recovery in the wake of the COVID-19 pandemic requires a global covenant with full inclusion of middle-incomes countries since they are key actors of global development, Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), indicated. In her presentation, ECLAC’s Executive Secretary indicated that per capita GDP should not be the single criteria for defining development levels and needs, and it cannot be used to exclude Middle-Income Countries (MICs) from concessional finance and trade preferences. In this sense, she stressed that Small Island Developing States (SIDS) are particularly vulnerable. “COVID does not distinguish between income levels, and nor should cooperation to overcome this crisis be guided by GDP criteria,” she emphasized.
Alicia Bárcena noted that MICs are key actors of global development since they account for more than 75% of the world’s population and around one third of global GDP. These countries – in which 62% of people live in poverty – attract 45% of investment, account for 30% of global exports, and are key actors in the implementation of the 2030 Agenda and its Sustainable Development Goals (SDGs). In addition, they represent 96% of the public debt of developing countries (excluding China and India), meaning that debt distress and potential default in middle-income countries could have significant repercussions in global financial markets.
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National
Agricultural rebound: South Africa’s citrus exports heading for a record year (Daily Maverick)
South Africa’s citrus industry, which looks set to export a record 160 million cartons this season, has its first shipment of produce heading to the Philippines. Commodity exports, grown or mined, are leading the economic recovery. The first fruit destined for the Philippines was inspected last week in Durban, Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa, said in his weekly newsletter. “While export volumes will probably be modest as we test the market and develop the demand for South African citrus, the goal is to build up to 20,000 tonnes exports to the Philippines – this will secure much needed jobs in South Africa, and lead to additional foreign exchange earnings,” Chadwick said.
Informal sector boosts growth (New Era)
The trade ministry is working on a policy to develop the informal sector and transform it to contribute more to the mainstream economy. Through this, it is hoped that the informal sector can boost economic growth that has been double decimated by both a recession and a pandemic. Trade minister Lucia Iipumbu on Friday said her ministry is set to implement policies and programmes to enhance business growth, including a National Informal Economy and Entrepreneurship Development Policy, that is currently in the pipeline. “The policy’s objective is to develop the informal economy and its participants into the commercially viable and mainstream economy sector, which could contribute to the economic growth of our country and its inhabitant in a sustainable manner,” said Iipumbu at the inauguration of the Omaheke Innovation Village, also known as ‘O-Space’.
Lack of regulatory framework a roadblock to international trade – LCCI (Nairametrics)
Dr. Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industries (LCCI) has disclosed that a lack of inter-agency regulatory framework is affecting the implementation of international trade in Nigeria. He disclosed this in Lagos at the Primetime Reporters 3rd Annual Lecture and Awards with the theme: “Assessing Nigeria’s Readiness to Maximize the Gains of AfCFTA.” He listed cost-effective power supply, cost of credit (interest rates), expanding trade finance/micro credits and finance for Small and Medium Enterprises Development (MSME) as some of the problems faced by stakeholders. He added that multiple taxations by government, high level of insecurity, quality of trade infrastructure, long-standing problem of transshipment, piracy, smuggling, and other injurious trade practices by non-African trading partners also contribute to international trade roadblocks in the country.
Kenya banking on Africa trade deal to boost Lamu port (The Star, Kenya)
Kenya hopes to ride on the Africa Continental Free Trade Area (AfCFTA) agreement to secure business for the Lamu Port. It targets to use the gazetted Special Economic Zone (SEZ) near the new port as a value addition centre for agricultural commodities among them tea and coffee, key exports for Kenya. The government is also targeting export of avocados and livestock with factories for value addition in canned fruits, vegetable and juices expected to be set up at the SEZ.
Potato imports by fast-food firms to attract 30pc duty (Business Daily)
Fast food franchises operating in Kenya have been slapped with a 30 percent duty on imports of potatoes used to make French fries, a move that will significantly raise the cost of the end product. Major fast food joints rely on imports from as far as Egypt and South Africa for the potatoes they use as most that are grown locally do not meet required standards. Last week, Treasury Cabinet Secretary Ukur Yatani introduced the duty that will apply to crop coming outside the East African Community, arguing that it’s meant to safeguard farmers. Kenya has been relying on imports of certified tubers to meet the growing demand for clean seeds for potato farmers with the view to boosting production of the country’s second most popular staple food.
Tanzania Prepares To Adopt Digital Currency (Taarifa Rwanda)
Equity Bank Rwanda Launches Payment Card usage campaign with Visa. Equity Bank Rwanda has today launched an exciting Visa Card Promotion that seeks to promote usage and payments of goods and services. The campaign will see customers win exciting prizes ranging from Household Appliances, Brand New Laptops, Supermarket Vouchers, Travel Vouchers, and many more exciting monthly prizes. Launch the new Campaign, Hannington Namara, the Managing Director, said “We are excited to launch this promotion that has been designed to create awareness about the different types of cards as well as the different benefits that customers get when they choose Equity Bank Visa Cards. This promotion will go a step further and reward those who use their cards to make payments both Online and in the Store.”
Uganda’s imports from Tanzania surge (Daily Monitor)
Uganda’s imports from Tanzania almost doubled in April, signaling an increased reliance on East Africa’s second largest economy. According to the Bank of Uganda monthly performance report, Uganda, during April , imported goods worth $125m (Shs443b), representing an increase of 25 per cent. This was up from $92.9m worth of goods imported in March, which according to the United Nations (Comtrade) database on international trade, contributed to a cumulative import bill of $743.68m (Shs2.6 trillion) from Tanzania during 2020. Tanzania remains one of Uganda’s strategic trade partners. However, the two countries have had trade challenges in the last two years, with Tanzania blocking some of Uganda’s exports including sugar.
New Zambian rules to hit Tanzania transport firms (The Citizen)
New regulations in Zambia meant to empower locals could have a devastating impact on Tanzanian transporters, it has been revealed. The Citizens Economic Empowerment (Transportation of Heavy and Bulk Commodities by Road) (Reservation) Regulations, 2021 seek to operationalise the southern African country’s the Citizens Economic Empowerment Act, 2006. Currently, the Tunduma-Nakonde border post is Tanzania’s busiest crossing, being the gateway to Zambia, the Democratic Republic of Congo and, to some extent, Zimbabwe. It is estimated that over 70 per cent of transit goods imported through Dar es Salaam Port pass through the border post.
The World Bank Group Supports Recovery and Resilience of Rwanda’s COVID-19-Affected Businesses (World Bank)
The World Bank Group today approved $150 million from the International Development Association (IDA) to help the Government of Rwanda increase access to finance and to support recovery and resilience of businesses affected by the COVID-19 pandemic. The Access to Finance for Recovery and Resilience (AFIRR) Project also benefits from $25 million in IDA grants, as well as an additional $7.5 million grant from the Global Risk Financing Facility (GRiF), to help enhance business’ access to finance. “This project is an important contribution to the government’s post-COVID Economic Recovery Plan, promoting investment in priority growth sectors, supporting jobs and reinforcing Rwanda’s financial system’s crisis preparedness.” said Rolande Pryce, World Bank Country Manager. “The AFIRR project provides significant resources to help further capitalize the Economic Recovery Fund coupled with enhanced support programs to improve firms’ capacity and remove barriers to access to finance. It provides a suite of instruments that strengthen the existing recovery ecosystem ranging from financial instruments to adjustment mechanisms that include innovative risk mitigation solutions.”
Govt Plans Blitz On Imported Mealie Meal To Save Local Industry (New Zimbabwe)
Government is planning a crackdown on retailers found selling cheaper mealie meal brands threatening to choke the local milling industry and jobs within the troubled sector. Zimbabwe is sitting on a giant stock of maize grain and mealie meal which came about as a result of good rains experienced in the 2020-21 farming season. But the yield has been consigned to storerooms as retailers have opted for cheaper imported brands which are more affordable to customers. But in a leaked memo written to Zimbabwean millers, Grain Millers Association of Zimbabwe (GMAZ) national chairman Tafadzwa Musarara said the cereal processors have “been assured of government’s unequivocal support on clamping on smuggled maize meal”.
IMF Staff Concludes Virtual Staff Visit to Zimbabwe (IMF)
“Zimbabwe has shown resilience in the face of the COVID-19 pandemic and other exogenous shocks. The pandemic, on top of cyclone Idai in 2019, a protracted drought, and weak policy buffers, has taken a severe toll on the economic and humanitarian situation. Despite the authorities’ timely actions to support the most vulnerable groups and businesses during the pandemic, real GDP contracted by 4 percent in 2020, after a 6 percent decline in 2019. However, an economic recovery is underway in 2021, with real GDP expected to grow by about 6 percent, reflecting a bumper agricultural output, increased energy production, and the resumption of greater manufacturing and construction activities. Uncertainty remains high, however, and the outlook will depend on the pandemic’s evolution, the pace of vaccination and implementation of sustainable policies.”
ECA commends Ethiopia’s strides in digitizing logistics sector (UNECA)
“Digitalization of logistics will be critical to match the demand and supply of transport services, thereby reducing the time and cost of delivering goods,” said Robert Lisinge, Chief of the Energy, Infrastructure and Services Section at the Economic Commission for Africa (ECA). The study, titled “Gap Assessment of Logistics Digitalization in Ethiopia,” was supported by ECA through technical assistance and advisory services to the Ministry of Transport of Ethiopia. Describing the digitization initiative as “timely” given ongoing AfCFTA implementation, Mr Lisinge said the “free trade area will lead to significant increase in trade flows between African countries with implications for the demand of different modes of transport – road, rail, maritime and air transport.”
Covid, conflict and debt hinder Ethiopia’s economic reforms (The East African)
Shortly after taking office, Ethiopia’s Prime Minister Abiy Ahmed promised a spectacular overhaul of the tightly-controlled economy: reforms to spur growth, unshackle the country’s potential, and lift millions out of poverty. But three years on, with elections on June 21, Abiy’s agenda remains largely unrealised, and the country burdened with debt, the economic pain of the coronavirus, and a costly war in Tigray. “Things are worse now... The country is broke and on the verge of defaulting,” said one European diplomat, who asked not to be named. One of Africa’s fastest-growing economies, Ethiopia took massive loans to fund some of its flashiest infrastructure projects, including a modern railway from Addis Ababa to Djibouti. But paying back its external debt – some $30 billion (25 billion euros), mostly to China – has proven difficult.
Egyptian launches trade missions to Central, West Africa (Daily News Egypt)
Egypt’s Minister of Trade and Industry Nevine Gamea has announced the launch of trade missions to Central and West Africa. The missions aim to explore trade and investment opportunities available in these promising markets, and strengthen cooperation with business communities across the continent. The minister said that this trend comes as part of the Egyptian Government’s keenness to provide all aspects of support and assistance to African countries. This is with the aim to raise their capabilities in all areas related to trade liberalisation and investment promotion. They also aim to share the Egyptian experience in supporting industrial sector, and supporting small- and medium-sized enterprises (SMEs). During the Africa Business Bridge Forum, which was held on Tuesday, Gamea noted that the Egyptian Government has taken a number of measures and mechanisms to enhance trade relations between Egypt and Africa.
Uganda, DRC start road network to boost trade, security (Argus News)
Uganda and the Democratic Republic of Congo (DRC) today launched the construction of a 223km road network designed to boost bilateral trade and improve security for oil companies operating in the Lake Albert basin. The road network will run from Uganda’s border deep into the DRC’s eastern region, where a number of rebel groups operate.
The Republic of Malawi has signed the Charter establishing the SADC Regional Fisheries Monitoring Control and Surveillance Coordination Centre (MCSCC). The country has also launched the SADC-aligned National Aquaculture Strategy and a report on “Working Together to Protect our Fisheries”. In her keynote address, Hon. Tembo said that by signing the Charter establishing the MCSCC, Malawi demonstrated the need for regional cooperation and recognised the important role that the Centre would play in advancing the SADC regional integration agenda. The objective of the Charter is to provide a legal framework for the establishment and operationalisation of an institution that will coordinate measures relating to fisheries monitoring, control and surveillance in the SADC Region.
Africa
Delivering regional public goods is key for successful African regional integration (Brookings Institution)
The “Africa Rising” narrative of strong economic growth over the past 20 years fueled by rising demand for primary commodities has failed to generate enough good jobs, in spite of the demographic dividend of a large working-age population. As recently put at the African Innovation summit, the development agenda has shifted from socioeconomic transformation to the lowest common denominator, managing poverty. This trend is exemplified in the African Continental Free Trade Area (AfCFTA) Agreement which, so far, still largely concentrates on a “negative” agenda; in other words, the focus is on removing policy-imposed barriers to trade. Now, though, regional integration agreements are moving toward a “positive” agenda requiring resources to provide goods not supplied by the market. In a recent paper, we revisit African regional integration through the lens of providing regional public goods (RPGs) rather than removing distortions to help markets function better.
AUDA-NEPAD COVID-19 Report: The Future of African Development Systems (AUDA-NEPAD)
The spread of COVID-19 is a global pandemic that has changed how humans live, produce, interact, and communicate. It has reached into all aspects of life and created great uncertainty, intensifying the vulnerability of struggling populations, and challenging the legitimacy of governments, creating a shared human experience that stretches around the world. The long-term effects of this pandemic will be felt for our lifetime. This report introduces a framework to aid decision-makers in thinking about the long-term effects of COVID-19 on development and pursuit of Agenda 2063. We do this by pursuing types of inter-related research.
High tech crime economic threat to SADC (Botswana Daily News)
Failure to address emerging high tech crimes comes with a huge risk of economic loss to the SADC region, Minister of Defence, Justice and Security Mr Kagiso Mmusi has warned. Officiating at a virtual SADC chiefs of police sub-committee of the Inter-state, Defense and Security Community (ISDSC) yesterday, he said police response tactics and strategies should be ahead of perpetrators of such crimes. Minister Mmusi said there was need to employ new strategies and configure training needs that recognised challenges in the fight against all forms of transnational crimes. Urging police chiefs to embrace information sharing and well-coordinated inter-agency operations, he pointed out that success of policing required new perspectives and measurements in areas of research, intelligence, crime mapping and analysis.
AUDA-NEPAD renews MoU with UN World Tourism Organization (AUDA-NEPAD)
The African Union Development Agency-NEPAD and the UN World Tourism Organization (UNWTO) signed a second Memorandum of Understanding on 15 June, in Windhoek, Namibia. The objective of the Memorandum of Understanding is to enhance cooperation between the organisations in identified areas of mutual interest, with a view to: Promote tourism as a tool for development in Africa in line with UNWTO’s Agenda for Africa – Tourism for Inclusive Growth, and Africa’s Agenda 2063 aspirations and goals on sustainable economic growth and inclusive development; Build strong partnerships to support the development of the tourism sector in Africa; and Support African countries in their recovery strategies from the impact of the COVID-19 pandemic effects and accelerate the recovery of the tourism sector.
Global Environment Facility Approves US$5.7m to Support Climate Actions in COMESA (COMESA)
The Global Environment Facility (GEF) Council has approved a US$5.7 million project to boost the capacity of four member states of the Common Market for Eastern and Southern Africa (COMESA) to effectively track and report their progress in tackling climate change, in line with their commitments under the Paris Climate Agreement. The project includes a $4.2million grant from the GEF and a $1.54 million co-financing from partners. The five-year Capacity Building Initiative for Transparency (CBIT) project will enable The Comoros, Eritrea, Seychelles and Zambia to comply with the Paris Agreement’s enhanced transparency framework (Article 13). The framework specifies how Parties to the Agreement must report on progress in climate change mitigation and adaptation measures, and support provided or received in capacity building, climate finance, and technology.
The fifth Africa Climate Resilient Investment Summit (ACRIS-5), which started today will address the financing of climate resilience for Africa’s green recovery. It is slated to take place on 16-17 of June. The 2021 ACRIS-5 theme is “Embedding and financing climate resilience towards Africa’s green recovery”. Consolidating the public and private sector to identify opportunities for leveraging limited public resources and investments needed to develop Africa’s infrastructure is one of the two main objectives of ACRIS-5. The second objective of this critical continental summit revolves around discussions on the integration of climate resilience in investments in critical sectors of agriculture, energy, water, transport, ecosystems, and cities as a response to the twin crises of climate change and the COVID-19 pandemic.
Advance with Africa AmCham Summit (US Chamber of Commerce)
The U.S. - Africa Business Center invites you to join us for a two day virtual Advance with Africa AmCham Summit on June 16-17, 2021, highlighting our partnership with the continent. This two-day event will showcase the opportunities for increasing U.S.-Africa business engagement and the work of our valued AmChams as partners in championing economic growth conditions for current and potential investors.
Where Is the Africa-China Trade Relationship Headed In 2021? (MENAFN)
There is no doubt that 2020 was the year that put the China-Africa relationship in the spotlight following the arrival of the COVID-19 pandemic. Early last year, African leaders worried how its citizens living in China would fare following the pandemic. Still, the attention of African leaders quickly turned to controlling the pandemic within their respective borders. Africa carefully watched as China and other Asian countries strive to contain the global pandemic, and they realized they also had to take action. However, Africa-China trade waned, leading to numerous inflationary effects, and Chinese workers left projects in Africa. The Africa-China relationship took another turn as the Chinese government and private organizations such as Jack Ma Foundation offered medical help to African countries. China’s Ministry of Commerce (MOFCOM) released some updated figures early this year on trade with Africa that tell a more positive story than many would have believed.
China’s relationship with Africa goes deeper than just resource extraction (The Africa Report)
When it comes to trade, African demographics and rising middle-class consumption, coupled with China’s increasing need for raw materials for industry and markets for its products, has made China one of Africa’s most important trading partners. Exports from Africa to China compared to total worldwide exports to China over the last 20 years have fluctuated between just two to four per cent since 2006. The bigger issue trade wise is that Africa’s trade balance with China has shown a general downward trend since 2000. This is largely attributable to the fact that African countries are increasingly importing finished products from China while exporting raw products to China, falling into similar trade patterns as with former colonial powers.
India’s maritime engagement with Africa set to grow (The Financial Express)
The Indian External Affairs Minister, Dr S Jaishankar’s recent visit to Kenya at the invitation of the Kenyan Cabinet Secretary for Foreign Affairs Ambassador Rauychelle Omamo, SC EGH from June 12-14, 2021 not only underlined the deep historical and civilizational links between the two countries but also brought into focus the priority India attaches to its engagement with the African continent. From a maritime perspective, working together for ensuring the freedom of the oceans with an inclusive and cooperative approach underpinned by India’s SAGAR (Security and Growth for All in the Region) is included in the guiding principles. The East coast of Africa is an integral part of the Indian Ocean littoral with its waters washing the shores of 10 nations in that continent, all of which are heavily dependent on the Indian Ocean for their sustenance and economic well-being. More than 90% of their trade travels over its waters and their resource-rich EEZ also lies in the Indian Ocean. They also provide access to the sea for many of the landlocked nations in the African continent which is also a significant source of revenue.
Global
Make trade more sustainable and inclusive, leaders say (UNCTAD)
Emerging from the coronavirus crisis is going to take deliberate political will, policy and more sustainable production that prioritizes both people and the planet, top trade leaders said at the second edition of the UN Trade Forum on 14 June. The forum discussed pathways towards a sustainable and inclusive recovery from the COVID-19 crisis, while tackling the climate emergency. “Climate change is increasingly defining us. We cannot afford to deal with it later,” said UNCTAD Acting Secretary-General, Isabelle Durant. “Climate change and environmental protection cannot be left out of any discussion on trade and development.” “How to address the immense problem in front of us is, however, divisive and contested. What we need is to adapt our rules to the new realities. We need to upgrade rules to foster trade and protect the planet,” she said opening the forum’s high-level segment.
Trade Liberalization Can Perpetuate Historical Disparities: World Bank (IISD)
The World Bank has published a report that explores the role of trade in lowering poverty, and provides recommendations on how to enable global trade to deliver benefits for the poor. In light of rising protectionism, it highlights the importance of promoting an effective multilateral trading system (MTS) to strengthen a global trade agenda that delivers benefits to the poor. Titled, ‘The Distributional Impacts of Trade: Empirical Innovations, Analytical Tools, and Policy Responses,’ the report notes that “the rise of international trade has transformed the global economy,” overlapping with a “dramatic” reduction in global poverty.
According to the publication, many developing countries, particularly in East Asia, have built the infrastructure to support trade, reformed their economic policies to promote it, and directed their youth towards jobs in industries that depend on trade, which brought new jobs and helped those countries integrate into global and regional value chains, and reduce poverty. Yet some countries have struggled to mitigate the losses and make the gains from trade inclusive. While most countries have reduced tariffs, nontariff barriers and poor infrastructure, among other impediments, continue to raise trade costs and make it difficult to spread the benefits of trade across the developing world.
Debt relief and productive capacities key to recovery in middle-income countries (UNCTAD)
Middle-income countries (MICs) are home to 62% of the world’s poor, but the challenges they face are often overlooked or seen as less urgent than those of poorer nations. Yet many MICs – a group of 106 countries that includes small islands like Kiribati, landlocked nations like Uzbekistan and emerging economies like Brazil – face some of the same vulnerabilities as low-income countries, such as crippling debt and a lack of economic competitiveness. Despite being potential economic powerhouses, they’re at risk of stagnating in their development trajectories, especially in the wake of the COVID-19 pandemic. “The international community must urgently address the structural obstacles holding back progress on achieving the Sustainable Development Goals in middle-income countries,” said UN General Assembly President Volkan Bozkir. A major challenge many MICs face as they try to establish an inclusive, sustainable and resilient recovery from the COVID-19 crisis is crippling debt.
WTO members urged to hasten towards fisheries subsidies compromise in stocktaking meeting (WTO)
“I think we are moving but we are far from doing the job. It has taken a long time and we still have large gaps. However, in spite of the difficulties before us, I do feel that we have the best chance to make a difference now. It really is within reach,” Director-General Okonjo-Iweala said at the hours long stocktaking meeting held after members undertook marathon discussions since 11 May when the draft chair’s text was circulated. “We are now looking at the text holistically to see what we can make possible before July 15,” she said referring to next month’s meeting of ministers.
Cooperation of all nations, not rivalries, needed now (ecns)
The world’s huge infrastructure gap is widening with every passing year by about $350 billion, with the total gap projected to hit $5.3 trillion by 2030, according to the McKinsey Global Institute. The projected gap will triple to around $15.9 trillion if the needs of the United Nations’ Sustainable Development Goals are included. In 2020, the Global Infrastructure Hub, a G20 initiative, projected that the gap would be around $15 trillion by 2040 on the basis of data from 56 countries. Now the G7, the group of seven industrialized nations, proposed its own program, called Build Back Better World, or B3W. Investment is good in any form, especially if it helps to bridge the gaps and bring the world closer.
