World
Joint press release – IMF joins the United Nations Global Counter-Terrorism Coordination Compact
The International Monetary Fund (IMF) and the United Nations Global Counter-Terrorism Coordination Compact has issued the following statement, in part: The IMF joined the United Nations Global Counter-Terrorism Coordination Compact at a High-Level event on Enhancing global cooperation on countering the financing of terrorism. Principals from the United Nations Office for Counter-Terrorism (UNOCT), the Counter-Terrorism Committee Executive Directorate (CTED) and the United Nations Office on Drugs and Crime (UNODC) attended the event virtually and welcomed the IMF in its observer capacity at the staff level as the 46th entity of the Global Counter-Terrorism Coordination Compact, the largest coordination framework within the United Nations (UN) system. “The IMF is in a position to contribute significant expertise to the compact’s efforts to address illicit financial flows derived from terrorism and other forms of criminality,” said Mr Vladimir Voronkov, under secretary general for Counter-Terrorism and chair of the Global Counter-Terrorism Coordination Compact.
Source: IMF
Africa’s energy investment landscape dominated by renewable projects
Renewable energy projects dominate Africa’s energy sector in number, with a total of 153 projects between 2020 and 2023. Overall, ongoing infrastructure projects totalling USD353-billion in investments spanning 165 projects have been committed to. But weak legislative frameworks and the perception of a lack of projects are hampering more investment in Africa. Hendrik Malan, Africa CEO – Frost & Sullivan, South Africa, said without longer term power agreements, no investor will be interested. He was speaking on the closing day of Enlit Africa 2023, focusing on the topic, Tracking Project Development in Africa. “Africa is truly the last growth frontier and is of great interest to a vast number of companies we deal with. But they are concerned about value versus risk.” Malan said despite the two main concerns “clearly we have enough projects.” It is more a case of a “lack of fit” in terms of a potential investor’s risk and profit profile. “There are also certain parameters they have set up that create a mismatch.” Despite these challenges, Malan said that Africa is well placed to service the European markets due to the decarbonisation drive there. He said renewable energy projects in Southern and North Africa are driving growth in the energy sector. Green hydrogen is expected to play a significant role in the global energy transition.
Source: ESI Africa
Africa
Africa Investment Forum showcases USD1.475-billion in green and renewable energy deals at AfDB 2023 Annual Meetings
The Africa Investment Forum presented four renewable energy and sustainability projects worth nearly USD1.5-billion to investors on the sidelines of the African Development Bank (AfDB) Group’s 2023 Annual Meetings. The curated projects, which are drawn from all of Africa’s regions, are sourced from the Africa Investment Forum’s pipeline. They reflect gathering urgency in Africa, the world’s most vulnerable region to climate change, to accelerate climate action, including closing financing gaps by securing an ever-increasing share of global capital for the continent. The AfDB’s 2023 Annual Meetings are being held under the theme, Mobilizing Private Sector Financing for Climate and Green Growth in Africa. The investment roundtable, held in Sharm El-Sheikh, attracted a range of private investors, including venture capital and private equity firms. The event also included an update on the Africa Investment Forum’s current pipeline, comprising 90 deals valued at USD62.9-billion and classified as either in the capital raise phase or the bankability phase.
Source: AfDB
Africa
African ministers call for reforms of the IMF’s Special Drawing Rights system
African Ministers of Finance, Planning and Economic Development have called for reforms of the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) system to strengthen the global financial safety net and make more liquidity available to developing countries. The call for reforms was made during a meeting of the Africa High-level Working Group on the Global Financial Architecture on the margins of the 2023 Annual Meetings of the African Development Bank (AfDB) Group held in Sharm El-Sheikh, Egypt. Coordinated by the United Nations Economic Commission for Africa (UNECA), the High-level Working Group comprises African Ministers of Finance, Planning and Economic Development, the African Union (AU), the AfDB, the African Export-Import Bank (Afreximbank), and the World Bank, and includes the participation of IMF staff and Executive Directors.
