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South Africa garment sector agrees vaccine rollout campaign (just-style)
The Southern African Clothing & Textile Workers’ Union (SACTWU) is embarking on an initiative to try to drive uptake of the Covid-19 vaccine to 80% of the sector’s workers. The new ‘Covid-19 Vaccine Rollout Campaign Industry Framework Agreement’ will see employer and trade union groups work with the national government and the national health department to encourage industry leaders and workers to take the vaccine. The programme also aims to debunk myths about the Covid-19 vaccine; ensure there is no employment contract discrimination for workers who take the vaccine or decline to do so; and develop customised guidelines for all workplaces on how to facilitate the vaccine rollout.
Tobacco industry outraged as illicit cigarettes flood SA market (Eyewitness News)
There’s outrage in the South African tobacco industry as illicit cigarettes are flooding the market. British America Tobacco South Africa (Batsa) said that an Ipsos study conducted in March showed that 74% of retail outlets in Gauteng, the Western Cape and the Free State were now openly selling illegal cigarettes. The sector believed that an 8% hike in tobacco taxes appeared to have triggered an all-out price war in key provinces. Batsa said that the March Ipsos survey showed that over 7% more retailers had been selling illegal cigarettes compared to February. The cigarette manufacturer claimed that brands owned by the Zimbabwean Gold Leaf Tobacco Corporation and manufacturers associated to Fita were competing in the illegal market.
SA’s mining production increased by 0.8% year-on-year in Feb – Stats SA (Eyewitness News)
South Africa’s mining production and mineral sales saw an increase in February. Stats SA has released its latest report on the mining industry on Tuesday, the first of several reports on key economic indicators due this week. Mining output had already been in decline for two years pre-COVID-19. It’s coming off a low base, but mining production increased by 0.8% year-on-year in February 2021. Leading the charge are iron ore miners, contributing over 65% followed by Manganese Ore contributing more than 21%. The report shows coal and gold, once the pillar of the nation’s economy, were significant negative contributors.
Trademark data reveals South African investment has opened previously closed markets in Mozambique (World Trademark Review)
Due to their geographical proximity and the fact that they share a common border of 493km, the economic and human relations between Mozambique and South Africa date back a long way. Trade relations between the two countries, in the economic configurations in which they exist today, were established at the end of the 19th century and followed inconstant periods of rapprochement and distance. Since then, the two countries have continued to maintain close commercial relationships. South Africa has invested significantly in the Mozambican economy, thanks largely to the fact that Mozambique is an attractive destination for foreign direct investments (FDI). Indeed, in 2011 FDI became the country’s main source of income. In terms of trademarks, South African applicants own approximately 5,500 national trademarks in Mozambique. They rank second after applicants from the United States, which own approximately 5,850 national trademarks.
Namibia’s trade habits unmoved (The Namibian)
February’s export basket mainly consisted of minerals such as copper, pearls and precious stones (diamonds), non-monetary gold and copper concentrate. Namibia’s trading patterns seem to remain stagnant – especially with regards to exporting minerals to China and importing the basics from South Africa. According to the Namibia Statistics Agency’s trade statistics for February this year, there has been no change in trading partners, products or the local trade approach of extracting and shipping out. Statistician general Alex Shimuafeni says China continues to be Namibia’s largest export market, while South Africa maintains first position as Namibia’s largest source of imports.
In terms of imports, Namibia goes all over the world looking for copper, then exports it to China, the Netherlands and Australia, who seem to know how to best utilise this, since copper accounts for 62,4% of its total re-exports. These trade statistics come at a time when politicians are advocating economic transformation and diversification, which is yet to be reflected in trade statistics.
Govt assures Kenyans of adequate maize in the local markets (Kenya Broadcasting Corporation)
The Government says the recent stoppage of unsafe maize was necessitated by continuous surveillance on the safety of food imports to Kenya, where test results for maize imported from Uganda and Tanzania revealed high levels of mycotoxins consistently beyond safety limits. In a statement Tuesday, Cabinet Secretary Ministry of Agriculture Livestock, Fisheries and Cooperatives Peter Munya further averted fear over alleged shortage of maize in the country saying projections up to the end of May 2021 indicate a surplus of 11,807,681 90kg bags, with the price of maize expected to remain stable. He noted that the government has taken several measures to facilitate safe trade of maize and other related food commodities across the East African Community (EAC).
Kenya Team to Verify Uganda’s Sugar Quality (East African Business Week)
A team of officials from the Kenya Ministry of Trade is in Uganda for a sugar quality verification mission. Their objective is to ascertain the origin and status of Uganda’s sugar in order to be considered for further increase of quota to 90,000 metric tons in export to Kenya. The verification Mission will also involve other Agricultural products from Uganda such as Maize and milk, which, are key exports from Uganda to Kenya. “Recently we had a bad relationship between Uganda Kenya especially on issues related to trade. Particularly on the export of Uganda agricultural products such as Maize Sugar, poultry products. However, with the coming of the Kenyan delegation it will help both countries to iron out non-tariff barriers that hinder effective trade between the countries,” she said.
Kenyan Delegation in Kampala to End Row With Uganda (Kenyans.co.ke)
The Kenyan government has sent a high-power delegation to Kampala to resolve a protracted trade row regarding export and import duty charges on frequently used commodities. The delegation will inspect Uganda’s sugar processing plants to verify the claims that President Yoweri Museveni’s country imports sugar from Brazil and repackages it to sell to Kenya. The delegation team, formed through the Ministry of Trade, seeks to erase the allegations and find ways to improve bilateral trade between the two countries. “For sugar to be exported to Kenya and Tanzania, it has to be wholly obtained and manufactured from Uganda. So Kenya has come to erase all those false allegations,” stated Uganda Ministry of Trade Industry & Cooperatives Senior Commercial Officer Dan Ssekamwa.
UK, Kenya travel restrictions to disrupt cargo transport, trade (The East African)
Cargo transportation between the UK and Kenya may be disrupted by up to a week from April 9 as the two countries seek an amicable solution on the admittance of crew on their respective soils. Last week, both countries suspended passenger flights to each other’s territories in tit-for-tat decisions over lack of uniform controls on Covid-19. The problem is, neither side has an agreeable design of a vaccine certificate and what details it should contain.
Why new border stop is yet to enhance Kenya-Ethiopia trade (Business Daily)
When Kenya and Ethiopia launched the Moyale one-stop border post (OSBP)in December, it was hoped that the impact of the facility would be immediately felt. After decades of subdued bilateral trade, largely due to non-tariff barriers such as long bureaucratic procedures, bans and sanctions, the facility was expected to usher in an era of seamless trade between the two countries. The new border crossing is meant to consolidate clearances for travellers, and transporters, under one roof so that they do not have to undergo two processes for approval. But it appears they will have to wait longer to reap the dividends of the facility on lack of harmonised border operations.
Why Rwanda’s weekly coffee export revenues dropped (The New Times)
Rwanda’s weekly coffee export revenues dropped by 672 per cent in the week ending April 11, after prices on the world markets plunged. The performance, which reflects a more than six-fold drop, is also attributed to quality exports as well as reduced quantities. According to the National Agricultural Export Development Board (NAEB), last week Rwanda exported 115,200 kilogrammes of coffee which generated $198,720 (about Rwf192 million). In the previous week, statistics show, the country had exported 366,780 kilogrammes of coffee, fetching $1,336,935 (about Rwf1.3 billion).
Chamber of Aquaculture appeals for tax waivers to enable industry compete in AfCFTA (Myjoyonline)
The Chamber of Aquaculture Ghana is appealing for tax waivers from the government to enable the industry compete with other African countries participating in the Africa Continental Free Trade Area. “We are now going to compete with other fish producing countries in Africa. As you know – Ghana – we don’t have waivers on the materials that we use to produce fish feed. And in Ghana, fish feed alone contributes close to 70% of the production cost so if we can get state agencies or the government to give ours some tax exemptions or waivers, this will go a long way to help the sector to be prepared and ready to compete with other countries outside Ghana,” he noted.
New portal aims to ease Nigerian business (ICLG.com)
A new registration system raises hopes of making business easier in Nigeria, but further reforms are required to capitalise on new opportunities. A new online portal for registering companies was launched in Nigeria earlier this year, in line with the government’s aim of improving the ease of doing business. The Company Registration Portal (CRP) was established by the Corporate Affairs Commission (CAC) on 4 January, replacing a paper-based system, and incorporates features including electronic search, and pre- and post-incorporation filings.
France-Nigeria bilateral trade drops by $2.2 billion in 2020 – Official (Premium Times)
France, on Tuesday, announced that its volume of trade with Nigeria in the year 2020 dropped to $2.3 billion, from $4.5 billion in 2019, as a result of COVID-19. The French Minister in charge of Foreign Trade and Attractiveness, Frank Riester, disclosed this at a meeting he held with Nigeria Governors’ Forum (NGF), in Abuja, as part of his two-day official visit to Nigeria. “We are optimistic of the future, when the crisis will be ending, because we have many companies that have settled here. We want a win-win partnership between our two countries. He said that as the largest economy in Africa and the economic engine room of West Africa, Nigeria is indeed a major partner for France.
Fifty years, five problems – and how Nigeria can work with China in future (The Conversation Africa)
As at 31 March 2020, Chinese loans to Nigeria stood at US$3.121 billion, which is 11.28% of the country’s external debt of US$27.67 billion. The growing trade and presence of Chinese finance in Nigeria has also led to changing narratives about increased migration on both sides. Over the years, Nigeria’s relationship with China has broadened and deepened with China’s growing power and interest in securing its regional interests (particularly within the South China Sea), and taking its place as a major global actor. The governments of both Nigeria and China often describe their relationship as a “win win” partnership – a term China often uses to describe its relationships with other African countries.
Trade Picks Up on Cameroon-Nigeria Border, Despite Boko Haram (Voice of America)
Officials in Cameroon and Nigeria say economic activity has gradually resumed along their border, despite the continued presence of the terrorist group Boko Haram. Markets have re-opened and border merchants say traveling near the border is safer thanks to a heavy presence of troops.
DHL partners with Angola’s Unicargas to boost trade (The Africa Logistics)
DHL Global Forwarding (DHL) is teaming up with Angolan cargo carrier, Unicargas to promote the export of locally-produced goods to Europe and the US. Egidio Monteiro, CEO of DHL Global Forwarding Southern Africa, says: “Partnerships like this play a vital role in promoting economic growth, which are largely fueled by a vibrant pool of local enterprises ready to extend their reach.” As part of a five-year partnership agreement, Unicargas will take care of the domestic transport of products within the country whilst the leading international provider of air, ocean and road freight services will assist in exporting Angolan-made products to international markets, specifically Europe and North America which collectively makes up about 20% of total exports from the country.
African regional and continental news
Sustainable, inclusive manufacturing needed in Africa (Engineering News)
Africa needs sustainable and inclusive manufacturing to bolster economic growth and create jobs and now is an opportune time for this to mitigate the impact of the pandemic and capitalise on opportunities afforded by the African Continental Free Trade Area (AfCFTA). This was indicated by speakers during a ‘Manufacturing in Africa for Africa’ roundtable, held on April 13.
Private sector plays a vital role in implementation of AfCFTA- SACU Secretariat (Namibia Economist)
With an enormous market presented by the African Continental Free Trade Area (AfCFTA), it is incumbent upon the Southern African Customs Union (SACU) private sector to seize and capitalise on the opportunities to grow their business through regional value chains and cross-border trade, SACU Executive Chair, Paulina Elago said. Elago said this when SACU Member States, Botswana, Eswatini, Lesotho, Namibia and South Africa came together for the first time since launch of the AfCFTA on 1 January 2021, to discuss issues related to the implementation of the trade bloc.
The SACU Council of Ministers has agreed to prioritise industrialisation through the development of Regional Value Chains, Export and Investment promotion. “To that end, the region is currently undertaking technical work to outline a systematic approach and practical steps to scale up the region’s industrial base and to strategically positioning itself to take full advantage of the opportunities offered by the AfCFTA,” Elago said. She highlighted the importance of the Trade Facilitation component, explaining that SACU has, through its Customs Modernisation Programme, laid the groundwork that will enhance efficiency in Customs operations. SACU Member States Customs IT Management Systems are now linked to automatically exchange information. A full presentation on the SACU Customs Modernisation Programme will be given at a later stage. In addition, SACU Member States are participating in the in online Non-tariff barriers (NTBs) mechanism for speedy reporting and resolution of NTBs which the AfCFTA has been put in place.
AfCFTA, COMESA to Establish Cooperation Framework
The African Continental Free Trade Area (AfCFTA) Secretariat and COMESA will establish a partnership framework to support the implementation of the continental trade regime. Technical teams from the two organizations are expected to start working immediately on the framework by establishing committees to deal with specific aspects of the partnership. This was resolved during the first visit by the Secretary General of the AfCFTA Secretariat Mr. Wamkele Mene to the COMESA Secretariat in Lusaka, Zambia today. “The priority now is how to work together to push back the frontiers of poverty in our continent,” he said adding that industrial development and deepening intra-Africa trade was among the key areas of focus.
Digital trade provisions in the AfCFTA: What can we learn from South–South trade agreements? (ODI SET)
This paper analyses digital trade provisions in existing South–South (S–S) trade agreements, with the aim of helping negotiators and policymakers from Africa better understand the practical policy implications behind typically existing and upcoming digital trade-related provisions. This can help guide the design of an effective E-commerce Protocol in the AfCFTA that facilitates inclusive development in Africa. Digital trade involves products ordered digitally but delivered physically through online marketplaces (e.g. ordering a book from Amazon) as well as products that are wholly electronically delivered (e.g. buying an e-book) – that is, electronically transmitted or ET products. The African market is an important destination for the ET exports of African countries. South Africa, Mozambique, Kenya, Tanzania and Mauritius emerge as the top 5 African countries driving intra-African exports of potentially digitable products i.e. potential ET products, with South Africa accounting for 46% of total intra-African exports and 31% of intra-African ET imports. Some countries are highly dependent on intra-African trade for ET products; 70% of exports of digitable products by Rwanda, Mauritius, Namibia, Burundi, Togo, Zambia, Ghana, Zimbabwe and Eswatini are intra-African.
Harmonization of standards made necessary for intra-Africa trade in AfCFTA (GhanaWeb)
The Acting Director in Charge of the Western Corridor, at the Ghana Standards Authority, Jessica Nkansah has revealed that standards have been harmonized across the African continent in the wake of the implementation of AfCFTA in order to facilitate trade among party states. Jessica Nkansah, who is also the Head of the Competent Authority for Fish and Fishery Products at the Ghana Standards Authority said this during an interaction with the general public on the Eye on Port program. She revealed that some product lines that hitherto did not have existing standards in party states before the coming into operation of the free trade agreement, had to adopt international standards which would be accepted and harmonized at the African regional level as well as the sub-regional level.
New continental digital address platform unveiled to ease services, trade (Independent)
A continental digital address platform has been unveiled to purposely ease the location problems associated with the least developed countries. Known as the Africa Digital Address System, ADAS, the platform developed by a Ugandan based tech startup seeks to combat the challenges of providing services to people without proper formal addresses, according to the developers. With it, anyone can create, personalize and possess simple and unique addresses. Yusuf Kayiwa, the lead developer of the app says African communities have similarities in the way their settlements are structured and face the same issues related to traceability or finding locations.
ECOWAS and UNDP build capacity of women to grab opportunities in AfCFTA (BusinessGhana)
The United Nations Development Programme (UNDP) in collaboration with ECOWAS, has commenced a three-day capacity building programme to equip women with knowledge and skills to grab opportunities in the African Continental Free Trade Area (AfCFTA). “Women are Africa’s traders…If you look at any market, and in fact any border of this continent. The majority of traders will be women, however, women remain at the lower rung of the value-chains in the agricultural sector, when trading in goods, women often sell primary and perishable agricultural produce,” Mr Frederick Mugisha, an Economic Advisor, UNDP, said. “Similarly, in services, women are often found in lower rungs of the ladder in the hospitality industry. In essence, the AfCFTA must account for and address the challenges that women face,” he said.
How Africa’s women traders are poised to drive regional integration (The New Dawn Liberia)
African women represent more than 70 per cent of workers in the informal sector. However, many women continue to face barriers to trade opportunities, such as access to raw materials, increased economies of scale, integration into regional and global value chains, technological challenges, and access to finance to name a few. Women and youth, two groups with the potential to drive the transformation of Africa’s economies, must be mainstreamed into national and continental frameworks in order to guarantee and fully harness the benefits of the AfCFTA. “Women must lead the way for economic independence in Africa,” emphasized Silver Ojakol, Chief of Staff at the AfCFTA Secretariat. “40% of intra-African trade is dominated by micro, small and medium sized enterprises (MSMEs). These businesses are mostly managed by women and youth and form a significant segment of the export portfolio within Africa.”
AfCFTA to promote inclusive trades for women and youth in Africa (Nairametrics)
Inclusive economic development remains one of the core elements of both the African Union’s Agenda 2063 and the United Nations Sustainable Development Goals (SDGs). In furtherance of this, article 3(e) of the AfCFTA main Agreement and article 27(2)(d) of the Protocol on Trade in Services specifically mandate State parties to promote gender equality and “improve the export capacity of both formal and informal service suppliers, with particular attention to micro, small and medium-sized; women and youth service suppliers.” The young population when properly harnessed will heighten productivity and provide affordable labour which in turn may lead to increase in investment. Nigerian youths just like their counterparts in other African States are known to be very innovative and enterprising. With the right policy and the enabling infrastructures, this energic population can drive the AfCFTA agenda.
Boost for African airlines as cargo demand jumps 44pc (Business Daily)
African airlines’ cargo demand in February increased by 44.2 percent compared with the corresponding period in 2019, marking a strongest growth of all the regions, according to International Air Travel Association (IATA).The news comes as a boost to airlines that have been struggling for the last one year after passenger numbers declines following imposition of Covid-19 restrictions. According to IATA, a strong expansion on the Asia-Africa trade route contributed to the strong growth with February international capacity growing by 9.8 per cent compared to February 2019.
PAP Committee takes stock of Model Laws on Gender and Disability in Africa (African Union)
The Pan-African Parliament (PAP) Permanent Committee on Gender, Family, Youth and People with Disability has convened virtually to conduct an assessment on the formulation of a Gender Parity Model Law. The Committee was also briefed on the status of the African Model Law on Disability adopted by the PAP Plenary in October 2019.
CEPI and the African Union join forces to boost African vaccine R&D and manufacturing (Africa CDC)
The Coalition for Epidemic Preparedness Innovations (CEPI) and the African Union Commission have today announced the signing of an memorandum of understanding, which aims to strengthen ties between the organisations and the Africa CDC – a specialised institution of the African Union responsible for the prevention and control of diseases in Africa – to enhance vaccine R&D and manufacturing in Africa. This collaboration forms a major part of CEPI’s longer term epidemic and pandemic strategy, announced in March, 2021. As part of this strategy, CEPI aims to work with low-income and middle income countries to develop the infrastructure and expertise to undertake the epidemiological and clinical studies needed to advance vaccine development, support technology transfer, and develop national and regional manufacturing capacity that will enable these countries to take full ownership of their national health security.
Africa can’t rely on goodwill, targets 60% of local vaccine manufacture by 2040 (RFI)
African leaders, healthcare experts, biotech companies and pharmaceutical multinationals on Tuesday met for the second day of a virtual conference on ramping up the local manufacture of Covid-19 vaccines. The initiative will give impetus to the continent’s challenging quest of securing adequate supplies and provide a template for other treatments in the future.
“People who do not have their own freedom for vaccine manufacturing, diagnostics and therapeutics do not guarantee their own health security,” said Dr John Nkengasong, head of the Africa Centres for Disease Control and Prevention (CDC). “I think we have learnt that over and over in the last couple of months,” said Nkengasong, talking about the challenges in vaccinating the continent’s 1.3 billion people against the coronavirus. Almost all the vaccines used on the African continent are imported, with only 1% of vaccines actually manufactured in African countries, representing some 12 million doses, according to conference slides from Africa CDC and the African Union bloc. “The production of vaccine and access to vaccine is an absolute necessity for our continent,” said African Union head Moussa Faki Mahamat, outlining the need for a “new world health order”.
ECA stands ready to accelerate cooperation and technical support to member States (UNECA)
The Economic Commission for Africa (ECA) stands ready to cooperate and provide technical support to member States so they can meet their national aspirations as well as continental and global goals such as the African Union’s Agenda 2063 and the 2030 agenda for the sustainable development. This was said Monday by the ECA’s Sub-Regional Office for Southern Africa Acting Director, Sizo Mhlanga, in his welcoming remarks during a Government of the Republic of Namibia stakeholder validation workshop on the country’s efforts to create an integrated performance management framework that would contribute to the effective and efficient delivery of services to its citizens.
The renewal: US-Africa relationship (Mail & Guardian)
In his first allocution to African leaders at the virtual African Union Summit in February, recently elected United States President, Joe Biden, reiterated his administration’s commitment to rebuilding partnerships with Africa and re-engaging with international institutions such as the African Union. With the new US administration putting a strong emphasis on renewed partnerships with the African continent, the “less aid, more trade” adage will be a key motivator in ensuring bilateral trade and commercial relations.
On one hand, successful implementation of the AfCFTA will participate in the continent’s sustainable development and prosperity, while also propelling Africa on the global stage as a viable trade partner. On the other hand, the AfCFTA presents an opportunity for a single point of entry from the US into Africa. The agreement will shape harmonised policy and regulatory framework, reducing costs of transaction, and increasing commercial transaction.
Furthermore, with the African Growth and Opportunity Act (AGOA) set to expire in 2025, the need for the US and the African Union (AU) to maintain trade and investment ties beyond that date is essential to deepen the cooperation between the two. The AfCFTA offers an opportunity for the US and the AU to work together towards their common goal of increasing trade and investment, both inside and outside the continent. The new US administration’s change of tone indicates an interest for the US to regain its influence in Africa, and strengthening trade ties will plan a key role in achieving this.
Global economy news
DG Okonjo-Iweala: Equitable vaccine access key to sustained recovery for growth and trade (WTO)
The Director-General met bilaterally with United States Trade Representative Katherine Tai. The meeting focused on scaling up the global COVID-19 response and addressing gaps in the global production and distribution of vaccines, personal protective equipment and other medical supplies and the broader WTO reform agenda. “In all of my discussions in Washington, D.C. it was clearer than ever that a sustainable and inclusive economic recovery from the COVID-19 pandemic means rapid, equitable access to vaccines, especially in developing and least developed countries. Continued vaccine scarcity and the related threat of dangerous new viral variants are the top risks to the rebound in global economic activity and trade: nobody will be safe until everyone is safe.
LDCs support request made by India, South Africa for waiving COVID vaccine-related IPR (Outlook India)
The 46-member grouping of the Least Developed Countries has said it supports a request made by India and South Africa to the WTO to temporarily suspend intellectual property rights for the COVID-19 vaccines to increase their access in these countries. India, which has been at the forefront of the global fight against COVID-19, told the UN General Assembly last month that vaccine inequity will defeat the collective global resolve to contain the coronavirus as the disparity in the accessibility of vaccines will affect the poorest nations the most. India and South Africa have called for the World Trade Organisation to suspend intellectual property rights related to COVID-19 for a limited period of time, to ensure rapid scaling-up of manufacturing of vaccines and ensuring accessibility and affordability of vaccines for all.
DG calls on WTO members to narrow remaining gaps in fisheries subsidies negotiations (WTO)
Director-General Ngozi Okonjo-Iweala on 12 April urged heads of WTO delegations to stay engaged in the fisheries subsidies negotiations and aim to reach an agreement by July. The talks have reached a considerable degree of maturity, and members should make the compromises necessary to get to the finish line, she said in her remarks to open a cluster of week-long meetings of the Negotiating Group on Rules. “Concluding these negotiations is a top priority for this organization, not only for the fisheries, but also for the WTO system. We simply cannot afford to fail here,” she said. “We have reached a considerable degree of maturity in the negotiations and we should do what it takes to close it.”
Slight increase in aid only a drop in the ocean to combat the Covid-19 crisis (Oxfam International)
Figures published today by the OECD show that development aid has slightly increased in 2020. While this rise provides a lifeline for millions of people living in poverty around the world, it’s simply not enough. With extreme poverty skyrocketing for the first time in over twenty years and increasing economic and gender inequality exacerbated by the Covid-19 crisis, rich countries are facing and failing the biggest test the aid system has seen since its creation 50 years ago, said Oxfam.
Reacting to the news, Oxfam’s global aid policy expert, Julie Seghers, said: “In 2020, rich countries spent 0.32 percent of their gross national income on aid, up from 0.30 percent in 2019. This increase is welcome, but is partly due to declining national incomes, and still fails to fulfil 50-year-old promises of 0.7 percent of GNI. If rich countries had kept their promise, aid budgets would have been boosted by an additional $190 billion in 2020 alone – more than enough for low- and lower-middle income countries to vaccinate their entire population and guarantee basic education for all.
Communiqué from the Small States Forum April 2021 (World Bank)
As we noted when we last met in October 2020, small economies have responded to the crisis with all the resources, capacities, and international support available to them. Yet the pandemic has significantly diverted resources towards immediate health and economic relief, away from meeting our countries’ daunting longer-term development challenges. It has also exposed and exacerbated pre-existing vulnerabilities.
Debt vulnerabilities in many small economies continue to grow, severely constraining the capacity to invest in recovery and in urgently-needed climate action. The relief provided under the Debt Service Suspension Initiative (DSSI) has helped many small states by freeing up resources to increase social, health, and economic spending in response to the crisis. We appreciate the G-20’s call on private creditors to participate in the DSSI on terms comparable to those offered by official creditors as well as ongoing efforts to implement the Common Framework for Debt Treatments beyond the DSSI, and we encourage the Bank and the IMF to work with all small states to help them to address debt vulnerabilities on a case-by-case basis.
Gender and the SDGs in the decade of action (Observer Research Foundation)
Already before the pandemic hit, global data suggested the following slow toll of progress vis-à-vis women’s equality: One in three women experience physical or sexual violence; less than 24 percent of national parliamentarians are women; women account for three times more unpaid care and domestic work as men; women are 25 per cent more likely to live in abject poverty as compared to men; at least one law impeding women’s economic opportunities exist in over 150 countries. That progress against these rampant inequalities have been further diluted, derailed or curtailed in various instances is telling of the underlying social norms and systemic constructs that have marginalised women for several generations – 47 million more women and girls are expected to fall into poverty as a result of the pandemic.
Empowering family businesses to fast-track sustainable development (UNCTAD)
UNCTAD and the Family Business Network (FBN) have joined forces to mobilize and support family firms to embrace sustainability in their business strategies. The joint Family Business for Sustainable Development (FBSD) initiative is a first-of-its-kind partnership between the UN and the global family business community. Two-thirds of businesses worldwide are owned or managed by families, employing 60% of the world’s workforce and contributing over 70% of global GDP. “Family firms can make a huge difference in global efforts towards sustainable development,” said James Zhan, UNCTAD’s director of investment and enterprise. He said family businesses need to be empowered to maximize their potential and seize the untapped opportunities associated with embracing the sustainability agenda. To deliver on the UN Sustainable Development Goals (SDGs) by 2030, an ambitious global effort is required over the next decade to accelerate sustainable solutions to the world’s economic, environmental, social and governance challenges.
Related News
tralac Daily News
National trade and trade-related news
Five retail categories that will lead the sector’s recovery in 2021 (IOL)
StatsSA’s latest figures show retail trade falling 3.5 percent year-on-year from 2019 to 2020, continuing a 10-month downward spiral. However, South African retailers are starting to show signs of adapting to the needs of the changing market. Dov Girnun, chief executive of Merchant Capital, said that although the sector has yet to recover from a combination of the country’s Covid-19 measures and reduced consumer spending power, the company’s collection data suggests the early signs of recovery in several key categories. “We’re starting to see South Africa’s retail sector adapting to the reality of new customer preferences, lifestyle changes, the impacts of Covid-19 and technological developments. We believe the retail sector is on the mend, and will see greater recovery throughout 2021,” Girnun said.Figures from Merchant Capital show five categories that could drive the retail sector’s recovery this year
South African citrus: Capacity, infrastructure may be “tested to the limits” (FreshFruitPortal.com)
While hopes are high for the South African citrus season in terms of production volume, the industry looks set to be challenged by a lack of refrigerated containers and sky-high shipping costs. The country expecting citrus exports in 2021 to set another consecutive record - now revised even further upwards by the Variety Focus Groups to 162 million cartons in total - driven in large part by late mandarins.
However, Citrus Growers Association of Southern Africa (CGA) CEO Justin Chadwick cautioned that there "could well be a challenge" in meeting the citrus industry's expected demand of 95,000 reefer containers this season. This figure rises to 120,000 when deciduous and subtropical fruit volume is included.
Special Economic Zones continue to perform well (SAnews)
South Africa’s Special Economic Zones (SEZs) continue to thrive despite the challenges brought on by COVID-19, says Deputy Minister of Trade, Industry and Competition, Nomalungelo Gina. In a statement on Tuesday, Gina said the SEZ programme continues to attract investors. “This has seen the value of operational investments increasing from R17.7 billion by the end of the third quarter of the 2019-2020 financial year to R19.5 billion by the end of the third quarter of 2020-2021 financial year. “This is a positive increase of R1.8 billion. During the same period, the number of investments have increased from 129 to 143,” said the Deputy Minister.
As part of the economic recovery and reconstruction plan, South Africa is using the SEZs to reignite manufacturing-led industrialisation in an accelerated manner.
KRA targets Sh81bn on removal of tax reliefs for wealthy (Business Daily)
Wealthy individuals and firms have lost more than Sh80 billion in annual tax breaks after the Treasury withdrew a raft of incentives in April last year to partly make up for losses as a result of short-lived Covid-19 reliefs. The Treasury estimates the Kenya Revenue Authority (KRA) will collect Sh81.29 billion in the first 12 months following withdrawal of some income and value added tax (VAT) breaks in early days of Covid-19 pandemic shocks. Treasury secretary Ukur Yatani used the Tax Laws (Amendment) Act, which handed businesses and households tax reductions between April and December last year, to remove some of VAT exemptions and rebates on corporate income tax. The Treasury and the taxman have in recent years been looking to claw back some of the preferential rates of tax, investment deductions, tax reliefs, zero-rating for VAT purposes, remissions of taxes and exceptions.
Kenya in new search for oil off Lamu coast (Business Daily)
Kenya has launched a fresh search for oil and gas in its Indian Ocean territory by tapping an American firm to conduct seismic surveys to detail petroleum prospects within Lamu County. “We are pleased Kenya’s Ministry of Energy and Petroleum selected ION to increase the understanding and promote the hydrocarbon potential of these offshore resources to attract future investment,” said ION senior vice president Joe Gagliardi in a statement confirming the deal.”The programme will leverage our extensive data library and knowledge offshore Kenya and East Africa.”
Kenya, Pakistan to review trade agreements (The Standard)
The governments of Kenya and Pakistan are in high-level discussion to review the bilateral trade agreement of 1983 to harmonise business levels between the two states. The talks are geared towards harmonising tariffs and diversifying products traded between the two countries as they aim to hit one billion dollars annually.
According to Dr Julius Bittok, Kenya’s ambassador to Pakistan, the two states are set to review their bilateral trade agreement to increase and sustain trade and investment as well as diversify products traded. “The countries have enjoyed good trade in tea and rice. We seek to diversify into new products aimed at boosting volumes and exchange rate earnings between our countries,” Dr Bittok told The Standard.
Uganda, Kenya Officials Meet in Kampala to Resolve Ban on Ugandan Sugar Exports (Chimp Reports)
A Kenyan delegation led by Amb. Johnson Weru, the Principal Secretary of State-Department for Trade and Enterprise Development is meeting Ugandan officials from Ministries of Foreign Affairs and Trade led by Ms Grace Adong, the Acting Permanent Secretary of the Ministry of Trade, Industry and Cooperatives to discuss the Kenya – Uganda sugar export crisis. The closed door meeting is underway at the Ministry of Foreign Affairs in Kampala. In July 2020, Kenya banned sugar imports, opting to solve challenges facing the country’s sugar industry. The East African country had announced a ban on all sugar imports and subsequently revoked all sugar import permits, some of which were held by Ugandan manufacturers and exporters. However, in January 2021, Kenya lifted the ban and allowed to import 90,000 tonnes of sugar from Uganda after, Uganda through the Uganda Manufacturers Association (UMA), clarified to Kenya that it had enough sugar both for domestic and export markets and denied importing sugar from outside the Common Market for Eastern and Southern Africa (COMESA) region.
Rwanda banks on seed multipliers to increase cassava production (The New Times)
It requires ‘quick multiplication of cassava clean seeds’ as part of efforts to scale up new disease-resistant cassava varieties on about 200,000 hectares that are used for cassava growing in Rwanda, researchers have said. “The average of cassava production is 15 tonnes per hectare due to using traditional seeds that have diseases yet model farmers using the cassava clean seed are harvesting over 35 tonnes per hectare,” he explained. Figures show that some farmers are still even harvesting below the potential yield.
Build The Nation: South Sudan Prioritizes Infrastructure Development (Africa Oil & Power)
While several African countries saw significant delays to infrastructure projects due the COVID-19 pandemic, South Sudan has been committed to dramatically raising its living standards, spurring industrialization and generating economic benefits through large-scale infrastructural investments. Built against a backdrop of reformed political stability, the new administration is focused on improving infrastructure to stimulate growth and investment across energy and non-energy sectors. Accordingly, the country is prioritizing significant improvement of roads, the revitalization of power generation infrastructure and the development of improved water and sanitation infrastructure, supported by a new Infrastructural Development Plan and the establishment of foreign partnerships.
By prioritizing new and improved road networks, South Sudan is growing both trade and transportation opportunities within the country. By focusing on linkages with the wider region, South Sudan is opening up trade and transportation opportunities, encouraging economic growth in the process. “Logistics is one of our biggest problems that we are trying to solve. Last year, we started work on national roads that will connect South Sudan to both Ethiopia and Sudan. This will assist with the movement of goods and materials, especially to the oil fields, which are very close to the borders of both countries,” H.E. Awow Daniel Chuang, Undersecretary, Ministry of Petroleum, told Pump Africa.
Egyptian Customs Authority’s digital platform mandatory by July 2021 (CGTN Africa)
Egyptian ministry of Finance has announced a new decision regarding the Customs Authority’s new digital platform, which goes live later this year, stating that shipping companies will be required to send information about their cargo electronically to the platform.
Companies shipping to Egypt must follow the new rules as the second stage of the pre-registration (Advance Cargo Information) system begins and joining the system becomes mandatory in July 2021. The decision includes stipulations for importing companies to electronically send shipping and cargo data and documents, such as packing lists and commercial invoices, to the new Advance Cargo Information (ACI) system. Importers are also required to review and confirm shipment files and documents with the shipment identification number (ACID), and approve them using an electronic signature.
The system, part of the National Single Window for Foreign Trade Facilitation (Nafeza), is meant to facilitate customs procedures and improve border security.
Algeria to reopen its border with Libya as part of its diversification plans – by becoming hub for sub-Saharan transit trade | (Libya Herald)
After Mauritania, Mali and Niger, Algeria is to reopen its land border with Libya and Tunisia soon, Algerian Echoroukonline.com reported yesterday. The northmost Libyan Algerian land border crossing is the Ghadames-Debdeb crossing. The revelation was made by Algerian Trade Minister Kamal Razik yesterday speaking on the side-lines of the opening day of the Inter-African Exchanges event organized by Condor Electronics at the International Convention Centre in Algiers. Razik was quoted as saying that the opening of border crossings with neighbouring countries is aimed at exporting and importing African products, and stressed that Africa is and will remain the historical and strategic depth of Algeria. He said Algeria is ready and will help African countries import their products, as well as from around the world through Algeria and deliver them by road to the Algerian border.
Nigerian banks earn N216 billion in E-banking income amidst threat from challenger banks (Nairametrics)
Nigerian banks raked in a sum of N216.52 billion from their e-business earnings in the year 2020 as tier-1 banks popularly known as FUGAZ (First Bank, UBA, Access Bank, GT Bank, and Zenith Bank) topped the list of highest earners. Income from digital channels is also classified as electronic business or banking income by the majority of commercial banks. Nairametrics gathered this research from the audited financial statements of 12 of the leading banks in the country. The same banks reported N217 billion in income from digital channels in 2019 dipping marginally by 0.24%.
The International Islamic Trade Finance Corporation (ITFC) a member of the Islamic Development Bank Group (IsDB) and the Republic of Cameroon have signed on April 12, 2021 two agreements in a virtual signing ceremony between H.E. Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development (IsDB Governor) and Eng. Hani Salem Sonbol, CEO, ITFC. The first signing is a three-year framework agreement amounting to US$ 750 Million under which ITFC will provide to Cameroon a financing envelop of US $ 250 Million annually over a period of three years to facilitate the imports of key commodities in the strategic sectors of energy, mining, in addition to the health sector with medical supplies including healthcare equipment. It will also sustain its already strong support to the priority sector of agricultural with the exports of agricultural commodities such as cotton, soy amongst others.
A resilient sector amid the crisis is one of the conclusions of a major study conducted by the International Trade Centre’s (ITC) Global Textiles and Clothing Programme (GTEX) and Middle East and North Africa Textiles Programme (MENATEX) on the impact of the COVID-19 pandemic on the Tunisian textile-clothing sector. The report also shed light on the post-pandemic opportunities and the sector’s recovery plan.
In collaboration with the Ministry of Industry and Small and Medium-Sized Enterprises, la Fédération Tunisienne du Textile et de l’Habillement (FTTH) and the Technical Center for Textiles, the study is based on a survey conducted by national and international experts in 248 companies, spread over nine regions and seven production chains, between April and September 2020.
African regional and continental news
AfCFTA: Africa must shun detractors (GhanaWeb)
Mr Silver Ojakol, the Chief of Staff of the African Continental Free Trade Area (AfCFTA) Secretariat, has asked African countries to shun detractors and doubters of the successful implementation of the Area. There is geopolitics and those that cast doubts about the implementation of AfCFTA, “We, however, know at least from the studies of the United Nations Economic Commission for Africa and the World Bank that if successfully implemented, the AfCFTA will add $450 billion onto Africa’s trade portfolio by 2035 and lift 30 million people from extreme poverty and another 68 million from moderate poverty. “We also know that this should catalyse infrastructure development in the continent,” he said.
AfCFTA promises to unlock the potential for African women to move to macro businesses (The East African)
For decades, African women have been trapped in poverty cycles due to several underlying factors including unequal access to education, factors of production, and trade facilities; inequitable labour saving technologies; underpaid or unpaid labour; harmful cultural practices; and limited legal protection from gender inequality practices entrenched in society. To break the cycle of poverty and inequalities, the African Union continues to advocate for the development and implementation of policies and legal; frameworks that will create a wider array of opportunities for women, and which will lead to their economic empowerment at the national and regional levels, and ensuring that the development envisaged for Africa is inclusive and sustainable. With the launch of trading under the African Continental Free Trade Area (AfCFTA) in January 2021, the expectations are high as relates to the expanded business prospects for women-led businesses, which will unlock the potential for African women to grow their businesses from micro to macro enterprises.
Furthermore, the AfCFTA Protocols on Trade in Goods, Trade in Services, Investment, Intellectual Property Rights and Competition Policy, provide clear guidelines to ensure emerging enterprises and infant industries are protected thus adding impetus to the Agenda 2063 goals of gender equality, women empowerment and youth development.
Women remain integral part of AfCFTA agenda ― Co-chairman (Nigerian Tribune)
Co-champion of the National Action Committee on the African Continental Free Trade Area (AfCFTA) for Transportation, Mrs Funmi Folorunsho, has revealed that women remain an integral part of the agenda and activities to be implemented under the agreement. Folorunsho made this declaration during a courtesy visit on the Iyalode of Egbaland, Chief Mrs Alaba Lawson, in Abeokuta, the Ogun State capital, as part of efforts aimed at making women thrive as vital components of regional trade activities. She noted that AfCFTA activities will leverage on women and the youth because of the advantages they offer in the business.
SADC pushes for a one-stop cross border post to reduce congestion (News24)
The Southern African Development Community (SADC) Parliamentary Forum’s standing committee on trade, industry, finance and investment has called for the harmonisation of cross-border trade systems to reduce “trade costs and time spent at borders”. This echoed calls that were made by the governments of South Africa and Zimbabwe earlier in the year after thousands of people and vehicles were stuck at the Beitbridge border post for days following the Christmas and New Year holidays. At the time, the delays resulted in more than 100 people reportedly testing positive for Covid-19. The standing committee, chaired by Zimbabwe Member of Parliament, Anele Ndebele, met virtually on Sunday under the theme: “Enhancing regional economic integration through infrastructure development: A case of one-stop border post”. Discussions centered on ways in which regional economic integration, through infrastructure development - with a special focus on one-stop border posts, could be enhanced.
The African Development Bank, the African Union Commission, and the United Nations Economic Commission for Africa will host a webinar to discuss the implications of the latest Africa Regional Integration Index for the East African Community, the Common Market for Eastern and Southern Africa, and the Southern African Development Community. Policymakers, analysts, government leaders, the private sector and task managers can expect to gain insight into how to accelerate and deepen regional integration in Africa. The Africa Regional Integration Index is the most authoritative source of data on the progress and scope of Africa’s regional integration. The second edition was published in May 2020, and includes dedicated online data platforms and tools to help users, especially policymakers, better understand the methodology and statistics of the index.
African Experts Urge Local COVID-19 Vaccine Manufacturing (Voice of America)
Africa is lagging in vaccinating its people against the COVID-19 disease, and continental heads of state and international health officials say vaccine manufacturing must come to Africa in earnest to combat both the illness and future health emergencies. These experts, alongside African heads of state and international finance figures, are meeting virtually this week to hash out an ambitious plan to bring more manufacturing capability to the continent. South Africa only recently started to make the COVID-19 vaccine, but is the main producer on the continent.
“There remains a shocking imbalance in the global distribution of vaccines, as I have said many times,” he said. “More than 700 million vaccine doses have been administered globally, but over 87 percent have gone to high-income or upper-middle-income countries, while low-income countries have received just 0.2 percent. The pandemic has shown that global manufacturing capacity and supply chains are not sufficient to deliver vaccines and other essential health products quickly and equitably to where they are needed most. That’s why building up vaccine manufacturing capacity in Africa is so important.”
Related:
- Call for African medical supplies manufacturing facility (SAnews)
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Africa falling behind in Covid-19 vaccination race, must expand vaccine production, say leaders (Sowetan Live)
Covid-19 Africa: What is happening with vaccines? (BBC News)
Some African countries could face delays to their vaccine rollouts as they use up initial supplies, according to the World Health Organization (WHO) and the Africa Centres for Disease Control (CDC). Meanwhile, both organisations have recommended that the AstraZeneca vaccine should continue to be used despite concerns raised about its safety. How are African countries getting vaccines?
Globally, populations wait in earnest for the effective eradication of the coronavirus. The COVID-19 pandemic has brought unprecedented distress to the African continent through continual COVID-19 related sicknesses and loss of lives. In addition, the pandemic has negatively impacted several socio-economic sectors such as health, education, economy, agriculture, and trade. As such, the pandemic has altered the cultural and social dynamics of how people live. For instance, numerous countries have put measures in place, such as partial national lockdowns, and have recommended minimal socio-economic activities to sustain social distancing.
African countries have prioritized vaccine roll-out towards their citizenry in utilizing it to improve herd immunity against COVID-19 and subsequently reduce hospitalization and deaths from COVID-19 related sicknesses. Through various agreements and mechanisms, such as the COVID-19 Vaccines Global Access (COVAX), several African countries have acquired vaccine shots for their national campaigns, although inadequate. Vaccine manufacturing delays and the subsequent unavailability of adequate vaccines to meet demands is a global problem. To mitigate this, the available vaccines are being prioritized towards Africa’s populations’ riskier sectors, such as health workers and frontline workers.
As more vaccines are being procured to meet demands, lessons have been learnt from the initial vaccination roll-out targeted towards frontline and riskier sectors. These challenges will be exacerbated when scaling up the vaccination programme to cover their entire population, if not mitigated. Besides current vaccine supply shortages, some African countries are falling short on accelerated vaccination programmes within their countries. African governments are faced with the dilemma of systematically and effectively implementing distribution mechanisms of the vaccines to reach every community in their countries.
Vodacom Group partners with AUDA NEPAD for major vaccine roll-out | AUDA-NEPAD
Vodacom Group, part of Vodafone Group, will work with AUDA-NEPAD to build digital infrastructure to manage vaccinations across up to 55 countries, following successful deployments in South Africa - to manage Covid-19 vaccinations - and in Mozambique, Tanzania and Nigeria - to manage infant inoculations. The roll-out of mVacciNation, developed by Mezzanine, a member of the Vodacom Group, is the first project in a public-private partnership that has been formed between Vodacom Group and AUDA-NEPAD to boost Africa’s digital transformation and build resilience for the post-Covid world.
Dr Ibrahim Mayaki, CEO of AUDA-NEPAD, said: “The response to the Covid-19 crisis has significantly accelerated the adoption of frontier technologies. Africa’s booming digital sector offers great opportunities for public-private partnerships to help build resilience in the aftermath of the Covid-19 crisis and respond to critical continental priorities. As the development agency for the African Union, we act as a channel to connect innovators and governments to roll-out and localise these solutions.”
Covid response deflates project spending across eastern Africa (The East African)
Eastern African countries cut $68.3 billion spending on infrastructure projects last year, the largest decline in number of projects and value of projects in sub-Saharan Africa in a year. This is as a result of the economic fallout from the Covid-19 pandemic sweeping across the region, hitting public finances and pushing governments into massive indebtedness .The Africa Construction Trends Report (2020) by consultancy firm Deloitte released last week shows that the number of infrastructure projects in the region covering Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda dropped by 35 per cent to 118 in 2020 from 182 in 2019 while the total value of the projects declined by 47 per cent to $77.7 billion from $146 billion in the same period.
COMESA COVID-19 Taskforce Team Discusses Pandemic with African Union CDC (COMESA)
The COMESA Secretariat COVID-19 Taskforce led by Assistant Secretary General for Programmes (ASGP) Amb. Dr Kipyego Cheluget on Tuesday 6 April met representatives from the Africa Union Centre for Disease Control (AU – CDC) to discuss the pandemic and how the Secretariat should plan and prepare to return to work physically. The Secretariat closed physical operations and migrated to online operations in March 2020 due to the continued escalation of COVID-19 cases in Zambia and the region.
Rwanda tops region, takes bulk of $142m IMF debt relief (The East African)
Countries in the region led by Rwanda and Tanzania are drawing benefits from over $142.7 million in debt relief from the International Monetary Fund (IMF).This comes even as the Bretton Woods institution last week approved a third tranche of grants for debt service relief, for 28 member countries, under the Catastrophe Containment and Relief Trust (CCRT). Rwanda leads the region in the countries that enjoy the highest debt relief at $71.23 million, followed by Tanzania at $26.43 million. Burundi is third at $25.42 million, while Ethiopia wraps up the list at $19.71 million, latest figures from IMF shows. Kenya, South Sudan, and Uganda are not part of the 28 countries that were picked to benefit from the debt relief programme.
“This tranche of grants for debt service relief will continue to help free up scarce financial resources for vital emergency health, social, and economic support to mitigate the impact of the Covid-19 pandemic,” IMF said, adding that subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period through from October 2021 to April next year, amounting to $964 million.
New report on Africa’s agriculture industry explores prospects for intra-regional trade growth (Myjoyonline)
A new focus report produced by the global research and advisory firm Oxford Business Group (OBG) shines a spotlight on Africa’s agriculture sector, examining the potential it holds to strengthen food security across the region and the tech-led solutions that are expected to be key in driving post-pandemic growth. Titled “Agriculture in Africa 2021”, the report charts the industry’s performance to date on both a regional and country-by-country basis.The report in partnership in partnership with OCP Group, the world’s largest phosphate mining and leading fertilizer company, gives crucial facts and figures on topics that include variations in land use and crop production, cross-border trade volumes, agriculture’s contribution to GDP and financing.
Financing climate change in Africa (Independent)
As Africa struggles to emerge from shocks caused and accelerated by climate change amidst the COVID-19 pandemic, world leaders have committed to prioritise actions that will help the continent emerge stronger, healthier and more resilient. Speaking April 06 during a virtual leaders’ dialogue convened by the African Development Bank (AfDB), the Global Centre on Adaptation and the Africa Adaptation Initiative, more than 30 African heads of state and other global leaders rallied behind a bold new Africa Climate Change adaptation programme. The leaders resolved that the continent’s development –be it in infrastructure, food security, urban development, and youth empowerment through education, jobs and entrepreneurship– can take a different path based on a deep understanding of climate risks. “Africa’s only choice is to adapt to climate change. We all must change how we plan, invest and grow in a warming world,” they said.
Leaders of the Southern African Development Community (SADC) are now considering, without foreign interference, tackling frequent insurgency devastating regional development, causing havoc to human habitation and threatening security in southern Africa. This collective decision came out after the Extraordinary Double Troika meeting on 8th April in Maputo, Mozambique.
Many international organizations and foreign countries have responded with humanitarian support and with financial aid aimed at alleviating situation, specifically in Mozambique and generally in southern Africa.
As a first step, SADC has called for cooperation in cross-border surveillance as essential to stem the flow of foreign fighters fomenting terrorism in Cabo Delgado, and further warning the spread of violence throughout southern Africa. Among other measures, SADC suggested that southern African police and judicial systems must consistently work to combat trafficking and money laundering that funds terrorism.
Global economy news
WTO chief seeks solutions to ‘glaring’ vaccine inequity, upbeat on IP waiver (Reuters)
The head of the World Trade Organization said on Monday a meeting this week to tackle “glaring” inequity in COVID-19 vaccine allocation will be attended by major manufacturers and look at solutions such as firing up idle or under-used manufacturing plants in Africa and Asia.
WTO Director-General Ngozi Okonjo-Iweala, a former Nigerian minister and World Bank executive who took up the position last month, has vowed to “forget business as usual” at the ailing 25-year-old global trade watchdog and said her top priority was to address the COVID-19 pandemic.The April 14 meeting will bring together vaccine makers from the United States, China and Russia, ministers from wealthy and developing countries, and banking officials to discuss vaccine export restrictions, scaling up manufacturing and a waiver of intellectual property rights for COVID-19 drugs and shots, she told Reuters.
Guterres calls for ‘paradigm shift’ to recover from COVID setbacks (UN News)
Secretary-General António Guterres painted a grim picture of the past year during which more than three million have died from the virus. Around 120 million have fallen into extreme poverty and the equivalent of 255 million full-time jobs have been lost.
He noted that as the speed of infections is increasing, ”the crisis is far from over”. “An enormous push at the highest political level” is needed, said Mr. Guterres, to reverse these dangerous trends, prevent successive waves of infection, avoid a lengthy global recession and get back on track to fulfil the 2030 Agenda for Sustainable Development and the 2015 Paris Agreement on climate change.
Advancing an equitable global response to recover from the pandemic is “putting multilateralism to the test”, the UN chief said, adding, “so far, we have failed”. To illustrate this, he pointed out that just 10 countries globally account for around 75 per cent of COVID vaccinations given, noting that some estimates put the global cost of unequal access and vaccine hoarding at more than $9 trillion. Mr. Guterres underscored the need for “unity and solidarity” to save lives and prevent catastrophic debt and dysfunction.
UN chief urges wealth tax of those who profited during COVID (ABC News)
Secretary-General Antonio Guterres declared Monday that the world’s failure to unite on tackling COVID-19 created wide inequalities, and he called for urgent action including a wealth tax to help finance the global recovery from the coronavirus. The U.N. chief said latest reports indicate that “there has been a $5 trillion surge in the wealth of the world’s richest in the past year” of the pandemic. He urged governments “to consider a solidarity or wealth tax on those who have profited during the pandemic, to reduce extreme inequalities.”
Guterres told the U.N. Economic and Social Council’s Forum on Financing for Development that since the pandemic began “no element of our multilateral response has gone as it should.”
“Advancing an equitable global response and recovery from the pandemic is putting multilateralism to the test,” he said. “So far, it is a test we have failed.” “The vaccination effort is just one example,” Guterres said, stressing that just 10 countries account for around 75% of global vaccinations and many countries haven’t even started vaccinating their health care workers and most vulnerable citizens. “Some estimates put the global cost of unequal access and vaccine hoarding at more than $9 trillion,” he said.
Financing for Sustainable Development Report 2021 | United Nations
The 2021 Financing for Sustainable Development Report (FSDR) of the Inter-agency Task Force on Financing for Development warns that COVID-19 could lead to a lost decade for development. The report highlights the risk of a sharply diverging world in the near term where the gaps between rich and poor widen because some countries lack the necessary financial resources to combat the COVID-19 crisis and its socioeconomic impact. Short-term risks are compounded by growing systemic risks that threaten to further derail progress, such as climate change. The report recommends immediate actions to prevent this scenario and put forward solutions to mobilize investments in people and in infrastructure to rebuild better. It also lay outs reforms for the global financial and policy architecture to ensure that it is supportive of a sustainable and resilient recovery and aligned with the 2030 Agenda
New ODI report urges stakeholders to urgently rethink how Development Finance Institutions invest (ODI)
ODI’s report, Development Finance Institutions: need for bold action to invest better, finds that progress towards the vision set out in the AAAA has been slow, with major course correction required in order for the investment potential of DFIs and Multilateral Development Banks (MDBs) to be realised. ODI’s report urges shareholders of DFIs and MDBs to urgently rethink their objectives and investment approaches. To do so, the report puts forward the following recommendations: 1) A new focus on transformative investment and market creation – especially in lower-income countries (LICs) and lower-middle-income countries (LMICs)2) Mobilisation of institutional capital at scale, especially in upper-middle-income countries (UMICs).
For transformative investment this would include close coordination with governments, donors and the public sector operations of MDBs who should step up efforts to support upstream policy reform. It would also mean developing new investment opportunities. This would require an increased focus on pipeline development, demonstration and early-stage investments, and would also require a shift away from the use of senior debt towards an increased use of high-risk capital, for example, in the form of grants, equity, mezzanine financing including convertible finance and contingent grants, as well as guarantees.
COVID-19: What low-income countries need for a more equal recovery (World Economic Forum)
Many of the poorest countries in the world are facing the threat of a weak recovery, and setback in their development path. A new IMF paper suggests that low-income countries will need approximately $200 billion until 2025 to improve their pandemic response, and a further $250 billion to catch up with advanced economies.
Several factors hamper the economic recovery of low-income countries. First, they face uneven access to vaccines. Most of these countries rely almost entirely on the multilateral COVAX facility—a global initiative aimed at equitable access to vaccines led by a consortium of international organizations. COVAX is currently set to procure vaccines for just 20 percent of the population in low-income countries. Second, low-income countries have had limited policy space to respond to the crisis—in particular, they have lacked the means for extra spending (see chart).
From Financial Innovation to Inclusion – IMF F&D
For technology to benefit everyone, private sector innovation needs to be supported by public goods Digital technology is transforming the financial industry, changing the way payments, savings, borrowing, and investment services are provided and who provides them. Fintech and Big Tech companies now compete with banks and other incumbents across a range of markets. Meanwhile, digital currencies promise to transform the heart of finance: money itself. But just how much has technology advanced financial inclusion? For sure, in the past year alone, digital finance has helped households and businesses meet the challenges posed by the COVID-19 pandemic. It has also given governments new ways of reaching those who need support.
COVID-19 strategies must invest in human-centred recovery, ILO tells World Bank/IMF
COVID-19 crisis recovery policies must be human-centred and address pre-existing world of work challenges as well as the impact of the pandemic, the Director-General of the International Labour Organization (ILO), Guy Ryder, told the members of the Development Committee and the International Monetary and Financial Committee (IMFC), who convened during the 2021 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF). Citing the sharp increase in poverty and inequalities seen since the pandemic began, he also warned delegates that without comprehensive and concerted policy efforts, “there is a very real risk that the COVID-19 crisis will leave a legacy of widening inequality and social injustice.” Coherent, multilateral action is essential to ensure that economic and social recovery is as human-centred as the impact of the pandemic itself, he said, pointing out that the ILO Centenary Declaration for the Future of Work, adopted unanimously by ILO Member States in 2019, offered an internationally-agreed roadmap to more inclusive and resilient societies.
Tackling the data gap in the fight against illicit financial flows | UNCTAD
UNCTAD is working with national statistical offices to better measure the scale of illegal movements of money across borders to inform firmer policy action.
As the world frantically searches for the funds needed to recover from the COVID-19 crisis and achieve the United Nations Sustainable Development Goals (SDGs), concerns remain that billions of dollars of illicit financial flows (IFFs) will slip through the cracks this year. A conceptual framework designed by UNCTAD and the UN Office for Drugs and Crime (UNODC) can help governments measure IFFs better and design more effective policy responses. “The pandemic has made it even more urgent to track illicit financial flows,” UNCTAD’s chief statistician, Steve MacFeely, said. “Without resources, countries will not be able to achieve SDGs, and progress that has been made may even be reversed.”
Only Multilateral Cooperation Can Stop Harmful Tax Competition (Inter Press Service)
US Treasury Secretary Janet Yellen has urged all governments to support a global minimum corporate tax rate of at least 21%. The US is working with other G20 nations to get other countries to end the “thirty-year race to the bottom on corporate tax rates”.
As countries raced to the bottom, offering increasingly generous tax incentives to attract investments by transnational corporations (TNCs), the average worldwide statutory corporate tax rate fell from 40% in 1980 to 24% in 2020. Thus, US$500–600bn, or around 10–15% of annual global corporate tax revenue, is lost yearly to TNCs shifting profits to tax havens, using base erosion and profit shifting (BEPS) book-keeping.
Developing country governments undertook reforms reducing often progressive direct income tax systems in favour of supposedly neutral, but actually regressive indirect taxation on consumption. Digitisation and changing business models are making it more difficult to determine the actual location of economic activities. Thus, digitisation enables BEPS, reducing revenue due to under-reported taxable income. Consequently, in 2017, developing countries lost US$10bn in revenue from e-commerce compared to HICs’ US$289 million loss. Least developed countries lost US$1.5bn while sub-Saharan African countries lost US$2.6bn.
Supported by the G20, the OECD has been working on BEPS since 2013. The OECD BEPS initiative seeks to check tax base erosion by setting a global minimum corporate income tax rate and taxing TNCs selling cross-border digital services. OECD and G20 countries now aim to reach consensus on both by mid-2021.
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National trade and trade-related news
Government encourages SA businesses to market to Africa’s population (IOL)
Deputy trade, industry and economic development minister Fikile Majola this week encouraged South African businesses not to focus on serving the country’s population of 60 million but the continent’s 1.2 billion people. Majola was addressing a webinar organised by the ANC’s Progressive Business Forum (PBF) on the African Continental Free Trade Area (AfCFTA).
He promised that the government would produce an AfCFTA implementation plan during the current financial year. “Each master plan will include an AfCFTA chapter, key sectors including auto, steel, poultry, sugar, agro-processing, clothing and manufacturing. Provinces and districts, using our district development model, will be assisted to identify both opportunities for firms in their areas and the local and provincial government contributions to realise their potential,” Majola said.
“We also aim to identify export champions that will support small, medium and micro enterprises and black industrialists to gear up for new markets,” he added.
SA must forge a new economy in a global reality (SAnews)
President Cyril Ramaphosa says South Africa must forge a new economy in a new global reality. “We have to both recover the ground that we have lost due to the Coronavirus pandemic, and to gain new ground by placing our economy on a fundamentally different growth trajectory,” President Ramaphosa said in his weekly newsletter on Monday.
He said the country’s economic recovery plan is not about a return to what was, but about transformation to what is next. “One of the concrete ways that we can do this is by harnessing the job creating potential of the digital economy, whose growth has only been accelerated by the Coronavirus pandemic,” President Ramaphosa said.
Namibia’s total merchandise trade in February declined to the level of N$13.9 billion, which is 18.4% less than its level of N$17.1 billion in January 2021 and lower by 1.1% from its February 2020 level of N$14.1 billion, the Namibia Statistics Agency’s monthly trade report released on Thursday states. Statistician General Alex Shimuafeni said during February, Namibia’s trade composition by partner illustrated that China continued as the largest export market while South Africa maintained its first position as Namibia’s largest source of imports. “The composition of the export basket mainly comprised of minerals such as copper, pearls and precious stones (diamonds), non-monetary gold and copper concentrates. Fish was the only non-mineral products among the top five exports. On the other hand, the import basket comprised mainly of copper, petroleum and petroleum products, motor vehicles, telecommunication equipment and medicinal and pharmaceutical products,” he added.
Imprints of COVID-19 thwart local ventures in Namibia (CGTN Africa)
Despite economic revival efforts in Namibia, some businesses operating in the country continue to struggle following disruptions due to the COVID-19 pandemic. “It has been a struggle to sell locally, and much more difficult to export the products to neighbouring countries,” he said.
A survey of COVID-19 effects on selected businesses conducted by the Namibia Statistics Agency in 2020 revealed that the manufacturing sector reported the highest number of businesses adversely affected by COVID-19, followed by the hotels and restaurants and construction. “In addition, reduction in international customer demand was highlighted as the second most current effects experienced by the businesses,” according to the report.
Opportunities to export protective clothing (Sunday Mail)
THE Southern African region has abundant mineral resources, making mining activities some of the largest economic drivers across the countries. Zambia, one of Zimbabwe’s key trading partners is big on copper and is the second largest copper producer in Africa after another SADC country, the Democratic Republic of Congo (DRC).
Evidence shows that local companies are still to unlock opportunities in production and supply of protective clothing to mining companies spread across the Southern African region. Apart from the mining sector, sectors such as agriculture, health and construction offer untapped opportunities for local companies to supply a wide range of protective clothing. Protective clothing falls under the broad category of personal protective equipment (PPEs), which now includes overalls, safety boots, gloves, helmets, and eye protection equipment such as safety goggles. Zimbabwean companies are already producing competitive and quality PPEs in the form of overalls, gloves, masks, aprons, dust coats and reflective clothing. By comparison to products coming from other countries, the quality of Zimbabwe-produced protective clothing is high and preferred by most companies.
Chinese firm starts road construction in Kenya to boost border trade (Xinhua)
Kenya on Sunday commissioned the construction of a one-stop border post to promote trade and security with neighboring Uganda. Sam Ojwang, a senior administrator in the north-western Kenyan county of Trans-Nzoia, presided over the groundbreaking ceremony of the project financed by the African Development Bank (AfDB).
Kenyan President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni in 2018 held talks in the port city of Mombasa and agreed to have a one-stop border point to enhance trade and security in the region.
He said the project will enhance efficiency in the management of the border especially revenue collection and cross-border services. “The project brings immense benefits to manufacturers in Kenya and it is the commitment of the national government to promote the manufacturing sector in a bid to scale up the efforts to achieve the Big Four Agenda towards attaining Vision 2030,” said Ojwang.
Weathering the pandemic and growing the manufacturing sector (The Star)
At the beginning of the year, we were optimistic that we would see economic recovery after being hard hit by the Covid-19 pandemic last year. Currently, our economy is in a frail state–the spiraling debt, high cost of doing business, corruption, an inefficient transport and logistics system, policy unpredictability and instability as well as rolling back of measures put in place to cushion the economy from the effects of the pandemic, which continue to hinder our competitiveness and productivity.
The Manufacturing Priority Agenda (MPA) 2021 is an annual publication that guides the association’s advocacy efforts with government and its agencies. The 2021 MPA is themed “From surviving Covid-19 to thriving: Manufacturing sector rebound for sustained job and investment growth”. Five pillars to support recovery of the sector from the devastating effects of the pandemic guide this year’s MPA. They focus on enhancing competitiveness and level playing field for local manufacturers, enhancing market access for locally manufactured goods both in local and export markets, promoting pro-industry policy and institutional framework, promoting SME development and enhancing industrial sustainability and resilience.
Trucks stuck at Namanga as row over maize exports unresolved (The East African)
Kenyan authorities remain tight-lipped a month after banning Tanzanian and Ugandan maize imports into the country. This past week, sources at the Namanga border crossing say Tanzania has blocked all transit trucks from entering the country from the Kenyan side. A spot check at the crossing on Wednesday found stranded maize trucks on the Tanzanian side, while more than 20 trucks on the Kenyan side had not been cleared to cross into Tanzania.
This is despite a clarification two weeks ago by Kenya’s Agriculture Minister Peter Munya that the government had not banned the importation of maize from the two neighbours. Since Mr Munya made his remarks, no other Kenyan official has responded or offered an explanation on the matter. Maize is an emotive issue in Kenya, with farmers and the government at loggerheads over prices, and allowing imports that flood the market with cheap produce.
KPA readies for first ship at Lamu Port, equipping facility (The Star)
Equipping of Lamu Port has resumed and is at an advanced stage, authorities in the project have confirmed, with the facility expected to become operational in June. This is after delays caused by the Covid-19 pandemic last year, which slowed down procurement processes for equipment. Both the Lamu Port South Sudan Ethiopia Transport (LAPSSET) Corridor Development Authority and KPA are keen to have the country’s second major sea port, and a potential transshipment hub in the continent, become operational in the next two months.
Setback in war on virus as India bans export of key drug (Nation)
Kenya’s fight against Covid-19 has suffered another setback after India put banned export of anti-viral drug Remdesivir and its active pharmaceutical ingredients after a record surge in infections sent demand surging. The move comes barely weeks after Delhi blocked exports of the AstraZeneca vaccine to balance surging domestic demand with international orders. The ban means poorer nations, including Kenya, will probably have to wait a few months before receiving their first shots. Kenya could also fail to meet its vaccination target of 3.2 million jabs by June this year, as global and local supply shortage, registration confusion, and reluctance among some priority groups rock the campaign.
Tanzania, Kenya cement ties (Dailynews)
PRESIDENT Samia Suluhu Hassan has assured her Kenyan counterpart, Uhuru Kenyatta of a bold and continued cooperation from Tanzania, as part of efforts to push forward development agenda between the two countries. She has also directed the Joint Permanent Commission (JPC) of the two countries to convene a meeting that would work on different areas of the bilateral ties. The commission hasn’t met since 2016. The head of state made the assurance on Saturday after receiving a special delegation from the government of Kenya that was led by its Cabinet Secretary (Minister) for Sports, Culture and Heritage, Amb Dr Amina Mohammed at the Dar es Salaam State House. President Samia to pay an official visit to Kenya for the sake of cementing further the existing diplomatic cooperation.