US Covid IP waiver U-turn alone will not solve vaccine crisis (Financial Times)
Following support by the US for the temporary suspension of intellectual property for Covid-19 vaccines, there has been intense debate about how to best scale up manufacturing and boost global supply. The US shift marked a U-turn from last October when a proposal by India and South Africa for a temporary waiver of the World Trade Organization provisions on IP rights in the Trade-Related Aspects of Intellectual Property Rights agreement (Trips) was opposed by high-income countries. The European Commission and the G7 have now become involved. In the words of Katherine Tai, US trade representative, extraordinary times call for extraordinary measures, and against this backdrop, it is unsurprising that calls to set aside IP are gaining momentum. Yet whether IP is a barrier to access to Covid vaccines is a matter of debate, and IP can be both part of the problem and part of the solution.
US to donate 500m Pfizer doses to poor nations ‘no strings attached’ (The East African)
The United States has committed to buy and donate 500 million doses of the Pfizer Covid-19 vaccine to 92 low- and lower-middle-income countries, including those in the African Union. This comes as the World Health Organisation last week on Thursday sounded the alarm on low vaccination numbers in the continent, saying that only seven African countries are likely to meet its goal to vaccinate 10 percent of its population against the coronavirus by September. Speaking at the sideline of the G7 summit in the United Kingdom, US President Joe Biden said that America’s donation to poor nations would “supercharge the battle against the virus and comes with no strings attached.”
World Bank, IMF Launch High-Level Advisory Group on Sustainable and Inclusive Recovery and Growth (World Bank)
In the face of two crises – COVID-19 and climate change – the World Bank Group and International Monetary Fund launched a High-Level Advisory Group (HLAG) on Sustainable and Inclusive Recovery and Growth today to help secure a strong recovery and set a path for green, resilient, and inclusive development over the coming decade. Comprised of experts from research institutions, private sector, and governments, in addition to senior staff of the World Bank Group and IMF, the HLAG will propose ideas and frameworks for strategic and practical national and global action. These would contribute towards a sustainable and inclusive recovery, as well as setting the agenda for a sustained transformation based on new perspectives and models of growth and development.
ICC – along with their partners Boston Consulting Group and Global Credit Data – has published interim findings from its Trade Register on the performance of short-term trade and supply chain finance assets from 2019 and 2020. Preliminary analysis of the data for these assets has identified an increase in defaults across most trade finance products in 2020, which is likely at least in part attributable to the effects of the COVID-19 pandemic on economic activity – and related shifts in demand and supply. The factors behind the performance of trade assets in 2020 will be explored in detail by this year’s ICC Trade Register report, including an analysis of the likely “cushioning” impact of government economic support – such as, emergency state-backed lending.
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National
Eighty-two thousand jobs have been created in South Africa in the provision of business services to global companies – with a 22% annual growth in new jobs over the past three years, off the back of a strong partnership between Government and the private sector. This was said today to United Kingdom investors by Ebrahim Patel, Minister of Trade, Industry and Competition.
“South Africa’s top ranking and growing Global Business Services (GBS) industry shows what can be done through effective partnerships,” he said. “Industry-figures indicate that about 40 000 South African workers have been employed just for the UK market. There is an opportunity to scale current services up significantly and to move up the value chain, by increasing the number of jobs that require more complex skills and problem-solving, in areas such as IT, finance, law and health-care so that the value to South Africa improves. This can be done in addition to the large process-driven business services that are currently provided by many of the operators,” Minister Patel said. Master Plans are action-orientated policies, geared towards boosting local jobs and developing local value chains. The dtic has thus far developed industry Master Plans in six sectors, including automotive; clothing, textile, footwear and leather; sugar; poultry; steel and metal fabrication; and furniture. Together these industries account for 6% of South Africa’s GDP, 25% of exports and employ nearly 700 000 workers.
COVID-19 has worsened South Africa’s system of developing the skills of young people (The Conversation)
The COVID-19 pandemic has affected not only how we live, think and work but also how we acquire skills. This is particularly crucial for young people, large numbers of whom are excluded from labour market. South Africa’s latest Quarterly Labour Force Survey showed joblessness for those aged between 15 and 34 at 46,3%. To address the challenges of skills provision and acquisition, policy makers and researchers have set their sights on the vocational education and training system. But the view that this alone is the answer to solve existing labour market crises is flawed for three reasons. The Quality Council on Trades and Occupations – established in 2010 to set standards for and quality assure qualifications linked to a trade or occupation – has recently reconfigured occupational qualifications. These include revisiting the formal requirement for workplace experience, which learners now simply cannot get (and most could not get before COVID-19).
Positioning the youth for the digital economy (SAnews)
“As government, one of our key objectives is to ensure that young people are well positioned to take advantage of opportunities presented by digital transformation. “For this reason, the Department of Communications and Digital Technologies is proactively seeking partnerships that will help us achieve this objective,” Minister of Communication and Digital Technologies, Stella Ndabeni-Abrahams, said on Tuesday. “The youth of today is presented with opportunities brought by the Fourth Industrial Revolution (4IR) and requires the youth to be fully equipped with the necessary digital skills. This will empower them to contribute to the digital economy, while addressing other pressing issues that are facing our country.
Mauritius can be India’s gateway to Africa: Mauritian trade minister (Mint)
Mauritius can be the gateway for Indian businesses to access opportunities in the African continent taking advantage of the new African continental free trade agreement, Alan Ganoo, Minister of Foreign Affairs, Regional Integration and International Trade of Mauritius said on Tuesday. “There is growing interest among Indian businesses to access opportunities in the African continent. Ours is the first trade agreement signed by India with an African country. Indian manufacturers can move part of their manufacturing processes to Mauritius and produce for the African market… The African continental free trade agreement which came into force on the 1 January this year opens up trade and investment opportunities of a much larger market of 1.3 billion consumers. This is in addition to the duty-free access to the European Union, Chinese and US markets. Any investor located in Mauritius will be able to access these markets on preferential terms,” Ganoo said speaking at an event organised by PHD Chamber of Commerce and Industry.
Goods, services import bill decreases (Dailynews)
The import of goods and services decreased to 9,302.8 million US dollars from 10,484.1 million US dollars in the corresponding period last year driven by a decline in import value of oil, transport equipment and building and construction materials. The value of goods imports declined to 8,109.3 million US dollars during the year under review compared to 8,754.0 million US dollars in the corresponding period last year with the larger decrease registered in oil, building and construction. The value of oil imports declined by 22.4 per cent to 1,353.3 million US dollars mainly driven by a fall in oil prices in the global market and accounted for 16.7 per cent of goods imports. Every month, however, the goods import bill increased to 818.3 million US dollars from 562.5 million US dollars recorded in April last year, explained by an increase in imports of oil. The services payment were 1,193.5 million US dollars in the year ending April, lower than 1,730.2 million US dollars recorded in the corresponding period last year largely attributed to a decrease in travel payments, related to containment measures by most countries to contain the spread of Covid-19.
KRA seizes Sh4 billion illicit goods in half year (Business Daily)
The Kenya Revenue Authority seized goods worth more than Sh4 billion in six months as the multi-agency team set up by President Uhuru Kenyatta stepped up raids, arrests, and destruction of illicit goods. Most of the goods impounded include assorted goods (28.47 percent), aircraft parts (18.12 percent), agricultural products (16.56 percent), motorcycles, and motor vehicle parts (7.20 percent), and metallic products (4.58 percent).The KRA said it has prosecuted 74 offenders and destroyed goods worth Sh13.4 million which were being smuggled from the northern borders of the country.
The raids led to the seizure of sugar, edible oils, and fertiliser which underwent verification and testing. They have since accumulated over the years while some have been released to their owners following legal disputes and settlement for alternative use of the goods, including conversion to ethanol and soap. Industrialisation and Enterprise Development Cabinet Secretary Betty Maina said that some importers requested to be allowed to use edible oils that had expired as raw materials for such products as soap.
Tanzania stays the course on rail, power; terms debt ‘sustainable’ (The East African)
Tanzania passed a Tsh36.36 trillion ($15.61 billion) budget for 2021/22 with just 37 percent of the total budget (Tsh13.33 trillion or $5.75 billion) going towards development expenditure. An estimated 8.1 percent of the new budget (Tsh2.96 trillion or $1.27 billion) will be covered by grants and concessional loans from development partners through either direct project financing or Basket Fund financing, and another Tsh7.34 trillion ($3.16 billion) will be borrowed from domestic and external sources on commercial terms. Citing a recent debt sustainability analysis that concluded that Tanzania’s debt was still sustainable, Finance Minister Mwigulu Nchemba said that the 2021/22 budget would again lean heavily towards external funding while also prioritising internal sourcing.
Uptick in Q1 2021 Merchandise Trade (Proshare Nigeria)
The latest report from the Nigeria Bureau of Statistics (NBS) in its series on foreign trade in goods, drawn primarily from the Nigeria Custom Service, shows the total value of trade as NGN9.76trn in Q1 ‘21, +7% q/q and +14% y/y. Compared with Q4 ‘20, the total export value decreased 9% to NGN2.9trn while import value rose 16% to NGN6.85trn - more than double that of exports. The net result was a deficit of NGN3.94trn (vs NGN2.7trn in the previous quarter) and represents the sixth consecutive trade deficit figure. The value of imported agricultural and manufactured goods as well as oil-related products rose by 18-19% q/q. As usual, crude oil accounted for the largest share (66%) of total exports in Q1. However, the value of crude oil exports declined by 23% q/q and 34% y/y.
Nigeria: Critical Reforms Needed to Reduce Inflation and Accelerate the Recovery, says New World Bank Report (World Bank)
While the government took measures to protect the economy against a much deeper recession, it would be essential to set policy foundations for a strong recovery, according to the latest World Bank Nigeria Development Update (NDU). The NDU, titled “Resilience through Reforms”, notes that in 2020 the Nigerian economy experienced a shallower contraction of -1.8% than had been projected at the beginning of the pandemic (-3.2%). Although the economy started to grow again, prices are increasing rapidly, severely impacting Nigerian households. The report acknowledges notable government’s policy reforms aimed at mitigating the impact of the crisis and supporting the recovery. In addition, the report highlights that both the Federal and State governments cut nonessential spending and redirected resources towards the COVID-19 response. At the same time, public-sector transparency has improved, in particular around the operations of the oil and gas sector.
Ghana to Boost Private Investment to Achieve Sustainable Development Goals (World Economic Forum)
The World Economic Forum, in partnership with the Government of Ghana, is launching the first Country Financing Roadmap (CFR) for SDGs initiative in Africa. The CFR is a country-led initiative – in collaboration with the Sustainable Development Investment Partnership, a joint initiative between the World Economic Forum and the Organisation for Economic Co-operation and Development (OECD) – with concrete solutions to drive greater private sector participation in financing the Sustainable Development Goals (SDGs). Ghana, one of Africa’s leading and most stable economies, faces a number of barriers to meet its SDGs, a situation exacerbated by the extended COVID-19 crisis. The total costs required to achieve the SDGs in Ghana is estimated at $522.3 billion by the end of 2030, averaging around $52.2 billion a year. The current SDG financing gap for the next 10 years is $431.6 billion, with $43 billion just for 2021.
ITFC inks key trade deal with the Gambia’s government (Global Trade Review)
The International Islamic Trade Finance Corporation (ITFC) has penned a US$250mn framework agreement with the Gambia’s government, as it works to bolster support for key export and imports and help the West African nation overcome the negative economic effects of the Covid-19 pandemic. Funding is expected to back imports of essential agricultural inputs such as fertiliser, or, in other instances, facilitate pre-export financing for cash crops such as groundnuts and cashew nuts, which the ITFC says in a release are the “main agricultural produce in a sector that is a major employer of the country’s workforce”.
Africa
Now for the hard part, says Secretary General of African Continental Free Trade Area (CNN)
Signed in March 2018, trading under the agreement officially began on January 1, and efforts are now focused on rolling out the plan effectively. CNN’s Eleni Giokos spoke with Wamkele Mene, Secretary General of the AfCFTA secretariat, earlier this year. The following interview has been edited for clarity and length.
EG: Some people don’t believe the continental free trade area will be implemented, because we failed in regional bodies before. What is the message that you’re giving to investors and executives out there? WM: I believe with all my being that this agreement will be implemented. We have never had this level of political will and legal commitment before. I think we have to be patient. I think we have to be realistic about the challenges, and I think we have to look at the experiences of other regions around the world who have embarked on this journey of market integration, and how difficult this process is. However, we also know that the benefits certainly make the challenge worth pursuing.
African Regional Kick-off Workshop on the Statistical Measurement of IFFs (UNECA)
The Economic Governance and Public Finance Section (EGPFS), MGD has organized an African Regional Kick-off Workshop for 11 pilot countries to launch the statistical measurement of IFFs on Wednesday 16 and Thursday 17 June 2021. The phenomenon of Illicit Financial Flows (IFFs) in Africa raises serious problems for financing sustainable and inclusive development by draining capital and tax revenues from African economies and diverting scarce resources from social spending and productive investment. Following the recommendations of the High-Level Panel on IFFs, the ECA jointly with UNCTAD and DESA launched projects to support African countries in curbing these flows, primarily through identification, capacity-building and strengthening surveillance capabilities at national levels. In 2018, UNECA, together with UNCTAD, and with the cooperation of UNODC, inaugurated a new Development Account Project called “Defining, estimating and disseminating statistics on illicit financial flows in Africa”.
How to Attract Private Finance to Africa’s Development (IMF Blog)
African economies are at a pivotal juncture. The COVID-19 pandemic has brought economic activity to a standstill. Africa’s hard-won economic gains of the last two decades, critical in improving living standards, could be reversed. High public debt levels and the uncertain outlook for international aid limit the scope for growth through large public investment programs. The private sector will have to play more of a role in economic development if countries are to enjoy a strong recovery and avoid economic stagnation. Heads of state from Africa made this one of their resounding messages during the recent summit on “Financing African Economies” held in Paris in May.
Rethinking Regulations for Emerging Agricultural Enterprises in Africa (International Policy Digest)
Regulations for growing sectors, more so in agriculture, are not a bad idea. Experiences from all over the world show that, when done right, regulations can deliver several benefits to emerging and growing sectors. Some of these benefits include preventing counterfeit goods and products from thriving, ensuring goods and services are of the highest standards, and creating an enabling environment to facilitate trade in the targeted sectors. Given such benefits, one wonders why the public overwhelmingly rejects some of these regulations. The answer to this question lies is in our approach to regulating growing agricultural sectors in Africa. Currently, most regulations appear more interested in controlling and not growing the sectors. So, how can policymakers dispel these fears and ensure that regulations serve to boost the targeted sectors?
First, policymakers should prioritize creating an enabling environment, as opposed to merely regulating the emerging sectors. Secondly, policymakers should always strive to ensure public participation when drafting regulations.
‘Brand Africa’ to help realise continent’s tourism potential (Trade Arabia)
To better realise tourism’s potential to drive recovery, UNWTO and its Members will also work with the African Union and the private sector to promote the continent to new global audiences through positive, people-centred storytelling and effective branding. With tourism recognised as an essential pillar of sustainable and inclusive development for the continent, UNWTO welcomed high-level delegates to the first Regional Conference on Strengthening Brand Africa. UNWTO Secretary-General Zurab Pololikashvili welcomed the common determination to rethink as well as restart tourism. “African destinations must take the lead in celebrating and promoting the continent’s vibrant culture, youthful energy and entrepreneur spirit, and its rich gastronomy,” he said.
EAC urged to exploit lucrative raw cotton market (Dailynews)
The East African Community (EAC) partner states have been encouraged to exploit the huge potential of exporting raw cotton to the global market. Dr Desai noted that EAC exports to the world market currently stands at only eight per cent, adding that to increase the volume of exports, value chains such as textiles need to be promoted to boost exports. “We need to harness science, technology and innovation to boost exports by investing in greater capacity to produce leather and textiles and turn a crop like pyrethrum into aerosols,” said the Principal Secretary at EAC Headquarters in Arusha, Tanzania. Dr Desai was of the view that increased investment in the leather and textile sectors would cater for the growing demand in the region for locally manufactured high quality clothes and leather products.
COMESA Telecoms Project Dropped, 20 Years Later (COMESA)
A project initiated over 20 year ago to create a telecommunications company for the COMESA region has been dropped. The decision was made by the ministers of infrastructure during their latest meeting on June 2, 2021. Instead, the Ministers directed COMESA Secretariat to undertake a new study to assess the links between Member States and determine if there are any missing links. The COMESA Telecommunication Company (COMTEL) project was started in the late 90s to bridge the gap in access to essential communication and information services in the region. This was expected to unlock the potential of the digital economy for the COMESA region. Its implementation however failed to take off mainly due to lack of potential financiers and lack of interest from key stakeholders.
Republic of Sierra Leone deposits the instrument of ratification of the African Medicines Agency (AMA) (African Union)
The Republic of Sierra Leone becomes the eighth (8th) Member State to deposit the instrument of ratification of the African Medicines Agency (AMA). The ratification and deposit of the instrument follows a high-level engagement between H.E. President Julius Maada Bio of the Republic of Sierra Leone and Honourable Michel Sidibé the African Union Special Envoy for the AMA on May 10, 2021 in Free Town, Sierra Leone. AMA will be the second specialized continental health agency after the Africa Centres for Disease Control and Prevention (Africa CDC) that will enhance capacity of State Parties and AU recognized Regional Economic Communities (RECs), to regulate medical products in order to improve access to quality, safe and efficacious medical products on the continent.
Opportunity for whom: The EU-Africa partnership and sustainable energy transitions (EURACTIV)
A new chapter in the EU’s relationship with the 79 African, Caribbean and Pacific (ACP) countries began in April of this year with the signing of a new EU-OACPS Partnership Agreement (sometimes called Cotonou 2.0 or the post-Cotonou agreement). The announcement has renewed debate around the nature of the EU’s partnership with Africa – particularly around climate change, the environment, and sustainable development, which are a new area of cooperation prioritized by the agreement.
Across Europe, discussions have kicked off on how Africa can benefit from the European Green New Deal by accessing much-needed investment for its sustainable energy transition. These discussions should also touch on how to learn from past development failures, as European nations support African nations’ Green New Deals. Yet, across Africa, there is growing concern that the post-Cotonou agreement fails to recognize the intra-Africa Free Trade Agreement (AfCFTA) as the framework within which the African Union articulates its policies to promote economic growth and sustainable development. In not recognizing AfCFTA, it may be the EU that ends up losing out on an opportunity.
Global
Breakthrough in vaccine patent row as talks progress on WTO rules (Global Trade Review)
Efforts to suspend patent rules for the production of Covid-19 vaccines have taken a significant step forward as the World Trade Organization (WTO) nears negotiations on a potential waiver text. The WTO issued a statement last week saying that its members “moved closer to a text-based process” following a formal meeting of its Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS). If successful, the negotiations would result in a temporary relaxation of WTO rules on intellectual property, allowing companies around the world to manufacture their own versions of existing Covid-19 vaccines, rather than rely on the output of major producers such as Pfizer, Moderna or AstraZeneca.
Can WTO talks revive global FDI? (East Asia Forum)
Advancing global talks on investment facilitation has long been a goal of many governments in the Asia Pacific. During its G20 presidency in 2016, China gave the matter renewed priority. Since the 11th WTO Ministerial Conference in December 2017, diplomats in Geneva have been negotiating a multilateral framework for investment facilitation. These talks have advanced far enough that an ‘Easter text’ was circulated among negotiators this year. But even if a large enough fraction of the WTO membership signed this deal, would it make a difference? To answer this question, we must consider what’s not included in the proposed multilateral framework text and the current state of global foreign direct investment (FDI) dynamics.
Innovation is needed across the entire spectrum of value chains in the world’s agri-food systems in order to respond to the two big challenges of climate change and hunger, QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) said at a high level round table. “We have to produce more with less – more quantity, more quality and more diversity. We need to move from biodiversity to food diversity,” the Director-General said at the event, held at the end of the first day of the 42nd Session of the FAO Conference on Monday.
Make renewables a key performance indicator in all economic activities (REN21)
2020 could have been a gamechanger. Economies worldwide were ravaged by the COVID-19 pandemic. Primary energy demand fell by 4%. But even with this historic decline, G20 countries, the planet’s biggest polluters, barely met or even missed their unambitious renewable energy targets. But the benefits of renewables in terms of health, climate and job creation are indisputable. REN21’s Renewables 2021 Global Status Report published today shows that we are nowhere near the necessary paradigm shift towards a clean, healthier and more equitable energy future.
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SA on track to harvest record soya bean crop (Farmer’s Weekly)
The current spike in soya bean production is good news for South Africa since it will mean that significantly less of the commodity will need to be imported. Local processing facilities will also benefit from the growing production, as higher volumes would reduce processing cost per unit, agricultural economist Dr Johan Willemse told Farmer’s Weekly. He ascribed the increase in the number of hectares being planted to improved cultivars that made expansion in the western summer grain production areas possible. This trend was expected to continue over the next few years. “According to [the Bureau for Food and Agricultural Policy’s] 2020 baseline report, soya bean production is projected to exceed 2,2 million tons by 2029, supported by continued area expansion and an average yield growth of about 4% annually,” Ikageng Maluleke, Grain SA economist, said in a statement.
Millers close, offload staff as imports rise (The Standard)
Zimbabwe’s milling industry has hit turbulent times, amid revelations that some companies have suspended operations after a flood of cheap imported mealie-meal pushed them to the brink, it has been revealed. The glut of imports, mostly from South African suppliers, has continued even after government announced a ban on foreign shipments recently to protect domestic millers. Announcing the ban, government also said Zimbabwe had produced enough maize for the domestic market during the 2020/2021 agricultural season.
Bus operators seal massive deal (The Standard)
A consortium of local bus operators has partnered with car assemblers – AVM Africa and Quest Motors to start the assembling of local buses in a bid to solve the country’s transport woes. This is part of the government’s efforts to promote the consumption of local products and create employment. Speaking during the signing ceremony of a memorandum of understanding between Amalgamated Bus Operators of Zimbabwe, bus assembler AVM Africa and Quest Motors, a vehicle manufacturing company based in the eastern city of Mutare, Transport deputy minister Mike Madiro said the move was aimed at supporting local industries by government and would boost the economy. “We, as government, should support local industries in our vehicle sourcing and also in bus manufacturing. We will see more of this happening over time,” Madiro said.
