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issue 559 | 18 Aug 2024

Africa

Afreximbank to double intra-African trade financing to USD40-billion by 2026

African Export-Import Bank (Afreximbank) plans to double its financing of intra-African trade from USD20-billion in 2021 to USD40-billion by 2026, Mr Haytham El Maayergi, Afreximbank’s Executive Vice President, Global Trade Bank, has said. Mr El Maayergi was addressing participants and guests in Abuja at the African Caucus Meeting of the World Bank Group and the International Monetary Fund, from 1-3 August 2024 where he represented Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. Attended mainly by ministers of finance and central bank governors from across Africa, the meeting had the theme Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa and was aimed at identifying key challenges facing Africa in achieving full integration and at engaging in strategic dialogues to engender sustainable solutions. Mr El Maayergi said that Afreximbank had been a champion in facilitating intra-African trade since its founding and that it had committed USD1-billion to support the funding of the African Continental Free Trade Area Adjustment Fund and a USD10-million grant to facilitate the establishment and operationalisation of that fund.

Source: Afreximbank

Africa

ICAO signs new agreements with African states to boost sustainable aviation development

The International Civil Aviation Organization (ICAO) made a significant step forward in enhancing aviation's role as a catalyst for sustainable development in Africa. During the Africa-Indian Ocean Aviation Week held in Gabon, ICAO signed four pivotal capacity building and implementation support agreements with member states, each aimed at strengthening their aviation sectors and alignment with international standards. Gabon's Agence Nationale de l'Aviation Civile entered into a Management Service Agreement with ICAO. This comprehensive agreement will provide Gabon with access to ICAO's expertise, project management and procurement services, and customised training packages. Chad’s Autorité de l'Aviation Civile partnered with ICAO for a preliminary assessment of training needs. Uganda’s Civil Aviation Authority and ICAO agreed to develop a comprehensive 15-year Air Navigation Plan. South Africa’s Civil Aviation Authority signed a Declaration of Intent to host the next Global Next Generation of Aviation Professionals Summit. These agreements represent ICAO's commitment to supporting African member states in developing sustainable aviation sectors. By focusing on areas such as strategic planning, human resource development, and infrastructure enhancement, these initiatives are set to improve aviation safety, efficiency, and capacity across the continent.

Source: ICAO

West Africa

ECOWAS advances discussions on maritime transport service from Cabo Verde to the rest of West Africa

The Economic Community of West African States (ECOWAS) engaged member states and a diverse group of maritime sector stakeholders to assess the financial, economic, and implementation options of the Praia-Dakar maritime transport project. This consultation is a key milestone towards the completion of the technical studies for the project which is aimed at advancing the larger Praia-Dakar-Abidjan-Lagos Corridor Transport Project, which strives to improve regional connectivity and promote economic integration within West Africa. The engagement meeting, which took place in Praia, brought together experts and stakeholders who considered alternatives for the establishment of maritime services, either as a container liner or a RoPax (passenger and some goods). The experts recommended a third alternative which will combine container and Ropax services considering the high-level objective of enhancing the free movement of persons and boosting intraregional trade. The meeting featured an opening address from the Chairman of Empresa Nacional de Administração dos Portos’ Board of Directors, Mr Eduardo Lima, who stated, “The Praia-Dakar-Abidjan Corridor is one of the largest integration and infrastructure projects in our region… Effective transportation and communication systems are essential to face the challenges of economic globalisation, ensuring reliability, quality, integrity, and security.”

Source: ECOWAS

Angola / United Arab Emirates

Angola-UAE partnership: Stronger ties promise enhanced trade, energy and infrastructure

The United Arab Emirates (UAE) is strengthening its economic relationship with Angola and other African nations by committing to substantial investments in key areas, including energy, technology and maritime logistics. Meanwhile, Angola presents the UAE with opportunities to enhance its food security, gain access to vital minerals, tap into a burgeoning consumer market and expand its influence across the continent. Reflecting Angola’s significant investment potential, the UAE has been deepening its economic ties with Angola since 2021. With over 63 Angolan companies operating in the UAE – spanning various sectors including automotive, electronics, gold and diamond trading – economic relations between the two countries are poised to serve economic growth and development in the region while promising significant investments in critical sectors. Emirati public institution the Abu Dhabi Chamber of Commerce and Industry and investment organisation the Angola-UAE Chamber of Commerce and Industry signed a cooperation agreement and memorandum of understanding in June to foster investment opportunities between the two countries. The agreements aim to enhance bilateral economic relations while generating new opportunities for investors, businesses and entrepreneurs.

