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issue 485 | 26 Feb 2023

Africa

Africa low on carbon emission list due to uneven distribution of wealth, energy – report

A new report by the International Energy Agency (IEA) says the world’s top 1% of emitters produce more than 1 000 times more carbon dioxide (CO2) than the bottom 1%, with South Africa the only African nation on the list. Factors that contribute include the uneven distribution of wealth, energy use and the consumption of goods and services. The average North American, for example, emitted 11 times more energy-related CO2 than the average African. The report points out that globally, the top 10% of emitters were responsible for almost half of the global energy-related CO2 emissions in 2021, compared with 0.2% for the bottom 10%. CO2 emissions are no exception. Emissions vary across countries and across younger and older generations, but even more so across income groups, it said. “The top 10% averaged 22 tonnes of CO2 per capita in 2021, over 200 times more than the average for the bottom 10%. There are 782 million people in the top 10% of emitters, extending well beyond traditional ideas of the superrich. By comparison, around 0.6% of the world – an estimated 46.8 million individuals – are considered millionaires or billionaires.”

Source: ESI Africa

Africa / Japan

AfDB Group and Japan sign exchange of notes for USD350-million private sector assistance loan to finance bank’s private sector operations

The African Development Bank (AfDB) Group and Japan have signed an exchange of notes for an eighth private sector assistance loan from Japan to finance the bank’s private sector operations. The loan agreement, to the tune of JPY44.1-billion or USD350-million, carries an interest rate of 0.11% and a repayment period of 30 years, with a grace period of 10 years. The loan will contribute significantly to funding the bank’s private sector operations through credit lines. The signing took place at the AfDB Group’s headquarters on Friday, 17 February, between its Senior Vice President, Bajabulile Swazi Tshabalala, and Japanese Ambassador to Côte d'Ivoire, Katsuya Ikkatai. The agreement comes under the joint initiative known as the Enhanced Private Sector Assistance Initiative for Africa (EPSA). This provides financing for the bank’s private sector operations through a line of credit from the Japan International Cooperation Agency (JICA). The loans are provided on concessional terms. 

Source: AfDB

East / Southern Africa

Capacity building for the implementation of the TFTA gets underway

Capacity building of stakeholders who will play a key role in the implementation of the Tripartite Free Trade Area (TFTA) has begun. The initial focus is on the Rules of Origin, which represent the most important cross-border trade instrument in the economic integration agenda. The TFTA brings together the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern Africa Development Community (SADC). The three regional economic communities represent 53% of the African Union (AU) members, more than 60% of continental GDP, and a combined population of 800 million. The first regional Training of Trainers session on the TFTA Rules of Origin was hosted in Nairobi, Kenya from 17 – 18 February 2023. It targeted the business community, revenue authorities’ customs services departments, government ministries and agencies and organisations that support trade to enhance their skills and knowledge on TFTA Rules of Origin. This will improve their operational performance and support the uniform application of TFTA Rules of Origin to enhance regional cooperation and intra-tripartite trade.

Source: COMESA

Southern Africa

SACU chair announces the finalisation of the SACU tariff offer to AfCFTA

The current chair of the Southern African Customs Union (SACU), Cleopas Sipho Dlamini officially announced the finalisation of the SACU Tariff Offer on 18 February during the 36th Ordinary Session of the African Union (AU) Assembly that was held in Addis Ababa, Ethiopia. Mr Dlamini in a statement reiterated SACU’s commitment to Africa’s integration and specifically the implementation of the African Continental Free Trade Area (AfCFTA). The submission of the Tariff Schedule speaks to that commitment with the view to ensuring that the SACU business community leverages on the benefits of the AfCFTA. Concomitantly, President of Botswana, Mokgweetsi Eric Keabetswe Masisi, deposited the instruments of ratification of the AfCFTA. Following Botswana’s submission, all SACU member states have now ratified the Agreement establishing the AfCFTA. According to the statement, SACU submitted an initial Tariff Offer in November 2020, in preparation for the commencement of trading in January 2021 which needed further work to comply with the agreed modalities. Subsequently, the region worked tirelessly to meet the threshold of 90% products to be liberalised. 

