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issue 557 | 04 Aug 2024
Africa
African trade ministers call for renewal of AGOA by end of 2024
African trade ministers have urged the United States (US) Government to do away with the annual reviews of the African Growth and Opportunity Act (AGOA) and expressed concerns over the unilateral removal of eligible members from the trade agreement by the US. The ministers also expressed the importance of an expeditious renewal of AGOA by the end of 2024, with non-controversial enhancements and amendments for a minimum of 16 years to provide the required predictability and certainty to the trade and investments relationships between the two sides and to address graduation side by side with the extension of AGOA to preserve existing regional value chains. This was recently expressed in a read-out statement of African ministers under the African Union at the 21st AGOA Forum in Washington, D.C., where they are seeking an early renewal of the trade deal. AGOA gives eligible sub-Saharan African countries duty-free access to the US market for most products without having to reciprocate. It allows more than 30 African countries to export 1 835 types of goods to the US consumer market, and in turn affords the US access to critical minerals, product value chains, and investment opportunities in Africa.
Source: Independent Online (IOL)
Africa
De-risking African exploration through seismic
Seismic companies are flocking to Africa, which features strong market demand for geophysical research and development activities. On one hand, the continent is home to vast underexplored oil and gas territory, from large swaths in the West African deepwater to frontier basins onshore Kenya and Uganda. On the other hand, African upstream markets are often associated with a high degree of risk and lack of technical data and insights. As a result, expanded geophysical data investments – ranging from basic aerial surveys and basin analysis to more advanced 3D and 4D subsurface imaging – represent the key to de-risking and unlocking a new chapter in African exploration. The role of seismic acquisition, processing and imaging technologies in the sector will be a key focus of the Invest in African Energy 2025 Forum taking place in Paris next May, which serves as the premier African energy project showcase outside of the continent. Uniting seismic, geoscience and technology providers with Africa’s leading operators, energy ministries and regulators, the forum will explore the latest proprietary technologies shaping the sector and identify areas for further investment and partnership.
Source: Energy Capital & Power
Ethiopia
AfDB Group supports development of National Circular Economy Roadmap
Ethiopia has commenced the process of developing a National Circular Economy Roadmap (NCER), with the support of the African Development Bank (AfDB). The process officially started on 19 July at an event in Addis Ababa, attended by Ethiopian Government officials and representatives of the AfDB. The development of the roadmap is being funded by the AfDB’s Africa Circular Economy Facility and implemented in collaboration with the African Circular Economy Alliance. Ethiopia, with an estimated population of 129 million, faces significant socio-economic and environmental challenges, including high unemployment, rapid urbanisation, and inefficient waste management. The NCER being developed will seek to address these challenges by identifying key actions to enable the country to unleash the potential of a circular economy. The roadmap will create an enabling environment for the efficient use of resources, while also strengthening policy, legal and institutional frameworks and build capacity in the public and private sectors.
Source: AfDB
Ethiopia
IMF Executive Board approves four-year USD3.4-billion ECF arrangement for Ethiopia
The Executive Board of the International Monetary Fund (IMF) approved a four-year arrangement under the Extended Credit Facility (ECF) for Ethiopia in an amount equivalent to SDR2.556-billion (850% of quota or about USD3.4-billion) to support the authorities’ implementation of their Homegrown Economic Reform Agenda aimed at addressing macroeconomic imbalances and laying the foundations for private-sector led growth. The executive board’s decision will enable an immediate disbursem*nt of SDR766.75-million (equivalent to about USD1-billion), which will help Ethiopia meet its balance of payments needs and provide support to the budget. The authorities’ economic programme, supported by the four-year ECF arrangement, envisages a comprehensive policy package to stimulate private sector activity and increase economic openness to promote higher and more inclusive growth. Strengthening social safety nets to mitigate the impact of reforms on vulnerable households is a critical component of the authorities’ reform programme.
