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20/06/2023 ---- 24/06/2023

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24.06.2023
THEME: ECONOMY

Kenya and EU Strike Major Trade Deal, Boosting Agricultural Exports and Green Initiatives

Kenya and the European Union (EU) have signed a trade deal, the EU-Kenya Economic Partnership Agreement (EPA), which guarantees duty-free entry for Kenyan agricultural products into the EU market. This agreement will allow Kenya to export €1.2 billion ($1.31 billion) worth of mainly agricultural products to the 27-member bloc, significantly impacting the country's economy since 70% of Kenya's total flower production is sold in Europe.

The deal is the first broad trade agreement between the EU and an African nation since a similar agreement with Ghana in 2016. Kenya will gradually and partially open its market to European goods, with tariffs reduced over a 25-year period. Trade relations between the EU and Kenya have grown by 27% from 2018 to 2022.

As part of the commitment to sustainable growth, Kenya has agreed to enforce binding commitments related to environmental protection, climate action, fighting gender inequality, and strengthening labor rights. Kenya has also signed a trade deal with the United Kingdom in December 2020 and is currently negotiating with the United States and the United Arab Emirates.

In a separate development, South Africa, the Netherlands, and Denmark have launched a $1 billion green hydrogen fund to fight climate change. South Africa's energy transition plan includes setting up an export hub for green hydrogen, which is renewable energy produced without greenhouse gas emissions. The Netherlands and Denmark have expressed their support for South Africa's efforts and plan to contribute to the country's renewable energy, hydrogen, and infrastructure development.

The Kenya-EU trade agreement ensures duty-free and quota-free access for Kenyan goods to the EU, while EU imports to Kenya will receive progressive tariff reductions over 25 years, with some sensitive products excluded. Kenya's main exports to the EU are agricultural products, including vegetables, fruits, tea, coffee, and cut flowers. The EU's Global Gateway initiative aims to increase investments in Kenya by hundreds of millions of dollars, countering China's Belt and Road program.

This deal is the culmination of trade talks between the EU and the East African Community (EAC) that started a decade ago, and the agreement is open for other EAC members to join. Partnerships like these are essential for fostering sustainable growth, promoting fair trade practices, and combating climate change. With the signing of this landmark trade agreement, Kenya and the EU have set a positive example for other countries to follow, paving the way for a greener and more equitable future.

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24.06.2023
THEME: WORLD

EU Imposes New Sanctions on Russia as Tensions Escalate with Wagner Group

The European Union (EU) has imposed an 11th round of sanctions on Russia for its invasion of Ukraine, targeting the transit of goods and technology for military use through Russia and the sale of sensitive dual-use goods and technology to countries potentially reselling to Russia. European Commission President Ursula von der Leyen welcomed the sanctions package, while Ukrainian President Volodymyr Zelenskyy expressed concerns about the slower-than-desired counteroffensive against Russian forces.

Germany has announced an additional €381 million ($416 million) in humanitarian aid for Ukraine, and the EU will add €3.5 billion ($3.8 billion) to a fund for weapons for Ukraine. The UK's Ministry of Defence reports that Russia is building defensive lines in Crimea, and the International Ukraine Recovery Conference held in London saw over 60 countries attending, with Ukraine's Prime Minister Denys Shmygal estimating the rebuilding cost at $750 billion.

The situation in Ukraine has been exacerbated by the destruction of the Kakhovka Dam in southern Ukraine on June 6th, causing flooding and a rising death toll, now at 41. Satellite images show four canal networks disconnected from the reservoir, which held 18 cubic kilometers of water before drying up. The loss of water from these canals is critical for food production in the region, as they yielded about two million tonnes of grain and oil seeds in 2021. The destruction of the dam has had a "huge impact on global food security," as Ukraine is a major exporter of sunflower, maize, wheat, and barley.

Tensions within Russia have escalated between the Russian military and the Wagner mercenary group, headed by Yevgeny Prigozhin. Prigozhin has accused Russian Defence Minister Sergei Shoigu of ordering a rocket strike on Wagner's field camps in Ukraine, and the Russian National Anti-Terrorism Committee has opened a criminal inquiry on charges of making calls for a military coup. In response, Russia's Federal Security Agency (FSB) has filed criminal charges against Prigozhin, punishable by 12 to 20 years in prison.

The feud between the Wagner Group and the Russian military leadership has led to increased security measures in Moscow and other Russian cities. Prigozhin has vowed to topple Russia's military leadership, claiming that Wagner's forces have entered the southern Rostov region, where Defence Minister Sergei Shoigu is located. However, the Russian Defense Ministry has denied these claims and called on Wagner fighters to lay down their arms.

As tensions continue to rise within Russia and between Russia and the EU, the situation in Ukraine remains precarious. The United Nations has placed Russian forces on its annual blacklist for violating children's rights in Ukraine, attributing 136 child deaths in the country in 2022 to Russian forces and affiliated groups. Despite the ongoing conflict, Ukraine remains on course towards opening EU membership talks, while the international community continues to monitor the situation and provide support for the beleaguered nation.

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