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issue 376 | 01 Nov 2020

Coronavirus (COVID-19)

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

World: The Rockefeller Foundation has announced that it will commit USD1-billion over the next three years to catalyse a more inclusive, green recovery from the COVID-19 pandemic. The foundation outlined in a media release that building on current efforts and long-standing programmes, it will focus on two key areas: catalysing billions of dollars in private and concessional investments to scale distributed renewable energy across developing countries; and ensuring more equitable access to COVID-19 tests and vaccines, science-based tools, and data to fight the pandemic, while strengthening public health systems to prevent future outbreaks. Collaborating with global investors, international organisations, and governments, the Foundation will focus on driving historic public-private investment in infrastructure that accelerates access to clean, safe, and reliable renewable energy across Africa, Asia, and Latin America.

Source: ESI Africa

Africa: Energy commodity prices are not expected to return to pre-COVID-19 levels any time soon, says the World Bank. This is negatively affecting African economies. While metal and agricultural commodities have recouped losses caused by the COVID-19 pandemic, energy prices are expected to stabilise below pre-pandemic levels next year, according to the World Bank’s semi-annual ‘Commodity Markets Outlook’ report. Several economies in Africa are sustained by the extractive industry, with most national budgets dependent on mining and petroleum exports. Oil prices are expected to average USD44 per barrel in 2021, which is more than the estimated USD41 per barrel in 2020. Demand is expected to rise slowly as tourism and travel will continue to be constrained by health concerns. Global economic activity is anticipated to return to pre-pandemic levels only by 2022.

Source: ESI Africa

Africa: With USD44.6-billion, African countries are the biggest contributors to the battle against COVID-19 on the continent. The figures were reported by Bartholomew Armah, an economist and chief, Development Planning, Macroeconomics and Governance Division, United Nations Economic Commission for Africa. The second-largest contributor is the International Monetary Fund (IMF) with about USD16-billion. This amount may have increased in the meantime, as the institution continues to approve disbursements to some countries in the region, as was recently the case for Cameroon. At just over USD4.9-billion, the G20 and its initiative to suspend the debt of poor countries takes third place. Financing from the IMF and G20 are loans that Africa will have to repay. The top 5 biggest contributors to the fight against COVID-19 in Africa are completed by the African Development Bank and Afreximbank.

Source: Ecofin Agency

Namibia: Namibia's minister of Environment, Forestry and Tourism, Pohamba Shifeta on Wednesday, 28 October launched the Tourism Expo 2020 scheduled to take place from 4-7 November 2020 in Windhoek despite the current COVID-19 pandemic. The minister, at the launch, talked about the negative impact caused by the COVID-19 pandemic on the tourism industry and highlighted the importance of investing in domestic tourism. The expo will run under the theme: ‘Renewable Energy’, of which Shifeta said it is befitting to Namibia's current situation. "Given the current situation, which brought many economies to a standstill, continuity of the domestic tourism operations is crucial at this critical point and the Namibia Tourism Expo will create a platform for the industry to brainstorm ideas to ensure that Namibia remains a preferred destination in sub-Sahara Africa," he said. Established 22 years ago, the expo continues to be the biggest tourism event in the country that brings together stakeholders from all walks of life, as well as international exhibitors to showcase their services and products, and to network, synergise, and create business links.

Source: Xinhua

Nigeria: Capital market operators have expressed worry that the prolonged COVID-19 pandemic and attendant foreign exchange (forex) illiquidity may cause investors to lose their dividends this year. Operators urged the Federal Government to reschedule loan repayment obligations of companies and grant tax holiday to listed firms to ease recovery and avoid erosion of equity investors' dividend payout in the 2020/2021 financial year. The operators urged government to roll out palliatives in the form of short-term grants, payable within three to five years for sectors mostly affected to enable them boost their working capital, expand business operations and sustain current rally in stock market. According to them, failure to adopt these measures would result in massive job losses, social unrest and a high level of poverty.

Source: The Guardian

Tanzania / Zimbabwe: Air Tanzania resumed scheduled flights to Harare on Tuesday, 27 October after a seven-month suspension due to the COVID-19 pandemic. The airline joins a host of other regional and international airlines that have resumed flights into Zimbabwe after the country reopened its skies at the beginning of October. Some of the airlines that have resumed flights into the southern African country include Emirates, Ethiopian Airlines, Kenyan Airways, South African Airlink and Fastjet. "The flights resume today on 27 October 2020 and will be served initially twice weekly on Tuesday and Friday. Air Tanzania will operate the route via Lusaka, Zambia using a Dash8-Q400 aircraft," the airline said in a statement.

