ATPC Weekly Digest 31 December 2018

 

INTERNATIONAL

Africa gets $200M trade guarantees from Europe - Africa has received new trade alliance guarantees from the European Union of more than $200M.The pledge was made at the recent High-Level Forum Africa-Europe in Vienna, Austria. The meeting was the first of its kind under the EU External Investment Plan. (27 December, The East African)

Keywords: Africa, Europe,Trade guarantees

Chinese-built industrial parks, free trade zones provide new industrialisation momentum across Africa - As African countries pursue industrialisation, the Chinese-built industrial parks and free trade zones have been gaining momentum in the socio-economic drive of the continent, some significantly accelerating the process of industrialisation and job creation. (27 December, Xinhua)

Keywords: China, Free trade zones, Industrialisation

Liam Fox says '50-50' chance Brexit may be stopped - Trade minister Liam Fox said there is a “50-50” chance that Brexit may be stopped if parliament rejects the government’s divorce deal with the European Union next month.“If we were not to vote for that, I’m not sure I would give it (Brexit) much more than 50-50,” Fox, a leading supporter of leaving the EU, told the Sunday Times newspaper. (30 December, Reuters)

Keywords: UK, Brexit, European Union  

 

PAN AFRICAN

A Competitive Africa: Economic integration could make the continent a global player - In addition to increasing market efficiency and reducing the cost of doing business by offering opportunities for economies of scale, the AfCFTA could ease trade and investment flows and shift the composition and direction of foreign direct investment flows into Africa. (IMF)

Keywords: Competitive Africa, AfCFTA, Economic integration

Afreximbank, African Guarantee Fund Sign $30 million Re-Guarantee Facility to Support African SMEs - The African Export-Import Bank (Afreximbank) has signed an agreement with the African Guarantee Fund (AGF) for a $30M re-guarantee facility to support African small and medium-sized enterprises (SMEs) in the trade value chain to access funds for their activities. (24 December, Afreximbank)

Keywords: Afreximbank, Guarantee Fund, Trade value chain

Africa moved the world closer to its largest free trade area since WTO in 2018 - If seven more nations out of the required 22 ratify the African Continental Free Trade Area (AfCFTA), it will make true the dream of not only launching a single market for goods and services in Africa but also instituting the largest free trade agreement since the creation of the World Trade Organisation 70 years ago. (26 December, Quartz)

Keywords: Africa, AfCFTA, Ratification

Africa is about to become the world’s largest free trade zone - South Africa’s and Togo’s parliaments this month ratified the agreement establishing the African Continental Free Trade Area (AfCFTA). The total number of countries committing to the deal has thus grown to 49. Once the agreement comes into effect, it will create a tariff-free continent, covering a single market of 1.2 billion people in 55 nations with a combined gross domestic product of about $3 trillion. (26 December, RT)

Keywords: Africa, AfCFTA, Ratification

African Development Bank to raise over US$7BN from capital markets for investment in African economies in 2019 - The African Development Bank’s Board has approved the institution’s 2019 borrowing program to the tune of US$7.24BN from capital markets. The Bank accesses a wide array of capital markets with the majority of its borrowing in US dollars and Euros as well as issuances in other public markets such as Australian dollars and Pound sterling. (27 December, AfDB)

Keywords: AfDB, Capital markets, Investments

 

EAST AFRICA

Kenya and Rwanda ready for EU trade partnership deal - Kenyan diplomats now say they have agreed with Rwanda to move on with implementing the economic partnership agreements (EPAs) with the European Union (EU) without being entangled in the EAC fold. The matter came up early this week when Presidents Uhuru Kenyatta and Paul Kagame met with senior EU officials in the Austrian capital of Vienna on the sidelines of the Africa-Europe High Level Forum.  (24 December, Daily Nation)

Keywords: Rwanda, Kenya, EU, EPA deal

Afreximbank, Securiport Sign $15M Financing Agreement for Juba Airport Upgrade - The African Export-Import Bank (Afreximbank) has signed a financing agreement with Securiport SUARL, Senegal, to provide Securiport with a $15M term loan to finance the design, construction and commissioning of a civil aviation and immigration security system for the Juba International Airport in South Sudan. (24 December, Afreximbank)

