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With Libya in the news for the wrong reasons, CNBC Africa&#8217;s Onyi Sunday caught up with Ali Shamekh, CEO of the Libyan Investment Authority to find out what could lure investors into the country.

Libyan Investment Authority’s bold plan to lure back investors

How Africa can attract more foreign direct investment

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Isabel Dos Santos, Vice President of Banco De Fomento, Angola says while Africa doesn&#8217;t need a single currency, there definitely needs to be an integration between Central Banks across the continent.

Africa needs an integrated payment system – Isabel Dos Santos

Tips to succeed as an African entrepreneur from Tony Elumelu

Kristin Mmari | Bloomberg School of Public Health, Johns Hopkins Medicine
&nbsp;
A team of international experts have just published the most comprehensive analysis to date of how children on the cusp of adolescence perceive growing up as a boy or girl. The Global Adolescent Study involved a series of interviews conducted over the last four years with hundreds of early adolescents and their parents in 15 countries. These included Burkina Faso, the Democratic Republic of Congo, Egypt, Kenya, Malawi, Nigeria and South Africa. We asked lead researcher Kristin Mmari to explain the significance of the study
What did the 15-country global study set out to establish?
Our overarching question was to explore how boys and girls from diverse cultural settings experience their transitions into adolescence. Questions we were interested in finding answers to included: what changes? How do these changes vary by boys versus girls? How do these changes vary by geographic and cultural location?
We wanted to address these questions because the way in which adolescents experience biological and social changes differ. Factors that play a role include gender, cognitive abilities, educational, emotional, life experiences as well as cultural and social contexts. Yet information on how these factors manifest and inform gender differences across contexts is quite limited, particularly from low and middle-income countries.
A particularly interesting, yet unknown aspect of early adolescence, is how boys and girls establish relationships that ultimately shape their sexual and overall health from early to late adolescence.
What are the most important findings from African countries involved in the study?
So far, only Assuit in Egypt, Nairobi, Kenya, and Ile Ife, Nigeria have been involved. Another four countries, the Democratic Republic of Congo, Burkina Faso, Malawi, and South Africa, will be included in future products and analyses.
The key takeaways from the study so far are:
<ul>
<li>First global study to demonstrate that we can measure gender norms around the world among this young age group ages 10-14 years old. Before this study, it was not known whether adolescents in this age group would be able to accurately provide information about what it meant to be an ‘adolescent’ and the attitudes and beliefs about gender that influenced their transition into adolescence. Not only did we learn that it’s possible to collect data from this age group across multiple cultural settings, but that in fact, adolescents are astute observers.</li>
<li>There are consistent forms of patriarchy around the world: girls are perceived to be vulnerable and in need of protection to preserve their sexual and reproductive health. Their mobility and social space is greatly reduced and often enforced by parents to “preserve their reputation”. Girls who are observed to be seen with boys are automatically assumed to be in romantic and sexual relationships with them, and this can often ruin their reputation or their families.</li>
<li>Boys expand their social space and are given much more freedom and independence. But they also face increased risks related to the environment, such as increased engagement in violence and/or substance misuse.</li>
<li>There were more similarities than differences between the sub-Saharan African contexts and the other sites included in the study. However, boy-girl relationships were frowned upon and subjected girls to sexual and reproductive health risks, such as pregnancy and gender based violence; as a consequence, many parents did not want their daughters in the company of boys.</li>
</ul>
The goal of the study was to get insights that could be used to inform policies that promote sexual and reproductive well-being. What insights were gained and what key interventions should follow?
We already know that norms around gender inequitable lead to poor health outcomes among older adolescents and young adults. For example, research has shown that when men and boys adhere to traditional views about masculinity, they are more likely to report having used violence against a partner, to have a sexually transmitted infection, and used substances Pulerwitz and Barker, 2008. Other studies have found correlations between beliefs in gender inequitable norms and HIV transmission rates, contraceptive use, and gender based violence (Barker and Ricardo, 2005).
This study shows that these norms are being solidified much earlier than we thought. Interventions then need to start earlier and should include both boys and girls. They should also address gender as a system that’s made up of multiple actors, ranging from parents, teachers, peers, neighbourhoods, and the broader media and policy environment.
What happens next?
Phase 2 of the study will be a large quantitative survey to examine the extent to which changes in beliefs of gender inequitable norms lead to changes in health outcomes, and the factors that may contribute to these changes.
&nbsp;
This article was first published in The Conversation.