Source: Energy Capital & Power

Benin

AfDB Group awards USD400 000 grant to the Ministry of Economy and Finance to harness proceeds from sustainable bond markets

The African Development Bank (AfDB) Group has awarded a USD400 000 grant to Benin's Ministry of Economy and Finance to enable it to diversify and increase proceeds from sustainable bond markets, to support the implementation of national development and green transition plans. Approved on 23 July in Abidjan, the grant from the Capital Markets Development Trust Fund, a multi-donor fund administered by the AfDB, will be provided in the form of technical assistance to the ministry. “One of the [AfDB's] priorities under its new Ten-Year Strategy 2024-2033 is to support initiatives to boost access to all funding related to sustainable development,” said Ahmed Attout, Director of the AfDB Group's Financial Sector Development Department. “By backing this project, the [AfDB] is positioning itself, both in terms of investment and technical assistance, to enable African countries to make the most of their potential with regard to sustainable development.” The project will make it possible for Benin to update its framework for issuing bonds to finance the Sustainable Development Goals, and to extend this framework to thematic bonds (green, blue and social bonds). It will help to establish a national strategy for the development of sovereign thematic bonds and train stakeholders at the national level.

Source: AfDB

Botswana

Solar energy plant to be built in mining town

A 100 MW solar photovoltaic (PV) power station is to be built in Botswana, with the project expected to start generating electricity at the end of 2025. The plant will be constructed in the mining town of Jwaneng. The Botswana Power Corporation recently signed a power purchase agreement with Sinotswana Green Energy, a consortium of Chinese and Botswana companies, to officially launch the project. The deal entails engineering, procurement, and construction, with operation and maintenance of the Jwaneng 100 MW solar PV power station for 25 years. It falls under the country’s Integrated Resource Plan and is expected to increase its renewable energy use to 50% by 2036.

Source: ESI Africa

Botswana / Namibia

Direct route to boost Namibia, Botswana tourism

The Ministry of Environment, Forestry and Tourism believes the new Namibia-Botswana flight route will bring more tourists to the country. Air Botswana recently announced that it will start flying to both Namibia and South Africa. The flights will be from Maun, Kasane and Gaborone. The new direct routes are set to commence next month in phases and Namibian flights will land in October. Ministry spokesperson Romeo Muyunda confirmed the new flights, saying the move will promote tourism between the neighbouring countries. “Before, through Kasane, we were trying to grow tourism. The arrival of Air Botswana will enhance tourism in the country through this airline,” he said. Currently, Botswana is in Namibia’s top three countries of African tourists that visit the Land of the Brave. “[It is] the third contributor, after South Africa and Angola. But they are in third place in Africa and eighth in the world in terms of our source markets,” Muyunda said. Namibia had 66 561 visitors from Botswana last year. Last year, the two countries signed an agreement which allows citizens from both countries to cross borders without passports and only identification cards.

Source: The Namibian

Burundi

Burundi’s largest electricity substation, co-financed by the AfDB Group, will increase national electricity access by 7%

Burundi’s largest electricity substation, a 160 MV facility in Rubirizi, financed by the African Development Bank (AfDB) Group and the European Union (EU), will increase the country’s electricity-connected population by 7% when completed. A delegation from the Government of Burundi and the AfDB visited the site on 9 August 2024, as part of a tour of electrification projects funded or co-funded by the AfDB Group in Rubirizi and Kabezi, in Bujumbura Rural Province. The Rubirizi substation is being constructed as part of the Kamanyola-Bujumbura Interconnection Project, for which the AfDB and the EU are providing joint funding of USD37-million. Scheduled for completion in December 2024, the substation will be the injection point for energy produced by the Ruzizi III regional hydroelectric power station, which is also receiving funding from the AfDB.

