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issue 564 | 22 Sep 2024

East / Southern Africa

COMESA Research Forum: Push for greater value addition, green investments, and tourism

The 11th Common Market for Eastern and Southern Africa (COMESA) Annual Research Forum brought together policymakers, academics, think tanks, and the private sector from COMESA member states and beyond to discuss emerging issues in regional integration. The virtual forum, themed Fostering Economic Integration and Inclusivity in COMESA through Value Addition, Green Investments, and Tourism, is part of the capacity-building initiatives aimed at strengthening economic and trade policy research and analysis to bolster integration and trade within the COMESA region and across Africa. The forum serves as a platform to bridge the gap between academia, the private sector, and policymakers in the formulation of economic integration and regional trade policies. In her opening address, COMESA Secretary-General Chileshe Kapwepwe hailed the event as a key milestone, coinciding with the 30th anniversary of COMESA. “The use of scientific research and evidence has become crucial for sound policy formulation, significantly reducing the rate of policy failures,” Kapwepwe stated. “This forum helps us stay connected with current policy challenges while drawing upon new knowledge and insights from scholars, researchers, academics, and policymakers.”

Source: COMESA

Botswana

Botswana licenses its first manganese mining project

Botswana has awarded Giyani Metals a 15-year mining licence, the company announced recently, paving the way for it to become the country's first battery-grade manganese producer. Manganese is a key component in batteries and its demand is expected to be driven by growth in electric vehicles, among other clean energy applications. Giyani's Kgwakwe Hill (K.Hill) project will process manganese oxide material on-site to produce high-purity manganese sulphate, making it one of the few battery-grade manganese projects outside China. The Asian country controls 90% of global high-purity manganese supply. The K. Hill mine will have an initial annual output of 80 000 metric tonnes of high purity manganese sulphate monohydrate annually over a 57-year life, according to a 2023 preliminary economic assessment. "The next step is production of battery-grade manganese from our demonstration plant, which is under construction in Johannesburg, South Africa," the Canadian company said in a statement. The product from the demonstration plant will be used for offtaker qualification, a vital step before offtake agreements can be signed, it added.

Source: Reuters

Ethiopia

Ethiopia's tourism sector geared for inclusive and sustainable growth

The United Nations Economic Commission for Africa (ECA) and the Ministry of Tourism in Ethiopia recently launched the Ethiopia Tourism Satellite Account (TSA), a tool for use in strengthening tourism for effective contribution to the country’s economy. “The launch of the TSA provides us with the data, but it is up to us to interpret and use it effectively to understand the true magnitude of the tourism industry,” said Geoffrey Manyara, on behalf of Mama Keita, ECA Eastern Africa Office Director during the launch in Addis Ababa, Ethiopia. “Let us ensure that this tool helps us to make informed decisions that promote inclusive and sustainable growth in the tourism sector. The TSA is a unified framework for measuring tourism's contributions to GDP, employment, and investment. It aligns with international standards as set by the [United Nations] World Tourism Organization, offering us a consistent and robust methodology for integrating tourism data into the national accounts. With this tool, we can now quantify not just the direct benefits of tourism – such as visitor spending on accommodation and transport – but also the broader economic ripple effects across sectors like agriculture, construction, and retail,” said Manyara.

Source: ECA

The Gambia

Renewing the push for domestic revenue mobilisation

The Gambia has been relying heavily on donor support to finance critical government activities. Approximately 27% of the budget was funded by donors on average between 2018 and 2023. The support seems to have reached its peak despite the country’s growing developmental needs. In response, the government through the 2024 budget and the 2025-2028 Medium Term Fiscal Framework has committed to increasing domestic revenue. Their goal is to gradually increase the revenue-to-GDP ratio from 12% in 2022 to 15% GDP by 2028. Increasing domestic revenue mobilisation will ensure sustainable government funding, reduce overdependency on donor aid, and improve public governance. Like other developing countries, The Gambia faces significant challenges in raising revenue, which include widespread poverty, hard-to-tax groups, disorganised accounting in the private sector, outdated laws, and weak administrative capacity. To navigate these deficiencies, the government has embarked on several reforms over the past decade, which include the introduction of value-added tax, modernisation of Customs and Excise Regulations, and implementation of the Automated System for Customs Data.

Source: IMF Public Financial Management Blog

Kenya

IMF staff concludes visit to Kenya

An International Monetary Fund (IMF) team, led by Haimanot Teferra, visited Nairobi from 11-16 September and held discussions with Kenyan authorities on recent developments and their policies to manage the emerging challenges. At the conclusion of the visit, Ms Teferra issued the following statement: “The Kenyan authorities and IMF staff had productive discussions on the authorities’ policies and reforms to address the evolving economic and fiscal challenges. We remain fully committed to support the authorities on their efforts to identify a set of policies that could support the completion of the reviews under the ongoing programme as soon as feasible. The authorities expressed commitment to advancing economic and governance reforms which are crucial for fostering sustainable and inclusive growth that benefits all Kenyans. We will continue our discussions with the authorities.”

