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South Africa Parliament Calls for Comments on Fair Use (infojustice)
South Africa Parliament’s Portfolio Committee on Trade and Industry has invited a further round of public comments on the Copyright Amendment Bill provisions to introduce fair use and expand limitations and exceptions for libraries, education and other public interest uses. The Committee invites submissions with reference on the expansions on the Bill’s provisions fair use and for other purposes in Sections 12 and 19. It also invites comments on additional sections of the Bill that may implicate the “alignment” of the Bill with the provisions of several international treaties. All of these provisions were examined in a recent Joint Academic Opinion released to the public last month. That Joint Opinion concluded that the current Act lacks adequate limitations for purposes to free expression, access to information, education, and to further language and disability rights.
National Assembly approves Appropriation Bill (SAnews)
The National Assembly adopted the Special Appropriation Bill and Appropriation Bill during its hybrid plenary sitting on Friday. The Appropriation Bill officially allocates money from the National Revenue Fund (NRF) to provide for requirements of the state for the 2021/22 financial year, as required by Section 213 of the Constitution and section 26 of the Public Finance Management Act (PFMA). The national budget of R1.3 trillion for the 2021/22 financial year was tabled on 24 February 2021 by the Finance Minister Tito Mboweni together with the Bill and referred to the Standing Committee on Appropriation for consideration.
The busiest air travel routes in South Africa – before and after Covid (BusinessTech)
The latest 2020 Africa air transport report from the African Airlines Association (AFRAA) shows how air routes in South Africa and its neighbouring nations were decimated during the 2020 Covid-19 pandemic. While air travel is still largely restricted in 2021 due to the Covid-19 pandemic, travel – particularly for business – has slowly normalised. However, the damage caused by the pandemic has made its mark as recorded by the AFRAA. The domestic market in Southern Africa remained dominant, increasing from 66% of all traffic before the Covid outbreak, to 77% in the last quarter of 2020. On the other end, intra-African traffic reduced, as well as traffic outside the continent.
KAM insists 30pc tariff to drive manufacturers out of business (The East African)
The Kenya Association of Manufacturers is opposed to the government’s decision to back a proposal to have a maximum 30 percent common external tariff (CET) rate instead of 35 percent. KAM argues that the current tariff of 25 percent CET as well as the proposed 30 percent rate undermine the country’s industrialisation efforts by favouring foreign imports over locally manufactured goods. The lower CET rate, they argue, could result in the country importing goods that could otherwise be manufactured locally, defeating the purpose of the “Buy Kenya, Jenga Kenya” initiative.
Eswatini highlights considerable strides in renewable energy development (Engineering News)
Eswatini has added two more solar photovoltaic (PV) plants to its sustainable energy portfolio, as another of its projects – the Lavumisa 10 MW solar PV plant – nears completion. In a statement, the Ministry of Natural Resources and Energy acclaimed that eSwatini had made considerable strides in establishing itself as a leader in the roll-out of sustainable energy projects while becoming less dependent on neighbouring Mozambique and South Africa for electricity. Minister Peter Bhembe said the Lavumisa solar plant, which is at completion stage, is the first solar PV plant to be owned and operated by the Eswatini Electricity Company and the first utility-scale solar PV plant in the country.
Uganda’s Economy Recovering from COVID-19 Impact Amid Uncertainties (World Bank)
The Ugandan economy is emerging from the devastating impact of the COVID-19 (coronavirus) health pandemic, but prospects for growth are undermined by increasing pressure on its natural resources, according to the latest World Bank economic analysis for the country. The 17th Uganda Economic Update (UEU), From Crisis to Green Resilient Growth: Investing in Sustainable Land Management and Climate-Smart Agriculture, says that the COVID-19 shock caused a sharp contraction of the economy to its slowest pace in three decades. Household incomes fell when firms closed and jobs were lost, particularly in the urban informal sector. The country’s Gross Domestic Product contracted by 1.1 percent in 2020, and is estimated to have recovered to 3.3 percent during the 2021 fiscal year.
What would it take for mining sector to adopt new technology? (The New Times)
According to Rwanda Mines, Petroleum and Gas Board (RMB) over 50 per cent of the minerals is lost due to poor mining techniques. This, according to Francis Gatare, the CEO of the Board, has an effect on mining productivity for both mining operators and the country’s economy. If not addressed, poor mining techniques could derail efforts to generate $1.5B in annual revenues from the mining sector by 2024. Gatare said that to boost the revenues and meet the set targets more investments in exploration and modern mining techniques.
Malawi Ministry of trade and ATPC open workshops to review and validate its AfCFTA national strategy (UNECA)
The Ministry of Trade in collaboration with the African Trade Policy Centre (ATPC), a unit of the Economic Commission for Africa (ECA), commenced the review and validation of the country’s national implementation strategy of the African Continental Free Trade Area (AfCFTA) today in Blantyre. Speaking at the event, the Director, 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, Management Officer 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.”
Malawi tax measures to spur trade (The Southern Times)
Malawi has unveiled plans to roll out tax measures that will facilitate greater regional integration and boost trade and economic growth. Among these is a duty-free week for imports not exceeding US$3,000. In the 2021/2022 National Budget presentation in Parliament, Finance Minister Felix Mlusu said the duty-free week was designed to primarily support SMEs. Minister Mlusu said Malawi would also increase the COMESA Simplified Trade Regime threshold from US$2,000 to US$3,000, also to bolster small businesses. “This trade arrangement will allow cross border traders to enjoy duty-free status when they import goods originating from other member states in the COMESA region,” he said. The initiatives follow Malawi’s ratification of the African Continental Free Trade Area (AfCFTA) Treaty in January 2021.
Analysts Seek Measures to Boost Local Production, Exports (THISDAYLIVE)
Analysts yesterday called on the federal government to address structural factors, which have jacked up the cost of production of goods, thereby encouraging importation over local production. The advice came on the heels of the country’s N3.94 trillion trade deficit in goods in its external merchandise trade for the first quarter of the year, following higher level of imports over exports. However, total trade increased to N9.76 trillion during the review period, representing 6.99 per cent rise over the N9.12 trillion recorded in Q4 2020. The analysts in separate interviews with THISDAY urged the federal government to also narrow the trade imbalance by making exports more attractive than imports, adding that “though devaluation becomes a tool in achieving this.”
NEXIM Rolls Out N500bn For Non-Oil Export (Economic Confidential)
The Nigeria Import Export Bank (NEXIM) is implementing N500 billion Non-oil Export Stimulation Facility and N100 billion Export Development Fund at single digit interest rate to support the production and export of goods and services. Managing Director and Chief Executive Officer of the NEXIM Bank, Abba Bello, disclosed this in Kaduna at the weekend during the bank’s special day at the 42nd Kaduna International Trade Fair. Bello said the facility, which was being implemented in collaboration Central Bank of Nigeria (CBN), is aimed diversifying the economy from crude oil, which currently accounts for less than 10 percent of Nigeria’s Gross Domestics Product (GDP).
FG: AfCTFA to Boost Africa’s Exports by $560bn (THISDAY Newspapers)
When fully operational, the African Continental Free Trade Area (AfCFTA) agreement will boost exports in the continent by at least $560 billion, the federal government has said. Senior Special Assistant to the Nigerian President on the Public Sector and Secretary, National Action Committee on (AfCFTA-NG), Mr Francis Anatogu, stated this during the first African Local Content Roundtable Conference in Yenagoa, Bayelsa state. According to him, benefits of the AfCFTA include lifting 30 million Africans out of extreme poverty; boosting income of nearly 68 million others who live on less than $5.60 a day; boosting Africa’s income by $450 billion by 2035, a gain of seven per cent and adding $76 billion to the income to the rest of the world. “In addition , the AfCFTA will see the increase in Africa’s exports by $560 billion, mostly in manufacturing, spur the larger wage gain for women to 10.5 per cent as opposed to men’s 9.9 per cent as well as boost wages for both skilled and unskilled workers,” the presidential aide said.
Nigeria: A Bridge To Infrastructure (Global Finance)
An infrastructure-investment deficit has become, perhaps, the most significant constraint to sustainable economic growth in Nigeria and long-term private capital remains in short supply. Power generation and distribution, roads, highways, rail lines, oil refineries, gas pipelines and other critical structures need urgent intervention. No one knows precisely how much money Nigeria needs to remediate its infrastructure. Moody’s Investors Service estimates that it would take approximately $3 trillion over the next 30 years, or a capital expenditure (capex) of $100 billion annually. Such a figure is more than 15 times the national government’s 2020 budget for capex.
Togo inaugurates its first integrated industrial platform (Togo First)
On Sunday, June 6th, Faure Gnassingbé, the Togolese President, inaugurated the country’s first industrial platform, PIA. The ceremony took place less than a year after construction work started. Developed over nearly 400 hectares, in Adetikopé (15 km north of Lomé), the platform materializes a new development vision: “to produce more locally, and be more competitive in international markets.” The project comes as the African Continental Free Trade Area (AfCFTA) is in the pipeline; it was carried out by Arise IIP (under a partnership based on Gabon’s Nkok model). According to its promoters, the PIA aims to create high added value chains (especially in the textile sector), supply raw materials, manufacture on-site, and export finished products. The site includes an industrial zone, a park that can accommodate 12,500 containers, a storage platform for cotton and other agricultural commodities, a truck terminal, and an area of 200,000 m2 dedicated to other logistics activities.
Akufo-Addo launches Ghana’s first national security strategy document (Modern Ghana)
President Nana Akufo-Addo has launched Ghana’s first National Security Strategy Document and commissioned the new National Security Ministry building in Accra. Speaking at the ceremony, Nana Akufo-Addo said the document will serve as the overarching guide for Ghana’s security agencies and their operations. “A prerequisite for the sustainable development of the nation is a secure environment that guarantees the safety of the people, and the preservation of its territorial integrity. It is only when these things are assured that citizens can live peacefully and strive to improve constantly the quality of their lives,” the President said.
Africa
East African Customs administrations confirmed their advancement together under the WCO/JICA Joint Project (World Customs Organization)
Five (5) Customs administrations in East Africa, namely Burundi, Kenya, Rwanda, Tanzania and Uganda, organized its Regional Joint Coordinating Committee (RJCC) meeting of the “Project on Capacity Development for Trade Facilitation and Border Control in East Africa (TF & BC Project)” virtually on 26 May 2021. This Project is implemented by the five Customs administrations with the support jointly extended by the WCO and JICA. With the aims at improving efficiency of border procedures and enhancing border control, the five Customs administrations have made continuous collaborative efforts over the last 3.5 years under the Project on (1) effective One Stop Border Posts (OSBPs) operation, and (2) Customs capacity building on three areas, namely (i) risk management (RM), (ii) post clearance audit (PCA), and (iii) Program Global Shield (PGS). The RJCC meeting was organized to confirm the achievement made through the Project particularly on Customs capacity building component, which is to be completed in June 2021.
Congolese welcomed aboard underfunded EAC with packed tray (The East African)
The much-awaited entry of the Democratic Republic Congo into the East African Community features among items that will require additional funding yet allocation has not been adequately provided for in the 2021/22 budget. The East African Legislative Assembly is now worried that the EAC 2021/22 financial year budget tabled in the House is far below what is needed to accomplish the Community’s agenda. “The Financial Administration Committee which is a sub-committee to the Council has really reduced the budget from $97m to $90m, which is a big challenge to the community,” said Namara. “Remember we are bringing DR Congo and there is a budget for fast-tracking entry. We are creating new institutions and yet we are reducing the budget. It cannot work,” said Mr Namara.
Why EAC needs to embrace tech to curb revenue slump (The Citizen)
With only less than a week before Finance ministers across member states of the East African Community (EAC) present their countries’ budgets for the financial year 2021/22, pundits will be looking up to how they seek to advance the use of technology to effectively collect public revenues. This is because the budget comes against a backdrop of shortfalls in revenue collections, precipitated primarily by the global Covid-19 pandemic.
Aviation Sector Urged to Develop Post-Covid Recovery Plans (COMESA)
Said the Ministers: “Aviation has immense potential to contribute to economic growth and development through opening markets, facilitating trade and enabling African firms to link into global supply chains.” Ministers responsible for transport, energy and Information, Communication Technology (ICT) have called for post COVID-19 recovery plans to ensure the survival of the aviation industry. The recovery plan is meant to deal with the aviation sector’s post pandemic challenges based on the African and international initiatives. During their 12th meeting on June 2, 2021, the Ministers specifically called for collaborations among African airlines and strategic partnerships with global counterparts. Further, they urged Member States to maintain a united front against the pandemic, notably on the potential imposition of travel certificates by some parties in line with African common position, as well as harmonizing the cost of COVID 19 tests and mutual recognition of certificates.
AfDB sets up $10bn to help nations service their debt (Eyewitness News)
The African Development Bank has set up a $10 billion fund to ensure nations on the continent can service their debt and focus on a post-pandemic recovery. The bank’s vice president briefed the media on Monday on the upcoming annual meetings, all of which will focus on getting back on track in a post-COVID world. Khaled Sherif said during the height of the COVID-19 pandemic, 43 of Africa’s 54 countries saw a decline in revenues. Those dependent on oil revenue were especially badly hit. He said the African Development Bank set up a crisis relief fund to help countries cope: “$10 billion and $5.2 billion was disbursed for budget support, to ensure we prevent credit downgrades.”
Energy investment can help Africa boom post-pandemic (EconoTimes)
The case for investing in the Africa is stronger than ever, and not just in spite of the global economic slowdown caused by the pandemic, but because of it. Due to its increasing regional integration, improving relative regional risk profiles, and strong economic fundamentals, Africa will remain a competitive investment destination for decades to come. Specifically, the energy sector will be crucial for the continent’s post-pandemic economic recovery and will be one of the most attractive investment sectors in 2021 and years to come. Stakeholders ranging from the African Development Bank to large-scale private funds recognize the need for cost-efficient industrial energy access as well as universal household electricity. To expand the impact of their investments in the energy sector, development finance institutions (DFIs) and private investors should pay more attention to empowering African-led indigenous energy firms by adjusting their risk analyses and to closing gaps for off-grid solar project financing.
Members of parliament call for sensitisation on free movement (The Guardian Nigeria)
The delegation of the National Assembly of the Republic of Guinea has recommended to Parliament of the Economic Community of West African States (ECOWAS), the need to sensitise citizens of the community on their rights and duties in the area of free movement. Presenting the report during the plenary sitting of the Community Parliament, Alpha Souleymane Bah, Leader of Delegation, on behalf of five other members, told the West African Legislative Assembly that: “One of the factors hindering free movement is that citizens of the Community are ignorant of their rights and duties in the area of free movement. Added to this is the non-harmonisation of administrative and travel documents,” he said. Hon. Bah was speaking on the implementation of the ECOWAS Texts, item number 2, “Protocol on the Free Movement of People and Goods.”
SADC grain prices likely to fall (The Southern Times)
The start of the harvest season in the SADC region is likely to result in a drop of grain prices as most countries expect average to above average yields this year. This is contained in an analysis released this week by the Famine Early Warning System Network. Most countries received normal to above normal rains in the 2020-2021 summer cropping season which increased prospects for good harvests, especially maize, which is a staple to the majority in the region. According to FEWSNET, household access to cash income is expected to improve between May and August as households across most parts of the region where production improved, improved engagement in harvesting labour.
SADC to support medical value chains (The Herald)
The Southern African Development Community (SADC) has moved in to scale up private sector participation in the regional pharmaceutical and medical value chains through enhancement of the Support to Industrialisation and the Productive Sectors (SIPS) joint action. The SIPS is a SADC initiative to facilitate expansion of regional value chains and promoting dialogue between the private and public sectors. It is implemented in all SADC member States, targeting the private sector, and in particular but not limited to small and medium enterprises (SMEs), non-state actors or intermediary organisations and clusters involved in the selected value chains.
Vaccine manufacturing ecosystems (The New Times)
In the discussion on Africa’s need and capacity to manufacture vaccines, it is imperative to look at the broader requirements needed to build and sustain such an important undertaking. Expanding vaccine manufacturing in Africa is a complex undertaking, requiring several factors to align. Critically, the nascent industry needs widescale collaboration among a broad range of stakeholders, including pan-African leadership organisations, regional economic governments, national governments, private-sector players, and global-health actors.
An ecological approach to designing economic sectors is based on ecosystems. An ecosystem is defined as a dynamically stable network of interconnected firms and institutions within bounded geographical space. By taking such a systems approach means that focus is given on both the individual components of the system as well as on the sum of the parts and this is in fact believed to yield maximum results when building economic sectors and visions.
Finally, the general business and market environment needs to be supportive of the ecosystem. Tax systems that are simple and attractive together with investment support schemes are fundamental building blocks. General infrastructure which is sector-supportive, such as electricity, water purification, telecommunications, data centres or air connectivity, will also be important. Access to international markets aided by double taxation agreements is seen as having an important role in developing a sustainable and attractive ecosystem.
During the COVID-19 pandemic advanced economies have tapped their central banks for extensive liquidity support to their economies and to stave off an even deeper global economic crisis. African countries called for a $100 billion stimulus to respond to the pandemic but lacked the tools to finance such an injection of capital. Would strong regional central banks or even a continental central bank have helped? The regional experience of the Economic Community of West African States (ECOWAS) gives a glimpse of what is needed to accomplish monetary integration. But it also highlights the limits of such an approach, the difficulties the continent faces, and some fundamental issues that must be resolved to promote resilience in the region and foster alternative avenues to regional integration.
Towards a West Africa Seed Trade Association (News Ghana)
Major seed businesses in West Africa have met to explore the possibility of setting up a West Africa Seed Trade Association (WASTA) to help tackle some of the intractable challenges facing the seed industry in the region. “There is a window for the private sector to play a role in unleashing the agriculture sector in West Africa,” said Prof. Abdulai Jalloh, CORAF’s Director of Research and Innovation, at the opening ceremony of the online event. Experts agree that without quality seeds, the agriculture system would struggle. Many actors are involved in the sector, including private businesses. Many argue that few actors have the financial resources, such as private seed businesses, to produce and market seeds. “Providing quality seeds to farmers and producers in West Africa is so big a challenge that cannot be left in the hands of governments alone. The private sector must be involved,” argued the CORAF senior official.
Wood processing and trade of wood products in Africa (AfDB)
Although many African countries harbour very valuable forest resources, the continent still imports huge volumes of timber products amounting to around US$ 4 billion annually. One of the explanations to this is the low capacity of the wood processing industry on the continent. Raw logs can be processed into primary, secondary and tertiary wood products for home consumption and export. This provides prospects for upgrading the exports of the primary wood raw materials to the export of secondary and tertiary processed products. Adding value to wood products in this way can lead to jobs and wealth creation in Africa.
Global economy
Updates on the proposed TRIPS Waiver
WTO receives updated petition calling for universally accessible and affordable COVID-19 vaccines (WTO)
A petition signed by over 2.7 million people from around the world calling for universal access to affordable COVID-19 vaccines was received by the WTO on 7 June. It was delivered by Avaaz, an online activist network, and the People’s Vaccine Alliance, a coalition of organizations. The petition brings together the work of more than 40 organizations worldwide, including the Online Progressive Engagement Network (OPEN), Public Citizen, Frontline AIDS, Amnesty International, Oxfam, SumOfUs and the European Citizens’ Initiative for No Profit on Pandemic.
We are a long way from vaccinating the world. Could a patent waiver help? (Brookings)
While the United States has made great strides in vaccinating its population, many low- and middle-income countries are far behind and lack the supply of COVID-19 vaccines they need. Matthew M. Kavanagh joins David Dollar in this episode to explain what could be done to increase the global production of vaccines, including a proposal to waive the World Trade Organization rules protecting the intellectual property for vaccine technology.
APEC members back calls for Covid-19 vaccine IP waiver (Politico)
The U.S., China and the 19 other members of Asia-Pacific Economic Cooperation forum agreed on Saturday to engage in “text-based discussions” at the World Trade Organization aimed at waiving intellectual property protections on Covid-19 vaccines. The group includes Japan and Taiwan, which in the past have expressed reservations about India and South Africa’s IP waiver request. In their joint statement, the APEC trade ministers said “the WTO must demonstrate that global trade rules can help address the human catastrophe of the COVID-19 pandemic and facilitate the recovery.” The 21 economies also issued a stand-alone statement on Covid-19 vaccine supply chains, which outlines the group’s approach to ensuring the trading environment supports the safe and efficient distribution of Covid-19 vaccines and related goods.
Europe Union’s new move may hit India, South Africa’s patent waiver plan (Times of India)
European Union has drawn up a counter proposal which could “undermine” India and South Africa ‘s proposed submission at the World Trade Organization seeking a waiver on intellectual property (IP) on Covid-19 drugs and vaccines.
Presentation to the Joint DTIC and DIRCO Portfolio Committee on the TRIPS Waiver - 1 June 2021
International news
“Give the WTO a chance”: Trade organization’s new boss opens up on her new job (Axios)
Ngozi Okonjo-Iweala, the first woman and first African to become director-general of the World Trade Organization, forged her strength through traumas few political leaders could imagine – let alone endure. In a remarkable interview with “Axios on HBO” – her first extended, in-person TV interview since taking the job in March – the MIT-trained economist and development expert opened up about her nearly “impossible job” and the experiences that shaped her, including her mother’s kidnapping. Why it matters: You’ll hear a lot more about Ngozi in the years ahead. As she admits, she’s taken on “almost an impossible job” of reviving the WTO. The institution, which governs the rules of international trade, is badly broken. On whether intellectual property waivers would be enough to solve the global vaccine distribution crisis: “No, no, no, no. I’ve been very clear… I’ve said it’s not enough.”
Trade and food security: When a trade 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.
Climate change impacts on seaports, threat to development (PreventionWeb)
Seaports are essential for global trade-led development, and for the ‘Blue Economy’. They provide access to global markets and supply-chains for all countries, and are integral to maritime transport, as well as fisheries, offshore energy development, and many economic activities in coastal zones. With over 80 % of world trade volume carried by sea - from port to port -, they are crucial infrastructure nodes that underpin global supply chains and are key to future trade and development prospects, particularly of developing States which currently account for around 60 % of goods loaded and unloaded globally. At the same time, ports are particularly exposed to various natural hazards, due to their locations along open coasts or in low-lying estuaries and deltas; their setting makes them susceptible to impacts of climatic hazards such as rising sea levels, storm surges, waves and winds, riverine and pluvial flooding, as well as tectonic events (e.g. tsunamis).
Ending Harmful Subsidies Could Increase Amount of Fish in the Ocean, Research Shows (The Pew Charitable Trusts)
Some fisheries subsidies – payments that governments make to the fishing industry – are a key driver of this overfishing, and new research has found that eliminating all of these harmful subsidies could help fish populations recover. Specifically, ending all destructive subsidies would result in an increase of 12.5% in global fish biomass by 2050, which translates into nearly 35 million metric tons of fish – almost three times the entire continent of Africa’s fish consumption in a single year. Right now, governments around the world spend $22 billion each year in harmful payments to their fishing sectors. This money allows fleets to continue fishing even when market and operating conditions, such as dwindling catch, indicate they shouldn’t.
The world is in the midst of a fast-moving, Fourth Industrial Revolution (also known as 4IR or Industry 4.0), driven by digital innovation in the use of data, information, and technology. This revolution is affecting everything from how we communicate, to where and how we work, to education and health, to politics and governance. COVID-19 has accelerated this transformation as individuals, companies, communities, and governments move to virtual engagement. We are still discovering the advantages and disadvantages of a digital world.
As life increasingly revolves around digital technologies and innovation, countries are in a race to digitalize at a speed that threatens to leave behind the less advantaged—countries and underserved groups. Data in this paper documents the scope of the digital divide.
Plan to build UK trade ship will break WTO agreement, warn experts (Financial Times)
Boris Johnson’s plan to build a new yacht in the UK is set to fall foul of a World Trade Organization agreement struck by his own government last year, experts have warned. The prime minister last month announced that he hoped a domestic shipbuilder would create the £200m vessel, a successor to the Royal Yacht Britannia, to promote British trade and industry around the world. But while Number 10 has announced its “intention” to build the as yet unnamed ship in the UK, this would breach an agreement that Britain signed up to only eight months ago. The government has set up a national flagship taskforce, hosted in the defence ministry, to oversee the creation of the trade yacht, which will be manned with Royal Navy personnel. However, its purpose is entirely for business rather than security.
This is the third report in ODI’s Economic Pulse series. Pulse 3 explores China’s international economic response as it recovers, reforms, and restructures its economy amidst an uncertain global recovery. This is as China moves on from more reactive policy measures to contain the pandemic and rescue the economy towards risk management and proactive long-term planning. Among its highlights, the report takes a closer look at trade developments between China and the BRI 140, services trade, Chinese companies’ public–private partnerships, debt negotiations and decision-making structures, digital infrastructure, and China’s role in the rare earth elements value chain.
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National
Kganyago: Monetary policy entails trade-offs (The Mail & Guardian)
Demographically, the reserve bank has come a long way, the governor said. “But transformation is more than just about demographics. It’s about culture. And it’s about strategy. Building on what the 1999 executive team had done, we managed to strategically reposition the South African Reserve Bank in pursuit of its constitutional mandate and made it an institution that is focused on policy strategy,” said Kganyago. “That is fundamental. Because that repositioning of the organisation to focus on policy strategy didn’t go unnoticed.”
When the Covid-induced economic crisis hit, the reserve bank responded by cutting the repurchase rate by 300 basis points in 2020. This aggressive policy approach drove interest rates to historic lows. The reserve bank has forecast that economic growth will reach pre-pandemic levels in 2023. But even then, South Africa’s economy will probably still be in the doldrums.
South Africans to remain focused on delivering Economic Reconstruction and Recovery Plan (Engineering News)
At the heart of it is a series of structural reforms and policy changes that are needed to enable investment and other economic activity, with one such key area being that of energy security, especially as South Africa reels from more load-shedding, making the urgency “ever more apparent”. She notes that businesses have recommended that the threshold should increase to 50 MW if these businesses are to maximise the contribution of distributed generation, which could rapidly help to stabilise overall energy supply and set the groundwork for electricity trading in future.
SA’s economic growth is now expected to slow in the first quarter (IOL)
South Africa’s economic growth is expected to have slowed in the first quarter of 2021 as lockdown restrictions and power supply challenges continued to plague activity. Statistics South Africa (StatsSA) will tomorrow release the results of the gross domestic product (GDP) for the first quarter of 2021 following significant growth in the last quarter of 2020. Real GDP increased at an annualised rate of 6.3 percent in the fourth quarter of 2020, driven by the manufacturing sector, as further easing of Covid-19 lockdown restrictions boosted consumer buying power.
FNB chief economist Mamello Matikinca-Ngwenya said economic growth, likely moderated in the first quarter relative to the fourth quarter, but most likely avoided a double-dip recession. “Economic growth in the first quarter was largely supported by the primary sector and the trade sector,” said Matikinca-Ngwenya. “Still, the economy’s real GDP is likely to have been around 4 percent lower in the first quarter of 2021, relative to the first quarter of 2020,” she said.
South Africans to remain focused on delivering Economic Reconstruction and Recovery Plan (Engineering News)
With economic growth fundamental to a brighter future for South Africa, Busines Leadership South Africa (BLSA) CEO Busi Mavuso suggests it is the “only way to turn the trajectory of government’s fiscal position as it will boost earnings” and, therefore, tax collection and start to get debt under control. She adds that it is also an important component to solving the unemployment crisis, which has been exacerbated by 1.4-million fewer people in employment, compared with before the Covid-19 pandemic.
European Commission’s registration of Rooibos hailed (IOL)
The inclusion of ‘Rooibos’/’Red Bush’ on the EU register of protected designation of origin (PDO) list makes way for other indigenous species including Buchu and Aloe Ferox to also be indicated as PDOs and reap similar rewards. According to a statement released by the EU delegation to South Africa, Rooibos is the first African food to receive the status.
EU ambassador to South Africa, Dr Riina Kionka, said: “The Covid-19 pandemic has demonstrated that solid trade relations are critical to ensuring the continuous and uninterrupted supply of safe, nutritious, affordable and sustainable food as well as to providing essential income and jobs along food value chains. This is why South Africa and EU preferential trade relations are so important. “These relations include the protection of geographical indications which enable a stronger connection between unique local food products and European consumer tastes. Geographical indications offer a valuable competitive advantage that is difficult to erode.”
Zim classifies most food products sensitive (The Herald)
Zimbabwe has classified most food products as sensitive and will only be subjected to tariff reduction under the Africa Free Continental Trade Area (AfCFTA) after 10 years, according to the Competition and Tariff Commission. The majority of members have since submitted schedules of concessions and commitments but Zimbabwe is still in the process of finalising the market access offer. A market access tariff offer consists of lists of products the country will have to remove tariffs and duties on in the implementation of the continental free trade pact. Zimbabwe has made a commitment to gradually eliminate duties on 90 percent of its products in the first five years. A further seven percent of its products would be reduced after 10 years and this basket has been classified as sensitive basket.
Digital lenders call for laws that will spur sector growth (Business Daily)
Digital lenders have asked legislators and the Central Bank of Kenya (CBK) to enact non-restrictive laws that will spur the growth of the sector. This comes in the wake of the Central Bank of Kenya (Amendment) Bill, 2020 that seeks to curb high digital lending rates. The bill, set for debate before Parliament, will grant CBK powers to regulate digital lending rates in what is seen as a key step to tame an industry that has for years remained un-regulated. Online lenders will also be subjected to similar rules to commercial banks, including having to seek the CBK’s approval for new products and pricing if the Bill becomes law.
But the Digital Lenders Association of Kenya (DLAK) proposes to add provisions concerning the non-applicability to digital lenders of other provisions of the Central Bank of Kenya Bill (“Bill”) than those indicated in the regulations. This is because digital lenders use their own capital as they are non-deposit-taking institutions, and have a limited scope of activities such as granting small loans.
Aquaculture provides a lifeline for fishing community in western Kenya (CGTN Africa)
Fish farming is a major economic activity in the western Kenya region thanks to the presence of Lake Victoria. The lake is a source of sustenance for tens of thousands of Kenyan fishermen, most of whom venture out into the deep waters each night to obtain the fish. Over time however, the fishing business in Lake Victoria has lost much of its viability, attributed to depleted fish stocks and the availability of cheap imported seafood. In response, various business minds have sought other means of ensuring constant supply of quality fish.
Without Uganda’s backing, Kisumu is a dormant ‘great port’ (The East African)
There was euphoria in Kenya this past week during the 58th anniversary for attaining self-rule as the country’s leadership commissioned the refurbished Kisumu Port, billed as a game-changer in regional logistics. This, coming weeks after the commissioning of the Lamu port – a planned transhipment hub – was timely as hopes of a cross-border standard gauge railway (SGR) network continue to fade out due to financing challenges.
For Kenya, establishing Kisumu as a regional logistics hub makes economic sense. Nairobi has long touted Lake Victoria’s huge potential in cargo and passenger transport. The port is thus a major link between Kenya and its neighbours, and is designed to facilitate easy transportation of petroleum products to Uganda, Rwanda, parts of the DR Congo, Burundi and South Sudan.
Double efforts for food safety, stakeholders urged (Dailynews)
Tanzania is today joining the rest of the world to commemorate World Food Safety Day calling for collaborative stakeholders efforts in ensuring what is consumed is safe and contribute to a healthy body. Maintaining food safety is not a one-man show but should involve stakeholders’ contribution covering the whole production chain.
“Food should be transported most safely. For example for those needed to be transported or conserved in cold facilities should strictly be observed so that the quality of food remains for the safety of the users,” TBS Senior Food Safety Officer, Immaculate Justine said. She added the facilities used to transport and carry food items from one place to another should be of high standards so that the quality of food remains intact.
Angola’s new rules on pre-packaged imports to enter into force (China.org.cn)
The new measures on pre-packaged products imported into Angola will come into force next week, which will allow Angolans to buy cheaper foreign products on domestic markets, the Ministry of Industry and Commerce (MINDCOM) said in a statement on Saturday. According to the new measures, the import of pre-packaged basic basket products will be mandatorily made in large packages. These products include sugar, rice, wheat and corn flour, beans, powder milk, cooking oil, animal feed, coarse and refined salt, wheat semolina, pork and beef, margarine and soap, earlier media reports have said, quoting official figures. The measures will allow products to be imported at lower prices, and give stimulus to small and medium-sized packaging and logistics industries, boosting employment.
In boost for Africa, Senegal aims to make COVID shots next year (Reuters)
Senegal could begin producing COVID-19 vaccines next year under an agreement with Belgian biotech group Univercells aimed at boosting Africa’s drug-manufacturing ambitions, a source involved in funding the project told Reuters. On a continent of 1.3 billion, only about 7 million have been fully vaccinated. The collaboration highlights the opportunities created by a global push to channel money and technology towards production on a continent that makes only 1% of the vaccines it requires. Africa’s struggles to secure vaccine supplies exposed its vulnerability to health crises and pushed governments to find ways to boost medicine and vaccine production. Those efforts are now gaining traction with wealthy countries.
The African Development Bank Group has approved a $1 million grant to boost local content and development of Small and Medium-Size Enterprise (SME) initiatives in the southern African nation of Mozambique. The grant, from the Youth Entrepreneurship and Innovation Multi-Donor Trust Fund (YEI MDTF), will provide technical and institutional assistance to the Instituto para a Promoção das Pequenas e Médias Empresas, or IPEME, for the direct support of start-ups and SMEs, with a particular focus on youth-led and women-owned in business.
Africa
Digital payments and the African Continental Free Trade Area Agreement, by Olabisi Famojuro (The Eagle Online)
In today’s information society, digital payment is an indispensable enabler of trade. This is precisely why experts have more or less hinged the success of the African Continental Free Trade Area agreement on the success of digital payments. “We need to put as much effort as we are putting into getting the operational blocks of the agreement and secretariat going into getting the African payments regulatory landscape similarly integrated. Payments across the continent could probably be made seamless today. The technology is there,” says Dr. Augustina Odame of the Ghana Chamber of Technology.
Cross border trade holds incredible potential. It can also be opportunities for the continent; opportunity to build new and enduring infrastructure, boost e-commerce and fast-track digital payment. Existing players in this space would provide the requisite leadership to drive digital payments across Africa thereby boosting trade. Interswitch, for instance, is providing leadership here.
The continent must yet deal with the perennial issues of ICT infrastructure deficit, the growing digital divide, regulatory inadequacy and gaps in the policy framework. For trade to thrive across borders, initiatives such as AfCFTA are invaluable. AfCFTA is not an end in itself. It would help to flip the switch to turn things around. But it is only a start. It would need plenty of support to remain sustainable.
Digify Africa, Facebook to shed light on digital skills shortage (IT Web)
Skills development body Digify Africa, in collaboration with Facebook, will host the Youth Digital Skills Forum on 11 June. The Forum aims to bring together youth industry leaders to inspire and demonstrate the importance of digital skills in contributing to youth development and the economy. “As we celebrate Youth Month in June, it’s a timely reminder that developing digital and technology skills among the continent’s young people is key to igniting economic recovery,” says Nomonde Gongxeka-Seopa, Facebook SADC’s head of public policy. “We remain committed to investing in Africa’s young people and helping to close the digital divide between and within countries.”
Gains from Africa’s single market must be equitable in order to enrich all nations on the continent (Daily Maverick)
Trading commenced under the African Continental Free Trade Area (AfCFTA) agreement in January. However the journey to increased intra-African trade will be a long one, and some key protocols are still being negotiated. As Africa pursues trade-driven industrialisation, the process must be as inclusive as possible. One of the major criticisms levied against the deal is that gains will accrue disproportionately across Africa. This could happen between countries, within countries, between firms and among people. Pre-existing inequalities mean that more advanced countries, cities, manufacturing firms and the African economic elite could benefit the most from the trade increase.
Another issue is the documented link between import exposure and a rise in protectionism and xenophobia. An eventual flooding of African markets with South African goods could harm local industries and affect employment. This could grow resentment against the AfCFTA and negative sentiments about its promised gains.
The high cost of transporting goods within Africa means that higher trade volumes will reduce the unit cost of transportation. Large firms like the Dangote Group of Companies could more affordably expand production and export their goods across the continent. SMEs may also find it harder to meet the AfCFTA’s rules of origin requirements.
Standards Harmonisation Will Boost Intra-Regional Trade, Says FG (THISDAYLIVE)
The Minister of State for Industry, Trade and Investment, Mrs. Mariam Katagum, has emphasised the need for the harmonisation of standards among member countries of the Economic Community of West African States (ECOWAS). This, she said would help strengthen industrialisation process and enhance quality culture as well as improve intra-regional competitiveness in trade. The minister noted that ECOWAS had over the years made considerable achievements towards the establishment of a common market, especially in the areas of free movement of persons and goods as well as harmonisation of policies. She also lauded the regional institutional arrangement to boost trade, harmonised standards, regulations on implementation of standards and ECOWAS certification mark as well as ECOWAS post COVID- 19 industry recovery programme.
The minister said: “Undoubtedly, the instruments being considered will promote trade and mitigate the impact of the pandemic on our economies, especially for SME’s.”
Africans must trade more among themselves – Togbe Afede (GhanaWeb)
Togbe Afede XIV, Agbogbomefia of Asogli State has called on African Countries to encourage trading among themselves to enhance living standards across the continent. He said Africans must redirect spending to the continent to help foster stronger continental integration, the prime objective of the Africa Continental Free Trade Area (AfCFTA). “It’s sad that trade among African countries accounts for only about 16 per cent of all of Africa’s trade, whereas the situation in Asia is significantly different. “We believe that if Africans can trade among ourselves, it means that our spending that creates income abroad would tend to create income here. We would therefore be able to grow our industries, provide jobs for the youth and of course provide enhanced living standards for our people,” he said.
NEXIM Bank To Address Dearth Of Bankable Projects (Leadership)
Managing Director, Nigerian Export-Import Bank (NEXIM), Mr. Abubakar Abba Bello, has said that the bank is set to address the dearth of bankable projects and to increase flow of funds to small and medium enterprises (SMEs). To achieve this, he stated that NEXIM is partnering with African Export-Import Bank (Afreximbank) to establish a Project Preparation Fund (PPF), through which both institutions have agreed to raise an initial amount of $50million dollars to support the pre-investment phase in a project preparation circle, adding that it is expected that the fund would address the dearth of bankable projects and increase the flow of funds to SMEs.
Why Africa’s drive to industrialise will work this time (The Nation Newspaper)
Africa is poised to finally deliver on its industrialisation ambitions, thanks to the African Continental Free Trade Agreement and African industrialists who are upending the status quo, writes Adam Molai. While China has been quick to shake off the impact of Covid-19, the rest of the world has not – and the global pandemic (just the first of many, according to experts) has reinforced the dangers of the world’s over-reliance on one source of production.
So, China’s recovery has not negated the desire by the world for an alternate source or sources of production but has highlighted the need for it. And Africa, with its young population, abundant raw materials, low cost of labour and an ability to scale quickly, is in pole position to take up the mantle. But how can Africa – which almost consistently fails to live up to its promise – do it? On the back of industrialisation.
Govt to link Covid-19 vaccination data across EAC (Daily Monitor)
The Ministry of Health has said it plans to link its vaccination data to the rest of East African Community (EAC) region system to allow easy verification of vaccination certificates. During the launch of Covid-19 resurgence plan, Dr Allan Muruta, the commissioner for Integrated Epidemiology, Surveillance and Public Health Emergencies at Ministry of Health, said: “When you are vaccinated from here, you can be able to produce an electronic certificate that can be recognised within this region.” The Ministry of Health says due to the evolving nature of the Covid-19 pandemic, use and adaptation of technology will support timely and appropriate response as well as sharing of information.
Chinese Now Influential Players In Illicit Gold Trade: Study (New Zimbabwe)
Chinese nationals are now “prominent and influential actors” in Zimbabwe’s lucrative gold sector and have formed questionable partnerships with the elite in Zanu PF and senior law enforcement agents. This is part of the findings from a recent study carried out by the Global Initiative Against Transitional Organised Crime (GI-TOC) on; “Illicit Gold Markets in East and Southern Africa” published last month. According to the study, the presence of Chinese nationals in the gold mining sector in Zimbabwe has become a “hot political potato” as they were also involved in the smuggling of the precious mineral.
“From regional trade and transit hubs, most gold moves by air, legally and illegally, to global hubs such as Dubai. Moving gold by air often requires the influence of political elites or bribing airport officials. For smaller quantities of less than 10 kilograms, smugglers may directly pay security officials at checkpoints. Alternatively, gold can be made into jewellery which is then worn by passengers on flights out of the country, mainly to India, the UAE, and to a lesser extent Russia.”
Remarks by Ambassador Stephanie S. Sullivan To Members of the PAC-DBIA and Minister of Trade & Industry Alan Kyerematen (US Embassy in Ghana)
The PAC-DBIA was created in August 2014 when President Obama directed the Secretary of Commerce to establish the Council to connect U.S. businesses with African partners, support existing and new U.S. investment in Africa, expand access for U.S. businesses to finance their exports to Africa, and reduce barriers to trade and investment in Africa. In short, PAC-DBIA was born to support the U.S.-Africa trade relationship and to develop and nurture ways to invest in Africa’s growth.
Today’s roundtable offers the opportunity for PAC-DBIA members to discuss and evaluate progress made on the goals of the MOU; learn how the pandemic has affected the MOU; and learn about priority and strategic projects in Ghana in which U.S. companies may participate by providing products or services, or as investors.
As we emerge from the tunnel of masked meetings and postponed events and the world economy revs back up, it’s exciting to think about the enormous potential for increased trade and investment between the United States and Ghana and the next steps for continuing our mutual efforts under the MOU.
Global
Brexit trade explosion forecast: ‘Gateway to Africa’ tipped to spark tidal wave of income (Express)
Speaking to Express.co.uk DUP MP Sir Jeffrey Donaldson spoke of how Brexit had allowed the UK to re-establish itself on the world stage. Highlighting the opportunities to promote Global Britain, he said Egypt’s geographical attributes made it an ideal place to increase links with. “Our trade teams in Cairo are working very much on the basis that it is the gateway to North Africa and indeed down east Africa as well,” he told this website. “The Suez canal economic zone presents a terrific opportunity for UK companies where a company can export across North Africa and the Middle East and the Gulf regions. “I am confident in a post-Brexit environment we are going to be an even greater trading partner for many African countries, not least of all Egypt. “Africa is undoubtedly a major target for the UK in terms of increasing its trading potential.”
Universal Access to Sustainable Energy Will Remain Elusive Without Addressing Inequalities (IEA)
During the last decade, a greater share of the global population gained access to electricity than ever before, but the number of people without electricity in Sub-Saharan Africa actually increased. Unless efforts are scaled up significantly in countries with the largest deficits the world will still fall short of ensuring universal access to affordable, reliable, sustainable, and modern energy by 2030, according to Tracking SDG 7: The Energy Progress Report.
According to the report, significant progress has been made since 2010 on various aspects of the Sustainable Development Goal (SDG) 7, but progress has been unequal across regions. While more than one billion people gained access to electricity globally over the last decade, COVID’s financial impact has made basic electricity services unaffordable for 30 million more people, the majority located in Africa. Nigeria, the Democratic Republic of Congo and Ethiopia had the biggest electricity access deficits, with Ethiopia replacing India in the Top 3.
Covid-19 crisis makes electricity too costly for millions in Africa, Asia (TimesLIVE)
DG Okonjo-Iweala on World Environment Day: Harness sustainable trade to protect the planet (WTO)
“The well-being of people is dependent upon the well-being of our planet, and trade can play an important role here,” DG Okonjo-Iweala said. “By connecting people and markets, trade helps lower costs and disseminate new environmental technologies. Trade can make resource use more efficient, reducing the strain on our ecosystems. New trade rules can help our economies become greener, cleaner, more prosperous, and more inclusive.” “A key WTO priority is therefore to conclude an agreement this year to protect our oceans by ending harmful fisheries subsidies. WTO members are also discussing new initiatives to improve trade’s contribution to environmental sustainability, including the liberalization of trade in environmental goods and services, fossil fuel subsidy reform, the transition to a circular economy, plastics pollution and sustainable supply chains,” she said, noting the importance as well to collaborate on this year’s UN Climate Change COP26.
‘Digital rights’ key to inclusive post-pandemic recovery: UN experts (UN News)
They stressed that “digital rights” must be a top priority as countries rebuild civic space both during and after the crisis. “Despite the instrumental role of the internet and digital technologies, which have provided new avenues for the exercise of public freedoms and access to health and related information and care in particular during the COVID-19 pandemic, States continue to leverage these technologies to muzzle dissent, surveil, and quash online and offline collective action and the tech companies have done too little to avert such abuse of human rights,” they said.
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Working together to address SA challenges (SAnews)
The knowledge economy provides South Africa with an opportunity to overcome structural barriers to economic transformation, says Minister of Communications and Digital Technologies, Stella Ndabeni-Abrahams. “We are facing an economic and a social crisis. It is our collective responsibility as leaders in Government, Business and Communities to invest our collective expertise to address the challenges of our society; key among them is economic and equitable distribution of wealth,” the Minister said.
“Our assessment is that digital transformation and 4th Industrial Revolution (4IR) can help to augment South Africa’s global competitiveness. While we have seen the country’s World Economic Forum (WEF) global competitiveness ranking improve overall in the past three years, the country improved its overall ranking to 60 out of 141 countries in 2020 compared with 67 the previous year – the country’s ranking in human capital development remains disappointing. “This means that the opportunities available to our population to participate in the mainstream economy remain limited,” the Minister said.
Presidency driving reforms to attract investment (SAnews)
President Cyril Ramaphosa says The Presidency is at the forefront of driving structural reforms necessary to overcome bottlenecks that are deterring investment. The President said this when he responded to a debate on The Presidency Budget Vote in the National Assembly, on Thursday. “We are keenly aware, as several members said yesterday, that the pace of structural reform needs to speed up. The Presidency continues to drive the structural reforms that are necessary to overcome bottlenecks that are deterring investment and slowing our progress.”
The President said, meanwhile, that despite the impact of the pandemic on the sector globally, automotive component exports increased last year to a record R54 billion. He said exports of commercial vehicles, especially so-called heavy commercials like tractors and trucks, are also performing strongly. “Mining and manufacturing were also sectors where jobs were created, according to the latest Quarterly Labour Force Survey. “One of the sectors that has also proven most resilient and fast-growing is the financial services sector.”
Trade balance remains in a deficit amounting to N$2 billion (Namibia Economist)
The country’s trade balance remained in a deficit amounting to N$2 billion, increasing from N$1.8 billion recorded in both March 2021 and April 2020, the statistics agency said Thursday. Despite the increased deficit, the month of April 2021 saw total merchandise trade increase to N$18.7 billion, an increase 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. The Namibia Statistics Agency’s Statistician-General, Alex Shimuafeni in the latest released trade figure said Namibia’s trade composition by partner illustrated that China continued as Namibia’s largest export market while South Africa maintained her first position as Namibia’s largest source of imports. Shimufeni said the April 2021 trade figures indicated that re-exports fell by 3.1% month-on-month while a more significant increase of 49.9% was noted year-on-year.
OBBO: Kenyan corporate giants defy Covid, expand regional footprint (The East African)
Money has always been, perhaps, the most important “second truck” driver of regional integration, after the formal political actions of governments (enabling travel, passing policies that make it easy to work, enable border crossings, and so on). With the big Kenyan banks having already pocketed a chunk of South Sudan, these players are now all but set to try and lock in Middle Africa. They are the Trojan horses of regional integration.
What is lacking to create a really big bang is a fast train service across East African borders, or a low-cost carrier that is East and Central Africa’s matatu in space whizzing around the capitals for $100. Still, fast forward to 2025, or even earlier in 2023. Lying in your bed today, if you go into your M-Pesa app you can send money from Kenya to Burundi, Rwanda, Tanzania, and Uganda. By 2023, Ethiopia might get on the drop-down menu, and maybe by 2025 Sudan and DRC might be there too.
President Kenyatta unveils Kshs. 2.2B agribusiness fund targeting youth groups (Kenya Broadcasting Corporation)
President Uhuru Kenyatta has today unveiled the Kshs. 2.2bn Empowering Novel Agribusiness-led Employment (ENABLE Kenya) programme, a youth capacity building initiative aimed at creating employment, generating income and bridging succession gap in agribusiness. At the same event, the President unveiled the rebranded 4-K Clubs with a call to County Governments and stakeholders in the agriculture value chain to increase their support for efforts to empower the youth in agribusiness. “In addition, I note with appreciation the prioritization of initiatives to build capacity in modern agribusiness technologies and to provide access to affordable and high quality inputs,” President Kenyatta said.
Firms raise the alarm over illegal repackaging of sugar (Business Daily)
Manufacturers want stiffer enforcement of sugar packaging regulations to curb abuse by some retailers suspected of repackaging and rebranding contrabands in their names. Through their lobby, the Kenya Association of Manufacturers (KAM), the industrialists said a sizable amount of uncustomed sugar is smuggled into the country through porous borders, and some end up at the shelves without undergoing quality checks, posing a health risk to consumers. The body wants the government to enhance inter-agency surveillance to curb sugar smuggling within its borders and urged the Kenya Bureau of Standards (Kebs) to enforce regulations and undertake its role in enforcing regulations on the repackaging of both locally produced and imported sugar.
Rwanda reassures Tanzania of speedy execution of hydroelectric, SGR projects (CGTN Africa)
Rwandan President Paul Kagame on Thursday reassured Tanzania of speedy implementation of the regional Rusumo Falls hydroelectric project and the standard gauge railway (SGR). A statement issued by the Directorate of Presidential Communications at Chamwino State House in the capital Dodoma said President Kagame’s reassurance was made during talks between President Samia Suluhu Hassan and Rwandan Minister for Foreign Affairs and International Cooperation Vincent Biruta. President Kagame pledged to support the joint execution of the Rusumo Falls hydroelectric project and the SGR project that will connect the Rwandan capital Kigali and Isaka dry port in Tanzania.
Do more to prepare Zambia for AfCFTA (Times of Zambia)
More effort should be made to prepare the economy for Zambia’s participation in the African Continental Free Trade Area (AfCFTA) which has been in place since January this year. There is need to come up with an export-driven strategy that will encourage the manufacturing sector to participate effectively in the yearning continental market. Being a land-linked market, Zambia can benefit effectively from the expanded marketplace under the AfCFTA if producers of goods and services in the economy grabbed the opportunity by upping production. Issues to do with lack of quality branding and packaging of locally-produced goods should be resolved through a multi-sectoral approach.
Uganda’s economy grows by 3.3% in 2020/21 financial year amid COVID-19 pandemic (Xinhua)
Uganda’s economy is on a recovery trend after facing the negative impacts of the ongoing COVID-19 pandemic, a top official of the country’s statistics agency said on Thursday. Chris Mukiza, executive director of Uganda Bureau of Statistics (UBOS) told Xinhua in an interview that preliminary estimates show that in nominal terms, the size of the economy increased to 148.278 trillion shillings (about 42.4 billion U.S. dollars) this financial year 2020/2021 from 139.711 trillion shillings (39.9 billion dollars) in the financial year 2019/20. The contribution of the industry sector increased to 27.4 percent in the 2020/21 financial year from 26.5 percent in 2019/20. The services sector continued to be the biggest contributor to the GDP although it registered a setback decline in 2020/21 with its share contribution registering 41.5 percent from 42.8 percent in 2019/20. The setback was due to COVID-19 lockdown restrictions, according to experts.
Partnership to help finance Egyptian cotton industry (just-style)
The two institutions held a bilateral meeting this week to discuss two project agreements: one for the cotton sector, and the other for Sudan’s dairy sector. They were attended by Eng. Hani Salem Sonbol, CEO of ITFC, and LI Yong, director-general of UNIDO. The projects will support two key initiatives, including the Better Cotton Initiative (BCI), which aims to revive the Egyptian cotton industry by supporting growers to cultivate sustainable cotton.
“ITFC’s participation demonstrates a commitment to nurture the cotton sector’s economic prospects by strengthening the overall value chain,” said Sonbo. “ITFC is confident that our partnership with UNIDO will continue to add value to important economic sectors, contribute to industrialisation, build stronger economies…”
Yong added: “The mission of the United Nations Industrial Development Organization is to promote and accelerate inclusive and sustainable industrial development (ISID). This strategic partnership with ITFC will promote industrialisation, trade, and sustainable development for our common member countries towards achieving the Sustainable Development Goals in general and SDG 9, in particular.”
Global Investment Forum: Morocco, a window for investment in Africa (Khaleej Times)
In a panel discussion at the Global Investment Forum in Dubai, a group of experts from Morocco discussed the country’s unique advantages as a platform for investment in Africa. Over the past two decades, the panelists explained that Morocco has launched many infrastructure and logistic development projects, strengthening Morocco’s position as a production and commercial platform for international investors looking for positioning in Africa. Moroccan businesses cover more than 70% of African countries in various strategic sectors.
In addition, Morocco itself provides a suitable environment for investment due to its ultra-modern infrastructure, rapid industrialisation, green energy development as well as free trade agreements concluded with major economic powers, revealing Morocco’s increasingly strong willingness to play its role as a growth lever in the continent and as a hub at the crossroad between Europe and Africa.
Migration: “We are counting on Morocco to share its expertise with African countries” (UNECA)
The ECA Office for North Africa presented on Thursday, June 3rd in Rabat (Morocco) its analysis report on migration statistics in Morocco, an initiative taken as part of its efforts to increase African countries’ capacity to design evidence-based migration policies and programs that are consistent with international and African protocols and frameworks.
“We aim to support morocco, our pilot country for this program, in its efforts to set up a harmonized, national system for migration related statistics. To do so, our team has established a diagnosis of this country’s existing migration statistics and the systems its various ministerial departments are using to collect and analyse such data. This approach will help us identify avenues for improvement and come up with a capacity building plan adapted to the national needs,” said Khaled Hussein, Director a.i. of the ECA Office in North Africa at the opening of the meeting.
Increased Investment in Zimbabwe’s Tertiary Education Essential to Economic Growth, Human Capital Development (World Bank)
Extensive reforms are required to translate the government’s education vision into a concrete set of programs and projects to accelerate economic recovery and reduce socioeconomic disparities, the Zimbabwe Higher and Tertiary Education Sector Analysis Report found. The macro economic challenges in that last two years have however seen significant decline in education spending both as a percentage of total government expenditure and as a percentage of gross domestic product. “As we are fully cognizant of the ever-changing world in which we operate we now seek to transform our Tertiary Education to meaningfully impact economic productivity and workforce skills development,” said Professor Fanuel Tagwira, Permanent Secretary, MHTIESTD.
Africa
Private Sector participation in the regional pharmaceutical and medical value chains in the Southern African Development Community (SADC) is expected to improve under the Support to Industrialisation and the Productive Sectors (SIPS) joint action. SIPS is a SADC Programme supported by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ) to facilitate expansion of regional value chains and promote dialogue between the private and public sectors. The German development agency, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), will oversee Result Area 2 and 3 which have been allocated €10 million from the EU and €2.83 million from BMZ. Result Area 1, to be administered by SADC, is funded to the tune of €8 million.
