Tunisia’s economic recovery slowed in 2023, due to a severe drought, tight financing conditions and a modest pace of reform, leaving the country’s growth below pre-COVID levels, and making it one of the slowest recoveries in the Middle East and North Africa region, according to the Spring 2024 edition of the World Bank’s Economic Monitor for Tunisia.

The report, Renewed Energy to the Economy, forecasts growth rates of 2.4 percent in 2024 and 2.3 percent in 2025-26, assuming easing of drought conditions and some progress in fiscal and pro-competition reforms. The report emphasizes Tunisia’s improved external balance, its narrowing trade deficit supported by favorable international prices, and its external financing needs that remain significant. The report underscores the urgency of addressing the drivers behind the external financing challenges, including energy deficit, debt service, and level of capital inflows.

Despite gains in the tourism and export sectors, Tunisia’s economy was affected by the impacts of drought-related losses that led to an 11 percent drop in agriculture, underlining the need for adaptation to climate change. These losses have been compounded by limited domestic demand, penalizing sectors such construction and trade. This has led to a rise in unemployment, which reached 16.4 percent in the fourth quarter of 2023, and a drop in labor force participation.

The report delves into the details of the country’s current economic challenges and opportunities. Despite limited demand, inflation remains at 7.8 percent. In particular, food price inflation stands at 10.2 percent. Most of this inflation can be attributed to rising profits and import prices, underlining the significant impact of competition and trade policies on inflationary pressures. On the positive side the trade deficit fell from 17.5 percent of GDP in 2022 to 10.8 percent in 2023, with the current account deficit also narrowing from 8.6 percent to 2.6 percent of GDP over the same period.

Faced with tighter external financing conditions, Tunisia has increasingly relied on domestic banks — and more recently to the Central Bank – to finance its budget. This shift has heightened financial system vulnerabilities and led to a crowding-out effect, where banks devote an increasing share of lending to the government over the private sector.

“Despite ongoing challenges, there are significant opportunities for Tunisia to transform and strengthen its economy. With strategic investments, particularly in renewable energy, Tunisia could significantly enhance its economic resilience and sustainability,” said Alexandre Arrobbio, the World Bank’s Country Manager for Tunisia. “We are committed to helping Tunisia tapping into its rich renewable energy resources, and our report identifies clear pathways to growth and stability. Developing these resources is essential to reducing import dependency and fiscal costs while enhancing energy security and fostering a sustainable economic future.”

A major focus of the report is on Tunisia’s ambitious plans for renewable energy as a solution to its economic and environmental challenges. The country aims to increase the share of renewables in its electricity mix from the current 3 percent to 35 percent by 2030. At present, 2,200 MW of private generation projects have been launched, which are expected to bring the share of renewables up to 17 percent by 2025. The report highlights the large economic benefits of deepening this transition through an ambitious decarbonization agenda. The total investment required is estimated at US$ 4.5 billion by 2030 and could come mainly from the private sector should adequate regulatory conditions be in place. One of the flagship projects on this agenda is the electricity interconnection between Tunisia and Italy (Elmed). This project aims to improve the resilience of the Tunisia’s electricity system and transform it into a net exporter of electricity. This would significantly reduce the country’s dependence on costly natural gas imports and improve its balance of payments.

Distributed by APO Group on behalf of The World Bank Group.

The livestock sector in Africa faces numerous challenges that hinder its growth and have significant implications for food security, economic development, and social stability across the continent. These challenges include high rates of child stunting, dependence on cheap imports, ongoing resource-based conflicts, and the unaffordability of nutrient-dense foods. It is crucial that urgent attention is given to these complex issues and strategic interventions are implemented.

Meeting the nutrition targets set in the Malabo Declaration has proven to be consistently difficult. The 4th Biennial Review Report (BRR) data shows that reducing child stunting remains a long-standing challenge in Cameroon. Alarmingly, 28.7% of children in Cameroon suffer from chronic malnutrition. This not only has a negative impact on the health and well-being of future generations, but also places significant socio-economic burdens on communities and the nation as a whole.