Rail road corridor provides window of opportunity (The New Dawn Liberia)
Liberia’s Mines and Energy Minister Gesler E. Murray, has described the rail corridor project with neighboring Guinea as a new window of opportunity for both sides. Minister Murray made those comments over the weekend at the closure of three days inter-ministerial conference held between Liberia and Guinea in Monrovia. The conference held under a win-win expectation focused on a US$20 billion railroad project that will allow ores from Guinea transported thru Liberia for exportation to bring economic benefits, including jobs, infrastructure, and collaboration. “This railroad system will witness a phenomenal growth in the sources of economics if the implementation agreement goes forth.”
Zim targets growing exports to Rwanda (The Herald)
Zimbabwe is keen on growing its exports to Rwanda with market survey results by the national export promotion agency, ZimTrade, indicating that locals could ride on this destination to generate more earnings. “The services sector is a big deal in Rwanda and the opportunities there are endless. There is tourism also, as well as the education sector because Rwanda is looking for many programmes with Zimbabwe to come into its education sector,” ZimTrade export promotion manager, Mrs Vuyiswa Mafu, told the participants. “Zimbabwean companies will develop strategies to penetrate the Rwandan market and establishing new export supply chains. “These strategies may include, but are not limited to, supply partnerships, investments opportunities, diversification opportunities, promotional events, establishing wholesaler/distributor agreements, exhibitions, trade fairs and trade missions.’’
Ghana, Kenya to facilitate inter-regional trade (GhanaWeb)
Mr. Charles Kilonzo, a Member of the National Assembly of Kenya says Ghana and Kenya can lead to the promotion of trade among African countries. He said both countries strongly backed the Africa Continental Free Trade Area Agreement (AfCFTA), shared development aspirations, and were the best set to take the drive towards regional integration. Mr Kilonzo said: “We are assessing challenges of the business communities, and committed to removing obstacles to change the fortunes of our people. He explained that there were unemployment and poverty in both countries despite so many resources and was easier for both countries to help improve intra continental trade, create employment for everyone on the continent, and called for a change of mindset, which must be advocated by leaders on the continent.
Kenyan mangoes face stiff Egypt competition (Business Daily)
Kenya’s mangoes to the Middle East is facing steep competition from the Egyptian produce because of the low cost of shipping from Cairo to Dubai and Qatar when compared with high cost that Kenyan exporters have to incur. Egypt’s proximity to middle-eastern countries, where Kenya is at the moment exporting the bulk of its mangoes, enjoys low cost of exporting the commodity with a kilo going at Sh32 by ship when compared with a Kenyan exporter who has to part with Sh108 for the same quantity. Egypt has the advantage of the sea, which makes the cost cheaper, when compared with Kenya which has to export by air for the fruits to arrive when they are still fresh. Exports of mangoes from Kenya to Mombasa by sea take at least eight days to arrive, making it difficult to ship through the Port of Mombasa because of the long duration. Almost 90 percent of the Kenyan fruits are exported by air, making them expensive in the middle-east.
IMF, World Bank’s loans to Kenya ease costly debt burden (Business Daily)
Access to International Monetary Fund (IMF) and World Bank loans has helped Kenya reduce its exposure to commercial debt, easing repayment pressure at a time Covid-19 has hit the country’s coffers and exposed debt vulnerabilities. A debt review by the IMF shows that Kenya’s multilateral lender loans increased from $10.2 billion in 2019 to $13.7 billion in 2020, growing their share of Kenyan external debt from 33.4 percent to 39.7 percent within the period. On the other hand, the proportion of commercial debt has reduced from 33.1 percent ($10.2 billion) to 25.9 percent ($8.9 billion). “On debt, the authorities are pursuing a financing strategy that balances domestic and external financing and utilises concessional financing where available. They are also taking steps to extend the maturity of domestic debt,” IMF Executive Director, Ita Mary Mannathoko said.
Kenyan airports join carbon emissions plan (Business Daily)
Jomo Kenyatta, Moi, Kisumu, Eldoret international airports have joined the Airport Carbon Accreditation Programme, committing the facilities to reduce their carbon emissions into the environment. The facilities managed by the Kenya Airports Authority (KAA) become the first airports in East and Central Africa to join the programme, achieving Level One “Mapping” accreditation. “Reducing the effects of our operations on the environment is an important goal for us. It is our responsibility to future generations to engage in efforts that counter climate change,” said KAA acting managing director Alex Gitari in a statement yesterday. “This accreditation is an important step in the right direction for our main airports, as the Airport Carbon Accreditation programme provides a framework to optimize and, eventually, minimize emissions.”
Sugar export earnings edge up by 39% – BoU report (Daily Monitor)
Uganda’s sugar exports recovered to levels it was two years ago, after suffering near rejection from all the neighbouring countries due to trade wars. Bank of Uganda’s latest monthly statistics show that in April, the country exported sugar worth $12.94million (Shs45.9b), up from $7.89million (Shs28b) earned in March. This performance indicated a 39 per cent increase and the highest since September 2018 when the country recorded $12.05m (Shs42b). The BoU report shows that Uganda exported a total of 23,185 metric tonnes up from 13,719 tonnes exported in March. This was higher than 6,585 metric tonnes – the lowest the country exported in November 2020. Much as there was an increase in the exports, it still insufficient compared to the stockpile.
Mwanza should be trade hub: Samia (The Citizen)
President Samia Suluhu Hassan yesterday outlined the government’s major plans to make Mwanza a trade hub within the Great Lake Regions. The move will come after completing implementation of infrastructure development including the Standard Gauge Railway (SGR), construction of an airport terminal in the city as well as strengthened marine transport in Lake Victoria.
E-navigation support for Ghana’s maritime sector (Developing Telecoms)
As part of what is described as an ambitious plan to strengthen Ghana as a maritime forerunner in West Africa, the Ghana Maritime Authority and Danish commercial satellite operator Sternula have announced a new partnership involving e-navigation connectivity. The agreement is part of a strategic sector cooperation between Danish and Ghanaian maritime authorities and is aimed at strengthening the maritime sector in Ghana and West Africa. As one of Africa’s leading seafaring nations, Ghana is attracting more and more merchant traffic in and around the country’s largest ports (Sternula points out that almost 90 percent of West Africa’s trade is handled at sea). Therefore, it has become relevant for government to integrate new technology to improve the safety – as well as the efficiency – of maritime trade and transport along the Ghanaian coast.
ECA supports DRC to organize workshop to validate its national AfCFTA implementation strategy (UNECA)
The Economic Commission for Africa (ECA) and the Democratic Republic of Congo’s Ministry of Foreign Trade, with the financial support of the European Union (EU), will be hosting a workshop from 17 June to 18 June to validate the country’s national African Continental Free Trade (AfCFTA) implementation strategy. The DRC, which shares borders with nine countries, offers the prospect of generating higher value-added processing opportunities for its more than 85 million people from its vast resources. Although it signed the agreement establishing the AfCFTA in March 2018, DRC has not yet deposited its instruments of ratification with the African Union (AU).
Egypt sees 25.2% decrease in trade deficit in March 2021: CAPMAS (Daily News Egypt)
Egypt’s trade deficit recorded $2.69bn during March 2021, compared to $3.59bn for the same month of the previous year, a decrease of 25.2%. The Central Agency for Public Mobilization and Statistics (CAPMAS) issued, on Sunday, its monthly bulletin of foreign trade data for March 2021. According to CAPMAS, the value of exports increased by 43.5%, reaching $3.41bn during March 2021, compared to $2.38bn in the previous year. This was driven by the increase in the value of exports of some commodities, the most important of which are: medicines and pharmaceutical preparations, which increased by 54.2%; ready-made clothes, which increased by 49.3%; pasta and miscellaneous food preparations, which increased by 18.4%; and potatoes, which increased by 1.1%.
Egypt’s chemical, fertilisers exports surge by 30% in 4 months (Daily News Egypt)
Egypt’s Chemical and Fertilizers Export Council has reported that the sector’s exports during the first four months (4M) of 2021, covering the period from January to April, amounted to $1,95bn. This reflected a growth rate of 30% compared to the same period in 2020, which saw growth amounting to $1,496bn. Khaled Abu Al-Makarem, Chairperson of the Chemical and Fertilizers Export Council, said that there was a growth in exports performance of most commodity items in the sector during 4M of 2021. Exports of plastics and plastic products achieved an 80% growth rate compared to the same period in 2020. Additionally, organic chemical products achieved growth of 62% during 4M of 2021, compared to the same period of 2020.
Egypt’s PM meets with tourism investors in Sharm El-Sheikh ahead of IPAs Africa Forum (EgyptToday)
Egypt’s Prime Minister Mostafa Madbouli met on Thursday with tourism investors in Sharm El-Sheikh city, ahead of the first forum of the heads of African investment promotion agencies (IPAs) scheduled for June 11-14. The meeting was attended by Minister of Tourism and Antiquities Khaled El-Enani. The forum comes under the slogan “Integration for Growth.” It is organized by the General Agency for Investment (GAFI) under the auspices of the Cabinet. Chairman of GAFI Mohamed Abdel Wahab stated that a number of MoUs will be signed between the authority and a number of its African counterparts on the sidelines. The Egyptian official added that GAFI is ready to provide technical support, experience, and information to fellow African investment authorities empowering them to face the repercussions of COVID-19 pandemic on investment inflow.
Africa
The African Continental Free Trade Area: what’s the role for IP? (Inventa International)
IP rights feature prominently in the treaty establishing AfCFTA. First, in article 4 of the agreement, it is established that one of the specific objectives of the agreement will be to make the member states cooperate, among other areas, in the field of IP. IP features seven more times throughout the text, which underlines the importance of establishing a set of IP rules which are clear, transparent, predictable, and mutually advantageous to the member states. There remains, however, some uncertainty as to how the integration of IP rights will be achieved in practice. As we know, IP rights, despite being ubiquitous, immaterial goods are, to a large extent, subject to the principle of territoriality. This means that it remains up to the states to decide whether or not to grant protection, which would not necessarily apply beyond the borders of the state in question. However, we have already seen the development of regional agreements that complement or supplant the power of states in these matters, granting IP rights that have legal effects in several territories.
AU banks on Tanger Med Port to achieve CFTA objectives (The North Africa Post)
The African Union, AU, is counting on the Moroccan Tanger Med Port to achieve the logistics integration of the continent, a key objective of African Continental Free Trade Area agreement CFTA. Tanger Med Port is awash with opportunities for the continent, said Wamkele Mene, Secretary General of the CFTA Secretariat. Speaking during a recent online conference organized by Tanger Med Special Agency (TMSA) and the Moroccan Exporters’ Association (ASMEX) under the topic “New logistics ambitions for Moroccan exports”, Wamkele Mene said the Moroccan global logistics hub will contribute to the improvement of Moroccan competitiveness and African logistics integration. “Logistics and distribution services are really the key to boosting intra-African trade,” Mene insisted. “Goods could be transported by sea, reducing the cost of trade on the continent,” he added.
Transformational investing a challenge for developing nations – investment panel (Engineering News)
Africa presents a unique case for the type of transformational investing that is required for sustainability, to meet the United Nations’ Sustainable Development Goals (SDGs) and to achieve net-zero carbon emissions by 2050, according to panellists participating in a Sanlam Investments Forum on June 14. Harvard Business School representative Euvin Naidoo, speaking in his personal capacity, said that the world appeared to be behind on its ambitions to reach and meet some of the SDGs and that tough changes would need to be made. Changing people’s behaviour is what is fundamentally required on both a national and individual basis to ensure current and future investments go into the type of projects that will advance the SDGs and environment, social and governance upliftment, he added.
African experts call for innovative financing to boost green transition (Xinhua)
Sub-Saharan African countries should explore innovative financing models to promote climate resilience for communities and their natural habitats, experts said Monday ahead of Africa Climate Week that starts Tuesday. The climate experts and policymakers who spoke at a virtual forum said that Africa’s green aspirations can be realized, subject to robust financing, friendly regulations and technology transfer. Fatima Denton, director of the Ghana-based Institute for Natural Resources in Africa with United Nations University (UNU-IRNA), said the continent required smart investments and revamped policies to hasten green recovery. “Africa should leverage new financing and policy tools to strengthen adaptation to climate change and hasten green and inclusive recovery from COVID-19 pandemic,” said Denton.
EABC: Harmonize tax laws to ease integration (IPP Media)
The EAC private sector apex body engaged a number of chief executive officers at the weekend in Dar es Salaam to a round table with the Minister for Foreign Affairs and East African Cooperation, Liberata Mulamula where taxation was identified as an impediment to regional business integration. The EABC in collaboration with the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA) and the Confederation of Tanzania Industries (CTI) organized the meeting to present a documentation of challenges to EAC business integration, on the basis of a thorough study. The study set out to propose what should be done by the member state governments for easier business interaction among the member states, thus expecting to accumulate strength and guaranteeing ability to compete on the African and global commercial fronts, EAC Secretary General Dr Peter Mathuki stated.
Building Sustainable and Resilient Supply Chains in Africa (Kenya Broadcasting Corporation)
At a time when substantial progress is being made in grasping the dynamics of COVID-19 and in managing the pandemic’s adverse impacts, we can easily become complacent and underestimate the increasing barriers to global trade and economic growth. In 2020, the International Monetary Fund (IMF) forecasted a 3.3 per cent contraction in Sub-Saharan Africa, the first recession in 25 years. COVID-19 shed light on the weak status of African supply and value chains.
Truly sustainable supply chains embrace socially responsible business practices as they continue to be the most important levers for business to create a positive impact in the world. By working together, buyers and suppliers in supply chains and networks can promote human rights including labour rights, climate resilience, environmental conservation, inclusive economic growth and ethical business conduct.
Intra-Africa trade: Rwandan minister roots for standards harmonisation (The New Times)
Mandatory national regulations on health, safety, and the environment, as well as market-driven standards might undermine free movement of goods and services on the continent, Rwanda’s Minister for Trade and Industry has warned. Béata Habyarimana was speaking in Kigali during the opening of a two-day meeting of the Council for the African Organisation for Standardisation (ARSO) on Monday, June 14, The meeting is part of a four-day series of physical and hybrid ARSO General Assembly events, running under theme, “The Beginning of Trade Among the African Countries under the AfCFTA Agreement: Boosting Intra-African Trade Within the African Single Market through ‘One Standard – One Test – One Certificate – Accepted Everywhere.”
“Africa stands in a unique position to reap the benefits of economic growth as a dynamic, diversified and competitive economic zone, a new economic frontier, and an important growth pole,” she noted. The trade minister added: “This requires transformation of African countries into locations of competitive
Bank drives Africa auto sector (The Southern Times)
The African Export-Import Bank (Afreximbank) says it will work with the African Organisation for Standardisation (ARSO) to boost the continent’s nascent automotive sector. Harmonised standards are to be adopted by individual African countries. “There are 1,432 international automotive standards worldwide largely developed by the International Organisation for Standardisation and the American Society for Testing and Materials. To initiate the process of developing African Automotive standards, ARSO prioritised what are referred to as ‘Whole Vehicle Standards’ encompassing motor vehicle components, accessories, and replacement parts. “It is anticipated that some 250 standards will need to be harmonised based on the basic components, accessories and replacement parts which are necessary to keep a vehicle safe and operational.”
Debt servicing to cost East Africans Sh46.4 trillion (The Citizen)
The major member countries of the East African Community (EAC) will feel the pinch of their growing debt burdens during the coming financial year which starts on July 1, 2021. Analysis of budget figures shows that Tanzania, Kenya and Uganda could have to cough up a total of Sh47 trillion in debt financing during the 2021/22 financial year. While Tanzania has been somewhat conservative in its approach to borrowing, reports show that the situation could be getting out of hand for Kenya, while Uganda’s debt is approaching the set threshold of 50 percent of gross domestic product (GDP).
What would it take to produce vaccines in Africa? (The New Times)
Currently, Africa’s existing vaccine market is estimated at $1.3 billion and is expected to exceed the $2 billion mark by 2030 on the back of population growth, expanded vaccination and new products being developed in response to new viruses. However, Vaccine development and manufacturing on the continent remains at infancy with the African Vaccine Manufacturing Initiative (AVMI) estimating that the continent currently produce less than 1 per cent of its vaccine needs. The outbreak of COVID-19 and the demand for vaccines has highlighted the fragility of the African health system, not only from a manufacturing perspective but also in relation to procurement. The report noted that currently, there is very limited manufacturing capacity of vaccines in Africa with only seven countries having small vaccine production, notably focused on filling and finishing lines.
The President of the World Bank, Mr David Malpass, and his senior management team comprised of Dr Axel van Trotsenburg and Dr Makhtar Diop met with the African Union’s COVID-19 Vaccine Acquisition Task Team (AVATT) to discuss modalities for a partnership that will accelerate vaccine deployment to Africa. In a historic COVID-19 vaccine procurement agreement signed on 28 March 2021, the AVATT had previously successfully secured up to 400 million doses of the Johnson and Johnson single-shot COVID-19 vaccine with the support of the African Export-Import Bank (Afreximbank). “In providing a US$2billion guarantee on behalf of the African Union member states, we were able to help put Africa in a strong negotiating position with producers as we negotiated vaccine procurement. It was obvious to us at AVATT that no deal will have been possible without a strong financial backing” the President of Afreximbank, Prof Benedict Oramah said.
With over 41 countries at different stages of finalising their orders for purchasing the vaccine and with vaccination momentum growing, it is essential that countries feel they can get sufficient doses quickly and in an affordable way.
Republic of Burundi signs the Treaty for the establishment of the African Medicines Agency (AMA) (African Union)
The Republic of Burundi becomes the twentieth (20th) African Union (AU) Member State to sign the Treaty for the establishment of the African Medicines Agency (AMA) on 11 June 2021, at the AU Commission in Addis Ababa, Ethiopia. Mme Cisse Mariam Mohamed, the Director, Health, Humanitarian Affairs & Social Development (HHS), received the delegation from the Republic of Burundi. She underscored that AMA shall be instrumental in ensuring the continent has not only a strong medicines regulatory agency but also it shall promote local manufacturing of pharmaceutical products on the continent. “As evidenced by the challenges Africa is facing in accessing the COVID-19 vaccine, it is the high time that we come together as a continent to fast track the ratification of AMA in order to have an African Pharmaceutical Industry that provides safe and affordable medicines,” she said.
Eight COMESA Countries have Signed the Air Transport Market Agreement (COMESA)
Eight COMESA countries have so far signed the Solemn Commitment for the establishment of the Single African Air Transport Market (SAATM). These are the Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Rwanda, Eswatini, Zambia and Zimbabwe. This initiative is led by the African Union through the African Civil Aviation Commission (AFCAC). In their 12th joint meeting on June 2, 2021, the Ministers called on member States to harmonize and domesticate regional transport policies. They urged for adoption and application of regional transport transit facilitation instruments and the economic regulations and consumer protection guidelines developed by the AUC through AFCAC.
Air transport liberalization, with respect to improved air transport services and lower fares brought forth immense economic and financial benefits, noted the Ministers. A study by the International Air Transport Association in 2014 on 12 sample African countries identified fare savings, greater connectivity, time savings, greater convenience, and the positive impact on other sectors of the economy once the liberalization programme is implemented.
56% of CEOs In Africa Are Extremely Concerned About Tax Policy Uncertainty (Proshare Nigeria)
CEOs in Africa are more confident in their own company’s revenue prospects and the strength of the global economy than they were in 2020. However, they have concerns about government policy, cybersecurity, technology, and people. These are some of the insights shared at the virtual media launch of the 8th edition of PwC’s Africa Business Agenda 2021 report. “In the light of the concerns that Africa’s CEOs have on policy uncertainty, tax policy uncertainty, cyber threats, and over-regulation, this is an opportunity for African business leaders to reimagine every aspect of their operating model. Further, companies and countries in West Africa should take advantage of the Africa Continental Free Trade Area (AfCFTA) Agreement, which came into force on 1 January 2021, to drive growth and bolster their economies through increased continental trade.”
World Bank Group Steps Up Support to Deepen Regional Integration in Africa (World Bank)
The World Bank Group has updated its approach to help strengthen regional integration in Africa. This reinforces the institution’s support to help the continent recover from the COVID-19 pandemic and realize its economic transformation through 2021-2023. Titled “Supporting Africa’s Recovery and Economic Transformation”, the updated Regional Integration and Cooperation Assistance Strategy (RICAS 2021-2023) will support greater regional connectivity in the areas of transport, energy and digital infrastructure. It will also promote trade and market integration through trade facilitation in regional economic corridors, technical assistance for roll out of the AfCFTA, support to regional value chains and integration of financial markets.
Opinion: Don’t repeat Trump’s mistake on trade with African nations (Devex)
U.S. President Joe Biden has been right about much of his evolving policy toward sub-Saharan Africa. He has rescinded travel restrictions implemented under his predecessor, reengaged with the World Health Organization, rejoined the Paris Agreement, and directed his diplomats to focus on the conflict in Ethiopia, among other measures. Unfortunately, the Biden administration is at risk of getting it wrong on trade and investment with the region. Like former U.S. President Donald Trump, Biden’s administration appears resistant to the idea of a sectoral focus for the Prosper Africa initiative, which aims to significantly increase two-way trade and investment between the United States and African nations.
To truly unlock trade and investment with Africa, U.S. commercial policy should target specific sectors. The Biden administration can then showcase where the most attractive opportunities reside and signal the importance of African markets. If Prosper Africa were to adopt a sectoral focus, it could inject excitement about potential investments through industry-specific communications and outreach.
Global
Green goals should be decoupled from trade, says Goyal (BusinessLine)
Trade policies and green goals need to be decoupled and developed countries should not use the interplay of trade and climate change to create hindrances in the path to prosperity for poor and lesser developed countries, Commerce & Industry Minister Piyush Goyal said at the ‘UN Trade Forum 2021’ on Monday. WTO Director General Ngozi Okonja-Iweala agreed with Goyal that positive support to environmental goods and services should not be used as a barrier to trade but said that tariffs needed to be brought into sync with what is happening in the environment today.
Instead of trade measures, the UN and other multilateral agencies like UNFCC should focus on bringing the world together to fulfil their commitments towards climate change. “So I do believe we have to decouple trade policies and our green goals. Let trade policy look for more inclusive growth all over the world. Let us all work towards climate justice and sustainable lifestyle,” he added.