Source: UNECA
Africa
Africa set to be the second-fastest growing region after Asia, but headwinds remain, says AfDB’s African Economic Outlook report
Africa is set to be the second-fastest growing region in the world after Asia in 2023-24, demonstrating the resilience of its economy despite dealing with multiple global shocks. But the projected growth will depend on global conditions and the continent’s ability to bolster its economic resilience, the African Development Bank’s (AfDB) African Economic Outlook 2023 report has found. The report, launched recently, forecasts that Africa will consolidate its post-COVID-19 pandemic recovery to 4.3% GDP growth in 2024 from 3.8% in 2022. Some 22 countries will record growth rates above 5%, it says. It recommends robust policy actions, including incentivising green industries and providing guarantees at scale to de-risk private sector investments in managing natural capital across the continent. The launch, attended by African leaders, experts and development partners, was one of the highlights of the AfDB’s Annual Meetings in Sharm El-Sheikh, Egypt The AfDB’s chief economist and vice president for Economic Governance and Knowledge Management, Professor Kevin Urama, presented the report’s findings, outlining several potential policy actions for stimulating more private sector financing for climate and green growth in Africa.
Source: AfDB
Africa
Collaboration for pharmaceutical self-sufficiency: African Pharmaceutical Technology Foundation receives strong endorsement from eminent panel at AfDB Annual Meetings
The newly established African Pharmaceutical Technology Foundation (APTF) will be instrumental in propelling Africa towards the attainment of the United Nations Sustainable Development Goals (SDGs). The African Development Bank’s (AfDB) senior advisor on pharmaceuticals and health, Professor Padmashree Gehl Sampath, recently shared this bold belief during a presentation on the APTF ahead of a panel discussion on the first day of the 2023 Annual Meetings of the AfDB in Sharm El-Sheikh. She emphasised the APTF’s objective of fostering regional pharmaceutical production and innovation capabilities, explaining that it aimed not only to augment industrial development and shape robust health policies but also to strengthen regional health security. She said as an independent institution, the APTF would enhance Africa’s access to the technologies for manufacturing medicines, vaccines, and other pharmaceutical products. The AfDB’s president Akinwumi Adesina initiated the foundation in response to vaccine shortage in Africa at the height of the COVID-19 pandemic, realising that the continent needed to boost its level of preparedness.
Source: AfDB
Africa
ESG Africa Conference: Unlocking sustainable growth for Africa's future
The highly anticipated second edition of the ESG Africa Conference is scheduled to take place from 4-5 October 2023, at the Sandton Convention Centre. This groundbreaking event aims to explore how environmental, social, and governance (ESG) principles can drive sustainable growth and development throughout the African continent. With an impressive lineup of renowned speakers, engaging panel discussions, and networking opportunities, the conference promises to be a crucial gathering for industry leaders, policymakers, investors, and anyone passionate about Africa's future. The ESG Africa Conference serves as a platform for fostering dialogue and collaboration among stakeholders committed to addressing the pressing challenges faced by African nations while embracing the numerous opportunities presented by sustainable practices. By integrating ESG considerations into their business strategies, companies can align their operations with global sustainability goals and contribute to the inclusive and sustainable development of Africa.
Source: Bizcommunity
Africa
ITC, AUC partner to empower small businesses unlock intra-African trade
The African Union Commission (AUC) and the International Trade Centre (ITC) have signed a memorandum of understanding (MoU) at the African Union (AU) headquarters in Addis Ababa, Ethiopia, to mark the next chapter of an ongoing partnership. Together, the organisations will foster inclusive trade in Africa by incorporating small enterprises into the regional economy, and promote the sharing of trade information and market intelligence across Africa through the African Trade Observatory (ATO). The renewed agreement responds to changes in the global economy and the ongoing regional integration process in Africa underpinned by the African Continental Free Trade Area (AfCFTA). Key areas highlighted in the framework of cooperation include advancing the ATO, an online tool developed by ITC that provides policymakers and businesses real-time trade data; promoting key continental value chains to reinforce industrial development; integrating small businesses into the regional trade process to take advantage of the AfCFTA; and mainstreaming the economic empowerment of women and young entrepreneurs for inclusive trade.
