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issue 488 | 19 Mar 2023

Africa

Africa CDC hosts lead partners of Partnership for African Vaccine Manufacturing for review of vaccine manufacturing ecosystem in Africa

The Africa Centres for Disease Control and Prevention (Africa CDC) hosted its lead partners at a meeting on the sidelines of the Africa Health Agenda International Conference 2023 held in Kigali, Rwanda. The meeting, which took place from 9-10 March, was dedicated to identifying a clear set of annual objectives and deliverables for the Partnership for African Vaccine Manufacturing (PAVM) in 2023. It brought together the PAVM’s Secretariat and representatives from partner organisations including the African Union Development Agency (AUDA-NEPAD), the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB), the African Continental Free Trade Area (AfCFTA) Secretariat, African Export–Import Bank (Afreximbank), the Africa Vaccine Manufacturers Initiative (AVMI), and members of academia. The lead partners reviewed the eight bold programmes outlined in the PAVM Framework for Action, prioritised a set of practical actions and defined a collaboration framework that enables implementation, effectiveness and quick results in support of African vaccine manufacturing. 

Source: AfDB

Africa

AfDB, Coalition for Dialogue on Africa launch USD5.9-million project to stem illicit financial flows from Africa

The African Development Bank (AfDB) and the Coalition for Dialogue on Africa (CoDA) have officially launched a three-year support project to improve regional coherent and coordinated response to illicit financial flows (IFFs). The project will help African stakeholders actively engaged in stemming such flows to improve domestic revenue mobilisation in African countries. The launch of the African Financial Integrity and Accountability Support Project (AFIAP) took place at the African Union (AU) headquarters on 7 March. The project aims to improve regional coordination of combatting illicit financial flows and the oversight and accountability of public finances, for optimal revenue mobilisation and management in African countries. It will support the coordinated implementation of recommendations of the High-Level Panel on Illicit Financial Flows and the implementation of joint strategies and initiatives related to international taxation. The grant will support CoDA in its role as the secretariat of both the AU High-Level Panel on IFFs, the Joint Secretariat of the Consortium to Stem IFFs from Africa, and the annual African Fiscal Policy Forum. 

Source: AfDB

Africa

Carbon credit opportunities and benefits for African oil and gas players unpacked at ARDA week

The International Emissions Trading Association’s (IETA) managing director explored Africa’s carbon credits markets within the midstream and downstream sector during the African Refiners & Distributors Association (ARDA) Week 2023 annual conference. The third day of the conference – which the African Energy Chamber (AEC), as the voice of the African energy sector, is participated in to advance the growth of Africa’s downstream sector – kickstarted with a presentation on how Africa’s midstream and downstream players can optimise emission reductions initiatives for environmental sustainability while ensuring energy security. The presentation, delivered by Andrea Abrahams, managing director, Voluntary Carbon Markets at the IETA, explored challenges and opportunities within the carbon credits markets for oil and gas companies operating in Africa. “With such a growing energy demand, the growth potential for the carbon credits market in Africa is acute, considering the continent has to achieve both energy security and emissions reductions,” she said.

Source: AEC

Africa

Downstream infrastructure revival priority for African energy transition

Africa needs to prioritise the development of refineries to ensure the maximal exploitation of local resources to achieve energy security, Anibor Kragha, the executive secretary of the African Refiners & Distribution Association (ARDA), stated during the opening of the ARDA Week 2023 conference which ran from 13-17 March in Cape Town. Kragha delivered his presentation under the theme, Balancing Energy Transition and Energy Security for the African Downstream. In his presentation, Kragha provided insight into how the African continent can maximise the development and exploitation of its energy resources to achieve energy security while at the same time ensuring the energy transition is just and inclusive for the entire population. Kragha explored how issues such as the Russian-Ukraine conflict and energy transition related policies have highlighted the need for Africa to prioritise downstream investments and infrastructure development to address critical energy issues such as growing demand and rising energy poverty. According to Kraghar, what the Russian-Ukraine conflict has shown is a need for short-term interventions to address the energy crisis alongside mid- to long-term goals of an energy transition.