Source: AfDB

Côte d’Ivoire

Explore extractive and energy industry policy, strategy in Côte d’Ivoire

Côte d’Ivoire is on the threshold of a major economic transformation, with its extractive and energy sectors spearheading its growth. As such, the country’s Ministry of Mines, Petroleum and Energy announced the first edition of the International Extractive and Energy Resources Exhibition (SIREXE). The Council of Ministers approved the event on 17 April. SIREXE 2024 will be held at the Parc des Expositions from 27 November to 2 December 2024 under the theme Sustainable development of extractive and energy industries: what policies and strategies? The Minister of Petroleum and Energy, Mamadou Sangafowa-Coulibaly, emphasised: “We must highlight the continent’s potential and attract investments to stimulate our economies.” This event will bring together global industry professionals from the mining, petroleum, and energy sectors, offering unique opportunities for collaboration, exchange, and investment for industry leaders and sustainable growth for African economies. Organised under the patronage of the Prime Minister of Côte d’Ivoire, Robert Beugré Mambé, the SIREXE 2024 assembles experts and leaders from the mining, petroleum, and energy sectors from across the globe, including Africa, Europe, Asia, the Americas, and Oceania.

Source: ESI Africa

Djibouti

How Djibouti became region's internet hub

Massive Chinese information and communications technology (ICT) investment in Djibouti has helped the country become the region's digital hub, overtaking economic powerhouses Ethiopia and Kenya. A new World Bank report cites a study by the International Telecommunication Union that shows Djibouti had the highest internet connectivity in the region at the end of last year, with 69% of the population online. Djibouti, with a population of about 1.1 million, reported connectivity above the global average of 65% – and well ahead of Kenya's 29% and Ethiopia's 17%. Much of Djibouti's ICT infrastructure, the report notes, has been built by China. “China plays a key role in financing communications infrastructure in Djibouti, with Djibouti Telecom partnering with Chinese firms such as Huawei,” the World Bank report said. The World Bank study, entitled Leveraging Private Sector Investment in Digital Communications Infrastructure in Eastern Africa, looked at 11 countries in eastern Africa to assess their readiness to attract foreign investment.

Source: The EastAfrican

Ethiopia

Ethiopia’s horticulture sector poised for growth with CEHA National Chapter launch

Ethiopia’s horticulture sub-sector is set for significant growth following the launch of the Common Market for Eastern and Southern Africa (COMESA) - East African Community (EAC) Horticulture Accelerator (CEHA) National Chapter. This initiative, unveiled in Addis Ababa on 13 August 2024, is part of a broader strategy to tap into the vast potential of the horticulture industry across the region. At the launch event, industry stakeholders praised the efforts of the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA-COMESA) and its partners. The CEHA programme aims to drive sustainable growth in the horticulture sector across COMESA-and the EAC. Dr Meles Mekonnen, Ethiopia’s State Minister of Agriculture and Horticulture Development, highlighted the importance of the CEHA Ethiopia National Chapter in coordinating and accelerating the country’s horticulture development. The initiative will focus on three key crops – potatoes, avocados, and onions – chosen for their potential to drive economic growth and align with development partners’ investment priorities. 

Source: COMESA

Ethiopia

Ethiopian Securities Exchange inks technology agreements with Infotech Private Limited

The Ethiopian Securities Exchange (ESX) announced that it has signed two pivotal technology agreements with Infotech Private Limited, a leading global provider of capital markets technology solutions. These agreements mark a significant step forward in the development of Ethiopia’s first-ever securities exchange, ESX stated in a press release sent to Fana Broadcasting Corporate (FBC). The agreements cover the design, supply, and installation of an electronic trading platform and a broker back office and order management system. It was pointed out that these systems are integral to the establishment of a modern, efficient, and transparent capital market in Ethiopia, facilitating the trading of securities and enhancing the overall market infrastructure. Meanwhile, the electronic trading platform will provide a state-of-the-art trading environment that supports real-time transactions. This platform is designed to ensure market transparency, improve liquidity, and offer investors, both local and international, a seamless and secure trading experience. With this platform, ESX disclosed that it aims to become a catalyst for economic growth by enabling companies to raise capital more efficiently and providing new investment opportunities for the Ethiopian public. On the other hand, the broker back office and order management system is designed to automate and streamline the operations of brokerage firms.

