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What ECA says of Africa’s industrialisation

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Abuja, Nov. 26, 2023: The Economic Commission for Africa (ECA) says Africa can industrialise, integrate, and finance its development without depending on outside support.

Mr Adam Elhiraika, Director of the Macro Economic Policy Division at ECA, said that the continent could not afford to continue receiving aid.

”We have the momentum and historical opportunities provided by the African Continental Free Trade Area ( AfCFTA) and the growing integration of African economies.

”Now is the time for African policymakers and economists to move beyond orthodox, mainstream economics theories that used to tell us that we cannot integrate.

”Theories that say we cannot industrialise or finance our development and that we need aid for trade.

”We cannot continue to receive aid to dig and to produce primary commodities that we export for processing elsewhere,” he said.

Elhiraika said it was time for this to stop with industrial strategies that enforced local contexts, promoted regional value chains, or promoted partnerships between public and private sectors.

He then called for integration between Africa’s small and medium enterprises with lead firms and creating economic or manufacturing zones that work for Africa.

The director reiterated the importance of promoting and supporting foreign direct and mystic investments on the continent.

According to him, this will destroy backwards and forward linkages within Africa that produce goods consumed by Africans and then provide export opportunities for African countries.

Elhiraika said the just concluded Africa Economic Conference (AEC) in Addis-Ababa reiterated the various issues hindering industrial development in Africa.

”This includes opportunities for industrial development, challenges, and how they can be addressed.

”The deliberations include plenary sessions, special events, and paper presentations. 35 papers produced by young Africans and experienced African economists were presented during this meeting.

”The key issue being deliberated was how to promote industrialisation in Africa,” he said.

Trade

ECA supports women, youth entrepreneurs in transforming African trade

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Abuja, Oct. 12, 2023:The  Economic Commission for Africa (ECA) has calld for inclusive policies to support women and youth entrepreneurs to accelerate trade development in Africa.

This is contained in a statement issued by the communication department of the ECA.

The ECA’s Principal Regional Advisor for Regional Integration and Trade Division, Brendah Phiri-Mundia during the 14th African Congress for Women Entrepreneurs and 4th COMESA Federation of Women in Business Forum in Addis Ababa.

She said women and youth, have revolutionised entrepreneurship in Africa and they are better positioned to boost trade through the African Continental Free Trade Area (AfCFTA).

The congresses theme is “ Economic Empowerment and Entrepreneurship Promotion for Women and Youth and support of MSMEs for realising AfCFTA and Regional Integration in line with Africa’s Agenda 2063 and UN Sustainable Development Goals (SDGs).

Phiri-Mundia said the congress took stock of progress on tackling challenges in accessing economic opportunities faced by women and youth across the African continent.

She said that the AfCFTA which came into force in May 2019, could advance the global and continental goals on gender equality and women empowerment.

According to the ECA advisor, the full implementation of the free trade area will increase the value of intra-Africa trade to US$195 billion by 2045.

She said this was compared to the base line of US$113 billion recorded in 2020.

“Women have made an undeniable impact in the entrepreneurial landscape with research indicating that Africa alone has more entrepreneurs than other regions for both females and males.

“Sub-Saharan Africa has the highest rate of female entrepreneurs globally with approximately 26 per cent of female adults involved in entrepreneurial activity.

“The ECA’s 2021 Women’s Entrepreneurship Report estimates that reducing gender inequality will boost African economies by US$316 billion,”she said.

Phiri-Mundia said Africa’s youth was a potent force for innovation and economic development with incubators, accelerators and government initiatives helping young entrepreneurs turn their ideas into reality.

She said the ECA recognised the potential of women and the youth in business development and was providing support to Member States across the continent.

She said the support was geared towards the development of gender-responsive and inclusive policies and context-specific interventions to drive women and youth empowerment within the continental integration agenda.

“Support is being provided for gender mainstreaming in national and regional AfCFTA implementation strategies, capacity building of women’s business associations and MSMEs.

“To ensure they also take advantage of the opportunities under the AfCFTA.

“However, the challenges faced by both women and youth entrepreneurs cannot be ignored,” Phiri-Mundia added.