Cameroon heavily relies on cheaper imports of livestock-sourced foods, which hampers the growth of domestic livestock industries. This dependence undermines local producers and deprives African economies of valuable opportunities for job creation, especially for young people. Recent estimates reveal that this reliance has resulted in a staggering loss of USD 110 billion, representing 21.3% of potential economic growth.

Resource-based conflicts, often driven by competition for land, water, and grazing resources, persist in Cameroon. These conflicts directly affect communities that rely on livestock for their livelihoods, contributing to insecurity, displacement, and loss of lives and livelihoods. With 19.3% of the population affected by such conflicts, it is urgent to establish sustainable mechanisms for conflict resolution. Despite the crucial role that nutrient-dense livestock-sourced foods play in combating malnutrition and improving food security, they remain inaccessible for a significant portion of the population due to high prices. Efforts to enhance affordability and accessibility of these essential foods are crucial to addressing nutrition challenges in the continent.

The dairy sector plays a crucial role in Cameroon’s economy, supporting food security, employment, rural development, and poverty alleviation. However, the sector faces market failures due to feed and fodder shortages, which impact milk production. Currently, Cameroon has a cattle herd of 10 million that operates under traditional extensive pastoralism and emerging semi-intensive systems. Both systems face challenges of low milk production and fodder scarcity. Local breeds such as Goudali, White Fulani, and Red Fulani have lower productivity compared to exotic breeds like Holstein, Montbeliard, and Simmental, producing an average of 2 liters per day over a lactation period of 168-171 days, much lower than exotic breeds.

Cameroon’s current milk consumption is 6.67 liters per person per year, falling short of the FAO standard of 22 liters per person annually. With a population of approximately 25 million, this deficit translates to an annual milk shortage of approximately 383,250 tons. To address this, the Government of Cameroon implemented an import-substitution policy and established the National Milk Sector Development Plan (PNDFL).

However, the sector faces challenges such as livestock feed and fodder shortages due to various factors, including seasonal natural pastures, climate change-induced droughts, limited access to water sources, low breed productivity, difficulties in accessing plant genetic resources, land constraints, and inadequate financial services. Addressing these challenges requires investment in pasture management, climate-resilient agricultural practices, infrastructure development, breeding programs, and improved access to financial resources. Overcoming these challenges is vital for the dairy industry in Cameroon to achieve self-sufficiency in milk production, contribute to national development, and ensure food security.

The issue of food and fodder shortage in Africa, particularly in the Sahel and Savanna regions, requires urgent attention as we address climate change, population growth, and socio-economic challenges. Adopting innovative approaches to promote food security is crucial. The Association for the Promotion of Livestock in the Sahel and Savanna (APESS) offers practical solutions to address some of these issues.

In an effort to enhance food security and increase livestock productivity in Cameroon, stakeholders have convened in Yaoundé to launch Cameroon’s Multi-Stakeholder Feed and Fodder Platform (MSP). This initiative is a significant step in tackling the challenges facing the feed and fodder sector, particularly in light of the triple C crises of COVID-19, Climate change, and Conflicts. During the meeting, participants discussed strategies to promote collaboration, foster innovation, and address systemic obstacles that hinder the sector’s growth. The establishment of the MSP signifies a joint commitment to transforming the feed and fodder sector for sustainable development.

To assess the impact of these crises on feed and fodder systems, the Resilient African Feed and Fodder Systems Project (RAFFS Project) conducted a comprehensive study across six key African countries, including Cameroon. The findings showed the urgent need for strategic interventions to strengthen the resilience and efficiency of these systems, which are crucial for sustaining livestock-based livelihoods and ensuring food security.

During the meeting, Mr. Jaji Manu Gidado, the Secretary General of the Ministry of Livestock, Fisheries, and Animal Industries (MINEPA), emphasized the significance of feed and fodder development. He highlighted its role in driving livestock productivity and mitigating conflicts between farmers and herders. Globally, 60% of grain production is dedicated to animal feed, but this figure remains alarmingly low in Africa, posing challenges to livestock farming.

In response to these challenges, African Union Heads of State and Government have endorsed decisive actions to address feed shortages and prevent future disasters. These actions include formulating guidelines for the development of the feed and fodder sectors, establishing emergency response mechanisms, creating multi-stakeholder platforms, and implementing monitoring frameworks.In order to tackle the challenges in the feed and fodder sector, it is essential for the government, policymakers, and stakeholders to take a comprehensive approach to revitalize the livestock sector and harness its potential as a catalyst for sustainable development.