Source: IMF
Ethiopia
World Bank backs Ethiopia's reforms to promote sustainable and inclusive growth, enhance resilience, and take climate action
On 30 July 2024, the World Bank’s Board of Executive Directors approved the Ethiopia First Sustainable and Inclusive Growth Development Policy Operation. This policy operation supports home-grown reforms that will ultimately help the country transition to a more inclusive economy that allows the private sector to contribute more strongly to growth. While strengthening the financial sector, expanding trade options, and improving fiscal transparency, this engagement will also boost protections for poor and vulnerable households during periods of economic change. It consists of a USD1-billion grant and USD500-million concessional credit from the International Development Association. Reforms supported by the operation help increase the private sector orientation of Ethiopia's economy by addressing the root causes of macroeconomic imbalances and expanding trading opportunities. The operation also supports a more sustainable and inclusive growth model through reforms to improve financial stability and financial sector competition, increase fiscal transparency, improve public spending effectiveness and the performance of state-owned enterprises, as well as expand social safety nets.
Source: World Bank
Ghana
Supreme Court of Ghana addresses termination of employment without cause
Employment relationships do not always end through retirement. In many instances, the termination of the employment relationship is at the instance of one of the parties. Mostly when it is the employee who initiates the termination, there are no post-termination issues. However, employers often face challenges when they are the ones to terminate their employment, especially when the termination was without cause or reason. National Labour Commission (NLC) v Barclays Bank (NATIONAL LABOUR COMMISSION vs. BARCLAYS BANK GHANA LTD. [2023] DLSC16995 (dennislawgh.com)) is a recent decision of the Supreme Court of Ghana that addresses the issue of termination without cause and the position of the law within Ghana.
Source: ENS
Kenya
HR policy manuals in Kenya: Common errors and pitfalls
Many organisations today, regardless of their core business area, rightfully regard their human capital as their most valued resource. Successfully running a business entity requires the most talented hands on deck and it goes without saying that the human resource (HR) department and how it is run has always been and will remain one of the most critical functions within any organisation. In designing the HR function, a lot of emphasis is often placed on the recruitment and retention of the best talent, with the relationship between the organisation and its people governed by carefully considered employment contracts. We however often find that beyond signing employment contracts, not enough emphasis is placed on preparing the various policies required to regulate the relationship between the organisation and its people. The complexities of HR management require a more robust set of rules and guidelines than may possibly be outlined in any employment contract, hence the need for organisational policies. Not all policies are created equal as there are those which are mandatorily required by law and those which are not mandatory. Despite not being legally required in Kenya, having non-mandatory policies is widely considered a matter of best practice and given the nature of Kenya’s fragmented employment and labour law regulatory framework, it would be imprudent for any organisation to overlook these.
Source: ENS
Kenya
Kenya seeks to review foreign policy to capture global trends
Kenya has recently called for a review of the country's foreign policy to remain relevant and effective in promoting national interests and values. Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi said that global trends are now influencing and redefining Kenya's foreign policy, and thus the reason the 2024 Foreign Policy document must take these trends into account. "It is imperative that we continuously evaluate and adapt our foreign policy to ensure that it remains relevant and effective in promoting our national interests and values," Mudavadi said during the opening of a colloquium on review of Kenya's foreign policy. Mudavadi said the policy forms part of major steps being taken by the government to develop an all-inclusive foreign policy, in terms of scope and stakeholder engagement, to advance the national interests of Kenya. He said the deployment of soft power, including cultural diplomacy, educational exchanges, and international media is not only shaping public opinion but also building and maintaining global influence. "The 2024 Foreign Policy document must be realigned to take into account these emerging trends and focus on how it can promote and safeguard our national interests," Mudavadi said according to a statement issued after the meeting.