She acknowledged the access to start-up financing, skills development and mentorship promoted by various Women Business Associations and development partners to overcome the challenges faced by women and the youth.

She said ECA had also stepped up its efforts to contribute to addressing the complex issue of collecting gender disaggregated data to support better policymaking and evidence-based advocacy across the continent.

Phiri-Mundia said these efforts include a joint project with the United Nations Conference on Trade and Development (UNCTAD) and the UN Economic Commission for Europe.

She further said it would develop a coherent approach to measuring the impact of trade on gender equality using official statistics and building on the existing statistical data and capacity of countries..

She then called for collective action to amplify collaboration in initiatives that address multiple barriers faced by women and youth.

The advisor said such barriers financed literacy and digital finance, apprenticeships especially in male-dominated sectors, digital skills training and profitability information across sectors.

She said ECA was keen to deepening its partnerships and work towards a future where every woman and youth entrepreneur in Africa not only achieved their aspirations.

“But also transform their dreams into impactful, sustainable enterprises.

UNECA

ECA wants African regulators to supervise credit rating agencies

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Abuja, Aug. 5, 2023: Africa should develop regulatory mechanisms to supervise international credit rating agencies (CRAs) to avoid erroneous assessments that discourage investment on the continent.

A statement issued on the Economic Commission for Africa’s (ECA) website, said these were part of recommendations of “the African Sovereign Credit Review Mid-Year Outlook”.

“African regulators need to develop regulatory mechanisms to supervise the work of international CRAs operating within their respective jurisdictions to ensure proper conduct of business and enforcement.

“It is imperative for regulators to ensure accountability on inaccurate rating opinions issued in Africa,” the report said.

It said a joint report by ECA and the African Peer Review Mechanism (APRM) said in spite a positive economic projections, sovereign credit ratings in Africa was getting worse.

The sovereign credit rating is an independent assessment of the credit worthiness of a country. Sovereign credit ratings give investors insights into the level of risk associated with investing in the debt of a particular country, including any political risk.

The review report further recommended that African countries should regulate the publication of ratings and a rating calendar to curb impromptu rating announcements that disrupt financial markets.

“The recent downgrading of five African countries by the top three CRAs has reversed the optimism amongst investors on the international financial markets that African countries are recovering from the devastating Covid-19 economic shocks.

“ In 2023, Standard and Poor’s, Moody’s Investors Service and the Fitch Group downgraded Ghana, Nigeria, Kenya, Egypt and Morocco.

“Citing increasing government financing needs and pressures from the upcoming ‘wall of Eurobond maturities combined with poorly structured terms of international bonds.

“ Besides, the global credit rating agencies based their downgrades on ‘weakening external liquidity position,” it said.

It said Nigeria and Kenya rejected Moody’s rating downgrades, citing lack of understanding of the domestic environment by the rating agencies.

The statement said both countries argued that their fiscal situation and debt were not as bad as estimated in Moody’s review.

“Moody’s and Fitch also downgraded Egypt in a move that has pushed up its borrowing costs to issue a sovereign bond at over 10 per cent.

“ Egypt currently has the highest sovereign bond value outstanding in Africa at 37.5 billion dollars,” it said.

The report stated that challenges were noted during the review period and these included errors in publishing ratings and commentaries among others.

It said all these resulted in failures to adhere to applicable surveillance policies and procedures.

It called on CRAs to acknowledge weaknesses in their institutional structures and have more analysts in Africa to address challenges stemming from foreign-based assessments.

“Solution to these challenges lies in effective regulation and eliminating reliance on credit rating opinions.

 “Effective regulation should ensure that rating agencies stay independent, keeping up the integrity and quality of the rating process,” it added.

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ECA urges policies to attract green investment, boost trade

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Abuja, May 16, 2023: Economic Commission for Africa (ECA), says Africa should promote policies and infrastructure development to attract green investment and boost trade through the African Continental Free Trade Area (AfCFTA).

The Acting Executive Secretary of ECA, Antonio Pedro, in a statement issued on the commission’s website, said this at the Africa Regional Session of the 12th Annual Investment Meeting in Abu Dhabi.

