Author: Giza Mdoe

• Africa is increasing borrowing on global capital markets.
• Eurobonds are the preferred borrowing option for most African countries.
• The IMF advices setup of a rescue plan for African borrowers, in lure of another global crisis.

Africa capital market access is improving as the world markets start seeing a return to lower interest rates. Between 2007 and 2020, more than 20 African countries tapped into international capital markets to finance their ambitious development plans.

According to the International Monetary Fund (IMF), most of these countries opted for Eurobonds issued by global financial centres.

“Along with this access to the markets came scaled-up lending from bilateral lenders, especially China, and continued access to loans from the multilateral organizations like the IMF and World Bank,” reports Gregory Smith, author of ‘Where Credit is Due: How African Debt Can Be a Benefit, Not A Burden’.

But after a pause by big lenders such as …

• Conservation efforts are helping increase the number of black rhinos in the wild.
• Poaching for ornaments and traditional medicines remains the biggest threat to black rhinos.
• Charity WWF reports that over 6000 black rhinos are in the wild today.

Black rhinos are a major tourist attraction in Tanzania, but they are also a key source of treasured ornaments and traditional medicine for China, despite the fact that the country has banned the trade in ivory.

“The main threat to the black rhino is poaching for the international illegal trade in rhino horn. Most, if not all, horn from Kenya and Tanzania is believed to be shipped to Vietnam and China. In the end-user countries, it is ground and used as medicine for a range of ailments, or carved into jewelry or art or preserved whole displayed for status,” reports the World Wildlife Fund (WWF).

However, for decades now, China has …

• Tanzania has received $149.4 million for budget support from the IMF.
• The lender has commended Dodoma’s ongoing economic reform and diversification plan.
• IMF approves $786.2 million for Resilience and Sustainability Facility (RSF) 

Days after the International Monetary Fund (IMF) ranked Tanzania third on its list of top-performing African economies, its Executive Board has announced an immediate disbursement of about $149.4 million for budget support after completing the third review of the country’s Extended Credit Facility (ECF).

“The Executive Board also approved a 23-month arrangement under the Resilience and Sustainability Facility (RSF) of about US$786.2 million to support Tanzania’s efforts to build resilience to climate change,” the IMF reports.

In its report, the IMF attributed Dodoma’s economic performance to the country’s commitment to economic reform and diversification. The multilateral lender noted that the country is currently focusing on attracting foreign investment, promoting sustainable development, and fostering a favorable business climate.

The …

• Chocolate companies are avoiding paying minimum prices to cocoa farmers.
• In Ghana and Ivory Coast, farmers are forced to engage in child labour to maintain optimum cocoa production amid meagre returns.
• Cocoa prices peaked at $12,072 per tonne in February 2024.

Cocoa prices peaked at $12,072 per tonne in February of this year, only to drop to $7,960 per tonne this September, leaving farmers seeking solutions on how to cushion against such adverse price swings.

“Market reports say the world market price of cocoa has witnessed the highest levels of volatility over the past 12 months,” reported the Ghana Food and Agriculture Minister, Dr. Bryan Acheampong.

Ghana is one of the world’s largest producers and exporters of cocoa, one of the highest-priced agricultural food products in the world. To protect her farmers, Ghana has increased the producer price of cocoa by over 129 per cent, the minister announced.

“The cocoa …

• AI security is a major concern for African policymakers who are equally grappling with tools to harness the power of the new technology better to drive economic growth.
• Currently, Tanzania and other African countries are formulating AI security measures.
• Countries may not have to look far for guidance as the UK National Cyber Security Center (NCSC) has developed AI security guidelines that Africa can embrace.

AI security guidelines are increasingly becoming popular among developing countries as most African nations move to secure their cyber assets from the increasing threat of attacks. The need for Artificial Intelligence (AI) security comes even as governments and private sector leaders grapple with a myriad of options on how to tap the power of this new technology best to drive growth.