Source: FBC

Ghana

Ghana opens new gold refinery with 20% government stake

Ghana recently opened its first commercial gold refinery in which the state holds shares as part of an effort by Africa's leading gold producer to add value and earn more from the precious metal, which has been mined there for centuries. The Royal Ghana Gold Refinery - a public-private partnership between Rosy Royal Minerals of India and Ghana's central bank, in which the bank holds a 20% stake - has the capacity to process 400 kg of gold per day. It will source gold doré from small-scale and artisanal miners before acquiring licences to process gold from large-scale miners. Speaking at the opening in the capital Accra, Vice President Mahamudu Bawumia said the launch of Royal Gold Refinery marked "a new era" that would help contain gold smuggling and raise national earnings from the precious metal. "With the ability to refine our gold, we will be able to sell it at the appropriate price, enabling us to retain its economic value within our borders while creating numerous jobs for the youth," he said.

Source: Reuters

Nigeria / Japan

Japan invests USD500-million to boost Nigeria’s power supply

The Japanese International Cooperation Agency has invested USD500-million to strengthen power transmission infrastructure along the Lagos-Ogun industrial corridor in southwestern Nigeria. Announced by Nigeria’s Minister of Power Adebayo Adelabu in August, the investment will cover the Agbara, Mowe and Sagamu industrial clusters and will support development of additional power transmission substations while upgrading existing ones. The investment will also be used to reconduct existing weak high voltage powerlines and provide new extensions for capacity strengthening and expansion to the transmission grid. The investment falls under Nigeria’s Presidential Power Initiative project, which aims to boost transmission infrastructure within the province’s industrial corridor.

Source: Energy Capital & Power

Republic of the Congo

Republic of the Congo Economic Update: Designing fiscal instruments for sustainable forestry and economic growth

A new World Bank report released on Tuesday, 13 August shows that the Congolese economy is gradually recovering, with GDP growth estimated at 1.9% in 2023. Growth is projected to reach 3.5% in 2024, supported by oil and non-oil activities that are expected to increase by 4.2% and 3.5%, respectively. The recovery remains fragile, owing primarily to the volatility of oil production. The eleventh edition of the Republic of Congo Economic Update notes that inflation accelerated to an average of 4.3% in 2023. Severe food insecurity is also increasing, affecting 59% of the population. Widespread poverty persists, with nearly one in two Congolese living on less than USD2.15 a day. The report underscores how important it is for the Republic of the Congo to design effective fiscal instruments for sustainable forestry and economic growth. Forests cover two-thirds of Congo’s territory, and the country has successfully kept its deforestation rate low and stable despite economic development and illegal logging. Over the past decade, Congo has implemented major forest policy reforms to strengthen sustainability, including enacting a new forest code in 2020.

Source: World Bank

Republic of the Congo

The Republic of the Congo poised for gas expansion with LNG developments

The Republic of the Congo is set to export 4.5 billion m3 of liquefied natural gas (LNG) in 2025 as part of the second phase of the Congo LNG project, developed by oil major Eni. For 2024, the ministry estimated production at 1.7 million m3. These projections, announced by the country’s Ministry of Hydrocarbons in July 2024, align with the ongoing construction of the second phase of the Congo LNG project. The first phase of the Congo LNG project started in late 2023 with the installation of the first floating LNG plant at the Marine XII offshore natural gas field. The Republic of the Congo exported its inaugural gas in February 2024, with the first LNG cargo departing from Pointe-Noire to Italy. In the second phase, LNG production will be boosted by a new vessel capable of producing 3.5 billion m3 and storing over 180 000 m3, aimed at maximising the country’s vast gas reserves. Most of this output will be exported to Europe, generating an estimated EUR44-million in state revenue in 2024 alone. With an estimated 10 trillion cubic feet of proved natural gas reserves at the beginning of 2024, LNG production represents a significant added value to the Congolese economy. To better leverage its resources, the Congolese Government has implemented several initiatives aimed at defining a national gas strategy.

