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issue 455 | 03 Jul 2022

Africa

AfDB’s board approves establishment of African Pharmaceutical Technology Foundation

The African Development Bank’s (AfDB) Board of Directors has approved the establishment of the African Pharmaceutical Technology Foundation, a new ground-breaking institution that will significantly enhance Africa’s access to the technologies that underpin the manufacture of medicines, vaccines and other pharmaceutical products. The AfDB’s president, Dr Akinwumi Adesina said: “This is a great development for Africa. Africa must have a health defence system, which must include three major areas: revamping Africa’s pharmaceutical industry, building Africa’s vaccine manufacturing capacity, and building Africa’s quality healthcare infrastructure.” During the African Union (AU) Summit in Addis Ababa in February 2022, the continent’s leaders called on the AfDB to facilitate the establishment of the African Pharmaceutical Technology Foundation. Adesina, who presented the case for the institution to the AU said, “Africa can no longer outsource the healthcare security of its 1.3 billion citizens to the benevolence of others.” With this bold initiative, the AfDB has made good on that commitment. 

Source: AfDB

East Africa

EAC unveils Regional Bioeconomy Strategy 2021/22-2031/32

The East African Community (EAC) has unveiled the Regional Bioeconomy Strategy 2021/22-2031/3 at the EAC Headquarters in Arusha, Tanzania. The strategy will offer an opportunity for partners states to achieve their individual aspirations, making use of the region’s abundant natural resources, including underutilised agricultural waste materials, to produce value-added products with applications in many sectors including food, health, energy and industrial goods. Among the key interventions proposed in the strategy that was unveiled by the EAC deputy secretary general in charge of Planning and Infrastructure, Steven Mlote, on behalf of the secretary general, is the creation of new forms of sustainable bioenergy, and the conversion of waste materials to useful products. The strategy further seeks to ensure the transformation of economies and place innovation in bio-based products and processes at the centre, with a bio-based circular economy as the organising framework. In addition, the strategy will contribute immensely through effective, efficient and sustainable production and use of bio-based materials, products, processes and business models to drive sustainable development in the region. 

Source: EAC

West Africa

ECOWAS: ADF approves USD2-million technical grant to boost electricity reforms

The Board of Directors of the African Development Fund (ADF) on 24 June approved a technical assistance grant of USD2-million to fund research that will contribute to electricity reforms in the Economic Community of West African States (ECOWAS). The grant from the ADF – the concessional window of the African Development Bank (AfDB) Group – will go to the ECOWAS Regional Electricity Regulatory Authority. The ultimate objective is to stimulate cross-border electricity trade and improve energy access in the 15 countries in the region. The project has five components. The first involves selecting electricity regulatory principles and key performance indicators from the AfDB’s flagship Electricity Regulatory Index for Africa report, to be adopted by the ECOWAS Regional Electricity Regulatory Authority. As part of this component, the project will build capacity in member countries for collecting and reporting on these indicators on a common platform. “Ultimately, this project will facilitate regional electricity trade and help improve access to electricity,” said Solomon Sarpong, project team leader at the AfDB. 

Source: AfDB

Cameroon

AfDB Board approves EUR39.6-million loan to improve access to Kribi industrial and port area

On Wednesday, 22 June, the Board of Directors of the African Development Bank (AfDB) approved a EUR39.62-million loan to Cameroon to improve road access to the industrial and port areas of Kribi, in the south of the country. Designed for implementation of the second phase of the Kribi Industrial and Port Area Access Roads Development Project, the funds will complement the EUR114.33-million loan granted in October 2021 for the first phase. The Cameroonian government built a deep-water port backing onto an industrial zone called “Kribi Industrial and Port Complex” to address congestion in the port of Douala, which cannot accommodate deep-draft vessels, due to its proximity to the coastal town of Kribi. The complex is equipped with ultra-modern machinery and large storage and work areas. The loan for the project's second phase will complement funding for rehabilitation works on the 110km Edea-Kribi road and the construction of an additional 39km road between the Lolabé à Campo community and the bridge over the Ntem River, on the border with Equatorial Guinea. These future road links will make the Kribi Industrial and Port Complex more accessible. 

