Thursday, February 22

Industry and Trade

Offshore gas mining in Nigeria
  • Shell also ventured into offshore gas mining in Nigeria last month
  • In conjunction with gas monetization efforts, Nigeria is leading major pipeline projects for the offshore gas mining project 
  • Nigeria has estimated 203 trillion cubic feet of natural gas

Nigeria is ready to solidify its position in the global oil market by leveraging its vast natural gas reserves through an offshore gas mining facility. With an estimated 203 trillion cubic feet of natural gas, the country strategically positions itself as a leading exporter of Liquefied Natural Gas (LNG) to global markets.

The monumental $5-billion Nigeria LNG Train 7 expansion project is at the core of Nigeria’s ambitions. This initiative aims to increase processing capacity by 35 per cent, from 22 million tonnes to 30 million tonnes annually.

This expansion will enable higher gas volumes to be exported to gas-hungry markets, particularly in Europe, where Nigeria sent 9.4 billion cubic meters …

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african currencies
  • Intra-African Payment Systems is expected to simplify trade among member states on the platform.
  • In West Africa Nigeria, Ghana, Guinea, Gambia, Liberia, and Sierra Leone have joined the Intra-African Payment Systems.
  • 3 Countries in East Africa, Kenya, Rwanda, and Djibouti are among the early members of Intra-African Payment Systems.

The push for a single trading platform for African countries is gathering pace after the Pan African Payment and Settlement System (PAPSS) enrolled the Central Bank of Tunisia (Banque Centrale de Tunisie) as its thirteenth Central Bank member.

The move is seen as a significant stride towards advancing seamless cross-border payment services across the African continent, by uniting central banks from various African nations.

PAPSS, a collaborative effort led by the African Export-Import Bank (Afreximbank), the African Union, and the AfCFTA Secretariat, aims to revolutionize intra-African trade and payments by enabling real-time settlement in African currencies.

The unification of all African …

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  • Luxury Tourism in East Africa has been on an upswing following the reopening of air travel.
  • Marriott and Radisson Blu are leading the line in Investments in Luxury Tourism in East Africa.
  • American hotel brand Marriott International is eyeing over 30 hotel openings  in Africa by the close of 2024

 East Africa has emerged as a magnet for luxury tourists seeking unforgettable experiences, as evidenced by the increasing investments in high-end travel and accommodation in the region.

This region, comprising countries Kenya, Tanzania, Uganda, Rwanda, and others, has witnessed a surge in high-end tourism from global hotel chains pumping investments in the region, drawing discerning travellers from around the globe.

In response, East Africa continues positioning itself as a premier destination for luxury tourism. Stakeholders in the region are capitalizing on this growing trend by investing in upscale accommodations, unique experiences, and sustainable tourism practices.

Luxury hotels are expanding in …

local currencies local currency Tanzania-India relations India-Tanzania relations
  • Tanzania and India have agreed to trade in local currencies weaning off the use of the US dollar.
  • There are advantages of using local currencies in trade versus the traditional dollar.
  • Tanzania and India have also agreed on military, maritime, and space technology cooperation.

India’s Ministry of Foreign Affairs Secretary Dammu Ravi has met with Tanzania’s President Samia Suluhu Hassan with reports emerging that the two leaders have among other things, agreed to trade in Rupees, the sub continent’s local currency.

The decision implies that the two countries, with long-running business ties, will effectively wean off using the king dollar as their ‘gold standard’, instead embracing the Indian Rupee as their common currency in exchange for value.

“When international transactions are denominated in local currencies, countries can avoid currency fluctuations and the associated risks. This stability helps to mitigate exchange rate volatility, reducing uncertainty and facilitating more accurate planning

COP28 food security
  • Analysts observe numerous loopholes in global climate talks, with a failure to address glaring food security concerns.
  • Financial commitments for food systems remain low, affecting implementation, and leaving millions of people hungry.
  • Agriculture accounts for a quarter of global greenhouse gas emissions.