Source: Africa Business Communities
Central Africa
Keys to unlocking the full potential of the AfCFTA – A case study for Central Africa
Free trade under the African Continental Free Trade Area (AfCFTA) Agreement officially started on 1 January 2021. In response, Central African governments began developing national AfCFTA implementation strategies with the support of the United Nations Economic Commission for Africa (UNECA) and its partners. A sub-regional AfCFTA strategy for Central Africa is also under development. The AfCFTA is a key opportunity for Central African governments to build upon regional integration strategies, aligning their national trade strategies as well as industrial strategies, to enhance intra-regional trade as well as trade with continental partners. Trade strategies are linked to the productive capacity of each country, and therefore the development of trade strategies requires direct linkages with the National Industrialisation Plans which, for Central Africa, advocate industrialisation based on natural resources and driven by trade, in line with the Douala Consensus. At the sub-regional level, the two regional economic communities, the Economic Community of Central African States (ECCAS) and the Central African Economic and Monetary Community (CEMAC), stressed the urgency of developing a Master Plan for Industrial Development and Economic Diversification of Central Africa (PDIDE-CA) in the context of the AfCFTA.
Source: UNECA
Southern Africa
SADC and member states step up efforts to attract foreign direct investment
The Southern African Development Community (SADC) has stepped up efforts to attract more foreign direct investment (FDI) to the region by participating at the 12th Edition of the Annual Investment Meeting (AIM) Global 2023 in Abu Dhabi, United Arab Emirates (UAE) from 8-10 May 2023. It showcased its programmes and projects to various key decision-makers and businesses who are willing to engage in sustainable partnerships, and benefit from a variety of features aimed at facilitating strategic networking and promoting the SADC region as the most attractive zone for business and investments in Africa. Approximately 100 investors visited the SADC Exhibition booth from 8 to 10 May 2023. Twelve SADC member states, Angola, Botswana, the Democratic Republic of the Congo (DRC), Eswatini, Lesotho, Mozambique, Madagascar, Malawi, Mauritius, Namibia, Seychelles, and Zimbabwe, attended the AIM Global 2023. The SADC Secretarial held the SADC Regional Focus Forum at AIM Global 2023 to attract FDI under the theme Infrastructure Development in Support of Industrialisation and Regional Integration.
Source: SADC
Ghana / Kenya
GEPA opens Ghana Trade House in Nairobi
The Ghana Export Promotion Authority (GEPA) has officially opened a business centre in Kenya dubbed the “Ghana Trade House” as part of its mandate to facilitate the export of Ghanaian goods and services. The one-stop shop outlet, located in Nairobi's Sameer Business Park, is intended to provide a platform for Ghanaian exporters to showcase their products and services in the East African country, fostering economic growth and development. According to the CEO of GEPA, Dr Afua Asabea Asare, the establishment of the Ghana Trade House forms part of the implementation of Ghana's National Export Development Strategy (NEDS), which aims to generate USD25.3-billion in non-traditional export revenues by the year 2029. Speaking during the opening ceremony held in Nairobi on 23 May 2023, as part of the first-ever Ghana Expo in Kenya, Dr Asabea Asare said the Ghana Trade House in Kenya indicates growing economic cooperation between Ghana and countries within the East Africa region. She said the Ghana Trade House will stock premium Ghanaian products for the East African market, diversify the options available, stimulate trade activities, create business opportunities, and generate employment opportunities.
