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issue 540 | 07 Apr 2024

World

BRICS development bank aims to make USD5-billion in loans in 2024

The New Development Bank (NDB), set up by the BRICS group of emerging economies, aims to make about USD5-billion in loans this year, its Vice President, Qiangwu Zhou has said. “During the epidemic, our business has been somewhat affected, and now everything is going back on track," Zhou told Reuters on the sidelines of the Boao Forum for Asia Annual Conference. Zhou did not elaborate on how the bank may have been off track, but said China and India have received slightly more investment from the bank than other members. Headquartered in Shanghai, the NDB was set up in 2015 by BRICS member states.

Source: Reuters

Africa

International Day of Forests: Global experts urge action as Africa grapples with USD65-billion timber trade deficit

Africa must work to urgently address its staggering USD65-billion timber trade deficit to position forests as a critical driver for the continent’s future development, global experts urge. This deficit, accrued between 1992 and 2020, reflects the continent’s imbalance between earnings from timber exports and expenditures on imports of wood-related products, they said during a panel discussion to commemorate this year’s International Day of Forests on 21 March. The experts called on development partners to support investment in Africa’s timber processing capacity and a continental wood marketing information system. The discussions, titled Forests and Innovation: New Solutions for a Better World, centred around a report released by the African Development Bank’s (AfDB) African Natural Resources Management and Investment Centre entitled Regional timber trade flows and trends in Africa. The report, released early March, established that the majority of Africa's wood products are exported unprocessed to other continents, exacerbating the continent’s trade deficit. Experts emphasised the urgency of tapping into Africa’s vast forest resources to drive industrialisation, boost intra-African trade, enhance government revenues, and foster private sector growth.

Source: AfDB

Africa / Russia

Russia to set up several nuclear energy projects in Africa

Russia has signed several deals with African countries at the ATOMEXPO-2024 International Forum (ATOMEXPO), the most notable among them involving lithium mining in Mali and the construction of a nuclear power plant in Burkina Faso. The 13th ATOMEXPO focused on the role of nuclear energy in national strategies to combat climate change. It was organised by Rosatom State Atomic Energy Corporation in Sochi from 25-26 March 2024, under the theme Clean Energy: Creating the Future Together. Mali’s Minister of Mines, Amadou Keita, confirmed at the event that Mali and Russia will cooperate on a “win-win basis in lithium mining.” Russia is helping to launch this industry in the country, he added. He described lithium as “a strategic product” that will play an important role in Mali’s growth. “Among countries that have this resource are the Democratic Republic of the Congo, Zimbabwe, Mali, Malawi and Ghana. According to our estimates, reserves may reach 26 million tonnes,” said Keita. He noted that the country has considerable lithium reserves in the south and in the west. “We are one of the largest producers in West Africa, due to which Mali has decided to develop a new strategy of economic development around lithium,” Keita said.

Source: ESI Africa

East Africa

How EAC can boost exports to the rest of Africa

The East African Community (EAC) bloc has been urged to aggressively invest in import substitution industries (ISIs) to promote exports. This will give the region, which trades more with the rest of the world than Africa, an edge in intra-African trade. Increased exports through local manufacturing would additionally reduce existing trade gaps from soaring imports. These are among the recommendations made by a recently concluded study which examined trade implications for the bloc under the African Continental Free Trade Area (AfCFTA) Agreement. The study by the East African Business Council urged the EAC member countries to complement ISIs by embracing various AfCFTA instruments. Those already operational include the Pan African Payment and Settlement System, which is yet to be accessible to some partner states. Intensive investment in the EAC manufacturing sector would also enable the region to promote value addition and product diversification. The study revealed untapped trade potential between the EAC countries which, it says, needs to be leveraged following the AfCFTA tariff liberalisation.

Source: The Citizen

East Africa

Kenya, Tanzania push for anti-counterfeit law in the EAC

The East African region is planning to set a common standard on goods across the block to fight counterfeits. The latest push follows an earlier attempt under the 2011 Anti-Counterfeiting Bill that collapsed at the East African Legislative Assembly. This forced the region to operate under the East African Customs Act on counterfeits regulations. However, Kenya and Tanzania have now revived the push to reintroduce the 2011 legislation. Kenya’s Anti-Counterfeit Authority and the Fair Competition Commission of Tanzania have announced joint efforts to disrupt and combat the trade in counterfeit goods across the region. The partnership will see among others, regulation changes to harmonise the areas of conflict in the current laws of the two countries. Anti-Counterfeit Authority Executive Director Robi Njoroge said the renewed partnership opens avenues for law enforcement agencies to develop innovative approaches and strategies in combatting counterfeit trade. “The first step we want is to have the East African Community (EAC) Anti-Counterfeiting Bill that will allow harmonisation of the laws not only in Kenya and Tanzania but our sister states, Uganda, Rwanda, Burundi, [the Democratic Republic of the Congo], South Sudan...[that is] something we are working on,” said Njoroge.