The G7 DFIs, the IFC, the private sector arm of the African Development Bank, EBRD and the European Investment Bank today announced that they were committed to investing $80 billion in the private sector over the next five years to support sustainable economic recovery and growth in Africa. The Covid-19 pandemic has caused a severe global economic and health crisis. The announcement is a welcome boost to support the long-term development objectives of African economies that have been negatively impacted by the crisis. It is the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent.
G7 infrastructure plan can hardly rival BRI (Global Times)
With eyes fixated on China, the just concluded G7 summit in the UK announced an infrastructure plan, aiming to rival the Belt and Road Initiative (BRI) adopted and implemented by China. Though it was entitled as a “Build Back Better World” (B3W) initiative, experts pointed out that it is naïve for anyone to believe that the G7 plan would ever come into existence. Without any detail revealed about how the plan will work, the B3W initiative was said to “provide a transparent infrastructure partnership to help narrow the $40 trillion needed by developing nations by 2035,” the Reuters reported, citing the White House.
“Taking the African countries as an example, they have been facing an annual infrastructure investment shortfall of $108 billion. The shortfall has long become a major barrier for the development of the continent, and why didn’t the G7 realize the demand earlier?” asked Song Wei, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation. The $40 trillion offer to “narrow the need by developing nations” by 2035 in the proposal has sparked sarcasm among netizens. It is simply hard to believe that the G7 countries could offer such an amount of money which is more than the combined GDP of the seven countries in 2020, they said.
The crippling impasse over external debt relief (BusinessLine)
When the pandemic first swept across the globe and destroyed economies in its wake, there were at least some expressions of international solidarity among leaders of the rich countries. External debt problems were widely recognised to be inevitable in the new crisis context; to address them, G20 governments declared a Debt Service Suspension Initiative (DSSI) from May 2020, designed to reduce some of the immediate debt repayment burden of the poorest and most vulnerable economies. Yet this – and the subsequent “Common Framework for Debt Treatments” of November 2020 – barely scratched the surface of the problem, and are unlikely to fend off future likely defaults.
How can the “data revolution” work for developing economies? (Trade for Development News)
The creation, use, misuse and control of data is the subject of intense debate today, as it should be. Individuals still ponder how best to manage and protect their personal data, and governments, private businesses and international bodies may have informed data management policies, or none at all. But decisions need to be made in this complicated landscape. And this is especially true for developing countries, which are largely left out of global data discussions but where the right data policies could bring a lot of benefits.
Participants in services regulation talks outline steps taken to implement new disciplines (WTO)
A group of 63 WTO members are currently engaged in negotiations on disciplines which seek to ensure that domestic regulation measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services. With the disciplines, participants seek to promote clear, predictable and transparent procedures for trade in services, while guaranteeing flexibilities to help governments implement the measures domestically and regulate according to their national policy objectives.
The coordinator of the negotiations, Jaime Coghi Arias of Costa Rica, issued a revised “close-to-final” version of the negotiating text in December 2020. He welcomed the participants’ continued “positive engagement and commitment” as they remain committed to achieving an outcome by the 12th Ministerial Conference (MC12), to take place from 30 November to 3 December in Geneva.
A New Era of Digital Money (IMF Finance & Development)
Digital money has the potential to transform the financial sector. Emerging markets and lower-income countries stand to gain the most from this dramatic shift. Broad and inexpensive access to digital money and phone-based transactions could open the door to financial services for 1.7 billion people without traditional bank accounts. And countries may grow increasingly connected, facilitating trade and market integration. The real-world impact is significant. But with any opportunity comes risk. The passage to this new world could exclude those on the other side of the digital divide. It also opens the door to fragmentation, currency substitution, and loss of policy effectiveness. The transition must be well managed, coordinated, and soundly regulated.
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Government and Stakeholders Sign Master Plan for the Steel and Metal Fabrication Sector (the dtic)
The Minister of Trade, Industry and Competition, Ebrahim Patel, along with industry stakeholders from the steel and metal fabrication sector signed a Master Plan for the sector on Friday 11 June 2021. The Master Plan, which has been developed in consultation with all stakeholders from the industry – including primary steel producers, downstream steel players, met fabricators, and organised labour – provides a blueprint for the industry to re-energise itself and expand production. The steel industry plays an important role in South Africa’s industrial capacity, both as a direct driver of growth, investment and jobs, and as indirect facilitator of South Africa’s construction, automotive and mining sectors.
“Learning from the other masterplans that are in implementation phases, there is a long and steep road ahead of us. Building consensus on the steel masterplan and agreeing on the actions to anchor the implementation was a much easier process. The hard-work has started in the implementation and will get even harder as we began to collectively tackle actions that are very difficult but necessary for the long-term development of this industry,” said Minister Patel.
“De-instrutialisation is a choice and we should start to make the choice that we work together to get industrialisation going– the Steel Masterplan offers us one such opportunity to do this together as partners and citizens of South Africa,” said Director-General Mabitje-Thompson.
Let the good news roll: South Africa is finally tilting in the right policy and economic direction (Daily Maverick)
Last week was one of good tidings on the policy and economic front. The economy is growing faster than expected, and some of the initiatives launched last week – the freeing up of self-generation power projects and the lifting off of SAA privatisation – suggest momentum is building to support further growth.
On Tuesday, Statistics South Africa (Stats SA) data showed the economy in the first three months of this year had grown on an annualised quarter-on-quarter basis by 4.6%, exceeding expectations of 3.2% growth. That means that South Africa is a bit wealthier than previously expected, and regaining ground lost to the pandemic faster than expected. To support and sustain growth going forward, a whole lot of policy initiatives must be undertaken. And lo and behold, before the week was over, two big ones were unveiled.
Speaking of exports, the South African Reserve Bank said this past week that South Africa’s terms of trade remained in positive territory and improved for a record seventh straight quarter in Q1 of 2021. More capital is entering South Africa than is leaving these shores. After all the loot the Guptas allegedly made off with, this is no bad thing.
Botswana’s Economic Recovery Efforts Gets $250 Million Boost (World Bank)
Botswana’s efforts to accelerate key economic reforms got a boost following the approval of a $250 million loan by the World Bank today. The Programmatic Economic Resilience and Green Recovery Development Policy Loan (DPL) will support the implementation of Botswana’s Economic Recovery and Transformation Plan and is designed to strengthen COVID-19 pandemic relief while bolstering resilience to future shocks. This DPL is also designed to support reforms to strengthen private sector development and promote green recovery. It is the first-ever World Bank budget support operation for Botswana and the first of two planned operations.
Queries over KRA role in irregular mineral exports (Business Daily)
The taxman is on the spot over irregular exports of gold, gemstones and salt of unknown quantities and value, raising fears the country may have lost revenues. The National Assembly’s Public Accounts Committee (PAC) has given the Kenya Revenue Authority (KRA) Commissioner-General Githii Mburu seven days to provide export permits for 27 entities that exported minerals valued at Sh140,138,850. The committee met Mr Mburu and the Commissioner for Customs and Boarder Control Lilian Nyawanda to explain why firms were allowed to make irregular exports without government permits. Mr Mburu was hard-pressed to explain whether the permits held by the KRA were legally issued by the Ministry of Mining as provided for under the Mining Act 2016.
Taxpayers save Sh5.2bn on Covid-19 travel restrictions (Business Daily)
Taxpayers saved Sh5.21 billion in the nine months to March on travel, training, and per diems for top State officials at the back of restrictions imposed to curb the spread of the coronavirus disease. The latest report from the Controller of Budget (CoB) shows that the top officials spent Sh13.85 billion on their domestic and foreign travel, training, and per diems, a 27 percent fall from Sh19.06 billion spent in the corresponding period the previous year. “Some budget items recorded low levels of expenditure, which was attributed to the impact of Covid -19 mitigation measures adopted by the government to curb the spread of the disease,” Margaret Nyakango, the CoB said. “Those affected were travelling, training and hospitality activities which are some of the major spending budget items by the MDAs (minstries, departments and agencies.”
Zimbabwe targets to hike exports to Rwanda (Chronicle)
Zimbabwe is keen on growing its exports to Rwanda with market survey results by the national export promotion agency, ZimTrade, indicating that locals could ride on this destination to generate more earnings. On Thursday ZimTrade hosted a market intelligence information dissemination seminar focusing on the Rwanda market to prepare and equip local producers with knowledge regarding the vast export opportunities in that country. The intervention buttresses the country’s continued efforts to explore opportunities presented by the African Continental Free Trade Area (AfCFTA), which came into force in January this year. Increasing trade with Rwanda is, thus, expected to enhance access to markets in the East African Community (EAC) and in turn increase Zimbabwe’s exports to the region with a combined GDP of more than US$177 billion. “The services sector is a big deal in Rwanda and the opportunities there are endless. There is tourism also, as well as the education sector because Rwanda is looking for many programmes with Zimbabwe to come into its education sector,” ZimTrade export promotion manager, Mrs Vuyiswa Mafu, told the participants.
Egypt to expand air traffic in Africa after end of pandemic: Aviation Minister (Egypt Independent)
Egyptian Minister of Civil Aviation Mohamed Manar Enaba announced Saturday that his country is preparing to expand air traffic within Africa through national airline EgyptAir in the coming years, following the end of the pandemic. Enaba said that the Egyptian national airline has 36 flight points across the continent, and partnerships have been conducted with many African countries to facilitate the movement of goods through aviation throughout the continent. He explained that the first of these partnerships was with Sudan and South Sudan, and the air cargo fleet has been expanded in a vital step to increase trade movement. The increase in Africa’s share of world trade is linked to the reduction in the cost of aviation between African countries, and the digitization of transport traffic, he noted.
Egypt attentive to achieving regional economic integration in Africa: Trade Minister (Daily News Egypt)
Egypt’s Minister of Trade and Industry Nevine Gamea has said that Egypt pays great importance to achieving regional economic integration in Africa. Gamea highlighted the importance of: activating joint continental work to achieve industrial and agricultural integration; enhance intra-trade; support small- and medium-sized enterprises (SMEs); and create more job opportunities. These contribute to Egypt achieving the UN’s sustainable development goals (SDGs) 2030 at the continental level, and the 2063 development agenda set by the African Union (AU). The minister’s remarks were made at a panel session entitled “Africa’s Pursuit for a Bigger Role in Global Markets”, held as part of the Investment Promotion Agencies (IPAs) Forum.
Drop-shipping: How enterprising Nigerians earn a fortune from selling fashion accessories, others (Nairametrics)
As Nigeria grapples with a high rate of unemployment, some enterprising members of the society are seeking out new ways to earn a living legitimately, and one of such ways is drop-shipping. Oladunni Ayorinde, Chief Executive Officer, Cart Deals, is one of such Nigerians and she is quite popular for her business acumen and leadership skills, especially in the drop-shipping and fashion industry in Nigeria. “The fashion house has shifted from importation to local production using imported fabrics, while the finished products would then be sold via drop-shipping. As the business started growing with support funding from my husband, I resigned from my job and focused fully on the business. At a point, I sold my car and ploughed the money into the business to expand it further,” Oladunni said.
Malawi will have access to immense opportunities in the post-COVID-19 environment despite the accompanying challenges the period will pose, says Stephen Karingi, Director of the Regional Integration and Trade Division of the Economic Commission for Africa (ECA). “In trying to address the challenges caused by the pandemic, there are significant trade and business opportunities. These opportunities are available to Malawi too,” he said. “The key will be to attract, protect and nurture foreign direct investment and industrialization to Malawi whilst at the same time profiting from a more open market for Africa’s population,” said Beatrice Neri on behalf of the EU.
Africa
A2 Global Risk publishes new report assessing the investment risks associated with port infrastructure expansion in Sub-Saharan Africa (GlobeNewswire News Room)
London and Hong Kong-based risk management consultancy A2 Global Risk published a new report assessing the investment risks associated with port infrastructure expansion in Sub-Saharan Africa, against the backdrop of global geopolitical competition. The COVID-19 pandemic and associated restrictions on travel and operations caused unprecedented disruption to international trade and highlighted the risks linked with ageing port infrastructure and regional bottlenecks. Cognisant of such risks, African governments are actively seeking to expand their infrastructure and trade provisions to reduce non-tariff barriers, as part of their efforts to modernise their trade infrastructure, such as airports, seaports, roads, and internet access. International actors active in this space are ramping up their competition for market access amid mounting trade and geopolitical tensions globally.
‘We want Africa’s free trade area to be industrial zone not consumption zone’: AfDB official (Egypttoday)
Deputy Director General of the African Development Bank (AfDB) Group for North Africa and Egypt Country Manager Malinne Blomberg said Sunday in IPAs Africa Forum 1 “we don’t want the [African continental] free trade area to be a consumption zone. We want to be an industrial zone.” Blomberg added that the AfDB supports “the industrial value chains across the continent.”
A new comprehensive, segmented and dynamic framework to inform the formulation of sub-regional and national industrialization and economic diversification masterplans (PDIDE, in French) has taken root in Central Africa, with the aim of turning the zone into a poly-hub for green growth and net-zero industrialization in multiple sectors. “Our proposition within this Framework is not just to show where potential is but to elicit action straightaway, given the abundance of resources which should enable Central Africa to leapfrog the carbon-intense stages of industrialization, which characterized the First Industrial Revolution, and take-off with green industrialization,” remarked Antonio Pedro who heads ECA’s Sub-regional Office for Central Africa. “Central Africa is no doubt the home of the world’s coveted minerals not only for the battery and electric vehicle value chain but also for electronic equipment.
Inside East Africa’s post-Covid 2021/22 recovery budgets (The East African)
East Africa’s Finance ministers on Thursday presented their spending plans for the 2021/2022 fiscal year with a key focus on rebuilding economies ravaged by the Covid-19 pandemic, protecting local industries, keeping jobs and up-scaling investment in infrastructure projects critical to the faltering intra-regional trade. The Treasury chiefs, who tabled the budgets against a backdrop of weakening macroeconomic environment, declining domestic revenue collections and mounting public debt, spelt out temporary taxation measures to protect local industries from cheap imports ahead of the conclusion of the review of the regional Common External Tariff (CET). They also increased budgetary allocations to key growth sectors such as manufacturing, health, tourism, agriculture and transport infrastructure to enhance domestic and regional connectivity.
The ministers proposed changes in the CET for one year to stimulate economic recovery through industrialisation and inclusive growth. They also agreed to continue implementing measures that were effected in the 2020/2021 fiscal year. Other customs taxation measures agreed on include a stay of application of the EAC CET rate of 10 percent and application of a duty rate of 0 percent for one year on wires and alloy steel to reduce the cost of these inputs, and a stay of application of a CET rate of 25 percent and application of a duty rate of 0 percent for one year on milk cans to provide relief for the dairy sub-sector.
Tanzania’s Minister for Foreign Affairs and East African Cooperation, Hon. Amb. Liberata Mulamula, has reaffirmed Tanzania’s commitment to regional integration and enhancing intra-EAC trade. Speaking during a private sector roundtable engagement dinner on EAC regional integration organized by the East African Business Council (EABC) in Dar es Salaam, the Minister said that in the spirit of enhancing intra-regional trade, Tanzania was revitalizing trade relations with her neighbours. “We can all bear witness that the trade issues between Kenya and Tanzania have been addressed, and we are determined to ensure that such challenges do not arise in the future,” said Hon. Mulamula.
President Samia Suluhu Hassan calls for review of EAC legal instruments to reflect current times (EAC)
“The Partner States want value for money, and value for money is results, we have therefore committed ourselves to join efforts to produce the results as expected by the Partner States,” added the Secretary General. Dr. Mathuki briefed the President on the need for the region to devise strategies to enhance intra-EAC trade, which currently stands below 15%, if the region is to realize the vision of a prosperous and competitive East Africa. “Dialogue with the private sector is important to enable us address the various barriers to trade. It is my hope that in the next five years, we shall be recording intra-EAC trade above 50%,” he added.
The Secretary General said that to better facilitate regional trade, there is need for the establishment of the EAC Disputes Settlement Mechanism, as provided for under Article 24 of the EAC Customs Union Protocol to address all matters pertaining to trade, including the Rules of Origin, anti-dumping measures, subsidies and countervailing measures, and safeguard measures.
Mauritius ready to sign SADC Gender Protocol (The Southern Times)
Mauritius is expected to sign the SADC Protocol on Gender and Development soon, a move that signifies the regions commitment to promote gender equality and equity. The SADC Protocol on Gender and Development, which entered into force in 2013 and was later revised in 2016 provides for the empowerment of women, elimination of discrimination, and achievement of gender equality and equity through gender-responsive legislation, policies, programmes and projects. Fourteen SADC member states are party to the protocol, with the exception of Mauritius and the Union of Comoros, which is the newest member of SADC. The SADC Protocol on Gender and Development was revised so that its objectives are aligned to various global targets and emerging issues.
The Secretariat of the Southern African Development Community (SADC) and the Government of the Federal Republic of Germany on 11 June 2021 held bilateral negotiations on development cooperation to take stock and agree on the priorities for future development cooperation. H.E. Dr Tax said the cordial and long-standing bilateral partnership for development that exists between SADC and Germany has contributed to the attainment of SADC development and integration objectives and appealed to the Government of Germany to continue supporting SADC efforts through priorities outlined in the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and the SADC Vision 2050 in order to achieve the desired developmental impact to enhance the living standards of SADC citizens.
While noting the importance of Regional Economic Communities (RECs) as building blocks to continental integration, H.E. Dr Tax encouraged the Government of Germany and other partners to continue working with, and through the RECs to push the continental integration agenda forward. On this note, H.E. Dr Tax emphasised the need to ensure that the support towards the operationalisation of the African Continental Free Trade Area (AfCFTA) should go together with the COMESA-EAC-SADC Tripartite Free Trade Area (TFTA), as the TFTA is an important pillar to the implementation of the AfCFTA.
Huge scope to strengthen textile value chain in West Africa: report (Fibre2Fashion)
With only 2 per cent of the raw cotton grown in West Africa processed regionally, the scope for strengthening the textile value chain is huge in the region, according to a new focus report by London-based Oxford Business Group (OBG), which examines the potential that the West African textile and garment industry to turn a driver of sustainable growth and major employer across the Economic Community of West African States (ECOWAS). “While West Africa is the world’s sixth-largest cotton grower, 90% of the raw product is exported to Asia to be made into finished goods,” says Bernardo Bruzzone, Africa regional editor for OBG.
Is West Africa the focus region for Export Credit Agency-supported financing? (Business Day)
Export credit agency (ECA) finance is an important lever for infrastructural development in West Africa. According to deal intelligence platform TXF Data, Africa was the second-most active region globally in 2020 for ECA-supported financing, with more than $35.5bn worth of ECA-supported debt. The success of an ECA project can be narrowed down to three factors: government involvement, digitisation and direct financing. This was one of the topics discussed at the GTR West Africa 2021 Virtual Conference, held earlier this year.
Underserved Communities To Gain Grid Access As World Bank Offers $465m (LEADERSHIP)
The World Bank Group said it is extending $465 million to support the Economic Community of West African States (ECOWAS) expand access to grid electricity to over 1 million people. The fund will help the subregion enhance power system stability for another 3.5 million people, and increase renewable energy integration in the West Africa Power Pool (WAPP). The new regional electricity access and Battery-Energy Storage Technologies (BEST) project -approved by the World Bank Group for a total amount of $465 million- will increase grid connections in fragile areas of the Sahel, build the capacity of the ECOWAS Regional Electricity Regulatory Authority (ERERA), and strengthen the WAPP’s network operation with battery-energy storage technologies infrastructure.
Global
Export restrictions do not help fight COVID-19 (UNCTAD)
Many are eyeing the G7 countries, who are set to meet in June, to lead the way to vaccine equity. But two questions persist: why are vaccines not reaching everyone? And what can we do about it? As the pharmaceutical powerhouse of the world and a key supplier of the COVAX initiative, India was poised to help a great number of developing and least developed countries by supplying COVID vaccines. However, facing a catastrophic second wave itself, it has not only stopped exporting vaccines, but is now beginning to import them. The implications of this could be severe, particularly for poorer countries that were depending on India. The ripple effects would hit the most vulnerable countries the hardest, leaving them behind in the respective vaccination drives.
The production of vaccines is highly concentrated, mainly in a small number of higher and middle-income countries. The necessary raw materials, too, are imported from only a handful of countries. The two top exporters of key ingredients, for instance, are the US and the EU – which account for half of total exports – followed by the UK, Japan and China, with significantly smaller shares. This implies that restrictions on exports of vaccines or other critical raw material and equipment by even one or two countries can easily send shockwaves through the rest of the world, derailing the entire vaccine production and distribution effort, as we see at present. Export restrictions are not exclusive to vaccines. Over 80 countries had resorted to banning exports of medical and personal protective goods in the early phases of the pandemic. This too had severe supply chain implications. Nearly 60% of these curbs are still in place.
2021 G7 Leaders’ communiqué: Our shared agenda for global action to build back better (EUROPA)
We, the leaders of the Group of Seven, met in Cornwall on 11-13 June 2021 determined to beat COVID-19 and build back better. We remembered everyone who has been lost to the pandemic and paid tribute to those still striving to overcome it. Inspired by their example of collaboration and determination, we gathered united by the principle that brought us together originally, that shared beliefs and shared responsibilities are the bedrock of leadership and prosperity. Guided by this, our enduring ideals as free open societies and democracies, and by our commitment to multilateralism, we have agreed a shared G7 agenda for global action to:
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End the pandemic and prepare for the future by driving an intensified international effort, starting immediately, to vaccinate the world by getting as many safe vaccines to as many people as possible as fast as possible.
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Reinvigorate our economies by advancing recovery plans that build on the $12 trillion of support we have put in place during the pandemic.
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Secure our future prosperity by championing freer, fairer trade within a reformed trading system, a more resilient global economy, and a fairer global tax system that reverses the race to the bottom
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Protect our planet by supporting a green revolution that creates jobs, cuts emissions and seeks to limit the rise in global temperatures to 1.5 degrees.
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Strengthen our partnerships with others around the world.
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Embrace our values as an enduring foundation for success in an ever changing world.
We shall seek to advance this open agenda in collaboration with other countries and within the multilateral rules-based system. In particular, we look forward to working alongside our G20 partners and with all relevant International Organisations to secure a cleaner, greener, freer, fairer and safer future for our people and planet.