Long-awaited $15b EA oil pipeline deal signed in Kampala (The East African)
Fifteen years after discovering commercially-viable crude oil deposits, Uganda begins its final journey to production with the signing on Sunday of a landmark deal with Tanzania and French oil company Total. The deal, which is expected to unlock upwards of $15 billion in investments, was signed in Kampala. President Yoweri Museveni led the Uganda delegation while Total chairman and chief executive Patrick Pouyanne led the French company’s team, The EastAfrican has learnt. A key element of the project is the crude oil export pipeline to run from Uganda to the Indian Ocean at Tanga and Tanzania President Samia Suluhu travelled to Kampala in her first foreign trip as head of state to sign the tripartite agreement on behalf of her country.
A deal for the $3.5 billion East African Crude Oil Pipeline (Eacop) is a strategic win for Tanzania which will earn $12.7 off each barrel of oil transported through it.
IMF Staff Completes 2021 Article IV Mission to Botswana
“Botswana entered the COVID-19 crisis with larger buffers and lower public debt than other countries in sub-Saharan Africa (SSA), but significantly less than in the past. The country was contending with structural challenges, persistent negative external shocks and delays in adjustment that caused a weakening of international reserves and the fiscal position amid high unemployment. “The pandemic exacerbated Botswana’s economic challenges. While strict containment measures helped to limit the spread of the virus and save lives, the heavy economic reliance on diamonds and contact-intensive activities caused a sharp GDP contraction, one of the deepest in SSA. The current account deficit widened and foreign exchange reserves dropped further, though remaining above adequate levels. The government implemented a sizeable public wage increase agreed in 2019 and deployed an economic relief package to counter the effects of the COVID-19 crisis. The relief package helped save people’s livelihoods.
“In this context and despite a second wave of COVID-19 infections, a recovery is underway, with GDP growth expected at 8.3 percent in 2021, driven by a strong rebound in mining activity, the easing of restrictions on mobility, and the recent public wage increase. The fiscal and external positions are expected to strengthen gradually along with favorable terms of trade. However, uncertainty is high, and risks are dominated by the evolution of the pandemic and vaccine rollout in Botswana and globally, and lower-than-expected diamond revenue. At the same time, a steadfast implementation of supply-side reforms could promote private sector activity and diversify the sources of growth.
Nigeria leads West Africa in organic agriculture promotion – ECOWAS (Vanguard)
The Head of Agriculture Division, ECOWAS Commission, Abuja, Mr Ernest Aubee, has said that Nigeria was leading in the promotion of Organic Agriculture in the West Africa region. Aubee said this in his closing remarks at the cocktail event on `Reporting Back Achievements of Ecological Organic Agriculture (EOA) Initiative’ activities in Nigeria for the years 2014-2020 and Award presentation, in Abuja. He said Nigeria’s efforts in organic agriculture were commendable and timely, as it was coming at a time when people paid attention to what they eat. “What Nigeria is doing will benefit not only Nigeria, as a country, but also the other 14 ECOWAS member states, and we hope member states will take a cue from your strides so far,” he said.
Nigeria in financial trouble; printed Ghs 849 million to share in March (Norvanreports.com)
Godwin Obaseki, governor of Edo, says Nigeria is in huge financial trouble. Obaseki said the federal government printed N60 billion as part of federal allocation for March. According to the National Bureau of Statistics (NBS), Nigeria’s total public debt stock as of the third quarter of 2020 (Q3 2020) rose by N6.01 trillion within a year. The agency’s report noted that Nigeria’s total public debt stock constituting of external and domestic debts stood at N32.22 trillion ($84.57 billion) as of September 30, 2020. Obaseki said the rising debt profile is worrisome as dependence on crude oil is no longer sustainable. “Nigeria has changed. The economy of Nigeria is not the same again whether we like it or not. Since the civil war, we have been managing, saying money is not our problem as long as we are pumping crude oil everyday,” he said.
25 million Nigerians to benefit from solar power programme – Osinbajo (The Nation)
Not less than 25 million Nigerians, whose communities are not linked to the national electricity grid are soon to have access to cheap and environmentally friendly renewable power. This was disclosed by the Vice President, Professor Yemi Osinbajo (SAN), on Friday during the launch of the Solar Power Naija programme at Jangefe community in Roni council area of Jigawa State. The Solar Power Naija programme is one of the items under the Economic Sustainability Plan (ESP), being overseen by the Vice President.
“Another challenge turned opportunity was Covid-19 and our response to the economic fallouts of the pandemic – the Economic Sustainability Plan. A fundamental rationale for the plan was to retain existing jobs and create new jobs. A mass solar programme seemed like a real chance to kill several birds with one stone; electrify the country and in the process, create thousands of jobs from solar assembly and manufacturing plants to installers, payment system operators, and maintenance of solar systems once installed.
Taxes are enforced exactions, not voluntary contributions to the state. Fines and penalties are designed to ensure compliance with tax laws. In spite of these enforcement mechanisms, the willingness of citizens to pay taxes plays an important role in tax administration. In Ghana, tax revenues have not matched rising public expenditures in recent years. From 2017 to 2018, government expenditures increased by 20%, while tax revenues grew by 17%
The most recent Afrobarometer survey in Ghana shows that most Ghanaians endorse taxation and are even willing to pay more in taxes to support the country’s development. But they also say it’s difficult to find out what taxes they owe and how tax revenues are used, and they see corruption in the GRA and tax evasion among their peers as widespread.
Ghana: Finance Ministry outlines strategy to manage domestic debt risk (GhanaWeb)
To address the forex risk associated with domestic bond redemptions by offshore investors, the government plans to undertake bond exchanges and buyback auctions in close coordination with the Bank of Ghana. This, according to the Finance Ministry’s 2021–2024 Medium-Term Debt Management Strategy, will smoothen both the redemption profile and any associated forex risk from the repatriation of offshore flows. The country’s stock of domestic debt stood at GH¢149.83bn (US$26.2 billion) at end-December 2020, representing 39.1 percent of GDP and an increase of 42 percent from the 2019 position. Of this, the share held by offshore investors stood at 18.5 percent, equivalent to GH¢27.69bn.
Ghana Ports and Harbour Authority to introduce additional e-payment platform (GBC Ghana Online)
The Ghana Ports and Harbours Authority (GPHA) is to introduce an additional e-payment system to enhance cargo clearing at the ports. Mrs. Esther Gyebi-Donkor, General Manager, Marketing and Corporate Affairs at the GPHA, said the Port Authority had created an e-payment platform to allow clients to do transactions through mobile money, visa and Master cards. Mrs. Gyebi-Donkor noted that the move was part of efforts to increase automation at the Ports and make doing business faster, easy, secure and convenient.
Touching on cargo clearance processes, she said even though Ghana was a little late in fully implementing the Single Window System, it brought remarkable successes and made the country’s seaports efficient. She said the port automation, including the Paperless Port clearance process, and the Integrated Customs Management System (ICUMS), had streamlined the activities of statutory agencies operating in the clearance chain and impacted positively on the cost of doing business at the ports.
Ghana ports record increase in transit traffic (GBC Ghana Online)
Ghana’s Sea Ports recorded an increase in transit traffic last year despite the outbreak of the COVID-19 pandemic and its related restrictions. The Ghana Ports and Harbours Authority (GPHA) recorded transit traffic of 1.5 million metric tons in 2020 compared to 1.3 million in 2019. Mrs Esther Gyebi-Donkor, General Manager in charge of Marketing and Corporate Affairs at the GPHA, told the Ghana News Agency at the weekend that transshipment traffic in 2020 was 602,778 metric tons as compared to 90,158 metric tons in 2019.
Mrs Gyebi-Donkor said 229,650 metric tons of the transit traffic was from coastal countries, an indication of the strides Ghana’s ports had made towards becoming the preferred trade and logistics hub in the sub-region.
Ghana receives critical COVID-19 medical supplies (BusinessGhana)
The Government of Ghana has received medical supplies from the West African Health Organisation (WAHO) for the treatment and management of the COVID-19 pandemic in the country.
The medical items were funded by the United Nations Development Programme (UNDP), the German Government (BMZ), the European Union, the Economic Community of West African States (ECOWAS) Commission and WAHO and procured by GIZ and UNDP. This is the second bulk of distribution of critical COVID-19 medical supplies to the 15-member countries of ECOWAS by WAHO.
Receiving the items, the Chief Director of the Ministry of Health, Mr. Kwabena Boadu Oku-Afari, on behalf of the Minister for Health, expressed the government’s gratitude to WAHO and its partners for their support. He underlined the importance of the items which he said will enhance testing and treatment of the COVID-19 cases in the country. The Head of Logistics at the ECOWAS Regional Centre for Surveillance and Disease Control, Mr. Sampson Ayeni who led the team to donate the items, was hopeful that the supply would be efficiently used. He mentioned that more distributions and allocations will be done because additional items would be procured for member countries of which Ghana would be a beneficiary.
African regional and continental news
Lack of Transportation of goods by sea cited as hindrance to AfCFTA (GhanaWeb)
Lack of proper means of transporting goods to countries in the sub-region by sea is becoming a hindrance to the African Continental Free Trade Agreement (AfCFTA). Industry players have expressed the need for government to provide reliable vessels that can aid in the transportation of goods to countries like Liberia, Gambia, Guinea, and many others. Goods transported by road to mostly the landlocked countries are also faced with challenges due to the refusal of some neighbouring countries to comply with the ECOWAS Trade Liberalization Scheme, ETLS. Chief Executive of B5 Plus, Mukesh Thakwani told GBC Business News that if these challenges are addressed, goods will be delivered on time and will boost trading and enhance the profit as well as the competitiveness of Ghanaian businesses in particular.
The African Trade Policy Centre (ATPC), a unit of the Economic Commission for Africa (ECA), is preparing the first ever Strategic Environmental Assessment (SEA) of the African Continental Free Trade Area (AfCFTA) to guide on how environmental considerations can be effectively incorporated into the agreement.
The SEA will identify how to include environmental considerations into the implementation of the AfCFTA and into the so-called phase II negotiations on investment, competition policy and intellectual property rights, and phase III negotiations on e-commerce due to start soon. The institutional capacities needed at continental, regional and national levels to address environmental issues will be determined under the assessment.
African youth key drivers to sustainable food security (IPPmedia)
Agriculture has an enormous environmental footprint, playing a significant role in causing climate change, water scarcity, land degradation, deforestation and other processes; it is simultaneously causing environmental changes and being impacted by these changes. Developing sustainable food systems, contributes to the sustainability of the human population. For example, one of the best ways to mitigate climate change is to create sustainable food systems based on sustainable agriculture. Sustainable agriculture provides a potential solution to enable agricultural systems to feed a growing population within the changing environmental conditions.
Africa has the ability to produce enough food to feed its population and beyond, and develop agribusiness that would offer decent employment to youth. There is a need to make sound investment to develop agro-processing so as to add value to farm produce and effectively linking primary producers to industries.
The future billionaires of Africa will not be coming from the oil and gas sector, but from the agriculture because food is critical and that is what Africa has a comparative advantage in. Youth as key drivers to sustainable food security just because if we don’t have enough food in Africa, we will be having a big problem therefore Africa calls for efforts to ensure food security on the continent. We need an education system that ensures that we have young people who are agriculture professionals because we are heading to technology-led agriculture.
Illicit trade and the fight for East Africa’s future (The New Times)
East Africa is being picked apart by extremist groups, organised crime syndicates and urban gangs, all of whom are routinely assisted by some corrupt members of the region’s political, civil and business classes. East Africa represents rich pickings as both a source of and destination for illicit products, not to mention as a transport hub for illicit freight both arriving to and departing from the continent. Contraband agricultural and manufactured products, such as sugar and tobacco, are also smuggled into East Africa in mass quantities by extremist groups such as Al Shabaab.
The Kenya Association of Manufacturers has estimated that 40% of consumer products that reach the market are illicit. As many as seven in every ten Ugandan alcoholic beverages are contraband. East Africans are exposed to well over a billion illegal cigarettes every year. The region is awash with illegal arms, making life everywhere more dangerous. The harms caused by illicit trade are numerous and self-reinforcing.
“Food systems in West Africa are resilient, but also vulnerable” (Mirage News)
Together with his colleagues, researcher Bart de Steenhuijsen Piters of Wageningen Economic Research examined the resilience of food systems in West Africa. The knowledge they gained and consultations with the World Bank have resulted in a programme to further increase this resilience. However, greater knowledge is required. What can we learn from his findings? To a certain extent it can be done from the Netherlands, but inevitably you will come across obstacles. In the study, we mainly looked at what is already known about food systems and their resilience. But there are still a lot of unknowns, and you cannot speak for people in a region if you have not consulted them.
Africa must take steps to safeguard food security (Chinadaily)
Globally, most countries are still grappling with food insecurity. According to the Food and Agriculture Organization of the United Nations, about 690 million people did not have enough to eat in 2019. By December 2020, more than 250 million people in Africa were faced with severe food insecurity. In Africa, the situation is exacerbated by extreme weather, ranging from floods and drought, that has disrupted agricultural patterns. Further, the onset of an invasion by desert locusts in 2020 left a trail of destruction. The locust invasion has yet to be contained in most parts of the affected countries in the Horn of Africa. Other drivers escalating food insufficiency in Africa include prolonged conflicts, which put pressure on constrained economies and disrupt livelihoods. Furthermore, forced displacements and the burden of refugees offset the food systems of affected regions or host countries.
There is a pressing need for the continent's governments to initiate measures to safeguard food security and speed up the recovery of the agricultural sector. This calls for concerted efforts among key stakeholders in the public and private sectors as well as development agencies.
To safeguard Africa's food systems during the pandemic, governments instituted immediate and short-term measures to cushion the most vulnerable populations. These included food packs for targeted low-income households, economic stimulus packages, cash transfers for urban and rural poor, tax
Over four Million Seed Labels Developed & Ready for Use (COMESA)
The COMESA Seed Programme through the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) has developed over four million physical seed labels that are ready for use by seed companies in the region. The labels will enable companies engage in regional seed trade for large seed consignments crossing the borders and in-country seed trade in smaller packages.
The COMESA Seed Labels are meant to provide an easy passage at the border and they are now available at the COMESA Secretariat at $0.035/label in order to facilitate regional seed trade within the 21 COMESA Member States,” Dr Mukuka said in a statement issued in Lusaka on Friday 9 April
‘Vaccine grabbing’ seen fueling risk of fake COVID-19 jabs in Africa (Reuters)
The unequal global distribution of COVID-19 vaccines could spur the trade in fake doses in Africa - a hotspot for counterfeit medicines, analysts warned on Friday, citing the seizure of falsified vaccination shots in South Africa. With poorer countries grappling to procure enough vaccine doses for their people, criminals will likely see an opportunity to profit, especially in Africa where imports account for more than 80% of pharmaceutical needs, they said. “Already Africa has a problem with counterfeit medicines. The lack of local production and weak enforcement have for years allowed products to enter countries, such as fake medication for malaria in West Africa,” said Richard Chelin, senior researcher at the ENACT programme at the Institute for Security Studies. “Now with rich nations hoarding vaccines, this is likely to get worse. The consequence of this vaccine grabbing is that it creates opportunity for criminal networks. Everyone wants the vaccine and people will panic and buy whatever is out there.”
The African Union’s digital Covid-19 passport for travelers (Africa Feeds)
The African Union has developed a common continental Covid-19 digital passport for travelers and airlines. It is an initiative by African Union’s lead health agency, the Africa Centre for Disease Control and Prevention (Africa CDC). The technology is known as Trusted Travel, a platform that will enable passengers across Africa to securely and easily verify compliance with Covid-19 test or vaccine travel requirements issued by their destinations of choice. The platform has been made available to airlines since March 2021 as the continent continues to battle the pandemic. The technology provided at no cost to users has seen delays and long queues at airports drastically reduce for passengers boarding Airlines.
Activities Under the EU-Supported Migration Programme Begin to Roll Out (COMESA)
The European Union through the International Centre for Migration Policy Development (ICMPD) has reaffirmed its support to COMESA to enable the Regional Economic Community have an effective and coordinated management of migration and mobility in the framework of a health crisis. The organization will also help COMESA and its Member States to better communicate with stakeholders at border points during such a crisis. The COVID-19 pandemic situation is one such health crisis that the ICMPD would like to work with COMESA as a practical way of intervening in the migration and health sector.
To kick start the activities, the two teams discussed how the series of online meetings with the Secretariat and Member States will be conducted to assess the training and information needs regarding the management of migration/mobility at the borders during this health crisis of COVID-19.
EAC eyes deals at upcoming Germany trade fair (The Star)
East Africa’s business community is angling itself for major trade and investment deals during this year’s Germany Hannover trade fair, which kicks off next week Monday.Also known as ‘Hannover Messe’, the week-long event is one of the world’s largest trade fairs for promoting industrial technologies, usually held annually in Hannover City, Germany.
On Friday, the East African Business Council (EABC) in partnership with GIZ- Business Scouts for Development Program, funded by the German Ministry for economic cooperation, BMZ held a virtual forum to explore challenges and risks inhibiting industrial transformation in the region.
“Industries in East Africa have been able to repurpose and transform amid the pandemic. Strategic partnerships between Europe and East Africa should build the capacity of industries to tap into the opportunities of the EAC Common Market and African Continental Free Trade Area of 1.3 billion consumers,” Mathuki said.
World Insights: Booming China-Africa logistics offers lifeline, economic promise for Africa (Xinhua)
Smooth logistic routes between China and Africa during the COVID-19 pandemic have helped African countries fight the pandemic, promoted two-way exchanges of products and ensured that the continent's economic recovery is on the right track. Vaccines have been the fastest growing and one of the most important items in logistics and transportation between China and Africa.
Apart from vaccines and other epidemic prevention materials, the channels and products seen in China-Africa trade are becoming more diversified. Official data showed that China has been Africa's largest trading partner for more than a decade. Over the past three years, China's agricultural imports from Africa have grown at an average annual rate of 14 percent, making China the second-largest agricultural importer in Africa.
Growing trade ties bind India to Africa’s future (MENAFN.COM)
India has stepped up its global ambitions and foreign policy re-engagement with African countries in recent years. Trade increased from $7.2 billion in 2001 to $63 billion in 2017/18. India is now the third largest export destination and the fifth largest investor on the continent. While it plays catch-up with China’s commanding presence in Africa, India has signed many new bilateral agreements. It has also strengthened its diplomatic presence and is actively furthering trade, infrastructure and private sector investments.
India’s push for South-South cooperation relies on three broad elements. The first is a shared identity as part of the ‘Third World’. Second is expertise in cost-effective development technologies. Third is a recurrent articulation of the principles of mutual respect and solidarity.
ACCI Advocates Qatari-African Chamber of Commerce to Boost Trade (THISDAY Newspapers)
The President, Abuja Chamber of Commerce and Industry (ACCI), Dr. Al-Mujtaba Abubakar has called for the establishment of the Qatari- African Chamber of Commerce to facilitate and establish strong trade groups covering several industrial and trade sectors. He gave the assurance that ACCI was ready to spearhead the formation and hosting of the proposed Chamber of Commerce. While calling for more international businesses to explore the vast opportunities in Africa, Al-Mujtaba stated that the continent has the youngest world population, with strong digital orientation.
“A continent booming with several landmarks’ infrastructural projects, Africa is home to new ports. Airports, trans-continental railways and Trans-African highways.
Global economy news
Coronavirus pandemic triggers shipping container crisis (DW)
Anyone who needs to ship something big – or a great deal of something small – rents an ISO container for the purpose. But that’s not an easy task at the moment – there simply aren't enough transport boxes available. And buying a container isn't easy either. German daily Frankfurter Allgemeine Zeitung recently reported that there are only two companies in the world that build and sell shipping containers – both are based in China.
But for almost a year, it’s been difficult to maintain the timetable according to which ships travel between continents. Since the outbreak of the COVID-19 pandemic at the beginning of 2020, global trade has gone off the rails. Even though there won’t be more containers in the short term, the problem with the transport boxes is not entirely their supposedly insufficient number. Containers are almost never used for one-time transport; they are subject to a global cycle.
Development Committee: Working Toward a Green, Resilient, and Inclusive Recovery (World Bank)
The COVID-19 pandemic has caused an unprecedented health, economic, and social crisis. It is threatening the lives and livelihoods of millions, increasing poverty and inequality, and reversing development gains. To move toward a global recovery will require sustained, differentiated, and targeted financial and technical support to governments and the private sector. These were key messages from the Development Committee, a ministerial-level forum that represents 189 member countries of the World Bank Group and the International Monetary Fund, in a communiqué issued at the institutions’ Spring Meetings. The committee encouraged the Bank Group and the IMF to continue working closely together and with other partners in assisting developing countries’ COVID response.
Both the committee and Malpass welcomed progress on debt sustainability for the world’s poorest countries; this is helping free up fiscal space for key investments in human capital that are critical to long-term economic recovery. Prior to the meetings, the G20 extended the Debt Service Suspension Initiative through the end of 2021. As Malpass noted in his speech and at the meetings’ opening press conference, the Bank Group and IMF are also working closely together on implementation of the G20’s Common Framework to deal with cases of unsustainable debt. In remarks to the G20, Malpass observed that the poorest countries will also need more support through grants and highly concessional resources from IDA; he welcomed G20 support for moving up the next IDA replenishment by one year.
Small island developing states need urgent support to avoid debt defaults | UNCTAD
Prior to the COVID-19 crisis, many small island developing states (SIDS) were already showing signs of increased debt distress – where debt servicing burdens, current account deficits and elevated levels of public debt viciously feed off each other. The economic fallout from the pandemic is expected to aggravate these hardships, and a wave of sovereign defaults is now looming.
Clear plans are needed to resolve the debt crisis in the short term and debt sustainability over the longer term – so SIDS reduce their vulnerability to climate change and other shocks.
An agenda for a bold set of actions to jointly tackle the debt and climate crises in vulnerable islands is needed ahead of COP26. This fits with the commitment set by the Paris Agreement for developed countries to provide financial resources to assist developing countries in meeting their climate goals. To date, this assistance has focused principally on climate finance. Given the impending debt crisis in some of the world’s most climate vulnerable countries, this assistance should also focus on debt relief and debt sustainability.
UN calls for urgent action on debt, vaccines, around the world (UNDP)
The United Nations called this week for expanded debt relief to all developing countries that request it and faster, more equitable COVID-19 vaccinations to tackle “unprecedented” fallout from the ongoing COVID-19 pandemic. “To avoid a development crisis, the world must avoid a debt crisis,” UNDP Administrator Achim Steiner said on behalf of the United Nations in statements to the World Bank and International Monetary Fund (IMF) Development Committee and to the International Monetary and Financial Committee Board of Governors, gathered virtually for their yearly Spring Meetings. “This is no time for austerity.” Speaking on behalf of the UN Secretary-General, Steiner also noted that that 84 percent of COVID-19 vaccines administered so far have gone to wealthier countries and urged swift measures to close major gaps in vaccine funding and production for poor countries. While the world’s largest economies have mobilized an historic US$18 trillion in fiscal support, keeping people and economies afloat amid surging poverty, joblessness, and hunger, many developing countries cannot invest in recovery and resilience because of financing constraints, Steiner said.
Low-income countries have received just 0.2 per cent of all COVID-19 shots given (UN News)
Although more than 700 million vaccine doses have been administered globally, richer countries have received more than 87 per cent, and low-income countries just 0.2 per cent. “There remains a shocking imbalance in the global distribution of vaccines”, said WHO chief Tedros Adhanonom Ghebreyesus, speaking during the agency’s regular briefing from Geneva. “On average in high-income countries, almost one in four people has received a vaccine. In low-income countries, it’s one in more than 500. Let me repeat that: one in four versus one in 500.”
Emerging economies share ‘grave concern’ over EU plans for a carbon border levy (EURACTIV)
European Union plans to impose taxes on carbon at its border are “discriminatory” and unfair to developing nations, ministers from Brazil, South Africa, India and China have warned. EURACTIV’s media partner Climate Home News reports. In a joint statement, the four nations, known as the BASIC countries, “expressed grave concern regarding the proposal for introducing trade barriers such as unilateral carbon border adjustment”. The EU has proposed to impose a levy on carbon-intensive products imported into the union from countries which do not have a price on carbon. Its supporters argue it is necessary to avoid carbon leakage, where producers of energy-intensive products like steel, cement and aluminum move out of the EU to countries with weaker environmental regulations.
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National trade and trade-related news
SA ranked top global business services sector location (SAnews)
South Africa has been ranked as the top global business services sector location for 2021, the Department of Trade, Industry and Competition (dtic) has announced. “In a boost to business confidence, South Africa has won an award as the top global location for business process services, in a sector that is rapidly expanding locally and exporting call centre and related services to other parts of the world,” said the department on Friday. South Africa was named as the Most Favoured Offshore CX Delivery Location for 2021, in the Annual Front Office BPO Omnibus Survey on Thursday. The department welcomed the achievement for the country’s business service industry, which has positioned itself as one of the premier locations internationally for business services. “The business services sector, which includes call centres, technical support and back and front office services for major multinationals and South African firms, has seen exceptional growth in recent years, and has been a major source of job creation for young South Africans.”
Recovery from Covid-19 hinged on private sector growth (Engineering News)
Strategy consulting and market intelligence firm Frost & Sullivan says the economic growth prognosis for South Africa in the next five years is not all “doom and gloom”, as the private sector has the ability to grow and create jobs. For the private sector to flourish, however, it needs to function and operate in an open environment, the firm states.
Transformation imperative in aviation: Mbalula (SAnews)
Transformation in the aviation sector remains a challenge, with the 2020/21 financial year aviation statistics showing that no meaningful progress has been made in terms of transformation, particularly for previously disadvantaged individuals. Virtually addressing the National Aviation Conference on Thursday, Transport Minister Fikile Mbalula said Africans, Coloureds and Indians represent 11% of licence holders, while at 89%, the proportion of White licence holders is still significantly higher.
“This scenario needs to change. The statistics must reflect the racial demographics of the country. Among other things that must be prioritised is the demystification of the industry from being an exclusive haven that is the sole preserve of a particular class in our society.
NDB approves $1bn loan to South Africa to support economic recovery (Engineering News)
NDB’s financing under the emergency programme is primarily aligned with the United Nation’s Sustainable Development Goal 8 to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The loan is part of the second batch of Covid-19 emergency programme loans to NDB’s member countries focusing on economic recovery. It focuses on supporting economic growth through employment generation as well as support for labour force participation.
AfCFTA secretariat hails Namibian infrastructure (New Era)
The African Continental Free Trade Area (AfCFTA) secretariat secretary general, Wamkele Mene yesterday congratulated Namibia on its excellent infrastructure, saying this is a solid foundation to benefit from the continental trade pact.
Visiting President Hage Geingob at State House yesterday, Mene made the remarks specifying Namport among his numerous visits in Namibia. He said he is overwhelmed by how Namport supports landlocked countries in the region in trade facilitation that supports the implementation of AfCFTA.
Namibia ready to trade under AfCFTA banner (Namibian)
NAMIBIA is ready to increase trade with other African countries under the African Continental Free Trade Area (AfCFTA) agreement following its submission of the tariff concession last month. This was said by Ndiita Nghipondoka-Robiatti, the deputy executive director for international trade in the trade and industrialisation ministry at a business community event organised by the Africa Economic Leadership Council (AELC) at Swakopmund on Tuesday. Namibia, and other Southern African Customs Union (Sacu) members submitted tariff concessions as part of the 90% trade liberalisation on the continent. The tariff concession is a list of products on which customs duties will be charged or customs duties the country is willing to give up to allow free movement of goods and reduce the cost of trading. The tariff concessions are part of the country’s and Sacu customs books, Nghipondoka-Robiatti said.
Namibia: Days numbered for tax dodgers (New Era)
The discussion of a semi-autonomous tax body, which commenced more than 10 years ago, yesterday culminated in the official opening of the Namibia Revenue Agency (NamRA) by President Hage Geingob. The establishment and operationalisation of NamRA are expected to significantly improve transparency in Namibia’s tax collection efforts to increase State revenue from the N$52 billion expected during the current financial year, which is already N$6 billion less than the N$58 billion collected during the 2020/21 financial year.The establishment of NamRA stems from a conscious decision by Cabinet to transform existing in-house departments of Inland Revenue and Customs & Excise within the Ministry of Finance into the semi-autonomous tax administration body.
NamRA was established against Namibia’s record of an already high revenue-to-GDP collection rate by the government, averaging 32% of GDP when Southern African Customs Union (SACU) receipts are included or some 22%, excluding SACU receipts.
“The transformation of tax, customs and excise administration function into a semi-autonomous institutional setting represents a distinct addition to the stock of robust national institutions with great latitude of transparency and accountability, thus enhancing public trust in the administration of tax laws. Notably, this institutional reform presents opportunity to achieve greater equity in the revenue administration function,” said Geingob at the launch.
Hope for Kenya-US trade deal as talks resume (The Star)
Kenya and the United States have resumed talks on the Free Trade Agreement (FTA) ongoing since last year. Kenya’s Trade Cabinet Secretary Betty Maina and US Trade representative Katherine Tai held talks that focussed on the importance of the trade relations between Kenya and Africa as important partners to the US. The bilateral trade talks paused in the wake of American presidential elections last November.
During the talks, it emerged that Biden and Vice President Kamala Harris are keen on supporting increased contribution of developing countries to the global economy. With respect to Africa and in recognition of Africa’s fragile position in the global trade architecture, the FTA resonates with the desire by African countries to forge an economic partnership through the greater regional integration and the Africa Continental Free Trade Area (AfCFTA).
We are protecting African markets, UK says on red listing (The Star)
The travel ban comes into effect today( April 9), effectively restricting Kenyans or anybody transiting through Kenyan airports from setting foot in the UK. It had however not imposed any restrictions on its citizens until Kenya, on Saturday, retaliated by banning visitors from the UK.The two countries have restricting commercial passenger flights from landing in their territories.
Kenya National Highways Authority warns transporters against overloading (The Standard)
The Kenya National Highways Authority (KeNHA) has put on notice transporters across the country over ferrying excess loads. KeNHA senior engineer from the axial load control unit, Kennedy Ndugire says failure by some transporters to comply with the laid down regulations on loading control has not only caused damage to roads but also endangered the lives of motorists and other road users.
“The transporters through their SACCOs are well aware of Section 55 and 56 of the Traffic Act which outlaws the use of overloaded vehicles on public roads. There is also the East African Community Vehicle Load Control Act (2016) enacted by member States and assented to by the respective presidents,” said Ndugire.
Volume of cargo via Mombasa port up by 10.7 per cent despite Covid-19 disruptions (The Standard)
Mombasa port handled 9.54 million tons of cargo in the first three months of this year up from 8.62 million tons it processed in the same period last year despite the Covid-19 pandemic. Kenya Ports Authority (KPA) on Thursday said the 10.7 per cent growth in the volume of business at the port was due to the opening up of ports in China and increased efficiency at the facility. In the latest report, KPA said the port recorded the highest performance in terms of average container traffic handling an average of 4, 662 Twenty Equivalent Units (TEU) per day.
Private firms to import Covid jabs from July (Business Daily)
Wealthy Kenyans will start getting Covid-19 jabs from private hospitals in July after the government strikes an import deal with a global partnership under the World Health Organisation (WHO).Cabinet Secretary for Health Mutahi Kagwe told Parliament Thursday that the talks would conclude end of June, paving the way for top private hospitals to join in the second phase of the inoculation plan set for July. The government seeks to create an option for private hospitals to acquire the vaccines and charge a “minimum surcharge” in the race to broaden inoculation coverage.
Zimbabwe targets to achieve food security by 2022: minister - Xinhua | English.news.cn
Zimbabwe is targeting to attain food security by 2022 and to increase household income by 100 percent by the year 2024, Agriculture Minister Anxious Masuka said on Wednesday. Apart from eliminating food imports that are resulting in a bloated import bill, the government is also targeting 40 percent value addition, to create about 1 million jobs and to increase total exports by 60 percent by the year 2024. In addition, the government also aims to transform about 18,000 small-scale farmers into agricultural entrepreneurs by the year 2025, Masuka said.
The ambitious targets follow the launch of the Agriculture and Food security system Transformative Strategy (AFTSTS) last year with the aim of accelerating agriculture production, productivity and growth.
Ugandan official, truckers calls for improved security on South Sudan road (The East African)
Kampala has called for enhanced security on the Nimule-Juba road in South Sudan where attacks in the last week of March resulted in the killing of eight Ugandan drivers. “We are engaging with the government of South Sudan to ensure security from Uganda border points to Juba,” said Arthur Kafeero, Uganda’s Director for Regional and International Political Affairs at the Ministry of Foreign Affairs. Ambassador Kafeero said the Elegu-Nimule-Juba route is a major
COVID’s Heavy Blow to Nigeria’s Manufacturing (Proshare Nigeria)
The FGN has plans and high hopes for Nigeria’s manufacturing sector. This became clear when Niyi Adebayo, the federal minister for industry, trade and investment, told a virtual event on 30 March that the sector had a target of a 20% share in GDP by 2023. This would mark an impressive step up from the 12.8% attained at current prices in 2020. Adebayo also told the event, co-chaired by the Nigerian Economic Summit Group (NESG), that his ministry would have strategic plans for three segments (clothing and textiles, oil palm and auto assembly) in place by end-year. Manufacturing in Nigeria, as elsewhere, had a very difficult 2020, contracting by -8.8% y/y in Q2 due to the lockdown and by -2.8% over the full year.
Nigeria generates huge revenue from coconut oil export: official - Xinhua | English.news.cn
The export of coconut oil and its derivatives have continued to generate huge revenue for Nigeria, as the country recorded at least 150 million U.S. dollars in 2020 alone, said an official on Thursday. Minister of Agriculture and Rural Development Sabo Nanono said in a statement reaching Xinhua in Abuja that coconut has so far proved to be a major non-oil export foreign exchange earner for Nigeria. Coconut, Nanono said, currently accounts for 10 percent of Nigeria’s agricultural exports, and by the end of this year, it is expected to generate more than 250 million dollars.
Nigeria-Morocco gas pipeline project, the best alternative to Nord Stream 2 – Newslooks (The North Africa Post)
The Nigeria-Morocco gas pipeline project is the best alternative to the Nord-Stream 2 natural gas Russian pipeline project which is at the heart of tensions between the United States, the European Union, and Russia, American news outlet Newslooks states.
In an article entitled “The Nord Stream 2 gas pipeline and the EU-US alliance”, Newslooks affirms that the Nigerian-Moroccan gas pipeline project would serve the interest of Europe and the United States, and would benefit economically and politically the United States and about 300 million African citizens.
Till Ghana fix her transportation infrastructure deficit, she won’t benefit much from AfCFTA (GhanaWeb)
AfCFTA brings together 54 African countries with a combined GDP of more than US$3.4 trillion Ghana did beat other competing countries including Egypt, Eswatini, Ethiopia, Kenya, Madagascar and Senegal to win the bid to host the secretariat of the African Continental Free Trade Area. A great news to the average Ghanaian, member countries of the AfCFTA have agreed not to impose tariffs, quotas and other trade barriers on goods and services. The agreement is meant partly to encourage the expansion of markets and diversify exports specifically manufactured goods instead of the raw material export which Africa is known for.
Cameroon: Public debt rose by over XAF4,000 bln in 2016-2020 (CAA) (Business in Cameroon)
At end-December 2020, Cameroon’s public debt was XAF10,334 billion (46.9% of GDP), according to “provisional data” from the National Sinking Fund (CAA). This figure is up by 5.6% year-on-year. The sinking fund explains that such a rise was due to the disbursement obtained under the Rapid Credit Facility set up by the IMF to help countries fight the coronavirus pandemic, the new domestic debt agreements, and the significantly high volume of public securities issued during the period under review.
This increase in the country’s public debt is mainly due to external financial assistance, generally provided by international partners. At the same time, the state’s domestic debt has also been rising during the said period.
African regional and continental news
AfCFTA touts ‘unprecedented’ opportunities
Africa and China have an “unprecedented” opportunity for collaboration through the African Continental Free Trade Area agreement, the AfCFTA chief told Xinhua News Agency. Calling China “a strong partner to Africa,” Secretary-General of the AfCFTA Secretariat Wamkele Mene said that China has provided Africa with “significant development support and investment support” over the past decade. “We are now in a position to offer China, as a partner, an investment destination that is based on the free trade area,” he said, adding that the scope for cooperation could be in intellectual property rights, manufacturing and the services sector. “This AfCFTA provides the framework for us to continue that collaboration with China,” said Mene, adding that with the establishment of the AfCFTA framework, Africa has “overcome the market fragmentation that was there before”.
Protectionism hurting Africa’s trade deal – KAM (The Star)
In Kenya, there are concerns over the cost of doing business which is said to be “relatively high” compared to peer member countries in the AfCFTA, making local products uncompetitive. “This needs to be improved through elimination of multiple taxations and lowering of transactions costs, so as to create more jobs and a good business environment,” KAM CEO Phyllis Wakiaga said.
KAM yesterday said overlapping membership to trading blocs also stands as a hindrance to speedy adoption of the continental trade pact. There is also non-uniform order clearance logistics across the continent, and unfamiliar customs and administrative procedures and transit policies of goods across different Regional Economic Communities (RECs), among countries with no functional trade arrangements. “It is our hope that in the current framework, there will be robust mechanisms to deter the increase in non-tariff barriers that have largely contributed to the low levels of intra-African trade,” said Wakiaga.
‘Africa will still trade with the world under AfCFTA’ (Graphic Online)
The Implementation of the African Continental Free Trade Area (AfCFTA) agreement does not mean the continent will close itself in and trade among itself only, Director, Trade and Services at the AfCFTA Secretariat, Mrs Emily Mburu-Ndoria has said. She said Africa would continue to trade with the rest of the World under AfCFTA, but would do so in a more coordinated manner.
“AfCFTA will not mean we will close ourselves in and trade among ourselves. We will trade with the rest of the world but we want to do that in a more coordinated manner,” she stated.
Mrs Mburu-Ndoria pointed out that Africa had about 107 borders and that if one wanted trade within Africa, the person must go through 107 borders.”So you can imagine the amount of work to be done to harmonise trade within Africa. AfCFTA is meant to deal with some of these issues and ensure that goods and services can move across borders.”Services are borderless but you still have to move people across borders so we need to ensure that we make it as easy as possible,” she said.
The AfCFTA must be used in Africa’s development agenda (SAnews)
The African Continental Free Trade Area (AfCFTA) must be seen as a pillar of the broader development integration agenda, says Deputy Minister of Trade, Industry and Competition Fikile Majola. Majola said integration is seen as essential to overcoming the limitations of small fragmented economies established under colonialism. The Deputy Minister made these comments in his address to the Progressive Business Forum’s (PBF) webinar on trade opportunities for South African businesses in Africa on Thursday. He said the AfCFTA brought the African continent a step closer to realising the historic vision of an integrated market and creating a basis for increasing intra-African trade.
AfCFTA must be about industrialisation, not just trade (Business Day)
Industrial capacity, capabilities and competence vary across countries and regions, which can open countries to uneven trade dynamics. Implementation of the AfCFTA is under way; yet more action is required to transform policy into action. AfCFTA secretary-general Wamkele Mene shared these sentiments during the fourth instalment of the AfCFTA and transformative industrialisation webinar series hosted by the University of Cape Town’s Nelson Mandela School of Public Governance. Mene stated that “what is required [is] a set of harmonised action plans focused on industrial development, to be implemented on a continental basis, a pan-African basis and in each region”.
A single trade currency for Africa - Mene (Independent Online)
The secretary-general of the African Continental Free Trade Area’s (AfCFTA’s) secretariat announced that the continent will soon have its own uniform payments and settlement platform to ease the burden of doing business in 42 currencies. Wamkele Mene revealed the plans at a webinar organised by the ANC’s Progressive Business Forum on the AfCFTA on Friday .”Working with the Afreximbank (the African Export–Import Bank established to finance, promote and expand intra-African and extra-African trade) we are developing a pan-African payments and settlement platform to overcome this challenge of a multiplicity of currencies on the African continent,” Mene said.
There are 42 currencies in Africa but Mene is confident that through this platform for payments and settlements and in the absence of a common currency some of the present challenges will be overcome. He said he expected Africa to become a monetary union but that this will take time.
Africa’s export of primary commodities keeps it as enrichment source for economies that add value – SA trade minister (BusinessAMlive)
Rob Davies, former South African trade minister, said, as African countries chiefly continue to export primary commodities, without value addition, the continent remains an enrichment source for other economies (mainly developed) that add value to the raw materials from Africa. As these developed economies package and brand the primary commodities from Africa, they in turn, reap heavily from exports to Africa, Davies noted.
The former South Africa trade & industry minister, giving the 2021 Adebayo Adedeji memorial lecture recently cited Adedeji’s seminal work, the “African Alternative Framework to Structural Adjustment Programmes for socio-economic recovery and transformation (AAF SAP), said, AAF SAP became a major beacon looked to by many then who doubted that externally-imposed Structural Adjustment Programmes were the best, or only, way forward for Africa’s development.
Davies, advocating for adoption of AAF SAP as framework to transform Africa, said, Adedeji’s AAF SAP had identified what it saw as the structural weaknesses in most African economies, which included: a weak productive base characterised by low productivity, and productive activities dominated by either subsistence or export-orientated primary product production.
Nairobi is the most innovative city in Africa, Knight Frank report (Africa Business Communities)
Nairobi is the top city in Africa for innovation and ranks among the top 100 globally according to Knight Frank’s Africa Horizons Report 2021/22, Nairobi ranked ahead of Cape Town which was second, Kampala third with Cairo and Johannesburg at fourth and fifth place respectively. The report notes that the ability of African cities to emerge resilient from the pandemic will depend on their ability to innovate, providing long term social solutions to their residents, attracting funding and generating new demand for space.
Tilda Mwai, Knight Frank Researcher for Africa notes, “Innovation coupled with economic growth will drive the next decade of investment in Africa. Lower risk investors will likely favour cities with above-average innovation scores and a robust economy. These include Cairo, Egypt – the stand-out performer – and Johannesburg, South Africa. These cities have the greatest potential to remain economically resilient in the long-term despite undergoing short-term shocks. Cities that score higher for innovation but have less robust economies will attract those willing to take more risk, such as private equity investors. These cities include Nairobi, Kenya, Cape Town in South Africa and Kampala, Uganda.”
Industry leaders committed to transformation, barometer shows (Engineering News)
The first African Financial Industry Barometer, developed by Deloitte in partnership with the Africa CEO Forum, reveals how, in the exceptional context of the Covid-19 pandemic, financial institutions operating in Africa are undertaking a transformation of their business model, governance and risk management capabilities. The survey reveals that the top three priorities for financial institutions over the next 12 months are digitisation, being the top priority for a large majority of respondents, with 56% having started a digitisation programme and 31% of respondents set to start one within the next 12 months.
Africa bets on digital Covid-19 passports to boost air travel (The East African)
Air travellers across Africa can now enjoy faster clearances at airports, thanks to a common continental Covid-19 digital passport innovation developed by the African Union (AU) through its lead health agency, the Africa Centres for Disease Control and Prevention (Africa CDC), and private sector technical partners PanaBIOS and Econet. Delays and long queues at airports are gradually becoming a thing of the past for passengers boarding Kenya Airways, Ethiopian Airlines and Asky Airlines.
“We are incredibly proud to be part of AU and Africa CDC’s journey of ensuring hassle-free and compliant travel across the world, while preventing cross-border spread of Covid-19 infection,” noted Julius Thairu, Kenya Airways acting chief commercial officer.
African Union drops plans to buy Covid-19 vaccines from SSI, pivots to J&J (The Guardian)
The African Union’s disease control body said on Thursday it had dropped plans to secure AstraZeneca COVID-19 vaccines for its members from the Serum Institute of India, the world’s biggest vaccine supplier, amid global shortfalls of the shot. AstraZeneca’s $3 shot is by far the cheapest coronavirus vaccine launched so far, and the easiest to store and transport, making it well suited to developing countries. John Nkengasong, head of the Africa Centres for Disease Control and Prevention (Africa CDC) said the AU was focusing on the Johnson & Johnson vaccine, citing a deal announced last week to supply Africa with up to 400 million doses.
Africa’s solarized digitalization agenda – pv magazine International
The seventh session of the Africa Regional Forum on Sustainable Development convened on the theme of “Building forward better towards a resilient and green Africa to achieve the 2030 & 2063 Agenda” and promote the economic, social and environmental dimensions of sustainable development. Ms. Amina Mohammed, Deputy Secretary-General of the United Nations said developing a just economic model that embraced renewable energy, green and resilient infrastructure, and digitalization, while protecting natural resources by broadening partnerships for science, technology, and innovation could unleash the region’s green potential and fuel economic transformation.
Mozambique attacks impact SA businesses (Moneyweb)
It’s not a problem to be solved by one single company or even a group of companies; it has to be solved by a more regional approach: Andres Vega – International Associate, Centurion Law Group. It does appear that the Mozambique gas complex – where several multinational companies, including Sasol, have heavily invested – has been deliberately targeted by terrorists, given its economic strategic nature. That’s despite the government having designated that complex as a safe zone that should be protected. This is quite a worrying development.
EAC: Standards in the maize value chain (Independent)
The East African Community (EAC) regional maize trade is approximately 1.5 million Metric Tons per annum valued at US$ 260 million. Uganda is a leading net maize exporter in the region. Its largest maize markets are Kenya and the Sudans. Kenya is a net leading importer of maize in the region. In the EAC regional trade integration context, maize is better produced by Tanzania and Uganda and Kenya buys cheaply from both countries. Therefore, there are mutual trade gains for each member state in the maize regional trade that fosters regional efficient allocation of resources and pro-people centered integration through both agricultural and industrial intra-regional value chains. When regional maize trade is disrupted, EAC economy overall loses; the regional GDP goes down and regional wealth and welfare declines. This is bad economics. Recently, Kenyan authorities disrupted the regional maize trade citing poor quality of maize from Uganda and Tanzania. A number of stakeholders came forward with varied propositions including both political and technical interventions. In this article, as a representative of the farmers, I list a 13 point plan with a farmer’s perspective. As a representative of the affected farmers in this development, I propose a 13 point plan or farmer led program to integrate smallholder farmers within the national, regional and international maize value chain.
West Africa faces worsening food crisis: experts (CGTN)
Nearly 20 million people face a food crisis in West Africa and the Sahel region as the vast area is torn by conflicts and the coronavirus pandemic, experts warned Thursday. The situation could worsen between June and August, with as many as 27 million people needing immediate food aid or nearly one in 10 people in 14 countries, the experts said.
In Nigeria alone, 12.8 million people could face a food crisis “or worse” this summer, according to the Food Crisis Prevention Network, which includes representatives of governments, NGOs, lenders and UN agencies. In addition to conflict, the displacement of 5.6 million people, weak economies and the pandemic has worsened food shortages in the region, according to the network.
African fisheries need reforms to boost resilience after Covid-19: study (AfDB)
The African fisheries sector could benefit substantially from proper infrastructure and support services, which are generally lacking. The sector currently grapples with fragile value chains and marketing, weak management institutions and serious issues relating to the governance of fisheries
Green hydrogen as a game changer for Namibia and SADC (New Era)
The use of hydrogen for fuel, also known as the hydrogen economy, is a concept that has been around for a while. Due to the aggravation of climate change, the need to reduce greenhouse gas emissions, and the necessity to achieve energy security, one aspect of this economy has been gaining widespread attention in recent years: green hydrogen. This term describes the process in which renewable energy sources such as solar, thermal or wind are used to generate electricity using hydrogen, contrasting with grey hydrogen (produced using fossil fuels emitting carbon dioxide) and blue hydrogen (produced using natural gas and storing carbon dioxide). Currently, countries including Chile, Japan, Saudi Arabia, Germany, and Australia are leading the charge in the race to find efficient, affordable and sustainable ways to use green hydrogen technology.
One of the main advantages of green hydrogen is that it is a flexible energy source that can be used in a wide variety of sectors that are proving hard to decarbonise, namely, the transport sector, heavy industries such as steel production, and electricity generation sectors. The assimilation
Africa needs financial support to adapt to climate change | ESI-Africa.com
Financial support for Africa to adapt to climate change is crucial, UN Secretary-General António Guterres said as he addressed an online dialogue for leaders convened by the African Development Bank (AfDB). He appealed for greater action to provide renewable energy to the hundreds of millions who still lack reliable and affordable electricity. “As the continent that has contributed least to the climate crisis, Africa deserves the strongest possible support and solidarity,” said Guterres. Pointing out that although Africa has abundant and untapped renewable resources, it has received just 2% of global investment in renewable energy over the past decade, warning that “adaptation must not be the neglected half of the climate equation”.
ECA boosts Africa’s readiness for COP26 | United Nations Economic Commission for Africa
The Economic Commission for Africa (ECA) is helping prepare African countries in readiness for the global UN climate change summit (COP26) to be held in Glasgow, UK, later in the year. Jean Paul Adam, the director of the ECA’s Technology, Climate Change, Natural Resources Division (TCND), said this during the think tank’s 2021 First Quarter Accountability and Programme Performance Review (APPR) Meeting. According to Mr. Adam, there has been an increased number of initiatives in line with ECA recommendations undertaken by member States at national, sub-regional and regional level to harness green and blue economy to build forward better from the COVID-19 crisis and achieve sustainable development. Alongside these initiatives, he noted an increase in the integration of climate resilience in national sustainable development plans in the continent as well as augmented investment in climate action. ECA is supporting countries to revise their Nationally Determined Commitments (NDCs), boosting the overall continental commitments in raising global climate change ambitions.
The Economic Commission for Africa (ECA) is working with African countries to increase investment in infrastructure and agriculture on the continent. In a presentation during the ECA’s first quarter Accountability and Programme Performance Review Meeting (APPRM), Habiba Ben Barka, Economic Affairs Officer with the Private Sector Development and Finance Division, said the ECA was working to strengthen the private sector business environment in energy and infrastructure development, and increasing the use of public-private-partnerships (PPPs) as one of the means to scale-up investment in infrastructure, especially in the context of COVID-19. To achieve this specific outcome, the ECA has identified three key strategic activities which are; supporting a number of member-states to implement infrastructure planning tools, focusing on energy and transport, and apply methodologies developed by ECA for increased private sector participation in road safety; bring more countries to adopt policies that will attract more private sector investment through the use of PPP frameworks and other means for scaling-up infrastructure investment; and foster more engagements between actors in the aviation industry and financial institutions within the context of COVID-19 economic recovery on the continent.
France to host summit for African heads to ‘give a big boost’ to those hit by Covid (The Africa Report)
The Elysée’s stated aim of the summit is to “give a big boost” to the countries on the continent that have been affected by the economic crisis caused by the Covid-19 pandemic. Among the avenues to be explored are debt relief – or even, as French President Emmanuel Macron expressed support for in April 2020, debt cancellation – or exceptional support from the IMF through special drawing rights. It is also expected that many talks will be held about providing financial support to the African private sector.
Focus Africa 2023 (ReliefWeb)
Africa and Spain are close neighbours and strategic partners. Together we can face common challenges, such as economic development and employment, decarbonisation, fight against poverty, women’s empowerment, migration management or peace and stability, in better way. The Spanish Government approved in 2019 the Third Plan Africa “Spain and Africa, challenges and opportunities”, a strategic framework of Spain’s foreign action in and with Africa. Focus Africa 2023 implements the Third Plan Africa for the current parliamentary period, until 2023. Focus Africa 2023 defines Spanish foreign action in Africa until 2023 and forms part of the Spanish Foreign Action Strategy 2021-2024. In line with the principle of unity in foreign action, it includes the specific actions of government and other key Spanish stakeholders in Africa. Moreover, it is aligned with the 2030 Agenda for Sustainable Development and the African Union’s 2063 Agenda. The strategic objectives of the Third Plan Africa - Peace and security; Sustainable development, inclusive and resilient economic growth; Institutional strengthening; and Safe, orderly and regular movement- are reflected in seven priorities in Focus Africa 2023
Getting US-Africa Relations Back on Track With a Focus on Human Rights (Just Security)
In his first foreign policy speech, President Joe Biden made clear that human rights will be central to U.S. efforts to rejoin the community of nations. Secretary of State Antony Blinken’s March 10 appearance before the House Foreign Affairs Committee outlined important areas of focus for U.S. engagement with the world. But beyond a few country-specific references to Ethiopia, Mozambique, and a handful of others, the administration has yet to articulate a broader policy toward Africa. Those plans should provide for robust engagement on Africa alongside regional partners. Concrete policy changes would go a long way toward restoring relations with civil society organizations and grassroots movements across the continent, and make clear that the United States supports the African people, not just African governments.
Global economy news
BRICS@15: India to Chair 13th BRICS Summit (Valdai Club)
The 13th BRICS Summit is going to be held under India’s Chairship. It will be the third time that India will be hosting the BRICS Summit after 2012 and 2016. India kicked off its BRICS Chairship with the inaugural three-day-long Sherpas’ meeting from 24-26 February 2021. India presented its priorities for its Chairship in 2021 under the theme – “[email protected]: Intra BRICS Cooperation for Continuity, Consolidation and Consensus”. The 13th BRICS summit will review the achievements and contributions of BRICS for the global agenda and assess each BRICS nation’s growth stories to celebrate its 15th anniversary in 2021. The theme reflects the approach to strengthen the founding principles of BRICS cooperation based on continuity, consolidation and consensus.
Over the last one year, the world has drastically changed due to the coronavirus outbreak. Also, the worsening of India-China ties and escalation of tensions between the two most influential member states of BRICS, namely, China and India, caused anxiety over the last year and created some destruction and differences within the grouping. The 12th BRICS Summit was held virtually amidst the ongoing COVID-19 pandemic, hosted by Russia on November 17, 2020, on the theme of global stability, shared security and innovative growth. Economic and counter-terrorism were the two key themes at the summit, and two declarations were adopted; these are (1) BRICS economic partnership strategy 2025 and (2) the BRICS counter-terrorism strategy. The economic partnership focuses on trade, investment, finance, digital economy and sustainable development, while the counter-terrorism strategy condemns terrorism in all its forms and manifestations. It calls upon the BRICS nations to strengthen cooperation to fight terrorism through groupings like the UN, G20 (Group of 20) and FATF (The Financial Action Task Force).
Kenya urges more trade, investment among African, Caribbean and Pacific states (Xinhua)
Kenyan President Uhuru Kenyatta has called for more trade and investment among members of the Organization of African, Caribbean and Pacific States (OACPS), according to a statement issued by the presidency in Nairobi on Friday. The OACPS needs to leverage on its past successes such as the existing Economic Partnership Agreements (EPAs), a trade and development deal between the European Union and OACPS, to become a more influential actor in the global economic arena, Kenyatta said.
“With a combined population of over 1.1 billion people and a gross domestic product (GDP) of about 3.2 trillion U.S. dollars, the transition from ACP (African, Caribbean and Pacific group) to OACPS presents enormous opportunities for intra-OACPS trade and investments; and the achievement of greater shared prosperity for all our people,” Kenyatta told a virtual town hall meeting of the OACPS on Thursday night.
Over 160 participants from Africa, Caribbean and Pacific (ACP) regions and Europe gathered online to take part in the official launch of the Intra-ACP Climate Services and Related Applications Programme (ClimSA). Endowed with a budget of EUR 85 million, the intra-ACP ClimSA programme is a joint initiative of the Secretariat of the Organisation of African, Caribbean and Pacific States (OACPS) and the European Union EU) to support the climate information services value chain in ACP Regions, through the provision of technical assistance, financial assistance, infrastructure, and capacity building to improve and widen access and use of climate information.
The African Union Commission (AUC) Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, HE Josefa Leonel Correia Sacko, in her intervention, recognised that the “ClimSA programme addresses the need for adequate and reliable climate services, which responds to the African Union’s Development Goal. The programme enhances the capacity of our Member States as well as Regional Institutions in order for them to be able to develop and mainstream science-based climate information services and prediction into policy and decision making.”
The global economy is recovering from the crisis faster than expected last October, thanks to an unprecedented policy response and rapid progress in vaccine development. But the prospects for recovery are highly uncertain and uneven within and across countries due to varying policy space, different economic structures and rigidities, preexisting vulnerabilities, and uneven access to vaccines. Elevated financial vulnerabilities could pose risks, should global financial conditions tighten swiftly. The crisis may cause extended scarring and exacerbate poverty and inequalities, while climate change and other shared challenges are becoming more pressing.
We will also strengthen multilateral cooperation to ensure an inclusive and resilient global economy. In line with the Paris Agreement, we commit strongly to addressing climate change through measures to accelerate the transitions to greener societies and job-rich economies, while protecting those adversely affected. These comprise a range of fiscal, market, and regulatory actions, mechanisms, and policy mixes, taking into account country-specific factors. We will continue to collaborate to unlock the potential of the digital economy, and accelerate efforts toward a modern and globally fair international tax system. We reaffirm our commitment to strong governance, including by tackling corruption. We agree on the need to promote more open, stable, fair, and transparent trade policies and to modernize the rules-based trading system under the World Trade Organization, which are key to boosting global growth. We are taking comprehensive action to help vulnerable countries meet their financing needs. We will work together to continue strengthening debt transparency practices by both debtors and creditors, public and private, and supporting countries’ efforts to maintain debt sustainability. Where appropriate, we will facilitate swift debt treatment together with broad participation by official and private creditors in line with the comparability of treatment principle.
COVID-19 equitable vaccine scheme reaches more than 100 countries and economies (UN News)
The first delivery of lifesaving jabs arrived in Ghana on 24 February. Announcing the news on Thursday, the World Health Organization (WHO) said that more than 38 million doses of AstraZeneca, Pfizer-BioNTech and Serum Institute of India-produced shots (one of the AstraZeneca vaccines known as COVISHIELD) have been transported globally so far.
The development comes as WHO and other health regulators reaffirmed the overwhelming value of the AstraZeneca (or AZ) COVID-19 vaccine, amid ongoing concerns about clotting events among a very small number who’ve had the jab.
“COVAX may be on track to deliver to all participating economies in the first half of the year yet we still face a daunting challenge as we seek to end the acute stage of the pandemic: we will only be safe when everybody is safe and our efforts to rapidly accelerate the volume of doses depend on the continued support of governments and vaccine manufacturers.”
Climate, debt and resource needs important for world recovery - World Bank (Engineering News)
Development cooperation institution the World Bank president David Malpass in a speech to leaders of the Group of Twenty (G20) developed countries emphasised the importance of climate financing to transition carbon-intensive industries, debt relief and rescheduling, and global vaccination progress to support global recovery. The World Bank’s Climate Change Action Plan includes ambitious new targets for climate financing and steps to have as much impact as possible in improving the trajectory of greenhouse-gas emissions and saving lives and livelihoods through adaptation.
He welcomed a decision by the G20 to extend the World Bank-led Debt Service Suspension Initiative (DSSI) through 2021. The World Bank is also working closely with the IMF to support the implementation of the G20 Common Framework.
“Covid-19 will leave lasting scars on developing countries, from closed schools and physical stunting of children to lost jobs, the depletion of savings and assets, and growing debt overhangs. The crisis came on top of persistent development challenges, including stagnant median incomes, fragility and violence, and damage caused by climate change,” he said on April 7.
“Debt relief efforts are providing some welcome fiscal space, but international finance institution International Development Association (IDA) countries need major new resources too, including grants and highly concessional resources. From April to December 2020, the first DSSI period, our net transfers to IDA and least developed countries were close to $17-billion, of which $5.8-billion were on grant terms.
Developed countries urged to revisit climate change targets (SAnews)
The 30th BASIC Ministerial Meeting on Climate Change has urged developed countries to revisit their climate change mitigation targets while also urging them to provide support to developing countries. In a joint statement at the conclusion of the 30th BASIC Ministerial Meeting on Climate Change on Thursday, Ministers said the substantial gaps in mitigation, adaptation and support provided by developed countries to developing countries in the pre-2020 period must be counter-balanced by ambitious climate change action by developed countries in the post-2020 period. “They urged developed countries to revisit their targets on mitigation under the Convention and the Kyoto Protocol, and fulfil their commitments of providing support to developing countries,” said the Brazil, South Africa, India and China (BASIC) Ministers.
Gender and unemployment: Lessons from the COVID-19 pandemic | UNCTAD
The COVID-19 pandemic has had a negative impact on both women’s and men’s employment – but at different stages of the crisis due to the gender segregation of economic activities in many countries. UNCTAD analysis shows that early measures to curb the spread of the virus first hit jobs held predominantly by women, such as personal services. At the outset of the pandemic, a higher prevalence of the virus correlated with a higher rate of female unemployment
But as the crisis worsened and disrupted cross-border value chains, the impact on men’s employment increased because they tend to work in sectors and jobs that are more dependent on international trade. Even more worrisome, though, than how the pandemic has affected unemployment rates is its impact on women’s participation in the labour market.
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Government welcomes IMF’s update on SA economy (SAnews)
Government has welcomed the International Monetary Fund’s (IMF) revised upward growth outlook of South Africa from 2.8% to 3.1% for 2021. In a statement issued on Wednesday, the Ministry in the Presidency: Planning, Monitoring and Evaluation, said the upgrade affirmed the robustness of the country’s economy and positive economic interventions despite tough conditions. The projected 3.1% growth follows a period where economic activity decreased by 7.0% in 2020 compared with 2019 due to the Coronavirus Disease (COVID-19) pandemic.
The IMF growth projection revision is attributed to the additional fiscal support in large economies and the global roll-out of COVID-19 vaccines.
Mkhize: Africa should produce its own vaccines (SAnews)
Africa should be able to have capacity to manufacture and distribute its own biotechnology to develop vaccines as COVID-19 continues to sweep the globe. Speaking during the webinar on World Health Day on Wednesday, Health Minister, Dr Zweli Mkhize, said depending on other continents should be the thing of the past. “We should take it as an urgent assignment to make sure that come other pandemics in the future, Africa is capable of manufacturing its own requirements, whether it’s protective gear, pharmaceutical products, diagnostic vaccines and equipment,” he stressed.
“It’s quite a challenge to rely on other various countries when the entire continent has no access to the manufacturing capacity for vaccines,” he said. “I think this is a lesson that we must learn now and never be put in a situation where our response is very much dependent on other countries serving their own domestic interests first, while the continent benefits last in the queue.”
Responsive SA companies doubled exports of pulp and cereals (IOL)
A new study released yesterday showed that South Africa grew its exports of pulp and cereals by more than double during the first half of 2020 at the height of the Covid-19 pandemic. The global study, Trade in Transition, showed that South Africa’s exports of pulp – the raw material for toilet paper – and cereal increased by 163 percent and 113 percent year-on-year, respectively, in the first half of 2020. These export increases by South African companies were part of nearly 32 percent of firms that expanded international sales in the first half of 2020, according to multinational logistics firm DP World.
China’s growing thirst helps South Africa’s wines cope with Covid downturn (The Africa Report)
The question we’ve been tackling at Wines of South Africa, is how can South African wine producers use this opportunity to gain a firmer foothold in the Chinese wine market?
The ban on alcohol sales during South Africa’s nationwide lockdown, along with the government shutting its borders to trade, coupled with the loss of wine tourists, resulted in a domestic surplus of around 400 million bottles of wine. Such circumstances had the potential to devastate the industry which is crucial to the South African economy. In 2019, the wine industry contributed 1.1% of GDP ($3.69bn) as well as providing 269,096 jobs (accounting for 1.6% of national employment) and $1.28bn in household incomes. Wine tourism also contributed $1.81m and 36,406 employment opportunities.
In 2019, South Africa only captured 0.9% of the Chinese wine market share, a tiny amount compared to the top three countries: Australia (35.4%), France & Monaco (28.7%), and Chile (14.2%). Comparatively, China is South Africa’s 4th top destination for wine exports accounting for 4% of its total wine exports.
Dubai-South Africa trade grows 17% to top $4.2bln in 2020 (ZAWYA)
Dubai’s trade with South Africa grew 17% to AED15.71 billion ($4.27 billion) from AED13 billion in 2019, delegates heard at an investment and trade seminar organized by South Africa’s Department of Commerce. Following the vision of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai and the Dubai external trade plan, Dubai will raise the value of its foreign trade from AED1.4 trillion to AED2 trillion in the next five years. In the virtual seminar, which saw active participation from international firms, Rashid Darwish, head of Customs Procedures Section at Tariff and Origin Department released figures that showed growth in mutual trade between Dubai and South Africa. Darwish said: “There is noticeable growth in trade between Dubai and South Africa despite the big challenge posed by the spread of the covid-19 pandemic. More growth is expected in the future thanks to the wise planning and highly advanced facilities and services Dubai provides to the foreign trade sector. Dubai always turns challenges into opportunities and there are promising prospects ahead by exploring the foreign markets.
‘Concerning that several SA banks have loaned money for Mozambique gas projects’ (CapeTalk)
Bruce Whitfield interviews Gerrit van Rooyen (economist at NKC African Economics) about the situation and the effect on South African companies with interests in Mozambique’s gas fields. It’s very concerning. The Mozambican government is expected to earn about $50 billion over the lifetime of these projects. Gerrit van Rooyen, Economist - NKC African Economics Total has now decided to completely withdraw their staff from its Afungi LNG Park that is being built to process the gas and to act as a base for these projects. Gerrit van Rooyen, Economist - NKC African Economics From a South African standpoint it’s concerning that several of our banks have loaned quite large amounts of money for these projects. We also have subcontractors involved there that are now also losing out on this business. Gerrit van Rooyen, Economist - NKC African Economics
IMF pushes for fuel tax rise in $2b loan deal (The East African)
Kenya’s Treasury is under pressure from the International Monetary Fund (IMF) to double the value added tax (VAT) on all petroleum products in an effort to cut budget deficit and tame public borrowing. The multilateral financier reckons that Kenya should impose a 16 percent VAT on fuels from the current eight percent when crude oil prices fall, signalling the fund is open for a delayed implementation to guard against growing public anger and pressure over soaring petroleum costs in the country. Petrol is currently retailing at a level last seen in November 2011 while diesel is selling at the highest level since December 2018. The IMF’s push for the fuel tax was revealed in an advisory to the government after the fund’s board approved a new loan for Kenya valued at $2.34 billion to help the country continue responding to the Covid-19 pandemic and address its debt vulnerabilities.