SADC will implement enhanced policy, regulatory and the business environment on national and regional levels for development and sustainable operation of the regional value chains for selected products in the agro-processing and pharmaceutical sectors, while GIZ, a key implementer of SIPS, will enhance participation of the private sector in the ARV, COVID-19 relevant Medical and Pharmaceutical Products (CMPP) and leather value chains.
Morocco-Egypt vs South Africa-Nigeria: A race for vaccines on the continent (The Africa Report)
In the wake of the pandemic, African policymakers have realised the need to develop their pharmaceutical industry. Hopes were fuelled by a high-level virtual conference, which was organised on 12 April by the African Union’s African Centre for Disease Control and Prevention (Africa CDC). Its director, John Nkengasong from Cameroon, would like to see the continent producing more than half of the vaccines it consumes within 20 years, up from 1% today. At the same time, the African vaccine market is expected to grow significantly, from $1.3bn a year today to between $2.3bn and $5.4bn by 2030, according to US strategy firm McKinsey.
Afreximbank Announces an African Medical Centre of Excellence in Abuja, Nigeria (African Export-Import Bank)
Afreximbank has announced the commencement of its African Medical Centre of Excellence (AMCE) project in Abuja, Nigeria. It will provide world-class care to both low and high-income patient groups across the continent. Construction of the Abuja AMCE is scheduled to begin in the fourth quarter of 2021 and commissioning is scheduled for the first quarter of 2024. Nigeria was selected in 2017 as the host country for the first AMCE following a competitive bidding process in which Ghana, Kenya and Tanzania also participated. The four countries had previously been identified as prospective host countries by a pre-feasibility study commissioned by Afreximbank and conducted by KCH in 2015.
African agribusiness needs to bounce back strongly post Covid-19 (IOL)
There is a real threat that the Covid-19 pandemic may have reversed progress made on the world’s efforts to combat food insecurity and hunger affecting 130 million or more people globally. As the world clambers to rebound after the pandemic, this article outlines four policy levers that African leaders should pull for improved prioritisation and planning of food and agriculture policies in 2021 going forward. There can be no disagreement to the commonly held view that agriculture has been a boon for economic and social development in developing countries, and yet it remains largely underfunded. Policymakers in Africa ought to act fast and simultaneously adopt strategic interventions that make the best use of the meagre public purse.
In Africa, restoring ecosystems is central to green recovery (UNEP)
When African Ministers of Environment voted to adopt a green stimulus initiative in December 2020 that tied environmental incentives to economic and social recovery in a post-COVID-19 world, the mandate to build back better following the pandemic sprang to life. The project recently got a $14 billion pledge from donors including France, the World Bank, European Union, African Development Bank, and other funders, and aims to restore 100 million hectares of degraded land, sequester 250 million tons of carbon and create 10 million jobs across 11 countries. “Africa’s environmental health is essential for the future of the region and the planet. The UN Decade on Ecosystem Restoration offers an opportunity for the continent to further consolidate its efforts in protecting nature and the planet.”
UNEP: Plastic waste a ticking time bomb (The East African)
The United Nations Environment Programme (UNEP) Regional Office of Africa is recommending that Africa cushions itself from the unfolding plastic menace by adding all forms of plastics to Annex 1 of the Bamako Convention that prohibits and regulates importation and trans-boundary movement and management of hazardous wastes within Africa states. UNEP said it was particularly concerned about future reversal of the gains against plastic pollution in some countries. “Kenya, with one of the world’s strictest bans is now in talks for a bilateral trade agreement with the US (that) seeks to dilute the domestic laws on plastics with pressure from the US chemical and plastics industry,” said the UNEP, in a policy brief. “With growing internal trade and porous borders, this could render the efforts of other African countries ineffective,” the document says and advises Africa to join like-mined World Trade Organisation member states to launch a “Make trade work against plastic pollution” campaign on plastic pollution at the upcoming November-December 2021 WTO Ministerial Conference.
Global
DG Okonjo-Iweala calls for enhancing LDCs’ integration in global services trade (WTO)
DG Okonjo-Iweala highlighted the impact COVID-19 was having on LDCs’ services trade. The pandemic has severely affected services that require in-person contact between suppliers and consumers, most notably the tourism and transport sectors, where LDCs have a relatively high footprint in global trade. In 2020, LDC exports of travel/tourism and transport services fell by 69% and 16%, respectively, with total services export revenue loss of nearly US$17 billion. “Decreased export revenues mean job losses and economic distress for people, along with increased financial and debt pressures for governments,” she said. “Against this background, restoring and increasing the export performance of LDCs in services takes on even greater urgency.” “Services can help LDCs increase and diversify exports from more traditional agricultural products and commodities, reducing exposure to price volatility,” she added.
Under pressure EU presents WTO plan to boost vaccine output (Reuters)
The European Union put forward a plan on Wednesday it believes will help boost the production and availability of COVID-19 vaccines more effectively than a proposed waiver of patent rights now backed by the United States. Under pressure from developing countries demanding a waiver of intellectual property (IP) rights for vaccines and treatments, the EU presented an alternative focused on export restrictions, pledges from vaccine developers and the flexibility of existing World Trade Organization rules. World Health Organization chief Tedros Adhanom Ghebreyesus said on Monday the world has reached a situation of “vaccine apartheid”, with poorer countries that make up half the population receiving just 17% of vaccines. EU Trade Commissioner Valdis Dombrovskis told the European Parliament that universal and fair access was the global community’s number one priority. In a debate on global vaccine access, Dombrovskis told lawmakers the European Union was ready to engage in examining the extent to which temporarily waiving the WTO’s TRIPS agreement contributed to making vaccines more available.
Seven Reasons the EU is Wrong to Oppose the TRIPS Waiver (Human Rights Watch)
As the Covid-19 pandemic has devastating human rights, social, and economic consequences across the globe, European Union (EU) representatives have repeatedly stated their commitment to the idea that Covid-19 vaccines should be a universal common good and that no one is safe from Covid-19 unless everyone is safe. Yet the EU has consistently opposed India and South Africa’s proposal at the World Trade Organization to temporarily waive certain intellectual property rules under the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), a measure that would expand access to lifesaving vaccines and other health products. The arguments used by the European Commission to justify its opposition are inaccurate, misleading, and misguided. We address them individually here, focusing on the following seven truths:
“The coronavirus pandemic will not end until everyone has access to vaccines, including people in developing countries. Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery. We call on governments, pharmaceutical companies, and organizations involved in vaccine procurement and delivery to help increase transparency and build greater public information regarding vaccine contracts, options and agreements; vaccine financing and delivery agreements; and doses delivered and future delivery plans. We also urge vaccine manufacturers to prioritize the scale up of vaccine production, providing increased access for developing countries. Distributing vaccines more widely is both an urgent economic necessity, and a moral imperative.”
Process Launched to Boost Support for Least Developed Countries (UN Climate Change)
A United Nations-led process has been launched to kick-start negotiations for the next Programme of Action to support the world’s least developed countries (LDCs), which is expected to contain renewed partnerships between the LDCs and their development partners to help the LDCs overcome structural challenges, eradicate poverty, achieve the internationally agreed sustainable development goals (SDGs) and ultimately, to graduate from the LDC category. “Only few least developed countries have produced a national adaptation plan to increase their resilience in the face of climate change since the process was established in 2010,” said H.E. Ms. Baomiavotse Vahinala Raharinirina, Minister of Environment and Sustainable Development of Madagascar. H.E. Mr. Perks Ligoya, the Permanent Representative of Malawi to the United Nations and Chair of the LDC Group under the UN General Assembly, also informed one of the conference events that “we are leaving the LDCs behind”.
Policy Brief: WTO Members Assess MC12 Options for Trade, Environmental Sustainability Work (IISD)
The group of World Trade Organization (WTO) members undertaking “structured discussions on trade and environmental sustainability” (TESSD) is moving ahead on its efforts to determine what its work may cover and how – including what they could include in a ministerial statement ahead of the Organization’s highest-level meeting in December. Going into the meeting, the TESSD coordinators circulated a workplan in early May to help structure the work in the lead-up to the WTO’s Twelfth Ministerial Conference (MC12), which is now only six months away. The event is set for 30 November – 3 December 2021, in Geneva, Switzerland. In their submissions earlier this year on priority items for the TESSD, several participating WTO members had referred to the liberalization of environmental goods and services – along with related topics such as non-tariff barriers and trade facilitation – as an area of interest.
Special and Differential Treatment for IUU Fishing in Focus at WTO Talks (IISD)
The World Trade Organization (WTO) Negotiating Group on Rules continued discussions on a consolidated draft text on ending harmful fisheries subsidies in a series of meetings at the end of May. Members focused on special and differential treatment (S&DT) for developing countries as addressed in the illegal, unreported and unregulated (IUU) fishing chapter of the consolidated draft text. Article 3.8 in the draft text states that the prohibition under Article 3.1 “shall not apply to subsidies granted or maintained by developing country members, including least developed country (LDC) members, for low income, resource-poor or livelihood fishing or fishing related activities within 12 nautical miles” measured from the baselines for a period of two years from the date of entry into force of the proposed instrument. Several developed and developing country members said they “could live with this text,” observing that negotiations “were in the end game,” and members should be prepared to make compromises.
Is the emerging world still emerging? (IMF Finance & Development)
Without COVID-19, GDP growth in the past decade would have been about 3.6 percent—just below the 3.7 percent experienced in 2000–09. Not bad given all the challenges, and contrary to the mood of pre-pandemic times. Indeed, each decade has witnessed stronger economic growth than the 1980s and 1990s, each about 3.3 percent. Hundreds of millions of people have been taken out of absolute poverty as a result, in part because of the growth miracle led by the so-called emerging markets, of which my beloved BRICs were front and center.
BRICS with a Capital C: How Covid robbed members of economic advantage (ThePrint)
The details of the BRICS foreign ministers’ meeting and the breakdown of its outcome by strategic analysts of respective member countries will take time to be out in public. But in the meantime, it appears safe to say that the virtual meeting between the five foreign ministers successfully concluded its agenda in the given circumstances. That the Covid-19 pandemic and its resultant catastrophe were top on the agenda was evident. Held under the Indian presidency, the BRICS foreign ministers’ meeting discussed the Covid-19 challenge threadbare. Its endorsement of India and South Africa’s proposal to the World Trade Organization (WTO) to waive patents on Covid-19 vaccines needs to be followed up and taken to its logical conclusion.
The US and the WTO were not very enthusiastic but earlier demands by India for such a waiver was strongly supported by a large section of the intellectuals including Nobel economist Joseph Stiglitz. Doubts regarding the waiver being granted persist, as the global pharma lobby is not very supportive of such a move. Again, assuming that a limited waiver is made available, it will be a herculean task to set up state-of-the-art manufacturing facilities in a short time and undertake mass production of vaccines. It is also surprising that two members of the BRICS, China and Russia, are vaccine manufacturers themselves, but never came forward to share the formula with or waive IPR regulations for other BRICS members. So much for the cooperation in the fight against the Covid pandemic!
Corporate tax deal tops agenda at G7 finance meet (Eyewitness News)
Group of Seven finance ministers are set to kick off talks on Friday, with the spotlight on ambitious plans for a minimum global level of corporate tax. British finance minister Rishi Sunak will host the meeting – which is being held in person after an easing of COVID restrictions – with counterparts from Canada, France, Germany, Italy, Japan and the United States. According to a draft communique seen by AFP, the finance chiefs and central bankers of the world’s seven richest nations will express “strong support” and a “high level of ambition” over a global minimum corporate tax. They then hope to reach broader agreement at a G20 finance meeting scheduled for July. Ministers also plan to commit to “sustain policy support”, or stimulus, for “as long as necessary” to nurture economic recovery, while addressing climate change and inequalities in society, according to the document. Furthermore, they will urge “equitable, safe and affordable access to COVID-19 vaccines” everywhere in order to fully overcome the deadly pandemic.
UN hails new anti-corruption network, as ‘important step’ to build trust, promote justice (UN News)
UN Secretary-General António Guterres told the General Assembly’s first-ever Special Session against corruption via a video message, that before the COVID-19 pandemic, countries all over the world had been “roiled by huge anti-government demonstrations”. Corruption is often systematic and organized, a crime that crosses borders and “betrays people and democracies,” the UN chief said. “It steals trillions of dollars from people all over the world – usually from those most in need, as it siphons off resources for sustainable development”, he added. When powerful people get away with corruption, citizens lose trust in their governing institutions and democracies become weakened by cynicism and hopelessness. “Turning the tide against corruption is essential if we are to achieve the Sustainable Development Goals (SDGs), promote peace, and protect human rights”, Mr. Guterres spelled out.
Biden-Harris Administration Unveils Strategy for Global Vaccine Sharing, Announcing Allocation Plan for the First 25 Million Doses to be Shared Globally (The White House)
As we continue to fight the COVID-19 pandemic at home and work to end the pandemic worldwide, President Biden has promised that the United States will be an arsenal of vaccines for the world. To do that, the Administration will pursue several additional measures beyond our robust funding for COVAX: Donating from the U.S. vaccine supply to the world and encouraging other nations to do the same, working with U.S. manufacturers to increase vaccine production for the rest of the world, and helping more countries expand their own capacity to produce vaccines including through support for global supply chains.
The U.S. announced the proposed allocation plan for the first 25 Million doses. Based on the framework above and pending legal and regulatory approvals, the United States plans to send our first tranche of 25 million doses: Nearly 19 million will be shared through COVAX: Approximately 5 million for Africa to be shared with countries that will be selected in coordination with the African Union.
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National
Report shows tax shrunk the sugar industry, says association (Engineering News)
A report, commissioned by the National Economic Development and Labour Council (Nedlac) at the request of the Portfolio Committee on Trade and Industry, showed that, by 2019, the sugar tax had resulted in the sugar sector losing 9 154 jobs – almost 10% of its workforce. Further, the tax resulted in a R1.19-billion decline in the industry’s gross value-added contribution to the economy, industry body the South African Canegrowers Association (SA Canegrowers) says. The ‘Economic Impact of the Health Promotion Levy on the Sugar Market Industry’ report shows that 16 621 jobs were lost overall owing to the Health Promotion Levy, or sugar tax, which came into effect on April 1, 2018. Further, the tax also led to a R653-million decline in investment in the industry and related economy.
As a result of these losses, the sugar industry’s total contribution to South Africa’s gross domestic product declined by a cumulative R2.05-billion in 2019. Prior to the implementation of the sugar tax, sugarcane growers supported 94 621 direct, indirect and induced jobs in 2017, which accounted for 11.2% of all South African agricultural workers.
Construction of R8 Billion Tshwane Automotive SEZ Progressing Well – October (the dtic)
The Chairperson of the Tshwane Automotive Special Economic Development (TASEZ) Board, Mr Lionel October, has expressed his satisfaction with progress made with the construction of the almost R8 billion project. He expressed his satisfaction during his visit to the construction site with a team of officials from the Department of Trade, Industry and Competition (the dtic) and the Gauteng government. “Significant ground has been covered since the laying out of the bulk infrastructure and the official commencement of the factory spaces. This multi-billion rand infrastructure project, which is jointly funded by all three spheres of government, has made impressive progress despite the COVID-related lockdown since it was unveiled by the President Cyril Ramaphosa in November 2019,” said October.
KRA Rolling Out eFuels Project (CIO East Africa)
The reliance on manual certificates, manual processing, and manual tasks is now being eradicated by eFuels project. “In order to enhance the system and operational efficiency, the authority intends to deploy a ‘transporter booking’ module in Regional Electronic Cargo Tracking System (RECTS). The module will enable all petroleum transporters book in advance their trucks for entry and loading at oil installations through RECTS,” read part of the notice to the transporters. Oil transporters will have to book in advance their trucks for entry and loading at oil installations as the Kenya Revenue Authority (KRA) starts rolling out the eFuels Project under the Regional Electronic Cargo Tracking System (RECTS) this month.
Burundi, Kenya business lobbies sign deal for trade and investments (Business Daily)
The Kenya National Chamber of Commerce and Industry (KNCCI) has signed a deal with its Burundi counterparts that will increase trade and investments between the two countries. The deal will see Kenyan traders take part in the annual Burundi trade fair and spur investments in sectors including energy, agriculture, pharmaceuticals and logistics. KNCCI President Richard Ngatia said the agreement will ease access for traders, banking on the vast population that offer huge market opportunities. Exports to the landlocked nation marginally grew to Sh6.73 billion in 2019 from Sh6.59 billion in 2015, according to data from the Kenya National Bureau of Statistics.
“The private sector is the key to driving the growth that will deliver jobs, transform labour markets and open up opportunity. Kenya has the companies that can invest in and trade with Burundi to do just this,” Mr Ngatia said. The deal will help the local private sector to increase and diversify their presence in Burundi – a nation that has not seen significant investments relative to Tanzania, Uganda and Rwanda.
Debt relief deal cuts costs by 35pc in three months (Business Daily)
Kenya’s expenditure on servicing external loans in the third quarter through March 2021 fell 34.62 percent on the back of a deal with rich creditor countries to defer loan payments initially for six months. The National Treasury data shows payment to foreign creditors for the quarter amounted to Sh42.18 billion compared with Sh64.51 billion in a similar period last year. The Sh22.33 billion drop helped free up cash for economic recovery at a time the Treasury was facing shortfalls in revenue largely due to reduced earnings by companies and households which also hit growth in consumption. The data shows bilateral debt costs dropped Sh32.75 billion, or 90.49 per cent, in the January-March 2021 period to Sh3.44 billion on the deal that the Treasury struck with bilateral creditors, including China, covering the six months through June 2021.
Milk import gulps N619.5bn yearly (Daily Trust)
Milk importation into Nigeria gulps N619.5 billion (about $1.5bn) years due to the country’s non self-sufficiency in milk production. Speaking during the a webinar on Nigerian Dairy Industry organised by the Policy Centre of Abuja Chamber of Commerce and Industry (ACCI) to mark the World Milk Day, 2021, a representative of the Action Aids Nigeria, Mr. Azubike Nwokoye, said the daily average milk yield of a cattle in Nigeria is one to two litres unlike in developed countries with almost 20 litres. Nwokoye called for the transformation of the livestock industry in Nigeria to address the current national security challenges.
“The major policy thrust of the ACCI-Policy brief on the dairy sub-sector are as follows: Continuation and expansion of the backward integration currently being supported by the Central Bank of Nigeria, Private-sector-driven implementation of the National livestock transformation plan, Creation of the private sector driven ranching system, Establishment of a National Dairy Board, Training and capacity building of pastoralists and Deployment of modern technology to every segment of the dairy business.”
Morocco Seeks New Investment to Bolster Pan-Africanism (Morocco World News)
A report by Morocco’s Agency for Development of Investment and Export (AMDIE) and Mazars has estimated Morocco’s investments in Africa at around $4 billion. The report, titled “Analysis of investment in Africa in 2020,” was released on the African commemoration day last Tuesday and highlighted Morocco’s stellar performance as a leading investor in the continent. With nearly $4 billion invested in the last four years in over 30 African countries, Morocco has enriched its portfolio and demonstrated its interest in the prospects of development in Africa.
South Sudan highly food insecure despite 2020 increase in cereal production (CGTN Africa)
Cereal production in South Sudan in 2020 rose by seven percent over 2019 levels because of favourable rains, however cereals remained far below average production levels, a new United Nations report on food security finds. A high cereal deficit expected for 2021 due to the impact of prolonged conflict and floods is leaving millions of South Sudanese extremely food insecure, according to the Crop and Food Security Assessment Mission (CFSAM) report by the Food and Agriculture Organization of the United Nations (FAO) and the World Food Programme (WFP).
The marginal growth will cover the needs of only a third of the population, leaving most people reliant on humanitarian food assistance and imports of essential grains, at prices beyond the reach of ordinary South Sudanese. The alarmingly high deficit in 2021 cereal production, estimated at 465,600 tons, keeps food insecurity at an all-time high. South Sudan needs 1.3 million metric tons of cereal a year to feed its 12.2 million people.
Egypt will be economic gateway to MEA region: Thai Ambassador (Daily News Egypt)
Egypt, with its capabilities provided by the Suez Canal as well as its capabilities in providing reliable logistical services, will eventually become a gateway to the Middle East and Africa (MEA) region. The country’s strategic location connecting Africa to Europe and the Middle East, and its plan to further expand transportation to neighbouring countries, makes it internationally important, according to Puttaporn Ewtoksan, Thailand’s Ambassador to Egypt. Ewtoksan added that Egypt’s free trade agreements with many countries and its membership of the African Continental Free Trade Agreement (AfCFTA) and COMESA, among others, has drawn interest from the international community, including Thailand, to engage more with Egypt.
Tunisia foreign trade volumes down in April 2021 (INS) (TAP)
Tunisia’s foreign trade volumes saw a decline in April. Exports and imports in volume have dropped by 4.2% and 2.5%, respectively, after posting sharp increases in March, according to the latest note of the National Institute of Statistics (INS) on “Foreign Trade at constant prices base 2015 - April 2021”, published Wednesday. As a result, and with a sharper decline in export volume than in import, the coverage rate loses a point and a half, to settle at 80.9% in April. Prices continue to rise, with a slightly more sustained pace for imports (+2.9%) than for exports (+2.5%).
Africa
AfCFTA: Nigeria, others to discuss $400bn income (New Telegraph)
Ahead of the Commonwealth Heads of State General Meeting (CHOGM) Business forum in Rwanda this month, African countries, including Nigeria, are expected to chart the way forward on the challenges posing risk to the continent’s $400 billion real income in the implementation of the African Continental Free Trade Area (AfCFTA) agreement. The CHOGM Business Forum is necessary as it will provide the platform and avenue for member-state in AfCFTA to assess the bottlenecks that could hinder the realisation of $400 billion income that is expected from the continent’s trade pact in the coming years. The renowned lawyer explained that AfCFTA, which started in 2015 and concluded in 2019, had seen in 2020 about 36 countries signed, ratified and key into the agreement and only one non-committal country.
Role of preferential trade agreements in women’s economic empowerment (The Herald)
Looking at women economic empowerment, it is always important to acknowledge that women are not a homogeneous group within societies and they play different roles within a given economy. Trade policies tend to have varying impacts on women due to the fact that women are not a homogeneous group, and the economy is not gender neutral. Preferential trade agreements are now drawn through a gender lens to ensure that vulnerable groups such as women and MSMEs can leverage on the provisions of PTAs. The realisation of the impact on international trade on economic growth processes and gender equality has demanded gender specific – assessments of the said impact before the operalisation of the trade agreements.
Business leaders bet on improved EAC relations (The Standard)
Business leaders are optimistic of good returns in the next one year following improving relations in the East African Community (EAC), a new report by the Central Bank of Kenya shows. The May survey conducted among Chief Executive Officers of 230 private sector firms comprising members of the Kenya Association of Manufacturers (KAM) and Kenya Private Sector Association (KEPSA) anticipate an increase in exports following improved relations in the East African countries. In May, Kenya and Tanzania turned over a new page when the two neighbours committed to enhancing bilateral ties, signaling an end to a turbulent chapter marked with trade barriers and strife at the borders.
EAC calls for increased regional coordination in ecosystem conservation and management (EAC)
The EAC Deputy Secretary General in charge of Productive and Social Sectors, Hon. Christophe Bazivamo has called on Partner States to increase regional coordination in response to the increasing problems of the Ecosystems. “We are all aware of the challenges the region is facing including those related to the management of natural resources and the environment” He disclosed that in response to the increasing challenges to the management of ecosystems, Article 114 of the Treaty for the establishment of the East African Community, the EAC Partner States have amongst other things, agreed to adopt common policies and exchange of information on the development, conservation and management of natural resources.
Regional Ministers Urge Member States to Scale Up Infrastructure Programmes (COMESA)
Ministers of infrastructure have called on regional States to scale up programmes to upgrade and maintain infrastructure and facilities, adopt and implement COMESA transit instruments to improve transport corridors’ efficiency. In their 12th joint meeting conducted virtually, today, June 2, 2021, the ministers responsible for transport, energy and Information, Communication Technology (ICT) acknowledged the huge infrastructure efficiency gap across the region as a pressing policy priority. Estimates by the African Development Bank, (2018) places the annual infrastructure funding gap at between $68 billion and $108 billion across the continent.
In their communique, the Ministers invited Member States to take up the financing, technical assistance, and capacity building opportunities available under the Regional Infrastructure Finance Facility (RIFF) of the World Bank and other development partners to help address the gap. The RIIF is one of the latest major infrastructure financing facility signed in August last year aimed at expanding long-term finance to private firms in selected infrastructure sectors in Eastern and Southern Africa. It has two components: US$ 10 million grant to COMESA to provide technical assistance and capacity building to member states, with special focus on private sector. The second is US$415 million credit to Trade and Development Bank for infrastructure projects covering renewable energy, ICT and transport and technical assistance facility.
AFRAA publishes 2020 Africa air transport report (Logistics Update)
The African Airlines Association (AFRAA) has released the 2020 Africa air transport report which 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. Intra Africa connectivity and openness: Among the 54 countries in the African continent, 13 have direct flights to more than 20 African countries. Ethiopia and Kenya lead with 30 direct flights and more to other countries within Africa. However, intra-African connectivity remains low. African airlines should take the opportunity to develop their Intra-African Network, especially in this period where the EU has limited travels to Europe.
Airlines reveal strategies to push recovery (The East African)
Aviation industry players want African states to adopt what they term a co-ordinated approach to a sustainable recovery of the industry. At the 9th Aviation Stakeholders’ Convention held in Ethiopia, participants asked airlines to re-examine their operations with a view to winning and retaining support from financial institutions. In a joint statement, the African Airlines Association, International Air Transport Association, and Airport Council International Africa urged stakeholders to look into high taxes, fees and charges that impact sustainability of air travel, support implementation of the Africa Continental Free Trade Agreement and the Single African Air Transport Market to drive business growth in Africa. “African States are encouraged to consider steps towards lifting prohibitive travel restrictions in the form of quarantine measures for fully vaccinated and negatively tested travellers. In the short term, quarantines may be applicable only to passengers coming from those areas with a very high incidence of the virus, to be regularly reviewed in co-ordination with health authorities,” read part of the statement.
Africa must answer its own ‘Kissinger question’, say EU diplomats (EURACTIV)
Africa’s version of the ‘Kissinger question’, which originally referred to who should be the United States’ first contact in Europe, is one of the issues that remain open as the EU and African leaders seek to develop a so called ‘strategic partnership’. “African leaders need to work out what they want from Europe,” Portugal’s EU ambassador, Jose Fernando Costa Perreira, said at a recent event organised by EURACTIV on EU-Africa relations. “We would like to consider that the African Union is the mirror image of the EU, but the reality is that it is not,” Costa Perreira said. The Addis Ababa–based African Union, he added, “has not been able to reach its zenith” and this “raises the problem of who should be our interlocutors.”
Despite several recent false starts on attempts to deepen political and economic relations between the two continents, “this time we are convinced that there is real commitment,” said Tebatso Belasang, deputy head of Botswana’s EU mission in Brussels. “Africa needs Europe and Europe needs Africa,” she said, adding that that “partnership is more important to us today because of the debilitating effects of COVID”.
Biden administration aims to ramp up climate change funding for Africa (pv magazine)
A senior adviser to the U.S. government’s Power Africa program has told a webinar the Biden administration hopes to win the backing of Congress to double the volume of finance awarded annually to developing countries. Michael Jordan, senior adviser to the Power Africa initiative run by the United States Agency for International Development (USAID), said the president intends to triple its climate change-related adaptation finance by 2024. Jordan was speaking as a panelist during a webinar held by London-based continental business group Invest Africa to debate donor financing to the African energy sector. The event was held on Africa Day – May 25 – which marks the foundation of the Organisation of African Unity in 1963. The Power Africa scheme is supporting African utilities in developing new business models, particularly in the low-margin markets of sub-Saharan Africa, Jordan told the webinar, and is also exploring the productive use of solar power in agriculture and other sectors. Agrivoltaics is a good example of how innovation can drive down African power costs, the USAID adviser said.
Can legal cannabis save Africa’s struggling farm sector? (Fortune)
So it’s not surprising that Malawi’s President, Lazarus Chakwera, has been urging his nation’s farmers to abandon tobacco in favor of other crops. What’s more surprising is one of Chewkra’s leading alternatives: cannabis. “Clearly, we need to diversify and grow other crops like cannabis, which was legalized last year for industrial and medicinal use,” he said in a speech last month. Malawi has also recently altered its laws to allow for investment in cannabis cultivation, and has issued licenses to 35 companies allowing them to grow the plant.
Global
Holding Up a Mirror to the World Trade Organization: Lessons from the COVID-19 Pandemic (Observer Research Foundation)
The devastating COVID-19 pandemic has thrown several aspects of global governance under challenge. The World Health Organization (WHO), as the nodal organisation mandated to deal with public health issues, has understandably attracted the greatest attention in the context of the pandemic, and has come under fire for a multitude of sins of both omission and commission. But what of other cognate international institutions that govern the global political economy and thereby facilitate or hamper access to lifesaving medical equipment and drugs, provide a system of enforceable rules to encourage vaccine development and distribution, or ensure that populations already beleaguered by a potentially lethal contagion do not become casualties of new scarcities of essential goods and services?
Getting life-changing technologies to the poor (UNCTAD)
“The downside of technological revolutions is that the deployment phase tends to be uneven,” said Shamika N. Sirimanne, UNCTAD’s director of technology and logistics. “Not everyone gets immediate access to the benefits of progress, such as access to electricity, life-saving vaccines or clean water.” UNCTAD’s Technology and Innovation Report 2021 warns that uneven access can hamper technology’s contribution to the UN’s Sustainable Development Goals (SDGs) and worsen global inequalities, fuelling public discontent. And with the advent of frontier technologies, including artificial intelligence (AI), robotics, biotechnology and nanotechnology, such risks have increased, according to the report.
Robots and Export Quality (World Bank)
Robots are rapidly becoming a key part of manufacturing in developed and emerging economies. This paper examines a new channel for how automation can affect international trade: quality upgrading. Automation can reduce production errors, particularly of repetitive processes, leading to higher quality products. The effects of robot use on export quality are estimated, by combining cross-country and cross-industry data on industrial robots with detailed Harmonized System 10-digit trade data. Robot diffusion in (preexisting) foreign customers is used as an instrumental variable to predict robot adoption in the home country-industry. The findings show that robot diffusion leads to increases in the quality of exported products.
Towards a “blue” recovery: what does the blue economy offer to emerging markets? (Oxford Business Group)
Around the world, emerging nations with significant maritime resources are advancing plans to develop their respective blue economies, with a view to boosting short-term recoveries from the coronavirus pandemic as well as longer-term economic diversification. While the concept of the blue economy has been around for some time, it has attracted increasing attention in recent months. In essence, the blue economy concerns the sustainable management of ocean resources. A blanket term, it encompasses fields ranging from fisheries, to waste management and pollution, as well as maritime transport, tourism and renewable energy. As well as the potential for economic recovery, blue economy principles are driving an exciting range of innovative projects across a number of fields.
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Government committed to transforming, developing financial services sector (SAnews)
The South African government remains unwaveringly committed to the development and transformation of the country’s financial services sector. This was reiterated by Finance Deputy Minister David Masondo during a cocktail dinner of newly launched mutual bank, Young Women In Business Network, on Tuesday. Masondo said government was committed to continuously introduce reforms that would assist the broader financial services sector to be able to grow and contribute positively and sustainably towards the inclusive growth of the economy.
Sars postpones SADC rules of origin decision (Freight News)
The South African Revenue Service (Sars) has bowed to pressure about an earlier decision that local traders exporting to Southern Africa Development Community (SADC) member states apply for the necessary SADC certification at their nearest Sars branches. A clearing agent explained that effectively it meant exporters could not receive their SADC certificates at the various land border posts any longer – a decision that met with much opposition among the ranks of intra-African traders. “The postponement will allow Sars to thoroughly consider some of the proposals made in your letter and, where necessary, hold further deliberations with the industry on the way forward.”
Streamlining processes benefit SA (SAnews)
The National Consumer Tribunal has significantly streamlined debt rearrangement applications to benefit South Africans. Advocate John Simpson, a full-time Tribunal member with the National Consumer Tribunal (NCT/Tribunal) recently discussed debt rearrangement applications at the Tribunal. One of the types of cases that the Tribunal hears is debt rearrangement/review applications (DRA). If a consumer is in financial trouble and cannot repay their debts, they can approach a debt counsellor for assistance. The counsellor can restructure the consumer’s monthly debt
Inequality and poverty will not be fixed by spending (Moneyweb)
High unemployment means higher inequality. High tax rates result in firms investing elsewhere resulting in even fewer jobs as the population grows. High taxes also often result in a small part of the population being paid well – the civil service. These economic indicators are not something mainstream commentators and leaders talk about either. South Africa has kicked the spending and deficit can far down the road, but the road has come to an end. The Covid-19 crisis has brought that end closer. The world became more unequal during the pandemic and nothing makes me think that will not be the case in emerging markets too.
Govt To Establish Forbes Border Dry Port In Marange (NewZimbabwe)
Government is in the process of establishing a dry port in Marange area to decongest and make Forbes Border Post outside Mutare more efficien in facilitating tradet, Finance Minister Mthuli Ncube has said. “So, it’s clear now that this border is operating from five different sites including a fuel storage facility away from the border due space constraints. It’s creating constraints here and for the efficiency of this border; that’s why we have located a place in Marange area, which will be a dry port. “This is how we want to redesign this border to become more efficient,” said Ncube.
Kenya Brings Lakeside Port Back to Life (The Maritime Executive)
Kenya’s determination to build a multimodal transport system to serve the east Africa region has been boosted by the launch of the Kisumu port that was refurbished at a cost of $30 million. President Uhuru Kenyatta said the port will facilitate the growth of economies in the region because it provides a holistic transport network for goods along the northern corridor from the port of Mombasa to countries like Uganda, Rwanda, Burundi, South Sudan, northern Tanzania and the Democratic Republic of Congo.
Kenya drops inspection fees for Tanzania food products (Nation)
Kenya has scraped inspection fees for Tanzanian importers of processed foods approved by the Kenya Bureau of Standards. This is just one of the decisions arrived at in a bilateral meeting between Kenya and Tanzania held in Arusha last week to thrash out trade barriers. The two countries also resolved to normalise maize importation from Tanzania to Kenya which had largely stalled over the past few months following Kenya’s ban on grain from that country and Uganda over concerns of contamination.
Business leaders optimistic about Kenya’s economic recovery: survey (Xinhua)
Kenya’s business leaders were optimistic that the country’s economy would bounce back in the next 12 months boosted by COVID-19 recovery measures, according to a survey released by the country’s central bank. The Central Bank of Kenya said its latest Monetary Policy Committee CEOs Survey showed that the optimism was mainly attributed to post COVID-19 bounce-back, companies shifting to more digitization, and anticipated increase in exports following improved relations in East African Community countries. The survey also showed that services and manufacturing sectors saw the strongest prospects for higher growth as respondents reported a general upward trend in business activity.
Why Tanzania is focusing on economy diplomacy (The Citizen)
The government said yesterday that it is furthering its economic diplomacy agenda to ensure that Tanzania reaps the benefits of cordial relations with other countries. Foreign Affairs and East African Cooperation Minister, Liberata Mulamula told Parliament that focus areas for the coming financial year include finding markets for Tanzania’s products. She said this when presenting her docket’s Sh192.26 billion proposed budget for 2021/22. Ms Mulamula added that considerable efforts would also be directed towards improving the investment climate to attract more investors.
UK Minister for Africa James Duddridge visits Tanzania (GOV.UK)
In his first visit to Tanzania following the inauguration of President Samia Suluhu Hassan, the Minister for Africa James Duddridge MP held high-level talks with the President and Foreign Minister Liberata Mulamula. In a joint meeting with the Minister for Industry and Trade, Kitila Mkumbo, and Minister for Investment, Geoffrey Mwambe, Mr Duddridge explored the potential for increased UK investment in Tanzania whilst seeking reassurances that improvements to Tanzania’s business environment would be implemented.
Egyptian textile businesses embrace agility in the face of COVID-19 (ITC)
In Egypt, the textiles and clothing sector is the second biggest industrial sector after the agro-industry. Exports consist mainly of ready-made garments and home textiles. The industry was among the most affected by the COVID-19 outbreak. According to the Apparel Export Council of Egypt, exports dropped by 29% in the first semester of the year, with a decline in production reaching 40%. Companies also faced severe financial issues as international companies started to cancel orders, delayed in payments and deliveries. By the fourth quarter of 2020, exports began to pick up, and the year closed with “only” a 14% decline in total exports.
Nigerian Vice-President bolsters Africa’s quest for a just and inclusive global energy transition (UNECA)
In the race to achieve net-zero emissions by 2050, the Nigerian Vice President Yemi Osinbajo, has called on developing countries to chart their own paths by embracing a just transition, climate action and future prosperity to power their development pathways. “The global energy transition must be inclusive, equitable and just, taking into account the different realities of various economies and accommodating various pathways to net-zero by 2050.” Osinbajo said. “So, what is the case for justice, social justice, fairness? What is often not sufficiently considered in thinking through the transition to net zero emissions is the critical role that energy, in our case gas, plays in catalyzing economic development and supporting people’s health and livelihoods especially in poorer countries.”
COVID-19 affecting Uganda-DRC trade (The Independent Uganda)
Informal cross-border trade, which includes smuggling, is hugely important for survival in, around and beyond border regions. Across the border between Uganda and Democratic Republic of Congo (DR Congo) informal trade pays the bills and puts food on the table. The COVID-19 pandemic has disrupted cross-border mobility worldwide and its policy consequences are therefore particularly visible around borders. But, what has been the impact of the pandemic on informal cross-border trade along the Uganda-DRC border? Our new research in a number of key border points found that cross-border trade has been severely affected, with knock-on effects on various aspects of lives far beyond the borderlands.
Seychelles, Angola sign agreements to launch partnerships, closer relations (Seychelles News Agency)
Seychelles and Angola will have more cooperation in tourism, agriculture, education and several other fields after the two countries signed their first bilateral agreements on Tuesday. The General Cooperation Agreement provides a framework for bilateral cooperation between the two countries and indicates in which sectors and areas. A bilateral joint commission will be established and will be responsible to discuss and monitor the implementations of specific cooperation between the two countries. “One area that the ambassador has shown huge interest in is that Angola would like to learn from Seychelles in the domain of entrepreneurship, especially how Seychelles encourages youth to kickstart their small businesses,” said the Principal Secretary for Foreign Affairs, Vivianne Fock Tave.
Cameroon-Equatorial Guinea: Regional Integration Allies (Cameroon Tribune)
Promoting sub-regional integration within Central Africa is a constant preoccupation for Cameroon and Equatorial Guinea. Both countries share ideas and cooperate on projects that foster regional integration. In a joint meeting with the Minister for Industry and Trade, Kitila Mkumbo, and Minister for Investment, Geoffrey Mwambe, Mr Duddridge explored the potential for increased UK investment in Tanzania whilst seeking reassurances that improvements to Tanzania’s business environment would be implemented.
Effective policy implementation to augment agricultural products’ export volume (Ethiopian Press Agency)
Currently, Ethiopia receives 76 percent of its export earnings from its agricultural products such as Coffee, Oilseeds, Chat, Pulses, Cut Flowers, Fruits, Vegetables, Dairy and meat among others. The export trend of the country shows that high-value markets are not significantly targeted as exporters target destination countries where import regulations are at ease. This is not always by choice but with the existing functionality of many agricultural value chains exporters that are not producing themselves have no or little control over the quality of the products they export. Experts emphasize that with agricultural export countries getting more competitive for a better position in the international market, addressing internal hurdles observed in the export sector to improve the quality control system of the country would encourage competitive spirits of the private sector along with ensuring higher value for exports.
Gender Equality: A Necessary Condition for Promoting Inclusive Growth in Mauritania (World Bank)
Despite a slowdown in economic growth in 2020 as a result of the coronavirus pandemic, Mauritania could increase its wealth by 19% if it was to place greater reliance on the economic potential of women by promoting gender equality and human capital. This is the conclusion of the Fourth Economic Update for Mauritania, released today by the World Bank. Titled “Accelerating Economic Recovery by Unlocking Women’s Potential,” the report notes that the health crisis brought on by the COVID-19 pandemic has led to a significant decline in growth from 5.9% in 2019 to -1.5% in 2020, which has had a particularly severe impact on households and urban workers in the service sector. The report argues, however, that emergency financial assistance provided by donors and improved terms of trade have eased pressures on the current account and the budget.
Africa
Six African countries join WLP to build back trade volumes (Engineering News)
Botswana, Burkina Faso, Ethiopia, Guinea, Mozambique and Zimbabwe have registered as gateway countries with freight loyalty programme World Logistics Passport (WLP). This is expected to reduce supply chain costs and improve speed to market for exports and imports from these countries, WLP CEO Mike Bhaskaran said on June 2. With countries looking to build back global trade volumes, WLP supports traders and freight forwarders. WLP notes that countries can expect to achieve a yearly average increase of 5% to 10% in trade volumes. WLP is designed to boost global trade and enhance the efficiency and resilience of global supply chains.
EAC explores potential of common digital cash (The East African)
East Africa Community member states will explore the potential of a central bank digital currency (CBDC) for their shared payment system to end reluctance by member countries to trade in each other’s currency. The bloc’s secretariat said advances in technology and innovation have created a potential for new forms of cross-border payments even as it moved to upgrade the struggling East African Payment System (EAPS), which was launched in May 2014. “Review recent advances in technology and innovations that have created the potential for new payment infrastructures and arrangements that could be applied to cross-border payments,” the secretariat said in a May 21, consultancy call for a feasibility study on the planned upgrade of the EAPS.
Sub-Saharan Africa most expensive globally to send and receive money (The East African)
The cost of remittances in sub-Saharan Africa was the highest, averaging 8.17 percent in the fourth quarter of 2020 compared with 4.9 percent in South Asia, the lowest average cost. The cost of diaspora remittances from Tanzania to Kenya and Uganda was among the highest in Africa in the past year, averaging between 17 percent and 21 percent per $200. These were some of the findings of a brief prepared by the Global Knowledge Partnership on Migration and Development for the World Bank. The report also said remittance flows to the sub-Saharan Africa region declined by 12.5 percent in 2020 – the biggest drop in over a decade – partly as a result of the global Covid-19 pandemic, but mainly attributed to a huge decline in remittances to Nigeria.
Insights into Africa’s infrastructure finance (IT-Online)
Infrastructure remains a top priority for economic and social development for Africa. The Africa Infrastructure Development Index (AIDI), which tracks the progress of infrastructure development across the continent, shows that sub-Saharan Africa has the lowest stock and poorest quality of infrastructure. Therefore, there is a compelling need to accelerate infrastructure development in this region, says Bahati Sanga, a University of Stellenbosch Business School graduate of the MPhil in Development Finance programme. “Africa’s poor infrastructure is a hindrance to inclusive growth, poverty alleviation, job creation, industrialisation, intra-regional trade and regional integration. Poor maintenance of existing infrastructure in Africa is also discouraging new investments,” he says. “A key constraint to Africa’s infrastructure development is the lack of reliable and sustainable funding.”
Funding for Africa’s startups is at a record high – this is where it’s going (World Economic Forum)
AfricArena has released a new report using Partech data which has forecast that venture capital funding for African startups will amount to between $2.25 billion and $2.8 billion this year, a record high for the continent. Africa’s VC investments reached an all-time high in 2019 when 234 tech companies raised $2.02 billion in 250 equity rounds, a 74 percent increase on the $1,163 recorded in 2018. While the pandemic resulted in major setbacks in 2020 with growth declining 29 percent, the good news is that major improvements are expected. In 2022, VC investment is expected to climb sharply to between $3.8 billion and $4.7 billion while the upper range is expected to be $6.8 billion by 2023. By 2025, VC investment in Africa is forecast to exceed $10 billion.
Overcoming Africa’s debt challenges will not only benefit the continent, but profit its partners in Asia, and the world economy as a whole, participants heard at a webinar to promote the 2021 African Economic Outlook among Asian audiences. Dr. Jingying Sun, Deputy Chief of Staff at the National Institute for Global Strategy at the Chinese Academy of Social Sciences said China has been actively engaged in international debt relief efforts, such as the G20 Debt Service Suspension Initiative and the Common Framework. The total debt service payments suspended by China amount to $1.35 billion, with 23 countries benefiting from the initiative. She further explained that because “not more than 5 % of special drawing rights of the International Monetary Fund is currently allocated to Africa, the continent could recycle that of rich countries, including Asian economies.”
Forge ahead together to deliver a brighter future for China and Africa (The Point)
Enhancing unity and cooperation with Africa has always been high on China’s diplomatic agenda. China and Africa fought shoulder to shoulder in the great struggle to win independence and uphold dignity. We have partnered with each other in pursuit of economic development and better lives for our peoples; and we have supported each other on issues that are important to our core interests and are of major concern to us. Even with COVID-19, China has remained Africa’s largest trading partner for 12 consecutive years. Direct Chinese investment in Africa has been steady, reaching US$3 billion in 2020 alone. Many Chinese engineers and technicians chose to stay at their posts in Africa despite the pandemic; and over 1,100 cooperation projects have maintained operation, providing strong support to economic reopening in Africa. Solid progress has been made in China-Africa cooperation under the Belt and Road Initiative (BRI). Forty-six African countries and the AU Commission have signed cooperation agreements with China under this initiative.
Multilateral Trade Agreements Should Constitute the Cornerstone of Biden’s US-Africa Policy (Centre for Global Development)
On November 24, 2020, in her nomination acceptance speech to become the United States Ambassador to the United Nations, former Assistant Secretary of State for African Affairs Linda Thomas-Greenfield declared, “America is back. Multilateralism is back.” President Joe Biden echoed these remarks at the 2021 Munich Security Conference, proclaiming “America is back. The transatlantic alliance is back.” While this recommitment to multilateralism is welcome, it is imperative that the Biden Administration’s conception of ‘transatlantic multilateralism’ not be limited to that of relations with Western Europe.
Aside from the benefits of streamlined intra-African trade for American firms operating in the region, growing and increasingly connected markets on the continent as a result of the AfCFTA will spur demand for more advanced American products, allowing the US to embrace its competitive advantage to export tech products to Africa, a key area of competition with Chinese firms, such as Huawei and Tecno Mobile, that dominate the sector on the continent. Additionally, Africa’s manufacturing boost – which according to World Bank estimates comprises the majority of the projected $560 billion increase in African exports – will provide the US the opportunity to start diversifying its sources of imports and reduce overreliance on existing supply chains.
A US-Africa summit done right (Atlantic Council)
From Asia to Europe, the last few decades of global Africa policy can be defined in a single word: summitry. For five years now, the United States has been completely absent among the high-profile Africa summits. Given the lack of presidential engagement with African nations that characterized the Trump era, the Biden administration has made the need to convene a US-Africa summit known and Washington is in early days of planning.
While the United States’ competitors show off their strengths, the United States has largely sat on the sidelines. The Biden administration, with an expressed interest in bringing back a US-Africa Summit, now has the opportunity to learn from past failures and do it right. In shaping the future of the US-Africa Summit, the administration should take cues from the Summit of the Americas (a summit among the leaders of Western Hemisphere nations every three years) and adopt three key elements: a long-term commitment, involving African nations and the diaspora in planning, and continued connectivity and engagement.
Lake Victoria Fisheries Organization project aimed at promoting Fish Farming launched (EAC)
The Lake Victoria Fisheries Organization (LVFO), a specialized institution of the EAC based in Jinja, Uganda, has unveiled a 10 million euros project that seeks to promote aquaculture (fish farming) in East Africa. EAC Secretary General Hon. Dr. Peter Mathuki, said that the True Fish project was designed to address or remove impediments to growth in aquaculture faced by investors, for instance, lack of technical skilled operators, lack of investment finance and business planning and incomplete networks. “The second objective of the TrueFish project is to address identified threats which could undermine the sustainability of aquaculture development, or could impact negatively on the environment, food security or livelihoods especially biosecurity risks such as fish diseases and introduction of non-native species that has led to the loss of biodiversity,” said Dr. Mathuki.
Global
Members discuss possible MC12 deliverables on trade and environmental sustainability (WTO)
WTO members taking part in a new initiative on trade and environmental sustainability continued their discussions on possible outcomes to be agreed at the WTO’s upcoming 12th Ministerial Conference (MC12) during the second meeting of the Trade and Environmental Sustainability Structured Discussions (TESSD) on 26-28 May. The first two days of the meeting were dedicated to exchanges with representatives from civil society groups, international organizations, the business community and academic institutions on a variety of topics that may form part of the future TESSD work programme.
New $50 billion health, trade and finance roadmap to end the pandemic and secure a global recovery (WTO)
In a statement published by newspapers around the world, the leaders of the International Monetary Fund, World Bank Group, World Health Organization and World Trade Organization [Kristalina Georgieva, Tedros Adhanom Ghebreyesus, David Malpass and Ngozi Okonjo-Iweala] said governments must act without further delay or risk continued waves and explosive outbreaks of COVID-19 as well as more transmissible and deadly virus variants undermining the global recovery. Leaders of the four agencies said: “By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both.”
The joint statement draws on a recent IMF staff analysis, which stated that $50 billion in new investment is needed to increase manufacturing capacity, supply, trade flows, and delivery, which would accelerate the equitable distribution of diagnostics, oxygen, treatments, medical supplies and vaccines. This injection would also give a major boost to economic growth around the world.
A G7 trade and investment plan to promote prosperity (ODI)
As chair of the G7, the UK has promised to promote prosperity by ‘championing free and fair trade’ at the summit. Professed support to international trade is welcome. However, if the sum of the G7’s ambitions to promote prosperity is to simply reduce barriers to trade, then the summit will be a major opportunity missed. As a vision for supporting a global recovery, it pales in comparison with China’s Belt and Road Initiative, which aims to increase economic integration, value chain growth and market creation through trade, but also significant public and private investment. G7 countries should be considering how both trade and investment can support recovery.
Emerging economies press for COVID-19 vaccine supply in poor nations (The Japan Times)
Five of the world’s biggest emerging economies on Tuesday called for the development and delivery of COVID-19 vaccines to be sped up, reiterating that measures such as waiving intellectual property (IP) rights over the shots could help poorer nations battle the pandemic. The joint statement by the so-called BRICS group – Brazil, Russia, India, China and South Africa – followed an online summit chaired by India’s Foreign Minister Subrahmanyam Jaishankar. The foreign ministers said “extensive immunization” would help bring the pandemic to an end, highlighting the “urgency for expeditious development and deployment of COVID-19 vaccines, especially in developing countries.” They also expressed support for the global campaign led by South Africa and India at the World Trade Organization to temporarily waive IP rights for COVID-19 vaccines. Sharing vaccine doses, technology transfers, developing local production and supply chains as well as price transparency would also boost the fight against the infectious disease, the statement added.
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Media statement: Meeting of the BRICS Ministers of Foreign Affairs/International Relations (MFA)
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BRICS call for reforming United Nations, IMF, WTO and WHO (Mint)
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BRICS supports proposal by India, South Africa to temporarily waive patents on COVID vaccines (Mint)
Big, Rich, and Powerful Subsidizers to Benefit from WTO Fisheries Subsidies Talks (Solomon Times)
Negotiations are taking place at the World Trade Organization (WTO), in Geneva with a view to reaching an agreement at a virtual Ministerial meeting on July 15th. Global talks to reign in global fisheries subsidies are failing to hold big, rich and powerful subsidizers accountable while unfairly shifting the burden onto vulnerable fishing communities. Negotiations have run into deep trouble with the release of the latest version of the Chair’s text. Some developing country members say they cannot accept the text as a basis for future negotiations, objecting to the chair-driven decisions for the text’s content and the opaque process for further negotiations.
UNIDO convenes experts to consider manufacturing responses to COVID-19 and lessons to be learnt (UNIDO)
The United Nations Industrial Development Organization (UNIDO) believes that the COVID-19 pandemic brings an opportunity to glean lessons and present feasible solutions to improve the governance of global manufacturing in the face of this and future crises. Opening a virtual high-level expert consultation, “Manufacturing responses to COVID-19: Lessons for governance and policy coordination in the face of global disasters”, UNIDO Director General, LI Yong, said, “This is a chance not be missed.” The consultation with the 12 eminent experts on economic development is part of UNIDO’s ongoing research work for the Industrial Development Report 2022, entitled The Future of Industrialization in a Post-Pandemic World.
OECD Ministers launch new initiative for safe international travel (OECD)
OECD Ministers have endorsed a new initiative to promote safe international travel during the COVID-19 pandemic at the OECD’s annual Ministerial meeting in Paris. The Initiative involves a safe travel blueprint and a temporary international cross-sectoral forum for knowledge sharing. The forum will allow governments and stakeholders to share information in real time on plans and approaches facilitating travel. The blueprint promotes greater certainty, safety and security in travel as reopening takes place. It builds on existing initiatives and aims to increase interoperability amongst travel regimes. It will be used by countries on a voluntary basis.
Growth in cashless payments reshaping payments infrastructure – PwC (Engineering News)
Payments are increasingly becoming cashless and, as digital money draws stronger interest, the financial services industry must recognise the entire infrastructure of payments is being reshaped, with new business models emerging, advisory multinational PwC says. Given the key role digitisation plays in the financial lives of more of the world’s population, electronic payments are at the epicentre of this transformation, and the financial services industry’s role in fostering inclusion has become a significant priority, the firm states.
Building back broader: a new approach to fiscal and monetary policy (World Economic Forum)
The pandemic-induced lockdowns and the ensuing global recession of 2020 which followed have created a highly uncertain global economic outlook and had dramatic social consequences. Globalization is stalling, social cohesion is being eroded by unrest and political polarization, and the still unfolding economic crisis is threatening the livelihoods of those at the lower end of the income spectrum. As existing temporary support measures begin to expire in several countries, it will be of paramount importance to put in place the structural reforms that will help to build back not only better but also broader. The Global Future Council on the New Agenda for Fiscal and Monetary Policy identified three policy pathways for the transformation of fiscal and monetary policy which could foster a fairer, greener and more inclusive post-pandemic world:
Carbon emissions anywhere threaten development everywhere (UNCTAD)
The economic progress achieved in the past six decades, along with a rapid expansion of global population, has come with a colossal environmental cost. While global GDP per capita has nearly tripled since 1960, CO2 emissions have quadrupled during the same period. Roughly two-thirds of this increase has occurred during the last three decades. However, total emissions do not tell the whole story. A per capita view offers an important perspective on the global CO2 challenge.
New World Bank report covering 10,000 cities shows shape of urban growth underpins livability and sustainable growth (World Bank)
A first-of-its-kind World Bank analysis, of the shape and growth of nearly 10,000 cities between 1990 and 2015, finds that the most successful urban areas are those that connect their growth to economic demand and then support this with comprehensive plans, policies and investments that help avoid uncontrolled sprawl. The new report, Pancakes to Pyramids – City Form for Sustainable Growth, analyzes the dynamic, two-way relationship between a city’s economic growth and the floor space available to residents and businesses. It finds that a city is most likely to be its best version when its shape is driven by economic fundamentals and a conducive policy environment – namely, a robust job market, flexible building regulations, dependable public transit and access to essential services, public spaces, and cultural amenities.