In East Africa, the Tanzania Bureau of Standards (TBS) has announced it is taking proactive steps to develop standards to ensure Artificial Intelligence (AI) …

• The Malabo Declaration deadline has expired with only a handful of African countries on track.
• Of 51 AU member states, only Rwanda is on course to achieving the 2014 Malabo commitments on financing agriculture.
• In year’s Africa Food Systems Forum in Kigali, authorities cited a myriad of challenges in achieving key goals.

Africa food systems are failing but there is still optimism. This is despite the fact that we are only one year away from the Malabo Declaration’s deadline and only six years to the end of the Sustainable Development Goals (SDGs).

In June 2014, the Malabo Declaration was made in Equatorial Guinea, where all African countries made a commitment to spend 10 per cent of their annual national budgets on agriculture.

“Only four countries achieved the Malabo target of allocating 10 percent of public spending to agriculture (Burundi, DR Congo, Ethiopia and Mali),” writes Moumini Savadogo for Farming First …

• Innovation is the route to business, company, industry and national success story.
• To realize this success, however, governments must create policies that encourage and support innovation at scale.
• For Africa, the jury is still out on the role of governments in driving innovation.

From the developed to emerging to the underdeveloped economies, one thing that policymakers agree is that innovation drives industrial and therefore national progress. It creates opportunity for individuals and investors, grows businesses, and powers a nation’s development agenda. For these reasons, policymakers are advised to place emphasis on innovation.

Matt Banholzer, an economics researcher and author of How innovation can accelerate industry momentum report explains that while macroeconomics concept of development correctly looks at the economy as a whole, policymakers must not be naïve to think policies of the ‘whole’ will foster development of the individual and vice vasa.

The researcher is of the view that policymakers, …

• The World Bank is set to finance a new digital harmonization project across EAC member states.
• Currently, internet prices in the region range from $4.64 in Kenya to $21.06 in South Sudan.
• Integrated connectivity is poised to improve regional trade and boost integration efforts.

EAC internet prices vary greatly among East African countries even though the region boasts of being a single, integrated entity, the East African Community (EAC). The  region is, however, taking action to integrate its connectivity, in particular, lowering by seeking to cut present high internet connection fees and improving cyber security as well.

This ambitious goal is set to be achieved through a new World Bank-backed platform, Eastern Africa Regional Digital Integration Project (EARDIP). Funded by the World Bank, the EARDIP is an undertaking under the Intergovernmental Authority on Development (IGAD).

To achieve these two basic goals— lower internet and telecommunication fees and improved security— the …

• Africa is still in the early stages of the energy transition, and this includes the economic, financial, and societal aspects.
• Across economies, many of the technologies to produce low-emissions steel are relatively nascent, with issues to solve.
• Increasingly, policymakers are realizing that making energy transition from fossils to clean energy is costly.

Net-zero, an energy transition from traditional sources of fuel that pollute the environment to green energy and renewable sources, is the new global call for companies and organizations.

So far, there has been tremendous momentum, especially in the adoption of wind and solar power, electric cars, heat pumps. Climate finance has started to flow, albeit slowly to the Global South, and many companies have made considerable commitments.

“But right now, the world at large is only at about 10 per cent of the deployment of physical assets, that is, the technologies and infrastructure that we will need to …

• China pledges closer economic and trade ties with Africa at 2024 FOCAC Summit.
• Mulit-million dollar deals signed between Africa and China at key summit.
• Annual trade volume between China and Africa to reach $300Bn by 2035

The just concluded Forum on China-Africa Cooperation (FOCAC) Summit has opened new possibilities for Tanzania and Africa’s industry as a whole. Held in Beijing, China, this ninth summit was attended by all 53 African Heads of State or their representative hosted by Chinese President Xi Jinping.

The FOCAC summit has seen President Xi pledge over $50 billion in aid and loans to support what he described as “Africa’s modernization efforts.” He highlighted key funding areas to include infrastructure and agricultural development over the next three years. Notably, President Xi said this new commitment is in addition to China’s zero-tariff policy that was announced earlier to boost trade volume between Africa …