IMF warns protesting Kenyans face job cuts, taxes without loan (The East African)
The International Monetary Fund (IMF) warned Kenyans protesting its loans to the government that they face job cuts, tax increases and expensive loans without its assistance. The IMF has released a statement following public outcry over the government’s growing appetite for debt after it approved a $2.34 billion loan to Kenya, saying its bailout has saved the country from a debt crisis in the mid of the Covid-19 pandemic. The IMF said the loan would help Kenya tackle Covid-19 in the short run and balance its books in the long run by replacing expensive bank loans with concessional financing from bilateral countries and multilateral institutions. “The arrangements with the IMF — together with additional financing from development partners and capital markets and G-20 support under the Debt Service Suspension Initiative (DSSI) — will help meet Kenya’s significant medium-term financing needs including to support their Covid-19 response. The alternative to this financing is much sharper fiscal consolidation or much more expensive borrowing on commercial terms,” the IMF said in a frequently asked questions on Kenya.
Kenya mulls cutting Sh10m capital cap for foreign firms (Business Daily)
Kenya is considering lowering the blanket $100,000 (Sh10.89 million) minimum foreign investment requirement for international firms seeking to venture into less-capital services sector such as ICT to spur growth in foreign direct investment (FDI) flows. The Kenya Investment Authority (KenInvest) says it is seeking an international consultant to help draw conditional incentives for foreign investors. “There are many people who were thinking $100,000 is high and others were saying when people were innovating something like M-Pesa, they wouldn’t have needed that minimum capital. There are some types of businesses where you require human resource or knowledge more than capital,” KenInvest managing director Moses Ikiara said. “The thinking is to allow innovative investments that are not capital-intensive not to be locked out.”
Financing pressures to push up debt to 48.8% by June (Daily Monitor)
The African Development Bank (AfDB) has said an increase in financing needs will drive Uganda’s public debt to 48.8 per cent by June 2021. The debt, AfDB said in its country African Economic Outlook, is expected to surge further to above 50 per cent by June 2023. AfDB is one of Uganda’s largest multilateral lenders, coming only below the World Bank. Currently, it has a commitment of about $1.8b to both government and the private sector. Much of this is held in the transport sector, which accounts for at least 63 per cent of the bank’s portfolio.
In its outlook, AfDB said the slowdown in the economy in 2020, had increased government’s financing needs, which is 2021 projected to reach 11.4 per cent of Gross Domestic Product but was still within sustainable levels even as it exposes the country to adverse shocks.
Kenya, UK eye peace after travel ban fight (The East African)
Kenya and the United Kingdom are set for reconciliatory talks after a spat over Covid-19 risk levels triggered a tit-for-tat travel blockade from each of them. The two countries Wednesday announced that a joint committee would be formed to review the travel restrictions which threatened bilateral trade, economic and security relations. “They discussed the strength of our relationship – on trade, regional security, and health – and agreed to establish a Joint Committee to work together on addressing Covid-19 travel restrictions,” Kenya’s Foreign ministry said in statement.
Uganda’s hopes of resuming sugar exports to Kenya fade (Daily Monitor)
Hope of Uganda resuming sugar exports to Kenya continues to fade as Kenya announces an increase in production, amid a blockade on Uganda’s sugar. Kenya’s Ministry of Agriculture has reported a steady “increase in sugar production due to enhanced investments by government and private players” noting that in 2020 alone, industry capacity grew to 603,788 tonnes compared to 440,935 tonnes in 2019, setting off a 37 per cent improvement in local production. Uganda had been hoping to resume sugar exports to one of its biggest trade partners due to a large production deficit but indications suggest otherwise, with Kenya failing to conduct a verification exercise that had been expected in December last year.
The short‐term economywide impacts of COVID‐19 in Africa: Insights from Ethiopia (Wiley)
The COVID‐19 pandemic has become a global health and economic challenge since its outbreak in December 2019. As of November 2020, more than 52 million people were diagnosed positive with the virus worldwide, with over 1.3 million causalities (WHO, 2020). The first COVID‐19 case in Africa was reported on February 14, 2020 in Egypt, and since then over 1.4 million people were infected on the continent.
Being the second‐most populous country in Africa with a rapidly expanding economy before the pandemic, and leading sub‐Saharan Africa in the number of confirmed COVID‐19 cases, Ethiopia is considered as a case country in this study. Like many other African countries, the virus was imported to Ethiopia in early March and since then the country has taken several preventive measures to contain its spread. Whereas these measures have been critical in containing the viral transmission and the potential for widespread economic and human losses in Ethiopia, cases are increasing lately since the first observed case on March 13, 2020.
The pandemic is posing an unprecedented shock to the world economy because of the response measures countries adopt, including a partial or full shutdown of economic activities, simultaneously affecting both domestic and global value chains. Combined with the global effects, national measures have unavoidable considerable impacts on incomes, livelihoods, and the wider economy (Martin et al., 2020; Thurlow et al., 2020). Although the domestic response measures in place in Ethiopia are by far not as strict as in some countries in Africa, jointly with the external channels, these could cause massive disruptions in various sectors and the economy in general. Recognizing the negative impacts on GDP, IMF (2020) and AfDB (2020a) revised growth projections for Ethiopia from 6.2% and 6.1% to 3.2% and 3.7% in 2019/2020 and 2020/2021, respectively, despite significant policy support.
Understanding the nature of the impact channels and affected sectors is the first step to designing appropriate policy responses and relief measures that target the most vulnerable, aid in economic recovery efforts, and return the economy to its pre‐COVID growth trajectory. This paper utilizes a social accounting matrix (SAM) based multiplier model and provides an assessment of the economic and welfare effects of COVID‐19 related response measures in Ethiopia.
AfDB helps Egypt improve railway system safety with €145m loan (The North Africa Post)
The African Development Bank, AfDB, will extend Egypt a credit line of €145 million to help the country improve the railway system safety and to increase the network capacity. “The planned upgrades are expected to benefit low-income Egyptians, about 40 percent of the population, who rely on trains as an affordable mode of transport,” the bank said in a statement.
African Development Bank working on economic recovery support plan for Seychelles (Seychelles News Agency)
The African Development Bank (AfDB) is working on a financial facility to support Seychelles in its COVID-19 recovery programme, said a top official of the bank. The executive director of AfDB, Cheptoo Amos Kipronoh, made this statement after a courtesy call on President Wavel Ramkalawan at State House on Wednesday. “The facility will try and help Seychelles fully in the recuperation of its economy. I am seeing that the recovery process is going very well and the country has been able to vaccinate 60 percent of its population,” said Amos Kipronoh.
Leather sector revival should drive increased livestock investments (The Herald)
ALTHOUGH Zimbabwe is famed for quality livestock production, the sector has in recent years faced numerous challenges, which have weakened output capacity and frustrated value chain gains. A combination of climate change induced shocks, the rise in animal pests and diseases, inadequate financing and limited research knowledge, have constrained both communal and commercial livestock farmers with adverse impact on the entire economy and jobs. In 2020, for instance, farmers in Zimbabwe had lost over 300 000 cattle valued at around $4,394 billion due to a combination of the dry spell that decimated pastures and drinking water, and various diseases such as anthrax, January Disease (Theileriosis) and tick-borne diseases, due to lack of dipping chemicals, according to official reports.
Finance and Economic Development Minister, Professor Mthuli Ncube, stated in his 2021 national budget statement that due to resilience capacity building gaps, especially among communal farmers, who form a large base of livestock owners, the country has lost substantial livestock attributable to drought and floods, which reduced pastures as well as the continued outbreak of pests and disease attacks including the fall army worm, tuta absoluta and foot and mouth disease in cattle.
African regional and continental news
AfCFTA: 100 days since start of free trading, prospects seem bright (Africa Renewal)
“Increased intra-African trade is what will drive economic development post-COVID-19,” Mr. Mene told Africa Renewal in an earlier interview. The AfCFTA establishes a single market for made in Africa goods and services, eliminates tariffs by 90 per cent and tackles non-tariff barriers such as customs delays. “We are not going to get another opportunity to integrate; this is our last opportunity,” he said at a press briefing in January. “There is not a single African country that can work alone to trade its way out of poverty,” he opined at an event in New York just last month.
Making the trading system work for Africa (Lexology)
Competing for media attention at the beginning of 2021 was the fact that nearly the entire African continent created a free-trade zone: the African Continental Free Trade Area (AfCFTA). While much work remains to be done before the AfCFTA becomes fully operational and relevant, it does not lack for ambition. The plan is for virtually all African nations to open their markets to each other to establish a single market covering both trade and investment with a combined GDP of US$3.4 trillion. Economic integration is not a new idea in Africa. There are many sub-regional and other economic and trade agreements in Africa, several of which have been around for a long time. In fact, their longevity and relative lack of success in creating economic prosperity can explain some of the indifference and cynicism shown towards the AfCFTA. But is past necessarily prologue? This newest integration effort occurs at a time when the world’s trading system is undergoing significant change on many levels. The multilateral system established after World War II through the GATT and then the WTO is under strain. Economic nationalism is springing up in many countries that openly question the value of multilateralism, seemingly intent on fashioning a trading system based on strict reciprocity instead of non-discrimination. Overall, there is a growing impatience with the existing economic and trade architecture, which some argue has not delivered on its goals of raising living standards, particularly in developing countries. Against this backdrop, the AfCFTA may have arrived at the right time, as long as this is the beginning of a process, not the end.
Economic nationalism should not scupper the AFCFTA (The Herald)
The new African Continental Free Trade Area (AFCFTA) is a potential game changer for many economies in the region, but there is need for governments to fight the urge to protect the broader economic vision from threats of narrow national interests. Recently, Zambian fuel transporters have been pushing for authorities in that country to limit Zimbabwean fuel transporters from working with fuel companies and dealers in that country. Zambian fuel transporters are not happy as they feel their government is not prioritising them in the transportation of imported fuel, and in recent days parked their vehicles to demand for the fulfilment of that country’s 50 percent volume allocation policy.
Xinhua reports that tanker drivers have since resumed operations after the intervention by Zambian President Edgar Lungu who directed for the full implementation of the 50 percent fuel volume allocation. Zimbabwean drivers are happy with the development. “It is only through regional integration that we can enhance our standards of living as Africans.
SACU to focus on implementation of African free trade (New Era)
The much-anticipated African Free Trade Agreement (AfCFTA), through which trading commenced on 1 January this year, could bolster the continent’s income by US$450 billion (more than N$6 trillion) and lift 30 million people out of extreme poverty by 2035, if accompanied by significant
Making progress on implementation of economic diversification strategies in Central Africa (UNECA)
Getting Central African states switch from the design to implementation of economic diversification strategies, is the major result area on which the work done by the Subregional Office for Central Africa (SRO-CA) of the UN Economic Commission for Africa (ECA) in the sub-region will be measured against in 2021. To this effect, SRO-CA completed a geographic information system (GIS) spatial planning and investment decision tool during the first three months of 2021. In addition, a trade decision support model (DSM) for Cameroon (to be expanded to the who subregion) was equally completed and the process to design and use a Made in Central Africa marketing label launched.
Northern Corridor routes have recorded improved transit time during the last quarter of 2020 following reduced border crossing times because of various initiatives put in place to enhance seamless cargo flow and regional trade. According to the Northern Corridor Dashboard Quarterly Performance Report for the period between October and December 2020, transit time from Mombasa to Kampala reduced from 167 to 131 hours.
“The positive trend was attributed to the opening up of borders by the Northern Corridor Member States and implementing the Regional Electronic Cargo and Driver Tracking System (RECDTS),” Northern Corridor Transit Transport Coordination Authority said in a post published on its website.
Arab States: 2nd phase of ‘AfTIAS’ program (SIS)
Minister of Trade and Industry Nevine Gamea said that Egypt supports the launch of the second phase of the Aid for Trade Initiative for Arab States (AfTIAS) program, which aims to contain the negative impacts of coronavirus on trade movement in Arab states. Gamea made the remarks during her participation in a virtual symposium about the role of AfTIAS program’s second phase in reviving trade movement in Arab countries after the coronavirus pandemic ends. The event was organized by the International Islamic Trade Finance Corporation (ITFC).
The irony of Africa and Covid-19 – a continent so rich, yet so poor and so badly managed (Daily Maverick)
Africa’s path through and beyond the Covid-19 crisis will be determined to a large extent by the actions that all social partners take in the next few weeks. The virus confronts the continent with an imperative to begin looking ahead and repurposing, reimagining and reopening African societies, business, developmental institutions and government.
The effects of the pandemic have proven to be devastating to both the production and demand sides of the economy. The decline in GDP growth has been largely due to the marked slowdown in economic activity coupled with widespread disruptions in international, regional and domestic supply chains. Saving lives and preserving livelihoods was always going to be a monumental task.
Africa is not poor, just poorly managed. Though Africa is rich in resources, the continent and its people have been exploited for decades. Yes, several countries of Africa are among the poorest in the world and a large section of the population lives below the poverty line. While Africa carries about 20% of the global burden of disease, its scientific output represents less than 1% of the world’s share as measured by the field-weighted citation impact. Africa represents the youngest (the median age of an African individual is 19.7 years versus 38.4 years for the median individual in the US) and fastest-growing population in the world.
The implementation of the African Continental Free Trade Area (AfCFTA) agreement will boost intra-Africa trade. Africa is the world’s second-largest and second most populous continent — after Asia in both cases — and the most centrally located continent in the world with both the prime meridian (0 degrees longitude) and the equator (0 degrees latitude) cutting across it, therefore receiving direct sunlight throughout the year.
African presidents and global leaders support bold action on climate change adaptation for Africa (AfDB)
In a historic and united show of solidarity for a continent that contributes only 5% to global emissions, more than 30 heads of state and global leaders committed to prioritize actions that help African countries adapt to the impacts of climate change and “build forward better.”
Africa now faces the dual onslaught of climate change – currently estimated at between $7 billion and $15 billion each year – and Covid-19, which has claimed 114,000 lives. The African Development Bank expects that the impact of climate change on the continent could rise to $50 billion each year by 2040, with a further 3% decline each year in GDP by 2050.
Speaking Tuesday, during a virtual Leaders’ Dialogue convened by the African Development Bank, the Global Center on Adaptation and the Africa Adaptation Initiative, more than 30 heads of state and global leaders rallied behind the bold new Africa Adaptation Acceleration Program. The program’s objective is to mobilize $25 billion to accelerate climate change adaptation actions across Africa.
Adesina: African agriculture is ready for a digital revolution (AfDB)
After a dark 2020, a new year has brought new hope. In Africa, where up to 40 million more people were driven into extreme poverty and the continent experienced its first recession in 25 years, a brighter future beckons as the economy is forecast to return to growth this year. Africa now has an opportunity to reset its economic compass. To build back not just better, but greener. Particularly as the next crisis—climate change—is already upon us. Africa’s food systems must be made more resilient to future shocks such as floods, droughts, and disease. Urgent and sustainable increases in food production are needed to reduce reliance on food imports and reduce poverty, and this is where digital services come into play.
In West Africa, can organic shea become a solution? (Trade 4 Dev News)
Trade in shea nuts and shea butter, which provides a host of skin benefits and is also used in chocolates, is now a multimillion-dollar industry. And most shea, whether raw or processed as butter, comes from West Africa, specifically Burkina Faso, Benin, Ghana and Mali.
Burkina Faso is the world’s largest exporter of shea nuts, with an estimated global market share of around 50%. It is also in the least developed country (LDC) category, as are Benin and Mali, indicating the low per capita income and vulnerabilities to shocks. Could a move to exports of organic shea be one way to create more income security?
Climate adaptation and the Great Reset for Africa (Brookings)
The pandemic has created the opportunity for a “great reset” of Africa’s economies. As Foresight Africa 2021 highlights, Africa needs bold action for an economic revival from the COVID-induced estimated 3 to 5.4 percent contraction in GDP and the devastating increase in the number of extreme poor by about 40 million.
Climate change continues its calamitous trend; the destruction facing Africa has not stopped during the pandemic. The 2020 floods in East Africa affected well over a million people, and the Nile River hit its highest levels in half a century. The worst locust outbreak in 25 years, caused by unusual weather conditions, left about one million people food insecure in the Horn of Africa. In the long term, Africa could see its GDP decrease by up to 30 percent by 2050 due to climate change.
African countries with challenging fiscal positions and high debt levels can ill afford the costs of climate shocks. For example, the recent Cyclone Idai of March 2019 affected more than 1.5 million people in Mozambique. According to the World Bank, the poverty rate in the affected areas rose to 79 percent, up from 64 percent, and real GDP growth decreased from an estimated 4.7 percent to 2.4 percent. Moreover, a catastrophe risk modeling study estimated that the country faces average annual losses of about $440 million due to floods alone. Mozambique is not alone in Africa. Achieving the Sustainable Development Goals will be slower and more expensive if African societies do not mainstream adaptation and resilience in all economic activities. Given the rapid pace of urbanization on the continent and the specific climate risks of urban areas, the need to combat these effects is more urgent than ever.
Liberia to Host ECOWAS Decolonized Meeting to Focus Women Empowerment (Front Page Africa)
Liberia is expected to host a 5-day decolonized ECOWAS Meeting. The expected meeting will take place in Monrovia from the 13-17 of April 2021 with specific focus on ECOWAS women. The theme of the expected meeting is “Empowerment of Women in the ECOWAS Region” and will be held at the Ministerial Complex in Congo Town.
In 2017, Liberia hosted another ECOWAS meeting where issues of community interest particularly the running of institutions and organs of the Economic Community of West African States (ECOWAS), alongside economic development of the West African sub-region dominated the 21st meeting of the Administration and Finance Committee (AFC) of the regional organization.
Among items for information, the ministers listened to presentations on various issues such as the organization of the 8th ECOWAS Trade Fair in Niamey, Niger, status of implementation of the ECOWAS Common External Tariff (CET), ECOWAS Biometric Identity Card, and Monrovia Declaration on
US-Africa Energy Forum 2021 Launches: Promotes US Role As Primary Investor In African Energy (Africa Oil & Power)
Africa Oil & Power (AOP) and the African Energy Chamber are excited to announce the launch of the first-ever U.S. Africa Energy Forum (USAEF). This event aims to create deeper cooperation between the U.S. and Africa on energy policy, to reach alignment on long term sustainability goals, to stimulate greater American investment in the African oil, gas and power sectors, and to engage and reposition the U.S. as the primary partner of choice for African energy developments. Under the theme “New Horizons for U.S. Africa Energy Investment” the forum will explore diverse foreign investment and export opportunities across the continent, including natural gas as a vital fuel for the energy transition; energy storage and battery minerals; Africa’s place in global energy supply chains; the benefits of the African Continental Free Trade Area; evolving energy technologies and how they relate to the future role of petroleum resources; and on-and off-grid power developments.
European multilateral development banks in sub-Saharan Africa (Lexology)
A range of multilateral development banks (MDBs) have been active in Africa for several decades. This article considers recent developments concerning the European MDBs, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) in sub-Saharan Africa.
Towards the Second Russia-Africa Summit (Modern Diplomacy)
Sudan is known to be embroiled in a boundary dispute with Ethiopia. This border disagreement was sudden and experienced no former political conflicts. Following the border dispute, it is clear that Sudan’s position on the Renaissance Dam is changing. Sudan’s interest has repeatedly been described as a third-party mission. Despite the Sudanese opposition, the Ethiopian government has repeatedly stated Sudan is engaged in another mission .
The Sudanese government on the one hand is wearisome to show the boundary is unrelated to the Renaissance Dam mediations. While on the one hand, trying to inform the dialogues on the border and the Renaissance Dam is genuinely from Sudan’s political interests but not from foreign forces. Nevertheless, the critical question is how balanced these efforts are.
Ethiopia’s idea of the GERD was to resolve Africa’s problems with Africans, which Sudan remain a proponent of. However, It was purely after the border dispute that Sudan’s views became clear. Sudan had mentioned that the AU negotiations were unreliable, as traditional fashion which is no longer feasible. Efforts to make the issue more global have continued since then and another aspect of this is to show Ethiopia as stubborn in the international relations arena.
Both Sudan and Ethiopia’s efforts to address Africa’s problems in the continent were because they perceived the role of the West as inseparable from pressure. This was noted by the United States effort. It is comprehensible; therefore, that Sudan’s desire is for the international
Africa Ready For Right-Sized Fleets (Aviation Week)
It may not yet be considered a mature aviation market, but Africa is expected to be a huge area for growth in aircraft acquisition during the 2020s. One of the features of that growth is likely to be the ability of carriers to move straight to a right-sized fleet.
Daniel Galhardo, director of strategy, Embraer Commercial Aviation, acknowledges that although in terms of new aircraft sale numbers, regional jets did not breakthrough in Africa, the company does have examples of substantial fleets being successfully operated by carriers, such as Airlink and Kenya Airways. “The pre-owned market is very relevant in Africa, probably more than anywhere else in the world, and when we consider that, we see significant penetration for the segment,” he remarks.
While considerable growth continues to be expected, the Covid pandemic will clearly affect the figures in the OEMs’ forecasts for these types in Africa, although it may merely be a time shift. “The main consequence of the pandemic has been a fall in demand that has strongly affected all aspects of air transport in Africa,” Houari confirms. “We anticipate that 2019 traffic levels could return by 2023 at best, or 2025 in the worst timeframe.
“This short-term economic crisis does not mean the end of long-term economic growth,” he stresses. “The fundamental drivers of economic growth in Africa have not changed. The resultant air traffic growth will be driven by demography, with a population expected to exceed 2 billion within 20 years, as well as by urbanisation and middle class development. Inbound tourism and intra-Africa tourism will continue to contribute to national economies and drive air traffic growth. We are confident that the A220 will play a significant role in meeting the needs of air transport in Africa.”
Global economy news
Major study reveals where international trade grew despite the pandemic (DP World)
The study was commissioned by DP World and conducted by the EIU at the outbreak of Covid-19 in Q1 2020, and updated in Q4 2020. Despite the disruption to supply chains, it found that optimism about future growth is widespread and assuming the pandemic does not worsen, and protectionist polices remain restrained, 77% of companies expect international sales to expand.
Capturing the perspectives of business leaders across six regions (North America, South America, Europe, Middle East, Africa, and Asia Pacific), the study found 83% of companies are reconfiguring their supply chains, including a diversification of the countries they intend to trade with. In Europe, for example, companies expected international sales from N. America to increase from 14% in 2019 to 21% in 2020. Conversely, in the Middle East international sales from N. America have decreased whilst revenue from Africa is expected to increase by 50%. In Asia-Pacific, 76% of companies are earning most of their international revenue from within the region. The next important continent for them in terms of international revenue is North America, which lagged behind at 13%.
A global study of private sector perspectives highlights how international trade flows have remained robust despite the pandemic. On average, companies allocated 32% of revenue from the first half of 2020 to help them switch suppliers or logistics providers and change production or purchasing locations.
Sultan Ahmed Bin Sulayem, CEO and Chairman of DP World, said: “International trade has shown remarkable resilience during the pandemic and will play a critical role in facilitating the global recovery. The business community is more optimistic for the future than many expected, and the supply chain challenges exposed by the pandemic have acted as a positive agent for change. We expect the result will be global flows of trade that are more efficient and more robust.”
G20 agrees ‘final extension’ to $10 billion debt service suspension scheme (EURACTIV)
Developing countries stand to benefit from up to $10 billion in savings after the G20 group of wealthy nations announced on Wednesday (7 April) that it would extend its debt service suspension initiative (DSSI) which launched last May until the end of this year. Forty-five countries signed up for the DSSI last year, resulting in the deferral of $5.7 billion in debt payments. Extending the initiative until the end of 2021, which the G20 said would be the “final extension” of the scheme, could potentially save an additional $9.9 billion.
The G20 ministers also gave their endorsement for the International Monetary Fund (IMF) to propose a new Special Drawing Rights (SDR) worth $650 billion to help economies hit by the pandemic.
African nations expect $33.6B in Special Drawing Rights (Devex)
African nations expect to receive $33.6 billion from a new issuance of Special Drawing Rights, according to Vera Songwe, executive secretary of the United Nations Economic Commission for Africa. On Wednesday, G-20 finance ministers and central bank governors reaffirmedcalls for the International Monetary Fund to make a proposal for a new allocation of $650 billion in SDRs — an international reserve asset — that will provide countries around the world with liquidity. The last SDR allocation was issued in 2009 following the global financial crisis. The African Union has advocated for a global issuance of SDRs over the past year in hopes that countries can use these funds for the purchase of COVID-19 vaccines, and other parts of national pandemic recoveries.
G20 debt relief for poor nations means COVID healthcare investment (Thomson Reuters Foundation)
When COVID-19 first hit, it was spoken about as a ‘great equaliser’ – but as its full impact is becoming clearer, it is clear this could not be further from the truth, particularly when it comes to how nations are able to build back. Countries across the world, rich and poor, have all taken an economic hit over the last year. But the pandemic made existing inequalities worse, pushing as many as 150 million more people into extreme poverty according to the World Bank. On one side, rich countries have been able to mobilise huge sums, an average of nearly 10% of their GDP, and an unprecedentedly large total of $20.6 trillion to respond to the pandemic and stimulate their economies.[1] Take the USA’s announcement last month of $1.9 trillion in relief measures as an example. The world’s poorest countries, at the other end of the spectrum, have fewer options available to help weakened economies bounce back. Although many have had their debt repayments suspended for the moment, repayment still looms meaning that there is less room to invest in healthcare systems which were fragile even before the onset of COVID-19, and many are hesitant to re-impose restrictions and public health measures which could undermine the modest recovery of their economies, despite new waves of the disease.
Half of all imported goods from low-income countries are clothes (Statistics Netherlands | CBS)
The United Nations compiles a list of Least Developed Countries (LDCs) which is reviewed every three years. The criteria are gross domestic product (GDP), economic vulnerability and several indicators on education and health. 13.6 percent of the entire world population live in one of these 46 countries, most of them located in Africa (33 countries, 700 million inhabitants) and Asia (9 countries, 340 million inhabitants); another 15 million live in low-income countries in Oceania (3) and America (1).
In 2020, Dutch imports from the LDCs were worth 2.9 billion euros, representing a decline of 4 percent on 2019. This amount comprised 1.9 billion in goods from Asia (65 percent) and 1.0 billion from Africa (34 percent). Asia predominantly supplies clothing while Africa supplies raw materials. Last year, the share held by LDCs in total Dutch goods imports was 0.7 percent. This is roughly equivalent to imports from Austria, our 30th largest import partner.
Of all goods imported by the Netherlands from the LDCs, clothing is by far the most important category. In 2020, Dutch import flows of clothing from the LDCs were worth 1,453 million euros. Almost three-quarters of that amount came directly from Bangladesh. The remainder of clothing imports is mostly sourced from Cambodia and Myanmar. In 2020, footwear imports – almost exclusively from Bangladesh and Cambodia – were worth virtually the same amount as in the previous year, i.e. 180 million euros. Crude oil imports are almost entirely sourced from Angola. With a share of almost three-quarters, Ethiopia is by far the largest supplier of cut flowers. Aluminium imports are almost exclusively sourced from Mozambique.
Futures Report Outlines Top Trends Impacting Global Economy, Society and Technology (World Economic Forum)
The new technologies of the Fourth Industrial Revolution, such as artificial intelligence (AI), the cloud and robotics, are changing the way we live, learn and do business at a rate unprecedented in human history. This seismic shift is playing out in a world characterized by unreliable political landscapes and increasing environmental instability.
“The rapid pace of technological change, alongside the global crisis caused by COVID-19, means that leaders today need new tools to understand challenges and develop strategies in the face of an increasingly uncertain future. This report provides three new analytical tools for business leaders to think about the future in a dynamic environment,” said Ruth Hickin, Strategy and Impact Lead, Centre for the Fourth Industrial Revolution, World Economic Forum.
Air Cargo Demand Up 9% in February Compared to Pre-COVID Levels (IATA)
The International Air Transport Association (IATA) released February 2021 data for global air cargo markets showing that air cargo demand continued to outperform pre-COVID levels with demand up 9% over February 2019. February demand also showed strong month-on-month growth over January 2021 levels. Volumes have now returned to 2018 levels seen prior to the US-China trade war.
African airlines’ cargo demand in February increased a massive 44.2% compared to the same month in 2019 the strongest of all regions. Robust expansion on the Asia-Africa trade lanes contributed to the strong growth. February international capacity grew by 9.8% compared to February 2019.
“Air cargo demand is not just recovering from the COVID-19 crisis, it is growing. With demand at 9% above pre-crisis levels (Feb 2019), one of the main challenges for air cargo is finding sufficient capacity. This makes cargo yields a bright spot in an otherwise bleak industry situation. It also highlights the need for clarity on government plans for a safe industry restart. Understanding how passenger demand could recover will indicate how much belly capacity will be available for air cargo. Being able to efficiently plan that into air cargo operations will be a key element for overall recovery,” said Willie Walsh, IATA’s Director General.
Related News
tralac Daily News
National trade and trade-related news
IMF forecasts South Africa’s GDP will grow 3.1% in 2021 (BusinessTech)
The International Monetary Fund (IMF) has published its latest World Economic Outlook, with the group now projecting a stronger recovery for the global economy in 2021 compared to its January forecast. The IMF said that global growth is projected to be 6% in 2021 and 4.4% in 2022, after an estimated historic contraction of -3.3% in 2020. “The upgrades in global growth for 2021 and 2022 are mainly due to upgrades for advanced economies, particularly to a sizeable upgrade for the United States (1.3 percentage points) that is expected to grow at 6.4% this year.
“Among emerging markets and developing economies, China is projected to grow this year at 8.4%. While China’s economy had already returned to pre-pandemic GDP in 2020, many other countries are not expected to do so until 2023.” The group’s updated data for South Africa shows that annual growth is projected to be 3.1% in 2021 – an improvement of 0.3 percentage points from the 2.8% January forecast. The group forecasts annual growth of 2% in 2022 for the country. Data published by Statistics South Africa in March showed that South Africa’s economy contracted by 7% last year.
SA signs deal with Pfizer for 20 million vaccines (SAnews)
Likewise, he said the country will also embark on an implementation study with a limited number of Pfizer doses used amongst healthcare workers, which he describes as another valuable contribution to the science of mass vaccination. These doses will take us to the last mile of the Sisonke Protocol, which is set to become one of the most seminal studies in the history of the pandemic,” the Minister said on Monday.
US to make Kenya wait on new free trade deal (The Standard)
The fate of trade talks between Kenya and the United States to establish a free trade area remains uncertain as Washington realigns its interests under the new Biden administration.
This came out during a virtual meeting between Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina and US Trade Representative Amb Katherine Tai last week to discuss the progress of the talks. “Amb Tai and Minister Maina discussed the importance of the US-Kenya relationship and strengthening ties between both countries,” said the US Trade Office in a statement following the talks.
Trade CS said they started the negotiations with the US in July last year on a comprehensive Free Trade Agreement (FTA) and have so far held two rounds of negotiations. She noted that following transition in the US, the new US trade representative only commenced work two weeks ago and requested more time the review the negotiations.
Agency seeks expert in UAE exports push (Business Daily)
The Kenya Export Promotion and Branding Agency (Keproba) is hiring a consultant to conduct consumer research on local products that have the highest export potential to the United Arab Emirates. The balance of trade between the two nations heavily favours the United Arab Emirates (UAE), with Kenya mainly exporting tea, spices, goat meat, coffee and fresh cut flowers and importing petroleum fuels, manufactured articles, textiles plastics and electronic goods from the Middle East nation. Kenya’s exports to the UAE stood at Sh19.2 billion last year, against Sh92.7 billion imports, making it the third largest exporter to Kenya after China and India.
Sugar price drops Sh18 per kilo on rising production (Business Daily)
The retail price of sugar has dropped by up to Sh18 per kilogramme in the past two months as consumers start to reap the benefit of an increase in local production. A spot check by the Business Daily shows that a two-kilo packet of the commodity is now retailing at Sh189 for Kabras sugar, Sh206 for Ndhiwa and Sh210 for locally packaged product, from a high of Sh225 in January. The price fall ironically comes at a time when the government has tightened import measures by restricting the amount that can be shipped into the country, to curb flooding of cheap sugar that had initially been blamed by processors for depressed prices. The current prices are attributed to an increase in production locally with the volumes of sugar cane coming from farms having increased.
Jinja expressway will spur regional integration - Unra (Daily Monitor)
Despite the government securing funds in excess of Shs800 billion meant for the construction of the $1.48b (about Shs5.3 trillion) Kampala-Jinja Expressway (KJE), works will commence next year, the Uganda National Roads Authority (Unra), the implementing partner, has said.This comes after the recent signing of a financing agreement for Phase 1 between African Development Bank (AfDB) and the Ugandan government worth $229.5m (about Shs828 billion).This, however, was not the first funding secured. A total of €90m (about Shs369 billion) was already got from the European Union as grant, an additional funding of $90m (about Shs324 billion) is expected from the French Development Agency, while the balance will be provided by the private sector.
‘Nigeria Can Export $3bn Worth of Cocoa Derivatives Under AfCFTA’ (THISDAY)
The federal government has disclosed that by taking advantage of the African Continental Free Trade Area (AfCFTA), Nigeria has the capacity to export $3 billion worth of derivatives from cocoa and $300 million from the sale of the raw unprocessed commodity. Speaking on Arise News Channel, THISDAY’s broadcast arm, recently, the Senior Special Assistant to the President on Public Sector Matters, Mr. Francis Anatogu, who is also the Secretary of the National Action Committee (NAC) for Nigeria’s AfCFTA implementation, noted that there is massive opportunities in the area if well harnessed. He argued that it was in the interest of the federal government to make sure that the policies that it puts in the public space make it easier for businesses to thrive, saying it is only then that they can make money and pay taxes to the government.
Morocco Jobs Landscape (World Bank)
This report sheds light on major labor market issues and challenges that Morocco faces. It is the first phase of the programmatic jobs program jointly undertaken with the government of Morocco. It is a jobs diagnostic that analyzes data mainly from Labor Force Surveys and employs new analytical methods to identify the main trends in the labor market. The key challenges that emerge will provide the basis for a deeper analysis and policy formulation in the next phase of this program. The report identifies four priorities: (1) accelerate structural transformation to create more and better jobs in higher-productivity sectors, (2) encourage formalization and improve the quality of jobs, (3) increase female labor force participation (FLFP) and connect women to better jobs, and (4) support youth in their transition from education to the labor market and lower the large numbers of youth not working.
Senegal: Catalyzing Growth Through Regional Integration (Africa Oil & Power)
With a favorable geographical position on the westernmost point of Africa, an abundance of natural resources, and strong political leadership and stability, Senegal is set to transform its economy through the development of its energy sector. The country is endowed with vast natural resources, including significant natural gas reserves and renewable energy sources, and has committed to the diversification of its energy mix to meet rising energy and electricity demand. With a clear presidential vision in which the energy sector is seen as a key driver of economic growth, H.E. President Macky Sall is pursuing increased investment in Senegal’s growing energy industry. Through the promotion of an attractive business environment, the implementation of industry supportive regulation, and an integrated sectoral approach, H.E. President Sall is transforming the country into an energy hub.
Gambia-Senegal signs agreement on transit trade facilitation - The Point
The Gambia and Senegal Reach Significant Bilateral Agreement on Transit Trade Facilitation Consistent with the objectives of the revised ECOWAS Treaty, Convention on Interstate Road Transit and the ECOWAS Trade Liberalisation Scheme as well as the Trade and Transit Cooperation Agreement between The Gambia and Senegal on the 12th March 2020 in Dakar, the Governments of the two counties on Tuesday, 30th March 2021, made significant progress towards the facilitation of the transit trade across their respective territories.
The two countries also agreed to codify transit procedures between Gambian and Senegalese Customs Administrations by mid-2021, and adopting the Automated Management of Transit Merchandise (SIGMAT) as well as upgrading strategic border posts.
The program will benefit 20,000 farmers. It serves as an end-to-end value chain solution that brings together all the conditions necessary for improving rice productivity and small farmers revenues, including the provision of high-quality fertilizers and hybrid seeds, training on good agricultural practices and soil fertility, as well as market linkages. The program will also serve to safeguard the health of the country’s farmers in the wake of COVID-19 through the provision of personal protective equipment to smallholder farms.
African regional and continental news
A practical perspective on the African Continental Free Trade Area (AfCFTA) (Mail & Guardian)
One only has to think of the enormous queues of trucks at Beit Bridge to realise that any agreement that makes trade between African countries a smoother process is essential. The African Continental Free Trade Area is still being hammered out, but has the potential to put Africa, which presently has very little trade between its own member states, on the map. But, as with any agreement like this, compromise from all parties is essential.
Hartzenberg began the webinar by summarising what Tralac is about. It is a public benefit organisation, based in South Africa, which works across Africa in its trade agenda. Among others, it provides training and facilitates policy dialogue; great emphasis is placed upon improving governance.
Erasmus said that the African Continental Free Trade Area (AfCFTA) is an ambitious initiative by the member states of the African Union, which aims to boost intra-African trade, integration and development by creating an integrated market for goods and services, and promoting cross-border movement of capital and persons. AfCFTA entered into force on 30 May 2019, and trade under the AfCFTA was launched on 1 January 2021, but key issues for this free trade area are still under negotiation.
Free trade: Africa’s golden opportunity (New Era)
Africa has a unique opportunity to significantly advance the continent’s economic status and reverse the current socio-economic challenges the continent is facing. This is according to the secretary general of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene. Mene addressed entrepreneurs at the official launch of the Africa Economic Leadership Council yesterday in Swakopmund.
“AfCFTA has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans. It is expected to lift around 68 million people out of moderate poverty and make African countries more competitive in terms of trading with the rest of the world,” Mene
Africa has started well with AfCFTA trade policy – Dr Tagoe (GhanaWeb)
A former Professor of Accounting and Management practices at Nottingham University, Dr Noel Tagoe, has stated that Africa has started well with the African Continental Free Trade Area (AfCFTA) policy, by explaining clearly the objectives of the policy are. In an interview with JoyNews monitored by GhanaWeb, he said member countries are not coming into the trade agreement clueless, since they already have some regional integration policies such as the Economic Community of West African States to guide them. “We started at a very good point because the law must be based on policy, so the policy states what objectives are and the laws then should bring the objectives into being so each country then will have to put in-laws that are aligned to the policy at the continental level. There are dispute resolution mechanisms that have been put in place at the continental level and that should help them to deal with it. I think Africa has had some experience in these things because we have had regional economic community such as ECOWAS and others so we are not coming into this entirely new we are coming in with some amount of experience,” he said.
African Free Trade Area Expected to Lift Millions out of Extreme Poverty and Boost Growth (IDN InDepthNews)
The long-awaited African Continental Free Trade Area (AfCFTA) – set to be the world’s biggest free trade zone by area – entered into force on January 1, 2021, promises a new era for African trade. An Africa-wide free-trade pact could bolster the region’s income by $450 billion and lift 30 million people out of extreme poverty by 2035, if accompanied by significant policy reforms and trade-facilitation measures, according to the World Bank. When fully operational, the Free Trade area will create a market of 1.2 billion and drive a combined GDP of $2.5 trillion. Dr Wim Naudé, Professor of Economics at the Department of Economics with the Cork University Business School in Ireland, explains: Trade is one of the great engines of economic growth and prosperity as it allows countries to specialize in production and diversify in consumption.
ECOWAS and UNDP launch Capacity Building Programme for the private sector to benefit from the AfCFTA (News Ghana)
Trading under the preferential terms of the African Continental Free Trade Area (AfCFTA) commenced on January 1 2021. The AfCFTA will create a single African market for goods and services covering 1.2 billion people and a combined Gross Domestic Product of US$3 trillion through the progressive elimination of tariffs, the removal of non-tariff barriers, cooperation in customs arrangements and related areas, liberalization of trade in services, and developing African disciplines on Intellectual Property Rights, Investment, Competition and E-Commerce.
Considering the important role of the private sector in this newly established market, the potential of the region, which consolidated market size can attract investments into the region, the ECOWAS Commission is scheduled to implement a range of awareness and capacity building programmes for producers, traders and service suppliers to maximize the opportunities within the AfCFTA.
For this purpose, on April 07th 2021, the ECOWAS Commission, in collaboration with UNDP, will launch a training programme aiming at strengthening the capacities of the private sector in the region in general and, more specifically, the capacities of women to take advantage of the African
‘Poor coherence among regional partner states is hurting trade’ (Daily Monitor)
Every objective trade policy commentator would call Uganda a “pacifist” whose aim is to boost intra-EAC trade. Whereas a number of EAC partner states have blocked Uganda’s goods, the latter has not retaliated even when legislators and private sector actors have called for retaliation. Whereas Uganda’s response can be frowned upon, the long-term intent should be commended as it is a precursor to the realisation of the African Economic Community, as envisaged in the 1991 Abuja Treaty.
According to the EAC Secretariat, in 2018, Rwanda’s total trade with EAC partner states increased by 13.4 per cent to $638.8m from $563.2m in 2017. Kenya’s trade with the EAC increased by 4.7 per cent to $1.95b from $1.86b in 2017, this was mostly attributed to an increase in business with Rwanda, Tanzania and Uganda. Uganda’s trade with EAC increased by 21.2 per cent to $2.05b from $1.69b while Tanzania increased by 14.6 per cent to $811.3m, from $707.7m.With Covid-19 disrupting supply chains, this is likely to reduce. However, according to the African Integration Report (2020), free movement of goods remains a major challenge for the EAC when we refer to the low level of intra-regional trade (22%, EAC 2018).
Surprisingly, this level of intra-regional trade is one of the highest on the continent. Furthermore, Intra- EAC is still constrained by Non-Tariff Barriers (NTBs) which as of December 2020 stood at 17 outstanding NTBs. Coupled with the ongoing trade tensions among Partner States, it can be said that trade opportunities that accrue to EAC integration aren’t being fully exploited.
East African banks raise bad loans provision to cushion distressed clients (The East African)
Covid-19 pandemic has seen the world confront its biggest health crisis this century, posing one of the most disruptive periods to businesses, forcing banks to empathise with clients’ lost livelihoods and businesses by easing off on loan payment demands Top East African banks increased provisions for bad debts by over $736 million last year (2020) to reduce exposure on household and business loans in countries ravaged by Covid-19 pandemic, affecting impacting profitability and returns to shareholders. A review of the banks audited financial statements shows that top eight Kenyan banks by market share more than tripled their loan loss provisions to Ksh104.64 billion ($960 million) from Ksh28.68 billion ($263.11 million) in 2019.
The report dated March 29 2021 shows that in West Africa, Nigerian banks lent a total of $22.57 billion with bad debt charge increasing 73 per cent to $433 million from $ 251 million in 2019 while Ghanaian banks lent an estimated $614 million with loan loss provisioning increasing 182 per cent to $37 million from $13 million in the same period.
Through the pandemic and beyond: New report reveals regional partnerships are key to COVID-19 recovery in Africa (Pulse Nigeria)
A new report by the Africa Centres for Disease Control and Prevention (Africa CDC) and UNDP presents the key results from the evolving partnership between the two organizations in response to the COVID-19 pandemic. With over 3 million people infected and almost 100,000 lives lost across the continent, the report places a spotlight on societal resilience across sectors, the sheer determination by Africans to minimize the health impact, as well as the social disruption and economic consequences of the pandemic.
Shaping Africa’s Post-Covid Recovery (VOX, CEPR Policy Portal)
With the exception of some flashpoints in Northern and Southern Africa, the continent has been largely spared from the direct health effect of Covid-19. However, the African economy has been significantly hurt by the economic consequences. This eBook summarises recent research on the economic effect of the Covid-19 pandemic in the continent covering a wide array of topics focusing on the response of firms, households, governments, and international organisations.
World Bank: Africa needs $12 bln for vaccines to halt COVID-19 spread (Africanews)
According to an estimate based on a report by the World Bank and the International Monetary Fund, Africa will need about 12 billion US dollars to both procure and distribute sufficient numbers of COVID-19 vaccines to attain adequate protection against the virus that would see an end to the compounded devastating effects of the pandemic on the continent. The report argues for a further extension of the Group of 20’s debt service moratorium through to the year’s end -- noting in particular, the continued high liquidity needs of developing countries and their deteriorating debt sustainability outlooks. In addition, it states that the estimated financial sum the African continent will need to curb coronavirus transmission is about the same as the total amount of official debt service payments already deferred by 45 of the most economically challenged nations participating in the G20’s Debt Service Suspension Initiative (DSSI).
Despite low virus cases, Africa faces risks (Gulf Today)
The coronavirus has hit a good number of economies around the world and Africa is no exception. South Africa’s gross domestic product grew quarter on quarter in the three months ending in December, led by expansion in manufacturing, construction and trade, but the economy recorded its biggest annual contraction in seven decades in 2020. South Africa’s economy, which was in recession before the COVID-19 pandemic, deteriorated sharply last year after the government imposed a strict lockdown to curb the spread of the coronavirus. A report in October last year said that recovery among Africa’s major economies will be mixed and mostly tepid. The coronavirus hit spending in Africa that year and in particular hampered economies that either export raw commodities or depend on tourism, as the pandemic stymied global economic activity. Sub-Saharan Africa’s economy will not rebound to pre-pandemic growth levels until 2022 with major economies likely to take even longer to recover, the International Monetary Fund wrote in a report.
Why Africa must build up its pharmaceutical industry (Khaleej Times)
Six hundred million doses of Covid-19 vaccine were administered worldwide by the end of March. However, only eight million had been given out in sub-Saharan Africa, a region with 1.3 billion people. By contrast, over 35 million shots were administered in the same period in the UK (population: 67 million). The glacial pace of vaccination in the developing world, and in sub-Saharan Africa in particular, amid vaccine nationalism in developed countries, raises questions about how Africa can lessen its dependency on donors for its health security. One answer lies in an Africa-based pharmaceutical sector capable of manufacturing essential drugs and vaccines. It could also jumpstart Africa’s broader economic development.
Yet Africa has the potential to guide its own destiny. Pharmaceutical companies exist in nearly 40 African countries. The problem is, most do very basic work. For the most part, the industry is limited to packaging already manufactured medicines, or buying active pharmaceutical ingredients (APIs) to combine into medicines. Only three companies, two in South Africa and one in Ghana, actually manufacture APIs themselves. None undertake research and development.
The Covid-19 pandemic has shown the importance of thinking globally and acting (rapidly, pro-actively and robustly) locally. It has also raised questions as to the potential benefits of localising pharmaceutical production, and expanding production across the Global South. The expansion of the African pharmaceutical sector would provide a more local and secure source for key vaccines and drugs, reducing the need to rely on the goodwill of developed-country donors.
HS 2022 amendments to SACU Common External Tariff published for consultation
In an effort to strengthen the inclusive and transparent character of the process of implementation of the Harmonized System (HS), the Southern African Customs Union (SACU) has recently made available the HS 2022 amendments to its Common External Tariff for public consultation. All SACU Member States - Botswana, Eswatini, Lesotho, Namibia and South Africa - have simultaneously placed draft tariff amendments on their official web-sites, inviting comments and feedback from the public.
Transforming The Landscape For African Women Entrepreneurs And Unpacking The Obstacles To Women’s Financing, Offering Solutions (Global News Network)
This month, known to many as International Women’s Month, the African Development Bank Group (AfDB) continues to put a spotlight on women-led businesses and financial institutions set to support them. The business experiences of African women running small and medium-sized enterprises, as well as financial institutions supporting them, were the subject of an online event held on 8 March 2021, by the African Development Bank (AfDB) and the African Guarantee Fund (AGF). The businesses are all clients of financial institutions participating in the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program. The program is a tri-pillar innovation that aims to unlock up to $3 billion in loans to small and medium enterprises in the next five years. Working through financial institutions, the program addresses the financial and non-financial needs of small and medium enterprises by offering access to finance and technical assistance to enhance their bankability and ability to grow profitable and sustainable businesses. “Women are the heart of our economy and the keys to building a more resilient, inclusive and prosperous society across the continent amidst the global pandemic,” said Vanessa Moungar, the Bank’s Director for Women, Gender and Civil Society, in her welcoming remarks to over 400 online participants.
Gender Ministers Approve Key Documents for Gender Equality and Women Empowerment (COMESA)
Ministers responsible for Gender and Women’s Affairs from the COMESA Region recently met and approved several toolkits and documents which are expected to help the region promote gender equality, women empowerment and social development. The one-day Ministerial meeting held virtually via zoom on 29 March noted that women have continued to be negatively affected by many challenges including COVID-19 which has contributed to most of them recording slow progress.
Gender inequality remains a major challenge affecting the regional integration agenda. women entrepreneurs continue to experience different forms of harassment and many gender specific non-tariff barriers,” He added “This meeting has the opportunity to change this situation by implementing instruments that can support women and improve their welfare,” Hon. Yaluma said through his representative at the meeting Hon. Elizabeth Phiri, Minister of Gender Affairs.
Renewable energy access key to climate adaptation in Africa: UN chief (UN News)
“As the continent that has contributed least to the climate crisis, Africa deserves the strongest possible support and solidarity”, he told an online dialogue for leaders convened by the African Development Bank. Mr. Guterres warned that “adaptation must not be the neglected half of the climate equation”. Although Africa has abundant and untapped renewable resources, it has received just two per cent of global investment in renewable energy over the past decade, he reported.
“We can provide universal access to energy in Africa primarily through renewable energy. I call for a comprehensive package of support to meet this objective ahead of COP26,” Mr. Guterres said, referring to the UN climate change conference in November. However, the Secretary-General pointed to “the major finance” gap blocking progress towards this goal. He urged developed countries to deliver on their $100 billion climate commitment made over a decade ago.
African experts push for continent’s energy integration (Xinhua)
African countries will need to integrate their energy for sustainable economic development and post-COVID-19 economic recovery, experts said in Nairobi Tuesday. The experts from academia and Africa Union, among others, said that energy as an economic and social input was central to the attainment of Africa’s sustainable development as envisaged by the United Nations Sustainable Development Goal number seven. “Africa needs to reflect on how regional energy integration contributes to energizing its economic recovery program and attainment of sustainable development,” said Kenneth Mbali, a Ph.D. candidate at the Institute of Diplomacy and International Studies (IDIS) of the University of Nairobi, during the webinar organized by the institution. The experts observed that although Africa has tremendous potential, more than 600 million people lack electricity. And those who are connected pay more for the commodity, stifling growth, they said.
OPINION: African agriculture is ready for a digital revolution (Thomson Reuters Foundation)
After a dark 2020, a new year has brought new hope. In Africa, where up to 40 million more people were driven into extreme poverty and the continent experienced its first recession in 25 years, a brighter future beckons as the economy is forecast to return to growth this year. Africa now has an opportunity to reset its economic compass. To build back not just better, but greener. Particularly as the next crisis – climate change – is already upon us. Africa’s food systems must be made more resilient to future shocks such as floods, droughts, and disease. Urgent and sustainable increases in food production are needed to reduce reliance on food imports and reduce poverty, and this is where digital services come into play.
EU-Africa Partnership: Let African Farmers trade rather than being dependent on aid (EURACTIV)
As the European Union and the African Union prepare to agree on their new joint partnership areas, leaders on both sides of the continent need to ensure that the agri-food standards work in the interest not only of Europeans but also of Africans. The danger otherwise will be the perception is that the EU is imposing its own interest on Africa moving away from a science-led approach to the detriment of Africans. The EU-African partnership needs to deliver a genuine partnership with policy objectives, standards and rules that are in the interest of both continents.
Consumers are delaying car purchases owing to Covid-19 – Deloitte report (Engineering News)
Deloitte’s 2021 Global Automotive Consumer Study has found that the Covid-19 pandemic has had a major impact on consumer behaviour in the automotive industry. The study surveyed more than 24 000 consumers in 23 countries, including South Africa.
Labor market policies: ECA focuses on accelerating job creation in North Africa (UNECA)
“Active labor market policies: Good practices and recommendations for North Africa” will be at the heart of discussions at the upcoming ECA Office in North Africa webinar on Wednesday 7 April. The meeting will provide representatives of the North African ministries of employment, private sector as well as eminent experts and researchers with an opportunity to discuss how to design and implement labor market policies so as to increase their impact, and share their successful experiences in this field. Unemployment, and especially youth and female unemployment, has become a major challenge for North African countries (Algeria, Egypt, Libya, Mauritania, Morocco, Sudan and Tunisia).
Africa is creating jobs – but the narrative is complicated (Brookings)
Africa has a young labor force with high youth unemployment, and Despite high growth, Africa has not been creating jobs for these youth. Often these trends are explained by a lack of structural transformation (a shift in the share of labor from low to high productivity sectors). New research shows that these statements do not hold for much of the subcontinent. While there are exceptions – most notably South Africa and several resource-rich or fragile states – the economic growth registered since 2000 was accompanied by a steady growth in wage jobs, at a rate significantly faster than the growth of the labor force. Meanwhile, youth unemployment has been below world averages, controlling for income level. Unfortunately, this progress was interrupted by the COVID-19 health and economic crises, but it demonstrates the importance for job creation in African countries of getting back onto the path of economic stability and balanced economic growth as well as maintaining this trajectory through this decade.
Africa’s model of production enterprise is a source of reproach (Daily Monitor)
In 2014, Africa exported coffee valued at $6billion. After the coffee was roasted, blended, packaged and branded, the final products sold abroad yielded $100billion. This was revealed recently by a former South African Minister of Trade and Industry. This might evoke pain, until the story of the continent’s cocoa comes to the fore. The continent produces 75 percent of the world’s cocoa and gets only 2 percent of the $100billion cocoa industry. The reason for Africa’s dismal share of the proceeds of the cocoa industry would not differ from the coffee story. We produce cocoa and sell it raw, at “give-away” prices. It is then processed, and its value multiplied several times over.
This year, China has maintained its position as the world’s largest manufacturing country for the eleventh consecutive year with industrial added value reaching 31.3 trillion Yuan ($4.84 trillion), according to their Ministry of Industry and Information Technology. China’s manufacturing industry makes up nearly 30 percent of the global manufacturing industry.
The relationship between Africa’s supply of mineral materials and China’s manufacturing capacity may not require deep scrutiny. It is not only China that utilizes Africa’s mineral wealth, but the example fairly illustrates the connection between African supplied raw materials and the vibrancy of foreign industry.Africa remains potentially able to continue doing the above – supplying primary agricultural produce and availing minerals to those who use them in manufacturing.
JLMP poised to expand support to labour migration governance in Africa | African Union
The AU-ILO-IOM-ECA Joint Programme on Labour Migration Governance for Development and Integration in Africa (JLMP) on March 30 convened its fourth Programme Steering Committee (PSC) meeting that was hosted by the African Union Commission’s Department of Health, Humanitarian Affairs & Social Development (HHS). The online meeting reviewed the status of ongoing projects, with Commissioner of Social Affairs, H.E. Amira El-fadil, in opening remarks read on her behalf, saying, “We have seen partners constantly making sacrifices for the long-term JLMP vision and we are beginning to see the fruit of these.” It was observed that despite COVID-19 causing restrictions on travel and the scaling down of activities, partners continued to work flat out to ensure projects remain on course. The workplan for 2021 was re-evaluated, with several delegates emphasising the importance of building synergies in labour migration initiatives on the continent.
Global economy news
International trade decline not as significant as expected – DP World (Engineering News)
Contrary to an expected dramatic decrease in international trade, flows have increased, with 38% of Middle Eastern companies and 32% of African companies managing to expand international sales, a global study of private sector perspectives shows. Commissioned by end-to-end supply chain and logistics company DP World and conducted by the intelligence unit of media company The Economist, the study reveals that supply chain reconfiguration has been a priority for many businesses as they work to overcome the adverse impacts of the Covid-19 pandemic.
Global Financial Stability Report, April 2021: Preempting a Legacy of Vulnerabilities (IMF)
Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. Chapter 1 warns that there is a pressing need to act to avoid a legacy of vulnerabilities while avoiding a broad tightening of financial conditions. Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. Chapter 3 turns to the impact of the COVID-19 crisis on the commercial real estate sector.
This report is focused on the preliminary estimates of external debt stocks at end-2020 for 120 low, and middle-income countries, and information on low- and middle-income countries’ bond issuance in international capital markets in 2020. It also provides an update on the Debt Service Suspension Initiative (DSSI) as well as an overview of a new initiative aimed at creating a comprehensive dataset of domestic debt obligations of low, and middle, income countries.
The Fintech Times Releases New Report highlighting the Fintech Ecosystem in the Middle East and Africa (TechCabal)
The Fintech Times has announced the release of a new report analysing the fintech ecosystem in the Middle East and Africa (MEA). The report, entitled “Fintech: The Middle East and Africa 2021”, aims to give a comprehensive overview of the fintech landscape in the region from an economic development context.
Richie Santosdiaz, Head of MEA at The Fintech Times and main author of the report, said: “The fintech landscape in the MEA region, minus a few pockets, as a whole is generally much more infant in its maturity of fintech. Nevertheless, by contextualizing all the changes the region has undergone, particularly from economic development and diversification lense, one can see the sudden growth and importance fintech plays in MEA. COVID-19 has further accelerated wider digital transformation and this plays true as well in the region.
“The report confirms, consolidates and offers insights to what many perceived in the MEA region. Given much information about MEA is either mostly fragmented, geographically split, or very high-level, my aim of the report was to be a comprehensive guide for both those who might know little about MEA let alone fintech in the region, as well as those who might be more in tune with its developments but might not see it from either an economic development light nor have validation of facts that until now remains generally limited.
The perspective of least developed countries: Limitations and challenges towards achieving universal access to clean cooking fuels and technologies (Observer Research Foundation)
Only 14 percent of the population has access to clean cooking fuels and technologies in Least Developed Countries (LDC). One amongst the few indicators to measure Sustainable Development Goals (SDG) 7, i.e. to ensure affordable, reliable, sustainable, and modern energy to all by 2030, is proportion of population with primary reliance on clean fuels and technologies. The article looks at the challenges associated with achieving universal access to clean cooking fuels and technologies from the perspective of LDCs.
UN can help us build back better (Gulf Times)
One year after the Covid-19 pandemic took hold, many of us are still grappling with the ‘new normal’. No-one has been spared from the impact of this crisis. Some 2.7 million people have succumbed to the effects of the Covid-19 virus, which has had a severe impact on families and communities. The global economy shrank by 4.4% as an estimated 255 million jobs were lost in 2020, pushing people back into poverty. Right now, 34 million people are on the brink of starvation, and 235 million people will require humanitarian assistance and protection in 2021 – an increase of 40% from last year.
Pandemic highlights the need to bridge the digital divide, experts say (The National)
The Covid-19 pandemic has further highlighted the need to bridge the digital divide, as 3.7 billion people now live without basic internet connectivity, experts say. The health crisis has exposed the structural weaknesses in the global digital inclusion agenda, bringing to the fore increasing inequalities between and within the countries, according to experts at an online panel discussion at the World Economic Forum’s Global Technology Governance Summit.
“Nearly 47 per cent of the world population is still excluded from connectivity and this exclusion accelerated during the crisis … Covid-19 is not likely the last crisis and more could come… this is a new normal that relies heavily on technology.” “The digital divide is a global challenge that we must take seriously… as seriously as we take the challenge that digitalisation poses to our competitiveness from an economic point of view,” Mr Iswaran said.
Here’s how to propel a green recovery for the poorest (Eco Business)
The International Monetary Fund (IMF) announced at the recent Climate Adaptation Summit its intention to place climate change at the heart of its work – recognising the natural world and the economy are no longer at odds. With the growing climate stress and depletion of ecosystems, it is imperative that the renewed efforts are launched to propel a green recovery from the pandemic, preserving nature for future generations and giving it much needed economic value. As climate scenarios are integrated within economic frameworks climate-vulnerabilities will be more evident across the globe and strain the medium-term economic scenarios. “These $650 billion SDRs for green recovery would represent 65 times the size of the current Green Climate Fund (GCF) and if judiciously distributed could finance the much-needed climate adaptation and mitigations needs of low-income countries. Climate shocks could chop off up to 5 per cent of gross domestic product (GDP) per year by 2030 in some vulnerable countries. This also means debt distress will limit the fiscal space to support an inclusive and effective green recovery post-Covid. What could help?
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National trade and trade-related news
South Africa: Small businesses want more help from dept, Sefa amid COVID storm (Eyewitness News)
The COVID-19 SMME Debt Relief Fund is regarded as a double-edged sword by its beneficiaries. This was revealed during a Parliamentary oversight meeting by the Portfolio Committee on Small Business Development in March 2021. While beneficiaries lauded the fund for helping with some financial strain brought on by the lockdown, they want the Department of Small Business Development and the Small Enterprise Finance Agency (Sefa) to either give repayment breaks or scrap them altogether.
While beneficiaries lauded the fund for helping with some financial strain brought on by the lockdown, they want the Department of Small Business Development and the Small Enterprise Finance Agency (Sefa) to either give repayment breaks or scrap them altogether. Lapologa requested that the Sefa award a three to six-month repayment holiday to beneficiaries.
Domestic resource mobilisation key for Zimbabwe – AfDB (The Herald)
Boosting domestic resource mobilisation is critical for Zimbabwe’s economy going forward as external financing for the country is likely to remain clogged, the African Development Bank (AfDB) has said. Official data shows that the country’s total public debt stands at US$11,1 billion, approximately 53,9 percent of gross domestic product (GDP). And of that total, 95,6 percent is external, which includes $6,4 billion in arrears to international financial institutions, bilateral, and private creditors. “Zimbabwe has been in default since 2000. A Staff Monitored Programme with the International Monetary Fund to help Zimbabwe implement economic policies from May 2019 to March 2020 ended in September 2019.
“The international financial institutions will not resume lending until debt arrears are cleared,” said the AfDB in its Africa Economic Outlook (2021).
Strategy to add value to Zim leather sector chain (The Herald)
The Zimbabwe Leather Sector Strategy (2021-2030) would be officially launched this Friday in Bulawayo with Vice President, Dr Constantine Chiwenga, billed to lead the proceedings. The leather sector is seen as a low-hanging fruit given the country’s competitive advantage in livestock and crop production, which are key sources of raw materials. The Government has earmarked the leather industry for structural transformation along the value chain perspective. The Government approved the new Zimbabwe Leather Sector Strategy last November as part of measures to position the sector for increased domestic value addition and beneficiation so as to promote export-led industrialisation.
Zimra rakes in US$1,3m from cargo tracking (The Herald)
The Zimbabwe Revenue Authority (Zimra) said yesterday it raked in over US$1,3 million last year in cargo sealing fees and associated violation fines. Through its Electronic Cargo Tracking System (ECTS), the tax agency seals and tracks cargo entering and leaving the country in a bid to enforce controls on the importation of restricted or controlled goods. The system is also designed to curb transit fraud and avoid goods being dumped in the country. “Electronic seals are affixed to cargo containers, box trucks, soft sided trucks (flat decks with side curtains), tankers, and break bulk (goods under tarpaulin) the electronic seals send regular signals to the control room to show the location of the cargo,” Zimra said. “The electronic seal connects to the internet and the control room is manned 24 hours a day and relays information of violations to the reaction teams.”
Car import restrictions hailed (The Herald)
THE Government’s decision to restrict the importation of vehicles more than 10 years old has the potential to see the accrual of huge economic benefits, players in the motor industry have said. The Government, last week gazetted regulations that gave legal effect to the Government’s decision to restrict vehicles older than 10 years as a means to revive the once vibrant local car industry. Such a ban on used cars is not unique to Zimbabwe as several other jurisdictions restrict such imports.
Mystery over US disclosure of Sh139bn Kenya loan deal deepens (Business Daily)
A US-listed firm at the centre of a disputed Sh139.5 billion (1.06 billion euros) loan deal with Kenya has made fresh disclosures to the American stocks regulator that the Treasury has dismissed as fake and containing forged signatures. Kallo Inc reckons in the new disclosures to the Securities Exchange Commission (SEC) that Kenya has frozen the contract for building mobile clinics and upgrading hospitals in the wake of the coronavirus crisis. The filings with SEC were done on March 25, just two days after the powerful SEC suspended the Canadian firm from trading in the United States for failing to shed light on its earlier disclosure of the Kenya loan agreement.
Biden team set to review Kenya, Trump trade talks (The East African)
The Biden administration will review bilateral trade negotiations and targets that ex-President Donald Trump regime made with Kenya last year over a potential free trading deal. The new US administration wants to make sure that the negotiations for a bilateral trade agreement and talks objectives are consistent with Biden’s $4 trillion revamp of the American economy that focuses on a muscular industrial policy with an eye on fighting climate change. This means that the start of the trade talks could be delayed and the objectives of the bilateral pact recast to recognise Biden’s agenda with some of the aims of the negotiations set by the Trump administration likely to be dropped.
‘Discriminatory’: Kenya hits back after UK travel ban (Africanews)
Kenya hit out at the United Kingdom after London added the east African country to its coronavirus travel ‘red list’. In a strongly-worded statement on Saturday, Kenya’s foreign affairs ministry said the decision was ‘discriminatory’ and lacked ‘logic and scientific knowledge of the disease or the spread of the pandemic’. On Friday, the UK announced new travel restrictions against travelers from Kenya saying it had established the South African coronavirus variant was fast spreading locally in the country. The decision means that Kenyans or anybody transiting through Kenyan airports is banned from setting foot in the UK starting on April 9. On Sunday, Nairobi responded with its own measures, banning passenger flights originating or transiting through UK airports for a month. In addition, passengers from the UK will be required to produce negative Covid-19 certificates and valid Covid-19 vaccine certifications.
Only cargo flights are exempt from the ban. But crew members will be required to present both a vaccination certificate and a negative PCR certificate. The measures take effect on April 9.
Kebs develops fresh trade rules for miraa sector to boost market (Business Daily)
The Kenya Bureau of Standards (Kebs) is developing a code of practice for the miraa sector, in what stakeholders say offers a ray of hope for the stimulant that is banned in some countries. The standards, according to industry players, will go a long way in seeking markets for the crop. According to the draft regulations seen by the Business Daily, the standards of procedures of practice include ensuring hygiene is observed in the entire chain from harvesting to packaging as well as loading into vehicles and aircraft. The Kebs says the Kenya Code of Practice for the Miraa (Khat) Industry has been developed by the national workshop on miraa under the guidance of the Standards Projects Committee. “This code stipulates the hygienic and safety requirements during the production, handling and marketing of miraa. The standard also considers the safety provisions for consumers and workers in the industry,” the agency says in the preliminary draft,
Biden Administration Dampens Kenya’s Hopes for Bilateral Trade Deal (The Maritime Executive)
The Biden administration’s plans to review foreign trade policy and refocus it on America’s economic recovery have thrown long-running free trade negotiations with Kenya into disarray. In a development that casts doubts on the future of a bilateral free trade agreement (FTA) with Kenya, United States Trade Representative Katherine Tai has informed Kenyan Minister of Industrialization, Trade and Enterprise Development Betty Maina of the U.S. government’s plans to review trade negotiations started by the Trump administration in order to align them with President Biden’s goals. “Ambassador Tai highlighted her ongoing review of the negotiations to ensure that any agreement aligns with the Biden-Harris administration’s Build Back Better agenda,” said Tai’s office in a statement following a virtual meeting with Maina. “The Biden administration will prioritize trade policies that have tangible benefits for all working Americans, families and communities.”
