AfDB co-organises conference on environmental financing for biodiversity conservation and sustainable development
The United Nations Educational, Scientific and Cultural Organization biosphere reserve of Príncipe island was the site of the first international conference dedicated to biodiversity financing hosted by the Government of São Tomé and Príncipe, the Regional Government of Príncipe, in partnership with the United Nations (UN) and the African Development Bank (AfDB). Raising awareness of the challenges in mobilising sustainable financing, the event held from 14-15 March 2024, identified concrete mechanisms to generate additional financial flows anchored in biodiversity. It also showcased solutions that Mozambique, Rwanda, Seychelles and Cabo Verde have found to attract innovative environmental finance and blended finance investments to support terrestrial (green) and marine (blue) conservation activities. Participants included high-level government representatives, the diplomatic corps representatives from Cabo Verde, Equatorial Guinea, Portugal and Brazil, civil society, financial institutions, private investors, international experts, and senior representatives of the AfDB and the UN.
Source: AfDB
East / Southern Africa
COMESA Monetary Programme: Building regional banks’ capacity in fiscal management
The Common Market for Eastern and Southern Africa (COMESA) Monetary Institute (CMI) is building the capacity of the regional apex banks to undertake reform measures to improve regulation, supervision, and risk management. Central banks from eight COMESA member states, namely Burundi, the Democratic Republic of the Congo, Egypt, Kenya, Madagascar, Uganda, Zambia, and Zimbabwe are the latest beneficiaries of this initiative. At least 19 staff of these banks participated in a comprehensive training programme focusing on the “Implementation of Basel III Standards, 2017 Post Crisis Reforms, and Application of IFRS 9”. Basel III refers to a set of reform measures intended to improve regulation, supervision, and risk management in the international banking sector while IFRS 9 specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items. Held from 4-8 March 2024, in Nairobi, Kenya, the training aimed at bolstering understanding and application of critical regulatory frameworks within the COMESA region. It addressed the pressing need for enhanced adoption of Basel III standards across member jurisdictions.
Source: COMESA
West Africa
IMF Executive Board concludes 2024 discussions on common policies of member countries of WAEMU
The Executive Board of the International Monetary Fund (IMF) on 15 March 2024, concluded the annual discussions on common policies of member countries of the West African Economic and Monetary Union (WAEMU). WAEMU has proved resilient amid significant adverse shocks, maintaining strong growth estimated at 5.1% in 2023. Inflation has fallen rapidly from its 2022 peaks and is now back within the 1-3% target range. External reserves continued to fall significantly in 2023, by about USD2.6-billion, or to about 3.3 months of imports, although they rebounded by USD1.8-billion in January. Against the background, the central bank raised interest rates by a cumulative 150 basis points over 2022-2023, and limited the amount of bank refinancing. Growth is projected to rise to about 6.8% in 2024-2025, due to the start of new hydrocarbon production, and hover near 6% in the longer term. Fiscal consolidation would proceed in 2024 and bring the deficit back to 3% of GDP in most member countries in 2025. The completion of these hydrocarbon projects, together with fiscal consolidation, would lead to a quick narrowing of the current account deficit, and contribute to a gradual rebuilding of external reserves.
Source: IMF
Angola / China
China's President Xi willing to work with Angola as it moves on from oil
Chinese President Xi Jinping said he would support Chinese firms that invest in Angola's agriculture and manufacturing sectors, state media has reported, as the African oil producing nation seeks help in diversifying its economy. "The Chinese side is willing to work with Angola to implement key infrastructure projects and support strong Chinese companies to go to Angola to carry out various forms of cooperation," President Xi told visiting Angolan President João Lourenço at the Great Hall of the People in Beijing. President Lourenço’s visit follows Angola's announcement in December that it would leave producer group, the Organization of the Petroleum Exporting Countries, and [concluded] cooperation agreements with China. In December, China and Angola signed an investment protection agreement, while from 25 December, Angolan firms have had tariff-free access to China's massive consumer market across 98% of goods under a separate agreement. The two leaders also agreed to upgrade bilateral ties to the level of comprehensive strategic cooperative partnership, allowing for greater trade and investment.