Source: Xinhua

Zambia: The private sector in Zambia eased the slowdown imposed by the COVID-19 pandemic during the month of September following government's decision to ease some restrictions to stimulate economic activity, results of a survey showed on Monday, 26 October. While the business environment remains volatile due to the pandemic, the decline in business activities was much slower during the month of September compared to previous months. According to the Purchasing Managers' Index (PMI) conducted by Stanbic Banda Zambia, the rate of the slowdown eased at its lowest during the month due to the strengthening of the business confidence. The slowdown rose to 46.6 in September from 43.4 in August although it was still below the 50.0 mark, a benchmark for improvement in business conditions.

Source: Xinhua

Zimbabwe: Zimbabwe will gradually reopen its land borders beginning in December, Information, Publicity and Broadcasting Services minister Monica Mutsvangwa said on Tuesday, 27 October. Addressing a post-cabinet media briefing, Mutsvangwa said borders to be opened first include the country's busiest, Beitbridge, on the border with South Africa, and Plumtree which borders with Botswana. "The borders will open first to private passenger vehicles and pedestrian traffic as from 1 December 2020, while further assessment is being undertaken with regard to preparations for handling public passenger transport," Mutsvangwa said. She said the borders will operate between 06:00 and 18:00, until further notice. Mutsvangwa also announced an extension of the curfew hours from 20:00 to 22:00 for the convenience of travellers who are cleared late at borders.

Source: Xinhua

Africa

African Development Bank, partners, announce new Women in Ethics and Compliance in Africa initiative

The Women in Ethics and Compliance in Africa network (WECA), a new initiative creating a membership group for women executives and management leading the fight against corruption and non-compliance in business, made its debut at an online webinar co-hosted by the African Development Bank (AfDB) on 22 October 2020. Its organisers, leaders from the AfDB, the Coalition for Ethical Operations (CEO) and the United Nations Global Compact, announced the formation of the unique support organisation for female leaders and executives working to curb unethical business practices in Africa. “The formation of this network reiterates the Bank’s commitment to ensuring that sustainable development is hinged on bridging the gender gap, with emphasis on key areas such as ethics and compliance. We are inviting women from all across the private and public sectors on the continent to join in and help in achieving the objectives of this network," said the Bank’s director for Gender, Women and Civil Society, Vanessa Moungar. The WECA network founding members said they plan to address the lack of avenues and support for ethical leadership. The network also aims to bridge the gap in human resources for ethics and compliance across the continent, through mentoring and coaching young women professionals for career progression.

Source: AfDB

Africa

USTDA launches call for initial proposals to expand Africa initiatives

The U.S. Trade and Development Agency (USTDA) issued a call for initial proposals to expand its grant-based support for feasibility studies, technical assistance and pilot projects that advance the United States (US) government’s Prosper Africa and Power Africa initiatives, as well as USTDA’s Access Africa initiative. USTDA accepts proposals to advance infrastructure projects in developing and middle-income countries throughout sub-Saharan Africa, with a priority emphasis on agribusiness, energy, healthcare, information and communications technology (ICT) and transportation. Grant funding from USTDA can be used for feasibility studies, technical assistance or pilot projects to structure sustainable infrastructure projects. USTDA is an implementing agency of Power Africa, a US government-led partnership to increase access to electrical power and support private sector investments in African energy infrastructure. USTDA is also an implementing agency of Prosper Africa, a US government initiative to substantially increase two-way trade and investment between the US and Africa. Through its Access Africa initiative, USTDA is supporting quality ICT infrastructure across Africa. USTDA will accept initial proposals through 7 December 2020. Initial proposal requirements can be found the USTDA website.