Keywords: Afreximbank, Juba airport, Upgrade

Ethiopian Air and improving visa policies are pushing Africa towards its integrated vision - The African Union’s (AU) long held ambitions for a fully integrated continent is closer to becoming reality this year thanks the vision of one particularly ambitious airline and more governments tweaking their visa policies for fellow Africans. (26 December, Quartz)

Keywords: Ethiopian Air, Visa policies, African integration

Foreign debt, high oil prices hit East Africa markets - Global research firm Focus Economics has warned that emerging and frontier markets are at the risk of heightened volatility in their financial and equity markets and a sizeable currency depreciation in 2019, largely due to higher yields in the United States, increase in oil prices and increased exposure to foreign debt. (30 December, The East African)

Keywords: East Africa markets, High oil prices, Foreign debts

East Africa exports to the US hit $1BN in the year to September 2018 - Exports from East African countries to the US reached about $1BN between October 2017 and September 2018, a 17 per cent increase from the same period the previous year. The United States Agency for International Development’s East Africa Trade and Investment Hub said apparel dominated the region’s sales at 84.4 per cent of exports. (31 December, The East African)

Keywords: East African, US, Exports

 

NORTH AFRICA

Egypt’s 2018 agricultural exports reach 4.9M tons: report - Egypt’s Ministry of Agriculture and Land Reclamation issued a report on Egyptian agricultural exports during the period from January 1 to December 26, stating that the total agricultural exports amounted to 4.962M tons, compared to 4.74M tons recorded for the same period last year, rising by 222,000 tons. (29 December, Egypt Independent)

Keywords: Egypt, Agricultural exports, Increase

Egypt, Saudi Arabia discuss establishing joint industrial zone -  Egypt and Saudi Arabia have discussed the establishment of a joint industrial zone in Egypt via the industrial-developer system, head of the Ministry of Trade and Industry's Trade Agreements Sector Amany al-Wassal said in a statement on Saturday. (30 December, Egypt Today)

Keywords: Egypt, Saudi Arabia, Joint industrial zone

LE1.2bn loan for constructing electric train project in Cairo signed - Minister of transportation Hesham Arafat announced on Sunday that the ministry has signed an LE 1.2 billion loan agreement with the Export-Import bank of China (EXIM) to fund an electric train project linking al-Salam, the administrative capital and 10th of Ramadan city. (30 December, Egypt Independent)

Keywords:Egypt, Saudi Arabia, Joint industrial zone

 

SOUTHERN AFRICA

Kazungula Bridge to link, open up markets in eight African countries - In just 24 months, travelling between the water-rich but land-locked Zambia and Botswana will get easier, smoother and faster, when the new road and rail bridge, currently under construction across the waters of the Zambezi, is commissioned for public use. (27 December, AfDB)

Keywords: Zambia, Botswana, Road and rail bridge

Zambia, India trade exceeds 2018 target - Trade between Zambia and India has exceeded the targeted $1BN in the year 2018. According to a statement released to ZANIS by First Secretary for Press and Tourism at the Zambian High Commission in India, Bangwe Naviley, trade between the two countries has improved from $650M in the year 2016 to $980M in 2017 and it has now exceeded the $1BN target for the year 2018. (30 December, Lusaka Times)

Keywords: Zambia, India, Trade exchange

 

WEST AFRICA

ECOWAS leaders take measures to strengthen political and economic governance in the region - Heads of State and Government of the Economic Community of West African States (ECOWAS) have taken measures to strengthen good governance and economic integration in the region. (25 December, ECOWAS)

Keywords: ECOWAS, Economic governance, Integration

Why Nigeria may sign free trade deal - The report of the Presidential Steering Committee on African Continental Free Trade Area (AfCFTA) Impact and Readiness Assessment will be submitted to President Muhammadu Buhari next month. The report, which comes on the heels of pressure by local and international development experts on Nigeria to endorse the free trade deal, is seen as an indication that the proposed deal may eventually get the Federal Government’s nod. (27 December, The Nation)

Keywords: Nigeria, AfCFTA ratification, Steering Committee