Source: ModernGhana
Kenya
IMF reaches staff level agreement with Kenya on the fifth reviews of the EFF and ECF arrangements and the Resilience and Sustainability Facility
A staff team from the International Monetary Fund (IMF), led by Haimanot Teferra, visited Nairobi from 9-22 May 2023, for the fifth reviews of Kenya’s economic programme supported by the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF). The arrangements were approved by the IMF Executive Board on 2 April 2021. Including augmentation at the time of the fourth reviews, these arrangements provide access to a total amount of SDR1.818-billion (about USD2.43-billion at current exchange rate). The mission also considered Kenya’s request for access under the IMF’s Resilience and Sustainability Facility (RSF) and further augmentation under the EFF/ECF. At the conclusion of the mission, Ms Teferra issued the following statement, in part: “The IMF team and the Kenyan authorities have reached staff-level agreement on the fifth reviews of Kenya’s economic programme under the EFF and ECF arrangements; an augmentation of access under the EFF/ECF totaling 75% of quota (SDR407.1-million, about USD544.3-million) given challenging global financing conditions; an extension of the duration of the EFF/ECF arrangements by 10 months to April 2025 to allow sufficient time for meeting the programme objectives; and a new 20-month RSF arrangement with access also of 75% of quota that will run in parallel with the EFF/ECF arrangements until April 2025.”
Source: IMF
Kenya
Kenya reveals three-year KES469-billion oil investment road map
Kenya will need at least KES469-billion for commercial oil production in the Turkana wells if it is to realise its petrodollar dream amid the exits of exploration firms. After a nine-year wait, the country now hopes to start large-scale production of between 80 000 and 120 000 barrels of oil daily in three years. Energy Cabinet Secretary Davis Chirchir recently told the Senate that Kenya needs KES469.5-billion (USD3.4-billion) to develop infrastructure at the South Lokichar basin – which has estimated oil reserves of 504 million barrels – before production starts. This includes investments to get the product to the market, including drilling commercial wells, tankage in Turkana and a refinery or pipeline to Mombasa. The cabinet secretary said the figures are contained in a field development plan (FDP) report on the commerciality and technical viability of the Turkana oil venture. He pointed out that the report, which is being looked at by a team of experts, contains a road map showing that the country will reach investment decisions as well as develop the much-needed infrastructure and all other logistics to take the oil to the market.
Source: Business Daily Africa
Kenya
Safaricom reveals plan to set up smartphone factory
Safaricom has revealed that it is setting up a factory in Kenya, which will assemble between 1.2 million and 1.4 million smartphones a year, making it one of the biggest players lining up to implement President William Ruto's plan of producing Africa's cheapest gadgets. Appearing before the National Assembly’s Finance and Planning Committee recently, the telecommunications company (telco) put up a spirited fight against new taxes on mobile phones as contained in the Finance Bill, 2023, arguing that it will be impossible to achieve the target price of a USD50 (KES6 850) smartphone since the proposed taxes will raise the cost of locally assembled smartphones to KES11 500. “If we were to work with the president's vision of a USD50 phone, we need to address the question of import, excise and output value-added tax (VAT) for me to save KES4 000 and bring down the cost from KES11 500 to KES7 500,” Mr Karanja Gichiri, Safaricom Head of Venture, told Members of Parliament during the public hearings on the Finance Bill. He said the telco, which imports four million phones every year, is working on an assembly line, but the taxes would make the project unviable.
Source: Business Daily Africa
Nigeria
Nigeria: making access to finance easier for solar companies
The Renewable Energy Association of Nigeria (REAN) and Odyssey Energy Solutions, have signed an agreement to work together to make solar equipment procurement “more efficient and cost-effective” for solar companies operating in Nigeria. They will make USD100-million of equipment finance available to REAN members. This will mean “favourable terms”, including only requiring a small down payment for equipment. Solar companies will also be given a 60-day window period in which to pay the balance once equipment has arrived in Nigeria for select equipment. As one of the fastest-growing economies in Africa, Nigeria has a significant demand for renewable energy solutions. Many solar companies face significant challenges when it comes to sourcing equipment and materials, including long lead times, high costs and lack of access to quality products. By 2040, the Nigerian government aims to achieve 100% rural electrification with 5% through stand-alone solar (SAS) solutions.
