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The forest sector plays a key role in socioeconomic development of Kenya and contributes to 3.6 % to the country’s GDP1 excluding environmental services. The sector supports the urban and rural population through the provision of wood fuel and other non-timber forest products and services. Currently the sector provides direct jobs for up to 50,000 and indirect jobs to approximately 600,000. The sector is largely underdeveloped against its potential that can be unlocked through commercial forestry.
At COP28 Kenya joined a coalition of 17 countries that committed to promoting the use of sustainable wood in Green Construction2. This commitment is backed by a robust policy and regulatory framework as well as a booming construction industry. In addition, Government has set an ambition to grow 15 billion trees and increase it plantation area to 750,000ha.
Ethiopia Emphasizes Significance of AfCFTA to Achieve Stronger, Inclusive Pan-African Trade Ecosystem (Ethiopian News Agency)
Addis Ababa February 29/2024 (ENA) Africa Continental Free Trade Area (AfCFTA) is significant in order to achieve a stronger and more inclusive Pan-African trade ecosystem, the Ethiopian Permanent Mission in Geneva underscored.
Ambassador Tsegab Kebebew, Permanent Representative of Ethiopia to the UN Office at Geneva delivered a Presentation on the subject of "Regional projects and dynamics with pan Africa reach” at the ambassadors' New Year reception hosted by Swiss Africa Business Circle (SABC) held on 28 Feb 2024 in Bern, Switzerland.
Nigeria: Customs Collaborates DG TAXUD EU For Efficient Export Monitoring, Trade Facilitation (Newsdiaryonline)
The Nigeria Customs Service (NC) has collaborated with the Directorate General Taxation and Customs Union (DG TAXUD) of the European Union (EU) for efficient export monitoring and trade facilitation.
During a meeting that took place at the Corporate Headquarters of NCS on February 27, 2024, the Comptroller General of Customs, Bashir Adewale Adeniyi, announced that the service is collaborating with DG TAXUD for efficiency in Export Monitoring and documentation.
With the Nigeria Customs Service as the competent authority for rules of origin, the Comptroller General assured that the Service will do all it can to facilitate the process, adding that peace will prevail if trade is permitted to flourish.
Inflation rates soar in Cameroon’s major cities, exceeding the Cemac threshold (INS) (Business in Cameroon)
Consumer price levels in nine out of the ten major cities in Cameroon exceeded the Cemac threshold of 3% in January 2024, according to reports by the national stats agency INS. Remarkably, Bamenda, the regional capital of the Northwest, despite facing attacks by separatist militias, recorded an inflation rate of just 3% in January 2024, year-on-year.
Ngaoundéré experienced the highest jump, with an inflation rate reaching 8% in January 2024 compared to the same month in 2023, making it the Cameroonian city with the most significant increase in household consumer prices. Other major cities also reported inflation rates of at least 5% over the same period: Yaoundé (5.1%); Douala (5.4%); Maroua in the Far North (5.5%); Buéa in the Southwest (5.4%); and Ebolowa in the South (5.7%).
Tanzania pushes for sustainable capital markets (Daily News)
DAR ES SALAAM: FINANCE Minister, Dr Mwigulu Nchemba has argued that promoting sustainable capital markets in the Southern Africa Development Community (SADC) region is essential for fostering responsible investment and increasing access to finance for projects and businesses that align with sustainability goals.
Dr Mwigulu therefore stated that the Committee of SADC Stock Exchanges (CoSSE) is expected to play a pivotal role in advancing sustainability by facilitating dialogue, knowledge sharing and collaboration among stock exchanges, regulators, issuers, investors and other stakeholders to integrate environmental, social and governance (ESG) principles into capital market practices and promote sustainable finance initiatives.
The minister was speaking yesterday in Dar es Salaam at the launch of a workshop on development of sustainable capital markets in the SADC region.
Ethiopian Airlines Unveils $55 Million E-Commerce Hub, Boosting Africa's Online Trade (BNN Breaking)
Addis Ababa has become the focal point of a significant leap in e-commerce logistics with Ethiopian Airlines' inauguration of a new $55 million e-commerce logistics hub. Aimed at enhancing online shopping experiences across Africa, this move signifies a major step forward in the continent's digital commerce landscape. The hub, constructed by China National Aero-Technology International Engineering Cooperation, sprawls over 15,000 square meters and boasts the capacity to manage 150,000 tonnes of goods annually.
Mesfin Tasew, the Chief Executive Officer of Ethiopian Airlines, emphasized the airline's commitment to adopting cutting-edge technologies and improving service delivery. The project, which took two years to complete, represents a significant investment in the future of African e-commerce. The airline's collaboration with Chinese construction and technology firms, including giants like Alibaba, underlines a strategic approach to capitalize on the burgeoning e-commerce market.
The Council of Ministers of the Southern African Development Community (SADC) will meet on 10 and 11 March 2024 in Luanda, Republic of Angola.
His Excellency Ambassador Téte António, Minister of External Relations of the Republic of Angola will host the meeting in his capacity as the current Chairperson of the SADC Council of Ministers.
The Council of Ministers oversees the function and development of SADC and ensures that policies and decisions are implemented accordingly. The Council consists of Ministers from each of the 16 SADC Member States; usually from the Ministries responsible for Foreign Affairs and International Relations, Economic Planning Finance or Trade, and meets twice a year in March, and August.
SADC Secretariat supporting SMEs in the SADC EPA region to export to the European Union (EU) market (SADC)
The Southern Africa Development Community (SADC) Secretariat through the EPA Unit has embarked on a series of national capacity-building and awareness-raising workshops for the SADC Economic Partnership Agreement (EPA) States on market requirements for exporting to the EU market . The SADC EPA states covered include Botswana, Lesotho, Mozambique, Namibia, and Eswatini. The first workshop was held from 11 - 13 December 2023 in Maputo, Mozambique. Participants from both private and public sectors were taken through simulation exercises on export requirements for EU market. The private sector was represented by the Chamber of Commerce and Industry, the Commodity Exchange and the Confederation of Economic Associations.
Other workshops on EU market requirements for Gaborone-Botswana, Maseru-Lesotho, Windhoek-Namibia and Mbabane-Eswatini are ongoing. These workshops are targeted to the private sector within the SADC EPA region that are exporting or have the potential to export to the EU market. The aim is to support them in understanding the requirements of the EU-SADC EPA.
This initiative is a follow-up to the work that the Secretariat has done, where booklets on EU market requirements for five (5) sectors of export potential to the EU were produced. The sectors include dried spices, essential oils, herbal teas, vegetable oils, dried fruits and nuts.
The SADC Business Council (SADC BC) held the First Southern African Industrialisation Forum from 26th to 27th February 2024 at the l in Johannesburg, Republic of South Africa. The SADC Business Council is a regional apex body for the SADC private sector. It represents national and regional business associations from SADC Member States. The SADC BC is the prime public sector partner forging the SADC development and integration agenda.
The Southern African Development Community (SADC) Deputy Executive Secretary for Regional Integration Ms Angele Makombo N’Tumba delivered the opening remarks and hailed SADC Business Council for organising the forum for business leaders to discuss industrial priorities and investment opportunities in the region.
Ms. Makombo N’Tumba said the objectives of the forum are well aligned to the SADC regional industrialisation and development agenda, encapsulated in the SADC Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP 2020-2030), which are the strategic documents for SADC regional integration and development.
The Board of Directors of the African Development Bank Group has approved a $150 million Trade Finance Unfunded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the aspirations of the African Continental Free Trade Area (AfCFTA).
African Development Bank will provide guarantee cover of 50% and up to 75% for transactions in low-income countries and transition states on a risk share basis with TDB to a number of qualifying local and regional banks in the Common Market for Eastern and Southern Africa (COMESA) region, which are active in the trade finance sector. The facility is expected to support about $1.8 billion of trade over the next three years.
“Supporting trade in Africa is a key priority for the AfDB. Trade finance is an important driver of economic growth and is critical for cross-border trade particularly in emerging markets,” said Nwabufo Nnenna, the group’s Director General for the Eastern Africa region. “We are delighted to work with TDB, a strong partner with extensive knowledge and network in Africa, on a shared ambition to support the region’s Trade.”
AfDB's Akinwumi Adesina Targets Youth Unemployment, Poverty to Curb Insecurity, Migration in Africa (BNN Breaking)
During a recent diplomatic luncheon in Abidjan, Côte d'Ivoire, Dr. Akinwumi Adesina, President of the African Development Bank (AfDB), highlighted the critical issues of youth unemployment and poverty as primary drivers of insecurity and migration across the African continent. Stressing the importance of creating opportunities within Africa, Adesina unveiled the bank's ambitious Jobs for Youth in Africa strategy, aiming to develop 25 million jobs and skill 50 million youths.
With Africa's demographic asset of 477 million young people under the age of 35, the AfDB is taking significant steps to prevent this potential from becoming a "global externality." The bank's Jobs for Youth in Africa strategy has already shown promising results, with 12 million jobs created, three million directly and nine million indirectly. Initiatives such as Technical and Vocational Training, Computer Coding for Employment, and the Enable Youth programme in agriculture are at the forefront of this employment drive, aiming to harness the continent's vast potential for growth and innovation.
UNECA Urges African Nations to Tackle Climate Change, Boost Green Economies (BNN Breaking)
The United Nations Economic Commission for Africa (UNECA) has put forth a strong call for African countries to unite in their efforts to mitigate the impacts of climate change and to steer towards the development of green economies. This clarion call was made during the UNECA's Conference of Ministers of Finance, Planning and Economic Development (COM2024), held in Victoria Falls, Zimbabwe, from February 28 to March 5, under the theme "Financing the Transition to Inclusive Green Economies in Africa: Imperatives, opportunities, and policy options".
Antonio Pedro, the deputy executive secretary of UNECA, highlighted the disproportionate challenges that climate change poses to the African continent, including severe droughts, floods, and unexpected storms. These natural disasters not only precipitate humanitarian crises but also exacerbate economic vulnerabilities across the continent. Pedro underscored the urgent need for Africa to adopt sustainable transitions and implement long-term structural changes to combat these environmental threats effectively.
EAC Eyes New Trade Frontiers: UK, UAE, Among Others, Following EPA Setback (BNN Breaking)
Following the breakdown of the Economic Partnership Agreement (EPA) with the European Union (EU), the East African Community (EAC) is turning its gaze towards new horizons. At least seven nations, including the United Kingdom, the United Arab Emirates (UAE), Singapore, and Pakistan, have expressed interest in forging free trade agreements with the EAC, signaling a potential shift in the bloc's trade dynamics and partnerships.
In the wake of the unfruitful negotiations with the EU, the EAC is keen on diversifying its trade relationships to bolster its economic prospects. The 43rd Meeting of the Sectoral Council of Trade, Industry, Finance, and Investment marked a significant milestone, with the EAC ministers green-lighting negotiations for Free Trade Agreements (FTAs) with the UK, UAE, Pakistan, and Singapore. This move not only demonstrates the EAC's proactive stance in expanding its market reach but also its adaptability in the face of geopolitical and economic shifts. The council's directive to initiate dialogues with these countries by July 30, 2024, underscores the urgency and priority accorded to these negotiations.
EU lawmakers endorse economic partnership agreement with Kenya (The East African)
Kenya has inched closer to concluding a preferential trade deal with European Union (EU), preserving a long-term tax-free access of exports to the 27 countries in the bloc while gradually opening up her market for duty-free imports and investments from Europe.
The European Parliament on Thursday endorsed the pact, paving the way for heads of State and government to give final approval and complete the ratification process on the EU side.
Kenyan lawmakers have also to debate and approve the document for it to become enforceable.
EU gives EUR 1 million to support trade know-how in developing economies and LDCs (WTO)
The European Union is contributing EUR 1 million (about CHF 950,000) over the period 2024-2025 to finance training programmes for government officials from developing economies, including least-developed countries (LDCs). The contribution to the WTO Global Trust Fund will help developing economies and LDCs deepen their expertise on WTO issues and strengthen their skillset to effectively implement trade rules at the WTO.
The Global Trust Fund finances around 280 activities a year, mostly tailor-made training activities delivered at national and regional level, covering various trade-related areas including agriculture, services and trade facilitation. Close to 2,800 activities have been organised under this fund over more than 20 years.
The European Commission's Executive Vice-President Valdis Dombrovskis, said during the 13th WTO Ministerial Conference held from 26 to 29 February in Abu Dhabi, United Arab Emirates: "The EU remains strongly committed to the WTO and to further integrating developing countries — especially least-developed countries — into the multilateral trading system. We are pleased to continue supporting their economic development through the WTO. We believe our financial contribution is particularly timely in view of the current need for enhancing multilateral trade governance."
India pitches re-examination of customs duties moratorium on e-commerce (The Economic Times, Indian Times)
India on Thursday pitched for a re-examination of the implications of the customs duties moratorium on e-commerce for developing and least developed member nations of the World Trade Organization (WTO) amid attempts by the developed countries to extend the moratorium beyond March 31.
The issue came up for discussion during a session of a work programme on e-commerce at the WTO's 13th Ministerial Conference, which entered its last day on Thursday. India is not in favour of extending the moratorium as it is causing tariff revenue losses of an estimated $10 billion to the developing countries every year. For India, the losses could be about $500 million every year. The moratorium can't be extended in the absence of a consensus decision. Countries can choose not to raise duties on e-commerce transmissions, said officials.
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South Africa: Trade statistics for January 2024 (South African Revenue Service)
Today, the South African Revenue Service (SARS) releases trade statistics for January 2024, recording a preliminary trade balance deficit of R9.4 billion. The deficit is attributable to exports of R144.3 billion and imports of R153.7 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN). Export flows decreased in January, driven by Passenger and Goods Vehicles as well as Coal. Value of imports increased on the back of higher import flows of Original Equipment Components, Telephone Sets, and Wheat and Meslin.
The year-to-date (01 January to 31 January 2024) preliminary trade balance deficit of R9.4 billion was an improvement from the R24.4 billion trade balance deficit for the comparable period in 2023. On a year-on-year basis, export flows for January 2024 were 4.5% higher compared to the R138.0 billion recorded in January 2023, whilst import flows were 5.4% lower having decreased from R162.4 billion in January 2023 to R153.7 billion in the current period.
Speech by Deputy Minister Alvin Botes on the Second Free State Investment Forum, 27 February 2024 (DIRCO)
South Africa executes its foreign policy within the rubric of four concentric circles of Pan-Africanism, Global Solidarity, Deepening Cooperation with the Industrialised North and Transformation of Global governance institutions to deepen multilateralism. We are a substantive Pan Africanist state and we have championed the implementation of the African Continental Free Trade Area (AfCFTA), which is one of the flagship projects of Agenda 2063: The Africa We Want.
The Assembly of the Heads of State and Government of the AU that met on 17 and 18 February 2024, in Addis Ababa congratulated South Africa for launching the first shipment under the AfCFTA regime on 31 January 2024. The first shipment went to Ghana and Kenya. South Africa joins other 8 countries that have started trading under the Guided Trade Initiative (GTI) of the AfCFTA.
We should further welcome the Tariff Offer made by SACU countries comprising South Africa, Lesotho, Eswatini, Namibia and Botswana on 11 February 2023. This is a milestone development in the effective implementation of the AfCFTA, paving the way for South Africa and its neighbours to reduce tariffs by up to 90%, thereby facilitating the implementation of the AfCFTA.
Rubber actors defend ban on unprocessed rubber export (The New Dawn Liberia)
The Rubber Planters Association of Liberia (RPAL) says the Government of Liberia is in no error in banning the export of unprocessed rubber. The group which is a major rubber sector actor has unanimously declared its support of the ban, adding that exporting unprocessed rubber out of Liberia denies the government of generating needful taxes and takes jobs away from local employees.
Liberia currently has at least four companies that are engaged in exporting processed rubber. They include Jeety Rubber Factory, Firestone Rubber Plantation, Liberia Agriculture Company (LAC), and the Lee Group. These companies employed thousands of Liberians at their factories and can only maintain their workforce and meet their production targets if the ban on unprocessed rubber remained in place.
The Gambia upgrades customs operations and boosts revenue from trade (UNCTAD)
The Gambia, mainland Africa’s smallest country, saw a 23% increase in customs revenue in 2023, one year after rolling out the latest version of UNCTAD’s Automated System for Customs Data software (ASYCUDAWorld). The Gambia Revenue Authority reported record monthly revenue collections in March 2023, reaching 1.5 billion Gambian Dalasi (approximately $22.1 million, using the current exchange rate), a figure that was exceeded in July with D1.6 billion (about $23.6 million). By the year’s end, customs revenue hit D15.6 billion (about $230 million), surpassing the government’s target for 2023 by 4%.
Announcing the results, Gambia Revenue Authority Commissioner General Yankuba Darboe, highlighted the impact of reforms and strategies to improve efficiency and transparency and optimize revenue collection, saying UNCTAD’s ASYCUDAWorld system’s contribution was “immense”. “The immediate impact of the joint effort between UNCTAD and the Gambia Revenue Authority in financial terms is impressive,” said Shamika N. Sirimanne, UNCTAD’s director of technology and logistics.
The Fund for Export Development in Africa (FEDA), a subsidiary of the African Export-Import Bank (Afreximbank) dedicated to fostering development impact, is pleased to announce the Arab Republic of Egypt’s accession to its Establishment Agreement. With Egypt’s longstanding position as a founding shareholder and the host country of Afreximbank’s headquarters, this recent development underscores Egypt’s commitment to supporting Afreximbank and FEDA’s mission of catalyzing intra-African trade and export development.
The inclusion of Egypt in FEDA’s membership base significantly expands the reach of FEDA’s interventions with its primary objectives of providing sustainable capital to African economies. FEDA’s intervention places great emphasis on industrialization, intra-African trade, and the development of value-added exports.
The SADC Business Council (SADC BC) held the First Southern African Industrialisation Forum from 26th to 27th February 2024 at the l in Johannesburg, Republic of South Africa. The Southern African Development Community (SADC) Deputy Executive Secretary for Regional Integration Ms Angele Makombo N’Tumba delivered the opening remarks. She said the objectives of the forum are well aligned to the SADC regional industrialisation and development agenda, encapsulated in the SADC Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP 2020-2030), which are the strategic documents for SADC regional integration and development.
Mr. Ousmane Fall, Director of Non-Sovereign Operations and Private Sector at the African Development Bank, reiterated the Bank’s commitment to scale up its support to the regional industrialisation agenda and assist Member States in recovering from the recent economic shocks as they strengthen their industrial development. He reckoned that the Bank’s regional integration strategy for Southern Africa identifies two mutually reinforcing priority areas: infrastructure connectivity and market integration and industrialisation.
Only goods that come to the Port of Lomé by sea and declared as transit bound for Burkina Faso, Mali, or Niger will benefit from the suspension of the statistical levy. The Togolese Revenue Office (OTR) disclosed the news on February 19, 2024. This levy, applied to imports and exports, finances the country’s statistical activities, including data collection, processing, and dissemination of economic and trade information. The statistical levy for Burkina Faso, Mali, and Niger was initially set at 2% and then reduced to 1% under the ECOWAS Common External Tariff regime.
The new announcement aims to deter economic operators who unload their goods at neighboring ports and later pass them through Togo to reach the Ouaga-Niamey-Bamako corridor. This is an important move for Togo, especially since the closure of the border between Benin and Niger due to ECOWAS sanctions against the latter. Goods destined for Niger are now forced to pass through Ouaga, of which Lomé is the natural maritime gateway.
ECOWAS Laments Low Trade Volume Among Member States (Arise News)
The President of the Economic Community of West African States (ECOWAS) Commission, Dr. Alieu Touray has decried that the current political situations within the subregion has overshadowed the efforts of the regional bloc at addressing the needs of citizens of the community. He said this, even as he lamented the low trade volume amongst member states, which hovers in the region of 12%.
Touray also said the trade volume within the larger African continent was not also impressive as it stands under 20%.
He said with the strategies and policies in place to encourage trading and movement of goods and people within the subregion, it is disheartening that trade amongst member states is abysmally low, noting that: “At the moment, our intra community trade stands around 12%. On the whole in Africa, intra continental trade is under 20% which is extremely low.” He said: “If you look at developed countries, countries that are sufficiently integrated or regions that are sufficiently reintegrated, intra continental trade alone is around 60 to 70%. “ So we have a long way to go. Very long way to go and this is why it is important that we open our markets for our own produce, our own manufactured items.”
WTO 13th Ministerial Conference extended by one day to facilitate outcomes (WTO)
Following the consultations by WTO Director-General Ngozi Okonjo-Iweala with the MC13 Chair, Dr Thani bin Ahmed Al Zeyoudi, and the Minister Facilitators, delegations were informed that MC13 will be extended, with the closing session scheduled to begin at 2pm Abu Dhabi time. At the meeting of Heads of Delegation (HoDs) on 28 February, DG Okonjo-Iweala called on members to go the extra mile to find convergence on the various negotiations at the ministerial gathering and to be mindful that time is running out to conclude meaningful agreements. The 13th Ministerial Conference was initially scheduled to close today (29 February) at 8pm Abu Dhabi time.
Indian Team Boycotts Thai Representatives at WTO Talks (The Times of India)
A comment by Thailand’s ambassador to WTO Pimchanok Vonkorpon Pitfield, accusing India of using ‘subsidised’ rice procured for the public distribution system for capturing the export market, has created a diplomatic storm with govt lodging a strong protest and Indian negotiators refusing to participate in some deliberations in groups where a representative from the southeast Asian country is present.
The Thai ambassador’s comment on Tuesday during a consultation meeting was cheered by some representatives of rich nations, angering the Indian delegation here. Thailand is seen to be fronting for the US, European Union, Canada and Australia, among others, which have blocked a permanent solution to public stockholding for over a decade.
Union leader Sarwan Singh Pandher stated: “In recent years, the share of Indian rice in the global market has gone up and the recent export curbs have angered western nations. Developed countries have been trying to paint a picture that India was distorting global trade by selling subsidised foodgrain in the international market, which was not the case.”
WTO enforces new rule for simplifying services trade, India stays out (Mint)
These regulations, which apply on a Most Favored Nation (MFN) basis, aim to make authorization processes more transparent and accessible, with commitments to gender equality. However, only 72 out of the WTO’s 164 members are a party to the agreement. India and South Africa were among countries that did not sign this agreement.
The regulations are a response to the bureaucratic challenges faced by businesses in cross-border service trade, aiming to simplify procedures and promote equal opportunities for service suppliers worldwide.
“While details of the Agreement are still awaited, the new agreement looks like plurilateral agreement, where not everyone is a party. India and South Africa have not signed this Agreement. WTO, being the top multilateral trade body should rather focus on core issues of interest to all members and not of a few,” said Ajay Srivastava, the founder of Global Trade Research Initiative (GTRI).
India, South Africa block China-led investment facilitation pact (The Economic Times)
India and South Africa on Wednesday blocked a China-led initiative on investment facilitation at the WTO, in a move that will make it unlikely for the proposed Investment Facilitation Development to be part of the WTO agenda and outcome. Officials said the two nations protested and filed a formal objection as China brought in the issue at a session on development. Around 52 countries made statements at the session and the proponents have sought separate deliberative sessions on the issue.
India and South Africa’s objection was on three grounds - exclusive consensus is needed to bring in any issue on the agenda, it’s debatable if the proposed pact is a trade agreement and it can’t be called an agreement since the signatories haven’t ratified. The group of 123 members wants to bring the proposal through Annex-4 of the WTO under which the proposal would be binding on only the signatory members and not on those who are opposed to it.
“The delegations presenting this statement state that no exclusive consensus exists to add the proposed Agreement as an Annex 4 Agreement. We underscore that given the lack of exclusive consensus, this is not a matter for the MC13 agenda,” India and South Africa said.
India pitches re-examination of customs duties moratorium on e-commerce (The Economic Times)
India on Thursday pitched for a re-examination of the implications of the customs duties moratorium on e-commerce for developing and least developed member nations of the World Trade Organization (WTO) amid attempts by the developed countries to extend the moratorium beyond March 31.
The issue came up for discussion during a session of a work programme on e-commerce at the WTO's 13th Ministerial Conference, which entered its last day on Thursday. India is not in favour of extending the moratorium as it is causing tariff revenue losses of an estimated $10 billion to the developing countries every year. For India, the losses could be about $500 million every year. The moratorium can't be extended in the absence of a consensus decision. Countries can choose not to raise duties on e-commerce transmissions, said officials.
India said this emerging segment of the global economy holds the promise for economic development and prosperity for developing countries, including the least developed countries.
Why developing countries must unite to protect the WTO’s dispute settlement system (The Conversation)
Summit of the Future: Advancing African Perspectives for a Networked and Inclusive Multilateralism (International Peace Institute)
In September 2024, the UN will hold the Summit of the Future in New York, bringing together world leaders to “forge a new international consensus” on how to “deliver a better present and safeguard the future.” One of the outcomes of the summit will be a Pact for the Future covering five key areas: sustainable development and financing for development; international peace and security; science, technology and innovation, and digital cooperation; youth and future generations; and transforming global governance. While the intergovernmental negotiations on the Pact for the Future are meant to be consultative, they could include a broader cross-section of perspectives, including from the African continent.
Commonwealth, African Union renew call for reform of Global Financial System (The Commonwealth)
The Commonwealth Secretariat and the African Union have renewed their call for a reform of the global financial architecture to improve Africa’s access to international finance.
During a Presidential Dialogue in the margins of the 37th Ordinary Session of the Assembly of the African Union, leaders highlighted the urgent need to rectify the existing quota system, which often favours wealthier nations, leaving Africa with disproportionately limited resources and influence. The meeting took place in Addis Ababa from 16-20, February.
Speaking from the Ethiopian capital, Commonwealth Secretary-General, The Rt Hon Patricia Scotland KC, said: “The global financial architecture lacks balance and fails to consider the vulnerability of many African economies in climate adaptation. As far back as 2018, the Commonwealth said that it’s not fit for purpose. “If you look at what is happening in so many of our countries when it comes to climate change, you can see that the financial structure does not consider Africa’s vulnerability. It simply doesn’t work, and it cannot be fair.
UNCTAD Report Reveals Dual Trend in Global OFDI Policies Amid Rising Sustainability, Security Concerns (BNN Breaking)
The latest Investment Policy Monitor by UNCTAD has cast a spotlight on the evolving landscape of outward foreign direct investment (OFDI) policies worldwide. As nations grapple with balancing economic growth with sustainability and national security, the report underscores a dual trend of both facilitating and restricting OFDI.
The Monitor’s findings indicate that while there is an increasing inclination towards facilitating OFDI for sustainable development, restrictive measures are also on the rise. This reflects a global effort to harness the benefits of OFDI, such as economic diversification and access to new markets, while mitigating potential risks to national security and sustainable development goals (SDGs).
Particularly, developed countries are leading the charge in integrating sustainability criteria into their OFDI promotion policies, aligning foreign investments with the SDGs. However, the engagement in promoting OFDI towards developing nations remains limited, highlighting a gap in leveraging foreign investment as a tool for international development.
G20 ministerial meeting in Rio: reaching out to the “Global South” (EEAS)
Brazil took the Presidency of the G20 last December. It is the next of a series of emerging economy Presidencies, starting with Indonesia in 2022, India in 2023, and to be followed by South Africa in 2025. The current Brazilian government wants to show that “Brazil is back” on the multilateral scene after the Bolsonaro era and enhance the role of the “Global South”. G20 meetings are always a critical moment in international relations. G20 members represent indeed more than 80% of the world’s GDP and they can play a crucial role in steering the world away from a global confrontation.
The G20 is a useful framework to exchange views, but not really a decision-making body. Nevertheless, a successful Brazilian G20 Presidency would be particularly important to show that, despite political differences, this forum can help make progress on critical global issues such as social inclusion, the green transition and the reform of the multilateral governance.
The G20 Foreign Ministers meeting in Rio de Janeiro was also the first such meeting with the African Union as a permanent G20 member. This matters greatly, because in 25 years from now, one out of four people in the world will be living in Africa.
At UNEA-6, Heads of State call for greater cooperation on the environment (UN Environment)
Heads of State and Government, Ministers, senior UN officials, members of civil society and the private sector gathered today at the UN Environment Programme (UNEP) headquarters in Nairobi for the High-Level Segment of the sixth session of the UN Environment Assembly (UNEA-6). World leaders expressed determination to accelerate multilateral action on the triple planetary crisis of climate change, nature loss and pollution.
“UNEA-6 is the first intergovernmental global meeting after COP28. This places upon this Assembly a tremendous responsibility to expeditiously deliver on its agenda in full, and thereby demonstrate the power of international cooperation and effective multilateralism,” President Ruto told delegates. “This is a challenging task, which is complicated by the fact that nations of the world are all grappling with a dynamic complex of interconnected and multifaceted threats, risks, uncertainties and shocks, ranging from sluggish economic growth, conflict and wars, and geopolitical fragmentation.”
“We can push back against the triple planetary crisis if we show unity of purpose, at this Assembly and beyond. Purpose to shun fossil fuels and look to renewable energy sources. Purpose to conserve and restore the natural world and our lands, which give us life. Purpose to keep harmful chemicals, pollution and waste out of our ecosystems and yes, out of our bodies,” said Inger Andersen, Executive Director of UNEP.
See also: World must move beyond waste era and turn rubbish into resource: UN Report (UN Environment)
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South Africa celebrates first AfCFTA export to Ghana amidst global trade disruptions (Bizcommunity)
The opportunities the African Continental Free Trade Area (AfCFTA) agreement creates for the development of intra-African trade are becoming apparent, according to Philip Myburgh, executive head of trade and Africa-China, business and commercial clients at the Standard Bank Group, amid disruptions to traditional trade routes, unpredictable shipping times, and skyrocketing freight tariffs caused by the conflict in the Red Sea region.
“Last month, South Africa exported its first shipment of goods to Ghana under the AfCFTA agreement. The goods shipped were forged grinding balls and high chrome grinding media products supplied to the platinum, gold, ferrochrome, base metal, power generation, and cement industries.” However, several other markets remain to be explored,” says Myburgh.
“Two features make Ghana a strong trading partner: its location on the west coast and its two deepwater ports. Takoradi and Tema offer logistical advantages to seaborne traffic from South Africa. And Ghana, often called the ‘Gateway to West Africa,’ offers easy access not only to Ghanaian markets but also to other countries in the region.”
dtic, IFC pact to boost investment, job creation (SAnews)
The Department of Trade, Industry and Competition (the dtic) and the International Finance Cooperation (IFC), part of the World Bank Group, have signed the 2nd Phase Cooperation Agreement aimed at stimulating investment and job creation. The agreement outlines areas of co-operation in the form of technical advisory services.
Speaking at the signing ceremony held in Pretoria, IFC Regional Director: Southern Africa, Claudia Conceicao, said the agreement has resulted in real outcomes, including investments and job creation, and not just changes to laws and regulations. Conceicao said the new phase of the Cooperation Agreement will further support South Africa’s initiatives, particularly in the renewable energy sector, creating a more conducive environment for private sector investment and contributing to sustainable economic growth and development.
Zambia borders get cutting-edge baggage scanners (COMESA)
In a significant milestone aimed at bolstering both border security and trade facilitation, a flag-off ceremony marked the commencement of the deployment of cutting-edge baggage scanners as part of the Zambia Borders Post Upgrade project. The state-of-the-art equipment, valued at Euros 210,000, is poised to address gaps in detecting illegal items at the borders and ensure transparent cross-border movements.
The advanced baggage scanners, officially handed over to the Zambia Revenue Authority, are equipped with state-of-the-art detection capabilities. This initiative, funded by the European Development Fund (EDF) Trade Facilitation Programme, has allocated Euros six million to Zambia for the upgrading of three pivotal border posts – Nakonde, Mwami, and Chirundu.
Uganda trade surplus with DRC hits $53m, its highest in East Africa (The East African)
Uganda registered the highest trade surplus with the Democratic Republic of Congo (DRC) amounting to $53.07 million (Ush208.9 billion) in January, according to the Ministry of Finance Performance of the Economy report. The report, which highlights the monthly performance of different sectors of the economy, noted that DR Congo received more exports from Uganda than any other East Africa Community (EAC) member state, followed by South Sudan at $41.68 million (Ush164 billion), Rwanda $23.1 million (Ush90.9 billion) and Burundi at $5.25 million (Ush20.6 billion).
The performance saw Uganda’s exports to the EAC partner states grow to $231.47 million while imports stood at $209.17 million.
The EAC remained the top destination of Uganda’s exports, accounting for 37.6 percent of the total market share, followed by the Middle East, and European Union. However, Uganda trades at a deficit with Asia, the rest of Africa, and Europe of $267.64 million, $118.15 million, and $6.64 million, respectively.
Rwanda’s Economic Performance Strengthened in 2023 Despite Continued Challenges (World Bank)
Rwanda’s economy grew at 7.6% in the first three quarters of 2023 despite a challenging global environment and the recent floods that destroyed agricultural produce and infrastructure in April-May 2023. This is according to the 22nd edition of the Rwanda Economic Update (REU): Mobilizing Domestic Savings to Boost the Private Sector in Rwanda. The report adds that the services sector, sustained domestic demand, and the rebound of the industrial sector, contributed to the robust growth and the positive economic trajectory.
The report, whose special focus is on the private sector, underscores the critical link between private sector investment growth and domestic savings capacity, which is presently limited. Despite notable achievements in savings mobilization, Rwanda’s savings rates lag other East African countries, impacting financial resources for businesses, especially small and medium-sized enterprises.
Climate Action in Ethiopia: Acting Now to Build Resilience and Leverage Opportunities (World Bank)
A new World Bank report released today finds that annual average losses to gross domestic product (GDP) are expected to range between 1-1.5% of GDP and to rise to 5% by the 2040s, potentially pushing millions of Ethiopians into poverty. The new Country Climate and Development Reports (CCDR) for Ethiopia sounds the alarm regarding the increasing impact of climate change that are threatening Ethiopia’s development prospects. The drought of recent years–the most severe in 40 years–has been devastating for people in the arid pastoral areas. Simultaneously, flooding has damaged infrastructure and disrupted livelihoods in other parts of the country.
“Merging structural reforms with adaptation strategies is pivotal because it can substantially reduce expenses arising from climatic disasters such as droughts and floods, and can help Ethiopia harness opportunities, especially in agriculture” said Ousmane Dione, the World Bank Country Director for Eritrea, Ethiopia, South Sudan and Sudan. “Although formulating policies that account for the various levels of geographic vulnerability to climate change is key, it is equally important to encourage collaboration with regional governments in order to develop tailored solutions that effectively address their specific challenges,” he added.
Egypt’s Pivot Towards Sub-Saharan Africa And Strengthening Economic Ties (Forbes Africa)
A notable shift seems to be taking place in Egypt’s economic strategy in a new era of collaboration with several regions in sub-Saharan Africa (SSA). And the country’s banks such as CIB (Commercial International Bank) are playing a part in this transformative journey.
“Kenya made sense. East Africa is close to Egypt, the language is similar, and Kenya is the gateway. The Kenyan market is one of the most advanced digitally and digital is the perfect way to, with a controlled investment, grow a large footprint quickly,” says the bank’s Managing Director Hussein Majid Abaza.
The introduction of CIB Kenya could herald an era in which Egypt is seeking to foster trade partnerships. The bank’s niche lies in facilitating exports and it will seek to grow business links between the two countries such as with tea, where Egypt is the second-largest market for Kenyan tea exports.
Trade liberalization initiatives and investment trade missions have underscored Egypt’s commitment to opening new markets on the continent. The country’s trade dynamics seem to show its resilience and adaptability, with the country emerging as a leading exporter to COMESA countries in 2022, reaching $3.4 billion. “The continent is the right place to be; it is where growth is, and where growing populations are,” says Abaza.
Brazil prepares to export poultry meat to Egypt (Poultry World)
The announcement was made during a visit of Brazilian President Luiz Inácio Lula da Silva to Egyptian President Abdel Fattah al-Sisi in Cairo. The Egyptian government recognised the equivalence of the Brazilian inspection system and elevated Brazil to the ‘pre-listing’ category for exporting animal proteins. The measure benefits at least 30 slaughterhouses that were waiting for this authorisation to ship products for more than 4 years.
Before this agreement, the renewal of the license of Brazilian establishments for export required in-person audits by Egyptian authorities, according to the Ministry of Agriculture and Livestock (Mapa).T he procedure not only implied high costs for Brazilian exporters, but also overloaded Mapa’s federal agricultural tax auditors and limited the number of establishments authorised to export to Egypt.
Nigeria gets 60% Afreximbank energy sector funding - Oramah (Daily Nigerian)
The African Export-Import Bank, Afreximbank, says Nigeria is among the largest beneficiaries accounting for about 60 per cent of its US$30 billion funding of the energy sector in Africa. The Afreximbank said it has been able to make modest contributions in the oil and gas sector because the bank was predominantly African in ownership and control. Prof. Benedict Oramah, President of the African Export-Import Bank, said this on Wednesday at the ongoing 7th Nigeria International Energy Summit (NIES 2024) in Abuja.
EAC member states urged to boost intra-trade initiatives (The Star)
East African Community member states have been urged to adopt initiatives that promote intra-trade. East African Community Principal Secretary Abdi Dubat said the region’s economies and livelihoods of citizens are predominantly dependent on agriculture. The agricultural sector accounts for 25 per cent to 40 per cent of the gross domestic product of EAC partner states (Kenya, Uganda, Tanzania, Rwanda, Burundi and the Republic of South Sudan).
Kenya’s trade with the East African Community’s partner states increased by 8.8 per cent in 2022, from $1.65 billion in 2021 to $1.79 billion. This was captured in the EAC Trade and Investment Report 2022. It was the highest value compared to trade values between Kenya and other regional blocs.
By 2021, the largest export market for Kenyan products within the EAC was 30 per cent to Uganda, 15 per cent to Tanzania, 10 per cent to Rwanda and eight per cent to the Democratic Republic of Congo. However, Dubat said there are still challenges that face intra-trade within the EAC community. They include technological constraints, market access barriers, non-tariff barriers and poor market linkages. Dubat said most smallholder producers are unable to meet the stringent market requirements due to low production and low quality of produce.
South Africa Could Slash R89.9 Billion SACU Bill by Renegotiating Revenue Model (BNN)
South Africa stands on the brink of potentially saving R89.9 billion in the forthcoming year by advocating for a revised revenue-sharing formula within the Southern African Customs Union (SACU). This revelation emerged from the National Treasury’s comprehensive Budget Review following the Finance Minister’s pivotal budget address, which underscored the critical need for a fairer financial arrangement reflective of South Africa’s economic stature and contributions within SACU.
The financial implications of the existing revenue-sharing model are substantial, with South Africa remitting R79.8 billion to SACU in the 2023/24 financial year, a figure projected to escalate to R89.9 billion the following year. This substantial outlay underscores the urgency for South Africa to renegotiate the terms of the agreement, aiming for a distribution mechanism that more accurately reflects its economic input and the volume of trade it facilitates within the union.
Renegotiating the SACU revenue-sharing model presents a pragmatic avenue for South Africa to substantially reduce its financial contributions, aligning them more closely with its economic prowess and pivotal role in regional trade. A recalibrated model could ensure that contributions are proportionate to each member’s economic activities, thereby fostering a more balanced and equitable economic environment within SACU. Such a renegotiation would not only bolster South Africa’s fiscal position but also set a precedent for fair economic partnerships based on mutual respect and equitable benefit.
SADC Secretariat supporting SMEs in the SADC EPA region to export to the European Union (EU) market (SADC)
The Southern Africa Development Community (SADC) Secretariat through the EPA Unit has embarked on a series of national capacity-building and awareness-raising workshops for the SADC Economic Partnership Agreement (EPA) States on market requirements for exporting to the EU market. These capacity building workshops are organised through the SADC Trade Facilitation Programme (TFP) which is supported by the EU under the 11th European Development Fund (EDF). The Programme is implemented over a five-year period (2019-2024) with a budget of €15m (US$16.45m).
SADC shares its economic priorities to EU in the context of the AfCFTA (SADC)
Ms. Angele Makombo N’tumba, the Deputy Executive Secretary Responsible for Regional Integration for the Southern African Development Community (SADC) on 22 February 2024 shared the economic opportunities available in the SADC region to the European Union (EU) in the context of the African Continental Free Trade Area (AfCFTA) during the annual EU Africa Regional Trade Seminar.
The EU Africa Trade Seminar was held in a hybrid format at the EU delegation offices in Gaborone, Botswana, with other participants taking part from the European Commission headquarters in Brussels, Belgium. The seminar was aimed at assessing the future trade policy direction of the EU with Africa, considering key factors such as the AfCFTA, the climate and food crisis, the growing significance of critical raw materials in EU-Africa relations, the impact of the EU Green Deal policy, the requirement for infrastructure value chains and connectivity for the continent’s development, and the evolution of economic partnership agreements in Africa.
Ms. Makombo N’tumba said the EU accounts for 28% of Africa’s total trade and plays a crucial role in accelerating trade and regional economic integration. She emphasised that the AfCFTA serves as a catalyst for industrialisation and integration within the SADC region, and holds the key to unlocking economic potential for Africa, offering a pathway to unleash the continent full capabilities and drive transformative growth.
Aviation experts push for a Model Bilateral Air Services Agreement (COMESA)
Aviation officials from the Eastern Africa-Southern Africa and Indian Ocean region are making steady progress in reviewing and having a model Bilateral Air Services Agreement (BASA) that conforms with the provisions of the Yamoussoukro Decision of 1999. Once fully adopted and implemented, the model BASA will clear the way for a single African Air Transport Market which will boost the sector.
Experts have long called for a Single African Air Transport Market contending that it would strengthen intra-regional connectivity between the capital cities of African countries. A single unified air transport market would be an impetus to the continent’s economic integration and growth agenda.
“BASA is one of the fundamental means of ensuring air transport interconnectivity between States and the current exercise is geared towards streamlining the instrument to conform with the provisions of the YD,” said the Minister who was represented by the Minister of State for Transport Hon. Fred Byamukama Adopting a model BASA, he said will hasten the process of reviewing BASAs among Member States of COMESA, the East African Community and the Intergovernmental Authority on Development (IGAD).
Three States ready to pilot the COMESA electronic Certificate of Origin (COMESA)
Three COMESA Member States, Eswatini, Malawi, and Zambia, have successfully integrated and interfaced their national systems with the COMESA Electronic Certificate of Origin (e-CO) system. They are now poised to commence the first phase of piloting its implementation. The COMESA e-CO is a vital component of the COMESA digital Free Trade Area (FTA) Action Plan, which includes e-Trade, e-Logistics, and e-Legislation. The development and implementation of the COMESA e-CO fall under e-Logistics, aimed at facilitating intra-regional trade.
This initiative will eventually replace the manual Certificate of Origin procedures currently in use by Member States. It comes with a web-based e-CO system accessible via web browsers, aligning with the COMESA Protocol on Rules of Origin and its implementation Guidelines. The COMESA Secretariat is overseeing the e-CO implementation through the Divisions of Trade and Customs, and Information and Networking.
The 42nd meeting of the Committee of Experts of the Conference of Ministers of Finance, Planning and Economic Development (COM2024) kicked off today in Victoria Falls, Zimbabwe with a call for countries to transition into inclusive, low carbon, and resource-efficient economies by tapping into home-grown innovative solutions for financing. The annual ECA Conference of Ministers is being hosted by hosted by the Government of Zimbabwe on the theme of ‘Financing the transition to inclusive green economies in Africa: Imperatives, opportunities, and policy options’ between 28 February- 5 March, 2024.
Antonio Pedro, Deputy Executive Secretary at the ECA indicated that since the last Conference of Ministers, the world has fallen deeper into economic fragility, climate change, conflict, and distrust. Sadly, Africa has not been spared from these global trends. “We must accelerate the adoption of just and sustainable transitions, which require long-term structural changes and adequate investment,” said Mr. Pedro. African countries, he said, have the ability to create their own solutions to solve their problems. This should be a collective focus as in the continued fight to reform global systems.
The ECA Deputy Executive Secretary highlighted the key transformative areas that can have catalytic and multiplier effects across all the SDGs.
The 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union (AU) on 17 and 18 February 2024 marked another significant milestone in the implementation of two energy flagship initiatives supported by the European Union’s Global Technical Assistance Facility (EU GTAF).
The Summit’s Executive Council made pivotal announcements following last year’s recommendations of the Ministerial decision-making body of the AU that underscore the continent’s commitment to reliable, affordable and sustainable electricity and the development of its energy sector.
The government representatives: Called for the adoption of the African Single Electricity Market (AfSEM) with its Continental Power Systems Masterplan (CMP) to become an AU Agenda 2063 Flagship Project. AfSEM aspires to become the world’s largest electricity market by 2040 and through the CMP the necessary infrastructure is created; Adopted several key documents of the AfSEM and CMP which provide a solid foundation for the next steps in the implementation of these two key initiatives and will facilitate strategic planning as well as the harmonisation of the legal framework within the African energy sector; Called on the AU Member States to allocate financial resources for the implementation of the AfSEM and CMP.
Brazil urges ‘new globalization’ at G20 meet overshadowed by Ukraine (Yahoo News)
Brazil called for a “new globalization” to address poverty and climate change as it opened a meeting Wednesday of finance ministers from the world’s top economies, but the Ukraine and Gaza wars risked overshadowing the plea. “The global economic outlook is full of challenges,” Brazilian Finance Minister Fernando Haddad told his counterparts from the Group of 20 leading economies.
Brazil, which took over the rotating presidency of the G20 from India in December, is pushing for the group to prioritize the fights against poverty and climate change, alleviating the crushing debt burdens of low-income nations, and giving developing countries more say at institutions like the International Monetary Fund and World Bank. Also on the agenda: increasing taxes on corporations and the super-rich.
G20 to mention conflicts but sidestep controversies in joint statement (The Japan Times)
Group of 20 finance leaders meeting in Brazil this week are expected to make only a passing reference in their closing statement to regional conflicts, according to a draft version, due to deep divisions over wars in Gaza and Ukraine. The draft communique, far shorter than previous years as host nation Brazil works to sidestep geopolitical controversies, also said the likelihood of a soft landing in the global economy has increased but that uncertainty remains high.
“Risks to the global economic outlook are more balanced,” with faster-than-expected disinflation and more growth-friendly fiscal consolidation underpinning growth, the draft said.
Call for Action: G20 Finance Our Future for the Win (Global Citizen)
Together with other international civil society organisations, Global Citizen is calling for a redesign and upgrade of the world’s financial system. In a world rocked by crises, trillions that could be spent on addressing climate change, biodiversity loss, spreading hunger and conflicts, and investment in robust health and food systems, are instead being lost to inefficient systems no longer fit for the 21st century. A redesign by G20 finance ministers in 2024 is essential for our common future.
ANALYSIS: What influence can Africa wield at G20? (Premium Times Nigeria)
The African Union’s (AU) recent inclusion in the G20 has raised questions about its readiness to represent Africa’s interests and influence global policy on climate change, energy and reform of multilateral bodies. The just-concluded 37th AU summit provided cause for optimism that the organisation can advance Africa’s interests on the international stage while helping to resolve global problems. The summit outlined its G20 priorities, set the modalities for who would attend and clarified how the AU’s participation would be financed.
The AU’s six priorities at the G20 over the next three years are: fast-tracking Agenda 2063, advocating for reform of international financial institutions, enhancing agricultural output, achieving a just energy transition, more trade and investment for the African Continental Free Trade Area’s rollout, and improving Africa’s credit rating to boost investment in vaccine manufacturing and pandemic response.
BRICS Plus: Navigating global challenges and broadening influence (ORF)
The BRICS alliance has emerged as a dynamic force with a vision that extends beyond mere cooperation. At its core lies the ambition to establish a global economic system where nations can freely trade using their own currencies, thus reducing reliance on foreign organisations and currencies. This approach is also encapsulated in the “BRICS Plus” concept, signifying an expansion of the BRICS group to include additional member countries. The recent inclusion of Iran, Egypt, Ethiopia, Saudi Arabia, and the United Arab Emirates (UAE), from January 2024, marks a significant milestone in the evolution of BRICS.