Source: Namibia Economist

Southern Africa

SADC convenes annual Payment Systems Regional Conference

The Southern African Development Community’s (SADC) Payment Systems Subcommittee under the SADC Committee of Central Bank Governors (CCBG) convened its annual regional conference in Windhoek, Namibia, on 13 and 14 February 2023 to deliberate on developments in the regional payment systems ecosystem, and most importantly the impact of digitisation on initiatives to enhance financial inclusion and integrity. The SADC Secretariat, through the Support to Improving the Business Environment Programme (SIBE) in the SADC Region, in collaboration with the Bank of Namibia and the Regional Payment Systems Integration Project office, supported the conference. SIBE is a five-year programme implemented by the SADC Secretariat and supported by the European Union (EU) to achieve sustainable and inclusive growth and support job creation through the transformation of SADC into an investment zone promoting intra-regional investment and foreign direct investment (FDI), in particular for small and medium-sized enterprises (SMEs). The Payment Systems Regional Conference was last held during the pre-COVID-19 era.

Source: SADC

Angola

AfDB supports the renewable energy sector in Angola

Implemented in Angola between 2019 and 2022, the Angola Renewable Energy Program (AREP) has helped to establish a viable and sustainable procurement framework that stimulates investments by independent power producers (IPPs) in the Angolan renewable energy sector, particularly in solar energy and hydropower. By the end of 2021, Angola had made progress by increasing the national electrification rate (from 33% in 2017 to 43% in 2021) and raising the renewable component of the energy mix from 59% in 2017 to 64% in 2021. In particular, the programme supports the Angolan government’s efforts in increasing renewable energy production four-fold, from 125-megawatt hours (MWh) to 500 MWh (mainly solar). The Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by the African Development Bank (AfDB), provided the programme with a USD1-million grant. AREP will help reduce the country’s dependence on fossil fuels and mitigate the adverse effects of mega energy projects. It also seeks to foster private investment in the renewable energy sector and to build capacity for project design, implementation and monitoring.

Source: AfDB

Democratic Republic of the Congo

KCB Group makes U-turn on full buyout of DRC bank

KCB Group has retreated from an earlier plan of buying the remaining 15% stake in the Democratic Republic of the Congo’s (DRC) Trust Merchant Bank (TMB), citing the need to ride on the expertise of founding shareholders. The lender, which in mid-December last year acquired an 85% stake in TMB, had planned to let the existing shareholders continue holding the balance for at least two years and then move to buy them out fully. Now KCB Group chief executive Paul Russo says the lender will instead leave the founding shareholders – Robert Levy (13%), Oliver Meisenberg (1%) and the estate of Augustin Kabila Kisole (1%) – to remain in the subsidiary’s ownership list. Mr Russo explained that the DRC is a totally new market for KCB Group and retaining investors who have been there for long will help build a partnership to grow the subsidiary’s value much faster.

Source: Business Daily Africa

Equatorial Guinea

Equatorial Guinea signs three production sharing contracts with Panoro Energy, Africa Oil Corporation

The signing of three production sharing contracts with Panoro Energy and the Africa Oil Corporation, is a step in the right direction regarding expanding exploration in Africa. Antonio Oburu Ondo, Equatorial Guinea’s recently appointed Minister of Mines and Hydrocarbons, has awarded independent exploration and production company, Panoro Energy, a 56% participating interest and operatorship in Block EG-01 offshore the hydrocarbon-rich West African country, as well as Canadian oil and gas company, the Africa Oil Corporation, two production sharing contracts (PSC) for offshore Blocks EG-18 and EG-31. With the PSCs, the Ministry of Mines and Hydrocarbons, under the leadership of Minister Ondo, has taken significant strides towards opening up Equatorial Guinea’s offshore basins even further, working closely with two reputable oil and gas companies to usher in a new era of hydrocarbon exploration and production. For Panoro, the awarding of Block EG-01 enables the company to work alongside its partners in the block, Kosmos Energy (24%) and national oil company, GEPetrol (20%), to conduct subsurface studies on existing seismic data to identify and define hydrocarbon reserves available over a period of three years.

