PRINT | SUBSCRIBE | UNSUBSCRIBE | TEXT ONLY

issue 573 | 24 Nov 2024

Africa

African leaders welcome launch of AfDB’s Technical Assistance Facility to unlock climate finance for vulnerable regions

In a major step to address Africa's climate finance gap, the African Development Bank (AfDB) Group has launched a new funding call that will transform the development of climate projects across 37 low-income African countries. With an initial allocation of USD56-million, the Climate Action Window (CAW) Technical Assistance Facility, launched at COP29 in Baku, Azerbaijan, will support the preparation, financing, and implementation of adaptation and mitigation projects aligned with the Paris Agreement, Nationally Determined Contributions, and National Adaptation Plans. The African Development Fund (ADF), the AfDB Group’s concessional window, established CAW under its 16th replenishment cycle to mobilise public and private sector resources for adaptation (75%), mitigation (15%), and technical assistance (10%) projects, and improve low-income African countries' capacity to attract climate finance. Backed by significant funding commitments from partners including the United Kingdom, Netherlands, Germany, and Switzerland, the new facility will be accepting proposals from governments, regional organisations, non-governmental organisations, and United Nations agencies in ADF countries via its online portal through 5 February 2025. Awards will range from USD260 000 to USD1.3-million per project.

Source: AfDB

Africa

Growth in sub-Saharan Africa is diverging

Sub-Saharan Africa is home to nine of the world’s top 20 fastest-growing economies this year. Such startling statistics, however, rarely feature in discussions of the region’s outlook. Instead, headline figures typically emphasise the relatively modest average economic performance. This disconnect reflects a two-track growth pattern, where a significant part of the region underperforms. The International Monetary Fund’s (IMF) analytical note for the latest Regional Economic Outlook for sub-Saharan Africa takes a closer look at this issue. Over the past 10 years, growth in sub-Saharan Africa’s resource-intensive countries (RICs) – and especially in fuel exporting economies such as Angola, Chad, and Nigeria – has slowed down sharply, falling far below growth in non-RICs (such as Ethiopia, Rwanda, and Senegal). Indeed, incomes in RICs have essentially stagnated. This marks a sharp contrast with the decade leading up to 2014, when RICs experienced rapid growth, in line with the region’s strong overall performance. The post–2014 divergence between RICs and non-RICs has been driven largely by the combination of two factors. First, RICs and especially fuel exporters experienced a dramatic decline in their commodity export prices around 2014–15, as the commodity “super-cycle” – a period of sharply rising commodity prices – came to an end. Since then, the terms-of-trade decline has only been partially reversed. Second, and critically, the impact of the terms-of-trade shock on RICs was exacerbated by pre-existing structural vulnerabilities, including a poor business environment, limited human capital, weak governance, and poor management of resource revenues.

Source: IMF

Africa

The rising debt burden in Africa's least developed countries is eroding funding for sustainable development

Africa’s rising debt burden is eroding funding for sustainable development in the least developed countries (LDCs), impacting heavily on health and education, says Ms Oyebanke Abejirin, Economic Affairs Officer, at the Macroeconomics, Finance and Governance Division of the United Nations Economic Commission for Africa (ECA). Making a presentation on the opportunities and challenges for Africa’s LDCs, at the Second Session on the Committee on Economic Governance in Addis Ababa, Ethiopia, Ms Abejirin explained that high debt servicing costs reduce capacity for Sustainable Development Goals related spending causing a real decline in health and education funding across many countries. She noted that debt distress worsens the public financial positions of African LDCs. Debt servicing reached a record 11.6% of the exports in 2022. In 2021, she said, African governments allocated 4.8% of GDPs to debt servicing compared to 2.6% for health and 4.8% for education.

Source: ECA

East / Southern Africa

COMESA electronic Certificate of Origin launched

Eswatini has become the first Common Market for Eastern and Southern Africa (COMESA) member state to launch a pilot implementation of the COMESA electronic Certificate of Origin (e-CO). This transformative development is poised to be a game-changer in trade facilitation that will offer the customs authorities a more robust system of certification verification, allowing for better control over goods entering and leaving respective countries. The e-COs are issued to exporters within the COMESA Free Trade Area (FTA) to confer preferential treatment to goods originating from an FTA member state. The e-CO initiative is implemented by the COMESA Trade Facilitation Programme funded by the 11th European Development Fund. COMESA e-CO will benefit both businesses and customs authorities including reduction in processing times and lower costs, enabling goods to move across borders more efficiently. Eswatini Minister of Commerce, Industry and Trade, Manqoba Khumalo and COMESA Secretary General, Chileshe Kapwepwe, symbolically launched the e-CO at the Eswatini Revenue Service offices on 7 November 2024 in the presence of Ambassador Designate and Head of the European Union Delegation, Eswatini, Mr Karsten Mecklenburg.

