South Africa’s loadshedding crisis continues to underline the importance of a stable electricity supply to keep the economy moving. At least for now, the controversial term “baseload” in this country indicates electricity generation from coal and, to a lesser extent, some nuclear. Peak demand has always been met by our pumped-storage schemes that store and release water to generate electricity, as well as open-cycle gas turbines that run on diesel. Increasingly, renewable energy options are adding to capacity and displacing some of the coal-generated supply from ageing power stations, but commercial, industrial and manufacturing enterprises cannot function to capacity without a stable supply of reliable, baseload electricity.



“The point is that South Africa, and indeed the world, needs a mix of energy sources,” says Gcobisa Melamane, clean coal research specialist at the South African National Energy Development Institute (SANEDI). “None of the sources and technologies we currently have can meet the needs of economies and societies on their own.”



South Africa’s Integrated Resource Plan, drawn up by the Department of Mineral Resources and Energy (DMRE) in 2019 and currently under review, recognises this fact by placing coal status quo at more than 80% of the energy mix. While that percentage is targeted to decrease by almost half (42%) by 2030, coal is expected to remain the dominant energy source for the foreseeable future. In addition, the coal mining and energy generation industries employ thousands of people, adding a socioeconomic impact to the process of transitioning from one type of energy sources to another.



South Africa is not alone in its reliance on coal. Over the past year, several of the European countries that had previously sworn off coal had to fire up their coal power stations again to deal with the energy shortages that resulted from geopolitical circumstances in the northern hemisphere.



Melamane adds, however, that it’s not business as usual in the coal space. Significant time, effort and resources are being dedicated to developing technologies that will limit the environmental impact of coal-fired electricity generation. “SANEDI is one of the organisations in the country researching technologies that can make the use of fossil fuels cleaner so that we can keep using it in a more responsible manner in South Africa. We still have abundant coal resources and it remains a cheaper source of energy. We need to use it while we have it, which makes cleaner technologies a necessary and worthwhile investment.”



Against this backdrop, SANEDI launched its Cleaner Fossil Fuels &amp; Related Technologies programme in 2021 to develop a roadmap for the country to improve the environmental footprint of its energy mix.



In terms of fossil fuels, the first phase of the project identified all the technologies that currently exist. In phase two, 18 focal technologies were selected for further study and to understand where and how they are being used globally. In Japan, China and the US, an array of cleaner coal technologies are already in demonstration and even commercial use. The third phase, which kicked off at the end of September this year, is investigating which of the focal technologies are easily adoptable from a grid perspective, taking into account cost of implementation, regulatory compliance and the skills required. The roadmap study is planned to be completed by the end of March 2024 and, once the relevant stakeholders have approved it, South Africa’s roadmap to cleaner fossil fuels will be published.



“Our country is responsible for 2% of global greenhouse gas emissions but that means nothing to people here whose health is impacted by poor air quality,” says Melamane. “Improving human health and living conditions is one of the main drivers of the research we do.”



The focal technologies in SANEDI’s cleaner fossil fuels roadmap include high-efficiency low-emissions (HELE) carbon capture and sequestration, underground coal gasification to produce syngas for power generation with lower levels of greenhouse gases, and equipment to reduce nitrogen and sulphur dioxides and particulate matter in flue-gas emissions. Most of these have been proven capable of reducing harmful emissions by up to 300kgCO2/MWh in international studies. “SANEDI champions collaboration with local and international research organisations to ensure we learn from each other and don’t waste limited resources on redoing work that has already completed elsewhere,” says Melamane.



For as long as South Africa needs coal to help meet its energy demands, the work to limit its impact on the environment has to continue. We simply cannot afford to satisfy our need for electricity at the expense of the health of humans and the environment.

Gcobisa Melamane, Clean Coal Research Specialist SANEDI

Coal still has a place in our energy mix

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="650" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870-820x650.jpg" alt="" class="wp-image-430880" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870-820x650.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870-300x238.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870-114x90.jpg 114w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870-768x609.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1645166870.jpg 1358w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; SEPTEMBER 4: Josefa Leonel Correia Sacko, Commissioner Agriculture, Rural Development, Blue Economy and Sustainable Environment at the African Union Commission speaks during the 1st Africa climate summit at the Kenyatta International Convention Center in Nairobi, Kenya on September 4, 2023. (Photo by Andrew Kasuku/Anadolu Agency via Getty Images)</figcaption></figure>



For millions of people across Africa, livestock are their lifeblood. Animals such as camels, cows, and donkeys, along with goats, sheep, and chickens represent food, livelihoods, draught power, fertiliser, fibre and a convertible source of income, especially if crops fail. Pastoralists rely on livestock to survive in areas where crops cannot grow, and Africa relies on pastoralists to produce half of its meat and milk, a daily glass of which helps children develop both physically and cognitively.



Livestock provide valuable agricultural resilience to climate extremes. The ability to move animals to find feed, water and shade means livestock de-risks crop farming while providing a safety net for failed harvests. Livestock also help diversify rural incomes and are particularly important for women’s empowerment. Meanwhile, managed grazing and manure can help restore degraded land and support biodiversity. Livestock also boost the climate resilience of communities, making them less vulnerable in face of shocks, and better able to rebuild in the aftermath of disasters.



Because of this, livestock keeping in Africa should be seen as a credible climate solution – a solution with legs. Helping animals and herders to adapt to climate stresses and shocks can prevent critical food and economic losses and meet rising demand, while also supporting animal welfare and protecting the most vulnerable in the face of rising temperatures and unpredictable rains.



However, increasingly frequent and prolonged climate extremes are making it harder for livestock-keepers to adapt in time to sustain a growing population. More than 13 million livestock have died during the ongoing and unprecedented drought across the Horn of Africa. Thousands of animals have been killed during flooding in Niger, and new conditions are impacting the spread of livestock disease. It can take up to five years for farmers to recover from these losses if at all, according to UN reports.



We call on Parties at COP28 to urgently make the case for more climate finance to support adaptation for sustainable livestock systems in Africa. We urge high-income countries to meet their commitment to provide $100 billion per year in climate finance for developing countries. And we urge African countries to make the adaptation of livestock systems a core part of their climate strategies. As of last year, the continent received only 11 per cent of its total climate finance needs at just $30 billion, and less than one per cent of climate finance reached the livestock sector.



Adapting Africa’s livestock sector to a changing climate must be a priority at COP28 for the sustainable development of a continent that has contributed under three per cent of historic global greenhouse gas emissions. This includes developing more reliable forages and feed, more resilient breeds of indigenous livestock, more resilient animal health systems and support services, such as digital information tools, finance and index-based livestock insurance. Livestock should be included in national disaster risk reduction plans so that they are protected as important assets in the face of climate-related disasters.



Improving small-scale livestock resilience goes hand in hand with reducing emissions. Expanding simple, improved practices on smallholder farms and preventing livestock losses can reduce greenhouse emissions by up to 30 per cent, while boosting productivity, animal welfare, food security and incomes.



Climate adaptation within Africa’s livestock sector presents a unique opportunity to sustainably feed and support a quarter of the world’s population by 2050. In short, for Africa to feed itself, we need to invest in livestock. It is not only an economic issue but a form of climate justice. For many of Africa’s 800 million herders and smallholder farmers, a future without livestock is a future without life.

1st Africa Climate Summit kicks off in Kenya

Open Letter to World Leaders and Parties to the Paris Agreement ahead of COP28

Geneva, Switzerland, 28 November 2023&nbsp;– Transitioning to a more sustainable and carbon-neutral future, $13.5 trillion in investments will be needed by 2050, particularly in the production, energy and transport sectors, according to a new World Economic Forum report.



The&nbsp;Net-Zero Industry Tracker 2023, published in collaboration with Accenture, takes stock of progress towards net-zero emissions for eight industries – steel, cement, aluminum, ammonia, excluding other chemicals, oil and gas, aviation, shipping and trucking – which depend on fossil fuels for 90% of their energy demand and pose some of the most technological and capital-intensive decarbonization challenges.



The report, published the same week as the United Nations called at COP28 for “dramatic climate action” to close an “emissions canyon”, outlines pathways to accelerate the decarbonization of emission-intensive production, energy and transport industries.&nbsp;While the pathway to net zero in these sectors will differ based on unique sectoral and regional factors, investments in clean power, clean hydrogen and infrastructure for carbon capture, utilization and storage (CCUS) will be needed to accelerate industrial decarbonization across most sectors.



“Decarbonizing these industrial and transport sectors, which emit 40% of global greenhouse gas emissions today, is essential to achieving net zero, especially as demand for industrial products and transport services will continue to be strong,” said Roberto Bocca, Head of Centre for Energy and Materials, World Economic Forum. “Significant infrastructure investments are required, complemented by policies and stronger incentives so industries can switch to low-emission technologies while ensuring access to affordable and reliable resources critical for economic growth.”



According to the report, the $13.5 trillion in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, nuclear and geothermal, electrolyzer costs for clean hydrogen and carbon transport, as well as storage costs.



The Net-Zero Industry Tracker proposes a comprehensive framework of emissions drivers and enablers to measure progress and identify gaps, scorecards for each industry, and opportunities for cross-sector collaboration. Building on the 2022 edition, the updated report includes transportation sectors and applies the framework to identify strategies for net-zero industrial transformation.



The report’s findings underscore the urgency for creating a robust enabling environment, including low-emissions technologies, infrastructure, demand for green products, policies and investments. In addition to increasing capital expenditures to decarbonize existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure.



Share of global GHG emissions for heavy industrial and transport sectors



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="956" height="856" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph.jpg" alt="W" class="wp-image-430686" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph.jpg 956w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-300x269.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-820x734.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-101x90.jpg 101w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/WEF_Image_Graph-768x688.jpg 768w" sizes="(max-width: 956px) 100vw, 956px" /></figure>



The majority of the technologies needed to deliver net-zero emissions are expected to reach commercial maturity after 2030, highlighting the need for collaborative approaches to research, develop and scale them. This includes substituting legacy technologies with low-emission alternatives, increasing efficiency of processes and machinery, electrification and driving circularity.



“It is imperative that action is taken soon to both decarbonize and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8% on average the past three years, will increase very significantly by 2050,” said Bocca. “But industrial leaders can&nbsp; respond through new collaborative ways of working and innovating, for example within&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=5e48b8e30b&amp;e=d66be97e93">industrial clusters</a>&nbsp;and by fostering best practices, sharing infrastructure in important areas like clean hydrogen and CCUS and building &nbsp;demand for lower-emissions products.”



According to the report, carbon pricing, tax subsidies, public procurement and development of strong business cases can support in mobilizing necessary investments. However, raising capital for high-risk projects with unproven technologies could be challenging in the current macroeconomic environment. Institutional investors and multilateral banks, therefore, can play an important role by providing access to low-cost capital linked to emissions targets; equally vital is adapting financial models to the needs of various industries and regions.



