Today’s Topics 

Global FDI flows rebound in 2021 to reach $1.6 tln with positive outlook for 2022: UNCTAD (Ahram)

UK-Africa investment summit closes with millions in ‘misguided’ investment (African Business)

Economy needs "deep reforms" says the IMF's envoy to Tunisia (Africa News)

For the first time Ethiopia sold more than 11,200 bags of coffee online in one second during the Ethiopian Coffee Brands Launch on China’s Largest E-Commerce Platform, Alibaba (News Business Ethiopia)

Chad's Economy Shrunk 1.1% in 2021 on Reduced Oil Production, Prices  (Market Watch)

FG, Private Sector Partner To Develop Logistic Hub For AfCFTA Trade Integration (The Leadership)

Port investments to contribute towards SA economy (SA News)

INTERNATIONAL

Global FDI flows rebound in 2021 to reach $1.6 tln with positive outlook for 2022: UNCTAD - Global foreign direct investment (FDI) flows jumped by 77 percent in 2021 to an estimated $1.6 trillion, up from the $929 billion recorded in 2020, exceeding their pre-COVID-19 level, according to the United Nation Conference on Trade and Development’s (UNCTAD) Investment Trends Monitor report. FDI flows in developing economies inched up by 30 percent to reach nearly $870 billion, with a growth acceleration in east and south-east Asia (+20 percent), a recovery to near pre-pandemic levels in Latin America and the Caribbean, and an uptick in west Asia, the report’s data showed. “Of the total increase in global FDI flows in 2021 ($718 billion), more than $500 billion was recorded in developed economies. Developing economies, especially least developed countries (LDCs), saw more modest recovery growth”, the report estimated. For Africa, the report noted that FDI inflows to the continent rose more than double in 2021, with most recipients across the continent seeing a moderate rise in FDIs, inflated by a single intra-firm financial transaction in South Africa in the second half (2H) of 2021. Additionally, developed economies saw the biggest rise, with FDIs reaching an estimated $777 billion in 2021, which is threefold the exceptionally low level reached in 2020. Going forward, the report forecasts positive trends for global FDIs in 2022, yet it said that the 2021 rebound growth rate is unlikely to be repeated. “The underlying trend — net of conduit flows, one-off transactions, and intra-firm financial flows — will remain relatively muted, as in 2021. International project finance in infrastructure sectors will continue to provide growth momentum,” the report projects. (ahram)

Key Words: World, Economy, Trade, IMF

PANAFRICAN

UK-Africa investment summit closes with millions in ‘misguided’ investment - Boris Johnson kicked off the 2021 Africa Investment Conference on Thursday, promising that British business would help Africa to prosper from the green industrial revolution. The UK Prime Minister said humanity can aid its rescue from catastrophic climate change, if Africa partners with the UK in its ‘Clean Green Initiative,’ announced during last November’s COP26 Glasgow gathering. The UK has committed £11.6bn of its International Climate Finance fund, to support developing countries respond to climate change over the next five years. “We want to support African countries that are already suffering the effects of climate change, and one export guarantee from the British Government will allow 87 emergency bridges made in Gloucestershire to be used to strengthen flood defences in Ghana. Around 4,000 virtual participants at the one-day conference held to promote trade between the UK and Africa, witnessed the launch of a new online ‘Growth Gateway’, by Anne-Marie Trevelyan, the UK’s international trade secretary. The new digital tool links British and African businesses to “UK Government trade, finance and investment services and opportunities,” Trevelyan said. The Growth Gateway aims to streamline information on finance, trade and investment between businesses in UK and Africa with a 20-strong online team of trade and investment specialists. Projects for road construction, industrial equipment supplies, and a pledge to build hospitals in Ghana and the Ivory Coast, followed recent trade and economic partnerships signed with the UK. (african.business)

Key Words: Africa, Economy, Trade

NORTH AFRICA

Economy needs "deep reforms" says the IMF's envoy to Tunisia - The outgoing IMF country chief for Tunisia said that the economy of the north African state needs "deep reforms" such as drastically reducing its vast public wage bill. Approaching the end of his three year term, Jerome Vacher added that the pandemic had created the deepest recession since Tunisia's independence in 1956. "The country had pre-existing problems, in particular budget deficits and public debt, which have worsened in recent years. External deficits have also been persistent in previous years and, above all, growth has been weak and largely insufficient", said Vacher. Growth dropped by almost 9% of GDP in 2020, in 2021 it only recovered by 3%. Unemployment remains high at over 18%. The IMF envoy believes that the country's economy needs deep structural reforms. "It's an economy that needs very deep, structural reforms, especially to improve the business environment. But it also requires a correction of macroeconomic imbalance, an improvement of the budgetary situation and a deep reform of public enterprises", according to the IMF representative. (africanews)

