President of the African Development Bank Group, Akinwumi Adesina, has warned that the proposed EU carbon border tax could result in an annual loss of $25 billion for Africa, seriously impeding the continent’s trade and impeding industrialization progress. In October, the EU launched the first phase of the world’s first system to impose CO2 emissions tariffs on imported steel, cement and other goods as it tries to stop more polluting foreign products from undermining its green transition. “With Africa’s energy deficit and reliance mainly on fossil fuels, especially diesel, the implication is that Africa will be forced to export raw commodities again into Europe, which will further cause de-industrialisation of Africa.” “Africa could lose up to $25 billion per annum as a direct result of the EU Carbon Border Tax Adjustment Mechanism,” the Bank President told delegates at the Sustainable Trade Africa Conference held at the UAE Trade Centre in Dubai. He stressed that Africa has already been disadvantaged by climate change and is now at risk of being short-changed in global trade.Read more: Business Insider
A recent report by The African Natural Capital Alliance (ANCA) during their co-session with FSD Africa at COP28 reveals critical insights into the exposure of African countries to nature-related risks. According to the report “Nature Stress Testing: Exposure to Nature-Related Risks Across Africa”, 62% of African GDP is dependent on nature services, and 70% of communities in Sub-Saharan Africa rely on forests and woodlands for their livelihoods. The report stated that the reliance on nature services poses significant risks for many African countries due to climate change, deforestation, and degradation of ecosystems. In addition, the report’s findings hold significant implications for financial regulators and private financial institutions across the continent, as their financial systems and portfolios are likely exposed to similar levels of risk. With the African financial sector gaining momentum, the report emphasised a growing need for proactive measures to address nature-related risks and opportunities. Read more: Business Insider
The Indian central bank’s key lending rate was held steady on Friday as growth in the world’s fastest growing major economy is resilient and the outlook for inflation remains uncertain. The six-member monetary policy committee (MPC), consisting of three RBI and three external members, kept the repo rate unchanged at 6.50% in line with the unanimous consensus in a Reuters poll. The vote on the repo rate decision was also unanimous. The central bank raised its forecast for economic growth to 7% from 6.5% after stronger than expected growth in the July-September quarter. “Growth has been resilient and robust, surprising everyone,” Reserve Bank of India (RBI) Governor Shaktikanta Das said. But the central bank’s 4% medium term inflation target is still to be met, said Das. “Monetary policy will remain actively disinflationary.” Read more: CNBC
Japan’s economy fell faster than first estimated in the third quarter, revised data showed on Friday, as the household sector faced growing headwinds, complicating the central bank’s efforts to phase out its accommodative monetary policy. Consumer and business spending both shrank, driving down third-quarter gross domestic product, or GDP. Separate data showed real wages and household spending kept falling in October, as prolonged inflation discouraged shoppers. “Weakness in personal consumption is likely to continue for the foreseeable future, as real disposable income is likely to extend its decline, which is seen as a factor in sluggish consumption,” said Kota Suzuki, an economist at Daiwa Securities. The economy lost an annualized 2.9% in July-September, the revised Cabinet Office data showed, more than a previously estimated 2.1% contraction and market forecasts for a revised 2.0% decline. Read more: CNBC |
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