PRINT | SUBSCRIBE | UNSUBSCRIBE | TEXT ONLY

issue 419 | 26 Sep 2021

Africa

AfCFTA secretariat signs landmark agreement with UK government

The African Continental Free Trade Area (AfCFTA) Secretariat has signed a Memorandum of Understanding (MoU) with the United Kingdom (UK) government to formalise shared commitment to the success of the agreement. The UK High Commission in Accra said the UK Minister for Africa, Mr James Duddridge joined the secretary-general of the AfCFTA Secretariat, Mr Wamkele Mene, to sign the MoU at the secretariat’s headquarters in Accra. Mr Mene said: “We are pleased to sign this MoU as it ushers us into a partnership for strengthening cooperation related to trade facilitation in Africa. The AfCFTA is a continent-wide integration project that is built on the intellectual labour of African thinkers, dreamers and negotiators across generations, who imagined and put in place the economic foundation on which a united, integrated and prosperous Africa will be built.” Mr Duddridge said: “The UK is the first non-African nation to recognise the opportunities for trade and investment the landmark [AfCFTA] offers, not just across the continent but globally.”

Source: GhanaWeb

Africa

AfDB adopts new policy to strengthen accountability and support people affected by its operations

The Board of Directors of the African Development Bank (AfDB) Group have approved a new policy framework for the Independent Recourse Mechanism (IRM) aimed at strengthening accountability and providing more effective recourse to people affected by bank-financed operations. The policy framework is the result of a series of internal and public stakeholder consultations that began in December 2019. This process was part of the third policy review of the bank’s Independent Review Mechanism and marked the first time that the IRM has engaged in such a comprehensive public consultation process. The new policy represents a significant step forward for the IRM, according to its director, David Simpson. “The new policy framework restructures the complaints mechanism to make it more accessible, efficient and predictable,” said Simpson. “It also simplifies the complaint process for users of the [IRM], while enhancing its transparency, and providing clearer guidelines for case management.” While the new policy enters into force with immediate effect and will apply to all new complaints, it is expected that the IRM will require a reasonable transition period to fully implement the new policy. Where appropriate, ongoing complaints will be transitioned to the new policy over time.

Source: AfDB

Africa

African Legal Support Facility celebrates achievements as it begins new 14-year mandate

African leaders on Wednesday, 22 September lauded the African Legal Support Facility for helping governments avert billions of dollars in losses from business deals, and urged it to extend support to tackling illicit financial flows. At a high-level conference to review the facility’s achievements over the last decade, speakers, including experts and business leaders, expressed confidence that the African Legal Support Facility was well-placed to advance Africa’s asset recovery and repatriation. “The African Legal Support Facility has already established its place as what might be called a front-line fighter to secure for Africa its resources,” said Thabo Mbeki, former President of South Africa and current chair of the African Union’s high-level panel on illicit financial flows from Africa. “The Facility must assist African countries to negotiate fair and balanced contracts to eliminate opportunities for illicit receipt, use, or transfer of funds,” Mbeki said. The two-day virtual conference, titled Smart Legal Capacity: A New Phase for the African Legal Support Facility, explored innovative ways to bolster African legal and technical capacity, particularly in the debt, extractives, energy and infrastructure sectors.

Source: AfDB

Africa

Key financial institutions, developers commit to joint action to speed up Special Agro-industrial Processing Zones in Africa

The African Development Bank’s (AfDB) Special Agro-industrial Processing Zones (SAPZ) initiative can trigger a fundamental change in Africa’s economic transformation, participants at the first partnership meeting for agro-industrialisation said on Monday, 20 September. The gathering brought together representatives from development finance institutions, private developers of Special Economic Zones and other key global and regional players in Africa’s agri-business sector to share insights on how agro-industrialisation can create massive job opportunities, boost agricultural productivity, generate wealth and improve the quality of life for people across the continent. Participants agreed to work together under a cooperation framework for SAPZ implementation in Africa, under the leadership of the AfDB. “The value of the agribusiness sector is expected to reach USD1-trillion by 2030… Those of us working in the economic zones sector will work closely with the [AfDB] initiative on this huge opportunity,” said Ahmed Bennis, secretary-general of Africa Economic Zones Organization.

Source: AfDB

East / Southern Africa

Sokokuu eTrade platform launched

The Common Market for Eastern and Southern Africa (COMESA) Federation of Women in Business (COMFWB) in collaboration with the African E-Trade Group (Ae-Trade) has launched the online platform Sokokuu to traders in the COMESA region to conduct cross border trade using information and communications technology (ICT) as a tool to minimise physical barriers. Sokokuu is a Swahili word meaning big market. Two other COMESA institutions, namely the COMESA Business Council and the Africa Leather and Leather Products Institute (ALLPI) have already signed memoranda of understanding with Ae-Trade on the operationalisation of the Sokokuu platform. Sokokuu is expected to complement existing platforms such as the womenconnect which is used by women entrepreneurs in the member states to exchange information on availability of essential products within the region. The platform enables manufacturers and suppliers in different member states to share information on the e-platform, on their products and their potential to produce and supply. Speaking at the launch of the virtual platform on Wednesday, 22 September during the 2nd COMFWB Annual Regional Trade Fair in Lusaka, secretary general Chileshe Kapwepwe said COMESA recognises the potential of ICT in enhancing regional integration.

