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Container shortage in South Africa (Fruitnet)
Almost exactly one year after major disruptions to exports through the port of Cape Town, and other ports in the country, exporters are facing new challenges.This time the problem is getting enough export containers into the country to meet demand, and moving them to the intended destinations. It is therefore not only Western Cape exporters who are likely to be affected.
Department warns farmers of citrus disease (South African News)
The Department of Agriculture, Land Reform and Rural Development on Wednesday warned citrus farmers about the Asian Citrus Greening disease, which poses a serious threat to the citrus industry. Also known as Huanglongbing (HLB), Asian Citrus Greening disease is caused by the bacteria, Candidatutus Liberibacter asiaticus, which is an insect vector-transmitted by the Asian citrus psyllid (ACP), Diaphorina citri, and it poses a huge threat to all citrus industries in the world.
MPs ratify UK-Kenya trade deal (The Star, Kenya)
MPs on Tuesday night ratified the Kenya-United Kingdom trade agreement setting the stage for duty-free access to their markets.Trade Committee chairman Adan Haji moved to allay fears that the Kenya-UK Economic Partnership Agreement will open floodgates for the dumping of agricultural goods.The Mandera South MP said the object of the agreement is aligned to Kenya’s food security agenda.
Trade deal might hand UK Kenya's multi-billion marine wealth (The Standard)
Kenya will allow vessels from the United Kingdom to fish in its territorial waters, raising fears of the country being short-changed in its multi-billion fisheries industry. The trade pact between the two countries, which the National Assembly was to ratify by the end of March 8, 2020, allows the UK’s fishing vessels to operate in the waters of the East African Community Partner (EAC) States.
Algeria calls for setting up African Union fund for climate change impacts (CGTN)
Algeria on Tuesday urged the African Union member countries to establish a special fund dedicated to tackling impacts of climate change in Africa. The call was made by Algerian President Abdelmadjid Tebboune at a video conference of the African Union’s Peace and Security Council (PSC), where the climate change and its impact on peace and security in Africa, as well as the recent developments in Western Sahara top the agenda.
News from Africa and Africa’s international trade relations
AfCFTA Secretariat to remove transit challenges (Graphic Online)
The Secretariat of the Africa Continental Free Trade Area (AfCFTA) is to establish a robust system that can help address challenges impacting growth of the transit business in Africa. To be called, AfCFTA Corridor, the initiative is expected to facilitate the removal of barriers that have made the continent’s transit corridor unattractive for transition of goods. It will also ensure the creation of a rapid response team, made up of officials from AfCFTA Secretariat and the private sector, that will work in collaboration with governments to rid the continent’s transit corridors of all bottlenecks to boost intra-Africa trade.
AfCFTA to Deepen Integration in Africa-Trade and Industry Minister (AllAfrica)
The Minister of Trade and Industry Ghana, Mr Alan Kyerematen has reiterated that the most beneficial way to deepen regional integration in Africa is to increase trade through the protocols of the African Continental Free Trade Area (AfCFTA) Agreement.
UAE and Africa to boost trade relations through export credit alliance (Trade Arabia)
Etihad Credit Insurance (ECI) and African Trade Insurance Agency (ATI) have agreed to strengthen the trade relations between the UAE and Africa by providing trade finance solutions to businesses and exporters in both areas.
EU renews interest in stalled trade deal (The Standard)
The European Union (EU) is looking to revive the stalled multilateral trade talks between the 28-member economic bloc and the East African Community (EAC). This comes in the wake of renewed investor interest in Kenya, with the United Kingdom and the US, keen to establish a trade deal to serve as a gateway to the region.
UK and Cameroon sign trade agreement (GOV.UK)
On 9 March 2021 the United Kingdom has signed an Economic Partnership Agreement with Cameroon. The trade deal, which will support jobs and build future prosperity, was signed by International Trade Minister Ranil Jayawardena and High Commissioner of Cameroon to the UK, H.E. Albert Fotabong Njoteh in London. The deal provides certainty for British and Cameroonian businesses, ensuring they can continue to trade as freely as they do now without any additional barriers or tariffs.
AfDB backs digital currencies, seeks gender inclusion (Guardian Nigeria)
The African Development Bank (AfDB) has thrown its weight behind digital currencies, putting in motion a machinery to build capacity particularly among the female gender in the Economic Community of West Africa (ECOWAS) countries, including Nigeria. The African continental lender, yesterday, said its Board of Directors has already awarded a grant of $320, 535 to the West African Monetary Agency (WEMA) to mainstream gender in ECOWAS’ digital financial services (DFS) regulatory framework.
Is EAC facing food safety concerns? (The New Times)
The recent decision by Kenya to suspend maize imports from Uganda and Tanzania has stirred public concern over the safety of some food that is produced in the region, particularly grains. Last week, Kenya banned the importation of maize from both countries, saying the products contained high levels of aflatoxins. Kenya’s Agriculture and Food Authority said that the products were not fit for human consumption.
Global economy
Managing developing countries’ sovereign debt (Brookings Institution)
Before the COVID-19 crisis, several low-income countries and some emerging economies were already facing sovereign debt problems, but this issue has become increasingly severe with the current crisis, limiting the capacity of these nations to manage the economic and social effects of the pandemic.
What role can sustainability standards play in the post COVID-19 recovery? (Trade for Development News)
The Sustainable Development Goal (SDG) target 8.1 to attain “at least 7 percent gross domestic product growth” each year for LDCs already was proving difficult to meet, even with some improvements in prior years. Now, it looks increasingly out of reach. The crisis has been especially damaging for LDC trading prospects. The latest World Trade Organization (WTO) figures for the first half of 2020 show that merchandise trade exports from LDCs dropped by 16% – greater than the 13% drop in global exports. LDC services exports saw an even larger cut, by 38-40%.
UK to push for global trade agreement on services trade at the WTO as hopes dim for EU deal - The Institute of Export and International Trade (Institute of Export and International Trade)
The UK will use its newly independent voice at the World Trade Organisation (WTO) to lobby for a global deal that harmonises regulations and promotes services trade across the globe. As the clock ticks down on talks with the EU to recognise the regulatory status of the UK financial services sector, ministers and City lobby groups are forming a plan to open up global markets instead
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The SA economy shrank by 7% in 2020 (Creamer Media’s Engineering News)
The South African economy contracted by 7% during 2020, as expected given the unprecedented impact of the Covid-19 pandemic on economies worldwide. Statistics South Africa (Stats SA) on Tuesday released the 2020 fourth quarter and full year GDP results.
Business support crucial to save jobs: President Ramaphosa (South African News)
President Cyril Ramaphosa says every effort must be made to support local businesses that were severely affected by COVID-19 in a bid to save jobs and create new ones. “We have to save existing jobs and stimulate the economy for new ones to be created,” President Ramaphosa said on Tuesday at the 9th annual Proudly South African Buy Local Summit & Expo.
SABS tasked to eliminate technical barriers to trade (Creamer Media’s Engineering News)
The South African Bureau of Standards (SABS) has taken part in a virtual seminar with the World Trade Organisation (WTO) to discuss the national regulatory organisation’s responsibilities around the WTO Technical Barriers to Trade Agreement’s Transparency Framework. The seminar discusses the national regulatory organisation’s responsibilities in the drafting of policies, regulations, standards and conformity assessment procedures.
Malawi to support Botswana's candidate for SADC role (Malawi24)
President Lazarus Chakwera has accepted President of Botswana Mokgweetsi Masisi’s request for Malawi to support Botswana’s candidate for the Executive Secretary position at the Southern African Development Community (SADC). Chakwera announced the decision today during a joint press conference with Masisi at Kamuzu Palace in Lilongwe.
Kenya's ban on Uganda, Tanzania maize threatens EAC treaty (Independent)
There are questions lingering as to why Kenya abruptly banned Uganda’s maize exports to the country disregarding all EAC protocols. The last related incident was in 2018 when 600 metric tonnes worth about Shs 180 billion was returned by Kenya claiming it had traces of aflatoxin among other standard issues. The ban was communicated by Kenya’s Agriculture and Food Authority to the Commissioner Customs at Kenya Revenue Authority.
Ghana begins exploiting AfCFTA free trade opportunities (GhanaWeb)
Despite initial worries as to Ghana’s readiness to take an active part in Africa’s new single market, less than two months after the commencement of the African Continental Free Trade Agreement on January 1, corporate Ghana has begun exploiting the preferential trade terms that it offers. With deliberate documentary support from the government, two Ghanaian companies have already executed their first duty-free exports to other African countries and imports from within Africa have been received by Ghana on duty-free terms as well.
News from Africa and Africa’s international trade relations
Rules Of Origin May Make Or Break AfCFTA -Mene (Leadership Newspapers)
Secretary-general of the African Continental Free Trade Area (AfCFTA) Secretariat Wamkele Mene, has said the Rules of Origin – the criteria needed to determine the nationality of a product – could make or break the AfCFTA if not appropriately designed and enforced to support preferential trade liberalisation.
AfAA launches African arbitration tool (ICLG)
The African Arbitration Association (AfAA) has launched an online tool that provides an overview of arbitration legislation and international arbitrators in Africa. The African Arbitration Atlas went online in January and allows users to search for legislation and arbitral institutions by country or see which countries use the UNCITRAL model law, or are signatories of the New York Convention, International Centre for Settlement of Investment Disputes or Organisation pour l'Harmonisation en Afrique du Droit des Affaires (OHADA) – the West and Central African regional organisation that provides a legal and dispute resolution framework.
EAC States Eager to Get DRC on Board, Eye Market of 87 Million People (AllAfrica)
The East African Community member states are eyeing the Democratic Republic of Congo market of 86.7 million people and are eager to have the vast country join the bloc. In what was seen as fast-tracking of the DRC application of June 2019, the recently concluded EAC heads of state summit directed the Council of Ministers to undertake the verification mission to Kinshasa and report to the next summit, while the application of Somalia that has been pending since 2012, was again pushed to the back burner.
Gambia: GRA Boss Advocates for Free Movement of Goods in Sub-Region (AllAfrica)
Commissioner General of The Gambia Revenue Authority (GRA)has renewed his call for member states to open up and endeavour to honour the ECOWAS protocols that have been signed by ECOWAS member states. Yankuba Darboe was speaking recently during a courtesy called by GRA board of directors and top management on Gam Petroleum as part of its ongoing field visits.
Engineering firm to tackle Africa's water infrastructure shortfall (ESI Africa)
The United Nations warns that the world could face a 40% shortfall in water supply by 2030, with Africa – which already suffers from greater levels of water stress than other regions – likely to bear the brunt. The economic impact of the shortfall in water infrastructure and supply is already severe. Sub-Saharan Africa currently loses an estimated 5% of its annual gross domestic product (GDP) due to poor access to clean drinking water and sanitation, 5 to 25% of its GDP to droughts and floods in affected countries and 40 billion hours of otherwise productive time annually, collecting water.
