Dr. Ahmed Kamali, Deputy Minister of Planning and Economic Development, received a delegation from the European Union, led by Ambassador Omar Abu Aish, Assistant Foreign Minister and Secretary-General of the Coordinating Secretariat for Implementing the Egyptian-European Partnership Agreement, Anika Eriksjard, Director of Financial and Economic Affairs at the European Commission, to discuss avenues for economic cooperation. The meeting was attended by Wael Ziyada, Assistant Minister of Planning for Economic and Investment Affairs (via video conference), Hatem Al-Laythi, Advisor to the Minister on Monetary and Banking Affairs, Ismail Youssef, Supervisor of the Planning Sector, and Emad Morsi, Head of Project Feasibility Studies Unit.

During the meeting, Dr. Ahmed Kamali emphasized that the meeting aims to review and discuss plans and strategies to enhance the Egyptian economy and achieve sustainable development, noting that the meeting represents a fruitful opportunity for cooperation and coordination between the Egyptian government and the European Union to enhance economic partnership.

The Deputy Minister of Planning highlighted that comprehensive and integrated plans have been developed to enhance the investment environment in Egypt and increase its competitiveness at both the domestic and international levels, affirming the Egyptian state’s efforts to strengthen key productive sectors such as industry, agriculture, telecommunications, and information technology, in line with the goals of the National Program for Structural Reforms, as well as enhancing the country’s export capacity.

Dr. Ahmed Kamali also stressed the importance of achieving a balance between economic, environmental, and social aspects to achieve sustainable development that benefits all segments of society, emphasizing the work on enhancing social justice and providing equal opportunities for all, including supporting entrepreneurship, encouraging innovation, and developing skills and human resources. He also explained that Egypt seeks to enhance partnership between the government, private sector, and civil society to achieve common goals, noting the state’s focus on the business environment and efforts to solve problems hindering economic development and enhance international cooperation to achieve the main goal, which is to achieve Egypt’s Vision 2030.

The Deputy Minister of Planning also stated that Egypt, like other countries, has been affected by recent global changes and crises. Therefore, the state has worked to increase the resilience and enhance the Egyptian economy’s ability to withstand shocks and diversify the Egyptian economic structure, which it is targeted by the National Program for Structural Reforms, emphasizing the importance of changing the economic structure to be more competitive, which requires support and participation of the private sector in more sectors, especially productive sectors with high added value.

Kamali said that despite the importance of the role of the private sector, the public sector also has its important role in providing infrastructure and basic services, including education, health, and transportation, contributing to creating a conducive environment for investment and growth.

Dr. Ahmed Kamali also addressed the role of technology and innovation in enhancing the competitive capacity of the Egyptian economy, explaining that upgrading technological infrastructure and encouraging innovation in various sectors can contribute to increasing productivity and improving the quality of products and services provided, thereby enhancing export opportunities and attracting foreign direct investments.

In the same context, Kamali referred to the development of labor market mechanisms and the enhancement of human capabilities, emphasizing that improving labor skills and providing decent job opportunities can contribute to enhancing domestic consumption, thereby stimulating sustainable economic growth.

Dr. Ahmed Kamali also emphasized the importance of increasing Egyptian exports to be competitive with exports of other countries, pointing out that the Egyptian market is large and attractive to both local and foreign investors to benefit from the market size, as well as the demographic structure of the Egyptian state, which is characterized by a large youth population. However, Egypt seeks to attract foreign direct investment that seeks to create a highly competitive environment and efficiency in the production process.

Regarding the first economic report for Egypt issued by the Organization for Economic Cooperation and Development (OECD) under the Egyptian-OECD Program, Kamali explained that it is a joint effort between the Ministry of Planning and Economic Development and the organization, covering a variety of economic aspects such as the business climate, the role of the private sector, and the labor market situation, with a focus on the importance of providing decent job opportunities. The report reviews the main features of the Egyptian economy and provides the organization’s recommendations for designing effective policies to overcome economic challenges, enhance the performance of the Egyptian economy, and drive comprehensive and sustainable growth.

Distributed by APO Group on behalf of Ministry of Planning and Economic Development – Egypt.

