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issue 470 | 16 Oct 2022

East Africa

EAC drafts guidelines on transferring pension within member countries

Workers in the East African Community (EAC) member countries could soon transfer their pension savings from one country to another, guaranteeing no losses even when one moves jobs. This is part of a proposal for the bloc to harmonise and make pension funds attractive to workers who until now have been saving in state-sponsored or private schemes in countries where they work. The urgency of reform was touched off recently by Kenyan President William Ruto, who tabled proposals to reform Kenya’s National Social Security Fund (NSSF). One such proposal is to make it mandatory for anyone with a regular income to contribute to the fund for their pension irrespective of their contractual terms, as well as making employers liable to match the regular contributions by employees. At the regional level, the EAC is expected to publish a report on the social protection laws and policies that will inform and guide the legal process for the portability of social security benefits as directed by EAC ministers of labour. A draft on the EAC coordination of social security benefits that is being validated in each partner state will provide rules and procedures for the coordination of social security benefits. 

Source: The EastAfrican

East Africa

East African states lead in domestication of AfCFTA trade requirements

East African member states have dominated the list of countries that have domesticated the African Continental Free Trade Area (AfCFTA) adequately to facilitate commencement of trade under the trading bloc’s framework. Speaking during the launch of the Guided Trading Initiative on 7 October in Accra, Ghana, AfCFTA secretary general Wamkele Mene said that so far three out the eight countries that have set the stage for trading under AfCFTA are from East Africa. The Guided Trade Initiative facilitates trade under the AfCFTA through matchmaking businesses and products for export and import between interested state parties. “I want to thank those countries that have expressed readiness to start trading under the AfCFTA. Those countries are Ghana, Kenya, Rwanda, Tanzania, Egypt, Mauritius, Cameroon and Tunisia. More and more state parties are expressing interest as they conclude the process of domesticating the AfCFTA in their law,” Mene said. Kenya and Uganda have already undertaken trade under the AfCFTA Guided Trade Initiative with Kenya having exported Exide batteries worth USD77 000 on 23 September to Ghana following importation by Yesudem Company Ltd. Kenya made its second export under the AfCFTA Guided Trade Initiative on 5 October which consisted of tea exports to Ghana.

Source: The EastAfrican

Benin

ADF to provide partial credit guarantee to facilitate resource mobilisation for SDGs

The Board of Directors of the African Development Fund (ADF), the concessional lending arm of the African Development Bank (AfDB) Group, has approved a partial credit guarantee to support Benin’s mobilisation of financing to meet United Nations (UN) Sustainable Development Goals (SDGs) targets. The partial credit guarantee will enable Benin to raise funds in foreign currency from international investors for expenditures related to meeting the SDG targets on agriculture and agro-industry, water and sanitation, health, affordable housing, education and renewable energy. Benin's Minister of Economy and Finance, Romuald Wadagni, said, "this unique operation is further proof of Benin's capacity for financial innovation, as it will soon become the first country to use a unique combination of credit enhancement for an SDG financing. The operation is consistent with our financing strategy, which places a central focus on development with environmental and social impact." Benin became, in 2021, the first country in Africa to publish an SDG Bond Framework Document and to issue SDG bonds in line with international best practice. The loan supported by the ADF’s partial credit guarantee will follow the principles of the SDG Framework Document, which outlines principles for resource use, project selection, and evaluation.

Source: AfDB

Burundi

Burundi central bank lifts ban on foreign exchange bureaus

Burundi's central bank has lifted a ban it imposed in February 2020 on foreign exchange bureaus with the aim of weeding out operators flouting official exchange rates. The Central African country faced a shortage of hard currency in the wake of a 2015 political crisis that prompted donors to suspend aid, but this year the European Union agreed to resume financial support and the United States pledged aid. During the two-year ban on foreign exchange bureaus, currency traders continued to buy and sell foreign currency on the black market, where the Burundian franc trades at a steep discount to the official rate. Foreign exchange bureaus will have to register with the central bank to re-open.

