Global coffee price recorded highs for the first time in ten years as the supply of the bean drops.
Since the production of Brazil coffee is affected on environmental issues and lagging logistics the price of coffee has continued to climb in several months, while the second month, which is November, of the 2021/22 coffee year, the price has continued with its highs according to the monthly price indication of International Coffee Organization (ICO).
The reporter stated that the supply of export coffee of Brazil, the biggest player on the sector, has significantly shrunk.
“Exports of all forms of coffee in October 2021 totaled 9.68 million bags (one bag being 60 kilograms), down 4.4 percent as compared to 10.13 million bags in October 2020. In terms of regional performance during the first month, which is October, of coffee year 2021/22, exports of South America decreased by 20.6 percent to 4.94 million bags as compared to 6.22 million bags in October 2020/21,” ICO said.
“Exports by Brazil decreased sharply at 23.8 percent to 3.43 million bags from 4.50 million bags in 2020/21,” it added.
ICO indicated that in November 2021, coffee prices reached new multi-year highs, as the monthly average of the ICO composite indicator price was 195.17 US cents/ lb (pound), an increase of 7.5 percent as compared to 181.57 US cents/lb in October 2021. (One pound is about 0.45 kilogram).
These price levels during coffee year 2021/22 mark a significant and steady recovery from the low levels experienced over the four preceding coffee years.
As coffee prices continued to increase, intra-day volatility in November 2021 of the ICO composite indicator price increased by 1.2 percentage points to 9.5 percent in November 2021.
The report said that despite the South American export showing reduction, other sources supply has shown increment in the month of October.
“Exports of Asia and Oceania over the first month of coffee year 2021/22 increased by 25.8 percent from 2.49 million bags to 3.13 million bags in October 2021/22. Central America and Mexico shipments during the first month of coffee year 2021/22 increased by 35.0 percent to 0.53 million bags, as compared to 0.40 million bags over the same period during coffee year 2020/21,” the monthly report explained.
Similarly Africa recorded an increase in export by 5.1 percent to 1.1 million bags in October 2021 as compared to 1.0 million bags in October 2020.
Ethiopia, origin of coffee and the biggest Arabica exporter in Africa has been reported that in the first four months of the budget year that started on July 8, the volume and the value of coffee export has climbed not only compared with the preceding year but from the projection to attain.
ICO said that since November 2020, where the ICO Composite Indicator was priced at 109.70 US cents/lb, an increase of 77.9 percent has been recorded. Moreover, the average price of November 2021 is the 10-years high since it was 193.90 US cents/lb in October 2011. The monthly average for September 2011 was 213.04 US cents/lb, “the steady upward trend observed since the start of coffee year 2020/21 shows how the recovery of coffee prices, after four consecutive years of low-price levels, reflects a dramatic change in overall market conditions.”
Coffee price peaks 10-year highs, supply dips
Addis named among top cities with good quality drinking water
A new report reveals that Addis Ababa’s water is one of the best standards even when compared with some cities in the developed world.
The report that was conducted by the Economist Impact said that the capital city’s tap water is suitable for drink.
At the inception the report entitled: ‘The 2021 City Water Optimisation Index’ said that this report investigates the state of water optimisation at the city level and presents the findings of the new City Water Optimisation Index, which can help decision-makers assess their current performance across a range of operational, regulatory and policy domains.
The index assess the availability, reliability and sustainability of water and sanitation services in 51 cities around the word and it said that these cities each face unique water challenges influenced by geography, climate and socio political factors, among others.
The index, which is the first edition, put Los Angeles first as it received the highest overall score in the Index, followed closely by Melbourne, “although the highest overall scorers were largely high-income cities, several low-income and upper-middle-income cities performed well in the individual category scores, particularly in reliability (Dakar and Mombasa) and accessibility (Marrakech),” disclosed the report.
The index said that reliability and accessibility were the two categories in which cities performed best, scoring an average of 72 (out of 100) and 74 respectively. But for sustainability, the average score dropped to 58.
It said that cities measured in the index scored highly on water quality metrics across the board: in 42 out of 51 cities, over 80 percent of treated drinking water meets or exceeds WHO quality standards.
It elaborated that high-income cities score consistently highly on quality metrics; “however, some lower-income cities performed strongly as well, demonstrating that income is not a prerequisite for delivering good quality drinking water to end-users.”
It included Addis Ababa as one of the low incomes cites with good quality drink water for its users.
It read, “This includes Addis Ababa, Dushanbe and Mombasa, all of which have an annual GDP per head of less than USD 5,000, and all meet WHO standards for near-100 percent of their drinking water.”
About the survey, the index explained that in addition to conducting daily manual water quality tests throughout Addis Ababa’s distribution network, the city’s water utility, the Addis Ababa Water and Sewerage Authority, is working with researchers to pilot innovative portable water testing technology in the city, “the new technology is cheaper and more portable than conventional equipment, enabling rapid water quality testing in hard-to-reach areas.”
In addition to bolstering Addis Ababa’s monitoring capabilities, the project has proved the feasibility of near real-time water quality surveillance using this technology and demonstrated its potential applicability for other cities with limited resources.
