INTERNATIONAL

Fostering participation in digital trade for ASEAN MSMES - This paper aims to provide policy-makers with a broad overview of some of the issues that digital trade raises for ASEAN countries and its MSMEs: The digital transformation presents new opportunities for ASEAN firms to participate and benefit from trade. Indeed, for ASEAN countries, a 10% increase in internet use is associated with a 3.4% increase in trade in goods and a 3.9% increase in trade in services. However, evidence suggests that ASEAN SMEs adopt relatively simple digital technologies such as webpages to varying degrees: in Cambodia 41% of firms in the 'Hospitality and Tourism' sector have a webpage. (OECD)

Key Words: Trade, Asia, Policy

Various sectors continue to boost the growth of global LNG market - The global Liquefied Natural Gas (LNG) market is anticipated to reach $19.73 billion by 2026 according to a new study published by Kenneth Research. Global demand for natural gas has risen significantly and has experienced a premium annual growth of 1.6% between 2015 to 2040. Consumption of natural gas growth is increased from over 3.5 tscm in 2014 to almost 5.2 tscm in 2040. The World Gas Model has scheduled production dependent on the lowest cost, accounting for the transportation to market through LNG or pipeline as well as the cost of production that are subject to contractual obligations. (ESI Africa)

Key Words: Global, Africa, Natural Gas

Booming U.S. oil production, demand jitters, cool prices through 2020 - Booming U.S. oil production and ongoing worries about a global slowdown in demand will keep markets awash in a glut of crude, likely keeping oil and gasoline prices down through 2020, the International Energy Agency predicted in its oil market report Friday. Already, production exceeded demand by 900,000 barrels per day through the first half of 2019, the IEA found. And although OPEC nations, along with Russia – another top oil exporter – are set next week to extend a supply cut aimed at helping stabilize prices, surging output and exports from the U.S. will likely more than make up the difference. Oil prices, already about $10-15 cheaper than this time last year, are expected to be about 8% lower in 2020 than in 2018. (US News)

Key Words: Global, Oil, Market

Enterprise in the space economy - Europe’s expanding business frontier - Business Planet explores the increasing number of opportunities for innovative small firms and startups working in Europe’s booming space economy. Once the preserve of national governments and space agencies, advances in technology, lower entry costs and a new entrepreneurial spirit mean that space is now increasingly a place for private enterprise. Whether its global communication or navigation, pricing insurance, or simply helping farmers to grow food better, space now offers an infinite number of opportunities for businesses that are able to develop innovative new technologies and services. (Euro News)

Key Words: Economy, Europe, Business

PAN AFRICAN

Africa50 outlines investment projects – Africa50, a special-purpose vehicle that finances infrastructure projects across Africa, on Wednesday, announced more than ten high-impactful projects it plans to invest in. This was during its fourth annual general shareholders meeting in Kigali. “Africa50 has a solid pipeline of 12 infrastructure projects ranging from roads, railways, power and power transmission lines, as well as ports and communication cable lines, among others,” said Adesina Akinwumi, the chairman of the organisation. These projects could help bridge the existing infrastructure financing gap, on the continent, which is estimated to be between $68 and $180 per year. As the continent embarks on the implementation of the African Continental Free Trade Area agreement, Adesina, who is also the President of the African Development Bank, insisted that such projects will help establish connectivity.  (The New Times)

Key Words: Africa, Investment, Infrastructure

Drivers of Cross-Border Banking in Sub-Saharan Africa – Using data collected from pan-African banks’ (PABs), balance sheets and other sources (Orbis, Fitch), this study identifies some key patterns of cross-border investment in bank subsidiaries by key banking groups in sub-Saharan Africa (SSA) and discusses some of the determinants of this investment. Using a gravity model relating the annual value of a banking group’s investment in the net equity of its subsidiaries to a set of explanatory variables, the analysis finds that cross-border banking is in part driven by a search for yield, diversification, and expansion for strategic reasons. (IMF)

Key Words: IMF, Africa, Banking

Harnessing technology for agricultural development in Africa: Lessons from Tanzania – The UN Sustainable Development Goals (SDGs) aim to “leave no one behind’’ and directed all countries to work together to end poverty and other deprivations. Achieving the SDGs requires collaborative strategies aimed at improving technologies of the Least Developing Countries (LDCs) in the productive sectors such as agriculture. Understandably, in most developing countries, the agriculture sector is characterised by informality, small scale, lack of requisite skills and production capabilities, and inefficient traditional technologies. Moreover, the sector is confronted by fragmentation and limited innovative capacity. (ORF)