Source: The Star

Eastern / Southern Africa

Regional Optical Fibre Regulatory Policy and Framework validated

Close to 50 experts in the information and communications technology (ICT) sector from Eastern Africa, Southern Africa, and the Indian Ocean (EA-SA-IO) region have validated the draft Policy and Regulatory Frameworks for Fibre Infrastructures. These frameworks will help enhance digital development in the region. During a validation workshop held in Kampala, Uganda from 25-27 March 2024, officials acknowledged existing gaps in missing links which result in inefficiency and non-cost-effective utilisation of installed capacity in the 29 member states of the EA-SA-IO. To promote efficient and cost-effective deployments and use of optical fibre cable infrastructure and services, the European Union-funded Programme on Enhancement of Governance and Enabling Environment in the ICT sector, supported several activities of this cause. 

Source: COMESA

Ethiopia

Energising Ethiopia: New World Bank programme expands access to electricity

A new World Bank programme is set to strengthen and expand the electricity network, improve sector financial viability, and enable renewable energy generation through private sector participation in Ethiopia. The Power Sector Reform, Investment and Modernization in Ethiopia (PRIME) programme will be implemented over several phases. The first phases will prioritise critical infrastructure investments and sector reform actions to improve the overall ability of electricity utilities to add new connections. Leveraging the one World Bank approach, the latter phases of the programme will focus on mobilising private sector participation in the power sector. For the implementation of the first phase, the World Bank approved a USD522-million International Development Association credit. An important feature of PRIME is to enhance Ethiopia’s resilience towards climate change. Ethiopia is prone and vulnerable to climate related disasters. With the electricity production heavily reliant on hydropower, the sector is vulnerable to hydrological variations. The programme will help the country to diversify its generation mix and to tap into its vast but underutilised clean resources, including solar, wind, and geothermal.

Source: World Bank

The Gambia

With the support of the EU, The Gambia embarks on large-scale solar energy production

The Gambian Government has recently inaugurated its first large-scale solar energy production facility. Located in Jambur, the plant, financed by the European Union (EU) and the World Bank, has a capacity of 23 MWp. With demand for electricity in The Gambia jumping by 5.5% in recent years, President Adama Barrow inaugurated one of the flagship components of The Gambia Electricity Rehabilitation and Modernisation Project on 25 March, in the presence of representatives of several development partners. The project involves the Jambur photovoltaic solar power plant, the construction of which Afrik 21 announced would be launched in early 2023. In one full year, the Chinese company Tebian Electric Apparatus has built and tested the new plant, which has a capacity of 23 MWp, with an 8 MWh electricity storage system. In his speech at the inauguration ceremony, President Adama Barrow pointed out that the Jambur solar park aims to “significantly reduce [The] Gambia’s dependence on imported fossil fuels for electricity generation. The project also aims to accelerate the country’s transition to a 50% supply of electricity from renewable energy sources by 2030.”

Source: Afrik 21

Kenya

The Remote Appraisal, Supervision, Monitoring and Evaluation launch in Kenya to improve implementation of AfDB projects

The Remote Appraisal, Supervision, Monitoring and Evaluation (RASME) initiative was launched in Kenya recently. Kenya now joins 31 other regional member countries where RASME has already been launched. The digital tool collects geo-localised data from the field using mobile devices, thereby strengthening project supervision. Data is securely stored centrally for easy access and review by authorised stakeholders. The launch, which took place in Nairobi on 4 March, was followed by a training from 5-7 March, in which 100 participants including African Development Bank (AfDB) staff, representatives from the National Treasury and government ministries, executing agencies as well as World Bank staff learned to use the tool. RASME is a collaborative effort between the AfDB Group, the World Bank’s Geo-Enabling for Monitoring and Supervision platform, and KoBoToolbox Foundation, a non-governmental organisation affiliated with the Harvard Humanitarian Initiative, providing for real-time geo-tagged data collection and review. The reliability of the remotely collected data coupled with its reviewability anywhere help improve the bank’s project monitoring and evaluation.

