Billions of dollars in international economic aid will be needed to reverse decades of border closures, military operations and de-development in Gaza, according to a report published Wednesday by the United Nations Conference on Trade and Development, UNCTAD.

“While lifting all restrictions is a necessary condition for sustainable recovery, it is by no means sufficient,” the report said.  

“Donors and the international community need to extend significant economic aid to repair the extensive damage Gaza has experienced under prolonged restrictions and closures and frequent military operations, which has stifled the economy and decimated infrastructure,” it said.

The report documents economic conditions in the Occupied Palestinian Territories through the end of 2022, prior to the current chain of disastrous events triggered by the October 7 assault on Israel by Hamas militants.

“The economic consequences of the current and ongoing humanitarian crisis in Gaza are important to determine,” said Richard Kozul-Wright, UNCTAD director, division on globalization and development strategies.

He said it was incredibly difficult to assess the damage.  

“It is buildings.  It is hospitals.  It is very difficult to make a proper assessment until the fighting stops but it has got to be in the billions of dollars … in the tens of billions of dollars,” said Kozul-Wright. “What I think the report emphasizes is the worrying trend in aid to the Palestinian economy, plus its inability to generate its own fiscal revenues in an independent way.”

The report says Israel’s decades-long blockade of Gaza has hollowed out its economy, leaving 80% of the population dependent on international aid. It also says nearly half of Gaza’s population is unemployed and that real GDP per capita is close to its lowest level since 1994.

Authors of the report note that since three-quarters of Palestinian trade is with Israel and the Israeli shekel is the main currency in circulation, Israel has a lot of control over the Palestinian Authorities’ fiscal policy.

“Israel collects Palestinian trade taxes because all Palestinian import and export goes through Israel or through Israeli controlled borders,” said Mutasim Elagraa, coordinator of UNCTAD assistance to the Palestinian people.

“Israel effectively controls two-thirds of Palestinian tax revenue and transfers it to the Palestinian government,” he said noting that Israel sometimes delays the transfer or even freezes the transfer, which “makes Palestinians fiscally vulnerable.”

On October 21, Israel partially lifted its siege of Gaza, allowing several convoys of food, water, and medical supplies to enter the territory.  However, the Israeli government has refused to allow fuel into the Gaza Strip, claiming that Hamas has fuel that it is hoarding for use in military operations.

“Lack of fuel will have a profound impact on the humanitarian support that the U.N. is currently providing and is an essential lifeline of many of the inhabitants of Gaza,” said Kozul-Wright.  “So, I think the impact will be immediate on the ground, but it will be difficult to know what its longer-term impact will be on the Gazan economy.”

In its concluding remarks, the UNCTAD report recommends that the “vicious circle of destruction and partial reconstruction [of Gaza] needs to be broken by negotiating a peaceful solution, based on international law, and relevant United Nations and Security Council resolutions, to end hostilities.”

While increasing donor support will be important for the recovery of Gaza’s economy, the report notes that this “should not be viewed as a substitute for ending restrictions and closures” and calls on Israel and all parties “to bear their responsibilities under international law.”
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Nigerian authorities are praising a London high court ruling Monday that overturned $11 billion in damages stemming from a collapsed gas project between Africa’s largest economy and a private company.

In a statement, Nigerian President Bola Tinubu lauded the London Business and Property Court’s ruling in the 2010 gas deal, calling it a victory for what officials termed the “long exploited” African continent.

“Nation states will no longer be held hostage by economic conspiracies between private firms and solitary corrupt officials,” Tinubu said.

Nigeria and Process and Industrial Developments, a firm based in the British Virgin Islands, signed the contract to construct a gas processing plant in Nigeria’s oil-rich region.

The deal, however, fell through, and P&ID took the Nigerian government to court in Britain.

In 2017, an arbitration tribunal ordered Nigeria to pay a $6.6 billion contract award and interest to P&ID.

The government appealed that decision.

The court on Monday said the company had in 2010 paid a bribe to a Nigerian oil ministry official in connection with the deal.

The court also said that P&ID did not disclose that information when the deal failed to materialize and that two British lawyers defending the company stood to benefit if the court ruled in favor of the firm.

Nigerian political analyst Rotimi Olawale said the decision is a relief for Africa’s biggest economy.

“Nigeria literally dodged a major bullet, knowing the foreign exchange issues the country is facing at the moment,” Olawale said. “Getting a judgment of $11 billion would’ve been a big blow to Nigeria’s financial situation.”

The company’s lawyers say they’re disappointed by the outcome and are considering next steps. The firm has denied the fraud allegations and accused Nigeria of incompetence.

Nigeria’s economy has been struggling with spiraling inflation and mounting debts for years. More recently, government reform policies have seen Nigeria’s foreign exchange reserve dwindle significantly, increasing the scramble for U.S. dollars and weakening the local tender.

The $11 billion would have been about one-third of Nigeria’s foreign exchange reserves.

Ebenezer Oyetakin, founder of the Anti-Corruption Network, said the ruling couldn’t have come at a better time.