G7 final communique calls for new COVID origin probe, pledges 1 billion vaccines – as it happened (DW)
Criticism from health and environment campaigners followed the release of the final G7 communique. “This G7 summit will live on in infamy,” said Max Lawson, the head of inequality policy at international aid group Oxfam. “Faced with the biggest health emergency in a century and a climate catastrophe that is destroying our planet, they have completely failed to meet the challenges of our times.” Campaigners also complained that the G7 failed to go into details about how it will pay for a newly agreed “Nature Compact” – aimed to protect 30% of the world’s land and oceans from further destruction by 2030.
Additionally, the 1 billion coronavirus vaccine doses for poorer countries falls far short of the 11 billion doses the World Health Organization said is needed to vaccinate at least 70% of the world’s population and truly end the pandemic.
President Ramaphosa champions vaccine equity at G7 (SAnews)
“To successfully contain a virus of this nature, to limit loss of life and to prevent the emergence of new variants requires that as many of the world’s population is vaccinated in the shortest time possible,” President Ramaphosa said. “Since its formation a year ago, the ACT-Accelerator has supported more than 70 countries to expand lab infrastructure for testing and delivered millions of rapid diagnostic tests; accelerated development and production of vaccines; delivered more than 69 million doses since February 2021; and procured PPE (personal protective equipment) with a value of more than US$ 500 million,” he said.
He noted that the proposed Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver is a temporary, targeted and proportional response, which recognises the unprecedented nature of the pandemic. “Addressing the intellectual property barriers, enabling the transfer of technology and know-how, whilst facilitating backward integration to raw materials and distribution rights, is fundamental for scaling up manufacturing of medical products and equipment.
Members discuss COVID-19, climate change, digital issues at review of standards agreement (WTO)
At a meeting of the Committee on Technical Barriers to Trade (TBT) on 2-4 and 9 June, WTO members discussed 20 proposals submitted under the Triennial Review of the TBT Agreement. The review will now move to a second phase, with the preparation of a draft report based on the 31 proposals received. The aim is to develop a set of recommendations by year-end on how to improve implementation of the Agreement. Members also discussed 86 specific trade concerns covering environmental products, food and other issues.
The proposals submitted by WTO members address various issues, with transparency featuring strongly across many members’ proposals. Other areas include conformity assessment, accreditation policies, the impact of standards on micro, small, and medium-sized enterprises (MSMEs), e-commerce and online shopping, cybersecurity and digital products (including artificial intelligence), the use of international standards for food regulation, lessons learned from COVID-19, and climate change.
Banking on Protected Areas: Promoting Sustainable Protected Area Tourism to Benefit Local Communities (World Bank)
The conservation of biodiversity matters because of its intrinsic worth, and because ecosystem services, which depend upon biodiversity, underpin human wellbeing, and support economic activity in a range of sectors. Our survival is, finally, impossible without intact natural landscapes and seascapes. At the same time, the COVID-19 pandemic has led to a deep global recession, impeding the growth of the tourism which is the largest market-based source of finance for protected areas and jeopardizing conservation efforts worldwide. These intersecting calamities – a pandemic in a time of biodiversity loss – call for a response which speaks to both crises, addressing economic losses and promoting recovery through actions which simultaneously support biodiversity conservation.
The recently launched Banking on Protected Areas: Promoting Sustainable Protected Area Tourism to Benefit Local Economies makes a call to promote sustainable tourism in protected areas to recover from the economic fallout of the pandemic, address longstanding development challenges, and conserve biodiversity.
Food systems offer huge opportunities to cut emissions, study finds (EurekAlert)
A new global analysis says that greenhouse-gas emissions from food systems have long been systematically underestimated--and points to major opportunities to cut them. The authors estimate that activities connected to food production and consumption produced the equivalent of 16 billion metric tons of carbon dioxide in 2018 – one third of the human-produced total, and an 8 percent increase since 1990. A companion policy paper highlights the need to integrate research with efforts to reduce emissions. The papers, developed jointly by the UN Food and Agriculture Organization, NASA, New York University and experts at Columbia University, are part of a special issue of Environmental Research Letters on sustainable food systems. The lead author of the analysis, Francesco Tubiello, heads the environment statistics unit at FAO. He said the study shows that food production represents a “larger greenhouse-gas mitigation opportunity than previously estimated, and one that cannot be ignored in efforts to achieve the Paris Agreement goals.”
New Initiatives in Southern Hemisphere Fresh Fruit (Produce Business UK)
The Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) was founded in the early 1990’s from the leading trade organisations from Australia, Argentina, Brazil, Chile, New Zealand, Peru, South Africa and Uruguay. The idea was to form a common platform for exchange on the most crucial market access matters in Northern Hemisphere markets, including phytosanitary protocols, food safety, consumption, and trade trends. With the digital era kicking in – accelerated by the current pandemic conditions and in the context of an increasingly more complex global trading environment – SHAFFE members took the initiative of focusing on strengthening cooperation far beyond the existing way of going about the association’s usual business. Hence its members developed a strategic plan of action with the objective of connecting the Southern Hemisphere’s fresh fruit industry through knowledge-sharing, facilitating market access and promoting global fruit trade.
Turning to sustainable global business: 5 things to know about the circular economy (UN News)
Unless we make some major adjustments to the way the planet is run, many observers believe that business as usual puts us on a path to catastrophe. Whilst there is no universally agreed definition of a circular economy, the 2019 United Nations Environment Assembly, the UN’s flagship environment conference, described it as a model in which products and materials are “designed in such a way that they can be reused, remanufactured, recycled or recovered and thus maintained in the economy for as long as possible”.
Increasingly, in both the developed and the developing world, consumers are embracing the ideas behind the circular economy, and companies are realising that they can make money from it. “Making our economies circular offers a lifeline to decarbonise our economies”, says Olga Algayerova, the head of the UN Economic Commission for Europe, (UNECE), “and could lead to the creation of 1.8 million net jobs by 2040”.
IMO environment meeting set to adopt GHG cutting measures (IMO)
A key meeting of IMO’s Marine Environment Protection Committee (MEPC 76) has begun. Opening the session, IMO Secretary-General Kitack Lim highlighted key amendments set for adoption, aimed at cutting the carbon intensity of ships by 40% by 2030. He emphasized the need for IMO to timely deliver on the implementation of the IMO Initial Strategy on the reduction of GHG emissions from shipping, which will ensure achieving the levels of ambition and providing a globally harmonized regulatory framework, in line with the Paris Agreement. “The stakes are high, adoption of short-term measures at this session is crucial to our ability to deliver on the commitments we have made in our initial strategy. Let me be blunt, failure is not an option, as if we fail in our quest, it is not unreasonable to conclude that we run the risk of having unilateral or multilateral initiatives, but, I have full confidence that you will demonstrate that the IMO can be trusted to deliver on commitments it has already agreed,” Mr. Lim said.
G20 GDP Growth - First quarter of 2021 (OECD)
Gross domestic product (GDP) of the G20 area returned to pre-pandemic level in the first quarter of 2021, growing by 0.8% compared with the fourth quarter of 2020. However, this figure conceals large differences across countries. For the remaining G20 economies, GDP is still lagging behind pre-pandemic levels, with countries recording diverging developments in the first quarter of 2021. While GDP growth accelerated in the United States (to 1.6%, after 1.1% in the fourth quarter of 2020) and Italy (to 0.1%, following a contraction of 1.8%), growth slowed in Indonesia (to 1.6%, after 2.3%), Canada (to 1.4%, after 2.2%), South Africa (to 1.1%, after 1.4%) and Mexico (to 0.8%, after 3.2%). Year-on-year GDP growth of the G20 area rebounded to 3.4% in the first quarter of 2021, following a contraction of (minus) 0.7% in the previous quarter.
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National
Masterplan to position South Africa as ‘globally significant’ renewables manufacturer (Engineering News)
Department of Mineral Resources and Energy (DMRE) director-general Advocate Thabo Mokoena reports that government intends using the South African Renewable Energy Masterplan (SAREM), which is currently being drafted, to position the country as a “globally significant” producer of inputs used in renewable-energy plants. In a keynote address to the virtual Enlit Africa conference on Tuesday, Mokoena said the SAREM would help “coordinate the renewable-energy requirements” to support such an industrialisation drive and to boost manufacturing employment. The DMRE, together with the Department of Trade, Industry and Competition, was currently prioritising the establishment of a multistakeholder SAREM executive oversight committee, which would guide and champion industrialisation across renewables value chains.
Progress made in implementing economic recovery plan (SAnewS)
President Cyril Ramaphosa says progress has been made in implementing the Economic Reconstruction and Recovery Plan. “The Economic Reconstruction and Recovery Plan is a necessary response to the severe economic impact of the coronavirus pandemic. “The Plan aims to ensure a swift and lasting economic recovery, with measures to limit the immediate impact of the pandemic on vulnerable workers and households, and to revive economic growth in the short-and medium-term. “According to data released by the South African Revenue Service, South Africa experienced a cumulative trade surplus of close to R150 billion for the first four months of this year. “This reflects a massive increase in our exports to the rest of the world, driven largely by the unique strategic value of our mineral resources,” President Ramaphosa said.
Cabinet hard at work to grow economy, create jobs (SAnews)
Acting Minister in the Presidency Khumbudzo Ntshavheni says government continues to work hard to ensure that the economy retains jobs and creates new ones. Addressing a post Cabinet briefing on Thursday, Ntshavheni said the executive had noted with concern the results of the Quarterly Labour Force Survey, which revealed that the country’s unemployment rate had reached 32.6% in the first three months of 2021. In the first quarter of 2021, the number of unemployed persons also remained almost unchanged at 7.2 million, compared to the fourth quarter of 2020, increasing by 8 000. The survey revealed that the number of discouraged work seekers increased by 201 000, which was a 6.9% difference between the two quarters. This was a net increase of 164 000 in the not economically active population.
Trevor Manuel Reflects on South Africa’s Lost Decade (IMF Finance & Development)
When the apartheid regime ceded power following South Africa’s first democratic elections in 1994, the economy was in shambles. Debt service costs as a share of GDP were crippling. Trevor Manuel – a veteran of the anti-apartheid struggle and appointed minister of finance – revamped the budgeting process and set a stringent deficit reduction target. By 2006, the economy was growing at its fastest pace in more than two decades. In this podcast, Manuel looks back at what drove the country’s longest phase of economic growth and how he believes the ruling party he helped establish has lost its way.
We’re ready to back pharmaceuticals – VP (The Herald)
Zimbabwe needs to make more of the medicines and other medical consumables its people use and local pharmaceutical companies should move beyond their largely retail role and invest in production, Vice President Constantino Chiwenga said yesterday. Speaking at the launch of the pharmaceutical manufacturing strategy for Zimbabwe 2021-2025, which runs under the theme; “Enhancing productivity and competitiveness of the Zimbabwe pharmaceutical industry”, VP Chiwenga noted that local pharmaceutical firms produced just 12 percent of medical consumables. That low threshold was at variance with the country’s industrialisation strategy as espoused by President Mnangagwa and the Government was prepared to back local production by buying the products.
“The need for increased local production in all sectors therefore cannot be overemphasised, especially in the pharmaceutical sector where local companies are producing only 12 percent of the medicines consumed locally. The Ministry of Industry and Commerce is going to give its full support to this sector because an unhealthy population cannot develop a country. The pharmaceutical industry is challenged that this 12 percent is unacceptable and we can no longer take it. What we used to do in the past in exporting to the region must come back. “We will produce for the country and we shall export. Do not be sales agents of selling medicines manufactured by others: we need ours.”
Govt accelerates infrastructure development (The Herald)
The Second Republic is among other things prioritising infrastructure development projects some of which are being made possible with the aid of a robust private-public partnership model, a Cabinet minister said yesterday. The Minister of Transport and Infrastructural Development Felix Mhona said the Government has in the last three years adopted an accelerated drive for infrastructural development. He said this was part of President Mnangagwa’s vision of creating an upper-middle-income economy by 2030. Minister Mhona made the remarks after touring the construction works under the US$300 million Beitbridge Border Post upgrading and modernisation of the project which is being implemented by the Government and the Zimborders consortium.
Digital inclusivity set to narrow urban, rural divide (The Herald)
Digital inclusivity will narrow the divides between urban and rural communities and between the rich and the poor, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said in Mutare yesterday when stressing the Government goal of seamless connectivity for every citizen. In her keynote address to the Parliamentary Portfolio Committee on Information’s workshop, Minister Mutsvangwa said: “The internet of both human beings and things will strive to deliver all sorts of gadgetry to the populace, be it cellphones, laptops, tablets, set top boxes, intelligent household appliances, and even self-driving cars. “That way, we will ensure that every Zimbabwean is truly a national as well as global citizen in a digitally interlinked world of goods, services and ideas. This is a stupendous assignment before all of us. It demands a fully engaged national legislature.”
Key exchange control regulations on imports (The Herald)
RBZ Circular 1 of 2021 (the circular) requires authorised dealers (banks) to seek prior Exchange Control approval for the funding, from the auction, of all non-current expenditures in respect of goods already received or services already rendered. According to the Reserve Bank of Zimbabwe’s website, importers of goods and services are allowed to effect foreign payments through their Authorised Dealers (Banks) without seeking prior Exchange Control approval from the apex bank.
Export earnings to Kenya, South Sudan drop (Daily Monitor)
Uganda’s exports with regional market dropped with the largest drops reported in Kenya, DR Congo and South Sudan. The three countries, especially Kenya and South Sudan, are some of Uganda’s largest trade partners. However, according to data from Bank of Uganda, trade with the three countries declined in April, resulting from, among other trade blockades and civil unrest in some of the regional trading partners. During the period Uganda exports to Kenya declined to $38.4m (Shs136b) down from $49.9m (Shs177b) in March, which is the lowest the country has earned since July 2020 when earnings dropped to $38.3m (shs135b). Uganda has experienced trade wars from her biggest regional markets, with exports such as maize, sugar, milk and poultry products all banned from entering countries such as Kenya. However, there has been progress in negotiations to lift such blockades that have since last year cost Uganda huge earnings.
About 75 percent of agribusiness firms not aware of AfCFTA – GSS (GhanaWeb)
The Ghana Statistical Service (GSS) has revealed that about 75 percent of firms in Ghana are not aware of African Continental Free Trade Area (AfCFTA) agreement. This was contained in GSS’s latest report which assessed the impact of COVID-19 on agribusinesses in Ghana. The African Continental Free Trade Area (AfCFTA) started trading on January 1, 2021. However, when firms were asked whether they are aware of the AfCFTA agreement, only 25.6 percent of agribusiness firms across all sectors are aware of the AfCFTA. Agribusinesses comprise firms in the agriculture sector and those in the industry and service sectors that contribute to the agriculture production value chain.
South Sudan, Malawi sign pact to spur trade (Xinhua)
South Sudan and Malawi on Thursday signed a trade agreement that will see Lilongwe export its surplus food to Juba to help ease the widening cereals deficit in the east African nation. Kuol Athian, minister of Trade and Industry, revealed that the deal will allow Malawian businesses to export food to South Sudan which is facing this year’s highest cereals deficit estimated at 465,600 metric tons. “There is shortage of food in the country (South Sudan), we have been importing from neighboring countries but our friends from Malawi government have seen our suffering and want to rescue us,” Athian told journalists in Juba. Sosten Gwengwe, Malawian minister of Trade, disclosed that his country is looking forward to exporting food to offset this year’s cereals surplus estimated at 1.2 million metric tons.
Almost all of Cameroon’s official diamond production is exported to The UAE and Belgium, BEAC data show (Business in Cameroon)
Pending the commissioning of its mines, Cameroon’s share in the world diamond market is still insignificant. Most of the country’s productions (over 96% in 2018, according to BEAC data) are exported to the United Arab Emirates (UAE) and Belgium, according to the Bank of Central African States (BEAC). In a recent report on the world diamond market, the central bank of CEMAC states revealed that in 2018, Cameroon exported 55.31% of its production to the United Arab Emirates, 40.95% to Belgium, and 3.73% to Switzerland.
Minister of trade urges businesses to get their products accredited (Togo First)
In comparison to previous years, Togo has significantly improved its ranking under the “Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export. In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.
Libya’s oil sector needs foreign investors: NOC chairman Sanalla (Libya Herald)
Speaking at the Libya Investment Forum 2021 yesterday, National Oil Corporation (NOC) chairman Mustafa Sanalla talked of launching new projects to advance the Libyan oil sector, the renewal of out of service oil fields, getting the best benefit from renewable energies and the need for foreign investors. Sanalla explained that the Libyan oil and gas sector has faced many setbacks in the last few years due to armed conflicts and disorder. This had led to the closure of many oil and gas fields and export terminals and resulted in an extreme reduction of daily production for prolonged periods of time. “Our crude oil production went down repeatedly to as low as 100 thousand b/d, 7% of our regular production capacity. The prolonged shutdown of our production and export facilities caused excessive corrosion and damage to equipment, storage tanks and pipelines consequently limiting our capacity when these facilities were gradually put back online.
Sanalla concluded his speech by saying: “Oil and gas revenues currently represent 95% of Libya’s export earnings. The NOC is making great efforts to ensure that the country’s oil and gas resources are wisely and sustainably produced, monetized and turned into the badly needed income for the development of the country and for improving the welfare of the Libyan citizens.”
Africa
AfCFTA is the bigger picture: ZNCC (The Herald)
Business leaders regard the African Continental Free Trade Area (AfCFTA) as the bigger picture for economic growth and have commended Government for being proactive in assisting the country to tap into that wider market. However, and in order to sustain credibility amongst the country’s trading partners, business is urging the Government to finalize the tariff offer regime that would guide the implementation of the historic deal.
In his welcome remarks at the opening of a three-day Zimbabwe National Chamber of Commerce (ZNCC) and United Nations Development Programme (UNDP) training workshop on ACFTA in Gweru, ZNCC president Dr Tinashe Manzungu said the all stakeholders should embrace the ACFTA concept. “We as private sector are alive to the realities that borders are collapsing before our eyes, customs duty will be wiped away as a reliable revenue source for the treasury and if we are not braced, we will end up becoming a ‘supermarket economy’ or ‘cash till’ economy to the rest of the world.”
Dr Manzungu said the business sector was enthused by Government efforts in implementing the EU-funded SADC Trade Related Facility aimed at strengthening Zimbabwe’s National Quality Infrastructure development of the regulatory framework, training of staff and procurement of equipment.
African regions must work together to make AfCFTA work – Cummings Jr (GhanaWeb)
Countries must work together to “level up” their regions in order to make the recently launched African Continental Free Trade Area (AfCFTA) a success, a former Chief Administrator at Coca Cola turned political leader has suggested. Alexander B. Cummings Jr, currently the standard-bearer of the Alternative National Congress (ANC) in Liberia, said: “International structures must offer nations opportunities to complement and compete with each other and allow the private sector to operate with efficiency.” He was speaking during the 2021 Horasis Global Meeting, which was held virtually on Tuesday.
“Poorer nations must operate on a level playing field with their stronger neighbours, as this rewards innovation and excellence. “Wealthier countries investing in poorer neighbours pays off for all. “This spurs economic activity back into the investor country, builds better bilateral and regional ties and builds security and stability. “This increases equality and generates opportunity on an ever-increasing scale, with a disproportionate benefit to poorer nations,” Mr Cummings added.
East Africa Finance ministers present 2021/22 budgets (The East African)
East African Finance ministers present their national budgets in their respective parliaments for the fiscal year 2021/22 today. According to the East Africa Community (EAC) Treaty, partner states are required to read their budgets simultaneously. But only the three founding member states – Kenya, Uganda and Tanzania – read their budgets today.
Budget 2021/22: What traders want in new government budget (The Citizen)
Operators of Small and Medium Enterprises (SMEs) want the government to increase the Agriculture budget while at the same time looking into setting indicative prices for clearing goods out of Customs control. Tanzania Business Community general secretary Abdallah Mwinyi said the Customs commissioner had the discretion in valuation of goods to determine the duty payable. He noted that even if a business person shows a receipt for the goods purchased, the system will still want to value the goods and come up with fresh valuation. “This is not a good option. We have raised our concerns several times, but to no avail. This system creates a loophole for corruption as businesses are sometimes compelled to negotiate with officials so that they can pay at affordable rates,” he said.
Uhuru’s legacy infrastructure projects get Sh10 billion top-up (Business Daily)
The National Treasury has increased the allocation for ongoing road construction in the country as President Uhuru Kenyatta races against time to seal his legacy on infrastructure developments. Treasury Cabinet Secretary Ukur Yatani said Sh94.7 billion will go towards the ongoing roads and bridge construction in the year starting July, an 11 percent increase from Sh84.7 billion in the current financial year. The Sh10 billion increase comes at a time the State has been investing heavily in road construction, a move that has opened up the country for trade and investment. Some of the roads under construction include the Sh50 billion first double-decker road linking Jomo Kenyatta International Airport (JKIA) to the Nairobi-Nakuru highway. The road is expected to reduce the traffic gridlocks along Mombasa Road.
Tanzania waives custom duty on Covid 19 fighting equipment (The Citizen)
The government has waived customs duty on raw materials used to produce equipment used in fighting against Covid 19 pandemic including facial masks, sanitizers, ventilators and special protective clothing used by doctors and health workers known as Personal Protective (PPE). This was stated today, June 10, 2021, by the Minister of Finance and Planning, Dr. Mwigulu Nchemba while presenting to parliament the Government’s proposals on revenue and expenditure estimates for the financial year 2021/22. Dr Mwigulu made the remarks while reading a proposal to continue implementing tariff rates through the East African Community Customs Management Act of 2004. ”Reducing tariffs to 0 percent from the previous rates of 10 percent and 25 percent for one year on raw materials used in the production of special equipment used in the fight against Covid 19,’
EAC Partner States encouraged to exploit potential for export of raw cotton (EAC)
EAC Partner States have been called upon to exploit the huge potential for export of raw cotton to the world market. Kenya’s Principal Secretary for EAC, Dr. Kevit Desai, said that the region produces 100,000 metric tonnes of cotton compared to an existing export potential of 400,000 metric tonnes. Dr. Desai said that EAC exports to the world market currently stands at 8% adding that to increase the volume of exports, value chains such as textiles need to be promoted to boost exports. “We need to harness science, technology and innovation to boost exports by investing in greater capacity to produce leather and textiles, and turn a crop like pyrethrum into aerosols,” said the PS.