Source: Xinhua
Lesotho
Afreximbank and Lesotho National Development Corporation host the first Joint Project Preparation Facility workshop
African Export-Import Bank (Afreximbank) and the Lesotho National Development Corporation co-hosted a Joint Project Preparation Facility workshop in Maseru, Lesotho, to help address investment gaps in project preparation and to highlight the critical role of project preparation. Organised under the theme Leveraging Project Preparation to Boost Trade and Investment in Lesotho, the workshop that was held on 21 June 2024 attracted participation from Lesotho’s key government ministries, departments and agencies, captains of industry, policy makers, regulators and representatives of commercial banks. The workshop is part of Afreximbank’s continued push for the development and implementation of high-quality projects across Africa. It highlighted some of the challenges faced by project developers and sponsors in preparing projects and how these can be addressed by accessing financing from project preparation facilities. Notably, the workshop examined the critical role project preparation facilities can play in unlocking investment inflows into Lesotho and closing out the prevalent infrastructure and investment gaps.
Source: Afreximbank
Madagascar
AfDB Group supports public procurement reform
The Malagasy Government has launched a comprehensive reform of its public procurement system, backed by the African Development Bank (AfDB) and the World Bank. The reform, designed to enhance the effectiveness, efficiency, integrity and transparency of the country’s procurement system, began with a workshop in Antananarivo on 9 July. A key objective is to obtain certification from the Methodology for Assessing Procurement Systems, an international standard for public procurement effectiveness. The workshop, co-chaired by Malagasy Minister of the Economy and Finance, Rindra Hasimbelo Rabarinirinarison, and AfDB Country Manager in Madagascar, Adam Amoumoun, was attended by technical and financial partners, private sector and civil society representatives, among other officials. Minister Rabarinirinarison expressed optimism about the assessment’s potential recommendations. He called for full stakeholder participation in the ensuing reforms. Amoumoun emphasised the AfDB’s commitment to supporting Madagascar’s socio-economic development, noting that the proposed assessment will establish a “more modern, efficient, simpler, sustainable and inclusive” public procurement system.
Source: AfDB
Mauritania
Mauritania Economic Update 2024: How to Maximize Returns on Human Capital in Mauritania for Greater Wealth and Shared Prosperity
Despite a slowdown in economic growth in 2023, lower inflation and improved fiscal and external balances helped strengthen macroeconomic stability. Although growth has moderated, it remains above the global average and that of sub-Saharan Africa. This performance is the result of cyclical factors, such as monetary policy tightening and the fragile dynamics of some key sectors such as rainfed agriculture and extractive industries. However, structural factors, including limited optimisation of human capital, continue to constrain long-term growth potential. Inflation declined faster than expected, from 9.6% in 2022 to 5% in 2023, thanks to lower food and oil prices, as well as tight monetary policy. In addition, the current account deficit narrowed, reflecting a positive evolution of import prices on the international markets and a decline in capital goods imports. Nevertheless, Mauritania continues to face structural challenges that affect its long-term growth, such as weak human capital development. In particular, the report highlights a decline in per capita human capital wealth over the past two decades, despite an increase in the overall stock.
Source: World Bank
Namibia
The future of tourism in Namibia: Pioneering sustainable investment
'What does the future of sustainable tourism investment in Namibia look like?' This was one of the core questions that ignited critical conversations under the auspices of ENS Namibia in collaboration with a tourism industry expert from Venture Media, at a recent gathering of industry experts and stakeholders in Windhoek. The panel discussion, titled Unlocking Opportunities: Investing in Namibia’s Hospitality and Eco-Tourism Industry sparked significant dialogue about the future of tourism in Namibia, shedding light on pressing issues facing the sector while also laying some foundational groundwork for what is needed to chart a path toward a more sustainable and prosperous future. The panel discussion was moderated by Elzanne McCulloch (Managing Director, Venture Media) and the panelists included Koos Pretorius, Andreas Potgieter, Vanessa Boesak, Karin Malherbe and Stefanie Busch. Hosted at Droombos just outside Windhoek, the event brought together a diverse group of attendees, including investors, industry professionals, conservationists, and legal experts, each contributing nuanced insights into the complexities and immense potential of Namibia’s tourism industry.