Source: ESI Africa
Nigeria
Nigeria wants to boost production of electric vehicles under new plan
Nigeria wants to locally produce at least a third of all electric vehicles in its market in the next decade. The West African nation recently ratified its National Automotive Industry Development Plan (NAIDP) in a bid to boost its technology and manufacturing capacity in the automotive industry. The plan was recently presented to the government’s Federal Executive Council by the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo. The National Automotive Design and Development Council (NADDC), which had put the plan together, said it is “aimed at enabling the exponential increase in the local production numbers of vehicles.” “The NADDC has developed the new plan to aggressively build on the successes that have been achieved so far in the Nigerian Automotive industry. “The new NAIDP would strategically provide outstandingly competitive fiscal and non-fiscal incentives needed by automotive industry manufacturers/producers, investors, developers and all relevant stakeholders,” said the council.
Source: ESI Africa
Republic of the Congo
IMF staff concludes mission to the Republic of the Congo for the third review of the ECF arrangement
An International Monetary Fund (IMF) mission led by Roland Kpodar visited the Republic of the Congo from 8-19 May, to hold discussions under the third review of the authorities’ programme supported by the IMF Extended Credit Facility (ECF) approved in January 2022. At the end of the mission, Mr Kpodar issued the following statement, in part: “The IMF team welcomes the authorities’ renewed commitment to implement policies needed to safeguard macroeconomic stability, promote inclusive and sustainable growth, and lock in recent gains in reducing debt vulnerabilities. Post-pandemic recovery gained traction in 2022 with economic growth estimated at 1.7%, driven mainly by the non-oil sector. Consumption and investment were spurred by government spending and increased activity in agriculture, manufacturing, and services. On the other hand, oil production contracted due to equipment issues in some large fields. High food inflation remained owing to increased import costs. High global oil prices helped the country’s current account, but higher refined fuel import costs were subsidized by the government, thus widening the 2022 non-oil fiscal deficit.”
Source: IMF
Rwanda
IMF Executive Board completes first reviews under the Policy Coordination Instrument, and Resilience and Sustainability Facility for Rwanda
The Executive Board of the International Monetary Fund (IMF) has completed the first reviews of Rwanda’s Policy Coordination Instrument (PCI) and programme under the Resilience and Sustainability Facility (RSF). The board’s decision allows for an immediate disbursement of SDR73.95-million (about USD98.6-million) under the RSF. The PCI and RSF arrangement were approved on 12 December 2022, the latter with a total amount of SDR240.3-million (about USD319-million or 150% of quota). Rwanda’s economy continued with fast-paced post-pandemic growth in 2022, but macroeconomic imbalances have emerged. Rising food prices and strong domestic demand fuelled by high credit growth contributed to a persistent inflation which stood at 17.8% in April. Robust import demand coupled with high commodity prices and tightening global financing conditions have weakened Rwanda’s external position. The uncertain external environment and the reduced prospects for external concessional financing are compounding the challenges from the legacy of the recent global crises.
Source: IMF
South Sudan / Ethiopia
LAPSSET Ministerial Council adopts “Juba Commitments” to fast-track infrastructure, trade and integration
The Government of South Sudan has pledged to establish a coordinating structure to accelerate infrastructure projects along the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor. This announcement was made by the Transport Minister, Mr Madut Biar Yel, in Juba at the conclusion of a three-day ministerial council meeting attended by ministers and senior officials from Kenya, Ethiopia, and South Sudan. The ministers adopted the Juba Commitments, an 11-paragraph resolution, which calls on member states of LAPSSET to integrate corridor projects into their national development plans and develop a 10-year strategic plan for their implementation. They also committed to operationalising the Steering Committee and Technical Committee to ensure coordinated implementation in the three countries. The ministers recognised the 16 priority LAPSSET projects identified by South Sudan and urged private investors and development partners to channel resources and technical support towards their fast-track implementation. The LAPSSET Business Council was called upon to mobilise resources and investments for the accelerated growth of key corridor components.
Source: UNECA
