Nine African countries with the most critical minerals
Africa is home to 30% of the world’s critical minerals, essential for the clean energy transition and 4IR technologies. As a result, African nations are enhancing their respective exploration, production and infrastructure capabilities to expand critical mineral reserves and output, leveraging rising demand for transition minerals and metals. South Africa possesses 80% of the world’s platinum group metals reserves, with over 80 active projects and numerous exploration initiatives underway. Morocco holds over 50 billion tonnes of phosphate reserves, representing 70% of the world’s total phosphate resources, which are crucial for battery and fertiliser production. The Democratic Republic of the Congo (DRC) has the world’s largest cobalt reserves, with 6 million metric tonnes out of the global 11 million metric tonnes. Guinea-Conakry holds 23% of the world’s bauxite reserves and ranks as the second-largest producer globally. Zimbabwe has Africa’s largest lithium reserves – with an estimated 11 million tonnes – and is the world’s sixth-largest producer. Home to the mineral-rich Copperbelt region – which also stretches across the DRC – Zambia accounts for 4% of global copper production. Mozambique and Tanzania together hold 13% of the world’s graphite, a key input in battery manufacturing. Gabon has the world’s second-largest manganese deposits and is the third-largest producer.
Source: Energy Capital & Power
Africa
AfDB Group Board of Governors approves USD117-billion general callable capital increase
The Board of Governors of the African Development Bank (AfDB) Group has approved a USD117-billion (UA88.1-billion) General Callable Capital Increase for the AfDB to preserve its lending capacity and respond to the requirement of a credit agency. The approval increases the AfDB’s authorised capital from USD201-billion (UA152-billion) to USD318-billion (UA240-billion). Announcing the approval during a recent press conference at the close of the AfDB Group’s Annual Meetings in Nairobi, AfDB President Akinwumi Adesina said, “The additional callable capital allows us to maintain and leverage our firepower, while preserving our rating. [I am] grateful to the group’s shareholders and humbled by their level of confidence in the institution. [It is] a major demonstration of the faith and the confidence our shareholders have in us, and our ability to use our resources well to mobilise additional capital to do even more,” Adesina added.
Source: AfDB
Africa
AfDB joins the African Carbon Markets Initiative to enhance climate finance
The African Development Bank (AfDB) has announced its official membership in the African Carbon Markets Initiative (ACMI) as of 30 May. This strategic move is set to empower African countries and the private sector in securing additional resources to combat climate challenges effectively. Dr Kevin Kariuki, AfDB’s Vice President for Power, Energy, Climate, and Green Growth, made the announcement during a round table at the 2024 Annual Meetings of the AfDB Group, held in Nairobi, Kenya, from 27-31 May. “I am pleased to announce that the [AfDB] is now an official member of the [ACMI]. Through this decision, the bank is committed to establishing a mechanism to support carbon market initiatives across our continent,” said Kariuki. He highlighted the necessity of financial innovation and the immense potential of raising climate finance through carbon markets. He urged African countries to seize opportunities for trading carbon credits under the Paris Agreement’s compliance markets, where prices for emission reductions are significantly higher than in voluntary markets.
Source: AfDB
Africa
AfDB to boost its financing capacity by over USD70-billion as it launches its new ten-year strategy
The African Development Bank (AfDB) Group has unveiled its new ten-year strategy, titled The Ten-Year Strategy2024–2033: Seizing Africa’s opportunities for a prosperous, inclusive, resilient, and integrated continent, a blueprint to confront Africa’s pressing challenges and to help put the continent firmly back on track towards sustained economic growth and prosperity. “The ten-year strategy outlines how the [AfDB] will invest in Africa’s best asset: its vibrant young men and women. Africa’s population, which is the fast growing in the world, presents the continent with an unparalleled demographic window of opportunity,” AfDB Group President Akinwumi Adesina said. The new strategy articulates a vision of a prosperous, inclusive, resilient, and integrated Africa, underpinned by two key objectives over the next decade: accelerating inclusive green growth and fostering prosperous and resilient economies. With an emphasis on sustainability, the bank will strive to balance environmental concerns, equity, and economic advancement.
