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World
Joint Report on MDBs’ Climate Finance: Climate finance to low- and middle-income countries hits USD51-billion in 2021
Climate finance committed by major multilateral development banks (MDBs) rose in 2021 with over USD19-billion committed to climate change adaptation finance, according to the Joint Report on Multilateral Development Banks’ Climate Finance, published recently. The report tracks the progress of MDBs in relation to their climate finance targets such as those announced at COP21 and the greater ambition pledged for the post-2020 period. The report finds that total financing commitment by MDBs to low-income and middle-income economies in 2021 of USD50.666-billion, surpassed the annual expectations of USD50-billion set in 2019 at the United Nations (UN) Secretary General’s Climate Action Summit in New York. Of the USD50.666-billion of climate finance committed to low-income and middle-income economies, USD47.24-billion was from the MDBs’ own account and USD3.426-billion from external resources that were channelled through the banks. Mitigation finance committed to low- and middle-income economies totalled USD33.055-billion, or 65%, while adaptation finance totalled USD17.611-billion, or 35%.
Source: African Development Bank
Africa
AfDB Group approves USD50-million Trade Finance Risk Participation Partnership with Natixis
The Board of Directors of the African Development Bank (AfDB) Group has approved a USD50-million Risk Participation Agreement (RPA) for Natixis, a French bank. The agreement will enable Natixis to support African banks and their small and medium-sized enterprise (SME) clients to undertake more regional and international trade. The agreement is expected to help achieve a cumulative trade volume of USD430-million over the next three years. "With this new operation, we are strengthening the trusting relationship between the various players in the African banking system in order to accelerate the development of trade," said Mohamed El Azizi, director general of the AfDB for North Africa. He added: "This is another step towards the realisation of the African Continental Free Trade Area (AfCFTA) which will unleash the full growth potential of the continent and create new opportunities and jobs." The risk-sharing agreement is intended to meet the growing demand from African markets for trade finance in vital economic sectors, such as agribusiness, energy, manufacturing, health and services. It will also help diversify production, creating jobs and additional tax revenues for several African countries.
Source: AfDB
Africa
Survey reveals ‘huge support’ for AfCFTA
The results of the third yearly Africa CEO Trade Survey, run by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) and African Business magazine have shown “huge support” for the African Continental Free Trade Area (AfCFTA) and the potential benefits that it could bring, says PAFTRAC chairperson Professor Patrick Utomi. “The results of our survey are clear. Business leaders are generally optimistic that the free trade area will benefit both their own companies and African economies more generally,” he says. The survey aims to provide the African private sector with a platform to identify key issues related to the African trade environment and inform trade policy at the continental and regional level. The Africa CEO Trade Survey results were discussed at a recent trade policy webinar by a panel including the AfCFTA Secretariat, Google, Africa Business Council and the International Islamic Trade Finance Corporation (ITFC). The AfCFTA Secretariat Secretary General Office senior adviser Cynthia Gnassingbe-Essonam said during the webinar that the Africa CEO Trade Survey reports constitute “a blueprint for the implementation of the AfCFTA, as it provides real on-the-ground information as to what are the constraints to the private sector to fully take advantage of the AfCFTA.”
Source: Engineering News
Angola
Angola invests in hydrogen production facility
With accelerated uptake in global markets, enhanced technological innovation and falling costs of fuel cells, green hydrogen has emerged as a viable carbon-free energy source in Angola’s transition to a clean energy future. Angola is well suited to the development of hydrogen, owing in part to the country’s abundant hydrological resources and a favourable climate for the development of renewable energy projects. According to estimates, the southern African country uses just 5% of its 47 major water catchment areas and has large untapped water reserves. The Angolan government is firmly committed to a long-term decarbonisation strategy – seeking to increase the proportion of renewables in its energy matrix to 70% by 2025 – in which hydrogen could play a critical role. A number of hydrogen projects are already underway in Angola. In November 2021, Sonangol reached an agreement with two German engineering companies, Gauff Engineering and Conjuncta, for the construction of a green hydrogen facility in Angola. Upon completion, the hydrogen plant is expected to produce around 280 000 tonnes of green ammonia for export from 2024 and would make Angola the first African country to supply Germany with green hydrogen.