Source: Reuters
Côte d’Ivoire
IMF Executive Board approves USD1.3-billion under the RSF for Côte d’Ivoire
The Executive Board of the International Monetary Fund (IMF) approved a Resilience and Sustainability Facility (RSF) arrangement for Côte d’Ivoire. Reviews under the 30-month RSF arrangement with a total access of SDR975.6-million (about USD1.3-billion or 150% of Côte d’Ivoire’s IMF quota) will coincide with reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in May 2023 (for an amount of about SDR2 601.6-million, or 400% of quota). The ECF/EFF arrangements support the government's economic programme over 2023-2026 for macroeconomic stability and the structural economic transformation to transition Côte d’Ivoire towards an upper middle-income country. Côte d’Ivoire is highly exposed to climate change through rising temperatures and sea levels as well as rain pattern changes. Economic vulnerabilities to climate change are mostly due to the country’s heavy reliance on agriculture, and the concentration of industrial and services activity in coastal areas. Agriculture employs about half of the workforce and contributes about 17% of GDP and 10% of tax revenues. At the same time, greenhouse gas emission and pollution in urban areas are growing, albeit from a low level.
Source: IMF
Djibouti
World Bank approves additional financing for economic management and statistics development in Djibouti
The World Bank has approved an additional financing of USD5-million for the Economic Management and Statistics Development for Policy Making project in Djibouti. The project aims to strengthen the capacity of the National Institute of Statistics of Djibouti (INSTAD) to produce and disseminate timely and reliable statistics, and to modernise the government's selected economic and fiscal management tools and processes. The additional financing will support the production of the population census, economic census, and household budget survey, providing up-to-date and reliable information on the country's population, businesses, and household characteristics. This data will be crucial for informing policy decisions regarding economic development and climate change adaptation in Djibouti. The project also includes measures to assess the population's climate risk and vulnerability, providing key evidence for policymaking in the mitigation and adaptation agenda to climate change. Furthermore, technical assistance will be provided to strengthen the capacity of the environmental statistics division within INSTAD.
Source: World Bank
Kenya
Kenya Airways, Virgin Atlantic ink codeshare deal
British carrier Virgin Atlantic has inked a codeshare agreement with Kenya Airways (KQ) aimed at expanding their reach in the domestic, Africa and international markets. The agreement, which was signed recently, will make it easy for Virgin Atlantic to place its code on Kenya Airways' London flights, providing passengers with seamless access to KQ's extensive network of destinations in Africa and beyond, the two airlines said. A codeshare is a business deal between two or more airlines, which allows them to sell seats on each other’s flights and expand their network. Each airline publishes and markets a flight under its designator and number as part of its schedule. “Through the synergy of our respective strengths and networks, our goal is to enhance the travel experience for our esteemed customers, providing them with expanded choices, enhanced convenience, and seamless connectivity to vital destinations worldwide,” said KQ’s Chief Commercial and Customer Officer Julius Thairu in a recent statement. KQ has been seeking new partnerships and expanding its wings across its network post the COVID-19 pandemic outbreak.
Source: Business Daily
Kenya
Nuclear power to be ‘key component’ of Kenya’s energy mix
Kenya has released its roadmap on nuclear energy as it aims to commission its first research reactor within the next 10 years. Launched recently by the state-owned Nuclear Power and Energy Agency, the Strategic Plan 2023-2027 sets out the country’s nuclear energy ambition. Alex Wachira, Principal Secretary for the Ministry of Energy and Petroleum, said the plan provides guidelines for developing nuclear infrastructure. This would cover the construction, operation, maintenance and decommissioning of nuclear facilities safely and securely. “The strategic plan proposes practical interventions to ensure Kenya commences construction of its first nuclear power plant in 2027 and commissions it in 2034,” Wachira said. Kenya’s domestic installed electricity capacity is about 3 073 MW. This includes hydropower (839 MW), geothermal (940 MW), thermal power (646 MW), wind (436 MW) and solar (210 MW). The rest is made up of biomass. Kenya is looking to add nuclear energy to this electricity generation mix.
