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Africa Business in Brief

 

issue 477 | 04 Dec 2022

Africa

AfDB launches model for deploying green financing across the continent

The African Development Bank (AfDB) is boosting the promotion of resilient, green and sustainable growth, with the launch of the African Green Bank Initiative, a model for deploying green financing across Africa. The initiative, which was presented at COP27 in Egypt, will support the implementation of African countries’ Nationally Determined Contributions (NDCs). Part of the African Financial Alliance on Climate Change (AFAC), the African Green Finance Facility Fund (AG3F) will support the Green Bank Initiative. The AG3F will provide technical assistance to governments and financial institutions in creating and capitalising green facilities, co-invest alongside those in green projects and provide de-risking instruments to increase private sector mobilisation. Launching the initiative, AfDB vice president for Energy, Power, Climate and Green Growth, Kevin Kariuki, said the African Green Bank model would help increase the continent’s access to global climate finance. “The Green Bank Initiative is a powerful tool for reducing financing costs and mobilising private sector investments in climate action in Africa,” Kariuki said.


Source: AfDB

East Africa

Road toll charges remain a hurdle to EAC cross-border trade

Road tolls have again emerged as hurdles to smooth trade between East African Community (EAC) member countries as each government charges its own fees on trucks moving into its territory. The region’s business stakeholders are, however, optimistic that trade in the bloc will increase by 11% in 2022-2023 if toll fees and domestic taxes are harmonised to prevent distortion and create a level playing field for businesses. “We are proposing that EAC partner states charge a uniform fee of USD10 per 100 kilometres (km) on all trucks the [same] way Uganda does,” said John Kalisa, chief executive of the East African Business Council (EABC). “Once collected, the amount should be used for the purpose for which it was intended – that is to repair and maintain the same roads,” he added. The USD10 charge that the EABC has proposed translates to approximately USD144 for the region, down from USD500. The anticipated USD144 levy is the flat rate across the Common Market for Eastern and Southern Africa (COMESA). EABC is reacting to complaints by importers who have highlighted the rising cost of doing business in the region occasioned by the varying charges in each member country even as normal cross border trade returns free of pandemic restrictions. 


Source: The EastAfrican

East / Southern Africa

Administrative processes simplified to advance the COMESA FTA

The Common Market for Eastern and Southern Africa (COMESA) has made major strides in simplifying administrative processes under the Free Trade Area (FTA) to deepen intra-regional trade which stood at USD90-billion as of 2020. This is a reduction from the 2019 figure of USD123.4-billion due to COVID-19. COMESA secretary general Chileshe Kapwepwe said this during the opening of the 43rd COMESA Intergovernmental Committee meeting in Lusaka on Tuesday, 29 November 2022. In 2023, she said, the secretariat will be rolling out further innovations on electronic exchanges of documents related to import and export as the region strengthens the COMESA digital FTA. She said the secretariat has implemented various policies and instruments including the Simplified Trade Regime (STR), trade facilitation and human mobility border specific action plans to increase formal small-scale cross border trade and ensure increased income for small scale traders, most of whom are women. Also earmarked for 2023 is the construction of border markets supported by the European Union (EU) at selected borders in target member states to provide convenient trading spaces for small scale cross border traders.


Source: COMESA

West Africa

Representatives from ECOWAS member states’ cybercrime units meet to build bridges

The Economic Community of West African States (ECOWAS) Commission aims to assist member states build capacity in units dedicated to fight against cybercrime and handle digital evidence. As such, through the Organised Crime: West African Response on Cybersecurity and fight against Cybercrime (OCWAR-C) project, representatives from member states’ cybercrime units met in Dakar, Senegal, from 23 to 25 November 2022 to build bridges between cybercrime units to enhance both formal and informal cooperation in the fight against cybercrime. The OCWAR-C project coordinator, Ms Rabiyatou Bah Ly reiterated the essence of the OCWAR-C project in the region and indicated that the close cooperation between the Directorate of Digital Economy and Post of the ECOWAS Commission and the focal points in member states has led to several achievements. She stated that this meeting of heads of cybercrime units aims to create a framework conducive to information sharing and to encouraging cooperation and collaboration to effectively fight against cybercrime in the region.


