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issue 366 | 23 Aug 2020

Coronavirus (COVID-19)

A non-exhaustive list of recent measures aimed at curbing the spread of Coronavirus (COVID-19)

Africa: The International Air Transport Association (IATA) released new data indicating that the impact of COVID-19 on Africa’s aviation industry and economies has worsened sharply since the previous assessment in April. To minimise the impact on jobs and the broader African economy an accelerated recovery of air transport across the continent is vital. This can be achieved through government action in two priority areas: harmonising the restart of air transport in Africa and stepping up efforts to support the industry.

Source: IATA

Africa: The International Finance Corporation (IFC), a member of the World Bank Group, announced a loan to the West Indian Ocean Cable Company (WIOCC) to help the telecommunications infrastructure provider expand and improve affordable internet connectivity as it continues to serve over 30 countries in Africa. The USD20-million loan is part of IFC’s global USD8-billion fast-track COVID-19 response facility, announced in March to help sustain economies and preserve jobs during the pandemic. IFC’s support will help WIOCC upgrade subsea capacity, including the Eastern Africa Submarine Cable System (EASSy), and roll out terrestrial fiber optic networks across the region.

Source: Biztechafrica

Ghana: Airline operators in the country have asked the Ministry of Aviation to give them at least 14 days’ prior notice after government stakeholders in the aviation sector come to a firm conclusion as to the date for re-opening the air borders. The move, they explained, is to afford them enough time to configure their systems to allow for ticket sales and setting up of routing schedules with neighbouring countries. This will assist in optimising the operations which have gone down for the past five months. This comes on the back of President Akufo-Addo’s announcement that government is working to re-open the borders – depending on the readiness and ability to ensure that every passenger who arrives in Ghana is tested for COVID-19.

Source: GhanaWeb

Malawi: The World Bank has estimated that Malawi’s imports shrunk by 26% in April and May 2020 compared to the same period last year as the economy continues to absorb negative impacts of COVID-19. The bank, in its latest biannual publication, the Malawi Economic Monitor (MEM), also observes that the pandemic has significantly increased the country’s trade and logistics costs, saying the flow of goods through Malawi’s borders and those of its key trade partners is being affected by frequent transit stoppage, lack of personal protective equipment (PPE) for border officials, and higher cost of air cargo.

Source: The Nation

Mozambique: Mozambican private businesses have lost about MZN31-billion (USD436-million at current exchange rates) due to the economic impact of the COVID-19 pandemic, according to a study released by the Confederation of Mozambican Business Associations (CTA) in Maputo. The study warned that the situation could worsen, depending on the evolution of the pandemic and of the economic dynamics in the second half of the year. The lost revenue for business could rise to USD951-million, equivalent to about 7% of Mozambique’s gross domestic product.

Source: Club of Mozambique

Zambia: The Ministry of Commerce Trade and Industry is in the process of developing Standard Operating Procedures for selected sectors that will act as a guide to the private sector during the COVID-19 pandemic. Ministry spokesperson Godfridah Chanda says the main objective of the development of Standard Operating Procedures is to provide guidelines for the management of businesses to ensure the health and safety of employees and customers. Mrs Chanda says the guidelines are being developed with support from the United Nations Development Programme.

Source: Lusaka Times

Africa

African Union Commission inaugurates African Continental Free Trade Area (AfCFTA) permanent secretariat as launchpad for Africa’s economic transformation

At a ceremony on Monday, 17 August 2020 to commission the permanent secretariat of the African Continental Free Trade Area (AfCFTA), Ghana’s President Nana Akufo-Addo and Moussa Faki Mahamat, chairperson of the African Union (AU) Commission, reiterated the importance of the body to the continent’s economic transformation agenda. Ghana was selected as the venue for the headquarters by African leaders during a Summit of AU Heads of States in Niamey in July last year, to launch the implementation phase of the agreement, which is expected to spur regional trade among member countries. Currently, 54 states have signed onto the AfCFTA, out of which 28 have ratified. President Akufo-Addo appealed to member states that have not ratified to do so before the next AU Summit in December, “to pave the way for the smooth commencement of trading from 1 January 2021.” The African Development Bank Group provided a USD5-million institutional support grant to the AU towards the establishment of the AfCFTA secretariat which is located in an ultra-modern office complex in the central business district of the Ghanaian capital.