Source: ESI Africa
Lesotho / Eswatini
Revenue Services Lesotho, Eswatini Revenue Service sign MoU
To strengthen areas of collaboration, the Revenue Services Lesotho (RSL) and Eswatini Revenue Service (ERS) recently signed a memorandum of understanding (MoU) at an event held in Mbabane, Eswatini. Information received from RSL shows that the MoU seeks to formalise the already existing collaboration between the two administrations especially in the areas of information exchange and best practices on revenue administration modernisation, legal frameworks and information technology. Meanwhile, it is said that RSL Commissioner General, Mrs Mathabo Mokoko and her counterpart ERS Commissioner General, Mr Brightwell Nkambule in Mbabane, Eswatini signed on behalf of the two entities. Both parties expressed gratitude towards the formalisation of their areas of corporation and exchange programmes, expressing hope that this will go a long way in promoting and harmonising taxation and revenue issues in these two countries, according to the RSL.
Source: Government of Lesotho
Mozambique
AfDB and Mozambique strengthen partnerships to boost regional infrastructure development and trade
The African Development Bank (AfDB) and Mozambique reinforced their partnership during a visit by Mr Solomon Quaynor, the bank’s Vice President for Private Sector, Infrastructure and Industrialization. This visit, held from 12-15 March 2024, underscores the AfDB’s commitment to supporting Mozambique's economic growth trajectory, particularly following the third review of the country's Extended Credit Facility with the International Monetary Fund and the AfDB's recent Economic Acceleration Package and Budget Support Mission. Discussions revolved around the AfDB’s support for private sector development and industrialisation through strategic infrastructure projects along vital regional economic corridors linked to Maputo, Beira, and Nacala. These corridors hold immense potential to unlock Mozambique's economic opportunities and foster regional trade with several other countries.
Source: AfDB
Mozambique
Mozambique records USD1.7-billion in LNG sales in 2023
Mozambique’s natural gas sales reached USD1.7-billion in revenue in 2023 – according to statistical reports from the Bank of Mozambique – marking an increase of 218% compared to the previous year. The increase was driven by the operational start-up of the Coral Sul floating liquefied natural gas (FLNG) plant in the Area 4 Block in the offshore Rovuma Basin, which delivered first LNG cargo in November 2022. The Area 4 Block is operated by Mozambique Rovuma Venture, a JV between ExxonMobil, Eni and China National Petroleum Corporation. Partners include energy corporation Galp, natural gas company Korea Gas Corporation and Mozambique’s parastatal Empresa Nacional de Hidrocarbonetos. Seeking to expand gas extraction activities, Eni announced plans last January to develop a second FLNG vessel in Area 4 – Coral Norte – which could start production as early as 2027. Meanwhile, ExxonMobil announced plans last year to leverage as much as 6 billion cubic feet of natural gas per day from the basin to boost the capacity of its planned Rovuma LNG terminal to 18 million tonnes per year.
Source: Energy Capital & Power
Namibia
African Climate Foundation to support Namibia Green Hydrogen Programme
The African Climate Foundation (ACF) has signed a memorandum of understanding (MoU) with the Environmental Investment Fund of Namibia to support the country’s Green Hydrogen Programme. The MoU will enable continued support for the programme to achieve its mandate and promote industrialisation through the development of green hydrogen derivatives. This support comes after the success of two previous collaborative initiatives that established a strong financial and socio-economic argument for the development of hydrogen derivatives in the country and the establishment of the Namibian Implementation Authority Office. The MoU marks the continuation of a collaborative partnership between the ACF and the Namibian Green Hydrogen Programme, underlining a mutual commitment to the development of clean fuel sources, and sustainable green industrialisation pathways. The primary areas of focus under this MoU include technical assistance and implementation support in the areas of sustainable finance, green hydrogen, derivatives (Power-to-Chemicals), and green industrialisation.