Op-Ed: African boys and girls enter teens with gender stereotypes firmly set

It is being reported that the US government has decided to withhold aid to Egypt for reasons of human rights.
On Tuesday, August 22, the Washington Post cited an unnamed ‘administration official’ as stating that the US was denying Egypt $65m in military aid and $30m in economic support fund aid, while withholding an additional $195m in military aid.
According to this source, US Secretary of State (foreign minister) Rex Tillerson had informed Egypt’s Foreign Minister Sameh Shoukry of the decision by telephone, saying that the withheld aid would be blocked in a bank account until Egypt showed progress on ‘key priorities’ in the areas of human rights and the legislation regulating non-governmental organisations (NGOs).
The anonymous official, apparently in the State Department, expressed “serious concerns regarding human rights and governance”.
Egypt responded on Wednesday, August 23, via its foreign office. The statement said that the decision reflects “poor judgement of the strategic relationship that ties the two countries over long decades” and “lacks an accurate understanding of the importance of supporting Egypt&#8217;s stability”.
Shoukry also cancelled a meeting he had been due to have with Jared Kushner, senior adviser (and son-in-law) to US President Donald Trump. Kushner is in the region to meet various actors, including Mahmoud Abbas of the Palestinian Authority and Egypt’s President Abdel Fattah Al-Sisi. The meeting with Sisi went ahead as planned on Wednesday, reportedly with Shoukry present.
The NGO regulations in question were signed into law in late May. Foreign NGOs will have to pay start-up fees amounting to E£300,000 and need to renew their permits on a regular basis.
Organisations not hitherto considered NGOs are required to register as such with the ministry for social affairs, and can be directed to work in ways required by the State. Members of NGOs that break these rules can be fined up to E£1m or face five years in jail terms.
The 46,000 or so NGOs operating in Egypt have one year to comply or face dissolution by court order. Rights organisations in Egypt and abroad objected strenuously to the new rules; Mohamed Zaree of the Cairo Institute for Human Rights Studies called the law “the worst in history.” Zaree has already been charged with “receiving funds from foreign entities to harm national security.”
Egypt represents an important strategic ally of the US due to its shared border with Israel and the fight against Islamist extremism as well as Egypt’s control over the Suez Canal. The US has provided Egypt with a substantial amount of aid inflows for decades in order to support Egypt’s military and, to a lesser extent, the economy.
Nevertheless, US aid has been on a declining trend. The Congressional Research Service (CRS) reported that US assistance to Egypt amounted to an estimated $1.46bn during 2016, of which almost 90% was allocated to Foreign Military Financing (FMF).
Since these aid inflows for the FMF are restricted for purposes related to counterterrorism and border, Sinai and maritime security, the decline in aid inflows and withholding of additional military assistance could weaken the military’s capacity to defend these areas.
In terms of foreign reserves, we anticipate that the recent decision may result in a slight weakening of Egypt’s foreign reserve level should the US decide to reduce aid further.
That said, the decline in aid inflows is expected to be offset by strong financial support from the International Monetary Fund (IMF) and other multilateral organisations.
The current upward trajectory in foreign reserves is expected to continue provided the country’s reform progress under the $12bn IMF loan programme remains on track. Gross international reserves increased by $11.8bn from end-2016 to $36bn by end-July, while foreign reserves rose to $32.6bn.
Egypt is expected to receive further loan disbursals from the World Bank and IMF towards the end of this year, which will further boost reserve levels.
We doubt the State Department’s decision really has anything to do with human rights. We think the important matters here are the NGO law, the arms business and Washington politics.
NGOs have certainly been used, as in most countries, as fronts for spying, and the US seems to be trying to maintain that space for its intelligence services as well as for Islamist NGOs, with which it tries to have neutral relations.
These organisations are often sponsored by US allies like Qatar and Turkey.
The US obviously wants Egypt to use its military aid to buy American weapons, but in recent years Cairo has bought expensive weapons systems from Russia and France, and this will have raised hackles in the US arms industry (which has weighty influence over American politicians). The aid suspension may aim to press the Egyptians to realign their sourcing decisions.
The issue of domestic US politics is more difficult to evaluate but Mr Tillerson’s State Department is understaffed, and this might be a bold move to claw back influence from the White House and Mr Kushner, who is not popular in government circles.
As noted above, we have little reason to believe that the suspension will significantly impact the level of reserves: reserves are currently increasing because of a rise in external debt rather than substantial aid inflows. Any economic impact will be marginal.
This article was written by François Conradie, Head of Research and Nadene Johnson, Economist at NKC