Related News
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National
South Africa’s trade surplus remains robust, underpinned by commodity prices (Daily Maverick)
South Africa’s trade surplus remains among the few bright spots in an economy dimmed by load shedding and other constraints. According to data unveiled on Monday by the South African Revenue Service (SARS), South Africa posted a trade balance surplus in April of R51.24-billion. This brings the cumulative surplus for the first four months of 2021 to R147.83-billion. By way of contrast, in the first four months of 2021, South Africa had a trade deficit of R4.41-billion. “Exports increased by 213.4% year on year whilst imports increased by 25.8% over the same period,” SARS said in a statement. The driving force has been red-hot commodity prices, notably for platinum group metals (PGMs). The category “precious metals and stones” in April saw a rise in exports of 12% in April compared to March, reaching just over R50-billion.
ECIC Growing Product Suite to Support SA Businesses Exporting to the Rest of Africa (the dtic)
South African manufacturers exporting to countries on the African continent will have access to additional insurance products that underwrite risk outside the control of the exporting entity. This follows a new mandate signed by the Minister of Trade, Industry and Competition, Minister Ebrahim Patel, to empower the Export Credit Insurance Corporation (ECIC) to support South African businesses in key priority sectors, as African countries prepare for increased trade and industrialisation following the signing of the AfCFTA.
Exports of goods to other African countries amounted to R346 billion in 2019, prior to the slowdown caused by the Covid-19 pandemic. Other African countries bought more than R2 billion South African-made personal protective equipment and related Covid-19 products in the past year, with significant exports of cars, trucks, components and machinery growing in the period before the Covid-19 pandemic. The ECIC will focus on priority sectors where Sector Master Plans have been agreed. These cover six sectors comprising Automotive; Clothing, Textile, Footwear and Leather; Sugar; Poultry; Steel and Metal Fabrication; and Furniture. Combined these sectors account for nearly R320 billion of South Africa’s exports in 2019 to countries within Africa and elsewhere in the world, or 25% of total exports.
SA’s economy will only recover before 2025 if vaccine rollout speeds up, says OECD analysis (Business Insider)
South Africa’s economy is unlikely to recover to pre-pandemic levels before 2025 due to the slow vaccination rollout and low consumer spending, according to the Organisation for Economic Co-operation and Development (OECD).Economies around the world are expected to rebound in 2021, with most developing nations on track to reach their vaccination goals within the next quarter and resume trade at pre-pandemic levels. But the latest gross domestic product (GDP) projections offered by the OECD, which analyses advanced and emerging economies within the G20 forum, are more optimistic than those presented in December 2020.
Maritime rolls out e-system to enhance efficiency (KBC)
Licenced shipping lines agents operating in Kenya will from Wednesday, June 2, 2021 start using the Maritime Single Window System (MSW) to electronically prepare and submit vessel pre-arrival and pre-departure declarations to the government agencies at the Port of Mombasa. Kenya Trade Network Agency (KenTrade) has been working together with Kenya Maritime Authority (KMA) to implement an E-Maritime Module on the Single Window System to allow Shipping Agents in Kenya to electronically submit vessel pre-arrival and pre-departure FAL declarations to government agencies. According to a statement, KenTrade seeks to provide harmonized and simplified ship to shore clearance procedures to the maritime stakeholders as part of its mandate for trade facilitation.
Development projects transforming Coast region says Elungata (The Star, Kenya)
The massive investment by the national government on the infrastructural development at the Coast is transforming the region, Coast regional coordinator John Elungata has said. Elungata said the Sh40 billion Lamu Port, the ongoing Sh24 billion phase II of the Dongo Kundu bypass, the construction of the Mombasa Airport road, the planned Kibarani bridge among other projects will change the face of the region. According to Elungata, the huge resources committed by the government for the infrastructural improvement and other critical projects have positioned Coast as an attractive destination for investment, trade and tourism.
Kenya, Burundi deepen trade ties for united East African Community (The East African)
Kenya and Burundi on Monday signed several deals aimed at deepening trade and development, following talks between Presidents Uhuru Kenyatta and Evariste Ndayishimiye at State Lodge Kisumu, western Kenya. Addressing the press shortly after the bilateral talks, President Kenyatta said the agreement is primarily aimed at fostering sustained socio-economic development. “The cooperation between our countries is built on a solid foundation of shared values and principles – to foster sustained socio-economic development and transformation, a vibrant and united East African Community and an integrated and prosperous Africa,” he said.
All systems go as Uganda, DRC sign agreement on road projects (The East African)
Uganda and the Democratic Republic of Congo have signed an infrastructural agreement, defining each other’s role in the two roads they are jointly funding. With Ugandan company Dott Services already selected and on site as the main contractor for the three road projects, the two countries wanted the agreements concluded and signed to pave way for smooth construction, mobilisation of equipment and funding. “Uganda already has its share of the funding secured,” says Susan Kataike, spokesperson for the Ministry of Works and Transport. “And for the president himself signing the agreement, that’s how significant these roads are.”
Tanzania, Kenya earn praise after deal on trade barriers (The Citizen)
Members of the business community yesterday commended Tanzania and Kenya for agreeing to scrap a host of trade barriers. During a ministerial meeting held here at the weekend, the two countries agreed to resolve 30 out of 64 barriers impeding cross-border business. “This is a positive development because such barriers, especially non-tariff barriers, impede business growth,” said Mr Hussein Sufian, Bakhresa Group corporate manager. He said the move by the two governments to address the notorious drawbacks would pave way for businesses to prosper. He said it was no secret that NTBs have failed some key businesses in the region to prosper as anticipated.
Tanzania draws AU bodies closer (The East African)
Tanzania’s wind of change under President Samia Suluhu this week blew towards mending fences with at least two key African Union-backed institutions that had fallen foul of her predecessor John Pombe Magufuli’s government. Foreign Affairs Minister Liberata Mulamula on May 26 announced the country’s move to formally ratify the Africa Continental Free Trade Area (AfCFTA) and restore working relations with the African Court of Human and People’s Rights, saying that Tanzania had only “removed itself from the clause” binding it to the Court. It is not clear whether Tanzania has written to the AU to reverse that 2019 decision.
NamRA implements UCR use (Informante)
The Namibia Revenue Agency (NamRA) has implemented the use of the Unique Consignment Reference (UCR) within its customs clearance operation for both import and export in the ASYCUDA World system. The UCR concept is the fundamental need for Customs authorities to facilitate legitimate international trade, while at the same time, providing effective controls. In this respect, the UCR would provide Customs with an efficient tool to exchange information between enforcement agencies. The basis of the UCR is to maximise use of existing supplier, customer and transport references. According to NamRa commissioner Sam Shivute, the UCR will start on 1 June this year.
Take advantage of AfCFTA; develop more products from cocoa – Amb. Boateng to Ghana (GhanaWeb)
Former Ambassador to China, Edward Boateng, has charged Ghana to capitalize on the African Continental Free Trade Area (AfCFTA) agreement to sell its cocoa. His reaction follows reports that China had begun the production of cocoa. “I think what we should be looking at is how much more can we do with our cocoa. I still think that we as a nation have more room to develop more products from our cocoa.” “Even if we take out the Chinese market, AfCFTA itself offers us a huge market. If we get even 20 percent of Africa to consume our cocoa, that itself is a big market,” he added.
Importers disappointed at government’s failure to enforce joint inspection at port (GhanaWeb)
Some importers have expressed disappointment at the government’s failure to enforce the joint cargo inspection protocol instituted at the country’s ports. According to them, there was a lot of hope when government announced the mandatory joint inspection of cargos at the ports; but a few years on, the initiative has been abandoned. The Chairman of the Korea Importers Association, Oduro Kwarteng, said importers would be happy if the mandatory joint inspection of cargos policy is enforced. According to him, many importers currently spend several days at the port to ensure their cargos are inspected and cleared before they move out; a situation that is not only hectic but also costly. He said the policy would greatly improve ease of doing business at the port, and therefore government should push the relevant stakeholders to go back to its implementation.
AfCFTA: Experts Urge FG to Align with Regional IP Organisations (THISDAY)
Experts in the country have stressed the need for the country to become signatories to African Regional Intellectual Property Organisation (ARIPO) in view of the Africa Continental Free Trade Agreement (AfCFTA). According to them, this would complement efforts of the federal government to lay the foundation for the creative industry in the country to benefit from the continental pact. They stated this at the 2021 Legal Business Conference held in Lagos, with the theme, ‘Entertainment Law and Business: Issues and Opportunities.’ Founder and convener, Legal Business Network, Ms. Ifeoma Ben, said: “We cannot have this conversation without talking about contemporary issues, so AfCFTA is one of the areas that we really need to look at because it will open up our borders, enlarge the market because we are now going to have a liberalisation of markets and so we really need to discuss it.
Zambia and Zimbabwe to Benefit from a Common Agro-Industrial Park between Zambia (UNECA)
The Economic Commission for Africa (ECA), Sub-Regional Office for Southern Africa held today a validation meeting on the study on Assessing the Feasibility of Establishing and Managing a Common Agro-Industrial Park between Zambia and Zimbabwe. ECA is supporting this initiative as part of technical assistance towards accelerating regional cooperation and development. According to COMSTAT data, “agriculture contributes about 40 percent to the regional GDP of the Common Market for Eastern and Southern Africa (COMESA) and about 70 percent of the regional population directly draw their livelihood through employment and sustenance from the sector”.
Africa
AFCFTA launches e-TradeHubs to ease trade processes for women-led small businesses (Ecofin)
The e-TradeHubs portal, which will be a one-stop-shop for trade tools and information in Africa, has been launched by the International Chamber of Commerce, Trade Law Centre (TRALAC), UPS International Public Affairs & Sustainability, and West Blue Consulting. This is in line with Women Traders in the Africa Continental Free Trade Area (AfCFTA) “Women Traders in the AfCFTA” – an initiative to enable public policy, and create electronic guidelines to assist women entrepreneurs scale-up and digitize their businesses.
“The AfCFTA holds unprecedented opportunities for women-led businesses to trade, invest and participate in cross-border value chains. The eTradeHub is a one-stop portal with all the information required to ensure trade regulatory compliance. Tralac is proud to partner with ICC, UPS and West Blue Consulting to launch the eTradeHub, contributing to trade facilitation and so boosting intra-African trade,” commented Trudi Hartzenberg, Executive Director, tralac.
Africa’s free trade area can benefit women equally through targeted measures, says UNECA director (UNECA)
Targeted measures are needed to ensure opportunities arising from the African Continental Free Trade Area (AfCFTA) benefit women and men equally across the region. Ms. Thokozile Ruzvidzo, Director of the Gender, Poverty and Social Policy Division at the United Nations Economic Commission for Africa (ECA), made this plea to African countries at a roundtable on ‘human capital: culture and heritage’, hosted during the 2021 Africa Dialogue Series. She said trade alone cannot change the fact women, who although play a significant role in Africa’s economy, remain underpaid and underemployed compared to men. “We know that trade can be a powerful driver of gender equality but that can only happen if we implement measures which stamp out inequalities across the whole system.”
Africa urged to reopen borders to foster saving lives, economies (New Business Ethiopia)
African Ministers responsible for health, ICT, and transport have made a call to the African States to work towards harmonizing pre-entry and exit requirements for cross-border travel, increase mutual recognition, and cross-border information exchange. The Africa CDC, the lead COVID-19 response organ of the African Union, has gone further to provide a platform to member states to support this undertaking known as Trusted Travel. The Ministers also called for cross-collaboration among different sectors and stakeholders. The Call to Action comes under the umbrella of Africa Against COVID-19: “Saving Lives, Economies, and Livelihoods” campaign, which recognizes the need to define our “new normal” by striking a balance between saving lives, re-opening of economies, and revitalizing livelihoods within the African continent.
Africa is set to become a global hub for agritech (MyJoyOnline)
Africa’s agricultural sector is set for exponential growth in the coming decade, research commissioned by Microsoft and compiled by Africa Practice reveals. With a projected value of ¢1 trillion by 2030, the continent is poised to become the global centre of agritech solutions and has also seen rapid growth in e-agriculture solutions. With agriculture sustaining 70 percent of Africa’s livelihoods, Microsoft believes that agriculture is a key sector in Africa. Developing agritech solutions to enable data-driven, precise and connected farming will help farmers across Africa optimise yields, boost farm productivity and increase their profitability. Leveraging our extensive partnerships and initiatives network, Microsoft, through its 4Afrika initiative, is committed to ensuring that all farming communities are equipped with the latest tools like AI, IoT and edge computing to improve productivity and sustainability across the sector.
AERC Bi-Annual Conference to Explore Public Finance Amidst the Covid-19 Pandemic (AERC)
The African Economic Research Consortium (AERC) will host its flagship international conference to discuss opportunities and challenges on the Covid-19 Pandemic and public finance management in Africa. This is the Fifty-fourth plenary session of the Bi-annual Research Conference which will be held virtually on Monday 31st May 2021. The Conference will be staged under the theme: “The COVID-19 Pandemic and Public Finance in Africa: Challenges and Opportunities”. The pandemic compromised Africa’s state of public finance significantly leading to unprecedented contraction of tax revenue, whilst placing extreme stress on public spending as governments struggled to respond to the health crisis, including increased funding for: the health sector, social and business relief, measures to reduce and combat the spread of the virus and various other related needs. However, it also offers opportunities for constructive change as well.
Afreximbank and the Africa Finance Corporation sign agreement for vaccine manufacturing in Africa (Afreximbank)
African Export-Import Bank (Afreximbank) has signed a collaboration agreement with Africa Finance Corporation (AFC) to facilitate and support manufacturing of vaccines on the continent, critical to supporting Africa’s fight against diseases, such as COVID-19. 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. A key outcome will be establishing African self-reliance for the sustainable, secure supply of routine vaccines for the continent’s population, as well as improving the continent’s capacity to respond to epidemic outbreaks such as COVID-19.
African countries urged to prioritize domestic resource mobilization amid COVID-19 (Market Watch)
A World Bank official on Monday urged African countries to prioritize domestic resource mobilization as compared to debt in financing their response to the COVID-19 pandemic. Reinhart told the Nairobi-based African Economic Research Consortium’s 54th biannual plenary session on the pandemic and public finance in Africa that most African countries entered the pandemic with limited fiscal space and higher debt levels, and are now facing prolonged economic downturns as conditions have not normalized.
Notes with satisfaction the remarkable achievements of the AU in response to the COVID-19 pandemic outbreak, including, the implementation of the Africa Joint Continental Strategy for COVID-19; the establishment of the African Union COVID-19 Response Fund; the formation of an African Medicines Supplies Platform; the appointment of African Union Special Envoys for COVID-19 Response; and the creation of the African Vaccines Acquisition Task Team;
Underscores the need to raise global awareness of the threat posed to human security in Africa, as a result of the current unethical practices of hoarding and monopolizing the COVID-19 vaccines; condemns all acts and attempts aimed at undermining Africa’s efforts to access COVID-19 vaccines and calls on the international community to ensure that COVID-19 vaccines are equitably distributed taking into consideration that ‘nobody is safe until everyone is safe’;
Stresses the need to scale-up COVID-19 vaccine manufacturing in Africa in order to achieve universal and equitable access, including through sharing of the intellectual property, technology transfers and open non-exclusive licensing; in this regard emphasizes the importance to build and strengthen African manufacturing capabilities of all types of vaccines; and requests the AU Commission, through its Africa CDC, to make proposals to Member States on continental vision/strategy on the manufacturing of vaccines by African institutions;
Also requests all actors to explore possible options for increasing production, including voluntary licenses, technology pools, the use of Trade-Related Aspects of Intellectual Property Rights (TRIPS) flexibilities and the waiver of certain intellectual property provisions ; and in this regard strongly supports the call for waiver of intellectual property protection for COVID-19 vaccine tabled by South Africa and India before the World Trade Organizations and appeals to the international community for its support, in line with paragraph 12 of AU Assembly Decision 797
Aspen pledges support to ensure equitable Covid-19 vaccine access in Africa (Engineering News)
Multinational specialty pharmaceutical company Aspen has committed to making sterile manufacturing capacity available for equitable Covid-19 vaccine access for Africa, as part of the continent’s efforts to determine how it can expand its manufacturing capacity to establish supply across the continent. Aspen CEO Stephen Saad presented during a high-level seminar on manufacturing vaccines in Africa on May 29, which was hosted by President Cyril Ramaphosa and French President Emmanuel Macron. Aspen’s contribution to this fight, to date, has been through its ongoing supply of dexamethasone and lifesaving anaesthetics, which have played an important role in this regard throughout Europe and globally. Aspen is now, however, shifting its Covid-19 focus to assist in ensuring equitable access to vaccines for less developed countries, with a particular emphasis on African countries.
Institutions partner to expand diagnostic capacity in Africa (Engineering News)
To strengthen diagnostic capacity and the health response to Covid-19 in Africa, global development institution IFC, private sector financer Proparco and pathology services company Cerba Lancet Africa have announced a partnership to increase patient access to a range of laboratory tests. The entities say that expanding access to diagnostics and laboratory testing is a critical part of tackling Covid-19, which has exposed vulnerabilities in health systems across Africa, as well as demonstrated the need for increased testing and laboratory services.
How the Financial Sector can Implement Climate Action in Africa (International Policy Digest)
Climate change is already shrinking Africa’s economies and in less than 9 years the gross domestic product of the continent will shrink by 15%. These losses manifest through lost productivity and damage to key economic sectors – like agriculture, infrastructure, and energy. In financing such sectors, financial institutions should demand that certain actors prioritise climate-resilient actions that will buffer against climate change risk. This cannot be effectively done without tapping into the informal sector players who are the biggest constituency in Africa’s economies. There however exists an over $300 billion lending gap in the informal sector that represents an opportunity for formal financers but which remains untapped because of the perceived high risk of this informal sector.
Palm oil, timber, cocoa: What to expect from Africa in 2021 (The Arica Report)
The 35th CyclOpe report on commodity markets, which was published on 26 May, highlights that the prices of agricultural commodities did not evolve at the same rate as those of industrial metals and energy. This is due to the economic crisis that has resulted from the ongoing pandemic. The price of industrial metals and energy collapsed, before firmly recovering at the end of the year due to strong Chinese demand. However, the average cost of these items has not reverted to that of 2019 levels. Even though Philippe Chalmin, the report’s coordinator, believes that “agricultural tensions should not be exaggerated”, it is obvious that commodities have once again become an asset rich in potential capital gains among investors.
Africa viewed as one of key elements of Belarus’ multipronged foreign policy (Belarus News (BelTA))
Belarus views Africa as one of the important elements of its multipronged foreign policy, Belarus’ Deputy Minister of Foreign Affairs Nikolai Borisevich said at the opening ceremony of the second Belarusian-African Economic Forum on 31 May, BelTA has learned. “Africa is an important market where such global players as China, the USA, Russia, India, and the EU are actively working and competing. We also consider the African continent as one of the important elements of our multipronged foreign policy,” the deputy minister said.
In one year, the pandemic has halted a quarter-century of steady economic growth in Africa, disrupted value chains, and caused an unprecedented increase in inequality and poverty. As a result, the entire world is at risk, because the global economy could lose one of its future drivers of growth. But it is not only Africa that is at risk of losing its opportunity to emerge fully from COVID-19. The global economy could lose one of its future drivers of growth. Africa has everything required to overcome the pandemic crisis and lead the world toward a new cycle of sustainable growth: enterprising and innovative young people, natural resources which can supply a local industrial base, and a highly ambitious continental integration project. But Africa does not have the instruments to recover from a crisis as huge as it was unexpected.
Global economy
Putting the capacity to produce front and center to spur LDC trade (Trade for Development News)
Thriving economies produce. What they produce could be export commodities, human enterprises, linkages to supply chains, data innovations, i.e. the whole range of things that generate profit today. Some countries are able to create a lot, benefiting from skilled labor forces, the best in technology, effective transportation and more. But for others, including the least developed countries (LDCs), what is termed their “productive capacity” may be quite limited. According to a recent discussion, it is time to change that.
With the upcoming LDC5 in Doha to chart the next Programme of Action for LDCs, and many of the aims of the previous decade now out of reach, the international community is readying to plan for an critical next decade. According to UNCTAD’s LDC Report 2020, between 2001 and 2018, improvements in the productive capacity of LDCs has been “lackluster”. During that time period, only Rwanda and Myanmar moved from the low-capacity category to average, and five countries fell from the high-productive group.
WTO Debate on Waiver of Vaccine IP Protections Drags On (Bloomberg)
For the first time in a long time, World Trade Organization delegates are talking about ways they can make a direct impact on the lives of people. For decades, the WTO’s agenda has generally focused on reducing international trade barriers and making it more efficient and predictable for companies to do business abroad. That debate gained new momentum this month after U.S. Trade Representative Katherine Tai made her bombshell announcement that the U.S. would support a temporary waiver to the WTO’s intellectual property rules for Covid-19 vaccines. But Tai’s about-face has not resulted in a change of opinion from U.S. allies like the European Union, Canada, and Switzerland, which continue to oppose a sweeping vaccine waiver and remain skeptical that it would do anything to help get more jabs to people in the world’s poorest nations.
France to join South Africa’s bid to increase support for Trips waivers at G7 meeting (Mail & Guardian)
France has made a commitment to support President Cyril Ramaphosa’s drive to persuade leaders at both the upcoming G7 and G20 meetings to agree to a waiver on the Trade-Related Intellectual Property Rights (Trips) agreement for Covid-19-related pharmaceutical interventions. President Emmanuel Macron told an event on vaccine manufacturing in Africa on Friday evening at the University of Pretoria that South Africa could count on him to fix the inequalities associated with dealing with the virus. “We have been advocating that Covid-19 vaccines must be a global public good. This is important for the stability of global healthcare. I will be alongside you on key issues and the main battles and on Trips agreements and IP [intellectual property]. You can count on me; you can count on France – we will deliver together,” he said.
EU, UK raise doubts about COVID-19 vaccine patent waiver at WTO; express hesitancy (Republic)
The EU, UK, and Japan on Monday continued to raise doubts at the World Trade Organisation (WTO) for the proposed intellectual property waiver (IP waiver) on the COVID-19 vaccines’ raw material and other product, a Geneva trade official reportedly said. While in its monumental shift under the Biden administration, the US has backed and supported the waiver for intellectual property related to COVID-19 vaccines, other member countries which include Australia, Brazil, Britain, Japan, Norway, Singapore, South Korea, Switzerland, and Taiwan, EU, and the UK expressed doubts about the negotiations on the India and South Africa-led proposal as they requested for some more time to thoroughly analyze it.
“It is important for WTO Members to work together to ensure that intellectual property rights such as patents, industrial designs, copyright and protection of undisclosed information do not create barriers to the timely access to affordable medical products including vaccines and medicines or to scaling-up of research, development, manufacturing, and supply of medical products essential to combat COVID-19,” the WTO committee said at the meeting.
Europe still can’t get on board with the TRIPS waiver (Devex)
A lot has changed in a year. The same European leaders who rallied those early funding efforts behind a promise of global solidarity are now the main obstruction to a waiver of the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights, or TRIPS. The proposal is supported by much of the global south – partially backed by U.S. President Joe Biden’s administration, which reversed its position earlier this month – as the best way to ensure equitable vaccine access.
IFC, Proparco, DEG and DFC to Support COVID-19 Vaccine and Pharma Manufacturing in Africa (IFC)
To strengthen Africa’s vaccine and pharmaceutical development and to accelerate the continent’s recovery from the COVID-19 pandemic, the International Finance Corporation (IFC), Proparco, the German Development Finance Institution (DEG) and the U.S. International Development Finance Corporation (DFC) today announced a partnership to support vaccine manufacturing in Africa. “Creating and developing markets for vaccines and other pharmaceutical products is a priority for IFC in Africa. We need strong partnerships and cooperation between the public and private sectors to support countries and regions to combat this pandemic now and to build in the longer-term more resilient health systems and supply chains,” said Makhtar Diop, IFC’s Managing Director.
Jaishankar to chair BRICs foreign ministers’ meeting Tuesday (Mint)
Post covid economic recovery, the strengthening of the multilateral system to make it more effective and further enhancing cooperation among BRICs countries will be key items on the agenda of the group’s Foreign Ministers’ meeting on Tuesday. “The ministers are expected to exchange views on the Covid-19 pandemic situation, the need for strengthening and reforming the Multilateral System with a view to enhancing its capacity to effectively address the diverse challenges of our time and to adapt them to contemporary realities, on global and regional issues of concern, sustainable development, countering terrorism besides discussing ways to enhance intra-BRICS cooperation, especially people-to-people cooperation,” the statement said.
MDBs to the Rescue? The Evidence on COVID-19 Response (Center For Global Development)
The world is now more than a year into the second global crisis of the century. Both the current pandemic and the Global Financial Crisis (GFC) more than 10 years ago tested the capacity of international financial institutions to respond with speed and scale. This time, the IMF has stepped up, first with emergency finance facilities, and later this year with a massive injection of global liquidity through a Special Drawing Rights (SDR) allocation of $650 billion. But what about the multilateral development banks (MDBs)? One of their central roles is to expand the fiscal space of middle- and low-income countries (MICs and LICs) for development spending, exactly what is needed now, and to catalyze finance from the private sector, especially when private finance pulls back. Have they done so? As the 2020 data on MDB finance become available, what can we conclude about how MDBs are performing when the developing world needs them most?
The Suez Canal is being widened. Will it be enough to stop another ship getting stuck? (CNN)
In an effort to avoid a repeat of the event, in mid-May, the Suez Canal Authority (SCA) announced it had started dredging work to widen and deepen the southern part of the canal where the Ever Given was jammed. The work is intended for “maximizing the canal’s efficiency and shortening the vessels’ transit time, as well as raising the navigation safety,” said a press release from the SCA. But there are still questions as to whether this will be enough to prevent future blockages.
5th WCO Global AEO Conference concludes successfully with substantive recommendations for AEO 2.0 (WCO)
The 5th WCO Global AEO Conference, held over three days from 25 to 27 May 2021, concluded successfully with over 3,917 registered participants from 158 World Customs Organization (WCO) Member administrations and stakeholders’ representatives around the world. Under the theme “AEO 2.0: advancing towards new horizons for sustainable and secure trade”, the Conference kicked off with a high-level discussion that identified the strengths and weaknesses of the AEO concept and provided a glimpse into the future of AEO 2.0. The WCO Secretary General, Dr. Kunio Mikuriya, acknowledged that one of the main challenges with current AEO programmes was a lack of harmonization due to various factors, including the level of automation, physical security, environmental aspects and the question of a guarantee. He went on to say that it was critical to harmonize AEO application, validation and authorization processes through increased use of technology.
COVAX Joint Statement: Call to action to equip COVAX to deliver 2 billion doses in 2021 (WHO)
Countries that are advanced in their vaccination programmes are seeing cases of COVID-19 decline, hospitalisations decrease and early signs of some kind of normality resume. However, the global picture is far more concerning. Even though COVAX will have larger volumes available later in the year through the deals it has already secured with several manufacturers, if we do not address the current, urgent shortfall the consequences could be catastrophic. Now more than ever, at the peak of the pandemic, we need ambitious, global solutions. When it comes to worldwide vaccine distribution, COVAX is the only initiative capable of rising to the challenge of this moment.
WHO chief urges all countries to support pandemic treaty (CGTN Africa)
The World Health Organization (WHO) Director-General Tedros Adhanom on Monday called upon all countries to support a proposed pandemic preparedness treaty, warning that it would be a “monumental error” to think the danger of COVID-19 has passed. Tedros made the call in his closing remarks at the World Health Assembly, noting that “this is an idea whose time has come.” “…the one recommendation that I believe will do most to strengthen both WHO and global health security is the recommendation for a treaty on pandemic preparedness and response; that could also improve, as I said earlier, the relationship between Member States, and fosters cooperation,” the WHO chief said.
World Social Report 2021 (United Nations)
New approaches made possible through improved access and Internet connectivity can raise the standard of living for approximately 3.4 billion people living in rural areas, without them having to migrate to cities, according to the newly released 2021 World Social Report “Reconsidering Rural Development.” The COVID-19 pandemic, together with already persistent high levels of poverty and inequalities, are threatening to stall progress for the world’s rural populations. But the pandemic has also proven that new technologies can enable rural populations to flourish, ending the rural-urban divide.
State of Finance for Nature (UNEP)
If the world is to meet the climate change, biodiversity, and land degradation targets, it needs to close a USD 4.1 trillion financing gap in nature by 2050. The current investments in Nature-based solutions amount to USD 133 billion – about 0.10 per cent of global GDP, most of which comes from public sources.
State & Trends of Carbon Pricing 2021 Executive Summary (PMI)
They can play a useful role within a broader suite of policy instruments that tackle other market failures and climate challenges. Research and development or sector-specific regulations, for instance, will also be necessary to reduce emissions outside the coverage of the carbon price or to address barriers apart from price. The State and Trends of Carbon Pricing looks at explicit carbon prices enacted by a government mandate and impose a price based on the carbon content. This includes carbon taxes and emissions trading systems. Crediting mechanisms can also generate credits from voluntarily implemented reduction or removal activities and these are included in the report. Finally, how companies use an internal carbon price to guide investments decisions and/or as an internal carbon fee is also included.
Climate talks resume online as pressure to act grows (Eyewitness News)
For the first time since 2019 and following a flurry of net-zero pledges from the world’s largest emitters, UN climate negotiations resume Monday in a virtual format less than six months before the crunch COP26 summit. The talks, nominally hosted by the United Nations climate change programme in the German city of Bonn, will all be informal, meaning that no decisions will be taken during the three-week discussions. But with increasingly dire warnings from scientists that the pace of global warming is already outstripping humanity’s best plan to cut emissions, the pressure for progress to be made on a number of thorny issues is high.
Paris accord rules must be wrapped up this year: UN climate chief (Thomson Reuters Foundation)
Governments must finalise rules for the Paris Agreement on climate change at November’s COP26 summit so the pact can be fully implemented and serve as the basis for a green recovery from the pandemic, the U.N. climate chief said on Monday. As three weeks of virtual climate talks opened, Patricia Espinosa also called on rich nations to fulfil long-standing climate finance pledges to poorer, vulnerable nations in order to secure trust in the U.N.-led process. “It’s time to wrap up outstanding negotiations and implement the Paris Agreement,” said Espinosa, noting that many nations have yet to submit stronger climate action plans that were due last year under the 2015 global accord. “Unleashing its full potential will not only address climate change but help the world build forward from COVID-19 and drive the transformation towards a cleaner, greener and more sustainable future,” she said.
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National
Manufacturers struggle to cope with the mixed blessings of strong demand (Daily Maverick)
Global supply chain disruptions have been a significant source of concern this year – not just the delays resulting from the Ever Given blocking the Suez Canal – but the ongoing difficulties manufacturers are having in predicting demand and ensuring they have the inventories to meet it. This week the Producer Price Inflation (PPI) figures will reflect how much of an inflationary effect these supply constraints have on domestic prices. Economists are predicting an April producer inflation rate that ranges from 6.7% through to 7.1%.
Investec economist Kamilla Kaplan believes that “the global supply chain issues linked to demand outstripping supply and to transportation delays have translated to accelerated cost inflation for producers locally and globally” and predicts that the April PPI will reflect the impact of this. These supply chain issues have been fuelling inflation concerns and determining the direction of financial markets for the past few months – and manufacturers are still grappling with them. The latest industrial output and Purchasing Managers’ Index (PMI) data provide further evidence of the strains imposed by strong demand and supply shortages.
Statement by President Cyril Ramaphosa on progress in the national effort to contain the COVID-19 pandemic (The Presidency)
It may only be a matter of time before the country as a whole will have entered a third wave. According to our health experts, the recent surge in new infections is due to the increasing number of social gatherings where people are not observing essential health protocols. We must remember that the virus does not move from place to place by itself; it relies on the movement of people. The less we travel, the less the virus is spread.
As the African continent we are pushing ahead with efforts to expand our vaccine manufacturing capacity with a view to be self-sufficient in vaccine production. We are also part of the global effort to ensure that all countries have access to sufficient vaccines as a matter of urgency. We are continuing to urge all countries to support a waiver of the TRIPS agreement at the World Trade Organisation so that COVID-19 vaccines and treatments can be produced on a greater scale, at lower cost and at a faster pace.
FMD: ‘Commodity-based trade can protect economy’ (Food for Mzansi)
A leading veterinarian has warned that the suspension of South Africa’s foot-and-mouth disease-free status will have severe economic consequences for livestock producers and associated industries. The warning by Dr Peter Oberem, chief executive of Afrivet, comes as KwaZulu-Natal farmers are coming to terms with a clampdown on the movement of cloven-hoofed animals in several regions. This, after an outbreak of foot-and-mouth disease (FMD) was identified in cattle in Mtubatuba, about 200km north of Durban. “To lose this FMD-free accreditation has very severe consequences on the… country’s ability to trade internationally with livestock, livestock products and even sometimes other agricultural products,” said Oberem.
Report documents increase in illicit alcohol trade due to prohibition (Bizcommunity)
A report by Euromonitor International has documented the extraordinary growth of the illicit alcohol trade in 2020 as a direct consequence of the prohibition of alcohol sales. The research report entitled, Illicit Trade: Alcoholic Drinks in South Africa in 2020, was jointly commissioned by the South African Liquor Brandowners Association (Salba), the Beer Association of South Africa (Basa) and Vinpro. The report indicated that illicit alcohol trade has grown at a compound annual growth rate (CAGR) of 17% since 2017 and now stands at 12% of the R177.2bn total industry market value. Kurt Moore, CEO of Salba, said, “This expansion of the illicit trade has had a devastating social impact on our citizens’ health and well-being, is stalling economic recovery and fuelling the engines of organised crime.”
On railway transport, Kenya is certainly on the right track (The Standard)
As it marks its fourth anniversary on May 31, 2021 Madaraka Express has been credited with revolutionising travel in the country, offering charm and tranquillity that can’t be matched by other modes of transport. Madaraka Express service has also fostered new investment opportunities for Kenyans and thus contributed to community well being and economic growth. The local tourism sector has also been greatly impacted. Additionally, the service has impacted positively on the lives of many Kenyans, both young and old, through employment directly and indirectly. Between January 2018 and April 2021, the trains moved a total of 12,875,402 tons of cargo.
It is noteworthy that the changing landscape of the railway transport industry poses significant human resource challenges. For this reason, operators must develop knowledge transfer best practices to ensure that vital information and skills are retained within the industry.
Current account deficit widens on rising imports (Business Daily)
Kenya’s current account deficit widened marginally as imports grew at a faster pace compared to export earnings in the first four months of the year. Data from the Central Bank of Kenya (CBK) shows the deficit, measured as a percentage of the gross domestic product, stood at 5.2 percent in the 12 months to April, up from 5.1 per cent in March. The CBK data shows that although exports grew by 5.5 percent in the period, and diaspora remittances were up 23.3 percent higher compared to 2020, the big jump in the import bill has meant that the deficit has widened by 40 basis points since December. The imports have been driven by higher demand for consumer goods and supplies used by the manufacturing sector.
New fund set up to ease debt payments (Business Daily)
Kenya has created a special fund to ease future cash flow pressures on government revenues arising from fast-maturing debts which are forecast to double to nearly Sh1 trillion in the next three years after expiry of grace period. “The Fund shall be used to cushion for amortisation of liabilities arising from national government loans, redeem maturing… loans to alleviate rollover risks and facilitate debt restructuring and smoothening of maturity profile,” read the Public Finance Management (Sinking Fund) Guidelines.
Kenya and Tanzania begin implementing measures to ease trade (The Star, Kenya)
Kenya and Tanzania have begun implementing measures to ease trade between the two nations. Tanzania for instance has agreed to facilitate the clearance of soft drinks and removing inspection fees for processed products with standardization marks including wheat flour. The countries also agreed to facilitate maize entry to Kenya, as well as to waive the excise duty for glass products from Tanzania.
SMEs digest: How Covid-19 impacted traders market access (The Citizen)
Despite favourable rains, food security in Tanzania was compromised last year after the outbreak of Covid-19. Farmers – both smallholders and commercial crop producers – could not access their traditional markets and key inputs. The situation was compounded by the closure of borders with the neighbouring states, especially in the northern zone regions.
Zimbabwe, Zambia pursue joint venture industry projects (Chronicle)
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. Industry and Commerce Minister, Dr Sekai Nzenza, told regional ministers who attended the 4th Comesa Committee of Ministers of Industry last Thursday that the joint venture efforts would assist the two countries to unlock higher economic potential in line with regional industrialisation ideals. The two neighbouring countries will seek to utilise complementarities of national resources in key sectors to drive value-addition of skills, technology and marketing, among other capabilities, said Dr Nzenza.
Zambian cotton entrepreneur goes beyond the fibre (UNCTAD)
Zambia produces about 55,000 metric tons of raw cotton each year. After processing, it exports most of its raw lint without adding any value to the fibre and imports most of its absorbent cotton wool products such as ear buds and swabs. This robs the country’s entrepreneurs of the business opportunities created by adding value to the raw lint. But one Zambian entrepreneur is determined to change the situation.
AfCFTA: Nigeria’s implementation strategy out in June – Official (Premium Times)
Funmi Folorunsho, African Continental Free Trade Agreement (AfCFTA) Co-champion on Transportation, says the National Implementation Strategy document would be published in June. She noted that the implementation strategy document would address in detail issues like having a dispute resolution centre, rules of origin and the like, and how to go about getting things done. According to her, since the signing of the Agreement, President Muhammadu Buhari had established the National Action Committee, with a specific mandate of preparing how Nigerians would optimise the benefits of AfCFTA. “So, as at today, what we have is the preparation of what is called the National Implementation Strategy for Nigeria’s participation in AfCFTA,” she said.
Ivory Coast hopes cashew ‘grey gold’ can conquer US market (RFI)
From a “triangular trade” that sees its nuts shelled in Asia before being shipped to the US, top cashew producer Ivory Coast aims to process more of its own crop for sale in the huge American market. Starting from the present yearly average of just 10 percent, producers aim to shell half by 2025, Adama Coulibaly, director of the Cotton-Cashew Council, told AFP. This year alone the country’s capacity should increase by 100,000 tonnes. But processing more nuts domestically will mean a shift away from traditional export relationships, which currently see most raw nuts sent to Vietnam and India.
Africa
Africa’s free-trade remains muted but likes of Sim Tshabalala is aiming to move the needle (Fin24)
In Ghana, only two companies have done trade deals under the African Continental Free Trade Area (AfCFTA) agreement, according to the Ghana Investment Promotion Centre. But here in South Africa, no one had a single deal to brag about at the webinar hosted by the Gauteng Growth and Development Agency on Friday.
Five months after the AfCFTA came into effect, opening up a free trade area that connects 55 countries and 1.2 billion people on paper, trading tariff-free with other countries in the continent remains a dream for many businesses as leaders are still ironing out more details. Only 38 countries have ratified the agreement so far. So, free trade is a reality that’s so close yet so far, which has made those who were sceptical about it want to say: “I told you so.” But at least more information is coming forward now. The AfCFTA Secretariat’s secretary-general, Wamkele Mene, told those attending the webinar on Friday that challenges with getting the wheels turning were always going to be there.
Women in mining sector could benefit from AfCFTA (The New Dawn Liberia)
In Africa, women are involved in the production of diamonds, gold, coloured gemstones, cobalt, copper, the so-called 3T minerals (bearing tin, tungsten and tantalum), industrial minerals and construction materials, some of which they fashion into finished goods – from pottery and bricks to jewellery. It is necessary to consider, even at this stage, the AfCFTA’s potential impact on women in the mining sector – whether positive or negative. A focus on such impact would help determine the achievement of the aspirations of the AU’s Africa Mining Vision (AMV) that was adopted in 2009, and seeks “Transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development…” and notably mentions gender inclusion as one of its key tenets, though the mechanics of that have yet to be worked out.
The East African Community Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) has urged the EAC Regional Coordination Committee to review and harmonise the Covid-19 testing charges, in addition to the validity and mutual recognition of the certificates with a view to ensuring the safe and smooth movement of goods and persons in the region. The SCTIFI noted with concern the non-recognition of Covid-19 certificates by Partner States, the unharmonised charges for Covid-19 testing and the validity of Covid-19 certificates amongst Partner States. The SCTIFI further observed that notification procedures were not being followed, a situation that essentially constitutes yet another Non-Tariff Barrier (NTB) to trade within the region.
Why Africa continues to retrogress economically – Obi (Vanguard)
The Vice Presidential Candidate of the People’s Democratic Party, PDP, in 2019 elections, Mr Peter Obi, has given, among others, low volume of export trade in African region, general lack of policies implementation, excessive urge to consume rather than produce, corruption and leadership failure, as the reasons for continued retrogression and under-development of the African continent, noting that if the African Trade Agreement were properly implemented, the continent would reap great fruits of development.
“Trade is the driving force behind China’s Silk Road and Belt & Road Initiative (BRI). Trade is the reason that Singapore, a country with no natural resources and a population of less than 6 million people has the best Human Capital Index (HCI) ranking (88%) in the World. Trade is the reason that a war ravaged country like Vietnam is now an export powerhouse in South East Asia. These strides were not accidental but were shaped by visionary leadership and deliberate policies.”
Cancel visa requirements for all intra-African trade and travel (Politicsweb)
The EFF marks the 58th Anniversary of the founding of the Organisation of African Unity, which is continentally and globally celebrated as Africa Day. On this day, the EFF re-affirms the principle contained in our Founding Manifesto that, “the development of the African continent is inextricably linked with the development of South Africa. No amount of sustainable socioeconomic development and stability will be realised in South Africa unless the state plays in active role in the economic development of the African continent. This, obviously, should include the development of trade corridors that link up the entire African continent and create capacity to consume goods and services produced on the continent”. Building of a strong continental economic emancipation movement which will fight for the return of Africa’s land and resources to the hands and benefit of African people.
ECOWAS Trade Experts meet to promote intra-regional and continental trade (ECOWAS)
Trade experts from Member States of the Economic Community of West African States (ECOWAS) met virtually on the 28th May 2021 to deliberate on instruments to promote intra-regional and continental trade ahead of the ECOWAS Ministers of Trade and Industry meeting scheduled for 3rd June 2021.
During the meeting, the Experts considered (i) the status of the AfCFTA negotiations; (ii) the establishment of the Regional Trade Facilitation Committee (RTFC); (iii) the establishment of ECOWAS Trade Promotion Organizations’ Network;(iv) the amendment of the statutes on the ECOWAS Business Council; and (v) the evaluation of the volume of intra-regional trade taking into account informal cross-border trade. Following the fruitful deliberations, a number recommendations were made for consideration by Ministers of Trade and Industry.
Pharmaceuticals determined to protect COVID-19 vaccine prices: Karim (SABC News)
Public health lawyer Safura Abdool Karim says pharmaceutical companies that are manufacturing COVID-19 vaccines are determined to protect their prices despite knowing that third world countries are struggling to get them. Some vaccine manufacturers are accused of bullying poor countries during negotiations to acquire vaccines. “Pricing is the biggest thing that they have been trying to protect because as soon as countries know how much other countries have paid, it gives them more power to negotiate lower prices.” The continental vision for vaccine manufacturing aims to ensure Africa has timely access to vaccines to protect public health security, by establishing a sustainable vaccine development and manufacturing ecosystem in Africa and the proposed ambition to manufacture 60% of Africa’s routine immunisation needs on the continent by 2040, aligned with the call for a New Public Health Order.
The Heads of State approved the 69 PIDA Priority Action Plan II projects during the Africa Union Heads of State and Government Summit held in February 2021. Subsequent to the approval, the African Union Development Agency (AUDA-NEPAD) held a technical meeting on the 5th and 6th of May 2021 to discuss the status of each of the PIDA PAP II Infrastructure projects – these consist of 28 Transport Projects, 18 Energy Projects, 12 Water Projects and 11 Information Communication Technology (ICT) projects. As part of the technical discussions at the event, AUDA-NEPAD, AfDB and UNECA presented the PIDA PAP II Implementation Strategy, Financing Strategy and Partnerships Strategy respectively to showcase how these projects will be supported by the organizations in the implementation phase. AUDA-NEPAD further presented instruments such as the Job Creation Toolkit, Service Delivery Mechanism (SDM), PIDA Quality Label (PQL), Quick Check Methodology (QCM), and the Continental Business Network (CBN).
Joint Meeting of the Committees on Transport and Communications, Information Technology and Energy (COMESA)
The 12th Joint Ministerial and Technical Committees on Transport and Communications, Information Technology and Energy are meeting this week. The technical committee meeting kicked-off today, Monday, 31 May 2021 with the key agenda being the consideration of reports on the implementation of the COMESA programmes on transport, Energy Programmes and Telecommunications/ICT Programmes. The meeting brought together over 100 delegates comprising of technical experts from Member States government’s led by Permanent/Principal Secretaries and their delegations, regional and international organizations, and cooperating partners The recommendations of the technical experts will be tabled before the joint committee of Ministers on Wednesday this week for adoption.
Remarks at the Oxford Africa Conference 2021 (IMF)
By Abebe Aemro Selassie, Director, African Department | The first and perhaps most important reason for my optimism is the more robust development indicators than in the past. Sub-Saharan Africa is a much-changed from 1980 or 1990. It goes without saying that poverty remains unbearably high, the fruits of strong growth in some countries have accrued disproportionately to the better off, and far too many people are still impacted by conflict. But there has also been much progress and transformation. The pandemic has illustrated the value of digitalization but is also a stark reminder of the remaining digital divide. Emerging from the pandemic will depend on integrating digital strategies within each country’s broader development agenda.
Global economy
Trade in the time of parcels (OECD iLibrary)
Today, more parcels are crossing international borders than ever before. While this has given rise to new opportunities, not least for individuals and SMEs who are now more directly engaged in trade, it is also raising new challenges. This paper explores this complex and evolving environment, identifying the types of goods that are traded as parcels and the different actors along the parcels supply chain, as well as the policies to help ensure that parcels get to where they are needed. Empirical analysis shows that progress on digital connectivity and trade facilitation measures, such as increased transparency or automating border processes, are likely to have a greater trade-enhancing impact on parcel trade than on “traditional” trade. In contrast, greater differences in regulations across countries in transportation, courier or logistics services are associated with lower trade in parcels. Overall, enabling benefits from trade in parcels and facing forthcoming challenges requires a comprehensive policy approach across a number of areas and throughout the parcel supply chain.
OECD sees brighter economic prospects but an uneven recovery (OECD)
Prospects for the world economy have brightened but the recovery is likely to remain uneven and, crucially, dependent on the effectiveness of public health measures and policy support, according to the OECD’s latest Economic Outlook. As long as a large proportion of the world’s population is not vaccinated and the risk of new outbreaks remains, the recovery will be uneven and remain vulnerable to fresh setbacks, the Outlook says. Some targeted restrictions on mobility and activity may still need to be maintained, particularly on cross border travel. This will affect the prospects for a full recovery in all countries, even for those with a fast vaccine rollout or low infection rates.
Although government fiscal support throughout the pandemic has pushed up public debt in most economies, the Outlook says current low interest rates make debt servicing more manageable and should open the way for investments in areas such as healthcare, digitalisation and addressing climate change. Ms Boone insisted “Debt sustainability should be a priority only once the recovery is well advanced, but governments should start planning for an overhaul of public finance management. This is no ordinary crisis and no ordinary recovery. Post crisis policies should be reformed in depth to address more effectively today’s challenges and those ahead.”
UN chief calls for a global partnership to address COVID, climate change and achieve SDG’s (UN News)
The world needs a global partnership to beat COVID-19, achieve the Sustainable Development Goals and address climate change, said the UN Secretary General in a video message for the opening day of the 2021 P4G summit in Seoul, Republic of Korea. The Partnering for Green Growth and the Global Goals 2030 (P4G) event aims to boost market-based partnerships and rally high-level political and private sector action. Mr. Guterres also expressed his concern about the ‘finance and adaption gaps’. He said that developed countries have yet to deliver on the 100-billion-dollar annual commitment to climate action efforts and supporting vulnerable communities that are already suffering the consequences of global warming. Mr. Guterres warned that there is no global partnership if some are left “struggling to survive” and said that this was true for COVID and the distribution of vaccines as well as the climate emergency.
Protesters call on banks to ‘drop African debt’ in wake of Covid (The Guardian)
Activists at a demonstration outside the annual general meeting of HSBC in London have demanded the bank and other financial giants provide debt relief to African countries hit hard by the coronavirus pandemic. In an attempt to highlight the role of private creditors in the debt crises of the world’s poorest countries, campaigners with “drop the debt” banners gathered outside HSBC’s AGM at the Southbank Centre. “We’re here today because, although we’re in an enormous global pandemic, private lenders like HSBC are yet to meaningfully suspend or cancel any debt when other countries, even the IMF, have taken action,” said Eva Watkinson, head of campaigns at the Jubilee Debt Campaign. “It’s really shocking that [private creditors] haven’t done more in this crisis. We’re here to say: cancel the debt, fund the vaccines, save lives.”
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Launch of eTradeHubs to simplify trade processes for woman small business owners in AfCFTA (International Chamber of Commerce)
The Women Traders in the African Continental Free Trade Area (AfCFTA), a partnership formed by ICC, TRALAC, UPS, and West Blue Consulting, launched the eTradeHubs portal today to mobilise women small business owners in the AfCFTA. The portal provides timely information, trade management tools and supply chain information related to the AfCFTA to business owners in the region. Using the eTradeHubs portal, small business owners can gain access to vital AfCFTA trade information, including documents, licenses, permits, certificates, fees to be paid and estimated processing times. The portal simplifies trade processes and significantly reduces the time and cost of doing business for small- and medium-sized enterprises (SMEs) operating in the AfCFTA.
Trudi Hartzenberg, Executive Director, Tralac said: “The AfCFTA holds unprecedented opportunities for women-led businesses to trade, invest and participate in cross-border value chains. The eTradeHub is a one-stop portal with all the information required to ensure trade regulatory compliance. Tralac is proud to partner with ICC, UPS and West Blue Consulting to launch the eTradeHub, contributing to trade facilitation and so boosting intra-Africa trade.”
National
Global supply chain delays affecting South Africa’s manufacturing sector (Engineering News)
Advisory multinational PwC estimates that about a quarter of under-utilisation in large manufacturing facilities in South Africa during the first quarter of the year was associated with material shortages. Data by Statistics South Africa (Stats SA) shows that, in the first quarter, large manufacturing facilities were operating at 74% of capacity. Of the 26% of under-utilisation, some 3.7% was attributed to a shortage of raw materials. The Stats SA data also shows that, for five out of ten manufacturing subsectors, raw material shortages were a larger constraint on capacity utilisation in the first quarter of this year than during the lockdown-hit second quarter of 2020. Producers of consumer goods, like clothing, plastic products and furniture, were among those facing greater input pressures compared to last year. Manufacturers of heavy machinery and metal products have the highest underutilisation owing to raw material shortages.
Davies calls for a New Deal-style recovery strategy that eschews austerity (Engineering News)
Former Trade and Industry Minister Dr Rob Davies is urging the South African government, in which he served as a Cabinet Minister from 2009 to 2019, to implement a New Deal-style recovery programme to address the economic damage arising from both Covid-19 and more than a decade of economic drift. Speaking during a recent virtual launch of his new book, Davies cautioned that a retreat to austerity could result in a long and politically destabilising period of stagnation. The recovery effort, he said, had to be of a scale commensurate with the economic damage inflicted by the pandemic to avoid widening inequality and a deepening of poverty.
President Macron on a State Visit to SA (SAnews)
French President Emmanuel Macron will on Friday undertake his first State Visit to South Africa, at the invitation of President Cyril Ramaphosa. President Ramaphosa will host President Macron for the State Visit at the Union Buildings. The two Heads of State will also pay a visit to the Vaccine Production Support Initiative for Africa at the University of Pretoria. “The visit aims to deepen bilateral cooperation within the framework of the strategic partnership between South Africa and France and within the framework of existing bilateral agreements,” the Presidency said.
The Presidents will also talk about trade and investment, including technical skills training in South Africa in collaboration with the private sector. South Africa is France’s largest trading partner in Africa, while France is South Africa’s second-largest trading partner in the European Union (EU). France is a major investor in South Africa and a significant development partner, according to the Presidency. French companies pledged R20 billion of investment into the country during the 2019 South Africa Investment Conference.
‘Beitbridge project among top deals of the year’ (Zimbabwe Independent)
The Global Trade Review, the global trade finance magazine, has named the US$296 million project to rebuild Beitbridge Border Post among its top 11 worldwide deals of the year. According to the magazine, the winning deals “feature a mix of trade, commodity, supply chain and export finance, as well as fintech-led transactions”. Zimborders, a consortium of local businesses, is leading the project to build a new border post. The project includes, as part of the deal, building new public amenities in Beitbridge town. The lead contractor is JSE-listed construction firm Raubex. The deal comprises US$194 million of a senior debt facility, plus US$21,9 of equity.
Kenya eyes more debt relief in economic revival strategy (Business Daily)
Kenya is keen on applying for an extension of the debt repayment relief from rich countries to free up cash to support economic recovery and bolster dollar reserves, the Central Bank of Kenya Governor Patrick Njoroge said on Thursday. The Treasury in January secured deals to suspend debt service with the Paris Club of countries and other creditors, including China, covering the six months through June 2021. “On the question about Kenya interest in extension of debt relief, the answer, of course, is yes,” Dr Njroge said. “[This is important because] it will free up resource for other purposes, and in particular supporting the economic recovery programme.”
Cross-border maize trade held up again amid fresh problems (The Citizen)
Maize exports to Kenya have run into problems again, this time being the shortage of aflatoxin testing kits. This comes at a time when East African Community (EAC) ministers are meeting in Arusha to deliberate on a number of trade issues, including the bloc’s negotiations with Europe. The maize problem is more pronounced at the Holili-Taveta border post where dozens of lorries from Tanzania are held up. In Namanga, the busiest post on the Tanzania-Kenya border, the flow of maize was not as much as anticipated, mainly due to falling demand in Kenya.
Farmers To Get Seedlings Worth Sh 12.75 Million (Kenya News Agency)
The Government has released a consignment of seeds, seedlings and other related inputs worth Sh12.75 million to be distributed to small scale farmers under Scale Irrigation and Value Addition Programme (SIVAP). This was a follow up to seeds and seedlings worth Sh7.8 million that were purchased and distributed to SIVAP counties during the March -May 2020 rains. “In order to address the need for food and nutrition security as well as income generation, the Ministry through the Project Coordinating Unit (PCU) has planned to set up demonstration plots for crops, livestock fodder production and kitchen gardens as a Covid- 19 response initiative,” Boga said.
Tanzania: World Bank Supports Expanded Access to Opportunities and Services, Especially for Women and Youth (World Bank)
The World Bank today approved three projects with a combined financing of $875 million from the International Development Association (IDA). “Approval of the three projects reflects the World Bank’s strong support to Tanzania,” said Hafez Ghanem, Regional Vice President for the World Bank. “The experiences of successfully transitioning economies have shown that strong human capital is fundamental for long-term growth and the development of an economically secure middle class,” said Mara Warwick, World Bank Country Director. “These projects prioritize such investments, which will enable households at all income levels in Tanzania to benefit from growth.”