Source: ESI Africa
Namibia / South Africa
South Africa, Namibia seek to build USD377-million Transport Infrastructure Fund
Namibia and South Africa are in talks to launch infrastructure projects worth ZAR7-billion (USD377-million) over the next three years to address current rail and port inefficiencies. The Namibian Executive Director for the Ministry of Finance and Public Enterprises, Titus Ndove told CNBC Africa that his ministry is mobilising an initial ZAR2-billion this year as part of the project linking the two nations and other parts of the Southern Africa region. “We are elevating our bi-national arrangements with the government and [we have identified] different areas of collaborations ranging from tourism, border protection, water issues, trade facilities and seeking ways to go hunt together for more markets,” Ndove said. South Africa is Namibia’s largest trading partner and both countries are members of the Southern African Customs Union, the world’s oldest customs union.
Source: CNBC Africa
Rwanda
Economic growth momentum expected to continue in 2024 - Rwangombwa
The Governor of the National Bank of Rwanda John Rwangombwa has said that the economic growth momentum that Rwanda witnessed last year will continue in 2024, driven by expected investments into the construction and tourism sectors. “The economy remains resilient and strong,” the governor told participants during the presentation of the Monetary Policy and Financial Stability Statement on Thursday, 21 March. Rwanda’s economy grew at 8.2% in 2023, higher than the initially projected growth of 6.2%. This was driven mainly by the services sector which grew by 11% and accounted for 44% of the total GDP. “This strong growth momentum is expected to continue in 2024 led by increasing investments in the construction and tourism sub-sectors and the recovery of the agriculture sector thanks to improving weather conditions,” he said. Last year, construction activities increased by 12%. This could have been driven by increased demand in new construction activities including the ongoing construction of the Bugesera airport, road construction activities, and upcoming private commercial housing projects.
Source: The New Times
Rwanda / Zimbabwe
Trade between Rwanda, Zimbabwe grows by over 50%: Official
Bilateral trade between Rwanda and Zimbabwe has grown by more than 50% over the past four years, a Rwandan official said during the recent opening of a business forum. The two-day Rwanda-Zimbabwe Business Forum opened in the Rwandan capital of Kigali, with over 100 companies showcasing their products and services. The forum's activities include showcasing investment opportunities, bilateral meetings, and business-to-business networking. "In the last four years, bilateral trade between Rwanda and Zimbabwe has increased by over 50%. Zimbabwean companies have invested more than USD38-million in Rwanda, and eight Rwandan companies have started operations in Zimbabwe in the energy, information technology, and agro-processing sectors," Francis Gatare, CEO of the Rwanda Development Board, said at the event.
Source: Xinhua
São Tomé and Príncipe
São Tomé and Príncipe joins African Legal Support Facility, boosting legal aid for African nations
São Tomé and Príncipe has ratified the Agreement establishing the African Legal Support Facility (ALSF), paving the way for full membership in the facility. By joining, the island nation has cemented its commitment to supporting lean frameworks and technical expertise across the continent. The move also demonstrates the strong relationship between the São Tomé and Príncipe Government and the ALSF, which is hosted by the African Development Bank (AfDB). The ALSF plays a crucial role in providing legal and technical support to African governments in negotiating complex commercial transactions and legal disputes. This includes ongoing advisory service and capacity building, particularly in the energy sector. São Tomé’s President Carlos Vila Nova ratified the agreement on 1 March. Receipt of the instrument of ratification by the director of the ALSF will represent São Tomé and Príncipe's full accession.
Source: AfDB
Tanzania
Tanzania central bank tells hotels to obtain foreign currency exchange licence
The Governor of the Bank of Tanzania, Mr Emmanuel Tutuba, has urged owners and operators of tourist hotels to acquire a licence for exchanging foreign currency in an attempt to curb the black market. Last October, the central bank issued new foreign exchange regulations that allowed hotels to engage in currency exchange businesses to increase the availability of the service. However, as of March this year, only one hotel had applied for the licence, while others are allegedly exchanging or pegging the services in foreign currency. Mr Tutuba, who met hotel owners and operators receiving tourists on Thursday, 14 March 2024, said the licence would enable the central bank to obtain crucial statistics and information to strengthen the financial sector. "In October last year, we made amendments to the Foreign Exchange Bureaus Regulations, creating an official window to allow hotels ranging from three to five stars to start providing foreign exchange bureau services," said Mr Tutuba. According to him, only one hotel has applied for the licence so far, highlighting that the remaining hotels continue to charge customers in foreign currency without proper authorisation, leading to an unregulated market.