Source: African Energy Chamber

Ghana / The Gambia

How Ghana and The Gambia are planning to bolster their digital economies

As legacy economies continue to fall out of favour the world over, Ghana and The Gambia are ramping up efforts to build technology-based economies. In a time when most economies run by oil, manufacturing, and agriculture are shifting to digital economies, the two countries with a combined population of 35 million do not want to be sidelined. Now, they have joined Nigeria, Rwanda, Morocco, and Djibouti as members of the Digital Cooperation Organization (DCO) that aims to link Africa and Gulf countries in the realisation of a common digital economy agenda. Other members are Bahrain, Jordan, Kuwait, Oman, Saudi Arabia, Cyprus, and Pakistan. They collectively represent nearly USD2-trillion in GDP and a market of nearly 600 million people. Africa faces funding shortfalls in technology infrastructure, challenges in implementing data protection policies, and slow adoption of frontier technology skills, but hopes that partnerships supporting its digital economy agenda could unlock financing. The Gambian government continues to pursue the realisation of a digital transformation agenda, even in the midst of economic turmoil. 

Source: Quartz

Kenya

Kenyan employers required to immediately comply with new NSSF contributions

Kenya’s Court of Appeal has given a long-awaited nod to the National Social Security Fund Act, 2013 which will enhance basic social security protection and increase the adequacy of social security benefits paid out by the National Social Security Fund (NSSF). The implementation of the Act was delayed since it was challenged in court. The NSSF contributions are now capped at 12% of an employee’s monthly pensionable earnings where the employer is required to contribute 6% and the remaining 6% is contributed by the employee. The employer makes direct payments to the NSSF. Employers must apply the new rates immediately and to pay the enhanced contributions by the 9th day of each month. 

Source: ENSafrica

Kenya

Commonwealth office opened in Nairobi to boost trade

The Commonwealth Enterprise and Investment Council (CWEIC) has launched its East and Central Africa hub in Nairobi with Equity Group as its partner. The CWEIC which is the Commonwealth’s business network will promote trade and investment by positioning the region strategically. The council will work closely with Equity Group to put in place initiatives that will encourage international investors and partners to capitalise on the opportunities arising from the African Continental Free Trade Area (AfCFTA) Agreement within the region. Speaking during the launch, Lord Marland of Odstock, chairman of the CWEIC announced Dr James Mwangi, Equity Group managing director and CEO as the chair of the CWEIC’s East and Central Africa Hub. ‘’As a business network, we look forward to tapping into Equity Group’s extensive network within the region and the expertise of its leadership through Dr Mwangi to build connections and partnerships for the business community from the Commonwealth member nations within the local markets,’’ Marland said.

Source: Capital Business

Mauritius

Mauritius accedes to the Madrid Protocol (International Trade Mark System)

On 6 February 2023, the Government of Mauritius deposited its instrument of accession to the Madrid Protocol. This development will allow trade mark owners to file a single trade mark application through 114 member states (IP Offices) that covers up to 130 countries of the Madrid System, instead of filing national applications in each territory of interest. The implementation of the Madrid System will also allow trade mark owners to maintain and expand their trade marks through a cost effective, centralised system. In addition to individual countries, it will be possible to designate the three regions, namely Benelux, the European Union, and the African Intellectual Property Organization (OAPI), in an International Registration under the Protocol. Further to the proclamation of the Industrial Property Act 2019, regulations and a schedule of fees have also been published, thereby clearing the way for the implementation of the Madrid System on 6 May 2023. However, the fee for designating applications in Mauritius and other related information is yet to be released by the World Intellectual Property Organization (WIPO). 