Source: AfDB

Liberia

New World Bank Group report says Liberia needs to prioritise essential climate actions to promote growth and development

The World Bank Group’s new Country Climate and Development Report (CCDR) for Liberia explores the mounting risks that climate change could undercut Liberia’s economy and push more Liberians into poverty. Highlighting the role of proactive action, the report calls for adaptation and better planning for low-carbon growth, land use, and investment. While Liberia is among the lowest emitters of greenhouse gases responsible for global climate change, it is among the most vulnerable countries to climate impacts. For instance, rice – Liberia’s main staple – is highly reactive to increased humidity, extreme temperatures, heavy rainfall, and the pests that flourish under these conditions. The CCDR finds that Liberia’s rainfed rice production could be reduced by up to 13% over 2041-2050 from climate change compared to the baseline scenario. The resultant decrease in income and heightened reliance on costly imports could exacerbate poverty and food insecurity for many Liberian households. The report discusses pathways for more resilient growth and intensified climate adaptation in Liberia, which hosts one the largest rainforests in West Africa and has potential for carbon markets and benefit-sharing from climate financing.

Source: World Bank

Madagascar

Madagascar urbanisation review: Leveraging Cities as Drivers of Growth and Structural Transformation

Madagascar's cities are the powerhouse of its economy, contributing three-quarters of the national GDP, with the capital, Antananarivo, alone accounting for 44%. Yet, this urban economic might is not translating into effective poverty reduction or inclusive growth. Despite having a faster rate of urbanisation than other countries in sub-Saharan Africa, the country has a lower GDP per capita than those countries. Value-added in the services sector – which is one of the main economic activities in cities - has been stagnant since 1990 as a share of GDP. Most alarmingly, poverty in Malagasy cities has increased substantially in the past decade, especially in secondary cities where the share of people living in poverty increased from 46% to 61%. These trends are worrying because more than half the country’s population is expected to live in cities by 2036. A new World Bank report, Leveraging Cities as Drivers of Growth and Structural Transformation highlights the challenges and constraints facing Madagascar's cities and proposes a roadmap of priority actions that the country can take to stimulate growth and help reduce poverty in the country.

Source: World Bank

Mauritius

Solar energy provides alternative to fuel and coal

A solar plant that will provide electricity to thousands of homes a year in Mauritius has been inaugurated. This is the first in a number of solar energy driven projects in the country set to feed into the national grid over the next few years. The Arsenal project was built about 10 km north of the capital Port Louis and is expected to help contribute to the reduction of about 13 000 tonnes of carbon dioxide a year. The energy infrastructure will add 14 MW of clean energy to Mauritius’ installed capacity. The developer, French company GreenYellow, said the plant is capable of supplying 20 GWh of electricity a year. This is enough to power 4 500 Mauritian homes. The Commercial Bank of Mauritius financed the project to the tune of around USD8.1-million. A large part of the current installed capacity (876 MW) of Mauritius is supplied by thermal power stations running on fuel oil and coal. The Central Electricity Board currently produces about 37% of the country’s total power requirement from four thermal power stations and 10 hydroelectric plants. The bulk of the country’s energy derives from heavy fuel oil and coal. The International Energy Agency says that almost 10% of the country’s final energy consumption is generated by modern renewable sources of energy.

Source: ESI Africa

Nigeria

AfDB signs USD75-million loan agreement to boost Indorama’s fertiliser production and export capacity

The African Development Bank (AfDB) has signed a USD75-million loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited. The loan will enable Indorama to increase its fertiliser production and develop a port terminal for exports, supporting food production and food security across regional and international markets, while fostering job creation in Nigeria. The expansion will include the development of a third urea fertiliser production line and a new shipping terminal at Indorama’s facilities in Port Harcourt. The new production line is expected to have an annual capacity of 1.4 million metric tonnes of urea, one of the most widely used fertilisers worldwide. Indorama’s two operational urea fertiliser lines serve Nigeria’s domestic market, supporting the country’s agricultural sector, which accounts for a quarter of its GDP and employs about a third of its labour force. The new production line and terminal, which will help meet growing global demand for fertiliser, are expected to create up to 8 000 direct and indirect jobs in Nigeria.

Source: AfDB

Nigeria

Nigeria to grant mining licences only to locally processing firms

Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson has confirmed. This signals a shift from Nigeria's decades-old policy of exporting raw materials as African governments take steps to extract more value from their solid mineral deposits. To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria's minister of Solid Minerals Development said. "In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy," Tomori said. He did not say when the guidelines would be finalised or come into effect. However, recently, the Minister of Solid Minerals Development, Henry Dele Alake said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.