US suspension of aid to Egypt causes standoff

President Abdel Fattah Al-Sisi, on June 21, announced a number of measures to be undertaken to strengthen social safety nets and protect the poor from inflation as reform momentum continues. 
Monthly food subsidy allowances are expected to be raised to E£50, starting from July 1, which is more than double the previous monthly allowance of E£21. 
There are approximately 70 million food subsidy card holders in Egypt in a population of just under 95 million people. 
The increase in allowances, along with other measures, is expected to push the food subsidy bill up to E£85bn during the 2017/18 fiscal year (FY). 
According to the International Monetary Fund (IMF), food subsidies were previously estimated at E£51bn for the 2017/18 FY, reflecting a 67% expected increase in food subsidy expenditure. 
Furthermore, existing social programmes, covering an estimated 15 million Egyptian households of Takaful (focused on child development through education and healthcare related cash transfers) and Karama (involving cash transfers for social inclusion among the elderly and disabled) are expected to be expanded. 
The president announced that the monthly allowance of the social programmes will be raised by E£100 to a total cost of E£8.25bn in the 2017/18 FY, according to the governments estimations. 
Apart from higher food subsidies, the Egyptian government announced further measures to combat recent economic hardships, including raising state pension benefits by 15% (amounting to a cost of E£190bn) as well as increasing salaries of public workers by 7% p.a. under the Civil Service Act (approved in October) and by 10% p.a. for state staff not covered by the act. 
On the revenue side, the government is expected to increase the minimum income tax threshold to E£7,200 p.a. in the trade and industrial sectors for self-employed people, from E£6,500 p.a. formerly. 
Furthermore, tax breaks will be allowed for the first three income tax brackets, which is aimed at providing lower income individuals with a higher tax break as shown in the accompanying table. 
The lowest income tax bracket of E£7,200 &#8211; E£30,000 will receive the highest tax break of 80% at a lower income tax rate of 10%, while the highest income tax bracket, individuals earning above E£200,000.01, will be charged at the full income tax rate of 22.5%.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-129813" src="http://cnbc.africa/wp-content/uploads/2017/06/Egypt-subsidies-1-300x74.png" alt="" width="300" height="74" />
From a political perspective, the increase in subsidies and other social support measures comes as Mr Sisi’s popularity has witnessed a sharp decline. 
The fall in his approval rating was not only due to the harsh economic environment, however, and it is unclear whether the move to improve the lot of the country’s poorest will be enough to boost his standing in the public’s opinion as elections next year grow nearer. 
Last week, June 14, Parliament approved the ceding of two Red Sea islands to Saudi Arabia despite many the decision’s unpopularity. 
Although protests against the move have been somewhat muted, it has surely turned many more voters against their increasingly authoritarian leader. 
It is unlikely that Mr Sisi will count on popularity alone to win the elections (arresting opposition candidates and muzzling the press are other likely strategies), but we can expect him to try and win support through easing the effects of austerity and spending more as polling day approaches. 
The Egyptian government’s efforts to strengthen social protection will be welcomed by citizens who have suffered a loss of purchasing power from the recent reforms. 
The announced increase in food subsidies and expansion of the existing social programmes is larger than initially anticipated. 
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-129814" src="http://cnbc.africa/wp-content/uploads/2017/06/Egypt-subsidies-2-300x200.png" alt="" width="300" height="200" />
However, this is expected to have only a marginal impact on overall fiscal expenditure as the food subsidy bill is estimated at roughly 5% of total fiscal spending, while transfers account for approximately 6%.
In terms of the public sector wage bill, the government has made notable efforts in containing expenditure on public sector wages, which have increased by only 1.4% y-o-y over the first eight months of the current fiscal year. 
As such, the proposed increase in state workers’ annual pay, albeit still below inflation, may induce some constraints in containing public sector wages further, as it accounts for some 24% of total expenditure. 
While the government’s efforts to protect the poor through food subsidies and social protection is a welcome one for low-income Egyptians, combined with rising public sector salaries and pension funds, these measures may be suggestive of the government’s concerns over popularity as well as citizen discontent. 
The protests over changes in bread subsidies in March gave the government a scare and were dealt with with unusual care by security forces. 
Mr Sisi would not chance changes or cuts in the run up to an election. These recent developments bring a sense of how difficult it will be to narrow the budget deficit quickly. 
The Egyptian government is expected to be dependent on multilateral organisations for years to come as the authorities flounder to strike the balance between narrowing the fiscal deficit without bringing too many people to their knees.