Source: Energy Capital & Power

East Africa

Horn of Africa ministers seek private sector backing for projects

Finance ministers from the Horn of Africa are seeking ways to attract more private sector backing for projects in infrastructure, energy and technology, to better build economic resilience as drought and inflation bite. The leaders recently met under the Horn of Africa Initiative (HoAI) in Nairobi and agreed to develop a “comprehensive” private-sector engagement strategy, which is expected to be tabled at the next meeting in October. This is projected to help bridge the existing funding gap that has slowed down the implementation of the initiative’s priority areas: infrastructure development, trade and economic integration, building resilience and human capital development. Kenya’s Treasury Cabinet Secretary Njuguna Ndung’u, who chaired the closed-door ministerial meeting, said private sector finance will enable the execution of the region’s projects in infrastructure, energy, digital markets, trade and economic integration. “public-private partnerships (PPPs) may in future provide a potential source of funding that would need to be developed as part of a strategy for private sector engagement in the Horn,” Professor Ndung’u said.

Source: The EastAfrican

Botswana / Zimbabwe

Botswana, Zimbabwe to discuss eliminating use of passports

The presidents of Botswana and Zimbabwe are set to discuss scrapping passport requirements between their countries to allow for easier movement of people and goods. Addressing ruling party supporters recently, Botswana's President, Mokgweetsi Masisi, said he will soon meet his Zimbabwean counterpart, Emmerson Mnangagwa, to discuss the issue. Botswana reached a similar deal last month with Namibia, and President Masisi said he also plans to discuss the issue with Zambia’s president. Masisi's push to engage neighbours on opening up borders is in line with the African Union's Protocol on Free Movement of Persons.

Source: VOA

Eswatini

IMF staff completes 2023 Article IV mission to Eswatini

An International Monetary Fund (IMF) team, led by Mr Todd Schneider, mission chief for Eswatini, visited Mbabane from 27 February to 10 March 2023 to conduct discussions for the 2023 Article IV Consultation with a broad range of counterparts from the public and private sector. The discussions covered the performance of Eswatini’s economy since the COVID-19 pandemic and policy challenges that lie ahead. At the end of the visit, Mr Schneider issued the following statement, in part: “[Eswatini’s] near-term outlook is positive but subject to numerous downside risks. Real GDP growth in 2023 is projected to rise to 3.2% supported by agricultural production and manufacturing, and higher government capital spending. Inflation is expected to stabilise at around 5%. The Southern African Customs Union (SACU) revenue transfers are expected to roughly double in financial year 2023-24, facilitating a significant reduction in the fiscal deficit and a modest reduction in the ratio of public-debt-to-GDP. Importantly, the government is establishing the SACU revenue stabilisation fund which, if effectively implemented, should be a significant step forward in managing the swings in SACU revenue transfers and enhancing macroeconomic management.” 

Source: IMF

Kenya

Homebuyers financed by SACCOs to get tax relief up to KES25 000

First-time homebuyers funded by Savings and Credit Cooperative Societies (SACCOs) will from July get a tax relief of up to KES25 000 on their monthly salary in a proposed plan to amend the law by the Co-operatives Ministry. Co-operatives Cabinet Secretary Simon Chelugui has pledged to push through the amendment to the Income Tax Act to extend mortgage reliefs to members of SACCOs who get loans to improve, build or buy homes for their own use. The deductions, which are equivalent to interest paid on home loans, currently apply to borrowers under commercial banks and mortgage lenders under the Banking Act, building societies and National Housing Corporation’s tenant purchase scheme. SACCO Societies Regulatory Authority chief executive Peter Njuguna assured the SACCOs chiefs the proposed changes to the law will be part of the Statute Law (Miscellaneous Amendments) Bill. The Kenya Kwanza administration has identified SACCOs as the main drivers of demand for the affordable housing programme which aims to put up 250 000 units every year, by providing funding to prospective homeowners.

Source: Business Daily Africa

Kenya

Kenya asks EAC to harmonise legal framework to promote aquaculture trade

Kenya has called upon other East African Community (EAC) states to consider harmonisation of the legal frameworks that would ensure smooth movement of aquaculture products across the borders. In a speech read on her behalf by Fisheries and Blue Economy Secretary, Lucy Obungu, during the official opening of the second Eastern African Regional Aquaculture Conference and Exhibition, at the Jaramogi Oginga Odinga University of Science and Technology, the Principal Secretary (PS), Ministry of Mining, Blue Economy and Maritime Affairs, Betsy Muthoni Njagi, said the engagement of the East African countries should ensure seamless flow of goods and professional services in the region. PS Muthoni stated that there exists huge potential among the countries to learn from each other on the kind of policies, regulations and related frameworks, that would work best to promote the aquaculture sector. 