Source: USTDA

Africa / Middle East

Solar dominates power industry contracts in MEA

Middle East and Africa (MEA) power industry contracts dropped 3% in quarter three of 2020, with solar being the top technology area for investment in the energy sector. According to GobalData’s power database, this drop of 3% over the last four-quarter average was from 87 to 84 contracts. Solar accounted for the largest proportion with 22 contracts, making for 42.3% market share. Thermal came in second with a 28.8% share, followed by wind with a 17.3% share. Transmission and distribution (T&D) projects were the most popular segment in MEA power contract activities (31 contracts) during quarter three of 2020, followed by power plant (24) and generation equipment (16). The proportion of contracts by category tracked by GlobalData in the quarter are: project implementation: 32 contracts (38.1% share); supply and erection: 20 contracts (23.8%); consulting and similar services: 17 contracts (20.2%); power purchase agreement: 11 contracts (13.1%); repair, maintenance, upgrade and others: three contracts (3.6%); and electricity supply: one contract (1.2%). Top issuers of power contracts by capacity involved in MEA are: Emirates Water and Electricity (United Arab Emirates): 2,000 MW from one contract; Societe National d’Electricity (Democratic Republic of Congo): 1,000 MW from one contract; and ACWA Power International (Saudi Arabia): 900 MW from one contract.

Source: ESI Africa

Angola

Hitachi ABB selected by MCA consortium to participate in the largest PV project in Angola

The energy company Hitachi ABB has announced that it has been selected by the MCA Group to participate in the implementation in Angola of the largest photovoltaic project in sub-Saharan Africa. MCA Group plans to eventually install 950 MW in eight sub-Saharan countries over the next five years. The Swiss Hitachi ABB was chosen by the MCA consortium to participate in the development of the largest photovoltaic project implemented in sub-Saharan Africa. The company was chosen for design, equipment supply, testing and commissioning services. The MCA consortium was formed in 2019 by the association of the Portuguese MCA Group and the American Sun Africa in order to set up 950 MW of solar power plants in eight African countries in five years, starting with Angola. In its press release, Hitachi ABB precisely specifies that it was requested for the Angolan part of the project.

Source: Energy Mix Report

Ethiopia

Nation finalising 20 years mining, petroleum policy

The Ministry of Mines and Petroleum said it has been finalising the national mining and petroleum policy that will be implemented over the next 20 years. Despite Ethiopia’s huge untapped resources of the mining sector, it has no policy to help effectively exploit the sector, minister of Mines and Petroleum, Takele Uma Banti told journalists after a half-day forum. Noting that the absence of a policy framework has been affecting the development of the sector, he pointed out that the new mining and petroleum policy will provide Ethiopia with a clear roadmap to fully and effectively exploit the resources to expedite the national economy. This policy framework will also create sustainable communication systems between key stakeholders that are pertinent to the development of the sector including federal and regional governments, he added. It also allows the private sector to import mine testing and filtering machines and equipment that are vital for the development of the sector. The policy is also believed to attract foreign investors to engage in Ethiopia to develop the sector, the minister said. 

Source: ENA

Gabon

Gabon plans a slight reduction of its oil production in 2021

In 2021, Gabon’s oil production will drop by more than 10,000 barrels per day (bpd), according to the budget bill currently under review, a situation which will above all be the result of better adherence to the Organization of the Petroleum Exporting Countries Plus (OPEC+) production cuts. The average price per barrel is expected to drop from USD57 to USD41. The 2021 budget bill provides that oil production over the next fiscal year will be 10.5 million tonnes, or nearly 210,000 bpd. In 2019, production was around 220,000 bpd. While official 2020 production figures are yet to be released, 2021 production is expected to be lower due to continued OPEC+ cuts. However, it should be noted that overall, Gabonese oil production has been declining for several years, due in particular to the maturity of several fields and insufficient investments to renew production bases. Likewise, according to the International Energy Agency, OPEC+ improved the rate of support for oil cuts in September, from 98% in August to 103%. Gabon and Congo, however, remain poor performers and it is estimated that full compliance with the agreement will be effective for these two countries from next year. It should also be added that Gabon expects a barrel price of USD41 for 2021, while the 2020 finance law provided for an average barrel at USD57.

Source: Energy Mix Report

Ghana

ECG deploys drones for operational efficiency

The Electricity Company of Ghana (ECG) has introduced the use of drones to assist and enhance its operational efficiency across the country. The development comes after the power distribution company successfully trained its engineers on how the drones operate at its training school in Tema. At the closing ceremony of the first training workshop in Tema on 22 October 2020, managing director of ECG, Kwame Agyeman-Budu explained that the deployment of the drones was meant to curb the vegetation interference in the network, as well as identify weak spots on the networks for prompt rectification. “The Wingtra drones, supplied and serviced by Sahara Natural Resources, can last one hour in flight and travel as far as 8km whilst still in contact with the control tablet, which records information and videos for later reference,” Agyeman-Budu explained. Other ways the company will benefit from this initiative as outlined by Agyeman-Budu, include routine technical inspections in the power network to identify defects, right of way inspections of overhead lines to identify vegetation encroachment, thermal inspections of the network to identify hot spots, verification of work done by bush clearing and tree cutting contractors, route mapping for construction of new lines, as well as trouble-shooting to locate faults for isolation on overhead lines.