Source: The Guardian

Africa

Agence Française de Développement and AfreximBank sign a EUR150-million climate financing agreement for Africa

Agence Française de Développement (AFD) and the African Export-Import Bank (AfreximBank) have announced a new facility agreement for a EUR150-million financing programme to support Afreximbank in the implementation of its new climate finance strategy which will target green, low carbon, socially inclusive and more resilient investments across Africa. As part of its financing program, AFD has made available a EUR500,000 grant to carry out a technical assistance program which will support Afreximbank in developing its sustainable finance strategy. As the continent commences the implementation of the African Continental Free Trade Agreement (AfCFTA) early next year, it is timely to unlock new funding arrangements to finance sustainable projects and sectors that build Africa’s long-term competitiveness and resilience. In order to tackle the climate change challenges in Africa, financing solutions have to be developed not only through external financial flows but also through the development of specific and more appropriate instruments that foster sustainable development. The new partnership signed on 2 July 2020, between AFD and Afreximbank, aims at contributing to the development of such solutions.

Source: Africa Business Communities

Africa

COMESA - launch of women’s digital networking platform in member states

The Common Market for Eastern and Southern Africa (COMESA) will conduct national launches of a digital platform specifically designed to address the information needs of women in the region. COMESA will be rolling out the 50 Million African Women Speak platform (50MAWSP) in 14 member states between August and November 2020, largely through virtual means owing to restrictions imposed by the COVID-19 pandemic. The platform primarily seeks to economically empower women by providing a one-stop shop for a wide range of financial and non-financial services that women need to start and grow successful businesses. It is jointly implemented by COMESA, the East African Community (EAC) and the Economic Community of West African States (ECOWAS) and is funded by the African Development Bank. Following the two national launches scheduled this August in Zimbabwe and Seychelles, 12 more launches will be conducted in Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Eswatini, Ethiopia, Madagascar, Malawi, Mauritius, Sudan and Tunisia. The first 50MAWSP national launch in the COMESA region was held in Zambia in February this year.

Source: COMESA

Africa

Africa’s logistics space on fast growth trajectory as funding and opportunities pile up

The African logistics sector is on an upward trajectory as startups in the sector secure growing amounts of funding as the potential for the space to power a commerce revolution on the continent becomes clearer. According to the latest edition of the ‘African Tech Startups Funding Report’ released each year by Disrupt Africa, logistics startups had a record-breaking 2019. 23 logistics startups secured investment, up 91.7% on 2018 numbers, which in turn was an increase of 140% per cent on the year before. Total funding increased by 264.6%, with logistics startups securing the biggest share of investment by any sector. Logistics companies are also well-positioned for the future, with the African Continental Free Trade Agreement’s (AfCFTA) goal of creating a continental free trade area to accelerate intra-African trade. Kennedy Nyabwala, CEO of Kenya’s Bwala, says he expects more and bigger rounds to be closed by the end of the year, with the key fundamentals of the space remaining the same even in the time of COVID-19.

Source: Disrupt Africa

West Africa

IRENA seeks consultants to strengthen the ECOWAS electricity network

The International Renewable Energy Agency (IRENA) has issued a call for projects to recruit consultants to strengthen the electricity networks of Economic Community of West African States (ECOWAS) members. The final objective of the project is to allow better integration of renewable energy capacities under construction in the region. IRENA is looking for consultants to set up a program to strengthen the power grid infrastructure of ECOWAS. The aim of improving the networks of these countries is to allow better inclusion of renewable energy sources in the energy mix. The companies selected at the end of the request for proposals will work closely with the power companies, national regulators and the Regional Center for Renewable Energy and Energy Efficiency of ECOWAS. They will have to develop the best solutions from a technical and economic point of view in order to increase the capacity of the electric transport infrastructures and to take charge of the new solar and wind capacities under construction. A component of the mandate will also be devoted to capacity building of national skills. Interested consultants have until 31 August 2020 to submit their applications.