Source: Energy Capital & Power

Rwanda

Rwanda’s payment service providers must recategorise licenses by 18 September 2024, or risk license revocation

Rwanda’s financial services sector is experiencing a major shift with the introduction of Regulation No. 74/2023 of 18/09/2023 Governing Payment Services Providers (New PSP Regulation). This comprehensive regulation, issued by the National Bank of Rwanda (BNR), brings significant changes that will affect all Payment Service Providers (PSPs) operating within the country. Central to this new regulatory framework is the mandatory recategorisation of all existing PSPs. While the New PSP Regulation introduces various changes, one aspect demands immediate attention from all existing PSPs: the critical deadline for license recategorisation. With a deadline set for 18 September 2024, PSPs must quickly grasp, evaluate, and respond to these new requirements. The BNR has issued a stark reminder to all PSPs alerting that those applications for license recategorisation must be submitted by 18 September 2024. This deadline, stemming from Article 60 of the New PSP Regulation, carries severe consequences. Failure to comply will result in license revocation, potentially ending operations for non-compliant PSPs. While the recategorisation deadline is overriding, it is critical to understand the regulation’s wider implications.

Source: ENS

Tanzania

East African logistics centre set to open in October

The East Africa Commercial and Logistics Centre (EACLC) is now scheduled for opening in October. The regional market worth USD110-million developed by Chinese investors, expected to house 2 060 shops, is now 90% complete. The Minister of State in the President's Office for Planning and Investment, Prof Kitila Mkumbo, encouraged Tanzanians to seize opportunities at the Ubungo-based centre, saying that 95%t of the 2060 shops in the centre are reserved for Tanzanians. Prof Mkumbo made the remarks upon receiving a delegation of investors from Weihai, China, who visited the area to explore investment opportunities. "The economic benefits are substantial as over 15 000 Tanzanians will gain direct employment, and it will also enhance the city's attractiveness. These shops will feature both Chinese and local products, boosting competition," Prof Mkumbo said. He emphasised the centre's role in enhancing Tanzanians' business capabilities within Africa and globally. The centre's manager, Ms Victoria Mombury, said that it will officially be opened in October 2024, having been largely completed. She noted that the Weihai delegation specialises in industrial products, technology, and transportation services. The visit is also aimed at fostering inter-regional and government cooperation.

Source: The Citizen

Tanzania

Tanzania gets first Shariah-compliant investment scheme

Tanzania's capital markets have recently welcomed a new addition with the launch of the Alpha Halal Fund, a Shariah-compliant collective investment scheme introduced by Alpha Capital-Tanzania, a brokerage firm and fund manager. The fund aims to provide investors with ethical investment opportunities that adhere strictly to Islamic Law. Targeting equities, Shariah-compliant listed funds, and other permissible investments, Alpha Capital-Tanzania seeks to diversify the investment landscape through this new offering. “This is a significant step towards including investors who have traditionally been left out of capital markets due to the absence of products or services that align with their ethical or religious standards,” said Alpha Capital Chief Executive Mr Gerase Kamugisha. According to Kamugisha, the fund aims to raise about TZS10-billion by 17 October 2024, with contributions expected from both local and international investors. Gracing the event, Deputy Minister of State in the President's Office (Planning and Investment), Mr Stanslaus Nyongo, emphasised the importance of the Halal Fund in broadening the scope of investment in Tanzania. “The fund would not only increase savings and capital accumulation within the economy but also open new doors for the investment community in Tanzania by offering diverse investment options,” he said.

Source: The Citizen

Uganda

Afreximbank and Uganda Development Bank sign project preparation financing agreement

African Export-Import Bank (Afreximbank) and the Uganda Development Bank (UDB) have signed a Joint Project Preparation Facility Framework Agreement to provide early project preparatory financing and technical support services to public and private sector entities. This is aimed at boosting Uganda’s industrialisation and export development activities. Under the terms of the framework agreement, Afreximbank and UDB established a joint project preparation facility to unlock investments in priority sectors, such as, energy, transport and logistics, special economic zones/industrial parks, manufacturing, agro-processing, hospitality and tourism, mining, solid minerals and service sectors. The facility will assist in de-risking projects and rapidly advance their development from concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services, and related costs. The two banks aim to mobilise up to USD25-million in the form of project preparation funds for investments in Uganda. Mrs Kanayo Awani, Executive Vice President, Afreximbank, signed the agreement on behalf of Afreximbank while Mr Samuel Edem Maitum, Director of Credit, UDB signed on behalf of his organisation on 14 June 2024 in Nassau, The Bahamas.

Source: Afreximbank