For the very first time, food systems were finally discussed at the just-ended COP28 in Dubai late last year, but analysts are up in arms, asking if it's a 'too little, too late' scenario.

“Given the profound impact of agricultural practices and food consumption patterns on our planet's health, this attention is long overdue,” notes the Alliance for Food Sovereignty in Africa (AFSA) in its review of the COP28 outcome.

Better late than never, so “though the talks' long overdue focus on food and agriculture ultimately disappointed, it provides a starting point for future action and advocacy.”

COP28 was held in Dubai late last year, and while there…

food security in Africa
  • With 65% of the global uncultivated arable land located in Africa, AfDB says there is potential for the continent to feed itself and the rest of the world.
  • The lender is now committing to focus on securing long-term financing for research activities and enhancing researcher CGIAR’s effectiveness across the continent.
  • AfDB and CGIAR also anticipate engaging in capacity building for country-based national agricultural research services partners, young scientists, extension workers, and private-sector seed growers to produce certified seeds.

The African Development Bank Group (AfDB) and the Consortium of International Agricultural Research Centres (CGIAR) have committed to enhancing food security through improved production to offer better nutrition for Africa’s growing population.

This commitment involves strengthened collaboration between the parties, leveraging the robust arable land the continent possesses. “With 65 percent of the global uncultivated arable land, we believe that the continent can feed itself and the rest of the world,” AfDB …

Tanzania sugar shortage
  • Tanzania sugar shortage is sparking unrelenting hike in prices.
  • The government of Tanzania has approved the import of over 100,000 tonnes of sugar.
  • President Samia has pledged to increase sugar production by 2025.

A biting sugar shortage in Tanzania is causing the price of the commodity to skyrocket over the last few months. On the one hand, the sugar shortage is blamed on heavy rains at the end of last year while on the other hand, there are allegations of hoarding and price setting by industry cartels.

With little to no evidence of the latter, the speculations remain just that, mere allegations. However, what is undisputed is sugar shortage and the attendant surge in prices for the sweetener.

Sugar shortage in Tanzania has persisted for almost an entire year now. So profound is the problem that President Dr Samia Suluhu Hassan was forced to issue a public statement explaining the …

horticulture production horticulture sector
  • Tanzania Agricultural and Horticulture Association (TAHA) is leading sector revival.
  • The global horticulture market is projected to reach US$40.24 billion by 2026.
  • The Tanzanian horticulture industry has the potential to earn US$3 billion per annum.

The fresh produce market is projected to reach US$40.24 billion by 2026 growing at an annual rate of 10.2 percent and Tanzania is angling for a pie of these billions from its horticulture sector.

These statistics by Global Market Estimates (GME) show that the global horticulture market averages US$20.77 billion in 2021 and is growing rapidly.

However, African countries such as Tanzania, which has enormous agricultural production potential still lag behind and only get to enjoy a small percentage of the over US$30 billion horticulture market.

“We believe, when we ensure access to information and knowledge including the adoption of appropriate technologies, market access, and advocating for business enabling environment, there is a potential of

global GDP growth
  • The GDP growth projection is based on easing inflation, which is falling faster than expected in most regions.
  • Global headline inflation is expected to decrease to 5.8% in 2024 and 4.4% in 2025, with the 2025 forecast revised down.
  • In sub-Saharan Africa, growth is projected to increase from an estimated 3.3 percent in 2023 to 3.8% in 2024 and 4.1% in 2025.

The International Monetary Fund (IMF) projects global GDP growth at 3.1 per cent in 2024 and 3.2 per cent in 2025, with the 2024 forecast being 0.2 percentage points higher than that in October of last year.

This is due to greater-than-expected resilience in the United States and several large emerging market and developing economies, along with fiscal support in China.

However, the forecast for 2024–25 is still below the historical average (2000–19) of 3.8 percent. Elevated central bank policy rates to combat inflation, a withdrawal of fiscal …

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