Go for best US trade deal (Business Daily)
Fresh negotiations for a bilateral trade agreement with the US give Kenya another opportunity to ensure the best outcome for its citizens. Kenya wants a deal before the expiry of the Africa Growth and Opportunity Act (Agoa), which allows sub-Saharan African countries to export thousands of products to the US without tariffs or quotas until 2025. Nairobi’s negotiators should take into account concerns raised by Kenyan firms and civil society about the recently concluded Kenya-UK trade deal. They should tread carefully especially on tariffs and quotas since these will greatly shape the future of trade with the US after 2025. Proposals by the US Chamber of Commerce such as elimination of Washington’s tariffs on imports of steel and aluminum from Kenya in exchange for expanded access to Kenyan market should be carefully weighed. The negotiators must also be alert to what an expanded access of US to local market would mean for the competitiveness of local firms.
AfCFTA: Concern over dumping mounts as trade deficit widens (Vanguard)
The fears that Nigeria might become a dumping ground for manufactured goods, especially with the advent of the African Continental Free Trade Area (AfCFTA), has heightened as Nigeria’s Trade in Goods Statistics show rising deficit in manufactured goods trade. Analysis of the Foreign Trade in Goods Statistics of the National Bureau of Statistics (NBS) from the fourth quarter of 2019 (Q4 2019) to Q4 2020 revealed a steady increase in the value of imported manufactured goods compared to exports in consecutive quarters. Stakeholders in the manufacturing sector are apprehensive that without strict enforcement of rules of origin when the AfCFTA becomes fully operational, Nigeria may end up a dumping ground for foreign manufactured goods.
ANALYSIS: Despite govt’s repeated promises, importation of dirty fuels continues in Nigeria (Premium Times)
In June 2016, members of the Economic Community of West African States convened for a two-day workshop in Abuja. The sole aim was to chart ways to transit into using low sulphur fuels in their respective countries. At the end of the event, Nigeria, Benin, Togo, Ghana and Côte D’Ivoire agreed to ban the importation of Europe’s dirty fuels, thus limiting sulphur in fuels from 3000ppm to 50ppm. The United Nations Environment Programme (UNEP) said the move would help to drastically reduce vehicle emissions and help over 250 million people to breathe safer and cleaner air. By the end of that year, Nigeria again hosted a sub-regional high-level ministerial meeting on low sulphur fuels, which was held in Abuja and hosted by former minister of environment, Amina Mohammed.
‘MSMEs Clusters to Boost Competitiveness, Export Drive’ (THISDAY)
The Director-General/Chief Executive, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Dr. Dikko Umaru Radda, has assured that its furniture cluster park, currently under construction at the Industrial Development Centre (IDC), Idu, Abuja, will on completion in 2021, enhance the competitiveness of micro, small and medium scale enterprises (MSMEs) in the country and boost efforts to diversify the economy. He pointed out that by design, clusters provide economies of scale by having shared infrastructure and common facility for small businesses, adding that this will have spill off effects on other enterprises.
Maximising FG’s Delineation of Free Trade Zones at Airports (THISDAYLIVE)
Recently the federal government announced the designation of five international airports as free trade zones to support the implementation of both the African Continental Free Trade Area (AfCFTA) and Single African Air Transport Market (SAATM) agreements. These airports include the Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano International Airport (MAKIA), Kano; Port Harcourt International (PHIA), Omagwa, and Akanu Ibiam International Airport, Enugu. The Minister of Aviation, Senator Hadi Sirika said that the facilities at these airports would be upgraded to meet international standards so that they would compete effectively with the best facilities in Africa.
AfCFTA: Ghana to be a subsidiary hub for multinationals- Oxford Professor (Myjoyonline.com)
Ghana by virtue of its geographical location has been placed among the biggest beneficiaries of the African Continental Free Trade Agreement (AfCFTA), a former Oxford University professor, Noel Tagoe has said. He is therefore urging the Ghanaian banking industry to team up with its counterparts on the African continent so as to fully benefit from the AfCFTA. Ghana, he projects, will become a subsidiary hub for many multinationals. But for that to be possible, he wants transportation infrastructure to be made a priority to facilitate trading activities. “You cannot import and export without transportation infrastructure. So for those of us who are at the coast, we need very good ports to be able to handle big projects; ensuring that ports work very well is important. Therefore those who are inland [landlocked countries] need other means of carrying freight such as rail, road or air infrastructure -those are pretty costly – there should be an air agreement over Africa,” he said.
Ghana takes the shine as AAAM hosts Vehicle Component Suppliers (Vanguard)
AS Nigeria continues to toy with its auto policy, Ghana, another West African country, is demonstrating a willingness to successfully pursue its automotive development plan. The African Association of Automotive Manufacturers, AAAM, hosted an exploratory visit by automotive component manufacturers to Ghana in the first week of March. The objective was to introduce potential investors to the Ghanaian automotive market. The initial visit was focused on aftermarket opportunities, which in time will also support original equipment assembly as the volumes grow, as currently almost all components are imported.
Focus on TPA Prosperity: Tanga port to make Tanzania major fuel trading hub (Dailynews)
TANZANIA is on course to double its handling capacity of petroleum products and begin supplying of the product to Zanzibar and neighbouring countries when expansion work at Tanga port is completed. Tanzania Ports Authority (TPA) which is handling the port is undertaking a number of projects in the country’s ports, as part of its efforts to improve service delivery and increase government revenues. TPA Director General, Deusdedith Kakoko (suspended) told former Vice-President Samia Suluhu Hassan, in Tanga recently that Tanzania is supplying six million tonnes of fuel and that the ongoing strategies will double the capacity as a result of winning the market in Zambia, Malawi and the Democratic Republic of Congo.
Uganda’s debt spills over amid shrinking revenue, rising expenditure (Daily Monitor)
The government last week secured a $130m (Shs472b) loan syndicated by local commercial banks as its initial financial commitment to the proposed East African Crude Oil Pipeline (EACOP) to run from Hoima in mid-western Uganda to the Tanzanian Indian Ocean port of Tanga. Of the $130m, $70m (Shs254b) is the first instalment of the $233.5m (Shs848b) and $60m (Shs220b) was to offset historical costs; expenses met previously by French Total E&P in pre-project construction activities. Uganda’s equity stake in the pipeline is 15 per cent, equivalent to $233m.
Cote d’ivoire farmers need steady rains to bolster cocoa mid-crop (CGTN Africa)
The West African nation, the world’s top cocoa producer, is entering its rainy season, which runs from April to mid-November. Overcast skies are becoming more common across the country, and farmers are expecting heavier rains to follow suit. “If the rains are abundant and regular this month and next month, the quality of the beans will be better compared to last season,” said Salame Kone, who farms near Soubre, the heart of Ivory Coast’s cocoa belt.
African regional and continental news
Ratification delays could stall AfCFTA, TFTA implementation Chronicle)
THE Council of Ministers of the Southern African Development Community (Sadc) has urged member states that have not yet signed and ratified the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa-East African Community-Sadc (Comesa-EAC-Sadc) Tripartite Free Trade Area (TFTA) to do so to allow for the implementation of the agreements. The call follows a recent virtual SADC Council meeting, which was chaired by Mozambican Foreign Affairs and Cooperation Minister, Verónica Nataniel Macamo Dlhovo, in her capacity as the chairperson of the council. While noting progress on the signature of the Comesa-EAC-Sadc TFTA, the regional leaders stressed that its signing and ratification was critical as it will pave the way for the successful implementation of the AfCFTA.
Regional ministers have since called for urgent action by member states towards finalisation of negotiations on rules of origin on some sensitive tariff lines and agreement on some customs documentations, and accession to AfCFTA by Sadc member states, including those participating in the customs unions.
Obinne: Africa must deploy robust fraud management system for trading under AfCTFA (Modern Ghana)
Emmanuel Obinne, West Africa Head of Growth and Partnerships at BPC Banking Technologies is advocating for a robust payment system for trade under the African Continental Free Trade Area. This according to him is crucial in averting any attempt by fraudsters to take advantage of loopholes in the various payment systems. He was speaking in an interview on the new approach by fraudsters in the wake of the COVID 19 pandemic. “I am actually excited about the Free Trade Area being set up and here we are talking about multi-country trading and this will lead to an increase in the volume of digital payments obviously,” he said. Obinne added, “Now because nations are involved in these transactions, I believe that the setting up of business-to-business market places run by the governments among these countries whereby those who are trading under the platforms are brought under one eco systems are averted just as Alibaba, … so you can protect the buyer and seller.”
Africa’s Trade Revolution Needs Peace by Hippolyte Fofack (Project Syndicate)
The African Continental Free Trade Area (AfCFTA), which came into effect in January, could be a game changer in helping to lift the continent out of poverty and onto the path of long-term prosperity. The AfCFTA has the potential to accelerate and alter the composition of foreign direct investment in Africa, thereby diversifying the continent’s sources of growth and boosting its internal and external trade. And merging Africa’s relatively small markets into one of the world’s largest will enable investors to capitalize on greater economies of scale. But Africa risks squandering this huge opportunity unless its leaders can address the continent’s unwelcome reputation as one of the world’s most conflict-prone regions. According to the World Bank, nine African countries currently suffer from high institutional and social fragility; 12 are engaged in medium or high-intensity conflicts. Unsurprisingly, the number of conflict-related deaths in the region has surged from 2,200 in 2010 to an average of 14,000 per year since 2014. Transnational terrorist networks have recently intensified the problem.
The negative impact of wars on trade can be long-lasting. Globally, violent conflict is estimated to cause a 26% reduction in exports in the year that hostilities begin, rising to 35% five years later and 58% after a decade. Across Africa, where the median duration of conflict is about four years, the negative spillovers of wars on trade could persist in the medium and long term.
High-intensity conflicts also hinder trade and economic integration indirectly by triggering a sharp rise in military expenditures. African military spending grew by 17% over the last decade, to $41.2 billion in 2019, according to the Stockholm International Peace Research Institute.
This report details how African Union and Africa Centres for Disease Control and Prevention (Africa CDC) has collaborated with the UNDP to help curb the spread of COVID-19, support African home- grown solutions and make way for socioeconomic recovery that can lead to a path towards attaining Agenda 2063 and the Sustainable Development Goals (SDGs).
Uganda joins neighbours in seeking $750m in new loans (The East African)
East African governments are seeking to borrow more than $750 million in syndicated loans to counter the adverse economic impact of the Covid-19 pandemic. Kenya, Uganda, South Sudan, and Tanzania have all been in the market in the past two months seeking either syndicated loans or special drawing rights from the International Monetary Fund (IMF), as they seek to stabilise economies experiencing pandemic-induced shocks. Last week, Uganda became the latest African sovereign to seek a syndicated loan, following in the footsteps of Tanzania. The EastAfrican understands that Kampala launched a $200 million seven-year syndicated facility into the market, led by French lender Société Générale and the Eastern and Southern African Trade and Development Bank (TDB).
Apply higher tariffs on non-EAC goods to grow industries (Business Daily)
The establishment of an effective Common External Tariff in the East Africa region will lead to the exponential growth of the manufacturing sector. A Common External Tariff (CET) is an import tariff or rate adopted and applied by countries within a common market. This tariff is ideally imposed on imports from non-member countries, with the intention of promoting industrialisation in the common region, enhancing the economic development of member States and liberalising regional trade. The EAC is reviewing its CET that, if adopted, will steer manufacturing as we grapple with Covid-19.
EAC women need help on cross-border trade revamp (Dailynews)
WOMEN within the East African Community (EAC) are in need of facilitation support in cross-border trade after suffering huge loss due to lockdown and travel restrictions imposed by some regional member states. Following the outbreak of Covid-19 pandemic, some countries have restricted movements within and outside their territories, compelling women entrepreneurs to use informal routes. The Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) Executive Director Ms Sheila Mishambi noted that the impact of Covid- 19 on cross-border women traders across East Africa had been immense, forcing closure of at least 64.2 per cent of women-owned businesses. A report on the study carried out since the outbreak of the pandemic in the six member states indicates that around 21.2 per cent of the sampled women reported using informal routes to circumvent the existing Covid-19 measures in EAC partner states, with several narrations of tragic consequences. The report released by the TradeMark East Africa (TMEA), the study provides lessons and suggestions to EAC governments, donors, private sector and other stakeholders for future strategies to navigate the impacts of the coronavirus, from women surveyed and interviewed.
IOM rescues cross-border traders (The Herald)
The International Organisation for Migration (IOM) has started rolling out support programmes to mitigate the effects of Covid-19 pandemic on informal cross-border traders in the Sadc region. In a statement, the organisation’s Zambian office said the support initiative will include holding a series of visits, training sessions and goods distribution activities at key border posts. Most of the ports of entry, IOM said, were part of supporting informal cross-border traders in Southern Africa to do business safely during the Covid-19 project. “Informal cross-border trade which accounts for up to 40 percent of total intra-SADC trade, with an estimated value of US$17,6 billion has been adversely affected by the pandemic because of border closures and travel restrictions throughout the region,” said IOM. “These measures have had a negative impact on the livelihoods of informal cross border traders as they are unable to conduct their trade normally.”
India, Mauritius FTA to come into effect from Apr 1 (Business Standard)
Several Indian products will enjoy the benefit of greater market access at concessional duties in Mauritius as the free trade agreement signed between the two countries will come into effect from April 1, the commerce ministry said on Wednesday. India and Mauritius signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), a kind of free trade pact, on February 22. “Both sides have completed their internal legal procedures and the India-Mauritius CECPA will enter into force on Thursday, 01 April 2021,” the ministry said. The pact covers 310 export items for India, including food and beverages, agricultural products, textile and textile articles, base metals, electricals and electronic item, plastics and chemicals, and wood.
Key benefits of doing businesses in African markets highlighted (Gulf Today)
The Dubai Chamber of Commerce and Industry’s representative offices in Africa recently organised a webinar in cooperation with Oxford Business Group and the Pan African Chamber of Commerce and Industry, which covered some of the key benefits of doing business in Africa. The virtual event, attended by 163 participants from the UAE and Africa, aimed to familiarise UAE companies with the competitive advantages offered by several promising African markets, the evolving business climate on the continent, as well as new investment opportunities and existing challenges to foreign investors.
Addressing participants, Omar Khan, Director of International Offices at Dubai Chamber, highlighted the importance of Africa as a preferred market for Dubai, and pointed out that many UAE-based companies have established their presence on the continent.
Nine business ideas to pursue in Africa: Poultry, cannabis, vocational training and more (How We Made it in Africa)
There is an opportunity to provide locally-produced packaging materials for Ethiopia’s horticulture industry. Here are nine business opportunities on our radar, as highlighted by top African entrepreneurs and investors.
1. Tapping into demand for poultry in Angola and Mozambique
2. Vocational training in Côte d’Ivoire.
3. Production of cannabis products in South Africa.
4. Co-living spaces for young professionals in Lagos and beyond.
5. Export of niche fast-moving consumer goods (FMCG) from West Africa to the United States.
6. Production of essential oils in East Africa
7. Alternative protein from insects
8. Packaging materials for Ethiopia’s horticulture industry
9. Private care facilities for the elderly in Ghana
Foreign Aid And Corruption – Age-Old Problems In Africa (Front Page Africa)
African countries have been receiving FORIEGN AID since independence for the past 60 years, and Africa is yet to be developed or self-reliant. Since 1970, the world has spent over five trillion dollars in aid. Much of that money has come to Africa. Helping Africa is a noble cause, but the campaign has become a theater of rampage corruption, and abuse of power. The Marshall Plan was an American initiative passed in 1948 for foreign aid to Western Europe. The goals of the United States were to rebuild war-torn regions, remove trade barriers, modernize industry, improve European prosperity. However, it hasn’t been the case in Africa. Foreign Aid has contributed to corruption in Africa through the large amounts of money that are sent over, and exploitation of resources. The money that floods into Africa come not only from individual government-to-government aid programs, but also international partners such as the World Bank, WTO, and the IMF, which act as intermediate between the donor governments and receiving governments.
A vibrant, robust, and mutually beneficial relationship between the United States and Africa underpins the Biden-Harris Administration’s Build Back Better objectives of facilitating an inclusive economic recovery, sustaining, and creating jobs for U.S. workers, eradicating COVID-19, and combatting climate change. Furthermore, active re-engagement with African countries and international organizations committed to Africa’s prosperity and development will buttress the United States’ commitment to restore alliances and leadership multilaterally. The Corporate Council on Africa (CCA) welcomes the Biden-Harris Administration’s appeal to African Leaders to rebuild relationships premised on equal partnership and mutual trust, respect, and prosperity. We commend President Biden for making his commitment to reengage the African Union early in his Presidency. The President’s remarks before the 34th Meeting of the African Union are a welcome tonal and policy shift for U.S.-Africa relations. CCA supports the Administration’s early signs of pursuing an active Africa strategy that matches the continent’s strategic importance for the U.S. in achieving its global economic and security objectives.
Japanese firms rank Kenya top investment spot (Business Daily)
Kenya is the most attractive destination for Japanese firms seeking to make new investments in Africa, a survey has shown, beating the continent’s larger economies like South Africa and Nigeria. The survey, carried out by Japan External Trade Organisation (Jetro) on Japanese-affiliated companies in Africa, found that over a third (35.1 percent) of polled companies cited Kenya as their preferred future investment destination in Africa. The East Asian country affiliated firms cited Kenya’s position as the economic hub of East Africa, with many emerging start-up companies offering big potential for collaboration.
Global economy news
Women in power — the World Trade Organization’s Ngozi Okonjo-Iweala (GZERO Media)
Starting a new job is always daunting. For Ngozi Okonjo-Iweala, who just weeks ago started a new stint as director general at the World Trade Organization, the timing could not be more trying: she is taking over the world’s largest global trade body amid once-in-a-generation public health and economic crises that have emboldened protectionist inclinations around the world. Who is Ngozi Okonjo-Iweala, and how has her worldview shaped her politics and policymaking?
France contributes approximately EUR 6 million to help developing countries deepen trade expertise (WTO)
DG Okonjo-Iweala said: “The technical assistance activities which France is supporting will provide developing countries and LDCs with essential skills and knowledge so that they may more effectively participate in multilateral trade, including trade negotiations, and achieve meaningful outcomes for the people they serve. I welcome France’s continued generosity.”
France’s Minister of the Economy, Finance and Recovery, Bruno Le Maire, said: “France is convinced that the WTO has a major role to play in the wake of the economic crisis. We need to move forward on a number of reforms so that the WTO can play its role again in easing trade tensions and settling disputes, so that every country can reap the benefits that international trade offers, including developing countries. Our discussions with the Director-General focused on transforming and improving the WTO’s Appellate Body, on clarifying and respecting multilateral trade rules, and on strengthening the WTO’s role in the fight against global warming. Trade must serve sustainable development. France is committed to limiting the impact of global warming on a global scale, and to supporting developing countries in this effort, through the strengthening of their industrial and commercial capacities.”
The big issues at play in the IMF and World Bank spring meetings (Atlantic Council)
This week’s spring 2021 meetings of the International Monetary Fund (IMF) and World Bank are taking place as the global economy recovers strongly but unevenly from the COVID-19 crisis, posing difficult questions about how to deal with the impacts of the pandemic and implement support measures.
Key issues for discussion include determining how to steer fiscal and monetary policies in the period ahead so as not to prematurely withdraw support for the recovery while not validating rising inflation expectations; finalizing arrangements for a general Special Drawing Rights (SDRs) allocation and commitments to channel surplus SDRs from high-income countries to low-income ones; making more progress in the Group of Twenty (G20)-sponsored Debt Service Suspension Initiative (DSSI) and Common Framework (CF) for Debt Treatments beyond the DSSI to assist highly indebted low-income countries; and addressing potential financial-stability risks posed by money-market and hedge funds.
IMF, World Bank Must Support Developing Countries’ Recovery (Inter Press Service)
The COVID-19 pandemic continues to take an unprecedented human and economic toll, wiping away years of modest and uneven progress towards the Sustainable Development Goals (SDGs). Developing countries now need much more support as progress towards the SDGs was ‘not on track’ even before the pandemic.
By end-2022, average incomes are expected to be 18% below pre-crisis levels in low-income countries (LICs) and 22% less in emerging and developing countries excluding China – compared to 13% lower for developed economies. These lower incomes will push hundreds of millions into extreme poverty and hunger, surviving on incomes under US$1.90/day. The World Bank estimates the poor increased by 119–124 million in 2020, and by 143–163 million more this year.
Failure to vaccinate globally could cost up to $2,000 per person this year in rich nations (Oxfam International)
Rich countries must open the way to cheaper mass-produced COVID-19 vaccines in order to protect every person in the world and avert a $9 trillion “worst case” global economic catastrophe, said Oxfam today. They should also agree this week to inject $650 billion more into the global economy to help developing countries cope with the pandemic’s already devasting effects.
The two issues – one around tackling the chronic global scarcity of vaccines that is now sparking trade disputes between and economic shocks among countries, and the other in agreeing a new allocation of Special Drawing Rights (SDRs) – will feature at the World Bank and International Monetary Fund’s (IMF) Spring Meetings April 5-11.
IMF Cancels Debt Payments For Poorest Countries As Yellen Calls For Boosted Covid Relief (Forbes)
The International Monetary Fund announced Monday it would not ask 28 of the world’s poorest countries to make debt payments through October, extending its relief period as Treasury Secretary Janet Yellen said she’s worried 150 million people could be pushed into extreme poverty because of the Covid-19 pandemic. The payments will be paused to “continue to help free up scarce financial resources for vital emergency health, social and economic support to mitigate the impact of the Covid-19 pandemic,” the Washington, D.C.-based financial organization said.
The Executive Board of the International Monetary Fund (IMF) approved on April 1, 2021 a third tranche of grants for debt service relief for 28 member countries under the Catastrophe Containment and Relief Trust (CCRT). This approval follows two prior tranches approved on April 13, 2020 and October 2, 2020, respectively (see Press Releases 20/165 and 20/304). It enables the disbursement of grants from the CCRT for payment of all eligible debt service falling due to the IMF from its poorest and most vulnerable members from April 14, 2021 to October 15, 2021, estimated at SDR 168 (US$238) million. This tranche of grants for debt service relief will continue to help free up scarce financial resources for vital emergency health, social, and economic support to mitigate the impact of the COVID-19 pandemic. Subject to the availability of sufficient resources in the CCRT, debt service relief could be provided for the remaining period through from October 16, 2021 to April 13, 2022 amounting to a total of about SDR 680 (US$964) million.
G20 set to extend ‘last or final’ debt payment freeze until end of 2021 to aid coronavirus recovery, World Bank chief says (South China Morning Post)
World Bank president David Malpass said on Monday he expects China, the United States and other Group of 20 (G20) major economies to extend a freeze in bilateral debt service payments until the end of 2021 when they meet this week. The G20 Debt Service Suspension Initiative (DSSI) has already helped countries defer some US$5.7 billion in payments until the end of 2020, with another US$7.3 billion in deferred payments expected until June, according to World Bank data. Extending the debt payment freeze until the end of the year would save even more money that countries could use to combat the coronavirus pandemic and support their economies, Malpass told reporters, but gave no specific estimate.
US targets $650b in reserves to help low-income countries in Covid-19 crisis (The East African)
The US Congress is set to approve $650 billion in global reserves or Special Drawing Rights held by the International Monetary Fund. The funds will provide temporary financial relief to low-income countries, especially in Africa, hard hit by the coronavirus pandemic. Africa urgently needs an economic relief package that includes loan restructuring, debt relief and a reallocation of SDRs from rich countries to navigate the challenge of a health and economic crisis. Last week, Rwanda’s President Paul Kagame reaffirmed that a new issuance of SDR would enhance liquidity but called for a system of accountability for how SDRs are used, as well as a method of allocating them according to need rather than quota. “Recovery from the Covid-19 pandemic depends on adequate fiscal space and liquidity. However, there is a sharp dividing line in today’s world. Some countries can finance their own recovery through quantitative easing. The rest must borrow from private or public creditors, much as individuals do. Without corrective action, this divergence will entrench a profoundly unequal global order, in which the poor have no chance of ever catching up with the prosperous,” President Kagame said during a virtual meeting on international debt architecture and liquidity.
COVID-19 pandemic threatens to reverse gains made on Sustainable Development Goal 1 and 2 (Phys.org)
A new study analyzing bean production and food security across 11 countries in sub-Saharan Africa, found COVID-19 pandemic-related restrictions to significantly impact bean production. Border controls and high transport costs have led to drops in production of the key food security crop, threatening to reverse gains made in achieving Sustainable Development Goals 1 and 2, towards no poverty and zero hunger, respectively.
Climate, COVID-19, and the Developing Country Debt Crisis (NewClimate Institute)
The triple COVID-19, economic, and climate crisis poses a growing challenge to debt sustainability and financing for climate action. There are growing calls to look for solutions for the three crisis together, notably through “debt-for-climate” swaps. Though not a general panacea, such proposals may represent an attractive option for both debtors and creditors. As an input into this ongoing discussion, this working paper proposes several potential broad criteria and proxy indicators as a starting point to identify countries where such debt swaps could be piloted, potentially with lessons learned to be expanded to a growing number of countries.
2021 MENA Economic Update – How Can Institutions Chart a Path to Recovery in the Middle East and North Africa (World Bank)
The estimated accumulated cost of the pandemic, in terms of gross domestic product (GDP) losses by the end of 2021, will amount to $227 billion. The MENA region is expected to recover only partially in 2021, but that recovery is, in part, dependent on an equitable rollout of vaccines.
This edition of the World Bank MENA Economic Update for Spring 2021 estimates that the Middle East and North Africa (MENA) region’s economies contracted by 3.8% in 2020, which is 1.3 percentage points above the World Bank forecasts in October 2020; however, the regional growth estimate is 6.4 percentage points lower than the pre-pandemic growth forecast published in October 2019.
The substantial borrowing that MENA governments incurred to finance health and social protection measures increased government debt. Countries must continue spending on health and income transfers, which will add to already high debt burdens and lead to complicated policy decisions after the pandemic recedes.
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National trade and trade-related news
Trade surplus increases as export growth outpaces imports (News24)
The South African Revenue Services (SARS) on Wednesday issued the latest trade statistics for February 2021. The market consensus was for the surplus to expand from R11.8 billion to R18.8 billion. In a note issued before the data release, Investec economist Kamilla Kaplan highlighted that exports in February usually pick up, compared to the seasonal decline in January. February’s Purchasing Manager’s Index also indicated that global export demand picked up during the month. “Imports will continue to be tempered by weak domestic economic activity,” said Kaplan. According to SARS’ data, exports increased by R18.14 billion or 16.5% between January and February 2021. By comparison, imports increased by R1.6 billion or 1.6%. The trade surplus stands at R41.38 billion for the year to date, which is higher than the R10.28 billion surplus recorded for the same period last year.
Brics might offer agriculture markets SA needs (BusinessLIVE)
Despite a vibrant agricultural sector, there are a standard list of challenges that SA agribusinesses commonly cite — land-reform policy, droughts and infrastructure are among the most frequently cited. However, a growing challenge facing firms — particularly those in beef, wool, fruit and wine — is the need to identify new markets.
The need isn’t surprising given that SA’s agricultural sector is export-orientated, with exports accounting for about half of the production in value terms, about US$10,2bn (about R150bn) in 2020 (up 3% y/y). Ensuring supply and demand is matched is critical for the agriculture sector. On the supply side, the planned expansion in various subsectors in the coming years will result in increased production.
Kenya steps up measures to ensure safety of maize imports (CGTN Africa)
Kenya on Tuesday said it had put in place measures to facilitate safe trade of maize and other related food commodities from across its borders. The east African nation stopped importation of maize from Uganda and Tanzania in early March due to safety concerns. Peter Munya, cabinet secretary of the Ministry of Agriculture, Livestock, Fisheries and Cooperatives said the ministry has increased surveillance on maize imports from the East Africa region in order to address safety concerns.
Yatani seeks extension of public debt relief to 2022 (Business Daily)
The Treasury is seeking for an extension of public debt repayment moratorium from rich countries beyond the June deadline, arguing that poor nations are yet to recover from the Covid-19 pandemic. In January, Kenya secured deals to suspend debt service with the Paris Club of countries and other creditors, including China, covering the six months to the end of June this year. Now, Treasury Cabinet Secretary Ukur Yatani has asked richer nations to extend the relief for another year to ease budget deficits. Under those deals, which fall under the G20’s Debt Service Suspension Initiative (DSSI) to offer poor nations debt relief, Kenya is deferring payments worth $600 million (Sh65.4 billion) due in the period.
The deferred amount, which includes $378 million (Sh41.2 billion) to China alone, will be paid over five years after a grace period of one year.
Suez Canal blockage to have insignificant impact on Mombasa port (The East African)
Kenya has allayed fears of pronounced negative impact on operations at the Port of Mombasa as an aftermath of the Suez Canal crisis, with only exports mainly refrigerated avocados to Europe and America, expected to experience slight delays. The Kenya Ports Authority (KPA) Acting Managing Director Rashid Salim said the blockage by a Japanese ship Ever Given on both sides of the canal was cleared on time and the port management does not foresee much of an impact, given that imports are mainly from Asia. “With cargo from Europe and Americans accounting for less than 35 per cent of imports in Mombasa, we will experience very minimal impact from the Suez Canal blockage in terms of delayed container vessels. The blockade should be able to affect cargo from Europe and the Americas that are normally transshipped from the Gulf ports,” Mr Salim said on Wednesday.
Uganda seeks $130m for pipeline deal (The East African)
To fund its 15 percent share of the East African Crude Oil Pipeline, Uganda is opting to borrow Ush481 billion ($130 million) from the domestic market to financially back its shareholding with equity. The 15 percent is owned through the Uganda National Oil Company and the money is a precondition for the government to solidify its ownership in the project. The loan will also pay for “historical costs,” which international oil companies have been footing since 2017 on behalf of the government, such as the project’s design and environmental impact studies. After failing twice, parliament’s Committee on National Economy will now have the last say on whether the government gets the money in time for the final investment decision, (FID) to tie up its equity in the $3.5 billion pipeline project.
One Year After Lockdown: Trade, Budget Deficits Mar Nigeria’s Economic Outlook (Leadership Newspaper)
One year after COVID-19-induced lockdown, the nation’s economy is yet to fully bounce back to its pre-COVID state, LEADERSHIP learnt. To this end, economists say the harsh economic atmosphere will continue with the country currently witnessing trade and budget deficits. They, hence, advocate creative means through macro-economic instruments that could make life and living easier for Nigerians. The trade deficit, they said, arose from lack of or low Foreign Direct Investment (FDI) into the country and lessened activities in the export market compared to increased import activities. Trade deficit occurs when a country’s imports exceed its exports during a given time period. It is also referred to as a negative balance of trade (BOT).
Encouraging competition in AfCFTA: Govt waives import duties (Graphic Online)
The government has waived import duties on imported equipment, machines and raw materials for local manufacturing companies to enable them to become competitive in the global marketplace.
Since 2017, the government has also reduced some taxes, and in some cases completely removed them, provided some critical infrastructure and simplified some trade procedures to boost local production. The measures are part of a fiscal incentive framework under the Industrial Transformation Programme to empower the private sector to fully harness market opportunities such as the African Continental Free Trade Area (AfCFTA).
The Minister of Trade and Industry, Mr Alan Kyerematen, disclosed this in a keynote address delivered on his behalf at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra Tuesday. The meeting was held on the theme: “Leveraging AfCFTA: The critical success factors”.
Government should use AfCFTA to explore new avenues of domestic resources (Myjoyonline.com)
Government has been urged to use the African Continental Free Trade Area (AfCFTA) to explore new avenues of raising domestic resources to offset the financing gap created by the coronavirus pandemic. Dr Eric Oduro Osae, a Public Financial Management and Local Government EXPERT, said in the short-term, the AfCFTA had the potential of mitigating the effects of Covid-19 pandemic by deepening intra-African trade and accelerating the post-pandemic economic recovery. “Over the long-term, it will play an important role in building greater resilience and insulating the continent against future shocks,” Dr Osae said in his presentation at the maiden UPSA Global Alumni Symposium on the 2021 Budget and Economic Policy Statement of the Government in Accra.
Tanzanian Stakeholders call for slashing charges in agriculture (Dailynews)
Agricultural Non State Actors Forum (ANSAF) has called on the need to slash fees and charges in the agricultural sector that have been impeding its growth and contribution to economic development. A representative from ANSAF, Audax Lukonge said in Dar es Salaam recently that the fees and charges have been hindering efforts to attract new investment in the sector. Mr Lukonge pointed out that to attain this, there is a need to formalise and work on all the plans set and agreed by the Southern Africa Development Community (SADC) member states.
AfCFTA full of opportunities for women entrepreneurs in Morocco and Africa (UNECA)
The Ministry Delegate to the Minister of Foreign Affairs, African Cooperation and Moroccans Residing Abroad, in charge of Moroccans Residing Abroad and the ECA office for North Africa held a joint meeting on Monday under the theme: “African Immigrant Women, entrepreneurs in the World”. The meeting took place under the chairmanship of ECA Executive Secretary Vera Songwe and Minister Delegate to the Minister of Foreign Affairs, African Cooperation and Moroccans Residing Abroad, in charge of Moroccans Residing Abroad H.E. Nezha El Ouafi, with a focus on expatriate, African women entrepreneurs and the support required to ensure their full participation in the economic development of both their native and destination countries.
Employment prospects for Moroccans Diagnosing the barriers to good jobs (World Bank)
A dynamic and inclusive labor market has been an elusive goal for Morocco. Although per capita income doubled between 2000 and 2018, and the poverty rate fell to one-third of its 2000 level, job creation has not kept up over the past decade. Furthermore, the labor market is now facing the shock of the COVID-19 pandemic. A new World Bank report, “Morocco’s Jobs Landscape,” provides a fresh, up-to-date picture of labor market trends and priorities for the future. The study represents the first stage of a partnership with Morocco’s planning agency, HCP (Haut Commissariat au Plan), focusing on diagnosing the country’s employment challenges. This is now being followed by an in-depth analysis and assessment of concrete policy options to address these challenges.
African regional and continental news
Outstanding negotiations on AfCFTA to conclude before end of the year (Myjoyonline.com
Work is going on assiduously to finalize all outstanding negotiations on the Africa Continental Free Trade Agreement before the end of the year. These negotiations which are part of necessary conditions to ensure the success of the programme has been facing challenges from member countries despite commencement of the agreement. Director of Services at the African Continental Free Trade Secretariat, Emily Mboru-Ndoria assured that the outstanding rules which includes protocol on trade in goods and services will be completed this year. ”Differences in interests for various member countries of the African Union has been a major challenge for the finalization of outstanding rules and negotiations for the continental free trade agreement. The development, although under control, can push back the objective of having a common Customs Union as Africa”, she disclosed at the Graphic Stanbic breakfast meeting in Accra under the theme, Leveraging AFCFTA, the critical success factors.
AfCFTA will deepen economic integration among African countries ― Minister (Nigerian Tribune)
The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, on Tuesday, said that the African Continental Free Trade Area Agreement (AfCFTA), would further deepen the economic integration amongst African countries. Adebayo represented by the Director of Trade at the Ministry, Mr Aliu Abubakar, stated this during a meeting with Governor of Ogun State, Prince Dapo Abiodun, as part of the nationwide sensitization and sub-national engagement on the National Action Committee on AfCFTA, at Oke-Mosan, Abeokuta. The Minister said AfCFTA would no doubt provide immense opportunities for Nigerian companies to expand Africa.
Interview: AfCFTA chief underscores “unprecedented” opportunity for Africa-China collaboration (Xinhua)
Africa and China have an “unprecedented” opportunity for collaboration through the African Continental Free Trade Area (AfCFTA) agreement, the AfCFTA chief has told Xinhua. Calling China “a strong partner to Africa,” Secretary-General of the AfCFTA Secretariat Wamkele Mene said that China has provided Africa with “significant development support and investment support” over the past decade. “We are now in a position to offer China, as a partner, an investment destination that is based on the free trade area,” he noted, adding that the scope for cooperation could be in intellectual property rights, manufacturing, and the services sector.
Decline in China’s lending to Africa doesn’t tell full picture of cooperation (Global Times)
China’s lending to African countries fell nearly 30 percent in 2019, a new study conducted by the China-Africa Research Initiative (CARI) at Johns Hopkins University found, suggesting China has sharply curtailed lending to the continent due to debt sustainability concerns. The CARI’s database of China’s loans to Africa mainly collects data from media reports of China and recipient countries in Africa. Holding a relatively objective stance comparing with other Western research institutions, the CARI study may offer some local details of China-Africa cooperation. However, given the inherent flaws of scattered sources which make up its database, it may not be able to tell the whole story. According to China’s 2021 White Paper on International Development Cooperation published in January, China has steadily increased the scale and further expanded the scope of its foreign aid, giving high priority to the least developed countries in Africa.
The International Air Transport Association’s (IATA) outlined three priorities for African governments to ensure that the airline, travel and transport industry survives the COVID-19 crisis and is able to support economic recovery, growth and development throughout the continent. The three priorities are: Continued financial relief and the release of committed aid and blocked funds Safe reopening of borders Planning for the safe restart of operations
African digital leaders address regional connectivity challenges ahead of World Telecommunication Development Conference (Mirage News)
The third of six meetings to prepare for the ITU World Telecommunication Development Conference (WTDC-21) took place on 29 and 30 March, with a focus on digital challenges and opportunities for countries, the industry and citizens across Africa. Held virtually and co-organized with the African Telecommunications Union (ATU), the Regional Preparatory Meeting (RPM) for Africa gathered more than 300 delegates from 33 countries to ensure regional coordination ahead of WTDC-21, set to happen in Addis Ababa, Ethiopia, from 8 to 19 November 2021.WTDC-21 aims to highlight innovative approaches, encourage new models of collaboration, and promote connectivity and digital solutions, particularly in this final Decade of Action to achieve the Sustainable Development Goals (SDGs) adopted by the United Nations. ”For all of us to be ready, all African countries must be individually ready,” said the ATU Secretary-General, John Omo, encouraging ATU member states to participate actively in WTDC-21. “This is only possible through a demonstration of sober and visible efforts, especially in this preparatory phase.”
Airtel Africa clinches $100 million investment from Mastercard (Finextra)
Mastercard is to invest $100 million into Airtel Africa's mobile money business. The transaction comes just weeks after The Rise Fund, the impact investing arm of TPG, invested $200 million in Airtel Mobile Commerce (AMC), at a $2.65 billion valuation. AMC is currently the holding company for several of Airtel Africa’s mobile money operations and is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
AAAM hosts exploratory visit by component manufacturers in Ghana (Engineering News)
The African Association of Automotive Manufacturers (AAAM) in March hosted an exploratory visit by automotive component manufacturers to Ghana. The AAAM says the objective was to introduce potential investors to the Ghanaian automotive market. Executives from Maxe (a division of KAP Automotive), Supreme Springs (a division of Metair) and Hudson Rubber were involved in a week of back-to-back engagements with vehicle assemblers, local manufacturers, vehicle dealers, and spare parts importers, as well as the Ghana Standards Authority
West African Development Bank to finance $5.9bln of projects in 2021-2025 (ZAWYA)
The West African Development Bank will finance projects worth over 5 billion euros ($5.9 billion) in the period from 2021 to 2025 in the eight-nation monetary union, the bank’s president Serge Ekue said on Wednesday. The projects will focus on sectors including agriculture, food security, renewable energy and infrastructure, Ekue told an online news conference, adding that a quarter of the financing will go to private sector projects. Ekue said the development arm of the West African Economic and Monetary Union was in strategic discussions with its main shareholders to double its capital to 2,310 billion CFA ($4.2 billion) and add new shareholders.
Global economy news
UN Report: a severe economic downturn is undermining development prospects in Africa (UNECA)
The United Nations today warned that the devastating socio-economic impact of the COVID-19 pandemic will be felt for years to come unless smart investments in economic, societal and climate resilience ensure a robust and sustainable recovery of the global economy. In 2020, the world economy shrank by 4.3 per cent, over two and half times more than during the global crisis of 2009. The modest recovery of 4.7 per cent expected in 2021 would barely offset the losses of 2020, says the latest World Economic Situation and Prospects.
Developing countries saw a less severe contraction at 2.5 per cent, with an expected rebound of 5.6 per cent in 2021, according to the estimates presented in the report. However, economic contraction among developing nations, falling exports and local consumption rates as well as high levels of public debt will significantly increase poverty levels, says the report. African countries are experiencing an unprecedented economic downturn with major adverse impacts on development. Lower commodity prices, the collapse of tourism and lower remittances – exacerbated by much-needed domestic lockdowns and other measures to control the spread of the pandemic – have caused a severe and widespread deterioration of the economic situation. Limited fiscal space, challenging financing conditions and rising public debt have increased the risks of debt distress.
Director-General urges WTO members to deliver concrete results this year (WTO)
The meeting was called by General Council Chair Ambassador Dacio Castillo (Honduras) to initiate a process of consultations on the nature of the prospective outcome document for the Twelfth Ministerial Conference (MC12), which will take place in Geneva the week of 29 November.
Members “may wish to start thinking about what type of outcome document we might realistically envisage for MC12, including its structure and elements,” the General Council Chair added, announcing he would begin consultations on these issues with interested delegations. He cautioned that this process should not divert attention from ongoing substantive negotiations.
With only seven working months until MC12, DG Okonjo-Iweala called on members to “create a recipe for success upfront,” starting with “two or three or four concrete deliverables” in areas such as fisheries and agreeing on work programmes for other items where differences remain.
World trade primed for strong but uneven recovery after COVID 19 pandemic shock (WTO)
Trade growth should then slow to 4.0% in 2022, and the effects of the pandemic will continue to be felt as this pace of expansion would still leave trade below its pre-pandemic trend (Chart 1).
The relatively positive short-term outlook for global trade is marred by regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries. COVID-19 continues to pose the greatest threat to the outlook for trade, as new waves of infection could easily undermine any hoped-for recovery.
“The strong rebound in global trade since the middle of last year has helped soften the blow of the pandemic for people, businesses, and economies,” WTO Director-General Ngozi Okonjo‑Iweala said. “Keeping international markets open will be essential for economies to recover from this crisis and a rapid, global and equitable vaccine roll-out is a prerequisite for the strong and sustained recovery we all need.”
Global trade faces far longer-term challenges than a grounded cargo ship (Finextra)
Ever Given, the massive container ship that blocked the Suez Canal for seven days, captured the attention of news media around the world as estimates claimed it was holding up $9bn each day in global trade, straining supply chains already burdened by the pandemic. The Suez Canal separates the continent of Africa from the Middle East and Asia and is one of the busiest trade routes in the world, handling about 12% of all world trade. However, a much larger proportion of world trade is impacted every day by the inefficiency, risk and unnecessary costs involved in antiquated trade finance processes. Human error might have been the cause of the Ever Given’s grounding, but it is humans’ adversity to change that is perhaps global trade’s biggest obstacle.
G7 trade ministers agree to develop collective action on ‘harmful industrial subsidies’ (POLITICO)
“Trade ministers will discuss the impact market-distorting practices, such as harmful industrial subsidies, including those causing excess capacity in some sectors, are having on our economies and chart a way to address these collectively,” the joint statement said.
Tariff tensions unaddressed: There was no mention of the tariffs that former President Donald Trump imposed on steel and aluminum imports from several G7 member countries. That remains a major point of friction between the U.S. and the EU. But since many blame subsidies by China and other governments for global overcapacity in those two sectors, joint action on that front might provide a path toward tariff relief.
How Europe can rebuild multilateralism after covid-19 (European Council on Foreign Relations)
The covid-19 pandemic has brought a changing international order into focus. As the virus swept the globe, it highlighted both the interdependence of today’s world and the obstacles to international cooperation. Now that the world is moving into a new phase of the fight against the virus, there is a chance to work together better – both on the recovery from covid-19 and on other transnational challenges in its aftermath. The European Union could do much to set the frameworks through which the world deals with these issues. But, to play that role, Europe will need a strategy for multilateralism that is adapted to a newly competitive world.
As the world looks beyond the first phase of covid-19, a new multilateral agenda focused on global public goods is taking shape. The pandemic brought home the need for global cooperation on public health. It reinforced the idea that health is an essential component of security, and demonstrated that multilateral action is inseparably connected to the well-being of people in every society. At the same time, the impact of covid-19 threatens to increase inequality around the world. The quest for economic recovery needs to be conceived on a global scale. As the world starts to rebuild, the goal of deepening cooperation on climate, technology, and trade will also feature prominently on the EU’s foreign policy agenda.
The problem for multilateralism is that the domains of health, finance, climate, technology, and trade – where the world’s societies are deeply interconnected – are increasingly sites of geopolitical competition between powers with very different political and economic models and values.
More climate action needed during ‘make-or-break year’ for people and planet (UN News)
With countries across the world having agreed through the Paris Agreement to a goal of limiting temperature increases to 1.5 degree Celsius above pre-industrial levels to mitigate global warming, Deputy Secretary-General Amina Mohammed spelled out at the Climate and Development Ministerial Meeting: “We now need to spare no effort to achieve it in this ‘make-or-break year’”.
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National trade and trade-related news
South Africa records FDI inflows in 2020; sales of bonds and equities soar (Engineering News)
South Africa recorded foreign direct investment inflows of R16.0-billion in the fourth quarter from outflows of R12.2-billion in the third, the central bank said on Tuesday. The South African Reserve Bank said in its Quarterly Bulletin that the inflows in the latest quarter were caused by non-resident parent entities increasing equity investments and granting loans to domestic subsidiaries. The country saw FDI inflows of R51.1-billion for all 2020, down from inflows of R74.0-billion in 2019.
Full Quarterly Bulletin - No 299 - March 2021 (SARB)
Although the value of South Africa’s net gold and merchandise exports rose further to a new all-time high in the fourth quarter of 2020, the trade surplus narrowed from the record-high in the third quarter as the value of merchandise imports increased at a faster pace. The higher value of merchandise exports reflected further increases in the export values of mining and manufactured goods, supported by the continued recovery in global trade and the surge in international commodity prices. The increase in the value of merchandise imports reflected relatively firm domestic demand for manufactured goods and certain mining commodities to replenish low stock levels to facilitate increased production. However, despite a second consecutive quarterly increase, the value of merchandise imports contracted by 12.2% for 2020 as a whole – the largest annual contraction since 2009.
The smaller trade surplus, alongside a sizeable widening of the shortfall on the services, income and current transfer account, narrowed the surplus on the current account of the balance of payments from 5.9% of GDP in the third quarter of 2020 to 3.7% in the fourth quarter. The deficit on the income account widened significantly in the fourth quarter of 2020, mainly due to a marked increase in gross dividend payments from a very low base in the third quarter. On an annual basis, South Africa’s balance on the current account of the balance of payments switched from a deficit in 2019 to a surplus in 2020 in the midst of the COVID-19 pandemic – the first annual surplus since 2002.
Minister Patel meets US trade representative (SAnews)
Tuesday’s virtual meeting served as an opportunity for Minister Patel to meet Ambassador Tai for the first time, where a range of bilateral and multilateral trade issues were discussed. Trade, Industry and Competition Minister Ebrahim Patel has met with the newly-appointed United States of America Trade representative Katherine Tai.
Ghana government establishes special financing windows to support businesses in AfCFTA (Ghana Business News)
The Ministry of Trade and Industry will collaborate with financial institutions to establish Special Financing Windows for products of strategic sectors to harness the benefits of Africa Continental Free Trade Area (AfCFTA).
The Ministry said it would ensure that Ghanaian businesses benefited from the roll out of the proposed Pan-African Payment and Settlement System (PAPSS) by Afrexim Bank and the Africa Trade Insurance (ATI) to provide export credit, insurance and guarantees for businesses in Africa under the AfCFTA agreement.
this was contained in a speech read on behalf Mr Allan Kyeremanten, Minister of Trade and Industry, in Accra at the Graphic Business and Stanbic Bank Breakfast meeting on the theme: “leveraging AfCFTA: The Critical Success Factors”.
‘Champions of Trade for the SDGs’ competition launched to make AfCFTA a people’s movement in Ghana (GhanaWeb)
The SDG’s Advisory Unit of the Office of the President, in partnership with the United Nations Development Programme (UNDP), has launched a competition dubbed “Champions of Trade for the SDGs”. The competition is a unique opportunity for stakeholders especially young people and women from the 16 regions of Ghana to submit innovative ideas for making the African Continental Free Trade Area (AfCFTA) agreement a people’s movement towards the achievement of the Sustainable Development Goals (SDGs). The “Champions of Trade for the SDGs” competition is seeking ideas from young Ghanaian Innovators, Entrepreneurs, Agripreneurs and Startups, that will help activate grassroots sensitization, understanding and participation in AfCFTA. The challenge expects proposals on innovative ideas of how AfCFTA can be localized to promote continental trade among young African businesses to derive maximum benefits for SDGs attainment.
Agriculture Sector Network welcomes UK-Kenya Free Trade Agreement - Farmers Review Africa
Kenya agriculture sector umbrella body, The Agriculture Sector Network, ASNET, has lauded the recently ratified Economic Partnership Agreement between Kenya and UK saying it will go a long way in boosting economic development and job creation. The trade deal allows tariff-free market access for Kenyan top agricultural exports to UK including vegetables, fruits, flowers, coffee and tea. Kenyan vegetable exports enjoy 43 per cent market share in UK while cut flowers command 9 per cent share. The trade pact also guarantees tariff free access for UK exports to Kenya among them electronics, technical equipment and machinery.
CS announces new sugarcane price (The Standard)
Agriculture, Livestock, Fisheries and Co-operatives Cabinet Secretary Peter Munya has announced new prices for sugarcane, Sh4,040 per tonne. The Cabinet secretary warned that millers who do not comply will face a fine of not less than Sh500,000 or a jail term of one year. The announcement comes after the interim sugarcane pricing committee reviewed the prices that had stagnated at Sh3,700 since 2018, to Sh4,040 per tonne, effective April 1, 2020. The CS said the country will bridge the deficit by importing the sweetener from the Comesa region. COMESA countries supplied 343,087 tones which is 78 per cent of the total imports in this period. All brown sugar originated from the COMESA region while the rest was imported from the rest of the world.
Uganda, AfDB in $229m Kampala-Jinja highway deal (The East African)
Uganda and the African Development Bank last week signed a $229.5 million financing agreement for phase one of the Kampala-Jinja Expressway, a project expected to cut travel time between the two cities and boost trade along the northern corridor which links the country with its neighbours. The money will finance expressway civil works whose contractor procurement is currently ongoing, for the 95km project whose total cost is $1.48 billion, to be executed under a Public Private Partnership (PPP) arrangement, Uganda National Roads Authority (UNRA) says.
Rwanda cushions ailing businesses with $350m economic recovery fund (The East African)
Rwanda has unveiled an additional Rwf350 billion ($350 million) stimulus plan for its economy to support businesses hard hit by the pandemic, boost jobs and reduce poverty. “Businesses negatively impacted by the restrictions put in place to prevent the spread of the virus, or exposed to consumer discretionary spending, and those with global supply chains that have been disrupted are eligible to apply for the support provided by the Economic Recovery Fund,” said Rwanda’s Prime Minister Edouard Ngirente, presenting the revised economic recovery plan in parliament on Thursday.
The funding, under the Economic Recovery Fund (ERF), was initially set up in June 2020 with an allocation of approximately Rwf100 billion ($100 million) for two years, targeting tourism and hospitality, manufacturing, transport and logistics as well as small and medium enterprises linked to domestic and global supply chains.
The Ministry of Trade, Industry, Regional Integration and Employment has asked importers of essential commodities in The Gambia to obtain licensing system it’s reintroducing to be able to continue importing commodities into the country. The ministry a dispatch stated that the essential commodity Act, enacted in 2015 is being brought into force, saying the act aims to regulate importation, distribution and retailing of essential commodities to ensure availability at fair and reasonable prices. “The Act requires importers of essentially commodities to obtain an import license from the Ministry to be able to import these commodities. The essential commodities in question are rice, sugar, edible oil, flour, chicken legs, whole chicken, onions and potatoes,” the dispatch stated.
It informed all importers of the above commodities to obtain an import license from the Ministry with immediate effect.
Raising the steaks: Why AfCFTA can be Zimbabwean beef’s gateway back into world markets - newZWire
Zimbabwe’s once vibrant beef export industry is long gone, but the potential still exists to reorganise this big export earner. For most beef-producing provinces of Zimbabwe, commercial beef sales once accounted for about 80% of income. At its peak, post-independence in the late 1980s, the country used to export beef worth over US$35 million, with an annual beef quota to the European market of 9,100 tonnes. In current terms, this would translate to about US$400 million, had the industry remained vibrant. This would have meant that beef’s contribution to the economy would be at par with tobacco, which contributes about US$500 million annually. However, this has not been the case. By 2000, the beef industry had all but crumbled. To date, there is virtually no or significant recorded exports of beef from Zimbabwe.
Untapped potential for automotive industry - Truth, for its own sake. (New Era)
The Namibian government says it recognises the importance of developing a fully-fledged automotive assembly industry to help boost the local economy. Last week, industrialisation minister Lucia Iipumbu, on the occasion of the national automotive assembly development policy framework (NAADP) 2019-2021, said the development aims to optimise contribution to the gross domestic product (GDP), employment creation, technology transfer, value addition, fostering of backward and forward linkages and the immersion of micro, small and medium enterprises (MSMEs).
Regionally, the sector major anchor programme, the automotive production development programme (APDP) is set to end in 2021 – and according to her, it could accentuate the policy vacuum more markedly. The Namibian masterplan is to be finalised at the end of 2021.
Nigeria’s move to develop huge gas deposit “step in right direction”: OPEC official - China.org.cn
Nigeria’s move to develop its huge gas deposit was a step in the right direction, said Mohammed Barkindo, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC) on Monday. “Gas is vital to Nigeria’s future, as is oil, and both will be fuels of choice globally for the foreseeable future and instrumental in facilitating the energy transition,” Barkindo told a pre-summit conference in Abuja on “The Decade Of Gas In Nigeria,” a plan aimed at developing the industry in the country in the next 10 years.
‘AfCFTA, WTO treaties’ll affect Customs revenue’ (The Nation Newspaper)
The Comptroller-General, Nigeria Customs Service (NCS), Col, Hamid Ibrahim Ali (rtd) has said the coming into effect of the African Continental Free Trade Agreement (AfCFTA) and the World Trade Organisation (WTO) free trade treaty may affect revenue collection of the service in the year. Ali, who spoke yesterday during the concluding hearing on the Customs 2021 budget defence before the House Committee on Customs and Excise, said the two agreements tended towards zero duty for goods imported from member countries who are signatories to the two agreements.
The Customs chief said the take-off of the AfCFTA and the WTO treaties of free, which took off on January 1, 2021, would, no doubt, affect revenue collection of the service as the two agreements are tailored towards zero duty on goods imported from member countries.
He, therefore, warned the National Assembly against increasing the revenue target given to the service from N1.4 trillion to N1.6 trillion, stressing that if the Service is able to surpass the target, it would, definitely, reflect on its collection for the year.
Ethiopia evinces readiness to use Eritrean ports | Ethiopian Press Agency
Ethiopia is executing due activities to re-access Eritrean ports of Massawa and Assab whilst the Eritrean side is currently renovating the ports facilities to handle Ethiopia’s shipment and provide seamless service for the future traffic, Ministry of Foreign Affairs (MoFA) said. Apart from sharing borders and communities, Ethiopia and Eritrea were one state that is believed to be the main factor for the unique cultural and social bonds the two states have enjoyed. “What owned by Ethiopia is lacked by Eritrea and what they have is not with us,” he said, adding that Eritrea’s extensive coastline avails a good opportunity to the land locked Ethiopia’s import-export trade.
Egypt eyes economic foothold in Djibouti (Al Monitor)
Sherif Issa, Egypt’s assistant foreign minister for African affairs, led a high-ranking delegation from various ministries and companies to Djibouti this month to discuss strengthening economic and other relations between the two countries. An Egyptian Foreign Ministry statement said the visit culminated in Djibouti’s approval to license an Egyptian company to operate flights between the two countries in order to facilitate the movement of passengers and goods. Djibouti also authorized an Egyptian bank to work in Djibouti, in addition to reaching agreement on cooperation involving the building of housing units, ports, logistical and industrial areas, in developing fish farming and on ways to remove informal settlements, the statement added. He said Egypt has realized that competition in Africa now has to more with development and economic presence rather than diplomacy and politics. He said the Egyptian presence in African markets “is not at the required level.”
Hassan also said many African countries see Egypt as being successful in developing the infrastructure they lack and seek to benefit from Egypt’s experience.
African regional and continental news
Amid Recession, Sub-Saharan Africa Poised for Recovery (World Bank)
Economic growth in Sub-Saharan Africa is estimated to have contracted by 2.0% in 2020, closer to the lower bound of the forecast in April 2020, and prospects for recovery are strengthening amid actions to contain new waves of the pandemic and speed up vaccine rollouts, according to the World Bank’s biannual economic analysis for the region. The latest Africa’s Pulse, The Future of Work in Africa: Emerging Trends in Digital Technology Adoption, notes that a slower spread of the virus and lower COVID-19-related mortality, strong agricultural growth and a faster-than expected recovery in commodity prices has helped many African economies weather the economic storm induced by the COVID-19 pandemic. The report notes that economic recovery hinges on countries deepening reforms that create jobs, encourage investment, and enhance competitiveness. The resurgence of the pandemic in late 2020 and limited additional fiscal support will pose an uphill battle for policy makers as they continue to work toward stronger growth and improved livelihoods for their people.
AfCFTA: Free trade bloc can be a game changer for African people and business (Namibia Economist)
Exploring strategies to deepen private sector participation in the implementation African Continental Free Trade Area (AfCFTA) was the highlight of a panel session during the 2021 WTO Aid-for-Trade Stocktaking meeting. The African Development Bank, the United Nations Industrial Development Organization (UNIDO) and International Trade Centre (ITC) organized the session held on Wednesday 24 March. “The success of the AfCFTA hinges on the ability of African firms to understand and capitalize on the trade related opportunities offered by the AfCFTA,” said Pamela Coke-Hamilton, International Trade Centre (ITC) Executive Director.
Blockchain drives intra-Africa trade during COVID-19 pandemic – New Business Ethiopia
The Eastern and Southern African Trade and Development Bank (TDB) and OCP Group, the world’s largest phosphate mining and leading fertilizer company, announced $400 million-worth of fertilizer trade finance transactions executed via blockchain technology. Of the total value $270 million have already been completed, and the remainder to be executed in upcoming months. These transactions make OCP Group the first African company to execute an intra-African trade transaction using blockchain. Through dltledgers’ blockchain platform, OCP Group delivered phosphate fertilizers from Morocco to Ethiopia. The intra-African transaction initiative, as part of OCP’s digitalization strategy, aims to reduce the trade finance gap in Africa and boost trade between African countries, particularly in the fertilizer sector, through digital inclusion.
East Africa critically undermined by illicit trade - Report (The Star, Kenya)
East Africa, a key security partner in the war on terror is being critically undermined by illicit trade, a report has found. The report dubbed An Unholy Alliance: Links Between Extremism and Illicit Trade in East Africa says that terror groups , urban gangs, and international crime groups are increasingly targeting East Africa as a destination market for illicit trade. They also use East Africa as a transport hub for the mass import and export of illegal goods.
The SADC Committee of Ministers of Health has recommended that modern technology such as video-conferences, Webinars and Skype calls continue to be used when conducting meetings until the COVID-19 situation has been contained in the Region. This position was endorsed by the Council of Ministers which met on 12th March 2021 and directed the Expanded Technical Committee for Coordinating and Monitoring the Implementation of the SADC Protocol on Health to continue monitoring the COVID-19 situation and provide timely advice, analyse the current COVID-19 situation in the African context and provide home-grown solutions.
SADC put on hold the hosting of regional face-to-face meetings in March 2020 due to the outbreak of the coronavirus and instead recommended convening of virtual meetings . The Council of Ministers observed during its meeting that the COVID-19 situation in the SADC Region has been gradually deteriorating since September 2020 and that the numbers of cases and deaths have exponentially increased in all Member States.
COMESA and Partners Agree to Enhance Trade in Animal/Products under AfCFTA
COMESA Secretariat held a one-day consultative meeting with Member States and other Regional Economic Communities (RECs) on optimizing returns from intra-Africa trade in Animals and Animal products under the African Continental Free Trade Area (AfCFTA). The virtual meeting discussed many issues including reinforcing multi-lateral cooperation for disease prevention and control, integration of informal trade in animals and animal products into formal trade and access to information on available market opportunities and market potentials within the region. Other matters discussed included trade complementarity and the need for creating value addition opportunities to create diverse markets within Africa and financing the animal resources sector to boost productivity and development of the sector. The consultative meeting came up with a communique in which they called for integration of AfCFTA-animal resources development strategies into national AfCFTA strategies. This is in addition to identifying opportunities for investment along the value chains to enhance export capacity. They also called for the development of productive capacities in the animal resources sector to advance industrial competitiveness and economic transformation among several other recommendations.
Africa must focus on industrialisation of export commodities to generate sustainable wealth, economic experts advise (BusinessAMLive)
African countries need to diversify their economies by replicating East Asia’s aggressive focus on manufactured exports rather than remain trapped in their colonially defined role as producers and exporters of raw agricultural or mineral products used in industrial production in Europe, America and other continents. This was one of the central ideas recommended by economic experts during the recent Adebayo Adedeji Memorial Lecture, an annual event set up to honour the late Adebayo Adedeji, a Nigerian economist and longest serving executive secretary of the Economic Commission for Africa (ECA), held in Addis Ababa, Ethiopia. Rob Davies, erstwhile South African minister of trade & industry and chief speaker at the event themed “Towards a Developmental Approach to the AfCFTA”, noted that the global race for a vaccine highlights the perils of African countries being consumers and not producers of medical supplies.
How Africa digital Covid passport will ease travel (Business Daily)
As international travel transitions to the use of Covid-19 passports, African airlines have teamed up to use a shared digital passport system developed by the African Union (AU) in partnership with the Africa Centres for Disease Control and Prevention (Africa CDC).A vaccine passport portal for Africa means passengers from the continent can travel within and outside their countries, while encouraging tourists to resume trips, providing a massive boon to an air industry that has been crippled by the pandemic to post historical losses.
The Travel Pass, developed by the International Air Transport Association (IATA), is a digital platform to help passengers easily and securely manage their international travel in line with any government requirements for COVID-19 testing and vaccine information.
The proposed ECOWAS Currency Union on intra-regional trade (GhanaWeb)
The Economic Community of West African States (ECOWAS) comprises eight Francophone, five Anglophone, and two Lusophone countries. These countries were categorized into two zones namely; the WAEMU (West African Economic and Monetary Union) formed as an African Colony of France during the colonial era, and the West African Monetary Zone (WAMZ). The WAEMU comprises seven francophone countries and one Lusophone country, and the WAMZ comprises five Anglophone countries, one francophone country, and one Lusophone country. Comparatively, the WAEMU uses the CFA (XOF) as a common currency, and the WAMZ uses its sovereign currencies. Also, the WAEMU is macroeconomic fundamentally stable than the WAMZ due to the stringent monetary policy practices and laid down macroeconomic convergence criteria. Additionally, the WAEMU intra-trade averages 13.7% above the overall average for the ECOWAS although the WAMZ is the economic hub of the sub-region. Therefore, the use of sovereign currencies by countries in the WAMZ could be a barrier to trade.
ECOWAS organises workshop on anti-money laundering in Accra (Ghanaian Times)
The Minister of Works and Housing, Francis Asenso-Boakye, has called for a concerted effort among stakeholders in the security and real estate sectors of the country to combat money laundering. “Given the advancement in technology and the borderless world, which is making it increasing difficult to track money launders, there is the need for collaboration among experts, to fight money laundering,” he added.
The three-day programme is aimed at enhancing the capacity of participants on current and emerging money laundering risks. It also seeks to promote cooperation, coordination and engagement amongst relevant competent authorities and real estate sector professionals on how to effectively implement strategies for anti-money laundering and combating terrorism financing.
ECOWAS Vision 2050: ECOWAS Commission consults decentralized stakeholders (Modern Ghana)
The ECOWAS Commission has asked Community stakeholders to play an active role in the development and the implementation of the ECOWAS Vision 2050 document and its frameworks for the West African Region. This call came in a two-day consultation workshop, organized by ECOWAS 29-30 March 2021, in Abuja. A similar consultation workshop was held with women and youth organisations across West Africa, last week. This workshop aimed to consult specifically with the decentralized stakeholders from Member states because in most West African States, governance is decentralized to the subnational level for increased participation of the citizens in decision making and promote the wider spread of socio-economic development at the sub-national level.
Challenges of regional integration of West Africa (Punch Newspapers)
Taking a step back into a historical journey, the concepts of “multilateralism” and “regionalism” have increasingly taken the centre stage in global politics. The European Union and the North American Free Trade Agreement, African Union and ECOWAS have emerged and are growing. Also, the fate of the African Continental Free Trade Agreement is also being rethought. Based on our recent research on “The “Isms” of Regional Integration: What Do Underlying Interstate Preferences Hold for the ECOWAS Union?” we argue that ECOWAS may not have lived up to its mandate after four decades of its existence. While some success in regionalism may have been achieved, such success appears to be limited in scope. The critical challenges include member states internal insecurity, crime, illicit trading and smuggling across the borders. Also, ECOWAS security apparatus suffer from financial burden and political interference. ECOWAS forces receive insufficient training, lack of preparation and inadequate military equipment. These produced weak interventions and “seriously weakened” the external and internal security of the region and ability to overcome the activities of Boko Haram terrorist group. More so, ECOWAS has been struggling to bring about the radical integration of the region with other economic blocs.