The theme of the Africa Regional Session is “The AfCFTA Investment Protocol – An Investment Paradigm Shift for Africa.”

Pedro said: “To reap the AfCFTA opportunities we must address Africa’s infrastructure gap.

“To attract sustainable cross-border investments to Africa hard and soft infrastructure must be addressed.

“It is not because of the lack of blueprints, Africa has not achieved structural transformation, but rather the lack of policy space to pursue the agenda.”

He called on African countries to support the implementation of the AfCFTA with harmonised continental, regional and national trade and industrial policies that would help move from ideas into action.

According to him, AfCFTA entered into force in 2019 and constitutes a single continental market with a population of about 1.3 billion people and a combined GDP of approximately 2.5 trillion dollars.

Pedro said at its full realisation, the AfCFTA with the mandate of eliminating trade barriers, would be the largest free trade area in the world bringing together the 54 countries.

He said the AfCFTA and the programme for Infrastructure Development in Africa (PIDA) of the African Union (AU), would help deepen regional integration and build regional value chains.

He highlighted the importance of building beyond Africa’s comparative advantage of resource endowment and low costs.

“We need to invest in Science, Technology and Innovation (STI), to stay competitive in the long run and build Regional Value Chains (RVCs) that can generate more value added to increase market share of African businesses.

“Africa can leverage its natural resources to create sustainable regional value chains such as the battery and electric vehicles value chain in the Democratic Republic of Congo (DRC) and Zambia.

“Green industries are important for Africa’s competitiveness in future net-zero carbon markets” Pedro said.

According to him, an African Carbon Market presents a viable structural approach to attract sustainable investment opportunities, that can drive the continent’s green growth ambition.

In a remark, Nigeria’s Minister of State for Industry, Trade and Investment, Mariam Katagum, emphasised the need to reinvigorate national trade institutions to ensure inclusive and sustainable implementation of AfCFTA.

“For AfCFTA to become an active instrument of change, finance is needed to build capacity of the private sector and build the necessary infrastructure to connect trade paths on the continent,” she said.

Mr Anthony Kamole, Managing Director, DRC National Agency for the Promotion of Investments (ANAPI), said ANAPI was working with the government to identify legal frameworks.

Kamole said the framework would ensure DRC’s industries were leveled with other African countries, regarding standardisation of industries, tax systems, and rules for businesses establishment.

The AfCFTA Secretariat Director, Emily Mburu, said AfCFTA’s potential could be unlocked through free movement of people across the continent, to upgrade industries and leverage on the diversification of other African countries.

Mr Abdoulaye Balde, Managing Director of APIX, said investments in sustainable energy would enable countries to diversify energy resources and reduction in costs of production.

“This can unlock industries’ modernisation and improve the connection of infrastructure- and transportation across the continent.

“Training centers targeting the youth are being established in Senegal to prepare for the quality human resources demand that will emerge from enhanced intra-African trade under the AfCFTA,”Balde said.

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ECA calls for partnership to tap new opportunities in Africa

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The United Nations Economic Commission for Africa, (ECA) has called for the forging of strong partnerships and innovative strategies to tap new opportunities in African countries.

In a statement issued by the Communications Section of the ECA, the commission’s Acting Executive Secretary, Mr Antonio Pedro, said this at an ECA Expo in Addis Ababa, Ethiopia on Tuesday.

Pedro opened a three-day ECA Expo at the United Nations Conference Center in Addis Ababa.

He said with technological advancements and digitalisation of the economy, the crisis in Africa “was a low hanging fruit for regional integration and for harnessing the demographic dividend on the continent”.

“I am confident that the exhibitors will provide participants with the necessary details on their achievements, best practices, and challenges to enable them to identify areas requiring strengthened collaboration and further improvement so that no one on the continent is left behind.”

He also invited stakeholders to provide feedback on the ECA areas of work and those that required improvement.

The feedback was for the commission to deliver on ‘client-focused services that responded to the complexity and dynamism of the environment’.

“This is a must attend event for both internal and external partners, because the benefits of participating in the event are enumerable.”

Pedro, however, said innovation was needed to manage the new and complex challenges on the continent.