Egypt – Food subsidies doubled, salaries and pensions raised while Egyptians benefit from tax breaks

CAIRO (Reuters) &#8211; Saudi Arabia is banning imports of Egyptian strawberries due to pesticide residues, said Abdel Hamid al-Demerdash, the head of Egypt&#8217;s Agriculture Export Council, the latest such ban to hit Egypt as it struggles to revive its economy.
The temporary ban comes into effect on July 11, Demerdash told Reuters on Sunday, adding that the memo received from Saudi Arabia did not specify the levels of residues detected or name the companies that have committed violations.
&#8220;Egypt will not face large losses due to the ban as the exporting season for strawberries ended on April 10,&#8221; Demerdash said. He added that strawberries represent 5-10 percent of the country&#8217;s total agricultural exports.
Since a currency float in November, which roughly cut the pound&#8217;s value in half, Egyptian exports have been welcomed in new markets due to their increased competitiveness.
Exports of Egyptian vegetables, fruits and legumes amounted to $2.2 billion last year. The main fruit exports include oranges and strawberries.
A series of bans of Egyptian exports however has hurt the image of an import-dependent country seeking to step up exports and curb imports in an effort to narrow its trade deficit.
Exports could also help bring in desperately needed foreign currency that has been low in supply as a result of the 2011 Arab Spring uprising that drove away tourists and investors.
Sudan banned imports of agricultural and animal products from Egypt last month.
The United Arab Emirates also banned imports of peppers from Egypt a month earlier
&#8220;I expect the crisis of Egyptian agricultural exports to Arab countries to be resolved before the beginning of the new export season which begins mid-November,&#8221; Demerdash said.
Egypt exports about 1.2 million tonnes of agricultural produce to Arab countries annually, he added.
Russia temporarily banned imports of Egyptian fruit and vegetables at the end of last year shortly after a Hepatitis A scare in North America was linked to frozen Egyptian strawberries.
Russia&#8217;s temporary ban came shortly after Egypt rejected wheat shipments containing traces of the common grain fungus ergot. Russia denied the two issues were related.
(Reporting by Ehab Farouk; writing by Arwa Gaballa; editing by Louise Heavens)