“Collaboration between the public and private sectors is critical to a successful energy transition, and technology can be a key enabler in both managing affordable and reliable access to clean energy and addressing the incremental cost of decarbonization,” said Muqsit Ashraf, who leads&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=095135a5bd&amp;e=d66be97e93">Accenture Strategy</a>. “Widespread scaling and adoption of clean power, carbon capture and storage, and energy efficiency technologies across sectors are vital for progress. Additionally, business model innovations can also help stimulate demand and accelerate industrial decarbonization — achieving&nbsp;<a href="https://weforum.us3.list-manage.com/track/click?u=6308fe51b420dc9ff3834abc8&amp;id=08ae963912&amp;e=d66be97e93">net-zero objectives</a>&nbsp;and a resilient energy transition.”



The report acknowledges that recent policy developments can push the industrial net-zero transformation in the right direction. While some advanced economies are enacting large-scale policy measures, emerging economies – which will account for a larger share of future demand for industrial products and transport services – will need help accessing low-emission technologies and solutions.



The report also calls for industrial sectors to focus on the following five areas, and details specific actions for each of the sectors as part of its individual scorecard:



<ul>
<li>Technology&nbsp;– Prioritize clean power technology across most sectors, commercially scale CCUS in cement, and improve technology to reduce costs for clean hydrogen development.</li>



<li>Infrastructure&nbsp;– Promote shared infrastructure, such as industrial hubs and clusters.</li>



<li>Demand&nbsp;– Create a standardized framework for low-emissions products, a simple emissions-intensity calculator and an auditable carbon-footprint assessment process, improving consumer transparency.</li>



<li>Policy&nbsp;– Align on emissions reduction requirements globally, with policies customized to suit individual country needs and enhance market transparency to increase emission intensity visibility.</li>



<li>Capital&nbsp;– Improve transparency for low-emissions and low-carbon alternatives, strengthen demand signals and reduce capital expenditures through shared infrastructure development.</li>
</ul>



“The Net-Zero Tracker 2023 explores in detail how low-carbon solutions and infrastructure will contribute to increasing the pace of decarbonization in hard-to-abate industries,” said Stephanie Jamison, Accenture’s global Resources industry practice lead and global sustainability services lead. “This depth is essential to help companies create sustainable value and impact as they strive to achieve net-zero carbon emissions.”

power-station-pollution-energy-electricity

Net-Zero Industry Tracker: $13.5 Trillion Investment Needed to Fast-Track Decarbonization of Key Hard-to-Abate Industry Sectors 

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-820x525.jpg" alt="" class="wp-image-426248" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-1536x983.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/07/XQ3CLFTD3JI4XIFC4ZMYKDHA5E-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A wind turbine produces renewable energy outside Caledon, South Africa, May 20, 2020. Picture taken May 20, 2020. REUTERS/Mike Hutchings//File Photo</figcaption></figure>



Despite contributing a mere 4% of global greenhouse gas (GHG) emissions, Africa disproportionately bears the brunt of climate change’s devasting impacts. In fact, Just Transition Africa emphasises that Africa is especially vulnerable owing to its debt burden, high levels of poverty and absence of food, water and energy security.



With Africa’s key role in the net zero transition, the just transition’s tenets of environmental, social and climate justice ought to be firmly embedded within international and national policy mechanisms for net zero. However, even coming to a consensus on what exactly the just transition means for the continent has proven to be a roadblock for African leaders and the international community.



In September 2023, the inaugural African Climate Summit saw the conspicuous absence of leaders from South Africa, Nigeria and Uganda over how the low-carbon transition ought to proceed. Where some in the international community have argued that a low-carbon transition has no room for fossil fuels, some African leaders believe that the immediate energy and economic needs of the African people need to be met first.



At the heart of these tensions seems to lie a disagreement over what is considered ‘just’, and how that justice ought to be delivered. How then do we move Africa’s urgently needed just transition forward?



An opportunity and not a burden



Currently, the World Economic Forum estimates that between 2022 and 2030, Africa alone will need US$2.8 trillion to fulfil its nationally determined contributions under the Paris Agreement. However, global climate finance flows were only at US$ 1.3 trillion for 2021/2022, illustrating a significant investment gap across climate mitigation and adaptation.



This investment gap has been one of the largest roadblocks in Africa’s just transition. On the one hand, Africa faces calls from the international community to rapidly decarbonise and phase out fossil fuels completely. On the other hand, Africa requires significant pools of affordable energy to meet economic and social needs but often find that renewable energy is more expensive and less secure than traditional fossil fuels.



African nations are often not averse to a low-carbon transition. However, without the right financial incentives and technical assistance, premature commitments to phase out fossil fuels only leave African leaders frustrated at their inability to exploit at-hand resources while having no financially viable alternative.



Moving forward requires the ‘just transition’ to be framed as an opportunity – not an undue burden. Commitments to the transition need to be backed with the necessary international green financing, knowledge sharing and institutional capacity building. Ultimately, an approach that restricts rather than incentivises will only exacerbate existing political tensions and draw the global community further away from its ‘just’ goal.



There is no just transition without a just economic system



The just transition not only pays attention to net zero but also demands the establishment of a globally just economic system. As Kenyan President William Ruto notes, the global financial system is “outdated, dysfunctional and unjust” and Africa has suffered as a result.



Fossil fuels extracted from Africa are largely planned for export, resulting in the removal of resource and the repatriation of profits to foreign lands, leaving little behind to support Africa’s economic development. Similarly, voluntary carbon markets that have been promoted as sources of green income have been subjected to profit repatriation. International brokers and verification bodies operating outside of Africa but within Africa’s carbon markets can charge up to 70% of the value of an offset credit, severely reducing the revenue that reaches local communities. Moreover, credits verified by the same standards generate US$7–9/credit in Africa, while credits generated in the EU and Japan are fetching more than $100/credit.



Enhanced national, regional and international governance measures need to be in place to ensure that Africa’s resources are valued fairly and that profits remain with the African people. International institutions such as the World Trade Organisation must advocate for trade that firmly incorporates just principles. If any value is truly to be derived from the low-carbon transition for Africa, the global value chain must be addressed.



Justice must not be an afterthought



Africa’s just transition and its dignified and prosperous future will not be achieved without significant change. The just transition must be led by a firm commitment to rethink, remedy and repatriate. Justice must sit firmly at the heart of all climate action.

FILE PHOTO: Wind turbines produce renewable energy outside Caledon

Moving Africa’s ‘just transition’ forward

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="692" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-820x692.jpeg" alt="" class="wp-image-398637" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-820x692.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-300x253.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-768x649.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-1536x1297.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1160291643-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SANDTON, SOUTH AFRICA MARCH 07: Standard Bank Group CEO Sim Tshabalala during the banks annual results presentation at Morningside on March 07, 2019. Tshabalala said, economic growth in the country will remain suppressed until some of the reforms undertaken by the government start boosting confidence. (Photo by Freddy Mavunda/Sowetan/Gallo Images via Getty Images)</figcaption></figure>



Johannesburg November 2024 – Last week was difficult. Standard Bank was once again publicly accused of currency manipulation, of being opposed to the South African government, and – in some quarters – even of treason.&nbsp;&nbsp;



Standard Bank has not manipulated the value of the Rand. Standard Bank has not engaged in any anti-competitive or criminal conduct. Standard Bank is committed to always behaving with complete integrity.&nbsp;&nbsp;



However, in a strange and painful way, last week was also a very good one for those of us who care about South Africa’s rule of law, democracy, and economic performance. Here’s why.&nbsp;&nbsp;



Under our rule of law, the relevant legal and administrative processes are not thrown off course by dramatic statements and viral social media messages. The Competition Appeal Court continues to hear evidence on the alleged Rand fixing case, with one of the judges asking, in relation to Standard Bank ‘What is the point of pursuing this?  And, surely there&#8217;s massive injustice to a bank to be hauled in front of the Tribunal on a cartel case, where in fact there&#8217;s plausible evidence – more than plausible, incontrovertible evidence, that they&#8217;re not part of the deal?’&nbsp;&nbsp;



The Reserve Bank, too, continues to exercise its mandate. Relatively soon after these allegations were first made, in 2015, the Reserve Bank found ‘no evidence of malpractice or serious misconduct in the South African foreign exchange market… [and that] the foreign exchange market in South Africa is competitive.’ This month, the SARB released a technical paper showing that convergence in Rand markets is ‘in the main, a rational response to public information, indicating central bank credibility.’ and the lack of collusion in being able to manipulate the Rand. These kinds of legal and technical processes don’t make the headlines. But, in the end, they are what counts. In South Africa, rationality will prevail.&nbsp;&nbsp;



The week demonstrated the health of our democracy in general – and of our free media and social media in particular. Voices alleging illegal and unpatriotic behavior by the banks were robustly challenged. Nobody was silenced. Nobody will be silenced. As befits our democracy, vigorous debate continues. As an additional benefit, curious South Africans were given a very comprehensive crash course in how foreign exchange markets work. It wasn’t pretty, but we all emerge with our rights reconfirmed, and better informed about these complex markets.&nbsp;&nbsp;&nbsp;



This controversy also gives Standard Bank another very welcome chance to explain to our fellow South Africans how we think and what we do.&nbsp;&nbsp;



The first thing to emphasise is that Standard Bank never hides behind legal tactics or claims of confidentiality, unless any particular matter is before the courts and is sub judice. When we discovered in 2015 that some employees of our subsidiary in Tanzania had committed crimes, we immediately self-reported this and accepted the fines and sanctions. When we discovered that some employees had opened accounts unethically (but not illegally) in South Africa in 2020, we were transparent while the matter was being investigated and informed all the affected parties. Our track record shows that if we had done anything illegal in the foreign exchange market, we would have admitted and reported it immediately.&nbsp;&nbsp;



We’re not playing for time or looking for a deal. When we say that we are innocent of currency manipulation, we mean it.&nbsp; We will not settle.&nbsp; Where we find that our people have engaged in wrongful conduct, we will act swiftly and will work with the relevant authorities.&nbsp;&nbsp; Where we find no evidence of wrongdoing, we will protect and defend our people &#8211; our most valuable assets.&nbsp;&nbsp;



Next, we put a lot of time and resources into promoting more investment and faster growth in South Africa. Standard Bank’s long term performance depends on the success of the economy and on the economic wellbeing of our clients.&nbsp;



As several cabinet ministers will be able to confirm, last month alone, we were among the main sponsors and main speakers at two major conferences – SA Tomorrow and the AGOA Forum &#8211; devoted to encouraging investment in South Africa.&nbsp; We do this by emphasising South Africa’s fundamental stability, strong rule of law, economic resilience, competitiveness, and improving prospects &#8211; thanks in large part to structural reforms that the government is implementing.&nbsp;&nbsp;



We’re patriots who would never undermine this country. But we won’t sit back idly either or toe the line. As South Africa – and Africa’s – largest private sector financial institution, we believe we have a right and a duty to comment on economic and financial sector policy. When we see errors, or opportunities to do better, in these areas we call them out. For instance, we will continue to argue vigorously for the reforms needed to improve South Africa’s competitive advantages, to reduce the cost of capital, and so to accelerate growth and job creation.&nbsp; Right now, for instance, faster reforms to the transport sector, far wider use of public-private partnerships across the public sector, and more effective law enforcement are top of our list. Since banks depend on trust and on contracts, a strong rule of law is absolutely vital to us.&nbsp;