Source: GhanaWeb

Ghana

National Export Development Strategy to rake in USD25.3-billion in annual NTEs by 2029

The Ghana Exports Promotion Authority has re-echoed that the recently launched National Export Development Strategy (NEDS) which is an initiative of the Ministry of Trade and Industry, and mainly implemented by the Ghana Exports Promotion Authority (GEPA) will develop the potential of the non-traditional export (NTE) sector through industrialisation and intense collaboration between the private sector and government. The 10-year structural transformation embedded in the NEDS is targeted to earn the country USD25.3-billion in 2029 from NTEs which is a USD22.5-billion increase from the 2020 figures. The director of projects at GEPA, Alexander Dadzawa said the NEDS implementation rests on three major pillars, which include boosting the supply capacity of Ghanaian exports, eliminating bottlenecks in the local trading system that inhibit growth of small and medium-sized enterprises, and human resource development. According to Dadzawa, within the NEDS, the GEPA will ensure the revitalisation, deliberate and aggressive promotion of 17 priority areas of enormous export potential. He urged companies and businesses within the identified areas to approach the GEPA for their needs to be addressed on a case-by-case basis.

Source: GhanaWeb

Kenya

Petrol, electricity prices to rise on new levy plan

Consumer prices of petroleum and electricity are set to climb if Parliament approves a new taxation formula aimed at boosting the finances of the Energy Petroleum Regulatory Authority (EPRA). The formula proposed by the Energy ministry will see the regulatory levy on petroleum charged at up to 1% of the combination of the landing, transport and storage costs of fuels instead of the current fixed charge. The ministry is also recommending a new levy of up to 1% on the consumption charge for electricity under the proposals already endorsed by the Energy committee of the National Assembly. Currently, EPRA calculates the two levies in shillings per litre for fuel and shillings per kilowatt-hour for electricity. If the proposals are passed by Parliament, EPRA levies will fluctuate from time to time depending on the landed cost of petroleum products and the changes in the energy charge for electricity consumers. Energy principal secretary, Joseph Njoroge said that the proposed formula would boost collections by EPRA to fund its operations. "It (regulatory levy) is a percentage of energy charge for electricity and a percentage of cost of fuel without the tax elements. We made the proposal because EPRA is expected to play bigger roles in regulating the upstream and midstream oil sectors hence their budget will change going forward."

Source: Business Daily

Madagascar

Large funding deal secured for Madagascar’s largest solar plant

GreenYellow, an operator of green energy in Madagascar, Axian, an impact-oriented Pan-African group with holdings in various sectors and countries, Societe Generale, GuarantCo, the guarantee arm of the Private Infrastructure Development Group (PIDG) company and African Guarantee Fund have closed a MGA73.8-billion (USD19-million) transaction to support the debt funding of the 20 MW solar photovoltaic power plant in Ambatolampy. This power plant is the largest in the country and was operated and built by GreenYellow. It has been operational since 2018. To make this transaction possible, Axian acquired 51% of the solar plant’s shares in June 2020. Societe Generale, acting as sole arranger and co-lender with BNI and BMOI, raised USD19-million debt. GuarantCo and the African Guarantee Fund provided additional support with guarantees of MGA36.9-billion and MGA14.8-billion respectively. Madagascar’s energy mix is presently dominated by heavy fuel oil and diesel. The government-owned, vertically-integrated utility that operates most of the country’s power grid requires the private sector’s involvement to address the chronic shortage of electricity access.