Botswana/Zambia’s Kazungula Bridge: ‘A critical milestone in North-South Transport Corridor’ (The Africa Report)
On 10 May, the presidents of Botswana and Zambia officially opened the new Kazungula Bridge and one-stop border posts, aimed at ushering in more traffic. The bridge is part of the Trans-African Highway Network and the North-South corridor link between the SADC and COMESA free trade areas. The presence of three more presidents from the Southern Africa Development Community (SADC) underlined the significance of the opening ceremony. Zambia and Botswana funded the $259m infrastructure project. The plan was to unplug the Zambezi River barrier and link the Democratic Republic of Congo, Tanzania and Zambia to South Africa and Namibia via Botswana.
African airlines see rising demand as global air cargo surges by 12% (The Guardian Nigeria)
New data for the global air cargo market has shown a general increase in demand for African airlines among the top gainers. The International Air Transport Association (IATA) cargo market report for April 2021, released yesterday, showed that demand continued to outperform pre-COVID levels (April 2019) with demand up 12 per cent. Global demand was up 12 per cent compared to April 2019 and 7.8 per cent compared to March 2021. Seasonally adjusted demand is now five per cent higher than the pre-crisis August 2018 peak. African airlines’ cargo demand in April increased 30.6 per cent compared to the same month in 2019, the strongest of all regions and the fourth consecutive month of growth at or above 25 per cent compared to 2019. Robust expansion on the Asia-Africa trade lanes contributed to the strong growth. April international capacity increased by 0.6 per cent compared to April 2019.
Nigeria missing on African airlines ranking by traffic (TheCable)
Nigerian aviation companies failed to make the list of top African airlines in terms of passenger traffic in 2020. This is according to the Africa air transport report recently released by African Airlines Association (AFRAA), which ranked airlines based on domestic, intra-Africa and intercontinental traffic. The report gives an in-depth analysis of Africa’s air transport industry performance for 2020 covering: financial performance, passenger and cargo traffic evolution, airport ranking, intra-Africa connectivity and openness. It noted that intra-African connectivity remains low and advised African airlines to take the opportunity to develop their Intra-African network, especially in this period where the European Union (EU) has limited travels to Europe.
SARA hosts high-level regional rail conference (Chronicle)
Unlocking new financing and diversifying operations would be under spotlight today as players in Southern Africa’s railway transport sector and key stakeholders meet to deliberate on issues affecting the industry. “The Covid-19 pandemic has brought about new challenges and opportunities in the railway industry,” said SARA.
Project to harmonise African automotive standards showing progress, says AAAM (Engineering News)
The project to harmonise standards across the automotive sector in Africa is progressing well, reports the African Association of Automotive Manufacturers (AAAM). The AAAM says the African Export-Import Bank (Afreximbank) is continuing its support to the African Organisation for Standardisation (ARSO) as it works to harmonise standards in order to facilitate the accelerated development of the automotive industry across the continent.
Climate change is a threat to Africa’s transport systems: What must be done (Down to Earth)
Transportation infrastructure, such as roads and railway systems, is one of the sectors most threatened by climate change. Extreme weather events – such as flooding, sea level rises and storm surges – repeatedly wreak havoc on transport networks. In Africa, extreme weather is a threat that can cause extensive structural damage. It can also accelerate the ageing of infrastructure components. This can lead to considerable financial losses. For instance, a recent report on Tanzania uncovered the vulnerability of the country’s transportation systems. Long stretches of road and rail networks are exposed to extreme flooding events, with growing exposure in the future. The report estimated that worst-case disruptions to Tanzania’s multi-modal transport networks could cause losses of up to $1.4 million per day. In addition, damage to these networks can disrupt the flow of goods and people, thereby lowering economic productivity.
Workshop on inclusive fisheries governance framework held in Accra (GhanaWeb)
Workshop on inclusive fisheries governance framework held in Accra A regional workshop on the popularization and dissemination of a comprehensive strategic framework for sustainable fisheries and aquaculture development for the West Africa region has been held in Accra. The two-day meeting was to improve awareness on the regional framework and also to solicit the inputs and concerns of ECOWAS member states to ensure its smooth implementation. The workshop was also to help member states develop a roadmap that will facilitate the alignment of national strategies towards the harmonization of fisheries governance across the sub-region.
UK-Africa Forum on Trade, Policy and Reform to examine the future of trade and avenues for policy reform (Africanews)
Invest Africa, a Pan-African business and investment platform, aims to build constructive dialogue between policy makers and business leaders from the UK and Africa during the Forum. James Duddridge MP, Minister for Africa, Emma Wade-Smith OBE, H.M. Trade Commissioner for Africa, and His Excellency Ken Ofori-Atta, Minister of Finance of the Republic of Ghana will feature in the programme.
The Forum comes at an opportune time as trading under the AfCFTA commenced on the 1 January 2021, accelerating intra-African trade, and boosting Africa’s trading position in the global market. This, combined with the UK’s departure from the European Union, has seen a rise in investment interest in Africa. The UK trade envoy to Egypt was recently quoted in the UK press, saying that Egypt ‘can be the “gateway” to an explosion of trade with Africa.’ Earlier this year, Helen Grant, Conservative MP and trade envoy to Nigeria claimed a trade deal with the country could be significant for the UK. Ms Grant boasted of Nigeria’s emerging economy and the impact it could have for British business in terms of financial services, agriculture, and tech. In March 2021, the UK signed a trade partnership agreement with Ghana, that secures tariff-free trade and provides a platform for greater economic and cultural cooperation. In practical terms, it means that Ghanaian products such as bananas, tinned tuna and cocoa will benefit from tariff-free access to the United Kingdom.
Global economy
Members approach text-based discussions for an urgent IP response to COVID-19 (WTO)
In an extensive discussion with the participation of 48 delegations, members reiterated their well-known differences on where the emphasis should be placed to ensure their shared objective of a rapid and effective response to the pandemic. They expressed their willingness to engage constructively in a discussion based on two proposals tabled by members, namely the revised proposal for a waiver from certain provisions of the TRIPS Agreement (IP/C/W/669/Rev1), co-sponsored by over 60 delegations, and the communication from the European Union on urgent trade policy responses to the pandemic (IP/C/W/680). The co-proponents of the proposal to waive certain TRIPS Agreement obligations detailed the main points of their revised text. They stressed that the updated proposal takes into account the existence of virus mutations and new variants which have a significant impact on public health measures. It also underlines the importance of diversifying production and supply to increase access to vaccines and other medical products, and the need to preserve incentives for research and innovation.
ECA’s Songwe echoes Africa’s expectation from the G7 summit (UNECA)
Leaders of the Group of Seven nations (G7) including the United Kingdom (UK), Canada, France, Germany, Italy, Japan, and the United States, are scheduled to meet for a three-day summit in the UK from 11 to 13 June 2021. Their discussions will focus mainly on issues relating to COVID-19 recovery, climate change and trade. Ahead of the G7 summit, Vera Songwe, UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA) conveyed the following three points, which capture Africa’s expectation from the G7 leaders. Ms Songwe echoed the need for a “historic vaccines roadmap where the G7 stop hoarding, start sharing the financing, the doses and the manufacturing capacity needed to deliver on vaccine access.” This, she added, would mean “one billion doses donated soonest, with two billion donated by the end of the year; the ACT Accelerator and the African vaccines facility fully funded, and the tech shared so we can manufacture vaccines, therapies, and diagnostics locally.”
Nine in 10 African nations set to miss urgent COVID vaccination goal (UN News)
At 32 million doses, Africa accounts for less than one per cent of the more than 2.1 billion doses administered globally. Just two per cent of the continent’s nearly 1.3 billion people have received one dose, and only 9.4 million Africans are fully vaccinated. “It’s do or die on dose sharing for Africa,” said Dr Matshidiso Moeti, WHO Regional Director for Africa. “Vaccines have been proven to prevent cases and deaths, so countries that can, must urgently share COVID-19 vaccines.” According to WHO’s latest situation update, the pandemic “is trending upwards in 10 African countries”. Four nations have seen a 30 per cent increase in cases in the past seven days, compared with the previous week. Most of the new cases were in Egypt, South Africa, Tunisia, Uganda and Zambia and over half were in nine southern African countries. Vaccines have become “increasingly scarce”, the UN health agency said, adding that at the current rate of delivery, only seven African nations will meet the goal of immunizing one in 10 people by September.
Biden pledges 500M doses, calls on world leaders to join him (Daily Union)
President Joe Biden urged global leaders Thursday to join him in sharing coronavirus vaccines with struggling nations around the world after he promised the U.S. would donate 500 million doses to help speed the pandemic’s end and bolster the strategic position of the world’s wealthiest democracies. Speaking in England before a summit of the Group of Seven world leaders, Biden announced the U.S. commitment to vaccine sharing, which comes on top of 80 million doses he has already pledged by the end of the month. He argued it was in both America’s interests and the world’s to make vaccination widely and speedily available everywhere.
Special Drawing Rights: Saving the global economy and bolstering recovery in pandemic times (EURODAD)
In the wake of the liquidity and fiscal crisis across developing countries generated by the global pandemic, the role of Special Drawing Rights (SDRs) has formed an important part of the discussion on economic recovery. During the crisis, developed countries have accounted for nearly 80 per cent of all fiscal efforts, while many low-income countries (LICs) have cut spending or have directed more funds to repaying creditors than they have to their own health sectors. In the 15 months since the start of the pandemic in March 2020, multilateral efforts have not sufficiently accelerated comprehensive efforts to respond to the multiple dimensions of health and economic crises in developing countries, particularly through financing and provision of immediate liquidity. The unequal distribution of vaccines and the emergence of new variants of the coronavirus threaten to prolong the crisis, with developing countries continuing to bear the brunt of the exacerbation of poverty and inequality. Progress towards the Sustainable Development Goals (SDGs) by 2030 has effectively been derailed, with many developing countries set back by years or decades when it comes to achieving the Goals.
The global economy is expected to expand 5.6% in 2021, the fastest post-recession pace in 80 years, largely on strong rebounds from a few major economies. However, many emerging market and developing economies continue to struggle with the COVID-19 pandemic and its aftermath, the World Bank says in its June 2021 Global Economic Prospects. “While there are welcome signs of global recovery, the pandemic continues to inflict poverty and inequality on people in developing countries around the world,” said World Bank Group President David Malpass. “Globally coordinated efforts are essential to accelerate vaccine distribution and debt relief, particularly for low-income countries. As the health crisis eases, policymakers will need to address the pandemic’s lasting effects and take steps to spur green, resilient, and inclusive growth while safeguarding macroeconomic stability.”
Emerging market and developing economies as a group are forecast to expand 6% this year, supported by higher demand and elevated commodity prices. However, the recovery in many countries is being held back by a resurgence of COVID-19 cases and lagging vaccination progress, as well as the withdrawal of policy support in some instances.
“Linkages through trade and global value chains have been a vital engine of economic advancement for developing economies and lifted many people out of poverty. However, at current trends, global trade growth is set to slow down over the next decade,” World Bank Group Vice President for Equitable Growth and Financial Institutions Indermit Gill said. “As developing economies recover from the COVID-19 pandemic, cutting trade costs can create an environment conducive to re-engaging in global supply chains and reigniting trade growth.”
Getting Back to Growth (IMF Blog)
Producing and consuming more goods and services for the same amount of work sounds too good to be true. In fact, it’s entirely possible. Higher productivity is one of the key ingredients to higher economic growth and incomes. It’s all about how workers become more productive. The pandemic accelerated the shift toward digitalization and automation, including through e-commerce and remote-work – and these trends seem unlikely to reverse. With sectors impacted very differently by the pandemic, some degree of ‘resource reallocation’ is likely occurring – for example, shifts in workers across firms as they are laid off or hired. This is occurring for at least two (possibly related) reasons: (i) the churn of businesses entering and exiting the market and (ii) changes in consumer demand.
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National
SA making efforts to improve ease of doing business (SAnews)
South African cities are making efforts to improve the ease of doing business, although the pace of reforms has been slow in the last three years, according to a World Bank Group report. South Africa is one of the countries counted among others that have implemented reforms making it easier to do business. These reforms were implemented from May 2018 to May 2019. This was revealed at a webinar organised by BrandSA and Invest SA, through the Department of Trade, Industry and Competition (DTIC) in collaboration with Government Communication and Information System (GCIS) and the Companies and Intellectual Property Commission (CIPC) on Tuesday.
In the area of Trading Across Borders, the report measures four of South Africa’s maritime ports – Cape Town, Durban, Ngqura, and Port Elizabeth. In the case of South Africa, GCIS Director-General Phumla Williams said working together and ensuring that bold reforms are undertaken can move the country back into the top 50 of the World Bank Ease of Doing Business Index.
The biggest risks to South Africa right now: economists (Business Tech)
South Africa’s GDP results for Q1 2021 are positive, with the outlook for the rest of the year also relatively encouraging, says economists at Nedbank. However, a number of local issues threaten to derail the country’s good start to the year, the bank said in a research note on Tuesday (8 June). These include: A lack of reliable and cost-effective electricity supply; Frequent power outages (load shedding); High unemployment; Slow Covid vaccine rollout; Slow implementation of structural reforms. “From the production side, growth will be driven mainly by mining and manufacturing, buoyed by increased global demand and elevated commodity prices.”
Trade between Nigeria, South Africa hits $2.9b in 2020 (The Guardian Nigeria)
Nigeria’s mission in South Africa issues 10,341 passports in 15 months Despite concerns about xenophobia between Nigeria and South Africa, bilateral ties between the two countries hit $2.9 billion last year with hopes of improved trade with the African Continental Free Trade Area (AfCFTA).
Zimbabwe’s Economy is Set for Recovery, but Key Risks Remain (World Bank)
Gross Domestic Product (GDP) growth in Zimbabwe is projected to reach 3.9 percent in 2021, a significant improvement after a two-year recession, according to the World Bank Zimbabwe Economic Update (ZEU) launched today. Economic growth this year will be led by recovery of agriculture as rains normalize, businesses adjust to limitations caused by the COVID-19 (coronavirus) pandemic, and inflation slows down. However, disruptions caused by the pandemic will continue to weigh on economic activity in Zimbabwe, limiting employment growth and improvements in living standards. The ZEU, Overcoming Economic challenges, Natural Disasters, and the Pandemic: Social and Economic Impacts, provides the World Bank perspective on macroeconomic and poverty developments and discusses ways to strengthen public service delivery in key sectors.
Trade balance remains in N$2 billion deficit (New Era)
April 2021 saw Namibia’s total merchandise trade increase to N$18.7 billion, which is an upsurge of 0.8% and 43.3%, compared to N$18.6 billion and N$13.1 billion recorded in March 2021 and April 2020, respectively. However, the country’s trade balance remained in a deficit of N$2 billion, increasing from N$1.8 billion recorded in both March 2021 and April 2020. The trade balance compares the country’s trade flow with the rest of the world in terms of export earnings and expenditure on imports. Between April 2020 to April 2021, Namibia recorded a positive trade balance, amounting to N$325 million, only in June 2020. According to the April 2021 Trade Statistics Bulletin compiled by the Namibia Statistics Agency (NSA), Namibia’s trade composition by partner illustrated that China remained Namibia’s largest export market, while South Africa maintained her first position as Namibia’s largest source of imports.
In Kenya, Food Retailers Race to Improve Safety Standards (IFC)
Naivas is one of a growing number of African supermarkets that are adopting international food safety standards, a trend experts say could dramatically improve the quality of meat and produce on local shelves. That is considered crucial on a continent where contaminated food sickens more than 91 million people every year and causes $110 billion in economic damages, much of it in lost productivity. Many see stricter standards as an investment in their brand and an avenue to sales growth, says Sarah Ockman, IFC’s Lead for Manufacturing, Agribusiness, and Services Advisory. Others are being pushed by risk-conscious investors who worry about the financial fallout of a food poisoning scandal, she adds. “We are witnessing what I think is the beginning of a sea change,” says Ockman. “Farmers, food processing companies, grocery stores – they are all starting to take food safety much more seriously, and that’s a good thing for the health and wellbeing of Africans.”
Kenya Lauded for Achieving 75% Electricity Access Rate (COMESA)
Kenya has dramatically increased electricity access over the last few years, from 2.3 million connections in 2013 to 8.2 million by the end of April 2021 thereby achieving electricity access rate of over 75%. This was disclosed during the just concluded joint meeting of COMESA Ministers responsible for transport and communication, information technology and energy on 2 June 2021. The meeting also noted that most COMESA countries were actively working to increase the share of renewables in the energy mix and creating an enabling environment for conducive development of the sector. Among these initiatives is the establishment of regulatory bodies and institutions responsible for accelerating access to electricity.
MPs blow Sh10 billion hole in President’s pet infrastructure projects (Business Daily)
Parliament has cut Sh9.6 billion from the Finance ministry’s budget, casting doubt on the operations of various infrastructure projects that President Uhuru Kenyatta placed under the docket last year. The Budget and Appropriations Committee (BAC) reviewed the Treasury’s budget from Sh167.84 billion to Sh155.17 billion for the year starting July. The MPs, however, gave Treasury a token Sh980 million for public participation and Sh700 million for a parking spot in Malaba that softened the blow.
Tanzania asks for fresh report on Kenya’s industrial sugar (The East African)
Tanzania has refused to grant preferential tariff treatment to Kenyan made confectionery after faulting the report of the industrial sugar verification by Kenya. Instead, President Samia Suluhu’s administration has demanded another verification to determine the taxable status of Kenyan made confectionery. This comes even as the two East African neighbours work on a new beginning of mutual co-operation after years of tit-for-tat trade and diplomatic relations. In 2018, Tanzania imposed a 25 per cent import duty on Kenyan confectionery, including juice, ice cream, chocolate, sweets and chewing gum, claiming Kenya had used zero-rated industrial sugar imports to produce them, in contravention of the East African Community (EAC) Rules of Origin.
Lucrative food trade aim (Botswana Daily News)
Government wishes to position Botswana as an active player in the global multi-billion dollar food industry. Officiating during World Safety Day in Gaborone on Monday, Minister of Health and Wellness, Dr Edwin Dikoloti said that was achievable through growing net exports on indigenous food products and becoming self-reliant. He said minimizing disruptions in food supply chains therefore remained one of government’s highest priorities.
ECA pledges to help Malawi reap the benefits of the AFCFTA (UNECA)
The Economic Commission for Africa (ECA), through its African Trade Policy Centre (ATPC) unit, will continue to provide technical assistance to Malawi to enable it benefit fully from the African Continental Free Trade Area (AfCFTA). Mr. Chikwene said the capacity of the country’s trade support institutions would be enhanced so that operators in the trade sector could get all the help they would need to succeed. “Without an efficient and focused network of trade support institutions working to make trade work for Malawi, the benefits of the AfCFTA may take too long to be realized,” he said. “The key will be to attract, protect and nurture foreign direct investment (FDI) and industrialization to Malawi whilst at the same time profiting from a more open market” for Africa’s population, it said.
Nigeria, Burundi to sign agreements on trade, investment (Daily Trust)
Nigeria and Burundi are set to sign bilateral agreements on trade, investment, education, technology and tourism. The Head of the Nigerian Mission in Burundi, Amb Elijah Onyeagba, announced this in a statement. He said the inaugural session of the Nigeria-Burundi Joint Commission is slated to hold in Bujumbura, Burundi from 5th -10th July, 2021. Onyeagba said on the top on the agenda of the Joint Commission are Education Cooperation, Political Consultation and Technical Aid Corps. The statement read, “The Nigerian Plenipotentiary to the Republic of Burundi, Amb. Elijah Onyeagba PhD, is optimistic that this Joint Commission will revolutionalize trade and investment, improve the standard of living of both countries and create a multiplier effect towards economic rejuvenation of both countries.” However, during the session Nigeria is expected to sign a Bilateral Agreement on AfCFTA, Agricultural Research/Development, ICT, Tourism, Creative industry and Security.
Ghana launches GH¢145 million SME grant fund (GhanaWeb)
President Nana Addo Dankwa Akufo-Addo has launched the Ghana Enterprises Agency (formerly NBSSI), the National Micro, Small and Medium-Scale Enterprises (MSMEs) and Entrepreneurship Policy, and the GEA Grant Support for SMEs, under the Ghana Economic Transformation Project, which is backed by the World Bank. The President indicated that the National Micro, Small and Medium Enterprises and Entrepreneurship Policy is the first of its kind in Ghana, adding that “it is a policy designed to direct the growth of the sector, provide clear policy direction and opportunities for all actors within the MSME space, to enable them contribute meaningfully towards the development of the country”.
Improve cultural and business exchanges to facilitate trade partnerships – GUTA (GhanaWeb)
Dr Joseph Obeng, President of the Ghana Union of Trade Associations (GUTA) has called for the improvement in cultural and business exchanges to facilitate trade partnerships between Ghanaian businesses and the United Kingdom investors. He said Ghanaian businesses must seek partner investors with expertise in manufacturing and value addition. Dr Obeng made the call at the UK-West Africa Trade Opportunities in a COVID-19 Era; Trade Opportunities Webinar Series organised by the UK-Ghana Chamber of Commerce. Opportunities available are manufacturing in consumables, Pharmaceuticals, Agrochemical and Agro-processing, Hardware, Electricals and Electronic products, Building of Warehouses and Construction.
Cargo movers see AfCFTA driving business recovery (Business24 Ghana)
Downed by the coronavirus pandemic, transporters of cargo are now seeing a steady rise in the volume of goods that they cart to landlocked countries which use the nation’s ports. Shocks to supply chains and reduced industrial activities after the coronavirus outbreak curtailed cargo traffic through Ghana’s ports, reducing volumes for both transit and domestic hauliers. But the situation is reversing gradually, according to Ibrahim Musa, the Executive Secretary of the Joint Association of Port Transport Unions (JAPTU), who sees brighter prospects due to the coming on stream of the single continental market. “So far, on the state of the business, we think it’s good; but then we also believe it can even be better than it is now, especially with the take-off of the African Continental Free Trade Area (AfCFTA). This market now gives us access to the entire continent to do trade. So, we want to believe that with the expansion of our ports and the role that the Shippers Authority is playing, we should be able to move more cargo,” he told Business24 in an exclusive interview.