The BRICS expansion facilitates market growth by providing access to new markets and trade and investment opportunities. This potential surge in economic activity can enhance economic growth and stability within the group. Diversifying economic interests is critical in mitigating risks and creating a more resilient financial ecosystem.
In essence, incorporating new members into BRICS extends its economic and geopolitical significance, offering avenues for market expansion, trade growth, and amplified influence in global financial affairs. This expansion positions BRICS as a potential voice for the Global South in economic, trade, and investment matters. BRICS members have demonstrated solidarity, advocating for initiatives like the temporary suspension of intellectual property rules related to COVID-19 vaccines and treatments at the World Trade Organization (WTO).
MC13: Talks on new issues yield five outcomes (The Economic Times)
Amid pressure on developing countries to yield to the demands of richer nations to accept new issues such as environment, labour and gender to make the United Arab emirates -chaired World Trade Organisation MC13 a success, New Delhi Tuesday said that already at least five such outcomes were in place such as new disciplines on services domestic regulation that are expected to lower trade costs by over $125 billion globally.
India would benefit from a move of over 70 nations like UK, UAE and Australia who have agreed to take on additional obligations in the services sector under the Services Domestic Regulations pact. Members such as Albania, Argentina, Australia, Bahrain, Brazil, Canada, China, Colombia, Costa Rica, Japan, Korea, New Zealand, Norway, Saudi Arabia, Singapore, Switzerland, UAE, UK and US are taking these additional obligations under the General Agreement on Trade in Services (GATS) to ease non-goods trade among themselves and extend the similar concessions to all other members of the WTO.
Developed nations make many promises on development issues in WTO, but very little action: India (Deccan Herald)
India on Wednesday said that the developed nations in the WTO have made many promises on issues pertaining to development, but ‘very’ little action happens on those matters. India also said that the developing countries urgently need flexibility in existing rules so that infant and young industries in these countries get support in terms of conducive policies, incentives, subsidies and level playing field.
In the working session on Development, India highlighted that historically, on the issue of development, there has been no dearth of promises made by developed countries, “on account of which the vulnerabilities of the developing countries including the LDCs (least developed countries) have only amplified further.” India on Wednesday objected to consideration of new issues for ministerial mandates unless past decisions and unfulfilled mandates were acted upon.
India, South Africa block investment agreement at WTO’s Abu Dhabi meet (Business Standard)
India and South Africa have filed a formal objection against an investment agreement at a World Trade Organization meeting in Abu Dhabi, blocking its adoption, a document showed and delegates confirmed on Wednesday. The Investment Facilitation for Development (IFD) Agreement, agreed by some 125 countries or about three-quarters of the WTO’s members, aims to simplify red tape, improve the investment environment and encourage foreign direct investment. But according to WTO rules, any one of its 164 members can block a deal from being adopted by the body - a step which is necessary to ensure that countries are in compliance.
DG Okonjo-Iweala encourages members to close remaining gaps to secure outcomes at MC13 (WTO)
WTO Director-General Ngozi Okonjo-Iweala on 28 February commended members for the “tremendous amount of progress” achieved after three days of intense work at the 13th Ministerial Conference (MC13) in Abu Dhabi. With less than 24 hours before the scheduled closing session of MC13, she called on ministers to go the extra mile and find convergence on the various issues at stake.
DG Okonjo-Iweala told members at a meeting of Heads of Delegations (HoDs) that the clock is ticking but stressed that if delegations keep working hard, a positive MC13 outcome is at hand and ministers should be able to go back home in time on 29 February, the last day of the Conference.
See also: DG Okonjo-Iweala to business: Your engagement and support are crucial (WTO)
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Settling on funding solutions for expedited grid infrastructure set as a Just Energy Transition Investment Plan priority (Engineering News)
Finalising funding solutions for the expedited expansion of South Africa’s electricity transmission grid has been identified as a key priority for the Just Energy Transition (JET) project management unit (PMU), which is located within the Presidency. The unit is overseeing the implementation of the country’s JET Investment Plan (JET-IP), which was approved in 2022 with the goal of stimulating R1.5-trillion (about $80-billion) in clean electricity, new energy vehicles and green-hydrogen investments, while also supporting workers and communities whose lives and livelihoods will be made vulnerable by the transition.
The JET-IP has received grant and concessional-loan pledges worth $11.6-billion from several developed countries. However, there is growing criticism over the lack of visible projects, with most of the concessional debt having flowed into the general fiscus in the form of policy loans and the bulk of the grant funding approvals having been made in favour of consultants rather than communities.
NLC protests: Why Nigeria’s economy is in such a mess (BBC)
Nigeria is currently experiencing its worst economic crisis in a generation, leading to widespread hardship and anger. The trade union umbrella group, the Nigeria Labour Congress (NLC), held protests in the main cities on Tuesday, calling for more action from the government. Like many nations, Nigeria has experienced economic shocks from beyond its shores in recent years, but there are also issues specific to the country, partly driven by the reforms introduced by President Bola Tinubu when he took office last May. Overall, annual inflation, which is the average rate at which prices go up, is now close to 30% - the highest figure in nearly three decades. The cost of food has risen even more - by 35%.
New Malawi Economic Monitor Calls for Commitment to Economic Reforms to Sustain the Emerging Recovery (World Bank)
Malawi’s medium-term growth outlook is improving because of bold reforms undertaken by the government in 2023 to stabilize the economy, although other numerous downside risks related to climate change, continued foreign exchange challenges, delays in the implementation of key macro-fiscal and structural reforms persist. Growth is therefore expected to increase only moderately in 2024, according to the latest World Bank Malawi Economic Monitor (MEM). The MEM includes a set of recommendations, including creating the foundations for export-led growth by investing in agricultural commercialization, continuing reforms to the Affordable Input Program, and policy support for exporting industries.
Plan to Turn EAC Into a Confederation With One Constitution Revealed (Kenyans.co.ke)
The East African Community (EAC) Affairs Principle Secretary (PS) Abdi Dubat has revealed that a plan is underway to transform the East African Community states into a political confederation. Speaking during an interview at Spice FM on Tuesday, February 27, Dubat stated that EAC was in the process of formulating a Constitution to govern the confederation. According to the PS, a committee was tasked with gathering information and conducting stakeholder engagement in all the member states, before making the first draft of the Constitution.
The Board of Directors of the African Development Bank Group has approved a $150 million Trade Finance Unfunded Risk Participation Agreement facility between the African Development Bank and Trade & Development Bank (TDB). The agreement is expected to boost intra-Africa trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the aspirations of the African Continental Free Trade Area (AfCFTA)
African Development Bank will provide guarantee cover of 50% and up to 75% for transactions in low-income countries and transition states on a risk share basis with TDB to a number of qualifying local and regional banks in the Common Market for Eastern and Southern Africa (COMESA) region, which are active in the trade finance sector. The facility is expected to support about $1.8 billion of trade over the next three years.
ECOMOF 2024: UBA Affirms Pledge to Stimulate African Economic Expansion (UBA)
Africa’s Global Bank, United Bank for Africa (UBA) Plc has reaffirmed its unwavering commitment to spearhead economic growth across the continent through targeted policies aimed at maximising the benefits derived from the mining and oil sectors. According to Chief Executive Officer, UBA Africa, Abiola Bawuah, who spoke at the just concluded 4th ECOWAS Mining and Petroleum Forum (ECOMOF 2024), by formulating and advocating investor-friendly policies by the sovereigns and financial intermediation and supports provided by UBA, the mining sector would be catalysed and transformed into robust economic pillars contributing substantially to the country’s gross domestic product.
Local reactions to the withdrawal of Burkina Faso, Mali and Niger from ECOWAS (Global Voices)
A few weeks before withdrawing from ECOWAS, Burkina Faso, Mali and Niger, all currently governed by military regimes and at the time under sanction by ECOWAS, had announced the creation of a military bloc called the Alliance of Sahel States (AoSS, or AES in French). January 28, 2024 marked the beginning of a major diplomatic crisis at the heart of the Economic Community of West African States (ECOWAS) as three of its member states— Burkina Faso, Mali and Niger —withdrew from the institution with immediate effect.
Reactions from political actors such as civil society in the remaining ECOWAS countries were swift and varied. In an article in the Ivorian news site Koaci, former Nigerian senator and human rights activist Shehu Sani was quoted as expressing regret at the decision by these military regimes, which, in his view, reflected a lack of understanding among the leaders.
See also: How will Niger benefit from lifted ECOWAS sanctions? (DW)
African leaders demand financial systems reform; launch ‘Africa Club’ at 37th African Union Summit (Down To Earth)
The final leg of the 37th African Union Summit concluded on February 18, 2024. Heads of states and governments of the member countries of the African Union (AU) convened in Addis Ababa, Ethiopia to deliberate upon issues of education, climate, economy and more.
It is widely known that countries from Africa have made minimal contributions to today’s climate crisis, yet suffer disproportionately from its impacts. African governments have increasingly relied on using public finance for mitigation efforts, often at the cost of other pressing national priorities, including the implementation of the United Nations-mandated Sustainable Development Goals (SDG).
The need to increase access to better quality finance for climate and development efforts in developing countries has grown in recent years. For the same, there has been growing recognition of the need to make changes to the global financial system, which includes the interlinkages between various actors such as international financial institutions, economic governance and financial regulatory structures, and make them fit for purpose, especially to address the financing needs of developing countries.
President Oramah delivers 8th Goddy Jidenma biennial lecture (Afreximbank)
Delivering a lecture titled “The Trade Route to Poverty Reduction in Africa in a De-globalising World” at the Eighth Biennial Lecture of the Goddy Jidenma Foundation in Lagos on Friday, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, noted that “the world is de-globalising at an unprecedented pace, and the implications for developing countries could be dire.”
Prof. Oramah told guests that the African Continental Free Trade Agreement (AfCFTA) provided an opportunity for Africa to take its destiny into its own hands by opening regional supply chains that would foster economic growth and development. As a solution to the 42 fragmented payment systems across Africa, Afreximbank, in partnership with the AUC and the AfCFTA Secretariat, had launched the Pan-African Payment and Settlement System (PAPSS), which domesticates all intra-African trade payments. Afreximbank was supporting that system with a $3-billion settlement fund. By May 2024, an African currency trading platform would also be launched under the auspices of PAPSS.
GBIS 2024 Opening Remarks Underscore Role of Collective Progress (Global Black Impact Summit)
There is a need for inspirational leaders who can guide the global Black community during times of crisis, Bermuda’s Minister of Economy and Labor Jason Hayward stated during the opening of Global Black Impact Summit (GBIS) on February 27 in Dubai. Delivering the opening remarks, Minister Hayward emphasized the importance of collective progress, stating, “True liberation and empowerment can only be achieved through collective progress. We must find a way to uplift the entire community.”
African Energy Transition Takes Center Stage at GBIS (Energy Capital & Power)
At the Global Black Impact Summit in Dubai on February 27, a panel discussion on energy transition, moderated by NJ Ayuk, Executive Chairman of the African Energy Chamber, focused on Africa’s pivotal position in the global energy arena. The dialogue commenced with an exchange between Ayuk and Energy Analyst Amena Bakr. “In energy, we have to tell our own story,” stated Bakr, highlighting the need for African countries to assert their right to develop renewable energy resources while balancing concerns about oil and gas exploitation. She pointed out the disparity in emissions between more developed countries and Africa, where only 3% of global emissions originate.
Reversing the decline in LDCs’ services exports post-pandemic (Trade for Development News)
Although the services sector has emerged as a new engine of economic growth, the lingering effects of the COVID-19 pandemic have severely affected services exports from the least developed countries (LDCs), with an approximate loss of almost USD29 billion in foregone exports over the past three years. While global services exports have rebounded from the shock of COVID-19, the recovery in the LDCs is lagging. Urgent actions by the LDCs and their trading and development partners to improve utilization of the WTO Services Waiver, incentivize foreign direct investment (FDI) and technology transfer, promote regional trade initiatives, leverage Aid for Trade, and address the digital divide can help reverse this trend, enabling the LDCs to benefit from a services-led transformation.
Graduation from LDC status represents an important milestone in the development of LDC countries. LDCs have however at the same time pointed out the challenges they face trying to integrate into the global economy while international support measures are being phased out. The WTO’s LDC group has therefore been pursuing a smooth transition mechanism in the WTO. The aim of this is to extend LDC-specific preferences, provisions, waivers and exemptions after graduation.
Bangladesh’s graduation from LDC status is scheduled for 26 November 2026. The new Bangladesh Patents Act is a significant development which both developing countries and LDCs should follow with interest. In the context of the WTO and the TRIPS Agreement, there appears to be a possibility that challenges may be raised in respect of both the content of the new law and the manner in which its provisions will be applied in practice. The fact that it appears to have been based on the need to protect a specific national industry (pharmaceuticals) could be a complication factor.
Digitalising MC13: Global institutions sign pact to promote digital trade (Trade Finance Global)
A group of leading global institutions signed an agreement to promote a unified goal of developing a neutral, open, non-profit, and inclusive digital platform for sharing trade data. This initiative aims to dismantle existing barriers and enhance inclusivity and participation by significantly reducing the costs and time involved in cross-border trade. The agreement, known as the Teaming Agreement, was finalised during the 13th Ministerial Conference (MC13) of the WTO in Abu Dhabi. If implemented effectively, the economic impact of this agreement could be significant, potentially reducing trade transaction costs by 80%, narrowing the trade finance gap by 50%, shortening some cross-border processing times from 25 days to just one day, and boosting SME efficiency by 35%.
New disciplines on good regulatory practice for services trade enter into force (WTO)
The entry into force of new disciplines on services domestic regulation, announced at the 13th Ministerial Conference (MC13) in Abu Dhabi on 27 February, is expected to lower trade costs by over USD 125 billion worldwide. WTO members participating in the Joint Initiative on Services Domestic Regulation began incorporating the new disciplines on good regulatory practice into their existing services commitments once the disciplines were successfully concluded in December 2021. The certification process for these disciplines has now been completed for 52 WTO members, with more expected to be finalized in the coming weeks.
WTO members seek convergence on fisheries subsidies and agriculture at MC13 (WTO)
WTO members today (27 February) engaged in intense discussions to get closer to meaningful outcomes on fisheries subsidies and agriculture at the 13th Ministerial Conference (MC13) in Abu Dhabi. Ministers participated in dedicated meetings on both issues followed by convergence-building sessions to seek to bridge the remaining gaps. Members also endorsed the entry into force of new disciplines on services domestic regulation and advanced work on plastics pollution, fossil fuel subsidy reform, and environmental sustainability.
Members of three environmental initiatives share plans for next phase of work at MC13 (WTO)
Co-sponsors of the three environmental initiatives at the WTO presented on 27 February, at the 13th Ministerial Conference (MC13) in Abu Dhabi, the next steps they are taking to advance work on plastics pollution, environmental sustainability, and fossil fuel subsidy reform, building on the extensive analytical work and experience sharing they have conducted since MC12.
“I welcome the substantive work carried out by the initiatives over the last two years, with the support of stakeholders and experts in the environment community. They are an example of how ambitious WTO members are finding innovative ways to reinforce the WTO’s deliberative function to address 21st century challenges,” DG Okonjo-Iweala said in remarks released to mark the launch of the MC13 outcomes by the three environmental initiatives — the Dialogue on Plastics Pollution and Sustainable Plastics Trade (DPP), the Trade and Environmental Sustainability Structured Discussions (TESSD), and the Fossil Fuel Subsidy Reform (FFSR) Initiative.
“Each of the three environmental initiatives are exploring the interaction between trade and sustainability in their respective areas of work. Yesterday we had a conversation with the full membership about trade and sustainable development, including trade and industrial policy and policy space for industrial development. Fisheries subsidies is another sustainability item we are dealing with. There are a lot of complementarities among these initiatives and the ongoing work at MC13,” DDG Paugam said at the close of the three back-to-back press conferences conducted respectively by each group.
PH backs advancement of sustainable trade at WTO meet (Philippine News Agency)
The Philippines supports the endorsement of the Coalition of Trade Ministers on Climate’s Framework on Voluntary Actions to address trade-related climate challenges at the World Trade Organization (WTO) 13th Ministerial Conference (MC13) in the United Arab Emirates. “We believe that the work of the Coalition complements the existing work at the WTO on trade and sustainable development. Thus, we welcome discussions and thematic sessions on the transfer of goods and technologies that support climate adaptation and mitigation. In line with this, we must also ensure a fair and just transition towards achieving our climate goals so that no one will be left behind,” Trade Secretary Alfredo Pascual, who is leading the Philippine delegation at the MC13, said. The Coalition was established in 2023, with the Philippines as one of its founding members. As of this month, it has 34 member countries.
Second Ministerial meeting of the Coalition of Trade Ministers on Climate (COTMC)
A key outcome of the meeting was the endorsement of a communiqué, accompanied by a Menu of Voluntary Actions, with a clear message for the WTO to pursue ambitious commitments in support of the global response to the climate crisis. It also calls upon all WTO Members to accept the Agreement on Fisheries Subsidies, underscoring the critical role of sustainable practices in trade.
5 things you should know about ‘clean energy’ minerals and the dirty process of mining them (UN News)
Although many will argue that we’re not moving fast enough to deal with the climate emergency, the energy sector is starting to turn away from energy sources that rely on big, dirty power stations, sending plumes of greenhouse gases into the atmosphere, and turn to cleaner sources such as solar and wind. However, to power a low-emission world, we will need to mine a lot more minerals, and this is often a dirty process. Here is what to know about “energy transition minerals” and how we can limit the damage caused by getting them out of the ground.
World unites at UN Environment Assembly to combat ‘triple planetary crisis’ (UN News)
The latest meeting of the “world’s parliament on the environment” opened in Nairobi, Kenya, on Monday with a clear call for stronger global action to address the “triple planetary crisis” of climate change, nature loss and pollution. More than 7,000 delegates from 182 countries are scheduled to take part in the sixth session of the United Nations Environment Assembly (UNEA-6) which runs through Friday. Delegates are convening in the Kenyan capital as climate change intensifies, a million species face the risk of extinction, and pollution remains among the world’s leading causes of premature death.
Financing Nature-based Solutions for a better future (UNEP)
The world has gathered here in Nairobi to seek inclusive multilateral solutions to the triple planetary crisis: the crisis of climate change, the crisis of nature and biodiversity loss and the crisis of pollution and waste. Globally, protection-related Nature-based Solutions represent roughly 80 per cent of additional land area needed by 2030 but require only 20 per cent of additional finance.
Sessions during the first day included a presentation by an EIA Senior Intelligence Analyst on the state of wildlife trafficking in West and Central Africa, an open and lively discussion by attendees on their own experiences of tackling illegal wildlife trade – especially the key role played by corruption – and a presentation on illegal trade in the Republic of the Congo by the World Wildlife Fund (WWF).
Welcoming attendees on Monday, Justin Gosling, EIA Senior Project Coordinator (Securing Criminal Justice in West and Central Africa), outlined how East Africa was previously a continental hub for the trafficking of wildlife contraband such as elephant ivory and pangolin scales, but that improved enforcement in that region spurred much of the criminal activity to relocate elsewhere.
Brazil’s Lula spotlights Global South in G20 presidency (SaltWire)
Brazil’s President Luiz Inacio Lula da Silva has set his sights on giving the Global South a larger voice in world decision-making, using his country’s presidency this year of the G20 group of largest economies. Lula’s call for reform of global governance and the updating of the eight-decades-old United Nations system was amplified at last week’s meeting of G20 foreign ministers in Rio de Janeiro. Brazil had already taken strides in this direction by insisting that the African Union should be a formal member of the G20, citing the example of the European Union. The AU will participate fully in this year’s G20 on behalf of African nations. The push continues this week as G20 finance ministers meet in Sao Paulo.
The global economy appears on track for a soft landing, but activity and growth prospects remain weak. The cyclical position of G-20 countries has proven stronger than previously anticipated as disinflation has so far proceeded without triggering recession and emerging market economies have demonstrated improved resilience.
Looking ahead monetary policy is expected to loosen somewhat in 2024. However, medium-term growth prospects remain subdued—reflecting secular trends and challenges including weak productivity growth, ageing, geoeconomic fragmentation and climate vulnerabilities. These trends also undermine income convergence and increase the vulnerability of economies to external shocks.
With the economic recovery on firmer footing, risks to the outlook are more balanced. On the upside, global growth could be higher than expected if the pace of disinflation is faster than anticipated and brings forward monetary easing, or fiscal consolidation is more gradual than initially envisaged. On the downside, additional commodity price spikes, persistent labor market tightness, or renewed supply chain tensions would reignite inflationary pressures.
Climate vulnerabilities also weigh on medium-term global growth prospects, falling disproportionately on Africa, where meaningful demographic dividends have yet to be realized. Even though the pace of globalization has slowed, growth opportunities remain—including from trade in digital services,
Universal connectivity gets a $9 billion private sector boost (UN News)
Around 2.6 billion people remain offline worldwide, according to data from the specialized UN agency, which drives innovation in communications technology. As telecommunications infrastructure forms the backbone of connectivity and digital transformation, it is vital for closing the global digital divide and overcoming development impediments in areas from education and health to government services and trade, the agency said.
To achieve that, ITU has called for $100 billion in overall investments by 2026 to provide the expertise and resources required to extend universal, meaningful connectivity and sustainable digital transformation to every corner of the globe. ITU also launched Partner2Connect in 2021 to reach this goal. Today, more than 400 organizations have committed to investing over $46 billion in the coming years to realize this shared vision.
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Onus largely on private sector to recover economy, says Deloitte (Engineering News)
With the 2024/25 national Budget not having provided much relief to taxpayers, and the economy having a high debt to gross domestic product (GDP) ratio and slow growth rates, South Africans need to redefine resilience, says consultancy Deloitte. “As government opens up sectors to more private investment, there is hope that corporates will be able to provide the impetus to bolster the economy,” said Deloitte Africa tax and legal MD Itereleng Kubeka.
While the Minister announced R943-billion in infrastructure investment by government over the next three years, much greater capital investment would be required, not just through delivery by the public sector, but with the intent of crowding in the private sector via public-private partnerships, while enhancing the quantity and quality of infrastructure delivery by government, Deloitte reported.
Itac finds steel dumping harming Sacu industry, recommends anti-dumping duties against Chinese imports (Engineering News)
Trade agency the International Trade Administration Commission of South Africa (Itac) has, following an investigation into alleged dumping of steel products from the People’s Republic of China, determined that dumping of products originating in or imported from China is taking place. Itac also determined that the industry of the regional bloc Southern African Customs Union (Sacu) is experiencing material injury and that there is a causal link between the alleged dumped imports and the material injury experienced by the Sacu industry.
The commission made a final determination to recommend to South Africa’s Trade, Industry and Competition Minister Ebrahim Patel that definitive anti-dumping duties be imposed against imports of flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, plated or coated with zinc, and of a thickness of less than 0.45 mm originating in or imported from China.
The South African Coil Coaters Association, which is a Sacu industry body, lodged an application. Steelmaker ArcelorMittal South Africa is also the major producer of the products investigated and provided material injury information during the investigation.
Bridging Continents: Türkiye and South Africa Forge Stronger Trade and Investment Ties (BNN)
In a world that’s rapidly globalizing, the distance between continents is shrinking, not just in miles but in economic barriers. The recent flourishing of trade and investment relationships between Türkiye and South Africa stands as a testament to this phenomenon. With both nations experiencing growth in these areas, it’s clear that the efforts to enhance bilateral ties are bearing fruit. But what’s driving this surge in economic cooperation, and how are businesses and economies on both sides of the equation standing to benefit?
The story of Türkiye and South Africa is more than just about numbers and economic indicators. It’s about building bridges between continents and cultures. With over 60 Turkish companies thriving in South Africa and more than 65 South African companies making their presence felt in Türkiye, the economic landscape is evolving. This evolution is not just beneficial for the businesses directly involved but also for the economies and people of both nations.
Kenya oil dealers in panic as Uganda picks Tanga port over Mombasa (The East African)
Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its fuel through the Port of Tanga instead of the Port of Mombasa following a spat with Nairobi. Uganda had initially announced that it was in talks with Tanzania to use the Port of Dar es Salaam to import its fuel after Kenya refused to give it concessions to use its pipeline. But the road distance between Dar es Salaam and Kampala is 1,715.6km, which is 49.5 percent longer that the distance of 1,147.6km between Mombasa and Kampala. This shorter distance means that Uganda saves up to $35 per cubic meter for using Mombasa instead of Dar.
But this has changed after it emerged last week that Uganda and Tanzania are locked in talks that will see the former import fuel via the Port of Tanga, which is far closer to Kampala. Tanga is the oldest port in East Africa and is the second largest in Tanzania. While it’s far smaller than the Dar and Mombasa ports, Tanzania has been boosting its capacity to handle more cargo in recent years.
Zim rolls out trade reforms (The Herald)
Zimbabwe has implemented trade facilitation reforms despite facing challenges that impede it to fully and meaningfully participate in global trade, Foreign Affairs and International Trade, Dr Frederick Shava yesterday told a meeting of Landlocked Least Developing Countries (LLDC) in Abu Dhabi.
“To date, Zimbabwe has so far implemented a number of trade facilitation reforms with notable progress in the application of information and communication technology solutions to facilitate trade through the use of automated systems for customs data. “We are also in the process of completing the process to implement the Zimbabwe electronic single window which will further facilitate trade administrative processes at our national borders. This will complement the ongoing establishment of one-stop border posts at our national borders.
“In spite of the many trade facilitation reforms Zimbabwe is pursuing and recently implemented, we continue to share challenges faced by developing countries occasioned by multiple crises, which include inflation, energy and food prices, and financing, as well as disruptions in supply chains and elevated trade costs - which all acutely affect LLDCs,” Dr Shava said.
Zim needs to ramp up manufacturing: AfCFTA (The Zimbabwe Mail)
Buy Zimbabwe, an initiative to promote consumption of local products, says Zimbabwe should ramp up its manufacturing capacity to withstand competition and tap into opportunities under the African Continental Free Trade Area (AfCFTA).
In its 2023 annual report, Buy Zimbabwe said without a robust buy local initiative with set local content thresholds, the opportunities in Africa will be lost. “With the coming on board of the African Free Continental Trade Area (AFCTA) which is estimated to have a combined GDP of US$2 trillion, it is important for Zimbabwe to enhance her local productive capacity. “Without a robust buy local initiative with set local content thresholds the opportunities in Africa will be missed.
In this context, Buy Zimbabwe will have its programmes this year anchored on four pillars that are accelerated engagements with the public sector to ensure local content requirements are enforced; 80 percent top-of-mind awareness; development of local databases to track domestic producers and link them to markets.
In partnership with the Standards Association of Zimbabwe and QMIZ (Quality Management Institute of Zimbabwe), it will implement local content rating programmes. “It is estimated that between 10 percent and 15 percent of Zimbabwe’s Gross Domestic Product goes through public procurement. “Enhancing multiplier effects in this sector is critical for growth. “Presently, the law in Zimbabwe gives preference to domestic suppliers. “However, the lack of local content thresholds has left the exercise amenable to imports,” said Buy Zimbabwe.
Ethiopia, Zimbabwe enhancing trade, economic cooperation (ENA)
Ethiopia and Zimbabwe striving to elevate their ties through enhancing trade, investment and fostering overall development, Ethiopian Embassy in Harare said. Ethiopian Ambassador Plenipotentiary to the Republic of Zimbabwe, Rashid Mohammed who is also non-resident ambassador to the Republic of Zambia and the Republic of Mauritius, reaffirmed commitment to strengthening bilateral ties, fostering economic cooperation, and promoting cultural exchange between the two nations.
He stated that both countries supported each other in many fields such as aviation, air force, education and assistance each other in technical support, capacity-building programs, and humanitarian aid in times of need. Both are highly elevating their long diplomatic relationship working collaboratively in the areas of trade, economic cooperation and continued to maintain cordial diplomatic ties based on shared interests and mutual respect.
Ethiopia finalizes preparations to trade under AfCFTA (ENA)
Ethiopia has set to exchange goods under the African Continental Free Trade Area (AfCFTA) following endorsement of country’s tariff line, Ministry of Foreign Affairs announced. In a presser held yesterday, Foreign Affairs State Minister, Ambassador Misganu Arega expressed that leaders of the African Union member states have endorsed Ethiopia’s tariff line for goods to be traded under the AfCFTA. “We have now the opportunity to join the nine countries which are implementing the AfCFTA,” he said. Tariff concessions have been made on commodities on aggregate, he noted.
Meanwhile, asked about Ethiopia’s further engagement in the AU ordinary sessions, the State Minister said that the country has informed leaders of the Union clearly about Somalia’s case appertained to the Ethio-Somaliland MoU. “Ethiopia’s foreign policy underlines the need of regional integration, cooperation and mutual benefits. We have no history of invading or annexing others. In case, we need to work on boosting the people to people integration since we both have same people,” he said.
Ethiopia’s Search for the Sea (tralac)
On New Years Day 2024, the Prime Minister of Ethiopia, Abiy Ahmed signed a memorandum of understanding (MOU) with the president of Somaliland for access to the Red Sea. This angered Somali (Mogadishu) officials who claim the territory as their own. The MOU allegedly promises Somaliland a stake in Ethiopian Airlines and the possibility of the recognition of their sovereignty in exchange for sea access. Ethiopia has been landlocked since the independence of Eritrea (previously part of Ethiopia) in 1993, and the Somaliland Deal is part of Ethiopia’s drive to regain sea access given limited viable alternatives.
FG uncovers 32 routes of smuggling food out of Nigeria (Daily Trust)
The federal government has uncovered 32 routes through which food items are smuggled out of the country. Speaking at a conference on Public Wealth Management organized by the Ministry of Finance Incorporated (MOFI) which was held in Abuja on Tuesday, Vice President Kashim Shettima said, “Just three nights ago, 45 trucks of maize were caught being transported to neighbouring countries.
“Just in that Ilela axis, there are 32 illegal smuggling routes. And the moment those foodstuffs were intercepted, the price of maize came down by N10,000. It came down from N60,000 to N50,000.” So, there are forces that are hell-bent on undermining our nation but this is the time for us to coalesce into a singular entity,” he said.
IMF Staff Completes 2024 Article IV Mission to Mauritius (IMF)
“The Mauritian economy has rebounded strongly from the impact of the pandemic, supported by the deployment of pre-pandemic fiscal and external buffers. Real GDP growth reached 8.9 percent in 2022 from rebounding tourism and manufacturing. Rapid growth was sustained in 2023—estimated at 6.9 percent—with output now having exceeded its pre-pandemic level. Vibrant tourism, social housing construction, and continued strong performance of transport and financial services buoyed growth.
“Advancing structural reforms, including by sustaining compliance with Anti Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards, improving governance, reducing skill mismatches in the labor market, and fostering digitalization and climate-resilient infrastructure investment is key to supporting private sector investment and promoting economic diversification.
Unlocking the Potential of Women and Adolescent Girls in Madagascar will Reduce Poverty (World Bank)
Malagasy women and girls face multiple disadvantages that affect their ability to accumulate human capital in education and health, participate in economic opportunities, and make decisions, according to a new World Bank report “Unlocking the Potential of Women and Adolescent Girls – Challenges and Opportunities for Greater Empowerment of Women and Adolescent Girls in Madagascar”.
Women and girls cannot access equal opportunities as men and boys in the country can and are disproportionally affected by the impacts of climate change and the COVID-19 pandemic, which increases their vulnerability to poverty, violence, and discrimination.
“Investing in the social and economic empowerment of women and adolescent girls can lead to sustainable economic growth and benefit the country. This is the reason why the World Bank is supporting Madagascar through the recent East Africa Girls’ Empowerment and Resilience Regional Program (EAGER) and other programs in the portfolio to promote girls’ education, increase women’s productivity in the labor market, and strengthen the capacity of local administrators, community leaders, and service providers reforms to implement gender equality reforms effectively,” says Atou Seck, World Bank Country Manager for Madagascar.
Renewed reform efforts helping to boost private sector activity and investment would help boost growth, which is currently slowing amid high domestic inflation, and would support the creation of more high-quality jobs, according to a new OECD report. The first OECD Economic Survey of Egypt projects GDP growth to ease to 3.2% in fiscal year 2023/24, before increasing gradually to 5.1% by fiscal year 2025/26. Growth is expected to be driven by growing consumption, provided inflation subsides and despite the gradual withdrawal of fiscal support. Investment is set to remain weak as long as financing conditions remain tight in the context of the continuing fight against inflation. Export growth is expected to pick up if geopolitical tensions in the region recede.
Kenya, Uganda in drive to end feed shortage (The East African)
Kenya, Uganda and Somalia are among six countries to pilot a programme to plug persistent shortage of animal feed and fodder. Under the programme dubbed “Resilient African feed and fodder systems (RAFFS),” researchers want to improve livestock production and, by extension, nutrition. “The lack and poor quality of feed is a driver of production inefficiencies translated into the high cost of livestock sourced foods unaffordable for those that need the nutrients most,” African Union-Inter African Bureau for Animal Resource’s (AU-IBAR) Dr Sarah Ashanut Ossiya said.
According to Josefa Sacko, the African Union Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, this inefficiency is “further exacerbated by over 40 percent wastage of existing feed resources. The recent triple global crises of climate change, drought and flooding, Covid-19 and conflict in Russia – Ukraine and other conflicts have severely exposed the vulnerabilities in African feed and fodder systems.”
“The recent drought in the Greater Horn of Africa region resulted in a massive loss of over 9.5 million livestock, valued at over $2 billion,” she added. Other losses are invaluable livestock genetic resources developed over decades, serving as a key factor for livelihoods and incomes, especially for pastoralists and smallholders who contribute over 80 percent of meat and milk production in the region. “Subsequently, Africa imports about $4 billion worth of livestock sourced foods annually, effectively exporting millions of lucrative youth jobs,” added Sacko.
Algeria announces road connection, free trade area with Mauritania (The Arab Weekly)
Wary of regional isolation, especially after Morocco’s launch of its “Royal Atlantic Initiative,” facilitating Sahel countries’ access to the Atlantic Ocean, Algeria has turned its sights towards its southern neighbour Mauritania.
President Abdelmadjid Tebboune and his Mauritanian counterpart Mohamed Ould Cheikh El Ghazouani opened on Thursday a gate at the border of the two North African countries. They also agreed to set up a free trade zone and build an 847 kilometre road, which will link the Algerian town of Tindouf to Mauritania’s Ezouirat. Experts see the ambitious project as likely to face a few hurdles considering its lack of clear vision, its cost and the sparse population inhabiting the area.
This agreement comes a few days after OPEC member Algeria also announced it would invest $442 million in energy projects in Mali, Niger and Libya. Algeria has furthermore said it will open four other free trade zones in 2024 with Mali, Niger, Tunisia and Libya.
High cost of intra-EA cash transfers slows the Common Market (The East African)
East Africans are still struggling to find cheap options to send money from one country to another within the region, making it one of the greatest barriers to trade and slowing the implementation of the Common Market Protocol. Latest data from the World Bank shows that some money remittance corridors in the region are among the most expensive in the world, and much higher than the global average, despite efforts to bring down transaction costs to ease trade.
An analysis by the IMF reveals that many factors are behind the high cost of cross-border payments in emerging markets and developing economies, mostly in the origin countries. The results, published last month in a report dubbed IMF and World Bank Approach to Cross-Border Payments Technical Assistance. “More developed infrastructure and enabling legal and regulatory frameworks for payments in the sender jurisdiction are associated with lower average cost of sending remittances as well as average fees,” the IMF said.
COMESA, EAC to triple horticulture growth (Tanzania Daily News)
Public and private sectors of the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) have joined forces to triple growth of the horticultural industry in a decade’s period. The two RECs will in March 2024 roll out a COMESA-EAC Horticulture Accelerator (CEHA) and its marshal plan to fast-track growth of the industry, beginning with avocado, onion and Irish potato value chains.
“Avocado, onion, and Irish potato can generate a combined 230 million US dollars per year for approximately 450,000 smallholder farmers of a minimum farm size of 0.4 hectare with 60 avocado trees, or 1 hectare for onion farmers,” the CEHA Coordinator, Mr Apollo Owuor, said. Other value chains, such as tomato and cabbage may be added in future as will be recommended through the CEHA structures, Mr Owuor told a maiden stakeholders’ meeting for Tanzania chapter in Arusha, under the auspices of the country’s champion of horticultural industry, TAHA.
“CEHA targets to achieve 12 key performance indicators, including increasing intra-regional trade in fruits and vegetables to 25 million US dollars and global exports from 416 million US dollars in 2021 to 950 million US dollars by 2031,” Mr Uwour told the meeting in Arusha recently. The idea is to harmonise COMESA-EAC fragmented regulatory and standard policies, coordinate production chain, address poor storage and transportation snags for perishable crops and ensure availability of quality and sufficient seeds. “For instance, some ports within the EAC that serve the rest of land-linked countries lack what we call green lanes to fast-track clearance of perishable goods to the overseas markets, so CEHA seeks to tackle such a challenge,” he explained.
ECOWAS lifts coup sanctions on Niger in a new push for dialogue (Africanews)
West Africa’s regional bloc known as ECOWAS has lifted travel, commercial and economic sanctions imposed on Niger that were aimed at reversing the coup staged in the country last year, a senior official announced Saturday. The sanctions will be lifted with immediate effect, the president of the ECOWAS Commission, Omar Alieu Touray said after the bloc’s meeting in Nigeria’s capital, Abuja, that aimed to address existential threats facing the region as well as implore three junta-led nations that have quit the bloc to rescind their decision.
The summit of the 15-nation regional economic bloc known as ECOWAS in Nigeria’s capital, Abuja, comes at a critical time when the 49-year-old bloc’s future is threatened as it struggles with possible disintegration and a recent surge in coups fueled by discontent over the performance of elected governments whose citizens barely benefit from mineral resources.
See also: ECOWAS lifts sanctions on Niger weeks after Sahel states announce withdrawal from bloc (Peoples Dispatch)
ECOWAS lifts sanctions against Guinea and Mali (Africanews)
After Niger, Guinea, and Mali. In a statement released on Sunday, February 25, the Economic Community of West African States (ECOWAS) announced “lifting financial and economic sanctions against the Republic of Guinea” and “lifting restrictions on the recruitment of citizens of the Republic of Mali for positions within ECOWAS institutions.”
The regional organization had convened a new extraordinary summit on Saturday to discuss “politics, peace, and security in the Republic of Niger,” as well as “recent developments in the region.” The lifting of sanctions against Guinea and Mali was not specified during the final address by Omar Alieu Touray, the President of the ECOWAS Commission on Saturday evening.
Exports venturing into uncharted territories of Africa, Asia, Europe: Indian Govt (Business Standard)
At a time when global trade is facing geo-political uncertainties, India’s exports of goods like automobiles and gold jewellery have ventured into uncharted territories of Central Asia, Africa and Latin America, according to an analysis by the commerce ministry. The analysis has shown that India has penetrated into what are termed as “absolutely new markets” in regions such as Africa, Central Asia, Latin America and North America during April-December 2023.
The “absolutely new markets” refer to areas where India did see any export during April-December 2022, but healthy growth of certain principal commodities like motor vehicles, two- and three-wheelers, petroleum products, sugar, gold and other precious jewellery were recorded in April-December 2023.
Exports of these commodities to the absolutely new markets during April-December 2023 stood at USD 234 million as against nil shipments during the same period of 2022. It added that these commodities captured a greater number of markets in the Central Asia, Africa, and European regions.
Navigating the Evolving Landscape between China and Africa’s Economic Engagements (IMF)
China and Africa have forged a strong economic relationship since China’s accession to the WTO in 2001. This paper examines the evolution of these economic ties starting in the early 2000s, and the subsequent shift in the relationship triggered by the commodity price collapse in 2015 and by the COVID-19 pandemic. The potential effects on the African continent of a further slowdown in Chinese growth are analyzed, highlighting the varying effects on different countries in Africa, especially those heavily dependent on their economic relationship with China.
The African Union Commission and World Bank Seal a New Grant Agreement to Foster Regional Integration (World Bank)
The African Union Commission (AUC) and the World Bank have marked a significant milestone in their partnership with the signing today of a grant agreement to support the implementation of the Africa Think Tank Platform Project aimed to help think tanks across the continent to produce policy-relevant research on critical cross-border priority issues.
The $50 million project will enable the AUC to create and set up the structures and systems necessary to operate a continent-wide platform for effective cooperation and harmonization on regional policy issues among country-level policymakers, regional associations, and think tanks. Additionally, it will facilitate resource mobilization and the creation of facilities to attract funds from various stakeholders to support the platform’s operations. This new project brings the total value of World Bank-supported projects, approved by its Board of Directors in the past six months, to $131 million, all aimed at supporting the implementation of AUC’s strategic priorities.
Ukraine, Gaza Polarize G-20 as Global Money Chiefs Seek Sidestep (Bloomberg)
The world’s top economic policymakers figure they’ll have to steer clear of two conflicts convulsing global politics — the wars in Ukraine and Gaza — to make progress on anything else at this week’s G-20 summit in Brazil. There’s plenty more to talk about. The host nation is pushing ambitious plans on inequality and climate change. Finance ministers are keen to address trade and corporate taxation. Central bankers want to discuss cross-border money flows and the tricky last phase of the global inflation fight.
UN Environment Assembly opens with calls for stronger multilateral action (UN Environment)
Ministers of environment and other leaders from more than 180 nations convened today in Nairobi for the start of the sixth session of the United Nations Environment Assembly (UNEA-6). With a focus on strengthening environmental multilateralism to address the triple planetary crisis of climate change, nature loss and pollution, this year’s Assembly will be negotiating resolutions on issues ranging from nature-based solutions and highly hazardous pesticides to land degradation and drought, and environmental aspects of minerals and metals.
As climate change intensifies, a million species head towards extinction, and pollution remains one of the world’s leading causes of premature death, UNEA-6 will see countries consider some 19 resolutions, part of a broader push to spur more ambitious multilateral environmental action. The resolutions cover, among other issues, circular economy; solar radiation modification; effective, inclusive, and sustainable multilateral actions towards climate justice; sound management of chemicals and waste, and sand and dust storms.
More than 7,000 delegates from 182 UN Member States and more than 170 Ministers have registered for UNEA-6, taking place under the theme, effective, inclusive and sustainable multilateral actions to tackle climate change, biodiversity loss and pollution. Delegates this week will include Heads of State, representatives from government, civil society, and the private sector.
See also: What is the UN Environment Assembly and why does it matter? (UN News)
G20 ministers in Rio call for reform of international institutions (Yahoo News)
G20 foreign ministers called for comprehensive reforms of the most important international organizations as they met in Rio de Janeiro, while war continues to rage in several parts of the world. “Everyone agreed that the most important multilateral institutions such as the UN, the World Trade Organization, the World Bank and the International Monetary Fund must be reformed in order to meet the challenges of today’s world,” said Brazilian Foreign Minister Mauro Vieira on Thursday at the end of the meeting. The United Nations is indispensable as an organization for peace and security, he said.
“As far as the multilateral development banks and the International Monetary Fund are concerned, there was also broad agreement on the need to facilitate access to finance for the poorest countries and to improve the representation of developing countries in the governing bodies,” said Vieira.
How the G20 Can Build on the World Economy’s Recent Resilience (IMF)
With recent improvement to the global-near term outlook, G20 policymakers have an opportunity to rebuild policy momentum, setting their sights on a more equitable, prosperous, sustainable, and cooperative future. After several years of shocks, we expect global growth to reach 3.1 percent this year, with inflation falling and job markets holding up. As our new report to the G20 makes clear, some of these trends—such as AI—hold promise to lift productivity and improve growth prospects. We badly need it—our projections for medium-term growth have declined to the lowest in decades.
Against this backdrop, Brazil’s G20 agenda highlights key issues such as inclusion, sustainability, and global governance, with a welcome emphasis on eradicating poverty and hunger. This ambitious agenda, which the IMF is working to support, can guide policymakers at this pivotal moment in the global recovery.
India-Brasil-South Africa Dialogue Forum (IBSA) gains strength at G20 meeting (G20 Brasil)
Foreign Affairs ministers from the three Global South countries—who coincidentally make up the current G20 Troika—met to strengthen ties and align common agendas. “IBSA democracies strive to overcome poverty and are of great geopolitical importance within their regions,” explained Ambassador Eduardo Paes Saboia, Secretary for Asia and the Pacific at Brasil’s Ministry of Foreign Affairs.
Among Brasil’s expectations for the G20 presidency, in addition to the high-level discussions around the three main priorities established for this mandate, is the revitalization and strengthening of the India-Brasil-South Africa Dialogue Forum (IBSA).
At the February 22 meeting, the ministers decided to strengthen the IBSA Fund, a South-South cooperation initiative; and to hold a first meeting of authorities belonging to the forum on food security and nutrition, in alignment with one of the three priorities defined by President Lula for the G20
“It’s about putting the poor in the budget and the rich in income tax,” said Minister Wellington Dias (G20 Brasil)
Brazil’sMinister Wellington Dias for Development and Social Assistance, Family and the Fight Against Hunger—also Coordinator of the Task Force for the G20 Global Alliance against Hunger and Poverty—held a press conference this Wednesday (21) at the G20 headquarters in Brasilia. Dias spoke at the opening of the task force’s first meeting, to be held between February 21 and 23, via videoconference.
The meeting will focus on four reports by international organizations about tackling poverty and hunger—including topics such as sustainable food production, social protection, building resilience, and ways of making international collaboration more effective.
LDCs may enjoy trade benefits for three years after graduation (The Financial Express)
Retaining privileges after LDC graduation gets into focus as commerce ministers and senior trade officials of the World Trade Organisation (WTO) countries start hectic negations on the rules of trade, amid geopolitical tensions raging around. Ngozi Okonjo-Iweala, Director-General of the WTO, delivered her inaugural statement at the session. Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade and chair the conference, also spoke.
The LDCs have sought continuity of duty-free, quota-free market access, waiver in the intellectual property rights and other trade-support measures for at least six years after the graduation.In his written statement, the state minister said: “We sincerely hope that Members will make a decision in favour of a transitional arrangement regarding LDC-specific provisions for the LDCs after graduation.”
Forthcoming tralac Trade Brief: Bangladesh’s upcoming graduation from LDC status, its amended provisions for the protection of Patents and its ongoing use of the WTO TRIPS flexibilities
WTO meeting seeks modest outcomes, with global trade at ‘critical juncture’ (Reuters)
Trade ministers from around the world gathered in Abu Dhabi on Monday for a World Trade Organization meeting that aims to set new global commerce rules, but its chief Ngozi Okonjo-Iweala and delegates sought to curb expectations. The almost 30-year-old global watchdog, whose rules underpin 75% of global commerce, tries to strike deals by consensus, but such efforts are becoming more difficult amid signs that the global economy is fragmenting into separate blocs.
“Let’s not pretend that any of this will be easy,” Okonjo-Iweala said in her opening speech, describing the atmosphere as “tougher” than the WTO’s last 2022 meeting, citing wars, tensions and elections and signs that trade growth will undershoot the organisation’s own estimate.
Thani Al Zeyoudi, conference chair and UAE’s foreign trade minister said in an opening address: “The multilateral trading system with the WTO at its core is at a critical juncture; it is confronting many challenges. “I now ask all of you to show the world that the WTO is alive and well and fully capable to deliver results that matter to people everywhere,” he said.
“I think this week is really about trying to consolidate progress from two years ago and build on where possible, but I don’t think there’s going to be major new breakthroughs in new areas,” said Simon Conveney, Ireland’s Minister for Enterprise, Trade and Employment, referring to the WTO's 2022 meeting in Geneva.
Members urged to keep reinvigorating the WTO to deliver benefits for people through trade (WTO)
The 13th WTO Ministerial Conference (MC13) opened in Abu Dhabi on 26 February with a call to WTO members to seize the full potential of the multilateral trading system so that it delivers for the people it serves, accelerating the green transition and fostering socio-economic inclusion around the world. WTO Director-General Ngozi Okonjo-Iweala urged members to show leadership, flexibility and compromise to deliver important outcomes at MC13 for people and the planet.