Regionalism presents unique opportunities to drive Africa’s transformation, economic development, and territorial advancement. Whether viewed with optimism or scepticism, global trade has become a critical focus of world leaders but regional integration, governance of treaties and policies remain contentious areas. Considering these concerns, this article draws insights from the regionalisation of the ECOWAS and treaty implementation. Despite the portrayal of Africa as the most underdeveloped continent in the world, the emergence of ECOWAS and the African Union is a manifestation that Africa is taking responsibility for its affairs.
ECOWAS, EU Embark On Mission To Fight Against Cybercrime In West Africa (PeaceFM Online)
ECOWAS in collaboration with the European Union, Expertise France and the Government of Burkina Faso will on Tuesday, March 30, 2021, hand over equipment to the Digital Investigation Laboratory of the BCLCC of Burkina Faso. An awareness workshop for digital hygiene will also be launched on the same day. The Information and Communication Technologies (ICT) revolution has radically changed the world through the automation of tasks. They have become de facto essential for sustainable development, especially in the productivity of the economy. However, they have also given rise to the emergence of new forms of criminality linked to their uses. According to several studies, cybercrime costs the global economy more than 500 billion dollars each year.
With a view to providing a response to the strong growth of cybercrime in its area and to support its member countries, the ECOWAS Commission initiated the project “Organized crime: West Africa’s response to cybersecurity and the fight against cybercrime” (OCWAR-C). This project aims to contribute
Nigeria Seeks Integrated, Coordinated Approach against Hunger in Africa (THISDAY Newspapers)
The federal government has called on the global community to adopt an integrated, targeted and well-coordinated approach to combat hunger in Africa. Speaking at a roundtable in the ongoing virtual World Bank-IMF 2021 Spring Meetings on ‘Food Security in Africa: A Resilient Food System Beyond COVID-19’, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed called on the international community, particularly the multilateral institutions and the private sector to assist Africa to build food resilience. She said: “We invite the international community, particularly the multilaterals and the private sector to key in and to assist Africa to build food resilience and pursue the attainment of the Sustainable Development Goals (SDGs) number two and the goals of African Union (AU) Agenda 2063.” In her opening remarks, Ahmed noted that a robust and secured food system is central to the health of both humans and the economies of nations, adding: “As the main source of nourishment and jobs for millions of the population, the conversation around the topic is critically well set.”
Efforts to improve the productivity and resilience of pastoral production systems in the Sahel get a strong boost with a $375 million new IDA* financing, approved by the Board of World Bank’s Executive Directors today, to support the implementation of the second Regional Sahel Pastoralism Support Project, known by its French acronym PRAPS-2 (Projet regional d’appui au pastoralisme au Sahel-Phase 2). Pastoralism is a key driver of growth that provides livelihoods for more than 20 million people in the Sahel. The new project will support this important activity to improve the resilience of pastoralists and agro-pastoralists in selected areas of the Sahel region, including in Burkina Faso, Chad, Mali, Mauritania, Niger and Senegal.
“Ensuring the socio-economic inclusion of women and youth in all development programs in the Sahel is key”, said Ms. Soukeyna Kane, World Bank Country Director for Burkina Faso, Chad, Mali and Niger. “PRAPS-2 will contribute to this goal by stepping up interventions towards vulnerable women and youth from pastoral households by increasing their access to training, including functional, digital and financial literacy, as well as business skills. It will finance income generating activities to support their self-employment initiatives and will improve access to social and civil registries, a strong demand of pastoralists’ organizations in the Sahel region”.
Global economy news
Blockchain forum looks at how to accelerate digitalization to facilitate trade (WTO)
The event, entitled “Accelerating Trade Digitalization through distributed ledger technology”, reviewed the latest developments in blockchain and how digital technologies such as distributed ledger technology (DLT) can help address the risks and inefficiencies in global supply chains to the benefit of all. A distributed ledger is a digital list or database shared among nodes in a distributed network. Blockchain is one type of distributed ledger. More details on the event is available here. In his opening remarks, Deputy-Director General Xiaozhun Yi said: “The pandemic has brought to the fore the archaism of trade processes still largely based on paper, with dire consequences on business operations in times of lockdowns. It has brought into sharp focus the need to urgently digitalize these outdated paper-based processes. The last 12 months have shown that going digital is no longer optional. It is a matter of survival for many companies, in particular the smallest ones who have been hit very hard by the current crisis.” DDG Yi’s full remarks are available here.
“Accelerating Trade Digitalization to Support MSME Financing”, launched today, seeks to identify some of the most pressing challenges related to trade financing for micro, small and medium-sized enterprises (MSMEs) and explores the potential application of digital technologies to address these challenges. The publication is based on interviews and surveys with experts in the field of MSME financing, including trade financing, and explores the ways that technology can be used to enhance access to financing.
PwC report identifies payment as a core digital economy value proposition (Engineering News)
Digital payments, and the ecosystem partnerships required to enable them, are a cornerstone of the new digital economy and customers and businesses are increasingly relying on digital options to buy and sell goods and services, says advisory multinational PwC Strategy& Payments Transformation lead Chantal Maritz. Some of the biggest players in the payments industry are creating value by offering a multitude of payment solutions, least-cost routing options and value-added services that can cater to the needs of small merchants and global multinational companies alike, she illustrates
How the Suez Canal blockade affected global trade (World Finance)
Between March 23-29 a 1,300ft-long container ship, named Ever Given, blocked traffic at Egypt’s Suez Canal entrance. It was finally freed yesterday (March 29) after six frantic days, but the blockade left over 200 ships stranded at either end of the canal. This has mounted further pressure on global trade during a period when it was already feeling the strain due to the economic effects of the COVID-19 pandemic.
Even though the vessel is now free, and trade has resumed, there is a massive backlog of vessels trying to pass. The level of disruption cascaded every 24 hours over a period of six days as more vessels joined the line of transit. There could be congestion at some ports and further exacerbation of supply chains which were already reeling from container shortages. As a result, assembly lines could be left idle as ships will not arrive in time. Another area of trade loss is the re-routing of some ships that are being asked to travel via the Cape of Good Hope in South Africa, which could see a delay of another eight days. This could potentially add more than £18,000 a day in fuel costs.
Egypt’s Sisi promises investment to avoid Suez closure repeat (Eyewitness News)
The promise came a day after the refloating of the giant container vessel MV Ever Given, which hit the eastern bank of the narrow shipping lane last Tuesday and became wedged diagonally across its span for nearly a week.
After the Ever Given: what the ship wedged in the Suez Canal means for global trade (The Conversation)
In the early hours of March 23, the container ship Ever Given was blown off course by high winds on its way through the Suez Canal. At 400 metres long, the Ever Given is longer than the canal is wide, and the ship became wedged firmly in both banks, completely blocking traffic. Coming on top of the COVID-19 pandemic, this event has highlighted the fragility of global supply chains – and is likely to accelerate changes in the world economy that were already under way. Advances in technology associated with digitisation and automation are making manufacturers less dependent on large skilled workforces found only in certain parts of the world. Production is becoming more mobile and therefore able to locate closer to the markets served.
Several heads of state and government, the United Nations and heads of multilateral development finance institutions on Monday called for expansion of the Debt Service Suspension Initiative, under which low-income countries have suspended paying down debt during the Covid-19 pandemic. The initiative should be widened beyond low-income countries and its current expiration extended to offer much-needed fiscal space, panelists urged in a discussion of international debt architecture and liquidity. The meeting also called for Special Drawing Rights to be reallocated to poorer countries.
Macroeconomic Developments and Prospects In Low-Income Countries—2021 (IMF)
This paper is the sixth in a series that examines macroeconomic developments and prospects in low-income countries (LICs). LICs are defined in this report as the countries eligible to PRGT facilities (69 countries). The first section of the paper discusses recent macroeconomic developments and trends across LICs. The second section estimates LICs’ financing needs up to 2025 to resume and accelerate their income convergence with advanced economies (AEs). It does this by estimating the additional financing that would enable LICs to step up spending response to COVID, including vaccination needs, while rebuilding or keeping external buffers to enhance resilience, and then the paper considers the financing needed to allow LICs to accelerate convergence with AEs. The paper then discusses a mix of financing options, including concessional financing from the international financial institutions, grants and loans from bilateral donors, private financing and debt operations, but also domestic reforms within LICs themselves as a key component to foster growth, enhance private investment, raise public revenues, and increase efficiency of spending.
Economists warn that climate change will deepen rich-poor global divide (CGTN Africa)
Nearly nine in 10 leading global climate economists think climate change will deepen income inequality between rich and poor countries, with most calling for urgent action to cut planet-warming emissions, a survey showed on Tuesday. According to the research by New York University’s Institute for Policy Integrity, the impacts of rising temperatures could create “enormous difficulties” for nations already burdened by economic challenges and high rates of poverty. In the largest ever global expert survey published on the economics of climate change, nearly three-quarters of the more than 730 respondents said “immediate and drastic action” was needed to cut emissions.
Here’s how to propel a green recovery for the poorest (Thomson Reuters Foundation)
The International Monetary Fund (IMF) announced at the recent Climate Adaptation Summit its intention to place climate change at the heart of its work – recognising the natural world and the economy are no longer at odds. With the growing climate stress and depletion of ecosystems, it is imperative that the renewed efforts are launched to propel a green recovery from the pandemic, preserving nature for future generations and giving it much needed economic value. As climate scenarios are integrated within economic frameworks climate-vulnerabilities will be more evident across the globe and strain the medium-term economic scenarios. Climate shocks could chop off up to 5% of gross domestic product (GDP) per year by 2030 in some vulnerable countries. This also means debt distress will limit the fiscal space to support an inclusive and effective green recovery post COVID.
he global economy and multilateral order will benefit immensely from China’s domestic reforms and opening up of its economy to foreign investors, Cavince Adhere, an international relations expert told Xinhua during a recent interview in Nairobi, capital of Kenya. Cavince Adhere hailed the ongoing policy, institutional and regulatory reforms in China saying they will revolutionize Beijing’s interaction with the world and unleash shared prosperity. “I think it is important to appreciate that China is continuing with its reforms and opening up, we have seen the latest announcement from the two sessions that China intends to derisk some of the sectors that for long have been out of reach to foreign investors,” Adhere told Xinhua.
In February 2020, the Maritime Silk Road Trade Index (STI) released by the Ningbo Shipping Exchange showed that the import and export trade index was 145.91 points, up 40.96% year-on-year; the export trade index was 162.54 points, an increase of 60.33% year-on-year; the import trade index was 129.00 points, up 22.06% year-on-year. From January to February, China total import and export trade value was US$834.5 billion, a year-on-year increase of 41.0%. The total export trade value was US$468.8 billion,a year-on-year increase of 60.3%;the total import trade value was US$365.6 billion, a year-on-year increase of 22.1%.
From January to February, the import and export trade value between China and Africa was US$34.0 billion, up 27.6% year-on-year, accounting for 4.1% of China’s total import and export value. The export trade value was 20.7 billion U.S. dollars, up 50.7% year-on-year; the import trade value was 13.3 billion U.S. dollars, up 3.1% year-on-year.
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South African President Ramaphosa calls on WTO to allow countries manufacture vaccines locally (CGTN Africa)
South Africa’s President Cyril Ramaphosa has called on the World Trade Organization (WTO) to waive its restrictions and enable countries that have the capacity to manufacture vaccines to do so. “It is important for us as Africans that as we deal with this pandemic, we are not left behind, with previous pandemics, Africa was often left behind in some cases we were left many years behind, even 10 years. This time round, we are going to be up there with the more developed economies, when it comes to the rollout of the vaccine, it is for this reason that we are calling for an end of vaccine nationalism,” Ramaphosa said.
Recalibrating the procurement framework: Infrastructure investment’s last chance saloon (Daily Maverick)
Galvanising infrastructure investment is the only – and best – way for the SA government to kick-start economic growth and provide citizens with the means to improve their own lives and boost their incomes. But despite years of talk about enabling infrastructure investment in the country, we have gone backwards. Infrastructure investment has fallen precipitously, from 20.3% of GDP in 2015 to 17.9% in 2019. The fall has been particularly evident in public sector spending. In the 2019/20 financial year, public sector spending was 27% or R70-billion below the budget of the previous year. It gets worse when it comes to state-owned enterprises (SOEs) and municipalities, which generally spend half of what is provided. This reflects the legendary capacity constraints in public institutions and the unnecessary complexity of the regulations for public sector spending (on-budget expenditure), as well as public-private partnerships (PPPs). Thus, achieving the target set in the National Development Plan of investing 30% of GDP by 2030, or even the 23% targeted by the Minister of the Department of Public Works and Infrastructure, Patricia de Lille, by 2024, seems like a pipe dream.
South Africa continues to be G20 coal outlier, report shows (Engineering News)
With 86% of the country’s electricity produced from coal, South Africa continued to have the highest reliance on the energy mineral among all G20 countries in 2020, with the global average standing at 34%. The ‘Global Electricity Review 2021’, published on March 29, indicates that the G20 country with the second highest coal dependency is India, which generates 71% of its electricity from coal.
Partnership brings shared prosperity, opportunities (US Embassy in South Africa)
As we mark the anniversary of the first Covid-19 case in South Africa and the subsequent lockdown measures, March 2021 is an important time to reflect on the challenges we’ve confronted together during the past 12 months. The American people are proud to have contributed to the Covid-19 response in the Western Cape and City of Cape Town.
Assistance to the health sector must not, however, be our only response to Covid-19. As the top foreign direct investor in the Western Cape and one of the province’s leading trading partners, the US must play a key role in the economic recovery. That is why, in February 2021, I was delighted to join Finance and Economic Opportunities Minister David Maynier to launch a new US-Western Cape trade and investment promotion partnership. This collaboration supports President Joe Biden’s priority of partnering with dynamic and growing African economies, including sub-national ones like the Western Cape.
Beitbridge’s exponential growth, a mismatch for service delivery demands (The Herald)
The story of Beitbridge is an exponential growth that does not correspond to demand for service. It is mainly an expansion in terms of population numbers, but highly unmatched by the availability of public amenities. Over the years, the border town has tremendously developed in terms of population and infrastructure growth, especially in the last decade. However, very little has happened in areas around the upgrading of social amenities, including health institutions.
Kenyan manufacturers urge Government to harmonise laws to drive competitiveness (HapaKenya)
Manufacturers have called on the Government to harmonize laws, policies and regulations at the National and County levels, to drive the competitiveness of local industry. This was during the launch of the Regulatory Audit Report 2020, highlighting regulatory challenges facing the business community across the country. Speaking during the launch, KAM Chair, Mucai Kunyiha explained that while regulations seek to create a level-playing field for businesses, regulatory overreach hinders the competitiveness of local industry. “At the national level, manufacturers are required to adhere to duplicating requirements, from different regulatory bodies, in addition to meeting numerous tax obligations. In the counties, we have to pay various fees, levies and charges. This drives up the cost of doing business in the country, thus reducing our competitiveness locally, regionally and even globally,” highlighted Mr. Kunyiha.
Tourism blow as agency reverses flights exemption (Business Daily)
The aviation regulator made a U-turn Monday by cancelling the permission that it had granted some local airlines to fly foreign tourists in and out of Nairobi and four surrounding counties in a move that is now set to hit the tourism sector. The Kenya Civil Aviation Authority (KCAA) had earlier said the exemption was applicable to all airlines offering holiday travels. However, in a quick reversal Monday evening, the regulator said international tourists will not be given exemption as communicated earlier.
Namibia: High feed prices and imports derail domestic poultry (The Namibian)
The Namibian poultry industry's growth and development are being thwarted by high feed prices and imports from international poultry giants. This was revealed last week by the chairman of the Poultry Producers Association (PPA), René Werner, in the Namibian Agricultural Union's weekly briefs. Werner said despite the number of producers increasing, the sector's growth is being hampered by the cost of feed in the country. He pointed out that the volume of imports into the country from major international companies is creating stiff competition for the budding local industry. Local poultry trade statistics from the Namibia Statistics Agency (NSA) for the past two years indicate the country has imported poultry and poultry products worth N$2,0 billion from around the world.
Rwanda: New incentives for local manufacturers explained (The New Times)
In December last year, Cabinet approved the ‘Manufacture and Build to Recover Programme’, which the government says is aimed at fostering economic recovery following a recession resulting from the Covid-19 and measures to curb it. It will extend tax breaks and tax credits to businesses with an aim to reduce cost of investment for new manufacturers as well as those seeking to expand existing operations. The programme is expected to lead to over $1 billion worth of investments as well as create over 27,000 jobs across the country which is expected to put the country on the path to recovery.
The New Times’ Collins Mwai spoke to Rwanda Development Board Deputy Chief Executive Zephanie Niyonkuru on the programme scope, investor eligibility among other aspects.
NDS1 positions Zimbabwe for regional economic integration gains (Chronicle)
The National Development Strategy (NDS1), the country’s new five-year development roadmap, will play a key role in positioning Zimbabwe for increased gains within the regional economic integration framework, Finance and Economic Development Minister Professor Mthuli Ncube has said. This comes as the Government is seriously focusing its policy on the regional, continental and international integration initiatives, as these are key in promoting economic development.
We’ve agreed that Nigerians are better, stronger together – Buhari (Premium Times Nigeria)
The President of Nigeria, Muhammadu Buhari, has urged Nigerians to keep faith in the promise of a great Nigeria. Mr Buhari made this call on Monday while speaking virtually at the Bola Tinubu 12th colloquium. The 12th colloquium is tagged: “Our Common Bond, Our Common Wealth: The Imperative of National Cohesion for Growth and Prosperity. The president said the colloquium will be a resource for wisdom in Nigeria and to the development of Africa at large. Speaking of the theme of the colloquium, the president said it is a more relevant and impactful discussion than ever before. “It seems that we have all agreed on one point that notwithstanding our diversity, ethnic, religion and group, Nigerians are better together and even stronger together.
African regional and continental news
The AfCFTA Secretariat and the UN Development Programme (UNDP) today have signed a strategic partnership to promote trade as a stimulus for Africa’s socioeconomic recovery from the COVID-19 crisis, and as a driver of sustainable development particularly for women and youth in Africa, in line with the SDGs and Agenda 2063 common vison for the continent.
Private Sector Vital for the AFCFTA (East African Business Week)
Exploring strategies to deepen private sector participation in the implementation of the African Continental Free Trade Area (AfCFTA) was the highlight at the panel session during the 2021 WTO Aid-for-Trade Stocktaking meeting. The African Development Bank, the United Nations Industrial Development Organization (UNIDO) and International Trade Centre (ITC) organized the session held on Wednesday 24 March. “The success of the AfCFTA hinges on the ability of African firms to understand and capitalize on the trade-related opportunities offered by the AfCFTA,” said Pamela Coke-Hamilton, International Trade Centre (ITC) Executive Director during the recent 2021 WTO Aid-for-Trade Stocktaking meeting.
The Aid-for-Trade initiative – promotes trade in development and supports building productive capacities with focus to boost the private sector’s role in AfCFTA: empowering businesses with skills and know-how; fostering multi-stakeholder partnerships to attract investment for greater value addition and enhancing market connections using e-commerce and digital platforms.
Business opportunities from AfCFTA enormous – Akufo-Addo to Spanish govt (GhanaWeb)
President Nana Addo Dankwa Akufo-Addo, says a very important plank of the new strategic partnership between Africa, Spain and Europe would be the strong support for the African Continental Free Trade Area (AfCFTA), which began trading on 1st January. Speaking at the “Focus Africa 2023” Conference held in Madrid, in Spain, on Monday, 29th March 2021, President Akufo-Addo indicated that the AfCFTA will link all the fifty-four (54) markets of Africa, covering 1.2 billion people, into a single market.
The President continued, “Imagine the investment and business opportunities offered by the infrastructure required to link our markets more effectively. And imagine the business opportunities that this huge market would offer for manufacturing and services firms from Spain and Europe that could establish production facilities in Africa to serve the African markets.”
Graphic Business/Stanbic Bank Breakfast Meeting: Trade Minister, captains of industry to discuss AfCFTA opportunities (Graphic Online)
Captains of industry, bankers, policy makers, analysts and business people across the country will converge on the Labadi Beach Hotel tomorrow (Tuesday) for a special breakfast meeting to chart a path and devise strategies on how Ghanaian businesses can fully leverage the Africa Continental Free Trade Area (AfCFTA) which took off on January 1, this year. Christened the Graphic Business/Stanbic Bank breakfast meeting, the event, the first of four for the year, is also expected to offer the platform to speakers and participants to share ideas and develop a more comprehensive road map that will help policymakers and potential beneficiaries to take advantage of the nearly $3.4 trillion free trade area. The theme for the event is: ‘Leveraging AfCFTA. The critical success factors,’ and the Minister of Trade and Industry, Mr Alan Kyerematen, is the keynote speaker.
SADC urges Member States to sign and ratify AfCFTA and TFTA
The Council of Ministers of the Southern African Development Community (SADC) has urged Member States that have not yet signed and ratified the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa-East African Community-SADC (COMESA-EAC-SADC) Tripartite Free Trade Area (TFTA) to do so to allow for the implementation of the agreements. The SADC Council meeting, which convened virtually on 12th March 2021 and was chaired by Honourable Verónica Nataniel Macamo Dlhovo, Minister of Foreign Affairs and Cooperation of Mozambique in her capacity as the Chairperson of the SADC Council of Ministers, noted progress on the signature of the COMESA-EAC-SADC TFTA. The signing and ratification of the TFTA Agreement is critical as it will pave way for the successful implementation of the AfCFTA. The AfCFTA seeks to increase employment opportunities and incomes, helping to expand opportunities for all African countries. It is expected to lift around 68 million people out of poverty and make African countries more competitive.
The Council noted that 22 COMESA-EAC-SADC Member/Partner States have signed the TFTA Agreement while 10 Member/Partner States have ratified the agreement. Of the 10, Member/Partner States, five are SADC Member States (Botswana, Eswatini, Namibia, South Africa and Zambia). Article 39(3) of the TFTA Agreement provides for the agreement to enter into force upon ratification by 14 Member/Partner States.
Logistics sector looks beyond COVID-19 (The Southern Times)
Stakeholders in Southern Africa’s transport and logistics sector are strategising how best to rebound from the COVID-19 pandemic, whose restrictions on movement have resulted in declining commerce, meaning less revenues. With vaccines being rolled out, those in the sector are hopeful that movement of people and goods will start improving soon. Walvis Bay Corridor Group (WBCG) chief executive officer Mr Mbapahu Hippy Tjivikua this week told The Southern Times Business that it remained crucial to strike a balance between health and business imperatives.
He acknowledged teething problems in implementing SADC-wide regulations in response to COVID-19, but these had been confronted and the sector was now looking at growth. “Our role is to sensitize and advocate with the relevant authorities to ensure that the measures that are being implemented contain COVID-19 and do not impede trade. We are consulting with government and neighbouring countries as well as the SADC secretariat with regards to the implementation of appropriate measures that will curb the spread of COVID-19,” he said.
“With the imposition of border closures and strict migration measures, there have been major disruptions in Africa’s global supply chains. The Corridor Group is further working hand in hand with the various border officials and agencies as well as the industry in order to alleviate the congestion at the borders, while ensuring that Covid-19 regulations are adhered to,” he said.
He went on: “The congestion at the various borders are experienced across the continent in varying degrees. COVID-19 has brought to light the importance of harmonised and collaborative approaches between countries, to ensure that trade continues. The AfCFTA could benefit from this situation as neigbouring countries are learning how to engage one another with regards to cross border trade.”
EAC tariff experts gather to prepare HS 2022 version of Common External Tariff (WCO)
In pursuit of its efforts to implement the 2022 version of the Harmonized System in a timely manner, the East African Community (EAC) held a regional meeting of tariff experts from 15 to 19 March 2021 in Moshi, Tanzania. It was jointly organized by the EAC Secretariat and the WCO, within the framework of the EU-WCO Programme for the Harmonized System in Africa (HS-Africa Programme), funded by the European Union. The objective of the meeting was to transpose the EAC Common External Tariff (CET) to the 2022 version of the HS. Participants reiterated the importance of a well-coordinated approach to the implementation of HS amendments for EAC Partner States, to fully respect their commitments of Contracting Parties to the HS Convention and of signatories of the EAC Treaty.
The meeting was an important step in the process of the preparation of the 2022 version of the EAC CET. The meeting concluded by recommending to EAC policy organs to adopt the EAC CET 2022, with the entry into force on 1 January 2022.
Covid-19 status App tracking 72,000 EAC truck drivers (Daily Monitor)
The Covid-19 status of at least 72,900 truck drivers across the East Africa region is being monitored through a mobile application (App), according to TradeMark East Africa. The App, which was launched in September 2020 by the EAC Secretariat in partnership with TradeMark East Africa and the European Union, has been key in the fight against Covid-19, especially among cross border traders.
“Since we launched the App in September, 2020, more than 72,900 drivers have downloaded it. This represents more than 90 per cent of cross border trade drivers in the entire EAC,” Mr Odhiambo said, adding that whereas the current App was built in English, there are on-going efforts to localise it in languages spoken widely in EAC such as French and Swahili, among others. Whereas Covid-19 has been a major problem for all sectors of the economy, truck drivers have been more affected due to their cross border movements.
During the lockdown, the Ministry of Health in Uganda would on average record at least 100 Coronavirus suspected cases. Therefore, the Regional Electronic Cargo and Drivers’ Tracking App, which automatically picks test results for all cross border truck drivers indicating which is negative and positive, will go a long way in fighting Covid-19 and promoting trade, especially at a time when disruptions have not subsided.
How COVID-19 is accelerating the use of digital tech in agriculture in East Africa (Trade 4 Dev News)
The COVID-19 crisis has generated sudden and significant changes in the way that people work, produce, consume, trade and live. There has been the widespread turn to working from home (especially for typical white-collar activities), and the deepening reliance on e-commerce for groceries and other daily goods, which has affected notoriously traditional retail. However, with the exception of the temporary impact of the pandemic on travel and other leisure activities, activities like the use of e-commerce and working from home are not new to the world and to the people in East Africa. The technologies that have facilitated these changes have been available and were in use before the crisis. Working from home had been increasing in creative industries and other services. E-commerce companies such as Amazon, eBay and Jumia were giant corporations even before the pandemic. The use of electronic means of payment has been spearhead in many regions, notably in East Africa.
More than a year into the global pandemic, the coronavirus disease 2019 (COVID-19) pandemic has shown that health is central to everything we do on the planet. The profound impact of the virus and of the measures which have been necessary to contain it have worsened economic inequalities and social insecurities, and deepened challenges in our already under-pressure health systems on the continent. Lockdowns, although highly effective in the short term, cannot be a sustainable solution in the longer term given that more than 80 per cent of employment is estimated to be informal, and 85 per cent of the population live on less than USD 5.50 per day. The Africa Against COVID-19: Saving Lives, Economies and Livelihoods campaign is part of the African Union Commission’s answer to the challenge of fighting and containing the disease, while at the same time protecting African economies and livelihoods. Launched in August 2020 and driven by the Africa Centres for Disease Control and Prevention (Africa CDC), the campaign aims to drive a “whole of society” approach to fighting COVID-19 on the continent, combining the knowledge, expertise and capacities of our public and private sector, continental and global partners, especially in the realms of innovation and technology.
Africa: Global C’nity Urged to Support Africa’s Economic Recovery From Covid-19 (Ghanaian Times)
African leaders and finance ministers have called on global leaders and financial institutions to support the continent’s recovery measures from the economic impacts of the COVID-19 pandemic. They made the urgent call during the Conference of African Finance Ministers (COM), which was hosted by the United Nations (UN) Economic Commission for Africa (UNECA) on Tuesday, in the Ethiopian capital, Addis Ababa. Ethiopian Prime Minister, Abiy Ahmed, told the ministerial gathering that Africa demonstrated that it is not only capable of facing the crisis in the magnitude of the COVID-19 pandemic, but also ready to formulate and implement solutions. Ahmed, however, stressed that African countries must focus on digital transformation, climate-smart economy and the institutional framework for implementation and accountability as the continent responds and races to recover from the pandemic.
African economic recovery to vary across regions after Covid devastation (Business Day)
The Covid-19 pandemic had a devastating impact on many African economies, particularly those dependent on oil exports, tourism and resources. However, the continent’s GDP is expected to grow 3.4% in 2021 – after shrinking 2.1% in 2020 as a result of the pandemic – supported by a rebound in commodity prices and the resumption of tourism as pandemic-related restrictions are eased, according to the African Development Bank’s recently released African Economic Outlook 2021 report. The report points out that the pandemic’s economic impact varied across countries.
Africa Signs Historic Agreement with Johnson & Johnson for 400 Million Doses of COVID-19 Vaccines (Afreximbank)
In a historic COVID-19 vaccine procurement Agreement signed on 28 March 2021, all African Union Member States, through the African Vaccine Acquisition Trust (AVAT) set up in November 2020 under the African Union chairmanship of H.E President Cyril Ramaphosa, President of South Africa, will have access to 220 million doses of the Johnson & Johnson single-shot COVID-19 vaccine, with the potential to order an additional 180 million doses. Most of the supplies will be produced at the giant pharmaceutical manufacturing plant in South Africa operated by Aspen Pharma. The vaccines will be made available to African countries through the African Medical Supplies Platform (AMSP), over a period of 18 months.
COVID-19 exacerbates African women’s pre-existing challenges, vulnerabilities: AU (Xinhua)
The African Union (AU) on Saturday said the COVID-19 accentuates African women’s pre-existing challenges and vulnerabilities, especially during armed conflict and post-conflict situations. The statement was made by the Peace and Security Council of the 55-member pan-African bloc, which followed the council’s recent meeting under the theme “Women, Peace, Culture and Gender Inclusivity in Africa.” The council “acknowledges the debilitating impact of the novel coronavirus (COVID-19) pandemic on women’s livelihoods and economic autonomy, thereby accentuating their pre-existing challenges and vulnerabilities, especially during armed conflict and post-conflict situations,” the statement read. According to the AU, the impact of COVID-19 pandemic on African women’s pre-existing challenges and vulnerabilities is evidenced by human rights violations and abuses, including sexual and gender-based violence.
African Green Infrastructure Investment Bank announced by institutional investors (Africa.com)
The African Sovereign Wealth and Pension Fund Leaders Forum announced and presented its Pan African Green Infrastructure Investment Bank (AGIIB) initiative, during The fifty-third session of the Conference of African Ministers of Finance, Planning and Economic Development, hosted by the UN ECA. The AGIIB initiative recognises that the African green finance market, is highly fragmented representing a need to create a world class international pan African investment platform to mobilise this financing market and institutional capital at scale. The Forum’s AGIIB initiatives’ mission, is to create a specialist, independent and commercially run, pan African Green infrastructure Investment Bank, that is both green and profitable, with a pure green focus.
The AGIIB initially seeks to raise $3bn-$5bn from African institutional investors and governments and mobilize approximately $20bn from G7 and G20 investment partners.
ICC calls for coordination to support green investments in Africa
ICC has welcomed plans to create a pan African Green infrastructure Investment Bank. The announcement was made at last weekend’s African Sovereign Wealth and Pension Fund Leaders Forum as part of the 2021 Conference of African Ministers of Finance, Planning and Economic Development, hosted by the United Nations United Nations Economic Commission for Africa.
Recognising the highly fragmented nature of the African green finance market, the initiative aims to create a world-class, international pan African investment platform to mobilise the financing market and institutional capital at scale. ICC Secretary General John W.H. Denton AO joined African ministers of Finance and leading institutional investors from Africa and around the world at a conference side event on Sunday to discuss how best to support green investments in Africa, the implementation of the African Continental Free Trade Area and stronger economic recovery and resilience.
“The reality is that investors and investments in emerging economies, including in Africa, must also be central to the development of policy settings that will drive the green transition,” he said. “This recovery must emphasise sustainability and resilience with policy settings, public-private partnerships and incentives that allow all countries to share in the benefits from a green transition.”
Biden Should Support Green Development in Africa (Foreign Policy)
U.S. President Joe Biden wants the United States to take back up the mantle of global climate leadership. But that won’t be fully possible until his administration prioritizes critical partners: African nations. Africa’s urban centers are swelling, threatening more emissions, and half of the global population growth over the next two decades is expected to occur in the continent. It must be a global priority to strike a balance between this ongoing development and its climate impact. And with Washington’s help, the sustainability strides made in Africa over the next decade can serve as models for countries worldwide.
The Biden administration has an incredible opportunity to both cement its status as a leader on climate change and promote expansive green development across Africa. The United States can support its African partners by mobilizing U.S. development capital for local funds and prioritizing investments that help African economies become more resilient against climate change. In doing so, Washington must be careful not to charge into the continent on its own but to take a multilateral approach and engage with African governments, especially the larger economies of Nigeria, South Africa, Kenya, and Ivory Coast, to combat one of the greatest challenges facing the continent today. Each of these countries is a key anchor for the sub-regions of West, East, and southern Africa: Nigeria, for instance, will drive Africa’s population growth over the next several decades, and South Africa has the continent’s largest carbon emission footprint and a long history of fossil fuel dependency.
All countries must strike a balance between economic growth and increased emissions as they make commitments to fight climate change and reduce emissions in global agreements such as the Paris climate accord.
Africa has the lowest per capita carbon emissions globally, and the average American, for instance, emits 23 times more carbon than the average Nigerian. Even so, sub-Saharan African GDP is projected to grow by an average of 4 percent a year over the next four years, which will inevitably create more emissions. Ethically, Western policymakers cannot ask these countries to slow economic growth. However, the global community can work together to ensure Africa grows its economy with low-carbon infrastructure.
Global economy news
DG Okonjo-Iweala: Action on trade can help alleviate debt pressures for poorest countries (WTO)
Debt sustainability assessments and trade negotiations have something in common. They sound arcane and technical. But they are fundamentally about people: about people’s living standards, opportunities and aspirations. 20 years ago, we thought that the Highly Indebted Poor Countries and Multilateral Debt Relief initiatives would solve the debt problem. And they did, for a good two decades. But multiple crises, from the financial, economic and food crises of 2008-2009, to localized impacts of climate change, epidemics and now COVID-19, have left many poor countries and even emerging markets in debt distress, with little fiscal space to cope or to finance the SDGs post-COVID. So that is why we are here.
Trade and debt sustainability are closely linked. By closing off export opportunities and lowering commodity prices, COVID-19 has worsened debt dynamics for many developing countries. Action on trade can help alleviate debt pressures.
WTO Report Highlights Programmes to Strengthen Africa’s Trade Capacity (IISD)
A report by the World Trade Organization (WTO) examines how African countries can leverage the multilateral trading system (MTS) to promote economic transformation and drive a robust recovery from the COVID-19-induced downturn. Launched on 23 March 2021 at the virtual Aid for Trade Stocking Event, the publication titled, ‘Strengthening Africa’s Capacity to Trade,’ highlights the WTO’s involvement in Sub-Saharan Africa, which has been especially hard-hit by reductions in trade and economic activity as a result of the COVID-19 pandemic. Noting that open global trade has had positive effects for African industrialization and development, the report reviews WTO support for trade facilitation initiatives, the Aid for Trade initiative, the Trade Development Facility, and other policy mechanisms that enable increased trade capacity on the continent. The report summarizes global trade impacts caused by COVID-19, outlining specific impacts on and challenges for African countries, which, the report notes, have a higher prevalence of informal employment and reliance on services such as tourism and travel. Citing research from the World Bank, the authors note that COVID-19 may drive up to 40 million people into extreme poverty across the continent, and that at least five years of development gains may have been erased. While African trade in goods and services has gradually risen from 2005 to 2019, its global share has remained consistent at just 3% of global imports and exports.
Why Private Cellular Networks are Critical to Trade (IT News Africa)
Increases in global development and international populations have put bigger demands on trade and in turn, ports and shipping. To manage the boom, ports are improving operations and efficiency with automation, powered by 5G-ready private cellular networks.
In the past, ports operated independently from their peers and exhibited little international collaboration. With a globally standardised container, ports were able to form global container alliances, creating more scalable and automated processes. As smart, connected facilities document additional gains and efficiencies, port operators are increasingly interested in deploying new solutions. However, the high density of devices in a mature smart port presents new challenges and connectivity requirements to manage.
Ericsson’s report, “Connected Ports – A guide to making ports smarter with private cellular technology,” details the challenges that ports face. It examined how private cellular networks – typically 4G and 5G – will play a critical role in overcoming these by delivering high-speed connectivity, low latency, and strong performance in environments with high device density. Further, the report features a deep-dive analysis of five high-value use cases that illustrate how 5G-ready networks address specific pain points and offer a path to the future.
Delegations from the group of World Trade Organization (WTO) members negotiating new disciplines on domestic regulation in services provided an update on their efforts in early March, including their intention of finalizing the talks by the WTO’s Twelfth Ministerial Conference (MC12). These negotiations currently involve 63 of the WTO’s 164 Members. It is a spin-off of the multilateral negotiations under the WTO’s Working Party on Domestic Regulation, which involve the full membership and date back to the earliest days of the Organization.
During the virtual meeting of the services domestic regulation JSI held in March 2021, the WTO members involved examined how the disciplines under negotiation relate to those under recent regional trade agreements such as the Regional Comprehensive Economic Partnership (RCEP).
Some trade experts, such as Aileen Kwa, have previously warned that new WTO commitments on domestic regulation in services could interact with members’ commitments under international investment agreements, even if these commitments are made at the WTO and not in an investment treaty. Other questions that emerged during the Working Party negotiations included whether these new disciplines could constrain countries’ policy space at the domestic level.
WTO launches Trade for Peace Network in support of fragile and conflict-affected states
On 25 March, the Trade for Peace Network was launched at a meeting attended by ambassadors from WTO members and observers, heads of international organisations and experts involved in the WTO Trade for Peace initiative. The network will allow policymakers and experts to exchange ideas and identify concrete areas of collaboration, with the aim of leading to effective action in fragile and conflict-affected (FCA) states.
IFC Survey Reveals Extent of COVID-19 Pandemic’s Impact on Global Trade Finance
The COVID-19 pandemic is significantly affecting the capacity of banks in emerging markets to supply trade finance and their customers’ access to it, particularly in the poorest countries and fragile states, according to a new survey by the International Finance Corporation, a member of the World Bank Group. IFC’s 2020 Annual Issuing Bank Survey offers insights on the impact of COVID-19 on 163 banks participating in IFC’s Global Trade Finance Program (GTFP) in 63 countries.
Issa Faye, Director, Sector Economics and Development Impact, IFC said, “In the absence of public data on emerging market trade finance during the pandemic, this survey data is critical to understanding and addressing the challenges to closing the trade finance gap and rebuilding global trade after the crisis.”
IMF Paper Identifies Policies to Increase Inclusivity, Share Gains from Trade (IISD)
A working paper published by the International Monetary Fund (IMF) finds that although international trade is strongly associated with improvements in inclusive growth, rising inequality in many countries can be attributed to concurrent increases in trade competition. Based on a survey of “conflicting literature” on the relationship between trade and inclusive growth, the working paper concludes that “more can be done to foster more inclusive trade.” Noting that some studies show aggregate benefits from trade whereas others portray adverse impacts, the authors identify policies that can improve inclusivity from trade. The authors examine the relationship between international trade and inclusive growth, and describe international trade trends and the shifting country and industry composition of trade. Pointing to aggregate net benefits of trade, the paper cites empirical evidence showing that trade openness is positively correlated with per capita income, poverty reduction, economic growth, and employment, and that trade liberalization leads to lower prices and greater variety of consumer goods. From a gender perspective, the authors note improved economic outcomes and increased bargaining power for women.
Financing for Development in the Era of COVID-19 and Beyond (ICC)
In our first High Level Meeting – in May of last year – we urged governments not to forget the financing needs of small businesses who have been deeply affected by the economic impacts of COVID-19. More than two-thirds of a general allocation of SDRs will flow to G20 economies, but it is vulnerable countries – DSSI-eligible countries and small island developing states – that most need additional support.
Financing for Development in the Era of COVID-19 and Beyond Initiative (IMF)
First, the global economic outlook is improving—thanks to incredible efforts on vaccines, and unprecedented actions by governments and the international community. But prospects for recovery are diverging dangerously. Emerging and developing countries are at risk of languishing with weaker growth. Relative to pre-crisis projections and excluding China, this group is projected by 2022 to have cumulative per capita income losses as high as 20 percent versus 11 percent in advanced economies. Which brings me to my second point: We need a comprehensive approach to support vulnerable countries and people. It must include domestic measures to improve revenue collection, spending efficiency, and the business environment, as well as substantial international support, including grants and concessional lending. We will do our part through concessional lending.
IMF, World Bank Must Urgently Help Finance Developing Countries (Inter Press Service)
COVID-19 has set back the uneven progress of recent decades, directly causing more than two million deaths. The slowdown, due to the pandemic and policy responses, has pushed hundreds of millions more into poverty, hunger and worse, also deepening many inequalities.
COVID-19 has further set back progress towards the Sustainable Development Goals (SDGs). As progress was largely ‘not on track’ even before the pandemic, developing countries will need much support to mitigate the new setbacks, let alone get back on track.
Meanwhile, emerging market economies spent only 5%, and low-income countries (LICs) a paltry 1.3% by mid-2020. In 2020, increased spending, despite reduced revenue, raised fiscal deficits of emerging market and middle-income countries (MICs) to 10.3%, and of LICs to 5.7%.
In 2019, the International Monetary Fund (IMF) assessed half the LICs as being at high risk of, or already in debt distress – more than double the 2013 share. Debt in LICs rose to 65% of GDP in 2019 from 47% in 2010. Thus, LICs began the pandemic with more debt relative to government revenue, larger deficits and higher borrowing costs than high-income countries.
Developing economies have increasingly had to borrow on commercial terms in transnational financial markets as international public finance flows and access to concessional resources have declined.
Suez Canal: Stuck container ship set free and on the move (The Irish Times)
A huge container ship blocking Egypt’s Suez Canal for nearly a week has been set free and is on the move, a salvage firm has said.
The obstruction has created a massive traffic jam in the vital passage, holding up $9 billion each day in global trade and straining supply chains already burdened by the coronavirus pandemic. It remained unclear when traffic through the canal would return to normal. At least 367 vessels, carrying everything from crude oil to cattle, have piled up on either end of the canal, waiting to pass.
Data firm Refinitiv estimated it could take more than 10 days to clear the backlog of ships. Meanwhile, dozens of vessels have opted for the alternate route around the Cape of Good Hope at Africa’s southern tip, a 3,100-mile (4,989km) detour that adds some two weeks to journeys and costs ships hundreds of thousands of dollars in fuel and other costs.
Ship operators did not offer a timeline for the reopening of the crucial canal, which carries more than 10 per cent of global trade, including 7 per cent of the world’s oil. Over 19,000 ships passed through last year, according to canal authorities.
A global south organisation: A sine qua non for developing nations’ (IPPmedia)
Major developing countries and their leaders, who spearheaded the establishment and rise of the Non-Aligned Movement (NAM) and then of G77, maintained close interest in activities of the two groupings. They also believed in the importance of collective action of the Global South at the UN, and provided high level political drive and direction. This kind of involvement of leaders has not been common recently.
Following the launch of the New International Economic Order (NIEO) in the General Assembly, and of other joint NAM - G77 initiatives when the two groupings worked closely together, the B Group launched a drive to weaken and gradually end UNCTAD secretariat’s support for developing countries’ group actions arguing that this favouritism was contrary to the “neutral” posture international civil servants were required to assume in the North-South tug-of-war.
In the beginning, the G77 agenda was focussed on trade and development within purview of UNCTAD. This helped the Group evolve its positions on key items of interest to developing countries, i.e. commodities, manufactures, invisibles, development finance, transfer of technology, restrictive business practices, as well as to organize its work, to involve developing countries governments in Group action, and to mobilize expertise and human resources required.
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Country focus
Minister Patel calls for partnerships at BRICS South African Manufacturing Conference (the dtic)
South Africa must rebuild its manufacturing strength to be able to fully benefit from the opportunities in the BRICS markets. This needs to be done through deeper partnerships and careful use of both demand and supply-side measures.
This was said today at the BRICS Business Council meeting by Minister of Trade, Industry and Competition, Ebrahim Patel. “Over a number of years, manufacturing was seen as a sunset industry, a relic of an age that was passing, and policy-makers were urged to abandon efforts to support the industry and seek opportunity in other sectors of the economy. In the case of South Africa, the country rapidly opened its trade-exposed sectors to what was described as the bracing effects of global competition, but without supporting local firms to become stronger and more dynamic. The results were painful to see – we lost critical manufacturing capacity,” Minister Patel said.
South Africa must scale up infrastructure spending, emphasises BLSA’s Mavuso (Engineering News)
A report released by business organisation Business Leadership South Africa (BLSA) last week indicates that the country is failing to get infrastructure investment to play a critical role in driving the economy, CEO Busi Mavuso says in her weekly newsletter. “The facts on the ground are sobering: for the past five years infrastructure investment has been shrinking, driven primarily by a decline in investment by the public sector.
Kenya: Plans To Promote Trade In Africa (Kenya News Agency)
Trade Principal Secretary Amb. Johnson Weru has told international business partners to offer technical knowledge to local manufacturers in order to promote Kenyan export business. Speaking during the closing ceremony of Kenya Africa free Trade Area (AfCFTA) in Mombasa Friday, Weru noted that the recently signed partnership should make Kenyans reap big in terms of businesses and employment. “We want to see the benefits of this partnership in our local markets. Don’t give us money for workshops but money to acquire technology on how we can boost local manufacturing and exports,” he said.
Local airlines banned from take off again as Covid third wave hits (Business Daily)
The Kenya Civil Aviation Authority (KCAA) has directed the local airlines, with hubs in Nairobi, to ground flights from Monday noon after President Uhuru Kenyatta restricted movement in and out of the capital and four other counties, until further notice, to tame the spread of infections following a spike in cases.
One-stop border post to boost trade between Malawi and Zambia (Malawi Nyasa Times)
Malawi High Commissioner to Zambia Warren Gunda says the newly-constructed one-stop border-post at Mchinji/Mwami border will boost trade between the two countries.
“The project, although long overdue, will ease business transactions between the two neighbouring countries,” said Gunda. He cautioned the institutions manning the one-stop border-post to serve people crossing into either country professionally. Malawi Revenue Authority station manager Lucy Chikhawo said: “The one-stop border-post is unlike the current set-up where traders and travellers from Malawi and Zambia have to do repetitive paper work and engage with agencies such as Immigration from both countries separately.
Botswana: State of economic crunch to be revealed (Mmegi Online)
Statistics Botswana will release the fourth quarter GDP figures next week, which will in turn show the full year economic performance. Ahead of the official figures, forecasts by different authorities indicate the economy will be shown to have contracted by between 7.7 percent and 8.9 percent in 2020. Should the March 31 figures indicate an 8.9 percent fall, the economy will have recorded its worst contraction in history on an annual basis, higher than the -7.7 percent seen in 2009 during the global recession. The African Development Bank (AfDB) in a recent report, said the local economy’s performance in 2020 was expected to be severely impacted by COVID-19 lockdowns and movement restrictions.
“On the supply side, mining output declined significantly, mainly due to falling global demand for diamonds,” AfDB researchers said in the African Economic Outlook released recently. “The mining sector is now showing signs of recovery after the devastating 2020 COVID-19 pandemic affected both production and sales of minerals,” he told Parliament last week.
Ghana, Rwanda explore trade and investment opportunities to boost economies (Modern Ghana)
Ghana and Rwanda are considering trade and investment partnership opportunities to boost the economies of the two countries. This came to light at a virtual summit held to promote the exchange of goods and services between the two countries The targeted areas include Agriculture, Manufacturing and Industrial Services. The virtual summit was organized under the auspices of the Rwanda Development Board (RDB) and the Ghana Export Promotion Authority (GEPA).
The Deputy Chief Executive Officer of GEPA, Samuel Dentu said the business and investment summit would create the necessary interactions and deepen ties between the two countries. “Trade between Rwanda and Ghana is very low. It is imperative for our two countries to intensify our trade relations. Today is an engagement we hope will bring meaningful collaboration between Rwanda and Ghana,” he said.
Zambia’s e-commerce firms stay the course amid pandemic | UNCTAD
Zambia’s coronavirus lockdown shut down some more traditional businesses, but for e-commerce firms this was their chance to scale up operations. AfriDelivery, a food delivery service with big dreams of becoming a business-to-business (B2B) e-commerce platform, recorded 100% growth in annual terms in 2020. Afshon Wallace, the company’s founder and CEO, said it grew on two fronts – in business partners and customers – during the pandemic. “We managed to keep delivering, from shops, restaurants, supermarkets and pharmacies while also finding more businesses to partner with. It’s been a powerful period for us, even though the growth was related to the pandemic,” Mr. Wallace said.
Despite the opportunities, the pandemic also brought many challenges and unforeseen costs for e-commerce firms. Operational costs also increased due to measures taken to protect staff.
‘How Nigeria Can Key Into $3.4tn Projected Opportunities in AfCFTA’ (THISDAY)
The National Association of Nigeria Travel Agencies (NANTA) said it has unveiled plans to enable Nigeria benefit from the projected $3.4 trillion Gross Domestic Product (GDP)-rated Africa Continental Free Trade Area (AfCFTA) Initiative. NANTA said the country could benefit from the anticipated $3.4 trillion through the collaboration of the Nigerian aviation industry with four major African carriers: Kenya Airways, Egypt Air, Ethiopian Airlines and Rwanda Air. NANTA also said that an organised trade and tourism marketing among African nations facilitated by well-thought out aviation connectivity, African Union passport and synchronised visa regime, among nations under the AFCFTA deal, could change the economic narratives of the estimated 1.3 million population of African nations.
NANTA President, Mrs. Susan Akporiaye, told journalists in Lagos, that the trade pact had the potential of lifting out the vulnerable poor, particularly African women, who she said were about 70 per cent the informal sectors in Africa out of poverty.
Nigerian MSMEs Move to Improve Contribution to GDP (THISDAYLIVE)
Micro, Small and Medium Enterprises (MSMEs) in the country have moved for greater stake in the economy in a bid to improve their contribution to the country’s Gross Domestic Product (GDP). Speaking at the first strategic planning meeting of the Forum of Micro, Small and Medium Enterprises Business Membership Organisations (FOMSBON) in Abuja at the weekend, its Chairman, Board of Trustees (BoT), Dr. Albert Akinyemi observed that globally, MSMEs are regarded as the engine of economic growth. He, however, regretted that in Nigeria, the reverse was the case as the sub-sector is renowned only for its marginal contribution to the national economy, expressing the need to change the ugly trend.
“The organisation is aimed at institutionalising the MSMEs’ sub-sector in Nigeria as it has been done in in the developed economies of the world, where MSMEs as a discipline is being taught in the Universities, has a say in the parliament with a database for projection and planning with high priority for adequate research.”
Algeria: Plans to reopen land border crossings for entering foreign markets (APS)
The minister of Trade, Kamel Rezig, said Thursday in Algiers that his department is working in collaboration with other departments for the reopening of Algerian land border crossings for exporters, as part of the increase of non-hydrocarbon revenues. In 2020, revenues from barter trade with Mali and Niger were estimated at DZD70 billion, he said.
Ethiopia: Institute gearing up for rice import substitution scheme | Ethiopian Press Agency
The Ethiopian Institute of Agricultural Research (EIAR) accentuated that Ethiopia has to employ agricultural technology and mechanized farming to save 300 million USD spent each year for rice importation. Having a stay with the Ethiopian Press Agency (EPA), EIAR Researcher and National Rice Production Program Coordinator, Mulugeta Atnaf (PhD) said that the country has planned to substitute rice importation through increasing productivity and utilizing its abundant natural resources via employing various agricultural technologies and farming irrigation. He further said that the government is endeavoring to scale up productivity so as to substitute importing rice by beefing up the local product which is covering only 20 percent of the national demand at present.
Egypt attractive export market for SA sparkling wine under new free trade agreement | Citypress
The 3 000% import tariff on South African sparkling wine going to Egypt could disappear completely in five years under the new African Continental Free Trade Area (AfCFTA) agreement. Catherine Grant Makokera, director of the Tutwa Consulting Group and a trade policy expert, says this tariff reduction offers excellent opportunities for South African sparkling wine producers who want to export to the rest of Africa.
News from Africa and Africa’s international trade relations
AfCFTA: Free trade bloc can be a game changer for African people and business (AfDB)
Exploring strategies to deepen private sector participation in the implementation African Continental Free Trade Area (AfCFTA) was the highlight of a panel session during the 2021 WTO Aid-for-Trade Stocktaking meeting. The African Development Bank, the United Nations Industrial Development Organization (UNIDO) and International Trade Centre (ITC) organized the session held on Wednesday 24 March. “The success of the AfCFTA hinges on the ability of African firms to understand and capitalize on the trade related opportunities offered by the AfCFTA,” said Pamela Coke-Hamilton, International Trade Centre (ITC) Executive Director. The Aid-for-Trade initiative – which promotes the role of trade in development and supports building productive capacities– should focus on three priorities to boost the private sector’s role in AfCFTA: empowering businesses with skills and know-how; fostering multi-stakeholder partnerships to attract investment for greater value addition and enhancing market connections using e-commerce and digital platforms, Coke-Hamilton said.
African Continental Free Trade Area’s effect on oil & gas sector africa (ESI Africa)
Since the World Trade Organisation creation, the African Continental Free Trade Area is the largest free trade area globally, with 54 out of 55 nations of the African Union, many of which have already ratified the agreement. Estimations forecast that this free trade area will positively impact Africa’s Gross Domestic Product (GDP), resulting in welfare gains for citizens, facilitating trade growth and improving Africa’s trade deficit. While Africa has substantial natural resources, it has not received significant benefits from the extraction and export of such resources, particularly in oil and gas. Will AfCFTA have an impact on oil and gas industry exports? Oil and gas and mineral resources account for more than 75% of Africa’s exports and the continent’s potential for growth in oil and gas is significant. Estimations at the end of 2017 indicated that Africa has 487.7 tcf of proven gas reserves (7.1% of proven global reserves), while Africa’s proven oil reserves are in the region of 125 billion bbl.
African youth urged to tap into agriculture potential (The New Times)
Africa has the ability to produce enough food to feed its population and beyond, and develop agribusiness that would offer decent employment to youth. This observation was made by different pan-Africanists, calling for the development of the entire agriculture value chain. They were speaking on Saturday, March 27 during Pan-African Movement (PAM) Youth Commission’s Fourth Africa Expects Youth Series webinar that was held under the theme “Youth as Key Drivers to Sustainable Food Security.” They said that there is a need to make sound investment to develop agro-processing so as to add value to farm produce and effectively linking primary producers to industries.
Investing in social protection critical for Africa to build back better after COVID-19 (Africa Renewal)
African countries are experiencing an unprecedented economic downturn with a dramatic effect on the implementation of the Sustainable Development Goals. The continent has headed towards its first economic recession in 25 years, with a contraction of 1.6 per cent in the gross domestic product growth in 2020. In sub‑Saharan Africa, growth was projected to contract by 3.3 per cent in 2020, halting a decade of economic progress.
Lockdown measures and the economic recession have increased unemployment, poverty, food insecurity and inequality. Although some of the measures taken by African governments were temporary, they have shown the strength of resilience that social protection can help to support. Going forward, African countries should build on these temporary measures and strengthen social protection for the long-term.
Report: How Biden can ‘go big’ on Power Africa (Devex)
Power Africa was launched during former U.S. President Barack Obama’s administration with the aim of increasing access to electricity across the African continent through projects creating new connections and increasing generation capacity. The interagency initiative has continued to operate since – though some experts and former officials say it’s time for a bit of a reboot.
A new paper released this week outlines steps President Joe Biden’s administration can take to improve the initiative based at the U.S. Agency for International Development. They range from the relatively straightforward – for example, boosting the budget to $300 million annually and reappointing a National Security Council lead to co-chair the Power Africa working group – to the more complex, such as setting new goals around power reliability and costs.
Global economy
US considering supporting India, South Africa at WTO on TRIPS waiver: Report (Mint)
The White House is considering supporting a move by India and South Africa before the World Trade Organization on emergency temporary waiver of some Trade-Related Aspects of Intellectual Property Rights (TRIPS) rules so that greater supplies of Covid-19 vaccines, treatment, and diagnostic tests can be produced globally, a media report has said. Such a positive consideration by the Joe Biden administration comes after more than 60 lawmakers, mostly progressives, and a large number of rights and non-profit pharma bodies have approached the White House to support the move of India and South Africa along with hundreds of other nations that have urgently gone to the WTO seeking a time-limited waiver of the TRIPS agreement.
Trade tiffs, Covid jab export bans leave Africa vulnerable (Daily Monitor)
From fresh export bans to a fight over how best to use the global intellectual property (IP) system to tackle the Covid-19 pandemic, poor nations especially in Africa sit vulnerable especially at time when a third deadly wave of infections sweeps across the world. As the EU tighten Covid-19 vaccine export rules on the account of rising third wave of infections, several developed nations including the US, UK, Switzerland, Canada and their allies continue to block a proposal by developing countries to temporarily suspend the World Trade Organisation (WTO) Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to enable greatly increased, affordable supplies of Covid-19 vaccines, drugs, tests and equipment. The proposal by Indian and South Africa had suggested a waiver for all WTO members on the implementation, application and enforcement of certain provisions of the TRIPS Agreement in relation to the “prevention, containment or treatment” of Covid-19.
Guterres urges ‘decisive action’ to stave off debt crisis in developing world (Mirage News)
More than a year into the pandemic, the fiscal impacts of the crisis are triggering debt distress in a growing number of countries and is severely limiting the ability of many countries to invest in recovery and the Sustainable Development Goals (SDGs), including urgently needed climate action, Secretary-General António Guterres said. According to the policy brief, 42 economies borrowing from capital markets have experienced sovereign downgrades since the start of the pandemic, including 6 developed countries, 27 emerging market economies, and 9 least developed countries.
“Unless we take decisive action on debt and liquidity challenges, we risk another ‘lost decade’ for many developing countries, putting the achievement of the SDGs by the 2030 deadline definitively out of reach”, Mr. Guterres urged. The policy brief, entitled Liquidity and Debt Solutions to Invest in the SDGs, takes stock of the global policy response since April last year, assess remaining gaps and challenges for their implementation, as well as propose updates to the recommendations, presented last year, in light of developments over the past 12 months. The policy brief highlighted the need for debt relief to create space for investments in recovery and for achieving the SDGs.
Suez Canal ship partially refloated after huge effort to unblock trade route (NBC News)
The giant container ship that has blocked traffic in the Suez Canal for the last week, bringing a key global trade route to a standstill and capturing the world’s attention, was partially refloated early Monday. It was unclear when the vessel would be fully set free but the progress raised hopes the crucial waterway could soon be reopened after days of intense global salvage efforts.
Explained: What has caused a ‘traffic jam’ in the Suez Canal, hitting global trade? (The Indian Express)
The Suez Canal, a critical shipping artery that connects the Mediterranean and Red Seas through Egypt, has been blocked after a large cargo ship ran aground while passing through it on Tuesday, bringing traffic on the busy trade route to a halt. Egypt, which heavily depends on revenues from the canal, is now diverting ships to an older channel to minimise disruption to global trade. The blockage has already led to a long queue of vessels waiting to cross the canal.
A human-made waterway, the Suez Canal is one of the world’s most heavily used shipping lanes, carrying over 12% of world trade by volume. Built in 1869, it provides a major shortcut for ships moving between Europe and Asia, who before its construction had to sail around Africa to complete the same journey.
OECD reports to G7 on need to strengthen economic resilience against crises - OECD
Creating an emergency Rapid Response Forum to ensure global supplies of essential goods continue to flow during major international crises is one of a broad range of recommendations contained in a new OECD report to the G7 on building economic resilience. Fostering Economic Resilience in a World of Open and Integrated Markets says the devastating impacts of the Global Financial Crisis and now the COVID-19 pandemic will continue to leave lasting scars on our economies and societies. With the risk of other systemic threats on the horizon – starting with climate change but also spanning security threats, including cyber attacks – it is critical to learn the lessons of these and previous crises in order to tackle the vulnerabilities of our economic system, absorb shocks and engineer a swift rebound.
Ensuring the resilience of global supply chains of essential goods is crucial, the report says. An emergency Rapid Response Forum would provide G7 and other governments with a means of upstream policy co-ordination and, particularly, consultation ahead of the imposition of any trade restrictions. Such an initiative could also prepare timely co-operation on logistics, transportation, procurement, planning and communication.
OECD’s updated guidance on tax treaties and the impact of Covid-19 (The New Times)
The Covid-19 pandemic has impacted every part of our lives – tax treaties have not been immune to this impact. Earlier this year, the OECD issued updated guidance on the impact of the Covid-19 pandemic on tax treaties. This guidance is intended to provide further certainty to taxpayers as it reiterates most of its original guidance issued in April 2020, a few months after the pandemic broke out. A number of countries have also issued their own guidance to provide certainty to taxpayers who could be impacted by their own tax treaties or domestic tax legislation – most countries have followed the OECD guidance.
5G to contribute $700bn to global economy by 2030 (ITWeb)
The rollout of 5G is forecast to contribute $700 billion to the global economy by 2030, with a compound annual growth rate of 20%. This is according to the 5G Technology, Market and Forecasts 2019-2029 report, compiled by research firm IDTechEx, which examines 5G infrastructure and its impact on end-user industries. “The global rollout of 5G is a revolutionary rise that represents one of the largest emerging markets in the coming 10 years. Over the next 10 years, global telecom operators will invest $1.2 trillion to $1.5 trillion in 5G network rollouts, most of which will be for sub-6GHz 5G,” notes the report.
Tapping the Full Value of Data Will Save Lives and Accelerate Development – but not without Trust and Equity (World Bank)
As the world battles COVID-19, data’s value and potential impact, the opportunities it presents, and the challenges it faces, have become all the more evident. Data collected through mobile phones, such as call detail records (CDR) and GPS location data, help measure the effectiveness of policies to contain the coronavirus, making it possible to better target interventions and policy responses. But at the same time, countries are struggling to balance the benefits against the risk of misuse, underscoring the importance of a regulatory environment that builds trust in data systems.
To achieve the full benefits of data while addressing the risks, the report calls for a social contract that puts people at the center – one that protects people from harm, ensures equal access and representation, and creates value. To this end, the report emphasizes the need to build trust with robust infrastructure, policy, rules, and regulations around data, while prioritizing improved representation in, and access to, data for marginalized people.
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Country focus
South Africa's R1 trillion infrastructure drive gathers pace (TechCentral)
South Africa’s Infrastructure Fund, which is spearheading government efforts to secure R1-trillion of private investment, said it has identified a project pipeline and implementation could begin by year-end. Established in August, the fund is targeting investing R100-billion in infrastructure over the next decade — spending it anticipates will galvanise 10 times as much money from pension funds, banks and other institutions. National treasury allocated the fund R18-billion over the next three fiscal years in the February budget, with a first portion set to be tapped in May, according to Mohale Rakgate, the fund’s chief investment officer. “Government is really putting its money where its mouth is,” Rakgate said in an interview on Wednesday. “There is a sense that it can’t be business as usual.”
Price increases you can expect in South Africa over the next few months (BusinessTech)
Data from Statistics South Africa on Wednesday (24 March), showed that South Africa’s headline consumer price inflation slowed to 2.9% year-on-year in February from 3.2% in January. Month-on-month (m/m) inflation rose by 0.7% in February compared to 0.3% in January, the data showed. The main drivers behind February’s monthly increase were the fuel and medical insurance categories, while meat, housing, water and electricity, new vehicles and medical insurance contributed most to the y/y increase.
Rwanda needs financial support from foreign partners for post-pandemic economic recovery (CGTN Africa)
Rwandan experts have said that Rwanda needs financial support such as grants and soft loans to support its economic transformation, a priority in the government’s 7-year National Strategy for Transformation, in the aftermath of the COVID-19 pandemic. Rwandan economy like other economies in the world have been greatly affected by the COVID-19 pandemic as several economic activities came to standstill, most especially during lockdowns imposed to contain further spread of the virus, and sectors like tourism, transport, manufacturing, services and retail trade in the central African nation were disrupted by the pandemic, Rwandan economist Teddy Kaberuka told Xinhua. Growth of trade in goods and services declined due to restrictions in cross-border movements, with travel restrictions, suspension of air travel and hotels operation, said Kaberuka, adding that travel and tourism became one of the most affected sectors since the onset of the outbreak of the pandemic.
Imports rise widens Z’bar current account deficit (Dailynews)
CURRENT account deficit increased to 128.7 million US dollars in the year ending January from a deficit of 68.2 million US dollars in the corresponding period in 2020, largely attributed to rise in imports of goods, coupled with decrease in services receipt. The Bank of Tanzania (BoT) monthly economic review for February shows that the exports of goods and services amounted to 181.0 million US dollars in the year ending January compared with 229.4 million US dollars in the year ending January last year on account of dismal performance of services receipt in particular tourism.
On month-to-month basis, goods exports contracted to 0.5 million US dollars in January this year from 12.4 million US dollars in the previous month and 10.1 million US dollars in January last year largely due to decline in manufactured goods and other exports. The value of imports of goods and services amounted to 432.3 million US dollars in the year ending January this year from 374.8 million US dollars in the corresponding period last year.
No budget for standards body - Lesotho Times
THE implementation of the Lesotho Standards Institution (LSI) is set to be further delayed as the Ministry of Trade and Industry has not been allocated any funds for its operationalisation in the proposed 2021/22 financial year budget. Following the LSI’s launch by the Trade ministry last August, it was expected that the LSI would be allocated funds in the 2021/22 budget so that it would begin its work. The LSI was set up to develop and publish the national standards, testing and certification of various local products as well as to conduct trainings on standards related matters. The lack of a functional standards body is one of the biggest technical barriers deterring local producers from entering into export markets as well as the local formal markets.
Revitalizing the competitiveness of Lesotho’s export manufacturing sector (World Bank Blogs)
The transformative power of the export manufacturing sector in Lesotho has been apparent over last two decades. The textile and apparel industry grew from having just a handful of factories in the 1990s to becoming the largest private-sector employer, providing over 50,000 jobs (mostly to women), and directly and indirectly benefitting 13% of Lesotho’s population. Between 2001 and 2004, textile and apparel exports from the Lesotho to the US increased from $140 million to $450 million – a 220% increase.