Source: ENS
Nigeria
AfDB Group approves USD500-million loan to boost electricity access in Nigeria
The Board of Directors of the African Development Bank (AfDB) Group has approved a loan of USD500-million to Nigeria, to finance the first phase of the Economic Governance and Energy Transition Support Program, a new programme aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy. The loan will help close the financing gap of the Federal Budget in the 2024/25 fiscal year, specifically supporting the implementation of the country’s new Electricity Act and the Nigeria Energy Transition Plan. The Nigerian Government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralising the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector. The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90% of which will be renewable. It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas, biogas, biofuels like ethanol, and electric cookstoves.
Source: AfDB
Rwanda
Rwanda further eases entry for visitors
The visa restrictions imposed by African countries during the COVID-19 pandemic have been fully reversed, with 2023 marking the highest average Africa Visa Openness Index score to date. The latest index shows that 15 countries improved their score, up from 10 that had improved between 2021 and 2022. Visa openness is the ease with which visitors enter their country of destination. Four African countries have a visa-free entry policy, up from three in 2022. Benin tops the chart followed by The Gambia, Rwanda and Seychelles. Rwanda improved from a score of 0.868 in 2022 to 1.000 in 2023, rising two places to number three, as Benin knocked Seychelles out of the top. In the East African Community, other top scorers are Burundi, Tanzania and Somalia. Kenya, which won accolades when, on 12 December 2023, President William Ruto announced visa-free entry for everyone starting January, ranks below average, with a score of 0.396 on the index produced by the African Development Bank and the African Union Commission.
Source: The EastAfrican
Senegal / The Gambia
Senegal, The Gambia sign agreement to strengthen trade
Senegal and The Gambia have signed a trade and transit cooperation agreement to strengthen commercial exchanges and economic ties between the two countries. The agreement is poised to improve cooperation in transit, the free movement of people and goods, trade liberalisation, the establishment of a common special economic zone and the development of regional value chains. “I am pleased to note that the growing volume of trade between the two countries certainly reflects the vitality of commercial cooperation,” stated Senegal’s Minister of Industry and Commerce Serigne Guèye Diop, adding, “However, it is necessary to recognise that this commercial potential is still largely underexploited.” In 2023, trade between Senegal and The Gambia totalled approximately USD187.6-million and represented less than 5% of their total trade volumes. As such, the new agreement aims to increase trade volumes by promoting investment and market access for Senegalese and Gambian firms.
Source: Energy Capital & Power
Tanzania
Tanzania unveils updated trade policy to drive economy
The government has come up with a revised trade policy that seeks to accommodate new developments such as regional trade agreements, technological advancement and climate change, among other local and global issues. The National Trade Policy 2003 was revised last year. “The National Trade Policy 2023 will enhance the country’s participation and integration in trade with neighbouring countries, regionally and internationally,” Dr Selemani Jafo, Minister for Trade and Industry, told reporters. The 2023 edition aims to establish a robust framework and strategy to improve the business environment, promote economic growth, and enhance citizens’ welfare, he said, adding that some evolving trade opportunities were covered in the revised policy. In September 2021, Tanzania ratified the African Continental Free Trade Area Agreement, which was not highlighted in the 2003 policy. The government said it is also completing domestic legal procedures before endorsing the Common Market for Eastern and Southern Africa – East African Community – Southern African Development Community Tripartite Free Trade Area agreement, which commenced on 25 July 2024, with 14 out of the 29 member states.
Source: The Citizen
Uganda
URSB to deregister companies that have failed to file returns
The Uganda Registration Services Bureau (URSB) has said it will, effective 30 August, deregister companies that have ignored or refused to file annual returns. The move is part of a plan to clean up the URSB register, amid growing concern due to an increase in the number of companies that have either neglected or refused to file fundamentals that validate their legal existence. “Companies that fail to apply for restoration by 30 August 2024, will be deregistered and their names will be made available for use by other applicants,” URSB said in a notice. Last year, URSB started the clean-up process by striking 110 822 companies off its register for “failure to file annual returns for five years”. However, the affected companies were given a window through which they could be restored by fulfilling set requirements, which included payment of outstanding annual returns and a data update, among others. It was not immediately clear how many companies have since complied, but in the notice URSB indicated that the number of companies struck off the register had increased to 186 000 by June 2024.