Source: IMF

Kenya

Kenya promises full disclosures on public debt in a new financial plan

Kenya has set a three-year road map towards fully shifting its government financial transactions to a buildup basis of accounting, in a new financial reporting plan that promises to reduce the cost of foreign loans. The idea is to also provide full disclosures on public debt whose legitimacy and usage of the proceeds have become a matter of public concern. This comes as the National Treasury assembled a steering committee, chaired by the Principal Secretary Chris Kiptoo to oversee the smooth transition of the government’s financial operations from the current cash-based accounting system that has been in use since 2014, and which only recognises transactions involving an exchange of cash. “We have had a problem with the cash system because we do not see a full picture of all government transactions. Not all fixed assets and liabilities are recorded in government books and things like public debt liabilities and pending bills are not found in government books because of cash accounting,” Jonah Wala, the National Treasury’s director in-charge of accounting services said in an interview on 5 August. Under the plan which is set for full implementation in the 2026/2027 fiscal year, the National Treasury will record all borrowings by the state in government books and provide full disclosures on key details including linking the proceeds of the loans to particular projects.

Source: The EastAfrican

Lesotho

Lesotho launches the ICT initiative for remote monitoring and evaluation of development projects – RASME

The African Development Bank (AfDB) and the Government of Lesotho have jointly launched an innovative state-of-the-art initiative which uses the power of information and communications technology (ICT) to collect project data remotely in digital formats directly from the field. The Remote Appraisal, Supervision, Monitoring and Evaluation (RASME) project is transforming operations through project data collection and analysis across AfDB regional country members. It is an innovative solution that is relevant everywhere, but especially in zones with instability, insecurity, or logistical concerns. The initiative, which improves transparency in the monitoring and evaluation of operations projects and the accountability among the stakeholders, was launched in Maseru on 29 August by Ms Mahlape Moseme, Director Policy and Strategic Planning, at Lesotho’s Ministry of Finance and Development Planning and Herbert Chinokoro, who represented the Country Manager of the AfDB for Lesotho, Kennedy Mbekeani. Welcoming its arrival in Lesotho, Moseme said: “Ensuring open and transparent reporting of our development initiatives is central to our mission, as is the use of data to improve decision-making at all levels.”

Source: AfDB

Liberia

Liberia Economic Update: Energy sector shows progress, but significant investment needed

On 12 September, the World Bank released the fifth edition of its annual Liberia Economic Update, titled Powering Growth with Reliable, Affordable, and Sustainable Energy Access. The report offers a comprehensive analysis of recent economic developments in Liberia, underscoring the crucial role of reliable energy in fostering sustainable growth. The update highlights key advancements in Liberia's energy sector, including notable progress in power generation and the expansion of energy access. However, despite these gains, the country faces significant power shortages, calling for substantial investments to achieve reliable, affordable, and sustainable energy access for all Liberians. "The National Electrification Strategy of Liberia, developed by the government with support from development partners, sets out bold plans to achieve universal energy access by 2030 through a combination of grid expansion, densification, utility revenue protection programmes, and off-grid solutions," said Georgia Wallen, World Bank Liberia Country Manager. "The World Bank is actively backing these initiatives, with strong focus on increasing generation capacity to reach Liberians nationwide and promote Liberia’s transition toward sustainable growth and development."

Source: World Bank

Malawi

Malawi launches e-justice programme to modernise judicial system

Malawi has launched an e-justice programme to modernise the country's judicial system by enhancing digital access to judicial services. Launched during the e-Justice National Conference held in the capital of Lilongwe recently, the programme will allow people, including those outside Malawi, to access judicial services in Malawian courts through digital platforms. Malawian Minister of Justice Titus Mvalo said the programme, as part of the government's commitment to digital transformation in the country, will enhance court proceedings and ensure the timely delivery of justice.

Source: Xinhua

Mali / Burkina Faso / Niger

Mali, Burkina Faso and Niger to launch biometric passports under new alliance

Mali, Burkina Faso and Niger will introduce new biometric passports as part of their withdrawal from a West African bloc in favour of a new Sahel alliance after military leaders seized power in all three countries, Mali's leader said recently. The three junta-led Sahel neighbours jointly announced in January they would leave the 15-member Economic Community of West African States (ECOWAS), which has sought to persuade them to reconsider their decision. Burkina Faso announced earlier this month that it was rolling out new passports without the ECOWAS logo. "In the coming days, a new biometric passport of the Alliance of Sahel States (AES) will be put into circulation with the aim of harmonising travel documents in our common area and facilitating the mobility of our citizens throughout the world", Malian junta leader Assimi Goita announced. He spoke ahead of a meeting between the three countries' foreign ministers on the anniversary of the decision to form their own alliance. Goita also said they were planning to launch a shared information channel "in order to promote a harmonious dissemination of information in our three states."