Key Words: Technology, Agriculture, Africa

Over $40 billion in trade deals, participants from 55 countries expected at IATF2020, says Afreximbank President - The organisers of the Second Intra-African Trade Fair (IATF2020) expect it to surpass the achievements of the inaugural trade fair held in Cairo in 2018 by attracting 10,000 participants and generating intra-African trade and investment deals worth more than $40 billion, Prof. Benedict Oramah, President of the African Export-Import Bank (Afreximbank), has said. Prof. Oramah was speaking on Saturday at the formal launch of IATF2020 during the African Continental Free Trade Area (AfCFTA) Business Forum 2019 held on the sidelines of the 12th Extraordinary Summit of African Union (AU) Heads of State in Niamey. He told guests that the trade fair, scheduled for Kigali from 1 to 7 September 2020, would attract more than 1,100 exhibitors from over 55 countries.  (Afreximbank)

Key Words: Afreximbank, IATF2020, Trade Fair

AfCFTA: Long route to continental integration as Nigeria comes on board - The AfCFTA Agreement came into force on May 30, 2019, thirty days after having received the twenty-second instrument of ratification on 29th April 2019 in conformity with legal provisions. It aims to bring all 55 members of the African Union (AU) together in a single market of 1.2 billion people by removing trade barriers such as tariffs across Africa. The deal is expected to boost regional trade and allow companies to expand and enter new markets. Regrettably, manufacturing industry currently accounts for only about 10 per cent of the African Union’s combined GDP of $3.4 trillion and the trade deal, is believed could make the sector more competitive and productive. The first step of the deal is to cut tariffs for goods from countries within the bloc but the timeframe to do this is yet to be announced. (Top Africa News)

Key Words: AfCFTA, AU, Tariffs

African Development Bank approves new financing program for energy providers, 4.5 mln people in sub-Saharan Africa to benefit from off-grid power by 2025 –  The Board of Directors of the African Development Bank Group has approved an innovative multinational financing program for Distributed Energy Service Companies (DESCOs), which would see 900,000 households in sub-Saharan Africa – about 4.5 million people - gain access to solar power by 2025. The DESCOs Financing Program promotes securitization financing techniques to address barriers to accessing finance for DESCOs, while supporting their growth and expansion into existing and new markets. The program will also facilitate local currency financing for DESCOs and provide local lenders with risk mitigation instruments to support them. Elaborating on the program, Wale Shonibare, the Bank’s Acting Vice-President for Power, Energy, Climate Change, and Green Growth said the Bank will provide critical technical guidance and credit enhancement to DESCOs and local financial intermediaries. (AfDB)

Key Words: AfDB, Finance, Africa

Pan African Resources exceeds full year output guidance - African-focused gold producer Pan African Resources said on Friday it had exceeded its full year production guidance of 170,000 ounces, resulting in output increasing by 7.5 percent to 172,442 ounces or 54.1 percent on continuing operations, compared with the previous period. The company however condemned the criminal activity currently taking place and perpetrated by what it called opportunistic criminals and a limited number of community members outside its operations at subsidiary Barberton Mines. (IOL)

Key Words: Africa, Resources, Gold

NORTH AFRICA

Gulf appetites are endangering Tunisia’s wildlife – Tunisia’s Houbara bustards and other protected species are threatened by illegal hunters. In January this year, Abdelmajid Dabbar, President of the NGO Tunisie Ecologie, alleged in a detailed Facebook post that Qatari nationals were illegally hunting protected species in the Tunisian desert us falcons and hunting rifles. Photos and videos posted by other activists showed a convoy of about 30 off-road vehicles, assisted by a helicopter, and the carcasses of Thomson’s gazelles, Saharan hares and Houbara bustards – a type of bird. When confronted by conservationists, the hunters said that they had been granted permission by local authorities. (Enact Observer)

Key Words: Tunisia, Wild Life, Trade

France’s Le Point Says Morocco Is an Emerging Power - French newspaper Le Point has hailed Morocco as a world power in the making, drawing attention to the list of social and economic changes the North African country has witnessed of late. The paper’s almost eulogistic coverage commends  Morocco socio-economic transformations, detailed in a July 11 editorial headlined “Morocco, the New Power.” The article draws a fine portrait of an already established continental or regional giant consistently flexing its muscles to make a full-throated entrance into the court of a much more respected kind of giants: world powers. (Morocco World News)