His Excellency President Dr Julius Maada Bio has formally opened a four-day conference of the Economic Community of West African States, ECOWAS, Court of Justice on the theme, “Enhancing the role, relevance, and effectiveness of the ECOWAS Court of Justice through the strengthening of synergies between the Court and National Stakeholders”.

He expressed delight at the choice of Sierra Leone as a destination for the 2024 conference and reminded participants that the country was one of the founding members of ECOWAS in May 1975 and had remained firmly committed to the ideals and aspirations of its treaty.

The President urged member countries that “the need for cooperation and integration amongst our people in West Africa requires our concerted and best efforts. Such cooperation and integration are partly the key to our sub-region’s prosperity and the well-being of our people.

“The ECOWAS Court of Justice plays a pivotal role in advancing these noble objectives by upholding the principles of justice, fairness, and the rule of law across our region. As members of the ECOWAS, we are bound together by a shared vision of regional integration, cooperation, and promoting peace and prosperity for our people”.

President Bio confirmed at the conference that the establishment of the Court in 2001 was a welcome step by member countries toward fostering integration and cooperation and that the strides it had made since its inception were a testament to the importance of the great institution.

The President associates the gains made by the court as a result of its expanded jurisdiction, which is in line with the Amended Protocol of 2005, including the authority to adjudicate the alleged violation of the human rights of the community’s citizens.

President Bio commends the leadership of the ECOWAS Court of Justice for what he described as “progressive; the Court is succeeding in increasing its crucial role of providing additional justice delivery options to the citizenry of the ECOWAS community.”

Vice President of the ECOWAS Court of Justice, Hon. Justice Gbéri-Bè Ouattara reminded the conference that the Court was established by the Lagos Treaty of May 28, 1975. He also stated that the ECOWAS Revised Treaty was adopted in July 1993 and was recognised as the fundamental charter of ECOWAS and the roadmap for the economic integration of the Community.

Keynote speaker, Professor Ernest Kofi Abotsi, spoke largely around the topic of “enhancing the role, relevance, and effectiveness of the ECOWAS Court of Justice through the strengthening of synergies between the court and national stakeholders.

“Courts are not in the business of engaging with any constituencies, actual or perceived. Indeed, the idea of courts having to network constituents may seem at first odd and inconsistent, even with the juridical character of the judicial institution, one structured to be detached, neutral, and authoritative in pronouncement, unperturbed by the effects of their rulings and consequences of their actions”.

Distributed by APO Group on behalf of State House Sierra Leone.

Libya’s short- and medium-term economic outlook is dominated by the dynamics of hydrocarbon production. Libya urgently needs a clear economic vision for the future and the IMF will continue to help the authorities by providing capacity development support in several areas; The announced central bank reunification has led to welcome improvements in banking supervision and monetary policy coordination and is helping move the reform agenda forward; The authorities should address the underlying pressures on the exchange rate and avoid the procyclical spending bias. Strengthening Libya’s fiscal framework would enhance macroeconomic resilience.

A staff team from the International Monetary Fund (IMF) led by Mr. Dmitry Gershenson visited Tunis, Tunisia, during May 1-10, 2024, to discuss Libya’s economic and financial developments, the macroeconomic outlook, and the country’s policy and reform priorities. At the conclusion of the visit, Mr. Gershenson issued the following statement:

Several shocks have hit Libya, but their impact on GDP growth has been muted. Tropical storm Daniel struck Eastern Libya in September 2023, leading to devastating floods, catastrophic damage, and a tragic loss of life. The disaster, however, had only a small impact on economic growth, since Libya’s GDP is mainly based on energy exports. Similarly, the economy remained shielded from the impact of the conflict in Gaza and the Red Sea shipping disruptions. In 2023, real GDP is estimated to have expanded by 10 percent, largely owing to a rebound from the oil production stoppages of 2022.

The year 2023 saw a fiscal expansion. Owing to a fall in hydrocarbon prices, government revenues declined, despite the concurrent boost to oil production. Fiscal expenditures nevertheless surged, driven by an increase in the wage bill and higher-than-expected energy subsidies (the latter despite the lower oil prices). Reflecting this expansion, money supply has grown at its fastest pace since the fall of the Ghaddafi regime.