Experts to reflect on sustainable industrialization in Africa (New Business Ethiopia)
The UN Economic Commission for Africa (ECA) will hold its fifty-third session and the Conference of the African Ministers of Finance, Planning and Economic Development, from 17 March to 23 March 2021 in hybrid form focusing on sustainable industrialization in Africa. In the wake of the outbreak of the deadly coronavirus and related disruptions, some participants, led by Executive Secretary, Vera Songwe, will attend from Addis Ababa while the majority will participate virtually.
Global economy
Global Trade Outlook for 2021 (Hellenic Shipping News)
After an already sluggish trade in 2019 global recovery was expected in 2020. High hopes and early market optimism were devastated by the outbreak of the COVID-19 pandemic, the largest black swan event since the second WWII. 2020 as a whole and Q2 of 2020 proved to be the worst year and the worst quarter for global trade on record. COVID-19 will be the most significant factor affecting the global economy in 2021, however, a number of additional factors have to be taken into consideration.
Weak outlook for Foreign Direct Investment in 2021 (The New Times)
Global foreign direct investment (FDI) dropped in 2020 owing to the Covid-19 pandemic, falling 42 per cent from $1.5 trillion in 2019 to an estimated $859 billion, according to the latest report published by UNCTAD Investment Trends Monitor.
Trade in the New Digital World (Lexology)
This article describes how digitization of information and development of new tools and equipment is expanding to improve efficiency, productivity, safety and almost every aspect of the movement of goods. The focus is on how international organizations, national governments and upgraded trade agreements are improving the ability to adopt innovative technologies.
First meeting held to advance work on trade and environmental sustainability (World Trade Organization)
The first meeting of WTO members taking part in a new initiative aimed at advancing work on trade and environmental sustainability took place virtually on 5 March. Participants outlined their views on what the priority issues for discussion should be and what concrete outcomes could be delivered at the WTO’s 12th Ministerial Conference (MC12) and beyond.
UNCTAD Review Highlights Trade-Climate Readiness Opportunities (IISD Reporting Services)
The UN Conference on Trade and Development (UNCTAD) has released its 2021 Trade and Environment Review. This edition focuses on ways that developing countries can enhance the resilience of their trade to climate change through economic diversification and adaptation actions.
EU says it agrees post-Brexit WTO agriculture quotas with U.S. (Yahoo Finance)
The European Union and the United States have concluded negotiations to adjust the EU's World Trade Organization agricultural quotas following Britain's exit from the bloc, the European Commission said on Monday.The agreement, covering billions of euros of trade, including beef, poultry, rice, dairy produce, fruit, vegetables and wine, was the result of two years of negotiations. The idea is to keep the previous import quota volumes unchanged and to share them between the European Union and Britain.
India, South Africa oppose plurilateral initiative for e-commerce at WTO (Business Line)
India and South Africa have opposed an on-going joint initiative at the WTO by some countries, including influential members such as the US, the EU, Canada and Australia, to frame a pact on e-commerce rules. The two said that the urgent need is to build capacity in digital skills and digital infrastructure, rather than negotiating binding rules.
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Angola: IMF Hails Angola's Economic Reforms Amid Covid-19 (All Africa)
Despite the effects of Covid-19 on all economies in the world, the Angolan government had already started to carry out certain and comprehensive economic reforms, even before the pandemic, said the director of the African Department of the International Monetary Fund (IMF), Abebe Aemro Selassie.
Regional pharmaceutical deficit offers export opportunities (Sunday Mail)
AS local companies get ready to increase production following the relaxation of lockdown measures announced by President Mnangagwa, there is a need to focus on niche products that have a competitive edge in regional markets. The pharmaceutical sector is already one area that has been identified as having potential to contribute significantly to the nation’s economic growth.
Fears of trade wars as Kenya bans maize from Tanzania, UG (The Standard)
Kenya has set the stage for a war with its main trading partners after it banned importation of maize from Uganda and Tanzania. The Agriculture and Food Authority (AFA) said on Friday that surveillance and tests they had done on maize from the two countries had shown that most of it was infected with aflatoxin.
Kenya-UK trade deal in limbo as deadline nears (The Standard)
The fate of the multi-billion shilling economic partnership agreement (EPA) between Kenya and the United Kingdom (UK) hangs in the balance, with just a day to its ratification deadline. The deal, signed between Kenya’s Cabinet Secretary for Trade Betty Maina and her UK counterpart Ranil Jayawardena on December 8, 2020, was welcomed with optimism by the business communities in both countries. However, last week, Parliament refused to ratify it.
Kenya's EAC leadership breathes new life into EPA talks (The Star, Kenya)
The summit concluded that partner states who wish to do so should be able to commence engagements with the EU with a view to starting the EU-EAC EPA implementation under the principle of variable geometry,” the communiqué said in part. Kenya and Rwanda have already signed the deal but it could not be operationalised without all the EAC members' signatures.
UNECA United Nations Economic Commission for Afr : Kenya ends AfCFTA implementation strategy review meeting with incorporation of useful issues (Marketscreener)
Kenyan stakeholders on 5 March ended a national review meeting of its African Continental Free Trade Area (AfCFTA) implementation strategy in Naivasha after incorporating new components with wide ramifications for the economy. They incorporated topics such as e-commerce, climate change and COVID-19, which had from last year disrupted production and trade flows across the world, to enable the East African country derive maximum benefits from the agreement.
AfDB in Sh88.6m pact to strengthen agriculture (The Standard)
The African Development Bank (AfDB) and the Cooperative University of Kenya (CUK) have signed a grant agreement to finance the development of a digital platform to support agricultural cooperatives in the country. The agreement stipulates a three-year grant, amounting to Sh88.6 million.
Egypt gets $440m World Bank loan to support rail network (Engineering News)
The World Bank has approved a $440-million loan to modernise signalling and upgrade track on 763 km of Egypt's 5 000 km rail network, the bank said in a statement. Egyptian National Railways (ENR) will put $241-million into the project on the Cairo-Giza-Beni Suef section of the network, bringing the total cost to $681-million, the World Bank said.
'Brexit buster' direct shipping route announced between UK and Morocco (Produce Business UK)
Logistics company United Seaways plans to launch a new 'Brexit buster' direct shipping route that will connect the UK and Morocco. The route, which will link Poole in Dorset to Tangier, has been in planning for more than two years and will help bypass post-Brexit traffic congestion and additional import procedures on goods arriving via Europe, United Seaways said.
News from Africa and Africa’s international trade relations
SADC records progress in flagship interconnector power projects (The Chronicle)
THE Southern African Development Community (SADC) says notable progress has been achieved towards implementation of priority energy interconnector projects in the region. The projects seek to connect Angola, Malawi and Tanzania to the Southern African Power Pool (SAPP) grid.
AfDB allocates $2 mln grant to boost financial inclusion in Africa (Ahram Online)
The board of directors of the African Development Bank (AfDB) announced allocating a $2 million grant to establish the African Cybersecurity Resource Centre (ACRC) for Financial Inclusion, for the sake of tackling cybercrime across Africa and to strengthen the resilience of digital financial ecosystems
Afreximbank to pilot Pan-African Payments and Settlements System in April (News Ghana)
As the Champion of the African Union Financial Institutions, the meeting was to brief President Nana Akufo-Addo on progress on the deployment of the Pan-African Payments and Settlements System (PAPSS), which is on track and scheduled to commence piloting in April and to be fully launched in June 2021. An update on transactions funded by Afreximbank in Ghana was also provided.
Number of Africans in extreme poverty could rise to 514m in 2021 (UNECA)
The United Nations Economic Commission for Africa (UNECA) has warned the COVID-19 pandemic could further exacerbate Africa’s extreme poverty as a total of 514 million Africans are projected to fall below the extreme poverty line in 2021, unless the impact of pandemic is contained.
African heads of state to address the impact of the climate crisis on peace and security (Daily Maverick)
On Tuesday, 9 March, the African Union Peace and Security Council will debate how the climate crisis is affecting peace and security and what to do about it. While climate change increasingly undermines human security and influences the dynamics of violent conflict on the continent, there are no hard peace and security solutions to the security impacts of climate change. The African Union and African societies can, however, improve how they prevent and manage climate-related security risks by investing in preparedness, analysis and early warning.
Global economy
WTO members adopt roadmap to review implementation of the Trade Facilitation Agreement (World Trade Organisation)
The WTO Committee on Trade Facilitation on 3 March adopted a roadmap for the first ever review of progress made in implementing the Trade Facilitation Agreement (TFA). Under the Agreement, members committed to review the operation and implementation of the TFA four years from its entry into force, which was on 22 February 2017, and periodically thereafter.
US criticizes India at WTO over increasing restrictions on trade (Mint)
In the first instance of US President Joe Biden’s administration expressing its views on India’s trade policy, Washington criticized New Delhi at the World Trade Organization (WTO) over its growing protectionist measures including tariff hikes, domestic testing requirements on imports, restrictive rules in e-commerce and cross-border data flows.
Explainer: How the EU will respond to Britain's Northern Ireland move (Reuters)
The European Union has promised legal action after the British government unilaterally extended a grace period for checks on food imports to Northern Ireland, a move that Brussels said breached the terms of London’s EU divorce deal.
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MPs talk value addition before ratifying SADC protocol (New Era)
After the tabling of the ratification of the Southern African Development Community (SADC) protocol, some parliamentarians feel Namibia still has much more to do before considering the protocol. The motion to ratify the protocol was tabled by the Minister of Industrialisation and Trade, Lucia Iipumbu. Debating the motion in the National Assembly, Popular Democratic Movement (PDM) president, McHenry Venaani, said the question of value addition is central to broaden the debate of industrialisation.
Afreximbank agrees to refinance $1.4 billion Zimbabwe debt-document (Reuters)
The African Import and Export Bank (Afreximbank) has agreed to help Zimbabwe raise funding to refinance $1.4 billion in loans to the pan-African lender, a copy of the agreement seen by Reuters showed on Thursday.The agreement will give the country some breathing space over the loan repayments to Afreximbank, which has become one of the biggest lenders to Zimbabwe after it was shut out from international financial institutions two decades ago for failing to repay its debts.
US renews sanctions against Zimbabwe (The East African)
The United States has renewed its targeted sanctions against Zimbabwe citing President Emmerson Mnangagwa's reluctance to roll out political and economic reforms.US President Joe Biden, in a letter to Congress, said in the last year Zimbabwe's security services had committed several human rights violations.
IMF, Zambia to continue debt relief talks (Eyewitness News)
The debt-ridden southern African country became the continent's first coronavirus-era sovereign default after skipping a $42.5-million (35.5-million-euro) interest payment on a eurobond in November last year.
How low cargo traffic inhibits imports (The Nation Newspaper)
Dwindling ship traffic and the huge number of overtime cargoes at the Lagos ports have become worrisome to stakeholders who have urged the Federal Government to find a solution to the challenges.
China, Egypt ink cooperation deal on technology incubators (CGTN Africa)
Egypt and China signed a deal on Thursday to conduct cooperation on technology incubators, the Chinese embassy in Cairo said. The deal was signed by Shanghai Institute of Microsystem and Information Technology (SIMIT) of the Chinese Academy of Sciences with Egypt’s Electronics Research Institute (ERI), the embassy said in a statement.