Source: Energy Mix Report

Democratic Republic of Congo

German investors interested in funding DRC’s Inga III Dam

A delegation of German investors visited Kinshasa to look at investment opportunities in the Democratic Republic of Congo’s (DRC) energy and railway transport sectors. The business representatives have shown interest in eight potential railway corridors, which are fundamental for the DRC’s economic development, but the big investment target lies in the Inga III Dam, a massive 11000 MW hydropower plant to be built on the Congo river. After years of delays caused by difficulties in securing funding, German and European Union-led financing could finally see the project take off. This is the second important development for this project in just as many weeks, as earlier this month, the project’s operators signed a merging agreement to form a single consortium in order to accelerate the project’s construction. According to the new agreement, the newly merged consortium comprises six Chinese companies led by China Three Gorges, who, together, have a 75% stake in the project. The remaining Spanish company AEE Power Holdings holds a 25% stake.

Source: Africa Oil & Power

Ethiopia

Ministry grants 12 mining, exploration licences

The Ministry of Mines and Petroleum has granted mineral exploration and production licences to 12 mining companies. According to a press release sent to ENA, the agreements include two mining and 10 exploration licences that would enable the companies to produce and explore various minerals in Ethiopia. State minister of Mines and Petroleum, Simegn Wube signed the agreements with chief executives of the mining companies. The mining companies will engage in the exploration of sediment gold, gold, iron, manganese, chromites, silver and gemstone while the two firms will engage in the production of basalt and marble minerals, it added. The Ministry noted that the exploration licences would be valid for three years with possible extension upon the requests of the companies if the Ministry accepts the proposal for renewal.

Source: ENA

Ethiopia

Nation plans to undertake ETB21-billion irrigation projects

Irrigation Development Commission disclosed that it has planned to undertake nine irrigation projects with an outlay of ETB21-billion during this Ethiopian fiscal year. Vice commissioner, engineer Samuel Neguse told ENA that the irrigation schemes to be constructed in various parts of the country are expected to develop more than 125,000 hectares of land upon completion. According to him, the new projects will also include other social services and infrastructures beneficial to the nearby communities. The commission will put in place a system that undertakes consistent support and monitoring activities by enhancing the capacity of the contractors in order to complete the projects on time, he added. He pointed out that currently, 10 irrigation projects with the capacity of developing 92,000 hectares of land are under construction in the lowland areas of the country. 

Source: ENA

Ethiopia

Commission, Intelligence Centre sign MoU to coordinate fight against corruption

The Federal Ethics and Anti-Corruption Commission and the Ethiopian Financial Intelligence Centre have signed a Memorandum of Understanding (MoU) that enables them to cooperate in fighting money laundering, terrorism financing and other financial crime. The MoU was signed between Financial Intelligence Centre director-general, Tewodros Bekele, and Anti-Corruption commissioner Tsega Arage. Speaking on the occasion, Bekele said corruption is the main source of crimes in the country; and it is important to work together in a coordinated manner. He added that the agreement signals the start of a new phase of cooperation among the institutions to sustainably exchange information to combat the crime. The main objective of the agreement is to strengthen coordination through capacity building, research, and technology, among others.

Source: ENA

Ethiopia

National Bank prohibits over ETB1.5-million cash kept outside of banks

The National Bank of Ethiopia (NBE) issued a new directive that bans persons and companies from keeping over ETB1.5-million in cash out of banks. National Bank of Ethiopia governor, Yinager Dessie told journalists that the objectives of the directive are to prevent illegal money circulation and strengthen legal transactions, as well as protect notes from damage, among others. According to the governor, anyone who deposits more than the stated amount of money anywhere out of banks will be accountable and punished as per the regulation. He also said banks can now borrow money from foreign financial institutions and lend foreign currency to local companies. This directive is believed to ease the existing foreign exchange shortage in the country, the governor added.