The authorities have been trying to reduce the use of foreign exchange . In January 2024, responding to pressure on foreign reserves, the Central Bank of Libya (CBL) tightened the restrictions on the issuance of letters of credit and lowered the limits on individuals’ foreign exchange purchases, resulting in the widening gap between the parallel and the official exchange rates. In early 2024, a temporary 27 percent tax on all foreign exchange purchases was announced, together with the relaxation of some of the previously enacted restrictions. The tax is to be applied until end-2024, although the rate could be adjusted earlier if deemed necessary.

Reported inflation stayed low despite the depreciation of the parallel exchange rate. With prices of most goods and services either subsidized or administered, reported inflation tends not to track exchange rate movements, even though imports are estimated to constitute around one half of the consumption basket. Moreover, the reported CPI has limited product and geographic coverage. The authorities are already working on expanding coverage and updating the CPI basket, with the new index expected to be available in 2025.

In 2023, the current account surplus is estimated to have declined in line with the fall in oil prices. Libya’s external position was broadly in line with fundamentals and desirable policy settings, and the CBL has maintained the reserves at a comfortably high level.

The outlook is dominated by the dynamics of hydrocarbon production, which is projected to reach 1.5 million barrels per day by 2026. GDP is estimated to grow by close to 8 percent in 2024 and continue to expand at lower rates in the outer years. The baseline projection is for declining fiscal and external balances over the coming years in line with a projected decline in global oil prices.

Avoiding the procyclical spending bias and strengthening Libya’s fiscal framework would enhance macroeconomic resilience and reduce volatility in activity and output. Proper budgeting—based on macroeconomic forecasts, fiscal policy objectives and spending priorities—would assist in delinking spending from revenue volatility and improve the management of Libya’s resource wealth. In this regard, improving costing tools and developing a fiscal framework for resource management would be a critical first step. This could be followed by payroll analysis, harmonization of public investment and recurrent budget processes, and production of more complete budget-related reports. Reducing distortions due to high public sector wages and subsidies is vital to improve incentives and resource allocation, fostering capital formation and employment opportunities outside the public sector. Spending should be reprioritized to enhance growth and efficiency and support intergenerational equity, while tax policy should aim to diversify sources of revenue away from oil.

Full reunification of the central bank remains a key objective, and it requires integration of the payment system and unification of the accounting procedures. Limiting monetary financing by the CBL’s Eastern branch would alleviate pressure on the exchange rate and on banking sector liquidity and facilitate policy coordination. Implementing the CBL’s regulatory and governance reforms in the banking sector would strengthen the banks and help to maintain financial stability.

The authorities should address the underlying pressures on the exchange rate. The central bank should preserve the efficient functioning of the foreign exchange market, since the exchange rate is the key macroeconomic anchor, given the lack of other policy instruments. Measures to influence the demand for foreign exchange should be carefully assessed and weighed against the potential impact on the parallel market, inflation, and reserves. In the absence of conventional monetary policy tools, controlling fiscal expenditure would be the preferred response consistent with Libya’s macroeconomic policy framework. Furthermore, the central bank should maintain the integrity of the means of payment, and the recent steps to withdraw the compromised banknotes from circulation are welcome.

Promoting financial stability and strengthening monetary policy requires a comprehensive reform of the banking sector. Staff outlined a roadmap for such a reform in the 2023 Article IV Consultation, with suggestions in various areas: structural (central bank reunification, banks’ disclosure requirements); banking law (establishment of a financial stability committee; development of Islamic finance); governance (fit and proper requirements; separation between CBL’s ownership and supervisory functions); the anti-money laundering and combating financing terrorism (AML/CFT) supervision (address AML/CFT control failures and poor reporting of suspicious activities); and others. The CBL has been proactive in strengthening the prudential framework, including issuing guidance for banks to increase capital, reinforcing the Financial Information Unit, and promoting financial inclusion through enhancements in electronic payments. Further work is needed to ensure compliance and to strengthen the banking sector.