But we will never comment outside our mandate. And we will never make a statement for, or against, any political party or individual politician. We exist to serve the economic development of South Africa and to help South Africans flourish. All South Africans. We don’t take sides. We stand on the side of sound universal principles that seek to advance the cause of ordinary people, the Constitution and the rule of law. &nbsp;



We do everything in our power to support our clients through good times and bad. We are always looking for ways to increase the financial and economic inclusion of our fellow South Africans and Africans. Everything we do emerges from this perspective, and all our activities aim to create sustainable growth and inclusive value.&nbsp;&nbsp;



For example, over the first half of this year, we kept R1.8 trillion in deposits safe for our clients, and we paid R45 billion in interest on those deposits to the individuals, corporates and governments who entrusted their savings to us. We managed R1.4 trillion in assets – which is mostly money that people are saving for their pensions or that they are relying on in retirement. Over the first half of the year, we also paid out more than R11 billion to clients in annuities and for death and disability claims.&nbsp;&nbsp;



At the end of the first half of 2023, we held a stock of R1.4 trillion in loans. Our aim is that each loan brings people closer to realising their aspirations. For instance, we lent R22 billion to small and medium enterprises across Africa to grow their businesses, and we registered R1.4 billion of affordable housing loans in South Africa, bringing the number of clients we have provided loans to for affordable homes to more than 98 000.&nbsp;&nbsp;



Last year, we spent R12.5 billion with black-owned suppliers, and paid R6.5 billion in tax to the South African government. Through our membership of the Banking Association and Business Unity South Africa, we are strong supporters of the government-business collaborations on energy, logistics and&nbsp;&nbsp; tackling crime and corruption. Many of our colleagues lend their skills and time to improve the performance of SOEs and other important public entities.&nbsp;



Finally, as I write this during a weekend of stage 6 loadshedding, I’m pleased to say that Standard Bank has so far funded nearly 4000 MWh of new electricity generation in South Africa – that’s equivalent to four stages of loadshedding once it all comes online.&nbsp; Far from undermining South Africa we are, literally, helping to keep the lights on.&nbsp;&nbsp;



No matter what anybody says or thinks about us, that’s not going to change. As proud and committed South Africans, we will always uphold our Constitutional obligation to ensure that our country ‘improves the quality of life of all citizens.’ We will continue to seek out opportunities to work with all stakeholders to fulfil this obligation.

Standard Bank CEO Sim Tshabala presents annual results

Banking on the rule of law – Sim Tshabalala  

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-820x547.jpg" alt="" class="wp-image-429000" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/Michael-Muhangi-HiRes-image.jpg 2000w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Michael Muhangi, Head of Trans-Regional Clients, Africa Regions for Business and Commercial Banking at Standard Bank Group</figcaption></figure>



The Africa of 2023 is a continent that is embracing new opportunities. As it moves to exploit commonalities existing between neighbours, the advantages of intra-Africa trade are taking cooperation between countries to new levels. Trade agreements are gathering momentum, and traditional trade barriers are crumbling.



With the gradual elimination of political, economic, and regulatory barriers has come a need for financial institutions to adopt a strong trans-regional focus. For South Africa, which has always been a dominant market and trading power, encompassing both local corporations and family-owned businesses that have the potential to expand into Africa, the challenge is to ensure that it is ready to accept the inevitable competition that is looming on the horizon, says Michael Muhangi, Head of Trans-Regional Clients, Africa Regions for Business and Commercial Banking at Standard Bank Group.&nbsp;&nbsp;



“Already, we are seeing a change across the continent. Levels of economic activity are increasing as intra-Africa trade gathers momentum. The potential future challenge for market share means that South African financial institutions, including Standard Bank, should be looking at how they take advantage of the changes sweeping across the continent.



“Competitive strategies and tactics are essential if the growing opportunities emerging from increasing trade and initiatives such as the African Continental Free Trade Area (AfCFTA) agreement are to benefit South African companies looking for opportunities on the continent.



“What is required is a focus on available opportunities and a strong commitment from South African institutions to identify and evaluate projects or market niches that their clients could explore.”



In this consulting and supportive role, significant contributions can be made to help accomplish a smooth transition and alter the status of clients from being substantial players in local markets to businesses with a growing, sustainable African footprint, says Muhangi.



He adds that South African institutions should use their insights into their clients’ businesses, stirring in ingredients such as their broad areas of expertise, their experience, and their presence in various African markets, as well as their ability to create bespoke solutions, in order to create a recipe for clients’ growth in Africa.



Companies generally require support as they expand into new markets and become trans-regional clients. This support can be provided in the form of trade information and market intelligence, assistance with the identification of opportunities in key sectors, guidance on regulatory and legal requirements, and introductions to potential local partners within existing bank client bases.



“Stronger integration within the political and economic unions of West Africa (ECOWAS), East Africa (EAC) and Southern Africa (SADC) is easing the process of expanding into those markets, and the AfCFTA with its continental reach is further accelerating the unification of those trading blocs,” says Muhangi.



“There is no doubt that a wide, exciting road into Africa is opening. Many companies making the journey will originate from South Africa, which has the distinct advantage of having large, mature, and advanced market sectors and experienced local corporate leaders looking for new ventures and opportunities.”



Driving South African companies’ interest in markets to the north are local realities that make up the challenging economic environment facing their enterprises. These realities include loadshedding, crowded and competitive market sectors, and reduced consumer disposable income. All these factors make the search for alternative markets a viable option.



“Ultimately, trans-regional clients want to do business through a full-service continental bank that connects the dots across regions and helps fulfil their business needs. They want a full suite of services delivered with uniform levels of expertise and quality.”



Meeting these client expectations as a continental bank is not fully possible unless the supporting relationship, service and risk models are optimised, and all stakeholders work together to achieve a common cause. A keen and deliberate focus on these fundamental requirements is essential if we are to become the ‘go-to’ business bank on the continent, says Muhangi.



For Standard Bank, being a truly continental bank positioned to service a growing trans-regional client base means being the dominant business bank in all the markets within which it operates.&nbsp;&nbsp;



“The Standard Bank Group is actively developing African strategies and preparing for a continental future. Our view is that Africa will increasingly become a desirable investment destination. Besides its diverse markets and vast labour pool, its attractions include countries showing steady GDP growth and opportunities for a wide range of businesses across a multitude of sectors.



“Africa is beckoning trans-regional businesses. Standard Bank will be there, helping them succeed,” says Muhangi.

Michael-Muhangi-HiRes-image

Africa’s continental integration offers opportunities for cross-border expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-820x547.jpg" alt="" class="wp-image-428829" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/GettyImages-1760555842-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Attendees arrive for the African Growth and Opportunity Act (AGOA) forum in Johannesburg, South Africa, on Friday, Nov. 3, 2023. The US aims to ensure that its preferential trade pact with Africa is replaced without interruption when it expires in two-year&#8217;s time, while bringing it up to date. Photographer: Leon Sadiki/Bloomberg via Getty Images</figcaption></figure>



Africa is often characterised as a continent poised for economic growth and development. Often, prosperity and development in Africa can be linked back to exports and the benefits that they generate.



This brings to the forefront the African Growth and Opportunity Act (AGOA) and its role in opening American markets to 35 African countries, as well as the African Continental Free Trade Area (AfCFTA), which aims to increase socio-economic development, reduce poverty, and make Africa more competitive in the global economy through the elimination of tariffs on most goods and the promotion of intra-African trade.



The roots of AGOA and AfCFTA explain it all. AGOA, enacted by the United States in 2000, gives African countries duty-free and quota-free access to the American market for a wide range of products ranging from agricultural goods to manufactured items. Its aims are to promote economic development in Africa through trade, enhance US–African economic relations, and diversify the African export base. However, access is not unconditional and remains subject to ongoing assessment and compliance hurdles put up by the Act’s eligibility criteria.



The AfCFTA trade agreement, launched by the African Union, aims to create a single African market for goods and services by eliminating tariffs and non-tariff barriers to trade. To date, 47 countries&nbsp;have ratified their instruments of the AfCFTA agreement, and 46 have ratified and deposited their instruments of ratification. Seven countries have yet to ratify and only one country has yet to sign. &nbsp;



Progress in creating the world&#8217;s largest free trade area is, therefore, well underway towards achieving its objective of creating the world’s largest trading bloc by stimulating intra-African economic growth.



The synergy between these two initiatives is seen in the fact that AGOA offers significant opportunities for African countries to diversify their export markets whilst, AfCFTA enables African nations to reduce their dependence on traditional trade partners. To get the best of both worlds, African businesses should, therefore be simultaneously exploring both agreements and maximising their export opportunities.



AGOA offers incentives to encourage Africans to develop outward-looking sectors while AfCFTA, through its larger African market, will enable businesses to hone and specialise their activities by aligning themselves with the competitive advantages that the two treaties offer. Moreover, both programmes foster export-oriented industries.



As they gear up and prepare to embark on global export adventures, African industries can effectively use the increased opportunities offered by AfCFTA to build supply chains, increase capacity, and grow production volumes as they prepare to move into global markets.



Crucial to success, and a topic of everyday business conversation, is that regardless of whether we target only continental markets or also American markets, opportunities need infrastructure. Africa is moving strongly to put transport, logistics and communications networks in place. There can be no greater incentive for this growth than booming export opportunities and associated benefits for participating countries.



With trade comes regulation. It is in this field that massive benefits lie. If AGOA and AfCFTA work together to promote regulatory harmonisation across Africa by aligning regulations and standards, unsurpassed opportunities could be opened for African businesses. Compliance costs would be reduced, competitiveness would increase, and African products would be more attractive to international buyers.



Besides infrastructure development, Africa requires significant investment. Foreign direct investment (FDI) plays a pivotal role in fostering economic growth and generating employment opportunities. The synergy and collaboration between AGOA and AfCFTA have the potential to stimulate FDI, thereby promoting technology transfer, and job creation across the continent.



Investment in one country could spur the opening of multiple continental markets, plus access to preferential markets to the consumer base in the US.



Naturally, these economic benefits will not come without challenges, which include addressing non-tariff barriers, ensuring compliance with rules of origin, and overcoming infrastructure deficits.



In implementing their AGOA benefits, African countries cannot rely solely on capacity-building support but must help themselves. Furthermore, being AGOA-eligible does not guarantee that they will fully exploit AGOA benefits and achieve their AfCFTA goals.



The potential impact of global economic conditions and changing US trade policies on AGOA should also be considered<s>. </s>Barring these constraints, all of which are resolvable, AGOA and AfCFTA offers two powerful, complementary instruments for promoting African exports and economic growth and propelling African nations towards becoming global trading powerhouses.

The African Growth and Opportunity Act Forum

Exploring synergies between AGOA and AfCFTA: the case for African exports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="437" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-820x437.jpg" alt="" class="wp-image-428197" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-820x437.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-300x160.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-160x85.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800-768x410.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/cnbc-africa-1500-800.jpg 1500w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Television business news&nbsp;channel CNBC Africa is introducing a new newsreader on Friday – and it’s an artificial intelligence-powered avatar.



The avatar, a blend of AI and human likeness, is modelled on Chanel Retief, who works for Africa Business News (ABN), the parent of CNBC Africa.



The channel said the new AI is designed to augment human productivity, not replace it.