Source: AfDB
Africa
Beyond GDP measurements, carefully designed nature-based solutions could accelerate development and social equity – ECA’s Antonio Pedro
Nature-based solutions present a unique way for Africa to accelerate the implementation of the sustainable development goals (SDGs) and Agenda 2063 while contributing to the conservation of continent's rich biodiversity, promoting ecological connectivity, and enhancing climate resilience, said Antonio Pedro, Deputy Executive Secretary, the United Nations Economic Commission for Africa (ECA), on 28 May 2024, at the African Natural Capital Alliance Annual Summit held in Nairobi, Kenya. Speaking to leaders in the financial markets sector, Mr Pedro said, “With careful design of its development pathway, Africa can harness the value of its natural resources through responsible management practices that recognise planetary boundaries and balance economic growth with environmental conservation and social equity, beyond GDP metrics.” Referencing a study by the ECA and Dalberg, Mr Pedro said Africa could mobilise USD82-billion per annum if the price of carbon reached USD120 per tonne of CO2. However, there is a need to eliminate market fragmentation and invest in building high integrity carbon credit markets. He stressed that Africa’s vast resources should drive inclusive growth, structural transformation, prosperity, and the wellbeing of its people and nations. “The vast coastline of Africa provides an opportunity for the development of the blue economy, which could generate USD576-billion a year and create 127 million jobs by 2063 through research, innovation, and ecosystem management,” he said.
Source: ECA
Africa
Annual Meetings 2024: Comoros, Djibouti, Somalia and South Sudan join USD35-million AfDB climate disaster risk financing project
The African Development Bank (AfDB) Group Vice President for Agriculture, Human and Social Development joined finance ministers and representatives from Comoros, Djibouti, Somalia and South Sudan for the signing agreement for a USD35-million project to build resilience and responses to climate shocks. The signings took place on the sidelines of the AfDB’s 2024 Annual Meetings in Nairobi. The AfDB’s Board of Directors approved the Multi-National Climate Disaster Risk Financing Project on 3 May 2024. Developed under the AfDB’s Africa Disaster Risk Financing Programme (ADRiFi) it will support the four countries to create an enabling environment for the adoption of climate risk financing instruments. It will also enhance uptake of pre-arranged climate and disaster risk financing instruments and strengthen adaptation and resilience of the targeted beneficiary countries against climate risks.
Source: AfDB
Africa
International Holding Company to invest USD1-billion in African mining
The United Arab Emirates conglomerate International Holding Company (IHC) will allocate approximately USD1-billion toward mining acquisitions in Africa this year, building on its acquisition of the Mopani Copper Mine in Zambia completed last March. According to IHC CEO Syed Basar Shueb, the company’s mining subsidiary International Resources Holding (IRH) recently finalised joint venture agreements for iron ore mining in Angola’s Kassala-Kitungo and Munenga regions. Additionally, IRH is in advanced discussions for nickel mining in Burundi, while also exploring opportunities in Tanzania and Kenya for various metals. IHC is also in discussions to acquire the Konkola Copper Mine (KCM) in Zambia, engaging with both the Zambian Government and shareholder Vedanta Resources, an Indian metals and energy group seeking to divest its minority stake. “Next to Mopani is KCM…we are talking to the government because it makes a lot of sense that one party manages Mopani and KCM,” Shueb said to the Financial Times. “We had a few meetings with Vedanta and the government, but of course, Vedanta is a large player, they are much more experienced than us.” IHC is strategically consolidating its mining interests under IRH, as it focuses on acquiring mining concessions. from USD114.6-million.
Source: Energy Capital & Power
Africa
KRA Commissioner General asks African countries to modernise tax collections
The Kenya Revenue Authority (KRA) Commissioner General Humphrey Wattanga has urged African countries to modernise tax administrations despite facing challenges such as informality, governance deficits, and illicit financial flows. The KRA boss said Africa’s tax future will be shaped by demographic trends, technological advancements, global economic dynamics, and evolving tax policy debates. He was speaking at the International Bureau of Fiscal Documentation Africa Tax Symposium 2024 at the Safari Park Hotel in Nairobi. “Key considerations include harnessing technology, strengthening governance, promoting regional cooperation, and advocating for fair global tax policies. Embracing technologies like data analytics, AI, and blockchain can improve tax administration operations, compliance, and service delivery. Digitising tax systems can streamline processes and enhance taxpayer services,” said the commissioner general. He emphasised that enhancing regional collaboration and harmonising tax policies are crucial for Africa’s tax future, noting that Africa’s voice is becoming more significant in international tax policy debates. “African countries must emphasise their interests and priorities on a global scale, advocating for fair and equitable tax systems, combating tax evasion, and promoting global tax cooperation,” said Mr Wattanga.