Source: ECOWAS

Angola / Sierra Leone

Angola, Sierra Leone sign cooperation agreement at AOG 2022

Angola’s National Agency for Oil, Gas and Biofuels (ANPG) and Sierra Leone’s Petroleum Directorate signed a historic cooperation agreement at the Angola Oil & Gas (AOG) 2022 Conference & Exhibition in Luanda, with a view to establishing a shared commitment to promoting and intensifying collaboration across the oil and gas sector. The memorandum of understanding (MoU) was signed by Paulino Jerónimo, president of the ANPG, and Foday Mansaray, Director General of Sierra Leone’s Petroleum Directorate. The MoU serves to outline opportunities for bilateral trade and investment; position oil and gas cooperation as mutually beneficial economically, technologically, socially and environmentally for both countries; and reaffirm stronger economic, cultural and social ties between Angola and Sierra Leone. “The [signed] MoU signals new opportunities for bilateral cooperation across the trade, energy and economic sectors between Angola and Sierra Leone. We are proud to collaborate with the Petroleum Directorate and are excited for what lies ahead for both nations. With this agreement, we can enhance the very industries that will drive Africa into a new era of economic progress,” stated Jerónimo.


Source: Energy Capital & Power

Chad

World Bank Group approves a new Country Partnership Framework for Chad

The World Bank Group has endorsed a new Country Partnership Framework with Chad, the Country Engagement Note (CEN), to support the country’s second Five-Year Development Plan. The CEN will be implemented during the 2023–2024 period. This new partnership framework was developed in close collaboration with the Chadian authorities, and was based on extensive consultations with the government, civil society, the private sector, and development partners. The Engagement Note aims to improve relations between the state and its citizens and to enhance governance and transparency in the management of the country’s fiscal debt, with a view to providing public resources that could be earmarked for reducing regional disparities and combating exclusion. It also seeks to increase inclusive access to basic services and infrastructure, while ensuring that border and peripheral areas and conflict-affected zones are effectively targeted. Lastly, the CEN focuses on the management of natural resources and sustainable agriculture to prevent and address the drivers of fragility in the country, including conflicts associated with scarce natural resources and the multiple challenges of climate change.


Source: World Bank

Equatorial Guinea / Democratic Republic of the Congo

Equatorial Guinea, DRC to develop joint oil refinery and storage facilities

Equatorial Guinea’s Ministry of Mines and Hydrocarbons and the Democratic Republic of the Congo’s (DRC) Ministry of Hydrocarbons have signed a memorandum of understanding (MoU) at the Angola Oil & Gas (AOG) 2022 Conference & Exhibition, to develop existing synergies across their respective upstream, downstream, energy infrastructure and logistics sectors. Signed by Equatorial Guinea’s Minister Gabriel Mbaga Obiang Lima and his Congolese counterpart, Minister Didier Budimbu Ntubuanga, the agreement provides for the establishment of a working group to achieve shared energy objectives and the implementation of specific projects. These include the financing and construction of an oil refinery in the DRC – to be jointly owned by both countries – to meet regional demand for refined petroleum products, along with the construction of storage facilities for refined products. The MoU aims to facilitate the transfer of knowledge and technical expertise from Equatorial Guinea to the DRC, with a view to developing the DRC’s oil and gas blocks, carrying out upcoming block allocation processes, engaging the local oil and gas sector and increasing total production.

Source: Energy Capital & Power

The Gambia

Stakeholders in The Gambia review draft legal and regulatory framework to govern the digital economy in West Africa

Stakeholders in the digital economy ecosystem in The Gambia gathered in Banjul, The Gambia, in the presence of the Economic Community of West African States (ECOWAS) Commission, from 15 to 17 November 2022 for a national consultation on the draft new legal and regulatory framework to govern the digital economy in West Africa. The consultation meeting was co-organised by the ECOWAS Commission and the Ministry of Communications and Digital Economy of The Gambia. In line with the implementation of this policy, the predecessor Ministry of Information and Communications Infrastructure has been decoupled to establish the Ministry of Communications and Digital Economy which has been given the mandate to spearhead the digital transformation agenda of The Gambia. The Permanent Secretary of the Ministry of Communications and Digital Economy of The Gambia, Ms Amie Njie mentioned that like the review of the regional legal and regulatory framework being carried out presently, a review of the Information and Communications Act 2009, the law governing the sector in The Gambia, is currently underway to address gaps and make it fit for purpose.

