500M to be mobilized for AGIA |Finance Bill Passed into Law in Kenya | AfCFTA Promising Digital Framework | $100 million project between Zambia and Tanzania
African Leaders Rally Support for ‘Alliance for Green Infrastructure in Africa’ at Paris Summit
African leaders, investors, and development partners have expressed their strong support for the Alliance for Green Infrastructure in Africa (AGIA) during the Summit for a New Global Financing Pact in Paris. The AGIA, a collaboration between the African Union Commission, the African Development Bank, and Africa50, aims to raise $500 million for green infrastructure projects in Africa. The initiative plans to mobilize $100 million in grants for project preparation and $400 million in blended financing through grants, concessional resources, and commercial investments for project development.
The roundtable discussion led by African Development Bank President Akinwumi A. Adesina provided an opportunity for African presidents and partners to discuss the AGIA and other climate finance mechanisms in the context of global financial architecture reforms. The leaders emphasized the need for increased access to financing to address the challenges posed by climate change while ensuring a fair and win-win conversation between developed and developing nations.
Source-AFDB News
Finance Bill Passed into Law in Kenya
The Finance Act (“the Act”), 2023 received Presidential assent on 26th June 2023. Most of the changes will be effective from 1st July 2023, which is the Government’s fiscal year, while a few will be effective from 1st September 2023 and 1st January 2024.
The amendments provide a raft of tax policy measures which aim at yielding additional revenue of KShs. 211 billion for the Fiscal Year 2023/24 which is part of the KShs. 2.571 trillion projected revenues for the said year.
It further presents an opportunity for the Government to accelerate implementation of key projects under the Bottom-Up Economic Transformation Agenda (BETA) through rationalized tax policies and fiscal consolidation framework through amendment of statutes that will help fast track the realization of this medium-term agenda (boost manufacturing activities, enhance food security, achieve Universal Healthcare and support construction of at least 50,000 affordable Houses) which are fundamental to improving livelihoods of the public.
Source-Parliament of Kenya
AFCFTA’s Digital Trade Framework Paves the Way for Intra-African Commerce
Africa is facing challenges in promoting intra-African trade due to complex regulations, payment barriers, inefficient logistics, and market access barriers. However, the African Continental Free Trade Area (AfCFTA) has introduced a Digital Trade Framework to address these issues. The framework aims to streamline customs procedures, foster e-commerce, and enhance connectivity among African nations. By embracing digitalization, businesses can overcome physical barriers, improve logistics, and reduce costs, leading to increased intra-African trade and economic growth.
The introduction of the Pan-African Payment and Settlement System (PAPSS) further facilitates seamless transactions, reduces dependence on foreign currencies, and promotes economic independence and stability for African nations. The AfCFTA’s comprehensive coverage of digital trade and the Protocol on E-commerce encourage innovation, investment, and the development of a conducive environment for digital trade to thrive. Embracing digital trade is crucial for Africa to unlock its economic potential, drive inclusive growth, and position itself in the global digital revolution.
Source: Businessday Nigeria
Tanzania’s Taifa Gas and Zambia’s Delta Marimba join forces to build a $100 million LPG energy facility in northern Zambia.
Taifa Gas has revealed a $100 million investment plan to establish a Liquefied Petroleum Gas (LPG) plant in northern Zambia. Through a joint venture with local company Delta Marimba, Taifa Gas aims to commence production within 24 months after receiving necessary approvals from Zambian authorities. The plant is expected to contribute 100 megawatts to the national grid, bolstering power generation in Zambia. Taifa Gas cited favorable investment climate and policies created by Tanzanian President Samia Suluhu Hassan and Zambian President Hakainde Hichilema as the driving force behind the investment.
The investment announcement by Taifa Gas highlights the establishment of an LPG plant in Zambia through a joint venture with Delta Marimba. The project will add 100 megawatts of power to Zambia’s national grid, and it is expected to commence production within two years. Taifa Gas emphasized that the investment decision was influenced by the positive investment climate and policies introduced by the presidents of Tanzania and Zambia. The investment marks a step towards strengthening economic ties between the two countries and capitalizing on the growing energy demand in Zambia, driven by increased copper production and potential energy exports to neighboring countries like the Democratic Republic of Congo and Zimbabwe.
Source: The Citizen