Source: COMESA

Benin

International financial institutions and development partners support Benin in establishing a country climate finance platform

On 15 November 2024, at COP29, the Government of Benin together with international financial institutions and development partners, unveiled an ambitious vision for climate action. This new suite of initiatives that include carbon monetisation mechanism, enhanced credit instruments, common policy matrix, and innovative financing signals Benin’s commitment to unlocking climate finance and catalysing meaningful change. This framework aims to mobilise both public and private sector resources to address Benin’s climate adaptation and mitigation priorities, supporting the nation’s Sustainable Development Goals and the objectives of the Nationally Determined Contributions, while preserving debt sustainability within the country’s overall macroeconomic policy framework.

Source: IMF

Benin / Norway

Benin, Norway sign bilateral climate agreement

Benin and Norway have signed a bilateral agreement on international climate cooperation at COP29 in Baku, Azerbaijan. Under the agreement, Norway will support and finance renewable energy initiatives in Benin, which the country will use to generate carbon credits for Norway to purchase. “Our partnership with Norway under Article 6 opens new avenues for sustainable development, climate financing and environmental protection in Benin,” stated Benin’s Minister of Economy and Finance Romuald Wadagni, adding, “We are committed to implementing projects that will benefit our communities and contribute to global climate goals.” The agreement also includes support for solar and off grid power projects, as well as technical assistance for Benin to monitor emission reduction activities. “This agreement exemplifies Norway’s commitment to global climate action and our support for sustainable development in partner countries. By collaborating with Benin, we aim to achieve mutual benefits in reducing emissions and fostering green growth,” stated Norwegian Minister of Climate and Environment Tore O. Sandvik.

Source: Energy Capital & Power

Burkina Faso

IMF reaches staff-level agreement with Burkina Faso on the second review of the ECF

An International Monetary Fund (IMF) team led by Martin Schindler, Mission Chief for Burkina Faso, held meetings in Ouagadougou from 30 September – 9 October and in Washington, D.C. during the 2024 IMF/World Bank Annual Meetings to discuss macroeconomic policies in the context of the second review of the four-year programme supported by the Extended Credit Facility (ECF) arrangement. The arrangement was approved by the IMF Executive Board on 21 September 2023 for a total amount of SDR228.76-million (about USD302-million). At the conclusion of the discussions, Mr Schindler issued the following statement, in part: “I am pleased to announce that the Burkinabè authorities and IMF staff have reached a staff-level agreement on the economic and financial policies that could support the approval of the second review of the programme under the ECF arrangement. The conclusion of this review by the IMF Executive Board would enable the disbursement of about USD32-million (SDR24.1-million), bringing the total IMF financial support disbursed under the arrangement to about USD96-million (SDR72.3-million). The meeting of the IMF Executive Board is tentatively scheduled for December 2024.”

Source: IMF

Cameroon

EU pledges USD96-million loan to Cameroon to boost infrastructure

The European Union (EU) recently pledged to lend EUR91-million (USD96-million) to Cameroon over the next three years to boost the West African country's infrastructure and attract foreign investment. The loan was announced during a meeting between Cameroonian government ministers and an EU representative in Cameroon's capital, Yaoundé. The loan will help Cameroon to develop its energy sector, road infrastructure and a railway network connecting the country with Chad, its landlocked neighbour, Cameroon’s Minister of the Economy Alamine Ousmane Mey told reporters after the meeting. Another project funded by the loan will be the construction of a bridge over the Ntem River between Cameroon and Equatorial Guinea. The government has been struggling to rebuild Cameroon’s road, energy and port infrastructures, which have become seriously dilapidated in recent years. The EU is already funding some major infrastructure projects in Cameroon, including the construction of a hydroelectric dam in the centre of the country and a bridge between Cameroon and Chad.