Source: AfDB

Gabon

IMF Executive Board completes First and Second Reviews of the Extended Arrangement under the EFF with Gabon

On Monday, 27 June 2022 the Executive Board of the International Monetary Fund (IMF) completed the First and Second Reviews of the Extended Arrangement under the Extended Fund Facility (EFF) for Gabon. The completion of the reviews enables the immediate disbursement of SDR116.1-million (USD155.29-million), bringing total disbursements under the extended arrangement to SDR197.1-million (about USD263.63-million). The extended arrangement was approved by the IMF board on 28 July 2021 to help Gabon respond to the economic fallout from the COVID-19 pandemic and to support the authorities’ economic and financial reform programme. Gabon’s economy was hit by the COVID-19 pandemic, with a decline in real output of 1.9% in 2020. Growth recovered to an estimated 1.5% in 2021, on the back of a booming mining sector and the rebound in the wood and construction sectors. The outlook remains positive. GDP growth is expected at 2.4% in 2022 driven by a continued recovery in wood and construction and a rebound in services. Russia’s war in Ukraine and related surge in commodity prices will boost oil exports and revenues and further improve the fiscal and external positions.

Source: IMF

Gabon / Togo

Gabon and Togo join the Commonwealth

The Commonwealth has admitted Gabon and Togo as its 55th and 56th members, respectively. Both countries are former French colonies. Leaders accepted applications by the two West African countries at the closing session of the Commonwealth Heads of Government Meeting in Kigali, Rwanda. It follows formal expressions of interest by Gabon and Togo and consultation with member countries. Rwanda was the last country to join the Commonwealth, in 2009. Welcoming the announcement, Commonwealth secretary-general Patricia Scotland, QC, said: “The Commonwealth, which began as eight nations in 1949, is growing to 56. Our continued growth, beyond the scope of our history, reflects the advantages of Commonwealth membership and the strength of our association. I am thrilled to see these vibrant countries join the Commonwealth family and dedicate themselves to the values and aspiration of our Charter.” 

Source:  The Commonwealth

Ghana

Ghana lifts most COVID-19 restrictions, fully vaccinated travellers exempt from PCR test

Ghanaian President Nana Addo Dankwa Akufo-Addo has announced the re-opening of land and sea borders and the lifting of most of the COVID-19 restrictions. In his 28th nationwide COVID-19 address late Sunday, 26 June, the president said the decision was made after reviewing the raft of measures put in place to help win the fight against the virus, against the background of rapidly declining infections, and the relative success of the vaccination campaign by the Ghana Health Service. “From Monday [27 June], the wearing of face masks is no longer mandatory,” Akufo-Addo said. “I encourage all of you to continue to maintain enhanced hand hygiene practices and avoid overcrowded gatherings.” All in-person activities, including religious gatherings, conferences, workshops and funerals, may resume at full capacity, as long as the audience and participants are fully vaccinated, but hand washing and hand sanitizing points should be made available, the president said. “Fully vaccinated travellers will be allowed entry through the land and sea borders without a negative polymerase chain reaction (PCR) test result from the country of origin,” he said. 

Source: Xinhua

Kenya

Kenya to begin work on 127km Voi-Taveta railway link

Kenya will begin rehabilitating the 127km Voi-Taveta metre gauge railway line to serve the Kenya Ports Authority’s inland container depot (ICD) at Taveta on the border with Tanzania. Kenya’s Planning Principal Secretary Saitoti Torome said plans to refurbish the old line were complete and works will commence in the 2022/2023 financial year. The rehabilitated line is expected to connect the Taveta ICD with the port of Mombasa making it easier to move cargo and boost transit volumes, export and transhipment to Tanzania and Burundi. The cargo throughput from the two countries at the port of Mombasa has been declining in the past few years. About 232 000 tonnes of cargo destined for Tanzania were handled at the port of Mombasa in 2021, with 1 000 tonnes going to Burundi. The Kenya Ports Authority has secured a 50-acre plot at the Taveta-Holili border crossing where it will build the inland freight hub. The railway and freight hub will bring port facilities closer to importers and exporters and will reduce the distance from Mombasa to Bujumbura via the Northern Corridor by 358 km. It will also facilitate faster and more efficient trade through the Taveta/Holili one-stop border post.