Source: ENA

Gabon

Merger between Gabon’s Sogara and GOC abandoned

For unclear reasons, the government of Gabon has ended the merger project, underway since 2019, between Sogara and Gabon Oil Company (GOC). The objective of this merger was to save Sogara, the country’s only refinery. The proposed merger between the Gabonese refining company (Sogara) and the national hydrocarbons company, Gabon Oil Company (GOC), announced in 2019, has been abandoned by the government, an official statement said. The reasons for this are not mentioned. The decision to merge these two state structures was taken during the Council of Ministers of 13 June 2019, chaired by the President of the Republic, Ali Bongo. This merger was supposed to make the only Gabonese refinery profitable. In fact, Sogara in recent years has struggled to get its head out of the water with a continuous drop in the volumes of oil processed.

Source: Energy Mix Report

Ghana

President flags off greenhouse and innovation centre in Ghana

The National Entrepreneurship and Innovation Programme (NEIP) Greenhouse Estate Project, West Africa’s biggest greenhouse project, was officially out-doored at Dawhenya in the Greater Accra Region by President Nana Addo Dankwa Akufo-Addo. Unveiling 75 out of the total 1,000 green houses and entrepreneurship and innovation centre for training, the president said that the facilities would be producing 4,500 tonnes of vegetables valued at GHS11-million annually. ''The 75 greenhouses here can produce 4,500 tonnes of tomatoes annually, bringing in a yearly revenue of some GHS11-million, and employing a total of 230 people. Already, vegetables from this farm are being sold at Shoprite, Farmers Market, Eden Tree, amongst others,'' he said. As part of the process of modernising agriculture and making agriculture attractive to the youth and graduates, the Business Development Ministry plans to build 1,000 greenhouses across the country providing 10,000 direct jobs annually through the greenhouse project.

Source: Africa Business Communities

Kenya

Kenya reveals KES540-billion nuclear power plant in Tana River

Kenya is set to build a USD5-billion (KES540-billion) nuclear power plant on a site in Tana River County over the next seven years with funding from private investors. The Kenya Nuclear Electricity Board (KNEB) in a regulatory filing with the National Environment Management Authority (NEMA) revealed that the plant with an initial capacity of 1,000 MW plant would be constructed through a concessionaire. The government looks to expand the plant’s capacity fourfold by 2035 under a build, operate and transfer (BOT) model. The KNEB plan will be subjected to public scrutiny before the environmental watchdog can approve it and pave the way for the project to continue. Kenya views nuclear power both as a long-term solution to high fuel costs – incurred during times of drought when diesel generators are used – and an effective way to cut carbon emissions from the power generating sector. The KNEB said private funding for the nuclear plant would ease the burden on Kenya’s strained public coffers. The estimated cost of the nuclear plant is nearly half the government’s annual tax collections. The agency said Tana River is the most preferred location since it is not prone to earthquakes. Other sites under consideration were in the Lake Victoria and Lake Turkana basins.

Source: Business Daily

Kenya

Tender for KES25-billion Soin-Koru multipurpose dam re-advertised

The government has re-advertised the tender for the construction of the KES25-billion Soin-Koru multipurpose dam after bidders failed to meet minimum standards. Through the National Water Harvesting and Storage Authority (NWHSA), interested parties have 30 days to make their submission for the proposed construction of the dam which, among others, is expected to reduce perennial flooding on lower reaches of River Nyando. “Tenders must be accompanied by a tender security of Sh200 million from a reputable bank approved by the Central Bank of Kenya,” said the advert. According to the tender, Soin-Koru dam is proposed to be a zoned rockfill dam with impermeable clay core and water storage capacity of 93.7 million cubic metres. The dam to supply water for domestic use, irrigation and hydropower generation will provide 72,000 cubic metres per day of water for domestic and institutional use and water for irrigation of 2,570 hectares of land and generation of 2.5 MW hydropower. The National Environment Management Authority is currently in the process of auditing environmental suitability of Soin-Koru dam.