The AI newsreader will work in tandem with CNBC Africa’s team of journalists, analysts and anchors to create “a mix of human expertise and technological efficiency”.



The world’s first AI anchor debuted in November 2018 at an internet conference in China.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="SA industry panel formed to advance digital transformation" width="500" height="281" src="https://www.youtube.com/embed/m_1FoKhFNjQ?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Modelled on China’s state-run Xinhua News Agency’s Zhang Zhao, the new anchor learns from live videos and is able to work 24 hours a day, reporting via social media and on the Xinhua website.



Watch CNBC’s AI anchor in the video above — the AI newsreader is on from the one-minute, 2o-second mark.&nbsp; –&nbsp;© 2023 NewsCentral Media

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CNBC Africa gets a new anchor – and it’s an AI avatar

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="234" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-820x234.jpg" alt="" class="wp-image-428105" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-820x234.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-300x86.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-160x46.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-768x220.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-1536x439.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/blog-2099x600-gfsr-ch-2-interest-rates-mongkolchon-adobe-stock-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Credit: Mongkolchon/Adobe Stock</figcaption></figure>



The world’s central banks have unleashed the steepest series of interest-rate increases in decades during their two-year drive to tame inflation—and they may not be done yet. Policymakers have raised rates by about 400 basis points on average in advanced economies since late 2021, and around 650 basis points in emerging market economies.



Most economies are absorbing this aggressive policy tightening, showing resilience&nbsp; over the past year, but core inflation remains elevated in several of them, especially the United States and parts of Europe. Major central banks therefore may need to keep interest rates higher for longer.



In this environment, risks to the world economy remain skewed to the downside, as we detail in in our&nbsp;<a href="https://www.imf.org/en/Publications/GFSR/Issues/2023/10/10/global-financial-stability-report-october-2023?cid=pr-com-AM2023-GFSREA2023002&amp;utm_medium=email&amp;utm_source=govdelivery">Global Financial Stability Report</a>. Though this latest assessment of vulnerabilities is similar to what we noted in April, the acute stress we saw in some banking systems has since subsided. However, we now see indications of trouble elsewhere.



One such warning sign is the diminished ability of individual and business borrowers to service their debt, also known as credit risk. Making debt more expensive is an intended consequence of tightening monetary policy to contain inflation. The risk, however, is that borrowers might already be in precarious positions financially, and the higher interest rates could amplify these fragilities, leading to a surge of defaults.



<h2 class="wp-block-heading" id="h-eroding-buffers">Eroding buffers</h2>



In the corporate world, many businesses suffered closures during the pandemic, and others emerged with healthy cash buffers thanks in part to fiscal support in many countries. Firms were also able to protect their profit margins even though inflation had picked up. In a higher-for-longer world, however, many firms are drawing down cash buffers as earnings moderate and as debt servicing costs rise.



Indeed, the GFSR shows increasing shares of small and mid-sized firms in both advanced and emerging market economies with barely enough cash to pay their interest expenses. And defaults are on the rise in the leveraged loan market, where financially weaker firms borrow. These troubles are likely going to worsen in the coming year as more than $5.5 trillion of corporate debt comes due.


<div class="wp-block-image">
<figure class="aligncenter"><a href="https://www.imf.org/en/Blogs/Articles/2023/10/10/higher-for-longer-interest-rate-environment-is-squeezing-more-borrowers?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://content.govdelivery.com/attachments/fancy_images/USIMF/2023/10/8343161/5018241/gfsr-chapter-1-chart-1_crop.jpg" alt="chart showing looming debt in maturing bonds and loans by year for various economies"/></a></figure></div>


Households too have been drawing down their buffers. Excess savings in advanced economies have steadily declined from peak levels early last year that were equal to 4 percent to 8 percent of gross domestic product. There are also signs of rising delinquencies in credit cards and auto loans.



Headwinds also confront real estate. Home mortgages, typically the largest category of household borrowing, now carry much higher interest rates than just a year ago, eroding savings and weighing on housing markets. Countries with predominantly floating rate mortgages have generally experienced larger home price declines as higher interest rates translate more quickly into mortgage payment difficulties. Commercial real estate faces similar strains as higher interest rates have resulted in funding sources drying up, transactions slowing, and defaults rising.



Higher interest rates also are challenging governments. Frontier and low-income countries are having a harder time borrowing in hard currencies like the euro, yen, US dollar and UK pound as foreign investors demand greater returns. This year, hard currency bond issuances have occurred at much higher coupon—or interest—rates. But sovereign debt concerns do not only apply to low-income countries, as the recent surge in longer-term interest rates in advanced economies has demonstrated.&nbsp;


<div class="wp-block-image">
<figure class="aligncenter"><a href="https://www.imf.org/en/Blogs/Articles/2023/10/10/higher-for-longer-interest-rate-environment-is-squeezing-more-borrowers?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://content.govdelivery.com/attachments/fancy_images/USIMF/2023/10/8343148/5018242/gfsr-chapter-1-chart-2_crop.jpg" alt="chart showing levels of bond issuance in emerging market economies from 2010-2023"/></a></figure></div>


By contrast, major emerging economies largely do not face this predicament given better economic fundamentals and financial health, although the flow of foreign portfolio investment into these countries has also slowed. Material amounts of foreign investment have left China in recent months as mounting troubles in its property sector have dented investor confidence.



<h2 class="wp-block-heading" id="h-spillover-effects">Spillover effects</h2>



Most investors appear to have shrugged off mounting evidence that borrowers are having repayment troubles. Along with generally healthy stock and bond markets, financial conditions have eased as investors appear to expect a global soft landing, in which higher central bank interest rates contain inflation without causing a recession.



This optimism creates two problems: relatively easy financial conditions could continue to&nbsp;<a href="https://www.imf.org/en/Blogs/Articles/2023/07/27/inflation-remains-risk-confronting-financial-markets?utm_medium=email&amp;utm_source=govdelivery">fuel inflation</a>, and rates can tighten sharply if adverse shocks occur—such as an escalation of the war in Ukraine or an intensification of stress in the Chinese property market.



A sharp tightening of financial conditions would strain weaker banks already facing higher credit risks. Surveys from several countries already point to a slowdown in bank lending, with rising borrower risk cited as a key reason. Many banks will lose significant amounts of equity capital in a scenario where high inflation and high interest rates prevail and the global economy tips into recession, as we explore in a forthcoming GFSR chapter. Investors and depositors will scrutinize the prospects of banks if their stock-market capitalization falls below the value of balance sheet, causing funding problems for the weak bank. Outside of banking system, fragilities are also present for nonbank financial intermediaries, such as hedge funds and pension funds, that lend in private markets.



Reassuringly, policymakers can prevent bad outcomes. Central banks must remain determined in bringing inflation back to target—sustained economic growth and financial stability is not possible without price stability. If financial stability is threatened, policymakers should promptly use liquidity support facilities and other tools to mitigate acute stress and restore market confidence. Finally, given the importance of healthy banks to the global economy, there is a need to further enhance financial sector regulation and supervision.

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Higher-for-Longer Interest Rate Environment is Squeezing More Borrowers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="234" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-820x234.jpg" alt="" class="wp-image-427750" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-820x234.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-300x86.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-160x46.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-768x220.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-1536x439.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/blog-2099x600-gender-imf-photos-52054762405-364cf455bd-6k-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Narrowing the gap between the share of men and women who work is one of the very important reforms policymakers can make to revive economies amid the weakest medium-term growth outlook in more than three decades.



With global growth predicted to languish at just&nbsp;<a href="https://www.imf.org/en/Blogs/Articles/2023/04/19/world-economic-outlook-shows-economies-facing-high-uncertainty?utm_medium=email&amp;utm_source=govdelivery">3 percent</a>&nbsp;over the next five years and with traditional growth engines sputtering, many economies are missing out by not tapping women’s potential. Only&nbsp;<a href="https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS?utm_medium=email&amp;utm_source=govdelivery">47 percent</a>&nbsp;of women are active in today’s labor markets, compared with 72 percent of men. The average global gap has fallen by only 1 percentage point annually over the past three decades and remains unacceptably wide.



To blame are unfair laws, unequal access to services, discriminatory attitudes and other barriers that prevent women from realizing their full economic potential. The result is a shocking waste of talent, leading to losses in potential growth.



We estimate that emerging and developing economies could boost gross domestic product by about 8 percent over the next few years by raising the rate of female labor force participation by 5.9 percentage points—the average amount by which the top 5 percent of countries reduced the participation gap during 2014-19. As the <a href="https://www.imf.org/en/Blogs/chart-of-the-week?utm_medium=email&amp;utm_source=govdelivery">Chart of the Week</a> shows, that’s more than the economic “scarring,” or output losses, inflicted on countries by the pandemic.


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="539" height="539" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/gender-blog-chart-v2_crop.jpg" alt="" class="wp-image-427749" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/gender-blog-chart-v2_crop.jpg 539w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/gender-blog-chart-v2_crop-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/gender-blog-chart-v2_crop-90x90.jpg 90w" sizes="(max-width: 539px) 100vw, 539px" /></figure></div>


Policymakers can of course lift growth in many ways, from governance reforms to strengthen institutions, to financial reforms to unlock capital for investment, as discussed in a&nbsp;<a href="https://www.imf.org/en/Blogs/Articles/2023/09/25/how-reform-can-aid-growth-and-green-transition-in-developing-economies?utm_medium=email&amp;utm_source=govdelivery">recent IMF blog</a>. Complementing these reforms with measures to narrow gender gaps would greatly amplify these returns.



Unfortunately, present policies do not come close to closing gender gaps. Many researchers say it’s inevitable that women’s labor force participation will eventually reach that of men, even if it takes centuries. But gender gaps are unlikely to ever close if present policy trends persist, as we show in a new&nbsp;<a href="https://www.imf.org/en/Publications/WP/Issues/2023/09/13/When-Will-Global-Gender-Gaps-Close-537981?utm_medium=email&amp;utm_source=govdelivery">research paper</a>.



Our analysis of three decades of data shows that countries have made progress increasing women’s participation, but economies of all income levels experienced several setbacks—a result of shocks, crises and policy reversals. The pandemic, for example, eroded progress closing gender gaps, especially for&nbsp;<a href="https://www.imf.org/en/Publications/WP/Issues/2021/03/03/COVID-19-She-Cession-The-Employment-Penalty-of-Taking-Care-of-Young-Children-50117?utm_medium=email&amp;utm_source=govdelivery">women with young children</a>. Setbacks like this cause scarring that slows and often reverses progress toward gender equality.



As a result, gender gaps in labor force participation will narrow but never close if countries continue on their present policy path. Gaps would remain large for most countries, exceeding 16 percentage points in one out of ten countries.



Countries must step up efforts to break down barriers to women’s participation in the labor market—such as limited access to education, health, assets, finance, land, legal rights, and care services. They should systematically take account of how macroeconomic, structural, and financial policy packages impact women. The IMF’s&nbsp;<a href="https://www.imf.org/en/Publications/Policy-Papers/Issues/2022/07/28/IMF-Strategy-Toward-Mainstreaming-Gender-521344?utm_medium=email&amp;utm_source=govdelivery">gender strategy</a>&nbsp;aims to assist member countries in these efforts.