Furthermore, he said the African Continental Free Trade Area (AfCFTA) agreement was Africa’s Marshall Plan.

He said the AfCFTA would ensure seamless operation of new vehicles to make trade and investments within the continent and the global market.

“This calls for us to redefine what is our value proposition, what is ECA’s strategic role on the continent?”

He also said the role of the ECA needed to evolve and that it could offer solutions to help Africa and member states achieve the Sustainable Development Goals and Agenda 2063.

Moreover, he said the United Nations Conference on Climate Change, which ended in November, presented new investment opportunities on the continent to create carbon credit markets.

He said it also presented opportunities to deploy renewable energy and find solutions to the energy transition globally. 

He further said the opportunities and challenges facing the continent was bothersome for decision makers tasked with formulating strategies and policies that effectively address problems.

“We need to acknowledge that the continent’s demands are increasingly becoming complex in nature and will require new sets of skills and forms of partnership.”

Furthermore, he said the value of future thinking and foresight programmes as long-term planning tools in strategic policy making had become critical, particularly in the development context of ECA member states.

“We need to be cognizant of the dynamism in the financial landscape brought about by financial liberalisation, technological changes, and market innovation, which require a new set of skills beyond the traditional macroeconomic modelling.

“We must embrace innovative and disruptive thinking to provide practical solutions to real life challenges affecting our member States now and, in the future.”

Pedro, however, said the ECA was aware of cross-cutting issues that required interdependency and collective responsibility, having discussed them in the on-going Accountability and Programme Performance Review Meetings (APPRM). The News Agency of Nigeria (NAN) gathered that the 2022 ECA Expo is showcasing the work of the ECA, with a view to forging new partnerships and strengthening existing ones.

This is to enable the commission to serve its member countries effectively in a rapidly changing and complex environment.

In addition, the expo is celebrating ECA’s achievements in the past three years, while identifying potential areas of synergy where the commission can leverage.

This, also, is to improve efficiency and effectiveness in its strategic areas of focus.

The expo showcases diverse products from divisions and Sub-Regional Offices. 

On display, among others, would be innovative financing mechanisms to bridge the climate finance gap and fiscal and monetary policy reforms to respond to the fiscal space and address debt vulnerability.

ECA

Africa requires $7.1trn ‘New Deal’ to recover from pandemic – ECA

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With many African countries struggling from the shackles of debt servicing amid downward economic trend occasioned by COVID-19, a ‘New Deal’ worth 7.1 trillion dollars has been suggested as the only solution.

This was the position of Mr Antonio Pedro, Deputy Executive Secretary, Economic Commission for Africa (ECA) at the ongoing African Economic Conference (AEC) to chart a new path for Africa’s post-COVID-19 economic recovery.

He likened the proposed New Deal to a similar deal by the US between 1933 and 1939 during the presidency of Franklin Roosevelt.

He pointed out that the American deal then was worth 41.7 billion dollars, an amount which he said now equalled 653 billion dollars.

Pedro said that the new deal for Africa would form part of the external funds required by Africa to, among other things, address the rising risk of African debt defaults amid COVID-19 pandemic.

“On the external front, Africa needs a new deal to recover from the ravages of the pandemic. The Roosevelt’s New Deal cost $41.7 billion at the time it was instituted.

“Given Africa’s current population of 1.37 billion, a New Deal would have to deliver $7.1 trillion in financing to equate the U.S. New Deal on a per capita basis.

“The resources required to financing a New Deal are enormous and cannot be funded exclusively through public resources. Private funding will be critical.

“Yet we are all aware that the cost of private financing is high. At the same time private direct capital investments are motivated more by economic rates of return than by social welfare considerations.

“Blending public financing with private resources can redirect more private investments and financing to social and other orphaned sectors through risk-sharing and risk mitigation,” he said.

He said that the ECA had partnered to launch the Liquidity and Sustainability Facility (LSF) at the margins of CoP26 with the objective of lowering the cost of portfolio investments in emerging markets and crowding in a new class of investors into the continent.

He said that the LSF seeks to use on-lent SDRs to leverage private financing by making it possible for holders of African sovereign bonds to access short term financing using such instruments as collateral.