Source: Business Daily

Kenya

KAM wants higher taxes on imports

Manufacturers in Kenya have stepped up the push to increase taxes on finished products imported into the East African Community (EAC) bloc, citing unfair competition for locally manufactured goods. The industrialists’ lobby, the Kenya Association of Manufacturers (KAM), said Kenya’s decision to apply a 30% Common External Tariff (CET) on imported finished products distorted the regional market because other partners of the EAC Customs Union such as Tanzania and Uganda had settled for a higher rate of 35%. The CET means that the same tariff is generally charged whenever a member imports goods from outside the customs union. A lower CET on finished products comparative to Tanzania and Uganda, therefore, means that such products are likely to be dumped in the Kenyan market despite its sufficient manufacturing capacity for items such as iron and steel products, wood products, textile products, paper and paperboard products and vegetable oil, among others. Critics argued that this CET structure does not consider the nature of manufacturing where in some instances a finished product is a raw material for another manufacturing process adding that it also acts as a disincentive to regional trade for goods manufactured in the EAC as they attract higher tariffs than goods that are manufactured outside the region.

Source: Business Daily

Kenya

Kenya Power to meter transformers

Kenya Power has initiated talks with financiers to fund the metering of all its transformers to track electricity system loss through theft and transmission that costs the monopoly over KES18-billion per year. The firm said it had begun engaging financiers to bankroll the initiative starting from Nairobi where power theft hotspots have been mapped before rolling the project across the country. Each meter is likely to cost about KES70,000 given the estimate that Nairobi’s 10,000 transformers will be metered at approximately KES700-million. This makes exercise across the country where there are close to 70,000 transformers, a multi-billion shilling venture. Kenya Power managing director Bernard Ngugi said the move will reduce and eventually wipe out electricity theft via illegal connections as it will be possible to trace the source of the power being illegally consumed. While technical losses occur when electrical energy is dissipated in the process of transmission and distribution commercial losses are mainly attributed to pilferages, faulty meters and gadget tampering. Mr Ngugi said commercial losses now account for 11% of power losses with the other 13% attributed to technical causes due to inefficiencies.

Source: Daily Nation

Nigeria

Nigerian National Petroleum Corporation becomes EITI partner company

The Nigerian National Petroleum Corporation (NNPC) has become an Extractive Industries Transparency Initiative (EITI) partner company, joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners who commit to observing the EITI’s supporting company expectations. The new status would require the NNPC to publicly declare support for the EITI Principles and, by promoting transparency throughout the extractive industries, help public debate and provide opportunities for sustainable development; publicly disclose taxes and payments, ensure comprehensive disclosure of taxes and payments made to all EITI implementing countries; and publicly disclose beneficial owners and take steps to identify the beneficial owners of direct business partners, including Joint Ventures and contractors. Other requirements include engaging in rigorous procurement processes, including due diligence in respect to partners and vendors, delivering natural resources in a manner that benefits societies and communities and ensuring that company processes are appropriate to deliver the data required for high standards of accountability.

Source: Africa Business Communities

Nigeria

Inaugural Nigeria Oil, Gas & Power Conference launches in Lagos in 2021

With incredible potential for gas-to-power, liquefied natural gas (LNG) and downstream diversification to power Nigeria’s economy in the long-term, the first-ever Nigeria Oil, Gas & Power (NOGP) Conference & Exhibition, to be held in Lagos from 26 to 27 October 2021, will focus on the path forward for Africa’s largest economy post COVID-19 – with an emphasis on gas monetisation and power generation. Following the Year of Gas in Nigeria, NOGP 2021 will bring gas and power generation to the forefront of the conversation as a solution for economic development and diversification, job creation and building a sustainable future for all Africans. The conference will also highlight the marginal fields licensing round held in 2020, bringing new entrants to the market to the table. As indigenous companies and internationals alike seek financing and survival strategies to combat low oil prices and economic fallout, making deals will be crucial for 2021. NOGP 2021 is a proud participant in the Equalby30 initiative, which aims at equal participation of women in the energy sector by 2030.