New WTO-World Bank project seeks to boost Africa’s participation in digital trade (WTO)
Digital trade presents significant opportunities for economies to boost growth, create jobs and reduce poverty, but more needs to be done to help African economies harness these benefits. This is the objective of a new WTO-World Bank project presented by the WTO Director-General, Dr Ngozi Okonjo-Iweala, World Bank Vice Presidents Pablo Saavedra and Ousmane Diagana and the Trade Ministers of Benin and Rwanda, Shadiya Alimatou Assouman and Jean Chrysostome Ngabitsinze, at an event in Abu Dhabi on the eve of the 13th Ministerial Conference on 24 February.
See also these tralac blogs
The AfCFTA Digital Trade Protocol – clarification of key issues
The Digital Trade Protocol of the AfCFTA and Digitally-Driven Development in Africa
Selected news from the WTO
Ministers approve WTO membership of Comoros and Timor-Leste at MC13
Wave of acceptances of Agreement on Fisheries Subsidies at MC13 advances entry into force
DG Okonjo-Iweala urges trade ministers’ coalition to boost climate action through the WTO
Three-quarters of members mark finalization of IFD Agreement, request incorporation into WTO
WTO, ITC launch USD 50 million global fund for women exporters in the digital economy
Visit tralac’s MC13 resource page for more info.
Related News
Thirteenth WTO Ministerial Conference – Abu Dhabi, February 2024: Resource page
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks
The WTO’s 13th Ministerial Conference (MC13) took place from 26 February to 2 March 2024 in Abu Dhabi, United Arab Emirates, chaired by H.E. Dr Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade.
The Ministerial Conference brought together nearly 4,000 ministers, senior trade officials and other delegates from the WTO’s 164 members and observers as well as representatives from civil society, business and the global media to review the functioning of the multilateral trading system and to take action on the future work of the WTO. Initially scheduled for 26-29 February, the Conference was extended in a final push to reach outcomes on the various issues at stake. MC13 closed with the adoption of a Ministerial Declaration setting out a forward-looking reform agenda for the organisation.
Closing ceremony
The closing ceremony was held in the early hours of 2 March.
Remarks by the Chairperson of the Thirteenth Ministerial Conference:
“While we may not have accomplished everything, we set out to achieve, we have delivered some much-needed results. On all other work streams, efforts will continue in Geneva. And let us remember that outcomes can be harvested by the 2 General Council as soon as they are ready – in the interval to the next Ministerial Conference.”
“We all know that international cooperation is not only the best, but often the only way to address the challenges that affect global trade. Delivering the Abu Dhabi package of outcomes is a true testament to the value that Members continue to attach to the Organization and its pivotal role in ensuring an orderly global system of trade rules. Delivering these results also enhances trust and confidence in multilateralism, which is particularly valuable given the testing and uncertain times we find ourselves in.”
MC13 closing speech — Dr Ngozi Okonjo-Iweala
“We convened MC13 against an international backdrop marked by greater uncertainty than at any time I can remember. During the long hours of negotiation here, we saw moments of difficult but rewarding cooperation, as Ministers overcame intense disagreement, engaged in tough discussions, and found common ground. The beauty of the WTO is that each member has an equal voice, but that also comes at a cost. Nevertheless, we are a unique organisation and I think the cost is worth it.”
“[W]e have worked hard this week. We have achieved some important things and we have not managed to complete others. Nevertheless, we moved those pieces of work in an important way. At the same time, we have delivered some milestone achievements for the WTO — and laid the groundwork for more.”
“The path to progress is seldom linear. The WTO remains a source of stability and resilience in an economic and geopolitical landscape fraught with uncertainties and exogenous shocks. Trade remains a vital force for improving people’s lives, and for helping businesses and countries cope with the impact of these shocks.”
Watch the Closing Ceremony here.
Photo credit: © WTO / Prime Vision
Outcomes
The key outcome of MC13 is the Draft Abu Dhabi Ministerial Declaration, where WTO members committed to preserve and strengthen the ability of the multilateral trading system, with the WTO at its core, to respond to current trade challenges. The Ministerial Declaration underlines the centrality of the development dimension in the work of the WTO, recognising the role that the multilateral trading system can play in contributing towards the achievement of the UN 2030 Agenda and its Sustainable Development Goals. It also recognised the contribution of women's economic empowerment and women's participation in trade to economic growth and sustainable development.
A number of ministerial decisions and declarations were also adopted, covering areas ranging from dispute settlement and the work programme on e-commerce, to development-focused agreements (small economies, LDCs etc.) and cooperation in the areas of sanitary and phytosanitary (SPS) measures and technical barriers to trade.
MC13 outcomes: Ministerial decisions and declarations, adopted on 2 March 2024
pdf Abu Dhabi Ministerial Declaration (97 KB)
pdf Accession of the Union of the Comoros - Ministerial Decision (88 KB)
pdf Accession of the Democratic Republic of Timor-Leste - Ministerial Decision (88 KB)
pdf Work Programme on Small Economies - Ministerial Decision (70 KB)
pdf Dispute Settlement Reform - Ministerial Decision (70 KB)
pdf Work Programme on Electronic Commerce - Ministerial Decision (69 KB)
pdf TRIPS Non-violation and Situation Complaints - Ministerial Decision (64 KB)
Other Documents and Submissions
A collection of other documents and communications from WTO members were published prior to, and during, MC13. These cover an array of areas both existing and new to the WTO’s negotiating agenda, including accessions, agriculture, cotton, environmental issues, plastics, least developed country (LDC) and development-related issues, investment facilitation, and submissions from regional and political country groups, among other things.
tralac Analysis
What Happened at the WTO’s Thirteenth Ministerial Conference?
The results of the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) – held between the 26th of February and midnight on the 2nd of March in Abu Dhabi – were mixed. While there were some notably positive outcomes, MC13 failed to produce outcomes on three of the most important agenda items: agriculture, fisheries subsidies, and dispute settlement reform.
What MC13 Achieved for Least Developed Countries
In a communication dated 12 January, the LDC group listed their priorities going into MC13. Aside from LDC graduation transition matters, specific priorities included agriculture and food security, the WTO Agreement on Fisheries Subsidies, the moratorium on e-commerce and equality in accessibility to dispute settlement procedures. MC13 did not deliver much in the way of these matters – no agreement was reached on agriculture, fisheries phase two negotiations, or dispute settlement (where they agreed to continue work on negotiations rather than produce a draft agreement). That said, some progress has been made on the LDC graduation transition process (though modest), and special and differential treatment for LDCs.
This Trade Brief provides the background to, and also an update on an important aspect of Bangladesh’s graduation from least-developed country (LDC) status, scheduled for 26 November 2026. The specific focus is on the issue of providing protection for pharmaceutical patents, taking into account the history of the pharmaceutical industry in Bangladesh, and the significant role it plays in its economy. It reports on a significant new development, namely the adoption of the Patents Act of 2023. It explains how Bangladesh’s proposed course of action fits in with the applicable multilateral context, especially the WTO TRIPS Agreement, and flags the possibility of challenges which may arise.
What’s on the Cards for MC13? Reform, E-Commerce, Fish Subsidies and more
The World Trade Organisation’s (WTO) 13th Ministerial Conference (MC13) has begun in Abu Dhabi, UAE. The list of topics and deliverables to be covered on the agenda is overwhelming – if not in number, then at least in complexity. The Director-General of the WTO, Dr Ngozi Okonjo-Iweala, has insisted that no one agenda item supersedes the others in importance, stating that all agenda items “will affect real people”. One can summarise eight key areas of discussion on the agenda: these areas include e-commerce, fisheries subsidies, investment facilitation, agriculture, intellectual property (IP), the environment, development and LDC graduation, and – highly anticipated – WTO reform (including dispute settlement reform).
The WTO Dispute Settlement Impasse: What is happening?
The WTO’s Understanding on Dispute Settlement (DSU) provides World Trade Organisation (WTO) members with a legal framework for resolving trade disputes that arise between them when implementing WTO agreements. On 11 December 2019, however, the Appellate Body (AB) of the WTO ceased to function. The absence of the AB from the WTO dispute settlement system means that an essential feature of the multilateral trade regime embodied in the WTO, is in limbo. An appeal by the losing party in a WTO trade dispute against a panel report decided in favour of the winning party will remain unresolved and unenforceable, since there is no AB to hear new appeals.
In the News
MC13 ends with decisions on dispute reform, development; commitment to continue ongoing talks
WTO members concluded the 13th Ministerial Conference (MC13) in Abu Dhabi on 2 March with the adoption of a Ministerial Declaration setting out a forward-looking, reform agenda for the organization. Ministers also took a number of ministerial decisions, including renewing the commitment to have a fully and well-functioning dispute settlement system by 2024 and to improve use of the special and differential treatment (S&DT) provisions for developing and least developed countries (LDCs). They also agreed to continue negotiations in all areas where convergence was elusive at MC13.
Members of three environmental initiatives share plans for next phase of work at MC13
Co-sponsors of the three environmental initiatives at the WTO presented on 27 February, at the 13th Ministerial Conference (MC13) in Abu Dhabi, the next steps they are taking to advance work on plastics pollution, environmental sustainability, and fossil fuel subsidy reform, building on the extensive analytical work and experience sharing they have conducted since MC12.
“I welcome the substantive work carried out by the initiatives over the last two years, with the support of stakeholders and experts in the environment community. They are an example of how ambitious WTO members are finding innovative ways to reinforce the WTO's deliberative function to address 21st century challenges,” DG Okonjo-Iweala said in remarks released to mark the launch of the MC13 outcomes by the three environmental initiatives — the Dialogue on Plastics Pollution and Sustainable Plastics Trade (DPP), the Trade and Environmental Sustainability Structured Discussions (TESSD), and the Fossil Fuel Subsidy Reform (FFSR) Initiative.
DG Okonjo-Iweala on MC13: “We are going to get it done”
The Director-General said that while she was encouraged by members’ stamina and passion in advancing the MC13 preparations, “frankly speaking, we are still not where I would have wished us to be at this point in our preparatory processes…. But I remain positive because of the relatively positive tone in the negotiations,” she said. “This gives me hope that we’ll get more convergence in our negotiating positions.”
“The importance that we all attach to sending a strong, meaningful, and responsive political message from ministers is evident – particularly given the difficult period we are currently living in,” Ambassador Molokomme said. “Let us all keep in mind what is at stake, as we finalize the MC13 draft Declaration.”
DDG Ellard highlights members’ negotiating priorities and WTO reform issues ahead of MC13
DDG Ellard observed that a key priority for MC13 is to build on the achievements of the previous June 2022 Ministerial Conference, MC12, by concluding the second wave of negotiations on fisheries subsidies and ensuring the entry into force of the Agreement on Fisheries Subsidies. DDG Ellard said that other negotiating priorities include dispute settlement reform and extending the moratorium on the imposition of customs duties on electronic transmissions, which will expire if members do not renew it at MC13. In addition, members are considering whether to extend the TRIPS Decision on COVID-19 vaccines adopted at MC12 to COVID-19 diagnostics and therapeutics. She added that the negotiations on agriculture continue, with many members pointing to food security as an important priority.
With respect to WTO reform, she said that everyone agrees that the WTO needs reform, but members' views on what needs to be improved differ. She outlined three broad areas of reform: (i) negotiating new rules and revising the existing rules; (ii) reinvigorating the deliberative function of the organization; and (iii) improving the way the Secretariat assists members. She noted that many members are interested in reforming the regulation of subsidies, although their priorities differ. While some members concentrate on addressing state intervention in support of industrial sectors, some developing members seek policy space to promote industrialization.
DG Okonjo-Iweala: “Our work is cut out for us” on achieving concrete MC13 outcomes
In her capacity as Chair of the Trade Negotiations Committee, the Director-General welcomed the results from the Group of 7 trade ministers meeting in Osaka, Japan, on 29 October, which also included the participation of a number of developing country trade ministers.
The G7 trade ministers “were pleased about the results and it was heartening to hear ministers strongly reiterate the calls we had just heard at the SOM for us to work for concrete outcomes and a successful MC13,” she said. “All of them were desirous to have a successful MC13 but they acknowledged that, on some of the dossiers we have in front of us, differences still remain and have to be resolved... So, we have our work cut out for us. With about four months to MC13, every day must count to effectively utilize the political guidance and support we sought and got from senior officials and ministers to substantially advance our work towards concrete results at MC13.”
Senior Officials Meeting paves way for progress on deliverables at MC13
A two-day meeting of senior trade officials concluded at the WTO on 24 October with encouraging signs that negotiators in Geneva will have the political backing to achieve outcomes at MC13. The Chair of the General Council noted that the Senior Officials Meeting was the fourth station in preparations for MC13. The next stations will be a General Council meeting in early November, and the end of year meetings of the General Council and the Trade Negotiations Committee. “We hope that, by that time, we can flesh out the matters that have been endorsed and on which political guidance has been received,” Ambassador Molokomme said. “So, as you go back to capital and brief your ministers, I hope that our Senior Officials Meeting illustrated the urgent need for capital engagement at all levels — to ensure success at MC13 and beyond. We all know what is at stake.”
The chairs’ summary of the Senior Officials Meeting as well as oral reports from the facilitators can be found here.
More news from the WTO
New WTO-World Bank project seeks to boost Africa’s participation in digital trade
DG Okonjo-Iweala urges trade ministers’ coalition to boost climate action through the WTO
Three-quarters of members mark finalization of IFD Agreement, request incorporation into WTO
WTO, FIFA strengthen cotton partnership, call for increased investment in African cotton
DDG Hill emphasizes role of trade in fostering access to digital finance
Fisheries subsidies chair circulates draft text to ministers as basis for MC13 negotiations
Agriculture negotiations chair circulates revised text, aiming for outcome at MC13
TRIPS Council finalizes preparations for MC13
Chair introduces draft text for agriculture negotiations in run-up to MC13
Plastics Pollution Dialogue finalizes text for MC13 Ministerial Statement
Members make progress on trade and environmental sustainability outcomes for MC13
WTO members examine proposals to deepen discussions on trade and environment
WTO members address trade and development dimension of cotton, potential MC13 outcome
Agriculture negotiators discuss new proposals submitted by WTO members
Members to continue dialogue on extending TRIPS Decision to therapeutics and diagnostics
Small business group discusses access to information, capacity building, MC13 plans
Working group on food security moves closer to finalizing report and recommendations
DDG Paugam: Trade is becoming more political, more sustainable, more traceable
WTO members review farm policies, discuss food security, agri-food system resilience
Members advance discussion on challenges in SPS Agreement implementation ahead of MC13
Related News
tralac Daily News
Premium car market outlook murky as South Africans continue to hunt for Asian bargains (Engineering News)
The South African new-car market has been shifting steadily over the last few years as consumers continue to battle persistent economic headwinds. Times are tough. Interest rates, living costs, fuel prices and new-vehicle price tags are all high, driven by not only international turmoil, but also poor management of the domestic economy, especially in terms of power supply and logistics channels such as ports and rail infrastructure.
South Africans have reacted by opting for smaller and cheaper cars, as well as cars offering more extras and luxury compared with others in the same price band. Chinese brands have been the big winners here, as well as Japanese small-car importer Suzuki.
Despite its origins, Suzuki brings in most of its vehicles from India – the global hub for small-car plants. Suzuki, currently at number three in the domestic car market, has edged out its competitors one by one and now has Volkswagen, a local vehicle manufacturer, in its sights.
Kenya, UAE seal comprehensive economic partnership deal (The East African)
The United Arab Emirates (UAE) and Kenya have concluded a comprehensive economic partnership agreement (Cepa), UAE Minister of Foreign Trade Thani Al Zeyoudi said on Friday. Kenya, East Africa’s largest economy, was one of the first African countries with which the UAE launched bilateral trade deal talks in 2022 as part of a strategy to diversify its oil-based economy. Non-oil trade between the Gulf state and Kenya reached $3.1 billion in 2023, up 26.4 percent on 2022, Al Zeyoudi said in a post on social media platform X.
“We will now look to expand across sectors from food production and mining to technology and logistics,” he said of the agreement.
Uganda-EU Forum to focus on job creation, standards (The Independent Uganda)
The European Union-EU has reiterated its demand for standards in the imports from Uganda and other countries because the authorities must ensure the safety of the public. Amidst this vow, however, the EU says it will continue working with the Ugandan authorities and the private sector to ensure that the country meets the demands of the market.
For close to ten years, the EU has intensified standards, especially on fresh foods, like fruits and vegetables as well as cut flowers, with measures including blocking consignments. The Ugandan government also suspended the exportation of some agricultural products to the EU until the farmers, processors, and exporters met the required standards. Ambassador Jan Sadek, the Head of the EU Delegation in Uganda, said the demands of the people cannot be compromised.
The EU is also due to implement a policy where the region will not allow coffee from Uganda that is produced from areas that were forested by 2020, as part of efforts towards fighting degradation. Sadek says the EU is working with the local authority to ensure that Uganda beats the 2025 implementation deadline without disruptions in the coffee industry. He was speaking ahead of the 3rd Uganda-European Union Business Forum slated for early next month in Kampala.
Tanzania’s SGR connecting with Burundi, DR Congo gets Sh230 billion AfDB funding (The Citizen)
Tanzanian government has, on Friday 23 February, 2024, signed a Sh231.3 billion ($91.76 million) financing agreement with the African Development Bank (AfDB) to start the construction of a modern railway that seeks to connect it with the neighbouring countries, Burundi and Democratic Republic of Congo (DRC). The project is part of the Standard Gauge Railway (SGR) which stretches from the port of Dar es Salaam to connect Tanzania with the neighbouring countries through the central corridor of transportation.
The concessional loan targets to finance construction of sections six and seven of the modern railway, from Tabora to Kigoma and from Uvinza to Malagarasi. According to Dr Mwigulu Nchemba, the Minister for Finance, the construction of the 567 kilometres will be implemented in the space of seven years, starting from2024 to 2031. “The goal of this project is to connect Tanzania with Burundi through a modern railway from Malagarasi to Musongati and in the future, connect with DRC from Malagarasi,” said Dr Nchemba during the signing ceremony.
Minister of Finance and National Planning, Hon. Situmbeko Musokotwane held a high-level session of the Public-Private Partnership (PPP) Council of Ministers of Zambia, along with the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Economic Commission for Africa (UNECA) to discuss the outcomes of a four day workshop intended to build capacities of government officials and to mobilise finance for Zambia’s sustainable development.
The PPP Council of Ministers was preceded by a two-part capacity building workshop on PPPs in Zambia. Ms. Eunice G. Kamwendo, Director, UNECA Sub-Regional Office for Southern Africa (SRO-SA) pointed out that the imperative for prioritizing PPPs in infrastructure development is underscored by the pressing needs across Africa. She said the African Development Bank estimated an annual infrastructure requirement of $130–170 billion and a staggering financing gap ranging from $68–$108 billion in Africa.
She emphasized that to address these challenges Zambia needed a strategic engagement with the private sector to develop robust PPP framework and bridge the infrastructure gaps that hinder progress and prosperity. She noted that the workshop presented, “a unique opportunity to strengthen stakeholders’ capacities to utilise PPPs for innovative financing and infrastructure development to support industrialisation in selected African countries”.
Zambia pushes for deal on unresolved debt [Business Africa] (Africanews)
Zambia still has nearly $7 billion of debt on its books pending resolution. That is despite a deal with bilateral lenders last year which treated over $6 billion. The $7 billion is owed to bondholders and commercial banks. The southern African country’s quest for debt relief has been long and exhausting. A deal with bondholders to restructure about $3 billion of debt last October was rejected by the official creditors. Co-led by France, China, and South Africa, they argued that the terms Lusaka agreed with bondholders did not match the concessions the southern African country won from the official lenders.
Cabinet approves Egypt’s accession to membership of Afreximbank’s Fund for Export Development in Africa (EgyptToday)
The Cabinet approved, in its meeting chaired by Mostafa Madbouly, the project of the President’s decree regarding Egypt’s accession to the membership of the African Export-Import Bank’s (Afreximbank) Fund for Export Development in Africa (FEDA). The establishment of the fund comes to implement two key axes of the current strategy of the bank, which are export development and manufacturing, and enhancing intra-continental trade.
The accession of African countries to the fund aims to support small and medium-sized projects operating in export value chains, increase exports of goods and services with added value, support industrial infrastructure, and increase intra-African trade, among other numerous objectives.
Burkina Faso suspends export permits for small-scale gold production (The East African)
Burkina Faso’s military junta has suspended the issuance of export permits for artisanal and semi-mechanised gold and other precious commodities with immediate effect, it said. “This suspension follows the need to clean up the sector and reflects the government’s desire to better organise the marketing of gold and other precious substances,” it said in a statement on Tue. It did not say how long the suspension would be in place.
Gold is Burkina Faso’s main export, accounting for 37 percent of total exports in 2020, and mining is a leading source of jobs. But a rampant Islamist insurgency and political instability has hindered exploration and dented gold output in recent years, causing several mines to shut down and others to produce less.
Beijing’s African Gambit Runs Into Trouble (Forbes)
Beijing has decided that it needs to make concessions within its Belt and Road Initiative (BRI) in Africa. The arrangements always aimed to give China ultimate dominance — in Africa and elsewhere along the BRI. The problem for Beijing is that the underlying plan is revealing itself a little too fast and a little too thoroughly to keep African states enthusiastic. China’s leaders simply cannot afford to let these African states see the tremendous disadvantages that are the ultimate end of the scheme, at least not yet.
China-Africa trade news has raised a red flag. Total trade between China and its African partners in the BRI – most notably South Africa, Angola, Nigeria, the Democratic Republic of Congo, and Egypt – increased last year only a modest 1.5% to the equivalent of $281.1 billion. Most of the growth came from a strong 7.5% surge in Chinese exports to these African countries. The dangers implicit in Beijing’s plans reveal themselves in the 6.7% drop in African exports to China. Africa’s trade deficit with China jumped 14% from $46.9 billion in 2022 to $64 billion last year.
Under conventional trade circumstances, these figures might not please the Africans, but against the backdrop of Beijing’s BRI, the news carries a deeper, more revealing meaning, and one that Beijing has little desire to see clarified.
Debate on ditching CFA begins as Burkina Faso, Mali, Niger forge new path (Al Jazeera)
In September, Niger along with fellow ECOWAS members Burkina Faso and Mali formed a military alliance called the Association of Sahel States (AES). Four months later, the trio announced their withdrawal from the larger bloc for “illegal, illegitimate, inhumane and irresponsible sanctions” it imposed on them after coups. This month, reports emerged of a possible parting with their currency, the West African franc (CFA).
“Perhaps everything we’ve done has surprised you, hasn’t it?” Captain Ibrahim Traore, leader of the Burkinabe transitional government, said in an interview in February. “More changes might still surprise you. And it’s not just about currency. We will break all ties that keep us in slavery.”
Within days, his Nigerien counterpart, Abdourahmane Tchiani, confirmed that a major monetary shake-up could be in the offing. “Currency is a sign of sovereignty. … The AES member states are engaged in the process of recovering their full sovereignty. It is no longer acceptable for our states to be France’s cash cow,” he said in an interview with the state broadcaster. Their statements made headlines across a continent where criticism of the continued use of the CFA, a remnant of the French colonial system, is on the rise.
Editorial: Shaping the future of democracy and trade in West Africa (The Business & Financial Times)
Ensuring peaceful, credible, and inclusive polls is not just about choosing leaders; it is about Ghana taking a stand for stability in a turbulent sub-region. Moreover, peaceful elections will serve as a powerful signal to the wider continent, showcasing the AfCFTA’s potential to drive economic growth and prosperity across Africa.
Ex-ECOWAS President Urges Leaders To Lift Sanctions On Mali, B/Faso, Niger (News Agency of Nigeria)
Dr Mohamed Ibn Chambas, the former President of the ECOWAS Commission, has appealed to ECOWAS leaders to lift sanctions imposed on Mali, Burkina Faso, and Niger following recent military coups in these countries. He stressed the importance of unity and called on the military leaders of the mentioned nations to withdraw their threats of exiting the sub-regional bloc.
Speaking ahead of the ECOWAS Summit scheduled for Abuja during the weekend, Chambas urged all stakeholders in the West African sub-region to heed the recent call from former Nigerian Head of State, Gen. Yakubu Gowon (rtd), to end conflicts and unite the people in the area. Chambas emphasised the need for ECOWAS to come together, highlighting that the region is stronger united than divided. He lauded Gowon’s appeal for lifting sanctions and encouraged ECOWAS Heads of State to reach out to the affected countries for reconsideration.
AfCFTA Trading Company must have its own transport fleet (GhanaWeb)
Chairman of McDan Group, Dr. Daniel McKorley has encouraged the establishment of air and land transport fleet for the AfCFTA Trading Company across the continent. According to him, the trade pact needs its own ships, cargo planes, and warehouses across the continent to help facilitate trade among member states. He made this known at a meeting to discuss guided trade and the AfCFTA Trading Company.
McDan also indicated the importance of transportation for AfCFTA’s growth, adding that, over 25 percent of intra-African trade gains in services would go to transport alone, and nearly 40 percent of the increase in Africa’s service production would be in transport. “AfCFTA is offering a lot of opportunities because it also has to do with air, such as intra-country air connections at cargo airports. The same thing that affects maritime also affects the air like the planes, airport, air insurance and legal regulations,” McDan said.
“So, what is going to happen is that because there is an increment in demand, supply will have to increase to meet the demand. The maritime sector has a role to play in this, making sure that all these benefits are attractive to Africans. That is why it is important for AfCFTA to own its ships, cargo planes and warehouses,” he added.
AfCFTA: Upcoming Protocol on Women and Youth in Trade a chance to empower women (Africa Renewal)
The protocol provides an innovative approach to inclusivity of trade agreements by providing specific provisions towards enhancing women’s participation in trade to fulfil the core objectives of the trade agreement. This complements previous approaches that focus primarily on socio-economic concerns as a goal. Once adopted, the protocol will offer an innovative and sustainable approach of improving the competitiveness of women in their various trade roles while serving to advance the global discourse on addressing gender considerations in trade agreements.
The Beijing Platform for Action, adopted in 1995 at the Fourth World Conference on Women, remains the main framework in the global effort to advance gender equality. Its focus on crucial areas such as the role of women in the economy and their participation in leadership and decision-making aligns seamlessly with the objectives of the AfCFTA. In this quest, the Maputo Protocol—a groundbreaking legal instrument aimed at promoting and protecting women’s rights in Africa—serves as a complementary force to the AfCFTA. Together, they form a formidable set of frameworks that can address the unique challenges faced by women on the continent.
AfCFTA: NASS says continuous research necessary to guide policy makers (TVC News)
The National Assembly says continuous research on different aspects of the African Continental Free Trade Area, AfCFTA, is necessary to guide policy makers, including relevant committees of the parliament. This came to the fore at a roundtable on the impact of AfCFTA on the Nigerian Economy put together by the National Institute for Legislative and Democratic Studies, NILDS.
At a time global economies face turbulence, a gathering of experts seeks to harness available technical and non-technical resources to promote discussion on critical socio-economic issues in Africa. The leadership of the National Assembly and other speakers stress the need for continuous research to assist in legislations that will further harness the gains of AfCFTA The consensus among participants is that intra-African trade should be further encouraged to facilitate trade in manufacturing and industrialisation as a way of enhancing Africa’s economies, Nigeria inclusive.
Bold ambitions and uncertain paths in the African Union’s new ten-year development plan (Businessday Nigeria)
The African Union (AU) has set a bold target of producing 100,000 PhDs from Africa over the next decade. The AU stated that twenty percent of the output should come from STEM fields. The target is embedded in the Second Ten-Year Implementation Plan (STYIP) of the AU, focused on accelerating the implementation of the vision of “Africa We Want.”.
The AU’s Agenda 2063: pdf Second Ten-Year Implementation Plan (2024-2033) (6.58 MB) , or STYIP, was launched on February 13 with its development agency, the New Partnership for Africa’s Development (NEPAD). AU hopes there will be a significant increase in enrolment rates in higher education across Africa in the university and technical and vocational education (TVE) sectors. It noted the lack of employability skills across African higher education but plans to reverse it.
“I underscore that the effective operationalization of AMA and ending NTDs in Africa is a multifaceted task that requires strong health systems and a comprehensive approach that involves both leaders and the communities they serve,” stated H.E. Amb. Minata Samate Cessouma, Commissioner for Health, Humanitarian Affairs and Social Development African Union Commission The African Union Commission (AUC), in collaboration with the Governments of the Republic of Ghana, the Republic of Rwanda and the United Republic of Tanzania convened a High-level Working Breakfast on Operationalizing the African Medicine Agency (AMA) and Securing Africa’s Neglected tropical diseases (NTDs) free future.
AU took important action cybersecurity its 2024 summit more needed (Chatham House)
Africa witnessed a spate of cyberattacks in 2023, against African Union Commission (AUC) systems, Kenyan government data systems, and Nigerian election infrastructure among others. The attacks seem to have served as a wake-up call for the AU, driving its Peace and Security Council (PSC) to make cybersecurity a key agenda point at this year’s summit, held in Addis Ababa.
Real achievements were made: African heads of state addressed a number of cybersecurity related matters – the first notable action on the issue since the AU created its pdf Digital Transformation Strategy for Africa (DTS) (1.80 MB) in February 2020.
At the summit the AUC was directed to expedite the development of a Continental Cybersecurity Strategy. A continental child online protection policy was also adopted, and a Common African Position agreed on the application of international law in cyberspace – a significant development. But the pdf Malabo Convention (13.16 MB) , Africa’s ambitious continental cybersecurity agreement, remains unratified by most AU countries, limiting its credibility. Without wider ratification, and better cooperation on cyber diplomacy, member states may find it difficult to develop the coherent African cybersecurity agenda that is needed.
Trade and logistics experts from DHL Group, along with other leading trade experts, will be on hand at the 13th World Trade Organization (WTO) Ministerial Conference to share insights into how the world can foster sustainable and inclusive trade. In Abu Dhabi, DHL Group and the International Chamber of Commerce (ICC), will host a side event together with its partners to present the four key takeaways from the recent GoTrade Summit, held in late 2023 in Bonn, Germany, and which are documented in the comprehensive 2023 GoTrade Summit Report, recently released. DHL Group hopes that the Report and its four key takeaways will serve as a basis for discussions at WTO MC13.
Global trade is at a critical juncture-and we can’t take it for granted, WTO meeting chair warns (Fortune)
The greatest disruption in business occurs when cracks emerge in the systems that we otherwise take for granted. The World Trade Organization (WTO) and the treaties that make up the bedrock of international commerce fall firmly into this category. For decades, these international agreements have provided a baseline level of certainty to businesses, investors, and consumers. Today, that system is being buffeted by geopolitical headwinds, powerful political forces, and a trade landscape being redefined by new technologies. That makes certainty more important than ever.
Looking ahead to the conference, I see four key priorities – and private sector engagement is key to all of them. First, there are immediate deliverables on which consensus among the membership is difficult but achievable. To name just one example, the moratorium precluding customs duties on electronic transmissions is up for renewal. Second, it is important the ministerial conference provides a roadmap for the WTO’s future work. Climate change, geopolitical tensions, and a new wave of industrial subsidies are disrupting the status quo. Digitalization is reshaping both how trade is done and what is traded. The third goal of the ministerial conference is facilitating dialogue. As a trade minister, I can attest to the rarity of opportunities to meet with our counterparts for in-depth discussions about the most pressing trade issues.
Other WTO news:
WTO conference faces challenges as big players turn inward (ING Think)
Reform the WTO to make it fit for the 21st century (Financial Times)
Shifting the course of Global Trade at 13th Ministerial Conference (CNBC Africa)
WTO Ministerial Conference in Abu Dhabi an opportunity to strengthen trade and health agenda (The Association of the British Pharmaceutical Industry)
The WTO’s FDI Challenge by Karl P. Sauvant (Project Syndicate)
G20: FAO Director-General appeals for peace, right to food and global governance reforms (FAO)
QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations (FAO), appealed for peace, recognition of the right to food, and reform of multilateral institutions as cardinal imperatives during the G20 Foreign Affairs Ministers Meeting held on Wednesday and Thursday in Brazil.
“FAO calls for the prioritization of actions that promote food security globally to achieve the Four Betters: better production, better nutrition, a better environment, and a better life, leaving no one behind,” Qu said at the first session, focused on the G20’s role in dealing with conflicts and ongoing international tensions.
“We need a global governance system that is fit for purpose, works in an efficient, effective, and coherent manner, is accountable to its members, and fully aligned and committed to achieve all the SDGs,” he said at the second session.
See also: G20 Foreign Ministers’ Meeting (Summary) (Ministry of Foreign Affairs of Japan)
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Innovative interventions needed to turn around underperforming growth trajectory (Engineering News)
Against the backdrop of a profoundly challenging macroeconomic environment where South Africa’s economy is expected to continue underperforming, averaging at 1.6% growth in the next three years, innovative interventions are needed to turn the current trajectory around, said the Agricultural Business Chamber of South Africa (Agbiz) chairperson Francois Strydom.
The 2024/25 Budget presented a valuable opportunity to do so, but was largely silent on incentives for business, he said. “The agricultural sector, while having performed broadly positively in the past few years, is confronted with various challenges, with energy security, logistics and declining municipal service delivery challenges front and centre,” said Agbiz CEO Theo Boshoff. “South Africa desperately needs to upscale the incentives provided to communities that meet their own energy, infrastructure, and service delivery needs,” Boshoff emphasised.
See also:
Private rail network investment expected to focus on bulk freight at first (Engineering News)
Government raises US$3.3 billion to support climate change initiatives (SAnews)
Uganda’s exports to Europe now overtake imports (Monitor)
Uganda now exports more than it imports from the European Union (EU), which commands a favourable balance of trade position. The balance, details indicate, has been due to rising coffee exports, while Uganda has seen a significant reduction in machinery imports from EU countries.
Ambassador Jan Sadek, the EU head of delegation to Uganda, said out of the 1.5b euros worth of export between the two markets, Uganda has accrued 800m euros (about Shs3.3 trillion) in export value compared to 700m euros (about Shs2.9 trillion) registered by the EU. This means for the first time in recent history, Uganda has been able to deliver more exports to the largest single market in the world with a population of approximately 450 million people, and a GDP of 16 trillion euros.
“We are proud to see that there is a balance in trade,” said Amb Sadek ahead of the third Uganda-EU Business Forum, which seeks to facilitate structured collaboration between the EU and Uganda’s private sector and public actors.
AfCFTA offers ‘significant’ opportunities for Morocco’s automotive industry - Report (The North Africa Post)
The African Continental Free Trade Area (AfCFTA) agreement offers four significant opportunities to the Moroccan automotive sector, which is among the best developed on the continent, especially for its affordable inputs, finished exports, advantageous labor, and reduced customs tariffs, the 9th edition of the CFC Africa Insights report outlined.
The report, titled “AfCFTA: unlocking the potential of intra-African trade,” suggests that increased trade integration with African partners, particularly in North and West Africa, could lead to economies of scale. Morocco is well-positioned to benefit from the establishment of cross-border value chains, while the sector also holds promise for economies across the region.
Under the AfCFTA, the Moroccan automotive sector stands to gain two key opportunities, namely access to low-cost inputs and an outlet for finished goods exports.
Domesticate AfCFTA to Boost Commerce, Halt Naira Fall, NILDS DG Urges FG (This Day)
The Director General of the National Institute for Legislative and Democratic Studies (NILDS) Prof. Abubakar Sulaiman, has urged the federal government to domesticate and leverage on the African Continental Free Trade Area (AfCFTA) policy to address the current economic challenges.
He explained, “Today the country is not at a crossroads, we have gone beyond the crossroads; when you look at the foreign exchange earnings, forex, the dwindling fortune of the naira and unemployment across the globe especially as it related to Nigeria. “It is now time for us to put up our thinking cap; how do we harness resources and our markets, how do we ensure domestication of AfCFTA and take advantage as done by other countries.
In the heart of Nigeria’s Ekiti State, a groundbreaking initiative is taking shape – the Ekiti Knowledge Zone (EKZ), a bold step to transform the region into a hub for digital innovation and knowledge economy. The African Development Bank has committed $80 million in loan financing for this state-led pioneering special economic zone project, designed to foster linkages between educators, researchers, innovators, entrepreneurs, and industries, all within one location.
In April 2023, the Federal Government of Nigeria conferred “free zone” status to the project under the Nigeria Export Processing Zones Authority (NEPZA) Act. This designation unlocks a plethora of incentives for private investors, including rent-free land, tax holidays and import/export duty waivers, fueling an environment ripe for investment and innovation.
African Development Bank and OCP Group provide $188 million for green investment in Morocco (AfDB)
The African Development Bank and the OCP Group signed three loan agreements in Rabat totalling $188 million to help fund the OCP Group’s Green Investment Program supplying clean drinking water to the towns around three new desalinisation plants.
The construction of the new modular seawater desalination plants will be funded by the first loan of $150 million from the African Development Bank and the second loan of $18 million from the Canada – African Development Bank Climate Fund (CACF). The third loan of $20 million from the Clean Technology Fund (CTF), will be used to fund storage systems for energy generated from renewable sources, supplying the desalination plants and other OCP Group production units.
Powering the One Africa Market through the digital financial inclusion of small traders (African Business)
Opinion by Wamkele Mene and Lacina Kone
In 2024, Africa is poised for a historic transformation as we accelerate the implementation of the African Continental Free Trade Area (AfCFTA). This landmark agreement holds the promise of uniting diverse nations, spurring economic growth, and reducing dependence on external markets. However, amid this optimism, the plight of cross-border traders, many of whom are women and youth, have come into sharp focus. To truly understand the daily hardships faced by these traders, the AfCFTA, Smart Africa, and the Better Than Cash Alliance’s Secretariats conducted visits to pivotal border locations.
One critical hindrance to financial inclusion and digital trade is the lack of interoperability of digital payment systems, particularly for micro and small traders who dominate Africa’s economy, especially at land borders. Additionally, the recurring use of third currencies in cross-border trade payments places a significant burden on national foreign exchange reserves, leading to delays in settlements and diminishing profits for small and micro-merchants. Enter the Pan-African Payment and Settlement System (PAPSS), a groundbreaking initiative designed to address these challenges and facilitate fast, seamless payments for intra-African trade.
In partnership with the AUC, Smart Africa, and the Better Than Cash Alliance, the AfCFTA has issued a call to action on Digital Financial Inclusion for the Success of the One African Market. The call to action focuses on five key pillars that will be instrumental in Africa’s governments readiness to build inclusive digital economies for the One Africa Market: Government leadership, supportive regulations, fostering universal trusted usage, promoting regional collaboration, and championing financial equality. More than a trade agreement, the AfCFTA it is a gateway to economic empowerment, gender equality, and youth development.
Transition to the green economy offers great opportunities for women, but problems remain (Engineering News)
The move to a green economy is a move to a more feminine economy, affirmed KD Strategies founding director Katnisha Singh on Thursday. She was participating in a panel discussion at the Women in the Green Economy breakfast, a function of the Africa Green Economy Summit 2024, being held in Cape Town. “This is our time!”
The green economy was not an alternative to the mainstream economy; it would be the mainstream economy, she asserted. The green economy allowed, especially in Africa, the redefinition of industrialisation. It was a travesty that Africa had not yet experienced development, and that 70% of the continent’s population still lived in poverty.
“Women, by far, make the most energy decisions in the home, particularly in low-income homes,” pointed out another panellist, City of Cape Town Energy Efficiency and Renewable Facilitation Manager Mary Haw. But very few women were involved in energy decisions at high levels.
SADC Business Council to Host Major Investment Forum Focused on Angola and Regional Growth (AfDB)
The SADC Business Council will host the Southern African Industrialisation Forum from 26-27 February 2024 at Sandton Hotel, in Johannesburg, South Africa. The prestigious two-day event will convene top government and business leaders to shape industrial priorities and investment opportunities focused largely on Angola with the theme focus, Human and Financial Capital: The Key Drivers for Sustainable Industrialisation in the SADC Region.
With Angola as the centrepiece, forum conversations will cover human capital development, trade and investment facilitation, infrastructure development, and targeted high-potential sectors like automotive, pharmaceuticals, tourism, renewable energy and transport and logistics.
Free movement in west Africa: three countries leaving Ecowas could face migration hurdles (The Conversation)
For Niger, Mali and Burkina Faso, a recent decision to withdraw from the Economic Community of West African States (Ecowas) has thrown up questions about how they will navigate regional mobility in future. Ecowas covers a variety of sectors, but migration is a major one. The bloc’s protocols since 1979 have long been seen as a shining example of free movement on the continent. They gave citizens the right to move between countries in the region without a visa, and a prospective right of residence and setting up businesses.
Niger, Mali and Burkina Faso have much to lose if their departure from Ecowas curtails mobility. But it is likely that informal mobility will continue anyway.
ARDA, Stakeholders To Build Intra-Africa Oil & Gas Industry (DailyGuide Network)
The President of the African Refiners and Distributors Association (ARDA) Dr. Mustapha Abdul-Hamid, has reiterated ARDA’s commitment to work with the Organization of the Petroleum Exporting Countries (OPEC), the African Petroleum Producers’ Organization (APPO) and the African Union Commission (AUC) to deliver a sustainable intra-Africa oil and gas industry.
Dr. Abdul-Hamid said the industry would be focused on delivering cleaner fuels and value-added petroleum products via a lower-carbon footprint. He was speaking as a co-chair at the third high-level meeting of the OPEC-Africa Energy Dialogue held on February 19, 2024, in Cairo, Egypt. Dr. Abdul-Hamid also shared ARDA’s objective of developing a consolidated register of investable energy infrastructure projects that would be shared at the first-ever ARDA Investment Forum to be held during the 2024 ARDA Week in Cape Town from 22-26 April 2024.
Africa programme launches ‘A Continent in Conversation’ series at AU summit (Chatham House)
The Chatham House Africa Programme partnered with the United Nations Development Programme (UNDP) and Institute of Peace and Security Studies (IPSS) to hold the inaugural policy dialogue of the ‘A Continent in Conversation’ series on 15 February at the 37th Summit of the African Union in Addis Ababa.
‘A Continent in Conversation’ is a series of events that will run throughout the year. It will bring together political and thought leaders from across Africa to discuss how the continent and individual countries respond to global geopolitical trends including climate change, conflict, migration, international trade and technology. The series is intended to foster a deeper understanding of the continent’s role in shaping a sustainable global future in the context of international political multipolarity and Africa’s increasing economic connectedness and importance.
Red Sea crisis sees China’s brisk business in Africa waver under high shipping costs amid Houthi attacks (South China Morning Post)
Avoiding attacks in the Red Sea has raised the cost of business for Chinese firms in East Africa, which borders the embattled waterway, and shaken the production of companies that cannot afford the more costly alternative transport options, analysts said.
“Chinese companies with a substantial presence in African markets are facing heightened uncertainties and complexities as they navigate these disruptions, prompting a re-evaluation of their shipping strategies and contingency plans to mitigate the impact on their operations,” said Gary Lau, chairman of the Hong Kong Association of Freight Forwarding and Logistics.
China has particular exposure to Africa as its fifth-largest source of foreign direct investment stock in 2021, United Nations Conference on Trade and Development data showed. Its investments in Africa reached US$1.8 billion in the first half of 2023, up by 4.4 per cent year on year, the Ministry of Commerce said in October. China is also Africa’s biggest trading partner, the state-owned news outlet said.
Overlapping disruptions pose unprecedented challenges to global trade, UNCTAD warns (UNCTAD)
Recent attacks on commercial vessels in the Red Sea have severely affected shipping through the Suez Canal, adding to existing geopolitical and climate-related challenges facing global trade and supply chains, UNCTAD says in a new report released on 22 February. The Red Sea crisis compounds the ongoing disruptions in the Black Sea due to the war in Ukraine, which have resulted in shifts in oil and grain trade routes and altered established patterns.
Additionally, the Panama Canal, a critical artery linking the Atlantic and Pacific oceans, is confronting a separate challenge. Dwindling water levels have raised concerns about the long-term resilience of global supply chains, underscoring the fragility of the world’s trade infrastructure. UNCTAD estimates that transits passing the Suez Canal decreased by 42% compared to its peak. With major players in the shipping industry temporarily suspending Suez transits, weekly container ship transits have fallen by 67%, and container carrying capacity, tanker transits, and gas carriers have experienced significant declines.
Mounting uncertainty and shunning the Suez Canal to reroute around the Cape of Good Hope has both economic and environmental repercussions, particularly for developing economies.
Worries SA could help kill global deal on tax-free e-commerce (TechCentral)
The decades-old global consensus that’s allowed e-commerce and a growing tidal wave of data to cross borders without tolls is at risk of falling apart. Every couple of years since 1998, ministers at the World Trade Organisation have renewed a moratorium on digital customs charges. It’s kept online transactions — a Netflix movie streamed in South Africa, an international Zoom call with a doctor in India, an e-book downloaded on a beach in Bali – free of tariffs throughout the internet age. Maybe not for much longer. The WTO meets in Abu Dhabi next week with the latest moratorium set to expire in March. At least three large developing economies are signalling they’ll oppose another extension.
The tariff ban has helped fuel the fastest-growing segment of world trade: digital goods and services. They’re key to the success not just of tech companies like Amazon.com and Netflix but also the growing number of traditional firms that collect data and conduct e-commerce in foreign markets. Now, emerging economies cite concerns about the dominance of US-based Big Tech – and other worries including risks from artificial intelligence, the need to protect data privacy, and the loss of customs revenue into the ether of the digital economy.
India against EU bringing in new issues at WTO meet via backdoor (The Economic Times)
India has opposed the European Union’s bid to push new issues such as carbon taxes, industrial subsidies, women and climate at the upcoming ministerial meeting of the World Trade Organization (WTO) in the garb of “deliberative functions” or “conversation with ministers” that seek to reform the body. Officials said the EU wants an open-ended work programme for such issues while developing countries are against them being discussed among ministers as they don’t have a negotiating mandate from the global trade body.
The EU has proposed that these issues be taken up as part of reforming the multilateral trade watchdog. Many proponents are calling MC13 as a “reform ministerial”. The EU has identified three areas of systemic importance - trade policy and state intervention in support of industrial sectors, global environmental challenges, and trade and inclusiveness - to reinvigorate the deliberative function of the WTO. India has insisted these are non-trade issues and should be discussed at organisations which deal with them. “Our perspective is that there is no need to add things unnecessarily,” said an official, who did not wish to be identified.
WTO’s push for reform plagued by obstacles (Gulf Business)
At least 100 ministers will gather in Abu Dhabi on February 26-29 for the WTO’s 13th ministerial conference once dubbed the “reform ministerial”. In a sign of wider divisions plaguing the body, delegates cannot even agree to “formalise” the talks that aim to revive the WTO’s top appeals court, known as the Appellate Body, which has been idle since 2019 due to US blockages of judge appointments. As such, trade experts say the best hope is a feeble commitment to keep negotiating on this and other key reforms like reviewing poor countries’ trade terms in Abu Dhabi.
Free trade, its supporters say, has helped lift billions out of poverty. But critics say the WTO has failed to shape trade so that it narrows inequalities between rich and poor nations and help tackle new global challenges, not least climate change. To be sure, the scope of what the WTO can achieve is limited by factors beyond its control such as crisis, elections and geopolitical rivalries.
Changes to WTO rules require consensus which has always constrained its ability to reach global deals since it just takes one country to block an agreement. Only two have ever been reached: a partial fishing deal (2022) and the red-tape cutting Trade Facilitation Agreement (2013).
World Economic Forum to host inaugural TradeTech Forum alongside MC13 (Trade Finance Global)
The World Economic Forum is set to host the inaugural TradeTech Forum 2024, where 300 ministers, industry leaders, trade professionals, and representatives from civil society will discuss the integration of advanced technologies into trade. This event is scheduled for 27 February, coinciding with the 13th Ministerial Conference of the World Trade Organization (MC13). This initiative aims to transform international trade through the trial of innovative technologies and the examination of their implications for policies and business models. Børge Brende, President of the World Economic Forum, said, “It’s time to revitalise trade and this includes the urgent need to understand and integrate new technologies. MC13 and the TradeTech Forum give us the opportunity to build on the work done in Davos to accelerate technology deployment. That can drive a trade recovery and get us out of the trap of ‘slowbalization’.”