Key Words: Morocco, Economy, France

EAST AFRICA

Ethiopia gives BRI a chance - Since joining China’s modern age re-structuring of the Silk Roads; The Belt and Road Initiative (BRI), Ethiopia has reaped benefits through developments orchestrated by Chinese companies. The BRI serves as China’s ongoing attempt to create global trade routes by land and sea, which all member states can utilise to increase economic development with other countries. Ethiopia’s’ continued involvement working closely with the Chinese government as diplomatic relations will be reaching 50 years in 2020. In the past, Ethiopia failed to utilise natural resources such as bamboo. China has offered a lending hand to Ethiopia through two Chinese companies. (IOL)

Key Words: Ethiopia, BRI, Trade

EAC at 20: So much done over time, so much to do - On 30 November, 2019 the EAC will celebrate 20 years of existence. Lest we forget, it was on 30 November, 1999 at Sheikh Amri Abeid Memorial Stadium in Arusha, that the heads of state of the Republic of Uganda, the Republic of Kenya and the United Republic of Tanzania, put pen to paper to sign the treaty reviving the EAC. Again, to jog our memory, the EAC had earlier been established in 1967 and it collapsed 10 years later in 1977. The current EAC 20-year journey has been remarkable, the inevitable challenges notwithstanding. (The Citizen)

Key Words: EAC, Treaty, Regional Integration

Uganda, Tanzania to meet over trade barriers – Uganda and Tanzania are slated to meet in September to discuss trade barriers affecting the flow of goods and investment between the two countries.Ugandan traders have on several occasions complained that their products are blocked at Mutukula one stop border point, despite the free trade agreement between East African Community (EAC) member states. The High Commissioner of Tanzania to Uganda, Mr Aziz Mlima, yesterday said the two governments met last year and resolved some trade barriers that were hindering free and smooth trade. (allAfrica)

Key Words: Uganda, Tanzania, Trade

Juba and Khartoum discuss oil deals – Deputy Chairman of the Transitional Military Council (TMC), Lt. Gen. Mohamed Hamdan Daglo, received at the Republican Palace the Minister of Petroleum of South Sudan State, Awu Daniel Chuwang. In a press statement, Chuwang said that the meeting came in the context of the bilateral relations between Sudan and South Sudan and the efforts to overcome the challenges facing the cooperation in the oil field, top of them easing arrival of the oil production materials to South Sudan State and the exportation of oil via Bashayer Port. (allAfrica)

Key Words: Juba, Khartoum, Oil

Uganda, Rwanda agree to iron out differences - Ugandan President Yoweri Museveni and his Rwandan counterpart Paul Kagame have agreed to continue dialogue in a bid to find a lasting solution to differences that exist between their countries. A State House statement issued here on Saturday said the two leaders met on Friday during a regional quadripartite summit held in Luanda, Angola. The summit, which discussed regional security among others, was also attended by Angolan President Joao Manuel Lourenco and Democratic Republic of Congo (DRC) leader Felix Tshisekedi. “As far as relations between Rwanda and Uganda are concerned, the summit welcomed the willingness of the two parties to continue dialogue with a view to finding a solution to the existing problem,” a communique issued at the end of the summit said, according to the State House statement. (Top Africa News)

 Key Words: Trade, Uganda, Rwanda

DR Congo: Banks commit to combat money laundering to maintain access to international clearing services - following meetings with the US Departments of Commerce and Treasury, and Citigroup officials, the DRC Banks’ association (Association des Banques en République Démocratique du Congo ABC) announced it is developing strategies to combat money laundering. The move is to keep accessing international clearing services. Under the measures, ABC plans to strengthen the compliance monitoring services of the country's financial institutions and establish more effective mechanisms to uphold sanctions. It also plans to impose strict controls of the bank accounts of politically exposed persons and raise national authorities' awareness of the need to strengthen the local legal framework against money laundering and terrorist financing. (Ecofin)

Key Words: Dr. Congo, Trade, Illegal

WEST AFRICA

Senate wants Nigeria’s business community to explore benefits of AfCTA - The Senate on Thursday asked the federal government to enlighten the Nigerian business community on how to leverage on the immense benefits of the African Continental Free Trade Area (AfCTA) agreement. The AfCTA was signed by President Muhammadu Buhari on Sunday. The agreement was signed several months after Mr Buhari initially refused to sign. About 52 other African countries had already signed by then. Mr Buhari had argued then that more consultations were necessary before Nigeria could append her signature to it, an act which was criticised by many diplomats and other Nigerians including ex-President Olusegun Obasanjo. (Premium Times)