Source: The EastAfrican

Kenya

KRA records 55% rise in border post revenue

The Kenya Revenue Authority (KRA) has registered a 55% growth in revenue due to increased efficiencies at the Lunga one-stop border post (OSBP). The authority collected KES810-million by April 2022 from September 2021 against KES553-million obtained in the same period previously. The state is seeking to grow trade after officially commissioning the border post in July  following the completion of a key border infrastructure. According to KRA, traffic at Lunga one-stop border post grew by 166% from September 2021 to January 2022 compared to the same period in the preceding year as the economy recovers from the effects of COVID-19. Incoming traffic represents over 65% of the OSBP traffic flow. KRA coast regional manager in charge of outer stations, John Changole, said import entries recorded in September 2021 to January 2022 was 2 675 compared to the previous year which recorded 1 048 while export booked 1 210 entries from 984 in the same period. “There has been a smooth flow of cargo, vehicles and passengers through the border where time to clear was reduced by more than half. For instance, cargo which used to be cleared for about 45 minutes, due to enhanced efficiency, now takes less than 15 minutes,” said Mr Changole.

Source: Business Daily

Mozambique

World Bank sees Mozambique economy growing 5.7% on average between 2022 and 2024

Economic growth in Mozambique is expected to accelerate in the medium term, averaging 5.7% between 2022 and 2024, as demand recovers and the economy benefits from the start of liquefied natural gas (LNG) production this year, the World Bank has said. The start of LNG production at the offshore Coral project and the expected resumption of other LNG projects would help spur the southeast African nation’s growth, the World Bank said in a statement. The Coral LNG project, operated by Italy’s Eni, processes natural gas from Area 4 resources in the Rovuma Basin, off Mozambique’s coast. It began pumping gas recently, the company had said. The World Bank said a three-year Extended Credit Facility arrangement agreed by Mozambique with the International Monetary Fund (IMF) and budget support from other partners would further help to strengthen its economic recovery. The IMF’s Executive Board in May approved the USD456-million programme, which was Mozambique’s first since the lender suspended support six years ago. 

Source: Reuters

Namibia

Bank of Namibia heightens collaborations with Ghana and Botswana central banks

The Bank of Namibia (BoN) recently moved to strengthen collaboration and seek mutually beneficial relationships among African central banks during a recent visit to two countries. The central bank governor, Johannes !Gawaxab recently visited the governor of the Bank of Ghana, Dr Ernest Addison, and the governor of the Bank of Botswana, Moses Dinekere Pelaelo, to strengthen ties, the BoN said in a statement recently. “The courtesy visits extended collaboration efforts while discussing key price and financial stability issues and economic developments such as inflationary challenges in African economies because of the Russia-Ukraine conflict, potential recession in advanced economies, supply chain disruptions, and the responses to date based on each country’s peculiar circumstances,” the BoN said. The discussions also aimed to compare notes on the digital transformation of respective institutions, digital currencies, fintech, and financial inclusion, among other emerging central banking topics. “While pursuing collaboration on relevant projects to aid cooperation on these and other topics, the importance of learning from one another through benchmarking was emphasised,” the BoN said. 