World trade map being redrawn as global growth slows and regional links deepen (ProAgri)
Southeast Asian nations are among the biggest winners in the new world trade order, with cumulative ASEAN trade forecast to grow $1.2 trillion in the next ten years due to its emergence as a key destination for companies seeking to decrease their dependence on China for manufacturing and sourcing, which is driving ASEAN’s growth as a platform for global exports. Increasing African prosperity levels, improved regional economic integration, and the growing importance of critical minerals in the global economy will lead to Africa’s trade growing faster than the global average.
International trade statistics: trends in fourth quarter 2023 (OECD)
After several quarters of decline, G20 merchandise trade growth flattened in value terms in Q4 2023, as measured in current US dollars. There was little change in exports and imports compared to Q3 2023, as a robust recovery in East Asia was counterbalanced by a slowdown in Europe and North America. Export growth stagnated in the United States, with lower sales of automobiles being offset by higher sales of industrial supplies. In the European Union, exports were down by 0.6% driven by a decline in chemical products, while imports were down by 1.8%.
Conversely, merchandise trade growth was strong in East Asia. China recorded a 0.6% increase in exports, in part driven by high tech products such as mobile phones, and a 3.9% increase in imports due to mechanical and electrical products. Exports increased in Japan and surged in Korea due to strong automobile sales and a recovery of the Korean semiconductor business. Higher sales of primary commodities fuelled export growth in Australia, Indonesia, and Brazil.
On the services side, preliminary estimates point to moderate growth for the G20 in Q4 2023 compared to the previous quarter, as measured in current US dollars (Figure 1 and 2). Exports and imports are estimated to have grown by 1.6% and 1.3% in Q4 2023, respectively, following the 0.9% decrease in exports and 0.2% increase in imports in Q3.
BRICS competition authorities convene in Egypt to discuss food security, grain trade (Daily News Egypt)
The competition authorities of the BRICS countries (Brazil, Russia, India, China, and South Africa) gathered in Cairo, Egypt, on Wednesday for a two-day meeting to discuss critical issues related to global food supply chains and grain trade. This marks the first competition-related meeting hosted by Egypt since its official accession to the BRICS group earlier this year.
The meeting, held under the auspices of the Egyptian Prime Minister, aims to develop new mechanisms to tackle distortions affecting the global grain trade market. Key concerns include anti-competitive practices, market dominance by major players, and fluctuations in supply chains. These factors can lead to price instability, reduced access to food, and increased financial burdens for consumers worldwide.
Alexey Ivanov, Director of the BRICS Competition Law and Policy Centre, welcomed the opportunity to enhance cooperation in combating anti-competitive practices in food supply chains. The meeting will witness presentations, discussions, and knowledge sharing on ongoing investigations and innovative approaches to food market regulation.
More global economy news
Challenging Times for International Trade: Realigning supply chains to overcome stagnation (RIETI)
UN forum: Nations must collaborate now or risk further setbacks in sustainable development (UN News)
Brazil calls for reform of UN as it starts its G20 presidency (South China Morning Post)
“Connector economies” and the fractured state of foreign direct investment (Atlantic Council)
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Economic growth to stay low over the next three years (SAnews)
South Africa’s economy is expected to grow at some 1.6% over the next three years, with real Gross Domestic Product (GDP) reaching 0.6% in 2023. “Despite the improved global outlook for 2024, South Africa’s near-term growth remains hamstrung by lower commodity prices and structural constraints. We estimate real GDP growth of 0.6% in 2023. This is [revised] down from 0.8% growth estimated during the 2023 MTBPS [Medium Term Budget Policy Statement].
“The growth outlook is supported by the expected easing of power cuts as new energy projects begin production, and as lower inflation supports household consumption and credit extension. “But, there are also risks to the domestic outlook. These include persistent constraints in electricity supply, freight rail and ports, and a high sovereign credit risk. Our challenge… is that the size of the pie is not growing fast enough to meet our developmental needs,” Finance Minister Enoch Godongwana, who delivered the Budget Speech at the Cape Town City Hall on Wednesday, said.
Download the Budget 2024 documents here.
Kenya exempts Ethiopia, South Africa from e-travel authorisation fees (The East African)
Kenya has begun twitching its online visitor registration service that policymakers wanted to use to ease travel into the country, but which saw some countries complain of high charges. And now, the Department of Immigration and Citizen Services says citizens from Ethiopia and five other countries will not be required to pay the $30 per traveller charged when visitors apply to come to Kenya.
The fee is often paid online via the portal www.etakenya.go.ke after the government launched the Electronic Travel Authorisation (eTA) in January. According to the department, citizens from the Comoros, Congo-Brazzaville, Eritrea, Mozambique, San Marino and South Africa will also no longer be charged when filing for eTA applications. The department said these are “countries which had concluded visa abolitions agreement or signed bilateral visa waiver agreements with the Republic of Kenya.” The five had signed visa exemption deals in the last one year. Their exemption from eTA began on February 15, Immigration said in response to a Business Daily inquiry on Wednesday.
Zambia bans maize exports over dry spell (The East African)
The Zambian government on Tuesday announced a restriction on the export of maize and mealie meal (maize flour) due to a prolonged dry spell that could affect the harvest. Minister of Agriculture Reuben Phiri said the restriction will only be lifted after a careful assessment of the next harvest. “Owing to the prevailing situation, the government will continue to put the interest of the country above everything else. In this regard, it has restricted the export of maize grain and mealie meal,” the minister said. The government, he said, has since deployed defence personnel to guard all known smuggling routes, while security patrols and roadblocks are also being increased in districts prone to trafficking.
Cameroon: 2023 Article IV Consultation (IMF)
Cameroon’s economic recovery has continued against a backdrop of domestic security pressures, increased regional spillover risks, and continuing global economic uncertainties. Inflation remains high although decelerating, and while Cameroon is the largest CEMAC economy with ample economic potential, it is a fragile and conflict affected state (FCS). Drivers of fragility include a high debt burden, institutional and governance weaknesses, internal divisions, social exclusion, insurgency, conflicts along borders, and a rising frequency of climate-related natural disasters. Political risks are increasing, with tensions around Presidential succession, and potential spillovers from the region.
The Southern African Development Community (SADC) and the United Nations Food and Agriculture Organisation (FAO) hosted workshop to mark the end of the ‘Support towards the Operationalization of the SADC Regional Agricultural Policy’, (STOSAR) Project which was funded by the European Union (EU) through the European Development Fund (EDF 11) to the tune of Euro 9 million to support implementation of the SADC Regional Agricultural Policy (RAP). The workshop was held on 20-21 February 2024 at Gaborone International Conference Centre (GICC), in Botswana.
The Guest of Honour at the opening of the Workshop, Honourable Fidelis Molao, Minister of Agriculture of the Republic of Botswana hailed the achievements made by the STOSAR project and highlighted the need to sustain the momentum achieved under the STOSAR Project and ensuring that its gains continue to drive agricultural sector which has long been a bedrock for regional integration and sustainable socio-economic transformation of the SADC region.
4th Edition of ECOWAS Mining & Petroleum Forum to hold in Cotonou (ECOWAS)
The Republic of Benin is hosting ECOMOF 2024 which will be held at Palais de Congress, in Cotonou from 22-24 February 2024 under the Theme – “Geo-extractive resources and technologies: what are the strategies to pool for creation of value addition in West Africa?”. This theme would set the tone for a continued forward-looking approach as the Forum reflects on how well the Community desires the mining and petroleum industries to enhance the collective well-being of the citizenry within the context of the region’s industrialization drive.
UBA takes centre stage as Elumelu addresses ECOWAS mining forum in Cotonou (Vanguard)
United Bank for Africa, UBA Plc, has been announced as the official sponsor of the 4th edition of ECOWAS Mining and Petroleum Forum (ECOMOF 2024). The regional event is expected to see a large gathering of key players and stakeholders in the mining and petroleum sectors of the Economic Community of West African States, ECOWAS. UBA Group Chairman, Tony Elumelu, would give the keynote address during the opening ceremony of the event. His speech is expected to highlight UBA’s increasing effort to support and develop the African continent through strategic investments in the key sectors of mining and petroleum.
Africa CDC Spearheads Bold Move to Secure Africa’s Health Future by Creating a 50 billion Dollar Medical Market (Africa CDC)
African leaders made a decision that will create a robust future market for medical products for African manufacturers. Spearheaded by the Africa Centres for Disease Control and Prevention, a pooled procurement mechanism was agreed upon and signed off late last night at the African Union (AU) Summit in Addis Ababa. This decision is significant because it creates predictable demand so manufacturers can plan for the long term to create a viable vaccine manufacturing ecosystem.
The African market size for medicines and vaccines is approximately 50 billion USD annually. Africa CDC will lead the pooled procurement initiative in collaboration with continental and global partners. The move is also designed to ensure that African Union member states can get better deals on price.
Digital ID to unlock Africa’s economic value if fully implemented, say experts (UNECA)
Countries implementing digital identity could unlock value equivalent to 3 to 7 percent of GDP, says statistics and data experts at the 12th StatsTalk-Africa Webinar in Addis Ababa Ethiopia on 20 February 2024. The monthly webinar was organized by the African Centre of Statistics (ACS) of the United Nations Economic Commission for Africa on the theme, ”Building Inclusive National Identity Systems - Inter-linking digital identity and legal identity”.
A digital ID is an identity verified and authenticated to a high degree of assurance over digital channels, unique, and established with individual consent. Unlike a paper-based ID, a digital ID can be authenticated remotely over digital channels.
“Analysis of digital ID Systems indicates that individual countries could unlock economic value equivalent to between 3 and 13 percent of GDP in 2030 from implementing digital ID programs,” said Mr Seck while making a presentation on Digital Identity for Citizens at the webinar.
Under the esteemed patronage of His Excellency Nana Addo Dankwa Akufo-Addo, the President of the Republic of Ghana and the Champion on the African Union Financial Institutions, Africa’s multilateral financial institutions have collaborated and launched the Alliance of African Multilateral Financial Institutions (AAMFI). The auspicious inauguration, which took place on the sidelines of the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union, marked a pivotal moment in Africa’s financial landscape.
The landmark gathering underscored a united commitment to foster collaboration, cooperation, and coordination among esteemed member institutions to drive sustainable economic development and financial self-reliance across the continent.
Under the mandate of AAMFI, the Alliance members commit to collaborate to address Africa’s development finance needs, promote the interests of member states, advocate for Africa on global finance issues, develop innovative finance tools, and support sustainable finance strategies. AAMFI’s formation underscores Africa’s commitment to self-reliance and sustainable economic development, leveraging home-grown solutions and resources for the continent’s advancement.
The historic inauguration of the Alliance witnessed a momentous occasion as all seven founding members signed a declarative statement announcing their commitment to the principles and objectives behind the establishment of the Alliance.
Civil society organisations proffer solutions on Africa’s huge debts (The Sunday Mail)
Regional civil society groups have come together to proffer solutions for Africa’s unsustainable debt and enhance good public finance management. The African Forum and Network on Debt and Development (AFRODAD) and the Southern African Development Community Parliamentary Forum (SADC PF) have signed a memorandum of understanding (MoU) to partner in promoting sound financial and debt management policies across Africa.
Studies indicate that revenues have been declining amid high gross financing needs in the region; therefore, accelerating borrowing from both domestic and external sources to finance development. Consequently, public debt has been rising in SADC countries.
The MoU between AFRODAD and SADC PF formalises the collaboration of both organisations in influencing policy by providing technical support to African governments and parliaments to regain their political, economic and social agency.
Russia completes shipping free grains to six African states (The East African)
Russia’s Agriculture minister said late on Tuesday that Moscow had completed its initiative of shipping 200,000 metric tonnes of free grain to six African countries, as promised by President Vladimir Putin in July last year. Russia shipped 50,000 tonnes each to Somalia and the Central African Republic (CAR) and 25,000 tonnes each to Mali, Burkina Faso, Zimbabwe and Eritrea, Agriculture Minister Dmitry Patrushev told Putin during a meeting, according to transcript on the Kremlin’s website.
On February 6, 2024, Japan International Cooperation Agency (JICA) and African Continental Free Trade Area (AfCFTA) Secretariat held its first annual consultation meeting in hybrid manner (at AfCFTA Secretariat HQs in Accra / online), and discussed the way how to further deepen its cooperation in 2024. During the meeting, the participants reviewed their efforts in 2023 and discussed plans for 2024. JICA and AfCFTA Secretariat signed a MOC (Memorandum of Cooperation) in December 2022 and agreed to strengthen cooperation in four priorities, namely, 1) Trade Facilitation and Corridor Development, 2) Industrialization and Value Chain, 3) Learn from ASEAN/ Japan’s Experiences, and 4) Capacity Development and Advocacy.
New global trade patterns are ‘not a blip’ as partnerships shift - BCG report (KZN Industrial & Business News)
As the global economy adjusts to persistent economic and geopolitical pressures and disruptions, the familiar routes that defined the world trade map are being redrawn and regional trade lanes are playing a greater role in world trade.
The changing trade picture shows that overall global trade is growing at a slower rate than the world economy, a fundamental shift away from the trend of trade-led globalism that the world enjoyed in most of the years since the end of the Cold War. World trade in goods is forecast to grow at 2.8% per year, on average, through 2032, compared with an estimated 3.1% growth rate for global GDP in the same period, according to a new report by Boston Consulting Group (BCG), titled Jobs, National Security, and the Future of Trade.
Increasing African prosperity levels, improved regional economic integration and the growing importance of critical minerals in the global economy will lead to Africa’s trade growing faster than the global average. It is expected to increase 3.3% per year by 2032, to $1.5 trillion. The continent’s trade with the rest of the world, excluding intra-Africa trade, will see two-way trade increasing by 3.3% per year and a trade surplus. Africa’s trade with the rest of the world will be marked by a 6.9% growth in exports per year by 2032 to $106 billion and a 2.5% growth in imports per year by 2032 to $71 billion.
Brazil’s G20 presidency kicks off in Rio with foreign ministers meeting (The Independent)
Foreign ministers of the Group of 20 nations were gathering Wednesday in Rio de Janeiro to discuss poverty, climate change and heightened global tensions as Brazil takes on the annual presidency of the bloc. The ministers and other representatives of the 20 leading rich and developing nations planned to spend two days setting a roadmap for work to accomplish ahead of a Nov. 18-19 summit in Rio. One of Brazil’s key proposals, set by President Luiz Inácio Lula da Silva, is a reform of global governance institutions such as the United Nations, the World Trade Organization and multilateral banks, where he wants to push for stronger representation of developing nations.
The value of WTO commitments along the global supply chain (CEPR)
US-China trade tensions, the COVID-19 pandemic, and national security concerns have exposed several risks in current global supply chains. The response from governments and firms worldwide has focused on investments to make these supply chains more ‘resilient.’ Another approach is directly targeting the policy shocks, for example by renewing cooperation in trade policy and mitigating systemic uncertainty about future policies.
Cooperation via the WTO has, until recently, successfully reduced trade policy uncertainty (TPU), which has been an important source of export growth. However, the credibility and enforcement of commitments in the WTO are currently diminished (see, for example, Wolff 2022 on dispute settlement). The WTO itself notes that trade scepticism among policymakers and trade policy tensions over supply chains are manifesting themselves in even more fragmented and concentrated supply chains (WTO 2023). Before abandoning hope of renewed cooperation in this area we must answer the following. What is the value of WTO commitments along the global supply chain?
Digital Trade’s Leap: Unveiling the Future for Developing Economies at MC13 in Abu Dhabi (BNN)
As the digital economy carves its niche in the global marketplace, its unprecedented growth has become a beacon of opportunity, particularly for developing economies. The upcoming Thirteenth Ministerial Conference of the World Trade Organization (MC13) in Abu Dhabi is set to become a pivotal arena for discussions on the future of digital trade and its capacity to reshape access to global markets. At the heart of these discussions lies the potential continuation of the Work Programme on e-commerce and the hotly debated extension of the Moratorium on Customs Duties on Electronic Transmissions, issues that hold significant implications for the global digital economy.
7th BioTrade Congress: Global governance for trade and biodiversity (UNCTAD)
The BioTrade Congress returns on 25 and 26 March, 2024 in Geneva, Switzerland at the Palais des Nations (Room XVII), co-organized by the United Nations Conference on Trade and Development (UNCTAD) and partners. The 7th BioTrade Congress will discuss “Global Governance for Trade and Biodiversity” with the aim to propose policy recommendations and actions from government, business and civil society on how trade and trade policy can accelerate implementation of The Biodiversity Plan. The Congress will also feature exchanges and case studies on the biodiversity and socio-economic impact generated through the trade of biodiversity-based products, including BioTrade.
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SA Canegrowers maintains sugar tax increase will destroy jobs (Engineering News)
Ahead of Finance Minister Enoch Godongwana’s Budget Speech on February 21, industry body the South African Cane Growers’ Association (SA Canegrowers) has called on National Treasury to prioritise measures to aid economic recovery and job retention in the sector, including by not increasing the Health Promotion Levy (HPL). It has been a trying five-year period for the sugar industry, SA Canegrowers says, adding that an increase in the levy, also called the sugar tax, would be destructive and unjustifiable.
Tanzania calls for protection of Indian Ocean beaches from pollution (CGTN Africa)
Tanzanian authorities on Monday called for efforts to protect Tanzania’s beaches along the Indian Ocean from pollution. “The beaches are often littered with garbage, including used plastics, which not only pollute the beaches but also present an eyesore for visitors,” Selemani Jafo, minister of State in the Vice President’s Office responsible for Union and Environment, said in a statement. Jafo assigned the local government the responsibility to ensure robust pollution control measures on the beaches. According to the Tanzania National Guidance for Plastic Pollution Hotspotting Report, 29,000 tonnes of plastics were released into the Indian Ocean, rivers, and lakes in 2018.
TanTrade: International trade forums pay off (Tanzania Daily News)
Trade Development Authority (TanTrade) says trade forums are paying off due to their contribution in wooing domestic and international investors to determine the best investment options. The forums, according to TanTrade, are acting as platforms like markets where sellers and buyers meet and enter into an agreement—so ultimately, it’s like the forces of supply and demand that, in this case, determine the best investment criteria modalities.
“TanTrade leads these efforts intending to facilitate trade between Tanzania and other African countries. “Like today [Sunday] we organised Tanzania and Egypt forum. Forums like this help exchange knowledge and explore new opportunities for sustainable business,” Ms Khamis told Business Standard. She said for instance DarCairo forum held in Dar es Salaam achieved its goal of strengthening strategic trade partnerships between the two.
DRC state miner Gecamines plans reform of copper, cobalt ventures (The East African)
The Democratic Republic of Congo’s (DRC’s) state miner is broadening a push to extract more from its copper and cobalt joint ventures, seeking to negotiate for higher stakes across the board to gain leverage in management of some of its biggest mines. Gecamines is also leveraging existing shareholding in mines to negotiate off-take contracts for the purpose of trading copper and cobalt on its own. The miner wants more local executives on boards governing joint ventures to have a greater say in how assets are managed, Guy Robert Lukama, the Gecamines chairman, told Reuters. The plans may mean overhauling some terms of agreements that Gecamines deems unfavorable to capitalise on the world’s scramble for supplies of minerals critical to global green energy transition.
Ghana and Nigeria to witness the slowest economic growth in West Africa 2024 – AfDB (Nairametrics)
The economies of Ghana and Nigeria are poised to see the slowest economic growth in 2024 when compared to their peers in the West African region. Overall, the West African region is expected to grow by 0.8% to 4.0% this year and 4.4% in 2025 according to the AfDB macro-economic performance outlook for 2024.
The African Development bank stated that aside Nigeria and Ghana, every other country in the sub-region is estimated to grow by at least 4% in 2024 with embattled Niger leading the pack at 11.2% followed by Senegal and Ivory Coast at 8.2% and 6.8% respectively. Despite these challenges, the report suggests that the strategic redirection of resources—specifically, the $5 billion formerly allocated to fuel subsidies between 2022 and May 2023—towards vital social infrastructure, holds the promise of yielding significant long-term benefits over the immediate discomforts.
Wamkele Mene re-elected as AfCFTA secretariat boss (Africa Feeds)
South African Wamkele Mene has been re-elected as the Secretary General of the AfCFTA Secretariat. African Heads of State and Government at the African Union’s summit last weekend in Addis Ababa, Ethiopia, re-affirmed their confidence in Mene, re-appointing him for another four year term. Mene was first elected in February, 2020 for the top job after vying for the position with other shortlisted persons.
Mene has been operating from Ghana’s capital, Accra which is the host country for the secretariat. The continental free-trade zone is the world’s largest free trade area uniting 1.3 billion people and creating a $3.4 trillion economic bloc. The free trade zone is considered a critical action to usher Africa into a new era of development. The African Continental Free Trade Area (CFTA) will have 54 African Union (AU) members. African countries only do about 16 per cent of their business with each other with the African Union hoping to change this trend. The CFTA is a major project of the AU’s long-term development plan Agenda 2063, which emphasis the need to ease trade and travel across the continent.
Addressing Africa’s debt dilemma: The role of ECAs and new strategies (Trade Finance Global)
The African economy has suffered three major shocks in quick succession, namely, the COVID-19 pandemic, spillovers from geopolitical tensions and supply chain disruptions. This, coupled with widening fiscal deficits, exchange rate volatility and natural disasters have eroded the fiscal space of African economies and increased debt levels.
The rising debt in Africa and the high risk of sovereign default hampers the activities of export credit agencies (ECAs) on the continent. However, this challenge has also presented opportunities for flexibility, for example, cover for down payments, higher percentages of cover for both political and commercial risks, as well as longer tenors. From an industry viewpoint, the ECIC portfolio has shifted away from its traditional mining focus. Currently, power generation leads as the top sector, accounting for 45.8% of total exposure, with construction following closely at 40%.
EAC focuses on renewable energy sources (Tanzania Daily News)
The East African Community (EAC) partner states have reaffirmed their commitment to enhance energy efficiency and exploit wind, solar, and geothermal energy as sustainable energy sources for the region. According to a statement posted on the community website, partner states have subsequently embarked on various initiatives to tap into the potential of renewable energy and energy conservation. The initiatives include the review of national renewable energy laws, implementation of energy management regulations, national strategies and standards for energy efficiency and renewable energy, and promotion of energy efficiency and conservation.
EAC: Uganda no longer the ‘small boy’ (Monitor)
Despite struggling with the high cost of doing business which President Museveni in his end of 2023 address says is a challenge that his government is trying to address, the country’s manufacturing and export sector somewhat managed to stamp its foot prints beyond the national borders. In his speech, President Museveni referenced high energy costs and exorbitant cost of financing as some of the reasons driving the cost of doing business in the country.
Burkina Faso, Mali, Niger juntas confirm plan to form new tri-state confederation (The North Africa Post)
Burkina Faso, Mali and Niger have confirmed their commitment to form a confederation following their ‘exit’ from the regional bloc ECOWAS and called to “urgently” draft provisions ensuring the free movement of people and goods between the three West African countries.
A trilateral meeting of ministerial delegations on 15 February also recommended expanding the Alliance of Sahel States (AES) objectives in diplomacy and economic development. The AES was created in September 2023, a few months after the military coup in Niger. They “reaffirmed their commitment to advancing resolutely in the process of implementing the AES and creating the Tri-State Confederation,” the Malian foreign ministry said in an online post. Burkina Faso, Mali and Niger last month announced their withdrawal from the Economic Community of West African States (ECOWAS) on grounds of what they said were illegal and inhumane sanctions.
ECA’s Gatete advocates for skills-based education for Africa’s technological advancement (UNECA)
Speaking at the 2024 edition of the annual ECA Africa Business Forum (ABF2024), held in Addis Ababa, Ethiopia, on 19 February 2024, he highlighted the importance of shifting the focus of education to address its relevance and inclusivity in the digital age. Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA) highlighted the potential of Africa to become a global solutions powerhouse through concentrated efforts in science and technology.
While acknowledging the significant growth in broadband access and the mobile money market’s value at $836.5 billion, Mr. Gatete stressed that these achievements pale in comparison to the vast potential available. He raised crucial questions about bridging the digital skills gap for 650 million workers by 2030 and generating millions of jobs for Africa’s youth. “The potential of Africa’s digital economy is enormous. However, realizing this potential rests on closing critical gaps in digital skills, data generation, and utilization, as well as the requisite infrastructure,” he added.
37th AU Summit: African Union takes steps to address Education Challenges in Africa (AU)
The achievement of Aspiration 1 of Agenda 2063 for “A prosperous Africa based on inclusive growth and sustainable development” requires that Africa makes significant investments in education with the aim of developing human and social capital through an education and skills revolution emphasizing innovation, science, and technology. Even with a substantial increase in the number of African children with access to basic education, a large number still remain out of school. This reality calls for concern.
The AU, through its Continental Education Strategy for Africa (CESA), is vying to expand access not just to quality education, but also to education that is relevant to the needs of the continent given that the continent’s population is rapidly increasing. The CESA aims to reorient Africa’s education and training systems to meet the knowledge, competencies, skills, innovation, and creativity required to nurture African core values and promote sustainable development at the national, sub-regional and continental levels.
Volkswagen Africa builds 1.5-millionth export vehicle (Engineering News)
Volkswagen Group Africa (VWA) this week celebrated building the 1.5-millionth vehicle built at the Kariega plant for the export market. The milestone vehicle, a Polo GTI destined for the UK, also marked the 21 165th vehicle built for export this year. The Kariega plant assembled 101 557 Polos for export last year. The plant’s record for export units in one year was in 2019, when the team built 108 422 vehicles for export markets. VWA has been building vehicles for export since 1992, including models such as the Jetta and Golf. Currently the Kariega plant is the sole manufacturer of the Polo, exporting this vehicle to 38 markets worldwide.
African Union imposes historic ban on cruel donkey skin trade (Down to Earth Magazine)
Donkeys are critical to millions of people and the global trade in the animal’s skin undermines global efforts to achieve at least nine of the 17 SDGs A historic ban on the trade in donkey skins has been agreed upon by the African heads of state. This agreement, announced on the concluding day of the African Union summit in Ethiopia, outlawed killing of donkeys in the African continent for their skin.
This is a significant outcome following the Dar es Salaam declaration adopted at the first AU-IBAR Pan-African Donkey Conference in December 2022. The statement acknowledged the socioeconomic significance of donkeys in Africa. It had demanded for an African Union Commission (AUC) resolution to be passed in favour of a 15-year ban on the commercial killing of donkeys for their skins. Other demands included the creation of an Africa donkey strategy for donkey production and productivity, and the inclusion of donkeys in the global development agenda.
In face of climate change, AfDB invests $15m to stimulate clean technologies (Afrik 21)
With pollution and natural disasters on the rise across Africa, the time has come for concrete solutions. For the African Development Bank (AfDB), one of the most effective approaches is the promotion of clean technologies, i.e. technologies that do not pollute, but rather help to reduce the environmental impact of activities.
Through its Clean Technology Fund (CTF), the AfDB identifies and supports all initiatives in this field. To this end, the financial institution based in Abidjan, Côte d’Ivoire, has injected $15 million into the capital of the Mauritius-based Trade and Development Bank of Eastern and Southern Africa (TDB). It launched its Green+ Class C shares (a mechanism to attract institutional investors) in 2022, at the 27th Conference of the Parties on Climate (COP27) in Egypt.
The aim is to “stimulate investment in clean technologies on the continent, in particular for the large-scale development of low-carbon solutions that offer significant potential for reducing greenhouse gas emissions over the long term”, says the AfDB. The $15 million will therefore be used to design and transfer digital tools and Internet of Things (IoT) to 25 countries vulnerable to climate change.
DDG Hill emphasizes role of trade in fostering access to digital finance (WTO)
Deputy Director-General Johanna Hill emphasized on 16 February the role trade can play in unleashing the benefits of digitalization, including access to digital finance. She was participating in a digital finance conference organized by the United Nations Institute for Training and Research (UNITAR). DDG Hill noted that trade, especially in services, is an important part of the digital economy. She pointed out that global exports of digitally delivered services reached USD 3.82 trillion in 2022. This is an almost fourfold increase in value since 2005 and accounted for 54 per cent of total global services exports. Of these, digitally traded services in the financial sector accounted for 16 per cent.
Red Sea attacks: What trade experts have to say about the shipping disruptions (WEF)
The Red Sea has long been a vital waterway for international trade. Yet since last fall, the Houthi group in Yemen has been attacking shipping vessels in the Red Sea, causing turmoil in one of the world’s most important waterways. In response to the assaults, which were launched following the outbreak of war in Israel and Gaza, a coalition of Western countries has retaliated against Houthi targets and deployed naval forces to protect commercial ships.
Zera Zheng, Global Head of Business Resilience Consulting, Maersk: “The Red Sea has become a hotspot of geopolitical tension due to Houthi militants targeting commercial vessels, with over 33 attacks reported since 19 November 2023. These disruptions threaten a key maritime route essential for a significant share of global container traffic and over $1 trillion in annual merchandise. In response, the US and EU spearheaded Operations Prosperity Guardian and Aspis to safeguard navigation and trade flows, yet challenges from the Houthis’ deployment of drones and missiles and vessel tracking capabilities remain.
“The Suez Canal/Red Sea, vital for around 30% of the world’s container traffic, has seen disruptions leading companies to reroute around the Cape of Good Hope. This situation has led to an immediate contraction in market capacity and a surge in shipping rates, with significant impacts on global trade networks and economic stability.
Lars Karlsson, Maersk’s Global Head of Trade and Customs Consulting, and Rico van Leuken, Maersk’s Global Head of Solutions and Services, contributed to this statement.
Simon Evenett, Founder, St. Gallen Endowment for Prosperity Through Trade: “To date, the harm to the global economy is modest. Chinese shipping lines haven’t given up on the Suez Canal route. Although shipping rates have risen, they remain well below pandemic-era peaks. The New York Fed’s index of Global Supply Chain Pressure has barely moved. Important as it is, just 11% of global trade flows through the Red Sea. On its own, this isn’t enough to disrupt the world economy. “What’s harder to assess is whether yet more upheaval in trade routes further undermines policymakers’ and corporate trust in long-distance sourcing. A further nudge towards national and regional sourcing can be expected.”
Gaza post-war reconstruction estimated at $20 billion: UN trade body (Reuters)
Gaza will need a new “Marshall Plan” to recover from the conflict between Israel and Hamas, a U.N. trade body official said on Thursday, adding that the damage from the conflict so far amounted to around $20 billion. Speaking on the sidelines of a U.N. meeting in Geneva, Richard Kozul-Wright, a director at trade body UNCTAD, said the damage was already four times that endured in Gaza during the seven-week war in 2014. “We are talking about around $20 billion if it stops now,” he said. Kozul-Wright said the estimate was based on satellite images and other information and that a more precise estimate would require researchers to enter Gaza.
The challenges of achieving the UN Sustainable Development Goals, the perils of the climate crisis and the complexities of leveraging finance were among the topics discussed at a gathering today of ministers from many of the Asia-Pacific Region’s countries most vulnerable to global economic and climate shocks.
A key purpose of the gathering – a special event forming part of the 37th session of the Food and Agriculture Organization of the United Nations (FAO) Regional Conference for Asia and the Pacific – was also to canvass views on what countries need from a proposed network bringing them together to jointly address shared challenges.
“The increasing trends of globalization” provide “many advantages and disadvantages,” for the region’s SIDS (Small Island Developing States), LDCs (Least Developed Countries) and LLDCs (Landlocked Developing Countries), FAO Director-General QU Dongyu said in opening remarks. For example, “small-scale farmers and fishery households enjoy increasing access to global markets yet are also extremely vulnerable to the impacts of global economic turbulence as we have recently seen with the cascading impacts of COVID-19 and the increase in prices of food, agricultural inputs, and energy.”
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South Africa: Budget must address revenue challenges, infrastructure investments (Engineering News)
While there has been a clear effort by the National Treasury to rein in spending and turn the trajectory of government’s financial performance around, the revenue side of the equation has not been able to deliver enough money to fully restore government finances, and this will be a key indicator that must be addressed in the Budget Speech, said business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso on February 19.
With revenue under pressure, the time at which revenue will exceed expenses before interest payments - a primary surplus - has consistently drifted outward, while gross debt as a percentage of gross domestic product (GDP) has continued moving upward.
“South Africa was meant to achieve a primary surplus during the current year, but there are doubts this will be achieved. If it does not, eyes will turn to whether it can do so in the year ahead, requiring clear spending discipline,” she said in her latest weekly newsletter.
Energy Council of South Africa joins World Energy Council (Engineering News)
The Energy Council of South Africa has become a member of the United Nations-affiliated global body the World Energy Council (WEC), which will serve to strengthen the standing of the Energy Council of South Africa and provide access to a range of international resources and global networks, as well as leading practice across global energy systems.
South Africa is currently grappling with an electricity crisis, which is compounding its triple challenge of poverty, inequality and unemployment, the Energy Council says. The crisis is receiving the highest attention from business leaders through the Business for South Africa partnership with government under the President’s direct oversight. South Africa has also made firm commitments towards transitioning to a net-zero future economy through the Paris Agreement and pending national emissions legislation, it says.
“The Energy Council and its members unequivocally support these commitments and, although the required energy transition will be a significant challenge, it is a significant opportunity for economic growth and clean industrialisation of South Africa.
Uganda signs $400m deal for green hydrogen fertiliser plant (The East African)
Uganda’s Energy Minister Ruth Nankabirwa on Thursday signed a joint development agreement with Industrial Promotion Services (IPS) and Westgass International for a green hydrogen fertiliser plant. The plant will be strategically located at Karuma, Kiryandogo District, within Bunyoro sub-region to leverage its proximity with the 600 megawatts Karuma hydropower plant.
According to Ms Nankabirwa, the significance of the project extends far beyond the realms of agriculture. She said the project aims to reduce the country’s dependence on imported fertilisers, therefore strengthening economic resilience and sovereignty with an estimated investment of about $400 million (Ush1.55 trillion).
Kenya woos Uganda, Rwanda and South Sudan to Mombasa port (The East African)
Uganda, Rwanda and South Sudan have supported Kenya’s move to offer end-to-end logistics services, even as clearing and forwarding agents protested the move that potentially locks them out of business. In the latest efforts to make Northern Corridor more efficient and serve landlocked countries to compete with Dar es Salaam port, officials of the three countries met with their Kenyan counterparts and agreed on a number of issues to make them use Naivasha inland container deport.
Kenya Ports Authority (KPA) had opposed the idea, but it has been given mandate to offer end-to-end logistics services after government completed procurement of more than 250 railway wagons and entered into an agreement with some transporters to offer last mile services through a tender advertised sometime last year. But clearing and forwarding agents say this is a return to compulsory railage of over 11.5 metric tonnes cargo destined for regional countries.
Creation of free zones between Algeria, five African countries in 2024 (Algeria Press Service)
In an address via video conference, at the 41st meeting of the Steering Committee of the Heads of State and government of the New Partnership for Africa’s Development (NEPAD), the president of the Republic said “Algeria will see, in 2024, the creation of free zones with sister countries, starting with Mauritania, then Sahel countries such as Mali and Niger, in addition to Tunisia and Libya.”
The president of the Republic also stressed Algeria’s commitment to meeting the goals of economic development and continental integration, and the importance of working for the improvement of the efficiency of the economic integration processes in Africa.
It also includes the improvement of regional production and trade networks, through the strengthening of production capacities, the continuation of the efforts to promote the industrial sector’s role and getting access to global value chains, by promoting the diversity of African industries, the president of the Republic said.
Malawi opens its borders to the world (CAJ News)
The recent removal of visa restrictions by Malawi is a major boost to tourism. Following the announcement, 79 nationalities can now enter the Southern African country visa-free and cost-free. Among these are 17 from the Asia-Pacific nations, 15 from Europe, 14 from the Americas and four from Africa and the Middle East.
Nationals of the 16-member Southern African Development region (SADC) region and 21-member Common Market for Eastern and Southern Africa (COMESA), in both instances except for those countries that subject Malawians to a visa requirement, also qualify for visa-free and cost-free entry.
Ghana implements ECOWAS free roaming initiative with Cote d’Ivoire (Citinewsroom)
The Minister for Communications and Digitalisation, Ursula Owusu-Ekuful, announced on Sunday, February 18, 2024, that Ghana has successfully implemented the ECOWAS free roaming initiative in collaboration with Cote d’Ivoire. The initiative aims to enhance integration and foster international connectivity between the two nations.
Speaking at a press briefing under the theme, ‘Digital Infrastructure to Bridge the Digital Divide,’ Minister Ursula Owusu-Ekuful revealed that the initiative, initially adopted in 2016, faced challenges in its implementation. However, she disclosed that Ghana and Cote d’Ivoire overcame obstacles and became the first ECOWAS member states to implement the ECOWAS free roaming in June 2023.
National Commodity Board Will Bring Stability To Food Prices (Leadership News)
The Lagos Chamber of Commerce and Industry (LCCI) has said the recent announcement regarding the federal government’s intention to establish a National Commodity Board has the potential to bring stability to food prices in Nigeria. The director-general of LCCI, Dr. Chinyere Almona stated that, “this initiative comes at a critical juncture when the rising cost of food has become a pressing concern for both the government and citizens, where food inflation has reached an alarming level, as highlighted by the National Bureau of Statistics data placing Nigeria’s food inflation at 33.9 per cent as at January 15, 2024.”
According to Almona, the chamber views this initiative as the government’s commitment to implementing effective short-term strategies to counteract subsidy removal and ensure immediate food supply and to deploying concessionary capital from the Central Bank of Nigeria (CBN) to the agricultural sector, especially, toward fertilisers, processing, mechanisation, and other key aspects, as a positive move that can enhance the overall productivity of the agricultural value chain.
Cocoa Prices Surge To Record High On Naira Depreciation (Leadership News)
Nigerian cocoa farmers and exporters are reaping big as global cocoa prices hit record high, thanks to the steep naira devaluation that has resulted in a sharp increase in the naira income from the export of the beans. The cost of cocoa – the key ingredient for making chocolate – has almost doubled since the start of the year, and quoted prices on the Internal Cocoa Organisation’s website reached a new historic high of US$5,874 a ton on February 8. This is because bad weather has battered harvest in top West African growers – Ivory Coast and Ghana, causing a supply shortfall and sending prices surging.
Locally, prices are also surging as the naira continues on a free fall hitting N1,534 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, data from FMDQ showed. Findings show that the local price of cocoa per ton at Matori cocoa warehouse in Lagos was N8 million per ton on Wednesday, 14 February, a 344 percent increase when compared to N1.8 million per ton in December of 2023.
Nigeria, UK trade hits N12trn as deal sealed to ease barriers (Daily Trust)
The value of trade between Nigeria and the United Kingdom has hit N12.3 trillion (£6.7bn) as at the end of 2023, Minister of Industry, Trade and Investment, Doris Uzoka-Anite, has revealed. The minister made the revelation on Tuesday in Abuja during the signing ceremony of the Memorandum of Understanding on the Enhanced Trade and Investment Partnership (ETIP) between the trade and investment ministry and the Secretary of State, Department of Business and Trade, Hon. Olukemi Badenoch.
“Nigeria and the UK have shared a long-term prosperity and have maintained long historic and commercial ties as the UK remains top trade partner both in import and exports amounting to £6.7bn pounds as at end of 2023,” she said. Speaking on the MoU, she noted that, “The first target is to reduce barriers to trade and which the ministry is diligently working to see that conducive atmosphere is created for businesses, especially now that Nigeria is working to get into AfCFTA that will lead to diversification of economy and improve exports while the second is to increase investment flows by improving ease of doing in furtherance with the eight-point agenda of the current administration.”
ECA and Google Sign Agreement to Foster and Accelerate Digital Transformation in Africa (UNECA)
The United Nations Economic Commission for Africa (ECA) and Google LLC (Google) have signed a landmark Memorandum of Understanding (MoU) to foster and accelerate digital transformation in Africa on the margins of the 2024 edition of the Africa Business Forum. The partnership is founded on the complementary expertise and strengths of both parties who wish to collaborate on activities to support ECA’s mandate such as digital development in Africa in line with the African Union Digital Transformation Strategy for Africa (2020-2030) and Google’s Digital Sprinters Framework, and to leverage the power of information and communication technologies (ICTs) for the benefit of Africa’s digital economy.
As a general framework for collaboration, the MoU will seek to further explore specific key areas of interest pertaining to digital skills development for Africa’s burgeoning young population, startup development, increasing financial inclusion, strengthening cybersecurity and online safety measures, and advancing AI policy research for policymakers on the continent.
ECA’s Executive Secretary, Mr. Claver Gatete, acknowledged Google’s pivotal role in improving Africa’s connectivity infrastructure, supporting Africa’s innovators and entrepreneurs, and building digital capacity in emerging technologies through skills development for researchers, students and educators.
EAC set to negotiate trade agreements with UK, UAE after EPA flops (The Independent Uganda)
At least seven countries have requested free trade arrangements with the East. African Community (EAC), as the bloc also intensifies efforts to expand the markets for its products. These countries include the United Kingdom, Singapore, Pakistan, and the United Arab Emirates (UAE), as well as China, Turkey, and Serbian. It follows the failure of the deal between the European Union (EU) and EAC dubbed the EU-EAC Economic Partnership Agreement (EPA) after the EAC states failed to agree amongst themselves on key issues. The EAC leaders have called on the relevant authorities for the prioritization of the negotiations with the seven countries.
Now, at the 43rd Meeting of the Sectoral Council of Trade, Industry, Finance, and Investment, the EAC line ministers approved negotiations of FTA Agreements between the EAC and the United Kingdom, United Arab Emirates, Pakistan, and Singapore. The Council also directed the EAC Secretariat to engage each of the four countries by July 30, 2024, with a view to the commencement of negotiations for FTA Agreements. The Ministers resolved that negotiations with Turkey, China, and Serbia will be undertaken after negotiations of FTAs have progressed with the first four.
NTBs cost region $16m, threatening intra-EAC trade (The East African)
The direct costs of non-tariff barriers (NTBs) in the East African Community (EAC) is estimated at $16,703,970, with the total trade impact being $94,918,000, a new report shows. The EAC Regional Meeting Committee report (2023) shows that trade has decreased by an average of 58 percent. Tanzania and Uganda have been cited as having the highest number of unresolved NTBs, with Tanzania having four unresolved issues, Uganda, three, and Kenya and South Sudan having one each as at February 2024.
Addressing the EAC Sectoral Council of Trade, Industry, Finance and Investment on the matter, EAC Secretary-General Peter Mathuki said that while in the financial year 2021/2022, intra-trade reached $8.7 billion, followed by an increase to $9.4 billion in 2022/23, NTBs continued to pose threat to trade in the region.
Small businesses cry foul over EAC payment system (The East African)
Small businesses have attributed their apathy towards the East African Payment System (EAPS) to its focus on high-value transactions between commercial banks, locking them out. They say that the system, in its current format, is a deterrent to cross-border interoperability of digital payments.
“This is a missed opportunity because micro entrepreneurs, 70 percent of whom are women, are the backbone of East Africa’s economy. Their limited digitalisation is hindering financial inclusion-commerce and cross-border trade in the region,” Netherlands-based think-tank European Centre for Development Policy Management (ECDPM) says in a discussion paper dated October 2023.
According to ECDPM, which is working on international co-operation and development policy in Europe and Africa, the EAPS is facing low uptake from regional governments, and this is hindering seamless digital payments interoperability — the ability of systems to exchange information and work together in a coordinated manner without end user’s involvement
Niger: Ecowas Prepares to Lift Sanctions on Niger - Report (allAfrica)
According to information from Jeune Afrique, regional organization Ecowas will lift the economic sanctions on Niger “soon” - a decision made after the coup on July 26, 2023, by General Abdourahamane Tchiani against elected president Mohamed Bazoum.
Negotiations between the Alliance of Sahel States (AES) and the mediators of the regional organization seemed to be at a standstill. At the end of January 2024, tension rose between the juntas, led by the Malian Assimi Goïta, the Burkinabè Ibrahim Traoré and the Nigerien Abdourahamane Tiani, and the West African civilian regimes, when the military-ruled countries first announced their departure from ECOWAS.
To break the deadlock, the heads of state at Ecowas have decided to take the first step - reportedly preparing to removed sanctions placed on Niger - the only country still subject to such measures. The announcement is expected to be made before Ramadan, which is scheduled to begin on March 10.
37th AU Summit updates
Education, Peace, Politics, Climate, Economy and International /Global Diplomacy in Focus at 37th AU Summit (African Union)
The 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) kicked off on Saturday 17 February 2024. Holding under the theme: “Educate an African fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive, Lifelong, Quality, and Relevant Learning in Africa”, the event at the AU headquarters in Addis Ababa, Ethiopia, was well attended by African Heads of state and Government, and high-level representatives from the African continent and beyond.
Taking the floor, the outgoing Chair of the Union, President Assoumani, presented a comprehensive report of the achievements and activities undertaken on behalf of the AU during his leadership. He noted successes in peace and security, socio-economic development, youth and women’s empowerment, Africa speaking with one voice and taking common positions on global issues, enhancement of infrastructure, agriculture, climate change, education, health, and ICTs among others. He called for peace in the Middle East, reiterating the need for a two-state solution for Israel and Palestine.
In his welcome remarks, Ethiopian Prime Minister H.E. Dr Abiy Ahmed, underscored the importance of creating strong regional and continental platforms, emphasizing that these platforms are essential for addressing national development challenges from geopolitical, logistical, and security standpoints. He commended the African Union for its accession to the G20, as “marking a significant milestone” on the global stage.
Addressing the Assembly, AUC Chairperson, H.E. Moussa Faki Mahamat highlighted some critical concerns facing the continent, including peace, political and institutional instability, climate change, economic governance deficits, integration challenges, poverty, and the marginalization of women and youth in development and leadership processes. He stressed the urgent need for Member States to proactively engage with these issues, underscoring their importance in achieving the aspirations of Agenda 2063 for a transformed and prosperous Africa.
In highlighting the continent’s progress, H.E. Faki commended the successful advancement of institutional reforms and the strides made in regional integration, notably through the African Continental Free Trade Area (AfCFTA). He expressed satisfaction with the progress made in some areas including the Peace Fund, the African Common Positions on climate change, the reform of global governance, the financing of African peace keeping missions, and the notable accession of the AU to the G20 Forum.
Agenda 2063: Launch of 2nd Decade of Acceleration (AU)
The launch of the Second 10-Year Implementation Plan of Agenda 2063, also dubbed as the decade of acceleration (2024-2033), is a historic milestone for the African Union, its Member States, and all African citizens. It marks the beginning of the second decade of a collective effort to realise the vision of a prosperous, peaceful, and integrated Africa by 2063.
The Second 10-Year Implementation Plan of Agenda 2063 is a bold and ambitious roadmap for Africa’s transformation. It is a manifestation of the collective will and determination of the African people to shape their destiny. It is a reaffirmation of the African dream of unity, dignity, and prosperity for all. The plan outlines seven moonshots of how the continent aims to achieve key priorities, goals and targets to achieve in the next 10 years. By 2033, Africa wants to be prosperous, integrated, democratic, peaceful, cultured, people-driven and influential.
The plan also identifies flagship projects that will have a high impact, such as the African Continental Free Trade Area, the African Passport, the Grand Inga Dam, the Single African Air Transport Market, the African Virtual University, the Pan-African E-Network, and the African Outer Space Strategy. These projects will enhance regional integration, economic diversification, innovation, and competitiveness, as well as social inclusion and cohesion.
pdf Agenda 2063: Second Ten Year Implementation Plan 2024-2033 | Abridged version (6.58 MB)
AU faced with old crises as leaders plot to polish scorecard, roadmap (Nation)
At the opening session for the Executive Council of Ministers of Foreign Affairs, African Union Commission Chairperson Moussa Faki Mahamat pointed at the resurgence of military coups, pre- and post-election violence, humanitarian crises linked to war and the effects of climate change as old challenges the AU should address. Liesl Louw-Vaudran, Senior Adviser on the African Union at ICG said diplomacy is a better tool to nurture for the continental body to address the current crises but added: “The AU should also keep channels of communication open with countries in the Sahel and put Cameroon’s Anglophone conflict on the agenda.”