Source: ECOWAS

Namibia

A look into the “Namibia Green Hydrogen and Derivatives Strategy Report”

The recently launched Namibia Green Hydrogen and Derivatives Strategy sets out the Namibian Government’s action plan leading up to March 2025 to establish Namibia as a major global hydrogen producer. Chief among the goals of the strategy is the adoption of a fit-for-purpose legislative regime; a one-stop-shop implementation agency; and support mechanisms to ensure low costs of production, local content manufacturing, skills development and project finance. The strategy entails: the adoption of a fit-for-purpose regulatory framework in order to maximise the potential of the nation's hydrogen resources; the development of a Synthetic Fuels Act, which should include norms that adhere to international standards. These norms would seek to address operational uncertainty for developers and set quality levels to satisfy the demands of the worldwide export markets; and transparent land access and permit processes for hydrogen and renewable energy, and the fair treatment of investors and residents, all while safeguarding the environment and public safety. An implementation authority office (IAO) is envisaged to be set up as a one-stop-shop support system to create a transparent, streamlined and user-friendly process for all stakeholders in prospective hydrogen projects.

Source: ENSafrica

Namibia / Angola

Namibia and Angola ministries sign MoU for bilateral cooperation at AOG 2022

Angola’s Ministry of Mineral Resources, Petroleum and Gas and Namibia’s Ministry of Mines and Energy signed a memorandum of understanding (MoU) at this year’s Angola Oil & Gas (AOG) 2022 Conference & Exhibition in Luanda which will enhance bilateral cooperation in the petroleum and natural gas sector and improve the mutual social, economic and environmental interests between the two countries. Signed by Minister Diamantino Azevedo, Minister of Mineral Resources, Petroleum and Gas for Angola and Tom Alweendo, Minister of Mines and Energy for Namibia on 29 November, the MoU is poised to promote and strengthen cooperation between Angola and Namibia within the fields of petroleum and natural gas by establishing an institutional framework that facilitates the exchange of information, the management of data management and geological studies, and the development of joint projects. Additionally, the MoU will address the challenges of the energy transition within the African context and encourage local capacity building between the neighbouring countries through technological cooperation and the transfer of skills.

Source: Energy Capital & Power

Niger

ADF provides USD16-million to support financial sector deepening and inclusion

The Board of Directors of the African Development Fund (ADF), the concessional lending arm of the African Development Bank (AfDB) Group, has approved USD16-million in loan and grant financing to Niger to implement the Financial Sector Deepening and Inclusion Project. The project will strengthen mobilisation of long-term resources for financial service providers and improve financial inclusion of vulnerable populations, particularly women, youth, rural dwellers and micro, small and medium-sized enterprises (MSMEs). Specifically, the project will contribute to the establishment of a financing mechanism that is conducive to the needs of MSMEs through the capitalisation of the Financial Inclusion Development Fund and the strengthening of the technical and operational capacities of financial service providers, particularly the decentralised financial systems. This will enable them to develop financial products and services adapted to the needs of the population. All of this, with a view to increasing the resilience of the financial sector and reducing poverty in Niger.

Source: AfDB

Nigeria

Nigeria discovers, launches first crude oil field in north in 62 years

Nigeria, with crude oil reserves of more than 37 billion barrels and the sixth largest world producer, has discovered and launched the first oil drilling project in the north after decades of exploration. The Nigerian National Petroleum Corporation Limited (NNPC) unveiled the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the north-eastern part of the country. The oil wells – OPLs 809 and 810 – to be developed by Sterling Global Oil, New Nigeria Development Commission (NNDC) and NNPC, were launched by President Muhammadu Buhari on 22 November 2022. The discovery of oil in commercial quantity in the north came 62 years after the oil and gas discovery and drilling took place in Oloibiri in South-South Bayelsa states. The South-South region, also called Niger Delta, had since dominated oil production with highest oil and gas reserves in Nigeria. Other states where oil was later discovered in southern Nigeria over the years are Ondo, Imo, Abia, Lagos, Anambra and Kogi. The discovery and drilling of crude oil in Bauchi and Gombe axis is the first in the 19 northern states where millions of dollars had been spent by NNPC looking for oil.