Source: Reuters

Cameroon / Nigeria / Côte d'Ivoire / Ghana

Cameroon, Nigeria request to join Côte d'Ivoire-Ghana cocoa initiative

Cameroon and Nigeria requested to join the Côte d'Ivoire-Ghana Cocoa Initiative (CIGCI), a joint body spearheading the interests of the two countries in the cocoa trade, the head of the initiative Alex Assanvo has said. The initiative was set up after a 2018 declaration by Côte d'Ivoire and Ghana, the world’s first and second-largest cocoa producers, on willingness to define a common sustainable cocoa strategy that would raise prices paid to farmers. It was created with the view of including other African countries. Representatives from Cameroon and Nigeria were invited to a CIGCI meeting in Abidjan to begin the process of joining the initiative, Assanvo told reporters after the meeting. “With Cameroon and Nigeria, we are going to represent around two-thirds of global cocoa production,” Yves Brahima Kone, chief executive of the Côte d'Ivoire Cocoa and Coffee Council, said at the meeting. “This will allow us to have more leeway in discussions with the industry on imposing a decent price for our cocoa farmers.”

Source: Aljazeera

Ethiopia / Sudan / Djibouti

Ethiopia earns USD13-million in power export to Sudan, Djibouti

Ethiopia’s power agency has earned USD13-million from exporting electricity to Sudan and Djibouti, it has announced. According to Ethiopian Electric Power (EEP), the state power utility, the money was secured in the last two months of the Ethiopian fiscal year. The figures show that the country earned USD5.61-million from exporting 112.36 million kilowatt-hours (kWh) electricity to Sudan and USD7.42-million from exporting 120.39 million kWh electricity to Djibouti. Initially, Ethiopia planned to earn more than USD18.55-million by exporting more than 349.56 million kWh of electricity to Sudan and Djibouti in the last two months. However, it only managed to export 232.76 million kWh of electricity and earned USD13.04-million, achieving only 70.29% of its planned earnings. The total electricity sold was 116.8 million kWh which is 33.42% less than what was planned. Power export to Djibouti saw a rise exceeding the initial target by more than 12.29%. On the contrary, Sudan's power import from Ethiopia saw a decline – only 46.36% of expected power output was sold to Sudan, one of the region's largest countries. The reported decline was due to reduced demand from the Sudanese electricity company, EEP said without giving further details.

Source: The EastAfrican

Kenya

Climbing iron, steel prices cut Kenyan imports by 20%

Iron and steel imports shrank by 20% in the second quarter of the year amid a slowdown in the construction sector. The latest Kenya National Bureau of Statistics (KNBS) data shows that the imports of iron and steel dropped to 225 126 metric tonnes (MT) in the period under review from 282 132 MT in the corresponding quarter in 2021. Prices of some steel products in Kenya shot up 40% in the first quarter due to a shortage occasioned by supply fears related to Russia’s onslaught on Ukraine and the battered shilling. “The quantity of imported iron and steel declined from 283 132 tonnes in the second quarter of 2021 to 225 126 tonnes in a similar period of 2022.” Steel is one of the world’s most important construction materials, with China being one of the key buyers of the metal from global producers. The construction sector experienced a mixed performance due to a rise in cement consumption, increased quantities of bitumen and more credit being advanced to developers. The sector’s performance softened from a growth of 6.8% in the second quarter of 2021 to 5.8% in the same period this year. KNBS said, “the sector’s performance was manifest in cement consumption and import of construction materials.”