‘Culture sector will gain from AfCFTA’ (The Southern Times)
Namibian Deputy Prime Minister and Minister of International Relations Netumbo Nandi-Ndaitwah says the African Continental Free Trade Area (AfCFTA) will boost cultural and creative industries across visual arts, music, literature, cuisine, fashion and crafts. He also said: “Agenda 2063 builds upon past continental initiatives such as the Lagos Plan of Action, which called for the mobilization of internal resources to fast-track the socio-economic development of Africa, the Abuja Treaty, which established the regional economic communities, and the African Union Development Agency, NEPAD. Therefore, the implementation of Agenda 2063 remains the main preoccupation for Africa. Shaping an Africa whose development is people-centred, harnessing the potential offered by African peoples, especially its women and youth, and caring for its children, to whom Africa’s future belongs, remains a priority above all priorities.”
Nigerian creative industry under the AfCFTA: Threats and opportunities (Nairametrics)
Like other sectors of the economy, the Nigerian creative industry is gearing up for the opportunities that the African Continental Free Trade Area (AfCFTA) offers the member States. But one may ask, beyond the opportunities, are there inherent threats that lurk around the free trade regime? For one, it is believed that any member State that fails to create an enabling environment for businesses to thrive within its country may lose rather than gain under the AfCFTA. In the Nigerian creative sector, for instance, the COVID-19 pandemic has, amongst other things, exposed the linear revenue streams of the entertainment space, forcing most of the talents to start thinking of new ways of generating incomes beyond the traditional offerings in the industry. The scalability of the Nigerian creative industry within the AfCFTA will depend on the existence of a robust framework that supports IP rights and provides digital security.
Africa
New report: AfCFTA creates jobs, opportunities for African youth (ITC)
Africa’s large and fast-growing youth population is considered one of its greatest assets, with a central role to play in shaping the development of the continent. Yet, young Africans face numerous challenges that affect their livelihoods and make it difficult for them to thrive. The African Continental Free Trade Area (AfCFTA) has what it takes to tackle these challenges by creating more jobs and entrepreneurship opportunities for young men and women. A new International Trade Centre (ITC) report, Opportunities for Youth Employment and Entrepreneurship: Understanding the African Continental Free Trade Area, explores how youth stand to benefit from the creation of a single market and promotion of key sectors, including manufacturing, agriculture and services.
AfCFTA Secretariat establishes court to resolve trade disputes (GhanaWeb)
The AfCFTA Secretariat has established a Dispute Settlement Body. It will function as a full-court with the right mechanisms and structures in place to settle trade disputes. The dispute resolution forum is also expected to stir trust and boost confidence among member-states. Wamkele Mene, Secretary-General of the African Continental Free Trade Area Secretariat, has said his outfit has established a court that will serve as a dispute resolution forum. The move according to Wamkele Mene is hinged on inspiring confidence among traders, offer clarity and certainty of trade deals as they use the platform. “We know that there will be disputes, but the key thing is how to resolve those disputes. Right up until this agreement entered into force, when a trader wanted to access their legal rights the only forum, they had in Africa was the country where the issue took place. Otherwise, you had to go through the World Trade Organisation (WTO) or to the International Criminal Court (ICC) to have that matter adjudicated and resolved.” He clarified, “We have now, for the first time, established a forum for resolution of trade investment, intellectual property rights through this protocol of dispute settlement. It will function like any other court of law. There is a dispute settlement body where a complainant will bring their dispute, and the body will consider the merits of the dispute and establish a panel that we call the court of first incidence.”
AfCFTA offers opportunity to synergise economic links (The Herald)
Despite the shadow insurgency has cast over the continent, Africa has every reason to celebrate following the strides it has made in empowering its people through the formation and the subsequent launch of the African Continental Free Trade Area (AfCFTA). This grand platform now allows Africans to trade within its borders, explore existing opportunities, review challenges and be able to fine-tune its own trading platform without outside interference. The secretary-general of the Accra-based AfCFTA Secretariat, Wamkele Mene, emphasised throughout these past 100 days – and before then – that effective implementation of the trade pact is the post-pandemic stimulus Africa needs. “There is not a single African country that can work alone to trade its way out of poverty,” he opined at an event in New York last month.
The Economic Commission for Africa (ECA), is committed to supporting member States to domesticate the regional industrial strategies and mainstream them coherently into national development plans and policies to create a platform for the development of regional value chains. This was said Thursday by the ECA’s Sub-Regional Office for Southern Africa Acting Director, Sizo Mhlanga, in his welcoming remarks during a two-day Forum on the Promotion and Implementation of Regional and National Industrialization Policies for Inclusive and Sustainable Development in Southern Africa held on Monday 27 and 28 May 2021. “As you are aware, economic growth in Southern Africa declined from 2.9 percent in 2017 to 1.9 per cent in 2018 and to only 1.4 per cent in 2019. Furthermore, the COVID-19-induced disruptions pushed the region into recession in 2020. The heavy regional dependence on primary commodities and the associated disruption in international supply chains has been the key structural weakness which undermined the growth process, exposing Southern Africa to the vagaries of the global commodity markets,” he said.
African countries show significant progress on tax transparency – 2021 Tax Transparency report (AfDB)
African countries strengthened their ability to recover funds held offshore, directly boosting national tax revenues, according to the latest Tax Transparency in Africa report released Wednesday. The trend signals continuing progress in the fight against illicit fund flows out of Africa, worth an estimated $50 billion each year. In spite of disruptions caused by the Covid-19 crisis, there have been advances in transparency. Mali joined the Global Forum, bringing to 32 the number of African members. Eswatini became a signatory to the Yaoundé Declaration on fighting illicit financial flows in Africa, joining 29 other African countries plus the African Union Commission. In 2020, African countries for the first time sent more exchange of information requests than they received. Fighting these illicit transactions is at the heart of the partnership between the African Development Bank and the Global Forum.
The road to recovery in Sub-Saharan Africa: Capitalizing on transformative opportunities from shifting FDI patterns (World Bank)
The flow of Foreign Direct Investment (FDI) to Africa has shifted over the past decade, as new sources of investment have emerged and new sectors have expanded. While the COVID-19 crisis has clouded the outlook for future investment, capitalizing on the longer-term trends presents a compelling opportunity for African policy makers looking towards economic recovery. Low foreign investment has held back Africa’s participation in global value chains (GVCs). FDI is beneficial to the host countries because it helps to enhance firm productivity and integrate domestic firms into global markets, as illustrated by the rapid development of newly industrialized Asian economies in the last few decades. Unfortunately, both FDI inflows and GVC participation are low in the Africa region. Africa needs to attract more foreign investment, and ensure that it occurs in more employment-intensive, export-oriented or green sectors.
Inside Africa’s drive to boost medicines and vaccine manufacturing (World Health Organisation)
With COVID-19 vaccine supplies to Africa slowing down, the continent is working to boost its own manufacturing capacities for vaccines, medicines and vital health technologies. Mrs Biruk Abate Halallo, Health Attaché at Ethiopia’s Permanent Mission to the United Nations Offices in Geneva, is the driving force behind a resolution on the local manufacturing of medicines, medical technologies and vaccines that is being presented at the World Health Assembly, WHO’s leading decision-making body, this week.
Why some African countries are dumping scarce vaccine doses (Politico)
An unexpected scene mid-pandemic: one of the world’s poorest countries burning scarce Covid vaccine that had expired. Malawi has destroyed almost 20,000 AstraZeneca doses. South Sudan is giving 72,000 back. The Democratic Republic of the Congo returned 1.3 million doses, worried it couldn’t use them before their June expiry. It’s made all the more worrying by the fact that Africa has administered the fewest Covid vaccines of any continent at 2.1 doses per 100 people, largely because there are so few shots available there. But a combination of short vaccine shelf life, lack of money and preparation, and vaccine hesitancy has left some African countries unable to get vaccines into arms before they expire.
International partnership to strengthen medical equipment financing in Africa (Engineering News)
Medical equipment company GE Healthcare and financial services company NSIA Banque Côte d’Ivoire have partnered with development finance institution the International Finance Corporation's (IFC’s) Africa Medical Equipment Facility to support healthcare providers in Cameroon, Côte d’Ivoire, Kenya, Rwanda, Senegal, Tanzania and Uganda in accessing essential medical equipment. Through a multi-stakeholder approach, the IFC is partnering with medical equipment manufacturers and local financial institutions to support healthcare providers across East and West Africa to strengthen the healthcare industry
Fishers want Uhuru to lobby EAC for unrestricted fishing (The Star, Kenya)
A network of fishermen on Lake Victoria has asked President Uhuru Kenyatta to lobby for access to Ugandan and Tanzanian fishing territories. They told Uhuru to use his East African Community chairmanship to ask the neighbours that share the lake and allow for fishing everywhere as fish have no restricted movement. Lake Victoria Beach Management Unit Network national chair Tom Guda said border insecurity, harassment and arrests of Kenyan fishers should also be addressed. “With harmonised fisheries laws, there should not be any restrictions to East African fishers on any part of the lake,” he said.
Agenda achiever (Chinadaily)
Intra-African trade reaching a level of 50 percent and hopefully above that, depends on Africa’s capacity to accelerate regional value chains and the manner and pace in which Africa implements the agreement. This also resonates with bringing to fruition the “Made in Africa” initiative. Such enhanced trade could add at least 4.5 percent to the continent’s GDP. Furthermore, by stimulating manufacturing and industrial capacity to enable trade in goods and products produced in Africa, local industries have the potential to double their production to $1 trillion in a decade with much of that coming from import-substitution manufacturing in order to meet increasing local demand.
Global economy
Goods barometer reveals strength of trade recovery, depth of COVID-19 shock (WTO)
The Goods Barometer is a composite leading indicator for world trade, providing real-time information on the trajectory of merchandise trade relative to recent trends. The barometer’s current reading of 109.7 is nearly 10 points above the baseline value of 100 for the index and up 21.6 points year-on-year, reflecting both the strength of the current recovery and the depth of the COVID-19 shock last year. In the latest month, all of the barometer’s component indices were above trend and rising, highlighting the broad-based nature of the recovery and signalling an accelerating pace of trade expansion.
Health body, not trade lawyers, ‘should decide patents access’ (SciDev)
Eight months ago, South Africa and India proposed a trade-related waiver for COVID-19 vaccines, treatments and diagnostics. Calling for a temporary suspension of intellectual property protections on COVID-19 products and technologies, it was a bold move to address global inequality of access. “As new diagnostics, therapeutics and vaccines for COVID-19 are developed, there are significant concerns [about] how these will be made available promptly, in sufficient quantities and at affordable price to meet global demand,” said the proposal, submitted to the World Trade Organization Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS). As of 17 May, 62 countries had signed on as co-sponsors, including the 35 members of the WTO’s Least Developed Countries Group.
The WCO Secretariat Note on the cross-border movement of vaccines enhanced with further guidance and good practices (World Customs Organisation)
The World Customs Organization (WCO) published the 2nd edition of the Secretariat Note on the Role of Customs in facilitating and securing the cross-border movement of situationally critical medicines and vaccines that enhances the inaugural version launched on 25 February 2021. WCO Secretary General Dr. Kunio Mikuriya stated, “How to achieve equitable distribution of COVID-19 vaccines is critical, and Customs administrations around the world should support global efforts by not only facilitating the cross-border movement of the vaccines themselves, but also by speeding up and facilitating the Customs clearance of the raw materials and components used in the vaccine manufacturing process.” He added that “This will greatly contribute to the efforts to scale up vaccine manufacturing and the 2nd edition of the Secretariat Note highlights the critical role Customs”.
Rethinking supply chains for vaccines and other health products (Devex)
Prashant Yadav, an expert on healthcare supply chains, says the world is too dependent on India for vaccines. The country, which stopped exporting COVID-19 vaccines in April as it deals with a devastating second wave of the virus, cannot meet the needs of its own vaccination program, let alone its global commitments, Yadav wrote in a recent piece. “Dependency on global structures alone for manufacturing and purchasing is useful but not always sufficient and we need, perhaps, multiple lanes in how we run the supply chains for health products,” Yadav said in a session on the future of technology in low- and middle-income countries.
India’s proposal for exempting low-income fishers from subsidy cuts at WTO gaining weight (The Hindu BuisnessLine)
India’s proposal of exempting low-income fishers from developing countries operating in territorial waters from a subsidy ban is gaining weight with several WTO members supporting its inclusion in the draft agreement floated by the chair of the negotiating committee.” What is, however, worrying for India is the indication that the exemption may come with a timeline and may be withdrawn after the initial years,” an official source told BusinessLine. As per the draft text on curbing fisheries subsidies circulated by the chair of the negotiations Santiago Will, the prohibition on fisheries subsidies shall not apply to subsidies granted or maintained by developing country members, including least-developed countries, for low income, resource-poor or livelihood fishing or fishing related activities within 12 nautical miles measured from the baselines for a period of about 2 years from the date of entry into force of this instrument.
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COMESA Ministers of Industry approve frameworks for implementing the Regional Industrial Strategy
Ministers of Industry from the 21 COMESA Member States have approved the implementation strategy of the regional local content policy framework and the management of the Special Economic Zones and Industrial Parks.
The COMESA Local Content Policy Framework is aimed at helping to transform the region’s low productivity economies, from overreliance on export of unprocessed primary commodities with either little or no value addition, to competitive economies that produce, and export value added products.
With the approval, Member States will formulate similar policies to maximize local benefits from industrialization. Equally, the adopted framework of managing special economic zones (SEZ) and industrial parks will guide Member States when domesticating SEZ strategies and industrial parks at the national level.
In their communique, the Ministers committed to ensure the harmonized regional frameworks and guidelines are implemented in their respective countries.
Speaking at the opening of the meeting, the Minister of Industry and Commerce of Zimbabwe, Dr Sekai Nzenza, observed that despite high growth potential in the region, poverty, unemployment, low investment levels, and depressed aggregate demand among others, are prevalent.
“This is attributed to depressed industrialization in our region,” she stated adding that industrial development was critical in addressing the productive constraints towards the realization of inclusive and sustainable transformation of the region.
The approval of the frameworks will therefore enable the full implementation of the COMESA Industrialization Strategy and Action, which was adopted by the Ministers in 2019, to guide structural economic transformation of the region. Among its key component is the promotion of agriculture and value addition.
The COMESA industrialization strategy is aligned with the Third Industrial Development Decade for Africa (IDDA3) whose guiding principles include: government ownership and leadership of the initiative; strengthened enabling business environment; prioritized sectors with high potential for growth; and strong partnerships for financial and non-financial resource mobilization at the multilateral, regional and bilateral levels.
On its part, COMESA Secretariat committed to continue providing a platform for lobbying international technical and financial assistance to support the special economic zones development.
“The initiatives will include supporting learning events and profiling some SEZ projects that could serve as regional centers of excellence,” she said. “Besides, the Secretariat will promote the development of border economic zones and facilitate the needed technical assistance for their development, among others,” said the Secretary General Ms. Chileshe Kapwepwe.
During the meeting, the ministers also approved the regional Guidelines on Increasing Sustainable and Inclusive Industrial Production during and after COVID 19. This is recognition of the negative impact that COVID-19 has had on industrial production by disrupting regional and global value chains.
Among others, the guidelines provide for enhancement of digital transformation such as e-commerce and e-trade to reduce and avoid physical contacts during transaction within and across member States while at the same time cutting down on transaction costs.
In his closing remarks, Malawi Minister for Industry Hon. Roy Kachale, described the development of the frameworks as timely given the disruption occasioned by the COVID 19 pandemic.
“There is no better time than now when coming into effect of the African Continental Free Trade Area promises to offer an even greater opportunity for countries to widen their access to global supply chains and export higher value goods and services,” he said.
Heads of the delegation representing development and cooperating partners that addressed the meeting included the European Union, the World Bank, United Nations Industrial Development Organization and the International Trade Centre. Representatives from the private sector in region also participated in the meeting.
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Animal products boost agriculture’s bottom line (IOL)
The agricultural sector made significant monetary gains between 2017 and 2019, with income rising by R37.4 billion in the period following a devastating drought. Data from Statistics South Africa (StatsSA) yesterday showed that the total income earned in the agriculture and related services sector rose by 5.8 percent to R351.4bn in 2019, compared with R314bn in 2017. South Africa views agriculture as one of the important sectors in its economic reconstruction and recovery plan, after the economy was severely affected by the Covid-19 pandemic. The plan entails the potential expansion of agricultural production, which will be carried out through master plans that are in the final stages of being drafted. South Africa views agriculture as one of the important sectors in its economic reconstruction and recovery plan, after the economy was severely affected by the Covid-19 pandemic.
Zim maize ban: ‘Stupid move’ set to affect trade relations with SA (Food for Mzansi)
An announcement by Zimbabwean authorities to suspend all maize and maize meal imports with immediate effect has Mzansi’s agricultural sector hot under the collar. Until recently, Zimbabwe was the single largest maize export market for South Africa in the 2020-2021 marketing year. Of the 2,6 million tonnes of maize that the country exported, about 20% went to Zimbabwe. However, Zimbabwe’s agricultural marketing authority has since announced a complete ban on maize imports. The sudden decision left industry role-players gobsmacked and concerned over what this will mean for South Africa’s maize export market. What’s even more concerning, is what this suspension might mean for trade relationship with Zimbabwe.
Digital Transformation Core to Boosting Zimbabwe’s Economy, Improving Services (World Bank)
The Zimbabwe Digital Economy Diagnostic, a new report developed by the World Bank, finds that its digital financial services are the strongest foundation for the further development of the digital economy in the country. Among Zimbabwe’s key strengths is the widely used digital payment system, through which 96 percent of all transactions in the country are transacted, and which Government uses extensively for its core business. “We recognize the potential for digital technologies to help pave the way forward and are therefore focusing on development of the key digital pillars that will underpin the growth of our economy,” said Dr. Misheck Sibanda, Chief Secretary to the President and Cabinet.
US government pledges support for companies investing in Zimbabwe (The Chronicle)
The United States (US) government is ready to support American companies keen to invest in Zimbabwe and believes the country is poised for economic growth this year and going forward. US Ambassador to Zimbabwe, Mr Brian Nichols, said this on Monday in remarks to officially open the Post-Reconstruction Trade Mission to Zimbabwe and Mozambique, which was hosted virtually. While acknowledging strained bilateral relations between Harare and Washington in the past years, Amb Nichols, noted positive reforms and re-engagement progress outcomes under the New Dispensation led by President Mnangagwa, but said more loose ends need to be tightened. He described Zimbabwe as a “country with incredible untapped potential”, citing the abundant natural resources, vibrant and skilled human capital base, as well as favourable climate for both agriculture and tourism.
Kisumu traders relocated to new market in Sh3bn port expansion plan (Business Daily)
The national government and Kisumu County government have kicked off the resettlement of traders whose structures were brought down to give way for the expansion of Sh3 billion port. The initiative being spearheaded by the Ministry of Infrastructure, Housing, Urban Development and Public Works and that of Interior is targeting to relocate traders to Sh600 million market to be launched by President Uhuru Kenyatta on Saturday. “We aim to provide a long term solution to traders who will operate in a conducive environment, complete with proper sanitation and floodlight to promote 24-hour economy,” Acting City manager Abala Wanga said.
Nigeria partners Ghanaian’s shippers to promote trade in Africa (National Accord)
The Nigerian Shippers Council (NSC) is working with the Ghanian Shippers Authority (GSA) to further protect shippers and promote trade in Africa. Mr. Hassan Bello, the executive secretary / managing director of NSC, told reporters in Abuja on Wednesday that the collaboration would allow them to do more for the region. “The most important thing is that we need to unite consumers of shipping services through advocacy or regulation. We have to make sure there is a balance, there is a balance, we have to make sure there is a level playing field. Our economies must not be strangled; we must wean ourselves from the mono-economy of the oil sector and consider an alternative or an option. “And there is no more promising alternative than the shipping or transportation industry and that is why the shippers’ council has always played a role at every stage of the economic revolution not only in Africa but in the world,” Bello said.
GIPC hosts Cocoa Value Chain Investment conference (MyJoyOnline)
The Ghana Investment Promotion Centre (GIPC) will today host a Cocoa Value Chain Investment conference to engender discussions on the exciting prospects of the country’s cocoa industry. Under the theme “Ghana’s Brown Gold: Sustaining Investments & Leveraging AfCFTA”, the event is purposed to highlight the opportunities along the cocoa value chain that can be leveraged by investors, as well as sensitize industry players on valuable commercial opportunities offered by the African Continental Free Trade Agreement (AfCFTA). By generating about US$2 billion annually in foreign exchange, cocoa continues to play an important role in Ghana’s economy, serving as a major contributor to government’s revenue.
Nigeria needs to find its place in Africa and develop a more cooperative continental foreign policy (Daily Maverick)
Nigeria’s assumption of a leadership role in Africa has mainly been driven by the size of its population and, more recently, its economy. However, domestic problems have affected Nigeria’s interactions with African countries and influence the way it’s regarded by the continent, which has never really accepted its self-proclaimed leadership role. Nigeria needs to rethink its Africa policy to ensure mutual benefit to itself and the continent.
The planned review of Nigeria’s foreign policy must be evidence-driven. In 2020 the country enjoyed a trade surplus of about $4.6-billion from the continent. Africa takes up a 20% share of Nigeria’s exports. Economic links between Nigeria and the rest of the continent should grow under the African Continental Free Trade Area, and as the country charts a path away from its dependence on oil exports.
EU, GOL Launch Farmers Fishers Trade For Small Holders Farmers In Liberia (FrontPageAfrica)
Agriculture Minister Jeanine Cooper says using agriculture as a business is important for Liberia to move beyond subsistence farming and fishing. According to Minister Cooper, agricultural must now shift from its current stage to a more advanced level that will promote human development. “The program is on track with discussion around the world on ensuring safe and notorious food,” Minister Cooper averred. However, she believes it is equally important to address challenges against achieving such a goal.
Seychelles begins programmes to boost natural export products, beginning with cinnamon (Seychelles News Agency)
The government of Seychelles has started a programme to diversify its economy by exploiting its natural resources for exportation as value-added products. The first step in the programme is the revival of the cinnamon industry as a new source of income for the country, a top government official said on Tuesday. The Minister for Investment, Entrepreneurship and Industries told a press conference that one of the ministry’s strategic objectives is “to increase the country’s revenue through increasing local production for exportation, reducing importation and reducing dependence on tourism.” Devika Vidot said, “The government has started a comprehensive programme to identify natural resources that we will promote for exportation, for private investors to engage in and promote the exportation of these natural resources.”
Africa
Okonjo, Kagame, others list success factors for AfCFTA, post pandemic economic devt (Vanguard)
World Trade Organisations, WTO, Director General, Dr. Ngozi Okonjo Iweala and Rwandan President, Paul Kagame yesterday called on African leaders to show the political will and embrace increased cooperation to achieve the goals of the African Free Trade Continental Agreement, AfCFTA, which is necessary for the post pandemic development of the continent. Speaking at the 3rd annual UBA Africa Day Conversation, the two global leaders highlighted the importance of ensuring free movement of goods, services and people across the various African countries as a critical success factor for AfCFTA. They however noted that this however requires political will on the part of African leaders who have the power to make it happen.
AfCFTA is a Key Instrument in Post Covid 19 Recovery (The Department of Trade, Industry and Competition)
The Deputy Minister of Trade, Industry and Competition, Mr Fikile Majola says it is imperative for South Africa to look beyond its borders to accomplish the task of inclusive economic growth and job creation in the wake of the Covid 19 pandemic. He was delivering the main address at the virtual Africa Day commemoration of the National Council of Provinces (NCOP). Majola says it is critical to move with speed towards building a strong foundation for Africa’s inclusive economic growth and the African Continental Free Trade Area (AfCFTA) provides the platform to advance this core objective.
The importance of African trade in South Africa’s overall trade continues to grow. In 2019, 27% of South Africa’s world exports and 12% of world imports were intra-Africa. South Africa continues to record a large trade surplus with the rest of Africa, exporting mainly mineral products, machinery, chemicals and iron and steel products, which accounts for over 50% of its total exports to the rest of the continent. South Africa’s exports into Africa grew from about R 9 billion rand in 1994 to over R 340 billion by 2019. Considering that in 2019 Africa imported about R 8 trillion worth of goods, South Africa’s share of global exports into Africa is still relatively small. This is bound to change with the implementation of the AfCFTA.
How the AfCFTA Will Boost Investment and Development in Africa (THISDAY)
The formation and implementation of a single market can change the economic game for African countries, providing solutions and improving socio-economic outlook on the continent. The initiative is focused on establishing a free market to influence the economy and foster prosperity. African countries can import and export goods without tariff and non-tariff barriers. This will enhance imports and exports, ensure benefits of economies of scale, and enable a wide array of commodity exchange and revenue generation.
The World Bank also notes that the African free trade agreement is a major opportunity for African countries to reduce poverty and raise the incomes of 68 million people who live on less than $5.50 per day. Trade facilitation measures that cut red tape and simplified customs procedures would drive $292 billion of the $450 billion in potential income gains. In addition to this, the implementation of the AfCFTA will see the increase of continental and foreign investments in Africa.
AfCFTA: stakeholders call for increased private sector involvement (Naija247news)
The United Nations Economic Commission for Africa (UNECA) has called for increase in the role of private sector for better outcomes in the African Continental Free Trade Area (AfCFTA) agreement. Mrs Ngone Diop, Director, UNECA Sub-Regional Office, West Africa said this at a virtual regional forum on Wednesday. The two-day forum is a West Africa Regional Forum of Intergovernmental and private sector organisations on the Implementation of the AfCFTA. Diop said increasing the role of the private sector would impact on the initiatives of the AfCFTA. The director noted that the sector’s role would harness demographic dividend, grow the middle class and increase the use of technology. She further said it would promote rapid urbanisation and increase opportunities for regional and global value chains for African businesses as strategic drivers of economic growth in Africa.
VP Bawumia Calls On AU Member States To Institute Supporting Measures For Successful Implementation Of AfCFTA (The Presidency, Republic of Ghana)
The Vice President, Dr. Mahamudu Bawumia, has urged member states of the African Union to institute complimentary measures for the successful implementation of the Africa Continental Free Trade Area (AfCFTA) The AU-backed AfCFTA, with its headquarters in Ghana, is aimed at boosting and accelerating intra-African trade and strengthening Africa’s trading position in the global market. Addressing a virtual UPSA Law School’s 1st African Trade Roundtable on Wednesday May 25, Vice President Bawumia highlighted the immense benefits the AfCFTA would bring to the African continent, but was quick to remind participants that the benefits would not be realised without the full commitment of African states. “No one needs a lecture on the immense benefits of continental free trade in goods and services and the movement of persons on the continent. The ultimate shared benefits are in boosting trade and industry, in job creation and increasing incomes, and in boosting the standards of living of our people,” Dr. Bawumia said. “But, the promised benefits of the AfCFTA would not be fully realised unless African Union member states buttress the Agreement’s implementation with complementary measures.”
Africa’s free trade area offers great promise. But only if risks are managed with resolve (The Conversation Africa)
For all its stutters and missteps, there can be little argument that the European Union (EU) has largely lived up to its ambitious billing: to create stability and growth on a continent that, for a period, was dangerously prone to nationalism and conflict. The question facing Africa is whether the continent’s free trade area can likewise mitigate conflict and forge a prospering Africa. The African Continental Free Trade Area is a project of the African Union (AU). Founded in 2018, it’s described as a framework through which to deliver “inclusive and sustainable growth”. By July 2019, 54 of the AU’s 55 member states had signed the agreement, with Eritrea the only holdout. While negotiations are still ongoing, the trade agreement officially commenced on 1 January this year. The idea is that it will be rolled out over three phases. The World Bank imagines it as a means “to lift 30 million people out of extreme poverty”. But will it? The experience of the EU could help show the way both in terms of the upside, as well as potential pitfalls.
GITFiC calls for implementation of trade finance support programmes (GhanaWeb)
The Ghana International Trade and Finance Conference (GITFiC) has called on government and stakeholders in the trade sector to implement enhanced trade finance support programmes. It said such programmes were necessary because they provided valuable credit and liquidity support for the intra-African trade. “In terms of opportunities, the elimination of inhibitive regulations under the AfCFTA is expected to ease cross border trade, enable capital and information flow, attract greater foreign and intra-continental investments, potentially increase capital funds, and provide a much larger customer base for financial institutions to serve,” Gerald Woode, Lead-Research Fellow (Policy and Advocate, GITFiC), said.
Ministers of Industry Approve Frameworks for Implementing the Regional Industrial Strategy (COMESA)
Ministers of industry from the 21 COMESA Member States have approved the implementation strategy of the regional local content policy framework and the management of the Special Economic Zones and Industrial Parks. The COMESA Local Content Policy Framework is aimed at helping to transform the region’s low productivity economies, from overreliance on export of unprocessed primary commodities with either little or no value addition, to competitive economies that produce, and export value added products. With the approval, Member States will formulate similar policies to maximize local benefits from industrialization. Equally, the adopted framework of managing special economic zones (SEZ) and industrial parks will guide Member States when domesticating SEZ strategies and industrial parks at the national level.
A five-day meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) is currently underway at the EAC Headquarters in Arusha, Tanzania. The SCTIFI meeting started with the Session of Senior Officials that started on Monday and ends today, Wednesday, 26th May, 2021. The Coordination Committee or the Session of Permanent/Principal/Under Secretaries is slated for Thursday, 27th May, 2021 and the Ministers’ session on Friday, 28th May, 2021. Among the items on the agenda of the SCTIFI are the: Status of Implementation of the Previous Decisions of SCTIFI; Report of the Ministers /Cabinet Secretary of Finance; Report of the Sectoral Committee on Customs; Report of the Sectoral Committee of Trade, and; Implementation Of The Summit Decision on the EAC-EU EPA.
EACs 2021-22 Budget Cycle – The Role of Debt (The Star, Kenya)
The East African Community’s (EAC) 2021/22 budget cycle is fast approaching with the respective Cabinet Secretaries/Finance Ministers expected to read the 2021/22 budget in June 2021. This will provide a clear picture of the EAC governments’ priorities in the 2021/22 fiscal period, keeping in mind the region’s post-COVID economic recovery initiatives, infrastructure development ambitions, recurrent expenditures and debt servicing commitments.
The Secretary-General – Introductory Remarks to Africa Dialogue Series (UNECA)
Culture is the flower of the human being – the fruit of our minds, the product of our traditions, the expression of our yearnings. Its diversity is wondrous, part of the rich tapestry of civilization. Culture is also a powerhouse – an employer of millions, an engine of economic progress, a force for social cohesion. Aspiration 5 of Africa’s Agenda 2063 envisions a continent with a strong cultural identity, common heritage, shared values and ethics. It is a call for using the continent’s rich and diverse cultural and natural heritage as a catalyst for Africa’s growth and transformation. It is the right appeal at the right time.
These are needed more than ever as the continent works to overcome the disruption of the COVID-19 pandemic and pursue peaceful, sustainable development. We need to move towards sustainable economic growth that protects the environment, promotes human rights and strengthens the social contract. And we need a stronger sense of solidarity and multilateral cooperation to achieve the Sustainable Development Goals and leave no one behind. Now for that to be possible, we also need to express a very clear solidarity with the African continent in this dramatic moment in which we are still under the terrible impact of the COVID-19 pandemic.
SADC Member States agree to work together to unlock funding for regional energy projects (SADC)
Southern African Development Community (SADC) Member States have agreed to work together to address policy challenges affecting funding for regional energy infrastructure projects and to find innovative ways to unlock projects from a funding and compliance point. This came out of a virtual workshop held by SADC Secretariat, in collaboration with the Southern African Power Pool (SAPP) through the ‘Accelerating Regional Energy Projects’ (SAPP AREP) programme on 27-28 April 2021 to validate the findings of a Report on policy related critical Gaps, Risks and Challenges affecting development of regional energy infrastructure projects.
The SADC SAPP AREP aims to establish a sustainable framework of designing, preparing and financing regional generation and transmission infrastructure projects in SADC Member States that would increase the number of projects undergoing construction phase with clear targeted commissioning dates.
The Sustainable Energy Fund for Africa (SEFA) has extended a $1 million grant to help accelerate African countries’ transition to flexible green grids and other clean power solutions ahead of the 2021 United Nations Climate Change Conference, COP26, scheduled to be held later this year. The technical assistance grant, sourced through a SEFA Rapid Response Facility, will enable up to five African countries participating in a COP26 Energy Transition Council process to assess potential gaps in policy, regulatory and institutional frameworks; develop approaches to increase the contribution of grid-connected renewable energy generation; as well as identify financing mechanisms.
Africa goes digital (IMF)
To generate economic growth that leads to sustainable development, Africa must shift its focus to retaining and creating wealth, better managing its resources, fostering inclusiveness, moving up on global value chains, diversifying its economies, optimizing the energy mix, and placing human capital at the center of policymaking. For this to happen, African policy must foster investment in research, development, and innovation (R&D&I) to reboot the continent’s economic structures and catch up technologically with the rest of the world. Innovation, and the digital information technology that accompanies it, has become a necessary component of any effort to address such challenges as food security, education, health, energy, and competitiveness. The world is driven by innovation: unless African policymakers reap the potential benefits of R&D&I, the global divide will keep growing. The problem is that innovation is talked about and debated, but not strategized.
Illicit gold markets in East and Southern Africa (Global Initiative)
Today, the artisanal and small-scale gold mining (ASGM) sector is governed by increasingly comprehensive legal and regulatory frameworks, and is reliant on transnational supply chains that connect rural mining operations to international gold hubs. However, the increase in illicit activities in gold-rich markets has undermined the potential for this precious commodity to be a catalyst for development in these regional African markets.
Corporate Council on Africa (CCA) to host the Virtual 2021 U.S.-Africa Business Summit July 27-29 (Africanews)
Corporate Council on Africa (CCA) will hold the 13th U.S.-Africa Business Summit virtually on July 27-29 to build sustainable partnerships and opportunities between key government and private sector decision-makers across America and the African continent. With participation from over 2,000 U.S. and African business executives and government leaders, this year’s CCA Summit will feature senior U.S. Government officials as they explain the Biden Administration’s priorities for Africa, including details of new programs to support development in the Information Communications Technology sector, environmentally smart infrastructure and sustainable energy, and what to expect on trade and investment, including prospects for the U.S.-Kenya Free Trade Agreement, updates on Prosper Africa and the future of the African Growth and Opportunity Act (AGOA).
European and African Leaders Call for a New Deal for Africa (Project Syndicate)
Africa has everything required to overcome the pandemic crisis and lead the world toward a new cycle of sustainable growth: enterprising and innovative young people, natural resources which can supply a local industrial base, and a highly ambitious continental integration project. But Africa does not have the instruments to recover from a crisis as huge as it was unexpected.
International solidarity began yielding results soon after the pandemic began. Debt-service payments for the poorest countries were suspended under the G20, and exceptional financial assistance from the IMF, the World Bank, and other donors, including Europe, was made available. But the institutions that have underpinned international solidarity for decades are now reaching their limits. They have been weakened in the short term by huge inequalities in vaccine access. They are weakened, too, by major economic divergences, which no emergency measure seems capable of stopping. That is why a new framework, an ambitious and bold New Deal, is needed.
Sub-Saharan African entrepreneurs to benefit from €100m partnership (Engineering News)
Sub-Saharan African entrepreneurs and businesses most impacted by the economic, health and social challenges triggered by Covid-19 will be able to benefit from a new €100-million private sector financing initiative backed by the Development Bank of Austria (OeEB) and the European Investment Bank (EIB). “Improving access to finance for small and medium-sized enterprises (SMEs) – particularly in sub-Saharan Africa and the world’s least developed countries – has been one of our core goals for many years. Especially now, in light of the ongoing Covid-19 pandemic which hits SMEs hardest, it has become even more important,” comments OeEB executive board members Sabine Gaber and Michael Wancata.
Forge ahead Together to Deliver a Brighter Future for China and Africa (MFA China)
Enhancing unity and cooperation with Africa has always been high on China’s diplomatic agenda. China and Africa fought shoulder to shoulder in the great struggle to win independence and uphold dignity. We have partnered with each other in pursuit of economic development and better lives for our peoples; and we have supported each other on issues that are important to our core interests and are of major concern to us. Despite rapid changes in the international landscape, China-Africa friendship has remained rock-solid and as strong as ever. China and Africa have pressed ahead in pursuit of cooperation despite difficulties caused by the virus. Even with COVID-19, China has remained Africa’s largest trading partner for 12 consecutive years. Direct Chinese investment in Africa has been steady, reaching US$3 billion in 2020 alone.
Global economy
The Distributional Impacts of Trade: Empirical Innovations, Analytical Tools, and Policy Responses (World Bank)
Trade is a well-established driver of growth and poverty reduction. But changes in trade policy also have distributional impacts that create winners and losers. It is vital to understand and clearly communicate how trade affects economic well-being across all segments of the population, as well as how policies can more effectively ensure that the gains from trade are distributed more widely. This book provides a deeper understanding of the distributional effects of trade across regions, industries, and demographic groups within countries over time.
Asian Ports Dominate Global Container Port Performance Index (World Bank)
Asian container ports are the most efficient in the world, dominating the Top 50 spots according to the new global Container Port Performance Index (CPPI) launched by the World Bank and IHS Markit. The report scored ports against different metrics, making the efficiency ranking comparable around the globe by assessing and standardizing for different ship sizes and container moves per call. The CPPI is intended to identify gaps and opportunities for improvement that will benefit stakeholders from shipping lines to national governments to consumers.
“The development of high-quality and efficient container port infrastructure is a key contributor to successful, export-led growth strategies both in developing and developed countries”, said Martin Humphreys, Lead Transport Economist and Global Lead for Transport Connectivity and Regional Integration in the World Bank. “Efficient ports also ensure business continuity and improve the resilience of the maritime gateways as crucial nodes in the global logistical system.”
Decarbonizing shipping – why now is the time to act (WEF)
The call for tackling climate change is gaining momentum among citizens, investors, companies and countries around the world. US Climate Envoy, John Kerry, recently announced that the US is joining international efforts to achieve zero emissions from international shipping by 2050. And the maritime industry wants to play its part. Shipping connects the world by supplying essential goods that society needs to thrive. Whilst this is done with the lowest carbon footprint of any mode of transport per ton transported, shipping is still emitting significant amounts of greenhouse gases. With a sizeable carbon footprint that only shows signs of growing, and a decades-long investment horizon, shipping cannot afford to wait. For the world to decarbonize, shipping must decarbonize.
Lack of transparency over vaccine trials, secretive contracts and… (Transparency)
A lack of transparency in COVID-19 vaccine trials and secrecy over deals between governments and drug companies risks the success of the global pandemic response, new research from Transparency International Global Health and the University of Toronto warns. For Whose Benefit? is an in-depth study of the development and sale of the world’s top 20 COVID-19 vaccines, including those developed by AstraZeneca, Moderna and Pfizer/BioNTech. Through detailed analysis of clinical trial data and nearly 200 contracts for vaccine sales up to March 2021, the report reveals a pattern of poor transparency and a disturbing trend of governments censoring key details of their orders from drug companies.
Global Debt Spiked During COVID, Leaving Some Countries on Shaky Ground (Voice of America)
In the year since the COVID-19 pandemic threw the global economy into a tailspin, the level of global debt – money owed by governments, businesses and households – has jumped by 12% to $289 trillion. And while some countries appear to have begun the task of reducing overall indebtedness, many governments in countries transitioning to full market economies are finding it difficult to do so. While many advanced economies are finding their footing again, with vaccination rates rising and infection rates falling, the progress against the pandemic in countries not yet fully integrated into the global economy – known as “emerging markets” – is highly variable. This means that in some countries that borrowed heavily during the past year, interest payments on debt have increased, even as tax revenue and other income have been slashed by lower economic output. Across the 31 emerging market countries tracked by the Institute of International Finance data, government debt increased by 15% between the end of 2019 and the end of the first quarter of this year.
A patent waiver on COVID vaccines is right and fair (Nature)
Every country should have the right to make its own vaccines during a pandemic. That’s the principle underpinning the campaign to temporarily waive intellectual property (IP) protection on coronavirus vaccines. The campaign was initiated by India and South Africa, and is being backed by more than 100 countries, along with international organizations including the World Health Organization and the United Nations AIDS charity, UNAIDS. The goal is to reduce the barriers to countries producing their own vaccines – particularly for the lowest-income nations. At present, the proposal does not have the support of the pharmaceutical industry, nor that of most high-income nations. Instead, these countries are pledging to share more of their own vaccines with low-income nations and to provide more funding to charitable vaccine-provision schemes such as COVAX. However, in a surprising and welcome move earlier this month, the United States, Russia and China came out in support of an IP waiver on vaccines.
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Africa Intra-continental Trade: SA exporters must be supported now (The South African)
KwaZulu-Natal’s (KZN) small businesses must be supported to take advantage of The African Continental Free Trade Area agreement (AfCFTA) by helping them to grow exports and beneficiate raw materials to grow intra-continental trade. This was the message from CEO of Trade and Investment KZN Neville Matjie to delegates at the launch of KZN’s Africa Export Opportunities seminar held in Durban on Tuesday. “Intra- Africa trade helps grow economies, creates jobs and reduces poverty,” Matjie said. However, he said the according to statistics released by the World Trade Organisation a comparative analysis showed that intra-Africa trade was currently just 18%, compared to intra-Asian trade at 52%; intra-North America trade at 50% and intra-EU trade at 70%. The aim of the AfCFTA is to remove tariff trade barriers as well as non-trade barriers to rapidly grow the level of trade between African countries.
Activists and South African gov’t lock horns over coal pollution (Reuters)
South Africa’s failure to tackle toxic levels of air pollution produced by burning coal is a violation its post-Apartheid constitution, activists and a U.N. rights expert said in court on Monday. Campaigners are suing the South African government in the High Court, hoping to force tougher action against heavy polluters such as state power company Eskom and liquid fuel producer Sasol (SOLJ.J). The campaigners say tougher action is required to enforce a constitutional guarantee of the right to an environment not harmful to health. Environment Minister Barbara Creecy acknowledges that air pollution is a problem, but her submission to the court says the constitution does not require the ministry to impose stiffer rules. Using the constitution to try to force the minister’s hand violates the separation of powers, she argues.
Beef producers want more clarity on AfCFTA (IOL)
Beef producers in South Africa have decried some elements of the African Continental Free Trade Agreement (AfCFTA), which they said lacked clarity on the available opportunities. In a statement yesterday, Roelie van Reenen, the supply chain executive at Beefmaster Group, said there were a few elements that needed to be better understood before the beef industry could successfully leverage the agreement to its benefit. Beefmaster is a leading specialist supplier of beef products to the South African and global markets. He said the agriculture sector needed clarity on the plan whereby South African producers are urged by the government to seize the opportunities provided by the agreement, given that it aims to eliminate 90 percent of tariffs on goods and services for inter-continental trade, and projections suggest that it could increase intra-African trade by at least a third.
AU Day: Ghana is proud to host AFCFTA Secretariat – Govt (GhanaWeb)
The government of Ghana has indicated its commitment to ensuring that the Continental Integration Agenda of the African Union is realised to the benefit of all. This information was contained in a press statement made by the ministry of foreign affairs and regional integration. The press statement which was issued to mark the 58th anniversary of the African Union noted that “Today, Ghana is proud to play host to the Secretariat of the AFCFTA, a key milestone in the attainment of our Agenda 2063. These initiatives among other flagship programmes, are meant to foster democracy, good governance, rule of law, as well as deepen regional integration on the African continent”.
Tanzania out to ratify continental trade pact (IPPMedia)
Tanzania is finalizing processes for ratification of the Africa Continental Free Trade Area (AfCFTA) agreement that will facilitate free movement of goods and services as well as allowing all African countries to do business without restrictions. The Minister for Foreign Affairs and East Africa Cooperation, Liberata Mulamula said this in Dar es Salaam yesterday during the Africa Day 58th anniversary at the Julius Nyerere International Conference Centre (JNICC).
New shipping lines call at Dar es Salaam port as efficiency improves (Dailynews)
Tanzania International Container Terminal Services (TICTS), a specialised container operator in the country’s largest sea port Dar es Salaam, is seeing an increase in shipping activities and volumes coming through Tanzania. TICTS Chief Executive Officer, Horace Hui, said improved port performance reflects progress in cooperation with the government and the Tanzania Ports Authority (TPA) to modernise operations at the terminal. In April 2021 TICTS invested almost 5bn/- (2.0 million US dollars) to relocate three old ship-to-shore gantry cranes at the Dar es Salaam port, which were decommissioned by the TPA. That created additional berth length at the quayside allowing 3 vessels to berth at the same time and therefore increasing the annual handling capacity by almost 100,000 TEU’s.
Revised warehousing rule good for supply chain – KAM (The Star, Kenya)
The lifting of restrictions on the use of customs bonded warehouses in the country will help stabilise the supply of imported goods, local manufactures have affirmed. In a gazette notice dated April 15, 2021, Kenya Revenue Authority (KRA) revised an earlier order issued in May 2020, widened the scope of goods that were not eligible for customs bonded warehouses. A customs bonded warehouse is a warehouse licensed by the commissioner of customs for the storage of goods imported, into the region, pending the payment of duties. The 2020 decision had an impact on about 17 types of products, which had been locked out of the warehousing system with importers forced to pay duty upon arrival of goods into the country.
“Warehousing ensures continuous production as raw materials are kept within the country rather than imported when required,” KAM chief executive Phyllis Wakiaga told the Star. She said lifting the restrictions is critical in stabilising the supply of imported finished goods and raw material, a time when the Covid-19 pandemic has disrupted the global supply chain.
CSOs react to proposed 2021/22 budget (The Independent Uganda)
Uganda’s newly proposed budget may not efficiently deliver services to the citizens, according to the Civil Society Organisations that do work on the budget. Speaking at a half day pre-budget dialogue on May 18 in Kampala, Mukunda said, the alignment of the new budget is at 61.9% less than the 70% benchmark set by the National Planning Authority. He also stated that the inadequate financing to local governments and all other sectors will, as has been the norm, affect effective service delivery to citizens distorting government efforts to uplift the welfare of citizens. He added that, there is need to ensure that all eligible taxpayers pay their fair share of taxes to enable government raise the much needed revenue to finance development. This comes just a few weeks Parliament approved a Shs44.7 trillion budget for the 2021/2022 financial year.
Rwanda extends passport phase out (The East African)
Rwanda on Tuesday extended the deadline for phasing out old passports by one year. The country is phasing out the old passports, and replacing them with the biometric East African e-passports. Around 100,000 passports were going to expire in the next one month. The announcement comes as many Rwandans abroad have been unable to travel back home to acquire new passports due to Covid-19 travel restrictions. The Machine Readable Passports will be replaced by the new East African e-Passports that have been in use since June 2019. Users of the old passports were given a two-year grace period to replace them with the East African e-passports.
New coffee fund to cushion farmers from falling prices (Business Daily)
Coffee farmers will be cushioned from extremely low prices if Parliament approves a proposed law aimed at cheering production of the crop. The State-sponsored Bill proposes the establishment of a Coffee Stabilisation Fund (CSF) to compensate profit margins for farmers whenever prices of the commodity plummet sharply. “There is established a Fund to be known as the Coffee Stabilisation Fund which shall be managed by the Board,” reads the Bill sponsored by Majority Leader in the National Assembly Amos Kimunya.”The Board shall apply the monies received into the Fund to income and price stabilisation and any investment that furthers the objective of stabilising the prices paid to farmers,” it reads.
AfCFTA: FG working on priorities to ease export processes – NEPC (Vanguard)
The Nigeria Export Promotion Council (NEPC) has said that the federal government through the Council, is working on some short and medium term priorities and initiatives that would ease the export processes in Nigeria enable the country to reap the full benefit of the African Continental Free Trade Agreement (AfCFTA). As part of the priorities, the Council said it is working with the Nigerian Ports Authority (NPA) to promote the use of alternative ports around the country, as well as working on construction of domestic export warehouses and common facility process centres for many of the export commodities. Olusegun Awolowo, CEO, NEPC, stated these yesterday at a webinar with a theme “AfCFTA: Revamping Nigeria’s Infrastructure for Global Trade”, organised by Arbiterz Media Limited, saying that most of the projects and initiatives would be completed and ready for take-off in the next six months.
Mauritius Prepares Country Progress Report on Africa’s Agenda 2063 (AUDA-NEPAD)
Senior government officials from Mauritius convened on 20th May to prepare a comprehensive and country-driven assessment of Mauritius’s progress in realising Agenda 2063, the continent’s blueprint for inclusive growth and sustainable development. The two-day workshop organised by the African Union Commission (AUC) and African Union Development Agency (AUDA-NEPAD) is part of a series of country and regional trainings to develop the Second Continental Progress Report on Agenda 2063 to be presented at the 36th African Union Heads of State and Government Summit in February 2022. The Report is an innovative mechanism to track implementation of the fifty-year roadmap, highlighting areas where progress has been made and areas where challenges remain.
New Reforms Could Help Mauritius Bounce Back Stronger from COVID-19 Crisis (World Bank)
Mauritius’ best strategy for economic recovery post-pandemic includes both temporary support to firms and households, and comprehensive reforms to address pre-existing structural challenges, says the World Bank’s latest economic analysis for the country. The newly-released Mauritius Country Economic Memorandum, Through the Eye of a Perfect Storm – Coming Back Stronger from the COVID-19 Crisis, says the COVID-19 crisis presents policy makers with an opportunity to confront long-standing challenges. “The current crisis brought to the fore the need to address long standing challenges to inclusive growth – unlocking investment, restoring competitiveness, maintaining inclusiveness, and doing more with fewer public resources,” noted Idah Pswarayi-Riddihough, World Bank Country Director for Mauritius, Mozambique, Madagascar, Comoros and Seychelles. “This is the time to accelerate the recovery and re-emerge from the storm stronger than before with the adoption of a new series of reforms.”
UK-Liberia Chamber of Commerce Brainstorm On Trade, Investments (FrontPageAfrica)
The Liberia Business Association (LIBA) and the United Kingdom-Liberia Chamber of Commerce, have brainstormed on trade and investments that could help boost the Liberian economy that is struggling for improvement. Speaking via the Internet at the signing of a memorandum of understanding on Tuesday, March 25, 2021, the Director of Communication and External Affairs of the UK-LIBERIA Chamber of Commerce, Wofai Samuel, elaborated that the agreement seeks to promote education, health, agriculture and other useful businesses that could help to elevate the Liberian economy. According to her, the agreement also highlights collaboration and partnership between the Liberia Business Association and members of the UK-Liberia Chamber of Commerce that could benefit the Liberian Government and its people who are eagered for huge and sustainable investments that might augment their living standards.
Africa
Africa needs fiscal stimulus, revive service sector to capitalise on economic growth – Okonjo-Iweala (Nairametrics)
Dr. Ngozi Okonjo-Iweala has stated that for Africa to have a post-pandemic economic recovery, it needs to focus on fiscal stimulus and policies geared towards reviving the services sector. The Director-General of the World Trade Organisation disclosed this at the UBA Africa Day event themed: “Africa to the world” on Tuesday, May 25th, 2021.
“First and foremost, is to solve the health problem in Africa. The next few actions on short term economic side include more fiscal stimulus into our economies. She added that for Africa to recover, the conversation on debt restructuring is important, as it gives African economies fiscal space to breathe and to enable investment, not only on the health side but also on the economic side, leading to recovery.
Dr Okonjo-Iweala added that Africa needs to revive the services sector as many of the countries depend on tourism, logistic/aviation. “How to get those industries revived, using these resources is important to get them going,” she said. The WTO DG stated that Africa must diversify its economies in order to key into the advantages that the AfCFTA provides.
Accelerating AfCFTA implementation key for Africa’s recovery (New Business Ethiopia)
The United Nations Economic Commission for Africa (ECA) says it will continue to work closely with its member States, the African Union Commission and other key stakeholders towards the effective implementation of the African Continental Free Trade Area (AfCFTA). AfCFTA is expected to deepen and expand intra-African trade and help the continent build forward better in the aftermath of the COVID-19 pandemic. Responding to Canadian Prime Minister, Justin Trudeau’s statement announcing funding of $15.2 million to the ECA’s African Trade Policy Centre (ATPC), Executive Secretary, Vera Songwe, said the AfCFTA provided an excellent policy framework for Africa to build inclusive and resilient economies post-COVID-19.
African legislators discuss Covid-19 recovery, AfCFTA (The New Times)
The Parliament of Rwanda is hosting, from May 25 to 28, in Kigali, the 12th Conference of Presidents of Assemblies, and the Branches of the Parliamentary Assembly of La Francophonie’s Africa Region to discuss issues including recovery from Covid-19 pandemic. According to a press release issued on May 24, about 90 participants, including the Presidents of parliamentary assemblies and members of parliaments in the African region will take part in this conference. The President of the Chamber of Deputies of Rwanda, Donatille Mukabalisa underlined that “the conference will be an excellent framework for discussing, among other things, the political, social and health situation in the countries of the French-speaking African region, the contribution of Parliaments to the post-Covid-19 recovery as well as to the African Continental Free Trade Area (AfCFTA).”
African Continental Free Trade Area: A pipe dream or silver bullet? (Daily Maverick)
The continent’s import dependence and colonial trade patterns are reflected in traffic movements — trucks laden with minerals and other raw materials heading for the sea, returning either empty or loaded with imports. This is the reality that faces Africa as it unrolls its flagship project, the African Continental Free Trade Area (AfCFTA), which started trading under the agreement in January 2021. The initiative brings together a potential market of more than a billion people and has a lofty ambition of increasing intra-African trade from under 20% currently to more than 30% in just a few years by attracting investment into manufacturing, agriculture and other sectors and building regional value chains.
Intra-African trade is well below that of other regions such as Europe (68%) and Asia (59%) despite years of trade facilitation, the existence of a raft of free trade areas and customs unions and high growth in many economies. According to the United Nations Conference on Trade and Development, trade within Africa is of a better quality than its trade with the rest of the world. The former has higher manufacturing (46.3%), and medium- and high-technology content (27.1%) as well as more product diversity than the latter. By extension, therefore, the free trade area can help African countries transform by expanding domestic productive capacity, enabling them to move up the value chain and diversify local and export production.
African Ministers of finance and Central Bank Governors support integrated value chains for sustainable economies (African Union)
African Ministers of Finance, Economic Planning, and Integration and Central Bank Governors have adopted rich recommendations that would enable the continent realise the vision to have regional value chains that boost intra-African trade and enhance Africa’s share of global trade. The recommendations reinforce the need for improved business and investment climate especially for micro, small and medium-sized enterprises (SMEs) to promote innovation through start-ups, investing in innovative business models and production revolution that diversify Africa’s exports through sustainable value chains.