The index was developed based on a targeted literature review of critical current concepts, best practices and policy themes of urban-level water management, as well as in consultation with water experts from across the globe.
The index framework consists of 47 quantitative and qualitative indicators that assess the extent to which urban water systems feature the necessary policies, infrastructure and systems to optimise their water supply, distribution and treatment networks.
Five cities have been included from Sub Saharan countries including Addis Ababa, Accra and Mombasa.
PVH employees transfer as firm leaves industrial park
Hawassa Industry Park has transferred employees of US-based, PVH Corp following the firm’s decision to close its manufacturing facility in Ethiopia as of November 25, 2021 to other companies operating in the Industry Park.
Fitsum Kebede, CEO of Hawassa Industry Park told Capital, PVH had over 1300 registered employees who following their termination were transferred to other companies based in the park during the past couple of weeks.
“Since most of the workers are experienced it is easy for them to get new jobs with companies in need of experienced employees,” said Fitsum, adding that the park has a duty to save the lives of the employees to which no one was left unemployed as result of the PVH termination.
PVH, the American giant apparel company, with over eight billion dollars in revenue is named as the anchor of the park. The more than century-old company has 30,000 associates operating in 40 countries.
PVH is one of the world’s largest and most admired fashion global iconic brands that include Calvin Klein and Tommy Hilfiger, connecting with consumers in over 40 countries and had also been a marquee occupant of Ethiopia’s model industrial park in the city of Hawassa. The firm built its factory in Ethiopia’s Hawassa Industrial Park in 2016.
As sources from the Industrial Park Development Corporation inform Capital, the company has set COVID-19 and the international market as its main reason for its closure. The company notified the Corporation about its departure a few months ago after the sale of its facilities to another company.
The company had announced its closure without giving any clue to its employees as workers of PVH formed a labor union to ask about their future.
Beside the employees, the company is also in negotiation to transfer the sheds and all of its workers to other companies. However, the name of the company taking over the space has not been disclosed.
PVH like most of its peers called Hawassa Industrial Park which is located south of Addis Ababa, home. The hub which was designed by the government to attract garment and textile manufacturers has defined Ethiopia as a textile and garment manufacturing hub.
Hawassa Industrial Park is one of the national flagship project and the biggest industrial park in the country having 52 factory sheds of 21 international companies which create job opportunities for more than 80,000 workers of which more than 80 percent are women.
ECA release country reports on electricity market regulatory reviews
The Economic Commission for Africa (ECA) and the RES4Africa Foundation have jointly released a series of country regulatory reviews on electricity markets in Ethiopia, Rwanda, Zambia, South Africa and Ghana.
The reports, which aim to support the crowding-in of scaled private sector investment in generation, networks and off-grid markets, were released on 8 December 20201 during an Expert Group Meeting on the theme “Enhancing Electricity Market Regulation in Africa to Accelerate Participation of the Private Sector in Infrastructure Investment,”
The publications are a result of a productive partnership between ECA, through its SDG7 Finance initiative pillar area on energy sector governance, and the RES4Africa Foundation – through its Missing Links initiative.
In 2020 alone, the global energy market saw about $1.9 trillion in investments, of which emerging and developing countries attracted 1/5th. Africa captured only a fraction, signaling the crucial importance of addressing private sector investment participation challenges in the electricity market. Towards this end, addressing regulatory and policy challenges in the sector is essential.
The High-Level Dialogue on Energy (HLDE), which took place in September 2021 considered key recommendations particularly under the thematic area of Finance and Investment to meet SDG7 goals. The HLDE called for a robust private sector participation in energy infrastructure investment across the value chain by addressing uncertainties in policy and regulatory environments. In this regard, the HLDE recommended member States to address the de-risking of projects and fixing regulatory barriers to ensure market openness, attractiveness, and readiness for private-sector finance.
William Lugemwa, Director of ECA’s Private Sector Development and Finance Division, stated that “the work we do on national regulatory reviews, capacity support on regulatory system development using our upcoming software (ROAR), and our work with AUC on a continental framework on regulation and private sector participation are essential in working with member States towards regulatory improvements to meet SDG7 goals.”
Roberto Vigotti, Secretary General at RES4Africa Foundation, acknowledged that “the cooperation between RES4Africa and ECA represents a successful best-practice of public-private dialogue. Today, we are engaged in continuing fostering this partnership and moving forward in supporting interested African countries to foster the openness, attractiveness and readiness of electricity markets”.
In this Decade of Action, member States must accelerate action to meet SDG7 goals, and enable Africa’s just energy transition towards a sustainable energy future for all. In this effort, the private sector should play a robust role in bridging infrastructure finance gaps, particularly in a constrained COVID-19 public finance environment. As member States pursue greater openness, attractiveness and readiness of their electricity markets for greater investment, the released country regulatory assessment reports could offer useful insights and targeted recommendations.
The Expert Group Meeting was organised on the sidelines of the ECA Committee Meeting on Private Sector Development, Regional Integration, Trade, Infrastructure, Industry and Technology on the theme: “Africa’s Economic Development in the Post-COVID-19 Era.”