At the African Union Summit, President Lula defends the entry of more countries from the continent as full members of the G20 (G20 Brasil 2024)
During the opening of the 37th African Union Summit in Ethiopia, the Brazilian president also stressed that “without the Global South countries, a new cycle of world expansion will not be possible, with growth, a reduction in inequalities and environmental preservation, with the expansion of freedoms” and condemned the ongoing wars in the world.
See Speech by President Lula at the opening of the 37th African Union Summit
Towards a Prosperous Africa: A Conversation with UNDP Africa Regional Director Ahunna Eziakonwa (UNDP)
Following the 37th African Union (AU) Summit, in this interview Ahunna Eziakonwa, Director of the UNDP Regional Bureau for Africa, describes UNDP’s role in supporting communities and governments in advancing sustainable development across the continent, calls on African leaders at the AU Summit to prioritize education and development, and underscores the importance of partnerships in forging regional solutions to global challenges. To the distinguished leaders and decision-makers that gathered at the African Union Summit - Let us recognize that education is the most powerful currency in today’s knowledge economy, and it is through lifelong learning that we will continue to secure prosperity for Africans in Africa but also Africa’s place in the world.
Statements
Statement by Mr. Claver Gatete at the pre-launch of the African Union Theme for 2024 (UNECA)
President Ramaphosa concludes participation at the African Union Summit (The Presidency, South Africa)
AU today is fit-for-purpose, says Kagame as Ruto takes over reforms team (The New Times)
The African Union is better positioned to drive the interests of the continent than it was in 2016, when the body launched institutional reforms, President Paul Kagame said on Saturday, February 17 as he attended the 37th AU Summit in the Ethiopian capital Addis Ababa.
Kagame, who spearheaded the AU reforms for the past eight years, concluded his mandate and handed over to Kenya’s President William Ruto. “Almost $400 million has been mobilized. As a direct result, the United Nations Security Council recently decided to finance three-quarters of African Union peace operations for the first time. “This was only possible because the African Union today is more fit-for-purpose than it was. And we are getting better at defining our common interests, and advocating for them.”
See Report by President Paul Kagame on the Institutional Reform of the African Union – 17 February 2024
African countries to spend $74bn on debt service in 2024; negotiating new terms with private creditors failing - AfDB (MyJoyOnline)
African countries are expected to spend around $74 billion on debt service in 2024, the Macroeconomic Performance and Outlook 2024 by the African Development (AfDB) Bank has revealed. This would be up from $17 billion in 2010. According to the AfDB, some $40 billion, or 54.0% of total debt service is owed to private creditors.
“Except in Chad, the Democratic Republic of Congo, Gambia, and Mauritania, debt service costs in African countries was higher in 2020–22 than in 2015–19. Debt service payments have risen substantially in tandem with the growing share of debt owed to private creditors”.
This it said is a cause for concern because current debt restructuring negotiations are failing to reach agreement with private creditors. Presently, Ghana is negotiating a debt restructuring terms with its private creditors. The country is proposing about 40% haircut of up to $13 billion. The report pointed out that debt service costs have risen, narrowing the scope for government spending and increasing debt vulnerabilities. “External debt service payments as a proportion of government revenue are higher than before the COVID-19 pandemic in many countries”, it added.
See Africa’s Macro-Economic Performance and Outlook - January 2024
Fisheries subsidies chair circulates draft text to ministers as basis for MC13 negotiations (WTO)
The chair of the fisheries subsidies negotiations, Ambassador Einar Gunnarsson of Iceland, on 16 February circulated to ministers a draft text on Additional Provisions on Fisheries Subsidies, with disciplines on subsidies contributing to overcapacity and overfishing, as the basis for finalizing the negotiations on these issues at the 13th Ministerial Conference (MC13). The chair said the text, which draws on members’ proposals and discussions, reflects his best attempt to identify a balance most likely to build consensus.
Agriculture negotiations chair circulates revised text, aiming for outcome at MC13 (WTO)
The Chair of the WTO's agriculture negotiations, Ambassador Alparslan Acarsoy of Türkiye, circulated a revised negotiation text on 16 February. This text was submitted as a potential outcome document for ministers to consider at the organization’s 13th Ministerial Conference (MC13), due to take place in Abu Dhabi on 26-29 February. “The text represents my best efforts to help members in their desire to reach a successful outcome on agriculture at MC13,” the Chair said.
Political Fragility: Coups d’État and Their Drivers (IMF)
The paper explores the drivers of political fragility by focusing on coups d’état as symptomatic of such fragility. It uses event studies to identify factors that exhibit significantly different dynamics in the runup to coups, and machine learning to identify these stressors and more structural determinants of fragility—as well as their nonlinear interactions—that create an environment propitious to coups. The paper finds that the destabilization of a country’s economic, political or security environment—such as low growth, high inflation, weak external positions, political instability and conflict—set the stage for a higher likelihood of coups, with overlapping stressors amplifying each other.
Reform of global governance and international crises are on the agenda of the first G20 foreign affairs ministers’ meeting in Brasil (G20 Brasil 2024)
Rio de Janeiro will host one of the most important meetings in global diplomacy, with the participation of the world’s largest economies’ foreign affairs ministers for the G20’s first ministerial meeting in 2024, presided over by Brasil. The meeting, scheduled for the afternoon of February 21 and the morning of February 22 at Marina da Glória, takes place during a period of great geopolitical instability, with crises erupting in various parts of the world. Among the most pressing issues to be discussed are the situation in the Middle East and the Russian offensive in Ukraine, which continue to generate global concern over the humanitarian crisis and the geopolitical and economic consequences of the conflicts.
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Climate Change Response Fund to channel resources to adaptation, early-warning systems (Engineering News)
Forestry, Fisheries and the Environment Minister Barbara Creecy reports that the Climate Change Response Fund announced by President Cyril Ramaphosa in his State of the Nation Address (SoNA) has been established to support the development of early-warning systems, as well as for adaptation projects to improve the climate resiliency of infrastructure amid the growing threats posed by extreme weather events.
Addressing the Presidential Climate Commission (PCC) in Johannesburg, Creecy said that there was also potential to use the fund as a “channel” for financial resources that could be made available to developing countries following the recent operationalisation of a loss and damage fund.
Strategic integrated projects (SAnews)
In South Africa government is undertaking a massive infrastructure investment and build programme in the form of Strategic Integrated Projects (SIPs), which are aimed at improving the quality of life for all South Africans. Government is working to transform key sectors of our economy such as electricity, rail, ports and telecommunications through infrastructure. We are also working to rebuild and renew infrastructure in critical areas such as student accommodation, social housing water and sanitation. Our focus on infrastructure is critical to driving economic growth and creating employment, while also ensuring that we can change lives and empower communities.
Over the medium-term the public sector is projected to spend R903 billion on infrastructure and a number of these projects have been completed, while many others are in the construction and procurement phases.
The Strategic Integrated Projects are breathing life into many sectors of the economy, including potentially new and game changing ones. South Africa has amassed a pipeline of Green Hydrogen Projects with a value of over R300 billion, which are in project preparation stages.
Once all 88 SIPs are concluded there will be a massive increase in energy and water security. They will also further boost our Fourth Industrial Revolution ambitions and capabilities, while also ensuring that we provide homes, accommodation and revitalise the agricultural value chain.
*Written by Nomonde Mnukwa, Acting Director-General of the GCIS
South Sudan and Kenya Pave the Way for Regional Integration: A Highway to Prosperity Amidst Disputes (BNN)
In a significant move towards regional integration and economic development, South Sudan and Kenya have taken a step forward by agreeing to continue the construction of a pivotal highway.
This decision comes amidst the longstanding border dispute over the Ilemi Triangle, a testament to the two nations’ commitment to transcending historical conflicts for mutual benefit. The planned highway, set to link Eastern Equatoria State with Turkana County, promises to bridge South Sudan to Kenya’s vibrant Mombasa Port, turning Juba into a crucial hub for Kenyan exports. Amidst negotiations, the Ministers of Roads from both countries convened, laying the groundwork for a Memorandum of Understanding, signaling a new dawn of cooperation beyond their borders.
Macroeconomic and Distributional Implications of Gender Gaps: The Gambia (IMF)
We present the current status of labor market gender gaps in The Gambia and examine the macroeconomic and distributional gains from closing the gaps. We also study the impacts of high costs of living and the determinants of poverty. Closing labor market gender gaps, would significantly boost GDP, government revenues, women’s earnings, and reduce income inequality. High food costs adversely affect the levels of consumption in the bottom four quartiles of the income distribution. Lack of access to finance, living in rural areas, lack of employment, low levels of education, and exposure to climate shocks contribute to higher poverty levels.
Climate Change Vulnerabilities and Strategies: The Gambia (IMF)
This paper analyzes The Gambia’s vulnerability to climate change, highlighting risks like flooding, droughts, and coastal erosion, which threaten food security and key industries. It details The Gambia’s climate strategies, including the National Climate Change Policy, 2050 Climate Vision, and Long-Term Climate-Neutral Development Strategy, targeting net-zero emissions by 2050. Despite its minimal global emissions contribution, The Gambia’s focus on renewable energy expansion offers dual benefits for energy security and development. The paper underscores the need for improved land management, crop diversification, and irrigation to boost adaptive capacity and resilience, ensuring food security amidst climate challenges.
IMF Staff Completes 2024 Article IV Mission to Gabon (IMF)
The 2024 Article IV consultation focused on the near-term challenges facing Gabon: strengthening transparency and governance, revitalizing economic growth and stabilizing the budgetary position.
The economy has recovered from multiple shocks emanating from the global and domestic economy, with growth expected to settle around 3 percent in 2024-25 and inflation to remain below the regional ceiling of 3 percent.
Efforts to strengthen transparency and the management of public finances should continue unabated, while policies should put increased focus on correcting fiscal imbalances to bring deficits to financeable levels and pause the increase in debt.
Ghana, Zambia sign 3 bilateral agreements (Graphic Online)
Ghana and Zambia have signed three memoranda of understanding (MoUs) to reinforce and promote cooperation between the two countries.
The agreements — Political Consultation, Defence Cooperation and Agreed Minutes of the Permanent Joint Commission between Ghana and Zambia — were signed at Zambia’s Ministry of Foreign Affairs in Lusaka, the capital, last Tuesday.
The MoUs are geared towards fostering, governing and monitoring bilateral cooperation for the mutual benefit of the two countries.
They also aim to provide a structure for the exchange of views on regional and international issues of mutual interest, covering areas such as politics, diplomacy, trade infrastructure, eco-tourism and wildlife conservation, education and spatial planning.
Seychelles and Botswana: A Burgeoning Alliance for Regional Integration (BNN)
In a pivotal move that underscores the growing camaraderie and shared visions between Seychelles and Botswana, Ambassador Claude Morel has put a spotlight on the burgeoning relationship between the two nations. With a keen focus on mutual values and development strategies, this alliance is set to redefine the landscape of regional integration within the Southern African Development Community (SADC).
At a recent gathering at the SADC Headquarters, the dialogues weren’t just about formalities but a testament to a future where cooperation spans education, tourism, trade, and governance. As middle-income countries in Africa, both Seychelles and Botswana are charting a course towards a unified goal of regional integration and shared prosperity.
Niger, Mali, Burkina Faso to form confederation (Premium Times Nigeria)
The governments of Niger, Mali and Burkina Faso have made public their plans to form a confederation following their ‘exit’ from ECOWAS. “Our excellent diplomats then recommended to the Heads of State the creation of a Confederation bringing together Burkina, Mali and Niger, awaiting the creation of a Federation of the three countries,” said the Malian government spokesperson, Abdoulaye Maiga, on Thursday in a Facebook post.
It was part of a speech the army colonel delivered at a meeting that ministers of the three states held in Ouagadougou, Burkina Faso. Mr Maiga, who is also Mali’s minister of Territorial Organisation and Decentralisation, said the recommendation to create a confederation was made in a November 2023 meeting by the countries’ ministers of development affairs. They also recommended expanding the Alliance of Sahel States (AES) objectives in diplomacy and economic development. The AES was created in September 2023, a few months after the Niger coup.
The three states last month announced their withdrawal from ECOWAS on grounds of what they said were illegal and inhumane sanctions.
Africa will account for eleven of the world’s 20 fastest-growing economies in 2024, the African Development Bank Group said in its latest Macroeconomic Performance and Outlook (MEO) of the continent released on Friday. Overall, real gross domestic product (GDP) growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, respectively. This is higher than projected global averages of 2.9% and 3.2%, the report said.
The continent is set to remain the second-fastest-growing region after Asia.
“Despite the challenging global and regional economic environment, 15 African countries have posted output expansions of more than 5%,” Bank Group President Dr Akinwumi Adesina said, calling for larger pools of financing and several policy interventions to further boost Africa’s growth. The latest report is calling for cautious optimism given the challenges posed by global and regional risks. These risks include rising geopolitical tensions, increased regional conflicts, and political instability—all of which could disrupt trade and investment flows, and perpetuate inflationary pressures.
African Union’s 37th Summit: Forging Resilient Education Systems Amidst Rising Violence (BNN)
Amidst this backdrop of ambition and aspiration, a dark shadow looms over the continent’s educational landscape, with recent reports highlighting a dramatic rise in violence against schools, casting a pall on the quest for enlightenment and progress. The focus is clear - to transform education systems to ensure increased access to inclusive, lifelong, quality, and relevant learning, thereby preparing Africa’s youth for the future.
Africa’s development challenges are multifaceted and require innovative and sustainable solutions. The continent, despite its vast resources and potential, faces economic, social, and environmental challenges that hinder its growth and sustainable development. The global financial architecture, which encompasses international financial institutions, global economic governance structures, and financial regulatory mechanisms, plays a pivotal role in shaping Africa’s economic destiny. However, the current system inadequately addresses the unique development needs and vulnerabilities of the African continent.
His Excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana and Champion on African Union Financial Institutions, is hosting a Heads of State dialogue in collaboration with the African Union Commission (AUC), the African Multilateral Financial Institutions, the United Nations Economic Commission for Africa (UNECA), and the African Center for Economic Transformation (ACET).
During this event, participants will have the opportunity to reaffirm their commitment to establishing AU Financial Institutions; solidify Africa’s Agenda for Global Financial Architecture Reform and agree on a way forward; and officially launch the Africa Club as a key avenue for strengthening Africa’s position in the global financial landscape.
Africa is poised to embark on a transformation journey to help its countries and people reach their fullest economic potential, with a real opportunity to accelerate its evolution as a single market, a valuable player in value chains, and a destination for investment, particularly in the green economy.
This progress is unfortunately held back by a global system that was created in a different time, for a different world, and which neither adequately meets African countries’ needs nor harnesses the opportunities that Africa’s natural and human capital offer. It is past time to create a global financial architecture that better serves Africa.
44th Ordinary Session of Executive Council of AU Concluded (ENA)
The 44th Ordinary Session of the Executive Council of African Union that has been held in Addis Ababa from 14-15 February 2024 concluded. Foreign Affairs Ministers of African countries have held their 44th Ordinary Session of the African Union (AU) Executive Council in Addis Ababa for the past two days. The meeting held under AU’s this year theme: Educate an African fit for the 21st Century: Building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa.” has discussed on the progress, challenges, and prospects of Africa’s development as well as peace and security of the continent.
The foreign ministers in their night long deliberations evaluated performance report of African Union institutions and organizations, the committees and sub-committees under the council, and the 10-year implementation of Agenda 2063.
Peace and security, trade and connectivity, institutional reforms, education, agriculture and climate change, human rights, gender and youth empowerment as well as the selection of institutions and organizations are among the main agendas discussed during the meeting.
See also: The elephant in the room at this weekend’s African Union summit (EU Observer)
Africa’s Lobito Corridor Railway Provides Huge International Opportunity (U.S. Chamber of Commerce)
On February 8, the Lobito Corridor Private Sector Investment Forum in Zambia concluded with great optimism. This gathering, hosted by the White House’s Partnership for Global Infrastructure and Investment (PGI) in collaboration with the Africa Finance Corporation, underscored the transformative potential of the Lobito Corridor rail project. It also positioned the project as a focal point for public-private partnerships with the potential to yield shared prosperity for Americans and Africans.
The Lobito Corridor project entails the construction of almost 350 miles of rail line in Zambia, along with hundreds of miles of feeder roads, linking the southern part of The Democratic Republic of the Congo (DRC) and the northwestern part of Zambia to regional and global markets via Angola’s Port of Lobito.
Linking the copper-rich mining region to the sea, the Lobito Corridor ushers in myriad new opportunities for economic growth and development that will unlock the region’s commercial competitiveness. This infrastructural investment is a powerful catalyst for the establishment of small businesses along the railway transport routes, fostering local economic growth. The corridor’s impact will be far-reaching, touching sectors vital for the region and Africa overall: transportation & logistics, clean energy & critical mineral supply chains, and agribusiness.
Horticultural accelerator project rolls-out (COMESA)
Implementation of a new project known as the COMESA- EAC Horticultural Accelerator (CEHA) has just begun and is expected to enhance policy coordination, value chain development, financing, and research and development in the horticulture industry. Established in 2022 through public and private sector partnerships, and launched in June 2023, the project covers five countries in the Common Market for Eastern and Southern Africa – COMESA and the East African Community – EAC. These are Ethiopia, Kenya, Rwanda, Tanzania, and Uganda.
CEHA targets avocado, onion, and Irish potatoes development. Its initial activities are supported by the Bill and Melinda Gates Foundation with USD 5 million, and the Foreign, Commonwealth & Development Office providing a total of GBP 500,000.
It will facilitate the modernization of regional horticulture value chains by coordinating private sector-led investments, improving policies and standards, and providing access to finance and technical assistance for accelerated growth.
Political will: A key ingredient in developing regional agriculture value chains (COMESA)
COMESA in partnership with the United Nations Economic Commission for Africa (UNECA) are collaborating to enhance political will and strengthen the capacity of Member States to apply the African Union Guidelines for the Development of Regional Agricultural Value Chains (RAVCs) in Africa. This is being done under a project: Strengthening Member State capacity to develop Regional Agricultural Value Chains to promote Diversification and Intra-African Trade.
Currently, the project is being piloted in the COMESA region to promote regional value chains of two strategic commodities; maize and dairy in Zambia and Zimbabwe. The aim is to foster agro-processing and support the actualization of the Common Agro Industrial Park (CAIP) initiative which was mooted under the Joint Industrialisation Cooperation Programme between Zimbabwe and Zambia. Towards this goal, COMESA and UNECA conducted a validation workshop on January 22, 2024, to discuss the Recommendation Report for Strengthening Maize and Dairy Value Chains. The report was based on the review of the policy, regulatory and institutional frameworks in Zambia and Zimbabwe and the industrialization and export strategy for maize and dairy products in the two countries.
Ag investment in Africa looks to scale productivity (Meat and Poultry)
In an effort to scale up agriculture and nourish a growing population in Africa, which contains 65% of the world’s uncultivated land, the African Development Bank Group and Consortium of International Agricultural Research Centers (CGIAR) have committed to strengthen their collaboration. Akinwumi Adesina, president of the African Development Bank, received Africa-based directors general of CGIAR at the bank headquarters in Abidjan, Ivory Coast, on Jan. 25, to discuss efforts at scaling up food and agricultural productivity on the continent.
US trade chief looks for incremental reform at WTO meeting (Investing.com)
U.S. Trade Representative Katherine Tai said on Wednesday that she is taking a “pragmatic” approach to the World Trade Organization’s next ministerial meeting, aiming for incremental but meaningful improvements that sustain the trade body’s reform momentum.
Tai told reporters ahead of the WTO’s 13th Ministerial Conference (MC13) in Abu Dhabi that she did not anticipate a massive reform agreement that addressed all of the institution’s shortcomings at once.
“We’re looking for success,” she said of the Feb. 26-29 conference. “The Athena coming out of the brain of MC13, it’s not going to happen. So why would we set ourselves up for that?”
Ministerial Identifies Solutions to Development Challenges in MICs (SDG Knowledge Hub)
Morocco hosted a high-level ministerial conference dedicated to the specific challenges middle-income countries (MICs) face in their economic and social development. Participants adopted the Rabat Declaration, in which they commit to developing a Strategic Action Plan for MICs for the years 2025-2030, in collaboration with the UN system, development partners, and stakeholders.
Held on the theme, ‘Solutions to Address Development Challenges of Middle-income Countries in a Changing World,’ the conference brought together 32 countries and 23 UN development agencies and other international and regional institutions. MICs are a diverse group of more than 100 countries.
In her message to the conference, among the many challenges MICs face, UN Deputy Secretary-General Amina Mohammed highlighted conflicts and instability, climate change, recurrent and more intense natural disasters and associated economic losses and costs, and heavy public debt burdens. She said many MICs “are unable to find the fiscal space for sustainable development,” with 39 of them shouldering net interest payments that account for more than 10% of government revenue, compared to 23 a decade ago.
Quick links
Modernizing AGOA for the 21st century (Brookings)
Guest Article: What to Expect at MC13 (SDG Knowledge Hub)
In Munich, Guterres calls for new global order that works for all (UN News)
Brazil G20 presidency to take India’s food security agenda forward (Mint)
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Vegetable export bans stir concerns in Southern African agriculture (Food For Mzansi)
While Botswana and Namibia have banned vegetable exports from South Africa, trade relations between the countries have been excellent, said Thabile Nkunjana from the National Agricultural Marketing Council (NAMC). It spans a variety of industries that are interlinked to agriculture such as finance, logistics, retail, wholesale, and primary agricultural production. However, experts have warned that new policies by incoming governments might either harm or unblock the great potential of the agricultural industry.
“Using the vegetable industry as an example, South Africa’s average annual export revenue between 2018 and 2022 was R3.1 billion, largely due to the country’s neighbours. About 20% of South Africa’s vegetable export revenue in 2021 came from Mozambique, with the remaining 15% coming from Botswana, 9% from Namibia, 7% from Eswatini, and 4% from each of Zimbabwe and Lesotho. “From South Africa’s perspective, these figures demonstrate why the recent prohibition on its vegetable exports by its bordering major markets is problematic,” he explained.
Nkunjana said numerous companies from South Africa, Southern African Customs Union (SACU) and Southern African Development Community (SADC) member nations have made significant investments over the years, which have resulted in the creation of employment and an improvement in the region’s food security.
Subdued growth expected in transport sector; more freight going to Maputo (Engineering News)
The Ctrack Transport and Freight Index (Ctrack TFI) forecasts “another year of fairly subdued growth for the transport sector”. This is based on the assumption of mediocre economic growth in South Africa this year, forecast at 1.3%, up from 2023’s estimated 0.6%. The latest Ctrack TFI says real transport sector growth is expected to reach 3.7% for 2024, compared with an estimated 3.4% in 2023.
On the assumption that rail will continue to improve gradually to account for 15.8% of total freight payload (compared with 15.5% in 2022 and 2023), growth of 7.4% is forecast for rail freight in 2024, compared with an estimated 1.5% last year. “Though off an extremely low base, and clearly continuing to underperform relative to other transport modalities given ongoing challenges plaguing the sector, the improvement should be celebrated,” notes the TFI report.
“While government approved the Freight Logistics Roadmap at the end of 2023, with proposals to resolve the immediate operational challenges while developing interventions to fundamentally restructure the logistics sector…implementation still needs to be fast-tracked before a notable difference would be evident. More of a medium-term expectation for improvement would be realistic here.” This said, road freight payload is forecast to grow by 5.1% this year versus 1.5% in 2023, which makes it likely to account for 84.2% of total freight payload in the country in 2024.
“The transport and logistics sector is of utmost importance to the South African economy,” comments Ctrack CEO Hein Jordt. “The inability to effectively move products to and from markets comes at a cost, which has a negative impact on the whole economy. “Not only does it subtract from economic growth, given that products are not timeously available for trading, but the cost of products is typically higher given inefficiencies.”
EIB in talks with South Africa over loan for ports, freight rail (Engineering News)
The European Investment Bank (EIB) said it’s in talks to loan South Africa money to upgrade its port and freight-rail infrastructure as its first contribution to a decarbonization pact known as the Just Energy Transition Partnership. “This potential investment would aim to support South Africa’s ambitious decarbonization efforts under the JETP, while boosting economic growth through more efficient and reliable freight transport,” the EIB said.
Kenya’s power imports from Uganda rise 18pc in January on high demand (The East African)
Kenya’s electricity imports from Uganda increased 18.4 percent in January, fuelled by a bigger demand. Data from the Energy and Petroleum Regulatory Authority (Epra) shows that Kenya last month imported 20.29 million units of power from the Uganda Electricity Transmission Company Limited. This is a significant increase from 17.12 million units that Kenya imported from her neighbour in December.
Kenya and Uganda have a power exchange programme during which either country supplies the other with power during periods of deficit. At the close of the financial year, the country that will have exported more electricity to the other invoices its counterpart. In January for instance, Kenya exported 3.41 million units to Uganda, and in December, it exported four million units to its neighbour, meaning that Uganda continues to enjoy a positive trade balance in this exchange. Besides Uganda, Kenya also imports power from Ethiopia, which has been key in stabilising local supply over the past year.
Kenya rolls out tax incentives for key foreign investors (CGTN Africa)
Kenya said Wednesday it has commenced rolling out tax incentives for foreign investors who set up establishments worth more than 65.5 million U.S. dollars. Abubakar Hassan, the principal secretary in the Ministry of Investments, Trade and Industry, told a trade forum in Nairobi, the capital of Kenya, that the customized incentives will apply to companies undertaking manufacturing activities in the country.
“We are rolling out performance-based tax incentives to expand our industrial base,” Hassan said during the Diamond Trust Bank economic and sustainability forum. He noted that firms that qualify for the fiscal tax regime will enjoy reduced tax rates on excise, import duty as well as value-added taxes subject to the approval by the National Treasury.
Uganda in talks to import all its oil via Tanzania (The East African)
Uganda is negotiating with Tanzania to import all of its oil products through Dar es Salaam, which would mean an end to imports via Kenya’s Mombasa port, Uganda’s Energy minister told Reuters on Thursday. Uganda has been dissatisfied with the longstanding system under which Ugandan fuel companies buy 90 percent of their supplies through affiliated firms in Kenya. President Yoweri Museveni has complained this exposes his country to supply disruptions and high pump prices.
In response, Uganda announced in November it would hand over exclusive rights for supply of all petroleum products to a unit of global energy trader Vitol. Uganda imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf. The government planned for imports to still arrive via Kenya, but Energy Minister Ruth Nankabirwa said the Kenyan government refused to grant the required licence.
“We are negotiating with the Tanzanian government. The technical teams are talking, and I will be meeting Her Excellency, the president on that,” Nankabirwa said. “We want to find a route that will keep us safe in terms of petroleum supplies.”
Zimbabwe should speed up currency reforms, IMF says (The East African)
The International Monetary Fund (IMF) on Wednesday encouraged Zimbabwe to speed up currency reforms at the end of a staff visit, saying authorities should move towards a market-driven exchange rate and remove distortions currently in place. The visit discussed Zimbabwe’s request for an IMF staff-monitored programme, part of the Southern African country’s efforts to re-engage with the international financial community by demonstrating a track record of sound economic policies.
Zimbabwe has not been able to secure financing from the likes of the IMF for more than two decades due to arrears in servicing its debt to lenders including the World Bank, the African Development Bank and European Investment Bank.
“An IMF financial arrangement would require a clear path to comprehensive restructuring of Zimbabwe’s external debt, including the clearance of arrears and a reform plan that is consistent with durably restoring macroeconomic stability.” Zimbabwe’s central bank and finance ministry have said they are working on measures to stabilise the Zimbabwean dollar, which has fallen about 40 percent against the US dollar since the start of the year. One option being considered is linking the exchange rate to assets such as gold.
See IMF Staff Completes 2024 Article IV Mission to Zimbabwe
Algeria and Tunisia promote a free trade area (Atalayar)
Algeria and Tunisia are seeking to develop their economic collaboration. The two North African countries have proposed strengthening their commercial ties by promoting a free trade zone between the two countries.
The aim is for this free trade zone to become operational in a few months’ time in order to revive the Algerian and Tunisian economies, which are not going through the best of times. Algeria is highly dependent on the income derived from its powerful energy industry, which supplies gas and oil to many other countries, but it has deficits in other economic sectors and, in addition, various sectors have criticised institutional corruption in part of the Algerian state, which has also influenced the national economic crisis and poor administrative management. Tunisia, for its part, is also experiencing major economic problems and social discontent with the political class, which President Kais Saied, who came to power as an independent politician against the traditional political formations, is now trying to reverse.
This free trade zone between Algeria and Tunisia is expected to reinforce economic integration between the two nations, as trade and economic exchanges have remained isolated and mostly limited to the activity of smuggling networks across the border strip, as reported by media outlets such as Al-Arab.
TotalEnergies: IMF debt rules hobbling Africa green energy projects (The East African)
Renewable energy investments in Africa are being hobbled by insufficient government loan guarantees, as the International Monetary Fund keeps a tight leash on country indebtedness, TotalEnergies CEO Patrick Pouyanne said on Wednesday. Pouyanne said currently electricity projects in Africa suffer from “a problem of solvency... you have a risk not to be paid”.
“So, when a renewable developer wants to develop, and it’s obvious you have huge potential, he will go and see the government and ask for guarantees,” he said. “But the African governments, they will tell you, are not able to give these guarantees because the IMF is coming and telling them, ‘Don’t go and give these guarantees, you are already over-indebted’.”
Related blog: ‘Total’ Transformation or ‘Total’ Chaos? Mozambique’s LNG Saga Continues (tralac)
Road project to link SADC countries underway (Tanzania Daily News)
Construction of a 50-kilometre strategic road that will link Southern African Development Community (SADC) countries through neighbouring Zambia is underway which will facilitate the smooth flow of goods and services in the region. Tanzania National Roads Agency (TANROADS) Rukwa Regional Manager, Ms Mgeni Mwanga said here on Tuesday that the completion of the project will help to facilitate the movement of people services and goods within the SADC countries. “The road will relieve trucks from congestion at Tunduma border posts that has been causing delays leading to increased transport costs,” he said.
She said the first phase of the project involving the construction of 25 km Matai – Tatanda road works has reached 45 per cent. She said the road is part of an important road network within the country linking Dar es Salaam, Morogoro, Iringa, Njombe, Mbeya Songwe, Rukwa and the neighbouring Zambia via Kasesya border post. Likewise, the Matai – Tatanda – Kasesya road will also link 107 kilometres of tarmac road stretching from Sumbawanga town to Kasanga port on Lake Tanganyika. Furthermore, the road will strengthen socio-economic activities including the transportation of people and goods including food and cash crops, forest products and other cargo.
The East African Community Competition Authority (the EACCA) has signed a Memorandum of Understanding (MoU) with Rwanda’s Inspectorate, Competition and Consumer Protection Agency (RICA) to strengthen cooperation between the two authorities in the advancement of competition policy and law in the East African Community. The signing took place on the sidelines of the EAC Stakeholder Merger Workshop held in Kigali on 12-13 February, 2024. The MoU will ensure that implementation of EACCA and RICA mandates and activities will foster joint efforts in addressing competition and consumer protection matters while enhancing regional integration and cross-border trade.
The MoU sets out modalities for a wide range of collaborative initiatives through which the two institutions will cooperate and coordinate their activities in regard to cross-border competition and consumer protection matters in the region. ”It is important to foster a regulatory environment that supports fair competition, innovation and the protection of consumer rights in the community”,
East African Community (EAC) Partner States have reaffirmed their commitment to enhance energy efficiency and exploit wind, solar and geothermal energy as sustainable energy sources for the region. Partner States have subsequently embarked on various initiatives in an effort to tap into the potential of renewable energy and energy conservation, such as review of national renewable energy laws, implementation of energy management regulations, national strategies and standards for energy efficiency and renewable energy, and promotion of energy efficiency and conservation.
During the Ministerial Session of the 16th Sectoral Council of Energy that was held at the EAC Headquarters in Arusha, Tanzania, Partner States reported that investments in wind and solar energy infrastructure were also underway, from Burundi’s solar mini-grids to Kenya’s wind and solar projects, all aimed at increasing renewable energy contributions to the national grid. Similarly, Rwanda and Tanzania reported increased investment in solar energy projects, while Uganda reported that she is focusing on solar energy deployment for rural electrification.
Speaking during the opening session of the Ministerial Session, the Chairperson, Hon. Shaib Hassan Kaduara, the Minister of Water, Energy and Minerals, Revolutionary Government of Zanzibar, United Republic of Tanzania, emphasised the significance of the energy sector noting its unique role in achieving socio-economic development of the Community. “Energy plays a critical role in industrial development and investment promotion, and therefore access to reliable, safe and cost-effective energy is not optional but compulsory if our region is to realise its development objectives,” said Hon. Kaduara.
Consultative Competition Committee of ERCA met in Abuja (ECOWAS)
The ECOWAS Consultative Committee on Competition (CCC) held its 8th meeting to review the draft Cooperation Agreement between ECOWAS bodies in charge of competition in the Member States and to review and validate the Terms of Reference (ToRs) of the Market Study on Digital Marketsfrom the 6th to 8th February 2024, in Abuja, Federal Republic of Nigeria.
The meeting brought together Members of the CCC and staff of ERCA to review and validate the draft Cooperation/ Grant Agreement for the collection of information and administration of the ECOWAS Competition Information System (ECIS),review and validate the Terms of Reference of the market study on digital markets as well as Elect a new Bureau for the Consultative Competition Committee, being the commencement of the mandate and the maiden meeting of the new the Committee.
ECOWAS-UNDP Technical Consultation Initiates Efforts To Develop West Africa Resilience Strategy (ECOWAS)
The ECOWAS Commission, in partnership with the United Nations Development Programme (UNDP), has launched a three-day regional workshop aimed at developing the Regional Resilience Strategy for West Africa. Held at the NAF Conference Centre in Abuja, this event represents a significant step in addressing the region’s challenges and promoting resilience and sustainable development.
Despite West Africa’s abundant natural resources, sustainable exploitation and equitable distribution of benefits to communities remain challenging. The region, contributing only 1.8% of global greenhouse gas emissions, faces increasing temperatures and extreme weather events, exacerbated by inadequate development and governance, and security-related issues.
In her opening remarks, H.E. Professor Fatou Sow Sarr, Commissioner for Human Development and Social Affairs at the ECOWAS Commission, highlighted West Africa’s vulnerability to hazards and disasters, including climate change impacts, conflict, poverty, and disease outbreaks, stressing the importance of disaster risk reduction in post-disaster recovery and development.
The President of the ECOWAS Commission sanctioned a special Mission to the Bo-Waterside-Jendema land border, where Engineers, Sector Ministries and Border Control Officials from the two neighboring Member States, Liberia and Sierra Leone, met to review and approve architectural, engineering, electro-mechanical and related technical designs for a new ultra-modern Joint Border Post to be constructed at this strategic land border crossing between the two Countries.
The new Jendema-Bo Waterside Joint Border Post is yet another major regional integration intervention being provided by the ECOWAS Commission to facilitate cross border trade and the free movement of community citizens along the Dakar-Abidjan Road Corridor. In addition to improving the border crossing environment for officials and travelers of the two neighboring Member States, this Joint Border Post complements the ongoing project to transform the transport corridor from Dakar through Banjul, Bissau, Conakry, Freetown, Monrovia to Abidjan, into a supranational economic development corridor, which will spur on development of economic activities among the corridor Countries.
How Africa can attract tech investment beyond ‘Big Four’ (The Herald)
Africa’s “big four” countries — Kenya, Egypt, South Africa, and Nigeria — continue to lead as markets that have long captured attention from global investors, securing 87 percent of all startup funding in Africa in 2023. However, there is a need for venture capitalists to redirect and explore untapped potential in other parts of Africa’s techpreunerial landscape.
Amidst the well-known challenges associated with the global macroeconomic environment such as high interest rates, currency devaluation, inflation, and layoffs, the Partech Africa Report attributed the funding contraction to two key factors. Firstly, startups adopted conservative capital raising strategies, prioritising cash efficiency over fundraising due to a significant decline in valuations and heightened economic requirements. Secondly, there was a notable withdrawal of investors from the market, with a 50 percent decrease in the number of investors participating in funding rounds in Africa in 2023 compared to the previous year. This decline was particularly pronounced among major institutional funds, which typically play a significant role in driving larger funding rounds.
There is a need to transform non-”Big Four” countries into appealing destinations for startup investments. Countries can leverage the African Continental Free Trade Area (AfCFTA) as a tool to attract investments. Through the AfCFTA, African governments, including those in non-”Big Four” countries, can draw increased start-up funding by reducing investment barriers and enhancing investment governance within their respective countries. However, before venture capitalists can venture into the space, it is essential to acknowledge that Africa is not a uniform market. African markets are unique, and the constraints also differ. Issues to do with infrastructure limitations, regulatory requirements, and socio-economic factors, therefore necessitate a tailored approach for each region. The aim is to extend investments beyond the “Big Four.”
The Digital Trade Protocol of the AfCFTA and Digitally-Driven Development in Africa (tralac)
One of the important protocols forming part of the set of agreements within the African Continental Free Trade Area (AfCFTA) is the Digital Trade Protocol (‘the Protocol’). This protocol has the very important task of defining the desired digital environment for digital trade within Africa, and by implication, also has bearing on Africa’s digital trade with respect to the rest of the world. The Protocol aims to establish harmonised rules and common principles to enable and support digital trade across Africa. It focuses on promoting intra-African digital trade, enhancing cooperation on digital matters among State Parties, and creating a transparent, secure, and trusted digital trade ecosystem.
The three most important areas in which governments and regulatory authorities can contribute to digitally-driven development and digital trade would be: Creating supportive regulatory frameworks; Enhancing internet accessibility; and Ensuring that tax and customs duties do not create perverse incentives.
High Level Forum on Inclusive Instant Payments Systems in Africa (African Union)
In a world increasingly reliant on digital connectivity, access to financial services remains a crucial determinant of economic empowerment and social development. Unfortunately, millions of Africans are excluded from the formal financial system, trapped in a cycle of poverty and limited opportunities, primarily due to limited investments in digital infrastructure especially in the rural areas. Presently, the digital transformation is expanding to almost all economic sectors altering the local job markets. Over 500 African companies provide technology-enabled innovation in financial services or fintech, with over 640 tech hubs active across the continent.
To accelerate the expansion of digital public infrastructure translating into universal access to digital financial services for all Africans, the African Union Commission has entered a strategic partnership with AfricaNenda to develop an advocacy program to support Digital Transformation Strategy for Africa (2020-2030), policy harmonization in Africa, and contribute to implementing the strategy’s roadmap with a particular focus on Inclusive Instant Payments Systems in Africa.
The partnership aims to unlock access to the formal financial system for over 400 million adults in Africa who are primarily financially excluded from the formal economy. This gap has exposed millions of people who are heavily reliant on cash or informal providers for their financial needs, which is costly, risky and leaves them vulnerable to economic instability. The partnership will enhance collaboration with governments, central banks, regional organizations, the private sector, and development institutions.
African Union (AU) Summit will discuss and make far-reaching decisions on the security situation on the continent as some of its member states continue to face security challenges. At the opening of the Executive Council of Ministers of Foreign Affairs, the resurgence of military coups, pre- and post-election violence, humanitarian crises linked to war and the effects of climate change, were highlighted as serious threats that may reverse the gains accumulated in the development agenda of the continent. The emerging cracks on regional integration will also be discussed in the two-day ministerial session on the 14th to 15th February 2024.
On advancing multilateral cooperation, H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission noted the significance of the African Union as a member of the G20 stating that “our membership at the G20, for which we have made intense advocacy, imposes on us more rationality, method and constant vigilance in the turbulent sphere of international relations of the moment.” His sentiments were echoed by H.E Taye who noted that “the African union participation in the G20 will provide us with a unique platform to contribute to global economic governance and decisions. We must therefore ensure that the voice of Africa is heard, that our participation is meaningful, and in the same vein enhance our working relationship with the BRICS to advance South-South cooperation. Ethiopia will certainly leverage it BRICS membership with other sisterly African countries to further advance, interest of our continent and strings and global governance.”
African Union Summit: A chance to transform Africa’s debt, climate and development agenda (African Business)
See also: Morocco attends 44th AU Executive Council Ordinary Session in Addis Ababa (The North Africa Post)
A look ahead at the AU Summit and Africa Business Forum (Google Africa Blog)
This year’s theme for the Africa Business Forum; “Boosting Africa’s Transformation Through Education, Science, Technology, and Innovation”, could not be more timely, as new advances in Artificial Intelligence (AI) will revolutionize how the world addresses its biggest challenges, drives economic growth, and unleashes new opportunities in African economies and around the world. Our first grantee in Africa, the African Leadership University Foundation, will explore how AI can address poverty, hunger and disease in Sub-Saharan Africa, propose AI governance frameworks that can mitigate potential risks, and study AI’s impact on social equality and economic opportunity.
Energy leaders from around the world met in Paris this week for the International Energy Agency’s 2024 Ministerial Meeting and 50th Anniversary, a two-day event that produced a strong commitment to safeguard energy security while speeding up clean energy transitions to keep the goal of limiting global warming to 1.5 °C within reach.
The major gathering of high-level energy decision makers took place just a few months after the COP28 Climate Change Conference in Dubai, where nearly 200 governments reached a key agreement on energy and climate issues. This included the new 2030 global goals – aligned with the Paris Agreement target of limiting global warming to 1.5 °C – of transitioning away from fossil fuels, tripling renewable energy capacity, doubling energy efficiency progress and reducing methane emissions.
In the joint communique, IEA ministers recognised the significant focus on energy in the outcomes of COP28 and directed the IEA to take a leading role in ensuring their implementation. Ministers noted the continued importance of oil supply security to the global economy, and emphasised the key role played by the IEA’s oil stockholding system. They also directed the IEA to develop a framework to advance the objectives that have been laid out for a voluntary IEA Critical Minerals Security Programme, which would look to boost the security of the supply chains for the crucial minerals needed for clean energy technologies.
Read: 2024 IEA Ministerial Communique
DG Okonjo-Iweala on MC13: “We are going to get it done” (WTO)
Speaking at a special meeting of the WTO’s General Council on 14 February, WTO Director-General Ngozi Okonjo-Iweala acknowledged the challenges members face in securing a package of outcomes for the organization’s upcoming 13th Ministerial Conference (MC13) in Abu Dhabi but said she was confident members would be able to deliver.
She noted that she intends to work with delegations in the following days to address some issues that remain outstanding, in order to circulate a “clean” draft Declaration on 16 February for members’ consideration. The General Council Chairperson, Ambassador Athaliah Lesiba Molokomme of Botswana, briefed members on the state of play regarding the drafting of an MC13 Ministerial Declaration.
DDG Ellard stresses importance of securing substantive outcomes at MC13 (WTO)
Deputy Director-General Angela Ellard on 12 February outlined priorities for the WTO’s 13th Ministerial Conference (MC13) at the 2024 Washington International Trade Conference, organized by the Washington International Trade Association (WITA). In particular, she stressed the importance of securing the entry into force of the Agreement on Fisheries Subsidies and concluding the second wave of fish subsidy negotiations, securing progress on dispute settlement reform, and taking a decision on extending the existing e-commerce moratorium.
She noted that MC13 priorities include entry into force of the Agreement on Fisheries Subsidies and completing the second wave of negotiations; progress on dispute settlement reform; a decision on the extension of the e-commerce moratorium; agriculture negotiations; development-related issues; and deciding how to integrate outcomes of the joint initiatives into the WTO rulebook. A successful MC13 would achieve outcomes or make substantive progress on as many issues as possible, she added.
More WTO-related news
Barbados, Dominica, Senegal, Uruguay formally accept Agreement on Fisheries Subsidies (WTO)
New edition of “WTO Ministerial Conferences: Key Outcomes” publication now available (WTO)
TRIPS Council finalizes preparations for MC13 (WTO)
WTO’s E-commerce Moratorium: Will India Betray the Interests of the Global South Again? (The Wire)
Related News
tralac Daily News
Upcoming events: 37th African Union Summit
Theme of the year: “Africa fit for the 21st century: building resilient education systems for increased access to inclusive, qualitative, lifelong and relevant learning for Africa.”
14-15 February 2024: 44th Ordinary Session of the Executive Council (Ministers of Foreign Affairs)
17-18 February 2024: 37th Ordinary Session of the AU Assembly (Heads of State and Government)
Transnet steps up efforts to curb shipping delays (SAnews)
The first batch of four hydraulic mooring units procured by Transnet National Ports Authority (TNPA) to improve operations and reduce shipping delays at ports have been delivered and operationalised at the Ports of Cape Town and Ngqura. The batch is part of the 52 units procured by the authority.
TNPA General Manager for Infrastructure, Thecla Mneney, said: “This marks the first of a series of major port equipment deliveries at our commercial seaports this year. We continue to make progress in fast-tracking the implementation of key investments in port infrastructure to improve operational efficiencies and provide quality service to the maritime industry”.
“A hydraulic tension mooring unit is a system that is placed on the quayside to ensure the safety of vessels alongside and mitigate the severity of long-wave effects on vessels. The units assist with stabilising vessels alongside during strong winds, adverse weather conditions and high swells. The benefits also include minimized down-time and safety during operations.
Association concerned about assumptions in commission’s poultry market inquiry (Engineering News)
Industry organisation the South African Poultry Association (SAPA) has expressed concern about some of the statements and assumptions in the Competition Commission’s announcement of a market inquiry into the poultry industry value chain. The commission on February 9 announced the market inquiry, saying it has reason to believe there are features in the poultry market that may impede, distort or restrict competition.
SAPA says the poultry industry is “extremely concerned” at the commission’s statement that there are “ongoing demands for bailouts through ever-increasing tariffs and the imposition of anti-dumping duties”. The association states that the domestic poultry industry has never asked for “bailouts”, saying the International Trade Administration Commission of South Africa (Itac) and the Department of Trade, Industry and Competition are aware of that. “The use of this term indicates a hostility that we find disturbing. What the industry has asked for is protection against unfair and dumped imports. Itac investigations have repeatedly found that these imports are harming the industry and costing local jobs,” SAPA says.
Durban’s Dube TradePort air cargo terminal sees demand spike because of harbour issues (Engineering News)
Air freight through the Dube TradePort cargo terminal, at King Shaka International Airport, at Durban, spiked sharply during the last quarter of last year, in quarter-on-quarter terms. This quarter-on-quarter increase was 57%, driven by issues at Durban harbour. “This significant increase in airfreight has been observed across various industries, from perishables to automotive, the latter being traditionally reliant on ocean freight,” reported Dube Cargo Terminal senior manager: cargo development and operations Ricardo Isaac. “This emphasises the need of these industries to ensure uninterrupted production and timely delivery to export markets.”
This data showed that, for industries using or producing time-sensitive commodities, an efficient air cargo alternative was invaluable. The existence of the Dube TradePort had become an important part of their supply chains. Freight through the terminal increased both during the 2022/23 and 2023/24 financial years. Data from January indicated that the spike in demand was continuing.
The World Customs Organization (WCO) delivered a mission to the benefit of the Nigeria Customs Service (NCS) to enhance Post-Clearance Audit (PCA). The WCO PCA Diagnostic mission took place from 29 January to 2 February 2024 in Abuja, Nigeria. In the opening ceremony, the NCS Comptroller-General, Mr. Bashir Adewale Adeniyi, shared insights into the NCS’s recent trade facilitation efforts, focusing on robust risk management strategies and the development of PCA functions, especially in conjunction with the NCS’s ambitions to launch an Authorized Economic Operator Programme in the near future.
Emphasizing the importance of trade facilitation measures, he expressed their role in fostering economic development opportunities, job creation, and poverty alleviation. Moreover, the Comptroller-General outlined the importance of trade facilitation, particularly in the context of the African Continental Free Trade Area Agreement (AfCFTA) and Nigeria’s strategic position in the global trade framework. He extended his gratitude to the WCO and commended the dedication, expertise and collaborative efforts with the IMF and World Bank experts.