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Countries That Close Gender Gaps See Substantial Growth Returns

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="543" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-820x543.jpg" alt="" class="wp-image-427716" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-820x543.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-1536x1017.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/beautiful-african-agriculturist-farm-using-laptop-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Beautiful African agriculturist in the farm using laptop</figcaption></figure>



There is more than enough evidence that gender inequality has far-reaching ramifications for various sectors, with the toll heavily borne by women, limiting their potential to be agents of change. Tackling the inequalities facing women is not only a moral imperative; it just makes economic sense. If women had equal access to and decision-making power over productive resources, income-generating activities, education, and services, there would be direct positive impacts on the income, food security, and nutritional status of their households and, ultimately, society as a whole.



Urgent change is needed, and there is evidence that real change is possible. Recent findings suggest that system-level policy innovations to entrench women&#8217;s empowerment and gender equality in agrifood systems are underway across Africa, as revealed in a recent report by the&nbsp;<a href="https://www.mamopanel.org/" target="_blank" rel="noreferrer noopener">Malabo Montpellier Panel</a>&nbsp;of agriculture experts.



The report,&nbsp;<a href="https://www.mamopanel.org/resources/women-agrifood-systems/" target="_blank" rel="noreferrer noopener">BRIDGING THE GAP</a>: Policy Innovations to Put Women at the Center of Food Systems Transformation in Africa,&nbsp;demonstrates that agrifood systems that are purposefully designed to work equally for women as for men have the potential to contribute to more equitable, resilient, and healthier societies.



The research focused on four systematically selected African countries – Ethiopia, Ghana, Rwanda, and Togo, proposing an action agenda with crucial areas for policy intervention and scaling across the continent.



Several African countries have, in recent years, taken great strides in building greater access to agricultural services – including finance, extension, and more – which support more gender-equal agri-food systems.



Science and technology offer concrete avenues for women&#8217;s empowerment, with wide-ranging benefits and relevance for their participation in Africa&#8217;s agrifood systems. While the number of female graduates with core science, technology, engineering, and math (STEM) degrees in Africa is steadily growing and stands at 47 percent in 2023, women remain underrepresented in STEM careers. Science-driven education and information offer women opportunities to adopt and adapt new production technologies and methods, diversify assets and activities, and increase productivity and income. Technical training must go hand-in-hand with mentorship and targeted leadership to build a sustainable pipeline of female scientists at all levels of the agrifood value chain.



Another crucial area of intervention is Agricultural extension services to enhance productivity levels and incomes. Evidence suggests that having a greater share of women extension agents will facilitate food system transformation. For instance, the Ethiopian Network for Gender Equality in Agriculture (ENGEA), established by the Ethiopian Ministry of Agriculture and Natural Resources (MoANRs) in 2015, delivers interventions to ensure equal access to extension services through decentralization initiatives, bringing such services – which are vital in boosting farmer production and resilience – closer to farming households and traditionally marginalized groups, such as women, nationwide.



In the area of&nbsp;Finance, an incontrovertible sector with far-reaching impact on women’s involvement in Africa’s agrifood systems, several African governments are committing more funding to support women’s access to agricultural tools, technologies, and finance. For instance, Ghana’s agricultural investment package has committed more than $11 million to subsidize agricultural technologies for women. Meanwhile, Togo has committed to legislative reform guaranteeing women’s access to land ownership while abolishing taxes that hinder women’s entrepreneurship.&nbsp;



Political empowerment must be a key priority area for African countries. For example, Rwanda leads not only the African continent, but the whole world, in ensuring female representation in political participation and leadership. The Rwandan National Women’s Council, which oversees the election of Women’s Committees from village to national levels, plays a key role in ensuring women from rural areas are included in policy and decision-making – a vital prerequisite to gender equal food systems.



Filling the consumption gap to guarantee gender equality in nutrition is vital, not only for promoting a better standard of health for the entire population, but also for driving economic growth. African countries are now making progress on delivering gender equality in nutrition through greater investment and policy attention. Rwanda’s Village Nutrition Schools (VNS), for example, are an innovative approach to promoting mothers’ and children’s health through education and providing them with important nutritional information. Currently, more than 1,800 village nutrition schools operate across the country, helping more than 6,600 children recover from acute levels of malnutrition.



As shown by these four countries, policy innovations and interventions that are proven to boost gender equality in agri-food systems are sorely needed. These measures are achievable and can be accelerated by embracing some of the policy lessons presented in the Malabo Montpellier Panel&#8217;s report.



As Africa undertakes the pivotal task of defining its post-Malabo agenda, it is time to redouble efforts and level the playing field to mainstream women&#8217;s empowerment and ensure that future food systems work for them.

beautiful african agriculturist in the farm using laptop

Gender equality can accelerate Africa’s food systems transformation – Here are 5 ways to make this happen

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="216" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-820x216.jpg" alt="" class="wp-image-427712" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-820x216.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-300x79.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-160x42.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-768x202.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-1536x405.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/ssa-country-focus-debt-crisis-hero-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Public debt in the region has risen to levels not seen in decades



The average debt ratio in sub-Saharan Africa has almost doubled in just a decade—from 30 percent of GDP at the end of 2013 to almost 60 percent of GDP by end-2022. Repaying this debt has also become much costlier.



The region’s ratio of interest payments to revenue, a key metric to assess debt servicing capacity and predict the risk of a fiscal crisis, has more than doubled since the early 2010s and is now close to four times the ratio in advanced economies. As of 2022, more than half of the low-income countries in sub-Saharan Africa were assessed by the IMF to be at high risk or already in debt distress.



These trends have sparked concerns of a looming debt crisis in the region. A recent&nbsp;<a href="https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2023/09/15/Navigating-Fiscal-Challenges-in-Sub-Saharan-Africa-Resilient-Strategies-and-Credible-529230?cid=cf-com-APCFSFSSACEA">IMF paper</a>&nbsp;offers possible solutions to prevent this from happening. It identifies&nbsp;five policy actions&nbsp;African governments can take&nbsp;to preserve the sustainability of public finances, while also achieving the region’s development goals.



<figure class="wp-block-image"><img decoding="async" src="https://www.imf.org/-/media/Images/IMF/News/Country-Focus/2023/Charts/September/ssa-cf-debt-crisis-chart-1.ashx?w=1300px" alt=""/></figure>



1. Set a course: re-anchor fiscal policy through a credible medium-term strategy



In most sub-Saharan African countries, fiscal policy focuses excessively on short-term goals and is not guided by a clear medium-term strategy. This lack of anchoring has resulted in frequent breaches of fiscal rules and ever-increasing public debt levels.



A more strategic approach to fiscal policy would be preferable by setting explicit debt targets that integrate key policy trade-offs between debt sustainability and development objectives, rather than focusing narrowly on short-term fiscal deficits. The&nbsp;<a href="https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2023/09/15/Navigating-Fiscal-Challenges-in-Sub-Saharan-Africa-Resilient-Strategies-and-Credible-529230?cid=cf-com-APCFSFSSACEA">paper</a>&nbsp;suggests a novel approach to estimating country-specific medium-term debt anchors, which ensures that debt service costs remain&nbsp;manageable. According to this methodology, the median debt anchor for the region is about 55 percent of GDP; slightly more than half of the countries were above their anchor at end-2022.



2. Get ready: undertake fiscal adjustment to bring debt back to a safer level



IMF staff analysis shows that most countries in the region will need to reduce their fiscal deficits in the coming years. For the average country, the amount of adjustment is about 2 to 3 percent of GDP.



This adjustment seems feasible given historical experience—in the past, countries in sub-Saharan African countries improved their primary balance by 1 percent of GDP a year over two to three years.



But not all countries face the same challenge. About a quarter of the region’s economies still have some fiscal space and can use it to maintain and even increase vital investments in human and physical capital. On the other hand, a few countries have very large adjustment needs; for them, it is unlikely that fiscal consolidation alone will be enough to ensure fiscal sustainability. It may need to be complemented by debt reprofiling or restructuring.



<figure class="wp-block-image"><img decoding="async" src="https://www.imf.org/-/media/Images/IMF/News/Country-Focus/2023/Charts/September/ssa-cf-debt-crisis-chart-2.ashx?w=1300px" alt=""/></figure>



3. Chip in: mobilize more domestic revenue



Sub-Saharan African countries tend to rely excessively on expenditure cuts to reduce their fiscal deficits. Although this may be warranted in some circumstances, revenue measures, like eliminating tax exemptions or digitalizing filing and payment systems, should play a greater role. Mobilizing domestic revenue is less detrimental to growth in countries where initial tax levels are low, whereas the cost associated with reducing expenditures is particularly high given Africa’s large development needs.



While difficult to achieve, large and rapid increases in revenue have been observed in some countries like The Gambia, Rwanda, Senegal, and Uganda, which relied on a mix of revenue administration and tax policy measures.



4. Shore up the house: strengthen budget institutions to improve the implementation of fiscal plans



Policy changes are more likely to yield tangible results if fiscal institutions are strong and efficient. On the expenditure side, well-designed plans too often yield disappointing results due to budgetary slippages or an unforeseen materialization of fiscal risks. Adopting a medium-term fiscal framework, putting in place tools to better assess and manage fiscal risks, and enhancing controls over government expenditure during the budget implementation phase are key to avoiding such pitfalls.



Strong expenditure controls—by strengthening the legal budgeting framework, improving fiscal reporting, and empowering audit and control institutions—are particularly important, as they help countries avoid budgetary slippages, as well as decrease the risk of extra-budgetary commitments, which are widespread in the region.



5. Get people on board: anticipate public resistance to reforms



The sustainability of a new fiscal strategy also depends on the government’s ability to secure public support by linking the policy measures to longer-term benefits. Public acceptance should be a central consideration in policy design—for instance, by sequencing reforms carefully and introducing compensatory measures.



Communication campaigns that transparently and credibly outline the long-term benefits of the reform, its distributional consequences, and the costs of inaction are also critical. Public acceptance of reforms depends more generally on the ability of governments to convince the population that they will use public funds in an efficient, fair, and transparent manner.

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

How to Avoid a Debt Crisis in Sub-Saharan Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-820x567.jpg" alt="" class="wp-image-427594" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-300x208.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-768x532.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1-1536x1063.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1.jpg 1864w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Patrick Mweheire, Regional Chief Executive, East Africa, Standard Bank Group</figcaption></figure>



East Africa is poised to unlock new pathways for trade, development and growth. This comes as businesses, regulators and banks find and drive new direct investment, launch projects and close gaps to financial inclusion, providing a powerful tailwind for broader Pan African trade.



It is little to no surprise that the recently published African Development Bank 2023 East Africa Economic Outlook says East Africa will register the highest regional economic performance on the continent in 2023 and 2024, with growth figures at over 5%. The key now is to move forward with initiatives that grasp the opportunities to accelerate growth.



These trends were also reflected in Standard Bank’s recent six-month results to 30 June 2023, where East Africa grew its headline earnings a stellar 55% to $95.6 million. Key markets like Kenya, Uganda, Tanzania and Ethiopia, where Standard Bank has a strong and growing presence, all helped drive this growth, with positive upside ahead, notably as incentives and commitment to drive investment and trade gain ground. Standard Bank is currently laying the ground to ignite further growth in East Africa through strategic capital and capacity interventions, as it positions itself as a leader in the region.



