US Pledges $55b to Africa

Dec 24 , 2022


[ssba-buttons]

Trade, investment, peace and security challenges in Africa are considered the core challenges over the next three years through the eyes of the United States. Following the US-Africa summit, the Undersecretary for Economic Growth, Energy & Environment Jose W. Fernandez reviewed the outcomes by outlining his government's intentions towards Africa. At a press briefing hosted by the US State Department, he stated that the US planned to invest 55 billion dollars in the continent over the next three years. The 1.3 billion population size of the continent offered market potential, especially with the further implementation of the trade agreement. Its leaders recently signed a memorandum of understanding with the Secretariat of AfCFTA, Wamkele Mene. The global ambition towards clean energy has also put the vast lithium resources of the continent in the eyes of the electric supply chain. The Democratic Republic of Congo and Zambia signed a memorandum of understanding in March 2022 to establish lithium processing plants with the US government's assistance. The Undersecretary also emphasised the underutilisation of the African Growth and Opportunity Act (AGOA) by African countries, stating that it was a mass market that provided the trade gateway of 6,500 products with duty-free access to the US markets. According to Jose, this was one of the discussion points President Joe Biden raised with the African leaders. Ethiopia, Mali and Guinea had their preferential trade access terminated in January 2022 due to violating the  AGOA statute. The tight forex crunch has Ethiopia crossing its fingers in the hopes of reinstatement to AGOA following the cessation of hostilities between the federal government and armed forces in Tigray.


Radar

State-Owned Enterprises Deliver, But Fund Seeks More from Underperformers

Ethiopian Investment Holdings (EIH), the country's sovereign wealth fund, closed its annual performance review with a mix of strong gains and lingering concerns across its portfolio of state-owned enterprises. Ethiopian Shipping & Logistics led the year with 4.5 million tons of cargo, driving revenues up 90pc and doubling pre-tax profit. Sugar production from Wonji Shoa, Metehara, and Fincha climbed 34.8pc to 163,290 tons, nearly doubling revenues to 15.6 billion Br, though EIH flagged ch...


Radar

MIDROC Cocoa Drive, Local Production Focus on Value Addition

MIDROC Investment Group is placing a bold wager on cocoa in the lowlands of Sheka. Building on extensive trials at the Bebeka Coffee State Farm, the company has introduced globally prized Forastero, Trinitario, and Criollo varieties alongside coffee. "The results are astonishing," said General Manager Beshada Worku, pointing to international prices that range from 8,200 to 14,000 dollars a ton. The project's first phase covers 50 hectares, with 44,000 seedlings already planted. Expansion to ...


Radar

Bureau Maps Out 1,700 Land Rights in a Month

The Rights Registration & Holding Service Directorate under the Bureau of Land Development & Administration prepared over 1,700 landholding certification maps in a single month. The update came during the bureau's July performance review, which measured progress against the upcoming fiscal year's targets. Director Tesfamichael Endale said efforts are being scaled up to give farmers secure land rights and quicker certification. Deputy Head WendwossenBanjaw added that the priority ahead...