African Development Bank lends $27.2 million for 200 MW solar park in Egypt (PV Magazine International)
The board of directors of the African Development Bank (AfDB) approved a loan of $ 27.2 million for the design, construction and operation of a 200 MW solar photovoltaic plant in Kom Ombo, in southern Egypt.
News from Africa and Africa’s international trade relations
Africa is not on track to achieve zero hunger by 2030 (Modern Ghana)
Mr Abebe Haile-Gabriel, Food and Agriculture Organisation's (FAO) Regional Representative for Africa, has disclosed that Africa is not on track to achieve zero hunger by 2030. He said this in a meeting reviewing progress made by the continent towards attaining that goal so far. Co-organised by the Economic Commission for Africa (ECA) and the World Food Programme (WFP), in collaboration with the Government of the Republic of Congo, the meeting is part of the Seventh Session of the Africa Regional Forum on Sustainable Development (ARFSD) that is underway in Brazzaville and virtually monitored by the Ghana News Agency.
DDG Wolff: AfCFTA and WTO can help “knit together” Africa in peace and prosperity (World Trade Organization)
Regional and multilateral integration through the African Continental Free Trade Area (AfCFTA) and WTO membership can help to “knit together an African continent that has been forever fragmented,” Deputy Director-General Alan Wolff said on 4 March. Speaking at the Aswan Forum for Sustainable Peace and Development, DDG Wolff said AfCFTA and the WTO “share a common goal and a common heritage — the use of trade for peace.”
COMESA Launches Campaign to Celebrate Women Entrepreneurs (TechTrendsKE)
The Common Market for Eastern and Southern Africa (COMESA) has launched a regional campaign to popularise a platform for women in business. The platform, known as 50 Million African Women Speak (50MAWSP) is an information and networking hub for women which provides a one-stop shop for them to start, grow and scale up their businesses and to access financial and non-financial services.
East African Community: Harmonisation of taxes remains elusive (CNBC Africa)
About 9 years ago, the East African Community put a plan in motion to harmonise the region’s excise duties and VAT to achieve neutrality for investments and trade and to prevent double taxation. Fast forward to today, the harmonization of taxes remains elusive.
Uhuru drums up support for regional integration (The Standard)
President Uhuru Kenyatta who addressed foreign envoys serving in Kenya on Thursday said that there were positive developments in countries such as South Sudan and Sudan where peace and transitional processes remain on course, adding that Nairobi will continue playing its leading role as an anchor for regional peace and security.
ECOWAS Commission Urged to Include Agric Issues in Vision 2050 (All Africa)
The Economic Community for West Africa States (ECOWAS) Commission has been urged to pay particular attention to issues related to the expansion of agriculture and agribusiness in the development of its Vision 2050. In a communique dubbed "Kyebi Declaration", participants in a consultative meeting for traditional and religious leaders on the vision said the sector had great potential to provide employment for the youth and ensure food security.
Global economy
Poor hit with disproportionately high connectivity costs (IT Online)
High costs for Internet access relative to income remain one of the main barriers to the use of information and communication technology (ICT) services worldwide – and this is particularly true in emerging markets. This is according to a new policy brief from ITU and the Alliance for Affordable Internet (A4AI) which finds that, taking income differences into account, a mobile broadband subscription with at least 1,5Gb of data costs around four times more in developing countries than in developed ones.
What to Expect from the EU-UK Trade and Cooperation Agreement in the Future (Lexology)
Last week, the UK Parliament granted the EU’s request for more time to ratify the EU-UK Trade and Cooperation Agreement (“TCA"). The initial agreement by both parties was that the TCA’s provisional application would end by 28 February 2021.
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South Africa urged to play to strengths as its plots role in lithium-ion battery value chain (Creamer Media’s Mining Weekly)
A newly released study of the potential for developing a lithium-ion battery value chain in South Africa concludes that the country should prioritise minerals beneficiation and mining, as well as battery manufacturing as it seeks to carve out a niche for itself in what is a fast-growing, highly competitive and rapidly evolving market.
Gender equality remains critical towards achieving 2030 SDGs (South African News)
Minister in the Presidency for Women, Youth and Persons with Disabilities Maite Nkoana-Mashabane has urged the country not to allow COVID-19 to keep it from reaching the 2030 Sustainable Development Goals (SDGs) on gender equality.
Zimbabwe Shows Potential to Lead e-Mobility Transition (All Africa)
The adverse effects of the climate emergency mean that it is critical for the world to accelerate the transition to low carbon technologies to reduce emissions. The transport sector is estimated to contribute an average of 17% of global greenhouse gas emissions from fossil fuel combustion in the Southern African Development Community (SADC). Member states, therefore, urgently need to accelerate the adoption of electric vehicles (EVs), which include four, three, and two-wheelers.
Afreximbank approves R1 billion to finance Beitbridge expansion in Zimbabwe (IOL)
The African Export-Import Bank (Afreximbank) has approved $70 million (around R1.046 billion) to finance the expansion and upgrade of the Beitbridge border post in Zimbabwe to boost intra-Africa trade. The Beitbridge border post between Zimbabwe and South Africa is the busiest border crossing in Southern Africa, with an average of 25 000 people and 500 trucks.
Kenya, UK trade agreement faces approval setback in Parliament (Business Daily)
MPs have taken issue with a clause in the new trade agreement between Kenya and the United Kingdom that bars Parliament from amending or expressing reservations on the pact. The legislators further argued that the clause violates the provisions of the Treaty Making and Ratification Act 2012 which gives the National Assembly powers to either approve or reject a treaty with reservations.
News from Africa and Africa’s international trade relations
AfCFTA Secretary General to headline Africa Private Summit (GhanaWeb)
The Secretary General for AfCFTA Secretariat, Wamkele Mene is expected to headline the maiden Africa Private Sector Summit for this year slated for March 8 to March 12, organisers of the summit have announced.
Comesa Moves to Suspend Uganda Over Shs4b Arrears (All Africa)
The Common Market for Eastern and Southern Africa (Comesa) has written to Uganda over possible suspension from the economic regional bloc over unfulfilled financial commitment fees for the last years. The Comesa secretary general, Ms Chileshe Kapwepwe, in a February 22 letter to the Trade minister, Ms Amelia Kyambadde, indicated that Uganda was added to the "sanction bracket" as the first warning over the arrears in January 2020.
Kenyatta takes over as EAC chairperson at critical time (Independent)
The East African Community’s 21st Heads of States Summit, which saw Kenya take over the chairmanship of the community, was unique in many ways, including being the first to be held virtually. It also came at a time, when two of the members of the community, Uganda and Rwanda, could not trade with each other after the closure of the border.
Private sector upbeat about new EAC secretary-general (The New Times)
The Rwandan Private Sector Federation (PSF) Chief Executive Officer, Stephen Ruzibiza, on Wednesday, March 3, told The New Times that the business community is expecting a lot from Peter Mathuki who was chosen by East African Community leaders last weekend as the bloc's new secretary-general. Mathuki who has been instrumental in championing removal of non-tariff barriers (NTBs), implementing the turn-around strategy of the East African Business Council (EABC), and revitalizing donor support in the sector, among others, will on April 25 start work as the seventh EAC SG.
EAC Not Moving As Coalition On EU Agreements (All Africa)
The East African Community (EAC) will not be moving as a bloc in negotiations, signing, ratification and implementation of agreements with the European Union (EU) Economic Partnership. Instead, each interested partner state will go it alone, after the EAC Heads of State met virtually on the weekend and recalled their preceding discussion on the EU-EAC Economic Partnership Agreement.
Africa Fares Lowly In Implementing SDGs (New Zimbabwe)
Before the onset of the deadly novel coronavirus (Covid-19), Africa was recording positive growth rates but not enough to achieve the sustainable development goals, a United Nations (UN) top official has said. Bartholomew Armah, director of the macroeconomics and governance division in the United Nations Economic Commission for Africa (ECA) said this while giving a progress report on the implementation of Agendas 2030 and 2063, and tackling the Covid-19 crisis at the regional and sub-regional levels at the ongoing 7th African Regional Forum for Sustainable Development in Congo Brazzaville Wednesday.
Global economy
Slim chances for the WTO appellate body despite US return to multilateralism (Global Trade Review)
The Biden administration’s approach to international negotiations marks a step-change in US trade policy. But despite a change in tone towards the World Trade Organization (WTO), there is little indication that the US will prioritise tackling key issues plaguing the global trade body.
Members review proposals on improving implementation of Technical Barriers to Trade Agreement (World Trade Organization)
At a meeting of the Committee on Technical Barriers to Trade (TBT) on 23-26 February, WTO members discussed various proposals submitted under the Triennial Review of the TBT Agreement. The review aims at developing a set of recommendations by the Committee on how to improve the implementation of the Agreement. Members discussed 81 specific trade concerns, 20 of which were new concerns.
USTR Releases President Biden's 2021 Trade Agenda and 2020 Annual Report(Lexology)
On March 1, 2021, the Office of the United States Trade Representative (USTR) released President Joseph Biden’s 2021 Trade Agenda and 2020 Annual Report. Providing an overview of “a comprehensive trade policy in support of the administration’s effort to help the U.S. recover from the COVID-19 pandemic and build back better,” the report states that President Biden’s trade agenda addresses four national challenges: (1) building a stronger industrial and innovation base so the future is made in America; (2) building sustainable infrastructure and a clean energy future; (3) building a stronger, caring economy; and, (4) advancing racial equity across the board.
Digital skills will prove vital in tackling global inequality, UNICEF chief says (CNBC)
Henrietta Fore, the executive director of UNICEF, told CNBC that solving a "digital divide" is essential for addressing global equality.Fore, who took up her role at the U.N. agency in 2018, said remote learning is needed in every country of the world, whereby education is reimagined "so that every child has the chance to learn, even in a pandemic."
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South Africa's factory activity slows in February - PMI (Creamer Media’s Engineering News)
South African private sector activity expanded again in February but at a slightly slower pace than the previous month, with new orders remaining flat while optimism was lifted by Covid-19 vaccine rollouts, a survey showed on Wednesday.
Tourism sector exploring new ways to work smarter (South African News)
In the pursuit for excellence, organisations in the tourism sector are constantly exploring new ways to work better and smarter. Sharing of best practice is a benchmarking mechanism which is at the forefront of many organisational strategies. Aligned to this, the Department of Tourism on Tuesday hosted its 8th Sharing of Best Practices Workshop virtually with countries it has MOUs and Bilateral Agreements with. The workshop was held under the theme: “Tourism Recovery post COVID-19 – a country perspective”.
Mantashe sees new industries emerging from South Africa’s renewables-led drive to boost ... (Creamer Media’s Engineering News)
South Africa’s move to increase electricity generation capacity provided a “unique opportunity” for the development of new industries, Mineral Resources and Energy Minister Gwede Mantashe said this week. Addressing delegates virtually during Canada’s annual Prospectors and Developers Association Convention, Mantashe highlighted that South Africa’s Economic Reconstruction and Recovery Plan, developed in response to the Covid-19 pandemic, emphasised the importance of addressing the country’s long-standing electricity supply deficit so as to use energy as a “catalyst for economic growth”.