After all, there are approximately 10 million small and medium enterprises and other commercial businesses that spread across East Africa, which contribute significantly to the economies in which they operate, driving GDP growth and providing significant employment opportunities. These value chains will spark renewed avenues for trade, development and growth going forward.



An example of this potential in action on the ground, Stanbic Bank Uganda, part of the Standard Bank Group and Uganda’s largest commercial bank by assets, is making integral moves to help connect more Ugandans to the digital highway. This comes as Uganda prioritises smart policies to solve societal challenges and spark economic growth guided by the national development plan, Uganda Vision 2040. According to the United Nations Development Programme (UNDP), Uganda has made noticeable progress in its digitisation journey by strengthening its mobile network coverage to meet the needs of its growing digital-first population. Over four million new mobile subscribers are expected to be live by 2025 in Uganda. To open the doorway to these opportunities, Stanbic Uganda has already adopted IBM’s Cloud Pak for Integration to help in its broader drive to accelerate digital transformation, maximise operational efficiency, reduce integration costs while onboarding new application programming interfaces (APIs) securely, and offering banking-as-a-service.



The benefits and success of regional development is profound. For instance, Standard Bank recently assisted a Kenyan manufacturer to produce paper locally, replacing expensive international inputs with domestically sourced wastepaper and sugar cane by-products. As a result, many more local exporters now have branded boxes made to order at home, at a fraction of the cost of imported products.



Similar moves are taking shape in Ethiopia, where government has undertaken a wide range of activities over the past years to improve the financial sector and this is sparking digital banking (including the introduction of M-Pesa), interest free banking and capital market growth, among others. Within the last two years alone, more than 3 million Ethiopians have managed to get access to loans utilising the digital banking system.



The upcoming second Uganda-South Africa trade and investment summit on September 5-6 in Kampala is a good example of how local and foreign businesses are playing an increasingly prominent role in supporting the East African government in its drive to attract foreign direct investment. Areas being targeted include agro- industrialisation, steel manufacturing, tourism and the energy sector. Businesses across banking, financial services, telecoms, food and beverages as well as retail are all taking advantage of the broad value-chain opportunities and potential, including the easier framework for doing business.



I expect these and other trends to drive trade and investment to gather pace from here, judging by the commitment being shown by the likes of Stanbic Uganda to facilitate, support and grow these new trade avenues.



Available statistics from the Bank of Uganda show that the value of the country’s exports to South Africa continues to grow doubling to US$ 21.24 million in the past 10 years up to 2022. However, the pace of growth has slowed in recent years. According to Uganda Investment Authority, Uganda’s exports to South Africa include cotton, gold, fish fillets, tobacco, coffee, and fresh flowers. However, the value of South Africa’s exports to Uganda decreased from US$ 251.6 million to US$ 127.6 million during the same period. South Africa’s exports to Uganda include machinery, vehicles, plastics, chemicals, electronics, parts and accessories, petroleum, live animals, books and newsprint, textiles, footwear, aircraft, and household goods. There is today, a real commitment to improve and grow these trade opportunities, both in Uganda and further afield, into the heart of Africa itself.



The above progress and new commitments to do business and invest in East Africa is why the African Development Bank projects mid-term economic growth in the region to accelerate to 5.1% in 2023 and 5.8 % in 2024, outpacing all the other African regions. This will be largely driven by growth in Rwanda, Uganda, Ethiopia, Kenya, Djibouti, and Tanzania. East Africa’s real GDP will continue to be propelled by its excellent services sector, contributing almost half of the economic growth in 2022.



It is now up to the private and public sectors to continue this good work and for investors to take advantage of the immense opportunity on our doorstep.

Patrick-Mweheire-Chief-Executive-Stanbic-Bank-Uganda-1

Major investment drive sparks East African trade and development – sustaining the continent’s progression, including South Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-820x547.jpg" alt="" class="wp-image-427490" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/kyle-glenn-nXt5HtLmlgE-unsplash-1.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Credit: Unsplash/Kyle Glenn</figcaption></figure>



By Abir Ibrahim, Community Lead, Regional Agenda, Africa, and Marushia Gislén, Community Lead, Europe and Eurasia, World Economic Forum



The push to accelerate the green and net-zero transition presents both opportunities and significant challenges. For Africa and Europe, achieving a successful transition brings to light the importance of strengthening existing economic ties between the two continents. However, it is a historically complex relationship, and the question is whether it can be rebuilt on equal terms?



The vulnerabilities exposed in global supply chains during the pandemic emphasized the importance of sourcing critical raw materials closer to home. For Europe, the energy price shock following Russia’s invasion of Ukraine in February 2022 forced it to further rethink its supply chain dependencies, step up its net-zero ambitions and strengthen legislative measures, including through the proposal of a <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1661">Critical Raw Materials Act (CRMA)</a>. In order to achieve its climate neutrality targets, Europe faces a pressing need to increase the availability of critical raw materials while, at the same time, it is imposing stricter <a href="https://www.hinrichfoundation.com/research/wp/digital/digital-standards-meet-a-rising-tide-of-extraterritorial-traceability-mandates/">sustainability and traceability</a> requirements for business. These may have direct impact on the ability of producers in developing countries to continue exporting to the European Union.



Africa is home to some 90% of global critical minerals needed for renewable energy, such as cobalt, chromium, platinum, aluminium and uranium. This, together with its geographical proximity to Europe, positions it as a key partner for Europe. The benefit of such a partnership is, however, far from one-sided. The International Energy Agency (IEA) estimates that 600 million people across the continent lack access to energy, almost half the continent&#8217;s population. Africa’s population will double by 2050 and will put additional upward pressure on energy demand; the need to step up energy efficiency measures and renewable capacity is clear. The green transition is key to unlocking sustainable long-term growth prospects and improving living standards.



While national climate plans in Africa go a long way to greening the economy, Africa is currently not fully benefitting from the opportunity created by the global transition to net zero. According to Climate Policy Initiative, Africa receives only about <a href="https://www.climatepolicyinitiative.org/publication/landscape-of-climate-finance-in-africa/">2% of global investments</a> in renewable energy and 12% of the finance it needs to successfully mitigate the effects of climate change and transition to net zero. Equitable trading partnerships, comprehensive green skill programmes, and net-zero technologies are essential to spur progress.



Creating tangible benefit for African countries becomes even more important in the context of geopolitics and strong regional voices seeking to detangle the region from European influence, instead looking to strengthen ties with other global players such as China and Russia. This burgeoning movement seeks equitable partnerships transcending historical disparities. Recognizing these goals and fostering collaborative initiatives for shared growth is crucial. Failing to cultivate a successful partnership between Europe and Africa would yield detrimental consequences for both continents: Africa’s growth prospects could suffer as Europe&#8217;s long-term competitiveness plummets.



<h2 class="wp-block-heading" id="h-a-partnership-with-mutual-benefits">A partnership with mutual benefits</h2>



Africa and Europe are progressively forging a path towards a more balanced and equitable collaboration, based on objectives of mutual growth and development. This direction was further underscored by European Commissioner van der Leyen in her State of the Union Address on September 13. A notable initiative in this direction is the <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/stronger-europe-world/global-gateway_en">Global Gateway</a>; leaders from Africa and EU have committed a €150 billion investment to boost smart, clean and secure links in digital, energy and transport sectors and to strengthen health, education and research systems in Africa.



Africa is also strategically fostering regional value chains facilitated by the <a href="https://au-afcfta.org/">African Continental Free Trade Area (AfCFTA)</a>. However, the President of the African Development Bank, Dr. Akinwumi Adesina, stated that “to unlock AfCFTA’s potential, we must not just trade. We must turn the zone into an industrial manufacturing zone. Free Trade Zones that launch prosperity around the world have done so not by trading low value commodities, but by industrial manufacturing. Africa’s wealth must no longer depend on exports of raw materials but of finished value-added products.”



To industrialize, Africa must solve its major challenge with very low access to electricity. The future of electric cars in the world depends on Africa, given its extensive resource deposits in rare minerals, especially lithium-ion, cobalt, nickel and copper. The size of the electric vehicles market has been estimated to reach $7 trillion by 2030 and $46 trillion by 2050. Developing a labour market for the production of lithium-ion batteries in Africa will be three times cheaper than in other parts of the world.



This is where the EU can help Africa: “With its institutional knowledge and investment power to support capacity-building,” as noted by Valdis Dombrovskis, the Executive Vice-President of the European Commission. “This can promote better product quality, more innovation and reduce costs. As a result, our partner countries will be in a strong position to move up the value chain themselves.”



The EU&#8217;s engagement extends to close collaboration with both public and private stakeholders, underscoring commitment to nurturing economic connections and stimulating employment opportunities in Africa. The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) play pivotal roles in engaging the private sector, rendering financial support in the form of loans and related services. These financial endeavours are directed towards advancing sustainable progress in critical sectors, such as mining, infrastructure, and energy.



<h2 class="wp-block-heading" id="h-rebalancing-through-the-private-sector">Rebalancing through the private sector</h2>



The endeavours undertaken to improve and strengthen the economic collaboration are testament to the evolving nature of their partnership and the genuine aspiration to cultivate a future where historical imbalances are addressed in a diplomatic and constructive manner. While EU companies are the main source of direct investments in Africa, the European private sector could have an enhanced impact by adding higher value roles to their domestic hiring, setting up skills training programmes, and enabling leapfrogging by transferring modern technologies to increase productivity levels. Fostering skilled labour in manufacturing and green industries would propel Africa&#8217;s green economy and prepare it for evolving global sustainability standards. From a business perspective, Africa is set to constitute a significant portion of the global consumer market in the future, a fact that should incentivize companies to provide tangible value to the communities where they operate.

kyle-glenn-nXt5HtLmlgE-unsplash-1

How Africa and Europe together can sow the seeds of the green transition

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="567" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-820x567.jpg" alt="Bill Gates: ‘I wish I had done more’ to warn world about pandemic danger" class="wp-image-371281" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-820x567.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-768x531.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/05/GettyImages-1189261957-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bill Gates, billionaire and Co-Chair of the Bill &amp; Melinda Gates Foundation. (Photo by Hou Yu/China News Service/VCG via Getty Images)</figcaption></figure>



A decade of research into why kids in the poorest places die is now unlocking ways to save millions.



It’s been almost a decade, but it’s still hard for me to tell this story without choking up.



It was 2016, and I was visiting a hospital in Johannesburg, South Africa—specifically, Soweto, the township on the city’s outskirts, which had some of the highest child mortality rates in the world.



Even at wakes and funerals it’s sometimes shocking for me to see a dead body, but this didn’t look like any dead body I had seen before. It was so small, covered in plastic. Only after I stepped closer did I recognize it was a newborn baby, maybe a day or two old.



Afterwards, I collected myself and went outside. The child’s parents were there.



I had met parents who’d lost children before, but not like this. When children died in poorer countries, they were never brought to a hospital or a morgue. Sometimes, a health worker would travel to the home and ask what had happened, but medical examiners and doctors didn’t perform an autopsy—not until CHAMPS.