Key Words: NA, Economy, Trade, IMF

EAST AFRICA

For the first time Ethiopia sold more than 11,200 bags of coffee online in one second during the Ethiopian Coffee Brands Launch on China’s Largest E-Commerce Platform, Alibaba - The online trading of Ethiopian coffee is realized as a result a joint effort with the United Nations Economic Commission for Africa (ECA) and the Ethiopian Government. “Success recorded in exporting Ethiopian coffee to China will provide a roadmap in leveraging export potential for other ten African countries, where ECA is working this year, to provide more export potential from Africa to China,” said UN Under-Secretary-General and Executive of the ECA, Secretary Vera Songwe. “This launch demonstrates the benefits that, not only Ethiopia, but Africa can reap in harnessing digitalization,” stated H.E Gebremeskel Chala, Minister of Trade and Regional Integration, Ethiopia. ECA has joined efforts with Alibaba Group, and the Government of Ethiopia to bring more quality African products to one of the largest markets in the world today — the Chinese online market. Through this partnership, the electronic World Trading Platform (eWTP) has successfully on-boarded three Ethiopian coffee brands, namely Wild, Arada, and Hedero. ECA, AntGroup from Alibaba Group, and the Ethiopian government exclusively featured freshly roasted authentic coffee produced by small and medium-sized Ethiopian businesses at a livestream event to promote the launch of new Ethiopian coffee products on Tmall Global. Using AntChain’s track and trace technology, all coffee on display was airlifted from Ethiopia; thus, guaranteeing a safe and transparent journey from departure to arrival. The primary objective of the initiative is to leverage the infrastructure provided by the electronic World Trade Platform (e-WTP) in creating an enabling environment to promote e-commerce and tourism for African entrepreneurs, whilst bringing quality African products into the Chinese market. (newbusinessethiopia)

Key Words: EA, Economy, Trade

CENTRAL AFRICA

Chad's Economy Shrunk 1.1% in 2021 on Reduced Oil Production, Prices - Chad's economy shrunk by 1.1% in 2021 largely due to global oil-price volatility and a significant deterioration in the output of the oil sector, an International Monetary Fund mission said late Wednesday. The economy was also impacted adversely by the Covid-19 pandemic, the IMF mission chief Edward Gemayel said. "The pandemic will likely leave long-lasting scars, and the Chadian economy is projected to remain weak over the near term, before gradually rebounding in 2024, to 3.6%, provided adequate reforms are implemented," Mr. Gemayel said. In 2021, average annual inflation was contained after soaring to 4.5% in 2020, he said. "Public spending pressures are rising due to security and social tensions," Mr. Gemayel said. "Maintaining fiscal discipline in the run-up to the parliamentary and presidential elections is critical for macroeconomic stability." Chad is one of Africa's largest oil producers and exporters. Its oil reserves are estimated at around 1.5 billion barrels as of 2020, according to a recent U.S. International Trade Administration report. (marketwatch)

Key Words: CA, Economy, Trade, IMF

WEST AFRICA

FG, Private Sector Partner To Develop Logistic Hub For AfCFTA Trade Integration - A Nigeria indigenous company, Insight Dynamics Resources (IDR) (in with American largest engineering company, AECOM) has proposed a partnership with the federal government to develop Integrated Multimodal Logistics System for African Continental Free Trade Area (AfCFTA) trade integration. The company is to partner with the Federal Ministry of Industry, Trade and Investment. IDR, in a release to LEADERSHIP said that “The proposed Multimodal Logistics hub System will comprise of five component modes that has to be interlinked and function in coordinated seamless integration to actualize the vision and goals of the project. “The proposed facilities are Gateway Multimodal ‘Smart’ Port-perhaps the first sixth Generation Port in the world with 5.6 km of runway for air cargo terminal within the complex and facility for automobile assemble plant of over one million vehicles per annual which would be built between Lagos and Ogun State. (leadership.ng)

Key Words: West Africa, Economy, Trade

SOUTHERN AFRICA

Port investments to contribute towards SA economy - Minister of Transport, Fikile Mbalula, has unveiled critical investments that will contribute towards advancing South Africa’s economic interests through Operation Phakisa. Amongst others, these investments include the construction of an onshore Liquid Natural Gas (LNG) regasification facility, liquid bulk operating license to develop and operate a liquid bulk terminal and access rights for the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). “These ground-breaking investments will also give impetus to growing the oceans economy and the implementation of the Comprehensive Maritime Transport Policy, which seeks to create a nurturing environment for entrepreneurs to develop and grow their businesses,” the Minister said. Addressing the media on Monday during his visit to the Port of Durban, he said the investments represent the sector’s contribution to the Economic Reconstruction and Recovery Plan. The investment is aimed at contributing towards sustainable job creation during the construction and operation phases of the project. (sanews)

Key Words: Southern Africa, Economy, Trade