FG Targets Increased Trade Volume with NTFC (This Day)
The federal government through the Ministry of Industry, Trade and Investment, has announced plans to revitalise the National Trade Facilitation Committee (NTFC) in its bid to increase Nigeria’s trade volume. The Minister of Industry, Trade and Investment, Mrs. Doris Uzoka-Anite, explained that the Committee would comprise of the Nigerian Customs Service (NCS) alongside Ministries Department and Agencies (MDAs) and the private sector. She stated this at the launch of the World Customs Organisation (WCO) assisted Time Release Study (TRS) scoping mission for Nigeria in Lagos. According to her, effective trade facilitation requires efficient coordination across the entire supply chain, maintaining that the country currently has 12 Domestic Export Warehouses (DEWs) and one aggregation centre established to reduce the time it takes to ship their goods for export.
Int’l partners’ funding for Egypt reaches $10.3B over 4 years (EgyptToday)
International partners provided Egypt around $10.3 billion in funding over the past four years from 2020 to 2023, according to the Minister of International Cooperation, Rania Al-Mashat. Al-Mashat noted that this funding includes both developmental aid and investments in the private sector, along with technical support. The minister pointed out on Tuesday that despite this, there are challenges hindering some companies from recognizing the services provided by development partners to the private sector.
In her video speech, the Minister of International Cooperation added that, in line with the recommendations of the Egypt Economic Conference 2022, the Ministry of International Cooperation launched the “Hafiz” platform for financial and technical support to the private sector. It is the first integrated platform connecting financial and non-financial services provided by multi-stakeholder development partners to support local and foreign private sectors in Egypt.
She mentioned that digitization, innovation, and entrepreneurship are among the top priorities of the Ministry of International Cooperation, with a current portfolio of 36 projects worth about $1 billion contributing to the implementation of 12 Sustainable Development Goals. She highlighted that regional focus on supporting entrepreneurship and startups can enhance South-South cooperation between countries.
Gas users call for urgent policy and infrastructure decisions to avert 2026 ‘day zero’ (Engineering News)
The Industrial Gas Users Association – Southern Africa (IGUA-SA) is warning of a gas supply ‘day zero’ for several large and small manufacturing enterprises and says that urgent decisions will be required within the coming four months if South Africa is to avoid a looming “gas cliff” within the coming 30 months. IGUA-SA executive officer Jaco Human said the looming shortfall had arisen on the back of Sasol’s announcement last year that it will be halting supply to downstream consumers from 2026. This, partly because it had failed to find sufficient reserves to replace an anticipated tapering of supply from southern Mozambique and partly because Sasol plans to use the remaining gas to displace coal at its own operations to support its decarbonisation.
Human suggested the most realistic supply option to be the importation and re-gasification of liquefied natural gas (LNG) at a new terminal, which is proposed for development at the Matola harbour in Maputo, Mozambique, given its relatively advanced state of development when compared with a proposed terminal at the Port of Richards Bay, in KwaZulu-Natal. However, there were still significant timing risks, with a final investment decision on the $350-million terminal dependent on several offtaker and related infrastructure developments, including a tie-in to the existing Rompco pipeline, a connection between the Rompco and Lilly pipelines, as well as a GtP anchor offtaker.
EAC, ECOWAS seek enhanced cooperation (Tanzania Daily News)
The East African Community (EAC) and the Economic Community of West African States (ECOWAS) members have met in Abuja, Nigeria for the purpose of enhancing cooperation among them. This was revealed here in Arusha in the statement released recently to the media by the Senior Public Relations Officer, Corporate Communications and Public Affairs of EAC, Mr Simon Owaka,
According to the statement, a high-level delegation of the EAC led by the Deputy Secretary General in charge of the Infrastructure, Productive, Social and Political Sectors, Andrea Malueth visited the ECOWAS Commission Headquarters in Abuja, Nigeria recently on a benchmarking mission to enhance integration with EAC bloc.
It was disclosed that during their conversation, Dr Touray highlighted the importance of collaborations among the Regional Economic Communities (RECs) and it was high time the two parties learn from each other. On his side, among other things, Mr Malueth emphasised the importance of EAC learning from the experiences of ECOWAS in their journey to effectively promote trade and integration. “We believe that EAC and ECOWAS can learn from each other and jointly promote regional integration in Africa,” said Malueth.
EAC set to promote trade, investment (Tanzania Daily News)
The Members of the East African Community (EAC) have agreed to strengthen their cooperation in trade and investment to promote trade and strengthen competition in the world market. Speaking to journalists over the weekend immediately after participating in the Meeting of the Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) in Arusha, the Deputy Minister of Industry and Trade, Mr Exaud Kigahe said they also agreed to cooperate with other communities.
“Apart from cooperation, member countries have agreed to help the private sector grow by removing trade barriers including tax and non-tax barriers as well as improving infrastructure in border areas to strengthen the sector which has an important role in the development of the EAC economy,” said Mr Kigahe.
16th Sectoral Council on Energy currently underway in Arusha (EAC)
The 16th Meeting of the Sectoral Council of Ministers on Energy is currently underway at the EAC Headquarters in Arusha, Tanzania. The three-day Sectoral Council meeting started with the Session of Senior Officials on 12th February, 2014. The Session of the Coordination Committee that brings together Permanent/Principal/Under Secretaries planned for 13th February, 2024 while the Cabinet Secretaries/Ministers’ session will be held on Wednesday 14th February, 2024.
Among the items on the agenda of the meeting are the considerations of the: Implementation status of various decision of the Sectoral Council on Energy, progress made in the development of the EAC Energy Efficiency Policy, review the status of power supply and demand in the region and the progress in the implementation of Power Interconnection Projects in the region.
On 7th of February 2024, fisheries and regulatory officials from the Southern African Development Community (SADC) Member States, accompanied by representatives of private entities in the fish value chain from Malawi and Zambia, visited the Mchinji/Mwami One Stop Border Post (OSBP) in Malawi. The purpose of the visit was to gain a comprehensive understanding of the OSBP’s operations in clearing fish and fishery products, as well as to identify obstacles that may hinder the efficient clearance process.
The Mchinji OSBP, located 120km from the capital city of Malawi, Lilongwe which is in the Central Region of Malawi, has recently standardised its operations and established synergies with Mwami OSBP on the Zambian side. Both these borders resumed OSBP functions in November 2023 after being officially opened by the Presidents of Malawi and Zambia. The automation of systems and the synergies at these borders have significantly reduced the real-time clearance of the movement of people and goods, particularly perishable foods such as fish and fishery products.
Dr. Alexander Kefi, the SADC Project Coordinator for the Programme for Improving Fisheries Governance and Blue Economy Trade Corridors (PROFISHBLUE Project), a project funded by both the African Development Bank (AfDB) and SADC, emphasised the importance of achieving the expected deliverables and noted that thus so far, a total of 13 standards have been harmonised at the regional level.
Three’s a Crisis: Burkina Faso, Niger, and Mali announce that they will leave ECOWAS (tralac)
On 8 February, the foreign ministers of the Economic Community of West African States (ECOWAS) convened to address the potential loss of three member states. At the end of January Niger, Mali and Burkina Faso announced that they would be withdrawing from the regional economic community (REC). While ECOWAS does not yet recognise the departure of these states – to legally withdraw, they would have had to give one year’s notice – the three military-run states have chosen to ignore this requirement and announce their withdrawal anyway. In place of ECOWAS, they have formed an “Alliance of Sahel States” (AES), a military alliance.
One immediate concern for trade is what this will mean for the AfCFTA. ECOWAS has made an offer of tariff concessions, with 90% of tariff lines to become duty free, and it is unclear if the trio’s departure would impact that offer, or if each would submit a new offer. All three states (Niger, Burkina Faso and Mali) are members of the West African Economic and Monetary Union (WAEMU or UEMOA in French) who use the Central African Franc (CAF), pegged to the Euro. WAEMU member states implement a common external tariff, which shares 4 tariff bands with the ECOWAS CET, but does not include the 5th band (35%) that is implemented by ECOWAS on 130 tariff lines. WAEMU also provides for the free movement of persons across borders. However, some relationships will be severed as not all members of ECOWAS are members of WAEMU (notably, Nigeria and Ghana).
ECOWAS chair Tinubu to meet Senegal’s Sall over postponed elections (Al JAzeera)
Nigerian President Bola Tinubu is set to meet his Senegalese counterpart, Macky Sall on Monday in the capital Dakar as a constitutional crisis continues there over postponement of elections initially scheduled for this month. Tinubu, who is also chair of the Economic Community of West African States (ECOWAS), is visiting days after the bloc’s foreign ministers held emergency talks to discuss Senegal, in Nigeria’s capital Abuja. Sall’s decision to push back the February 25 presidential vote has plunged Senegal into one of its worst crises since independence from France in 1960.
ECOWAS has urged Senegal – one of its most stable member states – to return to its election timetable, but critics have already questioned the group’s sway over increasingly defiant member states. The foreign ministers met in Abuja on Thursday, without representatives of the military-led trio – Niger, Burkina Faso, and Mali – which announced withdrawal from the bloc in January. Guinea, also suspended from the bloc for a coup, was also not in attendance.
AfCFTA pledge to eliminate trade barrier within Africa (The Guardian Nigeria)
African Continental Free Trade Agreement (AfCFTA) has reiterated its commitment to eliminate trade barriers within Africa. This was at the recently concluded 13th meeting of AfCFTA Council of Ministers responsible for Trade in Durban, South Africa, which provided participants with a crucial opportunity to negotiate and consider further measures to strengthen the implementation of AfCFTA.
Honourable Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, negotiated Nigeria’s unique position on several crucial matters bordering on digital trade, safeguarding against illegal transshipment under the AfCFTA, and tariff lines in specific sectors of the economy. The Honourable Minister, in strategically protecting Nigeria’s interest, highlighted the need for governments of member states and the secretariat to ensure that the collective interests of the continent is taken into account in adopting a targeted, pragmatic approach towards achieving the objectives of the AfCFTA Agreement.
AfCFTA: Critical issues of infrastructure must be addressed — Rwanda High Commission (Vanguard)
To further promote intra-Africa economic integration, boost African Continental Free Trade Area, AfCFTA, the Rwanda High Commission to Nigeria, Christophe Bazivamo said that unlocking the full potential of AfCFTA requires more than just eliminating tariffs, but critical issues of infrastructure must be addressed. Speaking at a media briefing, Bazivamo added that beyond the removal of trade barriers and development of infrastructures, to truly unlock the AfCFTA potential, local industries must be nurtured to transform Africa from a resource exporter to a manufacturing powerhouse.
Bazivamo said: “Let us nurture our entrepreneurs, empower our skilled workforce especially our youth, and invest in technology that elevates our products to global standards. We must amplify our voices on the global stage participating in trade fairs and exhibitions like Ecofair, it is crucial. We must invest in modern roads, efficient railways, and revitalized ports, stitching our continent together in a seamless web of connectivity. Only then can trade thrive, delivering goods swiftly and cost-effectively across vast distances”, he said.
Related: Research-driven PPPs will catapult our fortunes under AfCFTA (The Business & Financial Times)
Action Against Hunger Calls on African Union Summit to Prioritize Conflict Resolution and Gender Equality (Action Against Hunger)
Action Against Hunger, a global leader in finding sustainable solutions to world hunger, is calling on African Heads of States and Governments to prioritize regional conflict resolution and gender equality at the Feb. 18th AU Summit. The AU Heads of State Assembly, Africa’s supreme policy and decision-making body that determines AU policies, programs, and priorities, will meet for the 37th Ordinary Session under the theme, ‘Transforming Education in Africa; A Gender Perspective.’
This year’s Summit occurs against a backdrop of growing challenges throughout the continent, including droughts and floods fueled by climate change, increasing food insecurity, widespread conflict, and a rise in gender-based violence. Action Against Hunger urges leaders to take action, especially as food prices spike following the aftermath of global events including the war in Ukraine, the Rea Sea crisis, and the conflict in Gaza.
TDB and the World Bank to Accelerate Access to Sustainable and Clean Energy in Africa (World Bank)
The World Bank has extended a facility of close to $300 million to the Eastern and Southern African Trade and Development Bank (TDB), to support distributed renewable energy (DRE) and clean cooking private sector projects in eligible countries of the World Bank’s International Development Association (IDA) that are TDB member states. This new facility follows TDB’s successful financing of innovative off-grid solar projects in the region it serves which were financed under a groundbreaking $415 million World Bank Regional Infrastructure Financing Facility (RIFF) facility that was extended to TDB in 2020.
It is part of a first wave of phases of IDA’s $5 billion Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) program, which is expected to provide access to electricity to up to 100 million people in Africa over the next seven years and contribute to achieving SDG 7.
Africa will ‘friend-zone’ Canada if Ottawa doesn’t improve engagement: experts (Montreal Gazette)
Canada is approaching total irrelevance in the world’s fastest-growing continent, experts argue, saying that a pattern of disengagement in trade, diplomacy and investment in Africa means Ottawa is ceding ground to Russia and China. “Africa is going to friend-zone Canada if the current approach remains, because it’s lukewarm,” said Stanley Achonu, the Nigeria director for the One Campaign.
In recent years, senators have warned Canada is falling behind its peers, as well as emerging states, in setting strategies for trade and development with a continent of more than one billion people. They note that Africa makes up the majority of the world’s potential for solar panels, and has huge reserves of critical minerals and carbon-reducing ecosystems. The World Bank says a looming continental free-trade deal could lift 30 million people out of extreme poverty and inject US$3.4 trillion into African economies. But to get there, Africa needs better governance, huge infrastructure projects and debt restructuring, according to Christopher MacLennan, Canada’s top bureaucrat overseeing foreign aid.
UN deputy chief calls for ‘courage, vision and solidarity’ to boost middle-income nations (UN News)
Speaking at a conference on addressing development challenges of middle-income countries (MICs), in Rabat, Morocco, Amina Mohammed said recent crises have laid bare inequalities and exposed stark contrasts. “While developed countries have been able to protect and swiftly support their populations, other countries have been left dependent on the international community and the existing global support systems.” She said existing frameworks fall short in meeting the complex needs of developing nations.
MICs are a large and diverse group of over 100 countries. According to the World Bank, their per capita incomes vary from $1,000 to $12,000.Perhaps counter-intuitively due to the different classification metrics in use, the list includes 20 least developed countries (LDCs), 19 landlocked developing countries (LLDCs) and 29 small island developing States (SIDS).As a group, they account for nearly one third of global gross domestic product (GDP) and serve as major engines of growth. They are home to around three quarters of the world’s population. However, their vulnerabilities persist regardless of income level, with 62 per cent of the world’s poor residing in MICs.
Quick links
U.S. Cuts African Trade Benefits, Hurting the Poor (InDepthNews)
Devise strategy for extension of post-LDC benefits (The Daily Star)
Double taxation treaties and their implications for investment (UNCTAD)
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tralac Daily News
It’s time for Africa! (SAnews)
The official launch of South Africa’s first shipment and preferential trading under the African Continental Free Trade Agreement (AfCFTA) on 31 January 2024, at the Port of Durban goes beyond a feather in the cap for trade and economic growth. It signals the unyielding African spirit which has prevailed against the injustices that plagued our continent, including colonialism and apartheid.
Together we can harness our collective energies and resources ensure to take our continent closer to the ultimate vision of being free of poverty and conflict. The AU’s flagship project of Agenda 2063, is a roadmap to our development over the next 50 years. This project prioritises African goals, including; equality, intra-regional trade, infrastructure and technology development. The African Continental Free Trade Area is in line with Agenda 2063, which is aimed at deepening African economic integration. Strong partnerships among African nations for inclusive socio-economic development is key to advancing the African Agenda. The African Continental Free Trade Area (AFCFTA) also presents opportunities for massive financial growth in Africa.
A thriving African economy requires developed infrastructure to facilitate trade globally. South Africa is working to improve its rail and port efficiencies to drive economic growth and enable further economic opportunities across the continent.
IRP deadline extension an opportunity for more renewables ambition in line with SoNA vision (Engineering News)
The recent extension of the deadline for responses to the draft Integrated Resource Plan 2023 (IRP 2023) presents an opportunity to incorporate the vision presented by President Cyril Ramaphosa in his State of the Nation Address (SoNA) for more renewable energy, the South African Wind Energy Association (SAWEA) asserts. Minerals Resources and Energy Minister Gwede Mantashe announced a month-long extension to the public comment period to March 23 in a recent speech to the Mining Indaba but without committing to public hearings.
There is significant concern about the technology cost assumptions used by the drafters of the document, as well as the material increase in the allocation for gas-to-power for the short-term horizon to 2030 and the substantial decrease in the allocation for wind over the same period.
Draft work visa regulations a boon for attracting skills (SAnews)
South Africa’s new draft work visa regulations are a milestone for the country’s efforts to attract investment and promote job creation. This is according to President Cyril Ramaphosa who addressed the nation through his weekly newsletter on Monday. Last week, the Department of Home Affairs released the draft second amendment of the Immigration Regulations for public comment. The draft regulations deal with remote work and critical skills visas.
“The publication of the new draft regulations are part of our ongoing drive to reform the country’s visa system, making it easier to attract the skills our economy’s needs and promoting innovation and entrepreneurship. An efficient, agile, responsive visa regime is key to attracting business investment and boosting economic growth.
Malawi Announces Visa-Free Entry for Visitors From 79 Nations (VisaGuide.News)
Malawi has recently announced a significant step towards boosting tourism and trade within its borders by lifting visa restrictions for travelers coming from 79 different countries. In this regard, President Lazarus Chakwera revealed the decision aims to facilitate entry for visitors, specifically from countries such as the United Kingdom, China, Russia, Germany, Australia, Canada, France, members of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (Comesa), VisaGuide.World reports.
Following Malawi’s new visa regulations, multiple entry visas now grant travelers up to 12 months of validity. However, this exemption doesn’t extend to countries that impose visa requirements on Malawian citizens. In addition, certain privileged groups such as diplomats, government officials, and countries with mutual exchange agreements for multiple-entry visas with Malawi are also exempt from these regulations.
Historically, Malawi’s stringent visa requirements have been a significant barrier to realizing its potential for tourist inflows. With its new visa policies, it joins the growing list of countries making travel more accessible for international visitors. In addition to Malawi, last month, Ghana announced plans to implement a policy allowing visa-free entry for all African visitors by the end of 2024. While 48 African countries offer visa-free travel to citizens of at least one other African nation, only five out of 52 African countries allow complete visa-free entry. Seychelles, Gambia, Kenya, Rwanda, and Benin are the only countries every African can visit without a visa.
Moreover, in November 2023, Rwanda also extended visa-free entry to all African nationals, positioning itself as the latest African nation to adopt such a policy to promote free movement and trade across the continent.
Dar port managers woo Ugandan businesses (The East African)
Cargo figures in the Dar es Salaam port to most of its hinterland markets has grown in recent years, but Tanzanian ports chiefs are uneasy about the share of transit traffic destined to Uganda, which has stagnated at two percent, despite the port’s multimillion-dollar investment to compete with Kenya’s Mombasa. According to the Private Sector Foundation Uganda (PSFU), Mombasa still accounts for 80 percent of Uganda’s cargo, as the Central Corridor continues to grapple with infrastructure challenges, high transport costs and slower clearance at the port.
Under the $421 million Dar es Salaam Maritime Gateway Project (DMGP) – implemented since 2017 – Tanzania Ports Authority (TPA) invested to upgrade the facility, to widen and deepen the port’s berths and entrance channels to enable post-panamax size vessels to call at the port.
The authority also invested in a new roll-on, roll-off vessel terminal, among many other service facilities all meant to enhance the port’s overall performance, leading to container traffic to grow at an average rate of 12 percent per annum, and transit traffic at an average rate of 23.5 percent per annum since 2020.These growth numbers saw the World Bank last year rank the Dar port above its main regional competitor, Mombasa, in port efficiency ranking.
‘Africa stands as one of the biggest source markets for trade, business, and tourism’ (The Guardian Nigeria)
The Chief Executive Officer of Kenya Tourism Board (KTB), Ag John Chirchir has said that the West African market is integral in the strategy to diversify tourist source markets and broaden the country’s destination portfolio. According to Chirchir during a meeting held to mark the beginning of a series of roadshows in Nigerian and Ghanian cities, recently, “with around 1.4 billion people, Africa stands as one of the biggest source markets for trade, business, and tourism. This is why Kenya is targeting to raise tourist arrivals from West Africa by pitching for business and leisure travel that are key interests to the region.”
Chirchir noted that Nigeria and Ghana have shown improvements of 6 per cent and 48 per cent respectively in 2023 and rank among Kenya’s potential markets in the African continent. “KTB and Kenya airways are leading over 15 travel trade companies for in-market activations set for February 5th-9th, 2024 and will be held in various cities of the two countries and is expected to attract over 400 trade partners.
Cautious on debt, Ruto woos Japan with public-private deals for projects (The East African)
Kenya has turned to Japan to support its infrastructure ambitions, opening up for Tokyo to tap into public-private partnerships (PPPs) as a way of reducing the load of debt owed to external lenders. This week, President William Ruto made an official visit to Japan, which State House inaccurately labelled a state visit and confirmed that PPPs would be central to the discussions.
Some governments adopt PPPs to avoid debt by inviting investors to fund projects and then recoup their money by charging users of the facility before handing it over to the government. One such PPP is the Nairobi Expressway built by the Chinese. The model usually works well where the demand to use the facility is high. After a series of talks, President Ruto said his administration was upending financing arrangements for mutual benefit.
Tanzania’s major breakthrough in helium (African Mining Market)
As the government amplifies its commitment on carrying out geological survey on critical minerals’ presence in the country, the Helium One Global licensed for exploration has discovered 4.7% of helium concentrations at Rukwa Rift Basin. The Helium One Global on Monday this week in its breakthrough statement described the high concentrations as a big milestone toward achieving commerciality at the earliest opportunity.
“When performing the Basement Drilling Stem Testing (DST), high concentrations of helium began to flow to the surface, following reverse circulation and yielding a compositional mix up to 4.7% helium, 1.5% argon, 8% oxygen and 86% nitrogen” read the statement from the company. Adding “a measured helium concentration of 4.7% equates to almost nine thousand times above background levels.” According to the statement, the company has identified that the frequency of helium increases with depth and is preferentially carried in hot fluids.
Africa’s biggest oil and gas finds are doing little for economies at home (Engineering News)
The last thing Senegal needed in its long-drawn-out effort to capitalize on large oil and gas finds off its coast was political turmoil. Africa’s newest natural gas superstar had bubbled with optimism when BP, Woodside Energy Group and Kosmos Energy agreed to develop the fields off the shores of the West African country a few years ago. The finds were touted as a game changer in a country where villages are still not connected to the power grid and more than a third of the inhabitants live in poverty.
“General electrification for the entire population will become a reality,” Sokhna Ba, the youngest member of Senegal’s parliament, said in an interview in the capital Dakar late last year. “The revenue could also be used to improve the living conditions of the population.” But a string of delays in BP’s $4.8-billion Grand Tortue Ahmeyim, or GTA, gas project, with the latest coming just last month, has meant it won’t happen soon, prompting the country to say it may miss the International Monetary Fund’s economic growth forecast in 2024. Now, matters have been made worse by a bid to delay elections that extends President Macky Sall’s term by almost a year, throwing the country that is among the most stable democracies in West Africa into crisis and raising the cost of funds needed for its energy aspirations.
Ivorian company receives Africa50 investment (ALB)
The Africa-focused private equity platform has taken a stake in a border-control solutions provider active in the WAEMU region. Africa-focused investment bank Africa50 has made an equity investment into Ivorian company Scanning Systems. International law firm Orrick Herrington & Sutcliffe served as legal counsel to Africa50 on the deal which was announced on 18 January, and for which financial terms were not disclosed.
Abidjan-headquartered Scanning Systems was established in 2008, and is a subsidiary of holding company Tassec Investment Holdings Africa. It focuses on the provision of technology-led infrastructure solutions to facilitate border control. It is involved in the construction and operation of one-stop joint border posts (JBPs) in a number of jurisdictions within the West African Economic and Monetary Union (WAEMU) area, including administering the Cinkansé JBP bordering Burkina Faso and Togo for a decade.
Research group warns maritime operators against 2024 uncertainty (The Guardian Nigeria)
The Maritime Researchers and Authors Association of Nigeria (MARASSON) has warned that the year holds a bleak future for the maritime industry, especially as 2023 witnessed poor import and export. The research group stated that Nigeria is gradually sinking as the current economic challenges demand a total liberalisation of trade.
The National Secretary, MARASSON, Ajanonwu Vincent said the deliberate war on trade by the previous Customs administration is still affecting the psyche of the international traders as many of them have gone out of business in the country. Vincent noted that the current administration’s penchant for higher revenue collection without looking at the effects on the masses has consequences for importers and exporters.
He pointed out that the continuous hike in tariff bands and some customs comptrollers’ zeal to exceed their targets were discouraging trade, adding that the Customs Service has abandoned trade facilitation for revenue mobilisation.
APMT, Customs explore investment in scanners (The Guardian Nigeria)
Terminal Manager, APM Terminals Apapa, Steen Knudsen, has said the terminal is in talks with the Nigeria Customs Service (NCS) to invest in more scanners for optimal cargo delivery to consignees. He expressed optimism that cargo delivery to consignees would be faster with the deployment of more scanners to the ports to boost efficiency.
Knudsen stated this to the Executive Secretary of the Nigerian Shippers’ Council (NSC), Akutah Pius Ukeyima and a delegation of the Association of Nigerian Licensed Customs Agents (ANLCA), led by the National President, Nwokeji Emenike, during a working visit to the terminal. He said the terminal has made substantial investments in digital technology and cargo handling equipment to ensure prompt service delivery to customers.
IMF Executive Board Concludes Post Financing Assessment with Nigeria (IMF)
Niger reiterates ban on flights from Nigeria (Business Insider Africa)
In a Notice to Airmen (NOTAM) issued by Niger Republic, the airspace authority stated that the country’s airspace “is opened to all national and international commercial flights from ground to unlimited except for Nigerian flights to or from Nigeria.”
“This restriction doesn’t affect commercial flights that fly over Nigerien airspace without landing there. However, it is recalled that ADB-B (Automatic Dependent Surveillance–Broadcast) or Radar transponders (for surveillance and communication) must remain on for any flight taking place in the Niger Republic airspace,”
“On the other hand, the Niger Republic Airspace remains closed for all military, operational and other special flights. These military or special flights are only permitted subject to prior authorization from the competent authorities. This circular, which only concerns Niger and Nigeria does not repeal no NOTAM in force,” the circular stated.
Lobito corridor: Hoping to break China’s grip on African ore (DW)
In the Congolese border town of Kasumbalesa, you will see one delivery truck after another, in a long queue of more than ten kilometers. Their trailers are covered with tarpaulins to protect the precious cargo: heavy copper plates and bags filled with cobalt. Trucker Tito Mandela has turned of the engine of his Mercedes truck and waits in his driver’s cabin for literally anything to happen.
In October 2023, the United States and the European Union passed a declaration to support efforts to revive and strengthen the Lobito corridor, especially by assisting with finding investors for the project, which according to US government officials will cost more than $1 billion (€1 billion). For Washington and Brussels, linking the Copper Belt with the Atlantic Ocean is, however, also a geopolitical move in their race against Beijing. China currently dominates the market for the strategic supply chains for the energy transition.
In addition to these shorter distances, the fact that the Lobito corridor is a rail link also helps drum up excitement for the project: Hauling cargo on rails is far more climate-friendly. And there is yet another upside: Not a single tree has been felled for the new railway line, as the trains are set to run on a historic artery that is already in place, but needs a major revamp.
African coffee-producing countries urged to add value to coffee export (Xinhua)
While specialty coffee from Africa is gaining popularity among consumers across the world, officials of the African Fine Coffees Association (AFCA) have urged African coffee traders to boost value-added coffee export, and cease export of unprocessed coffee to the international market. The remark came during the 20th African Fine Coffees Conference and Exhibition and the First African Coffee Week that took place from Feb. 6 to 10 in Addis Ababa, the capital of Ethiopia, with the aim of advocating the export of value-added coffee from Africa.
Amir Hamza, chairperson of the AFCA, said coffee-exporting African countries need to concentrate on value addition and apply better marketing strategies to boost their earnings from the coffee export. “The biggest problem Africa is facing is poor marketing approaches and export of unprocessed coffee, something the AFCA is trying to solve. Africa has the best coffees, but they are not marketed as they should be,” Hamza told Xinhua in an interview.
Somalia close to formalise EAC membership (The East African)
Somalia has moved a step closer to ratifying its admission to the East African Community (EAC), paving the way for local legislative authorities to formalise laws that will make it enjoy the benefits of membership. Somalia was admitted to the regional bloc in December, making it the eighth member state. The others are Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo.
Abdullahi Bidhan, a member of the parliamentary sub-committee for foreign relations said “This endorsement of Somalia joining the EAC is historic, benefitting our people and the rest of the community in many ways.” “It will stimulate economic growth,” he added. Somalia has until June to deposit the ratified instruments of the Treaty of accession at the EAC headquarters to become an official full-fledged member.
EAC embarks on use of Mobile App to eliminate NTBs (EAC)
The East African Community Secretariat and Partner States have been directed to operationalise the EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application including sensitisation by 30th April, 2024. Making the directive, the Ministerial Session of the 43rd EAC Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) that was held at the EAC Headquarters in Arusha, Tanzania further commended Trademark Africa for supporting the development of the EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application.
The EAC Elimination of NTBs Mobile Application was developed to ease the reporting, monitoring and elimination of NTBs in the Community. The EAC Elimination of Non-Tariff Barriers (NTBs) Mobile Application was finalised and piloted during the National Monitoring Committee (NMCs) meetings in March 2023. The EAC NTBs App allows the users to report the complaints in one of the three (3) EAC official languages, i.e., English, Swahili and French. The mobile app can be downloaded from the Apple Store, Google’s Play Store, and other Android devices, and can be accessed through www.eac-mobile.portal.africa
EAC experts adopt strategies to boost the region’s agricultural, pharmaceutical and leather sectors (EAC)
East African Community (EAC) regional experts in the agricultural, pharmaceutical, and leather sectors convened in Nairobi, Kenya, to review the progress achieved within their respective industries and to formulate recommendations aimed at enhancing growth and scaling up regional trade. The two-day workshop dubbed ‘Regional Focal Persons Workshop to Monitor the Implementation of the EAC Fruits & Vegetables; Leather & Leather Products; and Pharmaceutical Sectors Strategies and Action Plans’ comprised of experts from EAC Partner States, the EAC Secretariat, East African Business Council and representatives from GIZ/GFA.
In the fruits and vegetables sector, the experts emphasised the importance of harmonizing agricultural and food safety standards within the region. They highlighted the need to support the development and adoption of a code of conduct for farmers and exporters, aiming to strengthen self-monitoring frameworks. Additionally, the experts stressed the significance of prioritising the development and improvement of quality planting seeds and seedlings.
On the pharmaceuticals front, the experts noted significant ongoing projects, singling out the developments in Kenya where two Biovax vaccine manufacturing plans are being set up while in Rwanda, with a BioNTech Vaccines manufacturing plant is set to go to production by end of 2024. They underscored the urgent need for Partner States to expedite and streamline approval processes for pharmaceutical waste disposal, citing the potential risks associated with prolonged procedures.
On the leather sector, the experts highlighted the need for investment and adoption of modern processing technologies to address existing challenges. These challenges include the high cost of production and the production of low-quality leather products. Notable issues identified included low volumes of locally produced leather products, limited capacity of tanneries, and insufficient technology and manpower
SADC aims to enhance growth and development of fish value chains to meet market demand (SADC)
During the validation workshop for the PROFISHBLUE project, a collaborative initiative between the Southern Africa Development Community (SADC) and the United Nations Industrial Development Organisation (UNIDO), which took place in Lilongwe, Republic of Malawi on 6th February 2024, several speakers expressed concerns and lessons learned regarding the inadequate fish and fisheries production in the SADC region to sufficiently meet its market demand.
The workshop aimed to validate project outputs, through exchanging ideas, shared experiences, and discuss policy harmonisation and the elimination of barriers to promote the free flow of fish and fishery products. Dr. Hastings Zidana, the Director of Fisheries for the Republic of Malawi emphasised that fish contributes 4% to Malawi’s GDP, and constitutes 30% of the protein consumed in Malawi, highlighting the paramount importance of fish and fisheries product trading for Malawi and the SADC Region.
A messy withdrawal from ECOWAS (tralac)
On 29 January 2024, the military juntas of Niger, Mali, and Burkina Faso announced their withdrawal from the Economic Community of West African States (ECOWAS). Their explanation was that instead of helping them to protect their security, ECOWAS had imposed “illegitimate, inhumane and irresponsible” sanctions on them after they had previously staged military coups “to take their destiny into their own hands.” They claimed that ECOWAS, under the influence of foreign powers, is betraying its founding principles and has become a threat to its member states. They also said that it was a “sovereign decision” to withdraw from ECOWAS.
In this saga nothing has happened according to the rulebook, and this is certainly not a Brexit type divorce. It is the first time in ECOWAS’ nearly 50 years of existence that some of its members are withdrawing in such a manner.
ECOWAS to work with member states to foster democracy and good governance (ECOWAS)
The Economic Community of West African States (ECOWAS) will continue to promote the ideals of democracy and good governance as well as accountability and transparency. President of ECOWAS Commission, H.E. Dr. Omar Alieu-Touray gave this assurance at the conclusion of the extraordinary session of the Mediation and Security Council (MSC) at the Ministerial Level convened to discuss the recent decision of Burkina Faso, Mali and Niger to withdraw from ECOWAS.
At the end of the meeting held in Abuja, Nigeria, the council urged Burkina Faso, Mali and Niger to pursue sustained dialogue and reconciliation and stressed the critical need for diplomacy and unity in the face of regional challenges. Dr. Alieu-Touray highlighted the yearnings of ECOWAS citizens for good governance stressing that “people in the region are asking for accountable and democratic governments and ECOWAS needs to reflect the aspirations of the people”.
PAPSS Expands into North Africa as Banque Centrale de Tunisie Becomes Thirteenth Member (Afreximbank)
The Pan African Payment and Settlement System (PAPSS) is proud to announce the entry of Banque Centrale de Tunisie (BCT) into its network as its thirteenth Central Bank member, further strengthening its commitment to promoting seamless cross-border payment services and enhancing financial integration across the African continent.
Banque Centrale de Tunisie’s membership in PAPSS signifies the bank’s determination to foster economic growth and development within the country and the African region. This value-adding collaboration will allow Tunisian businesses and citizens to benefit from enhanced payment efficiency, reduced transaction costs, and more opportunities to trade and pay with other African countries.
“As the Pan-African Payment and Settlement System (PAPSS) continues to attract more countries, we are witnessing a growing belief among Africans in their own abilities and potential to drive the development of the continent through their own initiatives. At Afreximbank, we have unwavering confidence that PAPSS will revolutionize the payment landscape within Africa, ultimately benefiting our people. We extend our heartfelt gratitude to Banque Centrale de Tunisie for their trust and decision to join the PAPSS network, as it signifies a significant step towards achieving our shared goals.”
Key AU summit in Addis Ababa to focus on most pressing issues facing Africa (The North Africa Post)
Over 34 African leaders are to converge in Addis Ababa for the 37th African Union (AU) Summit by this week’s end to discuss pressing issues, including education, peace, trade, and governance. African leaders will meet in Ethiopia’s capital this February 17-18, for a pivotal gathering that could shape the course of the African continent for years to come. With the theme ‘Educate an African fit for the 21st Century,’ the event aims to build resilient education systems and address the challenges of development, conflict, and inequality.
The summit could mark a turning point in Africa’s journey towards a brighter, more prosperous future. One of the key themes to be discussed is building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa. Access to quality education remains a significant challenge in many parts of Africa, with millions of children still out of school. Besides education, the summit will also cover a range of other critical issues, including peace and security, trade and integration, agriculture and climate change, governance and human rights, and gender and youth empowerment.
More info on the 37th AU Summit
Abuja Roundtable for Economic Transformation in West and Central Africa Declaration (World Bank)
As African countries continue to confront multiple overlapping internal and external challenges, an economic transformation of the continent is achievable but will require creating the right conditions to turn opportunities into transformational accomplishments in key development areas. The World Bank Group is a key partner in this endeavour and its ongoing transformation will further leverage its capacity to support the people of Western and Central Africa.
The roundtable discussed and reaffirmed key priorities for the region which include human capital improvement, job creation through private sector development, food security, and the need to further strengthen financial inclusion and expand safety nets. The importance of budget support to stabilize the macroeconomy and crate fiscal space for investments were highlighted, along with the need for stepped-up efforts by governments to strengthen domestic revenue generation.
IDA is the largest source of development finance for countries in Africa, and offers critical support for climate adaptation, conflict prevention, and private sector mobilization. A continued strong IDA is imperative to reach regional development aspirations, and the roundtable agreed to work together through the African caucus towards a consequential IDA-21 replenishment.
GEF deploys additional high-impact climate adaptation funding (Global Environment Facility)
The Global Environment Facility’s member countries have approved $203 million in high-impact climate adaptation investment for Least Developed Countries, Small Island Developing States, and other countries needing to reinforce their food systems, water resources, and warning systems as a result of growing climate change risks.
Meeting in Washington DC, the Council of the GEF-managed Least Developed Countries Fund (LDCF) and Special Climate Change Fund (SCCF) agreed to fund 21 projects that build on years of support for critical initiatives that are helping countries address their most urgent adaptation priorities in a way that helps local communities, strengthens policy frameworks, and advances environmental goals for the long term.
UNCTAD - Press Conference: Presentation of the Global Supply Chain Forum 2024 (UN Web TV)
Supply chains drive trade and the world economy: for example, international shipping connects countries and ports, carrying over 80% of global trade volumes. In recent years, global supply chains have been disrupted by crises such as climate change, as shown by the drought affecting the Panama Canal, geopolitical tensions as in the Red Sea and the Black Sea, and energy shortages, as well as the COVId19 pandemic. Supply chain disruptions increase the prices of goods, experience has shown.
Government officials, business leaders and experts at the forum will examine issues such as digitalization, food security, transport costs, climate change, developing countries’ financing needs and how to better manage the energy transition in international transport.
Renewed efforts are needed to open markets as barriers to services trade remained high in 2023 (OECD)
The supply of services through commercial presence and digital trade faced new barriers in 2023, as global services providers were confronted by fragmented regulatory environments, according to annual analysis from the OECD. The overall number of services trade liberalisation reforms enacted in 2023 was below the previous year, but the aggregate impact of liberalising policies nonetheless moderately outweighed the introduction of new restrictions.
New liberalisation efforts in 2023 contributed to easing regulatory hurdles in some countries, notably as regards infrastructure-related services, such as construction, architecture, and engineering services. These positive developments were offset, however, by a range of new barriers across several countries, including related to the screening of foreign direct investment affecting services sectors such as computer services, telecommunications, transport, and commercial banking. Similarly, rules on cross-border data flows, digital trade and market entry for foreign e-commerce platforms were tightened, adding to the challenges faced by global services providers, according to the OECD.
OECD Services Trade Restrictiveness Index: Policy trends up to 2024 shows a slowdown in the adoption of new regulations affecting services trade between 2022-23, compared to changes observed in 2021-22, across the 22 major sectors covered.
DG Okonjo-Iweala underlines the need to deliver on trade and development at MC13 (WTO)
“Development has a central place in the WTO’s work”, DG Okonjo-Iweala said. “We need to respond to the needs and concerns of developing countries that account for two-thirds of the WTO membership. … Beyond the agreements we already have, we also see opportunities for developing countries to take advantage of what we are calling ‘re-globalization’ and the decentralization of supply chains.” The 10 Agreement-specific proposals tabled by the WTO G90 group of developing WTO members seek to strengthen existing flexibilities for developing members contained in WTO agreements, otherwise known as “special and differential treatment”, and to make them more precise, effective and operational.
Participants in IFD Agreement agree on objectives for MC13 (WTO)
The over 120 WTO members participating in the successful negotiations on the new Investment Facilitation for Development (IFD) Agreement agreed, at a meeting held on 8 February, to use the occasion of the WTO’s upcoming 13th Ministerial Conference (MC13) to make the agreement public and request its incorporation into the Marrakesh Agreement Establishing the WTO.
The two co-Coordinators of the Initiative, Ambassador Sofía Boza of Chile and Ambassador Jung Sung Park of the Republic of Korea, announced that four new participants - Cameroon, Angola, Malawi and Mozambique – have joined the group since the last plenary meeting in December 2023, bringing total participation in the Initiative to almost three quarters of the WTO’s membership.
The UNCTAD Model Law on Competition after 30 years (UNCTAD)
Committee economic social and cultural rights opens seventy fifth session (OHCHR)
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Investment in infrastructure gains momentum (SAnews)
President Cyril Ramaphosa says investment in infrastructure is gaining momentum, and new and innovative funding mechanisms will be used to increase the construction of infrastructure. Delivering his State of the Nation Address (SONA) on Thursday evening, President Ramaphosa said to deal with severe inefficiencies in the freight logistics system, government is taking action to improve the country’s ports and rail network and restore them to world-class standards.
“We have set out a clear roadmap to stabilise the performance of Transnet and reform our logistics system. Working closely with business and labour, we have established dedicated teams to turn around five strategic corridors that transport goods for export purposes.
South Africa’s Agricultural Revival and Economic Resurgence (BNN Breaking)
The resilience of South Africa’s agricultural sector is not an isolated phenomenon. It is part of a larger narrative of economic fortitude and adaptability. The country’s long-term bond yield is on the decline, hinting at a potential reduction in interest rates by 2024. This could stimulate economic growth and private consumption, providing a much-needed boost to the nation’s coffers.
The Reserve Bank is expected to loosen its monetary policy, further fostering job creation and economic expansion. Despite high-interest rates, South Africa has managed to create 2.2-million jobs over the past seven quarters. This is a testament to the country’s unwavering commitment to its people and its ability to weather economic storms.
South Africa’s trade surplus has been maintained for the eighth consecutive year, a remarkable feat in the face of low commodity prices and high oil import costs. The export performance has been robust, with strong showings in various sectors. This has been bolstered by a significant increase in foreign direct investment inflows and the recovery of capital formation. Substantial investments have been made in machinery and equipment, driven in part by commitments to renewable energy.
Competition Commission invites comments on poultry industry market inquiry draft terms (Engineering News)
The Competition Commission will conduct a market inquiry into the poultry industry value chain, saying it has reason to believe there are features in the poultry market that may impede, distort or restrict competition. It invites members of the public and interested stakeholders to make written submissions by March 8 on the draft terms of reference (ToRs) for the Poultry Market Inquiry (PMI) that were gazetted on February 6.
“Market outcomes in the poultry industry matter, as chicken meat and eggs are a key source of protein for the majority of South Africans, and particularly low-income households,” says Competition Commission chief economist James Hodge. “A poultry market inquiry into the concentrated and integrated structure of the industry can complement other initiatives to improve the competitiveness of the industry to the benefit of consumers and smaller participants,” he adds. The PMI will start 20 business days after the publication of the final ToRs, and the final report will be completed within 18 months.
Tanzania eyes a new $1 billion market (Business Insider Africa)
Dr. Selamani Jafo, the Minister of State in the Vice President’s office disclosed to his fellow government officials that by the end of 2023, Tanzania received 35 applications for carbon trade projects, as seen in the Tanzanian newspaper, The Citizen. “Carbon trade is so thriving in Tanzania that it will significantly contribute to the economy soon,” the minister said, responding to a question from a legislator. The minister also went on to reveal that Tanzania had received Sh32 billion between 2018 and 2022 from the carbon trade projects implemented in different regions across the country.
“By December 31, 2023, we had received a total of 35 applications for different carbon credit projects. When the implementation of these projects starts, we expect to generate $1 billion, which will have a significant contribution to the national economy,” Dr. Selamani Jafo stated. He revealed that the government has already initiated conversations with potential catalysts to the market including district commissioners and the media. These conversations are geared toward creating public awareness of the potential carbon credit has in propelling the East African nation’s economy.
Nigeria Customs Services explores the possibility of setting up a Customs Laboratory (World Customs Organization)
From 29 January to 1 February 2024, the Nigerian Customs Service (NCS) hosted a national workshop on Customs laboratories with the aim of conducting a scoping exercise for setting up a national Customs laboratory. The workshop was delivered by the WCO within the framework of the EU-WCO Programme for the Harmonized System in Africa (HS-Africa Programme), funded by the European Union. The workshop was facilitated by a WCO recognized Customs chemist from the Spanish Customs Administration.
In his opening remarks, Mr. CG Niangwan, Assistant Comptroller General of the NSC, confirmed the commitment of NCS in implementing a modern Customs laboratory as another step in the modernization of his Administration. He stressed the importance of Customs laboratories for the purposes of revenue collection, drug enforcement, protection of the society and the environment as well as trade facilitation.
Burkina Faso government, African Development Bank launch project to bolster food security (AfDB)
The government of Burkina Faso has officially launched an African Development Bank supported project to bolster food security in the country against the impacts of Russia’s invasion of Ukraine.
Under its African Emergency Food Production Facility, the African Development Bank Group, has provided €38.4 million—nearly the entire project cost— for PURPA-BF. It will supply nearly 9,000 tons of certified climate adapted seeds to 330,000 farmers to help increase production of maize, rice, soya, cowpea, sorghum and wheat. The farmers-- more than half of them are women, internally displaced individuals and youth-- will also receive 36,000 tons of fertiliser. The project is primarily targeting the country’s major irrigated plains around Bagrépôle, Bama, Banzon and Karfiguéla.
Implementation is expected to boost national rice production by 430,000 tons and maize production by 707,000 tons. Other crops will also see production increases.
China plans to spend US$1 billion to revamp Tanzania-Zambia railway in race to control critical mineral trade routes (South China Morning Post)
As global powers vie for control over critical mineral trade routes, China plans to spend US$1 billion to refurbish a key railway line connecting Zambia’s copper belt region with the Tanzanian port of Dar es Salaam under its Belt and Road Initiative.
On Wednesday, China’s ambassador to Zambia Du Xiaohui handed over a proposal to rehabilitate the Tazara railway to Zambian Transport Minister Frank Tayali, saying the US$1 billion investment would be done through a public-private partnership (PPP) over the coming years.
When the Tanzanian and Zambian presidents visited China in 2022 and 2023 respectively, Chinese President Xi Jinping promised to support the upgrade of the railway, which was originally built in the 1970s and funded by the Chinese government under Mao Zedong as a foreign aid project.
China is keen to use the Tazara rail line to transport mining exports from Zambia and the Democratic Republic of the Congo (DRC). The refurbished Tazara railway will compete directly with a railroad backed by the US and EU to link Zambia’s copper belt and the mineral-rich DRC to the Lobito port on Angola’s Atlantic coast.
Brussels and Washington announced in late October they would fund the rail project to connect the resource-rich region of Zambia to an existing line to the Lobito port. The US and EU are eager to secure minerals that are vital for making batteries and advanced electronics – including cobalt, which comes from the DRC and Zambia. Most of these minerals are now exported to China for processing.
US to invest in rail project linking Southern Africa mines to Angola port (The East African)
The United States will provide more funds for the construction of the Lobito Corridor, a rail link to export metals from Central Africa’s Copperbelt, including a link for Zambia, US energy envoy Amos Hochstein said. US has been supporting the project linking mineral-rich Democratic Republic of Congo (DRC) and Zambia to Lobito port in Angola. The link seeks to bypass logistics bottlenecks in South Africa that have held up copper and cobalt exports - metals vital to the energy transition away from fossil fuels.
In 2022, a consortium led by global commodities giant Trafigura, Portugal’s Mota-Engil and Vecturis SA of Belgium was awarded a 30-year concession for railway services and support logistics on the Lobito Corridor. The consortium plans to spend $455 million in Angola and $100 million in the DRC on equipment, operations and infrastructure maintenance. Additional funding is required to extend the 1,700 km line into Zambia in the second phase.