Source: Africa Business Communities
Ghana
World Bank supports Ghana to strengthen its financial sector
The World Bank has approved a USD250-million International Development Association (IDA) credit for a five-year Ghana Financial Stability Project. The project will support Ghana’s Financial Sector Strengthening Strategy by contributing to financial stability through the recapitalisation of viable Banks and Specialised Deposit-Taking Institutions (SDIs) impacted by Ghana’s Domestic Debt Exchange Program (DDEP). The financial system is critical to the functioning of the Ghanaian economy, providing critical services to households, firms, government, and supporting economic growth. To address the severe impact of the DDEP on financial institutions, the government established the Ghana Financial Sector Stability Fund (GFSF) to provide solvency support to banks, pension funds, insurance companies fund managers and collective investment schemes. “This project will contribute to Ghana’s financial stability, by providing solvency support to banks and SDIs impacted by the DDEP through the GFSF.” said Robert R. Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “Through direct support to banks and SDIs, the project will benefit Ghana’s financial sector and the economy by supporting the access of depositors and other financial consumers to savings, payments, and other core financial services provided by adequately capitalised banks and SDIs.”
Source: World Bank
Kenya
New financing to address fiscal pressures and accelerate inclusive and green growth
The World Bank has approved new funding to help Kenya address short-term fiscal pressures and simultaneously accelerate a more prosperous, green, and inclusive future. The new USD1.2-billion Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO), the first in a series of three, has been prepared under an improved macroeconomic environment following government action to address the challenges that had overshadowed the economy including tight liquidity pressures, depressed investor confidence and limited capital inflows that had resulted in a rapidly depreciating shilling. “The policy dialogue around this DPO has helped to strengthen the macroeconomic framework, sustain an ambitious fiscal consolidation path, and tighten monetary policy,” said Keith Hansen, World Bank Country Director for Kenya. “After tackling the immediate fiscal pressures, the focus can now shift to addressing the country’s longer-term challenges.” The DPO will support policy and institutional reforms to (i) address structural constraints in Kenya’s public finances, alleviate fiscal pressures and promote a more efficient and sustainable budget; (ii) foster more competitive and inclusive product and labour markets; and (iii) strengthen climate action, building on Kenya’s strong leadership under the 2023 Nairobi Declaration on Climate Change.
Source: World Bank
Kenya
Proposed law changes hand CAK powers to probe consumer rights breaches
The competition watchdog will have the power to initiate investigations into consumer rights breaches such as the sale of defective goods and misrepresentation in a change expected to boost the regulator’s protection mandate. The proposed amendments will be a departure from the current model where the Competition Authority of Kenya (CAK) only takes actions of traders upon receiving consumer complaints. With the nod, the CAK will have an expanded scope to launch investigations against consumer welfare breaches like false representations as well as the supply of unsafe, defective and unsuitable goods. “The Competition Act, as currently drafted, requires a consumer to complain directly with the authority to trigger an investigation. This model does not serve the interest of the public and curtails the authority’s mandate execution. If the proposed amendment becomes law, it will empower the authority to investigate consumer-related issues it identifies in the markets even without a prompt from a consumer,” the CAK told Business Daily recently.
Source: Business Daily
Malawi
World Bank provides new results-based financing support to strengthen Malawi’s fiscal governance
The World Bank is providing support to improve resource mobilisation, budget execution, and transparency of public finances to assist the achievement of results under the Malawi Public Finance Management (PFM) Strategy 2023 - 2028. The new USD80-million International Development Association grant complements the International Monetary Fund Extended Credit Facility arrangement and the World Bank Development Policy Financing, both approved in late 2023. As a Program for Results (PforR), the funds will be unlocked upon the achievement of indicators such as an increase in domestic value-added tax revenue collection, decreases in variance between approved budget and expenditure outturn, and an increase of contract data accessible by citizens. The Government of Malawi recently launched the Malawi PFM Strategy 2023 - 2028 with the overarching objectives of attaining sound financial management and discipline in public service delivery for sustainable development, restoring credibility and confidence in government systems, and creating an enabling environment for more effective development performance. The five-year Malawi Fiscal Governance PforR, the first of its kind for Malawi, will co-finance the implementation of the PFM Strategy.
Source: World Bank
Niger
IMF and Niger reach staff-level agreement on the fourth and fifth reviews of the ECF and the first review under the RSF
An International Monetary Fund (IMF) staff team led by Mr Antonio David held meetings from 20 May to 1 June 2024, on the fourth and fifth reviews of the arrangement with Niger supported by the Extended Credit Facility (ECF) and the first review of the arrangement under the Resilience and Sustainability Facility (RSF). At the end of the mission, Mr David issued the following statement, in part: “The Nigerien authorities and the IMF team reached a staff-level agreement on the fourth and fifth reviews of Niger’s economic programme under the [ECF] and on the first review of the arrangement under the [RSF]. The staff-level agreement is subject to IMF Management and Executive Board approval. The board meeting is expected to take place in July 2024. The ECF reviews’ completion would allow for the disbursement of SDR19.7-million (about USD26.1-million, or 15% of Niger’s quota) to cover external financing needs. In turn, the completion of the first review of the RSF would allow for the disbursement of SDR34.2-million (about USD45.3-million, or 26% of Niger’s quota). “Growth is estimated to have decelerated to 2.4% in 2023, mainly because of the effects of sanctions and a relatively unfavourable agriculture season.”