Saudi Arabia bans imports of Egyptian strawberries

On Wednesday, June 14, Parliament approved the handing over of the Red Sea islands of Tiran and Sanafir to Saudi Arabia.
According to reports, some members of Parliament (MPs) chanted “islands are Egyptian” after final approval was confirmed by a vote of hands.
The issue of the island’s sovereignty has been topical for over a year: in April 2016 President Abdel Fattah Al-Sisi, during a visit by Saudi Arabia’s King Salman, recognised Saudi sovereignty over them, then a lower court blocked their cession (after there were some protests against it, notably by journalists), then, in January of this year, the Supreme Administrative Court rejected the government’s appeal against the lower court’s June 2016 ruling. That decision in January was then annulled by Cairo’s Urgent Matters Court.
Critics of the plan to cede the island argue that neither the courts nor Parliament can ultimately decide on their fate – only a referendum would authorise a handover.
Article 151 of the 2014 constitution states: “The President of the Republic represents the state in foreign relations and concludes treaties and ratifies them after the approval of the House of Representatives. They shall acquire the force of law upon promulgation in accordance with the provisions of the Constitution. With regards to any treaty of peace and alliance, and treaties related to the rights of sovereignty, voters must be called for a referendum, and they are not to be ratified before the announcement of their approval in the referendum. In all cases, no treaty may be concluded which is contrary to the provisions of the Constitution or which leads to concession of state territories.”
The text appears clear on the issue, but it is unclear whether the issue will be put to a popular vote. This could mean that any parliamentary decision is open to being challenged on constitutional grounds.
The question thus arises as to how Egyptians would vote if they were called upon to do so in a referendum on the islands.
A survey conducted by Baseera (the Egyptian Center for Public Opinion Research) released on Tuesday found that 47% of Egyptians believe the islands belong to the country, 11% believe they belong to Saudi Arabia and 42% are unsure (or, perhaps, declined to give answer that would put them at odds with the head of State).
When the same question was put to them in April last year – after the deal was announced – 30% believed the islands were Egyptian, 23% believed they were Saudi and 47% did not know.
Thus, if anything, the public has been swayed by the arguments against the deal over the past year.
Furthermore, Baseera found that 42% of respondents felt it was necessary that the issue goes to a referendum – 37% felt parliamentary approval would be enough and 3% said the judiciary should decide, with the remainder unsure.
&nbsp;
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-128750" src="http://cnbc.africa/wp-content/uploads/2017/06/Egypt-Islands-1-300x200.png" alt="" width="300" height="200" /> <img loading="lazy" decoding="async" class="alignnone size-medium wp-image-128751" src="http://cnbc.africa/wp-content/uploads/2017/06/Egypt-Islands-2-300x200.png" alt="" width="300" height="200" />
The sporadic protests last year against the ceding of the islands did not gain momentum. Media reports state that there were protests on Tuesday evening, with journalists conducting a sit-in at the Egyptian Press Syndicate offices in Cairo, and Wednesday but they have not yet been on the scale that would concern Mr Sisi.
It is likely that protests will begin to grow in coming weeks if activists and dissidents are able to organise.
The country is currently under a state of emergency – in place since April for three months after terrorist attacks on Coptic churches – which gives security forces added powers to keep a lid on dissent. Whether these powers will be used to hold off protests remains an open question.
The islands debacle has seriously dented Mr Sisi’s popularity and his government’s legitimacy. But he is seemingly unperturbed.
In recent months, he has become more strident as he clamps down on the media (we hear that over 60 websites have been blocked, both local and international), arrests opposition politicians (including Khaled Ali, a human rights lawyer that fought the case against the ceding of the islands, and members of his left-leaning Bread and Freedom Party) and rolls back judicial independence (in April the controversial Judicial Authorities Law was passed which gives the president the ability to appoint the judiciary’s most senior members).
Declining political capital and authoritarian overstretch in a harsh economic environment (inflation is still hovering around 30%, though we forecast that it will ease in coming months) is a recipe for a popular backlash.
We have been surprised by the quiescence of the Egyptian public so far, but this concession to the Saudis could push patriotic buttons and bring people onto the streets, even those broadly supportive of the president.

Egypt – Parliament approves ceding of Red Sea islands to Saudi Arabia

Egypt&#8217;s Trade Ministry has issued tough new regulations on importers by sharply raising the minimum capital they need to operate, the government&#8217;s latest effort to curb foreign-made goods and spur local manufacturing.
Under the ministry&#8217;s executive regulations, the minimum capital required for the smallest companies to register was hiked to 500,000 Egyptian pounds (about $28,000) from 10,000 pounds previously. For limited companies, the minimum threshold was raised to two million pounds from 15,000 pounds previously.
<blockquote>&#8220;This is in line with measures taken by the ministry in the past to limit the import of low-quality goods,&#8221; the Trade Ministry said in a statement.</blockquote>
&#8220;It also aims to encourage new investments in national industries and protecting them from unfair competition from imported products,&#8221; it added.
The new regulations also raise the minimum capital required for a joint stock company to be registered to 5 million pounds. Importers will have six months in order to adjust to the reform, which was contained in an amendment to the Importers Register Law passed in March.
Import-dependent Egypt is struggling to revive its economy and curb a trade deficit since a 2011 uprising drove away tourists and foreign investors.
Importers have criticized previous government measures aimed at reducing demand for foreign goods, saying local producers do not have the capacity to fill the gap.
(Reporting by Asma Alsharif; Editing by Helen Popper)

Egypt tightens rules on importers in crackdown on foreign goods

Ahmed Aboulenein | CAIRO
Egypt, the world&#8217;s largest importer of wheat, has procured 2.33 tonnes of wheat from local farmers since its harvest began in mid-April, the supply ministry said in a statement on Sunday.
The ministry said it would provide a premium to farmers of 15 Egyptian pounds ($0.83) per tonne for wheat stored and transported in jute bags and 10 pounds per tonne for wheat stored in silos located far from production areas with over 50 percent empty storage capacity.
Egypt consumes 9.5 million tonnes of wheat to make its subsidised bread &#8211; 4 million tonnes from the local harvest and 5.5 million tonnes from imported wheat.
The local harvest runs through July but the supply ministry has said it plans to continue making international purchases this year to boost the country&#8217;s strategic reserves.
($1 = 18.1000 Egyptian pounds)
(Writing by Ahmed Aboulenein; Editing by Tom Finn and Mark Potter)
&nbsp;

