Browsing: Trade

As a high-risk area, Kenya was paying billions to shipping lines for insurance of their goods.

But there is a break. The International Maritime Organisation (IMO) has removed the Indian Ocean from the list of High-Risk Areas (HRA) giving a major boost to trade for Kenya and the wider Eastern African region.

The decision was communicated during the 106th session of the Maritime Safety Committee at the International Maritime Organization in London. This is the UN agency responsible for the safety and security of shipping, by the Best Management Practice (BMP-5). It consists of the five largest global shipping industry associations.

BMP-5 looks to deter piracy and enhance maritime security in the Red Sea, Gulf of Aden, Indian Ocean and Arabian Sea.

Mozambique may, however, be offered a lifeline. In its recent position on CBAM, the European Parliament has proposed an amendment to the CBAM legislation through which revenues generated by the CBAM levy could be used to finance least developed countries’ efforts towards the decarbonisation of their manufacturing industries.

If accepted, the funding could be applied to support the implementation of a green industrialization process in the country fuelled by accelerated investments in Mozambique’s unique renewable energy assets.

The trialogues between the European Parliament, the Commission, and the Council on the design and implementation of the CBAM are expected to continue in the coming weeks, which will lead to a decision on the final form of the CBAM. The result of these discussions will show to what extent the EU will walk the talk on realizing a green transition that “leaves no one behind” and ensures that it supports countries like Mozambique to make the just transition away from fossil fuels and carbon-intensive activities.

Senegal’s oil and gas discoveries account for only 0.07 per cent and 0.5 per cent, respectively, of world reserves.

But Senegal’s Petroleum and Energies Minister Sophie Gladima said, “they are important enough to radically change the economy and industrial fabric of our country and thereby its future prospects.”

“Just exploiting our hydrocarbons will enable us to accelerate public access to electricity and, above all, to lower the cost of production and encourage industrialisation.”

She further underlined the legal framework needed to bring thousands of Senegalese jobs into the sector and the setting up of the National Institute of Oil and Gas to turn out a highly qualified workforce.

Funny enough, Namibia, also admitted as a member, is not yet producing any oil. Namibia recently announced that it would consider joining the Organization of Petroleum Exporting Countries if the oil fields are found to be large enough for commercial development.

Ghana competes in the global economy primarily using natural resources. Other than the usual exports of cocoa, gold, lumber, and crude oil, Ghana has a competitive advantage in numerous product categories. Increasing the proportion of high-income commodities in the export basket hastens economic transition.

The opportunity is providing better, economically advantageous items to regional and worldwide markets. Cocoa processing, wood processing, aluminium products, palm oil, food and agro-processing, and fish processing are examples of manufacturing sub-sectors that fit these two requirements.

Manufacturing subsectors that capture considerable proportions of manufacturing value-added, such as food and drinks, chemicals, and textiles, have significant technology, knowledge, and skills inherent in them. These assets can be used to produce additional goods within the sub-sector or even outside of it. It is also easier to go up the value chain after you have mastered relevant technologies and markets.