Child Health and Mortality Prevention Surveillance, CHAMPS, is an initiative our foundation started in 2015. The idea was to learn more about the root causes of child death by taking blood and tissue samples from children who’d died, but no one was quite sure whether, on the worst day of their lives, the parents would agree. The couple outside the Soweto hospital were among the first to volunteer, and I wanted to learn why.



“We just don’t want this to happen to another family,” they told me.



That&#8217;s what sticks with me—not simply the tragedy, but the kernel of hope. Those parents saw a bigger picture on the day their greatest fear was realized. And it was up to the rest of the world to do better by them and millions of parents like them: We had to find out why children were dying to keep them alive.



Even ten years ago, public health officials had only the vaguest information about why babies were dying. Back then, any record of a child’s death would generally list one of the four most common causes: diarrhea, malnutrition, pneumonia, or premature birth. But each was a vast ocean of different illnesses, with scores of different causes and cures. Pneumonia, for example, is linked to more than 200 types of pathogens.



Answering “Why did a child die?” felt a little bit like being asked to find a child lost at sea—except you were only told which ocean to search in, Atlantic or Pacific. There was an expanse of missing information, so our foundation decided to help fill that void by funding research including three landmark studies. In addition to CHAMPS, which was aimed at explaining the most inscrutable causes of death, there was also the Pneumonia Etiology Research Child Health Study, PERCH, which examined the causes of childhood pneumonia, while the Global Enteric Multicenter Study, GEMS, did the same for diarrheal diseases.



As doctors compiled and compared case after case, a clearer (and often surprising) picture of child death emerged. For instance, some pathogens were less likely than was expected, like pertussis, which causes whooping cough, but others were more likely than we expected, like Klebsiella, which can be harder to treat.



Imagine if doctors didn’t know why American men were susceptible to heart attacks—and then, in the span of two years, they discovered the links to high cholesterol and smoking. That’s what happened with infant pneumonia, and the new information about Klebsiella is leading doctors to change what antibiotics they use.



More precise understanding of why children die



 CHAMPS data provides hyper-detailed information about which pathogens are causing deaths, guiding the development of improved treatments and vaccines.



<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01-800x800.jpg" alt="" class="wp-image-427426" style="width:731px" width="731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01-768x768.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Bill-01.jpg 1080w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: More precise understanding of why children die graphic from the 2023 Goalkeepers Report. Source: Bill &amp; Melinda Gates Foundation</figcaption></figure>



This is the crux of what I call “the baby knowledge boom.” Thanks to studies like CHAMPS, GEMS, and PERCH, the medical field has begun to understand precisely when and why some babies are dying, which allows them to keep others alive.



Another great example is how doctors are helping premature babies breathe—by using novel methods to “fast-forward” their lung growth. If a doctor sees that a mother is going to give birth prematurely, they can give her antenatal corticosteroids, or ACS. The ACS “exercises” the fetus’s lungs, which accelerates their growth, packing a few weeks’ worth of maturation in just a few days. Our foundation estimates that ACS could save the lives of 144,000 infants in sub-Saharan Africa and South Asia by 2030 and nearly 400,000 by 2040.



But that’s just a fraction of the lives we can save if we apply what researchers learned about nutrition in the past decade.



Gut check



 If you’ve seen medical TV shows like CSI or House, MD, you already have some sense for how an initiative like CHAMPS works. Doctors and pathologists sit on a “decode panel,” reviewing cases, batting ideas back and forth, until they come to a full conclusion on all the steps that led to a person’s death.



This level of detail is important because, outside of unexpected accidents, few people die for just one reason. Instead, death is a chain reaction. For example, a baby who dies of pneumonia likely wasn’t just fine before getting sick. She likely was born premature or was undernourished. The best way to keep a child alive isn’t to treat the pneumonia that will kill her. That’s a last resort. Rather, we should try to stop the first link in the causal chain from being formed in the first place.



Studies like CHAMPS helped us understand that often that first link is malnutrition.



Believe it or not, I think this is positive news. Because our growing understanding of why children die has proceeded alongside a second, arguably bigger knowledge boom—this one involving our grasp of nutrition.



If we’ve packed 100 years of learning about maternal and child mortality into the past decade, researchers have probably crammed 1,000 years’ worth of knowledge about the microbiome in the same decade, which is the teeming universe of bacteria that lives inside our digestive tracts. For example, the child health field used to think of breastmilk as only food for the newborn. But we’ve now learned that it’s also food for the bacteria that naturally live in the gut of the baby.



These bacteria—the most common ones are called bifidobacteria—break down specific sugars in the milk, turning it into nutrients. Without these good bacteria it doesn’t matter how well you feed your baby; their digestive system would still have a really hard time absorbing the milk’s nutrients. Which is why doctors are now recommending that babies—especially those born too soon or too small—are given a probiotic supplement with bifidobacteria in it.



This next part is gross, but amazing. Bifidobacteria are different depending on where you’re from. Babies in India have different gut bacteria than babies in the United States, so these probiotics have to be tailored hyper-locally—or in this case, “diaper locally.” Researchers swab the poop of a baby, isolating the bacteria that live in their intestines, then analyze the unique way they work in their digestive tract and can create locally tailored probiotics based on that research.



There are other new supplements to fight malnutrition, but maybe the biggest innovation is when doctors are providing them: in the womb. The medical field used to think that you couldn’t treat malnutrition until a child was about six months old and started eating. But new research has found that the baby’s microbiome and the mother’s are connected. If a pregnant woman has abundant bifidobacteria, good bacteria can spread from her digestive tract to the child’s; this way, the baby is born already having a healthy gut.



Studies show these probiotics help babies gain an additional 5 grams of weight per day in the late stages of pregnancy and can improve baby’s growth when given to the baby after birth.



Remembering Soweto



 “We just don’t want this to happen to another family.”



What those parents in Soweto said to me has echoed in my mind for over seven years, and I’ve often wondered how I might respond if I saw them again.



I think I would be honest. It might not be possible to protect every family, to guarantee a world of zero newborn deaths. Zero is a hard number.



But that doesn’t mean we can’t come very, very close.



Over the past decade, the field of child health has moved faster and farther than I thought I’d see in my lifetime. And if our delivery can keep pace with our learning—if researchers can keep developing new innovations and health workers can get them to every mother and child that needs them—then doctors could all but guarantee a baby would survive their crucial first days.



That’s what I would tell them. That’s what, together, I believe we can show them.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
&#8220;Over the past decade, the field of child health has moved faster and farther than I thought I’d see in my lifetime.&#8221;
<cite>—Bill Gates</cite></blockquote>

Bill Gates: ‘I wish I had done more’ to warn world about pandemic danger

The baby knowledge boom

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-820x547.jpg" alt="" class="wp-image-427419" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/Gates-Foundation.jpg 2000w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman breastfeeds her newborn child. Source: Bill &amp; Melinda Gates Foundation/Facebook.</figcaption></figure>



New breakthroughs could ensure more women survive pregnancy and childbirth.



In February, I was with my daughter, Jenn, when she gave birth to a daughter of her own. Welling up inside me were all the emotions a new grandparent feels: joy, excitement, pride—and, above all, immense gratitude.



In the best of circumstances, childbirth is an exhausting, emotional experience, something I knew from my own experience. It felt like just yesterday that I was giving birth to Jenn in a 14-hour labor that left me utterly drained and barely able to walk.



But in the worst of circumstances, childbirth isn’t just draining—it’s deadly, for mother and baby. Several years ago, I traveled to Malawi, where almost everyone I met had lost someone they loved. At a maternity clinic, the staff, dazed with grief, told me that just the week before, one of their own nurses had given birth, and they couldn’t save her.



I’ll never forget the pain I saw on their faces as they told me about the women they’d lost. The worst part is, so many of these deaths could have been prevented.



For nearly all of human history, we simply didn’t know enough about preventing or treating the common childbirth complications that lead to death, such as postpartum hemorrhage or infection. Today, we know a great deal. Yet, as is so often the case in global health, innovations aren’t making their way to the people who need them most: women in low-income countries like Malawi, as well as Black and Indigenous women in high-income countries like the United States, who are dying at three times the rate of white women, even when holding for economic and education levels.



Brilliant researchers have developed new interventions that could ensure more women have access to lifesaving care. Their work is opening up new—and, importantly, low-cost and mobile—avenues of preventing and treating deadly childbirth complications. When combined with better primary health care and more resilient health systems, the three innovations that follow have the potential to save thousands of mothers’ lives in LMICs around the world by 2030.



Here’s how.



<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01-800x800.jpg" alt="" class="wp-image-427416" style="width:731px" width="731" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01-768x768.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/GoalKeepers_2023_Melinda-01.jpg 1080w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: A big impact for mothers graphic from the 2023 Goalkeepers Report. Source: Bill &amp; Melinda Gates Foundation.</figcaption></figure>



Treating postpartum hemorrhage



Postpartum hemorrhage (PPH) is the number one cause of maternal death. The World Health Organization estimates that PPH, which means losing more than half a liter of blood within 24 hours of childbirth, affects 14 million women every year—killing 70,000 of them, primarily in low-income countries. Those who survive often face long-term, disabling complications, such as heart or kidney failure.



Dr. Hadiza Galadanci, an obstetrician and researcher from Nigeria, explains that there is a critical flaw in the way PPH is diagnosed: Health care workers often have a hard time recognizing how much blood loss is too much blood loss. The only tool they have is a rough visual estimate. In a study they called E-MOTIVE, Dr. Galadanci and a team of researchers in four African countries with high maternal mortality found that about half of the women who experience PPH were never diagnosed at all. Therefore, they never got lifesaving treatment.



There is a simple, low-cost way to identify when blood loss is dangerously excessive: a drape that looks like a V-shaped plastic bag. When this calibrated obstetric drape is hung at the edge of the bed, collected blood rises like mercury in a thermometer. And in a busy hospital ward, that visual gauge tells providers which patients are in danger in just a single glance.



When PPH is identified, doctors, nurses, and midwives have long relied on a series of five treatments to stop the bleeding: uterine massage, oxytocic drugs, tranexamic acid, IV fluids, and genital-tract examination. But those interventions were being delivered sequentially—and far too slowly. So the researchers asked providers to bundle the interventions, administering all five at once.



The results were dramatic: In a trial of 200,000 women, providers who used drapes and followed the updated E-MOTIVE guidelines were able to decrease cases of severe bleeding by a remarkable 60 percent.



Preventing PPH in the first place



A common cause of postpartum hemorrhage is anemia, or severe iron deficiency.



Anemia affects as many as 37 percent of pregnant women around the world. In some places in South Asia, that rate jumps as high as 80 percent. Anemia is a dangerous condition on its own, but it is also deeply intertwined with PPH: If a woman has severe anemia, she is much more likely to bleed heavily during her delivery. And even worse, because anemia reduces how much oxygen the blood can carry, anemic women cannot survive the same volume of blood loss as nonanemic women. It’s a vicious cycle.



Symptoms of anemia include fatigue or feeling faint or dizzy—things that might happen simply because you’re pregnant. Every pregnant woman should have access to maternal micronutrient supplements—high-quality prenatal vitamins that include iron—which can prevent most mild maternal anemia cases. But diagnosis and targeted treatment are necessary to address moderate and severe cases of anemia. So once again, a primary challenge is diagnosis. Screening for anemia during pregnancy is one of the most important tests we can do to ensure a woman’s health and survival. And just one example of why antenatal care is so important.