Source: Kenya News

Kenya / Egypt

Kenya and Egypt to establish visa free entry from April

Kenya and Egypt have agreed to establish free visa entry for diplomatic and official passports holders from 1 April. Foreign and Diaspora Affairs Cabinet Secretary (CS) Alfred Mutua stated that they are working together to finalise a 100% visa free regime between both countries for ordinary passports within six months by 1 October 2023. “In line with the vision of [the African Continental Free Trade Area (AfCFTA)], we agreed on free visa entry for diplomatic and official passports of both countries from 1 April this year and to start and finalise discussions towards a free visa regime for ordinary passports by 1 October,” he said. “This will enhance tourism, grow trade and support economic free flow of people and goods as envisioned by the AfCFTA Agreement.” This agreement came as a result of bilateral discussions between CS Mutua with his counterpart, Egypt Minister of Foreign Affairs, Sameh Shoukry in Cairo. 

Source: Capital FM

Liberia / United Kingdom

Liberia and UK commit to strengthening trade

Liberia and the United Kingdom (UK) have highlighted the key role of the private sector as a catalyst in advancing trade and investment between the two countries. The Minister of Africa of the UK, Andrew Mitchell and Commerce and Industries Minister of Liberia Mawine G. Diggs, held discussions on broadening trade with Liberia and the UK. Speaking at the Foreign, Commonwealth and Development Office (FCDO) in London, Minster Mitchell recounted the continuing partnership between Liberia and the UK in promoting democratic governance. He indicated that following the COP27 Climate Summit, the UK will continue its leadership role in soliciting greater commitment around climate change and global peace. He hailed Liberia for strengthening its democratic gains especially as Liberians look towards the 2023 general and presidential elections. Minister Mawine Diggs reflected on the strategic importance of the UK-Liberia relations and how it continues to impact varying aspects of the two countries. She commended the UK for support to Liberia’s development across education, health, and fisheries.

Source: The New Dawn

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 (Intellectual Property (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, 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 / South Africa

Namibia, South Africa sign 90 trade deals

Namibia has signed more than 90 bilateral agreements with South Africa. This was recently announced at the opening of a meeting of senior officials during the third session of the Namibia / South Africa Binational Commission in Windhoek. Penda Naanda, the Executive Director of International Relations and Cooperation, said the number of bilateral agreements signed between the two countries is remarkable, and that the implementation of these agreements should be key. “I therefore urge our senior officials to redouble and rededicate joint efforts aimed at implementing legal instruments between our two sister countries,” he said. Senior officials from Namibia and South Africa gathered in Windhoek to discuss political, socio-economic, and security issues between the two countries. Naanda said there is a vital need to turn the vast resource potential between the two countries into bankable and practical actions that would positively change the living conditions of people from both countries. 

Source: The Namibian

Nigeria

AfDB and partners invest USD618-million in Nigeria’s digital and creative industries

The African Development Bank (AfDB) and partners have launched a new Investment in Digital and Creative Enterprises (iDICE) programme. The initiative, with investments totalling USD618-million, will attract direct investments in more than 200 technology and creative start-ups and provide non-financial services to about 450 digital technology, small and medium-sized enterprises (SMEs). With a potential to generate USD6.4-billion into Nigeria’s economy, iDICE is expected to create 6 million new jobs for young Nigerians. Speaking at the launch event in the capital Abuja, Nigeria’s Vice President Yemi Osinbajo emphasised the importance of a coordinated approach to innovation across Africa. “Government must provide more support for start-ups and small businesses, and investors must provide more funding," Osinbajo said. The AfDB Group is the largest funder of iDICE, providing USD170-million. The French government, through the Agence Française de Développement, will contribute EUR100-million (USD116-million), and the Islamic Development Bank (IsDB) pending approval from its board is expected to provide USD70-million. The Nigerian government, through its executing agency, the Bank of Industry, will provide USD45-million in counterpart funding.