Source: Africanews

Comoros

IMF reaches staff-level agreement on the third review of the ECF with Comoros

An International Monetary Fund (IMF) team, led by Ms Suchanan Tambunlertchai, held meetings in Moroni from 2-15 October and in Washington, D.C. from 21-25 October, to discuss progress on economic and financial policies and reforms in the context of the third review of the four-year Extended Credit Facility (ECF)-supported programme. The Comorian authorities and the team have reached a staff-level agreement, subject to approval by the IMF’s Management and Executive Board. Completing the review will make available SDR3.56-million (about USD4.7-million) to Comoros, bringing total disbursements so far under the arrangement to about USD18.8-million. On 15 November 2024, Ms Tambunlertchai issued the following statement, in part: “Performance under the ECF-supported programme has been broadly on track amid a political transition and a more challenging financing environment. Three out of five quantitative end-June 2024 targets were met. The tax revenue target was missed by a small margin, reflecting in part the public health-related and weather shocks during the first half of the year. The missed target on the non-accumulation of new external arrears reflects liquidity and cash management challenges, which emphasises the continued need to address Public Financial Management gaps.”

Source: IMF

Côte d'Ivoire

Government of Côte d'Ivoire collaborates with international financial institutions, development partners, and the private sector to catalyse climate finance

On 12 November 2024, the Government of Côte d’Ivoire announced at COP29 in Baku, Azerbaijan a wide range of initiatives to catalyse climate financing in Côte d’Ivoire. The Government of Côte d’Ivoire, in partnership with the International Monetary Fund (IMF) and the World Bank Group and with participation from Côte d’Ivoire’s development partners, convened a joint roundtable in Abidjan in July 2024 to develop innovative climate finance options for the country. The aim of these discussions was to develop options to catalyse resources to achieve the objectives set out in Côte d’Ivoire’s Nationally Determined Contribution (NDC), which would require an estimated USD22-billion by 2030. The Climate Action Group of Partners supported the establishment of a governance framework to meet NDCs. The Government of Côte d’Ivoire has launched innovative governance measures to enhance climate action. Following a decree on 26 June 2024, establishing a National Commission on Climate Change under the Prime Minister, an Executive Secretariat was formed to support its operations. In October 2024, the Commission became operational, delivering its inaugural climate change report. A Climate Change Law has been adopted by the government, proposing the establishment of a National Climate Agency. Additionally, the Carbon Market Bureau was created by Decree No. 2024-658 on 1 August 2024, to oversee carbon mechanisms.

Source: IMF

Democratic Republic of the Congo

IMF reaches staff-level agreement with the DRC on an ECF and RSF

A staff team from the International Monetary Fund (IMF), led by Calixte Ahokpossi, IMF Mission Chief for the Democratic Republic of the Congo (DRC), visited Kinshasa from 31 October – 13 November, to hold discussions on a new economic and financial arrangement supported by the IMF under the Extended Credit Facility (ECF), and a new climate-focused arrangement supported by the IMF under the Resilience and Sustainability Facility (RSF). At the end of the discussions, Mr Ahokpossi issued the following statement, in part: “The DRC authorities and the IMF team have reached a staff-level agreement on a new three-year economic and financial programme supported by the IMF under the ECF, for an amount of about USD1.77-billion, and a new three-year climate-focused programme supported by the IMF under the RSF, for an amount of about USD1.1-billion, subject to approval by IMF Management and Executive Board. Consideration by the IMF Executive Board is tentatively scheduled for mid-January 2025.”

Source: IMF

The Gambia

The Gambia signs Trade Logistics Charter to drive growth and strengthen supply chain competitiveness

The Gambia has taken a major step toward enhancing its economic growth and supply chain competitiveness by signing a transformative Trade Logistics Charter. This initiative is set to revolutionise the country’s trade and logistics sector, making it more efficient and competitive on the regional and global stage. In a landmark ceremony, President Adama Barrow and key government officials, including members of the Trade Logistics Council, marked the signing of the Charter, developed with expert guidance to align with international best practices, including those set by the World Trade Organization. One of the Charter’s main objectives is to streamline customs processes, which will significantly reduce delays and improve the overall efficiency of The Gambia’s supply chain. Additionally, better asset management and enhanced coordination among government agencies will create a more seamless flow of goods, benefiting businesses and consumers alike. The Charter also places a strong emphasis on infrastructure development, with plans to construct over 1 200 km of roads to further facilitate trade movement and bolster the country’s logistics network.

Source: The International Centre for Trade Transparency

Ghana

Ghana reports 10.7% increase in oil production

Ghana‘s crude oil production saw a year-on-year increase of 10.7% in the first half of 2024, marking the country’s first rise in production after five years of decline. The boost was largely driven by the Jubilee South East project, operated by independent oil and gas company Tullow Oil, which commenced operations in late 2023, according to a report by the Public Interest and Accountability Committee. Production reached 24.86 million barrels as of June 2024, reversing the 13.2% decrease recorded over the same period in 2023. The report further revealed that Ghana’s petroleum revenues surged by 56% year-on-year, totalling USD840.8-million by June 2024, and contributing 7% to government income. Additionally, Ghana’s gas production rose by 7.5%, reaching 139.86 million standard cubic feet during the same timeframe. To further bolster production, Ghana plans to offer more exploration rights, with major industry players such as Tullow Oil, Kosmos Energy, PetroSA and Eni currently operating within the country.