If anemia is diagnosed, the traditional treatment is supplemental iron delivered via tablets. But taking iron orally can cause unpleasant side effects and requires women to keep up with a consistent regimen for up to 180 days.



But a Nigerian obstetrician and researcher named Dr. Bosede Afolabi is working on bringing a promising new intervention to her home country: a one-time, 15-minute intravenous (IV) infusion of iron. It’s an IV drip that can replenish women’s iron reserves during pregnancy—or even after pregnancy—and it could help treat severe cases of anemia quickly and effectively.



Anemia isn’t just a cause of postpartum hemorrhage; it’s also an effect—one that can lead to long-term consequences ranging from heart disease to depression. So this solution could mean not just saving women’s lives but also helping them lead better ones.



Preventing infections



Another leading cause of maternal death and disability is infection that leads to sepsis—an extreme, full-body inflammatory reaction. In recent years, researchers have discovered that one of the most promising new ways to prevent infection during pregnancy happens to be one of the most commonly used antibiotics in the world.



For decades, azithromycin has been used to treat a variety of bacterial infections, most commonly eye and respiratory infections. Now we’re learning that when given during labor, azithromycin also reduces maternal infections, therefore preventing those infections from spiraling into sepsis. During a trial across sub-Saharan Africa, it reduced sepsis cases by a third. That’s a remarkable discovery—one that could be very useful in places where most births are at home.



And it could also be a game-changer in the United States, where 23 percent of maternal deaths are from sepsis.



The United States has some of the most abysmal—and most inequitable—maternal mortality rates among high-income countries. American women are more than three times more likely to die from childbirth than women in almost every other wealthy country. But, as I noted earlier, the biggest crisis is among Black and Indigenous women.



I still remember the shock I felt when I read tennis star Serena Williams’s account of how close she came to dying from serious blood clots after giving birth—simply because her own doctors wouldn’t believe her that something was wrong. That shock only grew when I read, just this past April, that Tori Bowie, a Black American track and field Olympian, died from childbirth complications in her home. And these are just the stories we hear about in headlines.



It’s remarkable that a common antibiotic like azithromycin has the potential to address the cause of nearly a quarter of American maternal deaths.



But as Serena’s harrowing experience and Tori’s tragic death demonstrate, one antibiotic is not enough. The systemic inequalities that deny the highest-quality care to Black and Indigenous women also need to be addressed—urgently.



A powerful engine for progress



These are three of the innovations that are reshaping maternal health—and there are others just on the horizon, especially as researchers learn more about how to use AI to improve maternal health care.



Of course, these breakthroughs aren&#8217;t silver bullets on their own—they require countries to keep recruiting, training, and fairly compensating health care workers, especially midwives, and building more resilient health care systems. But together, they can save the lives of thousands of women every year. And that’s not all.



Improving maternal health also means improving infant health and survival. It means stronger families, more vibrant communities, and more prosperous societies. We have seen over and over again that when countries actually prioritize and invest in women’s health, they unleash a powerful engine for progress that can reduce poverty, advance gender equality, and build resilient economies.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
&#8220;Improving maternal health also means improving infant health and survival. It means stronger families, more vibrant communities, and more prosperous societies.&#8221; 
<cite>—Melinda French Gates</cite></blockquote>



That’s why, more than anything, we need to rally the will to invest in these breakthroughs—so they actually get to the women who need them most—and fund the remarkable researchers who will discover the next ones.



Dr. Afolabi explained that in the Yoruba language, the traditional greeting to a woman who has given birth is “Eku ewu omo,” which translates to, “Well done for getting through the danger of childbirth.”



Thanks to her, and others like her, more women will live long enough to hear those words. And maybe one day, when breakthroughs have reached women all around the world and childbirth is far less dangerous, all they&#8217;ll hear is “Well done.”

Gates-Foundation

Delivering hope

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg" alt="" class="wp-image-416649" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/GettyImages-1236313690-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IMF managing director Kristalina Georgieva speaks during a panel discussion at the COP26 UN Climate Summit in Glasgow on November 3, 2021. (Photo by Daniel LEAL / AFP) (Photo by DANIEL LEAL/AFP via Getty Images)</figcaption></figure>



Washington, DC &#8211; September 7:&nbsp;Kristalina Georgieva, Managing Director of the International Monetary Fund, and Ajay Banga, President of the World Bank issued today a joint statement:



“The world confronts significant economic challenges, the existential threat of climate change as well as a digital transition, all in the context of more frequent shocks, high debt levels, limited policy space in many countries and rising geopolitical tensions. Well-designed and appropriately sequenced policies are critical to help accelerate growth, alleviate policy trade-offs, and support the green and digital transitions. The Bretton Woods institutions have a critical role to play to help member countries address the challenges and leverage the opportunities, working closely together and with partners.



“The world confronts major transformational challenges and more frequent shocks at a time of rising economic and geopolitical tensions.&nbsp;Growth in the world economy has slowed, with the medium-term outlook at its weakest in over three decades. Progress in poverty reduction has come to a halt. Conflict and fragility are on the rise. The world is facing geoeconomic fragmentation, extreme natural disasters exacerbated by climate change, and increasing levels of public debt. Rapid digitalization and technological transformations create new challenges, but also opportunities. With well-designed and appropriately sequenced reforms, the digital and green transitions can bring tremendous economic, social and environmental gains, and add to welfare and prosperity.



“The Bretton Woods institutions, with their universal membership and specialist expertise, are well placed to make a critical contribution to help countries tackle these challenges.&nbsp;The challenges are too great for individual actors to address. International financial institutions, national governments, philanthropic foundations, as well as the private sector, must work together. The Fund and the Bank, working jointly, can play a key catalytic role in this broader collective effort, as they have done in the past. The Bretton Woods institutions were established in 1944 to help rebuild a world economy devastated by global depression and war. As the world economy has changed over the past 80 years, the Bank and the Fund have continued to adapt and worked closely together to serve their members’ needs.



“We are committed to enhancing our collaboration to deliver tangible benefits for people, businesses, and institutions of our member countries.



“We will do so by drawing on our respective mandates and expertise—the World Bank’s diverse skills and experience, including on sustainable growth and structural transformation and its significant footprint in client countries; the Fund with its capabilities to support macroeconomic and financial stability, and promote economic conditions conducive to growth and sustainability. We will coordinate closely our global, regional, and country level engagements to ensure that our resources are deployed efficiently and effectively, driven by a focus on results for our members.



“We will do so by building on our long history of joint action and collaboration frameworks.&nbsp;Past efforts have resulted in strengthened coordination of policy advice to countries and the establishment of joint programs and initiatives. Examples include our joint assessments of financial sector soundness in emerging markets and developing economies and of debt sustainability in low-income countries; and broader collaboration frameworks, such as the 1989 Concordat and the 2007 Joint Management Action Plan.



“Today, we need to enhance further our collaboration, in particular with regards to climate change, renewed high debt vulnerabilities, and digital transition.



“Climate change.&nbsp;Climate change is a threat to global peace, security, economic stability, and development. To address this challenge, our institutions need to help all our member countries integrate their climate and development goals. Given the critical nature of this work stream, we will put Bank-Fund collaboration in this area on a more structured and institutionalized footing.



· The Bank and the Fund will promote complementarity and synergies in their climate-related works. The updated core mandate of the World Bank puts climate explicitly as one of the core areas of the Bank’s efforts and builds on an ongoing multiyear engagement on climate action and development. Building on its Climate Change Action Plan, the Country Climate and Development Reports (CCDRs), and extensive country-level policy work, the World Bank provides policy advice on climate issues to member countries, supports policy reforms through Development Policy Financing and provides financing for specific investments at the sectoral level through investment and program for results loans. The Fund has adopted a new climate strategy that includes coverage of macro-critical climate issues as part of Article IV consultations and expanded technical assistance in areas where it has specialized expertise. It has also established the Resilience and Sustainability Trust (RST) to provide affordable long-term finance to vulnerable countries implementing macro-critical climate reforms. The two institutions are successfully co-hosting the Secretariat of the Coalition of Finance Ministers for Climate Action.



· The two institutions will further strengthen coordination and focus on results. We will formalize the regular meetings of the new Bank-Fund Climate Advisory Group, tasked with ensuring coordination of our climate related work streams. The group will meet every two months to discuss global and country level engagements, including the results of CCDRs, country level climate analytical work, and the pipeline of key projects and policy-based lending (World Bank’s DPLs and Fund’s RST engagements). We will also incorporate climate considerations in our ongoing work on debt sustainability, including through the revised joint Low Income Country Debt Sustainability Framework.



“Debt Vulnerabilities.&nbsp;The Bank and the Fund have long worked closely together on debt challenges, both in operational work in individual countries and at the global level. The current context of elevated debt vulnerabilities gives renewed urgency to intensified collaboration, building and leveraging on our respective areas of expertise. We will enhance our joint work to help prevent further build-up of debt vulnerabilities, assisting countries to strengthen debt management and transparency and public finances, while improving the joint Low Income Country Debt Sustainability Framework to better account for current challenges. We will also deepen our support to creditors and debtors engaged in a debt restructuring and will work further with our partners to improve restructuring processes, including under the Common Framework, building on the work we launched at the Global Sovereign Debt Roundtable.



“Digital transition.&nbsp;The ongoing digital transition is at the forefront of development and provides a unique opportunity for countries to accelerate economic growth and connect citizens to services and jobs. Yet in 2022, nearly 3 billion people remained offline, the vast majority of whom live in developing countries, and the wide gaps in usage of digital products between and within countries remain a challenge. The Bank works with governments in emerging and developing countries to address regulatory and infrastructure constraints to digital inclusion and transformation, and to promote financial inclusion and low-cost payments systems, expand digitalization of government services and operations. The Fund focuses on supporting digital transformation in the financial sector to promote wider use of new financial technologies while maintaining the integrity and stability of the financial system. We will step up our joint work to help countries increase the effectiveness of revenue collection and expenditure systems in governments and reap the benefit of new digital technologies while mitigating the risks, including on ways to improve cross-border payments, support implementation of the G20 Roadmap to enhance cross-border payments, and ensure that payment innovations spur growth, poverty reduction and job creation.



“The Bank and the Fund will work with shareholders and partners to mobilize the substantial resources needed to meet the complex challenges the world faces today.&nbsp;This requires both domestic and external resources. To this end, we will increase our support to help countries build strong tax policy and administration and fiscal institutions that deliver efficient public spending and sound debt and public financial management, along with our ongoing work to support development of strong domestic financial markets.



“The world can, and must, come together to address global challenges. The IMF and World Bank are committed to help advance this common effort.”

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Contributor

Coal still has a place in our energy mix

Open Letter to World Leaders and Parties to the Paris Agreement ahead of COP28

Net-Zero Industry Tracker: $13.5 Trillion Investment Needed to Fast-Track Decarbonization of Key Hard-to-Abate Industry Sectors

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Major investment drive sparks East African trade and development – sustaining the continent’s progression, including South Africa

How Africa and Europe together can sow the seeds of the green transition

The baby knowledge boom

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Joint Statement of the IMF Managing Director and of the World Bank President

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