At the just concluded Ministerial and Governors meeting of the Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration meeting, convened to focus on “Developing integrated and complementary value chains for sustainable recovery and reinforcing operationalization of the AfCFTA”, the Ministers and Governors also deliberated on effective ways to strengthen domestic resource mobilization through continental capital markets, functional African financial institutions, and conclusively addressing the illicit financial flows to accumulate resources to be utilized in accelerating the continental socio-economic transformation under development blueprint of Agenda 2063.
NEPAD has potential to transform African economies – Kenyatta (Capital Business)
President Uhuru Kenyatta has said the New Partnership for Africa’s Development (NEPAD) holds immense potential to transform African economies. The President said NEPAD, which was adopted in 2002 by the African Union as a continental socio-economic development framework, should be used to consolidate expertise and other resources needed to uplift Africa’s economy. “NEPAD is an important tool that can help mobilize resources for the continent to enable it achieve tremendous growth in all sectors,” the President said. “If we continue working together, we will enhance our capacity to handle future pandemics just as we are doing with Covid-19, and are managing to flatten the curve.”
Africa essential for sustainable development, poverty reduction and peace (UN News)
“This year’s Africa Day highlights arts, culture and heritage as levers for building the Africa we want,” Secretary-General António Guterres said in his commemorative message. COVID-19 has triggered a global recession that has “exposed deep-seated inequalities and vulnerabilities”, according to the UN chief – endangering hard-won development gains throughout Africa and beyond. “On this Africa Day, I renew my call to developed nations to stand in solidarity with Africa”, concluded the Secretary-General.
Currently, there is a “profound imbalance” in vaccine distribution among countries, with the latest figures revealing that African countries have received just two per cent of vaccines, said the top UN official. To end the pandemic, support economic recovery and achieve the Sustainable Development Goals (SDGs), he stressed the need for “equitable and universal access to COVID-19 vaccines”. The UN chief upheld that Africa Day can “can provide a strong foundation for inclusive economic progress as the continent strives to meet the challenges posed by the COVID-19 pandemic”.
African leaders urged to support SMMEs (Cape Business News)
Minister of Communications and Digital Technologies, Stella Ndabeni-Abrahams, has called on leaders on the continent to create an environment that will allow innovative Small, Medium and Micro Enterprises (SMMEs) and entrepreneurs to flourish and access regional, as well as global opportunities. “This will contribute to local economic development, with local innovation often creating solutions that are relevant for our local circumstances and challenges. Often, such solutions can resonate globally too,” Ndabeni-Abrahams said. Addressing the virtual roundtable discussion with Southern African Development Community (SADC) Ministers on Tuesday, the Minister said local innovation and SMME development can lead to an increase in the continent’s local intellectual property, higher value employment creation, and increased local and regional investment and production, as well as exports. “It is critical to our future as Africa to find ways to unlock the potential of local innovation,” the Minister said.
Kagame makes case for pan-African medicines agency (The New Times)
President Paul Kagame has called on African countries to speed up the process to establish the African Medicines Agency in the course of the year by signing and ratifying the treaty. Kagame was speaking Tuesday, while chairing the virtual 38th Session of the African Union Development Agency-NEPAD Heads of State and Government Orientation Committee on. Kagame is the current Chairperson of the Committee. He said that the body which, is expected to play a regulatory role, will be central to Africa’s ambitions to produce safe and effective pharmaceuticals and vaccines for African citizens. Kagame also called on members to leverage the agency to address member states’ key pain points including resource mobilisation.
Africa tipped to be emerging technology powerhouse (ITWeb)
On Africa Day, the continent has been hailed as an important next growth frontier, with the potential to be an innovation and technology powerhouse. This was the word of Bocar Ba, member of the UN’s Broadband Commission for Sustainable Development and CEO of SAMENA Telecommunications Council, during a virtual high-level roundtable discussion this morning to commemorate this year’s Africa Day. The roundtable, hosted to by the Department of Communications and Digital Technologies, was a celebration of the annual day, which commemorates the founding of the Organisation of African Unity, now known as the African Union. ICT ministers from three SADC countries, and industry experts, joined by minister Stella Ndabeni-Abrahams, gathered to unpack the key strategic challenges and opportunities facing African countries in the ICT sector, and the related impact on the broader economy.
ECA engages media as partners in data production and sharing (UNECA)
The African Centre for Statistics (ACS) at the Economic Commission for Africa (ECA) on Tuesday hosted a webinar on the need to improve relationship between producers of statistics and the media in order to enhance end user experience. “Data generated by producers of official statistics are critical for planning, decision making, monitoring and evaluation of public policies. The media, therefore, is an essential vehicle to ensure that such data is transmitted and shared with all stakeholders,” said ACS Director, Oliver Chinganya.
The East African Community Secretary General, Hon (Dr.) Peter Mathuki has pledged to put institutional strengthening and capacity building across all sectors at the forefront of integrating South Sudan into the East African Community. “I want to assure you of my total commitment in building the capacity of your institutions and that of the people of South Sudan to ensure they are able to participate fully in the regional integration agenda,” said Dr. Mathuki during a Private Sector Dinner organized by the South Sudan Chamber of Commerce in Juba yesterday evening. The Secretary General reaffirmed that the EAC was ready to support the integration of South Sudan, and more importantly to enhance her contribution to regional trade. “We have noted that institutional strengthening and capacity building in broader sense is vital, and we shall also look into the specific critical areas that will create an enabling environment that supports implementation of the Customs Union and Common Market protocols,” said Dr. Mathuki.
Covid pushes Northern Corridor freight cost up 48% (The Star)
Freight charges between Nairobi and Zambia increased to $7,000 (Sh757,750) from $6,000 (Sh 649,500), with transit time increasing to an average 30 days from 10-12 days. The number of containers cleared within the four-day free period declined drastically at the Inland Container Depot, Nairobi (ICDN).Subsequently, about 60 per cent of cargo cleared through the ICDN incurred storage charges amounting to an average of Sh9 million to Sh11 million in storage charges weekly, SCEA data shows. The survey dubbed “Impact of Covid-19 on Transport and Logistics Sector in East Africa” however points out to a decrease in the road transport rate from Dar es Salaam Port to Rwanda (Kigali), from $3000 (Sh324,750 )in January last year to $2700 (Sh 292,275), in September.
The Committee of Ministers responsible for Disaster Risk Management of the Southern African Development Community (SADC) will on 26th May, 2021 hold a virtual meeting to review Disaster Risk Management (DRM) policies, strategies, and legislation. The main objectives of the meeting is to review progress on the implementation of the Decisions of the SADC council of Ministers and consider progress in development of the SADC Disaster Preparedness and Response Mechanism. Amongst others, Ministers will also review progress on the implementation of the SADC Disaster Preparedness and Response Strategy and Fund 2016-2030 as well as the implementation of other programmes and interventions aimed to reduce disaster risks and enhance the resilience of the region’s communities.
Covid: Africa needs new resources for a sustainable recovery (UNECA)
The scale of the resurgence of the pandemic on the sub-continent could set off another round of growth contractions across the world. Food prices are set to soar across Africa as 11% of food imports are from India and Brazil – another COVID disrupted food producer. Critically, 25% of Africa’s rice comes from India. But even more devastating is the freeze in vaccine availability. The African rebound, like the global rebound, is linked to effective vaccinations. These kinds of black swans are what we must be focus on today to protect growth, lives and livelihoods. Africa is still in response and emergency mode. Africa has responded to the crisis through innovation.
EAC technical team meet in Arusha over EPA deal (Dailynews)
East African Community sectoral council on trade, industry and investment is meeting in Arusha to deliberate on implementing the Economic Partnership Agreement (EPA) between the European Union (EU) and the EAC, the deal which remain unsigned since 2016. EPA has been postponed for several reason including some member state not having ratified the document. But a media communique released by the Foreign Affairs Ministry, detailed that the experts were meeting to discuss among other things the EPA deal. They are meeting to discuss implementation of previous decisions, a report from the EAC council of Finance Ministers, recommendations, report from the finance ministers, and reports from special committees on customs and trade sectors, the communique said. “Other issues being discussed are the implementation of the decision on the EAC-EU EPA, East African standards committee report, competition issues, investment industry committee report and other businesses,” it read in parts.
Joe Biden Must Prioritize Digital Transformation in Africa (The National Interest)
The Biden administration has a full foreign policy dance card, from rebuilding alliances to reasserting U.S. leadership in multilateral institutions. Engaging actively with African nations must be an important pillar of this agenda, and it was encouraging to see President Biden address the February African Union Summit. As we begin to emerge from the pandemic and countries prioritize rebuilding their economies, leveraging the potential of digital technologies will be critical. Just as Africa needs to share in the distribution of life-saving vaccines, the continent needs a place at the digital table.
African entrepreneurs have already risen to the challenge, creating innovative digital solutions to pandemic-induced challenges. Their efforts could be super-charged by investments in an enabling environment and digital infrastructure that deliver lower-cost data and broader access. Over twenty-five African governments set up e-learning tools for students affected by school closures and, according to the WHO, Africa accounts for almost 13 percent of all new or modified technology created to mitigate the coronavirus.
But it’s not enough. While there are hotspots of digital brilliance across the continent, Africa needs digital transformation that transcends all sectors. That transformation will require a sound policy framework, as well as both hard and soft infrastructure as outlined in studies like Google’s Digital Sprinters.
Every African country set to participate in Expo 2020 Dubai, say organisers (Gulf News)
Opening on October 1, the world’s greatest show will showcase the African continent’s vast potential, including its innovations, business opportunities, art, natural wonders, and cultural heritage. Organisers said this is the “first time in the 170-year history of World Expos that every African nation will participate with its own pavilion. Africa’s participation at Expo 2020 Dubai is a testament to the long-standing friendship between the UAE and Africa – a relationship that is based on mutual respect and a shared vision”. Reem Al Hashimy, UAE Minister of State for International Cooperation and Director General, Expo 2020 Dubai, said: “Africa is the future – not just for Africans, but for the entire world. The youngest, fastest-growing continent on the planet is brimming with promise, and the global community has a shared responsibility to ensure it grasps that opportunity for the good of us all.”
Dr Levi Uche Madueke, Commissioner General of the African Union at Expo 2020 Dubai, said: “With our rich natural resources, ingenuity and youthful population, there are many potential areas for growth. Africa has a lot to offer. It is time for us to reach out to the world, for the world to understand us and see how they can collaborate with us.”
Africa’s energy transition dilemma (The Africa Report)
Facing pressure from the public and Western regulators, as well as from shareholders and financial partners, oil industry majors, especially those based in Europe – chiefly Shell, BP, Total and Eni – have initiated an unprecedented transformation by voluntarily reducing their crude oil activities in favour of “greener” forms of energy. This may be good news for environmental activists, but not so for Africa’s oil-producing countries that benefit from the tax revenues and jobs the industry brings. In the global race to reduce carbon emissions, Africa is a bystander rather than an active participant. In addition, more than half of its oil production is for export.
Global economy
ICC Trade Now to connect SMEs to innovative trade finance solutions (ICC)
Through tailored partnerships with cutting edge solution providers, ICC Trade Now will scale up trade finance solutions, empower small- and medium-sized enterprises (SMEs), and provide financiers with new investment opportunities. International trade is a key driver of growth and innovation for SMEs worldwide – yet over 45% of SMEs see their requests for trade finance rejected and often struggle to find alternative sources of funding. Without adequate access to capital, SMEs are effectively cut off from international markets and unable to grow their operations to meet international demand. Coupled with the effects of the COVID-19 pandemic, SMEs desperately need short-term liquidity and access to international trade to survive the ongoing economic crisis and thrive once the worst effects of the crisis have subsided. Building on extensive market research, ICC is taking bold action to ensure that SMEs worldwide have the right tools and access to capital to trade now. ICC Trade Now will connect SMEs to innovative service providers who can help finance their trade operations and seize new business opportunities globally
GDP Growth - First quarter of 2021 (OECD)
Following the unprecedented falls and subsequent rebounds in 2020, growth of real gross domestic product (GDP) in the OECD area slowed to 0.3% in the first quarter of 2021, down from 1.0% in the previous quarter, according to provisional estimates. This slowdown is partly related to the strengthening of COVID-19 containment measures in some countries in early 2021. For the Major Seven economies as a whole, GDP growth slowed to 0.4% in the first quarter of 2021 (from 0.9% in the previous quarter), with quite divergent patterns across countries.
IFC highlights challenges for domestic food safety in Africa (Food Safety News)
Attendees of IFC’s first virtual food safety event have heard how Africa is tackling the issue of safe food domestically. The 9th International Finance Corporation (IFC) International Food Safety Forum covered domestic and trade issues, as well as food safety culture over two days in May and is still available to watch. IFC is part of the World Bank Group. In her opening comments, Jumoke Jagun-Dokunmu, IFC’s regional director for Eastern Africa, said discussions will cover the potential for increased investment that can unlock business opportunities while increasing food safety for people across the continent. “We believe that improved food safety is helping clients meet regional and export market requirements, attract investment, realize cost savings and strengthen their brands. So far, IFC’s food safety advisory program has helped over 200 clients attract $607 million in investment and generate $709 million in new sales,” she said.
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National
New forum to detect, prevent corruption in infrastructure sector (SAnews)
A newly established forum to monitor infrastructure projects more effectively and put systems in place to detect and prevent corruption has been launched in Cape Town. Public Works and Infrastructure (DPWI) Minister, Patricia de Lille, and Head of the Special Investigating Unit (SIU), Advocate Andy Mothibi, launched the Infrastructure Built Anti-Corruption Forum (IBACF) on Monday, an initiative by the Anti-Corruption Task Team, government and civil society, together with the built environment sector. De Lille said the initiative comes at a time when South Africa has embarked on the implementation of the Infrastructure Investment Plan, approved by Cabinet in May 2020. The plan forms an integral part of the country’s Economic Reconstruction and Recovery Plan (ERRP). “Cabinet has also approved the establishment of Infrastructure South Africa (ISA) as the administrative arm responsible for monitoring the implementation of the Infrastructure Investment Plan which is made up of projects from all three spheres of government, state-owned enterprises and the private sector.
Sustainable aviation fuels could be major market for South African sugar cane sector (Engineering News)
A study has found that the production of sustainable aviation fuel (SAF) using ethanol derived from sugarcane is a viable major business opportunity for the South African sugarcane sector. The study was jointly undertaken by the South African Canegrowers Association (SA Canegrowers) and the Roundtable on Sustainable Biomaterials (RSB). The report was presented to the Value Chain Diversification Task Team, which includes representatives of the canegrowers as well as other stakeholders from industry and government, earlier this month. The Task Team was set up under the Sugar Industry Value Chain Masterplan, which in turn was created to draw up a medium- to long-term diversification strategy for the sugarcane value chain.
Ensuring importers comply with Consumer Protection Act (SAnews)
The National Consumer Commission (NCC), working with the South African Revenue Service (SARS) Customs Special Operations continue to interject imports that are in contravention of the Consumer Protection Act (CPA). From July 2020 to 31 March 2021, the commission issued 88 compliance notices to the value of about R18 million. “This was after the commission inspected consignments of goods from different countries that did not meet the labelling requirements of imports as provided for in the CPA. The goods in question include footwear, leather, clothing and textiles,” the commission said on Monday. “We will not tolerate non-compliance by different importers. We will continue with our efforts to ensure that South Africa does not become a dumping site for non-compliant goods,” the NCC’s acting Commissioner Joseph Selolo said.
SMMEs in South Africa in distress (Engineering News)
Small, medium-sized and microenterprises (SMMEs) employing one to ten people represent 72% of the businesses that have approached nonprofit the Covid-19 Business Rescue Initiative (Cobra) for business rescue support, advice and assistance since March 2020. The sectors bearing the brunt of this impact are retail, construction, manufacturing, tourism and hospitality.
Department of Transport identifies priority corridors for PRASA service recovery (Engineering News)
The Department of Transport has identified priority corridors across provinces for a service recovery by the Passenger Rail Agency of South Africa (PRASA) in the financial year, Minister Fikile Mbalula said on May 24. PRASA will, over the medium term, be allocated 27.2% or about R57-billion of the department’s budget.
Local traders bemoan closed borders (The Namibian)
The recent announcement by the governor of Angola’s Cunene province that Angolan borders are to remain closed has irked locals who seek business opportunities in that country. Gerdina Didalelwa, who last week visited Namibia and met with the governors of the Ohangwena and Omusati regions, said the borders would remain closed due to a rise in Covid-19 cases and deaths in Angola. Didalelwa said borders would remain closed indefinitely or “until the Covid situation normalises”. Immigration control officer for the Oshikango border Joseph Ndashe, however, suggested that the borders be opened to avoid illegal crossing, which has become prevalent since the borders’ closure early last year.
Noa: Corruption could develop into chronic economic disease (New Era)
Consultations are underway to develop and draft the second National Anti-Corruption Strategy and Action Plan (NACSAP) for the 2021 to 2025 term. The second NACSAP will replace the first plan for 2016-2019, which ended in March 2020. The Anti-Corruption Commission (ACC) is therefore carrying out consultative meetings and workshops around the country for input from both the private and public sectors to draft the plan. The strategy is being developed in line with Article 5 of the United Nations’ Convention Against Corruption (UNCAC), which calls for states to develop and implement effective, coordinated anti-corruption policies with societal participation. The draft is expected to be tabled in parliament during August this year.
BURS exceeds 2020 target, rakes in P40bn (Mmegi Online)
The Botswana Unified Revenue Service (BURS) collected P40 billion in various taxes last year, exceeding the target set by the government of P37 billion despite the effects of the COVID-19 pandemic, BusinessWeek has learnt. Initially, the government had given the BURS a target of P43 billion, but this was later revised due to the effects of the COVID-19, which paralysed the economy. Mineral taxes are forecast to reach P5.6 billion from P1.8 billion in the previous year, while customs and excise receipts are expected to decline to P13.5 billion from P16.2 billion. Customs and excise revenues are received through a revenue-sharing agreement under the Southern African Customs Union (SACU).
How COVID-19 affected informal cross-border trade between Uganda and DRC (The Conversation)
Informal cross-border trade, which includes smuggling, is hugely important for survival in, around and beyond border regions. Across the border between Uganda and Democratic Republic of Congo informal trade pays the bills and puts food on the table; it stocks the provision shops and pharmacies; and it keep youths out of trouble, communities on the move, and people employed. This trade is carried out both through unofficial crossings (where goods are smuggled across the border) and over official border points – where goods are not declared. The COVID-19 pandemic has disrupted cross-border mobility worldwide and its policy consequences are therefore particularly visible around borders. But, what has been the impact of the pandemic on informal cross-border trade along the Uganda-DRC border?
Why Mauritius is key to unlocking Africa’s blue economy (How We Made It In Africa)
Various propositions have been recommended to tap into the ocean economy for more than a decade with a view to unleash the next phase of Mauritius’ economic development. Indeed, one may say that the blue economy in Mauritius is not fully utilised yet, therefore there is no reason to look for new shores. Undoubtedly, the country should continue to tap into its blue economic resources – after all, Mauritius is truly blessed on this front with a vast ocean territory comprising an Exclusive Economic Zone of 2.3 million square kilometres and a continental shelf of 396,000 square kilometres co-managed with the Republic of Seychelles. However, it is also an opportune time for the country to consider regional scaling through transferring its knowledge and experience of the sector while leveraging on partnerships for mutually beneficial expansion programmes across Africa, thereby leading the way in weaving a strong and sustainable growth story on the back of the blue economy.
Tanzania joins One Network Area for lower cross-border call tariffs (The East African)
After years of dithering, Tanzania has finally joined the East African Community One Network Area, which promises cheaper calls across the bloc due to harmonised calling rates. This means that charges on roaming voice calls in Kenya, Rwanda, South Sudan, Uganda and Tanzania will be eliminated. The benefits include easier and cheaper communication that will promote the ease of doing business in the region. Pressure on Tanzania to join the network peaked at the June 2019 meeting of the EAC Transport, Communications and Meteorology Sector Council held in Kampala, where Dar es Salaam was given a deadline of March 31 to complete its analysis on the implementation of One Network Area. But it has emerged that Tanzania made the decision to join the ONA late last year, and Foreign Affairs Permanent Secretary Stephen Mbundi wrote to the EAC Secretariat expressing interest in the deal.
Fastest growing sectors in Nigeria as of Q1 2021 (Nairametrics)
According to data from the National Bureau of Statistics, Nigeria’s real GDP growth rate in the first quarter of 2021 was 0.51%. This comes after a 0.11% GDP growth rate in the fourth quarter of 2020, which effectively pulled Nigeria out of recession. Hence, it would be prudent to access the fastest growing sectors in the Nigerian economy. Agriculture increased by 2.28% compared to 3.42% in the previous year. Manufacturing has recovered from the recession, rising at a rate of 3.4%. Trade contracted more slowly. Construction increased by 1.42% in the fourth quarter of 2020, compared to 1.21% in the previous quarter. According to Nairametrics, Nigeria could have achieved a GDP growth rate of at least 1.7% if the Agriculture and Information and Communication sectors had maintained their growth paths into the fourth quarter of 2020. The performance of the Communications industry was the cause for the weak GDP growth in the first quarter of the year.
Trade dispute: Expectations of Nigerians ahead of government dialogue with Ghana (GhanaWeb)
The Federal government of Nigeria has instructed a ministerial delegation to visit Ghana to resolve the lingering conflict between the Nigerian traders in Ghana and the local authorities. The delegation which is said to arrive in Ghana on May 31, 2021, will be led by the Minister of Trade, Niyi Adebayo. However, speaking to some Nigerians in Ghana on their expectations ahead of the dialogue, some were of the view that the meeting with the authorities is a step in the right direction and would possibly help resolve the conflicts. Others believed the meeting would not change anything as these talks have been held on several occasions but no achievements.
Improving Connectivity in Togo Through Digital Infrastructure (World Bank)
The World Bank has approved additional financing of $11 million from the International Development Association (IDA) to improve connectivity in Togo and develop the country’s digital economy. “The COVID-19 crisis has shown that there is a heavy reliance on digital technology and a need for Togo to strengthen its digital infrastructure and enhance the resilience of its economy and services,” says Hawa Cissé Wagué, World Bank Resident Representative for Togo. “The development of the infrastructure provided for under this project will result in lower international connectivity costs, as well as support for Togo’s digital transformation agenda.”
Africa
Africa Day 2021 amid new challenges on the continent (Africanews)
On Tuesday 25 May, African governments would commemorate what is known as “Africa Day”. The day (formerly known as African Freedom Day and African Liberation Day) is the annual commemoration of the founding of the Organisation of African Unity (OAU) on 5 May 1963. This year’s theme of Africa Day is Arts, Culture And Heritage: Levers for Building the Africa We Want. The celebration however comes on a backheel of a number of issues.- the Covid-19 pandemic having piled up pressure on the African economy.
On the Covid-19 pandemic, African government leaders would want to increase vaccination efforts on the continent after what has appeared strongly to be vaccine apathy across several African countries. But defying the odds by managing to control the pandemic that has ravaged other parts of the world is in itself something many analysts praise the continent for, a continent least impacted globally by the pandemic. And that may be worth celebrating at the very least.
This week in civil society: Africa Day brings activists together for global talks (Daily Maverick)
This week civil society will mark Africa Day with trans-continental events to celebrate the continent’s triumphs and discuss its collective obstacles. And, activists continue to make international connections to push for a fast and fairer global vaccine roll-out. On Tuesday, 25 May, Good Governance Africa will host a webinar with a panel of prominent speakers to discuss and depart from the report on cartel power dynamics in Zimbabwe. This report was published in Maverick Citizen and editor Mark Heywood will present the key findings during the webinar.
Climate Change Threatens Africa’s Cultural Heritage (Union of Concerned Scientists)
Africa Day celebrates independence, freedom from colonialism, and looking forwards to a peaceful and thriving future in the 55 African Union nations. This year’s theme is ”Arts, Culture and Heritage” and UCS is helping to raise up climate change in that context. Climate change is probably the fastest-growing threat to African cultural heritage, much of which was left in a parlous position because of the legacies and structural inequalities of past colonial rule. The Climate Vulnerability Africa (CVI) Project, is being launched to address the gap that exists in understanding climate impacts on cultural heritage in Africa and to help build capacity amongst the continent’s heritage professionals.
Enhancing effective trade: The role of domestic, international trade finance solutions (i) (GhanaWeb)
Although available data suggest that trade finance accounts for 3% of global trade, worth some $3 trillion annually, the subject of trade finance within the global financial ecosystem remains inexplicable to the financially uninitiated. Trade finance basically helps deal with some of the challenges with trading; both domestic and international. Trade finance facilitates the exchange of goods and/or services for money. For instance, when two individuals, a buyer and a seller, want to transact business, they would want to agree on the terms and conditions under which the transaction would be done. These such transactions are sometimes surrounded with mistrust and other uncertainties thereby highlighting the need for instruments which are appropriate for specific products/occasions to help deal with all those uncertainties.
COMESA Local Content Policy Framework on Industrialization set for Adoption as Experts Meet
The Implementation Strategy of the COMESA Local Content Policy Framework on Industrialization is set for adoption this week, 24 – 27 May 2021 as the technical and ministerial committees on industry conduct their 4th meetings. The experts begun meeting on Monday, 24 May 2021 with the key agenda being the adoption of the draft harmonized COMESA Framework of Managing Special Economic Zones and Industrial Parks. It will then be presented before the ministerial meeting on 27 May 2021. The decision to develop an Implementation Strategy of the COMESA Local Content Policy Framework was issued by the Ministers in 2019. Its objective is to ensure that a high proportion of project inputs are sourced from the host country without compromising the economics of the project or sector being leveraged.
Public-private data project a COVID game-changer in West and East Africa (Africanews)
A cross-border data collaboration project involving 23 African countries above the Equator is proving to be a game-changer for the tracking and management of COVID-19 and other epidemic-prone diseases in the region – and is launching the first ever daily public COVID dashboard for countries in the Horn of Africa next month. The USAID-funded Regional Action Through Data (RAD) programme is tackling COVID-19 in West and East Africa through two initiatives, respectively involving the sharing of real-time regional disease data online and tech-enabled cross-border immunisations. These initiatives are enabling governments to better collaborate to protect their roving pastoral populations from epidemics and to overcome the data issues of the Ebola era.
This report was commissioned at by the African Natural Resources Centre (ANRC) of the African Development Bank based on discussions with regional member countries at a regional workshop organized by the African Forest Forum (AFF) in Accra, Ghana in 2017, and in Yaounde, Cameroon in 2018, to generating data to fill gaps in knowledge on intra-African trade in wood products. This was understood as an important contribution to guide policy makers in formulating policies and strategies to encourage such trade by the forest-endowed with the less forest-endowed countries.
AfDB’s new water policy prioritises sustainable, green growth | (ESI Africa)
The African Development Bank Group’s Board of Directors have approved a new policy on water which prioritises water security and the transformation of water assets to foster sustainable, green and inclusive economic growth in regional member countries. Since 2010, the AfDB has invested an estimated $6.2billion in water supply and sanitation services delivery. The COVID-19 pandemic though has exposed vulnerabilities caused by under-investment in water, sanitation and hygiene services (WASH) across the African continent. Despite these challenges the Bank’s active water sector portfolio stood at $4.3billion, comprises of nearly one hundred national projects implemented in 40 countries, and six multinational projects.
Global economy
Why trade must be part of the solution to biodiversity loss (UNCTAD)
Globally, around 1 million plant and animal species are now threatened with extinction, and some estimates link global trade to nearly one-third of the species under threat. Coffee, chocolate and beef are just a few examples of products consumed daily across the globe that are linked to biodiversity loss. Over the decades, trade’s share of GDP has steadily increased – from 36% in 1979 to 60% in 2020. Today, most of what we buy and consume comes from another country, meaning our biodiversity footprint may be larger abroad than at home. “We must be mindful of the link between biodiversity and trade when examining the causes of biodiversity loss and discussing the possible solutions,” said Isabelle Durant, UNCTAD’s acting secretary-general. “For trade to play a leading role in the battle against biodiversity loss, it must be sustainable throughout the value chain.”
SDGs: Greater urgency needed to meet environmental goals, improved data likely key (UN News)
Despite making progress in areas such as clean water, sanitation, clean energy and forest management, the world is still living unsustainably and biodiversity loss and climate change have continued to deteriorate. “We have still not embraced the rate of change necessary to come in line with the 2030 Agenda,” said Elizabeth Maruma Mrema, Executive Secretary of the Convention on Biological Diversity, which produced the study together with the UN Environment Programme (UNEP). “The report makes it clear that we are falling short, and, in some cases, actually receding. The world cannot sustain our rate of use and abuse forever, and it is imperative that we accept the changes in lifestyles and livelihoods necessary to achieve the 2030 goals.”
New approaches made possible through improved access and Internet connectivity can raise the standard of living for approximately 3.4 billion people living in rural areas, without them having to migrate to cities, according to the newly released 2021 World Social Report “Reconsidering Rural Development.” The COVID-19 pandemic, together with already persistent high levels of poverty and inequalities, are threatening to stall progress for the world’s rural populations. But the pandemic has also proven that new technologies can enable rural populations to flourish, ending the rural-urban divide. UN Secretary-General António Guterres said the new technologies opened up new opportunities for rural development. “Opportunities exist to build a greener, more inclusive and resilient future. The experience of the pandemic has shown, for example, that where high-quality Internet connectivity is coupled with flexible working arrangements, many jobs that were traditionally considered to be urban can be performed in rural areas too.”
IATA Welcomes G20 Push to Restart Tourism
The International Air Transport Association (IATA) welcomed the agreement by the G20 Tourism Ministers to support the safe restoration of mobility by following the G20 Rome Guidelines for the Future of Tourism. IATA urged G20 governments to quickly follow up their endorsement of the guidelines with actions, particularly the five-point agenda to safely restore mobility: Sharing information among industry and governments to inform policies and decisions to ensure safe mobility. Agreeing common international approaches to COVID-19 testing, vaccination, certification and information. Promoting digital traveler identity, biometrics and contactless transactions for safe and seamless travel. Providing accessible, consistent, clear and updated information to travelers to encourage and facilitate travel planning and journeys. Maintaining and improving the connectivity, safety and sustainability of transport systems.
ITU and UNDP join forces to address urgent unmet capacity building needs (UNDP)
The rise of digital technologies and ways of working offers extraordinary new opportunities to further global sustainable development and achieving the Sustainable Development Goals, from increasing economic resilience to mitigating the damage of COVID-19 and delivering more effective public services. Yet not everyone is equally able to take advantage of these opportunities, particularly as the rapid pace of digital change places further demands on resource-constrained governments and societies. Bridging the world’s digital divide is increasingly urgent, as those who are left out of today’s digital transformation are in danger of falling further behind. This means ensuring that digital services are available everywhere, as well as affordable and accessible to all. To address this key issue, the International Telecommunication Union (ITU) and the United Nations Development Programme (UNDP) have launched a Joint Facility for Digital Capacity Development to support those not currently served by existing digital capacity development resources or channels.
In his opening remarks to the World Health Assembly, World Health Organisation Director-General Ghebreyesus called on nations to share doses through COVAX and underlined the need to scale-up manufacturing of COVID-19 vaccines. He said the “bottom line” is that “we need a lot more doses, we need them fast, and we must leave no stone unturned to get them.” While noting that several manufacturers have said they have capacity to produce vaccines if the originator companies are willing to share licenses, technology and know-how, he voiced concern that he finds it “difficult to understand why this has not happened yet.
Developing Countries Desperately Need COVID-19 Financing (Inter Press Service)
After over a year, “Poor countries are facing severe setbacks on their development paths, encumbered by ballooning debts, high risks of default and limited ability to inject desperately needed liquidity”, observed participants at a recent UN Forum. International Monetary Fund (IMF) chief economist, Gita Gopinath, estimates US$9 trillion in economic benefits from adequately accelerating affordable mass vaccination, testing, tracing and treatment at a cost of US$50bn. Overall global projections obscure disparities among and within countries. With vaccine apartheid and developing countries’ constraints, uneven pandemic containment and recovery have been worsening prior inequalities, further setting back poor countries and people.
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Trade policy seeks to build SA’s industrial capacity (IOL)
The Department of Trade, Industry and Competition (dtic) has released a Trade Policy Statement, which seeks to build industrial capacity and drive manufacturing exports in the wake of the Covid-19 pandemic. Dtic Minister Ebrahim Patel, on Friday, said the release of the statement was in the context of the adoption of a policy of promoting industrialisation and localisation, recently undertaken by the dtic. Access the files here.
Interesting times for South African citrus (FreshPlaza)
When considering the current citrus season, a number of uncertainties appear: why is the Middle Eastern lemon market so quiet? How is South East Asia, and China specifically, going to react to the increased volume of Star Ruby grapefruit sent there? And on the topic of China: will hostility between that country and Australia translate into greater opportunity for South African oranges and soft citrus?
“There are a lot of external factors playing a huge role, of which the biggest is still Covid,” says Gary Britz, managing director of ELE Trading. South African exporters are experiencing a double whammy, he says: firstly the increase in Dollar-based freight rates, and now the strength of the Rand which trades at just above R14 to one US Dollar – a R4 difference to last year this time when it was R18 to the Dollar. (Shipping disruptions have also caused a surge in paper pulp prices, pushing up packaging costs.)
Inefficiencies at Port of Cape Town a concern (IOL)
Continued inefficiencies at the Port of Cape Town could hurt agricultural exports and the economy of the Western Cape in general, the province’s member of the executive council for agriculture Ivan Meyer said on Friday. In a statement, Meyer said the Western Cape was responsible for 50 percent of the country’s agricultural exports and the port was a vital cog in the wheel of the provincial and national economy. “Any inefficiencies in this port will therefore harm the Western Cape’s economy and cost jobs at a time when we desperately need to be creating more of them,” he warned. “On the other hand, if we get this right, many people will benefit. In fact, according to our research, growing our exports by five percent over five years will create approximately 19,000 new jobs in the Western Cape.”
Critical structural reforms taking too long – BLSA (Engineering News)
The structural reform required to transform South Africa’s economy has “frustratingly” progressed very little, notwithstanding the establishment of Operation Vulindlela, Business Leadership South Africa (BLSA) CEO Busi Mavuso asserts. She says organised business has consistently argued that South Africa’s economy needs structural reforms – changing the fundamental capacity of the economy through policy – if it is to grow. Among the changes needed are spectrum migration to open up broadband; the restructuring of the energy supply industry to ensure reliable, low-cost power; investment in infrastructure to support the economy; and various policy changes to improve access to skills, including skills visas.
Botswana dodges bullet as India suspends vaccine exports (Mmegi Online)
The country’s COVID-19 vaccination programme is expected to remain on track despite the Serum Institute of India (SII) this week’s announcing it will stop exporting doses to Africa and other countries for the next seven months as the virus ravages its home country. As the news reverberated around the world, it emerged that Botswana is only one of five African countries insulated from the freeze in production. Botswana, South Africa, Namibia, Mauritius and Libya are self-financing their participation in the COVAX facility and thus will not be receiving their supplies from India, but from other AstraZeneca producers in Europe and South Korea.
Kenya’s trade deficit widens 28pc on imports of machinery, goods (Business Daily)
Kenya’s trade deficit widened by 28 percent in the quarter ended March, mainly on increased expenditure on manufactured goods and machinery imports. Fresh data by the Central Bank of Kenya (CBK) shows that the country’s trade deficit – the difference between exports and imports – grew to Sh317.49 billion in the period under review from Sh247.78 billion in the first quarter last year. A trade deficit occurs when a country’s imports exceed its exports during a given time period. The value of imports grew 19 percent to Sh507.54 billion in the quarter ended March, outgrowing the value of Kenya’s exports that rose 6.3 percent to Sh190.05 billion in the period. The slow growth in the value of Kenya’s exports came at a time local traders are still reeling from the restrictions imposed to curb spread of the Coronavirus disease that disrupted movement of agricultural products.
New Kenyan Port Aims to Be East Africa’s Biggest (Bloomberg)
Two Maersk vessels made maiden calls at Kenya’s new Indian Ocean port last week as the country launched the first of a planned 32 berths at the harbor it hopes will become the market leader on this stretch of coast. The Lamu facility will cost an estimated $5 billion and supplement the clogged Mombasa port, which lies 340 kilometers (313 miles) to the south in Kenya’s second-largest city. The existing harbor is the region’s biggest, serving hinterland countries including Uganda, Rwanda and eastern Democratic Republic of Congo.
Across Africa, ports suffer from aging equipment and other inefficiencies that cause delays and lead to higher handling costs than elsewhere in the world, according to the African Development Bank. With Lamu, Kenya is planning to be the go-to port for landlocked Ethiopia and South Sudan. But luring new business there could prove challenging.
Tanzania: Laws under review in move to boost trade, investment (The Citizen)
The government is engaging stakeholders in the review of 22 laws under the Ministry of Industry and Trade with the view to improving Tanzania’s business environment. The review will also allow a smooth implementation of the blueprint for regulatory reforms to improve the business environment, according to Industry and Trade minister Kitila Mkumbo, who tabled his budget for the 2021/22 financial year yesterday. The proposed Trade Remedies Act of 2021 will also control importation of products, market distortion by subsidized products which get to the local market at lower prices. Prof Mkumbo said the proposed law was already submitted to responsible government organs for further action.
Zimbabwe bans maize imports as it prepares for bumper harvest (The East African)
Zimbabwe has suspended maize imports, citing a big harvest of the staple crop this year after years of food shortages. The southern African country last year spent $300 million on maize imports and donors were feeding more than half of the population due to successive droughts. According to the government’s latest crop and livestock assessment report, the country will harvest 2.7 million tonnes of maize during the 2020/21 summer cropping season, which is three times last year’s output and is more than the country’s annual consumption, and the highest yield in 20 years. It would be the first time the country will have a maize surplus after almost two decades of food shortages following a chaotic land reform programme at the turn of the millennium.
Report blames State for sugar sector collapse (Nation)
The government is entirely responsible for problems facing the sugar industry, according to the Kenya Association of Manufacturer’s (KAM) Sugar Sub-Sector report. The report lays blame on the government and puts the responsibility of reviving the sector on it. In its 2021-2025 Strategic Plan launched last week, KAM’s Sugar Sub-Sector team stated that to get the industry back to its feet, the government would have to ensure there was an effective regulatory framework and oversight mechanism for coordinating imports and exports. It called for stringent enforcement mechanisms to save the industry from sugar coming from Comesa and East African Community regions, as well as other parts of the world, through charging the required duty.
Ministry eyes trade boom with 2021/22 budget (Dailynews)
The Ministry of Trade and Industries has out- lined its robust plans for 2021/2022 financial year, whose main focus is bolstering trade, investment and boosting the industrial sector. Tabling his budget in the August House yesterday, the Minister for Trade and Industries, Professor Kitila Mkumbo, requested lawmakers to endorse 105.67bn/- for both recurrent and development expenditures. According to him, on trade, his ministry plans in the 2021/2022 budget to among other things, intensify bilateral, regional and multilateral business dialogue so as to widen markets and investment in the country. “We will also intensify dialogue on Continental Free Trade Area (CFTA) as well as increasing business talks with EAC, SADC and COMESA, among others,” he said.
FG Urged to Develop Industrial Policy for Manufacturing Sector (THISDAYLIVE)
The 2021 Macroeconomic Outlook report by the Nigerian Economic Summit Group (NESG) has urged the federal government to develop industrial policy and sectoral plans for priority areas as well as address the challenge of insecurity in the country. The report disclosed that the manufacturing sector is one of the six sectors that have the potential to create jobs and reduce poverty. The report also noted that for the sector to create jobs and reduce poverty, private investments would play a major role. It maintained that Nigeria’s reliance on imports, its large market and the coming into effect of the African Continental Free Trade Area (AfCFTA) agreement present a huge opportunity for investment in the manufacturing sector, especially in agro-processing and light manufacturing. Also, the report noted that Nigeria’s manufacturing sector faced several challenges even before the outbreak of the COVID-19 Pandemic.
Nigeria’s trade sector contracts by 2.43% in Q1 2021 (Nairametrics)
Nigeria’s trade sector contracted by 2.43% in real terms in the first quarter of 2021. This is according to the recently published GDP report by the National Bureau of Statistics (NBS).Its recorded growth rate represents 0.39% points higher than the 2.82% contraction recorded in the corresponding period of 2020 and 0.77% points higher than -3.2% recorded in the previous quarter (Q4 2020).Quarter-on-quarter growth stood at -13.10%, which is higher than the quarter-on-quarter growth recorded in the first quarter of 2020 at -13.79%.
IMF Staff Completes Mission to the Central African Republic
The deterioration of the security situation at the beginning of the year and the prolonged closure of the trade corridor between Bangui and Cameroon have had a substantial social and economic impact. The cut-off of the country’s main source of supply led to a sharp rise in consumer prices and affected production owing to a lack of inputs. While the reopening of the corridor has allowed trade flows to resume, they remain lower than in the past. Owing mainly to lower imports, the current account deficit would decline to about 6½ percent of GDP in 2021 from 8½ percent of GDP in 2020.
Africa
Africa’s economic recovery is key to global growth (Independent Online)
We cannot enjoy a full global economic recovery if the main engine of future economic growth – Africa – is not recovering. With this in mind, French President Emmanuel Macron convened a Summit on Financing African Economies in Paris on Tuesday. Ramaphosa made strong remarks at the summit on Africa’s vision for economic recovery, and in this way shaped the agenda. The summit was a culmination of efforts begun by Ramaphosa when he was Chair of the African Union last year, when he appointed Special Economic Envoys to interface with the international financial institutions on the economic challenges facing the African continent and to mobilise support. As AU Chair, Ramaphosa had tried to secure a strong and inclusive economic recovery in Africa in the wake of the Covid-19 pandemic.
Trade blues stalk Southern Africa (The Southern Times)
Restrictions on movements instituted by most countries as a COVID-19 control measure have taken their toll on informal cross-border trade in the SADC region, a United Nations agency has said. On the formal trade front, countries in the region variably recorded surpluses and deficits in the first quarter of the year. Most SADC member states are heavily reliant on exports of raw and/or semi-processed metals, minerals and agricultural produce. At the same time, they are big importers of finished goods. “Informal cross border trade, which accounts for up to 40 percent of total intra-SADC trade with an estimated value of US$17,6 billion, has been adversely affected by the COVID-19 pandemic because of border closures and travel restrictions throughout the region. These measures have had a negative impact on the livelihoods of informal cross border traders,” the IOM said.
The Economic Commission for Africa (ECA) will on 28 May launch a report of a survey it carried out of the perception of East Africa’s private sector on the African Continental Free Trade Area (AfCFTA). Conducted in collaboration with the East African Community (EAC) and the East African Business Council (EABC), the survey was partly to inform the EAC regional AfCFTA strategy and to document how the private sector can maximize the benefits of the continental agreement. The survey had the objective of consulting the EAC private sector to get its perception on the level of awareness, opportunities, constraints and critical reforms needed to maximize the benefits of the AfCFTA to ensure its inclusivity in the EAC AfCFTA implementation strategy, action plan and road map.
Stephen Karingi, ECA’s Director of the Regional Integration and Trade Division, said: “Without the prospect of real benefits, the private sector will not invest in new cross-border commercial ventures, hence their importance in being at the centre, driving its implementation agenda.”
Intergovernmental organisations and private sector actors from West Africa will discuss the implementation of the African Continental Free Trade Area (AfCFTA) in the sub-region. This will take place during a virtual regional forum for West Africa co-organised by the Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (ECA), the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU) on May 26 and 27. This two-day meeting is part of the implementation of the AfCFTA, which entered its operationalisation phase on January 1, 2021, thus laying the foundations for a process of strengthening intra-African trade. It will be held in a context where West African economies are marked by a strong predominance of small and medium-sized companies operating in the informal sector and are not very productive, whose constraints have been exacerbated by the Covid 19 pandemic and where the role of intergovernmental organisations and the private sector in the effective implementation of the AfCFTA is essential.
Accelerating AfCFTA implementation key for Africa’s recovery post COVID-19 (UNECA)
The United Nations Economic Commission for Africa (ECA) says it will continue to work closely with its member States, the African Union Commission and other key stakeholders towards the effective implementation of the African Continental Free Trade Area (AfCFTA) that is expected to deepen and expand intra-African trade and help the continent build forward better in the aftermath of the COVID-19 pandemic. Responding to Canadian Prime Minister, Justin Trudeau’s statement announcing funding of $15.2 million to the ECA’s African Trade Policy Centre (ATPC), Executive Secretary, Vera Songwe, said the AfCFTA provided an excellent policy framework for Africa to build inclusive and resilient economies post-COVID-19. To make this happen, she said, the ECA will continue to work on innovative ways to help address Africa’s development challenges by assisting countries and regions to domesticate the AfCFTA within their own realities to make it implementable.
Leveraging on cross-border infrastructure investments for growth (Mmegi Online)
A landlocked country like Botswana strives to use its geographic location as a transport and logistics hub to leverage growing regional trade and expand its portfolio as a land-linked pathway to the southern African market. This will require massive investments in road, air, and rail transport infrastructure to improve regional connectivity. It will also require innovative policymaking to prepare the domestic market for the coming opportunities. What is clear is that Africa does not trade enough, especially with itself and this is attributed to the lack of sufficient infrastructure. The African Development Bank (AfDB) has previously estimated that the infrastructure deficit in Africa amounts to between $130 and $170 billion a year; with an estimated financing gap of $68 to $108 billion. These deficits are and have been costly to the economy of the continent and lead to stunted economic growth.
EABC calls for increment in the Covid-19 stimulus packages to the agriculture sector (Capital Business)
The East African Business Council (EABC) is calling for an increment in the Covid-19 stimulus packages to the agriculture sector by EAC Partner States and the establishment of an East Africa Community (EAC) Food Reserve to improve agricultural productivity and coordination of distribution of food across borders, amid the pandemic. The new study by the East African Business Council (EABC) with the support of the African Economic Research Consortium (AERC) and Bill and Melinda Gates Foundation recommends an increase of the COVID Stimulus Package to the Agriculture Sector, from a paltry USD 3.14 million (0.002% of the total stimulus, to USD 157.2 million at least 10% of total stimulus). This is set to promote a deliberate shift from rain-fed agriculture and from low energy to high energy technology-based agriculture to improve agricultural productivity and household income as well as ensure food security.
The US watches for now, as China moves ahead in Africa (Gulf News)
China’s support for the ideologically driven freedom movements in Africa during the Cold War years was paid back when African vote in 1971 got China past the hump to claim its seat at the United Nations. While their interest in each other is the legacy of those times mutual economic and strategic interests have drawn them closer over the years. China’s commercial engagement with Africa ballooned especially since the time China opened its economy. China – Africa trade has grown 40-fold in the last 20 years and is now Africa’s biggest trading partner and the top lender. Throughout the continent China has built soccer stadiums, hospitals and other buildings that touch lives of ordinary folks who still carry scars of centuries of humiliation through Western colonialism. China’s latest multi-trillion, multi-country, multi-ocean Belt and Road Initiative (BRI) has provided another ambitious platform for its engagement with the African continent.
‘Stars have aligned!’ £8bn Brexit trade bonanza looms as UK set sights on South Africa (Express)
Andrew Selous MP has hailed the UK’s exit from the EU as an opportunity to greater strengthen ties with South Africa going forwards. He said the two countries already do a significant amount of trade each year – worth £8billion in 2020 even with the pandemic – but the UK’s new internationalist outlook would provide fresh opportunities for the two Commonwealth partners. “I wouldn’t say we ever left Africa, so I wouldn’t say the phrase ‘Britain is back’ is the right one but we are definitely looking to re-vitalise and re-energise our relationship,” he told this website. “There’s a great deal to build on what is an already very established relationship but it could be so much more.” It’s the most industrialised and diversified economy in Africa and it’s the UK’s biggest trading partner in Africa, which is probably a result of hieratic links, language links, the legal systems are the same.
Global economy
DG Okonjo-Iweala calls on WTO members to tackle vaccine inequity (WTO)
Speaking to G20 leaders and the heads of international organizations on 21 May, Director-General Ngozi Okonjo-Iweala said WTO members could contribute to greater equity in the global distribution of COVID-19 vaccines by lowering supply chain barriers, fully using existing production capacity, and addressing issues related to intellectual property, access and innovation.
Things looking up to expand vaccine manufacture in Africa, but may take a while (The New Times)
Support to temporarily lift intellectual property rights for Covid-19 vaccines by the United States, France and New Zealand is the clearest sign yet the proposal might see the light of day. Request for the waiver was initially submitted by South Africa and India in October 2020 but has since been co-sponsored by 60 other countries. Rwanda has also been expressing its voice. The co-sponsors are now proposing a three-year waiver. Things are looking up, however, though there’s some way to go. While the European Union has pledged one billion dollars to build vaccine manufacturing hubs in Africa, a handful rich of countries home to pharmaceutical companies – Japan, the United Kingdom, Switzerland, Australia and Brazil – still harbour strong reservations about the patent waiver that will allow the manufacture.
Webinar examines challenges, opportunities in the use of trade preferences (WTO)
WTO members exchanged views with public and private sector experts on the growing challenges and opportunities facing businesses in the use of trade preferences, with a particular focus on product origin requirements. The discussion took place at a webinar entitled “What Drives the Utilization of Trade Preferences?” hosted by the WTO Secretariat on 19 May.
According to the WTO’s Preferential Trade Arrangements Database, 24 WTO members have 36 schemes in place providing non-reciprocal preferential market access for products originating from developing countries and least developed countries (LDCs). In addition, there are over 300 reciprocal regional trade agreements (RTAs) in force.
E-commerce negotiations advance, delve deeper into data issues (WTO)
The facilitators of small group discussions shared updates on progress made in the work to bridge the differences on text proposals in areas such as open internet access, open government data, online consumer protection and paperless trading. The co-convenors – Australia, Japan and Singapore – believe that a “clean” text on an additional four topics is within reach by the summer break. These comprise open government data, e-contracts, online consumer protection and paperless trading. The initiative has so far finalised two negotiating texts on unsolicited messages, otherwise known as spam, and electronic signatures and authentication. A new small group was established on electronic transactions frameworks and will start working based on proposals submitted by members.
Global trade after COVID-19: From fixed capital to human capital (Observer Research Foundation)
Some commentators have trumpeted the “end” of globalization in the wake of rising protectionism over the last half decade, the sudden economic stops wrought by COVID-19, and the corollary disruptions of supply chain activity around the world. The truth, though, is that for companies and investors involved in the exchange, transmission, and sale of goods, services, technology and finance, globalization is anything but dead. Rising economic nativism has taken various forms within the last few years and has in some cases been accelerated in the wake of the COVID-19 pandemic. Regardless of the underlying causes of domestic inequality and social anxiety, politicians have acted out against trade in the following ways:
Egypt upholds detention of Ever Given in Suez Canal (Daily News Egypt)
An Egyptian court rejected, on Sunday, an appeal against the Ever Given container ship’s continued detention in the Suez Canal, according to Reuters and local media. The appeal was launched by the ship’s Japanese owner, and follows its detention by Egyptian authorities after it had blocked maritime traffic in the important international trade route for six days in March. The complaint was attached to a case at the Ismailia economic appeals court, in which the Suez Canal Authority (SCA) is seeking $916m in compensation from the Ever Given’s owner, Shoei Kisen. The legal move seeks to gain financial reparations for the blockage and the operation to free the ship.
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DTIC trade policy statement addresses green, labour opportunities (Engineering News)
The Department of Trade, Industry and Competition (DTIC) on May 20 issued a Trade Policy Statement that reflects its policy objectives for international trade in the wake of the Covid-19 pandemic. The policy objectives also address emerging opportunities which stem from the signing of the African Continental Free Trade Area (AfCFTA). The South African government is pursuing trade policy that builds industrial capacity, supports workers, women and communities, unlocks development across the continent, drives manufacturing exports, opens markets for local goods and supports a domestic digital economy. Additional pursuits of government’s trade policy include enhancing environmental sustainability and enhancing South Africa’s role in world trade relations.
Durban port ranks in the bottom 3 out of 351 ports worldwide (IOL)
The Durban harbour has been ranked by a World Bank report in the bottom three of the world’s 351 competent container handling facilities. The other South African harbours battling low rankings in the report are Ngqura, Port Elizabeth and Cape Town. Transnet, the parent company of the Transnet Port Terminals division, said it will be engaging the World Bank regarding the analysis contained in its inaugural report, and the areas of measure considered for the index. This is according to the inaugural edition of the “Container Port Performance Index 2020: A Comparable Assessment of Container Port Performance” (CPPI), produced by the World Bank with external assistance from IHS Markit research enterprise.
Energy efficiency financing must be scaled up to unlock opportunities (Engineering News)
There is considerable opportunity and potential to be unlocked in energy efficiency projects in South Africa, but more needs to be done with regard to financial solutions to catalyse a take up of opportunities, speakers said during a webinar hosted by industry organisation the South African Energy Efficiency Confederation on May 20. Carbon Trust Southern Africa head Benjamin Curnier said the organisation was working with the South African National Energy Development Institute and the Department of Minerals Resources and Energy, along with the World Bank, to see what kind of financial interventions could be deployed in the market to drive energy efficiency.
President Kenyatta advocates for more partnerships between Kenyan and American SMEs (Capital News)
President Uhuru Kenyatta has said more partnerships between Kenyan and American Small and Medium Enterprises (SMEs) will help unlock the huge trade potential that exists between the two nations. The President invited American SMEs to invest more in the country by entering into mutually beneficial arrangements with their Kenyan counterparts, adding that the enterprises are the backbone of Kenya’s vibrant economy. “This is where the real opportunity lies. This is not to say that we are telling the big boys not to come in, they are already here. The big corporates are already here. “But they don’t have the capacity to propel inclusive growth as the small and medium enterprises that have a much greater capacity of affecting lives and changing the livelihoods at the grassroots level,” President Kenyatta said.
Kenya receives first ship at new $2.8B port (Anadolu Agency)
Kenya on Thursday started officially using its new Port of Lamu worth 310 million Kenya shillings ($2.8 billion), part of a project to link the East African country with South Sudan and Ethiopia. Uhuru Kenyatta, Kenya’s president, witnessed as cargo was offloaded off the Danish ship MV Cap Carmel at the completed first berth, one of 32 total. Once completed it will be the largest deep-water port in Sub-Saharan Africa. “This port will connect South Sudan, Ethiopia, and Kenya,” Kenyatta said at the opening. “Eventually, it will connect northern Kenya to the Middle Belt of Africa, which runs from Dakar, Senegal in the west to Lamu in the east.”
Kenya launches Lamu port. But its value remains an open question (The Conversation Africa)
Nakuru eyes British market in new trade partnership (Nation)
The Nakuru county government has reached an agreement with the British embassy to promote trade and investment opportunities within the devolved unit as it eyes increased agricultural exports. The move is part of a grand plan by the county government to help farmers tap into the foreign export market through value addition for various agricultural products. Governor Lee Kinyanjui and British High Commissioner to Kenya Jane Marriott held talks on Tuesday in a bid to bolster ties between Nakuru and the British government. “We’ve held deliberations on areas of mutual cooperation including agriculture, trade and education. The emphasis here is to increase exports of both processed and raw agricultural products to the British market,” the governor said.