Source: Energy Capital & Power

Madagascar

Madagascar launches country platform for climate finance through international partnership

The Government of Madagascar in collaboration with International Financial Institutions and development partners announced on 14 November 2024 at COP29 in Baku, Azerbaijan an integrated set of innovative initiatives to catalyse climate finance in Madagascar. These initiatives, such as a climate finance mobilisation strategy, a lemur bond, and a results-based grant financing facility for distributed renewable energy will play an instrumental role in mobilising private and public sector financing for addressing climate-related challenges as well as opportunities for investment. Madagascar is one of the world’s most vulnerable countries to climate change and is prone to frequent climate-related disasters due to its geographical location and topography. At the same time, it is endowed with abundant natural capital and is recognised as one of the top five biodiversity hotspots worldwide. To achieve its climate goals and close its Nationally Determined Contributions funding gap, Madagascar estimates it will require USD24.4-billion by 2030. Madagascar is the first pilot country for the International Monetary Fund (IMF)-World Bank Enhanced Cooperation Framework for scaled-up climate action. 

Source: IMF

Malawi

Mining trials show positive results at Malawi graphite project

The Kasiya Rutile-Graphite Project in Malawi has shown positive results following the completion of mining trials. Part of the Pilot Mining and Land Rehabilitation Program, the trials confirmed that the soft, friable Kasiya ore can be efficiently mined. Developed by mining company Sovereign Metals Limited, the Kasiya Project represents the world’s largest natural rutile deposit. The pilot programme featured the excavation of a test pit using conventional dry mining techniques, covering an area of 120 m by 110 m. The pit was mined to a depth of 20 m, with mined materials now set to be graded. Backfilling of the test pit is expected to conclude in December 2024. Sovereign Metals’ Managing Director and CEO Frank Eagar stated that the company is “pleased with the results of the mining trials at the test pit and now look forward to the rehabilitation demonstration stage, with backfilling of the pit already underway. Our findings from this pilot phase are constantly improving our understanding of Kasiya and how to optimise operations at this genuine tier 1 project.”

Source: Energy Capital & Power

Namibia

Securing data privacy: Key highlights of Namibia’s Data Protection Bill, 2023

Namibia currently lacks comprehensive data protection legislation in line with the constitutional right to privacy and other laws such as the Labour Act and the Financial Intelligence Act, leaving personal data processing unregulated. Namibia’s Data Protection Bill, 2023 is still in its early legislative steps and must undergo further Parliamentary review before it is passed into law. Although the Bill is not yet in force, drawing from the experience of neighbouring countries and other jurisdictions which have active privacy laws, organisations in Namibia must take proactive steps to pre-empt such laws, and as a starting point to examine its implications due to the significant role data protection and digital privacy play currently. The proposed legislation will introduce pivotal changes to Namibia’s data privacy laws and how organisations operate.

Source: ENS

Namibia / Angola

Namibia, Angola sign implementation agreement for Baynes Hydropower Project

Namibia and Angola have signed the Baynes Implementation Agreement, paving the way for the construction of a 600 MW hydropower plant on the Kunene River along their border, representing a joint commitment to enhancing energy generation for both nations. Namibia's Minister of Mines and Energy Tom Alweendo and Angola's Minister of Energy and Water João Baptista Borges signed the agreement in Windhoek, Namibia's capital. Speaking at the signing ceremony, Alweendo described the signing as a pivotal milestone for the long-anticipated project, emphasising its potential to deepen energy cooperation between the two countries and expand power generation capacity. Feasibility studies, updated in 2023 following delays caused by the COVID-19 pandemic, paved the way for the agreement. Alweendo noted that funding is expected to be secured by 2026, with construction slated to begin in early 2027. The project has garnered support from international development partners, including the African Development Bank and the New Partnership for Africa's Development, he said. "This agreement commits our governments to the successful completion of this project." Once operational, the Baynes Hydropower Project is projected to meet rising electricity demand in the region and reduce dependence on imported energy.

