Herbert Smith Freehills ESG Tracker (SADC Edition)
There are so many ESG-related publications and developments that it is hard to keep abreast of them all. For this reason, HSF publishes a monthly tracker of ESG-related publications and developments, with a primary focus on developments that may be of most interest to or impact our clients in the Southern African Development Community, be they corporates, asset managers or asset owners.
Key updates covered in this edition include:
- UN General Assembly declares access to clean and healthy environment a universal human right.
- In South Africa proposed Regulations pertaining to the exploration and production of onshore oil and gas that require hydraulic fracturing have been published for public consultation.
- President Cyril Ramaphosa addressed the nation on what actions will be taken to solve South Africa's energy crisis.
- New Electricity Law in Mozambique.
If you have any ESG-related questions, please get in touch with your usual contact at HSF who will be able to direct you as appropriate.
This issue covers the period from 1 to 31 July 2022.
ANGOLA
6 July 2022
SOAPRO published a National Report on the Status of Renewable Energy in Angola 2022 at the International Conference on "Renewable Energy in Angola 2022" in Luanda. The comprehensive report provides an up-to-date report on the status of renewable energy in Angola, and an overview of the most recent and future developments in this sector. The Report also includes information on the regulatory framework, resources, projects and financing of renewable energies.
8 July 2022
Angola has increased its fuel production as a result of the launch of a new production unit, the Luanda Refinery complex, which, it is reported, will increase Angola's fuel production to 1,580,000 litres a day and will save Angola US$300 million per year.
25 July 2022
It is reported that Angolan President, Joao Lourenco, has said at a press conference that Angola's investments for the next few years in the energy sector may reach up to US$7 billion, and that the Angolan authorities are working to "electrify" the entire country over the next four to five years.
29 July 2022
It is reported that a number of hydrocarbon energy companies together with Angola's state-owned Sonangol have agreed to invest in a consortium to develop the Quiluma and
Maboqueiro gas fields in Angola. These gas fields are expected to produce 4 billion cubic meters per year by 2026.
BOTSWANA
18 July 2022
The 2021 Mastercard Index of Women Entrepreneurs (MIWE) has, for the third consecutive year, ranked Botswana (38.5%), Uganda (38.4%) and Ghana (37.2%) as the countries with the most women business owners globally
ESWATINI
19 July 2022
Regional efforts to resolve the crisis in Eswatini hit another major stumbling block this week when a second summit intended to discuss a national political dialogue in the troubled kingdom was cancelled at the last moment. The summit would have been chaired by President Cyril Ramaphosa, who currently heads the security organ. Sources said Eswatini's King Mswati had at the last moment said he could only participate virtually, but the other members of the SADC security organ troika, including Ramaphosa, Namibian President Hage Geingob and Botswana's President Mokgweetsi Masisi insisted on a face-to-face meeting with Mswati on such an important issue.
THE DEMOCRATIC REPUBLIC OF CONGO (DRC)
25 July 2022
According to the IMF, growth in the Democratic Republic of the Congo (DRC) sharply rebounded from 1.7 percent in 2020 to an estimated 6.2 percent in 2021. This is well above the 4.5 percent rate in sub-Saharan Africa. The strong recovery was driven by the country's mining and services sector performance. Under a Fund-supported program, the authorities have adopted policies that have helped moderate inflation and stabilize the exchange rate, while commodity prices have supported higher exports, revenues, and international reserves.
27 July 2022
President Felix Tshisekedi presided over the launch of the auction for 30 oil and gas blocks in the Democratic Republic of the Congo. These blocks are located in the world's second largest rainforest. It is reported that this drilling "could release large amounts of carbon into the atmosphere, jeopardising climate goals to tame global warming". It is also reported that the gorillas of Virunga National Park are also at risk, as the blocks extend into the National Park. However, the President assured the public that there would be tight regulations and that modern drilling techniques would "minimise the ecological impact".
LESOTHO
20 July 2022
Lesotho says it will hold general elections on 7 October, in the latest round of polling in the landlocked southern African country. The date was contained in a notice dated 19 July and signed by the head of the country's electoral commission, Mpaiphele Maqutu, but
published on Wednesday. The elections were announced after King Letsie III dissolved parliament, in line with procedures to prepare for new polls.
22 July 2022
Fitch Ratings has revised the Outlook on Lesotho's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at 'B'.
25 July 2022
The British High Commission Maseru is inviting NGOs working with communities in Lesotho and established community-based organisations to bid for small grant funding of up to M100,000, for the sustainable provision of Assistive Technology to people with disabilities in Lesotho. The bidding process is competitive. Only the strongest bids will be selected. The deadline for submitting bids is Sunday, 7 August 2022.
25 July 2022
The British High Commission is inviting NGOs and established community-based organisations to bid for funding for civic and voter education for women.
28 July 2022
The World Bank Group's Board of Directors approved a US$45 million loan for the Government of the Kingdom of Lesotho to increase access to business support services and financial products targeted at micro, small, and medium enterprises (MSMEs) and entrepreneurs, especially women and youth. The project is co-financed by a Global Risk Financing Facility (GRiF) grant in the amount of US$7.5 million. Lesotho, a lower-middle income country, is struggling with persistently high levels of unemployment, informality, inequality, and poverty-all of which have been further exacerbated by the COVID-19 pandemic.
MADAGASCAR
13 July 2022
On 13 July 2022, the World Bank approved the second phase of the Improving Nutrition Outcomes Program. The Program uses a Multiphase Programmatic Approach, which will inject U$85 million consisting of a U$42,5 million credit and a $42,5 million grant into Madagascar in order to assist in tackling widespread stunting in children.
MALAWI
26 July 2022
The World Bank has provided guarantees for US$24 million of equity and shareholder loan investments into a 20MW solar-plus-storage project in Malawi.
29 July 2022
The African Development Fund approved a US$20.2 million grant to increase food production in Malawi. The funds will be used in the African Emergency Food Production Facility project, whereby 500 000 farming households will receive 2,500 tonnes of climate-smart certified cereal and legume seeds, as well as 70,000 tonnes of fertilizer. The farmers will also receive training in climate-smart agriculture through the Technologies for African Agriculture Transformation program.
MOZAMBIQUE
18 July 2022
The African Development Bank, the Green Growth Knowledge Partnership and the World Wide Fund for Nature (WWF), have hosted a dialogue to revalidate Mozambique's commitment to mainstreaming its natural capital to spur the transition to a green economy.
21 July 2022
The International Monetary Fund approved a US$456 million Extended Credit Facility loan to Mozambique with the aim to support economic recovery and policies to reduce public debt and financing vulnerabilities.
28 July 2022
The African Development Bank will provide Mozambique with US$5.6 million to enhance food security in the country; this comes in response to the sever impact which climate change has had on the agricultural yields in Mozambique.
NAMIBIA
4 July 2022
It has been reported that the European Union ("EU") and the Republic of Namibia are to sign an agreement whereby the EU will support Namibia's green hydrogen sector. The details of the agreement are currently not public, but it has been suggested that the agreement will include an export agreement. The EU, in its attempt to reduce its reliance on Russian gas, has been in search of alternative fuel supplies. Currently, green hydrogen consumption only meets 2 per cent of the EU's energy requirements.
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