Governance reforms throughout the public sector are necessary. Despite recent progress on some governance indicators, corruption is perceived to be an important concern in Libya, and further reforms for improving governance, the rule of law, anticorruption institutions and the legal framework would be essential. The enhancement of anticorruption strategies and their effective implementation is also needed. In compliance with the 2018 Policy for Enhanced Engagement on Governance, the 2025 Article IV consultation is expected to undertake a comprehensive review of governance, anticorruption, and the rule of law.

The IMF will continue to provide capacity development assistance but better coordination on the authorities’ part is needed . Significant data gaps continue to affect IMF staff’s ability to conduct analysis and provide policy advice. Capacity development is needed for compiling national accounts and an expanded list of financial soundness indicators. Public financial management (PFM) framework reforms, including strengthening macro-fiscal and budget preparation functions, are needed to improve cash management controls and oversight. Given that capacity development is being delivered by multiple providers (the International Finance Institutions, including the International Monetary Fund, and other organizations), there is a need for the authorities to set up a coordinating body to facilitate CD provision and implementation, and to avoid duplication.

Libya’s longer-term economic strategy should aim to diversify away from hydrocarbons and to foster stronger and more inclusive private sector-led growth. Structural reform efforts should focus on strengthening institutions and the rule of law and developing a clear economic vision for the country. A plan is needed to scale up development spending to alleviate growth bottlenecks and reduce fiscal costs associated with high spending on public sector wages and subsidies. The authorities should capitalize on Libya’s comparative advantages (location, landmass, natural resources, and access to energy and labor) to promote development of labor-intensive non-oil economic activity.

The next Article IV mission is expected in the Spring of 2025.

The mission thanks the Libyan authorities and other counterparts for their hospitality, constructive policy dialogue, and productive collaboration, and acknowledges the continued improvements in data collection, sharing and transparency.

Distributed by APO Group on behalf of International Monetary Fund (IMF).

The South African economy can be significantly boosted, and the growth of start-ups and the private sector – through businesses big and small – that create vital jobs, catalysed through two regulatory reforms: lifting exchange controls on the offshore transfer of intellectual property and introducing tax incentives for investors in start-ups.

“Our research shows that changes to the Exchange Control Regulations relating to the offshore transfer of intellectual property and offshore movement of money could create a net benefit to the South Africa economy of R426 billion over the next five years. In addition, SARS could collect a net increase of R315 billion in tax revenue over the same period. These reforms would not compromise attempts to comply with the Financial Action Task Force standards,” Provincial Minister of Finance and Economic Opportunities, Mireille Wenger, explained.

She continued, “Similarly, improving tax incentives for investors to encourage early-stage start-up enterprises could result in R927 million in total investment raised by the country’s venture capital industry over the next five years. This would result in an additional 79 start-ups, creating 1 840 jobs with total after-tax salaries generated amounting to R890 million.”

These reforms will also allow South Africa to remain competitive against other global destinations, including competitors on the African continent like Nigeria, Kenya, and Egypt.

In 2023, the South African Start-up Act Movement conducted a survey of 52 start-up founders who had moved part or all of their business offshore. Of the respondents, 42 (81%) reported that they had moved their businesses offshore to raise capital from international investors whose main concern was South Africa’s exchange controls.  Views from start-ups consulted all confirmed that investors are increasingly refusing to invest in South African-domiciled companies due to restrictions on the offshore movement of IP.

The WCG is determined to make it as easy as possible for the private sector to do business and create jobs in the province.

This objective lies at the very core of the WCG’s bold new economic action plan, ‘Growth For Jobs’ or G4J, which aims to enable a R1 trillion jobs-rich and inclusive economy, that is growing between 4% and 6% in real terms by 2035.

“The introduction of these reforms is a no-brainer. With current anaemic GDP growth rates, it is our responsibility as government to explore and introduce measures that boost growth so that we can help enable the creation of jobs in South Africa. Our comprehensive proposals, that we have shared with Minister Godongwana, the South African Reserve Bank and the South African Revenue Service, offer a relatively easy path towards achieving rapid growth and expansion in the start-ups sector, aiding South Africa’s economic recovery in the short and long term” Minister Wenger concluded.

Distributed by APO Group on behalf of Republic Of South Africa: Western Cape Provincial Government.