Zim asked to facilitate trade links (The Herald)
Namibia has requested Zimbabwean authorities to facilitate direct links to product suppliers to eliminate middlemen who are in the habit of massive profiteering. Mrs Nandi-Ndaitwah said Namibia was a significant consumer of Zimbabwean products. “Namibia is a consumer of some products from Zimbabwe. It is worrisome that these products often reach Namibia through third parties hence there is a need to strengthen direct trade and commerce between our two countries,” said Deputy Prime Minister Nandi-Ndaitwah. “It is therefore important to hold trade initiatives such as business forums between our two chambers of commerce as a way of enhancing trade between our two countries.
AfCFTA is game changer for Ghana’s post covid-19 economic recovery – Alan Kyerematen (Myjoyonline.com)
The African Continental Free Trade Agreement (AfCFTA) could be considered as the game changer for the post COVID economic recovery and transformation of Ghana, Trade and Industry Minister, Alan Keyermaten has said. According to him, the country can achieve that if it harnesses the numerous benefits of AfCFTA. Speaking at the launch of the electric cable standards for mining companies by the Ghana Chamber of Mines in collaboration with the Ghana Standards Authority, Mr. Kyerematen said the government has developed a National AfCFTA Policy Framework and Implementation Plan for Boosting Intra-African Trade (BlAT).
Government prepares Annual Plan for 2022 (ANGOP)
The Angolan government is drawing up the Annual National Development Plan (PADN-2022) with the actions to be carried out, targets and objectives for next year, the Secretary of State for Planning, Milton Reis said today in Luanda. He noted that the preparation of PADN-2022 was in its initial phase, and that the schedule for its preparation, as well as the paradigm for the presentation of projects and activities to support development, had been presented to the Technical Bodies of the National Planning System.
Maritime security experts partner NPA on safety (The Guardian Nigeria)
Maritime security experts under the aegis of the Support for West African Maritime Security (SWAIMS), on Thursday pledged to partner the Nigerian Ports Authority (NPA) toward addressing maritime security and safety. The group, which is affiliated to the European Union, provides support to ECOWAS countries in the drive to fight against piracy and related crimes in the sub-region. It offers technical assistance on the anti-piracy and nautical security services, among others.
Aid deal for fish farmers in Nigeria (Fish Farmer Magazine)
Nigeria’s beleaguered fish farming sector is set to receive a lifeline, thanks to an aid and co-investment package funded by US Aid and a non-governmental organisation, Partners For Development. Fish farmers in the country have seen rising costs and falling prices for their product throughout the Covid-19 pandemic. The aid package, a co-investment partnership between the USAID-funded West Africa Trade & Investment Hub and global organisation Partners for Development, will leverage $1.1m (£0.77m) of private funds in addition to a grant from the Trade Hub of $500,000 (just under £352,000) to build the industry’s resilience. Key project goals include improving production, helping sales rebound, and increasing employment in the aquaculture sector, including for women and youth.
FDA collaborates with GEPA Impact Hub to boost export trade (Myjoyonline.com)
The Food and Drugs Authority (FDA) has expressed excitement in collaborating with the Ghana Export Promotion Authority (GEPA) on the latter’s Impact Hub initiative, intended to provide relevant trade information to the Ghanaian export community to boost the country’s export trade. The facility christened the GEPA Impact Hub, and located at the African Trade House, Headquarters of AfCFTA in Accra, is fully furnished with computers, dedicated online resources, printed trade information and publications and a library, to aid exporters in accessing trade information. GEPA has plan to rake in a revenue of $25.3 billion from non-traditional export trade by 2029, and the Hub is expected to contribute significantly to achieving this target through the provision of key trade information to exporters.
Guinea Backs FEDA’s Establishment (THISDAY Newspapers)
The Republic of Guinea has signed the Agreement for the Establishment of the Fund for Export-Development in Africa (FEDA), a development impact-oriented subsidiary of the African Export-Import Bank (Afreximbank). The Establishment Agreement was signed on March 31, 2021, by the Minister for Foreign Affairs, Mr. Ibrahima Khalil Kaba, on behalf of the Republic of Guinea. According to a statement, Guinea becomes the third signatory of the Establishment Agreement after Rwanda in November 2020 and Mauritania in January 2021. To complete the FEDA Legal Establishment process, two Afreximbank member states were required to sign and ratify the Establishment Agreement. The signing of the Agreement by Guinea was a significant step as it enables FEDA’s Legal Establishment procedures to progress towards completion.
Morocco Ensures Prosperous Financial Future After Meeting with AfCFTA (Morocco World News)
Morocco’s Foreign Minister, Nasser Bourita, met with the Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, to discuss Morocco’s commitment to promoting free trade in Africa. During the meeting, both officials relished the fact that Morocco continues to offer goods and services to aid in the prosperity of the agreement. The meeting ended amicably with officials from both parties agreeing that special importance should be attributed to developing the “private sectors of the Member States in order to promote intra-African trade for a more integrated and prosperous continent.”
Djibouti: Islamic Finance to Play a Key Role in Boosting Economic Development in Africa (Geeska Afrika)
Over 200 International Islamic Finance Leaders to Gather in Djibouti for the two day event focusing on capturing the Islamic finance opportunity in Africa. Speaking ahead of a high-profile conference addressing the opportunities for Islamic finance in Africa, David McLean, Chief Executive of the Islamic Banking Summit Africa (IBSA 2012) noted that “as a result of the recent policy revisions, regulatory changes and economic reforms in key markets on the continent, Africa has now been re-positioned as the third fastest growing region in the world, after the Middle East and Asia. The resurrection of Africa’s trade ties with the rest of the world has resulted in an increased international investor interest in the region. The rapid expansion of the major economies in the region has also resulted in the need to invest heavily in developing vital infrastructure. These factors highlight the tremendous opportunity that Africa presents for the growth of Islamic finance and also indicate how Islamic finance can play a key role in catalysing economic development in the region.”
Doors to US Market Swing Open. Can DRC Entrepreneurs Enter? (Global Press Journal)
The cocoa industry in this eastern stretch of DRC had all but disappeared when Alexis Kalinda Salumu decided to try and save it. Salumu in 2019 launched his processing company, Chocolaterie Lowa, from a small white house stocked with little bites of dark chocolate truffles, bittersweet bars of chocolate, and smooth cocoa butter extracted from nuts in a locally-made machine next door. His export goal seemed closer than ever in January, when the United States added DRC back to the list of countries that receive special trade provisions, known as the African Growth and Opportunity Act. But the optimism of entrepreneurs like Salumu is tempered by DRC’s limited infrastructure and an array of logistical hurdles, revealing the complexities of a deal that had been quickly heralded by both countries.
Achievements in agricultural sector showcase capacity for food self sufficiency, exportation (Ethiopian Press Agency)
“Agriculture plays a backbone role in Ethiopia’s economy being core part to our vision for attaining prosperity,” Prime Minister Abiy Ahmed (PhD) said recently. The Prime Minister mentioned some successes as a few of the milestones achieved so far in the past three years in the agriculture sector. In order to strengthen market-led agricultural development system, 10 crop varieties are being developed in four States of the country on 3.2 million hectares of land in a cluster approach. To facilitate the supply of irrigation rig and other agricultural equipment and inputs from the smallest to the largest, irrigation rigs and other inputs have been made tax-exempted at all levels and the inputs required for domestic production and assembly are equally tax-exempted.
Zambian miners want tax changes (The Southern Times)
The Zambia Chamber of Mines is lobbying the government to address impediments to investment inflows and production growth, and to guarantee stable tax policies. Chamber president Dr Godwin Beene this week said it was imperative to rectify negative investor perceptions of the mining sector in the country. “Our sector, like any other sector that thrives on engagement with foreigners, is sensitive to public perception. Since the year 2000, when Zambia’s investment policy changed, the new mining sector has been battling a bad press leading to Government putting various measures in place to address complaints from watchdog groups. Some potential investors have found reason for not wanting to invest in the Zambian Mining Sector,” he said.
Intra-African and international trade
Kazungula bridges SADC trade drive (The Southern Times)
The US$259 million Kazungula Bridge over the Zambezi River and One Stop Border Post facilities connecting Botswana and Zambia were commissioned on May 10, 2021, paving the way for enhanced Southern African Development Community (SADC) integration and development. The 929m bridge and state-of-the-art facilities were officially commissioned by the President of Botswana Mokgweetsi Masisi, and the President of Zambia Edgar Lungu, at a colourful ceremony at the quadriphonic point across the Zambezi River where Botswana and Zambia meet Namibia and Zimbabwe. Kazungula Bridge will link the Port of Durban in South Africa to the DRC and Tanzania through the North-South Corridor to facilitate seamless and efficient movement of goods and persons, and in doing so reduce cost of doing business, contribute to industrialisation, and enhance trade and SADC
According to the Food Crisis Prevention Network, a record 18.6 million people are currently in need of food assistance in West Africa. While urgent and immediate humanitarian action is necessary to protect vulnerable populations, a new World Bank and FAO publication offers fresh thinking for dealing with both the challenges and opportunities resulting from accelerating long-term trends including climate change, growing populations, urbanization, changing consumption habits and technological advances. The report titled “A Blueprint for Strengthening Food System Resilience in West Africa: Regional Priority Intervention Areas” identifies three interconnected priority areas for simultaneous intervention at regional level: strengthening the food system’s productive base, by promoting climate smart agriculture at farm and landscape levels; promoting an enabling environment for intra-regional value chain development and trade facilitation, and enhancing regional risk management architecture and farmers’ decision support tools.
Seychelles becomes first country in the world to avail report on transparency in fisheries (SADC)
The Republic of Seychelles, a Member State of the Southern African Development Community (SADC), has attained the status of being the first country in the world to submit its report to Fisheries Transparency Initiative (FiTI). Seychelles has been collaborating with the (FiTI) since 2015, leading regional efforts to promote sustainable management of fisheries. Transparency has become a cornerstone of Seychelles’ endeavours to transit towards a sustainable ocean economy; and it is a core principle of the country’s ‘Blue Economy: Strategic Policy Framework and Roadmap (2018-2030)’.
Africa’s vaccine campaigns hurt by India’s ban on exports (ABC News)
Africa’s vaccination campaigns to battle COVID-19 are facing significant delays because of the export ban imposed by India as it grapples with a devastating resurgence of the disease, Africa’s top health official said Thursday. The AstraZeneca vaccine manufactured by the Serum Institute of India was to be an integral part of the U.N.-backed COVAX initiative to distribute vaccines to low- and middle-income nations. India’s deadly crisis and its decision to halt all exports of the vaccines it produces had badly affected Africa’s mass vaccination drive, which was already lagging behind many other parts of the world, according to John Nkengasong, director of the Africa Centers for Disease Control and Prevention.
Russia’s Trade Growing with Africa (InDepthNews)
The first Russia-Africa Summit held on October 23-24, 2019 in Sochi, Russia, set the grounds for raising trade collaboration across various areas and work towards a new dynamism in the existing economic cooperation with African countries.
In an email conversation with Kester Kenn Klomegah in May 2021, Alisa Andreevna Prokhorova, Managing Director for International Activities and Interaction with Business Councils, and Group of companies of the Russian Export Center, stressed that as the African continent undergoes positive transformation, platforms for dialogue on trade between Russia and Africa are emerging too. She refers to the newly created continental free trade zone in Africa for potential Russian investors and enterprises, facilitating their quest for interaction with industry organisations in sub-Saharan African countries.
Over the last ten years, the World Bank Group has invested over $200 billion in Sub-Saharan Africa and, as I announced on Tuesday at the summit in Paris, in just the next five years, we intend to invest and mobilize about $150 billion in Africa to support the continent’s recovery. One of the themes of the Paris Conference two days ago, on Tuesday, was the call by African heads of state for cancellation of debts, but that’s not the direction that the world is moving at this point. A permanent solution is necessary for this overhang of debt stocks for countries that have unsustainable debt levels. World Bank is working closely with the IMF to try to implement the G-20 common framework for debt reduction. The success of that hinges on full participation by the private sector, and also improvements in debt transparency. The full private sector participation is an essential part of any path to lasting debt sustainability.
The 5th ATAF High-Level Tax Policy Dialogue took place virtually on the 5th and 6th May 2021 under the theme “Post-COVID Taxation: Policy and Administrative Strategies for Mobilising Enhanced Domestic Taxes in Africa”. The event was jointly organised by the African Tax Administration Forum (ATAF) and the African Union Commission (AUC), with the support of the African Development Bank (AfDB). It was agreed that African trade blocks should focus on greater tax alignment to ensure the success of the AfCFTA. In addition to this alignment, African countries should strive for a greater level of predictability in tax policy frameworks, build business confidence, and provide investors with certainty.
New online market to boost small holder farmers in EAC (The Standard)
An online agribusiness market to help farmers in the East Africa Community sell agricultural produce has been unveiled. Agribusiness Confederation of East Africa (ACEA) has launched the online agribusiness market to help sellers in the region find markets for their green produce. Dubbed the ACEA Buyer-Seller Platform, it aims to connect agribusiness players in the agriculture value chains from the East Africa Community. East African countries produce a lot of agricultural products but the challenge remains market for these products.
Global economy
Global trade after COVID-19: From fixed capital to human capital (World Economic Forum)
Some commentators have trumpeted the “end” of globalization in the wake of rising protectionism over the last half decade, the sudden economic stops wrought by COVID-19, and the corollary disruptions of supply chain activity around the world. The truth, though, is that for companies and investors involved in the exchange, transmission, and sale of goods, services, technology and finance, globalization is anything but dead. Granted, the landscape has dramatically shifted since the 1990s, and executives will need to be nimble and agile in navigating the new environment, which is currently in a state of flux. Indeed, more recent developments in the global trade environment including green frameworks, digital protocols and regional partnerships offer a glimpse not of the demise of globalization, but rather, of what global trade may look like in the post-COVID-19 era.
WTO chief calls for diversification of vaccine production (Associated Press)
On the eve of a global health summit in Rome, WTO Director-General Ngozi Okonjo-Iweala told European Union legislators that normal market forces for exports and imports couldn’t apply when it comes to the life-or-death issue of COVID-19 vaccines, as many of the world’s wealthiest nations were hoarding the shots for their own population when the crisis hit their home turf. She said the world has the capacity to manufacture some 5 billion vaccine doses overall but that as the virus has spread “we require twice and three times that. So the capacity was not there.”
“Digitalization is the way of the new life and the new economy” (FAO)
Digital agriculture can drive the transformation of agri-food systems necessary to eliminate hunger, reduce poverty and build a better future for all humankind, QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO) said today. “Digitalization is the way of the new life and the new economy,” he said at the World Summit on the Information Society (WSIS) Forum 2021. “This is both a tremendous responsibility and an unprecedented opportunity for all of us.”
UN development system responds with ‘solid score’ in face of COVID-19 test (UN News)
As the world continues to tackle the multiple impacts of the COVID-19 pandemic, from pushing some 131 million people into extreme poverty to reversing years of development progress, the UN chief said on Tuesday that a more coordinated approach is key to moving forward. ”In many ways, the COVID-19 crisis has shone a spotlight on international cooperation”, Secretary-General António Guterres told a meeting of the Economic and Social Council (ECOSOC) on Operational Activities for Development.
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National
SA’s Industrial Policy gets a shoeshine in financial inclusion (IOL)
The government has proposed radical legislative amendments for South Africa’s industrial policy, which could boost productivity, increase investment and achieve inclusive growth as part of speeding-up economic recovery. Trade and Industry Minister Ebrahim Patel yesterday announced his department’s future strategic focus to galvanise inclusive growth and build local industrial capacity. Patel said the measures would include a further amendment to company law to tackle the gross injustice of excessive pay and give representation at board level to workers. “This is an important way in which we can create meaningful economic inclusion. This can be the new frontier of economic empowerment,” Patel said. “First, we must build a new model of growth and economic inclusion that unites South Africans in the economy and promote transformation.”
More than R25 billion has been committed by major firms for investment in factories, refineries and construction in South Africa over the last five years, following agreement with Government in terms of the provisions of the Competition Act. In addition, more than R3 billion has been committed for supplier development over the same period. Moreover, billions of rands of local procurement have been enabled through measures undertaken by firms as a result of commitments to improve the domestic industrial impact of their procurement. The competition policy statement is one of a series of policy documents released as part of the annual dtic Budget Vote debate.
R27bn pledge to usher in 5G technologies (SAnews)
Communications and Digital Technologies Minister, Stella Ndabeni-Abrahams, has announced that R27 billion has been pledged by operators and vendors to usher in 5G fibre technologies in South Africa. The Minister said this when she tabled the department’s budget vote during a mini plenary of the National Assembly on Tuesday. “We believe that partnerships and collaborations are key to taking our sector to greater heights. “I am therefore pleased to announce that R27 billion is being pledged collectively by the operators and vendors to expand the 4G network, and to deploy the 5G and fibre technologies in South Africa, which has been tested by some operators,” she said.
Women in rural Namibia profit from biodiversity-friendly trade (UNCTAD)
The Eudafano Women’s Cooperative in Namibia extracts ingredients from seeds of indigenous plants such as marula, a medium-sized deciduous tree, for the domestic and international cosmetics industry. Oil extracted from marula seeds is rich in elements that are essential for the preservation of human skin, making it an ideal ingredient for cosmetics. The cooperative commercializes the marula and other plants in line with a set of guidelines on environmental, social and economic sustainability, known as BioTrade principles and criteria. The term “BioTrade” refers to the supply and commercialization of goods and services derived legally and sustainably from a country’s biodiversity. “We use the plants to support our livelihoods, while conserving them so that they sustain us for a long time,” said Martha Negumbo, the cooperative’s manager.
Kenya to boost sugar sector to reduce reliance on imports (Xinhua)
Kenya plans to boost domestic sugar output in a bid to reduce reliance on imports, a government official said on Wednesday. Lawrence Karanja, chief administrative secretary of the Ministry of Industrialization, Trade and Enterprise Development, told a virtual meeting that one of the challenges facing the country’s sugar industry is the high cost of production as compared to regional and international producers. “The uncompetitive price of locally-produced sugar makes Kenya an attractive destination for imports,” Karanja said during the launch of the Sugar Sub-Sector Strategic Plan by the Kenya Association of Manufacturers, which seeks to guide the industry’s growth, resilience and sustainability.
Businesswomen decry high cost of trade (Nation)
Kenyan businesswomen have decried the high cost of taxation amidst the Covid-19 pandemic, which has brought their enterprises to their knees. Seneca East Africa, managing director, Ms Annette Kimitei said the high cost of doing business is a major impediment to the recovery of the enterprises still reeling from the pandemic’s economic shock. “We have a new law called the Data Protection Act and we have to pay Sh250,000 for a license to do CCTV configuration. It is so expensive (yet) we are trying to keep the few people we have retained,” she added in The Future of Women in Business virtual meeting.
Maize prices drop as border trade booms (The Standard)
The recent bilateral talks between President Uhuru Kenyatta and his Tanzanian Counterpart Suluhu Hassan that eased cross border maize trade has seen a drastic drop in the produce prices. Farmers in North Rift region claimed yesterday that there is an influx of maize grains from the Eastern Africa Community region that had seen a reduction in prices from Sh2,800 per 90 kg bag last month to Sh2,300 currently. They want the sector to be allocated at least 10 per cent of the national budget saying the gesture, would create an equal level playing ground in agribusiness within EAC member countries.
The African Development Bank and the Government of Uganda have signed two financing agreements totaling around $348 million for the improvement of road transport in Uganda. The first is a $276 million financing agreement for the Kampala City Roads Rehabilitation Project; and the second, valued at $71.8 million, is for upgrading the Kabale-Lake Bunyonyi/Kisoro-Mgahinga road. Minister Kasaija described the projects as “transformative” and in line with his government’s national development plan as well as the African Development Bank’s High 5 strategic priorities.
AfCFTA: Morocco to finalize offer on trade in goods, services (APA News)
Moroccan Foreign Minister, Nasser Bourita, on Tuesday, held talks with the Continental Free Trade Area (AfCFTA) Secretary General, Wamkele Mene, during the latter’s visit to Rabat. During the meeting, the Moroccan minister emphasised the importance of the entry into force of the AfCFTA for the commercial and economic development of the continent, the Foreign Ministry said in a statement. The two parties also discussed the conclusion of Phase II on protocols relating to investment, intellectual property rights, competition and electronic commerce, recalling the role of the AfCFTA Secretariat in supporting member states to speed up the negotiations of these instruments. At the end of their meeting, the two officials agreed on the importance of supporting the private sectors of member states to promote intra-Africa trade for a more integrated and prosperous continent.
Ethiopia’s blockchain deal is a watershed moment – for the technology, and for Africa (The Conversation Africa)
At the launch of bitcoin in 2009 the size of the potential of the underlying technology, the blockchain, was not fully appreciated. What has not been fully exploited is the unique features of blockchain technology that can improve the lives of people and businesses. These include the fact that it is an open source software. This makes its source code legally and freely available to end-users who can use it to create new products and services. Another significant feature is that it is decentralised, democratising the operation of the services built on it. Unfortunately, bitcoin, the project that introduced blockchain technology, has hogged the limelight, diverting attention from the technology’s underlying potential benefits.
Nigeria to Benefit from UK’s £22m Cyber Capacity Building Fund (THISDAY)
The British Foreign Secretary, Dominic Raab, has announced £22 million of new investment to build cyber security resilience in developing countries and globally, particularly in Africa and the Indo-Pacific. In a speech delivered at the National Cyber Security Centre’s CyberUk conference recently, Raab announced that the UK would spend about £3 million of the £22 million funding to help Interpol set up a new team that will fight cybercrime in Africa. Nigeria was listed as part of the African countries to benefit from the fund.
African trade and integration
Afreximbank Begins Construction of Africa Quality Assurance Centre in Nigeria (African Import-Export Bank)
Afreximbank has announced the commencement of construction of the Africa Quality Assurance Centre (AQAC) in Ogun State, Nigeria. The Centre will be a state-of-the-art facility with the capacity to offer testing, certification, inspection, and training services covering agricultural products. It is the first in a series of Quality Assurance Centres that Afreximbank intends to establish across Africa to support industrialisation across the continent by ensuring that African products are manufactured to international standards and enabling them to participate in intra-African and global trade. First class quality infrastructure is considered critical in facilitating trade under the African Continental Free Trade Agreement (AfCFTA).
Prof. Benedict Oramah, President of Afreximbank, declared: “African businesses are set for a major step-change as the African Continental Free Trade Agreement (AfCFTA) opens up new markets across the continent and the globe. To make their mark in countries around the world, African products must meet international standards. The AQAC in Ogun State will help deliver the highest quality African goods, strengthening their competitiveness and providing confidence to buyers. This is an important step, not only in underpinning the ‘Made-in-Africa’ brand, but as a driver for greater exports, increased manufacturing and more resilient economies across the continent.”
Why the extent of intra-African trade is much higher than commonly believed – and what this means for the AfCFTA (Brookings Institution)
Intra-African trade is widely perceived as low compared to other regions of the world, an argument made ad nauseum in both academic and policymaking circles. Some observers are especially disparaging about its potential. We beg to differ and argue that intra-African trade has much greater economic significance than is commonly believed. The orthodox narrative is driven by three errors: 1) The comparisons made with other regional blocks are frequently misleading and do not compare like with like; 2) the picture of intra-African trade is distorted by large-scale commodity exports to destinations outside the continent; and 3) there is a systematic failure to recognize the scale of informal cross-border trade.
This Session is being held under the theme: “Developing Integrated and Complementary Value Chains for sustainable recovery and reinforcing operationalisation of the African Continental Free Trade Area (AfCFTA). And it comes against a background of our on-going collaboration aimed at positioning our economies to move toward recovery from the COVID-19 Pandemic which has gravely undermined our health systems and economies.
Trade volumes are down. Commodity prices initially went down but are recovering in some sectors. Capital flight was massive, like in other emerging economies. As a result of all this, Africa went into recession in 2020, something last experienced in 1995. The COVID-19 Pandemic also highlighted Africa’s heavy dependence on imports of both final and intermediate pharmaceutical products. The restrictions on export of personal protective equipment and later vaccines, enforced by some countries consequently put the continent in a perilous position. Africa’s import dependence also extends to food.
The issues that I have highlighted above are basic indicators of the need to boost intra-Africa trade through the development of continental and regional value chains. For us to achieve this, we have the key tasks of: developing integrated and complementary value chains across the continent; digitalizing value chains; and, reinforcing Public- Private partnerships to scale up investments in African manufacturing and agro-processing. Already, there are efforts being made towards harnessing continental and regional supply chains by market players in several African countries. The task is to scale up.
EA Finance ministers juggle to fund recovery but debts mount (The East African)
East African finance ministers are walking a tightrope as they try to fix economies ruined by the prolonged effects of the Covid-19 pandemic and repair national balance sheets saddled with huge debts, shrinking revenue sources and increasing expenditure needs. As the ministers gear up to table the 2021/2022 fiscal year budgets in June, they must come up with ways to fund economic recovery plans without loading more taxes on an already burdened citizenry, or taking up additional debt. Debt servicing obligations have become a nightmare for regional economies, which have seen significant portions of tax revenues used in paying interest on loans rather than fund government operations and development projects.
Reliable and affordable energy key to EAC integration (East African Community)
Reliable and affordable energy sources of energy are key to the attainment of all the four stages of the EAC integration, namely the Customs Union, Common Market, Monetary Union and Political Federation. EAC Secretary General Hon. Dr. Peter Mathuki said that energy was a driver and enabler of all sectors of the economy, adding that the harmonisation of Partner States’ national policies governing energy was therefore critical. Dr. Mathuki said that harmonising energy policies in the region and making energy affordable was crucial to improving the business environment in East Africa and increasing its attractiveness as an investment and trade hub. “The first thing an investor seeking to set up in a country usually asks is the cost of energy. We need to reduce the costs of energy in the region to facilitate investment,” said Dr. Mathuki.
EAC Integration Efforts Gain Steam (The Star, Kenya)
Efforts geared towards the integration of the East African Community (EAC) region are gaining traction despite historical headwinds. Political squabbles that threatened the prospects of the integration efforts may be all but behind us following Tanzania’s recommitment to the initiative. Following strenuous trade relationships between EAC partner states, evidenced by the introduction of increasingly protectionist trade policies by governments within the region, signs of positive movement towards a more cohesive trade block are welcome. Increased cooperation between the member states’ governments on regional infrastructure developments promises that the dreams of a fully integrated region are achievable. The Kenya – Tanzania Natural Gas Pipeline project, the rehabilitation of the Kenya – Uganda railway and positive progress with respect to the Tanzania – Uganda oil pipeline all stand to boost regional integration efforts in the long run.
Simulating and modelling resilient distribution networks with precision and speed (ESI-Africa)
The electricity supply industry is under pressure to accommodate the increase in renewables share on the grid. However, it is a welcome challenge. New technologies, including solar and wind, support decarbonisation efforts and increase electrification rates. Still, it is a concern for distribution engineers and planners responsible for keeping the network stable and resilient who must now consider factors such as reverse power flow, fluctuations, and integrations. At their disposal are years of tacit knowledge, home-grown calculation tools, cloud-based digital modelling software, and outsourcing the task to consultants. But which solution is best suited to tackle the challenges associated with maintaining high reliability of supply while increasing integrated distributed energy resources (DERs) on the network?
Accurate and disaggregated data critical for evidence-based policies: launch of Africa Migration Data Network (African Union)
The African Union in collaboration with international partners has launched the Africa Migration Data Network (AfMDN) to strengthen the coordination and sharing of knowledge for the effective production of quality migration statistics in Africa. The network will also serve as a framework for advocacy for mobilization of financial resources for the production of migration statistics, in particular the conduct of specific surveys on migration. Migration data and statistics remain an essential component for good migration governance, underscoring the importance of quality, accessible, disaggregated, reliable and timely data to inform actions, public opinion and evidence-based policies.
The ECOWAS Regional Competition Authority (ERCA) has organised a virtual capacity building session for Members of its Consultative Competition Committee (CCC) from May 17 to 21, 2021. The session is aimed at developing the capacity of members of the Consultative Competition Committee. The first session of its kind since the commencement of ERCA’s activities and derived from ERCA’s roles and responsibilities, as enshrined by the Supplementary Act A/SA.2/12/08 on the establishment, functions and operation of the ECOWAS Regional Competition Authority which provides that ERCA shall contribute to the training of the staff of national competition authorities with a view to supporting them, among others, in the management of investigations and competition-related information, establishment of databases, undertaking advocacy in respect of competition and consumer-related issues.
International relations
Declaration: Summit on the Financing of African Economies, Paris, 18 May 2021 (ReliefWeb)
The Covid-19 pandemic has led to an unprecedented economic crisis worldwide, with disastrous social consequences. After 25 years of continuous growth, Africa is severely hit and has suffered a recession in 2020. The International Monetary Fund (IMF) estimates that additional financing of up to $285 billion would be needed during 2021-25 for African countries to step up the spending response to the pandemic, with about half of it for African low-income countries. The middle-income countries also require special attention. Absent a collective action, the financing and objectives of the 2030 Agenda for Sustainable Development and the African Union’s 2063 Agenda will be compromised.
Most regions of the world are now launching massive post-pandemic recovery plans, using their huge monetary and fiscal instruments. But most African economies suffer the lack of adequate capacities and such instruments to do the same. We cannot afford leaving the African economies behind.
This requires collective action to build a very substantial financial package, to provide a much-needed economic stimulus as well as the means to invest for a better future. Our ambition is to address immediate financing needs, to strengthen the capacity of African governments to support a strong and sustainable economic recovery and to reinforce the vibrant African private sector, as a long-term growth driver for Africa.
Africa: IFC Announces $2 billion Investment in SMEs and Trade to Support Recovery from COVID-19 (International Finance Corporation)
Targeting sectors hit hard by COVID-19, IFC today announced a $2 billion commitment to support smaller businesses and increased trade in Africa to galvanize the continent’s economic recovery from the pandemic and to sustain and create jobs and business activity. IFC will invest $1 billion in new direct financing for MSMEs, the backbone of African economies, including via mezzanine financing and risk-sharing instruments. IFC will invest a further $1 billion in support of international trade finance for Africa to facilitate the flow of imports and exports of essential goods, including food and medical products. The combined $2 billion package is among IFC’s largest ever commitments to specific initiatives in Africa and comes as the continent grapples with the ongoing fallout from COVID-19, which has plunged the region into recession, reduced foreign direct investment flows, and pushed millions more Africans into poverty.
Battle of development narratives: EU-Africa relations in the multipolar world (Oxford Research Foundation)
As the world has changed from a unipolar hegemony to a multipolar one with competing global powers, the Western development paradigm that seeks to grant assistance to ‘underdeveloped’ nations has openly turned from an allegedly altruistic project into an endeavour of geostrategy. By tracing the roots of its discourse, it is clear how development has always been part of a geopolitical and geoeconomic project. For the European Union (EU), the world’s largest development donor, to set up a new partnership with Africa, one of the largest aid-receiving regions, beyond donor-recipient relations and offer a credible alternative to Chinese influence in the region, it must radically revisit its development narrative.
Decolonising Africa’s economies is the solution to an integrated continent (Thought Leader)
The Covid-19 pandemic has dragged African economies into a fall of about 1.4% in GDP, with smaller economies facing contraction of up to 7.8%. This has forced many already poor and heavily indebted countries to further borrow from the International Monetary Fund just to survive the pandemic. In fact, many have already borrowed from the future. With debt overtaking total economic output, how will these African nations recover? The answer lies in the complete integration of the African continent. Individually, African countries are weak, but united they could unleash Africa’s true potential. Integration starts with political leaders having the will and courage to break with a colonial mindset that keeps Africans apart. Firstly, African leaders must honour the commitments they have made and implement the African Continental Free Trade Area (AfCFTA). AfCFTA must be the priority in the formation of policy and regulation in every signatory country.
Practice True Multilateralism and Galvanize Strong Support For Africa’s Development (Embassy of the People’s Republic of China)
The world is undergoing the most serious pandemic in a century. No country is a fantasy-land that can insulate itself from the virus, and no country should be left behind in the global response effort. The purpose of China’s proposal for this open debate is to urge the international community to pay attention to the severe challenges brought about by the pandemic to the peace and development in Africa, build consensus, and form synergy. It is aimed at getting the international community to work with African countries to defeat the virus, set off post-pandemic reconstruction, remove root causes of conflicts, and galvanize momentum towards lasting peace and sustainable development in Africa. China would like to offer four proposals.
CDC Group commits USD 100 million to African farmers (ICLG.com)
United Kingdom government-owned development finance institution CDC Group will be providing a debt commitment of USD 100 million to agricultural conglomerate Export Trading Group. Export Trading Group (ETG), an agricultural business in sub-Saharan Africa, has been offered debt financing of USD 100 million from CDC Group. Explaining the significance of such an investment for the African economy, CDC Group’s managing director and head of private equity and corporate debt Tony Morgan said in a statement: “Agriculture and rural development are vital engines that are accelerating Africa’s economic transformation and meeting global food and health needs.”
Investor and trade interest in Africa remains strong despite challenges around Covid-19, senior officials from the United States, Germany and the United Kingdom said at the recently concluded annual conference of the African Private Equity and Venture Capital Association.
“We average somewhere between $4 billion to $5 billion of investment a year. We want to increase that. Somewhere a little north of 20% of our allocation has been going to Africa, which we want to increase. So, if you take $5 billion a year, and 20% of that, that is a billion. I would like to see that substantially increased in the next few years in climate, in health, in technology and in infrastructure,” Marchick said.
Wade-Smith said Africa was definitely on the UK’s radar. “We are working really closely with governments to create that enabling environment, spotting whether there might be regulations that need updating or implementing more concretely and regularly, and I am really working with investment promotion agencies across the continent to help to create the right projects in the right way that will inspire those investors to come flooding back into Africa,” she said.
Global economy
Spreading the Gains from Trade More Widely (World Bank)
Global trade has contributed to growth and poverty reduction in the past three decades, but gains from trade can be more inclusive, the World Bank said today. Spreading the benefits of trade more widely, within and between countries, can play a key role as the world seeks to recover from the COVID-19 pandemic, which has reversed years of poverty reduction. New data and tools developed by the World Bank can allow policy makers to ensure trade delivers more for the poor, according to The Distributional Impacts of Trade: Empirical Innovations, Analytical Tools and Policy Responses report. By identifying in advance those sectors and regions that are most affected by changes in trade patterns, policies can be designed to maximize the gains and mitigate potential losses.
“There is no question that the rise in trade over the past 30 years has helped to dramatically reduce global poverty, but the benefits were not shared equally,” said Mari Pangestu, World Bank Managing Director of Development Policy and Partnerships. “Trade plays a vital role in pandemic response, ensuring food and medicine can cross borders freely and vaccines are distributed where they are needed. Better policies are needed to make trade more inclusive, as we work to build back better and set a path toward green, resilient and inclusive development.”
Under pressure EU presents WTO plan to boost vaccine output (CNBC Africa)
The European Union put forward a plan on Wednesday it believes will help boost production and availability of COVID-19 vaccines more effectively than a proposed waiver of patent rights now backed by the United States. Under pressure from developing countries to agree to waiving intellectual property (IP) rights for vaccines and treatments, the EU plan will focus on export restrictions, pledges from vaccine developers and use of existing World Trade Organization rules. “Universal and fair access to vaccines and treatments must be the global community’s number one priority,” EU Trade Commissioner Valdis Dombrovskis told the European Parliament.
Chair Presents Draft Consolidated Text on Fisheries Subsidies (IISD)
The Chair of the negotiations on fisheries subsidies of the Negotiating Group of Rules, Ambassador Santiago Wills of Colombia, has circulated a new draft text for a World Trade Organization (WTO) fisheries subsidies agreement to members. WTO members are aiming to reach an agreement on curbing harmful fisheries subsidies in July 2021. On 11 May, Ambassador Wills introduced a new draft text based on members’ collective work that seeks to bring members closer to an agreement. He told delegates the draft text aims to “serve as the basis for work toward a clean text to present to a meeting of ministers on 15 July.” Key revisions in the new draft text include narrowing the flexibilities provided under provisions for overfished stocks, recognizing these are stocks already in the worst condition; sharpening the focus of WTO work on subsidies, not on fisheries management; removing language that may have inadvertently had implications for the operation of international fisheries agreements; and transparency and notification obligations linked to proposed flexibility entitlements.
UNCTAD15 pre-event: Productive capacities for the new decade (UNCTAD)
The development path followed to achieve the eligibility criteria for graduation has important implications for the challenges and vulnerabilities that each country will face after graduation, and the means at its disposal to address them. The dynamics that drive LDCs to achieve graduation matters also to their post-graduation performance. As UNCTAD argued, a country’s development process continues indefinitely beyond its graduation point, and its subsequent success depends critically on the foundations built in the course of graduation. How graduation is achieved is thus as important as when it is achieved. The Committee for Development Policy (CDP) identified at least three pathways leading to graduation with different implications for productive capacity and overall progress towards sustainable development. The Enhanced Integrated Framework (EIF) addresses the components of the productive capacity-building process in the LDCs through its dedicated windows of support.
Term of Commonwealth boss in focus as meeting is pushed back (The East African)
The decision to delay the Commonwealth Heads of Government Meeting (Chogm) for the second time due to Covid-19, has left the Secretary-General’s position in limbo, even as leaders protest the travel bans imposed by the United Kingdom. Announcing the postponement on May 7, Commonwealth Secretary-General Patricia Scotland and Rwandan government, the would-be hosts, said the “impact” of Covid-19 had made it difficult to prepare for the meeting which is usually a physical biennial gathering announced. The immediate problem now is on the question of the position of Secretary-General. Traditionally, the decision to extend the term or elect a new person rests with Chogm. And until members meet, the position remains in limbo.
Multilateral Solutions to Global Challenges (IMF)
After a contraction of 3.3 percent in 2020 – which was the worst recession since the second world war – the global economy is now on a path to recovery. Last month, we lifted our global forecast to 6 percent in 2021 and 4.4 percent in 2022. We got to this point because of the unprecedented policy response from countries, which included $16 trillion in fiscal action and massive liquidity injection by central banks. Without these synchronized measures by countries, the global contraction last year would have been at least three times worse.
What is clear, though, is the dangerous prospect of divergence across countries. The global recovery is powered by only a few countries with advanced vaccination efforts and successful containment, leaving poorer countries at greater risk of falling behind. The implications of this divergence are dire. Over half of the developing countries that were once catching up to advanced economy income levels are now set to fall further behind. Emerging markets face the risk of tighter financial conditions and capital outflows. Many developing countries carry higher debt burdens – some of the poorest already face a high risk of debt distress. The sad reality is that much of the past hard-won development gains will be wiped out.
Related News
South African government outlines bold steps to grow industrial output and support greater economic inclusion
A bold set of actions to grow industrial output and support greater economic inclusion was announced today by Minister of Trade, Industry and Competition, Minister Ebrahim Patel in Parliament, during his Department’s Budget Vote.
It included a timeframe for a draft law to provide for worker participation in company boards, steps to achieve higher levels of local industrialisation, a draft roadmap for producing electric vehicles and working on green hydrogen opportunities, boosting investment levels, and strengthening export platforms through the new Africa-wide trade agreement.
Speaking at a press conference today with Deputy Ministers Nomalungelo Gina and Fikile Majola, Minister Patel unpacked the action plans of the Department for the next 12 months.
Key work that the Department will do are to finalise:
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Two new Companies Amendment Bills, dealing with worker representation on corporate boards; and with wage gaps in companies and transparency on disclosure of information;
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The development of a roadmap for electric vehicles in South Africa;
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A Social and Solidarity Economy policy, which can assist with the rebuilding of the economy in the wake of the number of formal businesses that have been devastated and to support township and rural enterprises;
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The development of two new sector growth strategies drawn from the portfolio of work covering among others global business services, film animation, the chemical and plastic sectors, green industry, medical products and capital goods
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The establishment of a panel of CEO champions to drive localisation and a fund to appoint technical experts to drive localisation, bringing together industrial engineers, supply-chain managers, experts in dealing with illegal imports, and project managers;
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A dtic investment target of R100 billion over the next year, which together with other efforts in the state, can help to achieve the goal for the next Investment Conference;
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The appointment of a panel to finalise a report on the practical actions to be taken to realise Green Hydrogen opportunities for SA;
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The appointment of an expert panel to review the current BEE Framework in order to address these legitimate public concerns on the extent of transformation and reporting by firms;
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Support the competition Market Inquiry into online platforms, like e-commerce market places; and
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Further engagements with major trading partners to build export markets and address illegal imports.
Minister Ebrahim Patel outlined a series of key strategies to speed up economic recovery and ‘build back better’ in the wake of the COVID-19 pandemic. In doing so, deeper integration of efforts to galvanise inclusive growth and build local industrial capacity has been identified as key strategic focuses in achieving this.
“We will achieve this by: uniting growth with transformation; boosting local production; growing exports; securing new investment, and expanding the green economy,” said Minister Patel.
He highlighted the importance of building a new model of growth and economic inclusion that unites South Africans in the economy and promotes transformation, including a focus on worker ownership arrangements, particularly those accompanied by mechanisms for worker representation on company boards.
He announced the publication today of a Practice Note under the B-BBEE Act to provide guidance to regulators and clarity in the market on the treatment of broad-based empowerment vehicles, so that worker ownership schemes, community trusts and union investment vehicles are properly recognised for BEE ownership purposes.
Another key component of the department’s strategy for growth in the period ahead centres around localisation.
“South Africa’s import to GDP ratio is too high for an economy that desperately needs more jobs. We import goods worth 25% of our GDP – our propensity to import is out of line with peer countries and developed economies and more can sensibly and sustainably be produced locally. Our economy needs a production boost. Our deeper integration strategy recognises that we must build local industrial capability, both for the domestic and export markets,” Minister Patel said.
“The local industrial effort – what we call localisation for shorthand – must be rooted in building both dynamic firms and an inclusive economy. Competitiveness and industrial agility are critical to longer-run localisation efforts. Sector master plans developed and implemented in partnership with business and unions contain the details of how to do this. We also need practical steps to promote, where sustainable, a greater level of beneficiation of our natural resources here in SA,” he said.
As part of the Budget Vote in Parliament, his department today released a policy statement on Localisation for Jobs and Industrial Growth, outlining the strategy for building local industrial capacity for the domestic market and for export markets.
To support economic growth and industrial development in the face of climate change, Minister Patel noted the importance of expanding efforts to green the economy and position South Africa as a centre for advanced green manufacturing.
“Climate change will impact on industrial development as well as human development and security, in a number of ways: through new opportunities for industrial processes and products, constraints to access to export markets and capital markets; and through disruptions to existing business-models based on carbon-intensive technologies,” said Minister Patel.
“We must step up efforts to build full electric vehicles in SA, to maintain our capacity to export to key markets such as the EU and UK, both of which have set new targets and deadlines to reduce the number of fossil fuel reliant vehicles on their roads,” he said.
Deputy Minister Gina provided details on the department’s work on Furniture, Sugar and R-CTFL Master Plans, Special Economic Zones and Industrial Parks, the District Development Model, Consumer Protection Work and Transformation.
“We are on a path to reconstruct our economy. We might have taken a knock but our economy has proven to be resilient, and this becomes an important aspect to build on. The setback notwithstanding, our head as a country has remained above the parapet. We are calling for the private sector to join hands with government and cooperate in reigniting growth in our economy. South Africa is a country of enormous resilience and we are confident that we will weather the storm.” said Deputy Minister Gina.
Deputy Minister Majola provided details on the department’s work in response to the COVID-19 pandemic, Steel, Poultry and Auto Masterplans, the Black Industrialist programme, Localisation and the implementation of African Continental Free Trade Area.
“The AfCFTA provides opportunities for South Africa/SACU to export to North, West and East Africa. Intra-African trade is largely in value-added manufactured products and over three quarters of intra-African trade takes place within regional trading blocs. South Africa will benefit from the opening of trade in east, west and north Africa as a result of the operationalisation of the AfCFTA.” said Deputy Minister Majola.
Links to speeches tabled today may be found at:
Links to policy papers tabled today may be found at:
pdf Auto Green Paper on the advancement of new energy vehicles in South Africa (649 KB)
pdf Policy statement on Localisation for Jobs and Industrial Growth (421 KB) ; and
Related News
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National
Government Outlines Bold Steps to Grow Industrial Output and Support Greater Economic Inclusion (the dtic)
A bold set of actions to grow industrial output and support greater economic inclusion was announced today by Minister of Trade, Industry and Competition, Minister Ebrahim Patel in Parliament, during his Department’s Budget Vote. It included a timeframe for a draft law to provide for worker participation in company boards, steps to achieve higher levels of local industrialisation, a draft roadmap for producing electric vehicles and working on green hydrogen opportunities, boosting investment levels, and strengthening export platforms through the new Africa-wide trade agreement.
Speaking at a press conference today with Deputy Ministers Nomalungelo Gina and Fikile Majola, Minister Patel unpacked the action plans of the Department for the next 12 months. Minister Ebrahim Patel outlined a series of key strategies to speed up economic recovery and ‘build back better’ in the wake of the COVID-19 pandemic. In doing so, deeper integration of efforts to galvanise inclusive growth and build local industrial capacity has been identified as key strategic focuses in achieving this. “We will achieve this by: uniting growth with transformation; boosting local production; growing exports; securing new investment, and expanding the green economy,” said Minister Patel.
Government Releases Auto Green Paper on the Advancement of New Energy Vehicles in South Africa (the dtic)
The Department of Trade, Industry and Competition (the dtic) has released today a Green Paper on the advancement of new energy vehicles in South Africa as part of a series of policy papers accompanying the 2021 Budget Vote for the Department. The purpose of the Green Paper is to establish a clear policy foundation that will enable the country to coordinate a long-term strategy that will position South Africa at the forefront of advanced vehicle and vehicle component manufacturing. The strategy is complemented by a consumption leg, and a focus on increasing competitiveness in the global race to transition from the internal combustion engine era into electro-mobility solutions and technologies.
Rescuing tourism from pandemic ‘devastation’ is priority for the next year (News24)
The main focus of the Department of Tourism during the current financial year will be on the implementation of the Tourism Sector Recovery Plan, Tourism Minister Mmamoloko Kubayi-Ngubane said during her department’s budget vote presentation to Parliament on Tuesday. The plan, which was developed with input from the private sector, has three main strategic themes, namely protecting and rejuvenating supply, reigniting demand and strengthening long-term sustainability. The total infrastructure commitment is just under R700 million over a five-year period. To date, an amount of R270 million of the funds has been made available to the Development Bank of Southern Africa (DBSA) which serves as the implementing agent for the department’s infrastructure programme. A further R222 million has been budgeted for this financial year.
South Africa’s agricultural sector to benefit from access to African markets (News24)
Agricultural economists and analysts say the newly established African Continental Free Trade Area (AfCFTA) will provide agribusinesses in South Africa the opportunity for enhanced trade, cooperation and investment across borders. The Department of Agriculture, Land Reform and Rural Development (DALRRD) International Trade directorate, Sphamandla Mazibuko said the potential trade opportunities the AfCFTA would bring to the agriculture sector included expanding South Africa’s agricultural exports away from the SADC concentration and into the rest of the continent. The African continent accounts for 41% of South Africa’s agricultural exports of an average R131 billion a year. “For some years South Africa’s government and the business community have recognised the strategic importance of the African market for increased agricultural investment and exports. After all, the African continent accounts for 41% of South Africa’s agricultural exports of an average R131-billion a year,” said Wandile Sihlobo, Chief Economist for the Agricultural Business Chamber of South Africa.
Namibia now has a total ban on SA poultry – and a million hens have already been culled (Business Insider)
Namibia has instituted a total ban on the import of live and raw poultry from South Africa, as the industry battles to contain the spread of a highly contagious avian flu that first broke out at a Johannesburg layer farm in earlier in April. Namibia first announced a partial ban of 21 days on poultry from South Africa on 15 April, restricting imports from one trading compartment. On Monday, its ministry of Agriculture, Water and Land Reform announced an immediate suspension of import and in-transit movement of live poultry and their raw products from South Africa. “All previously issued import and in transit permits to import poultry and their products originating from South Africa are hereby canceled and recalled with immediate effect. This measure will remain effective until further notice,” the ministry said in a statement. Namibia is one of several countries that now have trade restrictions placed on South Africa’s poultry. Lesotho, Swaziland, Mozambique, and Hong Kong are also rejecting some or all poultry products from the country.
Namibia to lose N$7.5bn from SACU receipts (New Era)
For the financial year 2021/22, Namibia’s share of the Southern African Customs Union (SACU) receipts will decline by about 34% to N$14.8 billion, down from N$22.3 billion in 2020/21. The SACU decline was underpinned by the collapse in imports into SACU and mainly imports into South Africa, which fell to 2012 levels, and import duty collections were estimated to be as bad as in the worst year after the global financial crisis. According to the Bank of Namibia (BoN) governor Johannes !Gawaxab in the bank’s annual report for last year, the current account recorded a surplus balance of N$3.4 billion during 2020, translating into a surplus of 1.9% of gross domestic product (GDP).
“This was partly due to the narrowing of the merchandise trade deficit on the back of lower imports as the Covid-19 pandemic resulted in reduced domestic demand. Although the value of merchandise exports also declined, as earnings from rough diamonds, food, and live animals, and manufactured products fell, the decline in imports was bigger, hence the improvement in the trade deficit,” he said.
Kenya keen on trade talks with US, says Uhuru (The Standard)
The government is keen on concluding negotiations for the free trade agreement with the United States, President Uhuru Kenyatta said on Tuesday. Talks on free trade agreements began in 2018 following a meeting between President Uhuru and former US President Donald Trump. However, it was not until July 8 last year that both countries announced the formal launch of talks, with July 31 this year set as the deadline for putting pen to paper on the deal. In April this year, US Trade Representative Amb Katherine Tai said further negotiations have to align to President Joe Biden’s Build Back Better Agenda, which could further delay the agreement. While underscoring the importance of the private sector in Kenya’s economic growth and job creation, President Uhuru Kenyatta said Kenya is keen on concluding negotiations for the free trade agreement with the US.
Frequently Asked Questions on Kenya (IMF)
The central objective of the program, supported by arrangements under the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF), is to gradually stabilize public debt. The budget deficit will be reduced overtime (as the COVID-19 shock eases) through a combination of revenue mobilization and spending rationalization measures. This gradual approach is needed to strike a balance between near-term support for the economy and laying the ground for durable and inclusive growth over the years to come. Absent such a strong multi-year approach to contain debt and debt vulnerabilities, there will not be sufficient resources in the near-term to support vulnerable groups or much needed higher spending in areas like health. The program also includes measures to promote greater transparency in public accounts, strengthen the anticorruption framework, and addressing weaknesses in some state-owned enterprises.
Uganda private sector upbeat on EAC market access (Dailynews)
The Uganda Private Sector players have expressed satisfaction on the way matters are opening up with promising market access across the East African Community (EAC) partner states. With the new leadership at the helm of the EAC Secretariat and after swearing in of presidents of governments in most countries, changes are starting to be felt among traders in the positive node for intra-EAC business. The players are upbeat on prompt interventions on market access challenges for their goods and resolutions of persistent trade barriers across the region, EAC’s Secretariat decided to be proactive in clearing trade hurdles at borders. Also, it is in response to a decision to avail a trade hotline that will provide cross-border traders with a platform to register their challenges and get rapid feedback or solutions.
EU remains significant market for Namibian goods (New Era)
The European Union remains an important market for Namibian goods and the two entities continue to enjoy excellent relations in the areas of trade, investment, tourism and development cooperation, amongst others. This is according to Penda Naanda, Executive Director in the international relations ministry who at the recent Europe Day celebrations noted, “The EU market remains an important market for Namibian exports. In 2019, Namibia exported goods valued at over N$19 billion. Export products ranged from agricultural products to fisheries as well as mining commodities.” Naanda added: “The Economic Partnership Agreement concluded between the EU and the SADC EPA States, of which Namibia is a member, allows for duty free, quota free market access from Namibia to the EU with the exception of arms and ammunition.”
AfCFTA will aid Zim structural transformation: Prof Ncube (The Chronicle)
Finance and Economic Development Minister, Professor Mthuli Ncube, says embracing the African Continental Free Trade Area (AfCFTA) is critical in assisting Zimbabwe to structurally transform its economy. The desire for structural economic transformation is receiving a lot of attention in global policy debates with more urgency in developing countries like Zimbabwe, which have for years relied on production and export of primary commodities. With the country driving towards realising an upper middle-income economy by 2030, structural transformation is vital and this is espoused in the National Development Strategy (NDS1), which was launched by President Mnangagwa last November and runs from 2021 to 2025. As the Government forges ahead with investment reforms, Prof Ncube says the private sector must come on board and play its part by tapping into the opportunities being availed under the AfCFTA.
Exporters challenged to focus on value added products (The Herald)
Speaking at a ZimTrade organised outward seller mission currently taking place here in Dubai, Mrs Mlambo said once Zimbabwean horticulture exporters penetrate the Dubai market, they have high chances of spreading to other United Arab Emirates countries. Zimbabwean companies should now focus on exporting value added products to augment mineral and raw products that are largely being exported currently, ZimTrade board chairperson Mrs Clara Mlambo has said.
Zim to ratify African Medicines Agency treaty (The Herald)
Zimbabwe will soon ratify the treaty to establish the African Medicines Agency (AMA) that will spearhead the production and harmonisation of pharmaceutical products on the continent. The AMA treaty was adopted by African Union’s Heads of State and Government during their 32nd Ordinary Session of the Assembly on February 11, 2019 in Addis Ababa, Ethiopia. Zimbabwe signed the Treaty in March this year to become the 19th member State. AMA will, among other functions designate, promote, strengthen, coordinate and monitor regional centres of regulatory excellence with a view to developing the capacity of medical products regulatory professionals.
Zimbabwe’s mega chrome project takes shape (African Mining Market)
The Government’s plans to grow mining to a US$12 billion industry by 2023 are taking shape with the rolling out of a new multimillion dollar steel and ferro chrome project by Afrochine. Construction of the country’s single biggest production operation in the country is now underway in Chivhu, 150 kilometers south of the capital city Harare in Mashonaland east province. The ferrochrome project is scheduled to commence in the second half of this year and it is expected to be the biggest operation of its kind in the country and probably in the SADC region. Speaking to journalists during the site visit, Minister Chitando said the implementation of the project will entail multi-stakeholder engagements as the project cuts across various Government ministries.
Suspension of maize imports saves US$300m (The Herald)
Zimbabwe will save over US$300 million following the move by the Government to suspend maize imports on the back of a bumper harvest the country has achieved this year. Owing to successive droughts in recent years, Zimbabwe has been importing an average of 100 000 tonnes of maize per month from the region and as far as South America. The Government lifted the ban on private grain sales in October 2019 and granted the nod to individuals and corporates with free funds to import quantities of their choice to complement Treasury’s efforts in ensuring adequate national grain reserves.
In an interview, Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya confirmed the suspension of grain imports saying the bumper harvest meant the country would now save foreign currency and channel these resources to the productive sectors.