Source: Reuters

Mauritania / Mali

Mauritania-Mali Electricity Interconnection project set to power Sahel region

Poised to harness the Sahel region’s immense solar potential, the 225 kV Mauritania-Mali Electricity Interconnection and Solar Power Plant Development represents a strategic opportunity to support technological innovation, improve energy efficiency and reduce greenhouse gas emissions, while guaranteeing universal access to electricity in North-West Africa. To be implemented over a seven-year period from January 2024 to December 2030, the USD888-million project will increase solar power generation capacity throughout the region. The project serves as part of the Desert to Power initiative and aims to increase solar photovoltaic (PV) capacity in the Sahel region by 10 GW by the end of the decade, while providing 250 million people with access to electricity. With a 600 MW capacity, the interconnection line will feature the auxiliary development of solar plants planned in the region. As part of the project, two solar plants, each with a capacity of 50 MWp, will be constructed in the Mauritanian towns of Kiffa and Néma. Electricity produced from the solar PV plants will be transported via the high-voltage line, which will feature 1 373 km of medium- and low-voltage electricity distribution networks along its route through the Sahel, connecting Mauritania to Chad via Mali, Burkina Faso and Niger in its first phase.

Source: Energy Capital & Power

Namibia

Namibia to send first consignment through AfCFTA

Namibia will be sending its first trade consignment through the African Continental Free Trade Area (AfCFTA) in October. This was announced by Industrialisation and Trade Minister Lucia Iipumbu during a Cabinet Committee briefing recently. According to Iipumbu, this is after Namibia’s tariff offer under the Southern African Customs Union (SACU) was approved by the AfCFTA. “We are currently in the process of preparing to participate in the guided trade initiative, whereby we will send off the first consignment for Namibia under the AfCFTA in October 2024 to signify the commencement of trading under the AfCFTA,” said Iipumbu. Iipumbu said Namibia is also actively working to enhance its domestic production capacity to meet the growing demand for goods and services within the AfCFTA. “Namibia is ready to tap into a single market of about 1.3 billion people, while growing at home and industrialising the local economy to produce goods and services with which to trade,” said Iipumbu. She added that to a large extent, the SACU tariff offer is in the process of gazettement by the Namibia Revenue Agency.

Source: The Namibian

Namibia / Kenya

Namibia and Kenya focus on trade and cooperation

Namibia and Kenya are both seeking greater leverage in regional and continental opportunities for improved economic growth, trade, and regional integration. The Namibia–Kenya political and diplomatic consultations held in Windhoek recently resulted in a joint communiqué in which the countries stressed their commitment to deepening their bilateral relations, with a strong emphasis on economic cooperation and increased political engagement. The consultations related to a broad array of mutual interests were hosted by Namibia’s Minister of International Relations and Cooperation, Peya Mushelenga, and Kenya’s Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, Musalia Mudavadi, respectively. The talks took place at a critical time because both countries were looking to take advantage of economic growth opportunities in the region and across the continent, according to the joint communiqué. They specifically sought to use the Tripartite Free Trade Agreement and the African Continental Free Trade Area to hasten the region’s economic integration. Namibia and Kenya are signatories to these agreements, and the ministers jointly called for mobilising public and private sector stakeholders to take full advantage of the pro-business policies in place.

Source: Windhoek Observer

Republic of the Congo / Russia

Russia clears fuel pipeline construction in Congo

Russia has tentatively agreed to the construction of a fuel pipeline in the Republic of the Congo, according to a government decree published recently. The pipeline will link the western port of Pointe-Noire to the capital Brazzaville. Moscow said a joint venture to construct the pipeline would be set up with Russia controlling 90% of the entity. The technical and economic issues are set to be defined in a concession agreement. Russia pledged to provide funds, equipment and personnel for the construction of the pipeline as well as fuel to fill it if and when necessary. The Republic of the Congo is expected to agree to various tax relief measures. 

Source: Reuters

Rwanda

Rwanda’s economy registers strong growth in early 2024 despite persistent challenges

Rwanda's real GDP grew by 9.7% in the first quarter of 2024, exceeding the previous year's growth rate of 8.2%. The latest edition of the Rwanda Economic Update (REU), launched on 17 September, highlights that despite the global economic slowdown, Rwanda has shown remarkable resilience, driven by strong consumer spending in key sectors such as services and industry. Despite ongoing challenges, Rwanda’s labour market experienced a strong recovery, with over half a million new jobs created in the fourth quarter of 2023, marking the most significant reduction in unemployment since the COVID-19 pandemic. "The labour market expansion in Rwanda was broad-based, with women benefiting slightly more than men. To leverage its youth demographic, Rwanda needs to expand labour force participation, as only 2.8 million out of 8.1 million working age individuals are employed full time," said Calvin Djiofack Zebaze, World Bank Senior Country Economist for Rwanda.