This approach should prioritize investments in local livestock production systems, promote sustainable practices, and enhance productivity in order to reduce dependence on imports and stimulate economic growth. Moreover, efforts to address resource-related conflicts should be intensified by fostering dialogue, promoting social cohesion, and implementing fair resource management strategies that can ease tensions and promote stability. Additionally, initiatives to promote the consumption of nutritious foods derived from livestock should be given priority. Strategies to empower youth and create job opportunities within the livestock sector, such as vocational training, support for entrepreneurship, and improved access to finance and markets, should also be implemented.

The MSP aims to bring together stakeholders from various sectors in order to establish a structured and resilient feed and fodder sector that supports increased livestock productivity, facilitates trade, and creates jobs. Mr. Gidado emphasized the crucial role of feed and fodder in livestock production, highlighting its significance in the development strategy for rural areas. He praised the efforts of stakeholders in advancing animal nutrition and expressed optimism about the sector’s potential for growth and innovation.

Distributed by APO Group on behalf of The African Union – Interafrican Bureau for Animal Resources (AU-IBAR).

Gabon Oil Company (GOC) will participate as a Platinum Sponsor at the Invest in African Energy 2024 forum, affirming its commitment to maximizing production and attracting new players to Gabon’s upstream space.

As Gabon’s national oil company (NOC), GOC is leading efforts to increase production to 220,00 barrels per day on the back of accelerated on- and offshore exploration and the redevelopment of mature and marginal fields. Last February, the NOC acquired the Gabonese assets of US private equity firm Carlyle – the owner of Gabon-focused oil and gas company, Assala Energy – which included seven onshore production licenses, a pipeline network and the Gamba export terminal. While historically serving as a partner to the country’s leading operators – operating only the onshore Mbouma field – GOC is seeking to transform into a more competitive upstream player and is in talks with foreign partners to acquire new technologies aimed at halting declining production.

IAE 2024 is an exclusive forum designed to foster collaboration between European investors and African energy markets. Taking place May 14-15, 2024, in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors, and policymakers. For more information, please visit www.Invest-Africa-Energy.com.

Meanwhile, gas monetization has emerged as a key focus area for Gabon, as the country seeks to eliminate gas flaring, harness untapped associated gas reserves and establish a broad range of gas-based industries. GOC is currently evaluating commercial gas reserves and outlining the investments needed to develop the country’s downstream sector and associated infrastructure. A dedicated “Invest in Gabon” session at the upcoming forum will unpack the country’s oil and gas sector revitalization strategy, with a view to attracting new investments from IOCs.

“GOC has made clear its commitment to revitalizing Gabon’s oil production through renewed exploration and a field optimization strategy. Its participation at IAE 2024 supports Gabon’s efforts to attract new investors and promote its investment opportunities on the global stage,” says Sandra Jeque, Event&Project Director at event organizer, Energy Capital&Power.

Distributed by APO Group on behalf of Energy Capital&Power.

A music concert in connection with the 33rd Independence Day anniversary was held for students yesterday evening, May 7, at Bahti Meskerem Square here in the capital.

The concert, featuring participation from students ranging from junior school to colleges, showcased various musical, cultural, music dramas, and dances.

Lasting for two hours, the event saw performances from cultural troupes such as Aser, Kewakibti Rim, and Meras, along with a comedic act by Dawit Eyob and his team.

Speaking to Erina, Artist Fitsum Yohannes, one of the coordinators of the concert, highlighted that the program was organized as part of the 33rd Independence Day anniversary commemoration and expressed gratitude for the students’ enthusiastic participation.

Similar events are scheduled for members of the Eritrean defense forces on May 11 and residents of the 13 sub-zones of Asmara on May 17.

It is noteworthy that the commemoration of the 33rd Independence Day kicked off with a music concert for students ranging from pre-school to elementary school on April 27.

The Students’ Week, officially commencing on May 7, will run until May 20, featuring participation from students across 256 schools, spanning from kindergarten to high school.

Distributed by APO Group on behalf of Ministry of Information, Eritrea.