Browsing: Lesotho

• African countries said to have ‘very high’ tariffs.
• US imposes 50% tariffs on Lesotho.
• Trump tariffs on Africa feared to shut down AGOA.

US tariffs threaten the wellbeing of African economies but at the same time, Africa trade tariffs remain comparatively high affecting trade growth, this according to the World Bank. According to Ajay Banga, the multilateral lender’s President, developing countries, especially in Africa, need to liberalize trade by lowering their tariffs.

The lender’s President is of the view that many African countries have higher tariffs than advanced economies. “Lowering them (tariffs) could offset the risk of reciprocal import taxes,” he advised.

Mr. Banga pointed out that “global uncertainty, triggered in recent months by U.S. tariffs and retaliatory measures announced by China and other countries is contributing to a more cautious business and economic environment.”

The World Bank president cautions that while the impact of US triggered tariffs varies country …

• Since late June, heavy rains have hit parts of Sudan, including South Darfur, Red Sea, River Nile, and Northern states, affecting around 500,000 people.
• In Chad, at least 340 people have lost their lives, and nearly 1.5 million people have been impacted, with over 160,000 homes destroyed by floods.
• Nearly a third of Lesotho’s population—about 700,000 people—are at risk of food insecurity in the coming months due to historic drought gripping the country.

Extreme weather patterns continue to batter Africa, plunging millions of people into a deepening humanitarian crisis. From the ongoing catastrophic floods in Sudan and Chad to the severe drought crippling Lesotho, and other economies in the southern Africa region the impacts of climate change are starkly evident across the continent.

As floods displace families, destroy homes, and disrupt agriculture, drought worsens food insecurity, leaving communities on the brink of disaster.

Sudan and Chad drenched by devastating floods

The Traditional Chinese Medicine (TCM) and Acupuncture Centre at the Parirenyatwa Hospital in Harare, the capital of Zimbabwe, has started training on TCM and acupuncture for the first batch of local health workers to meet the growing demand for Chinese medicine in the country.

According to Xinhua, the centre was established in 2020 as part of efforts to offer Zimbabweans affordable medical treatment and has in recent months seen a multitude of patients seeking medical attention free of charge

Zhu Wei, a TCM doctor and chief of the centre, said the three-month program aims to train a group of local health professionals who can provide an alternative medical option to Zimbabweans.…

Zimbabwe allows for 100% ownership of medicinal cannabis investments, allows for farming on private land, and has put in an added layer of protection called the Investment Stability Agreement.

Recently, Zimbabwe’s President Emmerson Mnangagwa commissioned a US$27 million Swiss Bioceuticals Limited Medicinal Cannabis Farm and Processing Plant in Mount Hampden, Mashonaland West Province.

Farmers Review Africa on May 12, 2022, said Swiss Bioceuticals limited constructed a state-of-the-art medicinal cannabis processing plant, fitted with the first line of medicinal cannabis oil processing. It is also equipped with a cannabis oil processing line aimed at stimulating bio-medical solutions and pharmaceutical products for both local and international markets.…

• The multi-phase project will provide water to the Gauteng region of South Africa and generate hydroelectricity for Lesotho.
• The Lesotho Highland Development Authority will implement the part of the project that falls within Lesotho’s borders.

The board of directors of the African Development Bank Group has approved a loan of $86.72 million to co-finance the second phase of the Lesotho Highlands Water Project.

In a statement, AfDB said the multi-phase project will provide water to the Gauteng region of South Africa and generate hydroelectricity for Lesotho.

The project entails harnessing the waters of the Senqu/Orange River in the Lesotho highlands by constructing a series of dams for the mutual benefit of the two countries.

The Trans-Caledon Tunnel Authority, a state-owned entity in South Africa charged with financing and implementing bulk raw water infrastructure projects, will use the funds to construct the Polihali Dam and reservoir, a 38 kilometer-long water transfer …

The Lesotho Revenue Authority is set to receive a loan of $4.25 million from the African Development Bank Group to provide digital tax services, including e-taxation and e-payment that will broaden the country’s tax base and boost government revenue.

In a statement, AfDB says the funds will be sourced from the African Development Fund, the Group’s concessional lending window and will go to support the Supplemental Financing of the Lesotho Tax Modernization Project.

The project follows the Lesotho Tax Modernization Project (LTMP) approved in November 2017, and for which the African Development Bank Group provided $7.09 million, in financing.

The financing will especially be used to procure and install e-taxation, e-payment, and e-invoicing software and hardware and to integrate financial institutions and mobile money providers into e-payment systems.

Kenya, Lesotho sign three deals to ramp up bilateral ties

According to the Bank’s Director of Governance and Financial Management Coordination, Abdoulaye …

BREXIT trade impacts in Southern Africa

If everything goes according to plan (and that’s a big statement), January 1st shall see the departure of the United Kingdom from the European Union, its single market and customs agreements.

As much as I would like to, it is becoming increasingly hard to believe that the parties will conclude a trade deal in time for the official divorce date. I am sceptical of a “hard” BREXIT as I believe that some sort of policy extension will remain in place for quite some time; anything else would be economic madness and given the current pandemic no politician would allow that to happen. (I know what you might be thinking but, luckily, that kind of stupid is currently reserved for leaders across the Atlantic).

The EU is South Africa’s largest trade partner while South Africa has long and in-depth trade relations with the United Kingdom. …

The Executive Board of the International Monetary Fund (IMF) approved $49.1 million disbursements to Lesotho to help meet the urgent balance of payment needs stemming from the COVID-19 pandemic.

Under the disbursement, about $16.5 million is under the Rapid Credit Facility (RCF) while about $32.6 million from the Rapid Financing Instrument (RFI).

The Pandemic comes at a time when the economy of Lesotho was already facing challenges. For several years, Lesotho’s growth has been subdued reflecting a weak regional environment while its government finances have struggled to cope with the volatility of transfers from the Southern African Customs Union (SACU) that account for around half of total revenues.

Despite Madagascar relatively well-developed social assistance framework that partially mitigates the high levels of poverty, unemployment remains high while the population suffers from one of the highest rates of HIV infection in the world.

As a measure to cushion the impact on …