Source: COMESA

Botswana

S&P raises Botswana’s outlook to positive on diamond recovery

Global credit ratings agency, S&P recently revised its view of the country's outlook to stable from negative, citing stronger prospects for economic recovery. In a statement, the agency said the recovery in the diamond sector would underpin the expected economic rebound. The country's main diamond producer, Debswana reported production of 10.7 million carats for the first half of the year, 43% higher than the corresponding period last year. Other developments at Khoemacau and Minergy have also lifted prospects for a healthy economic bounce back led by mining. "S&P expects economic recovery to be driven by the anticipated strong recovery in the diamond market which, in turn, should result in a substantial improvement in the domestic fiscal and external sectors’ performance over the next two years," the ratings agency said. S&P researchers also noted the country's "robust and predictable" institutional and monetary policy frameworks, modest net general government debt levels and relatively strong net external position, in justifying their review of the outlook.

Source: Mmegi

Ghana / United States

President of Ghana, mayor of Houston open doors for further collaboration

Ghana’s President Nana Akufo-Addo recently held meetings with the Mayor of Houston, Sylvester Turner, as well as with members of the city’s business community to facilitate partnerships between the United States (US) and African companies and investors. The Texas-West Africa Chamber of Commerce (TWACC) supported by the Houston Mayor’s Office of Trade and International Affairs organised the Ghana Houston Business Forum on 18 September 2021 in Houston, where high-level discussions between President Akufo-Addo and Mayor Turner were held. Posso Ganame, president of the TWACC, invited President Akufo-Addo to participate as a VIP speaker, with a Ghanaian delegation, at the US-Africa Energy Forum (USAEF) from 9-10 December 2021. The TWACC is a voluntary membership organisation which aims to serve as the premier economic platform for Texan and West African nations by increasing trade ties, facilitating investments, and strengthening business activities and agreements between Texas, the US, the Economic Community of West African States, and other African countries.

Source: Energy Capital & Power

Kenya

Exporters of raw minerals to pay higher royalties

Kenya plans to increase royalty rates for miners who sell minerals like gold in raw state and more than halve the fees for firms which process the ore before export in a policy move geared at creating jobs locally. The proposed changes seek to reward firms which add value on minerals before shipping them out of the country, unlike the current mineral royalties’ regime where miners pay a flat rate on the gross value of sales. The Petroleum and Mining ministry has proposed to increase royalty payments for gold in raw or crushed form to 7% of the value from the current flat rate of 5%, while the rates for processed and semi-processed ores have been slashed to 2% and 3%, respectively. The review process of mineral royalties, if successful, will be the first since 2013. Mineral sales, dominated by titanium, earned the country KES22.7-billion last year, a 6.2% drop compared with the prior year’s revenue on the back of depressed demand in international markets. Kenya has proven deposits of titanium in Kwale, gold in western Kenya and coal at Mui Basin in Kitui.

Source: Business Daily

Kenya

Kenyan exports to bloc rise by USD160-million

Kenya’s exports to the East African Community (EAC) increased from KES140.4-billion (USD1.28-billion) in 2019 to KES158.3-billion (USD1.44-billion) in 2020. This accounted for 64.3% of the country’s total exports to Africa, data from the Kenya National Bureau of Statistics’ Economic Survey 2021 shows. Uganda was the largest export destination for Kenyan goods, accounting for 29.3% of total exports to Africa. Export earnings from South Sudan almost doubled from KES12.6-billion (USD114.6-million) in 2019 to KES23.2-billion (USD211.1-million) in 2020, while exports to Rwanda went up by 8.8%. Jointly, exports to Uganda, Rwanda and South Sudan amounted to KES120.6-billion (USD1.09-billion) in 2020, a 20.8% growth from KES99.9-billion (USD909-million) recorded in 2019. Trade with Ethiopia and Sudan also grew significantly by 32.4% and 42%, respectively, in 2020 to bring Kenya’s export earnings from the two countries to KES17.7-billion (USD161-million). Kenya’s export earnings from the EAC went up by 12.7% to KES158.3-billion (USD1.44-billion) in 2020 from KES140.4-billion (USD1.28-billion) in 2019.