Egypt procures 2.33 mln tonnes of local wheat since start of harvest

Africa presents a mixed foreign direct investment (FDI) picture
<ul>
<li>South Africa remains the largest FDI hub in Africa</li>
<li>Egypt, Kenya, Morocco, Nigeria and South Africa (the key hub economies) collectively attracted 58% of the continent’s total FDI projects in 2016</li>
<li>Investment from the Asia-Pacific region into Africa hit an all-time high in 2016</li>
</ul>
Johannesburg, 3 May 2017. According to EY’s latest Africa Attractiveness report, heightened geopolitical uncertainty and “multispeed” growth across Africa present a mixed FDI picture for the continent.
The report provides an analysis of FDI investment into Africa over the past ten years. The 2016 data shows Africa attracted 676 FDI projects, a 12.3% decline from the previous year, and FDI job creation numbers declined 13.1%. However, capital investment rose 31.9%.
The surge in capital investment was primarily driven by capital intensive projects in two sectors, namely real estate, hospitality and construction (RHC), and transport and logistics. The continent’s share of global FDI capital flows increased to 11.4% from 9.4% in 2015. This made Africa the second-fastest growing FDI destination by capital.
Ajen Sita, Africa CEO at EY says:
“This somewhat mixed picture is not surprising to us. Investor sentiment toward Africa is likely to remain somewhat softer over the next few years. This has far less to do with Africa’s fundamentals than it does with a world characterised by heightened geopolitical uncertainty and greater risk aversion. Investors with an existing presence in Africa remain positive about the continent’s longer-term investment attractiveness, but they are also cautious and discerning.”
		
				
		
Asia-Pacific investors are bullish on Africa
In a sign of ongoing diversification of Africa’s FDI investors, more than one fifth of FDI projects and more than half of capital investment into Africa came from Asia-Pacific in 2016, an all-time record. Most notably, Chinese FDI into Africa increased dramatically, making the country the single largest contributor of FDI capital and jobs in Africa in 2016.
Foreign investors refocus on Africa’s hub economies 
Egypt, Kenya, Morocco, Nigeria and South Africa (the key hub economies) collectively attracted 58% of the continent’s total FDI projects in 2016.
South Africa remains the continent’s leading FDI destination, when measured by project numbers, increasing 6.9%. Morocco regained its place as Africa’s second largest recipient with projects up by 9.5%, followed by Egypt, which attracted 19.7% more FDI projects than the previous year.
New investment hubs appear in East and West Africa: ey
Although foreign investors still favour the key hub economies in Africa, a new set of FDI destinations is emerging, with Francophone and East African markets of particular interest.
Despite having a 31.7% decline in FDI projects in 2016, and weak growth in recent years, West Africa’s second largest economy, Ghana, remains a key FDI market. The country’s improving macro-economic environment and strong governance track record has seen Ghana rise to fourth position in the EY Africa Attractiveness Index (AAI). The index was introduced in 2016, to measure the relative investment attractiveness of 46 African economies based on a balanced set of shorter and longer-term metrics.
Staying in West Africa, Cote d’Ivoire also features in the top 10 of the AAI, and with a 21.4% jump in FDI projects in 2016, this illustrates that it’s becoming a country more favoured by investors.
Also in the west, Senegal has emerged as a potential major FDI destination although this is not reflected in its current FDI numbers. It does however rank strongly on the AAI 2017, taking eighth position, due to its diverse economy, strong strides in macro-economic resilience and progress in improving its business environment.
Sita concludes, “By 2030, Africa remains on track to be a US$3t economy. However growth needs to become more inclusive and sustainable to eradicate poverty at the levels that are required. If we accept the reality that physical connectivity – enabled by regional integration and the development of physical infrastructure – will remain a key stumbling block to inclusive growth across Africa for at least the next decade, then the need to actively embrace digital connectivity becomes critical. However, efforts to harness the potential of digital technologies as a fundamental driver of inclusive growth are still far too piecemeal and fragmented.
What is required is a far more collaborative effort between governments, business and non-profit organisations to adopt technological disruption, and create digitally enabled offerings with a particular focus on health, education and entrepreneurship.”