Source: The Citizen
Tanzania
Tanzania to host 2025 petroleum conference
Tanzania will once again showcase its potential for investments when it hosts the 11th East African Petroleum Conference and Exhibition next year. The forum, to be organised by the East African Community (EAC), will take place from 5-7 March at a venue to be announced later. The 2025 edition, set to attract over 1 000 delegates, aims to highlight the region’s petroleum potential and investment opportunities. “Expectations are high for the event,” the EAC Secretariat said in a statement on the event which was last held in Uganda last year. Over the past two decades, the biennial East African petroleum conferences have served as crucial platforms for dialogue among governments and industry players on exploitation of hydrocarbon resources. Next year’s edition is themed Unlocking investment in Future Energy; the Role of Petroleum Resources in the Energy Mix for Sustainable Development in East Africa. A recent meeting of the Regional Steering Committee which comprised experts from around the region in Zanzibar marked the official commencement of preparations. The Deputy Permanent Secretary in the Ministry of Energy, Dr James Mataragio, is the chairperson of the Regional Steering Committee.
Source: The Citizen
Uganda
A raft of new public procurement regulations in Uganda
A wave of fraud-related public procurement scandals has gripped the nation in recent years. Allegations of fake tenders and false representations by imposters have plagued the procurement cycle, becoming a frequent feature story in the news. The Public Procurement and Disposal of Public Assets Authority has issued several fraud alerts warning the public about fraudulent procurement deals. The tell-tale signs of a scandal are often unsolicited initial contact, much-touted single-source, non-competitive bidding, payments for various registration requirements to be done by a recommended law firm, a high-profile reception for bidders visiting the country, complete with armed police escorts from the airport and a big signing event in a said to be public office. It is when the music stops that the prospective bidder is left, several thousands of dollars short, holding a worthless contract and calling their erstwhile contacts who have now vanished into the ether. Though a couple of suspects have been charged in court, no case has been concluded yet. Against this backdrop of fraud, we are gradually witnessing a revamp of the public procurement process.
Source: ENS
Uganda
Uganda set to join Single African Air Transport Market
So far, only 14 countries out of 29 that belong to the Eastern Africa, Southern Africa and Indian Ocean Community have acceded to the Single African Air Transport Market (SAATM), six years since it was launched. This has limited the potential economic growth and development of the region and greatly affected air connectivity within Africa as air travel costs remain prohibitive. To the contrary, many air transport markets outside Africa have been liberalised to a significant extent while most intra-African air transport markets remain largely closed. This was communicated during a two-day national awareness workshop on the SAATM held in Kampala from 29 February to 1 March 2024. The objective of the workshop was to create awareness of the existence of SAATM and underscore its benefits to the people of Uganda. In his statement during the workshop, Uganda’s Minister of Works and Transport Edward Katumba Wamala acknowledged the importance of the SAATM and called for the establishment of enabling legal and institutional frameworks at the continental, regional and national levels in order to operationalise the market.
Source: Common Market for Eastern and Southern Africa
Zambia
World Bank boosts support for the financial sustainability, reliability, and resilience of Zambia’s electricity sector
A new National Energy Advancement and Transformation Program (NEAT), a multiphase programme supported by the World Bank, will help Zambia step up the financial sustainability, reliability, and resilience of its electricity sector by 2033. The USD700-million NEAT programme will help Zambia’s national power utility, Zambia Electricity Supply Corporation Limited (ZESCO), return to sustainability, attract new private sector investment at scale to enable new growth, and deliver more inclusive development across the national territory. In doing so, it will also help to enhance the energy sector's climate resilience through diversification of the energy mix. The first phase of the programme, which runs from 2024 to 2026, will provide a USD100-million grant to improve ZESCO’s financial performance and operational reliability, and strengthen electrification financing mechanisms supporting the Rural Electrification Authority. It will also improve Zambia's procurement process for non-hydropower renewable energy projects.
Source: World Bank