Source: Xinhua

Republic of the Congo / Côte d'Ivoire

RoC, Côte d'Ivoire sign five agricultural agreements

The Republic of the Congo (RoC) and Côte d'Ivoire have signed five new agreements focused on advancing the agricultural sector. The deals were formalised on 5 November in Brazzaville, RoC, and are expected to boost agricultural productivity, enhance research and support rural development initiatives. The agreements were signed by Côte d'Ivoire’s National Agency for Support to Rural Development along with the Brazzaville Chamber of Commerce, the National Union of Economic Operators, the Directorate of Economic Diversification, the National Institute of Agronomic Research and non-governmental organisation Eden. Beyond agriculture, the RoC and Côte d'Ivoire also discussed cooperation in other sectors, including tourism, industry, mining and hydrocarbons. Trade between the RoC and Côte d'Ivoire has surged, increasing from approximately USD19.4-million in 2023 to roughly USD67.9-million in 2024.

Source: Energy Capital & Power

Republic of the Congo / Türkiye

RoC, Türkiye sign investment and trade agreements

The Republic of the Congo (RoC) and Türkiye have signed two agreements to boost international trade. The agreements cover an agreement on mutual investment protection as well as a memorandum of understanding aimed at bolstering economic and trade cooperation. The agreements were signed on 14 November by RoC Minister of International Cooperation and Promotion of Public-Private Partnerships Denis Christel Sassou Nguesso and Türkiye’s Minister of Industry and Technology Mehmet Fatih Kassir. Minister Nguesso highlighted the contributions of Turkish companies in the RoC, particularly in the energy, mining and port infrastructure sectors. He also urged more Turkish businesses to establish operations in the RoC, specifically within the Special Economic Zones of Loango and the industrial and commercial park of Igne.

Source: Energy Capital & Power

Tanzania

Tanzania Chamber of Mines boosts mineral processing with SEZs

Special Economic Zones (SEZs) in Tanzania are driving local investment and participation in critical mineral processing and downstream industries, according to Benjamin Mchwampaka, CEO of the Tanzania Chamber of Mines. In an exclusive interview with Energy Capital & Power at the Critical Minerals Africa forum this month, Mchwampaka explained that the Chamber is working with its members to leverage SEZs for attracting advanced technologies and investments in local mineral processing. “We have LifeZone Metals partnering with BHP to develop a USD600-million multi-metal refinery in the Buzwagi Mining Area and SEZ – an example of in-country beneficiation,” said Mchwampaka. Mchwampaka also pointed to infrastructure projects like the TAZARA Railway and the Lobito Corridor expansion, which will enhance the transportation of technology and equipment, supporting the country’s downstream sector and job creation. The Chamber anticipates increased opportunities for local processing as Tanzania accelerates its graphite, rare earth, nickel, copper and cobalt projects. The country is poised to become Africa’s third-largest producer of graphite, with five projects slated for operation by 2026.

Source: Energy Capital & Power

Tanzania

Tanzania unveils new strategies to promote mineral value addition

The government recently outlined comprehensive strategies to enhance mineral value addition, focusing on maximising socioeconomic benefits from the country’s natural resources. The plans were highlighted on the opening day of the Tanzania Mining and Investment Conference 2024 at the Julius Nyerere International Convention Centre in Dar es Salaam. Minerals Minister Mr Anthony Mavunde reiterated the government’s commitment to transforming Tanzania’s mining sector into a key economic driver. Among the initiatives announced is the construction of a state-of-the-art mineral refining plant at the site of the former Buzwagi Gold Mine in Kahama, Shinyanga Region. “We are also constructing modern laboratories in Dodoma, Geita, and Chunya to support local miners who have been relying on international facilities for sample testing,” Mr Mavunde said. He added that the facilities would significantly boost mining activities, reduce operational costs, and enhance the sector’s global competitiveness. To further advance the sector, the government has procured helicopters for geological surveys and achieved 97% completion in geological mapping. This is expected to unlock new opportunities for exploration and investment.

Source: The Citizen

Zimbabwe

Zimbabwe and ECA host stakeholder validation workshop for the draft Green Supplement to the AfCFTA Implementation Strategy

The United Nations Economic Commission for Africa (ECA) in collaboration with Zimbabwe’s Ministry of Industry and Commerce held a two-day validation workshop to present and discuss the draft Green Supplement to Zimbabwe’s National Strategy for implementing the African Continental Free Trade Area (AfCFTA) Agreement. The Green Supplement focuses on developing green value chains for oleaginous plants, seeds, fruits, and the wood and paper industries. It will complement Zimbabwe's National AfCFTA Implementation Strategy that was developed by the Ministry of Foreign Affairs and International Trade with support from ECA and the European Union. The workshop gathered feedback and insights from various stakeholders across Zimbabwe, fostering discussions to refine the Green Supplement and ensure it aligns with national priorities and existing policies.

Source: ECA