 

Source: Business Daily Africa

Namibia

Namibia launches Digital Nomad Visa

Namibia is again selling her scenic landscapes, safety, and good internet connectivity to professionals who are location-independent and self-sufficient, to come and live, work and travel hassle-free in Namibia for up to six months. The peddling is happening through issuance of a new Digital Nomad Visa, which was launched by the Namibia Investment Promotion and Development Board on Tuesday, 11 October. At the launch, the investment promotion board said many countries with appreciable tourism sectors suffering from a reduction in global travel have begun offering Digital Nomad Visas to remote workers. Applicants wanting to take advantage of the Namibia Digital Nomad Visa will have to prove that they earn enough money to be self-sufficient. “They will need to demonstrate proof of income / funds (payslip / employment contract) to sustain themselves and dependants (USD2 000 – applicant, USD1 000 – accompanying spouse, USD500 – per accompanying child per month),” reads the requirements. Applicants must also have valid travel documents, health or travel insurance covering risks while in Namibia. Approximately USD62 (NAD1 100) will be required upon arrival as payment for the visa. Some 40 countries globally are already offering Digital Nomad Visas, and in Africa Mauritius, Seychelles and Cabo Verde offer the special visa. Seven countries are in the process of introducing a Digital Nomad Visa, including South Africa and Kenya. 

Source: The Namibian

Namibia / Zambia

Namibia, Zambia partner in 2 000 km fuel pipeline plan

If all goes well, Namibia will be supplying Zambia with over 100 000 barrels of fuel a day through a 2 000 kilometre (km) oil and gas pipeline stretching from Walvis Bay to Lusaka. The plan was launched with the signing of an agreement on the Cooperation in Facilitating Private-Sector Development and Implementation of an Oil Products and Natural Gas Pipeline Project (NAZOP) on Thursday, 6 October. It was officiated by the two countries' energy ministers on the last day of the 10th session of the Namibia-Zambia joint permanent commission of cooperation at Swakopmund. Zambian Energy Minister Peter Kapala said the primary focus of the agreement is to enhance economic cooperation between the two governments in the energy subsector. “Petroleum and its derivatives are driving engines of growth and development of our economies, especially considering the logistics and transport industry,” he said. He said the two governments, with their private partners, will work together to assess the cost and viability of the project to secure financing. This will be followed by environmental and social impact assessments. “Given the volatility of oil prices, we need to take advantage of the means to reduce the cost of delivering petroleum products to our people,” Kapala said.

Source: The Namibian

Nigeria

Improving the business enabling environment in Nigeria to create jobs and boost inclusive growth

The World Bank has approved the Nigeria State Action on Business Enabling Reforms (SABER) Program-for-Results. The USD750-million International Development Association (IDA) credit will help Nigeria accelerate the implementation of critical actions that will improve the business enabling environment in states. Nigeria has made progress in advancing reforms to eliminate constraints in the business environment, especially through actions driven by the Presidential Enabling Business Environment Council (PEBEC). However, Nigeria’s ability to attract domestic and foreign investment remains low compared to its peers. Nigeria’s 36 states and the Federal Capital Territory (FCT) are capable of catalysing private investment but vary significantly in their efforts and ability to do so. The programme is in line with Nigeria’s National Development Plan (NDP) that sets an ambitious strategy to pursue sustained private sector-led economic growth that is aimed at generating 21 million full-time jobs and lifting 35 million people out of poverty by 2025. SABER will support states to improve the efficiency of land administration, the regulatory framework for private investment in fibre optics infrastructure, the services provided by investment promotion agencies and public-private partnership (PPP) units, and the efficiency and transparency of government-to-business services.