Key Words: Nigeria, Business, AfCFTA

AfCFTA to create investment hub – Mr. Ken Ofori-Atta, Minister of Finance, has said that Ghana’s hosting of the Secretariat of the African Continental Free Trade Agreement (AfCFTA) will create opportunities for the country to become the main trade facilitation and investment hub in Africa. According to him, the Continental Free Trade Area – which will be largest trading block in the world with a GDP at about US$3trillion and a population of 1.3 billion – will begin the economic emancipation of the continent’s people. Mr. Ofori-Atta made the point in contributing to a statement by Mr. Alan Kyerematen, Minister for Trade and Industry, on the Floor of Parliament in Accra, on the AfCFTA and Ghana’s selection to host the Secretariat. (Ghana Web)

Key Words: AfCFTA, Investment, Ghana

EIB grants $25 mln to support optical fiber connection in Cape Verde – Cape Verde’s incumbent operator, Cabo Verde Telecom, gets a $25 million loan from the European International Bank (EIB) to further the high-speed connection in the country through the submarine optical fiber system called “EllaLink”. The EIB fund will back the $60 million investment made by Cabo Verde Telecom to speed up 4G roll out in the country, broaden fiber-to-the-home Internet coverage, and power the telecoms network with solar energy. The new link will strengthen the resilience of Cabo Verde's international connections, which currently rely on an aging single submarine cable with limited capacity. (Ecofin)

Key Words: EIB, Grant, Fiber

Investments in OGFTZ exceeds $2bn, says management - Investments in the Ogun Guangdong Free Trade Zone, in Igesa Ota Local Government Area of Ogun State, is said to have exceeded over $2 billion, Daniel Che, the Deputy General Manager declared, last Tuesday. Che made the revelation in Abuja, while talking with journalists on the activities of the Zone since it was established eight years ago. He insisted that OGFTZ has been a success story, judging by the number of companies that have so far invested with several others indicating interest in setting up shops in the area. “Currently, we have over 30 factories in the OGFTZ with a combined investment of over $2 billion, and more have indicated interest in setting up in the zone. As you are aware, what we have right now is just the first phase, and in actual fact we are moving to expand the operations of the zone so that more factories can come in. (The Guardian)

Key Words: Investment, OGFTZ, Free Trade

ECOWAS and China sign Implementation Agreement for the Commission’s New Headquarter Building – The Commission of the Economic Community of West African States (ECOWAS) and the People’s Republic of China have on the 10th of July 2019 in Abuja, Nigeria signed an implementation agreement for the realisation of the Commission’s new headquarters building. Signing the agreement at a brief ceremony on behalf of the ECOWAS Commission, the President of the Commission Jean-Claude Kassi Brou stated that the implementation agreement clarifies, among others, “all that needs to be done” through the various phases to the commissioning of the edifice. He maintained that with commitment to the project work plan, the new building will come to fruition as planned in aid of greater efficiency and service delivery to the regional community. (ECOWAS)

Key Words: ECOWAS, China, Agreement

How can Côte d’Ivoire escape the curse of cocoa? - Chocolate is becoming more and more of a luxury item for most consumers. The price of a box of 24 assorted chocolates can exceed $20, and the most prestigious confectioners may charge as much as $35. But on the other side of the equation, the situation among producers in Côte d'Ivoire is vastly different. It is estimated that 80% of cocoa producers, about 4 million individuals and their families, live on less than $3 a day, scarcely enough to enable them to buy two pieces from that 24-piece box. This is why some people speak of the curse of “brown gold” in this country, which is the world’s largest cocoa producer. (World Bank)

Key Words: Economy, Cocoa, Cote D’Ivoire

WCO supports Benin with the implementation of an AEO programme – The WCO conducted a National Workshop on AEO programme for Benin in Cotonou from 24 to 26 June 2019. The Workshop was aimed at enhancing Benin Customs’ technical capability to enhance and effectively implement an AEO programme. At the opening of the Workshop, Mr. Charles Inoussa Sacca Boco, Director General of Benin Customs, stressed the importance of the AEO concept for the modernisation of Benin Customs, presented the committee in charge of AEO implementation, and assured high-level management support for the project. Benin is in the process of planning the implementation of an AEO programme. To this end, an AEO Committee has been established for developing a national AEO programme in line with the SAFE Framework of Standards and related implementation tools and guidelines. (WCO)

Key Words: WCO, Benin, AEO

Mali Shi secures a $2.8 million IFC loan under the Global Agricultural Food and Security Program – The International Finance Corporation (IFC) which manages the Global Agricultural Food and Security Program (GAFSP), an initiative targeting high-impact agribusiness projects in high-risk countries, has approved a €2.5 million ($2.8 million) loan to Mali Shi, a Mali-based agribusiness operating in the shea sector. With this support, the company plans to set up a modern shea processing plant in the country, the world's second largest supplier of shea kernels.  (Ecofin)