Source: Alternative Energy Africa

Malawi

60/40 law delays irk SME chamber

Delays in implementing provisions of the Public Procurement and Disposal of Assets (PPDA) Act have worried the Chamber for Small and Medium Enterprises in the country. Although the PPDA Act was passed three years ago, it is yet to materialise. The chamber feels the status quo is still disadvantaging local business operators who earmarked for the opportunities availed. Among other things, the new law suggests that 60% of government procurements should be given to indigenous Malawians with the remaining 40% to foreign businesspeople. The government, through the Ministry of Trade and the Public Procurement and Disposal of Assets Authority, engaged private sector players to enlighten them and seek insights on the proposed guidelines of the law which was introduced in 2017. The additional guidelines include that small and medium-sized enterprises should be given a green card and have categories of government procurements where they can bid among themselves. Minister of Trade, Sosten Gwengwe said by the time Parliament convened in September, the guidelines were already done and submitted to the Ministry of Justice for gazetting.

Source: The Times

Namibia

Namibia seeks to ratify SACU-Mozambique-UK agreement

Namibia is in the process of ratifying the Southern African Customs Union (SACU)-Mozambique-United Kingdom (UK) economic partnership agreement (EPA) aimed to provide continuity and certainty in trade amongst the parties, when the UK is no longer a member of the European Union. Trade minister, Lucia Iipumbu recently tabled the SACU-Mozambique-UK agreement in Parliament for ratification. SACU member states and Mozambique had signed a new economic partnership agreement with the UK. The signing of the trade agreement comes after the conclusion of negotiations on 8 September 2019. Iipumbu told lawmakers that it is imperative that Namibia, following the signing of the SACU-Mozambique-UK agreement, finalises the process in order to ensure that the country continues to trade with the UK on duty free quota free basis post-December 2020. She said if Namibia fails to ratify the SACU-Mozambique-UK agreement before December 2020, the country would be non-compliant to the constitutional requirements for the entry into force for the SACU, Mozambique and UK agreement. “Our businesspeople will be subject to paying most-favoured-nation (MFN) duties as per the World Trade Organization rules on products exported to the UK,” she told lawmakers.

Source: New Era

Rwanda

Rwanda accelerates nuclear energy efforts

As Rwanda advances plans to establish a centre for nuclear science and technology, it has now started working on its nuclear stronghold by joining the international treaty that provides assistance in case of nuclear and radiological accidents. Recently the cabinet approved the draft law approving the accession of Rwanda to the convention on assistance in the case of nuclear accident or radiological emergency. The convention is a multilateral treaty of the International Atomic Energy Agency (IAEA) of which Rwanda is a member state. After the bill approving the convention is passed by Parliament, “Rwanda will be able to request assistance from any other state party directly or through IAEA in case a nuclear emergency event occurs and it may also be able to provide the same assistance if requested,” minister Claver Gatete told The New Times. In June, the Rwandan Parliament approved the agreement between the government and a Russian state corporation known as Rosatom to set up the nuclear centre by 2024. The centre would enable Rwanda to develop nuclear solutions that would advance several sectors of the country’s economy especially agriculture, health education, sciences and industry.

Source: The New Times

Rwanda / Angola

Rwanda, Angola sign deal to exploit investment opportunities

Rwanda and Angola have begun discussions on how to showcase investment opportunities for businesspeople in both countries. The Rwanda Development Board (RDB) together with the Agency for Private Investment and Promotion of Exports of Angola (AIPEX) held a Rwanda-Angola virtual business seminar to showcase investment opportunities in both countries. The two countries will showcase investment opportunities in manufacturing, information and communications technology (ICT), tourism, mining, health, agriculture and transport. In addition, a Memorandum of Understanding (MoU) on Investment and Export Promotion was signed between RDB and the AIPEX. Speaking after the MoU signing, RDB’s Zephanie Niyonkuru said that, “this is a very important milestone in the promotion of bilateral trade and investment relations between our two countries as we expect the MoU to bring in more investment opportunities.”

Source: Taarifa Rwanda

Zambia

Zambian cabinet approves ratification of African free trade agreement

Zambia's cabinet has approved the ratification of the African Continental Free Trade Area (AfCFTA) Agreement, a spokesperson said on Tuesday, 27 October. Chief government spokesperson, Dora Siliya said the cabinet approved the ratification of the agreement during its sitting on Monday, 26 October. She said the ratification of the agreement will enable the country to have access to a larger market and to harmonise trade instruments across the continent's regional economic communities. "The agreement creates a single continent-wide preferential market for goods and services and it will accelerate continental integration and access to overlapping membership of the regional economic communities which tend to limit the efficiency and effectiveness of these organisations," she said in a release. Zambia signed the agreement on 10 February 2019.

Source: Xinhua