“It is an example of how many African countries have been mortgaging their economy,” he said. “Definitely it would be of huge help to the dwindling Nigerian economy as we’re witnessing currently. But we should not rest on our oars. We should continue to absolutely stand against corruption.”

Olawale said Nigeria and all of Africa must address institutional corruption.

“The judgment should also give us an opportunity to tidy our home front,” Olawale said. “I feel that Nigeria, like many developing countries, goes into all kinds of dubious contracting. It is on us as a nation to ensure that we do our due diligence and that we harmonize the process in which we do contracting with other parties.”

Reports say the London court could decide to send the case back to arbitration or abandon it without delay.
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South Africa is hosting a summit for participants in the U.S. government’s duty-free Africa Growth and Opportunity Act from November 2 to 4 as the act comes up for renewal. Kate Bartlett spoke to the owners of one South African company about how the trade initiative — which benefits more than 30 countries on the continent — helped them grow their business and enter the U.S. market. VOA footage by Zaheer Cassim.
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Данилишин подякував Раді НБУ, а також чотирьом головам Нацбанку, з якими працював під час своєї каденції
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«Щоб досягти глобального рівня, щорічне збільшення потужності вітрової енергії має досягати щонайменше 329 ГВт на рік до 2030 року»
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The International Monetary Fund is cautioning African nations about the possibility of a regional economic downturn and the ripple effects that China’s slowing economy could bring.

Africa and China have forged economic ties over the past 20 years, making the Asian giant the continent’s largest trading partner. Africa exports metals, minerals and fuel to China, while importing manufactured goods and machinery from that country.

The IMF says the partnership is threatened by China’s economic slowdown and aging population, trade tensions, geopolitics and the ongoing impacts of the COVID-19 pandemic.

Kenya-based businessman Adan Ibrahim, who imports vehicle parts from China, said it was difficult for a long time to access Chinese companies due to COVID-19 regulations, including visa restrictions that allowed relatively few people into the country per month.

“Up to now they have not reopened well,” Ibrahim said. “In terms of movement of people within the country, they even restricted when you travel to China. You [had to] undertake serious checks on health issues. There were … challenges, both economic and health wise.”

In December 2022, China lifted coronavirus restrictions that had prevented easy movement of goods and people.

Gerrishon Ikiara, an international economics lecturer, said the economic problems faced by China and African countries affect their trade relations.

“When African economies are affected either by drought or other problems that may affect various sectors, the negative effect is felt in China,” Iriara said. “If it’s … happening in China, the negative effect is felt in Africa.

“So, it’s important that both the Chinese and African economies are doing well to create a more healthy trading relationship,” he said.

Ibrahim said that as China shifts away from COVID-19 controls, the price of goods has increased and they go unsold.

“The goods that we used to buy with the relatively cheap prices before the COVID are now triple the price that we currently buy with,” he said.

China’s economic recovery from the pandemic slowed in recent months due to a sluggish property market and weak consumer spending. China’s trade data showed that exports and imports continued to decline as demand for Chinese goods waned.

Ikiara said Africa needs to find new trading partners to develop its economies.

“If the Chinese economy is slowing down, Africa needs to diversify its trading partners and to diversify either imports or exports to Asia, other parts of Africa, Latin America and the U.S.,” he said. “If there is a problem with our exports to China, we need to look for new markets.”

The IMF is urging African governments to diversify their economies, increase regional trade integration and create a favorable business environment so that local and international corporations can thrive.
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All of West Maui except for burned-out sections of historic Lahaina will reopen to tourism on Nov. 1 following the deadliest U.S. wildfire in more than century, the mayor of Maui County said Monday.

Mayor Richard Bissen said he made the move after talking about it with his Lahaina advisory team, the Red Cross and other partners.

West Maui has about 11,000 hotel rooms, or about half of Maui’s total. Travelers evacuated those hotels after the Aug. 8 fire raged through Lahaina town, killing at least 99 people and destroying more than 2,000 buildings.

Hawaii Gov. Josh Green last month declared West Maui would officially reopen to tourism on Oct. 8 to bring back badly needed jobs and help the economy recover. Bissen modified the governor’s declaration with a phased plan, allowing a small section on the northern edge of West Maui to open first with the rest to follow at an undetermined date.

The community has had an impassioned debate about when to welcome travelers back to the disaster-stricken region. Some residents drafted a petition opposing the return of tourists, saying the community wasn’t ready.

Bissen said Monday that workers are ready to return to their jobs while acknowledging “this isn’t for everyone.”

Those who aren’t prepared to go back to work on Nov. 1 should talk to their employers and “continue to seek the help and attention that they need,” Bissen said at a news conference in Lahaina that was livestreamed online.

The mayor said many residents are also concerned about not having child care. He said the county’s partners are working on that issue.

Residents who have been staying in West Maui hotels and other short-term accommodations after losing their homes in the fire won’t lose their lodging, the mayor said.

“We’re assured by the Red Cross that their housing will not be in jeopardy,” Bissen said.

The mayor said the reopening schedule was voluntary and said some properties have already reopened on their own. 
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