Transporters need right push to thrive in AfCFTA (Business24)
The implementation of the single continental market for trade has been met with applause from players in almost all sectors of the economy. The latest group of workers to throw their weight behind the continental project are those in the transport and logistics sector, specifically truckers and haulers who cart cargo through the nation’s transit corridors. To them, an open market means more cargo to move across borders, especially from one landlocked country to another, something that is not permissible currently despite numerous existing trade protocols. But the fortunes of these critical businesses in the shipping industry in their dealings continent-wide will come from prudent policies and interventions from both government and direct stakeholders. This is because Ghanaian transporters been faced with serious challenges from their counterparts in landlocked countries for quite a long time. They have now asked government to use the Ecowas protocols as a case study to identify similar issues that may arise and tackle it head on.
Liberia: Importers Want Increment in Price of Rice Due to Rise Cost of Importation (FrontPageAfrica)
The Rice Importers Association have appealed to the Government of Liberia to permit an increment on the price of rice due to rising cost of importation. According to the Association, there is a worldwide increment in freight while at the same time fees for services at the National Port Authority (NPA) have also gone up. They expressed fears that there may be shortage of rice on the market if there is no increment in the price. The importers said their attention has also been drawn to the recent increment of fees of vessel and warehouse operation by the Association of Liberia Stacking Companies.
New report: Skills matching and technology sustain jobs in Togo (ITC)
Companies in Togo that were satisfied with the skills of their workforce and had invested heavily in research and development before the pandemic were less likely to dismiss workers once COVID-19 hit, according to a new report by the International Trade Centre (ITC). That’s because these firms valued their workers and drew on their skills to respond to the crisis. Just 6% of firms whose workforce skills were aligned with enterprise needs let workers go during the pandemic. In contrast, 25% of companies that had weak skills matching before the pandemic had to fire employees. This finding, which makes the case for investing in technological capabilities and spreading appropriate skills throughout the workforce, is detailed in Promoting SME Competitiveness in Togo: A resilient foundation for transformative growth.
Africa
Pandemic recovery presents an opportunity for Africa to reinvent its growth model (Mo Ibrahim Foundation)
The 2021 Ibrahim Forum Report, COVID-19 in Africa one year on: Impact and Prospects, outlines how recovery from the pandemic provides an opportunity to define and drive a new growth model for the continent. Launched by the Mo Ibrahim Foundation ahead of the 2021 Ibrahim Governance Weekend (IGW), the report presents new analysis on Africa’s challenges as exposed by the pandemic, including weak health capacities, setbacks in human development, rising instability and a vulnerable economic growth model. The comprehensive report on the impact of COVID-19 across the continent serves as an urgent wake-up call. It also points to clear avenues where Africa can now build back better. Commenting on the launch of today’s report, Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation, said: Africa has demonstrated strong leadership in its response to COVID-19. However, the data also shows where we are falling short. We now have an opportunity to harness lessons from the pandemic to build an African-led recovery that champions good governance, strengthens continental integration, and puts young people at its centre.
Billionaire philanthropist: vaccine hoarding hurts Africa (Minneapolis Star Tribune)
Billionaire philanthropist Mo Ibrahim is sharply criticizing the hoarding of COVID-19 vaccines by wealthy nations, urging the international community to “walk the talk” of equitable distribution as Africa desperately lags behind. He lamented the global “competition” for vaccines in an interview with The Associated Press. He said he views the the pandemic-era phrase “nobody is safe until everybody is safe” as a meaningless slogan until there is an equitable distribution of COVID-19 vaccines around the world.
AfDB says $10bn COVID-19 fund boosting Africa’s recovery (Daily Trust)
The African Development Bank (AfDB) has said the $10 billion COVID-19 relief facility it began disbursing since the heat of the pandemic in 2020 is boosting the recovery of several African countries. “Out of the 54 African countries, 43 saw a decline in domestic revenue ranging from 30 to 70 per cent. Regional trade was paralysed in many parts of Africa with the borders closed,” he said. He also said Africa is a net importer of food, purchasing food of about $135 billion annually while export was down from the continent. Six countries struggled to finance their sovereign debts because of the oil price collapse and the pandemic while eight others found it hard to pay their civil servants and domestic debts.
Social dialogue is the key to fostering trade union participation in recovery and resilience in Africa (Equal Times)
The Covid-19 pandemic has mutated from a health emergency into one of the most serious global socio-economic crises in living memory. Its adverse impacts can be felt throughout society, especially in the world of work, and particularly in Africa, where it has exacerbated underlying structural challenges and humanitarian crises throughout the continent. While it is clear that Covid-19 has grossly affected workers, African governments have attempted to implement measures to impede the spread of the virus without meaningfully engaging with workers on issues that affect them. Social dialogue, a mechanism that brings the social partners (government, workers and employers) together to discuss and negotiate on work-related issues, has in most countries has been piecemeal or non-existent.
The Tripartite of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern African Development Community (SADC) on 8th June, 2021 held its 33rd meeting of the Tripartite Task Force (TTF). During the meeting, the Executive Secretary of SADC, Her Excellency, Dr. Stergomena Lawrence Tax, handed over the rotational Chairpersonship of the Tripartite Task Force to the Secretary General of EAC, Dr. Peter Mutuku Mathuki. She indicated that, while a number of Member/Partner States that have ratified the Tripartite Free Trade Area Agreement (TFTA) increased from six to 10 during her tenure as Chairperson of the Tripartite Task Force, there is need to continue encouraging the outstanding Member/Partner States to fast-track the ratification of TFTA Agreement in order to reach the threshold of 14 Member/Partner States required for the Agreement to enter into force. She stressed the importance of the TFTA as a stepping stone for the implementation of the Africa Continental Free Trade Area (AfFCTA). So far Egypt, Eswatini, Kenya, South Africa, Rwanda, Burundi, Uganda, Botswana, Namibia and Zambia have ratified the TFTA Agreement.
In addition to the approval of Harmonised Tripartite Guidelines on Trade and Transport Facilitation Guidelines for Safe, Efficient and Cost-Effective Movement of Goods and Services during the COVID-19 pandemic; other milestones attained during SADC’s tenure as Chair of the Tripartite Task Force include Draft Tripartite Agreement on Movement of Business Persons; Draft Annex 1 on Elimination of Import Duties to the Agreement Establishing a TFTA Agreement; Draft Annex II on Trade Remedies to TFTA Agreement; Draft Annex IV on Rules of Origin to the TFTA Agreement, and Draft Annex X on Dispute Settlement Mechanism to the TFTA Agreement; Vehicle Load Management Agreement; Multilateral Cross Border Road Transport Agreement; Vehicle Load Management Model Law; Cross Border Road Transport Model Law; Road Traffic Model Law; Road Traffic and Transport Transgressions Model Law; and Transport of Dangerous Goods by Road Model Law. These Legal instrument will be presented to Council during its next meetings, and are expected to facilitate effective operationalisation of the TFTA.
Zim To Become Second SADC Country With Bus Manufacturing Plant (NewZimbabwe)
Zimbabwe is set to become the second SADC country and also part of a countable few in Africa with bus manufacturing and assembly plants when it launches its own next month. The plant, a partnership between Amalgamated Bus Industries, Quest Motors Manufacturing, AVM Africa and China’ Zhongtong Buses, will start operating next month with a target of 500 buses per year. Speaking at a Memorandum of Understanding (MoU) signing event in Harare Wednesday, Zimbabwe Passenger Transport Organisation spokesperson Kura Sibanda said the revival of their industry will also ignite downstream revival, save foreign currency and create employment.
Meeting of the Sectoral Council of Ministers of EAC Affairs and Planning underway in Arusha (EAC)
A five-day meeting of the Sectoral Council of Ministers on EAC Affairs and Planning (SCMEACP) is currently underway at the EAC Headquarters in Arusha, Tanzania. Among the items on the agenda of the meeting are the: Consideration of the Progress Report on the Status of Implementation of the EAC Common Market; Consideration of the Report on the Revised Draft Council Directive on Coordination of Social Security Benefits in the EAC; Consideration of the Status of Partner States’ Contributions to the EAC Budget, and; Consideration of the Draft 2nd EAC Communication Policy And The Draft 2nd EAC Communication Strategy.
A Chinese-built port in the Indian Ocean: The story of Kenya’s Lamu port (Observer Research Foundation)
Kenya recently launched its newest mega infrastructure project, the Lamu port, which is a part of an ambitious transport corridor between Lamu (a small archipelago north of Mombasa in Kenya), South Sudan and Ethiopia. The Lamu port is believed to be a cornerstone of the Kenyan government’s Vision 2030 development plan, and is now being branded as a ‘game changer’ project. The port is part of the wider US $23 billion Lamu Port South Sudan-Ethiopia Transport (LAPSSET) corridor and has been constructed by China Communications Construction Company, with the first three of the planned 32 berths coming at a cost of US $367 million. This transport corridor is touted to comprise a standard gauge railway line; an oil pipeline and refinery; road network; international airports at Isiolo, Lamu, Lokichogio; the port of Lamu at Manda Bay; and resort cities.
Nigeria, Togo, Others Plan $570m Power Transmission Line (THISDAY Newspapers)
The federal government, represented by the Transmission Company of Nigeria (TCN) along with Togo, Burkina Faso and the Niger Republic, yesterday commenced a high-level meeting in Abuja, to put final touches to the execution of a planned $570 million transmission line which runs across the four countries. “Nigeria has the greatest advantage among these countries because the electricity is going to be exported from Nigerian Gencos. So, from that, the revenue is going to be enhanced and a lot of people will be employed in Nigeria,” Managing Director of the TCN and Chairman, Executive Board of the West African Power Pool (WAPP), Mr. Sule Abdulaziz said. “The cost is about $570 million and the part of the investment in each country is funded by the country and they are supported by the donors and Nigeria are taking its own.”
Opinion: Why EU conservation efforts will fail without Africa (Devex)
The European Green Deal is the flagship policy from the European Commission under President Ursula von der Leyen, aiming to achieve net-zero greenhouse gas emissions by 2050. It is an ambitious plan for Europe to be a more resource-efficient, competitive economy. The European Parliament approved the European Climate Law in May, giving a boost to the ambitions of the European Green Deal. Yet Europe alone cannot deliver on the deal. In seeking to ensure the continent is climate-neutral, it must work with global partners.
The European Green Deal is a global one that needs Africa to make it work. The text of the deal says drivers of climate change and biodiversity loss are international and not limited by country borders. Von der Leyen and Werner Hoyer, president at the European Investment Bank, said in March that action beyond European borders is necessary. They jointly called for a “Global Green Deal” to ensure the increase in Earth’s temperature is as close to 1.5 degrees Celsius as possible.
Turkey is looking forward to boosting trade with East Africa (The New Times)
Geographically, Turkey is a bridge between Europe and Asia. Due to its location, surrounded by sea on three sides, Turkey has always been the center of great trade, Europe, the Middle East, and African culture. Besides its geographical importance, Turkey has been playing an important role in world exports for many years as a major producer. For Turkey, which ranks 27th among the global exporters, the African continent has been an important target and strategy partner since the beginning of the 2000s. Turkey’s attempt to accelerate its political, military, cultural and economic relations with African countries started with the “Opening to Africa Action Plan” prepared in 1998. This plan gained momentum in 2002. And, in 2005, the “Year of Africa” was declared in Turkey. In the same year, Turkey became an observer in the African Union.
India must work out a mechanism to be part of Africa’s mega trade deal (Lokmat English)
As the African Continental Free Trade Area (AfCFTA) officially kicked off in January, India must now proactively make a strong pitch to be able to get access to the member countries for expansion of bilateral trade, experts said. At a time when China has slowed its investments into the continent, India has an opportunity. The continent will also play an important role as the geopolitical thrust shifts towards the Indo Pacific. “India has increased its economic activities in Africa, its investments have risen significantly in the last few years but now New Delhi must work out a mechanism with the AfCFTA to be able to expand bilateral trade further,” Pradeep S Mehta, Secretary General, CUTS International told India Narrative.
Global economy
Small Island Developing States face uphill battle in COVID-19 recovery (UNCTAD)
Small island developing States (SIDS) face an uphill battle as they strive to recover from the impact of the COVID-19 crisis amid vulnerabilities worsened by the pandemic, according to the 2021 edition of UNCTAD’s Development and Globalization: Facts and Figures report.
Trade: COVID-19 has severely hit SIDS’ services exports, heavily reliant on tourism Services exports contribute on average 25% to SIDS’ GDP and almost half of their exports consist of travel services. SIDS import more goods than they export – 24 of them had a negative trade balance in goods of more than 55% of imports in 2020. SIDS tend to import manufactured goods and export commodities, especially food. High trade openness, the average of sum of exports and imports of goods and services relative to GDP, exposes SIDS to greater market fluctuations than other developing economies. SIDS’ trade openness averaged 95% for the period from 2005 to 2019.
Many SIDS are poorly connected in terms of maritime connectivity, paying approximately 7% more than the world average for freight for transport of their imports. Digital connectivity in SIDS is quite high as it’s not constrained by geography. Nonetheless, exports of ICT goods by SIDS account for a relatively small share of total merchandise exports, averaging between 0.5% and 3% in the period from 2000 to 2019.
FDMD Okamoto’s Remarks at the 2021 Public Debt Management Forum (IMF)
Allow me to make three observations about the overall context for the discussions we will have here today. First, while the global outlook has improved dramatically thanks to breakthroughs in vaccine development, as well as extraordinary monetary and fiscal support, many risks remain. For Emerging Markets, gross-financing needs remain high, at 14 percent of GDP, while sovereign-bank nexus risks are growing. It is concerning that 60 percent of debt issued after January 2020 has ended up on domestic banks’ balance sheets. The second observation I’d like to make is that we need to ensure everyone has a fair shot at receiving the vaccine, benefiting from the recovery, and achieving their future goals. To accomplish this, public debt increases are inevitable. “Ensuring a fair shot for all” also means tackling debt vulnerabilities early. Where debt is unsustainable, it should be restructured without delay. While gaps remain in the international debt restructuring architecture, the G20 Common Framework now provides a new and more inclusive forum for LICs to negotiate debt restructurings. It is imperative that the international community invigorate the Common Framework, and the IMF has committed to provide the technical support needed to achieve this goal. Lastly, I would like to stress the importance of debt transparency, especially in these uncertain times.
Pandemic Relief Policies Need More Resources, Better Design (Inter Press Service)
Pandemic relief measures in developing countries have been limited by modest resources, fear of financial market discipline and policy mimicry. COVID-19 has triggered not only an international public health emergency, but also a global economic crisis, setting back decades of uneven progress, especially in developing countries. LMICs must address various urgent needs and other short-term problems. They need to finance emergency contagion containment and relief measures for those most adversely hit by the pandemic. What makes the pandemic economic shocks different?
World Bank opposes vaccine intellectual property waiver as WTO talks resume (Reuters)
World Bank President David Malpass said on Tuesday the bank does not support waiving intellectual property rights for COVID-19 vaccines at the World Trade Organization out of concern that it would hamper innovation in the pharmaceuticals sector. His comments on the subject, made during a call with reporters on World Bank economic forecasts, came as WTO negotiations over the proposed waiver resumed in Geneva. Asked whether he backs a WTO vaccine IP waiver, which India, South Africa and other emerging market countries argue is needed to expand vaccine access, Malpass said: “We don’t support that, for the reason that it would run the risk of reducing the innovation and the R&D in that sector.”
WTO panel considers easing protections on COVID-19 vaccines (Associated Press)
Envoys from World Trade Organization member nations are taking up a proposal to ease patents and other intellectual property protections for COVID-19 vaccines to help developing countries fight the pandemic, an idea backed by the Biden administration but opposed in other wealthy countries with strong pharmaceutical industries. On the table for a two-day meeting of a WTO panel opening Tuesday is a revised proposal presented by India and South Africa for a temporary IP waiver on coronavirus vaccines. At stake in the meeting is whether the various sides can move toward drawing up a unified text, a key procedural step that could unlock accelerated negotiations. Inside observers cautioned, however, that a major breakthrough was not expected.
WTO members ready for text-based negotiations (BusinessLine)
UN experts to G7: Production of safe COVID-19 vaccines must outweigh profit (UN News)
“Everyone has a right to have access to a vaccine for COVID-19 that is safe, effective, timely and based on the application of the best scientific development”, the experts said ahead of the three-day Summit of the G7 intergovernmental group of leading countries in the United Kingdom, which begins on Friday. The nine independent experts said it was time for “international solidarity and cooperation” to assist all Governments in vaccinating people and saving lives. “It is not the time for protracted negotiations or for lobbying to erect barriers in order to protect corporate profits”, they underscored. “Billions of people in the Global South are being left behind. They see vaccines as a mirage or a privilege for the developed world”, explained the experts, which, they added, would “unnecessarily prolong the crisis, drastically increase the death toll and deepen economic distress, possibly sowing the seeds of social unrest.”
Trade and food security: When an agreement delayed becomes a human right denied (UNCTAD)
Access to food should never be a luxury. It is a fundamental human right. Yet in 2020, 155 million people faced severe food insecurity. And the situation could deteriorate further. Food prices are perilously climbing to heights like those that have sparked food crises and riots in many parts of the world during the last two decades. Making sure this situation does not worsen – and in fact improves – depends on many factors. One has to do with the capacity of a country to produce food at home and import it from abroad. This is where trade comes in, and its role is not minor. The value of food imports has tripled since the beginning of the century, and today about 80% of the world’s population is fed in part by imports.
Global food trade is buoyant, as are prices (FAO)
Global food trade is poised for a resilient year ahead even as international food commodity prices are set to remain high amid supply and demand uncertainties, according to a United Nations report released today. And contrary to widespread predictions of a collapse in international food markets, trade flows continued to reach new highs during the ongoing COVID-19 pandemic, says a report published by the Food and Agriculture Organization (FAO). In fact, on a global level, trade in agricultural products – particularly less-perishable foods – performed more robustly than the broader merchandise sectors. World output of the major food commodities is expected to increase in the year ahead, with the exception of sugar, which is forecast to decline for the third consecutive year and fall short of global consumption, pointing to the need to run down inventories.
Ambitious $104 million program targets land degradation in Africa and Central Asian countries (FAO)
The global launch of a $104 million initiative signals an ambitious effort by a range of partners to safeguard drylands in the context of climate change, fragile ecosystems, biodiversity loss, and deforestation in 11 African and Central Asian countries. Funded by the Global Environment Facility and led by the Food and Agriculture Organization of the United Nations (FAO), the Sustainable Forest Management Impact Program on Dryland Sustainable Landscapes helps pave the way for initiatives linked to the UN Decade on Ecosystem Restoration. The Program will be implemented in partnership with the International Union for the Conservation of Nature, the World Bank, and the World Wildlife Fund. The 11 countries covered are: Angola, Botswana, Burkina Faso, Kazakhstan, Kenya, Malawi, Mongolia, Mozambique, Namibia, Tanzania, and Zimbabwe.
How can the EU’s border carbon adjustments avoid unintended consequences for LDCs? (Trade 4 Dev News)
Border Carbon Adjustments (BCAs) are a carbon price imposed on goods when they are imported into a jurisdiction with a higher carbon price. BCAs are intended to level the playing field between domestic products that adhere to climate change targets and imported products that do not. Such adjustments can help to maintain domestic climate ambitions and may encourage low-carbon investment throughout global supply chains.
Currently, LDCs overall do not have significant exports in any of the sectors that the EU’s new BCA scheme is likely to target, though Mozambique does feature as an important supplier of aluminium. But, coverage of the EU’s Emissions Trading Scheme (ETS) is likely to grow in the future and therefore so too the scope of BCAs. Additionally, there is scarce information on the potential for LDCs’ indirect exports to be affected through ripple effects in supply chains. There is potential to disincentivise exports that may serve sectors where BCAs are applied. For example, LDCs could be affected not only because they directly export to the EU, but also supply the EU indirectly, e.g. through other processing countries. Should those countries be hit with BCAs, LDC inputs could also be penalised and this may threaten export growth and economic diversification opportunities.
In short – LDCs will need enabling frameworks and substantial support to ensure that they are not penalised by BCAs, whether through indirect exports into the EU or the additional costs associated with compliance for direct exports.
Related News
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National
South African Industrial Hub Has Found a Faster Route to the Sea (BloombergQuint)
A new inland transit facility between South Africa and Mozambique could slash transport times between the Maputo port and the region’s industrial and business hub.DP World’s new dry port depot in Komatipoort, a town on South Africa’s eastern border with Mozambique, operates as a bonded container facility, allowing shippers to clear customs quicker when they arrive from the Maputo port that’s a 100-kilometer (62-mile) drive away. That way, a container can reach the Gauteng province with South Africa’s financial hub, Johannesburg, and capital, Pretoria, within a day of it arriving in Maputo, the Dubai-based port operator said. Durban harbor, which handles 69% of South Africa’s maritime imports, has struggled to meet demand and cut transit times, with inbound containers spending an average of three days in the port, and those for export almost double that time.
SA’s foreign policy and trade strategy on our key partnership with Asia and Middle East (Daily Maverick)
One of the major determinants of the strength of the short-term economic recovery after Covid-19 will be the effectiveness of pandemic containment measures. South Africa intends to strengthen cooperation with the Asia and Middle East region in containing further Covid-19 outbreaks. As part of this strategy, we are aggressively pursuing opportunities towards the production of vaccines in Africa. South Africa, alongside India, has submitted a proposal to the World Trade Organization for a temporary waiver of certain rules in the Trade-Related Aspects of Intellectual Property Rights (Trips) agreement to facilitate wider access to technologies needed to produce vaccines and medicines, especially to the poorer countries. We are pleased with the support of the international community that we have received. A temporary waiver will allow the use of intellectual property, to share technology transfer, to produce vaccines and therapeutics, lower prices and expedite distribution to everyone, everywhere. Effective and comprehensive global vaccination is vital to ending the pandemic.
Gas a bridge for South Africa to become a low-carbon economy (Engineering News)
South Africa will need to use gas as a “very solid bridge” to ensure a just and inclusive transition to a low-carbon economy, University of the Witwatersrand (Wits) Business School professor Maurice Radebe has said. The feedstock’s acting as a bridge, he explained during a presentation at the Enlit Africa conference on June 8, is feasible when one considers that gas has 55% less emissions than coal.
South African organization calls for more voices of youth in BRICS, other multilateral institutions (Xinhua)
The South African BRICS Youth Association (SABYA) on Tuesday called for active participation by young people in multilateral institutions like BRICS, the African Union and United Nations, saying it would like to hear more voices of the youth in the local, regional and global institutions. “We seek to maximize youth participation in BRICS and other international engagements. We hope to build a cohort of policy-makers and influencers who are key players in creating a world free of internalized, interpersonal, and institutional oppression in strategic platforms such as BRICS, G20, UN, AU and others,” said founder and executive chairperson for SAYBA Raymond Matlala. “If we can get our youth to meaningfully participate in critical issues that affect the youth globally, then we can create a network of young diplomats to tackle challenges in making the world a better place.”