The foreign investment that poured into Lesotho during this time facilitated structural transformation and boosted the long-term competitiveness of the sector, and despite losing some of its competitive edge in the early 2000s, Lesotho had developed the infrastructure and capabilities to tap into new markets. The manufacturing sector grew by 34% between 2014 and 2019, owing largely to a tripling of textile and apparel exports to South Africa, which has helped offset the decline in exports to the US. The textile and apparel sector is also a key employer of women, accounting for 80% of textile workers in Lesotho.
However, the COVID-19 (coronavirus) pandemic has adversely affected nearly every part of the economy, including textile and apparel sector. Lesotho is facing a tough fiscal outlook as the Southern African Customs Union (SACU) transfers, private investments and exports are declining.
Uganda’s coffee on upward trend (The East African)
Uganda’s coffee exports have defied coronavirus market disruptions for a straight second month recording growth in value and volume. The Uganda Coffee Development Authority last week released data that shows that the country’s coffee exports between March 2020 and February 2021 totalled 5.56 million bags worth $511.21 million, from 4.74 million bags worth $459.47 million the previous year, representing 17 per cent and 11 per cent increase in quantity and value respectively. In February, Uganda exported 563,763 60-kg bags of coffee worth $50.55 million. According to Minister of Agriculture Vincent Ssempijja, the recent growth in exports is attributed to increased production in the country’s coffee growing regions, and the streamlining of transport and logistics from the farms to the market despite travel restrictions.
Kenya exports to Africa markets hit 8-year high (Business Daily)
Kenya’s exports to key markets in Africa rose to an eight-year high in 2020, provisional international trade data show, defying delays at border points caused by efforts to stem the spread of the global coronavirus pandemic. Data collated by the Central Bank of Kenya (CBK) indicate value of goods that were sold to other countries on the continent amounted to Sh243.68 billion, a 9.07 percent growth over the previous year. The growth in value of trade between Kenya and Africa to the highest level since 2012 (Sh247.60 billion) was largely driven by demand in smaller exports destinations on the continent. Nairobi is championing a plan to remove trade barriers among African countries to grow movement of goods, services and labour through the African Continental Free Trade Area (AfCFTA) which aims to create a market of at least 1.2 billion.
Manufacturers urge Government to harmonize laws to drive competitiveness (Capital FM Kenya)
Manufacturers have urged Government to harmonize laws, policies and regulations, at the National and County levels, to drive the competitiveness of local industry. This was during the launch of the Regulatory Audit Report, 2020 that highlights regulatory challenges facing the business community across the country. Speaking during the launch, KAM Chair, Mucai Kunyiha explained that whilst regulations seek to create a level-playing field for businesses, regulatory overreach hinders the competitiveness of local industry. “At the national level, manufacturers are required to adhere to duplicating requirements, from different regulatory bodies, in addition to meeting numerous tax obligations. In the counties, we have to pay various fees, levies and charges. This drives up the cost of doing business in the country, thus reducing our competitiveness locally, regionally and even globally,” highlighted Kunyiha.
Kenya risks UK blacklist over open Tanzania border (Business Daily)
Kenya risks joining the UK’s ‘red list’ of countries from where travellers are subjected to mandatory stay at quarantine hotels due to the government’s reluctance to close the border with Tanzania. Britain’s Telegraph newspaper, quoting a source from the British High Commission in Nairobi, said that Kenya is likely to be added to the ‘red list’ by March 29. Kenya has been hesitant to restrict movement on the Tanzania border, fearing retaliation by Dar es Salam.
Potential AfCFTA exporters from Ghana urged to register for free (Modern Ghana)
Potential exporters seeking to do business under the African Continental Free Trade Area (AfCFTA), are being encouraged to register since registration is free. According to the Customs Division of the Ghana Revenue Authority (GRA-CD) exporters under (AfCFTA) are not required to pay any registration fees before being admitted. It said prospective exporters are supposed to download the registration form on the Integrated Customs Management System (ICUMS) online portal and provide the necessary information for registration.
AfCFTA Agreement: Riding Through Phases (Proshare Nigeria)
At the start of the sensitization programme to address both the private and public sector about the implications of the African Continental Free Trade Agreement (AfCFTA), the National Action Committee on AfCFTA has indicated plans to grow its intra-Africa export trade volume to US$50bn by 2035. According to a Punch news report, the Senior Special Assistant to the President and Secretary of the committee, Mr. Francis Anatogu, noted that the other objectives of the country are to establish a highly productive workforce, business-friendly environment, quality infrastructure, export development incentives and a strong national brand. Admittedly, he also identified the country’s existing challenges as downside risks to achieving its targets.
Nigeria To Establish Trade Remedies Authority To Tackle Fraudulent Invoicing (Leadership)
As part of its commitment to a successful implementation of the African Continental Free Trade (AfCFTA) Agreement, Nigerian Government said, efforts are ongoing to establish a trade remedies authority to enforce Rules of origin and tighten borders against fraudulent invoicing. The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, made the disclosure at Lagos State Government House while paying a call on Governor Babajide Sanwo-Olu as part of the Nationwide Sensitisation visit to Lagos by the National Action Committee on the AfCFTA. The Minister added that the Federal Government was committed to establishing Nigeria’s designated competent authority for administering the AfCFTA rules of origin as well as automating the process for managing exporter and product registration. Adebayo, said the National Action Committee on the AfCFTA, which he Chairs, is collaborating with the National Trade Facilitation Committee domiciled in the Federal Ministry of Industry, Trade and Investment to facilitate the execution of the regional trade facilitation roadmap.
The Gambia: NFTR members sensitised on ECOWAS Protocols (The Point)
The Network of Financial and Tax Reporters (NFTR) Gambia Chapter on Wednesday convened a day’s sensitisation for its members on ECOWAS protocols and its related treaties in respect to Inter-state Road Transit Barriers in the sub-region. Welcoming the participants, Abdoulie Nyockeh, president of NFTR -Gambia Chapter, said the forum would accord members the opportunity to have in-depth knowledge on what the ECOWAS protocol entails in order to effectively report on issues affecting cross-border trade.
News from Africa and Africa’s international trade relations
ATO: New project in Seychelles aims to facilitate trade with African countries (Seychelles News Agency)
Seychelles will soon start the implementation of the African Trade Observatory (ATO) project where local businesses can get more information about trade potential within the African continent, a top government official said on Tuesday. The principal secretary for Trade, Cillia Mangroo, told a press conference that the government will need to sign a memorandum of understanding (MOU) with the International Trade Centre (ITC) to be able to benefit from the project. Mangroo added that the cabinet of ministers endorsed the signing of the MOU last week. “This will assist government and the private sector to get more information on the different trade opportunities and to collect trade data from a different country. It is a pilot project but Seychelles wanted to come as one of the first countries so that we could benefit because it would also assist the private sector,” said Mangroo. Mangroo added that the Trade Department will be meeting with the private sector to know which country they would like to get more information on. “So, with this tool, it will provide them with more information on what they can buy or sell in different countries on the African continent and it will help us also to know what they would want from the market.”
SMEs to contribute US$2 trillion to GDP (The Herald)
SMALL to Medium Enterprises in Africa have the potential to contribute over US$2 trillion combined to the Gross Domestic Product under the African Continental Free Trade Area (AfCFTA), a standards and systems certification body for Southern Africa said yesterday. “If you look at the US$3,4 trillion and given the fact that in Africa, 70 percent and if not more of businesses fall under the SMEs sector, we are looking at over US$2 trillion GDP contribution coming from the SMEs,” he said. Mr Zuze said under the AfCFTA the SMEs sector has the potential to contribute the bulk of employment and skills development on the continent.
African countries are yet to see the light at the end of the tunnel of the COVID-19 crisis, but they must quickly initiate deep economic reforms to prepare for their future as returning to their pre-pandemic model is no longer impossible. While the pandemic has generated an urgent need for increased international support for Africa within the framework of a more modern form of multilateralism, the region will have to take charge of its own future by building a new kind of partnership with the private sector - both at the national and international level - so as to secure the financing needed for their economic recovery and mitigate the medium and long-term impact of the crisis. These were the main takeaways of the high-level roundtable “The Big Debate: Was the multilateral system prepared for the COVID-19 crisis and did the private sector do enough?” held during the ministerial segment of the Fifty-third session of the Conference of African Ministers of Finance, Planning and Economic Development on Monday March 22nd, 2021.
ECA and development partners urged to help Africa beat coronavirus (GhanaWeb)
African Ministers of Finance, Planning and Economic Development have called on the Economic Commission for Africa (ECA) and development partners to support efforts for a rebound of Africa’s economic growth post-COVID-19 pandemic. In a statement adopted at the end of the 53rd Session of the Economic Commission for Africa’s Conference of African Ministers of Finance, Planning and Economic Development, the Ministers commended the ECA and its partners for the platform to discuss several debt initiatives, such as the Group of 20 Debt Service Suspension Initiative (DSSI) and sovereign debt restructuring, to enhance member States’ access to finance to effectively respond to the pandemic. The ECA has been advocating for the extension of the DSSI to the end of 2021 to ensure countries have enough liquidity to respond and kick-start recovery by freeing up resources to pay for much-need vaccines and improve their buffers.
“Five of the six countries in debt distress are African least developed countries and two of the least developed countries have decided to seek debt restructuring under the common framework for debt treatments beyond the Debt Service Suspension Initiative of the Group of 20.”
Building Better Bridges: AfCFTA & New Africa (NewsReleaseWire.com)
As Africa’s continent-wide free trade area becomes open for business, The Made Man Foundation (TMM) is hosting a series of international gatherings to discuss ways to maximize new and unprecedented opportunities. The series of events are part of TMM’s “100 Days of Action” campaign focused on building a global coalition among African nations and the worldwide diaspora.
“The coming years are going to offer great potential for Africa,” says Dr. Ky Dele, international relations strategist, lead organizer and Founder of Made Man Foundation. “However, maximizing this potential requires engagement by the world community and we must start building those bridges now.” To that end, TMM is hosting “Building Better Bridges: AfCFTA and the New Africa” where representatives of African and Caribbean nations, U.S. political institutions, industry, and populations of African descent will discuss ways to increase cooperation.
The African Union (AU) has welcomed the Democratic Republic of Congo as the newest member of its African Peer Review Mechanism. This took place during the AU’s 30th Forum of Heads of State and Government on Thursday. The meeting included presentations on ongoing or imminent reviews of governance and other spheres in a number of countries, including Liberia, Sierra Leone, Zambia and Kenya. The African Peer Review Mechanism is a voluntary mechanism that enables AU members to provide and submit to evaluation at local, national and continental levels. In his opening remarks, South African President and African Peer Review Mechanism Chairperson Cyril Ramaphosa thanked the assembled heads of state for their political leadership. “I am certain that the mechanism will be a vital instrument for the achievement of Africa’s social and economic goals as enshrined in the AU’s Agenda 2063 and the UN’s Agenda 2030,” he said.
“Through our African Peer Review Mechanism institutional support project, the African Development Bank will continue to very strongly back efforts to enhance the efficiency, effectiveness and relevance of the African Peer Review Mechanism,” Adesina said.
African airlines are testing their own Covid-19 passport (Business Insider)
Kenya Airways and Ethiopian Airlines are testing a new digital Covid-19 passport system. The digital health passport allows travellers and airport authorities to authenticate Covid-19 test certificates prior to departure. The Trusted Travel Pass pilot programme was developed by the Africa Centre for Disease Control and Prevention (CDC), as digital health passports look likely to become a standard requirement for international travel. A global travel pass developed by the International Air Transport Association (IATA) is currently being trialled by several leading international airlines. The pass allows travellers to create a digital copy of their passports and receive verified information on country-specific travel requirements via an app. These requirements will inform what testing or vaccination procedures need to be followed prior to departure.
Africa urged to update vision for unlocking development from mineral resources (Engineering News)
Africa’s extractive industry can support the continent’s resilience and sustainable growth during and beyond the ongoing Covid-19 pandemic. This will, however, require appropriate social and economic development linkages that meet national and regional development objectives. Policy frameworks, such as the Africa Mining Vision (AMV), while not without its challenges, could play a key role in facilitating this. This was highlighted by several speakers during a recent virtual seminar titled Minerals and Africa’s Development: Challenges and Opportunities that was hosted by multilateral development finance institution the African Development Bank (AfDB). The AfDB’s African Natural Resources Centre and African Legal Support Facility were joined by the Nordic Africa Institute in hosting the seminar. The AMV is an Africa Union (AU) policy framework whose vision is the transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socioeconomic development.
On Thursday, MEPs adopted a wide-ranging strategy for a new EU-Africa partnership by 460 votes in favour, with 64 votes against and 163 abstentions. The strategy emphasises that human development must be at the centre of future EU-Africa relations, prioritising education, including teacher training, reducing early school leaving, and concentrate on the inclusion of girls. A future EU-Africa strategy should also aim to improve health care and national health systems.
MEPs underline that the EU-Africa relationship must “move beyond the donor-recipient relationship”. Instead, the EU and Africa should cooperate on equal terms, as part of an EU-Africa strategy that empowers African governments to achieve the UN Sustainable Development Goals (SDGs), curb climate change, and foster gender equality, among other targets. To achieve this, MEPs call for substantial funds to be earmarked for the SDGs in the upcoming external financial instrument NDICI - Global Europe.
COVAX vaccines delivered to 44 African countries: WHO (CGTN Africa)
44 African countries have received batches of COVID-19 vaccines through the World Health Organization’s COVAX facility, the agency said in Thursday, noting that 32 of those countries had already rolled out mas vaccinations. The WHO Africa region said in a statement that some 7.7 million doses had already been administered around the continent, though vaccine deliveries had begun slowing down. It urged for urgent supply of more vaccine doses as countries on the continent near exhaustion of their batches.
11 percent fewer goods imported from Africa (Statistics Netherlands)
Over the past fifty years, Dutch international goods trade - both imports and exports - has increased at a global level. Goods imports from Africa have not held pace with total imports. In the period 2011-2020, Africa’s share in Dutch imports stood at 3.1 percent. Whereas total Dutch goods imports fell by 7.8 percent last year, imports from Africa declined by 10.8 percent, resulting in a lower share in total goods imports, namely 2.6 percent.
The African share in total Dutch goods exports has stood at an average 3.2 percent over the past decade. Last year, exports to Africa were down by 10.4 percent, a stronger decline than total Dutch exports (-6.5 percent). Just as with imports, the contraction is primarily due to the coronavirus crisis as well as lower oil prices. Trade with Africa includes a relatively high share of oil and oil products.
Global economy
Pandemic threatens lost decade for development, UN report reveals (UN News)
The COVID-19 pandemic has reversed development gains for millions in poor countries, creating an even more sharply unequal world, according to a new UN report released on Thursday. “The global economy has experienced “the worst recession in 90 years, with the most vulnerable segments of societies disproportionately affected”, said the Inter-agency Task Force on Financing in their Financing for Sustainable Development Report 2021, pointing out that some 114 million jobs have been lost, and about 120 million people have been plunged back into extreme poverty.
Towards a robust, competitive trading environment (TT Newsday)
Trade facilitation is a fundamental driver for economic prosperity and sustainable development. Initiatives benefit both the private and public sectors as it increases administrative efficiency and reduces transactions costs associated with doing business. Ultimately, effective trade facilitation will propel economic development and a competitive business environment.
The TFA represents “the simplification and harmonisation of international trade procedures; that is the activities, practices and formalities involved in collecting, presenting, communicating, and processing data required for the movement of goods in international trade”. Broadly speaking, trade facilitation involves at the border measures, infrastructure relating to trade, simplification of trade procedures and documents, non-tariff measures, customs procedures and trade security.
However, since the onset of covid19, many efforts have regressed and businesses have suffered grave losses from inefficiencies as well as lengthy processing time of shipments.
The private sector needs are clear. Traders want transparent, accessible and predictable rules and procedures; harmonisation of legislation and regulations; a single access point for all public services and agencies; simple and efficient administrative processes; a fair system; and to be part of the policy making process.
Are We Witnessing the Start of a New Commodities Supercycle? (Reuters)
Commodity super cycles are decade-long periods in which commodities trade above their long-term price trend. Some market analysts are seeing signs that a new super cycle is beginning now, pointing to a weakening dollar and supportive central banks and fiscal stimulus geared towards infrastructure spending as well as renewable energy.
The last supercycle could be summarized in a word: BRIC. Brazil, Russia, India, and China represented 2.6 billion people in 2000, or about 40% of world population. The idea was that the BRIC countries were on a path of rapid industrialization, which would require an unprecedented amount of raw
Opinion: Debt Moratoria in the Next Pandemic: Be Prepared, and Be Fair (Inter Press Service)
One of the questions before policy makers amid this new crisis is whether to extend moratoria to distressed borrowers. In search of answers, they reflect on the world’s experience with the COVID-19 pandemic and whether moratoria were part of the solution. These policy makers conclude that they did some things right in 2020. Just days into COVID-19 lockdowns, bank regulators in more than 115 countries granted special permission for financial services providers (FSPs) to extend moratoria to millions of borrowers, especially those with small business and consumer loans. These moratoria were the next best thing to cash in the wallet for borrowers who had lost their jobs or seen their business revenue plummet.
For lower-income countries, whose governments could ill afford welfare payments, moratoria became an important form of economic relief. And by relaxing provisioning on paused loans, these special moratoria also shored up FSPs’ balance sheets and prevented panic in financial systems. Through the moratoria, the world’s economies put the shock-absorbing capacity of financial systems to good use. But these policy makers also see that moratoria could have worked better in some respects.
U.S. trade chief Tai talks WTO, China, climate in first calls with counterparts (Reuters)
New U.S. Trade Representative Katherine Tai pledged to rebuild alliances and actively engage on international trade on Monday in her first calls as the top U.S. trade negotiator with key partners and the World Trade Organization.
Starting her first full week on the job, Tai told WTO Director-General Ngozi Okonjo-Iweala that the Biden administration was committed to ensuring widespread access to COVID-19 vaccines, which the new WTO chief has made a priority. “The two exchanged views on the future of trade and their shared commitment to economic empowerment through a worker-centered trade policy,” USTR said in a statement, adding that they also discussed reform of the organization and its upcoming 12th Ministerial Meeting.
Tai, who was sworn in on Thursday, emphasized in calls to trade ministers the need to address climate change and racial equity in trade, and to work together to address concerns about forced labor and other issues related to China, her office said in a statement.
What the closure of the Suez Canal costs global trade (TRT World)
So what does such an extraordinary incident in the canal’s 150-year history mean for world trade? Global shipping routes have been massively disrupted after the Ever Given container ship found itself wedged sideways between the Suez Canal. Shipping was already under strain from the Covid-19 pandemic. The Suez Canal, which officially opened in November 1869 in Egypt, is one of the world’s most densely used shipping lanes in the world. It is also the longest one in the world, one without locks and that boasts a near-zero history of accidents.
IATA Launches EPIC to Enhance Digital Collaboration Across Air Cargo
The International Air Transport Association (IATA) today announced the launch of the IATA Enhanced Partner Identification and Connectivity (EPIC) platform to support the digitization of the global air cargo supply chain. EPIC simplifies the complex process of making digital connections across the air cargo value chain including enabling the efficient exchange of critical information such as messaging capabilities and identities. As the air cargo industry continues to digitalize, airlines, freight forwarders, ground handlers and customs authorities need to be able to securely work together digitally. This is a considerable challenge as today more than 40,000 freight forwarders exchange messages with more than 450 airlines, and 23 third party messaging service providers. In the absence of a tool for companies to exchange the information needed to make these business links, the process of digitization is essentially manual, slow and unduly complex.
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Country focus
Countdown for compliance with Protection of Personal Information Act (SAnews)
With less than 100 days for public and private bodies to be compliant with the Protection of Personal Information Act (POPIA), the Information Regulator of South Africa is accepting applications for the approval of codes of conduct. The IR is currently processing public comments received on the draft guidelines for registration of information officers.
South Africa’s updated climate pledge to be released for comment after Cabinet approves NDC draft (Engineering News)
South Africa’s Cabinet has approved the country’s updated draft Nationally Determined Contribution (NDC) in response to climate change, which will be released for public consultation next week. The updated NDC outlines South Africa’s target for limiting greenhouse gas emissions as required in line with the country’s status as a signatory to the Paris Agreement on climate change.
UK-Kenya Economic Partnership Agreement enters into force (GOV.UK)
UK Prime Minister’s Trade Envoy to Kenya, Theo Clarke and Cabinet Secretary for Industrialisation, Trade and Enterprise Development, Betty Maina, today exchanged ratification documents at an official ceremony to mark the entry into force of the UK-Kenya Economic Partnership Agreement. The event was witnessed by UK High Commissioner to Kenya Jane Marriott, Principal Secretary Johnson Weru among other officials from the UK and Kenya delegation. The deal which was signed in London by International Trade Minister Ranil Jayawardena and Cabinet Secretary for Trade, Betty Maina in December 2020, will ensure that all companies operating in Kenya can continue to benefit from duty-free access to the UK market. It will support jobs and economic development in Kenya, as well as avoid possible disruption to UK businesses who will be able to continue to import Kenyan products duty and quote free, such as fresh vegetables and flowers.
Kenya’s flower exports forecast to rise in 2021 as demand expands (CGTN Africa)
Kenya’s flower exports are projected to rise in 2021 as compared to last year due to expanding international demand, the industry said on Wednesday. Richard Fox, director of Kenya Flower Council (KFC) told Xinhua in Nairobi that the industry earned about 108.7 billion shillings (983 million U.S. dollars) in 2020. “We are expecting the flower sector to perform remarkably well in 2021 despite the challenge of the COVID-19 pandemic in our key export markets,” Fox said. Flowers are the largest source of foreign exchange earnings for the East African nation after tea with production in 2020 estimated at 140,000 tons of flowers.
Lamu Port Set To Start Operations By June (The Africa Logistics)
Lamu port is set to begin clearing Ethiopian cargo by 15 June this year, according to multi agency team steering the project, Kenya News Agency reports. Speaking after an inter-agency meeting in Garissa, LAPSSET chairperson Maj Gen (Rtd) Titus Ibui, said following the meeting between President Uhuru Kenyatta and Ethiopia Prime Minister Dr Abiy Ahmed late last year at official inspection tour to Lamu Port Project, the government is keen to complete the project and start clearing Ethiopian cargo from Lamu port.
“We have contractors on the ground in other areas to make sure by June we will have our first exports to Southern parts of Ethiopia, Hawassa Industrial Park and Adama Industrial Park which specialize in textile, motor vehicle assembly and food processing,” he added.
Ugandan traders claim ban on maize exports to Kenya is still on (Independent)
Kenyan authorities on March 11 announced the lifting of a ban on maize imports from Uganda and Tanzania but exporters claim the ban still stands. Sources at the Uganda Revenue Authority at Busia and Malaba Borders told The Independent that they are yet to record maize exports destined to the Kenyan market citing possible strict conditions imposed on exporters. The Kenyan government said all stakeholders dealing in maize imports require to be registered, consignments accompanied with certificate of conformity on aflatoxin levels and that traders have to issue details of their warehouses.
Zambia launches blueprint to enhance electricity generation (CGTN Africa)
Zambia on Wednesday launched an ambitious plan aimed at increasing electricity generation in the southern African nation. The Integrated Resource Plan will be implemented during a 30-year period with the support of the British government through a grant equivalent to 1.78 million U.S. dollars. Minister of Energy Mathew Nkhuwa, who launched the plan virtually, said the plan will be an approach to national power system that incorporates assessment of available energy resources and opportunities for demand. “This is important in order to meet the country’s electricity requirement while upholding national development objectives for social equity and environmental sustainability,” he said.
Governance and economic recovery support programme gets N$1.5 billion injection from AfDB (Namibia Economist)
A N$1.5 billion loan from African Development Bank (AfDB) to support governance, economic recovery locally was recently approved the Ministry of Finance announced on Wednesday. The request for the loan to finance the Namibia Governance and Economic Recovery Support Programme (GERSP) which was put through to the AfDB in June 2020, was unanimously approved by the Board of Directors of the AfDB on 17 March, Ministry of Finance spokesperson, Tonateni Shidhudhu “The approval follows the completion of the Economic Governance and Competitiveness Support Programme (2017-2020) which has achieved significant results in the areas of fiscal consolidation, public financial management and improvement in the business environment. However, the COVID-19 pandemic threatens to reverse some of those gains,” he said.
Govt looks to MTC listing to fund deficit (Namibian)
THE government is looking to funding part of its budget deficit this year with proceeds from the planned sale of its 49% stake in MTC, revealed the Ministry of Finance Fiscal Strategy 2021/22. According to the strategy, “the expected proceeds from the proposed divestment will be used to partly (50%) fund the budget deficit, While 50% will be ring-fenced for productive activities and be utilised in a manner that reaps long-term benefits for the country”.
The government is facing pressure to fund the N$15,9 billion projected budget deficit for the FY2021/22. This is because government revenue is estimated to decline by 6,1% or N$3,4 billion in 2021/22 compared to the previous financial year. The decline is mainly due to the reduction in Sacu receipts and company taxes. Sacu revenue declined by about 36% or N$7,5 billion from N$22,2 billion in 2020/21 to N$14,7 billion in 2021/22.
Botswana, alongside fellow Organisation of African, Caribbean and Pacific States (OACPS) member states, has endorsed and adopted the agreed text of the new partnership agreement between the bloc and the European Union (EU). This was said by Minister of International Affairs and Cooperation, Dr Lemogang Kwape during the Botswana-EU virtual political dialogue yesterday.
Through the agreement, the minister said, Botswana and other OACPS member states had reiterated their resolve to further enhance and entrench the long standing relations with Europe. "We emphasised the value of partnership and our wish for a mutually beneficial relationship," he stated. Dr Kwape said the agreed text held immense potential to lead the OACPS member states along the development path. He said the OACPS secretariat had released the draft partnership agreement noting that Botswana was among countries which participated in the cleaning up of its text.
NEPC asks Nigerian exportable goods producers, manufacturers to integrate mandatory, non-mandatory certification to enter global market (BusinessAMLive)
The Nigerian Export Promotion Council (NEPC), an agency for the promotion, development and diversification of exports from Nigeria, has asked producers and manufacturers of exportable products in the country to integrate mandatory and non-mandatory certification as an edge to penetrate the global export market. The call comes on the heels of woeful performance by Nigerian export companies at the global scene, accounting for a paltry 0.33 per cent of the global trade, and 19 per cent of African trade.
Stakeholders in the Nigerian maritime industry have called on the federal government to reactivate its plans to establish a national fleet so as to take advantage of the global trade valued at $19 trillion
They stated this at a one-day symposium themed: “The Establishment of a Nigerian Global Trading Fleet,” organised to mark the 70th birthday of shipping mogul and Chairman of Starzs Investments Company Limited, Greg Ogbeifun. In his opening address Ogbeifun said maritime transport was a huge opportunity for Nigeria if well harnessed. According to him, “The National Bureau of Statistics (NBS) figures showed that Nigeria’s total merchandise trade (import and export) for 2019 stood at N36.1 billion out of which the maritime transport component accounted for N33.7 billion (97 per cent). In spite of the huge potential, no Nigerian flagged vessel carried cargoes of the nation’s merchandise trade in the last 10 years. “Despite its contribution to Agriculture, energy, manufacturing, and other identified key sectors, the maritime sector is not recognised as a key economic driver, thus missing out on very vital interventions from the government, which other key sectors enjoy. This is contrary to international practice as done by other maritime nations.”
AfCFTA: Lagos ready to domesticate agreement - Sanwo-Olu (Nairametrics)
The Nigerian Senate has instructed the Financial Reporting Council of Nigeria to refund the sum of N94 million spent on an unoccupied building, and 64 vouchers to the Federation account.
This was disclosed by the Senate Public Accounts Committee on Wednesday. According to the committee, the Financial Reporting Council of Nigeria had paid N66 million as a two-year rent to secure an accommodation which it did not occupy throughout the period. The Committee, under the chairmanship of Senator Mathew Urhoghide, also faulted the agency’s use of 64 payment vouchers to allegedly divert N28 million.
Afreximbank, NEXIM to raise $50m for investment (The Nation Newspaper)
African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) have agreed to mobilise $50 million for local investment. The $50 million will come in form of project preparation funds for investments. A statement from NEXIM Bank on Wednesday said both development banks have entered into a Memorandum of Understanding (MoU) to establish “a Joint Project Preparation Fund that will provide early project preparation financing and technical support services to public and private sector entities operating in Nigeria’s trade sector.” Under the terms of the MoU, Afreximbank and NEXIM “will collaborate through the Joint Project Preparation Fund to unlock investments into sectors such as export manufacturing, agro-processing, solid minerals development and beneficiation services, as well as healthcare, Information and Communications Technology, and creative industries.”
‘Airlines only exempted from import duty, VAT’ -- Customs tackles Air Peace (The Cable)
The Nigeria Customs Service (NCS) says airlines are only exempted from paying duty and value-added tax (VAT) on imported aeroplanes and spare parts. In a statement on Tuesday, Joseph Attah, public relations officer of the service, said the airlines are required to pay other import charges. Attah explained that the exemption is in line with Section 39 of the 2020 finance act.
Nigeria’s Private Sector Looks Past the Pandemic
Though the health impact of the pandemic in Nigeria has been limited compared to many other countries, the economic toll from COVID-19 has been challenging. In the first quarter of 2020, the global economic slowdown triggered by the pandemic led to a collapse in oil and gas prices, which account for almost 90 percent of Nigeria’s exports and more than half of its fiscal revenues.Lockdowns and movement restrictions designed to slow the spread of COVID-19 hampered businesses, slowed down trade, and disrupted supply chains, causing significant uncertainty for Nigeria’s business community and investors. As a result, the 85 million Nigerians living in poverty are at risk, as are Nigeria’s 41 million small and medium enterprises, which account for three-quarters of employment. Even so, the longer-term prospects for economic growth in Nigeria are promising, according to many observers who cite the country’s population size (the largest in Africa), as well as rich natural resources, including fossil fuels, minerals, and arable land. Nigeria also boasts the continent’s highest nominal GDP. In some sectors, the crisis may even open up new opportunities, say experts, especially with the launch of the African Continental Free Trade Area (AfCFTA) agreement.
Trade Minister defends Gov’t 2021 budget, policies for AfCFTA implementation (Modern Ghana)
As Ghanaian businesses gear up to explore and harness opportunities within the African Continental Free Trade Area (AfCFTA) in the aftermath of the COVID-19 pandemic, the Minister for Trade and Industry, Alan Kwadwo Kyerematen, has defended programmes and policies of the Government of Ghana as indicated in the 2021 Budget and Economic Policy Statement.Addressing participants of this year’s edition of the Deloitte Ghana Economic Dialogue, held under the theme, "2021 Budget Statement: Making Ghana a Hub for AfCFTA," Mr. Kyerematen outlined the government of Ghana’s plans intended to promote business activities across the country which include the completion of airport projects in Kumasi and Tamale to boost air travel in the sub-region.
News from Africa and Africa’s international trade relations
Don’t let the free trade area become another failed African story, warn trade strategists | Fin24
Now trade strategists and economists are warning that if implementation takes too long, enthusiasm around the African Continental Free Trade Area (AfCFTA) is going to wear off, creating a risk that it might become another failed attempt at improving intra-African trade.
Light at the end of the tunnel for Africa’s economic recovery (By Chuku, Adamon Mukasa and Yaye Betty Camara) (Africanews)
Africa is set to recover from its worst recession in half a century. Real GDP is projected to grow by 3.4% in 2021 after contracting by an estimated 2.1% in 2020, mainly due to COVID-19 related disruptions, according to the African Development Bank’s (www.AfDB.org) recently released African Economic Outlook (AEO). The pandemic also caused deep scars in the financing and debt landscape of the continent that may linger on if not quickly addressed. At the launch of the AEO, Nobel laureate Joseph Stiglitz rightly explained how the COVID-19 pandemic caused both demand- and supply-side shocks in the continent. “It affected the demand for exports of African countries…but it also affected the willingness of people to work in some of the more exposed sectors and its effects were very disparate across different sectors.” Following Stiglitz’s train of thought, Africa’s projected recovery will be subject to an unusually high level of uncertainty and risks, as is also pointed out in the analyses of the AEO.
After contracting by 2.1 % in 2020, Africa’s real GDP is expected to grow by 3.4 % in 2021. This anticipated recovery from the worst recession in more than half a century would be underpinned by COVID-19 vaccinations and helped by a resumption of tourism, a rebound in commodity prices, and the lifting of restrictions aimed at stemming the spread of the virus. However, the picture is clouded by unusually high uncertainties. On the downside, the emergence of more contagious strains of COVID-19 could derail the recovery. If progress in deploying safe and effective treatment is slower than expected, governments would have to reinstate lockdown restrictions. A slow rebound in financial inflows, subdued commodity prices and tight financing conditions would suppress public finances and jeopardize the recovery. Social and geopolitical tensions in the region are also a major source of risk.
The United Nations Industrial Development Organization (UNIDO) has presented its Industrial Development Report (IDR) 2020: Industrializing in the digital age at a side event of the UN Economic Commission for Africa Conference of African Ministers of Finance, Planning, and Economic Development. The event provided the opportunity to discuss and reflect on the challenges and opportunities the COVID-19 pandemic presents for African countries in adopting advanced digital technologies, and in charting the future course of industrialization.
Internet connectivity and access to stable and affordable electricity are among the preconditions for African countries to industrialize in the digital age. Célestin Monga of Harvard University emphasized that “policymakers of African countries should promote the strategic selection of competitive industries based on their comparative advantages, such as in labour-intensive and export-oriented light industries, to achieve inclusive and sustainable industrial development,” and asked, “How did Asian countries advance their manufacturing between the 1950s and 90s? This is a highly relevant experience for African countries.”
Africa’s Finance, Development and Planning Ministers on Tuesday called for a swift, bold and positive response from international financial institutions on Special Drawing Rights (SDRs) in the range of 500 billion to 650 billion to arrest the devastating impacts of the ongoing coronavirus pandemic. In a communique at the end of their two-day meeting in Addis Ababa, the ministers called for more liquidity to be availed through a new allocation of the SDRs and reallocation of unused SDR, and an increase in resources from the international financial institutions to support African and other developing countries fight COVID-19 better. They also called for an extension of the G20 Debt Service Suspension Initiative (DSSI) to at least the end of 2021, and possibly the end of 2022, and expanding its scope to address the liquidity needs of middle-income countries to pre-empt the larger threat of insolvency, particularly for countries with market access and relatively strong fundamentals. The DSSI has postponed an estimated $5.1 billion in debt service payments by eligible African countries following advocacy by the ECA, the Finance Ministers and others, providing much-needed liquidity to save lives and rebuild livelihoods.
Russian businesses in the Moscow region should take advantage of investment opportunities in the Southern African Development Community (SADC), the Executive Secretary of SADC, Her Excellency Dr Stergomena Lawrence Tax, has said. Lucrative opportunities exist in SADC’s value chains such as agro-processing, energy, pharmaceuticals, mineral beneficiation and manufacturing of various commodities for domestic and export markets. This is at the back of the Region’s secure, peaceful and stable investment environment. Dr Tax made the call on 19th March 2021 during the Moscow-Africa 2021 conference held under the theme, “Directions and Opportunities for Industrial and Investment Cooperation”, a platform initiated by the Department of Investment and Industrial Policy of Moscow to identify the directions and possibilities of industrial and investment cooperation between Russian and sub-Saharan African companies.
SADC wants stronger ties with AU (The Southern Times)
The Southern African Development Community (SADC) remains committed to working with the African Union Commission (AUC) and continues to feed into continental integration agenda in terms of peace and security and governance architecture, SADC Executive Secretary Dr Stergomena Tax has said. Dr Tax said this during a virtual courtesy call on March 19 by Ambassador Bankoie Adeoye, the new AU Commissioner for Political Affairs, Peace and Security. The SADC Secretariat head also indicated that while the bloc continued to co-operate with the AU Commission and was highly appreciative of the support rendered to the region, there was need to create synergies with regional economic communities (RECs) to avoid overlaps on planned activities. She cited the need to adhere to the principle of subsidiarity. To this effect, it was agreed to convene a technical meeting to propose concrete areas of cooperation to be implemented in a coordinated manner.
Under Biden, There’s a New Africa Policy (Foreign Policy)
From expletive-laden rants at the start of his presidency to allowing corruption to run rampant as one of his last foreign-policy acts, former U.S. President Donald Trump’s relationship with the African continent was characterized by detachment. While he hosted leaders considered important to his administration’s security ambitions, Trump himself never set foot on the continent. A new administration with a new foreign-policy strategy under President Joe Biden is already showing a marked shift toward African priorities.
Africa Brexit bonanza: UK eyes huge £5bn trade links – British officials vow closer ties (Daily Express)
The UK’s Trade Commissioner to Africa pledged Britain’s commitment to investing in Africa and forging closer trade ties. Emma Wade-Smith said the UK had a “commitment to the continent” stressing Prime Minister Boris Johnson wanted the UK to be a “major economic partner in Africa.” The British diplomat said seeking to develop the African Continental Free Trade Area Agreement (AfCFTA) which provides access to a market with 3.5 billion people.
Trade officials are keen to close the gap and roll over or secure trade deals with as many of the 54 African countries as possible after securing recent argeements with Cameroon and Ghana.
The UK-Africa trade relationship | Hogan Lovells - JDSupra
With the development of the African Continental Free Trade Area Agreement (AfCFTA), how do you see the UK-Africa relationship developing?... Emma Wade-Smith OBE – The UK welcomed the start of trading under African Continental Free Trade Area Agreement (AfCFTA) terms on 1 January.
European Investment Bank to host 30 days of dialogue on EU-Africa green transition (Science Business)
The Portuguese Presidency of the Council of the European Union, in partnership with the European Investment Bank (EIB), will be hosting 30-days of dialogue on green transition and green investment between African and European partners. Events and virtual meetings will take place across Africa.
Covid-19: African nations urged to adopt digital solutions to recover economically (Kenya Broadcasting Corporation)
African nations have been urged to adopt digital solutions towards achieving economic recovery from impacts of the COVID-19 pandemic. Speaking during a webinar organized by Konza Technopolis Development Authority (KoTDA), International Association of Science Parks and Areas (IASP) Africa Division President and CEO of Abuja Technology Village FZ Co., Nigeria, Ms. Hauwa Yabani emphasized the need for utilizing technology and innovation in search for solutions to challenges facing the continent. “The pandemic showed us the importance of digitally enhanced solutions in mitigating crisis as a way of living especially for a continent with a population of over 1.3 billion. Digital transformation presents an opportunity for Africa to provide value in new ways thereby leapfrogging the continent’s developing trajectories and accelerating its social and economic advancements,” said Ms. Yabani.
Global economy
New WTO report examines ways of increasing Africa’s trading capacities
At the launch of the report, Director-General Ngozi Okonjo-Iweala said: “This publication is an excellent starting point for efforts to ensure that Africa’s economic response to COVID-19 makes full use of the potential of trade to drive recovery, growth and job creation. Aid for Trade has an important role to play in enabling African countries to achieve strong and sustained recoveries that leave no one behind.” With an estimated negative growth rate of -8.0 per cent in 2020, Sub-Saharan Africa has been hit hard by the downturn in trade and economic activity caused by the COVID-19 crisis, the report finds. Efforts made by the WTO to revive the progress made before the crisis and help minimize its effects include technical assistance and capacity-building activities for developing countries and least-developed countries, the WTO-led Aid for Trade initiative and support for implementing the Trade Facilitation Agreement.
Post-COVID-19 recovery must not leave anyone behind — DG Okonjo-Iweala at Aid for Trade event
The global trade community must act swiftly to mitigate the severe impact of the COVID-19 crisis on developing countries, and in particular least-developed countries (LDCs), the speakers highlighted at the Aid for Trade Stocktaking Event’s plenary session, as LDCs have been hit the hardest by trade and economic disruptions arising from the pandemic. From the supply of health products such as masks to the approval and roll-out of vaccines, the multilateral trading system plays a crucial role in ensuring that no one is left behind in the post-pandemic trade and economic recovery process. “Today the pandemic is reversing hard-won development gains, adding to the problems facing the most vulnerable,” DG Okonjo-Iweala said. “The post-COVID recovery must not leave anyone, or any country, behind. The first step towards this goal must be a rapid, global vaccine roll-out that ends the pandemic. We need more trade cooperation to address supply bottlenecks, lower regulatory hurdles, facilitate trade, and finance vaccine purchases. Keeping global markets open is essential for a strong and sustained recovery. The organisations and Members that have cooperated on the Aid for Trade initiative have made a huge difference in peoples’ lives. Working together now to invest in the recovery of trading partners is not just the right thing to do. Building back a greener, more equitable, more prosperous global economy is a matter of economic self-interest for all countries.”
New Insight briefs reveal how COVID-19 will impact Aid for Trade - and how LDCs can take advantage of innovating financing to support trade (Trade for Development News)
The COVID-19 pandemic has impacted trade in the world’s least developed countries (LDCs) in a myriad of ways – from the complete collapse of tourism in some LDCs, to the rise of e-commerce opportunities in others. It’s also expected to impact donor country aid budgets for many years to come. As members and partners of the World Trade Organization (WTO) meet this week to assess these trade impacts and chart a way forward, the Enhanced Integrated Framework (EIF) has been buried deep in thousands of pages of reports, charts and data to find pearls of wisdom that can help LDCs find innovative ways to continue financing trade. Launching today, these Trade Funding Insights clearly and concisely outline how COVID-19 is currently projected to impact official development assistance (ODA) and Aid for Trade, as well as case studies and concrete steps that LDC Ministries of Trade, government donors, Investment Promotion Agencies and the private sector can take to harness opportunities offered by impact investment, blended finance and foreign direct investment. Some of the most interesting findings include:
Brics Manufacturing Conference ready for trade facilitation (Engineering News)
The Brazil, Russia, India, China and South Africa (Brics) Manufacturing Conference, which kicks off in Johannesburg on Friday, will give local manufacturers the opportunity to reflect on how they can grow using new technologies. Organised by the Brics Manufacturing Working Group (MWG), the conference, which takes place at the Sandton Conference Centre, aims to help local manufacturers to leverage off South Africa’s membership of Brics by taking advantage of the opportunities presented by the grouping.
Stuck Suez Canal container ship disrupts global commodities trade: sources (S&P Global)
The overnight running aground of a mega container ship that has blocked maritime traffic on both sides of the Suez Canal is delaying ship movement and will disturb trade flows in the near term, several market sources told S&P Global Platts March 24.
Market participants are already reworking itineraries for commodities worth billions of dollars, which could involve significant demurrage costs, they told Platts.
Suez Canal is one of the world’s busiest waterways and even the slightest delay in traffic can result in congestion and disturb the delivery of goods and commodities on both sides of the Canal.
Pandemic drives 65% growth in mobile money transactions value (Engineering News)
The number of registered mobile money accounts increased 12.7% to 1.21-billion in 2020 – double the previous forecast – owing to a dramatic acceleration in mobile transactions during the Covid-19 pandemic as lockdown restrictions limited access to cash and financial institutions. The latest GSMA ‘State of the Industry Report on Mobile Money’ reveals that transaction values also grew across the board as more money circulated and was cashed-in and cashed-out than ever before.
Standard Chartered Launches New Proposition to Support Sustainable Supply Chains (Business Wire)
Standard Chartered is launching sustainable trade finance solutions across Asia, Africa and the Middle East, Europe and the Americas. The Bank’s new Sustainable Trade Finance Proposition is designed to help companies implement more sustainable practices across their ecosystems and build more resilient supply chains.
The new Sustainable Trade Finance Proposition allows the Bank to support the following: Sustainable goods: Working with customers and partners to finance underlying goods that meet agreed sustainability standards. Sustainable suppliers: Supporting trade for suppliers who meet acceptable thresholds against ESG ratings or metrics such as gender equality, responsible sourcing criteria and water use. Sustainable end-use: Focusing on trade financing in sustainable industries including renewable energy, energy efficiency, the blue economy, sustainable infrastructure, water management and clean transportation. Transition industries: Helping industries transition and reduce their carbon footprint by offering trade financing that recognises efforts to help reduce emissions.
EU tightens COVID-19 vaccine export rules (CGTN Africa)
The European Commission presented on Wednesday a revised version of its export transparency mechanism for COVID-19 vaccines, with Executive Vice President Valdis Dombrovskis claiming that it does not constitute an export ban. The mechanism takes aim at vaccines produced in European Union (EU)-based facilities of pharmaceutical companies that are bound by an advance purchase agreement (APA) with the EU. The new version includes two new criteria — reciprocity and proportionality — for assessing whether these vaccines can be exported to non-EU countries, according to Dombrovskis.
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Country focus
Saving SA’s poultry industry (SAnews)
For the last decade, poultry production in South Africa has been static - despite the fact that consumption has continued to grow. This has happened because imported poultry has come into the economy in large quantities, displacing South African meat, especially at the lower end. In an effort to address threats to the local production of poultry, government, together with a number of stakeholders in the industry, including poultry producers, farmers, processors, exporters, importers and organised labour, developed the Poultry Master Plan.
Resolving energy challenges critical to economic recovery (SAnews)
President Cyril Ramaphosa says resolving the current energy challenges is fundamental to South Africa’s economic recovery. “That is why we are making every effort to bring new power generation capacity online in the shortest possible time,” President Ramaphosa said. In his weekly newsletter, President Ramaphosa said the country’s electricity shortages have been a problem for more than a decade. He said economic activity has been severely interrupted with power cuts affecting smaller businesses and large industries alike.
African Free Trade agreement seen as a ‘gift from the gods’ (Eyewitness News)
Business organisations are excited about the African Continental Free Trade Area agreement, which is being implemented this year. The National African Federation of Chambers of Commerce (Nafcoc) and the Small Business Institute (SBI) said it presented many opportunities for SMMEs to interact across the continent and to trade freely without the burden of tariffs and heavy customs duties.
“Our view is that Africa has not been trading with itself but has been trading with Europe, Asia, America and other continents,” he said. “We are looking forward to creating a space wherein minerals and commodities in Africa can be beneficiated within Africa instead of taking minerals out of Africa and sending them to other continents for processing, only for them to be sold back to us.”
“What’s possible is very exciting – 90% of goods being traded tariff-free has the potential of catapulting the continent’s industrialisation,” he said. However, Dludlu cautioned against “non-qualifying economic operators” that were not part of the deal taking advantage of the pact.
Trade Lobby and Mastercard give small businesses Sh400m loans (Business Daily)
About 14,000 small enterprises impacted by Covid -19 has received Sh400 million in interest-free loans from a trade lobby and Mastercard Foundation to help rebuild their ventures. The Kenya National Chamber of Commerce and Industry (KNCCI) chief executive Samuel Matonda said Monday the funds earmarked for youth and women-led small businesses were disbursed between last October to March. Micro and Small Enterprises (MSMEs) in the informal sector mainly dealing in agricultures, retail, healthcare and manufacturing sectors constituted the larger share of beneficiaries of the credit facility rolled out last October.
Kenya now eyes UK talks on free trade in services (Business Daily)
Kenya has set its sights on fresh talks with the United Kingdom on free trade in services such as money transfers after the pact ensuring continuity in tax- and quota-free trade in goods was enforced yesterday. Industrialisation and Trade secretary Betty Maina said Nairobi would engage London with a view to facilitating seamless dealings in key services which include financial transactions as well as investment flows. The two countries on Monday exchanged instruments of the UK-Kenya Economic Partnership Agreement (EPA), which was earlier in the month approved by respective parliaments, marking the official ratification of the pact.
“The agreement we have signed is for trade in goods, but we look forward, as we indicated at the beginning of the negotiations, to also engage in other framework for trade in services, promotion of investments, and deepening economic and trade cooperation with United Kingdom,” Ms Maina said yesterday in Nairobi.
Kenya-UK trade deal: Why the devil is in the details (The Standard)
After a long and bruising battle, the United Kingdom finally got its wish to leave the European Union. Following the exit, Britain had to find alternative trade partnerships with other regions. One such deal was with the East African Community (EAC) countries, with Kenya at the forefront of the Economic Partnership Agreement (EPA). Despite initial opposition, the agreement was signed on December 8, last year. It was later ratified by the parliaments of the two countries.
Treasury reduces duty-free sugar import quota by 30pc (Business Daily)
The Treasury has capped the amount of sugar that can be imported duty-free to Kenya from the Common Market for Eastern and Southern Africa (Comesa) at 210,163 tonnes as the government moves to tame influx of the cheap sweetener following an outcry from farmers. Treasury Cabinet Secretary Ukur Yatani said in a Kenya Gazette notice that imports which exceed the set limit will attract 100 per cent duty, in what comes as good news to farmers and local sugar processors. Kenya is normally allowed to ship in 300,000 tonnes of sugar annually from the Comesa member states to avoid dumping of cheap commodity into the country. Mr Yatani said firms enjoying the duty free status will have to meet the rules of origin of Comesa.
ECA supporting Kenya to organize its AfCFTA implementation strategy review meeting
The Kenya State Department for Trade, in collaboration with the Economic Commission for Africa (ECA), is organizing a four-day meeting from 23 to 26 March to review the country’s African Continental Free Trade Area (AfCFTA) implementation strategy. About 50 experts, including government officials, trade economists, academia, development partners, youth and women’s representatives, are expected to participate in the meeting holding in Mombasa, Kenya.
Kenya is one of the 36 countries that have ratified the agreement, which provides an opportunity for Africa to create the world’s largest free trade area with the potential to unite more than 1.2 billion people in a $2.5 trillion economic bloc and usher in a new era of development.
“Vaccine friendship’: India offers Kenya free doses of Covid vaccine (Emergency-Live)
India is once again the protagonist of a beautiful gesture of solidarity in the fight against the Covid pandemic: in recent weeks it has offered and donated free doses to many developing countries, the latest of which is Kenya. The initiative was called vaccine Maitri (‘Hindi for vaccine friendship’) by Prime Minister Narendra Modi’s government.
Speaking to The Nation on Sunday, Kenya’s Vaccine Advisory Task Force chairperson Dr. Willis Akhwale said India’s offer involves collaboration in technical exchange, virtual training, and sharing of notes and experiences. “We will be sharing a lot with them in terms of discussing what they are going through and their investigations of the AstraZeneca vaccine, exchanging reports, and learning how they are monitoring the impact,” Dr. Akhweale said.
Kagame: Now is the time to scale up investments to ensure digital equity (The New Times)
President Paul Kagame on Monday, March 22, said that there is need to forge new partnerships for universal broadband and scale up the investments required to bridge the digital divide. President Kagame made the remarks while addressing the 2021 spring meeting of the Broadband Commission for Sustainable Development, which he co-chaired with Carlos Slim, a Mexican billionaire.
In his remarks, the President noted that broadband usage has exploded during the ongoing Covid-19 pandemic, amidst restricted movement in different parts of the world. However, he pointed out that as life increasingly shifts online, the contrast between the digital haves and have-nots is even more blatant.
President Kagame Lobbying For African Medicines Agency (Taarifa Rwanda)
As Covid-19 pandemic continues its protracted pounding across the globe, Africa is reminded it is the time for solidarity owing to missing out in the scramble for vaccines. President Paul Kagame is now pushing for a swift ratification of a treaty establishing the African Medicines Agency. Ibrahim Mayaki, Nepad Chief Executive Officer flew to Rwanda’s capital Kigali to meet President Kagame from March 13-15 to take stock of the institution’s activities and its priorities for the coming months. Item 1 on the agenda: accelerating ratifications of the treaty establishing the African Medicines Agency, under the aegis of the AU. “Quality of Governance is not always linked to “level of development “but to leadership ;an example is Rwanda that had a roll out implementation plan of vaccination before receiving the vaccines. Some “developed” countries have surpluses of vaccines and face chaotic implementation,” Mayaki said on Monday.
Botswana’s relations with China continue to deepen (China Daily)
Diplomatic relations between China and Botswana have grown significantly this year, with the African nation becoming the 46th country on the continent to sign a memorandum of understanding on the China-proposed Belt and Road Initiative. Botswana also was one of the five African countries that State Councilor and Foreign Minister Wang Yi visited in January.
In addition, with a focus on infrastructure construction, China will help promote connectivity in Botswana and support the African Continental Free Trade Area, thus boosting trade relations with Botswana, Zhao said. As Botswana places great emphasis on growing its digital economy, Zhao
Zim leather sector gets US$15m to add value (The Herald)
Zimbabwe has received US$15 million funding from the Common Market for Eastern and Southern Africa (Comesa) to capacitate industrial operations under the leather sector value chain. Industry and Commerce Minister, Dr Sekai Nzenza, has said Bulawayo would play a leading role in implementation of leather transformation projects, as she confirmed receipt of the critical funding from the 21-member regional trading block, to which Zimbabwe is a member. Revitalising the leather sector is one of Comesa’s flagship projects, which has seen the bloc establishing a specialised unit, the Africa Leather and Leather Products Institute (ALLPI).
Kazungula rail bridge brings hope – Zambia Daily Mail
The Kazungula Bridge Project is a multi-national border crossing project located at the confluence of the Zambezi and Chobe rivers about 65km upstream the Victoria Falls. It is uniquely located where four international boundaries meet, namely Zambia, Zimbabwe, Botswana and Namibia. The project lies on the border between the two countries on the North-South Corridor (NSC), a vital trade route in the Southern African Development Community (SADC) for countries such as Zambia and Botswana. “It will be a lot of relief to many of our traders – no time wasting, also connectivity will be faster for traders willing to travel to other countries, especially Southern African Development Community and Common Market for Eastern and Southern Africa (COMESA) countries,” Cross Border Traders Association Livingstone branch chairperson Happy Mafumu says.
Ghana Signs a $1.6Billion Trade Deal with the United Kingdom (Lexology)
Ghana signed a new Trade Partnership Agreement with the United Kingdom worth $1.6Billion. The Minister for Trade, Hon. Alan Kyeremanteng disclosed that the Agreement will take the form of the Economic Partnership Agreement signed between the European Union and ECOWAS. The Agreement is expected to provide duty-free and quota-free access for Ghanaian goods to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market. This will enable businesses trading within the Ghana-UK markets to capitalize on the exchange of goods and services at competitive rates.
Both governments expect the Agreement to help boost confidence amongst traders and to strengthen the existing trade and economic relationship between Ghana and the UK.
Nigeria Plans $50bn Intra-Africa Exports - AfCTA — Economic Confidential
The National Action Committee on African Continental Free Trade Area Agreement has disclosed plans to achieve economically viable communities in Nigeria by growing its intra-Africa export trade volume to $50bn by 2035. The Senior Special Assistant to the President and Secretary, National Action Committee on AfCTA, Francis Anatogu, made the disclosure in an AfCFTA overview presentation to the media in Lagos on Monday. He stated that other national AfCFTA aspirations were to establish a highly productive workforce, a business friendly environment, quality infrastructure, export development incentives and a strong national brand.
Anatogu said, “Success with AfCFTA is a diversified and sustainable Nigerian economy with strong linkages with neighbours and the top economies in Africa and a globally accepted country brand.
Nigeria’s border closures haven’t served their purpose (ISS)
In August 2019, Nigeria closed its land borders with neighbouring Benin, Cameroon, Chad and Niger. While people were allowed to pass through, the movement of goods was blocked. The objective, Nigerian officials said, was to stem the smuggling of goods, particularly rice. Yet the phenomenon hasn’t stopped since the closure, raising questions about the measure’s effectiveness and the actual reasons for the decision.
Trade officials interviewed by the ISS said the closure had probably resulted in new smuggling routes as illicit dealers are determined to move their goods across borders. They acknowledged, however, that products – including rice – are likely to have been smuggled in smaller consignments given the difficulty of driving heavy duty trucks through alternate routes. Already, informal trading via unapproved routes is a long-standing economic practice in local communities.
EgyptAir to spread wings in Africa while seeking $300 million support from government (CGTN Africa)
Egypt’s national carrier, EgyptAir is looking to expand in Africa as air travel recovers from the COVID-19 pandemic, even as the carrier seeks more than $300 million in additional government aid. The state-owned airline plans to help develop a new Ghanaian carrier and is weighing a joint venture with a Sudanese airline, according to Roshdy Zakaria, chief executive officer of EgyptAir Holding Co. The new airline, likely called Air Ghana, will probably begin operations “in a couple of months,” he said.
“To spread in Africa, that is our main goal,” the CEO said. “When we have a hub somewhere in the middle of Africa that will give us a chance to reach” new destinations.
News from Africa and Africa’s international trade relations
AfCFTA programme to enslave Africans if challenges not addressed (Myjoyonline.com)
The implementation of the African Continental Free Trade Area (AfCFTA) may enslave Africans to the rest of the world if the challenges associated with the programme are not fixed, the Citizen Watch, a think tank group has revealed. Currently, it is estimated that Ghana needs about US$5billion for the next 10 years to support the private sector to enable it compete favorably with its peers. ”What our leaders ought to know is that they are in to take advantage of our resources, by scooping everything we have in the country without bringing in anything”, it said in a statement signed by Elikem Agbenyegah, the leader of the group. “The government don’t have the funds to support the local industries to enable them compete with its peers, however, the foreign companies would come in with their resources to establish huge factories in the country. They would export the products to neighboring countries and make their returns on investments, which would be a major disadvantage to us”, it said.
Africa still lags behind in trading within its borders (Africa Renewal)
“Implementation of regional integration continues to be hampered by governance, peace and security challenges,” said Mr. Karingi, adding: “Digitalization is key in maintaining trade competitiveness and enabling effective participation in cross border e-commerce.” The report shows that in 2018, Africa accounted for only 2.6% of global trade which is a slight increase from 0.2% from 2017. Intra-African trade increased to 16.1% in 2018 ($159.1bn), up from 15.5% in 2017. Globally, output slightly decreased to 3.6% in 2018 from 3.8% in 2017.
Intra-African Trade Fair (IATF2021) New Date Confirmed - African Export-Import Bank
The second Intra-African Trade Fair (IATF2021) is now set to take place from 8 to 14 December 2021. African Export-Import Bank (Afreximbank), the African Union (AU) and the Government of Rwanda have decided to shift the date of the continental trade fair, which was previously scheduled to hold from 6 to 12 September 2021, to allow for a broader roll-out of COVID-19 vaccines across the continent and ensure that the event is held under the most optimal health conditions.
“Our intent is that all participants garner the full benefits of the abundant networking, trade and investment opportunities that will arise at IATF2021. Despite the COVID-19 pandemic, there is a lot of enthusiasm for the event. The extra time given to preparatory activities and effective roll-out of COVID-19 vaccines will allow IATF2021 to be held under favourable conditions, giving more confidence to participating governments, exhibitors, buyers, conference delegates and other visitors,” said Chief Obasanjo. “IATF2021 will bring together continental and global players to showcase and exhibit their goods and services, and explore business and investment opportunities enabled by the single market created by the African Continental Free Trade Agreement (AfCFTA) to accelerate Africa’s integration and industrialisation agenda,” he added.
AUDA-NEPAD: Does money and focus equal ownership and trade? (ECDPM)
With trading having officially started under the African Continental Free Trade Area (AfCFTA) on 1 January 2021, the African Union (AU) and its member states are now under pressure to make this agreement a success. But as analysis of the agreement shows, most gains are not expected from tariff reduction but rather from reducing non-tariff barriers and from trade facilitation – where improving trade-related infrastructures is key.
The AU has a continental plan covering trade-related infrastructures too – the Programme for Infrastructure Development in Africa (PIDA) was set up in 2012 precisely to help boost regional and continental infrastructure connections. It laid out a framework of ‘priority’ projects – a shortlist from country and regional submissions – which needed funding.
Despite some progress, the first generation of PIDA was not a roaring success. Africa still lacks the necessary infrastructure to trade efficiently on the continent. Under NEPAD, the agency set up in the early 2000s as a ‘new’ effort to promote an ‘African renaissance’, the first generation of the PIDA priority action plan (PIDA-PAP1) saw only mitigated success.
But neither was PIDA a failure. It helped pool and channel funding to help set up numerous One Stop Border Posts (such as that between Rwanda and Tanzania or between Benin and Nigeria), upgrade ports (such as in Kribi in Cameroon or port access in Dar es Salaam, Tanzania), build cross-border roads (such as the Libreville-Brazzaville Road and the railway line linking Malawi and Mozambique), and lay fibre-optic cables across the continent.
A greener AfCFTA possible if right policy, standards are enforced — Expert tells ECA seminar (Modern Ghana)
A greener African Continental Free Trade Area (AfCFTA) can be achieved if governments on the continent adopt proactive environment-friendly policies and enforce environmental standards, a trade economist said today at an event organized by The Economic Commission for Africa and the Overseas Development Institute (ODI).
“Trade in Africa will play a decisive role in the continent’s transformation and climate change action should not restrict it,” Mendez-Parra said at the virtual event on building back better through greening the AfCFTA. Instead, in itself, “the AfCFTA can increase resilience to climate change,” he said.
Sustainable industrialization is a feasible growth engine for Africa to build forward better in the aftermath of the coronavirus pandemic. Governments, however, need to invest in critical technological infrastructure and supportive policies to deliver economic development in the backcloth of the disruptive COVID-19 pandemic. This was the consensus of African policy makers attending the annual Economic Commission meeting for African Ministers of Finance, Planning and Economic Development (COM2021) which opened in Addis Ababa Monday. African ministers spoke during a high-level panel discussion on the theme of the fifty-third session of the Commission, focusing on ‘Africa’s sustainable industrialization and diversification in the digital era in the context of COVID-19’. The COVID-19 pandemic has hit Africa hard, triggering a recession in 25 years which has weakened economies and increased debt burdens.
“Sustainability, industrialization, diversification and digitization are the right strategies for Africa to recover from the disastrous impact of COVID-19 and to build more resilience, sustainable and inclusive growth and development,” lead speaker, Rwanda’s Minister of Finance and Economic Planning, Uzzeil Ndagijimana, told the panel. He stressed that these industrialization strategies need investment in vaccine production, good governance, access to cheap long-term financing, improved business environment and promotion of inter African trade.
Local Technology And Intra-Continental Trade Key To Effective Covid-19 Vaccination Rollout In Africa (Africa.com)
As countries across Africa roll out vaccines to combat the ongoing COVID-19 pandemic, it is becoming increasingly evident that the continent is in desperate need of ICT systems and healthcare solutions that can support mass vaccination programmes. Unfortunately, African countries are often seen by First World countries as dumping grounds for outdated or substandard technology, with equipment that is prohibited in Europe, due to regulatory issues, being resold on the continent. Aside from being outdated or substandard, imported medical technology seldom meets the requirements of African countries and their populations. In most instances, imported medical technology must be customised and adapted. Furthermore, the adoption of such technology creates an undesirable dependence on outside skills and resources, which often becomes too expensive to sustain in the long term. Hence, there is a growing demand and hunger in Africa to build homegrown skills and resources, which in turn highlights the need for intra-continental trading and partnerships that will enable the sharing of ICT technologies to help the continent manage the COVID-19 pandemic.
However, intra-continental trading in Africa is still relatively new as the continent was historically divided up into trade blocs. Countries within these blocs have a lot of administrative regulations and financial barriers that need to be overcome in order to facilitate effective intra-continental trade.
Widen market beyond borders: Modi (Chronicle)
LOCAL companies should now start exploring markets across the continent to tap into the vast potential opportunities presented by the African Continental Free Trade Area (AfCFTA), Industry and Commerce Deputy Minister Raj Modi, has said.
Speaking in an interview after touring three companies in the printing and packaging sector in Bulawayo last Thursday, Deputy Minister Modi said the implementation of the AfCFTA not only presents challenges to local industry but opportunities for local enterprises to broaden their market share. “We are over 50 countries in Africa, so we have all that market. As a country that’s an opportunity for us so that we don’t look to the markets that are very close to us,” he said.
Feature: Feeding East Africa’s hungry from a single port (CGTN Africa)
The World Food Programme supplies hundreds of thousands of metric tons of food per year to hungry people across the continent. The life-giving supplies are gathered from vendors and donors all over the world. But how is this massive quantity of food transported and distributed to the end user?
From conflict and disaster zones like Somalia, South Sudan, and northern Mozambique, to places battling chronic hunger like Ethiopia and Uganda nearly all of that food passes through a single place: the WFP’s logistics and sorting facility at the port of Mombasa.
As the region’s largest sea port, Kenya’s second city functions as a crucial node for shipping and logistics across East and Central Africa. CGTN Africa visited the ships, trucks and warehouses that make this fine-tuned distribution system tick.
Central Africa countries urged to embrace industrialization - Xinhua | English.news.cn
Industrialization remains a key priority for the Central African sub-region despite the adverse consequences of COVID-19 pandemic, a senior official of the United Nations Economic Commission for Africa (ECA) sub-regional office said on Monday. Antonio Pedro, director of the ECA Sub-regional Office for Central Africa said the bloc has made some economic breakthroughs but needed to boost its industrialization progress. “Central Africa’s path to sustained development passes through industrialization. COVID-19 has revealed how dependent this region is on the import of essential goods such as food products as well as pharmaceutical products. The only way forward therefore is to produce and consume locally and this is done through industrialization,” Pedro told Xinhua in an interview by phone as African Finance Ministers began meeting in Addis Ababa, Ethiopia, to chart a way forward for Africa’s industrialization and diversification agenda in the digital area amid COVID-19.
ECOWAS to Hold 2nd Forum for National Trade Facilitation Committees in Abidjan (News Ghana)
The ECOWAS Commission will hold the 2nd Forum for National Trade Facilitation Committees from March 16th to 18th, 2021 in Abidjan, Côte d’Ivoire. The 3-days meeting is aimed at strengthening the National Trade Facilitation Committees as a central platform for institutional coordination and implementation of trade facilitation initiatives resulting from regional and international obligations including the WTO Trade Facilitation Agreement (TFA) and the African Continental Free Trade Area (AfCFTA). The forum will specifically update participants on the implementation of the WTO TFA in the ECOWAS region, identify assistance for the implementation of Category C provisions of the TFA, exchange and identify Capacity Building for the implementation of provisions related to transparency obligation, exchange and update on the implementation of ECOWAS COVID-19 Guidelines by NTFCs and consideration of Trade Facilitation Committees in various agreements, among others.
Women businesses need help to mitigate Covid-19 challenges (Daily Monitor)
A trade support organisation has called for the revision of the Simplified Trading Regime to enable cross-border women traders participate more. In a report released last week, Ms Sheila Kawamara Mishambi, the Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) executive director, said the impact of Covid-19 on cross-border women traders across East Africa had mostly been immense forcing closure of at least 64.2 per cent of women-owned businesses.