UNECA

ECA, AUDA-NEPAD sign MoU on Agenda 2063, 2030 SDGs

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The Economic Commission for Africa (ECA) and the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) have signed a Memorandum of Understanding (MoU) to achieve Africa’s Agenda 2063 and the 2030 Sustainable Development Goals (SDGs).
In a statement from the ECA on Tuesday, the MoU was signed at the Africa Union office in New York City on Monday.
The MoU aims to harness synergies arising from the organisations’ mandates and establish the non-binding and non-exclusive arrangements necessary to ensure effective cooperation in areas of mutual interest.
Mrs Vera Songwe, United Nations Under-Secretary-General and ECA’s Executive Secretary, said the MoU was a show of how much the two organisations can pool together and raise their ambitions to achieve what needs to be done.
“Our collaboration will push Africa’s agenda forward, especially within the context of the African Continental Free Trade Area (AfCFTA), which we all believe in.
“We have done well on advocacy in the areas of sustainable energy, climate change, industrialization, digitalization, and health security. But we need to do better on financing. More advocacy is needed for more financing as we prepare for COP26.”
The objectives of the MoU are to implement the joint work programme for the period 2021 to 2023 in six broad priority areas of their respective mandates and functions.
They also are to build resilience for sustainable development in Africa as per Agenda 2063 and Agenda 2030.
Furthermore, the objectives will explore any strategic initiatives that might not be part of ongoing mandate but justified by the importance of unexpected events in line with the six broad priority areas.
Mr Ibrahim Mayaki, AUDA-NEPAD’s Chief Executive Officer, said: “The signing of the MoU shows high level of credibility on issues of development of the continent especially in the areas of priorities on agenda 2030 and 2063.
Mayaki also said the MoU would be a living document that provides deeper cooperation between ECA and NEPAD-AUDA teams.
“To work together, especially as the six areas of cooperation identified in the MoU are in line with what the two organisations have been doing together.”
The operationalisation of the MoU will be guided by the pursuit of a common AU vision through the implementation of the Agenda 2063 in concert with the UN Agenda 2030 for Sustainable Development.
Areas of cooperation under the MoU included, climate resilience and governance; environmental sustainability and natural resources management; sustainable energy, nexus energy-water-food and empowerment of rural communities.
Some others are knowledge management and evaluation, and human and institutional development; science, technology and innovation; economic integration, macroeconomics and governance policy; and wealth creation and industrialisation.
A previous MoU signed with ECA during the time of the then NEPAD Planning and Coordinating Agency (NPCA) entered into force in Oct. 2014 for three years with possibility to be extended for two more years.
The same will apply to the new MoU.

Economic-Commission-for-Africa

ECA partners African MSMEs on implementation of AfCFTA  

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The Economic Commission for Africa (ECA) has begun consultation with African micro, small and medium enterprises (MSMEs) on the implementation of the African Continental Free Trade Area (AfCFTA) using digital platforms.

According to a statement from the Communications Section of the ECA on Friday, the consultation was with business management consultant AUNIQUEI, with funding from the European Union (EU).

Business leaders and experts from across Africa participated in a three-day event, which started on Wednesday, to gain insight into the challenges the agreement posed to small and medium businesses.

In her opening speech, Director, African Institute for Development and Economic Planning (IDEP), Ms. Karima Bounemra Ben Soltane, said the gathering was intended to see how participants could boost the agreement’s implementation.

“The meeting will offer the opportunity for MSMEs to reap the benefits of some of the work ECA is doing on MSME digitalisation and a digital application it is developing to help monitor and correct remarks capable of negatively impacting AfCFTA implementation,” Soltane said.

The director added that the MSMEs should play their part alongside the public sector if the AfCFTA was to succeed.

The director further said Africa was making efforts to ensure the success of the agreement adding that when implemented, it would take Africa’s gross domestic product to 3.4 trillion dollars.

Similarly, ECA’s Senior Regional Adviser, Mr Adeyinka Adeyemi, said the forum’s objective was to seek to build a network of African MSMEs as well as to learn what the AfCFTA meant to the enterprises and to help them make money.