Source: Energy Capital & Power
Cameroon
A new airline enters the air transport market
The Cameroonian Aviation Authority (CCAA) has approved a new airline in the air transport sector. In an official document sent on 12 October 2022, to the Agency for the Safety of Air Navigation in Africa and Madagascar (ASECNA), CCAA said it has welcomed Zejet on the market. For now, no information on the financial and transport capacities of the company has been released. The newcomer will operate all air transport segments, including scheduled or on-demand passenger transport, cargo, and courier services. Moreover, with its licence, Zejet can carry out both international and domestic flights, making it a rival to state-owned Camair Co, which has been struggling since 2011. To cope with the situation, the public company adopted a domestic flight-oriented strategy when it resumed operations in October 2020, after an eight-month shutdown. Even before this period of inactivity, Camair Co had experienced numerous failures on international routes. An air transport connoisseur indicated that the newly approved airline could first choose to operate on the domestic segment, given the tough competition on international routes.
Source: Business in Cameroon
Ethiopia
Ethiopia restricts use of foreign currency
Ethiopia has ordered banks to deny foreign currency to businesses importing non-priority goods, in an effort to shore up dwindling foreign reserves in one of Africa's major economies. The move effectively freezes the import of dozens of items such as alcohol and cars, as businesses must register with banks to obtain the foreign currency needed to bring goods into the country. In a letter to Ethiopia's central bank, the Ministry of Finance said it had become necessary to restrict the use of foreign currency to importing food, medicine and medical equipment, and raw materials for manufacturing. "Therefore… we are sending a list of goods that will not be allowed forex for an indefinite period of time," said the letter posted recently on the Twitter account of Industry Minister Melaku Alebel Addis. The list of some 40 products includes vehicles and motorcycles to wall clocks, umbrellas, carpets, soaps, alcohol, perfumes and cigarettes. No recent public figures are available regarding Ethiopia's reserves of foreign currency. In late March, the National Bank of Ethiopia indicated reserves had fallen to USD1.6-billion at the end of 2021, covering less than 2 months' worth of imports, according to the local newspaper the Reporter.
Source: Africanews
The Gambia
The Gambia launches first Digital Forensics Lab
As part of the European Union (EU)-funded project dubbed: Organised Crime: West African Response on Cybersecurity and fight against Cybercrime (OCWAR-C), The Gambia has inaugurated a Digital Forensics Laboratory with support from the Economic Community of West African States (ECOWAS) in partnership with the EU. The laboratory, built at the Police Headquarters will help The Gambia build the operational capacity of the structures in charge of digital forensic investigations. Speaking at a ceremony held at the Atlantic Hotel in Banjul, Ousman A. Bah, the Minister of Communications and Digital Economy, expressed delight at the ECOWAS Commission and the EU for choosing The Gambia out of 16 countries in the sub-region and Mauritania, as a pilot for the establishment of the Digital Forensics Laboratory. Raphael Brigandi, EU-The Gambia delegate representative, also stated that the overall objective of the project is to contribute to enhancing cybersecurity and combatting cybercrime, in order to improve the resilience and robustness of the information infrastructure; and to improve the capacity of the stakeholders in charge of combatting cybercrime.
Source: The Point
Kenya
Banks raise cost of loans on CBK jumbo rate hike
Top commercial banks have started increasing lending rates by up to 1.1 percentage points after the Central Bank of Kenya (CBK) raised its benchmark interest rate by the biggest margin in more than seven years, setting the stage for costly credit for homes and businesses in a recovering economy. NCBA Group, Standard Chartered, Housing Finance and Stanbic Bank are some of the lenders that have notified clients that the base rate on their loans will rise from this month. The lenders are reacting to the CBK’s decision of 29 September that raised the benchmark interest rate by 75 basis points to 8.25% to anchor inflation expectations. It marked the central bank’s first policy meeting since newly elected President William Ruto took power last month, and second hike this year and the steepest since July 2015. Regulatory notices show NCBA Group raised its base interest rates by 1.1 percentage points from 11 November while Stanbic and Standard Chartered increased theirs by 0.75 percentage points. Banks use a base rate that is normally the cost of funds, plus a margin and a risk premium, to determine how much they charge a particular customer. They are now reviewing base rates and many have applied to the CBK to revise upwards the risk premium in what could end the era of cheap credit.