Source: Namibia Economist

Namibia

Current Land Bill tries to ensure foreigners and locals partner to unleash the potential of communal areas

The current Land Bill is trying to ensure that foreigners be allowed to partner with local citizens to unleash the potential in the communal areas, in a leasing environment that protects the citizen, investor and the financier, an official said recently. The Bill is trying to attract banks to be able to invest in the communal areas, the Minister of Agriculture, Water and Land Reform, Carl Schlettwein told the cabinet, where he gave clarity on the ownership of communal land by foreign nationals. According to Schlettwein, in Namibia’s communal areas, foreign ownership can only be issued to a beneficiary whose property has been demarcated, surveyed, valued, and subsequently registered in instances at the Deeds Office if such a lease is above 10 years and in freehold areas. “We are puzzled when the government is bringing development to the people and allowing its citizen to find partners or investors and access to finances, [while] some people are blocking it by spreading rumours that are unfounded,” he added. Schlettwein said up front it is important to state that no one, no foreigner, and no Namibian can own land under a freehold title in communal land.

Source: Namibia Economist

Nigeria

Nigeria expects improved security to boost oil production, minister says

Nigeria’s oil minister said on Friday, 24 June that after meeting with oil companies recently, he expects to see some improvement in security in the sector, enabling Africa’s top producer to meet its Organization of the Petroleum Exporting Countries (OPEC) production quota by the end of August. Nigeria loses millions of barrels of crude oil a year because of theft and vandalism, underscoring how insecurity causes vast financial losses for the West African country. The president has pledged to ensure that oil theft is stopped and has set up dedicated courts to combat the problem. This year, the government budgeted 1.8-million barrels per day (bdp) of production. However, production hit 1.5-million bpd in the first quarter, a shortfall that the government blamed on attacks on oil infrastructure and crude theft. “For us in Nigeria we are at a low point. We are not able to meet our OPEC quota,” Oil Minister Timipre Sylva told a media conference, but added he expected to do so soon. “We have given ourselves just about a month to ensure that we can… we believe that by August we would see some improvement in security,” he said.

Source: Reuters

Rwanda

IMF Executive Board completes sixth review of the Policy Coordination Instrument for Rwanda

On Wednesday, 22 June 2022, the Executive Board of the International Monetary Fund (IMF) completed the sixth review of the Policy Coordination Instrument (PCI). The PCI was approved on 28 June 2019 to facilitate macroeconomic and financial stability, while advancing an ambitious reform agenda under Rwanda’s National Strategy for Transformation. Programme performance remains broadly satisfactory, with all quantitative and standard continuous targets through end-December 2021 met. However, the 12-month headline inflation average in 2021 fell outside the lower bound of the programme’s inflation target band, triggering consultation with the IMF Executive Board. All six reform targets through end-April 2022 were also implemented. Real GDP growth rebounded strongly to 10.9% in 2021, but spillovers from the war in Ukraine are compounding pandemic challenges by weighing down growth, increasing inflationary pressures and social needs, and straining fiscal balances amid high uncertainty and rising food insecurity concerns. Growth is expected to moderate to 6% in 2022 while headline inflation is projected to rise from 0.8% in 2021 to 9.5% in 2022.

Source: IMF

Rwanda

Rwanda to host 2022 World Circular Economy Forum in December, a first for Africa

The World Circular Economy Forum will, for the first time, take place on African soil in 2022, bringing together participants from around the world to absorb lessons from the continent and the wider global south toward building a more resilient and greener global economy. The Forum will be held from 6 – 8 December in Kigali, Rwanda. The 2022 World Circular Economy Forum 2022 will present some of the world’s best circular economy solutions as well as examine how businesses from Africa and elsewhere can seize new opportunities and gain a competitive advantage in the transition to low-carbon and climate-resilient economies. Business leaders, policymakers and experts from around the world are expected to participate. The first Forum was held in 2017. Under the theme From Africa to the World, the hybrid-format event will have proceedings livestreamed on big screens in several African cities to drive broad-based engagement with the forum. The format will enable remote participation in discussions about local models and examples of the circular economy.