Source: World Bank

Senegal

IMF staff concludes visit to Senegal

A team from the International Monetary Fund (IMF), led by Mr Edward Gemayel, conducted a mission to Senegal from 5-12 September 2024, to continue discussions initiated in June regarding the authorities’ economic programme supported by the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements of SDR1 132.6-million (about USD1.5-billion), combined with the Resilience and Sustainability Facility (RSF) of SDR242.70-million (about USD320-million). The EFF/ECF and RSF arrangements were approved by the IMF Executive Board on 26 June 2023. At the conclusion of the mission, Mr Gemayel issued the following statement, in part: “The Senegalese economy grew at a slower pace than anticipated in the first half of 2024. Real GDP growth registered 2.3% in the first quarter, with high-frequency indicators suggesting a similar deceleration in the second quarter. This slowdown reflects weaker activity in the mining, construction, and agro-industrial sectors, and to a lesser extent in the primary sector. Headline inflation eased to an average of 2.2% year-on-year in the first half of the year, driven by lower international commodity prices and subdued domestic demand.”

Source: IMF

Tanzania

Black Rock Mining, African banks sign USD179-million facilities agreement

Tanzania-based Black Rock Mining has secured a USD179-million facilities agreement with three African banks to develop the Mahenge graphite project in Tanzania. The agreement was signed between the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC) of South Africa and Tanzania’s CRDB Bank. The loan comprises a USD113-million construction term loan for the Mahenge Module 1 and associated infrastructure, a USD20-million credit facility, a USD20-million cost overrun facility and a USD26-million bank guarantee facility. Under the agreement, the CRDB Bank will provide USD66-million while the DBSA and IDC have committed USD59.6-million and USD53.4-million, respectively. The CRDB Bank will serve as the joint mandated arranger, facility agent, onshore account bank and onshore security bank for the project.

Source: Energy Capital & Power

Tanzania

Tanzania to expand natural gas exports to neighbouring countries

Tanzania is advancing plans to expand its natural gas exports to neighbouring countries, including Uganda, Kenya, the Democratic Republic of the Congo (DRC), and Zambia, as it continues its ambition to become a regional cooking energy powerhouse. The Tanzania Petroleum Development Corporation (TPDC) Acting Managing Director, Mr Ahmad Massa, revealed the plans on 13 September 2024. He was addressing local journalists during a capacity-building workshop aimed at discussing and increasing their understanding of the state of the oil and gas sectors. During the event, Mr Massa said Tanzania has signed preliminary agreements with the aforementioned countries for supplying natural gas through pipelines, liquefied natural gas (LNG), and its mini LNG systems. “The government has entered into initial agreements with Uganda, Kenya, the DRC, and Zambia for the sale of natural gas. This move positions Tanzania as a major supplier of cooking energy in the region," said Mr Massa. The TPDC is actively working on infrastructure developments, including the construction of mini LNG plants in collaboration with companies such as ROSETTA, Africa50, and KS Energy.

Source: The Citizen

Zambia

Zambia, Ivanhoe Mines sign copper exploration MoU

Zambia has signed a memorandum of understanding (MoU) with Canadian mining firm Ivanhoe Mines for in-country copper exploration and production. Ivanhoe Mines has also applied for an exploration licence, with approval expected by the close of the year. Under the agreement, Zambia’s Ministry of Mines and Minerals Development will share geological data on mineral-rich areas and guide Ivanhoe Mines through the licensing process. The MoU aligns with Zambia’s broader efforts to attract investors and ensure a stable and favourable fiscal and regulatory framework, with a view to unlocking its mineral resource potential and driving economic growth. The agreement coincides with Zambia’s ongoing nationwide high-resolution aerial geophysical survey aimed at mapping national critical mineral resources. Zambia is targeting an increase in copper production from 768 000 tonnes in 2024 to 3 million tonnes by 2031, enhancing its position within the global market from the 10th-largest to second-largest copper producer. “Over the past 20 years, our geologists have discovered over 50 million tonnes of copper under the western edge of the Central African copperbelt in the Democratic Republic of the Congo,” stated Ivanhoe Mines’ Executive Co-Chairman Robert Friedland. “We are now entering Zambia, as well as Angola, where we have high conviction that new discoveries are waiting to be uncovered.”

Source: Energy Capital & Power