Gender Experts Meet to Review Programmes’ Implementation
COMESA Gender and Women’s Affairs experts began their 13th Meeting on Monday 22 March 2021 to discuss progress on the advancement of gender equality and empowerment of women through implementation of policy and legal frameworks, council decisions, programmes and projects. The objective of the three-day virtual meeting was to consider the progress made by both the Secretariat and Member States on the implementation of the Decisions of the Tenth meeting of the COMESA Ministers responsible for Gender and Women’s Affairs held last year.
Speaking during the opening ceremony, Permanent Secretary in Zambia’s Ministry of Commerce, Trade and Industry Mr Mushuma Mulenga appreciated the meeting coming shortly after the international Womens’ Day when governments, private sector, community groups, professional associations, women’s networks, celebrate women around the world, and their achievements in social, economic, cultural, and political spheres.
Increasing women’s access to capital critical in Africa’s fight against poverty (Africa Renewal)
Ms. Yemeru said the ECA will also work across divisions to strengthen data on women empowerment. She called for follow-up support to Member States that conduct time-use surveys to develop strategic responses on the workload of women in unpaid caregiving. Ms. Yemeru also talked about the need for planned and job rich urbanization as more people continued to move to the cities across Africa. Social sector financing; managing rapid urban growth; seeking digital solutions; investing in data evidence, were some of the recommendations for countries on the continent. Ms. Yemeru called on Member States to align their economic plans with financing and planning for sustainable urbanization and to better link urban and rural development and strengthen the interdependence between the two. The report calls on the ECA to give more technical assistance to its Member States, especially in the area of gender legislation.
Global economy
Aid for Trade: time to take stock of Covid-19’s impact (Trade for Development News)
A year into Covid-19 being declared a global pandemic, this month’s Aid for Trade stocktaking event, organized by the Development Division of the World Trade Organization (WTO), offers a timely opportunity to assess impact on developing and least developed countries’ (LDC) trade needs, discuss how to make the recovery sustainable and mobilize financing where it is needed most.
LDCs have been hit hard by the pandemic. Global lockdowns from Q2 last year triggered a plunge in demand for the hydrocarbons, metals and other commodities that dominate the exports of many, with countries like Angola suffering severe hits to their financing and budgets. And while those LDCs that have made inroads into global value chains for food were buffered by more stable demand for agricultural commodities, many of the same continue to be impacted by a slump in tourism receipts. Although the latest WTO Trade Barometer suggests a recovery in global trade is underway, it is patchy, with passenger air transport and ICT, for example, remaining very depressed. “There is still a sense of urgency about how we get out of this,” said Michael Roberts, Head of Aid for Trade at the WTO. “Now, we can really start to take stock of what the impact has been, how we are coping and how much further we need to go.”
DG Okonjo-Iweala continues outreach to members with Ottawa Group ministers (WTO)
Noting that the COVID-19 pandemic was reversing years of progress on poverty reduction, she said the group could play a valuable role in helping the WTO contribute to accelerating vaccine production and roll-out, and better prepare for future health crises. The Director-General emphasized that the WTO needed to reach meaningful agreements by the 12th Ministerial Conference at the end of November. She called for the fisheries subsidies negotiations to be concluded by mid-year, and for progress on agriculture and dispute settlement.
Secretary-General of the Organisation of African, Caribbean and Pacific States (OACPS), H.E. Mr Georges Rebelo Pinto Chikoti, presented Dr Mekondjo Kaapanda-Girnus, Ambassador of the Republic of Namibia to the Kingdom of Belgium, the Netherlands, the Grand Duchy of Luxembourg and Mission to the European Union, to the OACPS Committee of Ambassadors (CoA) at their 936th session. During her inaugural address to the CoA, Ambassador Kaapanda-Girnus touched on a number of current challenges, such as the Coronavirus, which she noted, is having a “disproportionate impact on developing and emerging economies” and which is further putting decades of progress in health, education and economic development at risk. In addition, speaking about the difficulties experienced by countries with limited capacities in the pharmaceutical sector, Ambassador Kaapanda-Girnus, “reiterated Namibia’s support for the joint initiative by South Africa and India to seek a temporary waiver to certain provisions of the Trade Related Intellectual Property Rights (TRIPS) Agreement in order to prevent, contain and treat COVID-19.”
Secretary-General H.E. Mr Georges Rebelo Pinto Chikoti, in a video message at the opening of the Joint Pacific Islands Forum Secretariat – International Trade Centre (PIFS-ITC) Symposium on Trade Finance, highlighted several trade-related activities of the Organisation of African, Caribbean and Pacific States (OACPS).
Highlighting the importance of the private sector as a main development actor, the OACPS Secretary-General touched on key aspects of the OACPS’ trade policy, ending his presentation with three initiatives of special interest to the Pacific region.
Gaps Remain in Countries Readiness to Deploy COVID-19 Vaccines (World Bank)
As countries undertake the largest vaccination campaign in history, the World Bank has worked with governments, WHO, UNICEF, the Global Fund and GAVI on assessing countries’ readiness to safely deploy COVID-19 vaccines in 128 low- and middle-income countries. The results indicate that income level and other economic indicators correlate weakly with vaccine preparedness. The report focuses on ten key indicators, including cold chain & logistics, population prioritization, budgeting, training of healthcare personnel, and safety surveillance, among others.
“Many developing countries are in the midst of preparing aggressive COVID19 vaccine delivery plans,” said Mamta Murthi, Vice President for Human Development at the World Bank. “While most countries are well enough prepared to begin inoculating their populations, there are still important gaps that must urgently be addressed for wide, large scale vaccination rollouts to succeed.”
Digital Services Taxes May Be Difficult To Remove (Forbes)
An unresolved issue in the OECD’s base erosion and profit-shifting 2.0 reform project is when and how countries will remove their unilateral digital tax measures once a solution is brokered. The OECD has made it clear that inclusive framework members are expected to revoke unilateral measures and refrain from introducing new ones when that time comes.
Digital services taxes and other unilateral measures continue to proliferate despite the fact that the OECD is reportedly only months away from reaching a solution. They continue to appear despite evidence indicating that they sometimes generate only modest revenue. But high revenue generation may not be the ultimate goal.
For years, Kenya has struggled with rising debt levels that have now reached a tipping point because of the COVID-19 pandemic and are on track to reach 70% of GDP by 2023, according to the IMF. In this environment, lawmakers have already reversed tax cuts because they simply cannot afford them.
Brexit Shows Why Traders Need Reliable Information But Many Are Ahead of the Game (Inter Press Service)
It’s now almost three months since the United Kingdom entered into a new trade agreement with the European Union. During that time, we’ve seen traders struggle to get to grips with the new arrangements. From lorry drivers having their sandwiches confiscated by Dutch customs officers to estimates of additional paperwork costs of $7 billion a year, and pig breeders watching their meat rot on the quayside for want of the correct forms. It has been a difficult start for a trading relationship once valued at $930 billion, and one that has shown the importance of providing traders in the UK and Europe with clear and simple information of the kind that was not required within the single market. It was with this in mind that the WTO passed the Bali Trade Facilitation Agreement in 2014.
The future of data: Unmasking community-level differences to better address food insecurity (Brookings)
The COVID-19 pandemic has exposed the challenge created by high-level, aggregated data when addressing chronic food security and other lasting challenges affecting Africa—namely the masking of community-level differences, which inhibits the effective distribution of resources in the region. Technological advancements now bring clarity to these gaps, equipping today’s generation of committed policymakers to tackle complex problems, especially those around food security. Until now, the best available data has been sparse, dated, and aggregated. Fortunately, data scientists have developed new machine learning (ML) models that can now produce reliable, local data for areas where data has been historically difficult or impossible to access. This approach allows policymakers the opportunity to develop data-driven strategies that improve food security down to the neighborhood level. Within a continent of astounding diversity, this swift and localized understanding will be essential in mitigating the COVID-19 pandemic’s (and any future) threat to food security and providing stable access to food in its aftermath.
FACT SHEET: Small and Less Populous Island Economies (SALPIE) Initiative | The White House
Today the Biden administration launched the “Small and Less Populous Island Economies (SALPIE) Initiative,” an economic cooperation framework designed to strengthen U.S. collaboration with island countries and territories in the Caribbean, North Atlantic, and Pacific regions. The SALPIE Initiative signals the U.S. government’s prioritization of cooperation with these economies to counter COVID-19 economic challenges, promote economic recovery, respond to the climate crisis, and advance longer-term shared interests. Pandemic-related economic disruptions have caused an unprecedented global crisis, and import and tourism-dependent island economies have not been spared. These same island communities are also among the most vulnerable to climate change; their economic resilience is increasingly threatened by more frequent and severe storms, rising sea levels, and warming ocean temperatures.
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Country focus
Business Unity South Africa calls for increased engagement with WTO
Industry organisation Business Unity South Africa and other business associations, representing 14 countries on six continents, have congratulated Dr Ngozi Okonjo-Iweala on her appointment as director-general of the World Trade Organisation (WTO). The business community has also jointly written a letter to the new director-general explaining the paramount role that the WTO plays in the business community, and outlining issues that need to be addressed by the WTO to better function. The business community has proposed ways in which a more regular and structured dialogue between the WTO and the business community can be achieved, building upon existing initiatives and establishing possible opportunities. These include establishing an advisory council that would allow business to provide insights to WTO members on matters of importance. Moreover, arranging more regular trade dialogues, as well as consultations and hearings on specific negotiations is requested.
South African banks impacted but resilient in worst of Covid-19 pandemic of 2020 – PwC (Engineering News)
South Africa’s major banks were impacted negatively by an “unprecedented operating environment” during the Covid-19 pandemic, reports professional services firm PwC in its ‘Major Banks Analysis’ for the 2020 financial year. The analysis highlights key themes from the combined local currency results of Absa, FirstRand, Nedbank and Standard Bank.
PwC Africa banking and capital markets leader Francois Prinsloo says that while the major banks’ 2020 results are reflective of an intensely challenging operating environment, they also reveal their resilience. “Contemplating how the pandemic and the associated uncertainty and risks may play out, it is clear that purposeful, technology-enabled and customer-centric strategies will feature prominently in the major banks’ areas of focus going forward.” PwC’s economics team expects the global economy to expand by 4.7% this year, a forecast heavily conditional on a successful deployment of effective Covid-19 vaccines and accommodative fiscal, financial and monetary conditions.
IMF Loan to Support Economic Recovery in Kenya
Kenya’s economy is now picking up speed after the COVID-19 shock, but the pandemic has left deep imprints on the country’s fiscal and debt positions. Earlier in the year, IMF staff and the country’s authorities reached a provisional agreement on a program to support the next phase of the country’s response to the health crisis. IMF Country Focus spoke to the IMF mission chief for Kenya, Mary Goodman, who explained that the loan would be used to support the government’s reform plans and help meet financing needs.
Kenya’s trade deficit starts to rise as imports go up (Business Daily)
Kenya’s trade deficit widened by four percent in January compared to the corresponding month last year as imports started to go up after months of decline. Central Bank of Kenya (CBK) data shows the difference in value of goods and services imported and those exported in January stood at Sh106.4 billion compared to Sh102.3 billion recorded in the same period last year. Kenya mainly import petroleum products, vehicles, household goods, pharmaceuticals and machinery, while exporting tea, cut flowers, vegetables and coffee. The country’s import bill last month stood at Sh160.7 billion, against exports receipts of Sh54.3 billion. The Covid pandemic caused a fall in imports for the better part of last year, due to reduced demand and trade supply chain disruptions as counties instituted restrictions to control the pandemic.
US, Kenya trade deal set for review (Business Daily)
The US says it will put the proposed trade deal struck with Kenya by the former Donald Trump regime under “review”. The US Senate last week confirmed Katherine Tai, a former trade lawyer for the Obama administration and Congress, as the trade representative. Ms Tai said during her confirmation hearing before the US Senate said that the Biden government will review the proposed deal before further talks. “If confirmed, I plan to review the state of the negotiations with Kenya, and, in consultation with Congress, chart a path forward that reflects the Biden-Harris Administration’s commitment to a trade policy that prioritises the interest of America’s working families,” she told the Senate when asked about the timelines for talks on the Kenya deal.
MPs move to ban export of local iron ore (The Standard)
The export of iron ore could be banned if Parliament approves a proposed law that will include the mineral in the list of goods that cannot be exported. The Excise Duty (Amendment) Bill, 2021 seeks to include iron ore on the list of goods that are “prohibited and restricted exports.” This is as Kenya seeks to protect local firms that rely on the ore for the production processes from competing with export markets for the lucrative mineral. The Bill also wants to match the local laws with those of other East African Community (EAC) partner states that have already banned the exportation of iron ore. “The principal object of the Bill is to amend the Excise Duty Act to align the Act with the EAC Customs Management Act, 2004 and the policy decisions of the other partner states to ban export of iron ore,” read the Bill in part
Nigeria: Another Trade Deficit in Q4 2020 (Proshare)
The latest report from the NBS in its series on foreign trade in goods shows the total value of trade as NGN9.1trn in Q4 ‘20, representing an increase of 8% on the preceding quarter. The value of trade in Q4 was the highest recorded in 2020. Compared with Q3, the total export value increased by 7% to NGN3.2trn, and the import value rose by 9% to NGN5.9trn. The value of imports almost doubled that of exports. The net result was a deficit of NGN2.7trn, which followed a deficit of NGN2.4trn the previous quarter. This makes five consecutive trade deficits. The data were drawn primarily from the Nigeria Customs Service. On an annual basis, total trade was valued at NGN32.3trn in 2020, which was 10% lower than 2019. The value of total imports in 2020 stood at NGN19.8trn while total exports were valued at NGN12.5trn. The annual deficit was therefore NGN7.3trn. Total trade in 2020 declined primarily due to lower exports. The implementation of lockdowns and restrictions had an adverse effect on export activity last year. The total trade value as a percentage of GDP stood at 21% in 2020.
AfCFTA team to sensitise Fintechs, others in Lagos (Vanguard)
An African Continental Free Trade Area Agreement (AfCFTA) team will visit Lagos on Monday to sensitise stakeholders in Fintech and other professional associations on the initiative. Francis Anatogu, Secretary, National Action Committee on AfCFTA, made this known in a statement on Friday. “We believe that for AfCFTA to be successful, Lagos State as Africa’s commercial hub of Nigeria and a megacity needs to key into this transformational programme.” Anatogu said the mandate of the committee was to coordinate the activities of private and public sectors, regarding AfCFTA implementation at federal and sub-national levels.
Free Zone: Lagos to Attract Additional $5bn in 4 Years (THISDAYLIVE)
The Lagos Free Zone (LFZ) which already has a committed investment of $2 billion is poised to attract an additional $5 billion over the next four years. This was disclosed by the Chief Executive Officer, LFZ, Mr. Dinesh Rathi, at the headquarters of the company in Ibeju-Lekki during the official visit of Governor of Lagos State, Mr. Babajide Sanwo-Olu and his cabinet members to the zone at the weekend. Rathi, further explained that the zone, which was established in the year 2012 was being promoted by Tolaram Group, a leading conglomerate in Nigeria – who have already attracted about $2 billion committed investment to the Zone currently.
Trading under the AfCFTA has started: Ghana needs to speed up its implementation strategy (Ghanaweb)
The government of Ghana has taken steps to put up certain institutions, structures, and programmes to help the country including the private sector, to harness the benefits inherent in the AfCFTA agreement. In the first place, an Inter-Ministerial Facilitation Committee has been constituted by the President to provide strategic direction and coordinate support for the implementation of AfCFTA in Ghana. A National AfCFTA Coordinating Office is being established at the Ministry of Trade and Industry (MOTI) to act as one-stop-shop facilitation and information hub. Moreover, a National AfCFTA/BIAT Steering Committee has been constituted. Currently, Ghana has not churned out a publicly accessible national AfCFTA implementation strategy despite the fact that the real trading under the pact began on 1st January 2021.
Ghana: NDPC holds consultations on medium-term national development policy (Myjoyonline.com)
The National Development Planning Commission (NDPC) has organised Regional consultations on the medium-term national development policy framework 2022-2025 for Municipal and District planning coordinators and heads of decentralized departments in the Oti Region. Mr Bright Y. Atiase, Deputy Director for National Development Planning Commission (NDPC), said the current medium-term national policy framework (MTNDPF, 2018-2021) would end this year and there was the need to prepare a new policy framework for 2022-2025.
Ghana and U.S. Strengthen Ties Through Maritime Partnership (News Ghana)
Obangame Express (OE21), the largest multinational maritime exercise in Western Africa, kicked off its tenth year with 32 participating nations at an opening ceremony in Accra, Ghana, March 19, 2021. Sponsored by U.S. Africa Command (AFRICOM), OE21 is designed to improve regional cooperation, maritime domain awareness, information-sharing practices, and tactical interdiction expertise to enhance the collective capabilities of participating nations to counter sea-based illicit activity.
Ethiopia: Empowering Women With Digital Technology (Technology Times Pakistan)
Women in Africa are more likely to be entrepreneurs, than men. They make up 58 percent the continent’s self-employed population and women’s formal ownership of SMEs currently stands at around a third of all registered SMEs in Africa-and we know SMEs are estimated to account for over 90 percent of all firms outside of the agricultural sector in the region, says a document published recently. The African Development recognizes the important role that women entrepreneurs play in the development and economic growth of our continent. However, African women business owners continue to face gender- specific legal, social and administrative barriers, even while Africa leads the world in terms of numbers of women business owners, it added. To end this and enable women access financial services get the required timely information and to flourish their business the application of digital technology is of paramount importance.
Angola and AFTRAC sign business boost deal (ANGOP)
Angolan Government and the Pan-African Private Trade and Investment Committee (PAFTRAC) have agreed to promote business cooperation between Angola and the other African nations. Signed on Thursday, the deal is part of a memorandum of understanding between the Angolan Government, represented by the ministries of Foreign Affairs and Industry and Commerce and PAFTRAC which in the signing was represented by officials of the Angolan business group Opaia. The deal provides for the establishment and development of a long term integrated cooperation among the parties involved.
In a note that reached ANGOP on Thursday, linked to the establishment of the Africa Continental Free Trade Area (AfCFTA), the Angolan Government states its strong wish to promote business in all sectors of the national economy, following the example of success of the emerging economies.
Egypt vows to increase exports to $100 billion (Arab News)
The Central Bank of Egypt on Sunday issued treasury bills worth EGP19 billion ($1.21 billion) on behalf of the Finance Ministry. Governments resort to financing budget deficits by offering bonds and treasury bills as debt instruments, and public banks are their largest buyers. Treasury bills are short-term debt instruments, with maturities ranging from three months to a year.
G7 backs ‘sizeable’ IMF aid for COVID-hit poor nations (Arab News)
The Central Bank of Egypt on Sunday issued treasury bills worth EGP19 billion ($1.21 billion) on behalf of the Finance Ministry. Governments resort to financing budget deficits by offering bonds and treasury bills as debt instruments, and public banks are their largest buyers.
AFDB supports Domestic Debt Market Development Liberia (Liberian Daily Observer)
The African Development Bank Group (www.AfDB.org) has launched a project to support the development of domestic debt markets and financial systems in four West African Monetary Zone (WAMZ) countries: the Gambia, Sierra Leone, Guinea, and Liberia. The Bank had earlier approved a grant of UA1.5 million or about $2 million for the project.The project, according to a press release from the Bank, is funded by the Bank’s Transition Support Facility, will provide technical assistance and capacity building to develop domestic debt markets in the four countries. Specifically, it will support the deepening of primary debt markets, improvement of debt market infrastructure, enhancement of institutional capacity in relevant agencies and authorities, and a broadening of the investor base.
The Gambia First Economic Update: How to Transform the Labor Market and Build a Resilient Post-COVID Economy? (World Bank)
According to the World Bank’s first Economic Update on the Gambia, real GDP growth exceeded 6% two years in a row before COVID-19 struck, driven by rebounding confidence, investment, low interest rates, and growing tourism. While Tourism arrivals had started well at the beginning of 2020, they collapsed by about 50% in March 2020, as containment measures were put in place swiftly. GDP growth is expected to have stagnated in 2020, however, the economy is expected to gradually recover in 2021 as the pandemic recedes, conditional on political stability and normal weather conditions.
“Prior to COVID-19, The Gambia’s economic prospects had been improving but the pandemic interrupted a promising start to 2020,” stated Mehwish Ashraf, World Bank Country Economist and lead author of the report. “That being said, the economy has weathered the pandemic better than anticipated and is expected to start recovering gradually in 2021, although the outlook remains uncertain.”
News from Africa and Africa’s international trade relations
AfCFTA: Is It Finally the Right Time for Africa? (ISPI)
There is no doubt that the AfCFTA is a very ambitious initiative. Could this continental integration initiative mark a departure from previous sub-regional integration experiences? There are several factors to consider. Regional integration, and specifically the AfCFTA, are currently enjoying significant political support. Political support is essential to the success of regional integration, but it has to translate into practical implementation programs, supported by the necessary improvements in governance.
Private sector interest in, and support for the AfCFTA, is also running high. Active engagement in the negotiations and implementation processes by the private sector is required for the AfCFTA to succeed. Global interest in the AfCFTA is also notable. Foreign direct investment can play an important role to support the achievement of the AfCFTA’s objectives, by expanding and diversifying productive capacity. If a global investor establishes a commercial presence in one of the State Parties (country which has ratified the Agreement), that enterprise will enjoy the benefits of the AfCFTA. This could bring positive effects, especially for consumers, but new competition may also pose challenges to domestic enterprises.
New report on impact of COVID-19 shows e-commerce to play a huge role in Africa’s economic recovery (UNECA)
While the report pointed out that Africa’s regulatory regime was yet to catch up with the speed with which the digital sector was growing, in general, it remained patchy and characterized by poor enforceability. The growth of mobile technology, among the other factors, built a fertile foundation that could be buttressed by developments in venture capital and funding, online payments, and logistics. “We arrive at the conclusion that the digital economy can be a powerful catalyst for Africa’s economy with the potential to alleviate many of the economic burdens of COVID-19. But more importantly, e-commerce and digital trade can serve as a powerful engine for the economic recovery now required,” the authors of the report said.
A new report launched by the Economic Commission for Africa (ECA) on the impact of COVID-19 on e-commerce in Africa, shows that the sector and the digital economy grew considerably throughout the decade ending in 2019. The report shows that the COVID-19 pandemic, bad as it is with the associated health and economic impacts, has opened up new opportunities for the continent’s digital economy.
Land locked developing countries (LLDCs) are vulnerable to fluctuations which were further aggravated by the COVID-19 pandemic, resulting in border closures that continue to affect the movement of goods and people. A high-level roundtable on Saturday discussed possible measures that can be taken to address some of these challenges and support LLDCs during this critical time. In opening remarks to the meeting, Mr. Francis Ikome, Chief of the Regional Integration Section in the Economic Commission for Africa’s Regional Integration and Trade Division, said the think tank has a continuing interest in the development of LLDCs. He said within the scope of the African Continental Free Trade Area (AfCFTA) lay an opportunity to promote the smooth functioning of corridors, easing life for Africa’s LLDCs. He said Africa’s infrastructure deficit posed a challenge that brings about additional costs in trade, especially for the LLDCs.
Mr. Ikome noted that African LLDCs were making commendable progress as noted by the mid-term review report of the Vienna Programme of Action, but still had a long way to go. He also recognized the importance of the 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063 in the development of LLDCs, adding that no country will be able to overcome the pandemic alone and therefore collaboration was key. “Corridors create opportunities for industrialization and are vectors of market growth. The AfCFTA provides an opportunity for promoting smooth functioning of corridors for sustainable industrialization and diversification during the COVID-19 era,” said Mr. Ikome.
For her part, the African Union Commissioner for Infrastructure and Energy, Ms. Amina Abou-Zeid, said the AUC also pays special attention to corridors to ensure LLDCs are connected and that trade flows easily. “Corridors don’t work alone. They need to be linked to ports which are affected by challenges like border control harassment and lengthy queues at the borders resulting in delays,” she said
Zambia, Zimbabwe to Implement the Joint Industrialization Strategy (COMESA)
Zambia and Zimbabwe have signed a Memorandum of Understanding to implement a joint industrialization project spearheaded by COMESA Secretariat. The Joint Industrialization Project will promote self-sustained, balanced and inclusive economic growth between the two countries. It will provide opportunities for the private sector to benefit from the African Continental Free Trade Area through enhanced competitiveness.
In her statement, Ms Kapwepwe said that the success of the Project will enable the two Member States to achieve inclusive and sustainable economic transformation through industrialization. “Once successful the pilot project will be upscaled to other Member States in the region,” she said.
Minister Yaluma said the project has come at the right time as it fully supports the Zambian industrialization and job creation agenda for the country. It will enable the two countries to share ideas and resources for industrial development and further strengthen the working relationship between Zambia and Zimbabwe in the field of industrialization. “Despite the growth potential in the region, poverty, unemployment, low investment levels, and depressed aggregate demand, among others, are prevalent in the COMESA region,” he said attributing this economic scenario to depressed industrialization.
Women businesses need help to mitigate Covid-19 challenges (Daily Monitor)
A trade support organisation has called for the revision of the Simplified Trading Regime to enable cross-border women traders participate more. In a report released last week, Ms Sheila Kawamara Mishambi, the Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) executive director, said the impact of Covid-19 on cross-border women traders across East Africa had mostly been immense forcing closure of at least 64.2 per cent of women-owned businesses. The Simplified Trading Regime supports small-scale traders to benefit from simplified customs document and simplified certificate of origin, under which goods that originate from member countries and whose value does not exceed $2,000 (Shs7.3m) per consignment, qualify for duty-free entry in the respective markets.
Forum urges ratification of SADC protocols to develop agriculture sector (IPP Media)
Participants to the conference which was themed: “Tanzania Awareness National Dialogue on the new SADC Vision 2050 and RISDP 2020-2030” came up with a number of policy recommendations geared to ensure successful implementation of the agreed development plans. The virtual meeting was supported by Southern Africa Trust (SAT) and German Corporation for International Cooperation (GIZ). They suggested for SADC member states to speed up ratification and domestication of all SADC protocols and programmes at the national level including the SADC Development Fund and SADC Agriculture Development Funds.
On the RISDP 2020-2030, they suggested that SADC member states including Tanzania recognize and domesticate the United Nations Decade of Family Farming (UNDFF) 2019-2028 which aims to shed new light on the important role family farmers play in eradicating hunger. Governments to increase joint trading by ensuring every member state identifies products of its comparative advantage to trade within the block.
A total of 63 regional infrastructure projects have been developed in the Southern African Development Community (SADC) Region, including 17 regional energy projects under the second Priority Action Plan for Programme for Infrastructure Development in Africa (PIDA PAP 2), the African Union continental strategic infrastructure framework, the SADC Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, has said. H.E Dr Tax was speaking during the virtual SADC Council of Ministers meeting which was hosted by Mozambique on 12 March 2021
A study to create an enabling environment for developing energy projects has been commissioned. Establishment of the Regional Transmission Infrastructure Financing Facility (RTIFF) which has already identified core services and institutional arrangements under which RTIFF can operate is expected to be concluded by the end of March 2022 after consideration by Council. The development of the Regional Gas Master Plan has also commenced, with Phase I concluded in October 2020. It covered gas demand and supply assessment, gas market study and capacity building needs. Phase II covering the soft and hard gas infrastructure blueprint for the Region will commence during the first quarter of 2021/22 financial year.
ICAO encourages liberalization and innovation to spur West African aviation pandemic recovery (Mirage News)
Speaking yesterday to the virtual Ministerial Meeting on EnhancingAir Transport Connectivity and Growth in West Africa, ICAO Council President Salvatore Sciacchitano and Secretary General Dr. Fang Liu emphasized how liberalization and innovation remain key to the region’s optimized and sustainable air connectivity.On the topic of liberalization, President Sciacchitano highlighted in his keynote address to the participants to the event, which was hosted by Nigeria’s Federal Ministry of Aviation and the International Partners for Aviation Innovation and Sustainability (iPADIS), that “the restoration of air connectivity is nothing short of vital for the 15 Economic Community of West African States (ECOWAS) member countries’ 308 million people, and for their many businesses which rely on cross-border travel.”
Tankers: West Africa Crude Oil Exports on The Decline (Hellenic Shipping News)
Tanker loadings from West Africa proved to be problematic numbers-wise, during 2020. In its latest weekly report, shipbroker Banchero Costa said that ‘2020 was overall a very negative year for crude oil trade, although of course the tanker market was partially shielded by the increased demand for floating storage. West Africa’s performance was pretty average in this context. In 2020, West Africa exported 205.9 mln tonnes of seaborne crude oil, which represented a -8.9% y-o-y decline compared to 2019.
West Africa accounted for 10.1% of global seaborne crude oil trade last year, ahead of Russia and ahead of the United States. In the first 3 months of 2020, West Africa exported 56.1 mln tonnes of crude oil, up +3.3% y-o-y. The second quarter of 2020 saw shipments of 52.5 mln tonnes from West Africa, down -6.2% y-o-y. In the third quarter, exports declined to 48.6 mln tonnes, which was down -17.8% y-o-y. The fourth quarter of 2020 saw 48.7 mln tonnes, down -14.2% on a year-on-year basis”, said Banchero Costa.
Blue Economy: Africa’s Untapped Potential for Economic Growth | AUDA-NEPAD
Africa is one of the most blessed continents in the world in terms of its potential marine and terrestrial natural resources. However, most of these riches, particularly the marine resources which contribute to the Blue Economy, are yet to be responsibly utilised to foster the economic transformation of a rich yet poor continent in the world. In most African countries, terrestrial resources seem to receive closer attention by governments and other stakeholders to the extent that certain conflicts and political instability in some parts of the continent result from such resources. On the other hand, the marine resources which include freshwater bodies and oceans can offer significant economic opportunities such as fisheries, seabed mining, oil drilling, aquaculture, trade, and tourism which can drastically transform Africa’s future.
Global economy
Global trade rebound suggests some lessons of COVID-19 are being learned (Trade for Development News)
In April 2020, global markets were in freefall. Governments around the world were debating whether to impose drastic new protectionist measures, and global trade appeared on the way to its steepest decline since the 2008 global financial crisis. While the COVID-19 pandemic was the direct cause of this chaos, the still simmering U.S.-China trade conflict and the collapse in consensus over the future of the World Trade Organization (WTO) exacerbated the concerns. The pandemic appeared poised to push global trade to the breaking point.
The recovery in merchandise trade began in June. By the end of the year, global COVID-related trade losses had been made up, with growth in merchandise exports up 7.8% year-on-year in December. For 2020 as a whole, the World Bank’s recent Global Economic Prospects report projects a decline in global trade slightly smaller than during the financial crisis year of 2009, although the 2020 GDP decline is projected to be nearly twice as large as 2009. Low-income countries experienced the first aggregate contraction in a generation, and are expected to remain 5.2% below the pre-pandemic projections by 2022.
At the core of the recovery are businesses that have found ways to adapt their supply chains even with production shifts to maintain social distancing, and amid policy uncertainty and new border procedures. Recent World Bank surveys with multinational businesses indicate that over half (58%) have turned to digital technologies to optimize capacity and improve logistics, and a third report mapping the tiers of their supply chains to improve visibility of potential vulnerabilities.
Prioritise pandemic relief, recovery and no time for debt buybacks (The Edge Markets MY)
Governments of developing countries are being wrongly advised to use their modest fiscal resources to pay down accumulated debt instead of strengthening pandemic relief and recovery. Thus, debt phobia risks deepening and extending Covid-19 recessions by prioritising buybacks.
Nearly half (44%) of low-income countries were already debt-distressed or at high risk even before the Covid-19 pandemic was declared in March 2020. Limited fiscal space has constrained developing countries’ relief and recovery measures, making them far more modest than those of developed countries.
Nevertheless, their government debt ratios rose faster in 2020. Many developing countries have taken on more debt, typically on non-concessional terms — from private lenders and non-Paris Club members. Public debt in emerging markets has thus surged to levels not seen in over half a century. From January to October 2020, the average debt burden of developing countries rose 26% as tax revenues declined sharply. The International Monetary Fund (IMF) projects their average debt ratios will increase by 7% to 10% of GDP in 2021, with some terming this a “debt pandemic”. Debt burdens limit fiscal resources and the policy space needed to better address the pandemic health and economic crises in developing countries. Debt is particularly debilitating in the least developed countries, where healthcare services were modest even before the pandemic.
Global Economy 2021: Prospects and Challenges (IMF)
In January, we projected 2021 global growth at 5.5 percent, but prospects of a stronger recovery are emerging – because of additional fiscal stimulus, especially in the U.S., and the prospects of broader vaccination. We will update our global forecasts in the new World Economic Outlook coming out in early April. However, the global recovery has been incomplete and unequal.
We don’t know how prolonged the health crisis will be. Access to vaccines remains very uneven, both across advanced and emerging economies. Low-income countries might not see significant vaccination well into 2022, and that is a problem: this pandemic will only really be over when it is over for everyone.
These challenges are daunting, but they can be overcome with concerted actions by all countries. Let me highlight three priorities. First, end the pandemic swiftly. Second, countries should maintain economic support and calibrate it to the stage of their recovery and the pandemic. Third, we must mitigate divergence across countries. This includes providing access to liquidity for developing economies and preventing climate change from hampering their economic growth and convergence.
Dubai-led World Logistics Passport expands to facilitate global trade (ArabianBusiness.com)
The World Logistics Passport (WLP), the first global freight loyalty programme, has expanded into a global network of trade megahubs in 11 nations. Launched last year under the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the Dubai-led program is being rolled out in 11 countries across four continents including India, Indonesia, Thailand, Brazil, Colombia and South Africa. Speaking about the WLP’s success, Sheikh Mohammed said: “The World Logistics Passport is yet another major initiative that reflects the UAE’s vision to shape a brighter future for our world through innovative programmes that foster global trade cooperation. Davos summit sees launch of World Logistics Passport, a major initiative to boost trade between Africa, Latin America and Asia. The WLP allows traders and freight forwarders to access benefits in return for increased trade in each of the programme’s hubs.
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Country focus
A joint meeting of the portfolio committees on Trade and Industry and of International Relations heard that Africa consumes what it does not produce and produces what it does not consume.
One of the challenges experience in the AfCFTA includes what is defined as “locally produced in Africa”, which could then potentially qualify for tariff concessions. For example, if a machine is 95% produced in China, but the assembly or packaging takes place in an African country adding only 5% value, this is clearly not made locally. The committee further heard that trade between African countries is small and covers only 16%-18% of traded goods. Compared this with intra-Asian trade (52%), intra-North America trade (50%) and intra-European Union trade (70%). Low levels of intra-African trade can be attributed to the unresolved legacy of colonialism in which Africa exports mainly to the rest of the world, including oil, minerals and cocoa. Africa mainly imports finished goods, but intra-African trade is largely in value-added manufactured products.
Okonjo-Iweala: Trade And Development In Discourse (Leadership Newspapers)
Nigeria’s share in world trade is 0.33 per cent”. “Nigeria’s share in Africa’s trade is 19 per cent, below its share of Africa’s Gross Domestic Product (GDP)”. And that is official! At every engagement in Abuja during the week with the Ministry of Trade and Investment, Presidency and Central Bank of Nigeria (CBN), Dr. Ngozi Okonjo-Iweala, first female African Director-general of the World Trade Organisation (WTO), opened her remarks with the unpleasant miserable statistics about Nigeria’s status in Manufacturing Value Added (MVA).
Nigeria, we were told, currently “ranks 103 out of 167 counties in terms of logistics”. It was her first working visit since she came into office as the 7th Director-general, on the 1st of March this year.
Remarkably she commendably turned despair into hope when she pointed to the opportunities in the abysmal national disability of low global trade and poor value addition. “I like to look at the optimistic side, when I saw this (the numbers) I knew that there was potential for us to do much. And that is the message I want to convey to the country. This means we can turn it around,” she said.
Economic Diversification: Emefiele Woos WTO Says Nigeria Needs Help to Reset Its Economy (Proshare)
The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele says Nigeria needs to be given a chance to reset and diversify its economy, just as he reiterated the determination of the CBN to address identified deficiencies in the Nigerian economy. He stated this in Abuja on Tuesday, March 16, 2021, while playing host to the Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala at the Bank’s headquarters.
NEC launches Ease of Doing Business report | Nairametrics
The National Economic Council (NEC) launched the sub-national Ease of Doing Business report at a virtual meeting chaired by Vice President Yemi Osinbajo on Thursday in Abuja. Mrs Jumoke Oduwole, Special Adviser to the President on Ease of Doing Business, briefed State House correspondents after the virtual NEC anchored from the Presidential Villa. Mrs Oduwole said the report would serve as an information resource to businesses and investors alike, citing that businesses would have access to data showing available business climate across Nigeria.
Lawan calls for improved trade between African countries (Vanguard)
President of the Senate, Ahmad Lawan has called for more trade between African countries to further enhance their economic Independence as a continent. Lawan made the call when the Namibian High Commissioner to Nigeria, Mr Humphry Desmond Geiseb paid him a courtesy visit on Wednesday in Abuja. The Senate President said, “we need to increase our level of trade because this is what will make us more independent. “Once we are able to achieve a reasonable level of economic independence we can take major decisions as a continent when it comes to bilateral and even multilateral issues. “Africa is challenged in so many ways. Our development levels vary of course but what is required of us is to ensure that we trade more between our countries. “The establishment of the African Continental Free Trade Agreement (AfCFTA) is a welcome idea to us in Africa. “It expands the frontiers of trade and infact investment in Africa and it is for African countries to now take the opportunity that will be made available by this Agreement.
Shiimi pins hopes on vaccines… budget seeks path out of pandemic (New Era)
Faced with the daunting task of ushering Namibia out of a prevailing recession coupled with significantly reduced revenue as a result of subdued economic activity brought about by a global pandemic, finance minister Iipumbu Shiimi yesterday tabled the 2021/22 national budget with a total proposed expenditure outlay of N$67.9 billion. However, out of this aggregate expenditure, N$8.5 billion, or 16.3% of revenue, is reserved for debt servicing interest payments, meaning the national budget actually amounts to N$59.4 billion of which N$53.9 billion is operational and N$5.6 billion is developmental.
SMEs advised to tap external markets to drive expansion (Business Daily)
Small and medium-sized enterprises (SMEs) have been advised to take advantage of external markets to grow their businesses amid the Covid-19 pandemic. Industrialisation Cabinet secretary Betty Maina said Kenya has negotiated several bilateral and multilateral trade agreements that SMEs should tap into. The latest deal is the newly signed economic partnership agreement between Kenya and UK that will eventually see duty on 82.6 percent of products originating from the UK abolished after 25 years. “Take advantage of the external markets that Kenya has negotiated for you by scaling production, increasing efficiency and diversifying products,” she told a forum for SMEs convened by the Nation Media Group (NMG).
CARICOM, Kenya move to strengthen ties | World News (Jamaica Gleaner)
The Caribbean Community (CARICOM) on Thursday accredited the first ambassador of Kenya to the regional body, marking a further step in their rapidly growing relationship. CARICOM Secretary General Ambassador Irwin LaRocque, in receiving the credentials of Ambassador Anthony Mwaniki Muchiri, said the occasion added a new chapter to the 2019 milestone year when Kenya’s President Uhuru Kenyatta paid visits to Jamaica and Barbados, and Prime Minister of Barbados Mia Mottley paid a reciprocal visit to Kenya.
CARICOM and Kenya are also actively considering a draft memorandum of understanding for the establishment of a Consultation and Cooperation Mechanism between the two sides.
Ugandan traders, CSOs want Kenya to lift ban on dairy, other products (Independent)
Traders and civil society organisations in Uganda are urging the government of Kenya to allow entry of all goods made in Uganda into their market for as long as they meet all the required standards. In separate interviews with The Independent, traders and sections of civil society organisations, said that just like the ban on maize was fast lifted, restrictions on dairy, poultry products should be eased/lifted to allow free movement of goods in line with the provisions of the East African Common Market Protocol.
Zimbabwe gives effect to post-Brexit market access offer (Chronicle)
The United Kingdom (UK) market remains open for Zimbabwean exports and sourcing of key raw materials under a post-Brexit market access offer, which came into effect early this year. Zimbabwe is a member to various bilateral and multilateral agreements, including SADC, Comesa, the latest African Continental Free Trade Area (AfCFTA) and the UK Economic Partnership Agreement, among others.
Before Brexit, Zimbabwe and UK trade relations were governed by the EU-ESA iEPA, which was signed in August 2009. The iEPA allowed Zimbabwe’s exports to enter the European market, including the UK then, duty free quota free for all goods exported by ESA countries, except sugar and rice, which had limited duration transitional arrangements. “Discussions on a new agreement were then entered into with a view to avoid trade disruption between UK and ESA member states. Parties agreed to trade under similar terms as those prevailing under the iEPA but, however, broadening and widening the agreement,” said the tariffs authority in a public notice yesterday.
The Republic of Zimbabwe signs the Treaty for the establishment of the African Medicines Agency (AMA) (Africanews)
The Republic of Zimbabwe becomes the nineteenth (19th) African Union (AU) Member State to sign the Treaty for the establishment of the African Medicines Agency (AMA) on 16 March 2021, at the AU Commission in Addis Ababa, Ethiopia. The AMA treaty was adopted by Heads of States and Government during their 32nd Ordinary Session of the Assembly on 11 February 2019 in Addis Ababa, Ethiopia. Speaking during the official signing of the Treaty, H.E. Amira Elfadil Mohammed, Commissioner for Health, Humanitarian Affairs and Social Development, at the African Union Commission, who received the delegation from Zimbabwe underscored the importance of establishing AMA in order to improve the production and harmonization of pharmaceutical products on the continent.
News from Africa and Africa’s international trade relations
AfCFTA: UNECA says only 11 African countries have validated agreement (Nairametrics)
The United Nations Economic Commission for Africa (UNECA) disclosed that 11 African countries have validated the African Continental Free Trade Area (AfCFTA) agreement implementation strategies, according to the United Nations Economic Commission for Africa (UNECA). This was disclosed by Mrs Vera Songwe, UN Under-Secretary-General and Executive Secretary, UNECA, at the 39th session of the Committee of Experts on Wednesday.
African countries continue to trade more with the outside world than among themselves, according to findings of an Economic Commission for Africa (ECA) assessment report on progress made on regional integration in the context of the COVID-19 pandemic.
Stephen Karingi, Director of Regional Integration and Trade Division at the ECA, while presenting the report findings said COVID-19 had severely disrupted the implementation of regional integration initiatives, including the African Continental Free Trade Area (AfCFTA), particularly trade through national border closures. “Implementation of regional integration continues to be hampered by governance, peace and security challenges,” said Mr. Karingi. “Digitalization is key in maintaining trade competitiveness and enabling effective participation in cross border e-commerce.” The report shows that in 2018, Africa accounted for only 2.6% of global trade which is a slight increase from 0.2% from 2017. Intra-African trade increased to 16.1% in 2018 ($159.1bn), up from 15.5% in 2017. Globally, output slightly decreased to 3.6% in 2018 from 3.8% in 2017.
The Economic Commission for Africa (ECA) is making significant progress in supporting African countries to leverage the African Continental Free Trade Area (AfCTA) to drive digital trade on the continent. This was said Thursday by Daya Bragante, Head of the Sub-Regional Initiatives Cluster in the ECA’s East Africa Sub-Regional Office (SRO-EA), at the ongoing 39th ECA Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development.
She said with the AfCFTA now operational, there was scope to pursue regional strategies to develop Africa’s digital economy. “ECA has been supporting the African Union Commission in the development of a digital strategy for Africa. The continental digital transformation strategy is designed to harness the benefits of digitalization and support the implementation of digital trade, digital identity and digital economy programmes in support of the AfCFTA.”
AfCFTA has potential to promote African integration – says Norwegian Ambassador to Ghana (Modern Ghana)
The Norwegian Ambassador to Ghana, H.E Gunnar Holm has highlighted the potential of the Africa Continental Free Trade Area (AfCFTA) to boost peace and stability on the African continent.
At the maiden edition of the Kofi Annan International Peacekeeping Training Centre’s stakeholder dialogue series, the ambassador said, “AfCFTA has the potential to drive Africa’s integration in a direction that fits in with the continent’s unique composition of countries, of people, resources and economic development.” “There will be challenges, but I am convinced that this is the way to go for regional peace and stability, for economic and social development and for fully harnessing the potential of the continent.” The theme of the dialogue was “The African Continental Free Trade Area (AfCFTA) and the Private Sector: Towards Effective Development and Sustainable peace,” and was organized to bring together stakeholders in the private sector to discuss how they can work together towards helping maintain peace and security in Africa.
HARARE FORUM - Boosting women’s economic empowerment with the African Continental Free Trade Area (ITC)
At the Harare Forum on the 16 March, the International Trade Centre (ITC) urged women entrepreneurs in Southern Africa to expand their business opportunities through the African Continental Free Trade Area (AfCFTA). Organized in collaboration with the Organisation of Women in International Trade (OWIT) in Zimbabwe, the high-level trade forum is part of ITC’s One Trade Africa programme – AfCFTA Dialogue Forums. Looking at ‘Trade Beyond COVID-19: Demystifying the AfCFTA for Zimbabwe/Southern Africa Women-led MSMEs’, the event’s discussions promoted ownership of the Agreement among the region’s participants as well as engaged women and youth-owned small firms in seeking out the potential business gains the AfCFTA can offer. Given the current COVID-19 situation, ITC highlighted the rise of existing gender inequalities, affecting women’s access to resources and equitable economic opportunities.
The Economic Commission for Africa will continue to support its Member States in their efforts to improve women’s access to capital, technology and digital financing, says Edlam Abera Yemeru, Chief of the Urbanization Section, of the Gender, Poverty and Social Policy Division at the ECA. In a presentation on the Committee on Social Policy, Poverty Reduction and Gender to the ongoing 39th ECA Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development, Ms. Yemeru said women entrepreneurs continued to face greater barriers to accessing financing for their small and medium-sized businesses than their male counterparts. This resulted in them failing to grow, she said, adding her division will continue to work towards the economic empowerment of women on the continent.
Speech - DDG Alan Wolff - DDG Wolff: Africa is a priority for the WTO
Africa is a priority for the WTO. The continent accounts for a substantial number of countries seeking to integrate their economies into the global economy through trade, who now for the first time have the prospect of benefitting from a major all-Africa economic integration project, the African Continental Free Trade Agreement (AfCFTA). The WTO Secretariat stands ready to assist in advancing the accession of Sudan through technical support and policy advice, as well as offering these kinds of support to helping make the AfCFTA a great success. Africa’s voice is now increasingly prominent in the WTO. This is the third day of our new Director General Ngozi Okonjo-Iweala’s visit to her home country, Nigeria. As a person, she was, is and will be a formidable leader. She will, I believe, bring forward momentum to the multilateral trading system. Sudan can play its part in creating this new era for international cooperation through its accession process improving the coverage and implementation of global trade rules.
Vaccines change outlook for African economies (Anadolu Agency)
This year looks positive for African economies, compared to the devastating impact of the COVID-19 pandemic in 2020, an expert said Thursday at the ongoing virtual conference of African Ministers of Finance discussing recovery. “The positive outlook is attributable mainly to the availability of vaccines and improved economic activity in the 4th quarter of 2020, holiday and travel expenditure,” said Hopestone Kayiska Chavula, in charge of the macroeconomic analysis at the United Nations Economic Commission for Africa (ECA).
Chavula said intra-Africa trade is expected to increase with the implementation of the African Continental Free Trade Area. He, however, underlined that the second wave of infections, expansionary fiscal measures, and rising debt levels could pose risks to growth in many African countries. Chavula cited climate change risks, particularly the high risk of extreme weather conditions, among other factors which could also undermine economic growth. He, meanwhile, said accommodative monetary policies have been maintained to cushion the negative effects of the pandemic on economic activity despite inflationary pressure in some countries.
Shots in the dark: vaccine rollout highlights Africa’s energy gap (Business Day)
As African countries scramble to acquire and roll out vaccines, the urgent need for reliable energy supply is once again in the spotlight. Health officials say at least two thirds of Africa’s 1.3-billion people will need to be vaccinated against Covid-19 if the continent is to achieve herd immunity. Meeting this target will be difficult, not least because of the lack of reliable power supply. Without urgent measures to address the huge power gap across sub-Saharan Africa the continent will struggle to not only contain Covid-19 and future pandemics, but also maintain sustainable economic growth. Even SA, Africa’s most industrialised economy with an electrification rate close to 90%, is being hammered by increasingly frequent and severe bouts of load-shedding, disrupting the country’s post-Covid economic recovery prospects. Accelerating investment in cost-competitive and employment-creating renewables will be key here.
Figures of the week: Africa’s spatial distribution of road infrastructure (Brookings Institution)
One of the pressing obstacles on Africa’s economic growth is its limited infrastructure. In a recent National Bureau of Economic Research working paper, “Spatial Inefficiencies In Africa’s Trade Network,” Harvard doctoral student Tilman Graff studies the spatial inefficiencies of Africa’s transportation industry and its impact on trade. However, the paper does not focus on Africa’s dearth of infrastructure (Africa has approximately 31 kilometers of paved road per 100 square kilometers of land in comparison to 134 kilometers of paved road in other low-income countries). Instead, the author delves into the extent to which the region’s existing infrastructure is in the right place.
It Pays to Link Products to Places – Here’s How African Countries Can Do it (The Fashion Law)
Around the world, people commonly associate certain foods and products with particular geographical areas. These products are known for characteristics like aroma, flavor, and the traditional knowledge systems used to make them. Legal and agricultural scholars speak of these characteristics as terroir.
These kinds of products, which have characteristics unique to their source, can be identified and protected by a type of intellectual property right called Geographical Indications (“GIs”). This right gives economic and financial advantages to the place of origin. The products can be registered with a global treaty registry like the World Intellectual Property Organization. This helps to counter fake products in the international market.
According to a 2020 European Commission study, Europe’s economy gained about 75 billion euros in the 2017 sales value of GI products. This means GI products accounted for 7 percent of the total sales value of Europe’s food and drink sector. The study also shows that the sales value of GI products doubled on average, when compared with similar products without GI certification. People attach value to buying authentic products from their sources. As a predominantly agrarian region, Africa could adopt this strategy to boost the economies of rural communities. The second phase of the African Continental Free Trade Agreement (“AfCTA”) focuses on intellectual property rights and trade. It is an opportunity to take steps towards recognizing the economic value of GIs.
Mideast firms see 50% sales surge from Africa (Khaleej Times)
Businesses in the Middle East expect a 50 per cent surge in sales revenue from Africa while they witness a drop in international sales from North America, a global study on trade flows has revealed. The study, commissioned by DP World and conducted by the EIU at the outbreak of Covid-19 in first quarter of 2020, found that optimism about future growth is widespread and assuming the pandemic does not worsen, and protectionist policies remain restrained, 77 per cent of companies in the region expect international sales to expand despite the disruption to supply chains.
Entrenching democracy in African countries: Policy imperatives for leaders in 2021 (Brookings)
While African countries faced many challenges in 2020, the year 2021 is creating many opportunities for them to significantly improve their governance systems. For one thing, COVID-19 has forced many policymakers and civil society leaders to recognize the importance of technology to political and economic participation.
Such a process augurs very well for inclusiveness and the entrenchment of democracy. So, in 2021, African governments should invest in the necessary infrastructure to significantly improve access to these participation-enhancing technologies.
EAC: It’s diplomatic strategy that can normalise relations (Daily Monitor)
The stresses of the East African economic community have on the whole been more of a warning against fast-tracking political federation. Although Burundi, DR Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda have been united or affiliated to a common services organisation and the common market for sometime, the formation of a “Federation of East Africa” has throughout the history of the region been made more or less likely by the disguised mini-trade wars fuelled by economic nationalism.
Yet a background of economic cooperation would conceivably have made political federation easier. While working abroad, diplomats hailing from East Africa tended to be more conscious of being East Africans than of being Kenyans, Tanzanians, Ugandans or Rwandans because of the commonalities existing between them. We formed a bloc and shared information and supported each other whenever it became necessary.
Central African States Say COVID-19, Conflicts Halt Integration (Voice of America)
The Central African Economic and Monetary Community (CEMAC) says armed conflict and the coronavirus pandemic have seriously damaged the economies of the six member-countries and put a halt to regional integration. The economic block, one of the least developed on the African continent, marked its 27th anniversary this week in Cameroon.
Although nearly three decades old, the CEMAC trade block is comprised of some of Africa’s least developed countries, which have struggled during the pandemic.
African Development Bank economist Georges Meka Abessolo says it will be difficult for Central African states to reach their goal of becoming emerging economies by 2035.
End of the CFA franc: A possible turning point in Francafrique? (Global Risks Insight)
The CFA franc has long been cited as the representation of France’s economic “grip” on Africa and forms a central pillar of Françafrique – France’s relationship with its former African colonies. However, in an effort to move away from the controversial aspects of the region’s common currency, France and the CFA countries have initiated a number of reforms – with the former also pushing for the adoption of the “Eco” by the West African Economic and Monetary Union (UEMOA). This move would help remove the most visible elements of French influence; however, it is unlikely to assuage the allegations of French neo-colonialism that hamper Paris’ foreign policy objectives.
Global economy
Global economy gets COVID-19 shot from US stimulus, but pre-existing conditions worsen | UNCTAD
The global economy is set to grow by 4.7% this year, faster than predicted in September (4.3%), thanks in part to a stronger recovery in the United States, where progress in distributing vaccines and a fresh fiscal stimulus of $1.9 trillion are expected to boost consumer spending, says a new UNCTAD report. But this will still leave the global economy over $10 trillion short of where it could have been by the end of 2021 if it had stayed on the pre-pandemic trend (Figure 1) and with persistent worries about the reality behind the rhetoric of a more resilient future. “A misguided return to austerity after a deep and destructive recession is the main risk to our global outlook,” says the report, Out of the frying pan …Into the fire?, published on 18 March as an update to UNCTAD’s Trade and Development Report 2020.
Biden called upon to support India, South Africa at WTO on Covid vaccines (Business Standard)
A group of lawmakers in the US have urged President Joe Biden to support the move by India and South Africa before the World Trade Organization for emergency temporary waiver of some Trade-Related Aspects of Intellectual Property Rights (TRIPS) rules to enable greater production and supply of COVID-19 vaccines, treatments, and diagnostic tests.
The move comes after India and South Africa, along with several other countries, have urgently gone to the WTO seeking a time-limited waiver of the TRIPS agreement. The previous Trump administration had opposed such a move.
The lawmakers said more than 60 US representatives would collectively write to Biden to announce support for the TRIPS waiver proposed by India and South Africa at the WTO. The temporary TRIPS waiver would allow countries and manufacturers to directly access and share technologies to produce vaccines and therapeutics without causing trade sanctions or international disputes, they said.
eTradeHubs: New deal for women traders, entrepreneurs (The Nation Newspaper)
To expand market access and economic opportunities for Micro, Small and Medium Enterprises (MSMEs) in Africa, especially women-owned businesses, the International Chamber of Commerce (ICC), in partnership with West Blue Consulting, United Parcel Services (UPS) and Trade Law Center (TRALAC), has unveiled a digital trade solutions platform, tagged ‘eTradeHubs portal’.
The eTradeHubs portal, a digital trade solutions platform, among other deliverables, provides a 24/7 interface for women traders and entrepreneurs in Africa (along with their male peers) to connect and access timely and up to date information, skills and operational tools, offered by the various service providers within the supply chain. eTradeHubs portal, which was developed by two indigenous African technology providers – Global Trade Solution (GTS) and West Blue Consulting – was also designed to leverage the benefits arising from the operationalisation of the African Continental Free Trade (AfCFTA) Agreement. So, it was aimed at reducing the time and cost of doing business by supporting enterprises at all levels – from micro to multinational.
Sustainable Supply Chains in the Era of Industry 4.0 | RoboticsTomorrow
The supply chain industry was already confronted with profound disruption before meeting its worst nightmare yet — the global coronavirus pandemic. One area some may have been overlooking in the quest to adjust to the ‘new normal’ is the environment.
Because supply chains consume resources on a large scale, they are responsible for a disproportionately large share of the world’s carbon emissions. Statistics show that CPG companies are responsible for emitting roughly 33 billion tonnes of CO2 into the atmosphere — which is equivalent to 66% of the whole world’s emissions combined. Meanwhile, more than 80% of greenhouse gas emissions and more than 90% of the impact on air, land, water, biodiversity, and geological resources are accounted for by the CPG companies’ supply chains, according to McKinsey.
Collaborative Innovation Required to Grow Back Maritime Industry (The Maritime Executive)
Ensuring future competitiveness of the maritime industry in post-pandemic times will require making it more efficient, predictable, sustainable, and resilient. This implies a change in the recipe for capital creation of involved actors and a change in mindset to overcome industry existing legacy systems and silo-thinking. Enhanced collaboration and innovation are crucial to achieve this.
For WTO reform, most roads lead to China. But do the solutions lead away? (Atlantic Council)
As US President Joe Biden moves quickly in his first one hundred days to address key priorities, one issue is crying out for urgent action: the precarious state of the World Trade Organization (WTO), which is confronting a variety of immediate and long-term crises. While the Biden administration has expressed its strong support for reform of the body and working with other WTO members, so far its specific positions and goals regarding the institution remain vague. The Biden administration has already won kudos for joining a consensus in the WTO’s General Council to select Ngozi Okonjo-Iweala as the WTO’s new director-general. But these kudos were easily earned after the Trump administration vetoed Okonjo-Iweala’s appointment despite her strong credentials and support from other WTO members, spurring an avoidable crisis. And the Biden administration must now address a remaining crisis from the Trump era: putting the WTO’s Appellate Body back in operation by unblocking the appointment of new members, even if this effort will take more time given the justifiable push for some fundamental reforms in the WTO’s dispute-settlement system.
UK recognises Africa’s dynamism and restates commitments to global issues (Engineering News)
In its 2021 integrated review, published on Tuesday, the UK reaffirmed its commitments to multilateralism, international cooperation, free and fair trade, development, countering the effects of climate change, global health, and development. Entitled Global Britain: The Integrated Review of Security, Defence, Development and Foreign Policy, the publication also identified Africa as one of the most dynamic regions of the world. “The creation of the Foreign, Commonwealth and Development Office is the springboard for all our international efforts, integrating diplomacy and development to achieve greater impact and address the links between climate change and extreme poverty,” wrote Prime Minister Boris Johnson in his foreword to the review. “The UK will remain a world leader in international development and we will return to our commitment to spend 0.7% of gross national income on development when the fiscal situation allows.”
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Country focus
South African logistics industry battles to regain momentum (Sea News)
While there has been a slight uptick in domestic and international cargo traffic in recent weeks, the fact remains that South Africa is struggling to counter the fallout of the Covid-19 pandemic and lockdown responses. Overall maritime cargo for January 2021 was down 15% compared to the same time last year, and according to industry body the South African Association of Freight Forwarders (SAAFF), there will be no “quick fix” to the situation.
Global container imbalances, port congestion and poor efficiency have taken their toll, and the hoped-for bump in cargo traffic after the “hard” level 5 lockdown was lifted did not materialise. February 2021 proved to be a much-improved month for air cargo, as the public started to adopt more positive sentiment towards flying both domestically and in Southern Africa. However, SAAFF warns the short-term outlook is not expected to improve while the operational curfew persists, even if the medium-term outlook looks slightly better
SA needs to expand export markets – Agbiz By Given Majola (IOL)
Wandile Sihlobo, the chamber’s chief economist, said industry stakeholders already knew the markets they were interested in. “These are the markets which the government should prioritise in its engagement with foreign equals in exploring trade opportunities. We are mindful that this is not an easy process as other countries would probably want a reciprocal arrangement when South Africa is pursuing a localisation industrial and trade policy approach. Nevertheless, those are trade-offs for policymakers to balance; all the industry could do is express its views on export markets that will support the expansion in domestic agricultural output,” said Sihlobo. Agbiz said it was unsurprising that South Africa’s agricultural sector was highly export oriented, with exports accounting for roughly half of the production in value terms, about $10.2 billion (R153bn) in 2020, up 3 percent year-on-year.
Special Economic Zones critical to SA’s economic recovery (SAnews)
Trade, Industry and Competition Deputy Minister, Fikile Majola says the Special Economic Zones (SEZ) programme will play a critical role in supporting the implementation of South Africa’s economic reconstruction and recovery plan. “The SEZ programme is at the core of the reimagined industrial strategy, which is purposefully structured to stimulate local and foreign direct investments. The SEZs are also going to play an important role in the African Continental Free Trade Agreement as we position our country to become a vibrant manufacturing hub of the African Continent,” Majola said. Majola was addressing the Select Committee on Trade and Industry, Small Business Development, Tourism, Employment and Labour on Tuesday.
Op-ed: How can South Africa’s sunset industry be extended? (Mining Review)
Mining is a sunset industry. No matter how deep we dig or far we go, minerals are finite, and their extraction becomes more challenging every year. The Minerals Council South Africa has stated that over the last decade, multi-factor productivity in South Africa has fallen by 7.6%. Mining output has declined by 10% and minerals sales has contracted by 11%. However, although we know that at some point we will run out of mineable resources, for now it is projected that there are still approximately $2.5 trillion of mineral resources in the country. No picture of South Africa’s future is complete without taking into account what mining can contribute to the economy. And harnessing technology is the only way that we will be able to get the most out of our mining resources in ways that are efficient, effective and responsible.
Trade PS advises Zambians in diaspora to invest in Zambia (Zambia Reports)
Ministry of Commerce Trade and Industry Permanent Secretary Mushuma Mulenga has urged the Zambian Diaspora in Australia and New Zealand to take advantage of the conducive business environment in Zambia and invest to contribute to the growth of a diversified and resilient economy. During a virtual meeting designed to inform the Diaspora about investment opportunities in the Zambian economy, Mr. Mulenga said the Zambian Government had created an investment climate that encouraged partnerships between indigenous and foreign enterprises.
Rebates could boost Nam’s struggling fashion industry (Namibian)
The Namibia Trade Forum (NTF) says policymakers should consider offering the manufacturing sector rebates – especially the underdeveloped sectors, such as the fashion industry. According to the Namibia Statistics Agency, fashion apparel costs the country more than N$740 million annually through imports. Simon at the trade talks said despite the Southern African Customs Union (Sacu) agreement of 2002 (as amended on 12 April 2013) which provides for member states to “apply identical rebates on imported goods”, Namibia rarely makes use of this tool to encourage industrialisation.
Call for simplified export procedures (Chronicle)
“I think it is high time we simplify. I am not asking us to take away the documents, but to simplify the process because a lot of industries face this challenge in the area of simplification,” Bulawayo-based industrialist who is also United Refineries Limited (URL) chief executive officer, Mr Busisa Moyo, noted. Manufactured exports currently constitute about 16 percent of total exports and industry believes there is significant room to expand the export basket, which is hugely dominated by raw exports, especially minerals and tobacco.
Nigeria records highest trade deficit since 1981 (Nairametrics)
Nigeria has recorded its biggest foreign trade deficit since 1981 as the trade balance stood at a deficit of N7.38 trillion in 2020. This is according to available data obtained from the National Bureau of Statistics (NBS). According to the recent foreign trade report, total imports in the year 2020 was valued at N19.9 trillion surpassing the total exports of N12.52 trillion, indicating a trade deficit of N7.38 trillion. This is the second time Nigeria is recording a negative trade balance in the past 10 years.
Shs34.6b worth of mineral exports not declared (Daily Monitor)
Minerals worth Shs34.6b were, between June 2017 and June 2020, exported out of the country without being declared, making Uganda lose billions of shillings in royalties, according the Auditor General’s report. The report, which notes that exporters offended laws governing mineral exports, indicates that minerals worth Shs8.3b were not declared to the Department of Geological Survey and Mining while minerals worth Shs26.3b were exported without permits. However, the Auditor General’s report did not review the performance of gold.
Millers raise red flag on high aflatoxin levels in maize (Business Daily)
Grain millers have raised concerns about high levels of cancer-causing aflatoxin in maize being delivered to their premises for processing, coming at a time when Kenya has flagged imports from Uganda and Tanzania. The Cereal Millers Association (CMA) said in a statement yesterday that tests done by its members when receiving the grain have found that the aflatoxin levels are higher than the allowable 10 parts per billion. The millers have also raised concerns that the rejected maize is finding its way into the market through other channels.
Why locals should be co-opted into mega projects (The East African)
“If a transportation corridor is to become a true development corridor bringing sustainable development and social wellbeing to a country such as Kenya and the region while minimising or eliminating environmental damage, these steps are essential,” said Dr Tobias Nyumba, research scientist, Development Corridors Partnership Project, African Conservation Centre/University of Nairobi. “Development corridors need not prioritise economic benefits alone,” Dr Nyumba said. “Therefore, the various stakeholders play a central role, regardless of the nature of costs and benefits they are likely to accrue from the development projects,” he added.
Zambia: Raising tax collection should help turn around economy, says analyst (The Africa Report)
An IMF statement on 4 March said that “significant progress” has been made, while noting that fiscal consolidation – cutting spending and collecting more tax – is among the key remaining challenges. Finance minister Bwalya Ng’andu said the government is committed to securing an IMF programme. But by highlighting the need for “more detailed policy steps”, the IMF is signalling that Zambia’s Economic Recovery Programme is an incomplete response to its debt crisis, argues Nick Branson, director at Gondwana Risk in London.
News from Africa and Africa’s international trade relations
On implementing the AfCFTA in 2021 (Trade 4 Dev News)
On 1 January 2021, Africa officially started trading under the African Continental Free Trade Area (AfCFTA) Agreement. The United Nations Economic Commission for Africa (ECA) is playing a key role in providing support to the AfCFTA process. ECA is collaborating with the African Union Commission (AUC) and various partners to advocate for AU Member States’ AfCFTA ratification and implementation, sensitization around the AfCFTA and technical support to the negotiations.
So far, 11 of the 41 countries and RECs have validated AfCFTA implementation strategies. The strategies aim at complementing the broader development framework of each country or region, especially in relation to trade and industrialization policies. Some are already implementing their AfCFTA strategies and have a National Committee in place to ensure proper coordination of implementation, policy coherence and effective domestication of the agreement. As of February, 41 State Parties had submitted their schedules of tariff concessions. Only a few countries, such as Cameroon, Egypt, Ghana and South Africa, have in place the needed customs procedures as required by the relevant AfCFTA provisions.