Africa has a new funder

Amina Ismail | CAIRO
An International Monetary Fund (IMF) delegation will arrive in Cairo on Sunday to review Egypt&#8217;s progress on economic reforms before it disburses the second instalment of a $12-billion loan programme, the Finance Ministry said.
The IMF delegation will stay until May 11 and meet with officials from the ministry and the central bank, the ministry said in a statement.
Egypt agreed the three-year programme with the IMF in November, after floating its Egyptian pound currency in a dramatic move aimed at unlocking foreign inflows and boosting exports after a long-running dollar shortage threatened to paralyse the economy.
It promised a raft of tough reforms, including narrowing its budget deficit, in return for the $12-billion loan package from the IMF and a host of other bilateral backers with payments spread over three years and linked to progress on reforms.
The IMF released a first instalment of $2.75 billion in November, shortly after the deal was agreed.
Egypt has said it expects to receive the second instalment, worth $1.25 billion, in May or June, once the IMF review has been completed.
IMF Managing Director Christine Lagarde told Reuters in February Egypt was making good progress on reforms.
As part of reform efforts, Egypt has introduced a Value Added Tax (VAT) and secured $4 billion in eurobonds from international markets in an oversubscribed issuance.
It is also part way through a programme to reform power and fuel subsidies and is preparing to privatise several state owned banks and energy companies.
(Reporting by Amina Ismail, editing by Lin Noueihed)

IMF team in Cairo to review second instalment of $12-billion loan

Egyptian Petroleum Minister Tarek El Molla said on Sunday his country had received two cargoes of diesel fuel from Saudi Arabian state-owned oil company Aramco on Friday and Saturday.
Molla was speaking at an energy conference in Cairo.
Saudi Arabia agreed in April last year to provide Egypt with 700,000 tonnes of refined oil products a month for five years, but the cargoes stopped arriving in early October.
Though officials from both sides have denied the existence of tensions or disagreements between the two countries, the two have been at odds on a number of political issues.
Egypt voted in favour of a Russian-backed but Saudi-opposed U.N. resolution on Syria in October, which excluded calls to stop bombing Aleppo.
In January an Egyptian court rejected a government plan to transfer two uninhabited Red Sea islands to Saudi Arabia.
Egypt announced last week that the petroleum product shipments would resume.
Egypt had turned to the spot market in recent months after Aramco&#8217;s halt of shipments but also sought similar deals to make up the shortfall. Crude from Iraq was expected to arrive in late March as part of an agreement for 1 million barrels a month.
Molla said he was revising the import schedule with distributors following Aramco&#8217;s decision to resume shipments.
In the longer term, Egypt&#8217;s petroleum products imports will decrease from 35 percent of its consumption needs currently to 5-7 percent of consumption by 2020, Molla said, saving the country billions of dollars per year.
(Reporting by Abdelrahman Adel; Additional reporting by Eric Knecht; Writing by Ahmed Aboulenein; Editing by Dominic Evans)

Egypt received two cargoes of diesel fuel from Saudi Aramco

On Monday, March 6, small protests about plans to change the rations system for bread broke out in Egypt. By Tuesday, the number of protesters had swelled to hundreds in multiple cities across the country.
Security forces were uncharacteristically calm in their dealings with the protesters – mainly, perhaps, because many were elderly women – and ended up handing out free loaves of bread in some areas rather than suppressing the demonstrations with force.
These are the first significant protests directly related to the recent surge in prices brought about by economic reforms. They had been expected and more could follow.
The main gripe of the protesters was a change to the number of loaves allocated to each family using ration cards.
According to Reuters, there are two cards issued to the public. The normal plastic smart cards allow each family to buy five subsidised loaves of bread each day. There are also temporary paper cards issued to people waiting to receive the smart cards.
Bakers are authorised to sell bread at subsidised rates to customers with these temporary cards, but the government announced last week that the ration for them would be decreased from five loaves to three.
This move was meant to reduce the misuse of the temporary cards – bakers saying they sell more than they really do in order to benefit off of the subsidy.
Supply Minister Ali Moselhy apologised to citizens who had not received their bread due to the change and assured Egyptians that “every citizen has a right to bread.”
Videos posted online showed crowds blocking tram lines and railway tracks in the cities of Alexandria and Desouk. Protests also took place in Giza and the Minya governorate.
Understandably, the protests mostly took place in working class neighbourhoods, where the rising price of goods has had the biggest effect on livelihoods.
These protests come at a critical time for Egypt. The International Monetary Fund (IMF) is in the process of appraising the progress made on the reform agenda as part of the decision to release a second disbursal of the $12bn loan.
Although the IMF’s delegation has been postponed until April, any adverse effects of further protests, such as the slowdown of further reform implementations, poses significant risk to the loan programme and may prompt the IMF to freeze the second loan tranche – as was the case with Tunisia where the IMF has usually been rather lenient.
With the country having limited room to manoeuvre, this is likely not the first episode of rationalising food subsidies or inflationary reform action.
This forms part of the government’s aim to replace poorly targeted subsidies with programmes that directly support poor households.
There has been declining trend in riots and protests during President Abdel Fattah Al-Sisi’s time in office.
Analysts have ascribed the decline to the ratcheting up of repression against civil society and a general disengagement with politics. However, as 2011 and 2013 showed, the situation can change rapidly.
Mr Sisi is undoubtedly aware of this. The prompt apology by Mr Moselhy and the soft approach taken by the police show that he knows to handle the situation with care.
The situation warrants close watching as Mr Sisi’s popularity is low and the effects of the austerity measures are likely to persist for some time yet.
In 2011, protesters chanted “bread, freedom, social justice.” Bread was their first demand.