Cross-border infrastructure development will fast-track regional integration - President (The Sunday Mail)
The development of cross-border infrastructure within SADC will help fast-track regional integration and anchor trade and investment, which are key for robust economic development. This was said by President Mnangagwa here on Friday while officially opening the Botswana-Zimbabwe Bi-National Commission Summit at Maun Lodge.
The President highlighted two specific projects – the Plumtree-Ramokgwebana One-Stop Border Post and the Ponta Techobanine Railway Line – as key pillars of development that hold immense potential to unlock economic growth, create jobs and improve livelihoods.
“The unrestricted movement of our citizens, as well as goods and services, is an essential cog to stronger economic cooperation,” he said. “In this spirit, the establishment of the one-stop border posts should be expedited. The development of cross-border infrastructure projects to increase our economic efficiencies and competitiveness must be pursued with greater vigour and confidence.” He added: ”The proposed railway line between Botswana, Zimbabwe and Mozambique (known as the Ponta Techobanine Inter-Regional Heavy Haul Railway Project) is highly anticipated for greater rail connectivity in the region.”
The first Lamu Port, South Sudan, Ethiopia (LAPSSET) Corridor Development Program joint Technical Committee meeting was held from 24-25 January 2024 in Nairobi, Kenya. The meeting was organized jointly by the footprint countries, in partnership with the United Nations Economic Commission for Africa (ECA) and the NEPAD/APRM Kenya Secretariat. The LAPSSET Corridor Development Program is a regional infrastructure project that aims to connect Kenya, Ethiopia, and South Sudan through a network of ports, highways, railways, pipelines, airports, and resort cities.
Mr. Stephen Karingi, Director of the Regional Integration and Trade Division of the UN Economic Commission for Africa (ECA), stated that the Programme fits well among the ambitions of the UN sustainable development goals and Agenda 2063, “the Africa We Want” as it seeks to enhance trade, investment, regional cooperation and peace among the three countries and beyond. He also recalled the crucial role of the Committee as a platform for accelerating the progress of this Corridor Development Programme, stating that “It is a forum that must be in the forefront of enhancing collaboration and partnership among the three countries and development partners supporting the programme.” Mr. Karingi reiterated ECA’s commitment to support the LAPSSET initiative.
The Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (ECA/ SRO-WA), is organizing virtually on February 13th a high-level political dialogue in prelude of the 56th Session of the Conference of African Ministers of Finances, Planning and Economic Development of ECA (COM2024).
This meeting will be held in a context where West African countries are facing significant macroeconomic and financial challenges and a continued shrinking of their fiscal space. Indeed, 6 of the 15 countries in the sub-region, namely Capo Verde, The Gambia, Ghana, Guinea-Bissau, Senegal and Sierra Leone have a debt rate exceeding more than 70% which is the convergence criterion at the ECOWAS level in terms of public debt ratio (IMF, 2023).
Placed under the theme “Financing the transition towards inclusive green economies: imperatives, challenges and opportunities for West African countries”, this high-level political dialogue aims to stimulate reflections on West African countries’ specific challenges, imperatives, and financial opportunities to transit to green economies.
ECOWAS Advocates Dialogue, Reconciliation To Bring Back Burkina Faso, Mali, Niger (The Gazelle News)
The Economic Community of West African States (ECOWAS) has called on Niger, Mali and Burkina Faso who recently announced their withdrawal from the subregional bloc to have a rethink and follow the path of dialogue and reconciliation.
The Chairman of the Mediation and Security Council at the Ministerial Level and Nigeria’s Minister of Foreign Affairs, Ambassador Yusuf Tuggar while insisting that the choice of the three countries would only hurt the people, when responding to questions at the end of the sub-region extra ordinary session of the Council.
We are “quite cognizant of the fact that this intention of the three countries namely Burkina Faso, Mali and Niger to exit ECOWAS would bring more hardship and will do more harm to the common citizens of those three countries. “That is not good, and that is why we continue to urge those three countries to remain and follow the path of dialogue and reconciliation. And ECOWAS is going to redouble its efforts towards diplomacy towards dialogue towards reconciliation.”
Tuggar on the implication of the decisions of the three countries to the integration process, said it was just a hiccup to the integration process of the continent, stressing that: “It’s not enough to just think that because of this development, that’s it. It means integration has been derailed, far from it. “This is just a minor hiccup. And we’re talking about 54 countries and even with this hiccup the integration has already started and ECOWAS gone further than a lot of other parts of Africa in terms of integration. So the number of citizens from the three countries living in the rest of ECOWAS (countries), even in this building (ECOWAS headquarters) the number of people from those countries that work in ECOWAS not to talk of the continuous movement of people. The seasonal migration which takes place across the region, these are all things that you cannot just undo overnight, so you know, it takes more than pronouncements.”
Fractured West African Bloc Appeals For Unity (Barron’s)
ECOWAS exit: Security, economic impact on Nigeria (Tribune Online)
ECOWAS told to strengthen strategies to curb membership breakaways (Modern Ghana)
Middle East conflict hits Africa and analysts examine impacts of African States’ exit from ECOWAS (Africanews)
Kagame Leads African Union Reforms for a Stronger, More Sustainable Future (BNN Breaking)
On February 8, 2024, President Paul Kagame of Rwanda convened a virtual meeting with the African Union Commission (AUC) Chair and the AU Reform Team to review the progress of the African Union’s institutional reforms. As the appointed leader of these reforms by the AU Heads of State, Kagame’s focus is to create an effective and financially sustainable African Union that is better equipped to address the challenges facing the continent.
In preparation for the upcoming African Union Summit, today’s virtual meeting between President Kagame, the AUC Chair, and the AU Reform Team emphasized the importance of sustaining progress towards an effective and financially sustainable African Union. During the meeting, the attendees reviewed the progress made in implementing the reforms and discussed strategies to maintain momentum. The discussions highlighted the need for continued commitment from all AU member states to ensure the successful implementation of the proposed changes.
The objective of the reforms, as envisioned by President Kagame, is to create an African Union that is better equipped to address the challenges facing the continent and execute high-impact programs that align with Africa’s growth, development goals, and the vision set forth in Agenda 2063. As the committee of experts continues its work, the hope is that the proposed changes will lead to a more unified, efficient, and impactful African Union. With the support of the AU member states, this vision of a stronger, more sustainable African Union may soon become a reality.
Global eco-digital economy to double in next five years (Consultancy.eu)
The combination of ecology and digitization is rapidly gaining ground in the business world. In response to the ongoing climate crisis, companies have widely adopted digitization as part of a strategy to promote sustainability. So far, that seems to have been paying off. Thanks to digital technologies, companies worldwide have reduced their energy consumption by 24% and their CO2 emissions by 21% since 2018, according to Capgemini’s research report.
In the coming years, digital solutions will play an increasingly important role in both sustainability and economic growth, said Fernando Alvarez, Chief Strategy and Development Officer at Capgemini. “We are transitioning to an eco-digital economy. It’s not just about economic value but also about ecological and social value,” said Alvarez.
BRICS financial track priorities for 2024 identified (Bank of Russia)
On 7 February 2024, as part of Russia’s BRICS presidency, Deputy Finance Ministers and Central Bank Governors of the BRICS countries hold an online meeting. This was the first event in the BRICS financial track with the participation of representatives of countries that had become full members of this association since 1 January 2024.
At a special session dedicated to the issues of interaction between BRICS central banks, the Bank of Russia presented the priority areas of cooperation within the financial track: better functioning of the mechanism of the BRICS Pool of Conventional Currency Reserves; the next issue of the BRICS Economic Bulletin dedicated to the economic situation in BRICS countries amid high interest rates; payment interaction; information security of the financial sector; use of financial technologies; transition financing and sustainable development; and a platform for open events, seminars and round tables.
Particular attention was paid to the issues of increasing the proportion of national currencies in mutual settlements and creating an independent, equally accessible financial infrastructure, as well as prospects for the development of cooperation in anti-money laundering and combating the financing of terrorism, and credit ratings.
BRICS Wealth Report 2024 (Henley & Partners)
Reform IMF, WB to reflect interests of Global South, BRICS has role: Guterres (ETBFSI.com)
The international financial and development institutions should be reformed to reflect the interests of the Global South, Secretary-General Antonio Guterres has said. While the BRICS can play an important and complementary role for developing nations, he stressed that it should not contribute to a fragmentation of the world economy.
“We obviously need that those institutions reflect more obviously the interests of the Global South”, he emphasised. Asked about the role of BRICS, he said that “it is important to have a multiplicity of different organisations to support developing countries” in the finance and trade sectors. “But”, he added, “it is essential that (it) doesn’t correspond to a fragmentation of the global economy”. “One of the most important aspects that we need to preserve today is One Global Economy, One Global Market, One Global Internet and to avoid the fragmentation of that global economy”, he said.
Kenya to host 6th United Nations Environmental Assembly (CGTN Africa)
Kenya’s Cabinet Secretary for Environment, Climate, and Forestry Soipan Tuya said the 6th United Nations Environmental Assembly (UNEA-6) will be held from February 26 to March 1 at the UN Complex in Gigiri, Kenya and over 5,000 delegates, including heads of state and governments from the 193 UN member states will attend the meeting. Tuya made the statement during a press conference on Thursday in Nairobi, capital city of Kenya.
Inger Andersen, the Under-Secretary-General of the United Nations and Executive Director of the United Nations Environment Programme reiterated the importance of sticking to the world’s environmental must-do list to keep up with climate change and its effects. “The impacts are here and growing. Last year was the hottest on record, bringing more intense storms, droughts, and wildfires. Species are under massive pressure, forests are falling and soils are turning infertile. Millions of people are dying each year from exposure to pollution and chemicals,” said Andersen.
According to the United Nations, UNEA-6 will put a special focus on how stronger multilateralism can help hasten efforts toward ending the ongoing climate crisis.
Landlocked Developing Countries Conference to Address Development (Inter Press Service)
Landlocked developing countries need greater support from the international community so that they are no longer left behind when it comes to progressing with the SDGs, says the UN High Representative of the Least Developed Countries. The Third UN Conference of Landlocked Developing Countries (LLDC3) is set to be hosted in Kigali, Rwanda, in June. A preparatory committee for the conference has been established and convened its first meeting on Monday.
The overarching theme of the conference, “Driving Progress through Partnerships,” is expected to highlight the importance of support from the global community in enabling LLDCs to meet their potential and achieve the SDGs.
Rabab Fatima, Under Secretary-General and High Representative of the Office for the Least Developed Countries, and the Secretary-General of the LLDC3 Conference, remarked that this conference would be a “once-in-a-decade opportunity” for the global community to address the needs of the LLDCs in order to “ensure that nobody is left behind.”
“The 32 landlocked developing countries are grappling with unique challenges due to their geographical and structural constraints and lack of integration into world trade and global value chains. Their situation has been further exacerbated by the lingering effects of the pandemic, climate change, and conflict,” she said.
Thirty-two countries are classified as LLDCs, 17 of which are also classified as Least Developed Countries (LDCs). Sixteen are in Africa, and the remaining are located across Asia, Europe, and South America. This year will mark the first time that the LLDC Conference will be hosted in Africa.
In the current scenario of triple planetary crises, environmental stewardship and visionary leadership are indispensable elements for fostering collective action and propelling global efforts to address shared environmental challenges.
With the above backdrop, speaking at the inaugural session of the 23rd edition of the World Sustainable Development Summit (WSDS), the Hon’ble Vice President of India Shri Jagdeep Dhankhar emphasized that sustainable development and containing climate change are quintessential to a secure future.
The Hon’ble Vice President underscored, “The challenges we face are daunting, but they are not insurmountable. By joining forces, embracing innovation, and fostering international cooperation, we can pave the way for a sustainable and secure future for all. Let this Summit be a catalyst for action, inspiring us to redouble our efforts and work towards a world where the principles of sustainable development guide our every decision.”
Speaking at an earlier session on finance, H.E. Ms Teresa Ribera Rodríguez, Minister, Ministry for the Ecological Transition and Demographic Challenge, Spain, underscored, “The challenge in mobilizing climate finance is about finding the right instruments to do so, the right incentives, the right signals, to ensure that we dedicate our efforts where they are needed. For instance, we cannot expect climate vulnerable, fiscally constrained developing countries to have recourse to credit instruments that can accelerate mitigation and adaptation actions.”
H.E. Mr Willie Tokataake, Minister, Ministry of Infrastructure and Sustainable Energy, Kiribati, shared the unique challenges faced by the small island developing states. He highlighted, “For any holistic discussion on the looming climate crisis, it is pertinent to hear the voices of the most vulnerable countries. The efforts by small island nations to mitigate the climate change impacts are very minimal given our insignificant emissions compared to the developed countries’ emissions, yet we are the most impacted nations from climate change impacts. I am glad to be here today to represent the concerns my country faces and deliberate on effective global solutions.”
Rich countries miss key deadline for loss and damage fund launch 107039 (Devex)
Higher-income countries have missed a deadline to nominate their board members for the fledgling loss and damage fund, potentially creating delays in the fund’s bid to assist communities experiencing the adverse effects of climate change.
After decades of pressure from climate-vulnerable, lower-income countries and years of negotiations, countries agreed to institute the fund at the 28th U.N. Climate Change Conference of the Parties, or COP 28, and appoint a 26-member board to supervise it.
Regional groups were asked to select their board representatives “as soon as possible” and the U.N.’s climate change arm, the United Nations Framework Convention on Climate Change, was to convene the first meeting of the fund’s board after all members had been appointed, “but no later than 31 January 2024.”
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Infrastructure deficit continues to hold back African mining (African Business)
These are interesting times for the African mining industry. Interest in the continent’s critical mineral reserves is soaring: lithium, copper, cobalt and nickel are vital to the energy transition and are opening up new mining opportunities across Africa. Meanwhile, however, the problems at South African rail network Transnet have hit the country’s bulk miners hard – and delays to new rail projects are hampering efforts to develop new mines in Central Africa.
Modest global economic growth should drive slightly increased demand for mining commodities overall in 2024. However, mining analysts CRU forecasts a 7.4% fall in the global volume of seaborne thermal coal traded in 2024, as international sentiment turns against coal-fired power generation. Coking coal production is expected to remain stable as a result of solid demand from the steel industry. There should be modest growth in demand for base metals in industrialised countries, with stronger growth for critical minerals. This should benefit African exporters but as always domestic constraints will have a bigger impact on the performance of African producers.
While critical minerals are a bright spot, there appears to be no end in sight to the problems currently plaguing the South African bulk mining sector. The industry is facing something of a perfect storm, with port congestion and a lack of rail locomotives exacerbating the impact of coal contract fraud and widespread vandalism of rail infrastructure.
CGA welcomes support from shipping company to boost citrus exports (Engineering News)
The Citrus Growers Association of Southern Africa (CGA) has welcomed the announcement that global liner shipping company Hapag-Lloyd will be helping to export citrus from the ports in Durban and Gqeberha. The new service will run by the end of May, in time for the bulk of the 2024 season’s citrus, until September.
The CGA’s role in facilitating Hapag-Lloyd’s entry into the market was undertaken with the aim of increasing both capacity and competition, to ensure long-term sustainability for the sector. Recent shipping price spikes owing to attacks on vessels in the Red Sea, as well as drought-related complications affecting the Panama Canal, have shown how exposed many fruit exporters are to increases in shipping rates. CGA believes any measure that can introduce some stability and competition into the shipping market is a step forward.
“The citrus industry and the broader economy need as much access to shipping as possible. Apart from keeping the market competitive and flexible, a new entrant is also welcome in the context of the large projected increase in citrus yield over the next few years,” CGA explains.
Busa seeks govt’s backing on private sector support to resolve energy, logistics crises (Engineering News)
Business organisation Business Unity South Africa (Busa) has outlined its expectations for President Cyril Ramaphosa’s State of the Nation Address tonight, with the first being a call for a clear acknowledgement on the partnership between government and business on energy, logistics and crime and corruption. It also expects a commitment from government to open up space for greater participation by the private sector in building, operating and maintaining critical logistics networks and in generating energy.
Busa highlights that there has been some progress in these areas, particularly in energy, but also in logistics, with the recent announcement that Transnet Freight Rail has taken delivery of seven sets of locomotive batteries procured by the Richards Bay Coal Terminal. The business organisation also wants a clear commitment to ensure that critical pieces of legislation, like the National Prosecuting Authority Amendment Bill will be processed expeditiously.
This is part of a broader commitment to consider legislation that promotes partnerships between the public and private sectors to enable the private sector to assist government to build its capacity to be an enabling government and deliver critical priorities, Busa explains.
Temporary poultry rebate in response to HPAI outbreak, Itac says (Engineering News)
Amid the creation of a temporary rebate on poultry products – as set out by Trade, Industry and Competition Minister Ebrahim Patel to the International Trade Administration Commission of South Africa (Itac) – Itac notes that the directive followed the Department of Agriculture, Land Reform and Rural Development (DALRRD) confirming the outbreak of Highly Pathogenic Avian Influenza (HPAI), which forced the culling of millions of fowls at great loss to key players across the poultry value chain.
Itac explains that the temporary rebate does not apply to anti-dumping duties and is not a full rebate in some product categories, such as bone-in cuts where importers will still have to pay a duty of 37% to ensure continued protection for domestic poultry producers against unfair trade practices and injurious imports.
Moreover, the volume of the tariff rate quota for the first six months was determined to be 86 000 t, which may be equally divided into two three-month periods, or 43 000 t per three-month period, with the permits administered on a three-month basis over the first two three-month periods at 43 000 t per three-month period. As stated in the guidelines, Itac points out that the issuing of permits under the rebate provision may be discontinued if domestic production has satisfactorily recovered from the HPAI outbreak.
Five-year multinational project kicks off to advance the circular economy in the textile industry (Engineering News)
“The World Bank estimates that nearly 20% of global wastewater comes from textiles,” said United Nations Industrial Development Organization Project Administrator, Franchesca Beru at an inception workshop for a five-year multinational project, titled Promotion of the circular economy in the textile and garment sector through the sustainable management of chemicals hosted by the National Cleaner Production Centre South Africa (NCPC-SA). The countries participating in the project are Lesotho, Madagascar and South Africa, with Ethiopia being a recent addition. The application of circular economy principles promises great benefits for companies, the sector, and the country.
“The workshop aimed to set the scene for the next five years. It was a platform for delegates to share knowledge, challenges and experiences around circularity in the textile and garment sector, with specific emphasis on chemical management and waste discards,” said Lesego Hlalethwa, the NCPC-SA workshop organiser and programme director.
She explained that the participating countries were selected based on their export contributions. “South Africa is a top 10 exporter of apparel as are Lesotho, Madagascar, and Ethiopia. We also based our selection on UNIDO’s previous experience in the countries. UNIDO has worked with South Africa and the other countries quite extensively on different projects. Regional integration was also a consideration,” she explained.
Uganda has taken a major step towards creating a circular economy to drive sustainable growth and green industrialisation in line with its Vision 2040 national agenda. With the support of the African Development Bank, the country launched the circular economy roadmap process on 31 January 2024 in the capital, Kampala. Representatives of the government and the African Development Bank attended.
The initiative, implemented jointly with the African Circular Economy Alliance (ACEA) and backed through the Bank’s Africa Circular Economy Facility (ACEF), will engage government policymakers, businesses and civil society organizations in efforts to tap the full potential of circularity to accelerate progress towards sustainable development goals and climate action.
Kenya imports from China in rare decline on hard economic times (The East African)
Kenya’s imports from China, the country’s leading source of goods, recorded a rare decline in 2023, signalling muted consumption during the year amid a high cost of living. Data from the General Administration of Customs of the People’s Republic of China (GACC), which is China’s equivalent of the Kenya Revenue Authority (KRA), shows that China exported goods worth $7.87 billion (Ksh1.26 trillion at current exchange rates) to Kenya last year. This marks a decline of 1.11 percent compared to the $7.96 billion (Ksh1.27 trillion) that the Asian giant shows it exported to Kenya in 2022. Such a decline is rare, and not even during the pandemic in 2020 when global trade ground to a near halt did it occur, according to Chinese customs data.
China is a major source of electronics, clothes, beauty products, steel, furniture, equipment and machinery. The decline in imports from the Asian giant indicates muted demand from local consumers amid high inflation that has reduced the spending power of Kenyans. According to the Central Bank of Kenya (CBK), non-food imports took a hit during the year, especially due to a slowdown in infrastructure-related spending as well as manufactured goods, oil, and chemicals.
Booming sectors: Where investors put their money (The Citizen)
Tanzania’s manufacturing, transportation and commercial building sectors are increasingly appealing to investors due to their potential for profit, personnel availability, policy framework, growing demand and perceived sector stability. The three sectors, according to the statistics of registered projects by the Tanzania Investment Centre (TIC), were top investors’ choices in the country in 2023, as the centre reports over $5.67 billion (estimated Sh14.38 trillion) in total capital injected. Data showed that the three sectors contributed more than two-thirds of the total capital injected from January to December 2023, at nearly $3.9 billion.
University of Dar es Salaam (UDSM) Prof Jehovaness Aikaeli said investors look at sectors that can generate lucrative returns, those with the potential to bring profit and those with a high probability of growth over time. “But they also consider the availability of inputs, the global economic situation, and the specific economic conditions of the sector, as well as the security of their investments in the country,” he said.
Experts predict food import inflationary impact as Burkina Faso et al exit ECOWAS (The Business & Financial Times)
Experts are predicting a possible import inflationary effect on food commodities from Burkina Faso, Niger and Mali as a result of those countries’ withdrawal from the ECOWAS bloc. Global Credit Rating (GCR) – a subsidiary of Moody’s – has indicated that leaving ECOWAS will have a general inflationary impact in the domestic markets of all the three countries, which will inevitably be transferred to the price of food commodities imported into neighbouring countries including Ghana.
It says the movement of people across various borders and trading in these countries will likely be limited – a situation that could possibly promote commodity hoarding with price hikes.
Ghana currently imports 90 percent of its fresh tomato from Burkina Faso, with a national consumption demand in excess of 800,000 metric tonnes per annum, according to data from the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL). Trade data from the Ghana Vegetable Producers and Exporters Association show that the country imports some US$400million worth of tomato from Burkina Faso each year. Burkina Faso and Mali also account for almost 70 percent of Ghana’s livestock import.
I want to build a Digital Ghana for inclusive economic growth - Bawumia (MyJoyOnline)
Vice President and Flagbearer of the NPP, Dr Mahamudu Bawumia, has declared that his objectives as President would include building what he has labelled Digital Ghana, which will be ready for the ongoing global digital revolution for inclusive economic growth in Ghana. Addressing the nation on February 7, to reveal his vision and priorities for Ghana, he revealed several policies in other sectors but stressed the indispensability of a Digital Ghana. The programme he said will be the anchor, to ensure Ghana is not left behind in the technological demands of the modern world.
Dr. Bawumia stated further that his Digital Ghana vision is also aimed at applying technology to transform key sectors of the economy including agriculture, healthcare, education, manufacturing, and the financial sector for a prosperous digital economy which will make Ghana a digital hub and also create jobs for the youth.
“I want to build a Ghana where we leverage technology, data and systems for inclusive economic growth. I want us to apply digital technology, STEM, robotics and artificial intelligence for the transformation of agriculture, healthcare, education, manufacturing, fintech and public service delivery.”
Ghana Shippers’ Authority participates in Ghana Expo 2024 in Tanzania (The Business & Financial Times)
In line with Ghana’s strategy to increase trade within Africa under the Africa Continental Free Trade Area (AfCFTA), the Ghana Shippers’ Authority (GSA) in collaboration with the National Coordination Office (NCO) of the AfCFTA participated in the Ghana Expo 2024 in Tanzania from Wednesday 24th January to Sunday 28th January 2024, at the Mlimani City Conference Centre in Dar es Salaam in Tanzania.
The event dubbed, “Driving the AfCFTA Momentum: Enhancing Ghana – Tanzania Trade Relations,” seeks to foster business partnerships, explore trade prospects, and promote investment between the two countries through structured ‘business to business’ matchmaking sessions. The event is considered as Ghana’s contribution to the Guided Trade Initiative (GTI) under the AfCFTA, launched in October 2022 which enabled Ghanaian shippers to test trade documentation under the AfCFTA.
Mrs. Monica Josiah, Head of Shipper Service and Trade Facilitation department of the GSA, underscored the critical role of shipping in the success of the AfCFTA. She indicated the success of AfCFTA will be impeded if deliberate measures are not made to provide the necessary shipping infrastructure and streamline processes in the shipping value chain. She also stressed the need for traders to comprehend import and export requirements and procedures of the African countries they intend to trade with, to facilitate the smooth flow of goods under the AfCFTA. She urged exporters and importers in Ghana to seek necessary guidance from the GSA in matters relating to cargo shipment.
Shipping costs at Mombasa Port set to rise (The Citizen)
Kenya Ships Agents Association (KSAA) on Wednesday said importers should expect higher charges from this week as stakeholders assess the increasing insecurity from Yemen Houthis’ claim of fresh Red Sea attacks on British and American ships. KSAA Chief Executive Officer Juma Ali Tellah said shippers are concerned about the escalating conflict along the Red Sea route, and its potential repercussions on the business community and consumers in East Africa.
The worry was always expected to bring a new burden. But the actual cost increment wasn’t known since December when Houthis first fired the first missile. “Despite efforts to normalise freight rates following events such as the Covid-19 pandemic and the Russia-Ukraine War, the ongoing attacks by Houthi Rebels present a persistent challenge.” “Major shipping lines, including those represented by KSAA, are responding by rerouting vessels around the Cape of Good Hope, a costly alternative that directly impacts the business community and consumers in East Africa,” said Mr Tellah.
He added, “The rerouting of ships will result in longer shipping distances, causing an upward surge in freight rates and disturbances in the supply chain. Delays in the smooth movement of goods are expected due to extended transit routes.”
Egypt’s trade deficit rises by 5% in November 2023 (Dailynewsegypt)
Egypt’s trade deficit reached $3.07bn in November 2023, compared to $2.92bn in the same month of the previous year, marking a 5% increase, according to the monthly bulletin of “Foreign Trade Data” issued by the Central Agency for Public Mobilization and Statistics (CAPMAS). The bulletin attributed the rise in the trade deficit to the decline in export value by 20.6%, which amounted to $3.21bn in November 2023, down from $4.04bn in November 2022. The decrease in export value was mainly due to the lower prices of some commodities, such as ready-made clothes by 4.5%, petroleum products by 23.7%, crude oil by 28.6%, and fertilizers by 59.6%.
On the other hand, some commodities witnessed an increase in export value in November 2023, compared to the same month of the previous year, such as various pastries and food preparations by 26.6%, fresh fruits by 4.2%, flat-rolled products of iron or steel by 324.5%, and carpets and kilims by 12.0%.
Nigeria joins US, EU, others to launch TRS for port operations (Tribune Online)
Nigeria joined leading global economies like the United States of America, the European Union, and Asia on Thursday to launch the Time Release Study (TRS), aimed at enhancing the nation’s trade facilitation regime, at the Tin-Can Island Port in Lagos. The launch event, which took place in Lagos, marked a pivotal moment in Nigeria’s commitment to streamlining Customs operations and fostering a conducive environment for international trade.
Minister of Finance, Wale Edun, said: “TRS falls within the domain of the Federal Government’s renewed hope agenda, demonstrating President Bola Ahmed Tinubu’s commitment to unleashing full economic recovery for the country. TRS also redefines the best approaches to creating an enabling environment for businesses, in addition to providing excellent services for economic cooperation. A conducive port environment is crucial for the facilitation of international trade.
“Efficient Customs processes are paramount for achieving cost-effective goods clearance and indeed assuring us of efficiency in the system. So, for Nigeria not to be left behind in the global world of development, we need to key into this initiative. I want to encourage all stakeholders in the port to rally around Customs to ensure the success of the TRS.”
Africa’s Future Hangs in the Balance as Leaders Convene in Addis Ababa (BNN Breaking)
The 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union (AU) is set to take place on February 17-18, preceded by the 44th Ordinary Session of the Executive Council on February 14-15. With the theme “Educate an African fit for the 21st Century: Building resilient education systems for increased access to inclusive, lifelong, quality, and relevant learning in Africa,” the summit aims to address one of the most pressing issues facing the continent today.
Access to quality education remains a significant challenge in many parts of Africa, with millions of children still out of school. The summit will explore ways to build resilient education systems that can withstand the various shocks and stresses that African countries often face, from conflict and displacement to climate change and disease outbreaks.
Beyond education, the summit will also cover a range of other critical issues, including peace and security, trade and integration, agriculture and climate change, governance and human rights, and gender and youth empowerment. Each of these topics carries its own weight and significance, and the discussions that take place over the course of the summit could have far-reaching implications for the lives of millions of Africans.
Mining Indaba: Africa’s critical minerals lay the ground for mutually beneficial partnerships with industrialised nations (Daily Maverick)
Critical minerals like lithium, cobalt, copper and rare earth elements are all the rage because they are crucial ingredients of green technologies such as batteries for electric vehicles and wind turbines. But “critical for whom?” World Bank mining expert Sven Renner asked during a panel discussion at the indaba. He stressed that there were two parties in mining partnerships. Industrialised countries had a legitimate interest in securing supplies of minerals, including critical minerals.
“While African mining countries — as they tell us again and again — have an interest that goes beyond supplying industrialised countries with their minerals,” Renner said, “the question is, how do we find that common ground … that would really allow for a partnership?” To ensure the African side also benefitted, mining investors needed to align with the mining countries’ policies and priorities, including creating jobs, leveraging the mining sector for broader development, particularly infrastructure development such as energy and transportation, and adding value to raw minerals.
Renner noted that about $5-trillion a year would have to be invested in the energy transition if the world hoped to meet the target of limiting the global temperature to 1.5°C above the pre-industrial level.
Poverty, debt and climate risks: UNCTAD deputy urges stronger support for middle-income countries (UNCTAD)
UNCTAD Deputy Secretary-General Pedro Manuel Moreno spotlighted on 6 February the challenges and potential of middle-income countries during a speech at a high-level conference in Rabat, Morocco. Mr. Moreno said these nations lack the global support they need, despite being home to about 75% of the global population and 62% of the world’s poor and facing mounting debt and worsening climate vulnerabilities. “If we are committed to a world of shared prosperity, these countries need our support,” Mr. Moreno said.
Mr. Moreno highlighted the essential role of industrial policies in helping some nations avoid the trap, pointing to East Asian success stories like the Republic of Korea. These countries leveraged their existing industrial skills to develop and expand new production and export sectors, moving into more complex and high-value areas like steel and electronics. “At the heart of these success stories were targeted industrial policies,” Mr. Moreno said. “While such policies became out of fashion a few years ago, there is renewed interest in them, and for good reasons.”
Mr. Moreno emphasized the key role industrial policies can also play in capitalizing on these countries’ “green” potential. “There is immense potential of renewable energies and the energy transition in middle income countries,” he said, pointing to Morocco as an example. The country now hosts one of the largest wind farms in Africa and has the potential to become a key exporter of solar energy. But realizing this potential requires quick access to clean technologies.
Quick links
Could the EU’s trade deal with Kenya strengthen the African Continental Free Trade Area? (EUROPP)
America should not allow its trade programme with Africa to die (Financial Times)
While the world is in a state of flux, all eyes are on Africa (African Business)
How Africa can finance its climate change strategy (African Law & Business)
Economists call for negotiating trade benefits at WTO MC13 (Business Post)
Stitching future apparel manufacturing digital supply chain (The Edge Signapore)
The West is turning inward. Here’s how the Brics+ countries can surpass it (The National)
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Investec Logistics Update: South Africa’s trade outlook for 2024 (Investec)
Global growth is expected to be subdued, if not stagnant in 2024 and amidst this slow growth and some of the challenging market conditions, global trade is also expected to be sluggish. According to The World Bank global trade growth, in 2024, is anticipated to be only half the average in the decade before the pandemic.
“Current geopolitical tensions are high. While these tensions currently only have a direct effect on certain regional trade routes such as Europe-Asia, should they escalate, it certainly can destabilise global trade and supply chains in many ways,” adds Hobson.
From a South African perspective, the biggest concern is the efficiency of ports and rail infrastructure. “If sustainable progress doesn’t get made soon we may see further route and capacity changes on the South African in and outbound routes as it has become too expensive to have vessels stuck in ports for days and weeks,” says Hobson.
“Shipping lines could utilise their capacity more effectively on other trades if required. We may even see some remove direct sailings or only have limited sailings coming into South Africa – which will reduce available capacity and increase freight rates”.
South Africa Committee Approves WTO Fisheries Subsidies Agreement Ratification (BNN)
In a significant step towards sustainability, the Portfolio Committee on Trade, Industry and Competition in South Africa has given its approval to ratify the World Trade Organization’s (WTO) agreement on fisheries subsidies. The agreement, adopted by consensus at the WTO’s 12th Ministerial Conference in June 2022, is an effort to alleviate pressure on global fish stocks and aligns with the United Nations’ sustainable development goal to eliminate harmful fisheries subsidies.
The first phase of the agreement includes rules to curb harmful fishing subsidies. It also provides for special treatment for developing and least-developed countries, establishing a fund for technical assistance. The agreement prohibits support for IUU fishing, fishing of overfished stocks, and subsidies on the unregulated high seas.
Further negotiations on overfishing and overcapacity issues are scheduled for the second phase, with the objective of delivering a comprehensive agreement at the upcoming 13th Ministerial Conference.
Mashatile calls for more to be done to transform mining industry (SAnews)
Deputy President Paul Mashatile believes that although the Mining Charter has achieved some success in reforming the mining industry, more still needs to be done. “The 30 years of our nation’s democracy should compel us to become even more proactive about the issue of economic transformation in this industry and country.” The Deputy President delivered a keynote address at the South African Youth Economic Council (SAYEC) Business Dialogue during the Mining Indaba in Cape Town.
“The transformation of this sector is important because it forms a vital part of our country’s development trajectory, driving infrastructure development, which includes the construction of roads, railways, and power plants, and positively impacting the economy. “Our country’s rich natural resources provide a comparative advantage in processing, manufacturing, and beneficiation through mining value chains,” he told attendees on Tuesday.
The Deputy President said while the economic growth of the sector is important, its transformation is equally important, to the extent that it is inclusive of women, youth, and other marginalised groups in society.
Crucial to combine agricultural development with mining, Indaba hears (Engineering News)
Africa is going to have a huge amount to do to help solve the world’s climate change problems, Toronto-listed Ivanhoe Mines executive chairperson Robert Friedland emphasised in his far-reaching thirtieth address to the thirtieth Investing in African Mining Indaba in Cape Town.
In those 30 consecutive Indaba presentations, Friedland has regularly highlighted the global need to combat climate change along with the critical role that young Africans will play in saving the planet, even though Africa has done the least to damage it.
Last year, humanity experienced the highest temperatures ever recorded. “This is no joke, and it’s not going away,” Friedland told the full-house audience at the event covered by Mining Weekly. In current circumstances, the world’s greatest commodity is, no, not copper, but water, “the most valuable commodity on our planet”, with only 2.5% of it fresh and humanity facing a looming water crisis.
National food loss, waste reduction strategy on the cards (Engineering News)
The Department of Forestry, Fisheries and the Environment’s (DFFE’s) Draft Strategy for Reducing Food Losses and Waste, published for comment in September 2023, will likely result in a newly promulgated national food loss and waste strategy in 2024, says alternative waste treatment company BiobiN South Africa director Brian Küsel.
“Businesses that produce large volumes of food waste will need to make provisions to divert their waste through alternative waste treatment methods, like composting for example. “Numerous waste regulations have come into effect in recent years with the intention to divert more waste from landfill and improve recycling rates. We have seen this with the extended producer responsibility regulations and the waste classification regulations,” he notes.
The food and organic waste stream in South Africa generates about 12.6-million tonnes of food loss and waste a year. The majority of South Africa’s food losses and waste, or 68%, occur in the early stages of production, with 19% occurring during post-harvest handling and storage, and 49% during processing and packaging. Of the food that is wasted, 44% is vegetables and fruits, 26% grains, 15% meat and the remaining 13% consists of oilseeds, tubers and roots.
Despite the hazards, Ghana’s illicit waste trade is booming (ISS Africa)
Volkswagen spends big to counter loadshedding as it becomes sole Polo supplier (Engineering News)
Volkswagen Group South Africa, now trading as Volkswagen Group Africa (VWA), is investing R55-million to generate 3 MW in additional solar energy for its assembly plant in Kariega, in the Eastern Cape, says MD Martina Biene. The panels will be installed on the car ports in the employee car park.
VWA production director Ulrich Schwabe says this means the local arm of the German vehicle maker will have 6.3 MWp in solar energy installed by the end of this year, in an investment totaling R89-million, across its facilities in Kariega, as well as in Centurion and Sandton, in Gauteng.
“Our expectation is that, in 2024, we would have installed more than 6 MW,” notes Schwabe. “This means that, at around lunch time, we can cover 50% of our electricity needs in production. And this is just a first step.” He notes that VWA has the ambition for the Kariega plant to become carbon neutral by 2030.
Kenya: African Development Bank Adopts New 5-yr Plan to boost growth and human development (AfDB)
The Board of Directors of the African Development Bank Group on 14th December 2023 approved a new five-year Country Strategy Paper (CSP) for Kenya. The 2024-2028 CSP focuses on boosting private sector-driven growth through infrastructure development, strategic reforms, and human capital development.
The Bank’s country office said these priority areas will complement each other and build on what has already been achieved with the Bank’s assistance while continuing to support Kenya’s vision of structural transformation and strengthening resilience.
Uganda: Trade Ministry urged to table Consumer Protection Bill (ZAWYA)
The Deputy Speaker, Thomas Tayebwa, has tasked the Minister of State for Trade Industry and Cooperatives (Industry), Hon. David Bahati, to honour his earlier pledge and table the Consumer Protection Bill. The Bill aims at setting standards for the quality, safety, and reliability of goods and also provides remedies in case of non-compliance with those standards as well as prohibiting unfair trade practices.
“Hon. Minister, remember we discussed the Consumer Protection Bill and you said it should be different from the Competition Bill - we need you to table the Bill,” Tayebwa said in his communication during the plenary sitting on Tuesday, 06 February 2024.
The magic of Mali’s digital pharmaceutical registry (UNCTAD)
Mali announced in November 2023 that it was working on the live rapid prototyping and testing of a new online pharmaceutical registry, developed in a joint project by UNCTAD, the country’s health ministry and the national pharmaceutical association.
It will improve the efficiency of the marketing authorization process, ensure the quality and safety of medicines, strengthen transparency and traceability, optimize resources, support the development of the pharmaceutical industry locally and fight against counterfeiting.
Through the online registry, Mali’s pharmaceutical importers, producers and distributors – and the government – will be able to remedy supply chain delays and tackle fraud and accessibility challenges more effectively.
Republic of Equatorial Guinea: 2023 Article IV Consultation (IMF)
Equatorial Guinea’s macroeconomic situation has deteriorated over the last decade due to a secular decline in oil production. In 2022, economic indicators improved somewhat. However, this recovery was short-lived, with the economy projected to fall back into recession in 2023. In the years ahead, the economy would contract further. Without strong policy responses, all the gains in per capita income achieved over the last two decades are expected to fully unravel by 2028. The three-year Extended Fund Facility (EFF) approved in 2019 to support the authorities’ diversification agenda expired at end-2022 without a single completed review. The authorities have nonetheless continued to implement reforms delayed under the program as well as the 2022 Article IV Consultation recommendations.
Video: US Mission in Nigeria is particular about the future of Africa trade - Julie Le Blanc (Businessday Nigeria)
Extensive changes to COMESA competition laws out for comment (Cliffe Dekker Hofmeyr)
Changes to the existing regulations governing the enforcement of competition law in the Common Market for Eastern and Southern Africa (COMESA) have been proposed and shared for comment by the COMESA Competition Commission (CCC). The proposed changes are extensive and were apparently prompted by challenges experienced by the CCC arising from the existing 2004 regulations. Comments on the draft revised regulations are due by 14 February 2024.
“No Central African country, despite the Congo Basin’s enormous natural resource endowments, has an economic and environmental accounting system. An integrated, participatory approach is needed to appropriate this tool and make it a lever for mobilizing project financing”, emphasized Dr. Nebiyeleul Gessese, during the sub-regional dialogue on the theme “natural capital accounting, greenhouse gas inventory, nature-based solutions, sustainable finance mobilisation: concepts, tools, methodologies, winning business models at your fingertips”, as a prelude to the ECA’s 56th session of the Conference of Ministers.
To enrich the calculation of gross domestic product (GDP) with the environmental dimension, Central African countries need to develop economic and environmental accounting systems. The aim of updating GDP is to broaden the fiscal space and improve the positioning of African countries in climate negotiations.
To achieve this, participants in the webinar recommended sub-regional cooperation to promote information sharing between countries, mastery of the concept and the technical and technological requirements associated with it. We will need to invest in the adaptation and harmonization of legal frameworks in order to link them to climate challenges, the design of measurement tools that will facilitate the qualification of statistically quantifiable assets, and capacity building through targeted training of stakeholders according to the role expected of each of them.
Trans-Kalahari Railway will boost regional trade and connectivity (Windhoek Observer)
In a decisive effort to bolster and advance regional trade and connectivity, Namibia and Botswana are moving closer to the realization of the Trans-Kalahari Railway project. This ambitious initiative aims to create a direct rail link between the Port of Walvis Bay and Botswana, extending further to the Southern African Development Community (SADC) region. The project was discussed during a recent Joint Ministerial Committee Meeting in Swakopmund.
By leveraging the strategic position of the Port of Walvis Bay, the project aims to offer a more efficient and cost-effective route for cargo destined for Botswana and beyond, thereby enhancing the economic integration of southern Africa. The Trans-Kalahari Railway is set to be implemented through a develop, operate, and transfer (DOT) model. This approach allows private investors to recoup their investments over time, making the project more attractive to potential financiers.
In Africa’s Free Trade Area, Investment In Pharmaceuticals Means Impact And Profit (Africa.com)
Countries across Africa, a continent which struggled to gain equal access to vaccines and that imports the majority of its packaged medicines from abroad, know all too well the importance of a strong domestic pharmaceutical industry and trade. Total demand for packaged medicines in Africa is worth around $18 billion annually, of which 61% is imported and 36% is locally produced and not traded. Just 3% of demand is met by intra-African trade. Now, under the newly active African Continental Free Trade Area (AfCFTA) agreement, Africa’s pharmaceutical and medicine trade is about to receive a significant boost — one fueled by intra-African trade, alleviating some of African states’ reliance on outside economies.
According to a new report by the World Economic Forum, AfCFTA: A New Era for Global Business and Investment in Africa, the pharmaceutical industry is likely to be among the prime beneficiaries of the introduction of frictionless trade in Africa. The industry’s high product complexity means there are tremendous opportunities to invest in local value chains for goods such as packaged and unpackaged medicines, vaccines, medical instruments and bandages — all of which have high local valued added potential — and the AfCFTA will open the possibility of meeting local demand locally as well as make it easier to overcome production barriers in a short time frame.
Mali, Burkina Faso and Niger want to leave Ecowas. A political scientist explains the fallout (The Conversation)
Mali, Burkina Faso and Niger have sent Ecowas, west Africa’s main political union of 15 countries, a formal notice of their withdrawal from the bloc. The three countries are governed by military rulers who have overthrown democratically elected leaders since 2021.
The three countries have given three main reasons. First is what they call the “illegal, illegitimate, inhumane and irresponsible sanctions” imposed on them for truncating their democracies. Second is the failure of Ecowas to assist them in their “existential fight against terrorism and insecurity”. The juntas have also argued that Ecowas has deviated from the founding principles of the organisation and is now controlled by foreign powers.
The main impact will be on trade and economic development. Ecowas is primarily an economic community and the loss of any member will affect trade and economic development. The three countries collectively account for 8% of the US$761 billion Ecowas gross domestic product (GDP). In 2022, the total trade volume from the Ecowas region totalled US$277.22 billion. The concern is that the exit of these countries could affect the flow of goods and services in the bloc.
Mali says it will not respect ECOWAS treaty’s withdrawal notice period (Reuters)
Mali said on Wednesday that it would not wait a year to leave the Economic Community of West African States (ECOWAS), as is required by the bloc’s treaty. Mali and its neighbours Niger and Burkina Faso, all run by military juntas, announced last month that they were immediately leaving ECOWAS, West Africa’s main political and economic bloc, reversing decades of regional integration.
In a statement posted online, Mali’s foreign ministry said that ECOWAS had violated its own texts by closing its borders to Mali when it imposed sanctions on the military regime. “Consequently, the Government of the Republic of Mali is no longer bound by the deadline constraints mentioned in Article 91 of the Revised Treaty,” the statement said.
Video: Africa’s free trade area under threat as ECOWAS shrinks (Businessday Nigeria)
First Africa Coffee Week Momentous Occasion for Elevating African Coffee to New Heights: IACO Chair (ENA)
The African Fine Coffees Conference (AFCA) and Exhibition and the First African Coffee Week is a crucial event to elevate African coffee to new heights, Inter-African Coffee Organization (IACO) Chairperson and Agriculture Minister Girma Amente said. The chairperson made that remark today at the opening of the 20th African Fine Coffees Conference and Exhibition and the First African Coffee Week 2024 at the Millennium Hall in Addis Ababa.
Stating that coffee has the power to transform lives, empower communities and drive economic growth, Girma added that it provides livelihoods for millions of small holder farmers and entrepreneurs across Ethiopia and in the continent. By investing in the sector, member countries can reduce poverty by generating meaningful employment and increase household incomes, he pointed out.
The Africa Coffee Week offers a great opportunity to provide the platform for effective dialogue on increasing coordination and collaboration between the governments and the private sectors of the African coffee producing countries and the global stakeholders representing coffee producing countries, the secretary general stated.
BRICS: Growing in strength and stature (Financial Express)
BRICS brings five of the world’s largest developing countries (Brazil, Russia, India, China and South Africa) together on one platform to review and assess ongoing global developments that could have an impact on 41 percent of the world population, 24 percent of global GDP and 16 percent of global trade.
Seen as emerging markets, the BRICS member states have sought to act as a counterbalance to traditional Western influence by establishing deeper ties between themselves and through cooperation on economic expansion, including trade.
2024 has started off with a bang with five more countries – Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates -joining this grouping as full members from January 1. Argentina was also approached to join, but hasn’t done so thus far. However, 34 other countries have expressed their desire in principle to join.
Last month, Russian President Vladimir Putin issued an agenda statement on assuming the BRICS chairmanship. He said Russia’s focus would be to ensure “positive and constructive cooperation” between all members.
E-commerce negotiators engage in first review of Chair’s text (WTO)
At the first round of e-commerce negotiations in 2024, held from 29 January to 2 February, the co-convenors of the talks — Australia, Japan and Singapore — welcomed participating members’ willingness to work in the coming months on the basis of the text circulated by the co-convenors in mid-January. The text reflects the co-convenors’ judgement on where consensus is most likely to be achieved for a future e-commerce agreement.
UNCTAD urges reforms on global debt architecture amid rising debt distress (UNCTAD)
In the wake of the COVID-19 pandemic, developing countries’ external sovereign debt – funds borrowed in foreign currency – increased by 15.7% to $11.4 trillion by the end of 2022. The mounting debt levels are further complicated by the diversity of lenders and financial instruments.
Equally alarming is the surge in debt servicing costs. Low-income and lower-middle-income countries – also referred to as frontier markets – that borrowed when interest rates were low and investors keen are now spending around 23% and 13% of their export revenues, respectively, to repay their external debt.
“To put this in perspective, after World War II, the share of export revenue going into debt servicing for Germany was capped at 5% to aid West Germany’s recovery,” says Anastasia Nesvetailova, head of UNCTAD’s macroeconomic and development policies branch.
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Energy shortage presents mining industry with opportunities, pivotal choices (Mining Weekly)
The energy challenges facing mining companies in South Africa have given rise to significant opportunities, strategic management consulting firm Boston Consulting Group partner Rudi van Blerk says. Already, many of these companies have seized these opportunities, capitalising on the unique advantages offered by the country’s current unstable economic and political landscape, he adds.