Key Words: Mali, Agriculture, Food

Ghana seeks Burkina Faso support to fight PFJs fertilizer smuggling - The Upper West Regional Minister Dr Hafiz Bin Salih has visited Leo in the Province of Sissili in Burkina Faso to seek collaboration to combat fertilizer smuggling from Ghana to Burkina Faso.
He requested that the Planting for Food and Jobs (PFJs) fertilizer that would be seized by Burkinabe authorities should be shared among their local farmers free of charge.
The call for collaboration to deal with fertiliser smuggling in neighbouring countries was on the back of recent reports of wanton smuggling, misappropriation and infractions regarding distribution of fertiliser to Ghanaian farmers. (Ghana Web)

Key Words: Ghana, Burking Faso, Trade

CENTRAL AFRICA

Central African Economic and Monetary Community (CEMAC): Common Policies in Support of Member Countries Reform Programs – The regional strategy has helped stabilize the regional economic position thanks to large fiscal consolidation efforts, a tighter monetary policy, and external financial assistance. The external position improved, and external reserves picked up. However, the region remains dependent on oil revenues, with little progress in economic diversification, under-performing budget non-oil revenues and weaknesses in the financial sector. The policy assurances included in BEAC’s letter of December 2018 were implemented as planned and the CEMAC authorities reiterated their full commitment to the strategy and their readiness to implement additional corrective measures if needed. Progress was made towards new IMF-supported program in Congo and Equatorial Guinea. (IMF)

Key Words: IMF, CEMAC, Policy

Niger and Burkina Faso reach new deal on border management – Niger and Burkina Faso signed on July 10 a cooperation agreement to manage their common borders, official sources revealed. The two countries seek to set a framework that promotes cross-border cooperation between local authorities. The framework covers security, civil protection, education, health, the environment, natural resource management and agriculture. It is expected to ease development projects being implemented in the border regions of the two countries most affected by terrorism and inter-community violence in West Africa. (Ecofin)

Key words: Niger, Border, Burkina Faso

SOUTHERN AFRICA

Food insecurity continues to rise in Southern Africa - new SADC Report - According to the Southern African Development Community (SADC) 2019 Synthesis Report on the State of Food and Nutrition Security and Vulnerability in Southern Africa, 41.2 million people in 13 countries are estimated to be food insecure in the 2019/20 year. Comparing the 11 Member States that provided data last year, food insecurity has increased by 28 percent and is 7.4 percent higher than it was during the severe El Niño- induced drought of 2016/17. The Report was compiled by the SADC Regional Vulnerability Assessment and Analysis Programme from the 2019 assessments and analysis conducted by National Vulnerability Assessment Committees of Member States. (SADC)

Key Words: SADC, Food, Agriculture

Accelerating Economic Diplomacy towards a better South Africa, Africa and world: DIRCO Budget Vote Speech 2019 - Last year DIRCO was allocated R6 552.7 billion to be utilised to advance our agenda for global co-operation. The development of our region and our continent. This year we are allocated R6 508.5 billion and as with all departments we are confronted by the limitations of budget reductions, currency fluctuations and the inadequacy of our compensation budget. Given these challenges we have to use our resources wisely and strategically. The reduced budget severely impacts on our ability to support government in reaching our national priorities. Fortunately, we have an excellent team in DIRCO and we shall do our best.  (tralac)

Key Words: SA, DIRCO, Economy

Zambia enhances its AEO Programme - Under the auspices of the WCO-UNCTAD HMRC Programme financed by UK Government, and as part of the Mercator Programme, the World Customs Organization (WCO) conducted a diagnostic review of Zambia’s Customs Accreditation Client Programme (CACP) with a view to supporting the enhancement and effective implementation of a fully-fledged SAFE AEO Programme in Zambia. The mission was conducted from 3 to 6 July 2019 in Lusaka, Zambia and included an in-field observation visit to Chirundu, border point at the Zambia-Zimbabwe border. (WCO)

Key Words: Zambia, Trade, CACP

Government targets export led industrialization - The continued use of antiquated machinery in industries coupled with shortages of both foreign currency and electricity need to be immediately addressed for the country to achieve export-led industrialisation as highlighted in the recently launched industrial development policy, ZimTrade chief executive officer Allan Majuru has said. Zimbabwe recently launched a Zimbabwe National Industrial Development Policy (2019-2023), which among other things looks to the export sector as a key growth area towards economic revival. The target is to have an export-led industrialisation. (Chronicle)

Key Words: Industry, Export, trade