Source: Business Daily Africa
Kenya
Kenya Power seeks special fee for electric car charges
Kenya Power is seeking a special tariff for electric vehicle (EV) charging stations in a move aimed at accelerating the uptake of EVs in the country, as well as raising electricity sales. The electricity distributor said it has submitted a special tariff application to the Energy and Petroleum Regulatory Authority (EPRA) to allow it to offer different rates for their customers for charging EVs. “We have applied to EPRA for a new special tariff for charging of [EVs] and we are waiting for the regulator’s response,” said Kenya Power acting managing director Geoffrey Muli. Should the regulator give Kenya Power its nod, the company will be able to sell electricity to customers who want to charge their cars at a different cost compared to the normal electricity prices. Kenya would join the growing number of countries, mostly developed nations, which have rolled out preferential tariffs to boost the uptake of EVs to cut emissions. Such tariffs offer customers preferential rates to charge their vehicles during specific times of the day, especially at night when power consumption is low.
Source: The Nation
Kenya
KRA starts collecting Nairobi rental properties data
The Kenya Revenue Authority (KRA) will be collecting data on rental property in Nairobi and surrounding areas starting from 19 October 2022. In a statement, the authority says the move is part of its tax base expansion programme, or simply put, to have more landlords paying taxes on rental income. The authority has collected KES2.031-trillion in revenue for the financial year 2021/22, representing a 21.7% growth and the highest ever in its history. It is also the first time in 14 years that the authority has exceeded its original target in revenue collection. “KRA recorded a monumental revenue collection of KES2.031-trillion for the financial year 2021/2022 (July 2021 – June 2022) compared to KES1.669-trillion collected in the last financial year 2020/2021,” commissioner-general James Mburu said three months ago. The KRA boss attributed the revenue growth to improved tax compliance from taxpayers who contributed to the collection of revenue surplus of KES148.9-billion against the original target. Source: The Standard
Mozambique
The AfDB’s Sustainable Energy Fund for Africa provides USD2.5-million to increase penetration of renewable energy
The Board of Directors of the African Development Bank (AfDB) has approved a grant of USD2.5-million to the Mozambican government to develop renewable energy resources. The grant, from the Sustainable Energy Fund for Africa (SEFA), administered by the bank, will be used to implement the Mozambique Renewable Energy Integration Program (MREP). "With the support of the [SEFA], Mozambique’s capacity to integrate larger shares of variable renewables will increase its efforts to become a major regional electricity supplier," said Dr Daniel Schroth, director of the AfDB’s Renewable Energy and Energy Efficiency Department. He added, "Given that Mozambique is one of the most highly climate-vulnerable countries in the world, the project will help build a more sustainable and resilient power generation infrastructure." The funding will assist the national electricity company to provide financial support for technical, economic, environmental and social feasibility studies for the development of a solar floating power plant in Chicamba reservoir. In addition, it will support funding for a feasibility study for Energy Battery Systems Storage in up to 10 sites, as well as capacity building for Electricidade de Moçambique’s (EDM) personnel; and support for tender preparation.
Nigeria
President Buhari signs Nigeria Startup Bill into law
Nigeria has become the latest country to pass a Startup Bill, giving a more formal approach to how the startup ecosystem is governed. The Bill which has been in the making since May was assented to by President Muhammadu Buhari on Wednesday, 19 October, and the news was made public via Twitter by the country’s Minister of Communications and Digital Economy, Isa Pantami. Now known as the Nigeria Startup Act, the law will be an important anchor in the country’s technology developments while creating a thriving sector. The new law introduces the Council for Digital Innovation and Entrepreneurship which will be the main custodian and will oversee its implementation. The council comprises of the president, the governor of Nigeria’s central bank, representatives of the Startup Consultative Forum, the director-general of Nigeria’s information and technology regulator and other key government and private officials. They will be responsible for policy guidelines and ensuring that the Bill meets its objectives. The Bill identifies three main challenges that it will help Nigerian startups to tackle, namely: lack of an enabling environment; unclear regulatory framework; and inadequate local content support.
Source: Africa Business Communities
Nigeria / Morocco
Plans for Nigeria-Morocco gas pipeline backed by two new MoUs
Two memoranda of understanding (MoUs) on the Nigeria-Morocco gas pipeline were signed on 15 October in Nouakchott, Mauritania. This pipeline will run along the West African coast from Nigeria to Morocco, passing through, among others, Senegal and Mauritania, where it will be connected to the Maghreb Europe Pipeline and from there to the European gas network, according to a joint statement of the signatories. These MoUs confirm the commitment of the involved parties to the project, which, once completed, will provide gas to all West African countries and will also provide a new alternative export route to Europe. This infrastructure will help improve the living conditions of the population, the integration of the economies of the sub-region and the mitigation of desertification through a sustainable and reliable gas supply in line with the new commitments of the continent in terms of environmental protection, said the statement. The statement added that the project would also give Africa a new economic, political and strategic dimension.