Source: World Bank

Nigeria

Mini-grids to boost energy access a win for Nigeria

The Rural Electrification Agency (REA) has launched the Africa Mini-grids Program (AMP) to boost energy access across Nigeria. The programme aims to support access to clean energy by increasing the financial viability, and promoting scaled up commercial investment, in renewable energy mini-grids, with a focus on cost-reduction levers and innovative business models. The four-year project will be funded by the Global Environment Facility (GEF) and supported by the United Nations Development Programme (UNDP) in Nigeria. The programme is active in 21 African Countries and the Nigeria national project implemented by the REA is the first to commence implementation following the official launch at an inception workshop hosted in collaboration with representatives from the UNDP, GEF, Federal Ministries of Power, Environment and Agriculture as well as other key stakeholders in the rural development space. Speaking at the launch, Mohamed Yahya, the UNDP resident representative in Nigeria mentioned that the UN programme is delighted with the launch of the AMP national project in Nigeria with the REA as the project’s implementing partner. He said, “access to reliable, sustainable, affordable energy is a catalyst to socio-economic development, and in achieving the Sustainable Development Goals (SDGs).” 

Source: ESI Africa

Tanzania

Mining sector hits 7.3% of Tanzania's GDP

The contribution of the mining sector to the economy increased to 7.3% last year from 4.8% recorded in 2018, moving closer to the government targets. In her inaugural speech to parliament last year, President Samia Suluhu Hassan said the government would strive to increase the mining contribution to at least 10% of GDP by 2025. Briefing reporters on Friday, 7 October, Mining Commission executive secretary Yahya Samamba said the sector’s contribution was on the right track. “We believe we will achieve the 10% target before 2025,” he said during a meeting broadcast live from Dodoma. “The sector is growing fast, investors are coming, and the government is creating a conducive environment for investment,” he added. The government is banking on improving investment climate and embracing joint ventures with the world’s largest miners, among other measures that seek to achieve the goals in the sector. Tanzania is home to a range of minerals including the best performing gold which, according to the Bank of Tanzania (BoT), is now the country’s leading foreign exchange earner. Gold generated a total of USD2.7-billion exports in 2021, the BoT indicates.

Source: The Citizen

Uganda

Ugandan government grants land to Afreximbank for the construction of the Afreximbank Africa Trade Centre in Kampala

The African Export-Import Bank (Afreximbank) has been granted land in Kampala by the Ugandan government to build an Afreximbank Africa Trade Centre (AATC). The infrastructure will facilitate the flow of trade information and provide trade services across the East Africa region. The site, located at Nakasero in central Kampala, will house the landmark trade centre, which will host Afreximbank’s permanent East Africa regional office, as well as a world-class hotel, a business information centre, a large conference centre and a technology incubation hub. The Kampala AATC is also set to accommodate other regional, continental and global financial and development institutions. Among other AATCs on the continent, the Kampala AATC will make the Ugandan capital city an intra-African trade hub for the eastern African region and help to position Kampala as a vital financial services centre. Mr Matia Kasaija, Uganda’s Minister of Finance, Planning and Economic Development, handed over the land title to Professor Benedict Oramah, president and chairman of the Board of Directors of Afreximbank, during a ceremony held at the site of the future AATC on 3 October 2022. 

Source: Afreximbank

Zimbabwe

Mining companies operating in Zimbabwe to pay royalties in commodities and cash

Miners operating in Zimbabwe will have to pay some of their royalties in refined metal rather than cash. The country's president announced the move in a newspaper on Sunday, 9 October, as the country struggles to benefit from the demand for its resources. "Starting this October, the government now requires that part of these royalties come as actual refined mining products," President Emmerson Mnangagwa wrote in the paper. The main minerals found in Zimbabwe include gold, platinum, chrome, coal, diamonds and lithium. For a start, President Mnangagwa does not want the policy to "be frozen in time", the law will target four of the key minerals. "Two of them are precious; they are gold and diamonds [...] The other two are high-value minerals, and these are lithium and platinum group of metals (PGMs)", the president added. In the article, the Zimbabwean leader said he had already tasked the “ministries of Finance and Economic Development, and that of Mines and Mining Development" with fine-tuning the policy, "in close consultation with the mining sector and mining concerns affected." He also said the new policy would require the Reserve Bank of Zimbabwe to have a system "for demanding and collecting designated minerals, even where these are processed beyond our borders".

 

Source: Africanews