Source: Africa Oil & Power

Nigeria

SPE asks FG to sell idle refineries to private operators

The Society of Petroleum Engineers (SPE), has urged economic managers to sell Idle refineries to private sector operators to meet Nigeria’s oil and gas needs. According to the chairman of SPE, Joe Nwakwue, keeping refineries idle is not in the interest of the economy, as the nation continues to incur expenses even when they are idle. He added that going by the yearly report published by the Nigerian National Petroleum Corporation (NNPC), Nigeria lost about NGN120-billion operating the idle refineries over the years. The NNPC boss, Mele Kyari, had attributed the failure to fix the refineries over these years to strategy challenges, as the government never knew what to do with them, adding that the Corporation did not get the right advisory services and the right strategy to go through with it. Consequently, Kyari said this called for a change in strategy and a new framework to help NNPC and prospective investors to put their money down and ultimately change that equation, by first fixing the refineries to make them attractive.

Source: The Guardian

Nigeria

FG targets 22 non-oil commodities for export promotion

No fewer than 22 non-oil strategic products have been pencilled in the new export promotion programme of the Federal Government. The initiative is part of the zero-oil plan currently implemented by the Nigeria Export Promotion Council (NEPC), in collaboration with the private sector, and estimated to worth over USD150-billion in annual export value at full capacity. Among the products are palm oil, cashew, cocoa, soya beans, rubber, rice, petrochemical, leather, ginger, cotton, shea butter, tomato, banana and plantain, cassava, cowpeas, and spices. Executive director of NEPC, Olusegun Awolowo, during a promotional meeting with Nigeria Aviation Handling Company (NAHCO), Free On Board (FOB) Global Logistics Limited, and technical partners from Spain, India, Dubai, and South Africa, said the strategic products were in line with the Federal Government’s industrialisation plan to wean the national revenue off oil receipts. Awolowo said notwithstanding the constraints of processing the products to exportable standards, there was huge potential for Nigerian agro products worldwide and vast revenue to make from the export value.

Source: The Guardian

Nigeria

NAICOM releases fresh guidelines for insurance recapitalisation

The National Insurance Commission (NAICOM), has released fresh guidelines for the payment of minimum paid-up share capital by insurance and reinsurance companies in Nigeria. The move, according to a circular released recently, is in compliance with the first phase recapitalisation directive deadline of 31 December 2020. The director, Policy and Regulations, NAICOM, Pius Agboola, said the guidelines were in furtherance to the Commission’s earlier circulars dated 20 May 2019, 23 July 2019, and 30 December 2019, respectively, on the subject matter. The circular said the deadline for compliance with the first phase of the new minimum paid-up capital by all existing companies remains 31 December 2020, while issuance of letters of compliance would be 26 February 2021.

Source: The Guardian

Uganda

Uganda joins the EITI

The Extractive Industries Transparency Initiative (EITI) Board has approved Uganda’s application to join the EITI, making it the EITI’s 54th member country and the 26th in Africa. EITI Board Chair, Rt Hon. Helen Clark, welcomed Uganda to the EITI community: “EITI implementation can help lay the foundation for transparent and accountable management of the country’s natural resource wealth. We welcome Uganda as an implementing country and look forward to the EITI promoting inclusive public debate.” Uganda’s commitment to join the EITI was first made in the 2008 National Oil and Gas Policy and was reiterated in the updated 2012 Oil and Gas Revenue Management Policy. Participation in the EITI is also identified in the 2019-2024 Domestic Resource Mobilisation Strategy. In January 2019, the Ugandan Government approved the decision to present a candidature application, which was submitted in July 2020. As a part of the EITI sign-up process, Uganda formed a multi-stakeholder group (MSG) in March 2019, composed of government, industry and civil society representatives. Uganda’s initial disclosures in terms of the 2019 EITI Standard will need to be made within 18 months of being admitted as an EITI implementing country.

Source: EITI