Source: ENSafrica

Namibia

Agribank to focus on financial sustainability

The Agricultural Bank of Namibia (Agribank) says financial sustainability, service delivery and socio-economic transformation are at the centre of its operations. This was said by board chairperson Josephat Mwatotele during the recent inauguration of the revamped Agribank Rundu branch. In a statement issued by the bank's public relations officer, Fillemon Nangonya, Mwatotele said financial sustainability is required for Agribank to continue delivering on its agriculture development mandate. “Agribank must stretch its limited resources in new and innovative ways; be prudent and transparent in the use of resources including cost management; grow its loan book and find new ways to grow its capital base,” Mwatotele said. He emphasised that “clients must make timely loan repayments to the bank, as this is the only way we can make a wider and inclusive impact on agriculture and contribute to the development of our country.” Mwatotele said the bank is reviewing its policies and streamlining internal processes to make it more responsive to customers' needs. 

Source: The Namibian

Nigeria / Senegal

Nigeria, Senegal ink local content deal

A new memorandum of understanding (MoU) signed between the Nigerian Content Development and Monitoring Board (NCDMB) and Senegal’s Technical Secretary of the National Content Monitoring Committee of Senegal (ST-CNSCL) will boost cooperation between the two countries regarding oil and gas industry growth, capacity building and skills development. According to the terms of the MoU signed between the agencies, NCDMB will provide ST-CNSCL with strategic advice and guidance around energy law development and implementation. NCDMB will also provide ST-CNSCL with advice on workforce and skills development and data collection to help Senegal maximise local content buildup as the country joins the list of African oil and gas producing countries in 2023 with the Sangomar Oil Development and Greater Tortue Ahmeyim gas projects coming online. While Nigeria has progressed with its local content development plans with the country achieving 54% of its 70% target set for 2027, the MoU between the two will be crucial in helping Senegal ensure its people, local companies and economies benefit from the development, exploitation and monetisation of oil and gas reserves.

Source: Energy Capital & Power

Rwanda

Rwanda economic update: Nature-based tourism holds tremendous economic potential

The Rwandan economy continued to achieve strong growth in 2022 despite global headwinds and an unprecedented increase in food prices, according to the 20th edition of the Rwanda Economic Update report released on Tuesday, 21 February. Rwanda’s GDP grew by 8.4% in the first three quarters of 2022, after reaching 11% in 2021. Growth was spurred by the services sector, especially the revival of tourism, leading to the improvement of employment indicators to levels similar to those at the beginning of the COVID-19 pandemic in early 2020. However, rising food prices may have exacerbated poverty and food insecurity, according to the Rwanda Economic Update. The increase in international commodity prices, related to the war in Ukraine combined with the poor harvest in Rwanda, have led to substantial increases in energy, transport, and food prices, with urban inflation rising to 21.7% in November 2022.Going forward, Rwanda’s economy is projected to expand at a slower pace in 2023-2025. While tourism is likely to continue to recover, external demand is likely to weaken as a result of a major increase in interest rates by the central bank to reduce inflation.

Source: World Bank

Rwanda

Exploration, trading and ESG in Rwanda

Aterian, the exploration and development company advancing its portfolio of African-focused critical and strategic metal assets, has provided an operational update on its work streams in Rwanda. The company’s wholly-owned Rwandan subsidiary, Eastinco Limited (Eastinco), is currently engaged in three partnerships within Rwanda with local entities to explore and develop tantalum, niobium, tin, and lithium opportunities. Eastinco holds a trading licence, which will also facilitate the trading of metal concentrates within the region. Prospecting over the HCK licence has identified 18 zones of potentially tantalum and niobium hosting pegmatite, frequently with multiple pegmatite dykes observed at most locations. A total of 22 target pegmatite zones have now been discovered on the combined southern projects, making this a strong exploration play. “We are excited to have begun the geophysical survey work on the HCK project in Rwanda with initial fieldwork having confirmed the presence of 22 pegmatite zones across the southern projects.