“This meeting constitutes part of the strategy of the ECA to establish a continental network and interactions amongst MSMEs to grant them access to information and understanding on the implementation process as well as the impact of the free trade agreement,” Adeyemi highlighted.

Event facilitator and Chief Executive Officer of AUNIQUEI, Bunmi Makinwa said the bottom line for the agreement was to ensure free movement of goods and services, enhance business interaction, and the prosperity of the continent.

Topics discussed were challenges of AfCFTA implementation, successes and factors that facilitate solutions; and AfCFTA implementation in countries, regions and in the business sectors.

Others were political, economic and financial reforms on reducing the costs of trading; and logistics, infrastructure, and non-tariff measures to improve the investment and business climate.

Participants included representatives of the Economic Community of West African States (ECOWAS), the Federation of West African Chamber of Commerce and Industry (FEWACCI), and women traders groups from across the continent.

The consultation is part of a more extensive project aimed at deepening Africa’s trade integration through the effective implementation of the AfCFTA.

ECA has also been working with its partners including the African Union Commission (AUC), International Trade Centre (ITC), United Nations Conference on Trade and Development (UNCTAD) and a selection of independent trade experts to ensure effective AfCFTA implementation strategies.

The AfCFTA which commenced operations on Jan. 1 is set to create the biggest free trade area in the world with a market of more than 1.2 billion people and a gross domestic product (GDP) of more than 2.5 trillion U.S. dollars.

ONU-Comision-Eco-Africa-UNECA

ECA partners with Africa on data analytics, management

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By Tanko Mohammed

The Economic Commission for Africa (ECA), says it is partnering with African governments to include data analysis and management in governance to build Africa’s resilience to the COVID-19 pandemic.

According to a statement from the Communications Section on Thursday, Mr Oliver Chinganya, ECA’s African Centre for Statistics Director said this in a virtual webinar.

The ECA and the Global Partnership for Sustainable Development Data (GPSDD) on Wednesday hosted a virtual webinar showcasing the power of data partnerships in combating the ongoing Coronavirus pandemic in Africa.

Chinganya said the inception of the ECA-GPSDD partnership was to support countries to better respond to COVID-19 and build Africa’s resilience to the pandemic.

“We have worked with a consortium of partners who have supported the continental and national statistical systems to adapt to the ongoing challenges and revamp statistical production, dissemination and use.

“The idea was to bring the best data, platforms and analytics to combat COVID-19 across Africa,” he said.

The director said the partnership meant working with governments to understand priority data needs, and bringing providers of data, platforms and analytics together in partnership with governments to offer solutions.

He also said it meant putting tested solutions to work, and strengthening systems by ensuring new solutions were sustainable and could be maintained for the long-term.

Chinganya said that it included increasing the effective use of partner resources by targeting the most acute data gaps and minimising duplication, developing skills and capacity to strengthen systems in the long term.

“We set our ambition and target very high by aiming to support more than at least two-thirds of countries working with UN Resident Coordinators, government agencies and other partners,” Chinganya said.

Also, Claire Melamed, GPSDD Chief Executive Officer, lauded the ambition and dynamism of the partners in making sure data informed Africa’s response to the pandemic and created efforts to build forward, better.

Melamed said the partners worked hard to ensure there was timely and accurate data that was well understood by the citizenry and policymakers for informed decisions.

“We must celebrate each other, our achievement and the huge progress that we have made in data.

“We also have to celebrate and recognise the very hard working public servants across the continent who have been responsible for using this data and for turning it into the impact that we have seen and are all proud to have helped to create,” she said.

According to the statement, lessons and information have also been shared among partners and countries for quick adoption and replication of effective solutions.

During the webinar, partners showcased the results of various data partnerships and emerging data stories at the national levels in combating COVID-19.

They also celebrated their achievements and shared experiences and challenges through peer-peer learning from ongoing partnerships and initiatives to inspire replication.

UN Resident Coordinators, National Statistical Offices and surveillance teams were introduced to providers of data, interactive data platforms, analytics and tested solutions in the priority areas.

The partners also explained the process of how participants would gain access to the range of resources and other capacity support made available by the supply side providers.