AfCFTA: Expert Harps on Trade Bank to Support MSMEs (THISDAY)
The Acting Director General/Chief Trade Negotiator of the Nigerian Office for Trade Negotiation, Mr. Victor Liman, has called for the establishment of a trade bank that would empower the Micro, Small and Medium Enterprises (MSMEs) to be able to participate fully in the implementation of the African Continental Free Trade Area (AfCFTA) agreement. The minister of Industry, Trade and Investment also said the AfCFTA was expected to complement Nigeria’s national development agenda and act as a catalyst for Nigeria’s export diversification.
Priorities for supporting trade under a build-back-better agenda (Brookings Institution)
Recent progress towards economic integration, starting with such regional blocs and culminating in the landmark African Continental Free Trade Area Agreement (AfCFTA), offers much promise for shared growth across the continent. Unfortunately, the COVID-19 pandemic – which has created production shutdowns, supply chain disruptions, and a profound decline in demand for economic services – has dampened what was an attractive growth trajectory for many African countries and delayed the ultimate implementation of the AfCFTA. Given the twin demand-supply shock African economies are experiencing, the region’s build-back-better agenda must address both sides of the issue.
Calls for Africa debt relief grow (The Herald)
Global lenders should consider a total debt relief for African countries that, like the rest of the world are reeling under the painful effects of Covid-19, the Southern African Parliamentary Forum (Sadc PF) has said. This comes as some African countries have already defaulted on their international debt repayment plans due to Covid-19, a global pandemic that has caused economic recessions worldwide. Speaking during a virtual meeting of the International Monetary Fund (IMF) Special Drawing Rights, on sustainable options for financing the fight against Covid-19 pandemic and economic recovery in Africa, Sadc PF secretary-general Ms Boemo Sekgoma said Africa should be given a fresh start, free of previous debts.
Call to track, measure women’s progress (New Era)
As the world marked International Women’s Day last week, the secretary general of the SADC Parliamentary Forum, Boemo Sekgoma, called for an advanced framework for tracking and measuring key indicators to ensure the progress of women in political participation. She noted that although “women’s political participation is a fundamental prerequisite for gender equality, democracy and for the achievement of the 2030 Agenda for Sustainable Development”, more remains to be done to ensure their meaningful political participation.
Social media report of tension at AfCFTA Secretariat is untrue – Trade Ministry (Myjoyonline)
Social media report of tension at the African Continental Free Trade Area (AfCFTA) Secretariat is untrue, the Ministry of Trade and Industry, has said. A statement signed by Patrick Y. Nimo, Chief Director, Ministry of Trade and Industry, copied to the Ghana News Agency, said the attention of the Ministry had been drawn to a social media report carried on an online portal on March 14th, 2021 titled “Secretary General of AfCFTA threatens to sack all Ghanaian employees”.
“The Ministry of Trade and Industry wishes on behalf of the Government of Ghana to state emphatically and unequivocally that there is no such rift or tension between the Ghanaian nationals and their foreign counterparts at the Secretariat,” the statement said.
Inside Africa’s world-leading coronavirus supply chain (The Hill)
Less than a year after its inception, the African Medical Supplies Platform hosts more than 600 suppliers selling products that can help combat the coronavirus through an interface that is no more complicated than Amazon.com. Access is limited to countries, health systems, nongovernmental organizations and donor organizations like UNICEF. The AMSP “came to actually bridge the gap between supply and demand.”
How African states can improve their cybersecurity (Brookings Institution)
The COVID-19 pandemic has accelerated digitalization around the world, but as life has shifted increasingly online, cybercriminals have exploited the opportunity to attack vital digital infrastructure. States across Africa, where digital capacity continues to lag behind the rest of the world, have emerged as a favorite target of cybercriminals, with costly consequences. In order to strengthen cybersecurity, African governments can take number of steps to improve their capacity to prevent and respond to cybersecurity vulnerabilities.
All set for the 2021 Conference of Ministers (UNECA)
The 53rd Session of the Commission and 2021 Conference of African Ministers of Finance, Planning and Economic Development will be held from Wednesday, 17 March 2021 to Tuesday, 23 March 2021, under the theme: Africa’s Sustainable Industrialization and Diversification in the Digital Era in the Context of COVID-19. This year’s theme embraces the need for African countries to achieve rapid economic growth through environmentally conscious industrialization and diversification while taking advantage of digitalization.
New Regional Forum Established to Deal with Escalation of NTBs (COMESA)
COMESA has established the Non-Tariff Barriers Regional Forum comprising of National Monitoring Committees and NTBs Focal Points. This new structure is aimed at further strengthening the Trade and Customs Committee and Trade and Trade Facilitation Sub- Committee as part of the institutional structures for the elimination of NTBs at the regional level. COMESA Director of Trade Dr Christopher Onyango attributed the prevalence of reported and unreported Non-Tariff Barriers to the constrained intra-regional trade noting that Member States have justified most of these as measures necessary to regulate trade.
Prosperity of SADC hinges on sustained peace and security, says SADC Executive Secretary
The prosperity of the Southern African Development Community (SADC) region is largely dependent upon sustained peace, stability and security as these form the foundation for sustainable development, SADC Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, has said. She highlighted that the Regional Indicative Strategic Development Plan (RISDP) 2020-30 and the SADC Vision 2050, which outline strategic interventions to address the emerging challenges and strategically position the region and shape the future of SADC, are anchored on a firm foundation of peace, security and good governance.
The ECOWAS Commission and partner organizations validate strategy (Modern Ghana)
The Directorate of Humanitarian and Social Affairs of the ECOWAS Commission in collaboration with the International Organization for Migration (IOM) under the Free Movement and Migration in West Africa Project (FMM) jointly funded by ECOWAS and the EU, organized an Internal Validation Meeting of ECOWAS Directorates on the Strategy for Strengthening Protection in the Context of Mixed Migration. The Strategy will focus on improved measures for the identification of mixed migrants at risk and coordination both within the ECOWAS Commission and improvement at the level of Member States amongst other priority approaches.
Africa’s youth could pioneer digitally driven growth (University World News)
A digital education implementation policy, which forms part of the African Union Commission’s Digital Transformation Strategy (DTS), is aimed at overhauling the face of education on the continent using digital technology, said Sarah Anyang Agbor, the commissioner for human resources, science and technology. Agbor said the DTS was part of Africa’s development Agenda 2063 and it would help to improve the continent’s education system, connectivity, content, pedagogy, cost of data, teaching and management, adding that, it would “explore the use of high-tech methods to bring about digitalisation”.
AUC Chairperson Outlines Priorities for The Next Four Years
For his second term as Chairperson of the AU Commission (2021-2024), Mr Moussa Faki Mahamat has outlined 8 key priorities that are in harmony with Agenda 2063: 1) Finalise the institutional reforms and strengthen the leadership of the Commission; 2) Enhance administrative and financial accountability; 3) Silence the guns at continental level; 4) Successfully execute key integration projects; 5) Food self-sufficiency, reduce poverty by building resilience through agriculture and the blue economy; protect the environment; 6) Operationalise policies in favour of youth and women; 7) Stimulate African thought on the obvious determining factors of crises; and 8) Renew strategic partnerships.
Global economy
South Africa among countries left with a massive bill from fighting for Covid vaccine scraps (BusinessTech)
South Africa, Colombia and other middle-income countries hit hard by Covid have lined up behind richer ones to buy vaccines in hopes of averting more suffering. AstraZeneca and its partner, the University of Oxford, have emerged as key suppliers to lower-income countries, pledging not to profit from them. Yet the vaccine has faced safety and efficacy questions, most recently when a number of European Union countries suspended their use because of concerns about dangerous blood clots. AstraZeneca said that analysis of millions of records has shown no evidence of an increased risk, and the World Health Organisation has also backed the shot. South Africa, which budgeted as much as R19.3 billion ($1.3 billion) to vaccinate two-thirds of its population, confronted a similar dilemma. After a small study indicated AstraZeneca’s shot offered minimal protection against mild to moderate illness caused by a new variant, it had to change course.
How the G20 can make the global recovery from Covid-19 more inclusive (ODI SET)
The emerging picture of recovery from Covid-19 is that of inequality – in countries like Canada, each person has been allocated almost 5 sets of Covid-19 vaccines and $8,141 worth of government stimulus. In low-income countries (LICs) like Bangladesh, current vaccine orders only cover 14 in every 100 people, with announced fiscal stimulus equivalent to only $26 per capita. The significantly higher level of public investment in sustainable green and digital sectors as part of Covid-19 recovery plans in advanced economies compared to LICs will further exacerbate divergent growth patterns.
Kenyan executives calls for gender parity to hasten pandemic recovery (CGTN Africa)
The realization of a post-pandemic economic recovery that is sustainable, inclusive and resilient is dependent upon greater involvement of women and girls, agreed a group of executives attending a virtual forum on gender parity held here Tuesday. Speaking at the virtual event organized by Global Compact Network Kenya in Nairobi, the executives said that bridging gender divide is key to speeding up recovery from social and economic devastations wrought by COVID-19 pandemic. “We call on the government to develop policies that can accelerate momentum towards achieving gender equality in a post-COVID-era,” said Sanda Ojiambo, the executive director of UN Global Compact.
Rising Market Power – A Threat to the Recovery? (IMF Blog)
The crisis has hit small and medium enterprises especially hard, causing massive job losses and other economic scars. Among these – less noticeable, but also serious – is rising market power among dominant firms as they emerge even stronger while smaller rivals fall away. New IMF research shows that key indicators of market power are on the rise – such as the markup of prices over marginal cost, or the concentration of revenues among the four biggest players in a sector. Due to the pandemic, we estimate that this concentration could now increase in advanced economies by at least as much as it did in the fifteen years to end of 2015. Even in those industries that benefited from the crisis, such as the digital sector, dominant players are among the biggest winners.
3 actions for business to prepare for a post-pandemic future (World Economic Forum)
Government-sponsored economic activity is likely to remain. COVID has not lessened the urgency to act on climate change. Businesses are now shifting focus to drive growth. The ambitious vaccine rollout programmes that are underway in many parts of the world are finally bringing hope that we may be turning the tide against COVID-19 and we can begin to open society and economies more broadly.
Q&A: COVID-era sustainable development needs flexible finance (Devex)
The COVID-19 pandemic has dramatically reshaped the global economic environment and financial priorities. For development finance, the crisis has created a need for more fluid mobilization of resources while keeping sight of long-term climate and sustainability goals. That has been reflected in the European Investment Bank’s operational plan for 2021, which highlights this need for realignment. Key to providing a long-term base for recovery will be private sector support, international and local partnerships, and projects that reduce inequalities exacerbated by COVID-19, said Ambroise Fayolle, EIB vice president responsible for development and climate policy.
Impact of pervasive broadband on digital financial services (Guardian)
Digital Financial Services (DFS) is a recent mobile-centric financial inclusion innovation in developing countries, Nigeria inclusive. Using ubiquitous mobile phones as the means of service access, DFS provides the unbanked and underserved – many of whom live in rural areas – with access to basic financial services provided by banks and non-banks such as mobile network operators (MNOs) and third-party DFS providers (DFSPs). A study has shown that with mobile phones as the primary access mechanism for services, access to DFS is highly dependent upon the degree and quality of mobile coverage offered by MNOs.
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Country focus
Consumer protection bodies reminded of mandate (SAnews)
Trade, Industry and Competition Deputy Minister Nomalungelo Gina has reminded regulators with consumer protection mandate to continue with their efforts to put a spotlight on consumer rights. “We all know that South African consumers are still grappling with the effects of COVID-19, I urge the National Consumer Commission (NCC) and other regulators in the consumer protection space to leave no stone unturned when dealing with unscrupulous suppliers that are exploiting consumers,” Gina said. Gina made the call during World Consumer Rights Day (WCRD) observed on Monday, under the theme ‘Protecting Consumers during COVID-19’.
Covid-19 Has Created Opportunities to Devise Innovative Ways to Trade: Consulate General Magabe (the dtic)
The South African Consulate General to the United Arab Emirates (UAE), Mr Mogobo Magabe says the challenge of COVID-19 has created an unprecedented opportunity to devise innovative responses to new challenges and trading. Mogobo was speaking during a virtual trade and investment webinar attended by both South Africa and UAE businesspeople today.
“This year has been a tumultuous year for all humanity. We are all grappling with the challenge of COVID-19 and with continuing to sustain international cooperation in a context of reduced opportunity for direct physical contact. While they are many challenges, the trade between South Africa and the UAE have proved its resilience during the hard times of lockdown and travel restrictions,” said Mogobo.
“The UAE is also an important hub for exports and re-exports of meat such as beef, mutton, goat and poultry including rabbit. There are 13 UAE approved abattoirs in South Africa, this is a small number as compare to other countries. That is why today we have invited both Dubai Customs and Dubai Municipality present to us about requirements to export to UAE which includes processes to obtain halal certificate and other important procedures,” he said.
Early Signs of Success for the Sugar Industry as Implementation of Master Plan Takes-off (the dti)
In the midst of the pandemic last year, the sugar industry showed signs of growth. This was said by the Minister of Trade, Industry and Competition, Mr Ebrahim Patel on Friday, at a meeting with farmers, millers, retailers, food producers and trade unions. The meeting held virtually, provided an update on progress in the implementation of the recently-signed Sugar Master Plan. The Report indicated a 15% growth in local sugar sales, in an industry that was previously described as facing crisis conditions. The industry saw increases in purchases of sugar from both the retail and industrial sectors, which includes soft-drink manufacturers. Minister Patel says in spite of these successes, there are challenges that need to be addressed speedily, to ensure the growth of the sugar industry.
Op-ed: It’s time South Africa had a serious talk about rail (Mining Review)
As President Ramaphosa highlighted in his presentation of the Economic Reconstruction and Recovery Plan (ERRP) to parliament in October last year, rail lies at the heart of reviving South Africa’s economy. Finance Minister Tito Mboweni is clear: rail has supported the economy for decades. Now, with infrastructure needing repairs or replacement, partnerships with the private sector and other players are critical.
Rail has long been the backbone of the South African logistics and transport value chain, and will become even more critical in a post COVID-19 environment. It is cheaper, cleaner and more efficient than road transport, and lends itself to carrying cargo in a sanitised, minimal-contact environment. The case for rail, we believe, is clear and compelling. Rail remains the most viable option for the transportation of freight like grain, automotive components and fully built car units and minerals. It will reduce road congestion, and free our roads up to carry commuter traffic and sensitive
Zimbabwe to produce Covid-19 medicines (The Herald)
Zimbabwean companies are poised to get funding from the Southern African Development Community (SADC) for the manufacturing of Covid-19 medical and other pharmaceutical products. Dr Tax informed the council that 17 companies from the region have been earmarked to manufacture Covid-19 medical and other pharmaceutical products under the initiative supported by the European Union (EU) and German development agency, GIZ. The initiative is aimed at enhancing the capacities in research and manufacturing of pharmaceuticals, essential medicines and medical supplies.
The SADC Council of Ministers held a virtual meeting on March 12, 2021, to discuss policies, strategies and programmes geared towards consolidating SADC regional integration in fulfilment of Council’s mandate as spelt out in Article 11 of the SADC Treaty.
Simplify export procedures: Industry (The Herald)
Manufacturers have implored the Government to simplify export procedures, as industry must refocus following the recent launch of the African Continental Free Trade Area (AfCFTA), which opens a 1,3 billion people market. This was said by United Refineries chief executive Busisa Moyo, who is also Zimbabwe Investment Development Authority (ZIDA) chairman and Confederation of Zimbabwe Industries (CZI) past president. Further, Mr Moyo said entrenching macroeconomic stability (exchange rate, inflation), political will, efficient infrastructure (borders, roads, ICT)), retooling finance (structured finance), competitiveness and retraining will be among key requirements to tap into AfCFTA.
COVID-19 Further Pushes Nigeria’s Unemployment Rate Northwards (ProShare)
After a spasmodic schedule of data releases on unemployment and labour statistics, the NBS finally released the much awaited unemployment numbers for Q4’20 this afternoon. Not surprisingly, the number spiked by 6.2% to 33.3% from 27.1% in Q2’20. The figure now makes Nigeria jump from No. 5 to the 3rd highest rate of unemployment in the world. The highest being Bosnia and Herzegovina (33.69%) and the 2nd highest in Africa next to Namibia, which has an unemployment rate of 33.4%.
This data point will be very disturbing to policy makers after the stimulus package of N2.3trn or 4% of GDP and the recent greatly heralded exit from recession. It is troubling to the extent that when conflated with the high level of multidimensional poverty of 64.8% in the Northwest of Nigeria, it shows that there is a simmering crisis of poverty, unemployment, debt and productivity in Nigeria. The misery index, which is the sum of unemployment and inflation, will increase to 49.77%. The good news, however, is that underemployment declined by approximately the same magnitude 5.8% as the increase in unemployment. It looks coincidental but it means that an underemployed man is less dangerous to society than a completely unemployed citizen.
How trade can hasten Nigeria’s economic recovery, by Okonjo-Iweala (The Guardian Nigeria)
Director-General of World Trade Organisation (WTO), Dr. Okonjo-Iweala, has situated the centrality of trade in Nigeria’s quick economic recovery if the populous black nation could add more value to its products and improve infrastructure for competitiveness. She urged the country to step up action on the agricultural value chain, information technology, fisheries among others, noting sadly, that Nigeria’s stakes in global and continental were 0.33 and 19 per cents. Describing the statistics as a small fraction of what the country could achieve during separate courtesy visits to President Muhammadu Buhari; Ministers of Finance, Budget and National Planning, Zainab Ahmed; Industry Trade and Investment, Adeniyi Adebayo; and Foreign Affairs, Geoffrey Onyeama; yesterday in Abuja, the WTO DG noted:
“Nigeria ranks 103 out of 167 countries in logistics and that means we have a long way to go. For me, that is a potential area we can invest to improve our logistics so we can take advantage of trade within the African Continental Free Trade Agreement (ACFTA).” Okonjo-Iweala continued: “We have difficulty and challenges with our economy. We have to move fast. We have potential to do so much better, and trade is a very strong part of that story. But I am glad that in world trade, Nigeria is active in the area of agriculture and joint statement initiatives.”
LCCI urges FG to set up resolution mechanism between the Customs and business community (Nairametrics)
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to create an Independent Appeal Mechanism to settle disputes between the Nigeria Customs Service (NCS) and the business community. This was disclosed by the Director-General of LCCI, Dr Muda Yusuf, in a statement on Sunday in Lagos. The commerce boss said that a resolution framework was needed as Nigeria prepared to join the African Continental Free Trade Area (AfCFTA). “The LCCI calls on President Muhammadu Buhari to intervene by setting up an Independent Appeal Mechanism to deal with issues of valuation and HS classification between the Nigeria Customs Service and the Business community. “This could be done within the framework of an Executive Order as this is necessary to restore the confidence of investors in the international trade process,” he said.
Ghana, Rwanda seek to deepen trade, tourism and investments (The New Times)
As African countries continue to break the ground for trade under the African Continental Free Trade Area (AfCFTA) agreement, Ghana and Rwanda are looking to increase trade, tourism and investments with each other. A delegation of 30 officials from Ghana’s sectors of tourism, trade and investment are currently in Rwanda on a 6-day visit, where they will meet with officials from both the government and private sector, as they seek to explore opportunities in which the two countries can partner. “We want Ghana and Rwanda to work more closely in areas of business and tourism. We really want to take a lot from Rwanda back to Ghana, and also bring a lot from Ghana to Rwanda,” said Bella Ahu, the President of Ghana Tourism Federation, who is one of the officials making up the Ghanaian delegation.
“The free-trade area is actually opening the doors wider for us to come together and put business together, so we are happy we are here. We want to see what we can do together. We want to know the needs of Rwanda and provide for them, and at the same time, we also want to see how Rwanda can provide what is needed in Ghana,” she added.
SEATINI suggests ways of improving Uganda-Kenya trade relations (Independent)
As players in maize trading between Uganda and Kenya workout modalities for improving trade relations, questions remain on whether authorities can walk-the talk. On March 11, Kenya announced the lifting of a ban on imports of maize grain from Uganda and Tanzania with strict adherence to standards.
UAE retains position as biggest buyer of Ugandan products (Independent)
United Arab Emirates has retained its position as the biggest buyer of Ugandan products for the fourth consecutive year after making orders worth US$1.84 billion from Kampala in 2020, latest data shows. However, China retained its spot as the leading seller of manufactured products to the east African nation. The United Arab Emirates rose to the top export market position upon hitting the US$485.13million mark in 2016 at the expense of Kenya, whose orders stood at US$ 422.99million. Data from Bank of Uganda shows that Kenya emerged second as Uganda’s export market with orders worth US$465million, representing 11% market share of the country’s total export revenues.
Kenya, Tanzania enable multinationals evade taxes (The East African)
Kenya and Tanzania are among the world’s 70 countries notorious in helping multinational corporations to underpay corporate income tax, leading to lower revenue collections and persistent budget deficit, according to the latest Corporate Tax Haven Index (CTHI 2021) by Tax Justice Network Africa (TJNA), a Pan-African research and advocacy organisation. The findings of the study which were made public last week show that Kenya is responsible for 0.1 percent of the world’s corporate tax abuse with CTHI of 0.14 percent, haven score of 50 percent and Global Scale weight of 0.013 percent.
News from Africa and Africa’s international trade relations
ECA and stakeholders in East African Community (EAC) meet to review AfCFTA strategy
The African Trade Policy Centre (ATPC), a unit of the Economic Commission for Africa (ECA), together with stakeholders in the East African Community (EAC) are meeting tomorrow to review the Community’s draft implementation strategy for the African Continental Free Trade Area (AfCFTA). The virtual meeting will among other things review the ratification and compliance of the strategy with existing agreements, the Community’ response to the COVID—19 pandemic and the development of an implementation work plan. The ATPC is supporting 41 African countries and regional economic communities (RECS) in the development of the AfCFTA strategies across Africa. This includes the EAC, to which it is providing strategic and policy recommendations on how best to improve the implementation of the AfCFTA within the EAC, with a view to promoting trade performance, competitiveness, digitalization and investments.
ECA and UNCTAD jointly hosting event to discuss women’s role in cross-border trade in Africa
The Economic Commission for Africa (ECA) and the United Nations Conference on Trade and Development (UNCTAD) are jointly organizing a webinar on Wednesday 17 March to discuss women’s role in small-scale cross-border trade in Africa. The virtual event is taking place on the sidelines of the 65th Commission on the Status of Women (CSW), the main global intergovernmental body dedicated to the promotion of gender equality and women’s empowerment. The topic for discussion is the future for women’s small-scale and informal cross-border traders in Africa, and it comes in response to the global health crisis, as countries in Africa introduced restrictive measures affecting the movement of people and merchandise. “As has been the case with other shocks, women risk bearing the brunt of this pandemic,” the organizers said, adding: “A more tailored package of measures is needed.”
Focus should now be on recovery, building resilience for job creation (Daily Monitor)
We are living in times of great uncertainty, fuelled by the onset of Covid-19. Despite this, we have maintained our focus on supporting trade and building prosperity, creating jobs, and reducing poverty in eastern Africa. Covid-19 is daunting, complex, and ubiquitous. It is not just a public health matter; but also affects progress in the fight against poverty in Africa, due to its direct impact on jobs and economic performance. It has catalysed rethinking of global supply chains, shaken traditional patterns of partnerships, but also stimulated unanticipated innovation. It has magnified the importance of trade as a driver for development and building resilient economies. It is noteworthy that projected economic growth has more than halved in many countries, particularly in East Africa. TradeMark East Africa has responded by creating a Covid-19 mitigation programme that leveraged our 10 years of experience, in addition to accelerate core programming with higher levels of innovation and forged new partnerships to address challenges to eastern Africa’s recovery.
SADC builds momentum on trade pact (The Southern Times)
Excitement over projected intra-Africa trade growth swelled last week, as SADC governments, experts and a regional lender rallied industrialists to scale up business under the African Continental Free Trade Area (AfCFTA). “For this trade to prosper there will be a need for the development and indeed utilisation of enabling infrastructures such as roads, rail, and inland bridges. On the side of trade in services opportunities are abound in financial or non-banking services like insurance and micro-lending, energy sector and transportation,” said Mr Phazha Butale, chief negotiator in Botswana’s Ministry of Investment Trade and Industry.
Namibia exports to Africa declined by 13 percent in 2020, but hopes remain that AfCFTA will see the country improving exports. “As such, AfCFTA provides Namibia with an opportunity to widen its market share for both imports and exports,” said daily newspaper New Era. In South Africa, President Cyril Ramaphosa has described AfCFTA as “the greatest step towards continental unity since the founding of the Organisation of African Unit”. Zimbabwe’s Industry and commerce minister, Mrs Sekai Nzenza told industrialists to brace for better trade and investment opportunities as the region throws away trade barriers to 90 percent of goods originating from member States.
Keep remittances flowing to Africa (Brookings)
Remittances—money sent by migrants to families back home—provide a financial lifeline to millions of households. Remittance flows to low- and middle-income countries reached $550 billion in 2019, surpassing foreign direct investment and official development aid. These are only recorded flows; the true size—including those through informal channels—is even larger. Remittance flows to sub-Saharan Africa were recorded to be $48 billion in 2019 (Figure 1.8), but the true total is likely to be significantly larger.
Strengthening Africa’s medicine manufacturing capacity: Opinion (IOL)
A recent pre-feasibility study for the establishment of manufacturing plants for essential medicines and health commodities in the Southern African Development Community (SADC) showed that several essential medicines can be made more cost effectively in Africa. There is a caveat, as this model relies on the need for longer-term commitments for procurement, the implementation of a pooled procurement strategy for the region, and, most importantly, government incentive schemes such as tax breaks and duty-free capital goods.
No country in Africa can sustain a market by itself. In the case of a single country manufacturing drugs for itself, where the market is large and therefore capable of sustaining a product – as in India, China and the United States – the situation is different. In Africa, which is made up many countries with different disease priorities and regulatory systems, a different commercial model is required.
SMEs in renewable sector receives leg-up from TDB (Engineering News)
The Eastern and Southern African Trade and Development Bank (TDB) on March 15 launched an off-grid facility for small and medium-sized enterprises (SMEs). The $75-million facility is aimed at facilitating access to debt financing for SMEs, primarily targeting renewable energy businesses in the off-grid energy sector, as well as SMEs in the broader infrastructure value chain operating in the region served by TDB.
Oil will play a vital role in empowering Africa for the next two decades – ARDA (Modern Ghana)
Executive Secretary of the African Refiners and Distributors Association, Anibor Kragha, has indicated that oil will play a vital role in empowering Africa for the next two decades. He said nations in Africa will reap the potentials in the petroleum downstream sector following the implementation of the African Continental Free Trade Area (AfCFTA). “Oil will definitely play a vital role in empowering Africa in the next two decades. In fact, when you look at the energy mix for Africa, you will realize that oil will still be about 60% of the primary energy mix for Africa for the next two decade and ARDA is committed to leading Africa’s energy transition story over that period,” he stated.
Consequences of COVID-19 on African Caribbean Pacific and EU countries (The European Sting)
The ACP-EU Joint Parliamentary Assembly (JPA) calls on the EU to make COVID-19 vaccines a global public good that is accessible to all. The ACP-EU joint parliamentary assembly (JPA) adopted on Friday a resolution calling on the EU and its member state to provide greater support to ACP countries, especially those with the most vulnerable populations and whose economies and health systems are most precarious.
“The COVID-19 pandemic is a global crisis that requires a global response. We therefore expect EU member states and ACP countries to cooperate constructively with each other to combat the pandemic within the framework of multilateral institutions. These are needed more than ever and should be strengthened even further, rather than being weakened. None of us are safe until all of us are safe, Co-President of the ACP-EU Joint Parliamentary Assembly Carlos Zorrinho (S&D, PT) said
EU mulls visa pressure so African states take back migrants (The Associated Press)
European Union ministers on Monday debated ways to persuade northern African countries to take back migrants denied entry into the 27-nation bloc, as the EU considers making it more difficult for those failing to cooperate to secure European visas.Migrants arriving in Europe without authorization routinely lose or destroy their identity documents, or use fake papers, making it hard to work out where they came from and send them home. Sometimes the countries they live in or transit through are reluctant to take them back.”We have to work for safe and fair and regular migration. We have to put together incentives in order to make third countries accept the people who have to go back, and to create a flow of regular migration,” EU foreign policy chief Josep Borrell said.
Biden should send COVID vaccine to Africa, counter China’s influence (Business Insider)
A new president brings opportunity for a new strategy towards Africa, a continent that has too often been ignored by American presidents. President Joe Biden’s decision to back Ngozi Okonjo-Iweala for head of the World Trade Organization is a step in the right direction. Africa is home to some of the fastest growing economies in the world, with unbridled entrepreneurial youth. Much of the continent’s populace view American ideals favorably, but many are worried about a prolonged period of American disinterest.
To counter this “vaccine diplomacy” from China, the US should provide Africa with COVID tests and supplies. African leaders and the public are frustrated by the lack of access to vaccines, which are being stockpiled by wealthy Western countries like the US. The continent requires more than 1.5 billion doses to meet its targets, but only about a million have been shipped to South Africa, with a few million more expected to arrive to select countries in coming months.
Global economy
Competitive in good times, resilient in bad times: What COVID-19 taught us about MSMEs (Trade 4 Dev News)
In January 2020, the spread of an infectious disease appeared at the very bottom of the World Economic Forum’s top ten high-impact risks. A year later, it had risen to number one. As of mid-February 2021, COVID-19 had infected nearly 110 million people, and caused close to 1.5 million deaths and US$28 trillion in economic losses.
The impact of the crisis also differed across sectors. Survey results show that COVID-19 affected companies in the services sector more severely, particularly those in accommodation and food services, followed by non-food manufacturing, retail and wholesale, and travel and transport. Micro, small and medium-sized enterprises (MSMEs) are overrepresented in most of these sectors.
These findings unfortunately do not come as a surprise. Small businesses are often cash strapped, hold less inventory and have smaller and less diversified networks of suppliers, among other constraints. Absorbing revenue shortfalls, making up for input shortages or tapping into new suppliers is thus more challenging. Despite the bleak picture, ITC found that many MSMEs displayed a high degree of resilience. This is probably because MSMEs face an ‘innovate or die’ dilemma, unlike large firms that have resources to sustain them through crises. What was learned from these MSMEs can and should inform the development of strategies to make firms more resilient to any future crisis.
More international cooperation needed to better protect consumers (UNCTAD)
As the impact of the COVID-19 pandemic on consumers’ lives intensifies, so does the need for international cooperation to protect them. Consumers have faced a shortage of essential goods and services, hoarding, new forms of misleading advertisements and other deceptive commercial practices seeking undue advantages in these challenging times, all in a ubiquitous digital environment.
“The COVID pandemic has highlighted the need for more international cooperation to better protect consumers, especially for product safety and for online purchases,” said UNCTAD Acting Secretary-General Isabelle Durant during the European Consumer Summit 2021 held online to mark the day. UNCTAD’s World Consumer Protection Map shows that 60% of the countries that provided data for it have no experience in cross-border cooperation. When it happens, it’s mainly among developed countries.
International cooperation in consumer protection is only feasible when effective national laws, policies and institutions are in place. “The African Continental Free Trade Area is an ideal platform to protect African consumers at the regional level,” said Hussein Hassan, acting director of the department of trade and industry at the African Union. “We are eager to engage with other international partners to enhance our capacities.” Technical cooperation to developing countries must remain a priority for all actors with a stake in consumer protection.
The need for speed: faster vaccine rollout critical to stronger recovery (OECD)
A global economic recovery is in sight but a faster and more effective vaccination rollout across the world is critical, while respecting necessary health and social distancing measures, according to the OECD’s latest Interim Economic Outlook. Activity in many sectors has picked up and adapted to pandemic restrictions over recent months. Vaccine deployment, although uneven, is finally gaining momentum and government fiscal stimulus – particularly in the US – is likely to provide a major boost to economic activity. But the pandemic is widening gaps in economic performance between countries and between sectors, increasing social inequalities, particularly affecting vulnerable groups, and risking long-term damage to job prospects and living standards for many people.
The OECD sees global GDP growth at 5.6% this year, an upward revision of more than 1 percentage point since its projection in December 2020, and 4% in 2022. World output is expected to reach pre-pandemic levels by mid-2021 but the pace and duration of the recovery will depend on the race between vaccines and emerging variants of the virus.
The outlook for global growth would be better than currently projected – and approach pre-pandemic projections for activity – if the production and distribution of vaccines accelerates, is better co-ordinated around the world and gets ahead of virus mutations. This would allow containment measures to be relaxed more rapidly. But if vaccination programmes are not fast enough to cut infection rates or if new variants become more widespread and require changes to current vaccines, consumer spending and business confidence would be hit.
With over 2.6 million dead and 117 million infections, no country in the world has remained untouched by COVID-19. Yet one year on from the declaration of the pandemic by the World Health Organization, evidence shows that crisis-affected countries have been especially hard-hit by the secondary impacts of the crisis, including rising poverty rates, a rise in domestic and other forms of violence and an erosion of trust between citizens and state. In response, United Nations Development Programme (UNDP) and group of g7+ countries have today called for greater international support to help vulnerable populations recover from COVID-19 during an event held as part of the UNDP-led Development Dialogues: Rethinking Solutions to Crisis in the Decade of Action series. “We know the coronavirus does not discriminate. However, the measures that are taken to contain it, do,” said Haoliang Xu, United Nations Assistant Secretary-General and UNDP Assistant Administrator and Director of Bureau for Policy and Programme Support, at the event.
“The pandemic is hitting the world’s poorest and most vulnerable people hardest, with significant implications for marginalized groups, including women and girls. This is even more pronounced in crisis settings. Addressing these challenges and making additional investments to reduce economic and societal vulnerabilities in the face of COVID-19 will be critical,” said Xu.
SE4ALL launches campaign to help drive reliable energy supply (Engieernig News)
International organisation Sustainable Energy for All (SEforALL) has launched a new year-long campaign called “Be Bold” to drive ambitious action to meet Sustainable Development Goal number seven (SDG7), which calls for affordable and reliable energy for all by 2030. The campaign follows the realisation that affordable and clean energy for all can help alleviate the global crises of extreme poverty and climate change.
Are we on track for a Green Recovery? Not yet (Africa Renewal)
The report, Are We Building Back Better? Evidence from 2020 and Pathways for Inclusive Green Recovery Spending, calls for governments to invest more sustainably and tackle inequalities as they stimulate growth in the wake of the devastation wrought by the pandemic. The most comprehensive analysis of COVID-19-related fiscal rescue and recovery efforts by 50 leading economies so far, the report reveals that only $368bn of $14.6tn COVID-induced spending (rescue and recovery) in 2020 was green. UNEP’s Executive Director, Inger Andersen: “Humanity is facing a pandemic, an economic crisis and an ecological breakdown - we cannot afford to lose on any front. Governments have a unique chance to put their countries on sustainable trajectories that prioritize economic opportunity, poverty reduction and planetary health at once - the Observatory gives them the tools to navigate to more sustainable and inclusive recoveries.”
Secretary-General “impressed” with Rwanda CHOGM progress (The Commonwealth)
The Commonwealth Secretary-General Patricia Scotland has congratulated the Rwandan government on progress in its preparations for the Commonwealth Heads of Government Meeting (CHOGM), due to be held in the capital Kigali later this year. “Rwanda very much looks forward to hosting the Commonwealth family in their second home and we hope that your delegations will take time to visit our beautiful country and learn more about our people and our culture,” Foreign Minister Honourable Vincent Biruta said.
Members of Informal Working Group on Trade and Gender agree on work plan for 2021 (WTO)
Members agreed to Canada’s proposal for the work plan, which outlines activities aligned with the four key elements that the Informal Working Group intends to focus on: reviewing gender-related analytical work; experience sharing on increasing the participation of women in trade; considering the concept and scope for a “gender lens” and how it could apply to the work of the WTO; and supporting the WTO Aid for Trade work programme.
A number of members at the meeting said time could be spent later in the year to draft a declaration on trade and gender for the 12th Ministerial Conference, which will take place in the week of 29 November in Geneva. Several members suggested additions to the work plan as well, which Canada said it will incorporate in a revised document.
The WTO is choosing pharmaceutical profits over global immunity (Quartz)
The wealthiest countries in the world have blocked the latest effort by poor nations to speed access to Covid-19 vaccines and treatments by temporarily lifting World Trade Organization rules protecting intellectual property. Sponsored by South Africa and India and backed by 57 nations, the waiver proposal under discussion since last autumn would have suspended, for the duration of the pandemic, portions of the TRIPS (Trade Related Protections for Intellectual Property Rights) Agreement covering medical necessities. This would allow developing economies to begin manufacturing medical goods without waiting for—or adhering to—licensing agreements with pharmaceutical companies that own the underlying intellectual property for medicines and vaccines.
The intellectual property provisions cover not just the specific formulas for medicines and vaccines, but also the proprietary software and techniques often needed to manufacture them. “While ramping up supply is completely essential, it is also wrong to say that IP isn’t the issue,” Yuanqiong Hu, a policy adviser with MSF, said in February. “IP is posing existing and emerging barriers to ensuring access to medicines, vaccines, and other medical tools can be available and accessible in an equitable and universal manner.”
Brexit: building trade access and market presence – Produce Blue Book
After four years of Brexit talk, one might be forgiven for thinking that we have had enough of discussing the pros and cons of trade deals for British fruit and vegetable businesses. While probably ending up with the best deal possible from Brexit, the early days of our new trading arrangements have seen the use of non-tariff barriers slow down United Kingdom agri food exports to, and imports from, Europe. As several key supply chain players have commented: “tariff free does not always feel like tariff free when you read the fine print.” Brexit might not be over just yet. In the UK though, this will be a decade dominated by trade deals and their ramifications.
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Country focus
Imports pick up as trade recovers in fourth quarter, according to Reserve Bank data (News24)
South Africa’s current account balance remained in surplus territory during the fourth quarter of 2020, although it narrowed slightly. The South African Reserve Bank (SARB) on Thursday released data on the balance on the current account of the balance of payments for the fourth quarter.
Trade continued to recover from the harsh impacts of the Covid-19 pandemic and associated lockdowns, but the country’s trade surplus narrowed slightly from R450.9 billion recorded in the third quarter to R425.2 billion – this due to the value of merchandise imports increasing more than that of exports. The value of exports however surged to an “all-time high”. “The higher value of merchandise imports resulted primarily from higher volumes while merchandise exports reflected increases in both volumes and prices,” the report read. The balance of service transactions (travel, transportation and other services), income transactions (dividends, interest return on financial assets, compensation for employees) as well as current transfers, saw its shortfall widen from R156.4 billion to R227.4 billion in the fourth quarter.
UK allays fears Kenya trade pact is against spirit of regional bloc (The East African)
The UK government has sought to allay fears that the recently signed British government’s new bilateral trade agreement with Kenya will undermine the East Africa Community Customs Union protocol. While addressing the media shortly after holding the first mini Kenya-UK trade exhibition at a Nairobi hotel on Friday, the UK High Commissioner to Kenya Jane Marriott said the deal will be extended to the rest of the EAC. “The Economic Partnership Agreement between Kenya and the UK that we negotiated together is fully intended to be an EAC solution. The agreement allows the other EAC partner states to join it,” said Ms Marriot. The decision by Kenya to negotiate unilaterally, despite being a member of the EAC has not gone down well with the rest of the community members.
Rejected law on sugar haunts cane growers (Nation)
Sugarcane farmers are urging the State to protect them from low prices for their crop in the latest bid to turn around their bitter fortunes. This is after a law meant to regulate the sub-sector including producer prices was shot down by a parliament team. The Committee on Delegated Legislation in its report on the Crops (Sugar) (General) Regulations of 2020, said the Agriculture ministry did not undertake public participation contrary to the law.
The rules, which were gazetted in May last year among other things empowered Agriculture CS to form a committee to set prices for sugarcane delivered to millers to protect growers from unfair pricing. And now the Kenya National Federation of Sugarcane Farmers (KNFSF), a lobby for sugarcane growers says they need a safety net from a looming market price destabilisation over planned importation of sugar to cover the country’s supply deficit.
How commodity exporting countries like Ghana have been hit by COVID-19 (The Conversation CA)
Ghana generates over 80% of its export revenues from three primary commodities - gold, crude oil and cocoa exports. It is classified by UNCTAD as commodity dependent, making it vulnerable to sharp drops in commodity prices. Since the COVID-19 pandemic demand for oil dropped precipitously due to a sudden reduction in industrial production, trade, travel, and movement of freight. Prices fell dramatically as a result. Revenues from the newly established oil and gas industry have had a profound impact on Ghana’s macroeconomy, even though oil and gas accounted for just 3.8% of Ghana’s GDP in 2018. Cocoa, a key ingredient in chocolate, a luxury food product, has also seen a decline in demand. Ghana is the second largest cocoa bean supplier globally, with an estimated 1 million Ghanaian smallholder farmers and their communities depending directly on cocoa for their livelihoods. The only commodity that did well of Ghana’s main exports was gold. The country is the largest gold producer in Africa. Demand – and the price – of gold increased.
Ghana attracts biggest FDI in Africa in 2020 (GhanaWeb)
The latest data emanating from the Ghana Investment Promotion Centre reveals that the country attracted US$2,650.97 million worth of foreign direct investment in 2020, which translates to an increase of 139.06 percent over the US$1,108.93 million recorded in 2019 . Although not quite as high as the nearly US$5 billion achieved in 2017, Ghana’s performance with regards to attracting FDI in the middle of the world’s first ever truly global pandemic vividly illustrates the country’s lure; indeed Ghana, along with neighbouring Nigeria which attracted roughly the same amount last year were jointly the second most successful destinations for FDI in the whole of Africa for 2020, behind only Egypt. This defies global trends as COVID-19 continues to take its toll on global trade and investment. A report by the United Nations Conference on Trade and Development estimated the pandemic-induced decline in global FDI at 42 percent. The decline was concentrated in developed countries, where FDI flows fell by 69 per cent to an estimated $229 billion.
Somalia already in Comesa, how long till it joins EAC? (The New Times)
Somalia remains on course to join the East African Community, hopefully in the not too distant future. The Summit of EAC Heads of State direction last month to follow up on the verification process for the country’s admission speaks as much. Somalia’s application to join the Community has remained pending since 2012. A likely hitch explaining the delay is the country’s persistent. Its admission might however even take longer if it continues to be mired in election wrangles, which threaten escalating further violence that bedevils the country. There is little doubt the issues surrounding the missed deadline to hold the presidential elections last month can be overcome. But the collapse of talks yet again early this month to end the impasse show how fraught the situation is. Among conditions a prospective state must meet to join the Community include adherence to good governance and democracy, and wherewithal to strengthen integration.
Liberia to Power its Economy Through Improved Energy Access and Job Creation (World Bank)
Liberia’s efforts to transform the lives of poor people have received a huge boost with financing approved today by the World Bank. Two new operations will increase access to sustainable, reliable and affordable energy, and boost economic recovery by providing employment opportunities and business skills training to vulnerable Liberians. Funded by the International Development Association (IDA), these projects aims at improving Liberia’s economy and helping to build resilience for vulnerable households that are greatly at risk of falling into poverty due to the impact of the COVID-19 pandemic. Poverty remains widespread in Liberia and is now on the rise. An estimated 44% of Liberians were living with less than $2 a day in 2016 and is now projected to reach 52% in 2021. Access to healthcare, education, and basic utilities like energy, are also particularly low compared to the rest of the region.”Given the devastating impact of Covid-19 on the economy and people’s livelihoods, improved energy access will stimulate inclusive economic growth while support to the informal sector will help the most vulnerable Liberians to recover from the loss in incomes,” said Khwima Nthara, World Bank Country Manager in Liberia.
News from Africa and Africa’s international trade relations
Despite the challenging backdrop of a global pandemic and external economic shocks, Africa is expected to recover from its worst recession in half a century and reach 3.4 percent growth in 2021, the African Development Bank said in its 2021 African Economic Outlook report, launched on Friday. The outbreak of the novel coronavirus in December 2019 has taken a massive toll on Africa, hitting tourism-dependent economies, oil-exporting economies and other-resource intensive economies the hardest, as well as deepening inequality. The African Economic Outlook, published annually since 2003, provides headline numbers on Africa’s economic performance and outlook. This year’s theme “From Debt Resolution to Growth: The Road Ahead for Africa”, highlights the impact of Covid-19 and government debt, offering mitigating measures to governments and policy makers.
AFD to Expose 332 million Africans to Formal Economy (THISDAY)
The French Development Agency (AFD) said it is committed to spending $ 6.95 million on financing digital financial inclusion in Africa, which is aimed at reducing existing gender gap in digital financial services. The Development Agency has targeted 332 million more Africans of which 60 per cent are women, get access to the formal economy by year 2030. A statement from the organisation said the Africa Digital Financial Inclusion Facility (ADFI), supported by the French Development Agency (AFD) and hosted by the African Development Bank (AfDB) has committed to financing digital financial inclusion in Africa, with six grants totalling $ 6.95 million. The commitments aim to reduce Africa’s existing gender gap in digital financial services.
AfCFTA forum recommends investment in standardisation infrastructure - Ghanaian Times
Participants in a forum on the African Continental Free Trade Agreement (AfCFTA) have recommended investment in Ghana’s standardisation infrastructure to support businesses to take advantage of the Agreement. They argued that without a stringent standardisation infrastructure, Ghana stood the risk of having its export produce rejected by member countries and becoming a dumping ground for inferior goods from other states. Organised by policy think tank, Imani Ghana, with the support of the German International Corporation (GIZ), the event was on the theme ‘What does the AfCFTA mean for Ghanaian businesses?’
Zimbabwe to host international trade conference on AfCFTA (The Herald)
ZIMBABWE is set to host a high-level virtual international trade indaba next Tuesday to unpack the African Continental Free Trade Area (AfCFTA) Agreement and how local businesses can benefit from it. In line with the Covid-19 mitigation health protocols and limits on physical gatherings, the event will be coordinated virtually with participation from the wider southern African region. The forum is being organised by the International Trade Centre and the Zimbabwean chapter of the Organisation of Women in International Trade.
“There are vast opportunities in African markets, which will boost the country’s exports, riding on the high quality of Zimbabwean products and services,” said Mr Majuru. “We have no doubt that with the right support, Zimbabwean companies will perform well across all markets in the continent.”
Private sector input critical for AfCFTA (Chronicle)
IT is the third month now since the historic African Continental Free Trade Area (AfCFTA) Agreement came into force but the real benefits could take longer to be felt by ordinary citizens and small businesses. Commendable political will has been exhibited by regional governments prior to commencement of official trading and through subsequent ratification of the agreement. However, a range of factors still need to be fine-tuned and properly aligned before Zimbabwe and the entire region could enjoy the fruits of an integrated free trade Africa. Scaling up production and enhancing product competitiveness, investing in quality and standards, technology and submission of tariff offers in line with national interest by relevant authorities, remain key outstanding points.
GYCC holds seminar on AfCFTA - The Point
The Gambia Youth Chamber of Commerce (GYCC) on Thursday concluded a two-day seminar on the Africa Continent Free Trade Agreement (AfCFTA) for 30 cross-border entrepreneurs, traders with export potentials at the NaNA conference hall. The theme for the seminar was ‘enhancing the capacity of youth and women border traders’ on Non-Tariff Barriers (NTBs) and its reporting mechanism to facilitate intra-Africa trade. Ismaila Sambou, GYCC president described the AfCFTA as a significant milestone in the journey to Africa’s free trade integration and development. The agreement, he said, also seeks to benefit youth and women as well as small and medium scale enterprises, which predominate economic activities within the African continent.
Southern African Development Community :: SADC holds Council of Ministers Virtual Meeting
The Council of Ministers of the Southern African Development Community (SADC), on 12 March, 2021, held a virtual meeting to discuss policies, strategies and programmes geared towards consolidating SADC regional integration in fulfilment of Council’s mandate as spelt out in Article 11 of the SADC Treaty.
Honourable Verónica Nataniel Macamo Dlhovo, Minister of Foreign Affairs and Cooperation of the Republic of Mozambique, chaired the meeting in her capacity as the Chairperson of the SADC Council of Ministers and underscored the timeliness and importance of the issues discussed by the SADC Council of Ministers in relation to the impact of the COVID-19 pandemic; disaster risk management and response, industrialisation, promotion of free trade at regional and continental levels and the Annual Corporate Plan and Budget of the SADC Secretariat to deliver the outcomes of the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and the SADC Vision 2050.
On regional infrastructure development, H.E. Dr Tax highlighted that a total of 63 regional Infrastructure projects, including 17 regional energy projects were developed under the second Priority Action Plan for Programme for Infrastructure Development in Africa (PIDA PAP 2), the African Union continental strategic infrastructure framework, whereby three of the 17 projects were shortlisted, namely Luapula Hydro-power between the Democratic Republic of Congo and Zambia; Baynes Hydro-power between Namibia and Angola; and ZIZABONA transmission interconnector between Botswana, Namibia, Zambia and Zimbabwe. In a bid to accelerate regional industrialisation and infrastructure development, H.E. Dr Tax called for speedy implementation of the SADC Regional Development Fund; enhancement of capacities and capabilities of Small and Medium Enterprises (SMEs) for SADC citizens to realise employment and wealth creation benefits H.E. Dr Tax called for speedy finalisation of the SADC Digital Economy Strategy in order to realise the targeted long-term industrialization objectives, and added that digitisation of regional economies is a necessity, given the advent of 4th Industrial Revolution and the lessons learnt from the COVID-19 pandemic.
The EAC and the never ending cross-border headaches (The Citizen)
The recent decision of Kenya to ban maize imports from Tanzania and Uganda is the latest episode in the never ending headaches and heartaches endured by those whose activities require them to cross political borders in the region and the general health of the EAC integration project. Kenya’s decision was based on what its authorities say are “high levels of mycotoxins which are consistently beyond safety limits”. This is just one of the many episodes of strained cross-border relations between the two countries which have continuously exposed the limits and powerlessness of the EAC in intervening between disputes among partner states. The mounting losses for traders and the agriculture sector is particularly severe in Uganda where there has been another long running issue of its milk being banned to access Kenya’s market for some time now in what some regional analysts have said is a reversal of fortunes between the two countries because at the beginning of the common market project, partner states agreed to impose tariffs on some of Kenya’s products for five years to give time for the rest of the partner states to “catch up”.
ECOWAS to hold 2nd forum for National Trade Facilitation Committees in Abidjan
The ECOWAS Commission will hold the 2nd Forum for National Trade Facilitation Committees from March 16th to 18th, 2021 in Abidjan, Côte d’Ivoire. The 3-days meeting is aimed at strengthening the National Trade Facilitation Committees as a central platform for institutional coordination and implementation of trade facilitation initiatives resulting from regional and international obligations including the WTO Trade Facilitation Agreement (TFA) and the African Continental Free Trade Area (AfCFTA).
FSD Africa signs Partner to develop a green bond market in the Southern Africa Development Community (Capital FM)
FSD Africa (FSDA) has signed a Co-operation Agreement with the Committee of SADC Stock Exchanges (CoSSE) to support the development of a green bond market in the SADC region. The agreement will support the SADC’s 16 member countries to leverage domestic and international capital markets for investment in green projects. The FSD Africa-CoSSE partnership program will also support member countries and both private and public sectors to issue green bonds, creating a favorable ecosystem and improving knowledge and capacity for sustainable investments.
The program will also help SADC countries to develop listing guidelines and regulations for green bonds, build a pipeline of potential green bond issuers, tap the countries’ institutional investment community for investment into green bonds, train stakeholders on climate finance and support the adoption of climate-related financial reporting and disclosure. Recently, South Africa, Namibia, Seychelles, and Mauritius have successfully issued green bonds.
Strengthening food systems must be an integral part of efforts to recover from the COVID-19 pandemic and to build resilience in Africa, said African Development Bank Director General for Southern Africa, Leila Mokaddem. Hunger is a greater threat to many Africans than the COVID-19 crisis, Mokaddem said in a session on sustainable food systems at the Southern Africa Impact Forum on 9 March.
Official Handing Over between the outgoing and incoming Deputy Chairperson of the AUC (Africanews)
The official handing over ceremony for the End of Term Report from the outgoing Deputy Chairperson of the African Union Commission, H.E. Mr. Kwesi Quartey to the incoming Deputy Chairperson, H.E. Dr. Monique Nsanzabaganwa, took place today 12 March 2021, at the headquarters of the African Union Commission (AUC) in Addis Ababa, Ethiopia.
The report highlights key milestones achieved and challenges confronted by the outgoing Commission during its mandate from 2017-2020. The report provides reflections on lessons learnt in the implementation of Agenda 2063 and its Flagship Projects as well as on Institutional Reform. It also proffers recommendations for consideration by the incoming Commission and Member States on the way forward, towards strengthening the Union and delivering on “the Africa We Want”. The End of Term Report also presents how the political and socio-economic implications of the COVID-19 pandemic have been far reaching.
Africa’s global links deepened with BRI (China Daily)
The China-proposed Belt and Road Initiative is deepening African nations’ integration into the global economy and improving people’s livelihoods, a Nairobi-based policy observer said. The initiative, which helps countries develop economy-boosting infrastructure, has taken Africa further into a global community through investment, trade, financial integration, people-to-people exchanges, policy coordination and other forms of connectivity, said Lemmy Nyongesa, a senior associate fellow at the China Africa Center of the Africa Policy Institute in the Kenyan capital.
“The idea that development assistance can take place without interference in Africa’s internal affairs is viewed positively,”Nyongesa said. “The BRI has ensured that Chinese and Africans learn from one another, and has helped the continent acquire technologies necessary for development, and provided the financial support necessary to implement critical infrastructural projects.”
International organisations urge Africa to oppose EU ivory trade ban bid (Chronicle)
“The European Commission’s proposed ban on international trade in ivory will be a disaster for those African communities who rely on wildlife for food and job security” according to a joint statement of the South Africa headquartered African Community Conservationists (ACC) and the Los Angeles-based Ivory Education Institute (IEI) issued last weekend. The statement also notes: “A ban on international trade in ivory, supposedly to protect elephant herds in danger, ignores these facts on the ground:
Global economy
ICC Partners Indigenous IT Firms To Boost Trade Among Women (Leadership Newspaper)
The International Chamber of Commerce (ICC) has partnered indigeneous IT firms to build a digital trade platform to boost trade among women in Africa. The digital trade solutions platform, tagged ‘eTradeHubs portal’ was built in commemoration of the International Women’s Day (IWD) to expand market access and economic opportunities for micro, small and medium enterprises in Africa – especially women owned businesses. The platform was built in conjunction with West Blue Consulting, United Parcel Services (UPS) and Trade Law Centre (tralac).
How regional trade agreements can improve access to medical products during crises | UNCTAD
Imported goods undergo multiple inspections for verification of conformity with the destination country’s standards and regulatory requirements. When standards and regulations in the destination country differ from those in the home country, a situation commonly referred to as “regulatory divergence,” there could be high-cost implications for businesses, with a significant slowdown in trade. The challenge gets aggravated during emergencies such as the COVID-19 pandemic, when there is a need to maintain speedy and seamless flows of essential goods across borders. The pandemic showed how high demand for medical products to support prevention, diagnosis and treatment of the virus, such as medicines, medical supplies and personal protective equipment (PPE) created many challenges with regard to their domestic availability. An UNCTAD study shows how to improve access to these products through regional trade agreements (RTAs).
How COVID-19 triggered the digital and e-commerce turning point (UNCTAD)
As lockdowns became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online, raising e-commerce’s share of global retail trade from 14% in 2019 to about 17% in 2020. These and other findings are showcased in a new report, COVID-19 and E-Commerce: A Global Review, by UNCTAD and eTrade for all partners, reflecting on the powerful global and regional industry transformations recorded throughout 2020.
UNCTAD Acting Secretary-General Isabelle Durant said: “Businesses and consumers that were able to ‘go digital’ have helped mitigate the economic downturn caused by the pandemic.” “But they have also sped up a digital transition that will have lasting impacts on our societies and daily lives – for which not everyone is prepared,” she said, adding: “Developing countries should not only be consumers but also active players and thus producers of the digital economy.”
Members discuss TRIPS waiver, LDC transition period and green tech role for small business (WTO)
Continuing their discussions held since October 2020, WTO members addressed the proposal (IP/C/W/669) submitted by South Africa and India calling for a waiver for all members of certain provisions of the TRIPS Agreement in relation to the “prevention, containment or treatment” of COVID-19. According to proponents, the objective is to avoid barriers to the timely access to affordable medical products, including vaccines and medicines, and to the scaling-up of manufacturing and supply of essential medical products. The waiver would cover obligations in four sections of the TRIPS Agreement — Section 1 on copyright and related rights, Section 4 on industrial designs, Section 5 on patents and Section 7 on the protection of undisclosed information. It would last for a specific number of years, to be agreed by the General Council, and until widespread vaccination is in place globally and the majority of the world’s population is immune. Members would review the waiver annually until termination.
COVAX Is Our Best Chance to Beat COVID | by Oyeronke Oyebanji - Project Syndicate
The first vaccine deliveries by the COVID-19 Vaccine Global Access (COVAX) facility to Ghana, Nigeria, and Ivory Coast brought a glimmer of hope to African countries keen to start immunizing their populations against the disease. But while COVAX is ramping up deliveries, its mission to provide rapid, fair, and equitable access to COVID-19 vaccines to people everywhere is being threatened by rich countries ordering more than they need. This worrying global imbalance in vaccine distribution could hold back Africa’s recovery and prolong the pandemic worldwide.
COVAX is already on track to deliver two billion COVID-19 vaccine doses to countries of all income levels in 2021, and has the world’s most diverse and actively managed vaccine research-and-development portfolio. The goal is to ensure that the most vulnerable populations receive COVID-19 vaccines by the end of this year. And yet developing countries must compete with wealthy countries, some of which have ordered sufficient vaccine supplies to vaccinate their populations several times over. The African Union (AU), by contrast, has ordered vaccines for only 38% of the continent’s population, and even if countries want more, supplies are not immediately available. Some even fear that vaccine manufacturers may be focusing on fulfilling bilateral agreements with wealthy countries, instead of delivering doses to COVAX.
Transparent and open food commodity markets are vital for food security and nutrition (FAO)
Open and transparent food commodity markets and efficient supply chains are paramount to ensure that everyone has access to adequate, safe and nutritious food during the COVID-19 pandemic and beyond, FAO Director-General QU Dongyu said today at the opening of the 74th Session of the FAO’s Committee on Commodity Problems (CCP). “The pandemic has resulted in a dual shock to food and agricultural markets, hitting both: supply and demand,” Qu said. He pointed out that the measures introduced to control the virus caused disruptions to agri-food supply chains affecting the global trading system and, in particular, the least developed countries that depend on trade for their food security.
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Country focus
State ponders issuing SI over AfCFTA trading (Daily Mail Zambia)
Government will soon issue a statutory instrument (SI) under the Customs and Excise Act to pave way for trading following Zambia’s ratification of the African Continental Free Trade Area (AfCFTA). Ministry of Commerce, Trade and Industry director – foreign trade Bessie Chelemu said the SI under the Customs and Excise Act is necessary for the agreement to have the force of law in Zambia and subsequently for the country to begin trading.
Cross Border Trade Made Easy Courtesy Of Rwanda Trade Portal (Taarifa Rwanda)
Cross border traders can now engage in export and import trade with ease particularly during the hard times of the Covid-19 pandemic, thanks to the Rwanda trade portal. Traders say the portal has significantly reduced time taken to accessing export and import trade information.
The Rwanda Trade Portal (https://rwandatrade.rw/) is an online platform that was launched in March 2018, and is implemented by Rwanda Revenue Authority under the supervision of the National Trade Facilitation Committee.
Rwanda, Dubai discuss business opportunities (The New Times)
Rwanda and the Emirate of Dubai have discussed possibilities of how to bolster business ties, trade and investment ties between the two countries. During their meeting on Thursday, March 11, Amb. Emmanuel Hategeka, Rwanda’s envoy to the United Arab Emirates and Hamad Buamim, President and CEO of Dubai Chamber of Commerce and Industry reiterated their keenness to strengthen cooperation.
African Development Bank finances electronic payments modernization of Ethiopia (New Business Ethiopia)
The Board of Directors of the African Development Bank has approved a grant of $2.33 million to EthSwitch Share Company, an initiative led by National Bank of Ethiopia, for the modernization of its payments infrastructure. The grant is resourced from the special fund of the Africa Digital Financial Inclusion Facility (ADFI), a pan African initiative that aims to facilitate digital financial inclusion for an estimated 332M unbanked population across the African continent, 60% of whom are women.
Tough terms as Kenya lifts Tanzania, Uganda maize imports ban (The East African)
Kenya has lifted the ban on imports of Ugandan and Tanzanian maize with strict conditions on exporters as the country seeks to curb shipping in of the cancer-causing aflatoxin on the imported crop. Ministry of Agriculture said yesterday that all stakeholders dealing in maize imports would be required to be registered, the consignments coming in must be accompanied with a certificate of conformity on aflatoxin levels and that traders have to issue details of their warehouses.
Why maize is causing trade tensions between Kenya and its neighbours (The Conversation Africa)
There was confusion in the East African grain market this week after Kenya banned maize imports from Tanzania and Uganda. The Agriculture and Food Authority said the reason for the ban was that levels of mycotoxins in the maize from the two countries were above safety limits.
But in less than a week the Kenyan government appeared to backtrack and announced that it had asked its East African Community trading partners to pass sanitary and phytosanitary standards on farm produce before it reached Kenya. We asked Timothy Njagi Njeru, a development economist and research fellow with a special focus on agricultural development and innovation in sub-Saharan Africa, to shed light on events.
Ghana petitions ECOWAS over illegal Benin tariffs (Graphic Online)
Ghana has petitioned the Economic Community of West African States (ECOWAS) over the imposition of a duty regime by the Government of Benin (GoB) targeted at goods from Anglophone West Africa. The country is of the view that the duty regime, which took effect seven months ago, had presented an unfair advantage to companies operating from Francophone West Africa that still benefited from duty and quota-free on exports in Benin.
Nigeria to Rank Among First 100 Countries in Ease of Doing Business By 2023 - Adebayo (AllAfrica)
Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo has assured that by 2023, Nigeria would be ranked among the first 100 countries of the world in the area of ease of doing business. Delivering a keynote address at the virtual Nigeria-Britain Trade and Investment Expo with the theme: "Unlocking the Future of Anglo-Nigerian Trade" on Thursday, the minister noted that there is a correlation between ease of doing business and economic prosperity of the country.
News from Africa and Africa’s international trade relations
36 out of 55 countries in Africa ready for AfCFTA — Wamkele Mene (Modern Ghana)
The Secretary-General for the African Continental Free Trade Area (AfCFTA), H.E. Wamkele Mene has said 36 out of the 55 countries in Africa are ready for the African Continental Free Trade Area (AfCFTA). He indicated that the 36 countries have deposited their instruments of ratification to adhere to the sets of trade laws agreed to by the AfCFTA.
Facilitating the transformational AfCFTA: Tools for eliminating bottlenecks (Brookings Institution)
Africa was on the cusp of a revolutionary economic transformation before the COVID-19 pandemic struck, and the ensuing crisis just underlined the urgency of that process. Right now, countries across Africa are overcoming years of colonial division through the African Continental Free Trade Agreement (AfCFTA). The AfCFTA is, in many ways, a treaty that will transform Africa from a fractured, commodity-dependent group of economies into a vibrant, integrated market of over 1.2 billion people. Trading under the agreement, delayed by the pandemic, commenced on January 1, 2021.
Comesa begins €6,8m cross-border project (Chronicle)
The Common Market for Eastern and Southern Africa (Comesa) says work has begun to implement a €6,8 million project funded by the European Union to upgrade priority cross-border infrastructure at selected entry points linking Zambia and three other bordering countries.
The other three countries are Zimbabwe, Malawi and Tanzania and the project is part of efforts to promote regional integration.
COMESA, Afreximbank Sign deal to implement continental transit scheme (Capital FM, Kenya)
COMESA and the African Export-Import Bank (Afreximbank) have signed an Agreement to implement the COMESA Regional Customs Transit Guarantee Scheme, commonly known as RCTG-CARNET. This marks the beginning of the implementation of the Bank’s US$1billion AfCTFA Adjustment Facility to support countries from significant tariff revenue losses as a result of the implementation of the AfCTFA Agreement, of which about US$200 million is earmarked for the COMESA region.
Eastern Rail Corridor to Link 14 States, Says FG (Thisday Newspapers)
The federal government yesterday shed more light on the benefits of the Eastern Rail Corridor which groundbreaking President Muhammadu Buhari performed virtually on Tuesday, saying it will stimulate economic activities in 14 states it covers. Minister of Transport, Hon. Rotimi Amaechi, said the $1.96 billion Port Harcourt-Maiduguri Eastern Railway Corridor, would link 14 states, including the five South-east states of Abia, Anambra, Imo, Ebonyi and Enugu as well as nine others.
Study Shows Severe Droughts Hit SADC Every 2-3 Years (Pindula)
A recent study by the Southern African Research and Documentation Centre (SARDC) has indicated that the SADC region is hit by droughts every two (2) to three (3) years. The rate is five times higher than the droughts that were experienced in the region around 1980.
Global economy
WTO cautious after sharp services trade rebound (Successful Farming)
Trade in services grew an accelerated pace at the end of last year, but momentum appears set to slow as spikes of COVID-19 cases bring a return of lockdowns, the World Trade Organization said on Thursday.The WTO's services trade barometer rose to a record high of 104.7 in March after 95.6 in September and a low of 91.2 in March 2020, the Geneva-based trade body said.
BRICS contact group holds first meeting on economic and trade issues (ANI News)
The BRICS Contact Group on Economic and Trade Issues (CGETI) leads held their first meeting under India's chairship from March 9 to 11, according to an official statement released on Friday. The theme of BRICS this year is 'BRICS@15: Intra BRICS Cooperation for Continuity, Consolidation and Consensus.'
EU sets out a more sustainable and assertive approach to trade (Economia)
Following a broad consultation process, the new EU new trade strategy outlines a series of headline actions centred around the concept of ‘open strategic autonomy.’ According to the Commission, open and rules-based trade can help underpin the post-pandemic recovery but must also enable the EU’s green and digital transition.