Huawei, Zimbabwe’s second largest telecoms provider partner in broadband expansion (CGTN Africa)
Zimbabwe’s second-largest mobile network provider Net One has partnered with Chinese telecommunications giant Huawei to improve mobile broadband services to the tune of 400,000 U.S. dollars, state media reported on Tuesday.
DRC, as a keystone in AfCFTA, can link regional value chains (Creamer Media’s Engineering News)
Trade and development experts have detailed the key role the Democratic Republic of Congo (DRC) can play in providing mineral resources for industrial and manufacturing value chains, supporting agricultural and agroprocessing value chains and serving as an epicentre for intra-African trade to drive development on the continent.
DRC’s Tshisekedi unveils ambitious agenda for 2021 as AU chair (The Africa Report)
DRC's President Félix Tshisekedi, who will be serving as chairman of the African Union for one year, has outlined an ambitious agenda for this year. His top priorities include Covid-19, security and the economy. President Félix Tshisekedi took over the chairmanship of the African Union (AU) in an unusual context, to say the least. Due to the ongoing pandemic, he was the only head of state to travel to Addis Ababa on 6 February for the virtual summit.
Kenya keen on boosting agricultural exports to Africa under AfCFTA (Kenya Broadcasting Corporation)
The government will prioritize export of agricultural products under the African Continental Free Trade Area strategy to create additional markets for small-scale farmers. Addressing the press in Naivasha during the ongoing validation workshop for the AfCFTA strategy, Industrialization and Trade Chief Administrative Secretary David Osiany said the government is planning a national wide sensitization meeting for small scale farmers on the opportunities in the African market.
AfCFTA: Experts Task Nigerian Manufacturers on Value Addition (THISDAY Newspapers)
Nigeria has been advised to transit from resource-based economy to one driven by value-addition and processing in other to benefit from the recently signed African Continental Free Trade Agreement (AfCFTA). This was emphasised by stakeholders at an interactive session of the Nigeria Association of Agricultural Journalists (NAAJ).
News from Africa and Africa’s international trade relations
Ghana: Etradehubs Portal Launched (All Africa)
The International Chamber of Commerce (ICC) in partnership with West Blue Consulting, United Parcel Services (UPS), Trade Law Center (TRALAC) have officially launched the eTradeHubs portal. The eTradeHubs portal www.etradehubs.com is a one-stop for Trade Tools, information & collaboration aimed at reducing the time and cost of doing business by supporting businesses at all levels of maturity. The portal which was virtually launched last week Thursday has features such as a multi country Tariff and Trade Information Tool and a Duty Calculator.
African shippers' councils seek partnership with AfCFTA Secretariat (Graphic Online)
The Union of African Shippers’ Councils (UASC) is seeking a stronger partnership with the African Continental Free Trade Area (AfCFTA) Secretariat to help boost intra-African trade. As part of the move to deepen the collaboration, an eight-member UASC delegation is in Accra on a five-day working visit to engage officials of the secretariat to help maximise gains from the initiative. The delegation is made up of representatives from Angola, Senegal, Cameroon, Togo, Nigeria, Ghana, Benin and Congo.
Impact of AfCFTA may be lost if countries sign unilateral trade deals – Hubert Arthur (GhanaWeb)
The Executive Director of the Africa Centre for International Trade and Development, Isaac Hubert Arthur is concerned that the continental Free Trade Agreement may lose its impact if countries sign a unilateral deal with other countries outside the continent.
Exports among East African countries drop (The Star, Kenya)
The Ministry of Trade and Industrialization now says that exports among East African countries has dropped significantly as member countries embark on addressing the needs of their consumers. This emerged on Monday during a validation workshop for the African Continental Free Trade Area (AfCFTA) which is a flagship project of the African Union’s Agenda 2063.
ECA report unpacks green recovery strategy for Africa (Creamer Media’s Engineering News)
The Economic Commission for Africa has launched the 'Building Forward for an African Green Recovery' report, which highlights the continent’s bold post-Covid-19 pandemic recovery strategy. The report seeks to bolster the continent’s quest for the realisation of the Sustainable Development Goals, the attainment of the Paris Agreement’s climate change targets and the achievement of the prosperity objectives articulated in Africa’s Agenda 2063.
These 3 Cs can increase food insecurity in Africa, warn experts (Down to Earth Magazine)
There will be chronic hunger in the next 10 years if timely action is not taken, an expert said Climate Change, conflicts and the novel coronavirus disease (COVID-19) — the ‘Triple C’ — will impact Africa's food security, increase malnutrition and restrict development in the long run, alerted panelists at a virtual discussion on extreme weather and natural disasters.
AfreximBank re-affirms to support factoring as alternative source of trade financing (Myjoyonline)
The African Export-Import Bank (AfreximBank) has reaffirmed its readiness to support factoring as a viable alternative source of trade financing for small and medium enterprises (SMEs) in Africa.It said, “given that access to finance remains a key constraint to operations of SMEs in Africa, availability of sustainable trade finance is essential to propel the African Continental Free Trade Area (AfCFTA).”
Empowering Africa's energy entrepreneurs through investment (World Economic Forum)
Despite the global economic slowdown caused by COVID-19, the case for investing in Africa is stronger than ever. Africa will remain a competitive investment destination for decades to come because of its improving relative risk profiles, regional integration and strong economic fundamentals. However, many challenges remain for local founders despite the record-breaking fundraising year African startups had in 2019. This is especially the case when it comes to women-led companies.
AfDB awards over $320k to mainstream gender in ECOWAS’ digital financial services (Devdiscourse)
The Board of Directors of the African Development Bank has awarded a grant of $320, 535 to the West African Monetary Agency to mainstream gender in ECOWAS' core digital financial services (DFS) regulatory frameworks. The funds will support a gender gap analysis of several WAMA strategies including those for financial inclusion; gender disaggregation data analytics; digital payment services and infrastructure; and digital identity.
Global economy
UNCTAD Paper Examines Linkages Between Non-Tariff Measures and SDGs (IISD Reporting Services)
The UN Conference on Trade and Development (UNCTAD) has released a research paper that examines the linkages between non-tariff measures (NTMs) and the SDGs. The paper aims to encourage policymakers to consider the implications of NTMs for their economies and for others.
A Comparative Analysis on Foreign Direct Investment Trends in Global Economies (Lexology)
Recently published data by the United Nations Conference on Trade and Development UNCTAD revealed that global foreign direct investment (FDI) inflows plummeted by 42%, reaching $859 billion in 2020. In addition, the trend showed different outcomes across economic and regional areas.
US Commerce sets anti-dumping duties on aluminum sheet from 18 countries (Creamer Media’s Engineering News)
The US Commerce Department on Tuesday issued final anti-dumping duties on common alloy aluminum sheet from 18 countries investigated, including up to 242.8% on imports from Germany and 4.83% on imports from Bahrain. The duties were announced just hours after Rhode Island Governor Gina Raimondo won confirmation as the new US Commerce Secretary in an 84-15 US Senate vote.
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Namibia edges closer to South Africa with customs connectivity (The South African)
Namibia introduced customs connectivity with South Africa in February. The move is being hailed as good news for the entire region. The first phase of a project that will see Namibia achieving connectivity with the South African Revenue Service (SARS) in South Africa is now underway.
Zim's Processed Food Sector Records 18 % Export Growth (NewZimbabwe)
Zimbabwe’s processed food sector has recorded 17.9 % export growth amid calls by the country’s export development agency, ZimTrade for local players to take advantage of abundant opportunities in the segment.
Tanzania: Govt Assures Investors of Reliable Power Supply (All Africa)
The government has assured investors who wish to put up various projects in the country to come in bigger numbers since there is enough electricity to help them run their businesses. The assurance was given here by the Minister for Energy, Dr Medard Kalemani while opening a two-day seminar for senior editors from different media organisations, which was organised by Tanzania Electric Supply Company Limited (TANESCO). The seminar was also attended by senior TANESCO managers.
Shipping body reacts to clearing agents’ claims over business losses (The Citizen)
While manufacturers and clearing agents say they were losing business to a state-owned firm, the latter distances itself from their nightmares and calls those adversely affected to follow the laid down complaints’ procedures. Speaking during a meeting between the Confederation of Tanzania Industries (CTI) and the deputy Minister for Industry and Trade, Mr Exaud Kigahe yesterday, some members said they have lost out since the coming of the Tanzania Shipping Agencies Corporation (Tasac).
Kenya begins domestication of AfCFTA (Citizen TV)
Kenya stands to benefit immensely from the implementation of the African Continental Free Trade Area (AfCFTA). The Industrialisation Ministry has moved in to assure small enterprises of markets for their goods in the continental pact.
Kenya: Trade Ministry Lists Products That Won't Be Imported Duty-Free From UK (All Africa)
Trade Cabinet Secretary Betty Maina says the ministry has generated a list of sensitive products that will not be imported into Kenya duty-free and on which quotas will be placed, as she added that the EPA contains specific provisions for protecting the Kenya and East African Community (EAC) market from unfair competition from UK producers.
Biden team resumes Kenya, US trade talks (Business Daily)
Kenya and the United States (US) will resume talks on a bilateral trade agreement after four-month pause in the wake of American presidential elections last November.Mr Johnson Weru, the Principal Secretary for Trade and Enterprise Development, said the imminent confirmation of President Joseph Biden’s Trade Representative Nominee will unlock talks.
Ghanaian businesses strategise on successful implementation of AfCFTA (GhanaWeb)
The Ghana National Chamber of Commerce and Industry in collaboration with the Ghana Shippers’ Authority, has held a semi-virtual seminar in Accra on the African Continental Free Trade Area for the trading community of Ghana. The multidisciplinary seminar brought together experts from the legal practice, financial sector, customs, policymakers as well as representatives of the private sector to discuss how businesses can strategize to fully benefit from the Continental Free Trade Agreement.
Nigeria: States Should Lead in Economic Recovery and Sustainable Growth (All Africa)
One of the most significant consequences of the global public health crisis, the novel coronavirus, was the adverse effect that it had on economies around the world. As the world faced the greatest public health challenge in most of our lifetimes, we also grappled with the economic effects of lockdowns: limited travel and economic activity, and especially, for oil-producing countries like Nigeria, the rapid decline in crude oil prices.
News from Africa and Africa’s international trade relations
World Bank launches a drought resilience initiative in support of SADC countries
The World Bank, with support from the Cooperation in International Waters in Africa (CIWA) together launched the Southern African Drought Resilience Initiative (SADRI) last week. SADRI is an initiative that aims to provide tools that countries could use to better implement and coordinate drought resilience strategies within and across borders and sectors. The initiative aims to foster integrated drought risk management across the energy-water-food environment and help lay foundations for greater resilience in southern African countries to the multi-sectoral influence of drought.
Gender-specific data needed to closing gender gap in energy access: AfDB (Devdiscourse)
Gender-specific data, especially detailed information on how women and men use financial resources, is needed to improve interventions geared to closing the gender gap in energy access, the African Development Bank said during a recent webinar on strengthening gender mainstreaming in Kenya's energy sector.