Source: IMF
Rwanda
Rwanda launches regional programme to enhance horticulture sector
A regional programme meant to boost the horticulture industry in five countries in eastern and southern Africa has been launched in Rwanda. The Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) Horticulture Accelerator Programme (CEHA) aims to accelerate the growth of the fruit and vegetable sub-sector in these regions. The CEHA initially focuses on three priority value chains: avocado, onion and Irish potatoes. These specific value chains face agronomic, logistical and regulatory challenges that are common to many other fruit and vegetable crops. Rwanda is the second country to launch the CEHA programme following Kenya. The programme is being implemented through the Alliance for Commodity Trade in Eastern and Southern Africa (COMESA-ACTESA) which is a specialised arm of the 21-member COMESA bloc. The CEHA programme, created in 2022 through a collaboration of public and private sector partners, aims to better coordinate policy, value chain development programmes, financing, research, and development. In the short term, the priority value chains are avocado, onion and Irish potato in Ethiopia, Kenya, Rwanda, Tanzania and Uganda. At the launch of the CEHA Rwanda National Chapter in Kigali on 23 May 2024, ACTESA CEO Dr John Mukuka announced that the programme will facilitate the modernisation of regional horticulture value chains across East Africa.
Source: COMESA
Sudan / South Sudan
Sudan, South Sudan discuss resumption of oil transportation
Sudan's Transitional Sovereign Council Chairman Abdel Fattah Al-Burhan recently held talks with South Sudan's Presidential Advisor on National Security Tut Gatluak on the resumption of South Sudan's oil transportation through Sudanese territories. "South Sudan's oil transportation line has been affected by the war in Sudan, and it is currently suspended due to the continued military operations at the areas alongside the line," Gatluak was quoted as saying in a statement by the sovereign council. He said it has been agreed that a meeting will be held between the oil ministries of the two countries to discuss solutions to this issue, noting that, "Oil constitutes a lifeline for the citizens of both countries." Gatluak also delivered a written message from South Sudanese President Salva Kiir Mayardit regarding the development of bilateral ties, said the statement. In March, the Sudanese Government announced the suspension of South Sudan's oil exports through Sudanese territories due to a fault in the transportation lines.
Source: Xinhua
Tanzania
Tanzania to develop online booking platform to offset tourism revenue losses
The Ministry of Natural Resources and Tourism intends to allocate TZS1-billion towards the development of an online safari booking system. This initiative aims to address loopholes that have led to revenue losses within the sector. Requesting the Parliament to approve the TZS348.125-billion budget for the 2024/25 fiscal year, the Minister for Natural Resources and Tourism, Angellah Kairuki, said part of the development funds from domestic sources would be used for the project, to be known officially as the Tanzania Safari Online Booking System. “The funds will be used for designing, construction, testing, system upgrading, training, and maintenance, as well as improvements,” Ms Kairuki told the Members of Parliament as she tabled the budget in Parliament on Friday, 31 May 2024. Tanzania received a total of USD3.4-billion from travel receipts in 2023, an increase of 36% compared to the same period in 2022. The plan is to earn USD6-billion in receipts from five million tourist arrivals by 2025. About 1 808 205 million tourists visited Tanzania in 2023. However, there have been concerns that only a portion of tourism earnings are retained in Tanzania, with the rest either repatriated overseas or remaining overseas.
Source: The Citizen
Tanzania / Namibia
Tanzania-Namibia hold investment forum to boost bilateral trade
The first Tanzania-Namibia Trade and Investment Forum took place on Thursday, 30 May in Windhoek. The forum, organised to boost bilateral trade relations, was jointly organised by the Tanzanian Embassy in Namibia and the Namibia Investment Promotion and Development Board. The forum covered sectors such as livestock, fishing, agriculture, tourism, infrastructure, trade, and investment. The Tanzanian delegation was led by the Permanent Secretary in the Ministry of Foreign Affairs and the East African Community (in charge of East African Affairs), Ambassador Stephen Mbundi. Various Tanzanian institutions participated in the forum. The forum generated significant enthusiasm for trade and investment cooperation, allowing participants to engage in business-to-business and government-to-government meetings. “One of the outcomes of the forum was the interest expressed by Namibian businesspeople in purchasing maize from Tanzania,” Ambassador Mbundi told The Citizen.
Source: The Citizen