Source: AfDB

Rwanda / United Kingdom

Rwanda to feature in UK’s new preferential trade system

British Prime Minister Boris Johnson has said that Rwanda is among countries expected to feature in the United Kingdom’s (UK) preferential trade system. Johnson was speaking at the closing of the Commonwealth Business Forum which concluded on Thursday, 23 June in Kigali. He said that the UK would on 6 July announce countries to feature in their new preferential trade system which among other things removes tariffs when exporting to the UK. Rwanda and the UK have been negotiating the trade deal over recent months to establish future trade relations between the two countries. The negotiations became necessary as Rwanda was previously trading with the UK under the protocols of the European Union (EU). However, Britain ceased becoming an EU member. Rwandans mostly export vegetables, fruits, flowers and chili to the UK market, among other products. The preferential system is likely to see Rwanda access the UK market without tariffs consequently reducing the cost of doing business. This could have impacts such as increased production and value addition locally. Johnson also expressed support for the African Continental Free Trade Area saying that it would bring prosperity to African states.

Source: The New Times

Senegal

IMF Executive Board completes Fifth Review under PCI, and Second Reviews under SCF and SBA, and request for augmentation for Senegal

On Wednesday, 22 June, the Executive Board of the International Monetary Fund (IMF) completed the Fifth Review under the Policy Coordination Instrument (PCI) and the Second Reviews under the Stand-by Arrangement (SBA) and the arrangement under the Standby Credit Facility (SCF). The completion of the reviews enables the immediate release of about USD215.78-million (SDR161.82-million) to Senegal. The Board also approved an augmentation of access and a waiver of the non-observance of performance criterion, and the modification of a performance criterion and quantitative targets. As a result, total access under the blended 18-month SBA/SCF arrangements approved in June 2021 was increased by about USD172.6-million (SDR129.44-million), from about USD650-million (SDR453-million), at the time of approval, to about USD776.67-million (SDR582.44-million). Soaring global fuel and food prices, compounded by the war in Ukraine, and, to a lesser extent, the freeze on trade with Mali due to sanctions by the Economic Community of West African States, are disrupting the post-pandemic recovery and exacerbating difficult policy trade-offs. 

Source: IMF

Sierra Leone

IMF Executive Board completes Fifth Review under ECF arrangement and concludes the 2022 Article IV consultation for Sierra Leone

On Monday, 27 June 2022, the Executive Board of the International Monetary Fund (IMF) concluded the 2022 Article IV consultation and completed the Fifth Review of the Extended Credit Facility (ECF) arrangement with Sierra Leone. The board’s decision enables the immediate disbursement of SDR15.555-million (about USD20.8-million). This brings Sierra Leone’s total disbursements under the arrangement to SDR93.33-million (about USD124.8-million). In completing the fifth review, the executive board also approved the authorities’ request for waivers for nonobservance of performance criteria pertaining to net credit to government at end-December 2021 and for the introduction of a multiple currency practice and exchange restriction, based on corrective actions taken by the authorities. Sierra Leone’s 43-month ECF arrangement was approved on 30 November 2018 for SDR124.44-million (about USD172.1-million at that time or around 60% of the country’s quota) and extended by 12 months on 27 July 2021. The programme aims to reduce inflation, mobilise revenue to allow for necessary spending consistent with debt sustainability, safeguard financial stability, and maintain external resilience to shock.

Source: IMF

Tanzania / China

Tanzania, China bolster diplomatic trade ties

As trade relations between Tanzania and China continue to grow, the former is planning to open another consulate in China's financial hub, Shanghai. Already, Tanzania has a consulate in Guangzhou, which is operating under the coordination of the embassy situated in Beijing, which is the administrative capital of China. This was revealed by the Director General of African Affairs in the China Ministry of Foreign Affairs, Wu Peng during an exclusive interview with the Daily News . He said, successful completion of the move will significantly boost the economic and trade cooperation between the two countries that has seen a steady growth despite the eruption of COVID-19 pandemic. "It's gratifying to see that our economic cooperation withstood the test of the COVID-19 pandemic. [T]he bilateral trade continued to expand with the volume in 2020 and 2021 growing respectively by 9.5% and 47% to USD6.74-billion," he said. Mr Wu also commended President Samia Suluhu Hassan for her continued efforts to ensure Tanzania fosters a more favourable business environment, as a result of the achievements that have been attained so far.

Source: Daily News