Trade within East Africa drops by 30pc (The Standard)
Export of goods among East African countries has dropped by more than 30 per cent in the last 10 years as individual countries embark on sustaining their needs. The most affected are consumer products and farm equipment, according to the Ministry of Trade and Industrialisation. This emerged during a validation workshop for the African Continental Free Trade Area (AfCFTA) in Naivasha.
Bloc gives Kenya nod to enter into EU trade pact (Business Daily)
Kenya has the green light to pursue the Economic Partnership Agreement (EPA) with Europe after the regional business bloc recalled its previous position that restricted East African Community member states from endorsing the deal. Nairobi and Kigali were the only two countries in the region to sign an EPA deal with Europe in 2016 after Tanzania, Uganda and Burundi refused to endorse it, forcing Kenya to have a temporary arrangement with EU to allow its goods to access the expansive market duty-free.
Global economy
DG Okonjo-Iweala: WTO can deliver results if members “accept we can do things differently” (World Trade Organisation)
Addressing the WTO General Council immediately after taking office on 1 March, Director-General Ngozi Okonjo-Iweala called on members to “do things differently” to achieve reforms necessary to keep the WTO relevant, starting with swift action to curb harmful fisheries subsidies, and to help scale up COVID-19 vaccine production and distribution. The new head of the WTO noted that high expectations for her tenure can only be met if members are willing to compromise and reach agreements.
Technology and Innovation Report 2021 (UNCTAD)
Recent developments in frontier technologies, including artificial intelligence, robotics and biotechnology, have shown tremendous potential for sustainable development. Yet, they also risk increasing inequalities by exacerbating and creating new digital divides between the technology haves and have-nots. The COVID-19 pandemic has further exposed this dichotomy. Technology has been a critical tool for addressing the spread of the disease, but not everyone has equal access to the benefits.
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South Africa seeks to lift infrastructure investment with change to pension fund rules (Engineering News)
South Africa's National Treasury is proposing changing rules governing pension funds to encourage investment in infrastructure projects. Africa's most industrialised nation - the hardest-hit by the coronavirus pandemic on the continent - has put public works in sectors such as transport, energy and water at the heart of its economic recovery plans.
Foreign direct investment dries up – The Zimbabwe Mail (The Zimbabwe Mail)
Foreign investment inflows to Zimbabwe last year fell by 23.7% to US$40.06 million compared to the same period in the previous year, with analysts attributing the decline to the outbreak of Covid-19 pandemic.
Comesa-Zimbabwe sign agreement to upgrade Chirundu border post (Chronicle)
The Common Market for East and Southern Africa (Comesa) has signed an agreement with Zimbabwe that sub-delegates the implementation of Coordinated Border Management activities, Trade and Transport Facilitation programme at the Chirundu border post.
Kenyan small scale farmers sue government over UK trade pact (The Star, Kenya)
Kenya small scale farmers have sued seeking to stop the government from entering into a trade pact with UK. The farmers want public participation in relation to the pact be conducted at grassroots level so that everyone's views are captured. The agreement among other things reduces tariffs on imports of products such as chicken pork and maize for a period of 25 years.
Ghana, UK to sign new trade agreement tomorrow (Myjoyonline)
Ghana and UK will tomorrow signed a new trade agreement that will further deepen ties between the two countries whilst giving exporters of the two countries more hope, Trade and Industry Minister-designate, Alan Kyeremanten has disclosed. The agreement is expected to come into full force from Friday, 5th March.
Private sector engagement, green recovery are main themes for Egypt in 2021: minister (Salaam Gateway)
Private sector engagement and green recovery will be a key theme in 2021, according to Egypt’s Minister of International Cooperation Rania Al-Mashat. Talking to Daily News Egypt, Minister Al-Mashat said that going into 2021, it is important to realise that the novel coronavirus (COVID-19) pandemic has proven that multilateralism is vital to the reconstruction of global economies.
News from Africa and Africa’s international trade relations
African Energy Chamber focuses on attracting direct investors to Africa (The Nation Newspaper)
The Investment Committee of the African Energy Chamber has met for the second time to set an agenda that will facilitate capital raising for energy projects in Africa. The committee acknowledged the increased difficulty of raising capital for energy projects in a post-COVID-19 era but agreed that African Energy projects remain extremely profitable, when tackled with the right investment structure.
SADC calls for solidarity (IPP Media)
51.3 million people in both urban and rural areas of southern Africa are food insecure. Dias Lima was speaking from Maputo in Mozambique during the SADC - Regional Vulnerability Assessment and Analysis Programme (RVAA) Annual Organisational Meeting convened virtually under the chairship of Mozambique.
East Africa: Uhuru Takes Helm of EAC, Names Peter Mathuki New Secretary-General (All Africa)
Kenya's Peter Mutuku Mathuki will be the next East African Community Secretary-General after receiving an endorsement from heads of State at a virtual summit on Saturday afternoon. Dr Mathuki, a long-term Executive Director of the East African Business Council, emerged the top candidate after corporate bodies proposed his name to President Uhuru Kenyatta as someone capable of converging different views from member States. President Kenyatta was also selected as chair of the East African Community while Burundi's Evariste Ndayishimiye chosen as the community's rapporteur.
Operations of East African monetary institute to start in July (Independent)
The East African Community Council of Ministers has set 1st July 2021 as the date for the inception of the East African Monetary Institute (EAMI). The EAMI is a transitional mechanism to the regional Central Bank that will issue the single currency, planned to be in place by the year 2024.
Two Rwandans named judges to East African Court of Justice (The New Times)
The East African Community Heads of State Summit on Saturday appointed new judges to the East African Court of Justice, a regional Court that litigate on matters pertaining to the interpretation of EAC treaty. The meeting which was held virtually and convened by President Paul Kagame, in his capacity as outgoing chair of the Summit, took place on Saturday February 27.
EAC secures unlimited access to Kenya-UK trade deal (The East African)
(EAC) member states have secured an open-ended time frame to access the trade agreement signed between Kenya and the United Kingdom (UK) in a development that is likely to protect the fragile regional unity and preserve the spirit of regional integration.
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New bill aims to make it easier to do business in South Africa (BusinessTech)
The opposition Democratic Alliance has tabled its Ease of Doing Business Bill which is aimed at cutting and reducing red tape associated with doing business in South Africa. The private member’s bill specifically aims to deal Regulatory Impact Assessments (RIA) and the impact and cost that new regulations will have on the economy.
Agriculture has potential to ignite SA’s recovery, but finance and policy constraints weigh (Engineering News)
The South African agriculture sector is one of a few sectors that have proven to be resilient throughout the Covid-19 pandemic and has been earmarked by government as a cornerstone of the country’s economic reconstruction and recovery. The sector, together with State departments and other social partners, is in the final stages of drafting an Agricultural and Agroprocessing Master Plan, which identifies industries that can play a critical role in developing the sector and bring about the necessary transformation towards an inclusive sector.
Embrace standards to reap AfCFTA gains (The Herald)
A Standards and systems certification body for Southern Africa has urged entrepreneurs in the region to embrace quality standards to leverage on opportunities presented by the African Continental Free Trade Area (AfCFTA).
Botswana, Namibia explore partnership on water project (CGTN Africa)
Botswana’s President Mokgweetsi Masisi met with his Namibian counterpart Hage Geingob during a working visit to Namibia’s capital Windhoek Thursday. The pair discussed developing water resource infrastructure along with other aspects of the neighboring countries’ bilateral relationship.
Cameroon and Algeria sign bilateral air transport agreement (Business in Cameroon)
On February 24, 2021, in Yaoundé, Cameroon’s Minister of Transport Jean Ernest Ngallé Bibéhé and Algeria’s ambassador to Cameroon signed a bilateral air transport agreement, official sources reveal. The agreement is aimed at promoting tourism and boosting commercial transactions between the two countries. It will also expedite the Algeria national airline’s (Air Algérie) project to enter Cameroon’s sky. Indeed, in 2019, Cameroon Civil Aviation Authority announced that Air Algérie was planning to start a route to Cameroon.
Kenya’s port cargo volumes peak amid easing of COVID-19 restrictions (CGTN Africa)
Kenya’s Mombasa port has witnessed steady growth in import volumes for both general and containerized cargo following cessation of COVID-19 restrictions and lockdowns in major countries across the world.
House shelves debate on UK trade pact over sneaked annexure (The Star, Kenya)
Speaker Justin Muturi has shelved the debate on the partnership agreement between Kenya and the United Kingdom. This was after the National Assembly Trade committee tabled the agreement for ratification by members of Parliament without attaching annexure showing goods that will be traded by the two countries.
South Sudan, Kenya battle it out for EAC’s top post (The Citizen)
The battle for the post of secretary general of the East African Community (EAC) looms large as two partner states plan to field candidates. While Kenya has been reported to put pressure to have its national take over, South Sudan is said to front a candidate for the same.The position of the principal executive officer of the EAC will fall vacant at the end of April with the end of tenure of Liberat Mfumukeko.
China, Ethiopia agree to boost cooperation in technology (CGTN Africa)
China and Ethiopia have agreed to boost cooperation in the technology field, according to the Chinese embassy in Ethiopia on Thursday. The agreement to boost cooperation in the technology field between the two countries was reached Wednesday during a discussion held between Chinese ambassador to Ethiopia Zhao Zhiyuan and the Ethiopia Minister of Innovation and Technology Abraham Belay.
News from Africa and Africa’s international trade relations
ICC, UPS, Tralac, and West Blue join forces to provide women entrepreneurs in Africa with the resources to digitise their operations (International Chamber of Commerce)
Building off the recent launch of the African Continental Free Trade Area (AfCFTA), the partnership will help women-led SMEs expand their operations to new marketplaces in Africa and around the world. Through the establishment of the “Women Traders in the AfCFTA” working group, the partners will collaborate with interest groups, trade associations, and other stakeholders in the region to support women-led SMEs and entrepreneurs in the region. Working with leaders from government, business, and civil society, the partners will develop policy recommendations to ensure that women-led SMEs benefit from the AfCFTA.
East Africa: EAC Pushes to Align Regional Bank With Bloc's Structure (All Africa)
The East African Development Bank (EADB) could soon be answerable to the East Africa Community (EAC) if a report on the bank's governance and structure is passed. The report, to be submitted to the EAC's Council of Ministers on February 27, was commissioned by the EAC Heads of State in 2016. They also directed the council "to review the EADB Charter to streamline it into the EAC main structure."
Global economy
DDG Wolff calls on members to work with new Director-General to reform WTO (World Trade Organisation)
Speaking to heads of WTO member delegations on 25 February, Deputy Director-General Alan Wolff urged them to build on their warm welcome for incoming Director-General Ngozi Okonjo-Iweala by working with her to deliver much-needed reforms to the WTO. “Enthusiasm, optimism and hope need to be translated into concrete action” to enhance global trade’s contribution “to a more effective pandemic response as well as a strong and sustainable economic recovery,” he said.
TRIPS waiver: Pressure mounts on WTO as supporting voices grow (Mint)
The World Trade Organisation is under pressure to seriously consider the Trade-Related Aspects of Intellectual Property Rights (TRIPS) waiver on Covid-19 vaccines after several European Union lawmakers and a group of least developed countries (LDC) recently lent their support to India's proposal.