Source: ESI Africa
Rwanda / Uganda
IMF confident that Uganda, Rwanda economies to grow faster next year
Rwanda and Uganda will lead the East African Community’s (EAC) growth next year, but the International Monetary Fund (IMF) warns of tough times ahead. The tough times are being projected as a result of the tightening of economic policies, especially by the United States (US) whose central bank has been raising interest rates to curb inflation. According to the IMF World Economic Outlook October forecast, Rwanda will grow at 6.7% and Uganda at 5.9% in 2023, showing accelerated growths from 6.0% and 4.7%, respectively, expected for this year. The two countries are followed by South Sudan at 5.6%, Kenya which is expected to grow at 5.2% and Tanzania at 5.1%. All the EAC countries are projected to post growths that are higher than the sub-Saharan African average of 3.6%, which itself declined sharply from the 4.7% posted in 2021, according to the IMF. The lower growth is due to “a worldwide slowdown, tighter global financial conditions, and a dramatic pickup in global inflation spill into a region already wearied by an ongoing series of shocks,” according to the outlook. Uganda’s growth prospects are tied to an expected better agricultural output with the weather conditions expected to be better, and increased investment in the oil and gas sector as the country and the oil companies push for the first production in 2025. Source: The Independent
Somalia
IMF staff completes staff-level agreement on the fourth review of the ECF for Somalia and conducts the 2022 Article IV Consultation
An International Monetary Fund (IMF) team, led by Laura Jaramillo, conducted discussions with Somali authorities in Nairobi and in Washington DC on the 2022 Article IV Consultation and reached a staff-level agreement on the fourth review under the Extended Credit Facility (ECF) arrangement. This agreement is subject to approval of the IMF’s Executive Board. At the conclusion of the discussions, Ms Jaramillo issued the following statement, in part: “While political stability has improved since the elections in May 2022, Somalia’s outlook is clouded by prolonged drought, the impact of Russia’s war on Ukraine, and security risks. The drought and slowing global growth are weighing on economic activity in 2022, and risks remain elevated. GDP growth for 2022 is projected at 1.9%, compared to 2.9% in 2021. Drought and higher commodity prices are expected to raise inflation to 9% from 4.6% in 2021. Near-term risks are elevated, including a worsening of the food crisis if healthy rains do not resume in 2022 or if commodity prices rise further.
Source: IMF
South Sudan
South Sudan’s oil sector pulls in more deals
South Sudan’s oil and related sectors are still attracting enthusiasts in spite of the publicised problems, including on revenue sharing. Two weeks after the South Sudan Oil and Power Conference (SSOP) in Juba, firms have been publicising their deals from the forum meant to drive business and investment in the country’s oil production. Several agreements on financing, oil exploration and production, oil refinery and infrastructural development were inked, according to a prospectus from the Petroleum ministry. In one of the deals, the South African Nile Orange Company was offered the Jonglei State oil. “We believe the project with Strategic Fuel Fund will now move forward as we anticipated for a very long time. We agreed that a team of technical personnel will visit Jonglei State to talk to the people on the ground,” said Minister of Petroleum Puot Kang. However, details of this and other agreements were not made public. South Sudan’s Kush Bank signed a deal worth USD75-million with AIS Capital Advisors for power distribution and management. Leonard Mathu, managing director of AIS Capital Advisors, said the agreement will create “a domestic value chain that enables us to control costs, deliver power at stable rates, and without interruption.”
Source: The EastAfrican
Uganda
President Museveni signs into law Nsereko Bill
President Yoweri Museveni has signed into law the Computer Misuse (Amendment) Bill, 2022, which was passed by parliament recently. Sponsored by a private member, the Kampala Central Member of Parliament Muhammad Nsereko, the law makes it a crime to write, send or share hateful, unsolicited, misleading, or malicious information online. The law also criminalises the use of photos on social media without the express permission of the owners. The law also prohibits sharing information, which is likely to degrade, or ridicule another person, group of persons, tribe, religion, ethnicity, or gender, and about children without the consent of their parents or guardians. Following the president’s approval, a person found guilty of recording another person’s voice or video without their permission and unauthorised access to personal information will be fined UGX10-million or be imprisoned for a term not exceeding 10 years or both. While considering the penalty on the floor of parliament, Attorney General Kiryowa Kiwanuka said that it was important to provide severe punishment in order for the law to be a deterrent.
Source: The Independent
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