Source: AfDB

Senegal

Senegal’s 130 MW Malicounda power project now fully operational

The 130 megawatt (MW) Malicounda-based Wärtsilä Flexicycle power plant, which was officially inaugurated by President Macky Sall on 11 February, is now fully operational. Matelec operates the plant and a 10-year maintenance agreement with Wärtsilä will guarantee its high availability and reliability. Located 85 km south of Senegal’s capital Dakar, the plant is anticipated to deliver 956 gigawatt hour (GWh) of power per year, which represents a 17% increase in the country’s power generation capacity. Matelec, the plant’s Engineering, Procurement and Construction contractor, selected Wärtsilä for the delivery of its energy efficient 130 MW Flexicycle power generation technology. The Malicounda power plant comprises seven 18V50 engines and a steam turbine, combining the advantages of a simple-cycle operation with the high efficiency of a combined cycle plant. Its fast load-following power capability means that the plant is suited to maintain system reliability and is able to offer the flexibility needed as intermittent renewable energy is progressively added to Senegal’s power grid. The plant will initially operate on heavy fuel oil, however, there is an option to convert it to run on locally supplied gas from the Greater Tortue Ahmeyim field once it becomes available, further lowering the cost of energy.

Source: Energy Capital & Power

Tanzania

Tanzania kickstarts contract preparations for USD30-billion LNG project

Global energy majors Shell and Equinor have officially started the contract preparations for the development, operation, and maintenance of a USD30-billion liquefied natural gas (LNG) terminal in Tanzania. The preparations follow the finalisation of project negotiations with the Tanzanian government. According to the Minister of Energy of Tanzania, January Makamba, “Negotiations on the construction of the LNG project were complete, and now experts are at work drafting contracts. Of these contracts, one is about the Host Government Agreement, and another is on joining blocks 1, 2, and 4, which will provide natural gas for the LNG project.” With the Equinor-operated Block 2 estimated to hold over 20 trillion cubic feet (tcf) of gas while the Shell-operated Blocks 1 and 4 estimated to hold combined reserves of 16 tcf of recoverable gas, the contract would see these blocks providing feedstock to the large-scale LNG facility. The milestone comes after Shell, Equinor and the Government of Tanzania reached an agreement to fast-track the development of an LNG export terminal in June 2022 following regulatory delays. The Final Investment Decision for the project is expected to be announced by 2025. 

Source: Energy Capital & Power

Uganda

The importance of performance guarantees in infrastructure projects in Uganda

Reliance on performance guarantees in infrastructure projects has gained traction in Uganda in recent years. A performance guarantee is a legal promise made by one party to another, and typically backed by a third-party financial institution, to ensure fulfilment of contractual obligations. Its main purpose is to safeguards a beneficiary, usually the employer, against the non-performance, delayed or inadequate performance by a contractor, usually the employee and allows quick access to funds which sit with a third party to remedy the breach occasioned by the employee. It is common for contractors in default to seek court orders against banks from making payments upon demand. The courts have long taken a firm stance on the matter and have consistently applied the correct commercial law principles. With the assurance from the courts, players in the construction industry can carry on business seamlessly with confidence that the courts will hold contractors to their obligations and will be slow to halt enforcement of the payment guarantees. An enabling business environment stimulated by this assurance is likely to spur even better progress for the economy.

Source: ENSafrica

Uganda

Uganda plans to start nuclear power generation by 2031 – minister

Uganda has said it expects to start generating at least 1 000 megawatts (MW) from nuclear power by 2031 as it moves to diversify its sources of electricity and accelerate its energy transition, a key part of its climate change response. Uganda has uranium deposits and President Yoweri Museveni has said his government was keen to exploit them for potential nuclear energy development. The East African country has signed a deal with China under which the China National Nuclear Corporation (CNNC) would help Uganda build capacity in the use of atomic energy for peaceful purposes. The first nuclear project, Buyende Nuclear Power Plant, would be located at Buyende, about 150 km (93 miles) north of the capital Kampala, Energy and Minerals Minister Ruth Nankabirwa Ssentamu said in a statement. "Preparation to evaluate the Buyende Nuclear Power Plant site is ongoing to pave the way for the first nuclear power project expected to generate 2 000 MW, with the first 1 000 MW to be connected to the national grid by 2031," she said. "Uganda is making firm steps to integrate nuclear energy into the electricity generation mix to ensure energy security and provide sufficient electricity for industrialisation." 

Source: Reuters