Ethiopia’s Prime Minister Abiy Ahmed inaugurates third Integrated Agro-Industrial Park (UNIDO)
The Bulbula Integrated Agro-Industrial Park, which occupies 271 hectares of land in Western Oromia Regional State, has been inaugurated in the presence of Abiy Ahmed, Prime Minister of the Federal Democratic Republic of Ethiopia, Shimelis Abdissa, President of Oromia Regional State, and Melaku Alebel, Federal Minister of Trade and Industry. The Bulbula Integrated Agro-Industrial Park, strategically located between Lake Langano and Lake Abiyata in the heart the Great Rift Valley of Ethiopia, includes a bank, a waste treatment plant, a health clinic, a police station, training centres and managerial facilities.
Ethiopia’s debt: an economic and political liability (Ethiopia Insight)
Since mass protests began in 2015, a lot of analysis has focused on Ethiopia’s security challenges, with sustained unrest followed by momentous change and now a relapse into civil war in Tigray. But the economic headwinds are equally strong – and they have the potential to compound political dilemmas. As part of the state-led developmental project pursued by the Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF), most intensively after 2010, the government invested big, both directly and through state-owned enterprises (SOEs). While the injected capital – mainly to finance infrastructure – produced impressive economic growth, the model was heavily reliant on debt. The sustainability of this formula depends both on realizing returns that are higher than the contracted interest rates and securing foreign exchange with which to repay interest and principal. Unfortunately, the first condition for success was undermined, as the implementation of many projects was riddled by waste and a lag in producing profits.
Liberia, Sierra Leone to boost cross border trade in the region (The New Era)
The process for the construction of a Joint Border Post between the Republic of Liberia and the Republic of Sierra Leone has begun. Accordingly, the President of the ECOWAS Commission, Jean-Claude KassiBrou, sanctioned a Mission for the physical inspection and verification of sites (land) at the Jendema-Bo Waterside land border between Liberia and Sierra Leone, proposed by the two ECOWAS Member States for the location of the new Joint Border Post to be constructed.
Trade deficit in the first four months of 2021 narrowed to 4,420.7 million dinars (MD) against 4,844.5 MD in the same period of 2020, an improvement of 423.8 MD, according to a note on trade at current prices of April 2021 released Friday by the National Institute of Statistics (INS). This improvement is explained by the increase in exports by 21.4% and imports by 13%.
Intra-African and international trade
EAC short of trade finance (Dailynews)
Ground-breaking report has warned that on East African Community (EAC) Partner States and the horn of Africa a limited access to trade finance hinders the region from playing a significant role in global commerce. Whereas Africa comprises 17 per cent of the global population, it only accounts for just 1.8 per cent of global trade exports and 2.1 per cent of global trade imports as per 2018 data, reads the report. Of all sub-regions of the continent, East Africa continues to post the lowest total export trade in goods and services compared to other sub-regions, demanding concerted actions by all actors.
TradeMark East Africa (TMEA) in collaboration with FSD Africa launched the report titled ‘Trade Finance Landscape in East Africa and Horn of Africa: Barriers, Opportunities & Potential Interventions to Drive Uptake’. Speaking during the launch of the report, TMEA Chief Executive Officer (CEO), Mr Frank Matsaert noted that the report provided a good starting point in tackling key challenges limiting the region’s performance in global trade. “The low intra-regional trade in Africa is because trading activities across the continent are inhibited, for SMEs (Small and Medium Enterprises) in particular, by limited access to finance but also due to high export costs, political instability, poor infrastructure and high taxation,” he observed. The study focused on agriculture, construction, textiles and garments, finding key barriers to uptake existing both at ecosystem and trade finance provision level, underscoring the importance of holistic interventions for meaningful impact.
The pillars that will deliver trade dividends within EAC (Business Daily)
Peter Mutuku Mathuki took over as the secretary-general of the six-nation East African Community (EAC) bloc on April 25, pledging to deliver a “stronger and more formidable” trading bloc at the end of his five-year term. He spoke to Business Daily.
Q: One of the biggest threats to regional integration is on-and-off disputes among member states who sometimes resort to erecting tariff and non-tariff barriers (NTBs). How are you going to address this challenge?
A: My preferred approach would be to prioritise the full operationalisation of the EAC Elimination of Non-Tariff Barriers (NTBs) Act, 2017 and the establishment and full operationalisation of the EAC Committee on Trade Remedies to handle persistent trade disputes in the region. I will also focus on strengthening the capacity of the National and Regional Monitoring Committees on the resolution of NTBs to identify and resolve any imposed NTBs. The removal of NTBs is expected to drive intra-regional trade to at least 30 percent in the short-term from the current 15 percent. My target is to have it grow to more than 50 percent by the end of my tenure.
Q: What practical solutions are you bringing on board to unlock the long-standing stalemate among EAC members over the common external tariff (CET) for the bloc?
A: The finalisation and comprehensive review of the common external tariff and its uniform application in the bloc is long overdue. One of my priorities is to work with the Secretariat and partner States to fast-track the process by the end of this year. We will do this by ensuring that all member states focus on its conclusion for the purpose of promoting local industries and products in each of the partner states. Despite a legal framework for standards in place, there have been cases where goods from one member State has been subjected to double testing and standardisation, and that means increased cost of doing business.
AUDA-NEPAD and Ecobank Group partnership moves to finance phase under the 100000 MSMEs Initiative (Africanews)
The African Union Development Agency NEPAD (AUDA-NEPAD) and the Ecobank Group its strategic partner on the development of the 100,000 Micro, Small and Medium Enterprises (MSMEs) Initiative, are set to launch the financing component as from 27 May 2021. AUDA-NEPAD launched the 100,000 MSMEs Programme to accelerate African economic transformation, provide the needed skills, and build resilience against the economic shock triggered by the global pandemic. The ‘100 000 MSMEs’ initiative seeks to build the capacity of 1,000,000 enterprises in Africa through entrepreneurial and business training to improve access to finance and new markets while establishing networks for support and incubation to bolster their success. “Across the globe, MSMEs are the biggest and the best engine of innovation, social transformation and economic development and growth. AUDA-NEPAD is deeply convinced that Africa structural transformation will be driven by youth and women led businesses and innovations.,” said Amine Idriss Adoum AUDA-NEPAD, Director of Programme Delivery & Coordination Directorate.
Rising African challenges prevent investment opportunities, says Fidic (Engineering News)
The growing challenges in Africa can be addressed through the availability of green and climate-resilience funding, as well as impact investment, if engineering solutions support sustainable, environment-friendly and climate resilient built environment and infrastructure development, speakers participating in global industry body the International Federation of Consulting Engineers’ (Fidic’s) Africa Infrastructure Conference, on May 18, have said. The Covid-19 pandemic led to a halt in construction worldwide and, in Africa, the industry looks set to remain stagnant this year. Low business profitability is expected for one to two years, while employment, liquidity, cash flows and margins remain under pressure, Fidic CEO Dr Nelson Ogunshakin noted.
The high cost of underrating Africa (Jordan Times)
In 2020, the COVID-19 pandemic caused Africa’s first recession in 25 years. The sharp tightening of global financial conditions triggered sudden stops in foreign direct investment and massive capital outflows, alongside one of the most dramatic global demand and supply shocks on record. The crisis intensified the continent’s liquidity constraints and compounded its existing macroeconomic management challenges. The pandemic-induced downturn has also amplified one of Africa’s biggest development challenges: the high cost of “perception premiums”. These premiums reflect the overinflated risks perennially assigned to Africa, irrespective of its improving macroeconomic fundamentals or the global economic environment. Fortunately, international leaders are finally discussing the problem.
Galvanised by strong economic performance in countries like Ethiopia, Rwanda, and Ivory Coast, Sub-Saharan Africa has consistently been one of the world’s fastest-growing regions over the last two decades. Underscoring their resilience, several African countries expanded their output even during the pandemic, and two – Ethiopia and Guinea – were among the world’s five fastest-growing economies last year.
But these successes appear to have had little to no impact on the dominant credit-rating agencies. They downgraded South Africa – which accounts for more than 20 per cent of total intra-African trade and is the continent’s leading driver of cross-border investment – and several other African countries to “junk” status at the height of the pandemic last year. The downgrades extended the already long list of African sovereigns deemed to be highly risky and subject to default-driven borrowing rates. Some of these assessments seem erroneous in light of many African economies’ encouraging performance.
Africa’s busiest ports (Nairobi News)
Over 90% of Africa’s imports and exports are transported by sea and so there is a need for innovation in the field of maritime. Thus, here is the lowdown of Africa’s largest ports as of the year 2020, based on improvement and investment plans, as well as the measuring unit which is a twenty-foot equivalent unit (TEU).
How Lamu port is angling for top spot in the region (Business Daily)
When the Port of Lamu becomes operational on Thursday, it will bring major changes on freight business along the Indian Ocean in regard to transshipment activities along the sea. Currently, the Port of Durban remains the largest in Sub-Saharan Africa, as it plays a major role in transshipment activities by feeding other small ports with cargo. The new facility, which is expected to become the largest port in sub-Saharan Africa, will target countries along the Indian Ocean Islands such as Seychelles and Comoros among others. “This port is going to be a game changer in the region, it will play a key role in handling the cargo that are destined to other countries, directly competing with the port of Durban in South Africa,” said Mr Rashid Salim acting managing director at the port.
To attract the traffic at the new port, Kenya is targeting to lower the cost of docking by making it slightly lower than what Djibouti is charging. “Incentives relating to fees and charges for using and clearing goods at the Port as requested by stakeholders – will be gazetted for at least a period of one year, in the next few days, to promote usage of the port by the business and logistics sectors,” said Treasury in a statement.
Kazungula Bridge Project to expand regional integration and trade across southern Africa (AfDB)
On Monday, 10 May 2021, the Kazungula Bridge Project was officially commissioned by the Presidents of Botswana and Zambia, who applauded the Bank for its work on this transformative project. The 923-meter bridge with two border facilities on either side, is not only a win for Botswana and Zambia, it also contributes to integration in the southern Africa region, and illustrates development cooperation. The bridge and One-Stop Border Posts will support trade and transport along the North-South Corridor, and indeed the Trans-African Highway on the Cape to Cairo route. The bridge also provides impetus to the recently launched African Continental Free Trade Area. “The Kazungula Bridge project was worth the effort,” said Zambian President Edgar Lungu. “Kazungula Bridge is a model and benchmark for the region and continent,” said President of Botswana, Mokgweetsi Masisi.
Sh18bn Kibwezi-Kitui road opens up region for trade (Business Daily)
The 192km Kibwezi-Kitui-Migwani road is not yet complete but its benefits are already being felt. The Kenya National Highways Authority (Kenha) managing director Peter Mundinia says the Sh18.4 billion project, which is funded jointly by Kenyan taxpayers and the Chinese EX-IM Bank is more than 90 percent complete. However, the agency has opened up the road for use ahead of its commissioning. The class B road, which is part of the Mombasa-Isiolo-Addis Ababa Transport Corridor, will provide a direct link between Mombasa and Ethiopia through Isiolo and Moyale. It is meant to decongest Mombasa-Nairobi highway and open up Ukambani for development. Shipping and Logistics has established that plans to install a lorry park around Kibwezi Township are at an advanced stage.
Trade openness can empower women – Schultz (The Namibian)
The United Nations fifth Sustainable Development Goals call for gender equality and empowering women and girls, however, little has been said on how this can be done and with the new norms, the proposed solutions could be outdated. In their latest weekly Trade Talk, the Namibian Trade Forum roped in Beatrice Schultz – Future Females’ Ambassador and Akoma Trading co-founder. According to Schultz, one way to empower women and achieve the fifth SDG is to advocate trade openness, which involves tariff liberalisation and efficient operation at border posts. She said if that is achieved, women’s welfare would be enhanced. Schultz said the biggest challenge for women is paying the import duty when they import stock or goods for consumption. “As a result, tariff liberalisation would lower the costs for women consumers and improve their welfare,” Schultz wrote. She highlighted barriers that prevent women from exporting goods. These are logistical, domestic and foreign administration, border constraints, financial risk, market knowledge, financing and cash flow, intellectual property, and ownership of business.
Ghana chosen as “case study” for African countries in ensuring digital safety (MyjoyOnline)
Ghana has been chosen by the international community to serve as a case study for neighboring countries on safeguarding the use of online services to the benefit of all. To this end, the country has been sharing experience of some cybersecurity activities and initiatives to the world at the Freedom Online Coalition event in Accra hosted by the National Cybersecurity Centre. The Freedom Online Coalition event afforded Ghana the platform to explain some initiatives undertaken to safeguard the country’s digital space and also protect the human rights of online users and businesses. This is part of a four priority areas by the freedom online coalition to strengthen governmental engagements in combating cyber fraud.
Here Is The Technology Fuelling Africa’s Agricultural Revolution (CIO East Africa)
A year on from the emergence of COVID-19, Africa’s agricultural sector has proved to be more resilient than people feared. Despite the widespread devastation experienced around the globe, food production did not collapse and in fact, the South African citrus industry celebrated a record-setting season, with exports of 146 million cartons of fruit to the rest of the world. Agricultural production in Africa is still characterized by significant exports of unprocessed products, and significant imports of processed foods. Nevertheless, across the continent, a young and dynamic population is embracing agritech (agriculture technology) based on AI, drones and mobile platforms to change that dynamic and create a more balanced and resilient agricultural sector. During the time that the pandemic occupied everyone’s thoughts, the challenges posed by climate change took a back seat. But the prospect of rising temperatures, more droughts and floods and unpredictable weather patterns are a far greater long-term threat to food production than the pandemic. Technology cannot solve all problems, but it has an important role to play in the agricultural sector.
African Development Bank invites business enablers to apply for funding to support women entrepreneurs (SciDev.net)
This May, the African Development Bank Group is launching a call for proposals for projects enhancing the viability and sustainability of women entrepreneurship enablers. “Women business enablers are critical to creating a viable enabling environment in which women entrepreneurs can grow and create businesses that generate jobs for the continent. Through the Affirmative Finance Action for Women in Africa initiative, the Bank is committed to supporting enablers to strengthen the business and financial skills as well as wealth-creating capacity of their members,” said Esther Dassanou, manager of the program, also known as AFAWA.
Delegates Discuss Review of the COMESA Fund (COMESA)
COMESA Fund Technical Committee met on 12th May 2021 to discuss the progress made in the implementation of various projects. The meeting was attended by delegates from, Comoros, Kenya, Malawi, Madagascar, Mauritius, Seychelles, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. They noted the achievements attained through COMESA Adjustment Facility over the years, including the ongoing construction of the Manzini Trade hub in Eswatini and border export zone structures across four border markets in Uganda. This is in addition to supporting to the leather clusters in DR Congo, Eswatini, Madagascar, Malawi, Sudan, Zambia and Zimbabwe. “It is COMESA’s hope that given the years that have passed, and the opportunities missed, COMESA is now going forward to provide a framework that allows support at a large scale for its infrastructure development,” Assistant Secretary General in charge of COMESA programmes Dr Kipyego Cheluget said, adding that time was of essence to quickly position the Fund as a viable instrument.
Summit on the Financing of African Economies
Paris summit mobilises finance, vaccines for Africa ‘New Deal’ (EURACTIV)
A Paris summit Tuesday (18 May) promised to help Africa overcome the COVID pandemic with a “New Deal” using global financial firepower to replenish depleted coffers and ramp up a sluggish vaccine rollout. The summit, which brought together African leaders and global financial institutions, launched “a New Deal for Africa and by Africa”, host French President Emmanuel Macron told a news conference. Africa’s populations have been less badly hit by the pandemic than other regions – with a total of nearly 130,000 dead compared with almost 3.4 million worldwide, according to the latest AFP tally from official sources. But the economic cost has been devastating, with the International Monetary Fund warning in late 2020 that Africa faces a shortfall of $290 billion up to 2023, undermining all efforts at development. “We cannot afford leaving the African economies behind,” said the summit’s final declaration.
Africa Financing Summit in Paris Ends With Calls for Funding, Vaccines (Voice of America)
African Union head praises Macron’s ‘new deal’ for continent at Paris summit (RFI)
Democratic Republic of Congo President Felix Tshisekedi, whose country holds the rotating African Union presidency, has praised the Paris financial summit as a “great opportunity” and said French president Emmanuel Macron was offering a “new deal”. “We will see to what extent we can raise funds to save Africa,” said Tshisekedi, adding that the pandemic “left our economies drained because we have had to spend all the little resources we had to fight the disease”. Leaders warned that the risk inequality could open even further as richer countries implement massive stimulus packages while leaving Africa without the financing to keep up robust pre-pandemic growth rates.
Managing Director Kristalina Georgieva’s Remarks at Summit on the Financing of African Economies (IMF)
Remarks by World Bank Group President David Malpass at the Summit on Financing African Economies (World Bank)
Cancel Africa’s debts – Akufo-Addo says at Summit on Financing African Economies (3news)
President Kenyatta roots for new approaches to financing Africa’s Covid-19 recovery (Capital
Africa should mobilise external financing for sustainable growth (SAnews)
Prime Minister Trudeau announces additional support for hard-hit African economies (Yahoo! Finance)
Team Europe mobilises to support African economies (The European Sting)
Working with African Partners, the initiative will mobilise substantial financing and technical expertise from the European Union and its Member States, under a Team Europe approach, to address key bottlenecks that hold back young entrepreneurs and small business owners across Africa from starting or expanding their businesses. European Commission President Ursula von der Leyen today announced a Team Europe initiative in support of Africa’s recovery from the COVID-19 pandemic, as she joined global leaders at the Summit on Financing African Economies hosted by French President Emmanuel Macron in Paris.
Unlocking digital connections in Africa: new EIB toolkit (European Investment Bank)
To speed up the digital transition, we need to offer more innovative financing and technical assistance that will help African countries overcome the many problems holding back Internet access and new technologies. The European Investment Bank’s Rural Connectivity Toolkit provides clear guidance to help African countries design financially sound, sustainable and inclusive digital connectivity projects. The toolkit’s goal is to improve digital connections in communities that are not or poorly being served by the market. Africa’s digital transformation is well underway, generating big changes and benefits for many parts of the economy and society. But there is a stark digital divide: out of a total population of 1.3 billion, an estimated 900 million people in Africa are not connected to the internet. For those who have access, affordability may be low and bandwidth severely limited.
EIB President highlights new gender and digital investment initiatives to accelerate economic recovery across Africa (European Investment Bank)
Werner Hoyer, President of the European Investment Bank today outlined two new gender financing and digital initiatives to accelerate economic recovery from the COVID-19 across Africa and scale up targeted financial and technical support for high-impact investment. The strengthened support for gender focused and digital investment were outlined at the Summit on the Financing of African Economies convened in Paris by President Macron and attended by Heads of State and Government from across Africa and Europe. “Following last year’s record EUR 5 billion EIB engagement across Africa, driven by our rapid response to the pandemic that enabled African partners to continue to invest, together we can now look ahead to the future. Accelerating innovation across the board and supporting women’s entrepreneurship are is crucial for Africa’s development. EIB teams in Europe and in nine centres across Africa, stand ready to increase financial and technical support to private and public African partners during the recovery,” said Werner Hoyer.
Global economy
Global trade’s recovery from COVID-19 crisis hits record high (UNCTAD)
World trade’s recovery from the COVID-19 crisis hit a record high in the first quarter of 2021, increasing by 10% year-over-year and 4% quarter-over-quarter, according to UNCTAD’s Global Trade Update released on 19 May. According to the report, the impressive rebound in Q1 2021 continued to be driven by the strong export performance of East Asian economies, whose early success in pandemic mitigation allowed them to rebound faster and to capitalize on booming global demand for COVID-19 related products. “Global trade has recorded a faster recovery from the recession caused by the pandemic than in the last two trade recessions,” said UNCTAD economist Alessandro Nicita, who worked on the report.
According to the report, import and export trends for some of the world’s major trading economies show that with a few exceptions, trade in major economies recovered from the fall of 2020. Trade recovery remains uneven, the report notes, especially among developing countries, with exports from East Asia rebounding substantially faster. The value of global trade in goods and services is forecast to reach $6.6 trillion in Q2 2021, equivalent to a year-over-year increase of about 31% relative to the lowest point of 2020 and of about 3% relative to the pre-pandemic levels of 2019.
Co-sponsors of vaccine patent waiver to soon issue amended version of their proposal (Mint)
India, South Africa and other countries that have co-sponsored a deal to boost supplies of life-saving drugs and vaccines for covid-19 will soon clarify on the scope and tenure of the suggested waiver through an amended version of the proposal. This is expected to expedite text-based negotiations of the proposal at the World Trade Organization (WTO) following support by the US government. “Co-sponsors will soon issue an amended version of their waiver proposal with the objective of moving text-based discussions forward. The amended waiver proposal seeks to further clarify the scope of the proposed waiver, while also addressing the period during which it will apply. We believe that this phase of discussion should be concluded as soon as possible given the very serious situation that we still face with covid-19. Continuous mutations and emergence of new variants of SARS-COV-2 highlight the significant uncertainties and complexities of controlling SARS-COV-2 and underscore the urgency of this proposal. A failure to respond in a timely manner on the waiver proposal undermines the legitimacy of WTO,” the co-sponsors said in a joint statement. The co-sponsors also confirmed that they will engage in this process with flexibility to ensure a swift outcome.
Helping pandemic-hit developing countries – Opinion (Busines Recorder)
To help developing countries grappling with the Covid-19 crisis, official donors increased foreign aid to an all-time high of $161.2 billion in 2020, up 3.5% in real terms from 2019, boosted by additional spending, according to preliminary data collected by the OECD. “Governments globally have provided $16 trillion worth of Covid stimulus measures yet we have only mobilized 1% of this amount to help developing countries cope with a crisis that is unprecedented in our lifetimes,” Gurría said. “This crisis is a major test for multilateralism and for the very concept of foreign aid. We need to make a much greater effort to help developing countries with vaccine distribution, with hospital services and to support the world’s most vulnerable people’s incomes and livelihoods to build a truly global recovery.”
Unlocking the potential of intellectual property rights in supporting creative economies (UNCTAD)
This year we are celebrating the international year of the creative economy for sustainable development. Yet, many are unaware of what encompasses the creative economy and its importance for prosperity. The “creative economy” is not a concept that can be easily defined as human ingenuity can be at the source of any economic activity. This is why UNCTAD and the United Nations Development Programme (UNDP) consider it as an “evolving” concept based on creative assets with a potential to generate economic growth and development. It comprises a diverse set of knowledge-based economic activities, such as advertising, architecture, arts and crafts, design, fashion, film, video, photography, music, performing arts, publishing, research and development, software, or broadcasting. It thus lies at the interface between human creativity, ideas, culture, IP, knowledge and technology.
How to scale private finance for sustainable infrastructure (Devex)
With approximately 75% of the global infrastructure that will exist in 2050 not yet built, there is a clear opportunity for growth in sustainable infrastructure. But attracting private finance to those projects – particularly in low-income countries – remains challenging. Among the key barriers for low-income countries are a lack of bankable projects, poor government capacity and processes, a lack of standardization, and higher levels of risk. But a number of initiatives are underway to tackle some of those challenges, including the Global Infrastructure Facility and the Finance to Accelerate the Sustainable Transition – Infrastructure initiative, or FAST-Infra.
Sovereign Debt Vulnerabilities in Developing Economies (UNDP)
This paper analyzes sovereign debt vulnerabilities across 120 developing economies. Country results are summarized and ranked using five vulnerability indicators; credit-ratings, liquidity-risk indicator, solvency-risk indicator, growth in external debt-service burden, and share of external debt owed to private creditors. In total 72 countries are identified as vulnerable, 19 of which severely so. Total external debt service at risk is estimated at a minimum of $598 billion for 2021-2025, $87 billion of which in 2021. One-third of vulnerable countries holding two-thirds of total external debt service at risk are not eligible for the Debt Service Suspension initiative (DSSI) nor for debt treatment under the Common Framework (CF).
World Bank USD 2.5 Billion 5-Year Bond Mobilizes Finance for Sustainable Development (World Bank)
The World Bank (International Bank for Reconstruction and Development, IBRD, Aaa/AAA) priced a 2.5 billion 5-year Sustainable Development Bond maturing in July 2026. The deal attracted a wide variety of investors with more than 75 orders and an order book reaching over $3.1 billion with strong demand from central banks and official institutions. Investors included those integrating Environmental, Social and Governance (ESG) criteria in their investment process, as well as those seeking to achieve positive impact through the selection of issuers, like the World Bank, that incorporate climate action and sustainability throughout their operations.
Related News
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National trade and trade-related news
Business wants jobs and competitiveness prioritised amid 20% import-substitution request (Engineering News)
Organised business is preparing to intensify engagements with government and labour over growing calls for higher levels of localisation and industrialisation, including in the country’s infrastructure roll-out, as well as in response to a “request” by Trade, Industry and Competition Minister Ebrahim Patel that an import-substitution target of 20% be set for non-petroleum imports.
Business Unity South Africa (Busa) CEO Cas Coovadia reports that import-substitution discussions have intensified partly as a result of the success of business in responding to the supply-chain challenges presented during the Covid-19 lockdown in 2020, when several enterprises stepped up their manufacture of personal protective equipment. However, the priority being given to localisation in government’s Economic Reconstruction and Recovery Plan has since prompted Busa and Business Leadership South Africa (BLSA) to commission research into the issue, as well as to create a structure, comprising over 30 CEOs mostly from manufacturing enterprises, to advance bilateral discussions with government on the matter.
Government in talks over new lockdown restrictions for South Africa – what businesses say they should focus on (BusinessTech)
Sense needs to prevail as government considers new policies to limit the impact of the third Covid-19 wave in South Africa, says Business Leadership South Africa (BLSA) chief executive Busi Mavuso. Citing the economic costs of South Africa’s last three ‘hard’ lockdowns, Mavuso said any additional restrictions being considered for South Africa’s third wave must focus on protecting both lives and livelihoods. “We now have clearer insight into the impact of certain policies on the economy as well as the impact on health outcomes. Businesses have invested to be able to operate safely – the priority must be to set out safe operating protocols and let business get on with adapting to them. “Bans, curfews and shutdowns are hugely damaging and have a questionable impact on public health. Let us get the balance right.”
South Africa’s weak growth could fuel socioeconomic tensions – Moody’s (Engineering News)
South Africa’s low economic growth and rising debt burden could see socioeconomic tension intensify and impede policy reforms, ratings firm Moody’s said in a research note on Tuesday. The note, an extract from the credit firm’s annual report published on Monday, said South Africa’s credit profile was balanced, with its low level of foreign currency debt and strong core of institutions counting in its favour.
Why Kenya could lose its top food export market (Business Daily)
In the months surrounding the birth of our own republic, from 1961 to 1963, a crucial organisation was also being born, to assure food safety across the globe. As a partnership between the Food and Agriculture Organisation (FAO) of the United Nations and the World Health Organisation (WHO), the Codex Alimentarius Commission produces the Codex Alimentarius, which is Latin for the ‘Book of Food’. It contains internationally recognised guidelines, standards, codes of practice and recommendations on food safety, with just two goals: to ensure the health of consumers and fair trade in food. Yet, today, both are under threat.
Investors threaten divestment over FG’s Free Trade Zones reform plans (Blueprint Newspapers Limited)
Leading investors in Nigerian Free Trade Zones have threatened to commence divestment from the zones following what they called an attempt by the federal ministry of Industries, Trade and Investment to transfer supervision of the Zones from Nigeria Export Processing Zones Authority (NEPZA) to the Oil and Gas Free Trade Zones (OGFZA).
IMF Calls for Major Reforms to Turn Zimbabwe’s Economy Around (Bloomberg)
Zimbabwe needs a “broader reform and stabilization agenda” to sustain an almost yearlong effort by authorities to support the local currency and lower inflation, the International Monetary Fund said.
Zimbabwe reintroduced its own currency in 2019 after a 10-year hiatus and has been battling bouts of high inflation and shortages of everything from foreign currency to food. The local unit, which was pegged at parity to the U.S. dollar two years ago, has plunged to 84.6 against the greenback, while annual inflation stands at 194%. The government has yet to provide a clear plan on how the country will expunge almost $10 billion of debt owed to multilateral lenders including the World Bank, Paris Club and African Development Bank that are crucial for it to access fresh credit lines. The solution lies in “sound policies and donor support needed to resolve the debt overhang problem,” according to the IMF.
Namibia lauds growing relations with EU (Xinhua)
Namibia on Monday lauded growing business and bilateral relations with the European Union (EU) and called for the consolidation of the relations in mutual areas including combating climate change, improving exports and technical cooperation.
“The EU market remains an important market for Namibian exports. In 2019, Namibia exported goods valued at over 1.1 billion euros (19 billion Namibian dollars). Export products ranged from agricultural products to fisheries as well as mining commodities,” Namibian Ministry of International Relations and Cooperation Executive Director Penda Naanda said. According to Naanda, the Economic Partnership Agreement (EPA) concluded between EU and SADC EPA states, of which Namibia is a member, allows for duty-free, quota-free market access from Namibia to the EU with the exception of arms and ammunition.
The Minister of Information, Kojo Oppong Nkrumah who is also in Charge of Ghana’s Trade Information has directed all heads of Communications, Public Relations Officers and Corporate Affairs Departments of state institutions to document the various efforts being made by their organizations towards harnessing the potentials of the Continental Free Trade Area and report to the Ministry on regular basis. He said government in partnership with the Private Sector Community, International partners and the AfCFTA Secretariat will be intensifying information dissemination programs at the national, regional and continental levels to enlighten business associations and service providers on opportunities under the AfCFTA.
GSA sensitises transit trade players on how to benefit from AfCFTA (GhanaWeb)
Players in the nation’s transit trade have been sensitised on how to position themselves to benefit from AfCFTA. The Transit Shipper Committee (TSC) members of the Ghana Shippers Authority (GSA) in Grater Accra have been taken through the AfCFTA framework and enlightened on how mechanisms available can be used to enhance their operations. Head of Freight and Logistics Department – who also doubles as Chairman of the Committee – Fred Asiedu-Dartey in his welcome address expressed optimism about the potential of transit trade and its contribution to the economy of Ghana. He noted that the TSC had made substantial contributions in the promotion of Ghana’s transit corridor, and that the TSC is poised to do even more to continuously bring about practical solutions for the challenges faced by transit shippers using Ghana’s corridors.
Government targets 80 percent internet access in Tanzania by 2025 (The Citizen)
The government is inviting investors to establish mobile phone assembly lines in Tanzania to tap into a huge market of those not served, with a goal to reach 80 percent of internet users by 2025. The country has so far 43.7 million mobile phone subscribers but only 23.1 million of them get internet, with up to 86 per cent locked out in rural areas compared to 44.6 per cent in urban areas. At the media workshop on Saturday, Mr Nungu said the Tanzania Communications Regulatory Authority (TCRA) was working closely with stakeholders to ensure a majority of Tanzanians afford smartphones to access internet. “The government wants an inclusive digital economy that will ensure all people from all walks of life including the marginalised have access to the internet,” he said.
Real impact of Covid-19 on Tanzania’s economy (The Citizen)
The impact of the Covid-19 pandemic may have been played down in the past. However, available data shows that it has had devastating outcomes on a number of economic aspects. According to the quarterly economic bulletin of the Bank of Tanzania (BoT), growth of credit to the private sector by commercial banks dropped to 2.3 percent in March 2021, largely due to the impact of the Covid-19 pandemic on demand and supply of various products. “The pandemic-related impact disrupted demand and supply channels of some of the economic activities, particularly those directly exposed to external sector shocks.”
Why Tanzania needs to invest more into avocado production (The Citizen)
According to a 2019 study by Tanzania Investment Centre (TIC) and East Africa Trade and Investment Hub, avocado has been transformed to be an important earner of forex for Tanzania and a source of edible oil. A long time ago when our farmers started planting coffee, tea, sugar and other cash crops, it was the analogue era. There was no internet. But today, as our farmers take up avocado farming, it is the digital era. How our farmers going to take advantage of the development of science and technology? Traditionally, our farmers make no money or make very little in the agriculture value chain. Mostly, it’s because as they work on their farms, it is always a game of chance. But there are modern farmers in Tanzania, especial the investors, if they plant beans, they know where to sell them and some had already secured a contract.
African regional and continental news
Considerations for rules of origin under the African Continental Free Trade Area (Journal of African Trade)
Rules of origin are used to determine a product’s eligibility for preferential tariffs under a free trade agreement and have major implications for the extent of trade under the agreement and the growth of regional value chains. Firms choose to comply with rules of origin when the benefits of trading under an agreement, determined primarily by the preference margin, are higher than the costs of complying with rules of origin, determined by the costs of sourcing products from within the free trade area and from the costs of certifying that products comply with rules of origin. In addition, as there is a fixed cost component of complying with rules of origin, compliance is more likely when trade volumes are large. Negotiations for rules of origin under the African Continental Free Trade Area (AfCFTA) are complicated by the diverse rules of origins used in Africa’s many regional economic communities. We analyze preference margins, the availability of intermediate inputs, trade volumes, and potential certification costs in Africa.
The AfCFTA can change the circumstances of millions of African SMEs (Bizcommunity)
With all the challenges that the Covid-19 pandemic has presented to Africa, there are many exciting changes afoot, and few are potentially more impactful than the African Continental Free Trade Agreement (AfCFTA). While the Covid-19 pandemic has thrown a harsh spotlight on the vulnerabilities of global supply chains, the putting in place of the AfCFTA agreement couldn’t be more timely for Africa. AfCFTA is a catalyst for new ways of doing business, producing, working and trading within Africa and with the rest of the world. It highlights the significant and increasing commitment of the African Union to reducing poverty through trade.
The AfCFTA can play the role of unlocking innovation, growth and productivity across the continent, but significantly, for its SME segment, by translating spending power into economic development. Cutting red tape and simplifying customs procedures could bring significant income gains for SMEs. By improving their ability to quickly scale up using digital skills, SMEs have the chance to capitalise on the potential trade boom.
African industrialisation, intracontinental trade can lead to employment boom (IT-Online)
Africa has the opportunity to follow in the footsteps of Asia’s manufacturing giants over the next decade, using industrialisation as a strategy to uplift millions of people from poverty and create jobs for its burgeoning young population. In doing so, it could reinvent itself as the world’s next production powerhouse. That’s according to Vinny Perumal, CEO of KAS Africa, who says that the manufacturing sector holds the key to unlocking the economic potential of South Africa and the wider continent, with the continent’s young population emerging as an asset in a changing world.
“According to the International Labour Organisation (ILO), over one in five African young people were not in employment, education or training (NEET) in 2019,” she says. “Furthermore, half of the countries among the top 10 for the highest rates of youth unemployment are in Africa, with South Africa topping the list.
The NAFTA mistakes that Africa’s largest trade agreement can avoid (Yahoo Finance)
Ultimately, free trade can improve the economic standing of a country by improving the GDP and income per capita over time. For those reasons and more, the North American Free Trade Agreement (NAFTA), which eliminated most tariffs between Canada, Mexico, and the US, remains one of the most instructive trade agreements in the past two decades.
The trade deal also established health safety and industrial standards to facilitate the manufacturing and movement of goods; liberalized financial markets to increase investment opportunities; and expanded intellectual property rights. But for the potential benefits of AfCFTA to be realized, stakeholders – signatory countries, public and private development actors, and third-party governments and multinational corporations – should avoid the mistakes signatories made when they signed up to NAFTA in 1994.
Summit on the Financing of African Economies
Macron hosts summit with African leaders to counter economic impact of Covid-19 (France 24)
French President Emmanuel Macron Tuesday hosts African leaders and chiefs of global financial institutions for a summit meeting that will seek to provide Africa with critical financing swept away by the Covid-19 pandemic. Africa has so far been less badly hit by the pandemic than other global regions – with a total of 130,000 dead across the continent. But the economic cost is only too apparent, with the International Monetary Fund warning in late 2020 that Africa faces a shortfall in the funds needed for future development – a financial gap – of $290 billion up to 2023. A moratorium on the service of public debt agreed in April last year by the G20 and the Paris Club, a group of creditor countries that tries to find sustainable solutions for debtor nations, was welcomed but will not be enough on its own. Many want a moratorium on the service of all external debt until the end of the pandemic.
Africa-France Relations: How Beneficial To Africa? (Global News Network)
The aim of the Summit, according to its convener, French President Emmanuel Macron, is to mobilize financial resources to revive the economy of African countries. Africa is not worse off, but there is the fear that given its weak and poorly-resourced health systems, the situation could worsen. It is also projected that Africa’s GDP could experience its first recession in 25 years in 2021.
Economic recovery and COVID-19 might sound persuasive and topical subjects, yet Africa-French relations, usually evoke controversies relating to colonial legacies and imperialism, conditional aid, and the Franc CFA currency, which remains a divisive issue. There is also a moot point over the criteria used for inviting attendees to the summit.
Macron and Africa: the good, the less good and the dangerous (The Africa Report)
France is at the forefront of a change in discourse on the continent. This is because of its insistence that Africa must be treated as a common geopolitical entity while taking into account its diversity. The French Development Agency (AFD) has thus ripped up the country’s common practise of dividing the continent into ‘Sub-Saharan Africa’ and North Africa. Paris’s handling of the conflicts in Libya and the recent succession dilemmas in Chad demonstrate a pragmatic and – therefore – refreshing understanding of intra-African dynamics.
But old habits die hard. Although the growth of French foreign direct investment (FDI) in Africa has been remarkable over the past five years (it increased tenfold in value between 2000 and 2017 according to the Treasury), this boom has benefited too few sectors of the future. Most of the FDI remains destined for fossil fuels (47% of the French FDI stock in Africa in 2017) and the traditional trade in raw materials.
Macron cancels debt to help ‘inspirational’ Sudan (Eyewitness News)
President Emmanuel Macron on Monday said France would cancel almost $5 billion in debt owed by Sudan, hailing the African nation as an “inspiration” in its transition after years of authoritarian rule. Macron hosted Sudan’s new leadership and other key African figures for a summit in Paris aimed at boosting Prime Minister Abdalla Hamdok’s drive for economic reform and investment. The French leader made clear the biggest priority for making progress would be to rid Sudan of its “burden” of debt, which amounts in total to some $60 billion, adding that he hoped other creditors would follow suit.
On Tuesday, a Paris summit on African economies will try to fill a financing shortfall of almost $300 billion caused by the COVID-19 pandemic. Both meetings, held in a temporary exhibition centre near the Eiffel Tower, present a chance for Macron to show himself as a statesman on Africa whose influence goes beyond the continent’s Francophone regions. The meetings mark a return to in-person top-level gatherings after the COVID-19 pandemic made video conferences the norm.
Finance in Common Summit Spring Meeting: Joint Declaration of African Public Development Banks (AfDB)
We the undersigned African Public Development Banks gathered today for the Spring meetings of the Finance in Common Summit, commit to supporting African heads of state and international organizations to finance the needed transitions and transformation of African economies. In the context of the Covid-19 crisis recovery, our efforts will center on achieving sustainable, resilient and equitable development.
African countries are facing a huge investment gap. At the same time, they must address their debt service payments, which weigh significantly on their ability to finance their development programs. African countries should be enabled to face this debt challenge in order to help preserve financial stability on the continent.
All regions of the world have developed their economies by relying strongly on their local resources. Strengthening African financial institutions is a prerequisite for the success of all international measures taken to provide financing to African economies. Reinforcing African public institutions will lead to the emergence and strengthening of a robust local private sector, and consequently mobilize national, regional and international investments.
SADC must do more to ensure equitable vaccine access in Southern Africa (Daily Maverick)
It is crucial for the SADC to encourage all member states to develop, publish and promote national vaccine acquisition and roll-out plans and procurement strategies, detailing concrete measures to ensure non-discriminatory access to vaccines to all in the region. “Although progress is being made, many African countries have barely moved beyond the starting line. Limited stocks and supply bottlenecks are putting Covid-19 vaccines out of reach of many people in this region. Fair access to vaccines must be a reality if we are to collectively make a dent on this pandemic.” – Dr Matshidiso Moeti, the World Health Organization (WHO) regional director for Africa
EAC Secretary General and German Ambassador sign Financing Agreements worth US$65 Million (EAC)
New momentum for cooperation between the East African Community and the Federal Republic of Germany following the signing of two Government Agreements thus paving the way for the implementation of projects of a total volume of US$65 million in the areas of health, digital skills and water resources management.
With a view to the current Covid-19 pandemic, that also hit hard Eastern Africa, H.E. Regine Hess, Ambassador of the Federal Republic of Germany to the United Republic of Tanzanian and the EAC promised that Germany will commit additional funds of up to US$6.6 million for pandemic preparedness and response in 2021, to be implemented through existing EAC-German programmes on pandemic preparedness, economic integration and digital skills.
In order to strengthen digital skills and innovation in East Africa, the Secretariat and Germany further agreed on the implementation of the project “Digital Skills for an Innovative East African Industry” that builds on the results of the project “Centre of Excellence for ICT in East Africa”. The new phase (USD 6 million) strengthens digital skills of especially young women and men from all six EAC Partner States to strengthen their employability and innovation capacities.
Risks and challenges in Africa’s COVID-19 vaccine rollout (WHO)
Africa’s largest-ever vaccination drive is well under way. Forty-nine African countries are rolling out COVID-19 vaccines and over 22 million doses have been given on the continent. Valuable lessons are emerging, but major risks and challenges threaten Africa’s fragile gains.
“We’re in a very tough spot when it comes to supply,” says Dr Richard Mihigo, World Health Organization (WHO) Africa’s Immunization and Vaccines Development Programme Coordinator. “What is crucial for Africa is that we urgently use all the doses we have to protect our most vulnerable populations.”
In some African countries, a lack of funds is already causing delays in addition to a lack of vaccinators, sub-optimal training, weaker communications to boost the uptake of vaccines and an inability to capture crucial data or to print and distribute immunization cards. “Commitment and domestic resourcing is crucial,” says Dr Phionah Atuhebwe, WHO Africa’s New Vaccines Introduction Officer.
Are African banks ready to take on the trade-finance market? (The Africa Report)
When a European or Chinese turbine exporter wants to be sure that he will be paid by his African client – who also wants to know if the goods are on the boat – or when a Kenyan flower producer wants reassurance that they have been paid by the Amsterdam-based wholesaler who wants to be certain that the roses are on the plane, they turn to their banks. One bank for the importer, another to the exporter and a third ‘confirming’ bank issues and guarantees the letters of credit, document collection, etc.
Invest Africa and Absa Group announce strategic collaboration (Africanews)
Invest Africa, the leading business and investment platform for African markets, and Absa Group, one of Africa’s largest diversified financial services groups, are pleased to announce a strategic collaboration, aimed at supporting the development of business and investment on the continent, and the growth of Absa Group as a leading African retail, corporate and investment bank. The new alliance combines Absa Group’s position as experts in providing a gateway to opportunities in Africa, with Invest Africa’s well-established network, in order to promote trade and investment across the African continent.
Youth are Africa’s best asset; invest in them – African Development Bank President Adesina (AfDB)
Africa’s underinvested youth are in need of urgent attention and youth entrepreneurship investment banks must become the focus of global support, the African Development Bank head Dr. Akinwumi A. Adesina said Monday in a discussion on scaling up financing for the continent’s youth. With lack of access to finance a serious bottleneck, the proposed youth entrepreneurship investment banks would coordinate financial and non-financial actors and partners to more effectively support youth entrepreneurs.
Research suggests that Africa needs to create 18 to 30 million jobs annually through 2030, and Ladi Balogun, CEO of First City Monument Bank Group, reiterated the urgency of this challenge. He said time was of the essence in terms of mounting a response as well as accelerating decision-making processes for the extension of financing to entrepreneurs. He also advised working through local money managers to achieve scale. “We have a ticking time bomb on our hands,” Balogun said.
U.S. Tax Policy Can Help Africa’s Fight Against Illicit Financial Flows (Foreign Policy)
As a U.S. presidential candidate, Joe Biden declared that he would “lead efforts internationally to bring transparency to the global financial system, go after illicit tax havens, seize stolen assets, and make it more difficult for leaders who steal from their people to hide behind anonymous front companies.” Perhaps nowhere will his intervention be more welcome than in Africa.
Stemming illicit financial flows and returning stolen assets are therefore a top priority in countries across the continent eager to finance domestic development. It would be extremely beneficial for Africa if Biden were to make the fight against illicit financial flows a core component of U.S. Africa policy.
The United States would benefit from supporting Africa’s fight against illicit financial flows. The U.S. government will commit fewer financial resources and security personnel to tackling insecurity in Africa when the financiers of conflicts and terrorism on the continent are starved of access to illicit funds. The U.S. government will also spend less on foreign aid to a more economically independent Africa and will see reduced illegal immigration from the continent.
International aid to Africa needs an overhaul. Tips on what needs to change (The Conversation CA)
Many African countries still rely heavily on foreign aid. However, several studies have shown that foreign aid has failed to deliver sustainable economic growth and poverty reduction. The fact that foreign aid as currently practised has failed to achieve its poverty reduction targets in Africa is clear from the data. Over 75% of the world’s poor live in Africa today. In 1970 the figure was 10%. Some forecasts suggest it could rise to 90% by 2030. Africa is the only continent in the world where official aid inflow outstrips private capital inflow by a large margin. This is problematic since no country in the world has achieved substantial development based on reliance on aid. This points to the need for reform.
AU priorities on Gender Equality and Women’s Empowerment in Agenda 2063 (The East African)
Africa has noted that despite positive achievements registered recently in decision-making, women, as the largest proportion of our population; remain vulnerable, at-risk and impoverished due to the challenges caused by social, economic, cultural and political marginalisation, gender-based violence and discrimination against women, terrorism, conflict, and fundamentalism. Under Agenda 2063 and continental, regional and national Gender Architectures, it is envisaged that there will be gender equality in all spheres of life and engaged and empowered youth. Women are key contributors to global economies and play a critical role in the development of their societies. Without the equal and effective participation of women in all spheres of socio-political and economic life, the vision of Agenda 2063 might not be realised.
Global economy
UNCTAD LDC Report: putting productive capacities first (Trade 4 Dev News)
Expanding and diversifying productive capacities will better position least developed countries (LDCs) to tap the financing and e-trade opportunities that will underpin their Covid-19 recovery. This was a recurrent theme in the United Nations Conference on Trade and Development (UNCTAD) Least Developed Countries Report 2020, which cautioned however that the international community must first rally with resources, policy space and better international support measures.
Productive new negotiating round for an investment facilitation agreement (WTO)
At a negotiating meeting of the structured discussions on investment facilitation for development on 11-12 May, participating members made good progress, with a view to achieving a concrete outcome at the 12th Ministerial Conference at the end of the year. Delegations addressed a number of provisions across several sections of the so-called Easter text, the consolidated document which serves as the basis for the negotiations.
WTO members look to MC12 outcome on trade finance (WTO)
Speaking at a meeting of the Working Group on Trade, Debt and Finance on 17 May, Director-General Ngozi Okonjo-Iweala encouraged WTO members to build on their discussions to develop a trade finance work programme in the run-up to the 12th Ministerial Conference (MC12). She emphasized the importance of trade finance for developing economies, particularly least-developed countries, and offered her support to the group’s efforts to catalyse trade finance support for those needing it the most.
Why the trading system needs even more multilateralism today (Observer Research Foundation)
Pandemic-induced economic challenges and trade uncertainties are not a threat but an opportunity to ‘multilateralise’ new and deeper trade integration in future WTO agreements. In many parts of the world, automation and technological advances have resulted in improved manufacturing output even as large parts of the workforce have been left without jobs. Without a safety net and programmes to equip workers with new skills, those who may have lost out on jobs to technological advancement and globalisation may grow discontent. Future advancements in digital technologies could also lead to a loss of white-collar jobs in advanced economies. It has been argued that the wide adoption of digital communication technologies during the COVID-19 pandemic could accelerate the trend towards more services sector jobs in competition with employees teleworking from abroad or software robots replacing particular office tasks. Crucial to addressing these challenges are domestic policies to enhance social protection, ease worker mobility, and ensure that the benefits of technological progress and globalisation are more widely shared.
Suez Canal starts dredging work to extend double lane (Engineering News)
The Suez Canal Authority (SCA) has started dredging work to extend a second lane that allows for two-way traffic in a southern section of the canal near to where a giant container ship got stuck for six days in March, it said on Saturday. The SCA announced this week that it was planning to extend a second canal lane that opened in 2015 by 10 km to make it 82-km-long, and would widen and deepen a single lane stretch at the southern end of the canal.
Key promoter of WTO reform (Chinadaily.com.cn)
This year marks the 20th anniversary of China joining the World Trade Organization. China is the largest beneficiary of the multilateral trade system, as well as the largest contributor to it. Over the past 20 years, China’s exports of goods have grown more than seven times, and its import volume has risen nearly six times. Last year, China’s export-import volume accounted for 12 percent of the world’s trade in goods.
China’s service exports accounted for 3 percent of the world’s total in 2005, and they increased to 6 percent last year. And its service import’s share in the world’s total rose from 3.3 percent in 2005 to 8 percent last year. China’s rise in the world trade system benefits developed economies, emerging markets, developing countries and the least-developed countries at the same time. China should and has the ability to play a special role in a positive way to promote the world trade body’s reform. Without China’s participation and support, no meaningful agreements can be reached within the current WTO framework.
China supports India’s patent waiver for Covid vaccine proposal (United News of India)
China on Monday voiced it’s support for waiving intellectual property protections for novel coronavirus vaccines to help developing nations suffering from the ongoing pandemic. “China fully understands and supports the developing world’s demand for an IPR waiver for COVID-19 vaccines,” Foreign Ministry spokesman Zhao Lijian said in Beijing. Asked about China’s stand on the issue, Zhao told reporters at a foreign ministry press conference that “China will continue to make a contribution to the fairness and accessibility of vaccines in developing countries.” The proposal has now been co-sponsored by Kenya, Eswatini, Mozambique, Pakistan, Bolivia, Venezuela, Mongolia, Zimbabwe, Egypt, the African Group, the Least Developed Countries Group, and most recently Maldives, Fiji and Namibia – a total of 60 WTO members.
The world is converging on the need for sustainable agri-food systems (FAO)
In a sign that food security and nutrition are increasingly seen as key vectors for sustainable development, the United Nations Commission on Population and Development (CPD) approved a resolution likely to enrich and intensify discussions at the upcoming UN Food Systems Summit. The agreement, as well as the UN Secretary General’s report to the Commission to which FAO made substantial contributions, span a vast array of themes – from the need to make healthy diets affordable to all and the importance of assuring income opportunities for all even as capital-intensive industry transformations may reduce the need for existing types of jobs and labor, to stopping illicit cross-border financial flows and the need for governance and ownership of big-data to make sure its benefits are available to all, including smallholders and marginalized people. The breadth of topics illustrates just how complex a task the shift to sustainable agri-food systems will be.
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National trade and trade-related news
Covid-19: Only 13% of small-scale farmers recovered (Food for Mzansi)
A shocking new survey reveals that while 63% of commercial-scale farmers are back to their pre-pandemic operational levels, only 13% of Mzansi’s up-and-coming farmers have managed to bounce back. This is according to the latest edition of the BeyondCovid Business Survey conducted by specialist management consultancy Redflank. “When we went into hard lockdown, with all the restrictions, they lost access to those markets. Because they don’t have the financial buffers large companies have, they were hit severely and are still struggling.”
“What doesn’t help is that many SMME off-takers of emerging farmers have been affected by the pandemic. The BeyondCovid survey has revealed that 54% of all small businesses surveyed were still operating below capacity. This impacts severely on emerging farmers, considering that SMMEs account for half their demand.”
Government prepares to implement the Forestry Master-plan (SAnews)
The Department of Forestry, Fisheries and the Environment has started to prepare for the successful implementation of the Forestry Master-plan, which will ensure the creation and sustainability of decent employment, long-term investment, and the transfer of skills and expertise to the next generation. Addressing the National Assembly on Friday during the department’s Budget Vote for the 2021/22 financial year, Deputy Minister of Forestry, Fisheries and the Environment, Makhotso Sotyu said the Forestry Master-plan is a formal implementation plan that has been endorsed by Labour, Industry and Government. “To prepare for a successful implementation of this Master-plan, the Ministry has begun with inspection visits to all our regional offices across the nine Provinces, to ensure that, our structure and reconfiguration of our department is in line with the governance structure as adopted in our Departmental Master-Plans. “We want to ensure that our Department has a human capital/work-force that always offer well trained and skills graduates, vocational training in the Forestry, Fisheries and Environment sectors.
Manufacturing bore brunt of Covid restrictions as sector’s output in 2020 declined by 19.6% (New Era)
The Namibian manufacturing sector declined by almost 20% last year as it bore the brunt of the impact of Covid-19 and associated lockdown measures. This means that during 2020, several local manufacturers were forced to stop or minimise operations. According to FirstRand Namibia Economist Ruusa Nandago, the impact was further compounded by a decline in demand for manufacturing products as personal and corporate incomes in the domestic economy became constrained. “This contraction makes manufacturing the third-worst performing sector during 2020 after hotels and restaurants, which contracted by 33.1% y/y, and transport and storage, which contracted by 22.4% y/y over the same period. Given that this sector contributes 11% to GDP, this had a material impact on overall economic performance,” Nandago noted.
Govt acquires N$1.8bn for sustainable development efforts (New Era)
Government this week signed a financial cooperation agreement for loans following the 2019 governmental negotiations on development cooperation between Germany and Namibia. At Tuesday’s signing, finance minister Iipumbu Shiimi stated that the agreement covers three programmes valued at approximately N$1.8 billion for which financing will be provided by interest-reduced loans in local currency, thereby securing favourable credit conditions for the government. “These projects will support the development of important water and other climate-related infrastructure projects in Namibia, and the promotion of agricultural households and micro, small and medium- sized enterprises through Agribank. The funding for the three projects under this agreement is provided by the KfW Development Bank,” he outlined. In efforts to boost infrastructure based on climate-friendly technologies in Namibia, about N$540 million will be provided to extend an existing credit line to the Development Bank of Namibia (DBN) for climate-related infrastructure projects in the country.
Kenya body behind maize ban stripped of its powers (The Citizen)
Kenya’s regulatory authority behind the recent ban on maize imports from Tanzania has been stripped of its powers. From now on, the Agriculture and Food Authority (Afa) will be removed from clearing maize imports. Kenya’s media reported early this week that the move was taken by Agriculture cabinet secretary Peter Munya. In removing Afa from the clearance chain, the regulator would have no powers to register maize at the border points. The measure, the ministry explained, would ease clearance of agricultural produce imports, among other things.
Museveni, Ndayishimiye Discuss Infrastructure Connectivity, Security Cooperation (Uganda Media Centre)
Évariste Ndayishimiye has said, with peace and reconciliation in Burundi, the country is going forward with economic transformation to improve peoples lives. “Now is a time for development to improve the lives of our people. We have natural resources; we are in a good region and we are good to do business with Uganda. We already see many Ugandans coming to Burundi. We want investors to come. We have many natural resources and tourism potential,” he said. According to the Minister of Foreign Affairs Sam Kutesa, trade between Burundi and Uganda increased from US40million dollars per annum to US59million dollars of exports from Uganda to Burundi, mainly for Iron and steel products, maize, tobacco vegetable oils and others while imports from Burundi to Uganda are US33.8million dollars largely from gold, raw hides and skins and scrap iron.