Enhancing efficiency in international trade – the time is now (Global Banking and Finance Review)
Despite significant advances in digital enterprise technology in recent years, international trade remains overwhelmingly manual and fraught with inefficiency. Financial market participants spend millions of dollars to save fractions of seconds. Central banks are rushing to offer “fast” domestic payments in under three seconds. But cross-border trade relies on payments involving more than one country and bank, with no common central bank to provide cover and currency conversion. It takes at least a day or, in most cases, two – and that’s not even the most inefficient part of cross-border trade.
Building productive capacities can avert a lost decade in the poorest countries (UNCTAD)
The COVID-19 crisis shook the very foundations of the international system, triggering an abrupt and severe global recession, which threatens to heighten economic contagion. While no country is spared, the coronavirus has hit the world’s poorest nations disproportionately.
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Mboweni unveils R2 trillion Budget, focus on vaccine rollout, efficient spending (Eyewitness News)
Every national budget, in every nation across the globe, is a balancing act. But this year, with the ravages of COVID-19 and the associated lockdowns eroding an already shaky economy, the Finance Minister and his team at Treasury have a particularly hard task.
SA Canegrowers welcomes maintained sugar tax rate (Engineering News)
South African Canegrowers (SA Canegrowers) has welcomed government’s decision to maintain the health promotion levy, or “sugar tax” at its current rate. The industry association says that, although it had called for a reduction in the sugar tax, Finance Minister Tito Mboweni’s 2021 Budget adds no additional obstacles to the “sticky path ahead” for the industry’s recovery and the one-million livelihoods that depend on the industry.
South Africa's women's minister seeks voice for women in AfCFTA (Africanews English)
South Africa’s Minister of Women, Youth and Persons with Disabilities, Ms Maite Nkoana-Mashabane, today called for women’s voices to be heard in the implementation of the African Continental Free Trade Area (AfCFTA) agreement. Ms Nkoana-Mashabane spoke during a virtual conference on leveraging the agreement to boost women’s economic empowerment jointly organized by the African Trade Policy Centre (ATPC), a unit of the Economic Commission for Africa (ECA); and Business Unity South Africa (BUSA), a private sector organization.
Namibia President Hage Geingob extends Covid-19 restriction measures for another 36 days. (CGTN Africa)
During the 25th public briefing on coronavirus in Namibia, President Hage Geingob announced that the current restriction measures aimed at curbing the spread of COVID-19 will be extended for a period of 36 days, from 25th February to 31st March 2021.
FG Announces Additional Economic Zones for Agric, Textile (Thisday Newspapers)
The federal government has approved the expansion of the existing Free Trade Zones (FTZs), as well as the activation of existing ones to respond to the demands of the African Continental Free Trade Area Agreement (AfCFTA) and the COVID-19 pandemic.
Uganda to Sue Kenya, Tanzania Over Exports Blockade (All Africa)
Uganda will this week seek to find solutions to the continued blockade of its exports, failure of which, it will seek intervention of the East African Court of Justice.
Egypt backs call to internationalize Ethiopia dam dispute (Minneapolis Star Tribune)
Egypt said Wednesday it has endorsed a Sudanese proposal to internationalize arbitration in a years-long dispute with Ethiopia over a massive dam Addis Ababa is building on the Blue Nile. Egyptian Foreign Minister Sameh Shukry said Cairo backs the formation of an "international quartet" including the U.S., the European Union, and the U.N., along with the African Union to facilitate reaching a deal on the filling and operation of the Grand Ethiopia Renaissance Dam.
News from Africa and Africa’s international trade relations
The African Energy Chamber's Investment Committee commits to facilitate investments worth billions of USD in 2021 for African energy projects (Africanews English)
The Investment Committee of the African Energy Chamber (the Chamber) met for the second time since their appointment mid-last year, to set an agenda that will facilitate capital raising for energy projects in Africa. The committee acknowledged the increased difficulty of raising capital for energy projects in a post Covid era.
Inter-state power trading up 5% (The Southern Times)
The Southern African Power Pool (SAPP) says inter-state electricity trading was higher in January 2021 when compared to December 2020. Economic activities increased at the beginning of the year due to eased lockdowns in the region and the re-opening of economies. The latest figures from SAPP show that total traded volumes increased by five percent to 125GWh in January 2021, from the December 2020 volume of 119GWh.
SADC Executive Secretary urges region's private sector to enhance manufacturing capabilities (Namibia Economist)
The Executive Secretary of SADC, Dr Stergomena Lawrence Tax, has urged the region’s private sector, through the SADC Business Council, to enhance manufacturing capabilities through building a strong portfolio in pharmaceuticals and prioritising industrialisation.
Stakeholders want harmonised system of data capturing managements (IPP Media)
Knowledge management and data capture stakeholders in the SADC region have called for harmonized system of data capturing management in the SADC countries. They said data harmonization helps to get all data required from different fields or sectors at a single window. Unfortunately many countries in the region have no single window, instead each Ministry, institutions and departments have their own system of data capturing depending on their needs.
EAC business leaders want DR Congo admission expedited (The New Times)
The private sector has urged East African Community (EAC) Heads of State to direct relevant government bodies to fast track the admission of the DR Congo into the regional bloc. This is one of the items on the wish list of the East African Business Council (EABC) — a grouping of regional private sector associations and corporates – ahead of the Head State Summit scheduled for Saturday, February 27.
East Africa trade balances improve despite pandemic (The East African)
Regional balance of trade improved in the height of the Covid-19 pandemic, with lower imports, as Kenya’s manufactured products and demand for Tanzanian minerals held up the economies. According to a report by the United Nations Economic for Africa (Uneca) and Trade Mark East Africa (TMEA) released Wednesday, Kenya registered an increase in exports of manufactured products, especially non-food industrial supplies and machinery and other capital equipment while demand for Tanzanian gold increased by 33.6 per cent between January and November.
UK Trade Deal Delayed over EAC Integration Concerns (The Star, Kenya)
The long awaited Economic Partnership Agreement (EPA), signed by the Governments of Kenya and the United Kingdom (UK) in December 2020, has been delayed for a period of three weeks by the UK House of Lords over concerns that the EPA may threaten East Africa Community (EAC) integration efforts.
Global economy
Drop in goods trade less severe than predicted, WTO says (Global Trade Review)
The decline in global goods trade volumes caused by the Covid-19 pandemic appears to have been less drastic than predicted by the World Trade Organization (WTO) in late 2020, with export growth in Asia during the second half of the year matched by increased demand from other markets.
In its most recent goods trade barometer, the WTO says growth in trade volumes remained strong in the fourth quarter of 2020, after a stronger-than-anticipated rebound during Q3.
Reforming WTO Appeals Body Necessary, Won't Be Easy, Chief Says (Bloomberg)
Reforming the World Trade Organization’s paralyzed dispute-resolution body will be a key priority for the institution, but the process won’t be easy, incoming Director-General Ngozi Okonjo-Iweala said. “There’s a very great desire to reform the dispute-settlement system with the appellate body,” she said in an interview Wednesday on Bloomberg Television. “Will it be easy? The answer is no. Because if it were easy it would have been done, but I think we can put together an approach and a work program.”
Least developed countries urge climate finance help at UN Security Council (Devex)
Dozens of least developed countries have called for the United Nations Security Council to encourage governments to make climate finance targets a reality at the 2021 U.N. Climate Change Conference, or COP26.Speaking at a virtual meeting of the Security Council on Tuesday, Malawian President Lazarus Chakwera, representing the least developed countries group, said the bloc had to “insist that concrete solutions be found for enhancing climate adaptation and resilience for the most vulnerable countries.”
European Commission Unveils New Trade Strategy (Lexology)
On February 18, 2021, the European Commission unveiled its new trade strategy. The strategy aims to address the economic fallout from the coronavirus, climate change, and growing international tensions, while also reaffirming support for a rules-based multilateral trading system. The proposed measures range from WTO reform and digital trade initiatives, to tackling forced labor by developing enforcement mechanisms and requiring companies to monitor supply chains.
Emerging technologies can foster an inclusive COVID-19 recovery (UNCTAD)
COVID-19 recovery efforts present an opportunity for governments and the international community to use new and emerging technologies to reduce the inequalities brought into sharper focus by the pandemic, says UNCTAD’s Technology and Innovation Report 2021, published on 25 February.
Blockchain is becoming key for global trade (Tech Wire Asia)
A monument of untapped potential was what the World Trade Organization (WTO) said about Blockchain technology in its 2018 report. Today, the technology is known to be a revolutionary one, especially in terms of product traceability across the global supply chain.
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Low-key budget for Lesotho (MENAFM.COM)
FINANCE Minister Thabo Sophonea presented a low-key budget of M23.8 billion that painted a gloomy economic picture in the wake of the Covid-19 pandemic. Sophonea said the economy is expected to shrink by 5.8 percent in the 2020/21 financial year before rebounding by an average 4.7 percent in the short-term. He said that growth will be spurred by recovery in agriculture, mining, manufacturing and construction. Increase in crop production and livestock will anchor agriculture's recovery.
Namibia ratifies continental treaty for establishment of African Medicines Agency (Xinhua, English)
Namibia becomes the fifth African Union (AU) member to ratify the treaty for the establishment of the African Medicines Agency (AMA), the AU Commission disclosed on Tuesday. The Southern Africa country deposited the instrument of accession to the AU Commission, making the country the first AU member from the Southern Africa region to ratify the continental treaty.
Kenya’s tea earnings surge to 1.09 bln USD in 2020 (CGTN Africa)
Kenya earned 120 billion shillings (1.09 billion dollars) from tea exports in 2020, up from 1.06 billion dollars in 2019, a new report from the Tea Directorate released on Tuesday shows. The surge in earnings defied the challenges brought to international trade by the COVID-19 pandemic, which curtailed movement of goods and people. The higher earnings were supported by a rise in export volumes, which stood at 518.9 million kilos in 2020, up from 496.8 million kilos in 2019.
Kenya-UK trade deal factors in unfair competition – state (The Star)
The UK market accounts for 43 per cent of total exports of vegetables from Kenya as well as at least nine per cent of cut flowers. According to the latest Kenya National Bureau of Statistics–Leading Economic Indicators, the value of exports from Kenya to the UK totaled Sh49.5 billion, meaning the trade is currently in favour of Kenya. China however remains the biggest trading partner with an annual import bill of over Sh371.5 billion last year.
How Kenya’s major transport corridor lost shine to Tanzania (The Standard)
The time taken by truckers to move cargo from Mombasa to the border towns of Busia and Malaba for re-export to Uganda and other neighbouring countries more than doubled following the outbreak of Covid-19. The situation appears to have gotten worse in the second half of last year despite the gradual reopening of the economy, which has seen many economic sectors exhibit signs of recovery.
Egypt's exports to Africa expected to double due to AfCFTA (Ahram Online)
Egypt’s exports to African countries, estimated to be worth $4.7 billion, are projected to double over the coming four years in the event that all the African Continental Free Trade Agreement’s (AfCFTA) stages are fully rolled out, according to the Minister Plenipotentiary and Alternate Chief Negotiator to AFCFTA, Fadel Yacoub.