“The primary advantage lies in the simultaneous opportunity for the enhancement of access to reliable electricity, decarbonisation and increased affordability of energy. This integrated approach allows mining companies in South Africa to address these three elements collectively, a prospect not always feasible in other global regions where these aspects often conflict, necessitating trade-offs,” he tells Mining Weekly.
Initial signs that energy sector is stabilising; logistics to take longer (Engineering News)
The domestic mining industry is looking at 2024 as a year of stabilisation, rather than growth, says Minerals Council South Africa CEO Mzila Mthenjane. The industry continues to face persistent challenges such as loadshedding, an ailing logistics sector, and a declining commodity market. Mthenjane spoke at a Minerals Council media briefing, held on Monday morning ahead of the Investing in African Mining Indaba 2024 in Cape Town.
Council data, released on Monday, shows that the mining industry’s contribution to South Africa’s gross domestic product declined to 6.2% in 2023, down from 7.3% in 2022. Total primary sales dropped from R883.5-billion in 2022, to R786.2-billion last year. Overall, mining input costs in South Africa increased by 8.6% year-on-year in 2023 – well above inflation – softening from 13.8% in 2022.
Energy Council welcomes IRP extension, calls for strong reform message in SoNA (Engineering News)
Energy Council CEO James Mackay has welcomed the decision of the Department of Mineral Resources and Energy to extend the comment period for the draft Integrated Resource Plan (IRP) 2023 by a month and has also called on President Cyril Ramaphosa to use his State of the Nation Address (SoNA) to emphasise government’s commitment to “open and robust debate on national energy policy”.
Mineral Resources and Energy Minister Gwede Mantashe used his Mining Indaba address on February 6 to announce that the IRP comment period had been extended to March 23 from February 23 to “allow maximum participation in this process”. However, he refrained from initiating public hearings, which some commentators have called for given serious concerns over the assumptions and modelling used to produce the draft document.
“Our reality is that business confidence is near historic low levels resulting in continued reluctance to make the much-needed capital investment required to grow our economy and create jobs. “It is well accepted that the majority of future energy investment will come from the private sector, so building a national energy vision that has the buy-in of the public and private sector is critical.”
Angola’s diamond sparkle brightened by new De Beers deal (Engineering News)
Diamond mining and marketing company De Beers is to collaborate with Angola on opportunities to increase diamond production, support alluvial mining sector and enhance social development for the benefit of Angola’s citizens. De Beers on Tuesday signed a memorandum of understanding (MoU) with Angola’s National Mineral Resource Agency, Angola’s State-owned Endiama diamond company, and Angola’s State-owned Sodiam diamond trading company, to support these objectives.
“Angola continues to set an example as a country that has reformed its prospects through enhanced transparency, adoption of internationally recognised best practices and a business-friendly investment environment,” De Beers CEO Al Cook highlighted following the MoU signing at the Investing in African Mining Indaba under way in Cape Town. “This is a strategic partnership with the objective of increasing diamond production in Angola to contribute towards the socio-economic development of our country,” said Endiama CEO Ganga Junior.
Progress in the nation’s recovery and rebuilding documented in summary five-year review (SAnews)
The Presidency has released a five-year review publication that documents the strides made in South Africa’s recovery and reconstruction since 2019, delving into the transformative initiatives undertaken by the Sixth Administration, specifically targeting the pressing challenges confronting the nation.
‘Leave No One Behind 2024 – A Five-Year Review’, which was released on Tuesday, outlines in summary form the progress made in growing the economy and jobs; fighting corruption; tackling poverty; developing human capital; providing quality health care for all; fighting crime, violence and instability; making communities safer, and investing in infrastructure.
Kenya: Power demand could overtake generation by 2027 (Business Daily)
Electricity demand in Kenya could exceed the generation capacity by 2027 unless production increases to catch up with usage and avert power shortages that might lead to load shedding and rationing. The International Energy Agency (IEA) projects that the electricity demand growth rate will accelerate to an average of 5.7 percent between 2024 and 2026, meaning that Kenyans could consume more than 13,055 gigawatt-hours (GWh) by 2027. This will outpace the growth rate of electrical energy generation, set to slow down after Kenya changed its policy on buying electricity from independent power producers last year.
Kenya to acquire 300 SGR wagons by end of February (Business Daily)
Kenya has received fifty new standard gauge railway (SGR) wagons that are aimed at boosting the transport of cargo on the Chinese-built line. The wagons, procured for the Madaraka Express SGR freight service, were received on Monday by the Transport Cabinet Secretary Kipchumba Murkomen. A second batch of 250 wagons is expected to dock at the port of Mombasa later this month having been loaded at the Tianjin port in China towards the end of last month, said Mr Murkomen.
“Railway transport is a key enabler of the aspirations set out in our country’s long-term development blueprint, Vision 2030,” Mr Murkomen said. This is the first time new wagons have been added since the launch of SGR in May 2017.
Somalia joins Kenya, Rwanda in banning single-use plastics (Business Daily)
Somalia is the latest African country to ban single-use plastics, potentially boosting the growing campaign to limit the use of non-biodegradable packaging material in the war against global warming. A decree issued on Thursday by the Ministry of Environment and Climate Change indicated that the country will stop single-use plastics from June 30, 2024, providing a five-month grace period for importers and users to adjust.
“All businesspeople engaged in bag importation, manufacturers, retailers and commercial establishments within the country are hereby notified that as of June 30th, 2024, the importation and use of single-use bags shall be prohibited,” read a statement issued by the Ministry. Somalia said the grace period should also give firms involved in the production or importation of plastics time “to explore environmentally friendly alternatives to plastic bags” and that it will work with stakeholders to identify options.
Tanzania ranks second in EAC in latest graft survey (The Citizen)
Tanzania is ranked the second least corrupt country in the East African Community (EAC) region after Rwanda, according to the Corruption Perceptions Index (CPI). The 2023 edition of the CPI released by Transparency International (TI) recently ranks Tanzania as the second least corrupt country in the region with a score of 40 behind Rwanda, which scored 53. Tanzania has seen a slight improvement from 38 points in 2022 and is ranked position 87 out of the 180 countries and territories assessed.
The report puts Somalia and South Sudan at the bottom of the region, where they scored 11 and 13 respectively. However, Seychelles, Botswana, and Cape Verde continue to lead as shining examples of the least corrupt counties in Sub-Saharan Africa.
State increases cotton prices by 38pc to woo more farmers (Business Daily)
The government has announced a 38 percent price increase in the purchase of cotton as it moves to entice more farmers to return to the crop as part of a plan to double production to export to the US market. State Department of Industry Principal Secretary (PS) Juma Mukwana said last week the government had allocated Sh60 million to support local farmers to increase the acreage under production from 40,000 in 2023 to 103,000 ahead of long rains in the 24 cotton-growing counties. The PS said that the government has also acquired 60 metric tons from Togo for seed multiplication to address acute cotton seed shortages.
Namibia urged to push forward with Geingob’s green hydrogen dream (The Namibian)
Business mogul Sven Thieme says there is a need for the current administration, now led by president Nangolo Mbumba and other leaders, to drive former president Hage Geingob’s dream of creating a synthetic energy hub in Namibia. He says Geingob’s dream for a prosperous Namibia that benefits from its resources and is driven by locals is still achievable, bearing in mind the recent oil discoveries. Geingob, who died on Sunday at the age of 82, is the architect of the multibillion-dollar green hydrogen drive that has attracted several investors from Europe and other parts of the world.
Malawi’s Plan to Create a Stable and Sustainable Economy (IMF)
Stagnant growth, unsustainable debt, and the adverse effects of multiple shocks, including an outbreak of cholera and Cyclone Freddy last year, have compounded Malawi’s economic challenges. The IMF Executive Board recently approved a $175 million Extended Credit Facility (ECF) arrangement that aims to support the government’s commitment to economic reforms that are designed to jumpstart inclusive and sustainable growth.
Malawi has struggled to sustain growth and to reduce poverty and food insecurity for decades, despite large inflows of official development assistance. The past three years have been particularly difficult. Sizable external emergency financing—about $690 million in the past three years from the IMF and the World Bank alone—was extended.
The devaluation was a difficult policy decision and imposed short-term hardship on the population. For a long time, Malawi has been importing more than it exports by borrowing abroad. As borrowing became difficult, foreign exchange shortages emerged. The first step in easing this imbalance was to allow the exchange rate to be more in line with demand and supply. Going forward, it will be important to facilitate a market-clearing exchange rate on an ongoing basis. Sustainable levels of fiscal and current account deficits would help stabilize the exchange rate and prices.
Angola: Modernization of Income Taxation (IMF)
South Sudan: Strengthening Budget Execution (IMF)
UK reaffirms trade, investment, and economic commitments to Ghana (GOV.UK)
Minister for Development and Africa, Rt. Hon. Andrew Mitchell MP, said: “I am immensely proud of the UK-Ghana Business Council and what we have delivered together. Today we celebrate the success of a new partnership in the automotive sector, and a new Green Cities and Infrastructure programme, which will help mobilise climate finance and of course, exciting ambitions for our relationship on science, technology, and innovation.”
The Minister recognised the significance of the £5 million multi-country ODA funded bilateral technical partnership on animal health between the UK and countries in Africa, including Ghana. This was during a meeting with the Minister for Food and Agriculture, Dr Bryan Acheampong.
AfDB begins disbursement of $540 million Agro-Industrial Funds nationwide (Nairametrics)
African Development Bank (ADfB) has commenced the first phase of the disbursement of $540 million Agro-Industrial Funds for the development of Special Agro-Industrial Processing Zones (SAPZs) in the country. The Senior Special Adviser on Industrialization to the AfDB President, Prof. Banji Oyelaran-Oyeyinka disclosed this on Monday when a delegation of the bank and that of the United Nations Industrial Development Organization (UNIDO) presented their separate reports on the status of projects being executed in Nigeria to Vice President Kashim Shettima at the Presidential Villa. The fund Is part of the Nigerian government’s effort to ensure food security in the country.
Making AfDB’s presentation to the Vice President, Oyelaran-Oyeyinka said, “The Special Agro-Industrial Processing Zones (SAPZ) is an initiative of the African Development Bank that is aimed at turning the rural landscape into economic zones of prosperity and harnessing the power of commercial agriculture and food.”
Earlier, Nairametrics reported that the African Development Bank (AfDB), alongside the Islamic Development Bank (IDB) and the International Fund for Agricultural Development, said that they have voted $1 billion to further deliver special agro-industrial processing zones in 24 States of Nigeria. The $1 billion pledge is in addition to an initial $520 million voted by the development partners for the development of eight special agro-industrial processing zones in Nigeria.
Nigeria Renews Suspension Of Commercial Flights To Niger Republic Amid ECOWAS Sanctions (Sahara Reports)
The Nigerian government has renewed the ban of commercial flights from Niger Republic to Nigeria and from Nigeria to its northern bordering country in accordance with an Economic Community of West African States (ECOWAS) resolution. This was following an ECOWAS decision passed in response to the events in Niger Republic on July 26, 2023, when the democratically elected President, Mohamed Bazoum, was deposed in a coup and replaced by a military junta commanded by General Abdourrahamane Tchiani. The directive stated, “By ECOWAS resolutions, all commercial flights from Niger to Nigeria, or from Nigeria to Niger, or from Niger overflying Nigeria, or any state overflying Nigeria to Niger are suspended.”
CSOs Recommend Dialogue to Mitigate Disintegration of ECOWAS (Arise News)
A coalition of Civil Society Organisations, has recommended dialogue as a solution to curb the seeming disintegration of members of the Economic Community of West African States, and the restoration of democratic rule in Niger, Mali and Burkina Faso. They made this recommendation during a one-day media interactive session, on Monday in Lagos State, to discuss and proffer solutions to the disintegration currently going on among members of the ECOWAS.
“It is imperative for Niger, Mali and Burkina Faso, and indeed the rest of the member states of ECOWAS to have a deep reflection over the collective milestones of the regional integration collectively achieved, including peace missions to member states; free mobility of people, goods and services; trade enhancement through the removal of customs duties and tariffs on commodities; as well as collective infrastructural development efforts such as the West African power pool leading to the construction of Diama and Manatali dams in Senegal and Mali respectively.
“At a time when the region is advancing discussions of a single market to further boost trade and development, it is completely disheartening to see leaders shun the channel of diplomacy and dialogue and instead attempt to disintegrate the community.”
Explainer: Why Mali, Burkina and Niger are leaving Ecowas (The East African)
EALA assess policies on Genetically Modified Organisms among member States (New Vision)
The East African Legislative Assembly’s Committee on Agriculture, Tourism and Natural Resources has commenced a week-long mission for an assessment of policies and laws on Genetically Modified Organisms (GMOs) within the East Africa Community’s partner states. The exercise which kicked off on February 4, 2024, will end on 9. This ongoing assessment will cover the Republics of Uganda, Kenya, Burundi, Rwanda, South Sudan, and the United Republic of Tanzania. The Committee will consider undertaking a similar activity in DRC in the future.
The EAC Agriculture and Rural Development Policy (EAC ARDP) aims to attain food security through increased agricultural production, processing, storage, and marketing. This Policy recognizes the importance of eliminating hunger and ensuring sustainable food security within the region as a critical step to eradicating poverty and consequently a stimulus for rational agricultural development and realization of the aspirations of the Treaty establishing the EAC.
The main objective of these activities is therefore to assess the policies and laws of Partner States on Genetically Modified Organisms (GMO) and to make appropriate recommendations to the Council of Ministers on this matter.
Abebe Aemro Selassie Media Roundtable (IMF)
Q: How do you evaluate the growing competition between international players for influence in Africa and for African resources? Do you consider that there is a risk of fragmentation at the continental level, or is this competition somehow jeopardizing the integration effort? Because I think that you can see some results of that competition already.
Mr. Selassie: Thanks, I think, there often tends to be, outside of the region, a sense that Africa belongs to one side or another. When I speak with policymakers, they are much more pragmatic about things, what they are doing often is in the self-interest of their people, their country. Within the region, I think they see countries wanting to maintain as broad a set of trading and diplomatic relationships as possible, rather than wanting to be seen to be belonging in one camp or another. I hope that, in many cases, the region has gone beyond the kind of what used to happen in the 1980s, for example, where countries align themselves with one side or another or forced to, I should say. And I think now the region being an influential voice in international forum, I think there’s much more scope for countries to have a range of partners depending on, self-interest rather than beginning to view, belonging to one camp or another. It has indeed been the case that we have seen in some countries, changes, and alignments. But I think this is part of the course. But in the vast majority of countries, I see them maintaining a broad range of engagements with the international community.
‘Incognito’ fishing vessels deny Africa $11bn in annual revenues (The East African)
Illegal, unreported and unregulated fishing costs Africa up to $11.49 billion annually, with over 75 percent of the world’s industrial fishing vessels operating “incognito.” According to satellite images recorded in the past three years and published in the Nature Journal by researchers from Global Fishing Watch, the University of Wisconsin-Madison and Duke University, most vessels don’t broadcast their location and are not detected by monitoring systems. As a result, the world has no clear picture of who fishes what.
In a new study, researchers have used machine learning and satellite imagery to create a global map of large vessel traffic and offshore infrastructure. The survey articulates the challenges in managing natural resources in Africa such as protected marine areas, with many of the unmapped vessels said to engage in illegal fishing.
Rare earths prices seen rebounding in second half of 2024 (Mining Weekly)
Rare earth prices have likely bottomed out and are poised to rise later this year on demand from electric vehicles (EVs) and wind power and as dominant producer China is expected to pull back on expanding output quotas, analysts said. Rare earths are a group of 17 elements used in products from lasers and military equipment to magnets found in EVs and consumer electronics. Prices surged to their highest in a decade in 2022 only to plunge last year on increased production in China and slower-than-expected demand growth crippled by the country’s patchy post-pandemic economic recovery.
“We expect extra supply to be more or less cleared by end-2024, as demand catches up with supply through continually increasing electric vehicle sales and wind turbine production,” said analyst Willis Thomas at CRU Group.
Unlocking Africa’s Trade Potential: Harnessing the Power of AI (Techeconomy)
In recent years, the global community has witnessed significant advancements in artificial intelligence (AI) and its potential to revolutionize various industries. As the African continent endeavours to unleash its full economic potential, AI has emerged as a critical tool for empowering trade and fostering growth. By harnessing the power of AI, Africa can significantly enhance its trade capabilities, foster economic development, and propel itself to the forefront of global commerce. AI has the potential to revolutionize trade in Africa in various ways, unlocking its economic potential. Here are some examples and data to support this.
Promoting International Investment by Small and Medium-sized Enterprises (UNCTAD)
Small and medium-size enterprises (SMEs) are important contributors to economic development, representing a substantial portion of businesses globally. Global markets offer SMEs opportunities for growth, diversification and resilience. Access to international markets enables them to tap into new customer bases, gain exposure to diverse business practices and foster innovation through cross-cultural collaboration.
However, SMEs encounter significant challenges that hinder their investment overseas. SME investors, relative to large Multinational Enterprises (MNEs), face distinctive bottlenecks including financial and information constraints, difficulties in dealing with regulatory complexities and, importantly, an international investment environment in which facilitation and investment promotion institutions are often geared towards attracting large-scale investment projects. Foreign direct investment (FDI) by SMEs has been in decline in recent years: the number of outward greenfield investment projects in 2022 was only about a quarter of that in 2015.
Based on original empirical studies in different developing regions and selected developed economies, this report discusses how to reduce the common investment policy bias in home and host countries towards large MNEs, the role of SMEs in South–South and intraregional FDI, and ways and means to maximize the development impact of SME FDI. It introduces a new framework to assess the relevance and effectiveness of existing investment policies for the promotion of SME investment and presents policy options to facilitate overseas investment by SMEs and reduce the existing policy bias
Aid-for-Trade Global Review 2024 to look at mainstreaming trade into development strategies (WTO)
The biennial Global Review serves as a global platform to highlight areas where developing economies and least developed countries (LDCs) need support to overcome supply-side constraints limiting their participation in global trade. It helps galvanize support for tackling these issues so that these countries derive the maximum economic benefits from trade.
Zambia said that the development of standards to support industrial and trade growth and increase the participation of micro, small and medium-sized enterprises (MSMEs) in the economy are high on its agenda. Trade will play an essential role in supporting Zambia’s future graduation from LDC status as well as its efforts to mitigate the effects of climate change.
The Economic Community of West African States (ECOWAS) shared an overview of its “E-Commerce Strategy and Implementation Plan 2023-2027” launched in July 2023, under which measures related to e-commerce will be adopted at the regional level to create jobs and help diversify economies.
A Brazilian Approach at the G20: Building a Just World and a Sustainable Planet (Modern Diplomacy)
World’s Best Trade Finance Providers 2024 (Global Finance Magazine)
Driving in the FTA Lane: India is in talks with 50 nations, but how many pacts will it sign in 2024? (The Economic Times)
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Transnet says rail volumes recovered slightly in the last quarter of 2023 (Engineering News)
Transnet says it has witnessed signs of recovery on the North Corridor, which was able to improve RBCT export coal volume tonnages from below one-million tonnes weekly on average to 1.1-million tonnes by December 2023. Transnet is forecasting railing 49-million tonnes of export coal to RBCT against a declared capacity of 60-million tonnes for the financial year ending March 2024.
Capacity gaps slow competitiveness of South Africa’s ports (Africanews)
As container ships re-route their voyages away from the Red Sea, a windfall was anticipated for South Africa’s ports. Instead, capacity challenges mean there is not enough space for ships to dock, let alone refuel. South African container ports rank among the most inefficient according to the World Bank, owing to infrastructure gaps. Port operator Transnet saw its losses top $300 million in 2023, with port and rail failures estimated to be costing the economy up to $19 billion a year.
Energy community must scrutinise IRP 2023 (Engineering News)
The South African Wind Energy Association (SAWEA) is urging the energy community to critically analyse the revised draft Integrated Resource Plan 2023 (IRP 2023) to provide constructive inputs that will improve the country’s energy future. SAWEA says it appreciates the information sessions hosted by the Department of Mineral Resources and Energy (DMRE) to delve deeper into the plan and its underlying assumptions, which have provided much-needed context and additional information, ensuring a common understanding across various interpretations.
“South Africa needs to adopt a holistic approach to energy planning, integrating multiple technologies that make sense for the country’s energy needs. This requires the system operator to redefine business strategies to ensure an affordable, safe and reliable energy supply, not only for the present but for generations to come,” SAWEA CEO Niveshen Govender says.
Sugar price cap brews a storm in Tanzania (The East African)
Tanzanian sugar regulators are embroiled in a feud with producers as they seek to enforce price caps on the commodity, amid a nationwide shortage. Retail sugar prices have gone up twofold from an average of Tsh2,300 ($0.91) in November to between Tsh4,000 ($1.58) and Tsh6,000 ($2.37) per kilogramme, with fingers being pointed at factory owners, importers and traders for the artificial shortage.
Across the EAC, sugar prices average about $1.30 per kilo in Kenya, despite a government waiver on import duty from January last year; $1.35 in Uganda, $0.44 in Rwanda, $0.83 in Burundi, $1.92 in DR Congo, $2.36 in South Sudan and $3.14 in Somalia.
Kenya’s agricultural sector is underfunded, experts say (The Standard)
Kenya has lagged behind in achieving the Maputo Declaration to allocate at least 10 per cent of the national budget to agriculture. Agriculturists and lawmakers meeting in Mombasa on Friday said the country’s agricultural sector was underfunded, off track, and made no efforts to achieve the 2003 continental commitment.
The Parliamentary Committee on Agriculture and Livestock chairperson Dr John Mutunga said Kenya’s agriculture sector requires an annual budget of Sh360 billion to be sustainable and address food security. He said Kenya’s current annual budget of Sh60 billion to the sector was insufficient to ensure sustainable food and crop production. Mutunga spoke in Mombasa during a national parliamentary retreat in Mombasa hosted by AGRA that brought members of the Senate National Assembly Committees to deliberate on the Maputo and Malibu declaration.
Dr Mutungu, MP for Tigania West, said that Kenya’s agricultural sector needs a 10 per cent increase in funding to increase production of food commodities instead of importing. “Kenya has been off-track so far in the implementation of the Maputo declaration and has only been able to meet one of two targets every year. We have countries like Rwanda, Ethiopia, and Tanzania which have invested in agriculture, and their economies are growing by double digits,” said Dr Mutunga.
Kinshasa reviews mining deal with Chinese firms to seal loopholes (The East African)
The Congolese government says it has rectified a controversial mining deal it had signed with China, potentially upending what had looked like a source of bad relations between Kinshasa to Beijing. The new deal, officials said this week, is a result of open negotiations with Beijing. It came 16 years after the two sides signed what the Congolese authorities had called “the contract of the century.”
But since 2008, especially under the President Felix Tshisekedi administration, officials have often accused China’s of exploitation, arguing they mined critical metals from the DRC without being compelled to give back to local communities. On January 29, officials said the contract had been amended to provide specific obligations to Chinese mining firms, including improving local infrastructure for the Congolese.
Traders, truckers seek protection from attacks in South Sudan (The East African)
AfDB lends $40 mn to Mozambique for Maputo rail corridor (Africa Aviation News)
The African Development Bank (AfDB) approved a $40-million corporate loan to the state-owned enterprise Mozambique Rail and Port Authority (CFM), to enable CFM to finance the purchase of rolling stock (locomotives, wagons and tank containers) for its main corridor, the Ressano Garcia railway line, which generates more than 90% of rail traffic volume and comprises 70% of CFM’s overall rail transport volume. It will strengthen intra-African trade and regional integration by increasing capacity and the volume of goods transported from neighbouring countries by the most efficient route, with Mozambique serving its neighbouring countries of South Africa, Eswatini, Malawi, Zimbabwe, and Zambia, providing them with a port for exporting their products and importing goods.
Institutional Capacity Building Project for Private Sector Development, which was implemented in Angola between 2014 and 2023, delivered better-than-expected outcomes as shown in the recent Project Completion Report published in January 2024. The growth rate of Angola’s non-oil exports, a key project target, reached 5.9% in December 2022 and 4.9% in June 2023 against targets of 2.8% set in 2018 and 5% (revised) set in 2020.
Financed by a USD 24 million loan from the AfDB Group, the project was designed to assist private sector growth and diversification of the Angolan economy. Along with a rise in non-oil exports, the project also drove a remarkable surge of business start-ups in Angola, which rose from 2,700 in 2012 to 38,715 in 2022. During the same period, the number of cooperatives with access to services rose from 240 to 12,870. In addition, 23,776 farmers, including 3,148 women, worked in coffee production.
GRA pushes simplified tax regime for informal sector (The Business & Financial Times)
The Ghana Revenue Authority (GRA) is pushing a simplified tax regime for the informal sector. The objective is to streamline taxation for the sector, making it easier and more convenient for small businesses – especially those operating in rural and remote areas – to fulfil their tax obligation to the state, according to officials of the tax collection agency.
The matter came up at the Public Accounts Committee (PAC) hearing last week, when GRA appeared before the Committee to address infractions in the Auditor-General Report on the Public Accounts of MDAs for the year ended 31st December, 2022. Commissioner-Domestic Tax and Revenue Division, GRA, Edward Apenteng Gyamerah, told the Committee that the authority had difficulties in collecting tax and recovering tax debts in some instances.
“I think it is one of the reasons we are considering simplification of our tax laws, so as to deal with issues of these nature in the informal sector. Currently, as a country we have only one law dealing with all sectors – and it is an issue we are seeking to address. We need the support of us all to come up with simplified tax laws to deal with the informal sector,” Mr. Gyamerah told the Committee.
Ghana wants to make importing food like rice and tomatoes more costly: expert explains why it’s a bad idea (The Conversation)
Ghana, like many other developing nations, relies heavily on imports of food and consumer goods to feed its population. For instance, Ghana imports 55% of the rice that is consumed locally. The country’s import dependence is primarily a consequence of the production of low-value primary products without substantial value addition.
To forestall over-dependence on foreign goods, the government has proposed a trade restrictive policy via a legislative instrument on 22 major items. It has justified the policy on the grounds that it wants to reduce Ghana’s dependence on foreign goods by making locally produced goods more attractive from a price perspective. In turn, the idea is that this will drive up domestic production.
The list of items includes essential food products such as rice, offal, poultry, cooking oil, fruit juices, noodles and pasta, fish, sugar and canned tomatoes. All are commonly consumed in most Ghanaian households. But imposing constraints on these food items has the potential to escalate food prices, as set out in my recent paper, prompting concerns about potential threats to food security. Restricting imports without ensuring high-quality and competitive domestic products will not lead to consumer preference for locally made goods. What Ghana’s industries need are fewer production constraints and more incentives to compete domestically.
Nigeria’s latest devaluation may be ‘turning point’ in currency reform drive (ZAWYA)
Nigeria’s second currency devaluation in less than a year and new forex rules suggest the central bank is gearing up to let the naira float freely, but a huge backlog of orders for dollars and low liquidity may stall reform momentum, investors and analysts said. Foreign investors in particular will need more convincing that Africa’s biggest economy is finally ditching the controls that have for long distorted its currency market, making the country of 200 million people less attractive to foreign capital.
Nigeria is struggling with a record amount of government debt, high unemployment and power shortages that have contributed to years of anaemic economic growth. Oil output is shrinking, and rampant insecurity means swathes of the countryside are outside government control.
In his first days in office last year, President Bola Tinubu scrapped a costly fuel subsidy and lifted some forex controls. But the reform drive appeared to lose steam as the naira continued to weaken without central bank intervention.
Nigeria and Angola to strengthen trade ties (Voice of Nigeria)
As Africa continues to seek ways to boost intra-Africa trade, the need to address trade barriers and streamline visa processes has been emphasised to foster smoother trade ties between Nigeria and Angola. The President, Angola-Nigeria Business Council, Mrs Fifi Ejindu, stressed this at the Angola-Nigeria Diplomatic-Business Investment meeting in Lagos, South West Nigeria.
Mrs. Ejindu, emphasised that more active and creative economic and commercial relations between the two countries, reinforces the potential for progress for mutual benefits. Ejindu said that “the engagement of Nigerian investors and the anticipated business activations in Angola indicated growing interest and participation in the trade initiatives discussed.”
Can Romania-Tanzania alliance grow Dar’s trade in Europe? (The Exchange Africa)
A fresh alliance, Romania-Tanzania, is taking shape, with the European country betting on the East African nation to grow its presence and influence on the continent significantly as it forges “strategic approaches to Africa.” President Klaus Iohannis made the assertion during his recent visit to Tanzania. In a four-day state tour, he engaged with the government and investors in Tanzania’s mainland and the island of Zanzibar. During his visit, at least two Romania-Tanzania agreements were signed by President Iohannis and his counterpart, Dr. Samia Suluhu Hassan.
The European country has recently adopted a “National Strategy for Africa” policy, and this maiden visit by President Iohannis seeks to “intensify political and diplomatic dialogue and open up new prospects for cooperation,” he told the media.
Indaba to place spotlight on local mining industry (SAnews)
The 2024 Investing in African Mining Indaba will place the spotlight on the significant potential of the mining sector in fostering economic expansion and employment opportunities, said President Cyril Ramaphosa. “This week’s Mining Indaba in Cape Town will showcase the enormous potential of the mining industry to drive economic growth and job creation. The actions underway to improve the logistics system will help us to unlock this potential, given that mining companies depend on the rail network and ports to compete in global markets.
“From the work already underway, we have shown that it is possible to overcome the barriers to growth by working together in partnership. We are building momentum and have begun to see the results,” the President said in his weekly newsletter on Monday. He emphasised that “as more and more of our products leave the country’s shores, whether to the African continent or other parts of the world,” more companies will thrive, more investment will be made and more jobs will be created.
World Bank Urges Action for Gender Equality in Artisanal and Small-Scale Mining (World Bank)
Women account for about one-third of the artisanal and small-scale mining workforce, which supplies minerals essential to modern technologies and the global energy transition.
Launched today at the annual Mining Indaba Conference, the 2023 State of the Artisanal and Small-Scale Mining Sector report, a collaboration with the international development organization Pact, details gender inequalities in artisanal and small-scale mining (ASM) and highlights actions to improve gender equality and advance women’s participation. It reviews mining laws in 21 countries across Sub-Saharan Africa, East Asia and the Pacific, and Latin America, and draws on primary data from 1,900 participants, contributing unique insights about the deep-seated barriers women face in fully participating in ASM activities and opportunities toward gender equality.
The report advocates for gender-responsive legislation to safeguard women’s rights in mining and build a more sustainable sector. This includes improving mining codes—which often lack provisions to enhance women’s participation—and changing discriminatory property laws and land tenure agreements that hinder women’s ability to own land and access mineral resources for artisanal and small-scale mining.
Fixing logistics architecture key to successful AfCFTA: Ramaphosa (SABC News)
President Cyril Ramaphosa says in order for local companies to take full advantage of the African Continental Free Trade Area (AfCFTA) by exporting goods to the rest of the continent, more focus should be put on fixing the logistic architecture of South Africa. The President encouraged more South African companies to take advantage of the African Continental Free Trade Area and participate in exporting goods into the whole African continent.
Importation of finished goods into Africa slows down AfCFTA takeoff (The East African)
African countries will only benefit from the African Continental Free Trade Area (AfCFTA) if the continent invests in value addition. South Africa’s President Cyril Ramaphosa wondered why Africa is still exporting raw products and importing finished goods that can be produced on the continent.
“Recently, I saw a neighbouring country that had imported bottled water from Switzerland. I said, there is still a long way to go to show that we really trade with ourselves,” President Ramaphosa said on January 31 while launching the AfCFTA Guided Trade Initiative (GTI) in Durban. “A continent that is so endowed with various sources of water, but we still rely on water that we import from elsewhere!” He said the task ahead for the African countries to benefit from Continental Free Trade Area (AfCFTA) is to export value-added products.
“This is the task that we have; the reason for this is clear. We are principal exporters of many other things that we should not be exporting. We export raw materials, and I often say we export dust, rocks and soil. And we sell this to the world and instead of harnessing our oil and minerals for industrialisation,” he said. “We should be saying that we will not be buying all these raw materials from you. You should now be insisting that the raw materials be turned into finished goods so that we buy finished goods from you.”
Tanzania’s Trade Minister Ashatu Kijaji called on countries to co-operate in completing key protocols and other important issues related to dispute resolution when doing business in Africa, when she chaired the two-day 13th meeting of AfCFTA Trade ministers held in Durban.
Measures to kick-start seamless trading under AfCFTA imminent (The Business & Financial Times)
Continental trade agreement to restore historic trade routes (IOL)
PwC outlines six ways to boost intra-Africa trade (Businessday Nigeria)
Olusegun Zacchaeus, partner, PwC Strategy and Practice, West Africa, has highlighted six key ways to transform intra-Africa trade. They are improving the continent’s infrastructure, which requires $130-170 billion annually, strengthening institutional frameworks, investing in upskilling and education at a large scale, promoting well-functioning markets and regional integration, rebuilding fiscal buffers and addressing non-tariff barriers. This was revealed at BusinessDay’s Africa Trade Summit and Investment Summit themed “Reimagining Economic Growth in Africa” on Thursday.
During his presentation, he said one critical factor to both enhance and get the benefit of trade in the continent, is enhancing the quality of infrastructure, especially transportation infrastructure, which requires $130-170 billion annually. “A very key imperative to transforming intra-Africa trade is enhancing the quality of infrastructure, especially transportation infrastructure. This will require $130-170 billion annually,” he said.
He identified other critical factors including strengthening institutional frameworks, investing in upskilling and education at a large scale, promoting well-functioning markets and regional integration, rebuilding fiscal buffers, and addressing non-tariff barriers. “Trade is a pathway to prosperity for Africa, but in the last 10 years, Africa has grown at an average of less than three percent.”
Julie LeBlanc’s Keynote Address at the Business Day Africa Trade and Investment Summit (U.S. Embassy and Consulate in Nigeria)
In 2023, the United States supported and finalized 547 new deals, amounting to an estimated $14.2 billion in two-way trade and investment with African countries. This marked a remarkable 60% increase in both the number and value of deals compared to 2022. These investments have led to tangible benefits for both American and African communities, creating inclusive growth, supply chain resilience, and quality jobs.
Beyond AGOA, the U.S. has initiated several programs to enhance trade and investment with African countries, such as the Strategic Trade and Investment Partnership with Kenya and the $15.7 billion in new investments announced at the U.S.-Africa Business Forum.
East Africa braces for further rise in food, fuel prices over Red Sea crisis (The East African)
East African countries are staring at a fresh rise in food and fuel prices due to the escalating conflict in the Middle East, which continues to disrupt the flow of goods through the Red Sea.
The on-going war between Israel and the Hamas-led Palestinian militant groups in Gaza have intensified insecurity in the Red sea, a seawater inlet of the Indian Ocean lying between Africa and Asia. This is forcing ships to seek alternative but longer and expensive routes away from the Suez Canal, a 193.30-kilometre water canal in Egypt that connects the Mediterranean to the Red Sea.
Last year, the Suez Canal Authority announced that it would raise the transit fees for ships passing the canal by five percent to 15 percent from January 15, 2024. According to the regional business lobby East African Business Council (EABC), the economic impact of the Middle East conflict to the region is going to be “substantial.”
South Sudan to issue East African Community e-passports (Radio Tamazuj)
South Sudan’s Inspector General of Police, General Atem Marol Biar, has directed Maj. Gen. Simon Majur Pabek, the newly appointed Director General for the Directorate of Nationality, Civil Registry, Passport, and Immigration, to initiate the printing of East African Community (EAC) e-passports within the country. Speaking at the reception ceremony for the Immigration chief on Thursday, IGP Gen. Marol stated that the passport samples are ready, urging the directorate to commence the issuance of the EAC digital passport.
“We have partnered with a company to print the East African passport, but it faced sabotage by some individuals. Now is the time to begin printing the passports. Our President is the chairman of the East African Community, and this should be our priority. The samples are available, and they need to be printed. You will receive instructions from the Minister of Interior in line with the President’s directive to commence printing the East African passport,” Marol emphasized.
A Boost To East Africa’s Grain Trade As Pioneering Aflatoxin Decontamination Plants Are Unveiled (Africa.com)
EAC upbeat on local production of antibiotics (The Citizen)
COMESA and IOC Renew Cooperation (COMESA)
World Bank, ECOWAS fund 2m broiler production; initiative to create 300,000 jobs (The Business & Financial Times)
The World Bank and ECOWAS will this year fund the production of two million broilers to reduce Ghana’s poultry imports – which are in excess of US$600million per annum. The programme is being implemented by the West Africa Food System Resilience Programme (FSRP), aimed to increase local poultry production while striving for self-sufficiency in the sector. The project implementer, FSRP, indicates it is currently finalising the review of submissions received under the auspices of ECOWAS, and successful poultry farmers will soon receive support to enhance production.
Approximately three hundred thousand Ghanaians are expected to directly benefit from the project, with over one million estimated as indirect beneficiaries of the US$150million ECOWAS project. The five-year project addresses common natural phenomena affecting food production in the sub-region, aiming to strengthen food system risk management in collaboration with ECOWAS and the Ministry of Food and Agriculture (MOFA). Ghana currently controls 15 percent of national poultry needs, with locals providing slightly in excess of 50,000 tonnes annually.
Burkina Faso, Niger, Mali to decide fate of Ghanaian traders following ECOWAS ‘exit’ (MyJoyOnline)
There’s a looming diplomatic row as Burkina Faso’s Military leader Ibrahim Traoré has disclosed that his country will consult Mali and Niger to take a final decision on whether to allow Ghanaian traders and other West African nationals to do business in their countries. He said a final determination would be made on the matter as consultation would first have to be made by leaders of Niger Mali and Burkina Faso.
The three nations officially announced last week that they were departing from the sub-regional ECOWAS trading bloc. This raised fears from the Ghana Union of Traders (GUTA) which said its members import vegetables and other livestock from Mali Burkina Faso and Niger would be affected. “This thing is going to affect us more than the other member states. We should bypass the ECOWAS to find an immediate solution,” Dr Joseph Obeng, President of the Union told Joy News.
He added “the cross border trading activities that goes on is going to be impacted negatively. Look at the cola nut that we ship to Niger, the onions that we bring from there and the tomatoes that we bring in. “Also consider the bulk of things that the Burkinabes come to buy from us [in Ghana] so definitely it’s going to have a negative impact”.
ECOWAS to lose almost 69 million euros annually due to withdrawal of three countries (Azernews.Az)
The Economic Community of West African Countries (ECOWAS) will lose over about 45 billion West African CFA francs (more than 68.6 million euros) each year due to the withdrawal of Burkina Faso, Mali and Niger from the union, Azernews reports, citing the Minister of Economy and Finance of Burkina Faso, Abubakar Nakanabo. “ECOWAS will also suffer because the transition from 15 to 12 countries [within the association] will inevitably lead to a loss of income,” the minister said in an interview with the AIB news agency.
Investment Policy Review of the West African Economic and Monetary Union (UNCTAD)
Dr Christian Sewordor Mensah: Assessing the African Union’s Achievement of Food Security Objectives (MyJoyOnline)
Food security has been an enduring challenge for many African countries due to a variety of factors such as climate change, limited access to modern agricultural technologies, inadequate infrastructure, and political instability. Recognizing the urgency of addressing this issue, the African Union (AU) has established food security objectives to promote sustainable, resilient, and inclusive agricultural systems. This essay aims to assess the progress made by the AU in achieving its food security objectives, examining the interventions implemented, successes achieved, and areas where further improvement is required.
Laying foundation for digital revolution in Africa’s food systems (Africa Renewal)
According to the 2023 Africa Agriculture Status Report, “Empowering Africa’s Food Systems for the Future,” digital technologies will be key in addressing the three persistent problems in Africa’s agricultural industry — inefficiency, exclusivity, and unsustainability. The report is by AGRA (Alliance for Green Revolution in Africa – an Africa-led organisation that seeks to catalyze agriculture transformation on the continent through innovation.
There is already evidence that Africa’s agriculture is on the way to becoming more efficient, inclusive and sustainable, the report observes. But, in spite of the technological gains, food insecurity is worsening in Africa as chronic undernourishment increases and numerous countries face acute food shortage triggered by a combination of factors, including the Ukraine crisis and climate change. The report itself aptly captures this situation. In 2022, for instance, the prevalence of under-nutrition in Africa was 19.7 per cent, a slight increase from 2021, the report shows.
Onafriq’s vision for a borderless financial world takes root (The Business & Financial Times)
In the ever-evolving landscape of financial technology, Onafriq is at the forefront, championing the vision of a borderless world for financial transactions. This ambitious goal aims to simplify cross-border payments, making them as effortless as local calls. In the heart of this revolution is Ghana, where Onafriq is implementing its mission to eliminate barriers to cross-border transactions.
Working hand in hand with partners, Onafriq is providing a comprehensive platform for clients with business interests spanning not only within Ghana, but also in East Africa. “Our goal is to break down the barriers that have traditionally limited cross-border transactions, allowing businesses and individuals to transact seamlessly across different geographical locations,” says Ike S. Anison, the Country Director of Onafriq, in an exclusive interview with the B&FT.
Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA) has called for a shift in perspective and a more “intentional and targeted use of foreign direct investments and official development assistance, if Africa’s partnership with Europe is to deliver on the promises of shared prosperity.”
Speaking at the 5th European Corporate Council on Africa and the Middle East (ECAM Council) Summit on the margins of the Italy-Africa Conference in Rome, Italy, Mr. Gatete said this shift should include de-risking investments in key sectors that can unlock the full potential of public private partnerships. The Summit was held on the theme: “Creating a better present to build a greater future for Africa: the role of healthcare and investments.”
“Up to 80 per cent of the initiated infrastructure projects across Africa fail at the feasibility and planning stages. African countries are also faced with unfair risk perceptions that deter investors. We need to reverse this trend,” he noted, adding that to address the current severe fiscal pressures that countries are confronted with, new and innovative financing sources that target investments better to get the most of each dollar or Euro invested are necessary.
A 2023 Report by UNCTAD shows that between 2011 and 2022, combined public-private partnerships resulted in lowering interest rates spread by up to 40 per cent in renewable energy projects in developing countries. However, Africa still only attracts 2 per cent of global renewable energy investments today because the business environment remains unfavorable. “De-risking investments in Africa will make the region a globally competitive investment destination with mutual benefits to Europe, Africa, and the rest of the world,” said Mr Gatete.
Africa carriers beat Americas, European peers in traffic growth (The East African)
African carriers’ traffic grew 38.7 percent in 2023, compared with the year before, ahead of Latin and North American and European airlines. According to the International Air Transport Association (Iata) data, the year was marked by a strong industry-wide recovery, with a rebound of domestic and international travel.
“Despite political and economic challenges, 2023 saw air cargo markets regain ground lost in 2022 after the extraordinary Covid peak in 2021. Although full-year demand was shy of pre-Covid levels by 3.6 percent, the significant strengthening in the past quarter is a sign that markets are stabilising towards more normal demand patterns,” said Mr Willie Walsh, Iata director-general. “That puts the industry on a very solid ground for success in 2024. But, with continued —and in some cases intensifying — instability in geopolitics and economic forces, little should be taken for granted in the months ahead.”
It’s time for African countries to shape the WTO, not just sit in it (African Business)
At the 50th anniversary celebration of the origins of the international trade system in 1998 in Geneva, Nelson Mandela in his speech said: “The developing countries must accept that we want to be fully part of the WTO, and that includes improving the management of the world trading system to ensagrure that our economies do develop.”
Currently, 44 African countries are members of the WTO, with nine further countries holding “observer status”; only two are not affiliated with the WTO at all. African countries currently account for 27% of full members. Notably, the vast majority of these countries joined the WTO before China, which became a member in 2001.
Despite this, not much has changed for Africa within the world trading system over the past 30 years. If anything, it has worsened. In 2023, the African continent accounted for 2.7% of world exports. Back in 1973, that share was 4.8%. Meanwhile, the continent’s share of world imports is higher than exports today at 2.9%, but in 1973 it was lower at 3.9%.
I will revive free-trade agreement among Commonwealth countries - Foreign Affairs Minister (Ghana News Agency)
Madam Shirley Ayorkor Botchwey, the Minister of Foreign Affairs and Regional Integration, has pledged to revive the Free-trade Agreement among Commonwealth countries if elected as the Secretary-General of the Commonwealth Secretariat. She said a successful free-trade agreement among member states would enhance integration and participation in global and regional supply chains and boost their participation in the multilateral trading system.
The initiative could also be a model for the World Trade Organisation (WTO) members for a synergic mix of regional and multilateral trade integration as the Organisation struggled to conclude agreements to ensure its revitalisation. Madam Botchwey said this in Accra at a lecture on the topic: “A Vision for a New Commonwealth in a Fast-Evolving World.”
African Union’s entry into G-20 led to debate on UN reforms, says Indian minister Jaishankar (The Straits Times)
India’s presidency of the G-20 grouping provided an opportunity for the developing world to unite at a global forum, said Indian External Affairs Minister S. Jaishankar. He noted that a key achievement at the Group of 20 leaders’ summit in New Delhi in 2023 was the admission of the African Union as a permanent member of the group, which focuses on global economic and finance governance.
Dr Jaishankar made the comments at the launch of a book, India And The Future Of G20: Shaping Policies For A Better World, by the Institute of South Asian Studies (Isas) at the National University of Singapore (NUS). “We are in a singular position of four developing countries having back-to-back presidency of the G-20. We hope to make the most of this,” said Dr Jaishankar at the book launch in New Delhi on Feb 2.
BRICS Driving Emerging New Global Architecture (Modern Diplomacy)
Chair introduces draft text for agriculture negotiations in run-up to MC13 (WTO)
At a meeting of the agriculture negotiating body on 30 January open to all delegations, the Chair, Ambassador Alparslan Acarsoy of Türkiye, introduced a draft negotiating text for members’ consideration. Trade officials present welcomed the draft, which they said could serve as a useful basis for the negotiations among WTO members ahead of the 13th Ministerial Conference (MC13), from 26 to 29 February.
In the area of improvements to market access, the text again suggests that members agree on “modalities” by MC14, with a view to maintaining balance across different negotiating topics. The Chair recalled the mandate to negotiate a “special safeguard mechanism” and noted that members continue to differ on whether progress in this area should be linked to improvements in market access for agricultural goods.
Energy transition: Charting a fair course for fishing fleets (UNCTAD)
Global fishing fleets, powered mainly by fossil fuels such as marine diesel, emit between 0.1% to 0.5% of global carbon emissions, or up to 159 million tons annually, according to the latest available data.
The fisheries sector, crucial for the livelihoods of more than 40 million people worldwide, faces escalating threats from climate change. These include rising sea levels and warming waters that jeopardize fishing ports and deplete fish stocks. The risks are particularly high for developing countries, where small-scale and artisanal fishing prevails. Yet the fishing industry lacks comprehensive global targets and guidelines for transitioning to cleaner energy, a new UNCTAD report highlights.
The report covers a range of motorized fishing operations, from pre-harvesting to landing, and the infrastructure involved. It assesses the opportunities and challenges of adopting alternative fuels, emphasizing the need to ensure a “just” energy transition that doesn’t disproportionately affect vulnerable countries or fishing communities.
“The energy transition of fishing fleets presents a critical and urgent global issue as nations, and particularly developing countries, commit to net-zero targets and climate action,” says David Vivas Eugui, chief of UNCTAD’s ocean and circular economy section.
Growth continuing at a modest pace through 2025, inflation declining to central bank targets (OECD)
Global growth is holding up, while the pace of growth remains uneven across countries and regions, and inflation is still above targets, according to the OECD’s latest Interim Economic Outlook. The Outlook projects global GDP growth of 2.9% in 2024 and a slight improvement to 3.0% in 2025, broadly in line with the previous OECD projections from November 2023. Asia is expected to continue to account for the bulk of global growth in 2024-25, as it did in 2023.
“The global economy has shown real resilience amid the high inflation of the past two years and the necessary monetary policy tightening. Growth has held up, and we expect inflation to be back to central bank targets by the end of 2025 in most G20 economies,” OECD Secretary-General Mathias Cormann said.
Unlocking new crisis response tools to build a more resilient future (World Bank Blog)
FAO Food Price Index down again in January led by lower wheat and maize prices (FAO)