Source: The EastAfrican

Sierra Leone

ECOWAS consults stakeholders in Sierra Leone on draft legal and regulatory framework to govern the digital economy in West Africa

Stakeholders in the digital economy ecosystem in Sierra Leone met in Freetown, Sierra Leone from 22 to 24 November 2022 for a national consultation on the draft new legal and regulatory framework to govern the digital economy in West Africa. The objective of the meeting, co-organised by the Economic Community of West African States (ECOWAS) Commission and the Ministry of Information and Communications of Sierra Leone, was to solicit contributions and feedback on the draft regional regulatory framework for the digital economy being developed by the ECOWAS and West African Economic and Monetary Union (WAEMU) Commissions. At the opening of the meeting, Mr Mawuli Amoa, program officer for Telecommunications and Networks highlighted how the digital economy sector is characterised by a fast pace of innovation and continuous enhancement of existing service offerings. He stated that the objective of ECOWAS in information and communications technology (ICT) is the establishment of a well-secured common digital market, and to achieve this objective, the policies and regulations governing the market need to be harmonised across the region. 

Source: ECOWAS

Tanzania

Tanzania targets USD2-billion in horticulture exports value by 2030

The government plans to unlock the full potential of horticulture as it seeks to make the industry the largest source of foreign exchange in the near future. The Agriculture Deputy Minister, Anthony Mavunde, disclosed the idea in Arusha, where he was attending the GlobalG.A.P. Summit organised by the horticulture key driver, Tanzania Horticultural Association (TAHA). “The government under President Samia Suluhu Hassan views horticulture as a significant industry in terms of foreign exchange earnings, job creation for youth and women, and poverty alleviation,” Mr Mavunde said. He told the summit, dubbed Enhancing Compliance for Expanded Market Access and Trade, that the government has developed a number of policies aimed at increasing the horticulture industry’s contribution to the economy to USD2-billion by 2030, up from the current USD750-million. Mr Mavunde cited opening up the international markets, the development of key infrastructures critical to reducing post-harvest losses from the current 35% to zero, and the improved handling of the perishables destined for overseas markets at the Dar es Salaam port as among the measures to stimulate the industry’s growth.

Source: The Citizen

Uganda

UGX11-billion centre to secure petroleum data

The Petroleum Authority of Uganda (PAU) has invested USD3-million (UGX11.3-billion) in a tier three data centre that will secure real time information from oil fields as drilling starts next month. The centre will offer support in securing and storage of vast quantities of data expected from drilling activities from more than 450 development oil wells in the Kingfisher and Tilenga development projects and from the refinery and the East African Crude Oil Pipeline projects. Mr Ernest Rubondo, the PAU CEO, said the centre situated in Entebbe, Wakiso District forms part of the broader National Petroleum Data Repository Infrastructure. Mr Rubondo also noted that government will invest in a Real-Time Monitoring Centre, a disaster recovery facility, and a seismic data transcription facility at a cost of UGX133-billion. The monitoring centre will enable the PAU to receive data and information from drilling, production, and crude oil transportation operations in the country and abroad. “The design of the monitoring centre has been completed, and its development is expected to commence,” Mr Rubondo said, adding that the design of a disaster recovery solution is expected to commence soon while development is planned to be concluded next year. 


Source: Monitor

Uganda

BoU to regulate SACCOS with UGX1.5-billion in savings

The Bank of Uganda has said it will, with the Microfinance Deposit-Taking Institutions (Amendment) Bill, 2022, start regulating at least 42 Savings and Credit Cooperative Societies (SACCOS) whose savings are above UGX1.5-billion. The regulation will be effected under the Micro Finance Deposit-taking Institutions (Registered Societies) Regulations, 2022. Speaking during the second Central Bank Financial Stability Symposium, Dr Tumubweinee Twinemanzi, the Bank of Uganda executive director supervision, said Cabinet had already considered and approved the Microfinance Deposit-Taking Institutions (Amendment) Bill, 2022; and authorised the Minister of Finance to submit the Bill to Parliament. “On [November 22], the minister presented the Bill for first reading in Parliament. Key amendments proposed in the Bill include: Permitting [Micro Deposit-taking Institutions] to extend their services through agents, provide insurance services and products through Bancassurance and [offering] Islamic finance (Islamic microfinance), among others,” he said, noting that the central bank is also mandated to provide supervisory oversight over registered societies with voluntary savings in excess of UGX1.5-billion and institutional capital of above UGX500-million.


Source: Monitor