Kebs approves new code of conduct for miraa trade (Business Daily)
The Kenya Bureau of Standards (Kebs) has approved a new code of conduct for the miraa sector to promote quality standards during harvesting, packaging, and loading. The Kenya Code of Practice for the miraa (khat) standards requires growers, propagators, aggregators, transporters, shippers and cargo handlers to observe hygiene practices, ensure sanitary operations and comply with food packaging requirements. Others include keeping relevant records and labelling system for traceability as well as upholding worker’s health, safety and welfare issues. “The code of practice will ensure hygienic production and handling from the farms to final distribution channels,” Bernard Njiraini, Kebs managing director said.
Kenya to intensify efforts to curb illegal fishing along coastal strip (Xinhua)
Kenya said Tuesday it will intensify efforts in preventing illegal fishing along the coastal strip. Francis Owino, the principal secretary in the State Department for Fisheries, Aquaculture and the Blue Economy, said that this has been achieved through acquisition of a patrol vessel, operationalizing surveillance of the command center, and training personnel and vessel automation identification system. The official noted that the country has embraced the plan of action that came from the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing which was adopted in 2009 by the United Nations Food and Agriculture Organization (FAO). Kenya became a party to the FAO Agreement on Oct. 24, 2017.
Kenya, Ethiopia one-stop border post at Moyale opens (The East African)
The much-awaited Moyale One-Stop Border Post (OSBP) on the Kenya-Ethiopia border has finally commenced operations. This means that the border regulatory officials clearing traffic, cargo and persons from both Ethiopia and Kenya will now relocate to Moyale and sit side by side on either side of the border, where they will undertake exit and entry formalities in a joint and/or sequenced manner. “Let us utilise the OSBP and explore its opportunities to facilitate trade between Ethiopia and Kenya,” said Kennedy Nyaiyo, Kenya’s head of delegation and the Secretary of Kenya’s Border Management Secretariat. “The OSBP will improve efficiency by reducing time and transport costs for businessmen, traders, tourists, transporters, and communities while crossing from one partner state to another,” said Mr Abenet Bekele, TMEA Ethiopia Deputy Country Director.
Uhuru Kenyatta urges Ethiopia to open up market for M-Pesa (The East African)
Kenya’s President Uhuru Kenyatta on Tuesday evening urged the Ethiopian government to consider opening up opportunities for mobile money services as part of its ongoing telecommunications liberalisation process. “Studies have shown that enhanced access to mobile financial services have a great potential to reduce poverty as more people are enabled, easier and safer savings and in effect, greatly influencing the kind of choices they make in life,” President Kenyatta said. “In Kenya, the success of M-Pesa, Africa’s, if not global, first mobile money platform, is a classic example of what possibilities lie in mobile financial services, if fully exploited,” said President Kenyatta. “Women, have particularly been empowered by these services, and are now able to participate meaningfully in the economy, alongside men. This is an area we must devote our collective efforts to as we usher in the digital economy,” he said.
Kenya and Rwanda: Best friends on an intra-tourism drive in Africa (eTurboNews)
The framework of an agreement is expected to speed up cooperation between Kenya and Rwanda – best friends so to speak – to improve the East African region’s competitiveness as a tourism destination. The two countries, through the Kenya Association of Travel Agents (KATA), Rwanda Development Board (RDB), Rwanda Chamber of Tourism (RCT), and the East African Tourism Platform have inked a partnership agreement to speed up the development of tourist and leisure business in the East African region. Under the signed agreement early this month, the partner states will collaborate to address the challenges that the East African region faces in its tourism and travel industry. The signed agreement will help to chart out and explore various solutions and initiatives that can help transform tourism and travel business, then market regional tourism offerings to potential new travelers in new source markets as well as promote East African regional travel.
MSMEs hold key to increasing Ghana’s Intra-African trade – Report (Ghanaian Times)
The future of Ghana’s increased intra-African trade under the Africa Continental Free Trade Area (AFCFTA) trade lies with Micro, Small and Medium Enterprises (MSMEs), a new study by CUTS Ghana has found. “With MSMEs accounting for a substantial amount of economic activity in the country, the AfCFTA provides an opportunity for them to export to other African countries, thus boosting intra-African trade. MSMEs form the bedrock of economic activity in Ghana and contribute immensely to reducing unemployment rates and the general growth of the economy,” the CUTS Ghana new study said in a new study titled “Assessment of Ghanaian Private Sector Readiness for AfCFTA Implementation”.
Malawi’s trade ministry & ATPC in meetings to review and validate its AfCFTA national strategy (UNECA)
Malawi’s Trade Ministry, in collaboration with the African Trade Policy Centre (ATPC), a unit of the Economic Commission for Africa (ECA), on Monday commenced the review and validation of the country’s African Continental Free Trade Area (AfCFTA) implementation strategy. Director of the Regional Integration and Trade Division at the ECA, Stephen Karingi, appealed to the Malawian government to create a conducive environment for the private sector, as the body to implement the strategy, to thrive by investing heavily in execution and implementation of the strategy. Mr. Karingi, who was represented by Batanai Chikwene, a Management Officer with the ATPC, said: “The government will have to provide an environment in which exporters and importers can do business and set up firms that can compete globally. The importance of mutually reinforcing fiscal, monetary, industrial and trade and trade promotion policies cannot be overemphasized.”
Zimbabwe, Zambia pursue joint venture manufacturing sector projects (Fibre2Fashion)
Zimbabwe and Zambia are working on setting up industrial joint ventures riding on the recent signing of a memorandum of understanding (MoU) aimed at facilitating close collaboration between the two countries towards rejuvenating the manufacturing sector, including textiles, agriculture and agro-processing, petrochemicals, and forest-based industries. Zimbabwe’s industry and commerce minister Sekai Nzenza told regional ministers at the 4th Common Market for Eastern and Southern Africa (COMESA) Committee of Ministers of Industry last week that the joint venture efforts would assist the two sides to unlock higher economic potential in line with regional industrialisation goals.
AGOA extended to 2025; US Ambassador says there’s huge demand for Ghanaian products (MyJoyOnline)
The Africa Growth and Opportunity Act (AGOA) that gives Ghanaian and other African exporters access to the American market, has been extended to 2025. The American Ambassador to Ghana, Stephanie Sullivan, disclosed this to Joy Business. The reason for the renewal and extension, according to the US Ambassador, is due to the high demand of Ghanaian goods and also the resolve by the US government to grant Ghanaian exporters some certainty in their exports to the US. “AGOA is in force till 2025. That gives us predictability and certain. There are 18 products that can be exported through the West African Trade Hub. We have done some capacity building to help them meet those standards. One other issue is packaging of which we are dealing with. There is a huge market for Ghanaian products and my team and I are eager to work this out,” she told host of Joy News Market Place, Charles Ayitey.
Morocco-USA trade increased fivefold since 2005 (The North Africa Post)
Trade between Morocco and the United States has increased fivefold since 2005, the year before the entry into force of the Free Trade Agreement (FTA) between the two countries, to reach 5 billion dollars in 2019, said, Monday in Casablanca, the Chargé d’Affaires of the US Embassy in Morocco, David Greene. This commercial dynamic has allowed the creation of thousands of jobs and contributed to the economic development of the two countries, underlined David Green at an event celebrating the 15th anniversary of the American-Moroccan Free Trade Agreement.
Africa
African Union Launches World’s Largest Single Electricity Market (AFSEM)
The African Union officially launched the African Single Electricity Market (AfSEM), the world’s largest continent-wide energy trading program meant to interconnect all 55 African Union Member States through efficient, affordable, and sustainable electricity market. The event took place on 3rd of June 2021. H.E. Dr. Amani Abou-Zeid highlighted that the African Single Electricity Market (AfSEM) is a timely response to bridge the electricity gap in Africa by optimizing the continent’s abundant renewable energy sources towards achieving 100 percent access to electricity in the continent by 2030 in line with the AU Agenda 2063 and the UN Sustainable Development Goal Number 7. “AfSEM is yet another milestone to advancing our continent’s integration agenda. Well interconnected and efficient national, regional, and continental electricity markets will further human development, enhance economic prospects of the continent leveraging the African Continental Free Trade Area (AfCFTA), underpinning productive transformation, industrialization, digitalization and job creation and that is what AfSEM is meant for,” underscored Commissioner Abou-Zeid.
AfCFTA: Opportunities abound for SMEs in agric (The Nation Newspaper)
The African Continental Free Trade Area (AfCFTA) agreement is one of the most ambitious regional integration efforts of the 21st Century, aimed at fostering economic transformation. Many strategies are being deployed in getting small businesses in agriculture and services, to benefit from opportunities provided through AfCFTA. Helping enterprises in Africa to build capacities, expand their market knowledge, export readiness and business linkages, are seen as key elements to the development of intra-African trade. The Pan-African Farmers’ Organisation (PAFO) said enhancing the competitiveness of small and medium-sized enterprises(SMEs) in agribusiness to explore opportunities provided by AfCFTA could empower them to trigger transformation across the continent. Although it is a neglected sector, more than 70 per cent of the population on the continent, according to analysts are involved in the sector.
Mastercard Foundation to deploy $1.3 billion in partnership with Africa CDC to save lives and livelihoods (Africa CDC)
The Mastercard Foundation has announced that it will deploy $1.3 billion over the next three years in partnership with the Africa Centres for Disease Control and Prevention (Africa CDC) to save the lives and livelihoods of millions of people in Africa and hasten the economic recovery of the continent. The Saving Lives and Livelihoods initiative will acquire vaccines for at least 50 million people, support the delivery of vaccinations to millions more across the continent, lay the groundwork for vaccine manufacturing in Africa through a focus on human capital development, and strengthen the Africa CDC. “Ensuring equitable access and delivery of vaccines across Africa is urgent. This initiative is about valuing all lives and accelerating the economic recovery of the continent,” said Reeta Roy, President and CEO of the Mastercard Foundation. “In the process, this initiative will catalyze work opportunities in the health sector and beyond as part of our Young Africa Works strategy,” she added.
Afreximbank Supports ARSO in the Harmonisation of African Automotive Standards (Afreximbank)
African Export-Import Bank (Afreximbank) is supporting the African Organisation for Standardisation (ARSO) to harmonise standards in the automotive sector in Africa in order to facilitate an accelerated development of the sector across the continent. The harmonised standards are to be adopted by individual African countries, facilitating cross-border trade, under the African Continental Free Trade Agreement (AfCFTA). There are 1432 international automotive standards worldwide largely developed by the International Organisation for Standardisation and the American Society for Testing and Materials. To initiate the process of developing African Automotive standards, ARSO prioritised what are referred to as “Whole Vehicle Standards” encompassing motor vehicle components, accessories, and replacement parts.
The ECOWAS Commission organized an online meeting of Ministers responsible for Infrastructure, Transport, Telecommunication/ICT, Energy and Water Resources sectors of ECOWAS Member States on June 1, 2021. The objective of the Meeting was to validate the ECOWAS Regional Infrastructure Masterplan study report and to recommend it for adoption by ECOWAS Council of Ministers. The Masterplan is the strategic framework for regional infrastructure development to meet projected economic growth and development needs of the ECOWAS region for the horizon 2020-2045.
Kisumu port, rail gives hope to industries and regional trade (The Star, Kenya)
The revival of the old Metre Gauge Rail to Kisumu and the link to Mombasa through the SGR is expected to boost trade in the region and with neighbouring countries. Local traders and industries are hoping to benefit from the projects with the Kenya Association of Manufacturers (KAM), Kenya National Chamber of Commerce and TradeMark East Africa terming the infrastructure as a “game-changer”. It includes the upgraded Kisumu Port expected to boost exports and imports through the lake transport network mainly between Kenya, Uganda and Tanzania. “The railway line shall increase the efficiency of movement of raw materials to industries in Rift Valley, Western and Nyanza. Additionally, it shall speed up the transportation of finished goods from the factory to the markets,” chief executive Phyllis Wakiaga told the Star. The port will enhance market access in countries surrounding Lake Victoria. “We hope to see increased volumes of goods transported through Lake Victoria, into the East African Community markets,” said Wakiaga.
Members of East Africa Community Explore Potential Use of CBDC for Alternative Regional Payment System (Bitcoin News)
Six East African states are reportedly set to explore the possibility of using central bank digital currencies (CBDC) as an alternative to their shared payment system. The six countries, which are all members of the East Africa Community (EAC) trading bloc, are hoping this alternative will create a pathway that leads to the attainment of “a single currency for the region by 2024.” The revelations of the EAC’s digital currency plan follow the bloc secretariat’s “consultancy call for a feasibility study” on the planned upgrade of the East African Payment System (EAPS). Since its launch in 2014, the EAPS has failed to function properly due to member states’ distrust of each other’s currency.
The Secretary General of the East African Community, Hon. (Dr.) Peter Mathuki has taken over from SADC Executive Secretary, Dr. Stergomena Tax, the Chairmanship of the COMESA-EAC-SADC Tripartite Task Force (TTF) for the next one year. Making his remarks during the hand-over ceremony held virtually, Dr. Mathuki commended Dr. Tax for her exemplary leadership over the past year. He specifically noted the commitment and dedication exhibited by Dr. Tax especially when the implementation of agreed activities was impeded by the Covid-19 pandemic. Dr. Mathuki pledged to ensure continued collaboration amongst the RECs for their mutual benefit, particularly in enabling the Tripartite Free Trade Area (TFTA) enter into force by championing Member/Partner States who have not ratified the TFTA Agreement to do so in the near future.
Kenya and EAC sued over $2.34b IMF loan (The East African)
Kenya’s Attorney-General Justice Kihara Kariuki and the EAC Secretary-General Peter Mathuki have been named as first and second respondents respectively in a case filed by two Kenyan organisations at the East African Court of Justice. In an application before the EACJ, the Peasants League Ltd Company (PLLC) and the Kenya Abolition Debt Network (KABN) have sued the government and the East African Community over Kenya’s International Monetary Union loans. Kenya is accused of failing to observe the public debt ceiling as provided for in the EAC Monetary Union in its decision to borrow $2.34 billion (Ksh255.9 billion) from the IMF in April.
Climate change and the future of development financing across Africa (Ventures Africa)
One of the trends in recent years has been the shrinking of funds available to developing countries. Funding available to Africa has shrunk to $45 billion in 2020, down 10 per cent from 2019 according to the World Investment Report 2020. This is projected to drop even further owing to the impact of the COVID-19 pandemic on businesses globally. One of the challenges limiting foreign direct investment is the perceived lack of equity contribution by local players who seem insistent on pitching these projects primarily on the grounds of being able to access development funds. To combat this, most DFIs have aligned their strategies towards backing projects that align with SDGs and are seen as bankable while representing an equity contribution from the proposing organisations and tying into the development agenda of the sponsoring agency.
Global
Global Economic Prospects: The Global Economy: on Track for Strong but Uneven Growth as COVID-19 Still Weighs (World Bank)
A year and a half since the onset of the COVID-19 pandemic, the global economy is poised to stage its most robust post-recession recovery in 80 years in 2021. But the rebound is expected to be uneven across countries, as major economies look set to register strong growth even as many developing economies lag. Growth among emerging market and developing economies is expected to accelerate to 6% this year, helped by increased external demand and higher commodity prices. However, the recovery of many countries is constrained by resurgences of COVID-19, uneven vaccination, and a partial withdrawal of government economic support measures. Excluding China, growth is anticipated to unfold at a more modest 4.4% pace. In the longer term, the outlook for emerging market and developing economies will likely be dampened by the lasting legacies of the pandemic – erosion of skills from lost work and schooling; a sharp drop in investment; higher debt burdens; and greater financial vulnerabilities. Growth among this group of economies is forecast to moderate to 4.7% in 2022 as governments gradually withdraw policy support.
The World Logistics Passport (WLP) Welcomes Ten New Countries at Inaugural Global Summit (PR Newswire India)
As the world’s first global freight loyalty scheme, WLP offers members access to three tiers of benefits – silver, gold and platinum – provided by a range of WLP partners including airport authorities, port operators, customs services and others that help to make supply chains more efficient. The decision of the Kenyan International Freight and Warehousing Association (KIFWA) to join the WLP as the first Partner in Kenya lays the foundations for the launch of Kenya as a hub for East Africa. With improving infrastructure networks and close trade ties across East and Central Africa, Kenya is well placed to support the engagement of companies across the region; and the WLP continues to work with other potential partners in Kenya as well as freight forwarder associations and chambers of commerce in neighboring countries to bring them into the network. The South African Association of Freight Forwarders (SAAFF) has also joined the WLP as a partner. These two developments follow the news earlier in June that Ethiopia, Botswana, Zimbabwe, Mozambique, Burkina Faso and Guinea have all joined the WLP. With these new entrants to the program, African and global traders will have easier east-west access to trade routes, while also capitalizing on key trading centers across Southern and Eastern Africa.
Gender equality in poorest nations hinges on post-pandemic policy choices (UNCTAD)
Although the number of confirmed COVID-19 cases per capita have been lower in least developed countries (LDCs) than expected, the socio-economic fallout for their populations has been dire, pushing an estimated 32 million more people into extreme poverty in 2020. Women in these countries have borne the brunt of the crisis, as they work mainly in the hardest-hit sectors, such as tourism, horticulture and textiles. A new study by UNCTAD and the Enhanced Integrated Framework (EIF) warns that the gender gap in income and overall well-being in LDCs will continue to worsen unless COVID-19 recovery efforts adopt a gender perspective. “As policymakers urgently try to restart their economies, they should ensure that both women and men receive the necessary means and support to recover from this crisis,” UNCTAD Acting Secretary-General Isabelle Durant said. The study, Trade and Gender Linkages: An analysis of Least Developed Countries, provides recommendations to help LDC governments adopt trade-related polices that are more gender responsive.
Ensuring a greener recovery through trade (UNCTAD)
Although trade is a source of income, jobs, and opportunities, it generates 8 billion tons of climate-heating carbon emissions every year. In 2020, global CO2 emissions fell by 5.8% as measures to curb the COVID-19 pandemic locked down many populations and economic sectors. But a steep uptick is expected as global trade rebounds from the crisis. The second edition of the United Nations Trade Forum will shine a light on the actions needed for an inclusive and green recovery from the coronavirus pandemic. The pandemic has highlighted trade’s pivotal role in the global provision of goods and services. Governments have used trade policy to positively respond to the coronavirus crisis, which also exposed many fault lines and exacerbated pre-existing vulnerability and inequality.
Food systems offer huge opportunities to cut emissions, study finds (Phys.org)
A new global analysis of greenhouse-gas emissions from food systems says that such emissions have been systematically underestimated – and points to major opportunities to cut them. The authors estimate that activities connected to food production and consumption produced the equivalent of 16 billion metric tons of carbon dioxide in 2018 – one third of the human-produced total, and an 8 percent increase since 1990. A companion policy paper highlights the need to integrate research with efforts to reduce emissions. The papers, developed jointly by the UN Food and Agriculture Organization, NASA, New York University and experts at Columbia University, are part of a special issue of Environmental Research Letters on sustainable food systems.
High time for global rules on fishing subsidies, the DG and Chair declare on Ocean Day (WTO)
“Two decades is too long for ending subsidies that finance the relentless overexploitation of our ocean. Governments need to deliver a WTO fisheries subsidies agreement now,” DG Okonjo-Iweala said. “Members have made real progress but we’re not there yet. Next month, trade ministers from around the world will meet virtually to look at these negotiations. We must seize this opportunity to narrow the remaining gaps,” she said. “WTO rules on fishing subsidies will help to prevent the collapse of global fish stocks. We need these rules for the sake of the environment, food security and livelihoods worldwide. It’s time to turn the tide in favour of ocean health and a globally sustainable blue economy,” she said.
Technical assistance report highlights positive impact of 2020 activities despite COVID-19 (WTO)
Despite limitations imposed by the pandemic, 216 activities were carried out by the WTO Secretariat in 2020, benefiting 15,000 participants across the world. They included both e-learning activities that participants follow individually and group courses held virtually. Entitled “Adapting to Digital Learning – WTO Technical Assistance during the Pandemic”, the report looks at the evolution of technical assistance management and resources in 2020, developments in the training curriculum and countries’ participation in the WTO’s programmes. It also analyses the inclusiveness and effectiveness of such activities.
EU proposes a strong multilateral trade response to the COVID-19 pandemic (Modern Diplomacy)
The Commission welcomes today’s provisional political agreement between the European Parliament and the Council on the Regulation governing the EU Digital COVID Certificate. This means that the certificate (previously called the Digital Green Certificate) is well on track to be ready end of June, as planned. Today’s agreement has been reached in record time just two months after the Commission’s proposal. Work still remains. At EU level, the system will be ready in the next few days. It is now crucial that all Member States press ahead with the roll-out of their national systems to ensure that the system can be up and running as soon as possible. This is what EU citizens rightly expect. Today’s agreement has demonstrated that with the commitment and cooperation of all, the EU Digital COVID Certificate will be available on time.”
IEA calls on private finance to prevent surge in emerging economy emissions (S&P Global)
Emissions from emerging and developing economies (EMDEs) are projected to grow by 5 gigatons over the next two decades. In contrast, emissions are projected to fall by 2 Gt in advanced economies, and to plateau in China, the IEA said in a report, Financing Clean Energy Transitions in EMDEs. “By the end of the 2020s, annual capital spending on clean energy in these economies needs to expand by more than seven times, to above $1 trillion, in order to put the world on track to reach net-zero emissions by 2050,” the IEA said. Emerging economies in Africa, Asia, Europe, Latin America and the Middle East include the world’s least developed countries as well as many middle-income economies, emerging giants of global demand such as India and Indonesia, and some of the world’s major energy producers. These economies account for two-thirds of the world’s population but only one-fifth of investment in clean energy and one-tenth of global financial wealth.
Global supply chain squeeze, soaring costs threaten solar energy boom (Engineering News)
Global solar power developers are slowing down project installations because of a surge in costs for components, labor, and freight as the world economy bounces back from the coronavirus pandemic, according to industry executives and analysts interviewed by Reuters. The situation suggests slower growth for the zero-emissions solar energy industry at a time world governments are trying to ramp up their efforts to fight climate change, and marks a reversal for the sector after a decade of falling costs.