Strengthening Egypt-UK economic ties (Ahram Online)
On 5 December last year, British Ambassador to Egypt Sir Geoffrey Adams signed an association agreement with Egypt’s Assistant Foreign Minister for Europe Badr Abdel-Ati to strengthen political and trade ties between the two countries. The agreement will help British and Egyptian businesses and consumers to benefit from continued preferential access to their respective markets in the wake of the UK’s exit from the European Union. It was ratified by President Abdel-Fattah Al-Sisi on 15 December and is now being fully applied by both countries.
Nigeria: 'Nigeria Has 90 Percent Informal Cross-Border Traders' (All Africa)
About 90 per cent of cross-border traders in Nigeria are informal traders who neither speak English nor have formalised their export-import trading businesses. This was disclosed yesterday in Abuja by the leader of a delegation from the West Africa Association for Cross Border Trade in Agro-Forestry Pastoral and Fisheries Products (WACTAF), Salami Alasoadua.
News from Africa and Africa’s International Trade relations
EAC calls for green recovery to avoid worst risks of climate crisis (Environmental Journal)
In their new report which was published today, the cross-party committee has warned that if the economic recovery from Covid-19 is not used as an opportunity to grow back better’ then climate change and biodiversity collapse may deliver an even greater crisis.
EAC set to get new Secretary-General (The New Times)
Expectations are high ahead of the East African Community Heads of State Summit scheduled for February 27, when leaders will make a decision on the new Secretary-General of the regional body.
AfCFTA negotiations on rules of origin to conclude in June: Trade Ministry (Daily News Egypt)
Negotiations are currently underway between member states of the African Continental Free Trade Area (AfCFTA) to complete rules of origin for the agreement by the June 2021 deadline. The remarks were made by Ehab Fathy, Head of Rules of Origin Department for African Countries at the Ministry of Trade and Industry, during a virtual seminar on Tuesday.
African Union eyes ambitious continental infrastructure fund (GCR)
The African Union (AU) wants to tap into member countries’ sovereign wealth funds to finance much-needed transport and power infrastructure to boost growth and offset rising national debts.
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Sapa applies for anti-dumping duty against Brazil, four EU countries (Engineering News)
The South African Poultry Association (Sapa) has applied to the International Trade Administration Commission of South Africa (Itac) for anti-dumping duties on chicken imported from Brazil, Denmark, Ireland, Poland and Spain.
SA Canegrowers Association calls for decrease to sugar tax (Engineering News)
As Finance Minister Tito Mboweni prepares to deliver his Budget Speech on February 24, industry association the South African Cane Growers Association has called for an immediate decrease to the health promotion levy (HPL) or sugar tax, stating that this will help in the recovery of the local sugar industry and safeguard the one-million livelihoods that depend on it.
Kenya bleeds millions as Uganda goes slow on joint oil jetty plan (The Standard)
Kenya Pipeline Company’s (KPC) Sh2.6 billion Kisumu oil jetty depreciated by Sh150 million in 2019. This was a result of Uganda’s failure to put up a reciprocal facility on Lake Victoria. The depreciation of the jetty has been captured in the State corporation’s annual report to June 2019. Since then, there has been little change, with the facility remaining underutilised.
Kenya Bows to Uganda's Demands in Trade Row (Kenyans.co.ke)
Kenya has ceded to demands made by Uganda in a trade row that had threatened the bilateral relations between the two nations. Uganda had demanded that Kenya allows more of its sugar imports although Nairobi was a little hesitant due to the pressure from local sugar stakeholders who have asked for the industry to be protected. Kampala raised the stakes after they threatened to ban Kenya's exportation of duty free fruit juices and pharmaceuticals.
Nigeria’s food inflation shows urgency of cross-border trade (The Africa Report)
Nigerian food inflation, now at its highest since 2008, shows that food security is the country’s overriding problem. January’s overall inflation rate of 16.5% was the highest since mid-2017, lifted by food inflation which accelerated to 20.6%.
News from Africa and Africa’s international trade relations
Africa faces a hard choice on the SDGs under COVID-19 (Brookings Institution)
COVID-19 has made it extremely difficult to mobilize the resources needed for the achievement of the Sustainable Development Goals (SDGs) in the time left to their target date of 2030. Indeed, as the United Nations Economic Commission for Africa (UNECA) reported in July 2020, the current rate of progress on the SDGs in Africa is insufficient to meet the targets. Several other recent reports echo UNECA’s view.
African women's empowerment in the AfCFTA era (New Business Ethiopia)
The African Trade Policy Centre (ATPC), a unit of the UN Economic Commission for Africa (UNECA), in collaboration with Business Unity South Africa (BUSA), will host a conference on leveraging the African Continental Free Trade Area (AfCFTA) to boost women’s economic empowerment on Tuesday 23 February. The virtual event is aimed at creating a better understanding of the contribution of the private sector to policies that will advance the economic empowerment of women under the trade bloc which commenced business on 1 January this year.
India, Mauritius ink landmark economic cooperation and partnership agreement (Republic World)
India on Monday signed a landmark Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with Mauritius, the first if its kind with an African nation, making the strategically-located country a launch-pad for business expansion into the huge African continent.
Ministers discuss non-member state accession to ECOWAS treaty (GhanaWeb)
Ministers for Justice and Foreign Affairs from five Economic Community of West Africa States (ECOWAS) member states and other officials have deliberated on the accession of third states (non-member states) to the ECOWAS treaty.
Southern Africa: Leveraging EVs for Clean Mobility, Energy Access and Prosperity in SADC (All Africa)
As the world plans for a post COVID-19 economic recovery, an opportunity to invigorate the economies of the region is presented through a policy of electrification of transport. E-mobility could form a key pillar of green industrialisation that facilitates the creation of new supply chains, spanning the region and herald an era of increased energy security via diversity of energy supply
Rwanda-Burundi power project seeks $190m in funding (The New Times)
The Nile Basin Initiative Secretariat has announced that resources mobilization is ongoing to fund Akanyaru Multipurpose Water Resources Development project. The development was announced Monday 22, during a virtual event meant to celebrate the Nile Day
Harmonisation of taxes remains elusive as states stick to own rates (The East African)
East Africa’s grand plan of harmonising domestic taxes to eliminate harmful tax competition and promote the region as a single investment destination faces headwinds as partner states develop cold feet in agreeing on the uniform tax rules and rates for the six-member economic bloc.
Turkey continues to increase its presence in Africa: FM (Hurriyet Daily News)
Given the rise in the number of Ankara's diplomatic missions across Africa, Turkey's foreign minister said on Feb. 22 his country's presence in the continent continues to increase. "The African continent with its 33 Least Developed Countries [LDCs] is in need of solid leadership and support from its developed partners for economic growth, social progress, woman and youth empowerment."
Global Economy
Digitalising trade in the times of coronavirus pandemic (Khmer Times)
Last Saturday marks the entry into force of a new international agreement promoting paperless trade, reminding us, once again, of how the COVID-19 pandemic has brought digital solutions to regional development challenges into the limelight.
New WTO handbook sheds light on the Technical Barriers to Trade Agreement (World Trade Organisation)
A new WTO publication, launched on 22 February, provides an overview of the purpose and scope of the WTO Agreement on Technical Barriers to Trade (TBT Agreement), the types of measures it covers and its key principles.
UNCTAD Paper Cautions Digital Rules on E-commerce Could Negatively Impact Developing Countries | News | SDG Knowledge Hub | IISD (IISD Reporting Services)
The UN Conference on Trade and Development (UNCTAD) released a research paper that shares progress on negotiations on digital rules under the Joint Statement Initiative (JSI) on electronic commerce.
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Qatar-South Africa fresh food trade soared in 2019-20: Ambassador (MENAFN – The Peninsula)
Trade between Qatar and South Africa in fresh foods has grown significantly despite the COVID-19 outbreak, the Ambassador of South Africa to Qatar, H E Faizel Moosa, said during the launch of the Carrefour, South Africa Fresh Meat and Fresh Fruit and Vegetable week.
Zimra system disruptions affect business (Zimbabwe Independent)
The Zimbabwe Revenue Authority (Zimra) could have lost millions of dollars in the past two months following glitches in its information technology system which threatened to cripple financial transactions.
British products get 25-year tax free entry in Kenya pact (Business Daily)
The EPA executed between Nairobi and London provides full duty-free and quota-free market conditions for goods originating from East African Community partner state(s) into the market of the UK on a secure, long-term and predictable basis.
FG, NEPZA to boost FTZs competitiveness through AfCFTANigeria (Guardian)
The Nigeria Export Processing Zones Authority (NEPZA) says the Federal Government and the authority will leverage on the African Continental Free Trade Area (AFCTA) to boost the country’s trade competitiveness.
Ghana, Nigeria payment systems integration makes steady progress (GhanaWeb)
Ghana and Nigeria have made steady progress with the integration of payment systems, as part of the implementation of an integrated payment system for West African states.
News from Africa and Africa’s International Trade Relations
Covid_19 impact on EAC trade (CGTN)
A newly launched joint report by the UN Economic Commission for Africa (UNECA), Trade Mark East Africa (TMEA) and African Economic Research Consortium (AERC) has noted that declines in imports broadly reflected the adverse trade performance of the EAC’s main trading partners (Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda) during the early phases of the pandemic in April and May 2020.
New WTO boss backs British calls for new services rules (Telegraph)
The new World Trade Organization chief has backed Britain’s push for a shake-up of global rules in services trade, but warned sweeping reforms of the under-fire organisation will take a long time. Ngozi Okonjo-Iweala, the first African and first woman to head the trade referee, said the “sooner we can pin down the rules” in trade in services the better after the UK called for them to be modernised.
African Continental Free Trade Area should be used as a driver of peace and security on the continent (Daily Maverick)
Insecurity and political tension continue to undermine Africa by disrupting peacebuilding, development and governance efforts. A key driver of insecurity has been the effects of the arbitrary borders bequeathed to the African continent by the ravages of predatory colonialism. Traditional interstate wars have been increasingly replaced by intrastate conflicts.
Non-Tariff Barriers :: Trade barriers in Africa (Non-Tariff Barriers)
The African Continental Free Trade Area (AfCFTA)’s Non-Tariff Barriers online reporting, monitoring and eliminating mechanism is a facility developed to enhance trade through removal of non-tariff barriers to trade (NTBs).
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A more conducive business environment’ needed for South Africa to recover – report (Engineering News)
With the largest number of jobs created in 2021’s economic recovery expected to come from the private sector, President Cyril Ramaphosa has said that government will need to continue working with the private sector to create “a more conducive business environment” as an enabler of job creation. The President indicated during his State of the Nation Address (SoNA) last week that the social compact between the public and private sectors was underpinned by “a clear commitment to grow the economy and to create jobs”.