Source: Monitor
Zambia
Civil Aviation Authority seeks collaboration with COMESA
The Zambian Civil Aviation Authority (CAA) is actively seeking collaboration with the Common Market for Eastern and Southern Africa (COMESA) to bolster the aviation sector through enhanced economic regulation and support to the Zambia Air Services Training Institute. This initiative underscores the CAA’s commitment to elevating aviation standards and ensuring sustainable growth within the sector. This collaborative effort was highlighted during a recent meeting on 26 July 2024, when the CAA Board Chairperson, Dr Patrick Nkhoma, led a high-level delegation to the COMESA Secretariat. The delegation met with the director of Infrastructure and Logistics to discuss potential areas of cooperation. This strategic dialogue aims to harness COMESA’s extensive network and resources to drive improvements in Zambia’s aviation infrastructure and training capabilities. The Board Chairperson, Dr Patrick Nkhoma pointed out that meeting was a dream come true for the aviation sector in Zambia adding that there is renewed hope for the success of the sector especially that CAA shall work with COMESA.
Source: COMESA
Zimbabwe
Investments in Zimbabwean lithium to drive domestic refining capacity
Zimbabwe plans to build a USD12-billion economy by 2030 on the back of its mining industry. Positioned as Africa’s largest lithium producer and rich in a variety of critical minerals, the country plans to optimise investments in exploration, the development of new mines and refining facilities and partnerships with global players to achieve this goal. Recent investments reflect a drive to stimulate infrastructure development, signalling a positive growth trajectory for Zimbabwe’s lithium industry. The upcoming Critical Minerals Africa Summit – taking place from 6-7 November in Cape Town – will feature a dedicated panel showcasing Africa’s lithium market prospects. Zimbabwe will be a key topic during the discussion, with speakers delving into investment opportunities, strategies for strengthening value addition and the outlook regarding regional integration. State-owned mining company Kuvimba House signed a USD310-million Build, Operate and Transfer agreement in July 2024 with British and Chinese investors to construct a 3-million tonne per annum lithium processing plant. Situated at the Sandawana Mine, the facility will feature a 600 000 tonnes per annum lithium concentrator, which will be operational within 18 months. The concentrator will be initially owned by the consortium for a period of six years before being transferred to the Zimbabwean Government. Operations at the mine began in January 2023.
Source: Energy Capital & Power
Zimbabwe / United Kingdom
Zimbabwe, UK trade soars to USD800-million; local farmers to increase horticultural exports through new scheme
British Embassy Development Director and Deputy Ambassador in Harare, Joanne Abbot, has said trade between Zimbabwe and the United Kingdom (UK) experienced a significant boost from 2022 to 2023, with a 67% increase in the exchange of goods and services, reaching a total value of over USD800-million. Previous reports indicate that Zimbabwe-UK trade surged by USD185-million to USD595-million in 2022, with UK investments in Zimbabwe increasing by USD68-million (145.5%) in 2021. This growth comes as the Southern African nation strengthen ties with the UK after years of political tension, with a focus on economic diplomacy and re-engagement. Speaking at the launch of the Monty’s and Central Association of Cooperative Union Outgrower Scheme in Harare recently, Abbot announced a new partnership aimed at increasing horticultural production for export and to enhance trade relations. “We want to keep increasing the trade rate. So, how do we keep increasing trade? Well, [I am] delighted to announce a new project under the UK’s Trade Partnerships Programme, which will support horticultural farmers and lead firms to boost production and exports of high-value crops to the UK and the European Union markets,” she said. The scheme is running under the theme: Opportunities in the field, capturing opportunities from the field.
Source: New Zimbabwe