Source: Mining Review Africa

South Sudan

South Sudan energy summit to host APPO secretary general as keynote speaker

Dr Omar Farouk Ibrahim, secretary general of the African Petroleum Producers Association (APPO), will attend the sixth edition of the South Sudan Oil & Power 2023 (SSOP 2023) – taking place from 14 – 16 June, in Juba, to facilitate deals among African petroleum producers and global investors. As the only major oil producer in East Africa, South Sudan is looking to global partners to advance exploration and production efforts and to its regional counterparts in the Nile Basin and East African Community to foster new relationships, consolidating its position as the engine of business and investment in East Africa. APPO’s participation at SSOP 2023 will help advance this agenda, where Dr Ibrahim will engage with stakeholders and the South Sudanese government on topics such as improving regional cooperation; creating cross-border fuel security and stability; bolstering investment in the mid and downstream sectors; and connecting East Africa through infrastructure deployment. Already, South Sudan has been discussing joining the high-level organisation, and APPO’s participation at the country’s official energy conference will help advance these discussions.

Source: Energy Capital & Power

Uganda

Anxiety as Treasury set to decide on consumer taxes

The focus is on the National Treasury as it makes a final decision on its proposed tax raises on various consumer goods amid resistance by manufacturers and business groups. Consultations and submission of comments on the draft Excise Duty (Excisable Goods Management System) (Amendment) Regulations, 2023 recently closed, leaving technocrats with the task of deciding on the fate of the new tax proposals. The Treasury had bowed to pressure from business groups including the Kenya Association of Manufacturers which are opposed to the new taxes and extended the period of consultations to 21 February 2023, from the initial 7 February 2023. In the proposed tax changes, cosmetics, alcohol, cigarettes, and fruit juice consumers face higher prices of the commodities as the government chases more revenues. The National Treasury targets at least 14 categories of excisable goods in new tax proposals, with the four – consumed by millions of Kenyans daily – topping the list of products it is proposing to increase excise fees on by up to 316.7%.

Source: The Nation

Uganda

Uganda wants stern laws against East Africa trade barriers

Uganda wants stern laws enacted against barriers inhibiting trade in the East African Community (EAC) region. The member of the seven-nation bloc wants the East African Legislative Assembly (EALA) to spearhead the exercise. “I urge EALA to pass laws that would drastically reduce tariff and non-tariff barriers,” said Thomas Tayebwa, the Deputy Speaker of the Uganda Parliament. He said during the visit to the National Assembly in Kampala by EALA Speaker Mr Joseph Ntakirutimana that such barriers have significantly impacted on trade. Mr Tayebwa also called on EALA to come up with a resolution that would compel the council to impress upon their respective partner states to comply with the summit directives. One of these is a directive made in May 2016 that established the Common Higher Education Area under the EAC Common Market Protocol. Earlier, Mr Ntakirutimana paid a courtesy call on the Speaker of the Uganda Parliament Ms Anita Among where he was told to fast-track laws that would enhance regional integration. EALA, Ms Among argued, should fast-track laws “that will enhance the visibility of EALA in the EAC region as well as promote integration.”

Source: The Citizen

Zambia

Zambia invests in solar plant to combat power outages

Zambia is set to build a solar plant as it aims to increase its electricity generation capacity amidst ongoing power cuts. Local media reported recently that the government had reduced the outages from 12 to eight hours a day. Zambia President Hakainde Hichilema called the investment in the Riverside Solar Plant in Kitwe town in the Copperbelt Province “a big achievement toward the country’s goal of ending power cuts.” Hichelema said the government also intended to double the country’s electricity generating capacity in order to support the needs of industries. The plant is a project of the Copperbelt Energy Corporation (CEC), a publicly listed company that provides electricity to the country’s mining industry. The corporation’s chairman London Mwafulilwa told President Hichilema at the official commissioning ceremony recently: “the site of the solar photovoltaic (PV) plant you are commissioning… is split into two, and covers a total area of roughly 30 hectares. The solar PV plant and grid connection is comprised of 61 300 kilometres of transmission line.” 

Source: ESI Africa