Source: The EastAfrican

Kenya

New Livestock Bill offers farmers fatter earnings

Livestock sector players are hopeful that a proposed law will end the mess they have been trying to clean after years of lobbying the government. The Livestock Bill, 2021 will for the first time provide a window for stakeholders to be involved in the formulation of policies jointly with the government. In the Bill that is awaiting debate and validation at the national assembly, development of the sector will now be funded by the exchequer if it sails through. Livestock inputs and products will, however, be regulated through a proposed Livestock Inputs and Products Regulation Authority (LIAPR). The regulator will ensure that the quality of livestock products being exported meets global standards and shall have a representative from livestock farmers organisations and one from devolved units, besides other professionals and management officials. The state will also be funding research and capacity building to develop the sub-sector.

Source: The Nation

Malawi

Intra-African fair to rake in USD40-billion

The second Intra-African Trade Fair scheduled to take place later this year is set to rake in USD40-billion in terms of trade and investment deals for the continent. Malawi is set to participate in the fair. This was revealed during a road-show that hosted ministerial and high-level government officials, industry players as well as executives from the African Export-Import Bank (Afreximbank). The trade fair is expected to take place in South Africa and will target players from sectors such as agriculture and agro-processing, consumer goods and finance. Afreximbank Southern Africa Regional chief operating officer Humphrey Nwugo rated the exhibition as important for the country. “We, as a bank, realise that part of the challenge to intra-African trade is the fact that people do not know what they can buy from other countries. This is a good initiative and avenue for countries to congregate and to identify what others can sell and what they can sell to other countries,” Nwugo said. Minister of Trade Sosten Gwengwe challenged exhibitors to utilise the opportunity to enhance trade in the region.

Source: The Times

Malawi

Malawi moves on innovative rating

The World Intellectual Property Organization (WIPO) has ranked Malawi among the top three innovative countries in the low income category in the region. This is according to a recently released report titled Global Innovation Index 2021: Tracking Innovation through the COVID-19 Crisis. Among other things, the report shows that, despite the human and economic toll brought about by the pandemic, governments and enterprises in many parts of the world have increased their investments in innovation. It notes that the information and communications technology (ICT) sector in most of the economies developed measures to contain the pandemic and its fallout and, as a result, increased development in areas such as ICT hardware, software, pharmaceuticals and biotechnology. However, the report indicates that high-income economies such as Northern America and Europe continue to lead the ranks in these areas. “There is an urgent need for this to change, particularly in the context of the [COVID-19] crisis. Confronted with an unprecedented crisis, it is important to fully leverage the power of innovation to collectively build a cohesive, dynamic and sustainable recovery,” the report reads.

Source: The Times

Malawi

Nacala pumps USD20-million into railway facelift

Nacala Logistics has invested USD20-million (MWK16-billion) in facelifting the railways system leading to a dry port that the firm has constructed in Limbe. The firm is targeting to ease transportation of goods into and within the country. The company has also invested in a new fleet of locomotives. In an interview after unveiling the locomotive, Nacala Logistics director Gustavo Henrrique Stein said the country would benefit from the investment. “The locomotives were designed in the past five years. They are stronger than the locomotives we had before. We will be much faster when bringing goods and we will be able to bring cargo at a lesser cost,” he said. Stein further said the investment would help increase volumes of cargo at a given period. “With the old locomotives, we were able to bring at least 6 000 tonnes [of goods] per month. Our target is to improve to about 8 000 tonnes of goods per month. We can also bring more cargo with less strength than before. In the future, we hope to bring about 100 000 tonnes of goods in a month,” he said. The railway system has been widely reported to be the cheapest transportation mode for both passengers and goods.

Source: The Times

Namibia

Namibia wants stronger ties with Lusophone countries

The Namibian government is determined to strengthen historical ties and trade relations with Portuguese-speaking countries. The country has strong economic relations with a number of Lusophone countries, including Angola, that have been developed over 30 years since independence. According to the latest figures from the United Nations' Comtrade database, Namibia exported USD29.13-million (NAD450-million) worth of goods to Angola last year. Namibia imported USD4.03-million (NAD60-million) worth of goods from its northern neighbour during that time, according to the database last updated this month. The goods traded between the two countries include vehicles, electrical and electronic equipment, machinery, live animals, plastics, salt, furniture, oilseed, grain, fruits and vegetables. It is against this background that Cabinet received the report on the 13th Conference of Heads of State and Government of the Community of Portuguese Speaking countries (CPLP) that was held in Luanda, Angola, from 16 to 17 July this year. The report was presented by the Minister of International Relations and Cooperation, Netumbo Nandi-Ndaitwah. Namibia holds an associate observer status with the Lusophone organisation.