Egypt – Bread, freedom, social justice

It had the potential to be an historic day, but in the end Field Marshal Khalifa Haftar failed to show up for a meeting with the Government of National Accord’s (GNA) Fayez Seraj on Tuesday, February 14.
The talks in Cairo were organised by the Egyptian government and were originally meant to take place on Monday, February 13, but were postponed after neither party would agree to the conditions set by the other, according to the Libya Herald.
Tuesday’s talks were set to be chaired by Egyptian President Abdel Fattah Al-Sisi, and it was thought that his direct involvement would be enough to get the men to the negotiating table.
Reports state that Mr Haftar’s allies in Moscow and Cairo have been pressing him to meet with the GNA’s leader, but it appears that the Libyan National Army (LNA) strongman feels he can still improve his bargaining position before starting negotiations on his possible role within the revised unity government.
It is believed that he has been offered a role in the military, but that the position of commander-in-chief of the armed forces would be shared between the head of the Presidency Council (PC – the executive of the GNA), the head of the House of Representatives (HoR – the legislature currently based in Tobruk and against the current GNA) and the head of the State Council (a quasi-Senate that would share legislative functions with the HoR and be comprised of former members of the General National Congress – GNC).
Although the two men failed to meet, Egyptian army spokesman Mohamed Samir stated that they had agreed via indirect negotiations for the country to hold fresh parliamentary and presidential elections in February 2018.
A different spokesman, Tamer El-Rifai, said that they had agreed on the need for a joint committee to make “key changes” to the deal that set up the GNA.
However, sources within the Haftar camp told the Libya Herald that Mr Haftar had not agreed to the changes.
For his part, HoR President Ageela Saleh, who was also in Cairo, said that he would study the proposal before commenting.
Another proposal dismissed by Mr Haftar was the plan for a three-man presidency/executive for the unity government – Mr Haftar appears to be allergic to the very idea of power sharing.
While the talks were not quite a success, it is perhaps a positive signal that they came close to happening.
Mr Haftar, clearly has the upper hand and he will no doubt attempt to press his advantage so that he receives real power in the new political agreement.
For the other parties involved, there really is no change in the equation they are presented with. They cannot reject Mr Haftar completely while the LNA has control over the oil terminals and fields and is making progress towards securing control over areas in the south.
The only major negotiating strength they have, now that the US’s military support may be in doubt with the voting in of President Donald Trump, is the United Nations’ resolution stating that oil can only be exported legally from the country with the consent of the GNA. However, blocking oil exports in order to stamp their authority would be shooting themselves in the foot – the GNA’s legitimacy is already pitifully low.
Mr Haftar already has real power (the ability to get other actors to do things they would not freely choose to do), but he will keep pushing for it to be made official.﻿

Libya – Haftar gives Seraj the cold shoulder

Italian oil and gas group Eni agreed to sell a 30 percent stake in Egypt&#8217;s offshore Shorouk concession to Russia&#8217;s Rosneft for $1.125 billion, cutting its stake in the Zohr giant gas field to 60 percent.
Eni said Rosneft would reimburse pro-rata investments already carried out by the Italian group totalling around $450 million at present.
Rosneft has also an option to buy a further 5 percent stake at the same conditions. Eni discovered the Zohr field &#8211; the Mediterranean&#8217;s biggest ever gas field &#8211; in the Shorouk concession in August 2015.﻿

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