Uganda builds railway link to Kenya’s SGR (Business Daily)
Uganda has signed a Sh5 billion deal with a Chinese firm to revamp its century-old metre gauge railway line between Malaba and Kampala to create seamless travel from the Mombasa port. The 260 kilometre Kampala line will be linked to the standard gauge railway (SGR) track through the Naivasha to Malaba old railway, which Kenya is upgrading. Once completed, goods from the Mombasa port will be transported seamlessly via SGR and metre gauge rail to Uganda. The renewed focus on the metre gauge line in the country now dims hopes of fast-tracking the Chinese-funded SGR, which was expected to reach Kisumu by 2022 and link it to a sea port for shipping to Uganda.
In a recent state visit, Burundi failed to explain why it blocked Ugandan goods (The New Times)
On Friday, in a press conference at the airport in Bujumbura after a three-day visit to Uganda, Burundian President Evariste Ndayishimiye announced that Uganda and Burundi will be using a new trade route via Tanzania. In a carefully worded declaration, he alleged that Rwanda (calling it a neighbour) blocked trade between Uganda and Burundi. In reality, Burundi blocked all goods and transit goods through the Rwanda-Burundi border. At the start of the Covid-19 pandemic in the last week of March 2020, Burundi refused all entry from Rwanda, including transit goods and passengers, through its land border crossing points. The move created gridlock in the EAC Northern Corridor (Burundi-Rwanda-Uganda-Kenya) and a diplomatic protest from Uganda and Kenya. With Burundi-bound cargo trucks stuck at the Rwanda-Burundi border, Rwanda logically advised Uganda and Kenya of the development asking them to seek alternative routes.
Available diplomatic notes verbal show that on the 31st of March 2020, Rwanda informed Kenya and Uganda of a blockade of goods heading to Burundi by Burundian officials. In the notes, Rwanda explained that as of the 30th March that year, there were 23 trucks stranded in Rwanda heading to Burundi despite an earlier EAC Ministerial meeting about transport of cargo goods during the Covid-19 outbreak. Effectively, Burundi sealed off its land border with Rwanda.
First ship docks at Lamu Port on Thursday ahead of launch (Business Daily)
Lamu Port will on Thursday come to life as 204-metre long Mv CAP Carmel, a Denmark-based shipping line, with general cargo from Port of Dar es Salaam, docks on its way to Salalah in Oman. Mv Seago Bremen Haven loaded with avocado from Mombasa will dock a few minutes later in an event expected to be graced by President Uhuru Kenyatta and other East and Horn of Africa leaders. The Kenya Ports Authority (KPA) Captain Geoffrey Namadoa said MV CAP Carmel sailing under flag of Singapore is a geared vessel and will be able to load and offload without the use of harbour cranes. “According to manifest, we expect to handle 100 containers on the first day in Lamu Port, which will be used to test local road connectivity, which is already complete. Lamu Port is strategic geographically positioned and it will give competition to already developed ports such as Durban,” said Mr Namadoa. Kenya will this week (May 20) commission the Sh310 billion Lamu Port in its quest to wrest the transshipment market from Djibouti and South Africa.
Lessons from Kazungula bridge (NewsDay)
The Kazungula bridge shows what Southern Africa Development Community (Sadc) countries can achieve if they work together. On May 10, the Kazungula bridge, a road and rail bridge over the Zambezi River between Zambia and Botswana was officially opened for traffic. Construction of the $260 million project, which includes international border facilities in Zambia and Botswana, started in October 2014 co-financed by the Japan International Co-operation Agency (JICA) and the African Development Bank (ADB). The bridge, which comes with one-stop border facility, is seen as a major development towards improving regional trade and economic integration. However, its construction and official opening were not without controversy, thanks to the capriciousness of Zimbabwe. Notwithstanding Zimbabwe’s attitude, the Kazungula bridge is a good example of how Sadc countries can co-operate and do more to unleash the economic potential of its member States.
A troubled bridge over calm waters (Mmegi Online)
Apapa Traffic Gridlock May Hurt AfCFTA’s Gains, Operators Warn (THISDAY Newspapers)
Some members of the organised private sector (OPS) have decried the lack of political will to address the perennial traffic congestion around the Apapa ports, saying the gridlock could hurt the expected gains from the African Continental Free Trade Area (AfCFTA) agreement. Speaking in separate interviews with THISDAY, they stressed that the challenges associated with moving cargoes in and outside the ports could defeat the federal government’s desire to diversify the economy and affect the expected benefits from Nigeria’s participation in the AfCFTA agreement. Traffic has worsened in Apapa and its environs in the past few weeks following the disruption of the electronic call-up system (ETO) introduced about two months ago by the Nigerian Ports Authority (NPA) with the support of the Lagos State Government to ensure free flow of vehicular movements.
But the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, told THISDAY yesterday that, “if the Apapa traffic gridlock continues, our international trade process stands the risk of being completely paralysed. “The Apapa corridor accounts for an estimated 70 per cent of international merchandise trade- imports and exports. Therefore, this portends disturbing signals for the outlook for Nigeria’s participation in the AFCFTA. It is impossible to undertake any meaningful trade without an efficient maritime logistics chain.”
Egypt plans expansion of Suez Canal (The Africa Logistics)
The southern section of the Suez canal where Ever Given wedged sideways, blocking a key waterway and causing billions of dollars’ worth of damage to global trade will be expanded, head of Suez Canal Authority (SCA), Osama Rabie has said. Under the expansion project, the southernmost area of the canal, which is currently 30m long, will be widened by about 40m to the east. The expansion will take around two years, Rabie said.
Executive framework of African Economic Integration Initiative finalised: FEDCOC (Daily News Egypt)
The executive framework of the African Economic Integration Initiative has been finalised, according to Ibrahim Al-Arabi, President of the Federation of Egyptian Chambers of Commerce (FEDCOC). Al-Arabi added that the first phase will begin with the launch of a new website that offers investment opportunities and joint projects. This comes as part of the optimal exploitation of Africa’s natural resources, and will also present opportunities for developing intra-African trade in an integrated framework. He said that the volume of imports to African imports amounted to $564bn from 231 countries, while the volume of African exports is estimated at $452bn to 223 countries. The value of intra-continental trade is about $70bn annually, which represents 15% of the value of African trade.
It’s now easier to cross border at Namanga; few hurdles remain (The East African)
Resolution of existing trade barriers between Kenya and Tanzania may take longer than expected due to bureaucracy. The directive by presidents Samia Hassan and Uhuru Kenyatta that government officials waive work permit fees and clear maize imports from Tanzania took effect almost immediately, but Kenyan small-scale traders say they waiting for a similar gesture from Tanzania. Mr Munya went to Namanga to effect the presidential orders as a sign of the warming relations between the two largest EAC economies. Mr Munya also ordered that Covid-19 test results be released within 12 hours to enable fast movement of trucks across the border. This was in response to President Samia, who during her state visit to Nairobi requested that Covid-19 testing be harmonised to facilitate faster movement of goods. “We want the trucks ferrying goods across the border to move with speed, as this will assist increase the EAC Intra-trade,” said EAC Secretary General Dr Peter Mathuki.
Brexit trade bonanza: UK eying ‘absolutely huge’ Nigeria deal (Express.co.uk)
Helen Grant, trade envoy to Nigeria and Tory MP for Maidstone and The Weald, said the UK was on the cusp of an ambitious era of trade with the major African state. Nigeria is Africa’s largest and fastest-growing economy and is being targeted by the UK for an ambitious trade agreement. Due to its economic size, Ms Grant claimed there were wide opportunities to increase UK plc in multiple areas such as tech, financial services, agriculture and green technologies. Speaking to Express.co.uk, Ms Grant revealed any future deal may well surpass the current £3.4billion in trade between the UK and Nigeria.
200 mln-birr bus terminal starts operation (The Reporter Ethiopia)
The new Mercato Bus Terminal built with an outlay of 200 million birr begins operations as of today, according to the Addis Ababa City Administration Transport Bureau. The unique bus terminal named after Mercato – the largest open market in the country – is said to be the most convenient bus terminal only hosting Anbessa and Sheger city buses. Head of communication affairs at the transport bureau, Aregawi Maru, said that the latest facility is different from existing terminals in that it is not only an arrival and departure center for commuters, but also owns two story floors to host up to 20 buses at a time, which is a higher number than what the existing terminals could accommodate.
Algeria to reopen borders after year-long closure (Eyewitness News)
Algeria announced Sunday it plans to resume international flights from June 1 following a more than year-long closure of its borders to curb the spread of COVID-19. “The council of ministers approved proposals for a partial reopening of Algeria’s land and air borders at the start of June,” the presidency said in a statement after a cabinet meeting.
Ghana: IMF Staff Mission Concludes 2021 Article IV Discussions (IMF)
Ghana has managed very effectively the COVID-19 outbreak in the country, and thus succeeded in protecting lives… The launch of mass vaccine rollout has been a breakthrough, with the administration of approximatively a million doses as of end-May. The impact of the pandemic on the economy has been severe. Real GDP growth slowed to 0.4 percent in 2020 from 6.5 percent in 2019, due to lower activity in the extractive industries and a collapse in hospitality and retail services, including the informal sector that especially employs female workers.
The 2021 budget’s recent policy pivot towards fiscal consolidation is an important step in the right direction and a difficult one in a pandemic. Fiscal consolidation should be deepened and anchored around debt and debt service reduction to create space for social, health, and development spending.
Boom times for organic cocoa in Côte d’Ivoire (CGTN Africa)
Cacao farmers across Côte d’Ivoire, the world’s biggest producer of the key ingredient for chocolate, are down in the dumps after prices for their commodity have fallen for the second year running. Cacao growing was massively promoted by Côte d’Ivoire’s government following independence in 1960, becoming the backbone of the country’s rise as one of West Africa’s leading economies. Today, Côte d’Ivoire produces two million tonnes of cacao per year, equivalent to more than 40 percent of the world’s market. But expansion has also come at a grim price for the environment and fuelled a dependency that ratchets up rural poverty whenever prices slump.
Govt committed to re-engagement (sundaymail.co.zw)
Government remains committed to pursuing its policy of re-engagement with erstwhile adversary nations while continuing to build strong alliances with friendly states in order to position the country in its rightful place in the community of nations, Foreign Affairs and International Trade Minister, Ambassador Fredrick Shava, has said. In an interview with The Sunday Mail after his inaugural interface with editors from local and international media organisations in Harare on Friday, Ambassador Shava, said the country was pursuing readmission into the Commonwealth as part of the re-engagement process. “We are very committed and we are still pushing to re-join the Commonwealth and other international blocs that we had left or did not enjoy good relations with in the past,” said Ambassador Shava. “But we are not desperate, it’s a bilateral process which requires effort from both sides and we are doing this in a true spirit of friendship.
AfCFTA: Revamping Nigeria’s Infrastructure for Global Trade (Proshare Nigeria)
The African Continental Free Trade Area (AfCFTA) could deliver an additional $500 billion worth of economic growth to Africa, a tremendous opportunity for Nigeria to generate jobs and boost foreign exchange earnings. But more export-oriented and more industrialised African economies like Morocco, South Africa and Kenya also pose a big threat to Nigerian firms and jobs. While Nigeria’s exports consist overwhelmingly of oil (87%), Morocco’s top five exports are Electrical machinery and equipment (18.1%), Vehicles (13%), Fertilizers (9.9%), Clothing accessories (8.3%) and Inorganic chemicals (4.9%), complemented by agriculture exports such as fish, vegetable, fruits and nuts.
The event will be an interactive conversation between policy makers, exporting conglomerates, SMEs and financiers and investors in infrastructure with a view to generating ideas on new ways to build, finance and maintain export-critical infrastructure. It will underscore the potential of infrastructure related policy reforms to diversify and boost Nigeria’s exports, create jobs and reduce poverty.
African regional and continental news
International summit will seek ways to ease Africa’s economic woes (Manila Standard)
French President Emmanuel Macron will on Tuesday host a virtual summit of European and African leaders to seek solutions to the financial crisis in Africa, where governments hope to boost development while managing massive debts. The “summit on financing African economies”, bringing together 30 heads of state and government via videoconference, was planned last year after the International Monetary Fund calculated that African economies risk running into a total “financial gap” of $290 billion by 2023.
Economic growth on the continent, which experienced its first recession last year, is expected to rebound to 3.4 percent this year and 4.0 percent in 2022. A moratorium on debt servicing, put in place in April 2020 by the G20 and Paris Club group of creditor nations, has given Africa a bit of breathing space, suspending the repayment of 5.7 billion euros ($6.9 billion) by 50 countries. The G20 also convinced China, by far the biggest bilateral lender on the continent, and private creditors to take part in future debt negotiations. But this won’t be enough. “We are collectively in the process of abandoning Africa to solutions that date from the ‘60s”, Macron said last month, calling for a bold “New Deal” for Africa.
The Covid-19 pandemic has exacerbated the problems on the continent. Although Africa has so far counted 130,000 deaths from coronavirus – behind most world regions – eighteen African leaders in mid-April warned that “only a total victory, including the whole of Africa, will bring this pandemic to an end”. Many have warned that developed nations are busily vaccinating their own nationals and leaving poorer countries behind. The African leaders called for an “immediate moratorium” on the servicing of all external debts until the end of the pandemic, and the ring-fencing of development aid.
Macron Hosts Africa Summits on Sudan, Post-Covid Finance (Asharq Al-awsat)
President Ramaphosa attends Financing of African Economies Summit (SAnews)
Angolan president to attend summit on African economy (Prensa Latina)
Kagame In France for Conference On Sudan, African Economies (KT Press)
AfDB, EBRD partner to unlock additional sustainable investment opportunities in Africa (Engineering News)
The African Development Bank (AfDB) Group and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding (MoU) to promote sustainable private sector development in Africa. The MoU is expected to help catalyse new sources of financing to help bridge the $2.5-trillion-a-year financing gap for development in Africa.
Ecommerce players step up their game to survive and thrive (Logistics Update Africa)
Early day ecommerce businesses in Africa were plagued by several challenges – starting with trust deficit from customers to patchy Internet to unreliable online payments infrastructure. Even if these issues were overlooked, the logistics of ensuring deliveries within the stipulated period was equally tricky. However, over the years, there has been a lot of innovation around the supply chain and payment mechanisms, which has been a silver lining for many economies in the region. A shot in the arm for the sector was the Covid-19 crisis, which opened up a plethora of new opportunities for players in this sector.
Digital revolution for boosting AfCFTA (Logistics Update Africa)
Achieving the gains from AfCFTA is especially important due to the Covid-19 pandemic. Covid-19 encouraged the adoption of technology; before the pandemic, transporters still preferred the use of paper for invoices and because of social distancing policies, there is a spike in automated invoices. To make the trade seamless, digital platforms are becoming an important module for facilitating an uninterrupted supply chain.
Achieving the gains from AfCFTA is especially important due to the Covid-19 pandemic. To make the trade seamless, digital platforms are becoming an important module for facilitating an uninterrupted supply chain. Under the direction of the Digital Hub Logistics, European and African digital innovation hubs have come together in the DIGILOGIC project, to exchange best practices and learn from each other - in the first pan-European-African network with a focus on intelligent logistics solutions. The H2020-funded project kicked off in January 2021 and will last three years, till the end of 2023.
COLLECTIVELY ENDORSES an adapted joint continental strategy with focus on enhanced Prevention, Monitoring, and Treatment (PMT) in order to meet the changing dimensions of the COVID-19 on the continent as well as the evolving nature of the global pandemic.
ALSO CALL UPON AU Member States to take up their COVID-19 vaccine allocations through the African Vaccine Acquisition Task Team platform and engage with the African Export Import Bank to work out the details for the advance purchase agreement.
ALSO WELCOMES the United States of America’s support for the World Trade Organization (WTO) waiver proposal and ENCOURAGES other countries to join the AU and the USA in making the right decision, by supporting the WTO TRIPS waiver.◊ ACKNOWLEDGES that the WTO waiver proposal is the first important step to expand manufacturing of COVID-19 related tools including vaccines, and a relevant initiative to ensure truly equitable access to vaccines, medicines and tools during the pandemic.
ENCOURAGES all countries, including those manufacturing vaccines and relevant COVID-19 tools, to fulfil the promise of vaccine equity, by ensuring that the WTO waiver is accompanied by the necessary and relevant transfer of technology and know-how to support and secure African manufacturing.◊ ENDORSES and supports the Africa Common Position on COVID-19 Passport, which calls for a global moratorium against the mandatory and unilateral imposition of COVID-19 vaccine requirements for international travel whilst encouraging the continued development of digital vaccine wallets and related technology tools, especially those based on the African Union Trusted Vaccines toolkit, to maximise the benefits of vaccination to the African public.
APPEALS to all AU Member States to leverage harmonized continental digital technologies for the response to COVID-19, including for addressing its socioeconomic impact, paying particular attention to digital inclusion, patient empowerment, data privacy, and security, legal and ethical issues, and the protection of personal data, which are values enshrined in the official African Union Trusted Health framework, and its digital archetypes: the Trusted Travel and Trusted Vaccines (platforms, provided at no cost to all member states to drive the digitization of their COVID-19 response efforts.
African Ministers of Health endorse and support Africa Common Position on Covid-19 passport (MyJoyOnline.com)
COVID-19: Africa Needs To Break The Circle Of Dependency – Interview (Eurasia Review)
Africa Vaccine Manufacturing Initiative (AVMI) primarily aims at promoting the establishment of sustainable human vaccine manufacturing capacity in Africa. Since its establishment, AVMI together with multiple and different partners, have been advocating for the establishment of vaccine development and manufacturing in Africa. With the outbreak of coronavirus, AVMI has embarked on public education on the risk of the pandemic and further been persuading African leaders about the need to seriously prioritize the manufacturing of vaccines instead of depending on external supply. In this snapshot interview, Patrick Tippoo, Executive Director at the Africa Vaccine Manufacturing Initiative, explains that vaccine manufacturing is a complex, time-consuming exercise requiring considerable commitment, and financial as well as technical resources. He further underscores the fact that the capital investment required is considerable and equally essential is a long-term future view for the health system and population in Africa.
President Akufo-Addo to grace opening of PAP Session (DIRCO)
H E Nana Addo Dankwa AKUFO-ADDO, President of the Republic of Ghana will be the Guest of honour and keynote speaker at the Opening Ceremony of the Fourth Ordinary Session of the Fifth Parliament of the Pan-African Parliament (PAP). The ceremony is scheduled to take place on 24 May 2021 at the PAP precincts in Midrand, South Africa. “President Akufo-Addo’s initiative to reconnect African Americans to the continent was poignant and it is a continuation of Ghana’s history of a Pan-African movement which is central to the progress of Africa and Black people in general. His presence at the next ordinary session, as we commemorate Africa’s culture and heritage, is fitting. We look forward to his message on unity for the social, economic and political progress of the continent as well as the importance of the continent growing together, charting and redefining its own way,” says Hon. Charumbira.
How to turn around a continent (Fin24)
An effective Marshall Plan for Africa should concentrate exclusively on business development. As with the original, the business sector must lead it. Administrators and decision-makers should, once again, be drawn from that sector – present in flesh and spirit. Like the original, the plan should focus on business infrastructure. In Africa, that would mean not just hardware – upgrades in electricity distribution, telecommunications and transportation – but also a sort of software. This software would include financial institutions, business schools and associations, anti-corruption units and courts – all of which must be improved or created in most African countries to enable their business communities to expand.
Whilst Covid-19 has had a significant impact on the economic fortunes of the AU, the fact that economic integration is progressing under AfCFTA and that international organisations are providing support, will likely fuel investor confidence in the long-term prospects of the region. Thereby accelerating intra-African trade and boosting Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations.
Harmonise all business laws to ease EAC trade (Business Daily)
The State visit by President Samia Suluhu of Tanzania to Kenya two weeks ago offers renewed hopes of increased trade between the two countries. There have been issues including allegations of discriminatory trade practices as well as non-tariff barriers to trade. It is hoped that the visit by the Tanzanian president is a sign of better times to come. World trade is moving away from protectionism and towards liberalisation which is enhanced by the removal of trade barriers between two countries, be they tariff or non-tariff. The East African Community (EAC) of which both Kenya and Tanzania are members, supports liberalisation and removal of trade barriers. The EAC Treaty and the EAC protocols especially the EAC Common Market Protocol contain very good provisions on liberalisation. However, there still exists a lot of non-tariff barriers. For the intention of the EAC Treaty to come to fruition, then these barriers to trade ought to be removed. There need to be proactive steps by all the member states to eliminate barriers and avoid trade-related spats.
EAC Economic Department must analyse linkages to achieve Regions Transformation (Uganda Media Centre)
President Yoweri Museveni has tasked the new East Africa Community Secretary General to ensure that the EAC economic department analyses linkages of job and wealth creation including in tourism that will strengthen and grow the regions integration. “The issue of market must be solved. Internal market is not enough, you need regional, African (continental) and international. How will people become prosperous? To be prosperous you need two things. You need wealth and jobs. But wealth in a modern way. If you got wealth like Masai of cattle and none monetary, that is traditional wealth but no money. How will you built a good house, buy a car without money,” he said.
Sadc agric sector beyond Covid-19 (Chronicle)
COVID-19 has affected global value chains by interrupting activity in three areas: transport and logistics, supply and production dynamics, and demand and consumption patterns. These effects have also been felt in the Sadc region across agricultural value chains, which comprise producers (farmers), suppliers (industries), distributors (transport and logistics) and consumers in the region.
Sadc agricultural value chains face a number of challenges to food security systems, intra-regional integration, trade and co-operation, and economic growth, chief among them being climate change, low levels of agricultural infrastructure development, poverty and food insecurity, the predominance of subsistence farming over export-oriented agriculture and, more recently, delays in the implementation of the AfCFTA. Although the agricultural sector in Sadc has largely been spared the negative fallout from Covid-19 compared to other sectors, the latter has still exacerbated existing challenges facing the sector. There are, however, opportunities for Sadc to build more robust and inclusive agricultural value chains. Importantly, small-scale subsistence farming needs to be supported along with export-orientated commercial farming, with the help of appropriate interventions.
Report lists green recovery plan for West Africa countries (Guardian Nigeria)
A fresh report on COVID-19 recovery plans has called on the Economic Community of West African States (ECOWAS) to champion a push for ‘win-win recovery’ that are underpinned by green economic thinking and efforts to address climate change. The report developed by the Society for Planet and Prosperity (SPP) implored the regional body to promote options that seek to address risks associated with the pandemic while building climate-resilient economies through investment in green innovation, renewable energy, transformative adaptation and biodiversity preservation as central parts of recovery plans by the members’ states. The group made the recommendations in a policy paper on Africa’s Post COVID-19 Green Recovery – Towards a Green and resilient recovery in West Africa: Nigeria and Ghana, which is being presented to help West African countries integrate climate change action as a central objective in the planning and implementation of their respective economic recovery plans to build back a safer, green and resilient economy towards achieving the Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs), Agenda 2030, and African Union agenda 2063.
Transforming agri-food systems can unlock Africa’s potential (Sierra Leone Telegraph)
Africa depends on its exports to the rest of the world of agricultural commodities such as cocoa, coffee, cotton, tobacco and spices to generate much-needed foreign exchange. But the continent is a net importer of staple foods such as cereals, vegetable oils, dairy products and meat. Intra-African agricultural trade as a percentage of total African agricultural trade consistently remains below 20 per cent, one of the lowest for any region. It is in agriculture where the AfCFTA’s ambitions can find the most fertile ground, in particular through developing inclusive regional value chains around priority commodities, led by a dynamic and diverse private sector of smallholders, commercial farmers, processors and service providers. Africa’s single market has the potential to create a positive, more competitive business environment for agriculture, encouraging further investments and ultimately a modern, dynamic, productive, inclusive, resilient and sustainable agriculture sector that can lift millions of Africans out of poverty.
Livestock Investment Master Plan (AfDB)
Agriculture is a major source of income in Africa, with 50-70% of Africans relying on agriculture for their livelihoods but the sector’s true potential remains untapped, limiting economic development and contributing to persistent poverty and deteriorating food and nutrition security across the continent. The continent is seeing demand for animal source foods increase rapidly as incomes rise, driven by population growth, economic growth and urbanisation, which offers an unprecedented opportunity to reposition livestock as a business activity with the potential to significantly improve food and nutrition security, drive inclusive growth, create millions of new jobs along several value chains and support the continent’s efforts to become a major player in global export markets.
GT Voice: China-Africa partnership is thriving amid West’s venom (Global Times)
China and Africa have seen rapid growth in bilateral collaboration in recent decades, and infrastructure is one of the most important areas, based on the essential need of the development of African economies and China’s world-renowned skills in building infrastructure. However, against the backdrop of the US-led Western nations’ indulging in vilifying cooperation between Africa and China, including playing up the so-called “debt trap” cliché, any projects with even a speck of participation from Chinese companies or institutions would draw attention from Western media and anti-China forces.
The truth is that the US, never giving up its hegemonic mindset, has tried all sorts of means to impede the development of China, including pouring cold water on China’s warming relations with other developing nations. The livelihood of African people is not on the list of the Washington’s overseas agenda, as the US has for decades looked down upon Africa and the people living there. Inversely, China has been joining hands with African countries, bringing tangible benefits to local folks. For instance, the 82 overseas cooperation zones jointly built by China and countries under the Belt and Road Initiative have created up to 300,000 local jobs, greatly boosting the development of local economies and the people’s livelihood.
Global economy
Getting trade policy right is crucial to global COVID-19 vaccination (East Asia Forum)
Trade is a crucial element in the fight against the pandemic. Some countries, such as China, have sought credit for providing vaccines to others, while cooperation via the COVAX initiative has seen vaccines shipped from India’s Serum Institute to some of the poorest countries in the world. But trade policy has also been a serious impediment to the free flow of vaccines, vital vaccine inputs and the knowledge behind their production. At critical times, several countries – including the United States, the European Union and more recently India – have placed embargoes or administrative impediments on the export of vaccines. Perversely, India has also had a 10 per cent customs duty on imported vaccines. Restrictions have also been placed on the materials needed for vaccine manufacture. In February, the invocation by the United States of the Defense Production Act – which requires US suppliers of materials and equipment for vaccine production to seek approval to export – put global access to 37 critical vaccine inputs at risk.
Ensuring the free flow of necessary inputs within the supply chain is vital to fostering global vaccine production. On 14 April 2021, WTO Director-General Ngozi Okonjo-Iweala met with government and industry representatives to discuss ways of strengthening supply chains. A guiding principle in facilitating trade will be the provision in GATT Article XI that any restrictions on export be temporary, noting that even a ‘temporary’ restriction can be highly disruptive within a complex global supply chain. More ambitiously – with a focus on facilitating cooperation rather than just avoiding restrictions – there may be scope to build on the Trade and Health Initiative proposed by a group of WTO members in late 2020. This would involve the establishment of an internationally coordinated program of fragmented and subsidised production of vaccine components.
The world economy is suddenly running low on everything (Engineering News)
A year ago, as the pandemic ravaged country after country and economies shuddered, consumers were the ones panic-buying. Today, on the rebound, it’s companies furiously stocking up. Copper, iron-ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. “You name it, and we have a shortage on it,” Tom Linebarger, chairperson and CE of engine and generator manufacturer Cummins, said on a call this month. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said. “They think it’s going to extend into next year.” Copper, iron-ore and steel. Corn, coffee, wheat and soybeans. Lumber, semiconductors, plastic and cardboard for packaging. The world is seemingly low on all of it. Clients are “trying to get everything they can because they see high demand,” Jennifer Rumsey, the Columbus, Indiana-based company’s president, said. “They think it’s going to extend into next year.”
Access denied: Ensuring vaccines for the world’s poorest countries (Trade 4 Dev News)
The COVID-19 pandemic has wreaked havoc on the fragile economies of the world’s least developed countries (LDCs). The ensuing global recession has led to a slump in external demand for goods and services from LDCs, reduced prices of key exports and constrained inflows of investment and other resources. With limited productive capabilities and diversification, LDCs generally lack the resilience to withstand the multiple economic shocks of the pandemic. In 2020, the combined GDP of the 47 LDCs declined by 5%, dropping from pre-pandemic estimates of US$1,057 billion to $1,003 billion.
LDCs do not have the financial resources to negotiate or pre-order vaccines from multiple suppliers, as done by many advanced countries. Their main sources of revenue – typically commodities exports, remittances and tourism income – largely dried up as a result of the pandemic, and financing constraints will remain a major challenge in the short-to-medium term due to the direct and indirect effects of COVID-19. Coordinated regional approaches can help LDCs to procure and administer COVID-19 vaccines. This requires effective collaboration between governments, international institutions, regulatory partners, donors and the private sector.
Ensure digital technologies are ‘a force for good’, Guterres says in message for International Day (UN News)
Although the COVID-19 pandemic has accelerated digital transformation across the planet, millions worldwide still lack Internet access, the UN Secretary-General said on Monday, highlighting why information and communication technologies (ICTs) must be “a force for good.” In his message for World Telecommunication and Information Science Day, celebrated annually on 17 May, the UN chief called for action to conquer both the pandemic and the digital divide.
Can the G7 Countries Create an Alternative to China’s Belt and Road? (The Maritime Executive)
Western nations have been critical of China’s outpouring of development capital in Africa under its Belt and Road Initiative (BRI), and have even urged African governments to avoid Chinese financing. With huge infrastructural investment gaps to cover, it has been imperative for Africa to seek a lenient development partner for its projects. Additionally, most African leaders – specially those with a history of corruption – normally shun the West’s Bretton Woods institutions (the World Bank and IMF), which tend to demand high accountability on their loan facilities. From mega-port investments in Kenya to profitable fish meal factories on the West African coastline, half of the 100-plus countries that are recipients of BRI investment are located in Africa. Indeed, the BRI’s flexible terms are a unique and an attractive proposition for the African politicians. BRI has placed China on a competing trajectory in the geopolitical scene against other global super-powers. However, can Western nations combine their efforts to rival the BRI?
UK foreign aid: where does the money go? (Thomson Reuters Foundation)
Britain has cut its commitment to foreign aid spending in 2021, pledging to spend 0.5% of gross national income, instead of the promised 0.7%. Foreign Secretary Dominic Raab in April outlined a breakdown of Britain’s development budget, with humanitarian aid mostly impacted. Aid groups say that reducing the aid budget would harm the world’s poorest, hinder climate action and damage Britain’s reputation as a leader in international development. “At a time when the UK should be leading the international community in responding to the climate crisis ahead of the climate summit, it is slashing aid to communities on the front line of that crisis. The UK’s hard-won reputation for international leadership in aid is in tatters.”
The EU carbon tax could create a new era of trade wars (EURACTIV)
Europe’s carbon tax, the Carbon Border Adjustment Mechanism (CBAM), is intended to target products with significant carbon footprints. Unfortunately, the implementation of this tax would have the effect of punishing developing countries, even driving them into environmentally harmful practices. But the requirements of the European Green Deal have been designed for wealthy, developed economies, not for nations that have few economic lifelines other than the products Europe is so concerned by. By pushing the Global South towards unrealistic standards, Europe will only push the Global South into less restrictive trade deals – deals that do not reward or incentivize environmental progress.
tralac Daily News
National trade and trade-related news
Small South African Businesses Set To Benefit From Import Ban (OkayAfrica)
The South African government plans to block certain imports to the country. The move to support the success of locally produced goods was officially confirmed by the Minister of Small Business Development Khumbudzo Ntshavheni. Ntshavheni pointed out that the international trade of specific goods needed to be regulated in order for South Africa’s small businesses to succeed.
According to Business Tech South Africa, Ntshavheni stated that they had reached out to the Department of Trade Industry (DTI) and had included working with the South African Revenue Services (SARS). South Africa’s open economy, according to the minister, has caused small business to compete with international companies for the sale and distribution of similar products. The DTI has subsequently been called to increase the privilege of local products to be between 80 and 100 percent. This would mean that goods from international companies cannot be from the same category as those produced by local businesses.
The strategy also includes SARS and customs ensuring that the stipulated regulations will be followed such that international products marked for 100% local production, do not make it inside the country. The Small, Medium and Micro Enterprise (SMMEs) industry has admittedly been battered by the COIVD-19 pandemic and the local market is desperate for a speedy recovery.
Cabinet welcomes R3 billion COVID-19 technology transfer (Cape Business News)
Cabinet has welcomed the R3 billion commitment, to transfer the latest technology for producing vaccines and biological therapies to South Africa, announced by Dr Patrick Soon-Shiong. Soon-Shiong, who is a South African born biotechnology entrepreneur, now based in the United States, announced this during a meeting organised by the World Health Organisation, on Wednesday. “Cabinet also appreciate the acknowledgement by Dr Soon-Shiong of South Africa’s advancement in the science, the human capital, the capacity and the desire to produce second generation vaccines to address variants of the Coronavirus that might make current vaccines less effective.”
PGM party: South African mining output leaps 21.3% year on year in March (Daily Maverick)
South African mining production shot up 21.3% year on year in March, Statistics South Africa (Stats SA) said on Thursday. It’s the biggest bounce in six years. Mineral sales for the month reached a record R75-billion, with 41% of that generated by platinum group metals (PGMs). Among other things, this bodes well for the first quarter (Q1) GDP figure. “Despite mining and manufacturing contributing positively to Q1 GDP on quarterly terms, we still expect a soft Q1 GDP number as domestic demand remains muted, which will have a negative effect on the services sector (71.4% of GDP in 2020),” Pieter du Preez of NKC African Economics said in a note on the data.
Zimbabwe committed to clearing AfDB debt (The Herald)
The Government is committed to clear its arrears with the African Development Bank (AfDB), as part of the Second Republic’s reform agenda anchored on a return to the international community through mending broken relations and entrenching already existing ties. “Government is aware of Zimbabwe’s outstanding financial obligations of US$729 million to the AfDB,” said Minister Shava during his engagement with AfDB. “We are committed to clearing these arrears as part of Government’s re-engagement agenda with the international community and development partners.
ZITF return to restore confidence, tourism recovery (The Herald)
The return of the Zimbabwe International Trade Fair (ZITF) this year is expected to restore tourism recovery and business confidence in Zimbabwe as an investment destination, while impacting positively on the wider economy. Industry and commerce players are already seized with preparations for this year’s ZITF, scheduled for July 20 to 23 in Bulawayo, amid prospects for renewed business after the event was suspended last year at the height of Covid-19 lockdown measures. This year’s expo would be held for only four days instead of five guided by tight Covid-19 mitigation protocols under the theme: “Showcasing the New Normal for Business & Industry: Realities and Opportunities”.
Travellers suffer disrupted holidays due to restrictions (Star)
When President Uhuru Kenyatta locked down Nairobi,Kiambu, Machakos, Kajiado and Nakuru in March just ahead of the Easter holiday, those with travel plans had to cancel them. With the reopening on May 1, hotels and transport providers including airlines and SGR are mostly offering rescheduling but no refunds. The Standard Gauge Railway (SGR) has suspended refunds until further notice. The only available option is rescheduling 48 hours prior to the preferred travel time before August 2021.
The Kenya-UK Trade Agreement: trading up? (ICLG)
On the 10 March 2021, after a late night session in parliament, Kenyan MPs announced the ratification the Kenya-United Kingdom Economic Partnership Agreement. It is hoped that the agreement, concluded against the background of the UK taking its new post-Brexit place in the world, will serve to support and increase trade between the two nations. Ratification follows months of negotiations, and significant scrutiny in both countries. This article explores the advantages and disadvantages that may flow from this deal, and the impacts that this could have for business in Kenya, the UK and the wider world.
Uganda approves US $395m loan for Kampala-Malaba MGR refurbishment (Construction Review)
Uganda’s Parliament has approved a US $395.5m loan the refurbishment of the Kampala-Malaba Meter Gauge Railway (MGR). The approval in a plenary sitting Chaired by Speaker Rebecca Kadaga came after the approval of a report by the National Economy Committee presented by Nakaseke North MP Syda Bbumba. According to Hon Bbumba, the Kampala- Malaba project is part of the bigger proposed Meter Gauge Railway (MGR) project, which will entail the rehabilitation of the 8.3km Kampala-Port Bell section and the 12.3km Kampala-Nalukolongo-Kyengera section, purchase and rehabilitation of coaches, wagons and locomotives, creation of a railway training school to equip Uganda Railways Corporation (URC) Management and Staff with modern railway skills, and stock new spares for the workshop. “If the Meter Gauge Railway Project (MGR) is implemented, the cost of transport by rail will improve from the current average of between US Dollars 0.09 – US $0.13 (per NTK-net tone kilometre) to US $0.05, hence reducing the cost of doing business,” said the MP.
Insecurity, biggest threat to investment in Nigeria – NESG (Nairametrics)
The Nigerian Economic Summit Group, NESG, warned that insecurity is the biggest threat to investment in Nigeria and urges the FG to provide security agencies with the necessary support to deal with insecurity. The NESG disclosed this in its May 2021 report, titled ‘Sectoral reforms and Investments in Nigeria; A Focus on the Manufacturing Sector.” “The biggest threat to investment in Nigeria is insecurity,” the report said. “The President and National Assembly must provide security agencies with adequate resources – equipment, finance, training, etc. – to tackle the insurgency, banditry, and other forms of social vices. There must be clear key performance indicators and heads of security agencies must be sanctioned when they fail to meet relevant goals,” it added.
Ghana-Ethiopia must conclude on proposed agreement for strategic partnership – Ayorkor Botchwey (GhanaWeb)
“Let us conclude and sign the proposed Agreement for Joint Declaration of Strategic Partnership between the two countries since it offers the framework required to increase cooperation between Ghana and Ethiopia”. Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey has raised concerns on the need for Ghana and Ethiopia to conclude and sign the proposed Agreement for Joint Declaration of Strategic Partnership between the two countries. This, she believes will offer the framework required to increase cooperation between Ghana and Ethiopia.
African regional and continental news
Re-post: ICC, UPS, Tralac, and West Blue join forces to provide women entrepreneurs in Africa with the resources to digitise their operations (ICC)
ICC, UPS, Trade Law Centre (tralac), and West Blue Consulting today announced a partnership to support women-led small and medium-sized enterprises (SMEs) in Africa. The partners will offer capacity building programmes and tools, including co-developed trade and information portals called “e-Trade Hubs,” advocate for enabling public policy, and create electronic guidelines to help women entrepreneurs scale-up and digitise their businesses.
“The AfCFTA provides a significant opportunity to empower women entrepreneurs and to promote Africa’s digital transformation,” said Trudi Hartzenberg, Executive Director, tralac. “The adoption of digital trade solutions for the AfCFTA will address many border management challenges that disproportionately impact women traders. tralac is very pleased to collaborate with ICC, UPS and West Blue Consulting to support digitisation of women’s businesses to enhance their competitiveness in the AfCFTA and global markets.”
AfCFTA promises to unlock the potential for African women to move from micro to macro businesses (African Union Monthly Bulletin)
For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. Through the AfCFTA, informal and micro and small enterprises will be integrated into the continental markets breaking the barriers these businesses constantly encounter as they try to penetrate more advanced regional and overseas markets. Women, estimated to account for 70 per cent of informal cross-border trade in Africa, will be well positioned to tap into regional export destinations and use regional markets as stepping stones for expanding into overseas markets. By reducing tariffs and with simplified trading regimes for small traders, AfCFTA makes it more affordable for informal traders to operate through formal channels, which offer more protection by addressing the vulnerabilities women in cross-border trade often encounter such as, harassment, violence, confiscation of goods and even imprisonment.
EAC Secretary General promises to increase intra-regional trade from 20% to 50% in the next five years (East African Community)
The EAC Secretary General, Hon (Dr.) Peter Mathuki has promised the business community in the region that he will do everything within his power to address the vice of Non-Tariff Barriers to trade and trade wars, and work towards raising the volume of intra-regional trade from the current level of below 20% to more than 50% over the next five years. Mr. Badagawa called upon the EAC Secretariat to initiate the amendment of some of the provisions of the EAC Common Market Protocol (CMP) to give effect to the Regulations on Free Movement of Services and Service Suppliers, the Mechanism for the Removal of Restrictions on Trade in Services and Revised Schedules of Commitments on Progressive Liberalization of Services.
On his part, Mr. Gideon Badagawa, Chairman, Private Sector Foundation Uganda (PSFU), urged the Secretary General to help coordinate finalization of the amendments of the EAC Elimination of Non-Tariff Barriers Act, 2017 as well as the launching of the Dispute Resolution Mechanism by the operationalizing the EAC Trade Remedies Committee.
NRM promotes trade in the region (Independent)
The Ministry of Trade implemented the manifesto commitment of continuing fast-tracking the East African Community (EAC) economic and political integration in line with the vision of having a single monetary union and achieving political federation of all the EAC member states. Economic integration was deepened through engagement in sectoral councils (resolving the outstanding NTBs and facilitate smooth trading under the COVID 19 pandemic). Also achieved was implementation of the Common Market Protocol where implementation of the Northern Corridor Initiative started, Signing of the Mutual Recognition Agreement to ease movement of persons in the professions of Engineers, lawyers, accountants; ease of movement of persons by having a common tourism visa.
Ports and exports: KwaZulu-Natal has an abundance of both (Global Africa Network)
A new era in trade and export has begun and the traders, logistics operators and ports of KwaZulu-Natal are in pole position to take up new opportunities. Not only is the province strategically located on the Indian Ocean but it already has excellent infrastructure which is being upgraded and improved. As part of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA), South Africa is already part of the most active regional bodies which are promoting integration and intra-regional trade. These regional groupings are best placed to start thinking beyond tariffs: more efficient customs posts, lower air-freight costs, better-run ports, regulatory alignment and improved rail and road infrastructure.
Stronger integration of ECOWAS markets crucial – Bawumia (GhanaWeb)
Vice-President Dr Mahamudu Bawumia has tasked the Economic Community of West African States, ECOWAS, to take advantage of the strong linkages of their economies to build synergies in common areas of clear comparative advantage towards achieving strategic food security systems. "Our plan to build a strategic food storage system for the sub-region is a step in the right direction towards addressing the dire situation of emerging hunger facing our people. "In order to operationalize our objective, there is an urgent need for marching resources and financing mechanism," Dr Bawumia said. The Vice President said the meeting was a giant step in ECOWAS’ quest to provide food security especially for the vulnerable, and a good sign of being responsive to the needs of the people.
Africa’s economic recovery needs to focus on creating a more resilient continent (Engineering News)
The Covid-19 pandemic had a devastating impact on many African economies, particularly those dependent on oil exports, tourism and resources. However, the continent’s GDP is expected to grow by 3.4% this year – after shrinking by 2.1% in 2020 as a result of the pandemic – supported by a rebound in commodity prices and the resumption of tourism as pandemic related restrictions are eased, according to the African Development Bank’s recently released ‘African Economic Outlook 2021’ report. Technology needs to play a key role in the continent’s recovery, both to support local and regional value chains, as well as to enable a more cost-effective delivery of services to consumers. Digital applications will be essential in ensuring Africa is more resilient in the future. The continent, however, remains the least connected continent, lacking sufficient digital infrastructure. Exacerbating the lack of connectivity is the issue of affordable connections with less than a quarter of African countries meeting the affordability standard for internet connections as per the recommendations of the United National Broadband Commission.
Medical supplies platform could be the model to fast track PPE supplies and vaccines to Africa and beyond (Daily Maverick)
The Africa Medical Supplies Platform (AMSP) is a relatively straightforward e-commerce platform that has revolutionised Africa’s response to the pandemic — think Amazon or Alibaba for hospitals. The idea is to connect medical suppliers with medical providers and eliminate middlemen. Purchasing through the AMSP is restricted to governments, national health systems, NGOs and donor organisations.
The AMSP’s goal is to leverage Africa’s bulk-purchasing power to secure supplies and stabilise prices. It does this by pooling orders and ensuring transparency so that African countries can compete for goods with the world’s most dynamic economies. As Masiyiwa puts it, “The service we provide is the fact that we aggregate the purchases, so that suppliers are not dealing with so many countries.”
Assessing the impact of Covid-19 on China-Africa economic relations (Africanews)
Africa, like the rest of the world, is working out ways of recovering from the devastating effects of the Coronavirus pandemic. Many experts are worried about the amount of debt that African countries are getting from China. Will African countries grow the financial muscle to repay? Or will China write off many as debt burdens? Or will there be a doomsday scenario where economic colonisation takes place?
The Bank of France has reportedly started transferring foreign currency reserves to a tune of 5 billion Euros to the Central Bank of West African States (BCEAO). This process is part of the reform of the CFA Franc which was announced in December 2019 by the French and Ivorian presidents. The transfer happens ahead of a summit French president Emmanuel Macron is holding with African countries to discuss the revival of economic fortunes following the Coronavirus pandemic.
Covid’s impact on Africa probably understated (IT-online)
As the world battles new Covid-19 variants and supply and rollout of vaccines remains critically low in Africa, new research from the Partnership for Evidence-Based Response to Covid-19 (PERC) indicates that burdens experienced by people in African Union member states remain grave. A massive 81% of survey respondents reported challenges in accessing food, 77% reported experiencing income loss and 42% reported missing medical visits since the start of the pandemic. The report calls for targeted public health measures for high-risk populations, increased surveillance in light of new variants, and scaled-up vaccine supply from the global community to control the pandemic in Africa. “The PERC report provides valuable insights to countries to strategically tailor their ongoing responses,” says Dr John Nkengasong, director of the Africa Centres for Disease Control and Prevention.
How trade deals explain the behaviour of West African elites (The Conversation Africa)
The political survival of ruling elites is one of the major determining factors behind their trade policy choices. But trade policy choices can determine whether a country’s economy diversifies to reduce dependence on the production of a few goods or services. This phenomenon is most pronounced in countries whose economies are heavily dependent on a few commodity exports.
My research shows that trade partnerships with the EU generally function as a system of extraversion for West African ruling elites. To ensure their political survival, they tend to fashion their trade relations with the EU as one of dependency. These amount to the continuation of a colonial economic system, a neo-colonial relationship. It comes at the expense of economic diversification. The key feature of the trade partnerships addressed here is their prevention of economic change in West Africa.
Developments in competition law in post-pandemic Africa (Africa Feeds)
With the growth of economies across Africa, competition law has remained one of the key drivers for effective market participation, consumer protection and fair business practices. However, the global pandemic introduced new challenges for competition authorities in Africa and abroad, with each enforcer pursuing the most beneficial enforcement method for its national or regional jurisdiction. According to Lerisha Naidu, Partner in Baker McKenzie’s Competition & Antitrust Practice in Johannesburg, “These efforts were aimed at curbing the persistence of unjustified price hikes, anticompetitive cooperation between competitors and other harmful business practices that sought to undermine competition.
In Africa, Legalizing Marijuana Can Deliver Higher Growth (Foreign Policy)
Legalizing cannabis could provide these countries with another lucrative income stream and help create jobs, as the plant can be used to produce goods ranging from cannabis oil to textiles. Despite the plant’s economic promise, many governments remain wary of legalization. Cannabis is one of Africa’s fastest-growing sectors, but Zimbabwe is only one of 10 countries that has decriminalized it or made efforts to do so. Zimbabwe’s decision was largely driven by economic reasons: Mthuli Ncube, the Zimbabwean finance minister, has said that cannabis production could generate $1.3 billion in 2021, making it one of the country’s most lucrative industries. As demand for medical marijuana products surges worldwide and states look to diversify their income streams, other African countries should follow Zimbabwe’s lead. Africa could reap enormous economic benefits from cannabis—but only if it goes further in legalization.
SADC Forum to set up technical structure for regional parliament (ANGOP)
Southern Africa Development Community (SADC) Parliamentary Forum said its working on creation of the structures for technical and administrative support for the regional Parliament. The Secretaries General Committee of the national members parliament of SADC parliamentary forum are working on attaining this goal. The process for transformation of SADC Parliament Forum into a Regional Parliament has been in progress. This entails the creation of organs to support, in terms of technical, technological and administrative point of view, this Parliament, he clarified. According to him, the secretaries general of SADC Parliament Forum is tasked with creation of pre-conditions to assess an organisational structure able to respond to the future Regional Parliament. The process for transformation of SADC Parliament Forum into a Regional Parliament has been in progress. This entails the creation of organs to support, in terms of technical, technological and administrative point of view, this Parliament, he clarified.
The heavy price Africa pays for digital violation (Business Daily)
From internet shutdowns, social media crackdowns, cyber attacks, espionage and low digital inclusion, private data tracing apps, digital rights across Africa have never been as infringed as during the Covid-19 period. Though internet access and affordability has been improving over the last decade in Africa, online vulnerabilities and a huge digital divide have been witnessed more, according to the Mo Ibrahim Foundation 2020 report on African governance. The online vulnerabilities are behind rising violation of digital rights in Africa. This has pushed to the forefront the need to come up with solutions that protect digital rights in Africa. “Digital rights are just as fundamental as all other human rights,” said ‘Gbenga Sesan, director of Paradigm Initiative.
Brexit LIVE: Forget EU! African finance chief celebrates UK exit – mega deals on horizon (Daily Express)
Britain is making positive inroads into the second largest continent in the world, defying gloomy forecasts from Project Fear doom-mongers the new sovereign nation would struggle outside the EU. Trade deals worth billions of pounds have already been signed with a number of African countries, including South Africa, Ghana and Kenya, while many more are expected to be rubber-stamped over the coming months.
Cheryl Buss, CEO of Absa International, formerly Barclays Africa, told City AM: “We’ve already seen a number of positive impacts post-Brexit for Africa. The UK has signed a free-trade agreement with South Africa which was extended to both the Southern African Customs Union and the Mozambique-UK Economic Partnership Agreement (SACU+M). While the trade agreement is largely similar to the trade deal the SACU+M had with the EU, the negotiations centred around a realignment of quotas for SACU+M countries in favour of African countries.
Global economy
Slow vaccination could hinder emerging market recovery, warns S&P (Engineering News)
The economic recovery in emerging markets (EMs) will remain highly vulnerable to pandemic-related setbacks, given the slow vaccine rollout, financial services company S&P Global Ratings notes in its ‘Emerging Markets Monthly Highlights: Slow Vaccination Keeps Recovery At Risk’ report. It notes that while it seems as though the worst of the latest Covid-19 wave has passed in most EMs, the likelihood of intermittent lockdowns will remain high for some time. As such, vaccination progress will remain a key variable of future economic performance.
China Backs Talks on Intellectual Property Waiver for COVID-19 Vaccines (The Wire)
China’s commerce ministry spokesman Gao Feng said on Thursday that Beijing supports a proposal by the World Trade Organization (WTO) for an intellectual property protection waiver on COVID-19 vaccines to enter the consultation stage. British and European Union officials have been sceptical about the usefulness of a US proposal to waive patent protections for COVID-19 vaccines, while saying they are prepared to discuss it. “China will work with all parties to actively participate in consultations and jointly promote a balanced and effective solution,” he said.
Opinion: Will corporate greed prolong the COVID-19 pandemic? (MarketWatch)
The scarcity of COVID-19 vaccines across the developing world is largely the result of efforts by vaccine manufacturers to maintain their monopoly control and profits. Recent company pledges to give vaccine doses to the COVID-19 Vaccines Global Access (COVAX) facility, which will direct them to the most at-risk populations in poorer countries, are no substitute. These promises may assuage drug companies’ guilt, but won’t add meaningfully to the global supply.
In recent weeks, legions of pharmaceutical lobbyists have swarmed Washington to pressure political leaders to block the WTO waiver. If only the industry were as committed to producing more vaccine doses as it is to producing specious arguments, the supply problem might already have been solved. Instead, drug companies have been relying on a number of contradictory claims. They insist that a waiver is not needed, because the existing WTO framework is flexible enough to allow for access to technology. They also argue that a waiver would be ineffective, because manufacturers in developing countries lack the wherewithal to produce the vaccine.
Vaccine patent waiver: COVID stopper or innovation killer? (Nikkei Asia)
The U.S. earlier this month said it supports temporarily waiving intellectual property protections on COVID-19 vaccines. In doing so, President Joe Biden’s administration threw serious weight behind a proposal brought to the World Trade Organization by India and South Africa. Other emerging countries such as Pakistan, Mongolia and a group of least-developed nations including Bangladesh have backed the idea as well. They argue patents and other restrictions hinder timely access to affordable inoculations and could prolong the pandemic. A spokesman for China’s Commerce Ministry on Thursday said Beijing also supports taking the proposal “on exemptions for anti-epidemic materials” into the consultation stage. On the other hand, pharmaceutical companies are resisting the waiver, not only in the U.S. but in other countries like Japan, which has lagged behind in COVID-19 vaccine development. Who would benefit if patents are waived? What are the possible downsides? Here are five things to know about the debate.
Poor nations don’t need patent waivers to obtain enough COVID vaccines to achieve herd immunity, they just need $4 billion (MarketWatch)
“While momentum builds behind a proposal to waive patents on COVID-19 vaccines, removing intellectual property protection would not accelerate the global immunization effort. The sooner the world recognizes that production capacity is not the problem, the better. “With that goal in mind, a global movement has emerged to demand a World Trade Organization waiver of patent protections for COVID-19 vaccines (as well as treatments and diagnostics). But patent protections are not the primary cause of the vaccine-supply bottleneck. If anything, a waiver might divert scarce materials from vaccine production facilities that are already up and running, not to mention discourage investments in pharmaceuticals to ward off future pandemics.
An Investment Perspective on Global Value Chains (World Bank)
This book examines the role of foreign direct investment (FDI) in global value chains (GVCs). To stimulate economic transformation through GVCs, policy makers in developing countries need to better understand the business strategies of multinational corporations (MNCs), internationalization pathways for domestic firms, and how policies can create a favorable environment for both types of firms.
The Resilience Booster Tool: Giving a boost to climate resilience design, monitoring and impact (World Bank Blog)
What if development practitioners, city planners, community organizers, and other decision makers could build more resilient systems to help people thrive in a sustainable way? What if projects and policy decisions planned for the effects of climate change, from the start? What if by improving processes like these, local agencies were more connected and agile, enabling them to monitor for disruptive weather patterns, fluctuations in food prices, or changing water levels to help communities anticipate problems and make plans to avoid them?
The new Resilience Booster Tool helps them to do just that. This hands-on, intuitive tool, developed by the World Bank Group under the Africa Climate Resilient Investment Facility (AFRI-RES), is now available for teams who are designing and implementing development projects that consider climate change to better support communities and institutions navigate future climate shocks and stressors.
2020 Private Participation in EDME Infrastructure Plummets (World Bank)
New data from the World Bank shows that private participation in infrastructure (PPI) in developing countries, while taking an historic plunge in the first half of 2020 due to COVID-19, saw a very modest uptick in the second half of the year. The 56 percent drop in PPI in H1 from the previous year moderated to 52 percent for the full year. Infrastructure investment commitments in 2020 stood at $45.7 billion across 252 projects in developing countries. “Hopefully, this data signals that the worst effects of COVID-19 on private sector infrastructure finance are now behind most developing countries,” said Imad Fakhoury, the World Bank’s Global Director for Infrastructure Finance, PPPs & Guarantees.