Source: The Namibian

Nigeria / Ghana

Nigeria, Ghana sprint to join digital currency race

Nigeria and Ghana are racing to adopt a central bank digital currency as they look to ride the wave of popularity of cryptocurrencies in West Africa's two largest economies. Central banks in both countries have partnered with foreign financial technology companies to create digital versions of their currencies, joining the global train of countries exploring the initiative. Nigeria, Africa's largest economy, will launch its eNaira digital currency on 1 October, while Ghana will trial e-Cedi from this month. Nigeria has seen a boom of cryptocurrencies, despite a ban on banks making the transactions, as people look for ways to escape the weakening naira currency and offset high cost of living and unemployment in Africa's most populous country. "Nigerians are investing in cryptocurrency as a means of store value and to carry their funds outside the shores of the country," said Ayodeji Ebo, head of retail investment at Lagos-based investment firm Chapel Hill Denham.

Source: Business Daily

Rwanda

Rwanda seeks to increase private sector capacity to trade

Rwanda has set her eyes on putting in place instruments that remove barriers to trade and investment through increased collaborations with the private sector. Yves Bernard Ningabire, the Permanent Secretary at the Ministry of Trade and Industry, made the remarks on a panel discussing manufacturing and infrastructure development at the Concordia Summit. Ningabire was joined by Patience Mutesi Gatera, the country manager at TradeMark East Africa, and Clarisse Iribagiza, CEO of HeHe Mart among others. Looking at the growth of Rwanda's manufacturing industry, Ningabire said, the sector's contribution to gross domestic product grew from 14.5% in 2016 to 19% in 2019. “The sector is a key contributor to achieving Rwanda's 2050 targets,” he added. TradeMark East Africa has signed a deal with the AfCFTA, with an aim to collaborate on customs, transit and trade facilitation, harmonisation and mutual recognition of standards, said Mutesi Gatera. “We also want to work with the private sector to increase their capacity to trade by developing regional value chains to help firms increase their capacity to add value,” she asserted.

Source: The New Times

Uganda

Gold exporters want government to reduce new taxes

Government is still engaging stakeholders, among them gold exporters, who have asked that the current tax regime on the commodity be revised downwards. Under the Mining (Amendment) Bill 2021, government had imposed a USD200 levy on each exported kilogramme of gold. However, the levy was revised to 5% for every kilogramme of the refined precious metal and 10% for the unprocessed. In its August economic performance report, the Ministry of Finance indicated that no gold had been exported in the month of July, pending a resolution of the revision of the levies. During July, the Ministry of Finance noted that government had imposed a levy of 5% and 10% on every kilogramme of refined and unprocessed gold, respectively, which dealers had asked that they be revised downwards. “The [exporters] have requested government to revise this tax downwards and negotiations are being held to this end. Pending the conclusion of these negotiations, there were no exports of gold from Uganda in the month of July,” the report reads in part. As a result, the report noted, export receipts declined for the second consecutive month, partly due to failure to register gold exports for the first time in over six years.

Source: Daily Monitor

Uganda

Government blames revenue collection shortfall on underperformance of taxes

Despite the shaky economic activities in the country, government domestic revenue collection amounted to UGX1.537-trillion, representing a 90% performance against the target for the month of August. In the economy performance report for the month of August 2021, a copy seen by Daily Monitor, the Ministry of Finance, Planning and Economic Development says this shortfall resulted from the underperformance of all major tax heads and non-tax revenue categories. It says during the month, total tax collections were UGX1.460-trillion, an equivalent of 93.6% against the target while non-tax revenues performed at only 52.2% of the monthly target. “Direct domestic tax collections amounted to a shortfall of UGX10.57-billion or 97.6%, on account of underperformances by corporation tax and withholding tax collections under government securities,” the report reads in part. According to the report, indirect domestic taxes were affected by the underperformance of value-added tax (VAT) on manufactured goods such as beer, cement and soft drinks. “Overall collections amounted to a shortfall of UGX79.67-billion or 82.9% against the target.”

Source: Daily Monitor

Zimbabwe

Zimbabwe pledges commitment to nuclear safety

The Republic of Zimbabwe recently pledged its commitment to nuclear safety and security by depositing legal instruments, thereby becoming a party to various international treaties under the auspices of the International Atomic Energy Agency (IAEA). Soda Zhemu, Minister of Energy and Power Development, handed over the instruments to IAEA director general Rafael Mariano Grossi at a short ceremony held as part of the annual Treaty Event alongside the 65th Regular Session of the General Conference. “These legal instruments embody the commitment of your country to do the right thing. We must acknowledge Zimbabwe as a nation coming to the IAEA and saying that it is going to be part of a system of collaboration, of cooperation in cases of nuclear accidents, international assistance when it comes to the protection of nuclear material,” said Grossi. The head of the Zimbabwean delegation will also sign the Additional Protocol to the country’s Comprehensive Safeguards Agreement in the presence of the IAEA’s director general.

Source: ESI Africa