Source: Reuters

Seychelles

IMF staff reaches staff-level agreement on the second reviews under the EFF and RSF arrangements with Seychelles and completes 2024 Article IV mission

An International Monetary Fund (IMF) team led by Mr Todd Schneider visited Victoria from 21 March to 3 April 2024, to conduct discussions on the second reviews of Seychelles’ economic and financial programme supported by the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) arrangements. The team met with the authorities and private sector representatives for the 2024 Article IV consultation. At the end of the mission, Mr Schneider issued the following statement, in part: “Following a post-pandemic surge in economic activity in 2022, real GDP growth slowed to an estimated 3.2% in 2023, despite a continued increase in tourism activity, with visitor arrivals reaching a level equivalent to over 91% of the pre-pandemic high and tourism earnings continuing to rise. Real GDP growth is expected to reach about 3.7% in 2024 on the back of a continued increase in visitor arrivals together with buoyant activity in information technology, construction, and the financial sector. This outlook incorporates some drag on activity linked to the impact of the December 2023 flooding and explosion at Providence Industrial Estates. Year-over-year inflation is expected to rise to 1.6% in 2024, largely on the back of increases in utility prices.”

Source: IMF

Togo / Luxembourg

Togo and Luxembourg ink letter of intent for stronger cooperation

Togo and Luxembourg signed a letter of intent focused on their cooperation in the coming years. The letter was signed in Lomé, on 28 March, by the Togolese Minister of Foreign Affairs, Robert Dussey, and Luxembourg's Minister of Cooperation and Humanitarian Action, Xavier Bettel. Bettel stopped in Togo as part of a West African tour. The letter of intent paves the way for stronger cooperation between the two countries, especially in the areas of economy, digitalisation, environment, education, vocational training, and financial inclusion. Minister Bettel has met various Togolese officials in charge of these sectors. "With the signing of this letter of intent, we are laying the groundwork to deepen the partnership of cooperation between Luxembourg and Togo. I am pleased with this first step towards closer cooperation, which will be based on development priorities," Bettel wrote on his official X account. In Togo, Luxembourg is engaged in the Kara Investment Fund. This fund supports projects in sectors such as agriculture, renewable energy, port, airport, road infrastructure, as well as telecommunications and digitalisation.

Source: Togo First

Zimbabwe

Electric mobility policy on the cards for lithium-rich Zimbabwe

Zimbabwe is in the process of developing a National Electric Mobility Policy, the country’s Ministry of Transport announced recently. The framework would encompass the adoption, use and disposal of electric vehicles (EVs) as part of its efforts to mitigate climate change. Transport and Infrastructural Development Minister Felix Mhona confirmed this in February while addressing the 86th Session of the United Nations Inland Transport Committee in Switzerland. Minister Mhona said the government has accelerated a programme for purchasing and deploying EVs. This has been done through the state-owned enterprise, the Central Mechanical Engineering Department. In March, the Zimbabwe Energy Regulatory Authority (ZERA) announced that it had commissioned the first commercial EV charging port at Petrotrade Filling Station in Gweru. “The aim is to expand the EV charging network nationwide for sustainable transportation and reduced emissions,” said ZERA. ZERA CEO Eddington Mazambani has previously been quoted at putting the number of EVs in Zimbabwe at 30. In February, the Ministry of Transport held a stakeholders sensitisation and consultation workshop on e-mobility in Harare.

Source: ESI Africa

Zimbabwe

Zimbabwe makes headway towards joining BRICS bank

Zimbabwe’s bid for admission into the BRICS New Development Bank (NDB) has been given a huge boost following the recent pledge of support by Russia, South Africa, and now Brazil. Currently, indications are pointing at Zimbabwe, together with Argentina and Saudi Arabia, being officially announced as new members of the NDB at the BRICS Summit to be held in South Africa this August. The BRICS bloc is expanding and building a new economic order to challenge the dominance of the United States dollar, consequently creating multiple lines of credit away from the Bretton Woods Institutions. In a recent interview, Brazil’s Secretary for Africa and Middle East in the Ministry of External Relations, Ambassador Carlos Duarte, said Zimbabwe’s admission was an active issue which the bloc was seized with. He said Zimbabwe’s willingness to join the NDB would not affect its ultimate goal to become a full BRICS member and vice versa. “[It is] still a dynamic issue, we are working on it. I think the expansion of BRICS and the participation in the NDB are two different things but in both cases, there is a criterion for that, a technical criterion and Brazil also sees a possibility of having partner countries if they are not fully members so one thing does not impede the other. You can be a partner or you can receive investments, [it is] not something exclusive,” he said.

Source: The Herald