SA moves to manufacture, commercialise hydrogen cell technology (SAnews)
After over a decade of research and development around hydrogen fuel technology, President Cyril Ramaphosa says South Africa is now ready to manufacture and commercialise hydrogen fuels technology. The President said this when he responded to a debate on the State of the Nation Address in Parliament on Thursday. “For more than a decade, government has been working with various partners, including the private sector and academia, to develop hydrogen fuel cell and lithium battery storage technologies. “This work serves two important developmental objectives: it offers the possibility of a new, renewable source of energy, while establishing new uses and new markets for the platinum group metals that are abundant in our country. “Hydrogen and fuel cell technologies, which use platinum, offer an alternative source of clean electricity, while hydrogen allows for energy to be stored and delivered in a usable form,” he said.
Budget must focus on lowering unemployment, debt, says NetVest CEO (Engineering News)
This year’s Budget, set to be presented by Finance Minister Tito Mboweni on February 24, must focus on reducing unemployment in the country and addressing the country’s debt-to-gross-domestic-product (GDP) ratio, investment advisory NetVest Group of Companies CEO Busisiwe Mdletshe told Engineering News this week. She emphasised that lowering unemployment is the most important issue at present, given that this is the biggest contributor to a lack of tax revenue.
South African envoy eyes $1bn trade with Pakistan – Profit by Pakistan Today
South Africa’s High Commissioner Methuthuzeli Madikiza has said that his country considers Pakistan an important market for trade cooperation and is keen to further enhance the volume of bilateral trade.
The high commissioner said that Pakistan is the 14th biggest exporter to South Africa, which calls for the need to further strengthen trade relations between the two countries. He said that the volume of bilateral trade could increase to $1 billion in the next few years if cooperation and joint ventures can be initiated in including tourism, agriculture, services and pharmaceutical sectors.
Zimbabwe optimistic about 7.4% economic growth in 2021: Central bank (CGTN Africa)
Zimbabwe expected a strong economic growth of 7.4 percent this year despite the COVID-19 impact, Central bank governor John Mangudya said on Thursday. “The measured optimism is based on the expected significant growth of the agricultural output in 2021, as a result of the good rainy season, fiscal sustainability, and the Bank’s focus on price and financial system stability,” Mangudya said in his 2021 monetary policy statement. This would be a rebound from a decline of 4.1 percent registered in 2020. “Notwithstanding these COVID-19-related challenges, the Bank remains optimistic that the expected economic growth of 7.4 percent in 2021 is achievable,” said the Reserve Bank of Zimbabwe governor.
According to Mangudya, improved production and productivity will be key to sustaining the growth rate of 7.4 percent in 2021 and above 5 percent thereafter.
More trucks now using Zimbabwe for transit (Chronicle)
THE volume of commercial trucks using Beitbridge Border Post is increasing as transporters are avoiding the Botswana transit route due to strict Covid-19 screening. The Botswana government is reportedly retesting everyone passing through the country even if the travellers have Covid-19 clearance certificates from their point of departure. As a result, truckers who used to cross from Zambia, Malawi, Angola, and DRC to South Africa through Groblersbrug Border are now using Beitbridge.
According to border officials yesterday, the state of affairs has resulted in truckers spending more time than usual at the border. Through the inter-border agencies, Zimbabwe and South Africa have been giving priority clearance to critical cargo to decongest the borders. “We are having an influx of trucks which used to cross via Botswana. As a result, there is more pressure at Beitbridge Border Post. So, we are doing our best to move cargo as quickly as possible,” said a Zimbabwean border official.
Victoria Falls council okays informal traders (Chronicle)
SOME informal traders in Victoria Falls have resumed business after the city council allowed them back to their vending stalls following pronouncement by President Mnangagwa for informal businesses to reopen. President Mnangagwa on Monday extended Level 4 lockdown by a further two weeks and allowed the informal sector to open but subject to meeting World Health Organisation Covid-19 protocols. Private sector organisations seeking to resume work were also encouraged to test all employees prior to opening. Informal traders such as curio and flea market operators are some of the businesses that were closed because of the Covid-19 pandemic.
NCBA projects economy to grow by 4.9pc in 2021 (Capital Business)
NCBA is projecting the economy to recover upwards of 4.9 percent in 2021 following the tactical reopening of the economy. In its latest economic outlook, NCBA however warns that recovery will require bold, innovative and extraordinary actions on the part of policymakers. NCBA Bank Group Managing Director, John Gachora said the economy is estimated to have contracted in 2020 following a hard and broad-based hit on output in the second and third quarters due to the pandemic. “However, looking ahead, there is a reason to be optimistic…the phased reopening of the economy has seen a return of about 80percent of activity as consumer and labour mobility improves and supply chains are restored,” said Gachora.
Gachora said the Sh57 billion Post Covid Economic Stimulus has helped restore activity in some sectors especially construction and minimized the negative effects on others, with positive GDP spillovers. “To further repair the damages from the pandemic and avert a prolonged economic descent, it is essential that the Economic Recovery Strategy as proposed tactfully addresses the “lives versus livelihoods” dilemma,” said Gachora.
Kenya’s Volume of Trade at Sh218.96bn in December 2020-KNBS (Capital Business)
Kenya’s volume of trade in the month of December 2020 stood at Sh218.96 billion, a new data shows. The statistics by the Kenya National Bureau of Statistics reveals that the figures were up from Sh189.83 billion that was recorded in the month of November 2020. The value of total exports increased from Sh50.79 billion in November 2020 to Sh57.51 billion in December 2020, while the value of imports increased from Sh139.04 billion in November 2020 to Sh161.46 billion in December 2020. “Domestic exports by Broad Economic Category (BEC) indicated that food and beverages was the main export category in December 2020 accounting for 42.97 per cent of exports, while non-food industrial supplies accounted for 23.89 percent of the total exports,” reads KNBS report on leading economic indicators for December 2020.
Nairobi airport ready to switch from fruit to vaccines (TimesLIVE)
Companies and governments around the world are racing to establish cold-chain storage and delivery systems for vaccines which must be shipped and stored at ultra-cold temperatures and can only be kept in a standard fridge for up to five days. Mitchell Cotts has applied for international certification by health authorities to handle the imports, Tanui said, adding that it can handle vaccines which need to be kept as cold as -30 degrees. The company will modify its existing pharma unit at its $25m (R364m) facility at the airport, adding extra cabinets to hold the vaccines, and enhancing security. “When we designed this, we did not have in mind that a pandemic like Covid will be there and the number of vaccines that will come,” Tanui said.
Kenya Is Becoming a Global Hub of FinTech Innovation (Harvard Business Review)
For over sixty years, the U.S. was the leading innovator of financial technology (or FinTech) in the world. Over the past decade, however, China has become the global leader: Powered by smartphones and social apps, China has used remote payments and the digitization of money management to build a steady vehicle of financial inclusion. But it may not be the leader for long. Recently, African countries such as Nigeria and Kenya have emerged as FinTech hotbeds, and are using inexpensive, accessible tech to mobilize consumers in ways never seen before. To stay competitive, U.S. banks and FinTech companies need to study the factors enabling these successes abroad – and figure out how they can keep pace.
Simply defined, FinTech is the application of technology and innovation to solve the needs of consumers and firms in the financial space – think credit cards, online banking, and blockchain-powered cryptocurrencies. While it’s arguably just the latest update to the millennia-old evolution of credit, contracts, and banking, FinTech was one of the most explosive fields of the past decade. Venture capitalists, traditional finance firms, governments, and even the average smartphone user each had a hand in the massive acceleration of its growth. Advancements like remote payments, app-based stock trades, and automated insurance claims became commonplace. The IMF cited estimates of over $50 billion invested in the field during the first half of the 2010s, with triple-digit year-over-year growth being the norm.
Nigeria's economy exits recession as GDP grows by 0.11% in Q4 2020 | Nairametrics
Nigeria’s Gross Domestic Product (GDP) grew by 0.11% (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters.This is contained in the Nigerian Gross Domestic Product report, published by the National Bureau of Statistics
Europe remains largest destination of Ghanaian exports (Myjoyonline)
Europe continue to remain the largest destination for exports of Ghanaian goods as European countries received the largest share of 31.0% of Ghana’s total exports at the end of September last year. It was followed by the Far East including China and Japan which accounted for 20.1% percent of exports from Ghana. The Rest of Africa with 15.7%, the European Union with 12.3%, Other Economies (10.6%), ECOWAS (9.0%), and North America (1.2%) followed suit respectively. According to data from the Bank of Ghana, the Far East however emerged as the leading source of imports accounting for 39.1% of the total imports. This indicates China and the United Arab Emirates were the largest trade destination for Ghanaian traders. The European Union followed with a share of 24.2% whilst North America (12.4%) and Other’ economies (8.0%) respectively followed. Other Europe (6.8%), Rest of Africa (5.5%) and ECOWAS (4.0%) were also regions or continent Ghana imported goods from.
Ghana must negotiate with Benin to resolve export issues – Patrick Boamah (Modern Ghana)
Member of Parliament for Okaikwei Central, Patrick Yaw Boamah is urging authorities to take immediate steps to resolve challenges with the export of goods into Benin. “I am urging the Ministry of Trade and policymakers and implementers to ensure that whatever it takes for them to have negotiations with colleagues or trade partners in Benin has to be done immediately to protect Ghanaian jobs and safeguard Ghanaian industries,” he said. According to him, due to the decision of that country to withdraw from the ECOWAS Trade Liberalisation Scheme, some companies such as interplast are facing difficulties in the export of goods.
Egypt’s Sisi urges securing fair access to coronavirus vaccines for African nations – Politics – Egypt (Ahram Online)
Egyptian President Abdel-Fattah El-Sisi on Wednesday called for continuing coordination with the international community to secure the chance for African states to obtain coronavirus vaccine doses in a fair and just way.
Sisi called for securing the funding and logistical support required for African nations to tackle the pandemic’s economic, social, and health repercussions, Presidential Spokesman Bassam Rady said. “Mr. President indicated that holding this meeting confirms the availability of the political will to enhance joint African efforts to deal with the implications and consequences of the coronavirus,” Rady added. The president shed light on the “unprecedented” challenges and threat posed by the novel virus on health and development systems at the regional and international levels, Rady noted. “Mr. President also affirmed that Egypt would spare no effort towards exploiting all its capabilities to support its African brothers in obtaining coronavirus vaccines, given Egyptian experiences in this regard,” Presidential Spokesman Bassam Rady
Finance minister: Increasing demand on joining 2nd stage of initiative on export payment (SIS)
Minister of Finance Mohamed Maait has said an increasing demand on joining the 2nd stage of the Export Development Fund (EDF)’s initiative on exporters lump sum payment of export subsidy dues that provides a 15% payment cut is remarkable. In statements on Wednesday 17/2/2021 Maait said the initiative came in line with the government’s implementation of presidential directives to support the export sector and settle delayed dues of the companies with the fund till the end of June 2020. As many as 950 export companies have submitted requests to join the initiative as of Feb 7, he said. According to the minister, the launching of the second phase has been prompted by tangible success achieved in the first stage that highly contributes to providing financial liquidity, thus enabling exporting companies to deliver commitments before all customers, especially amid the current financial situation posed by Covid-19 pandemic.
Egypt boosts investment in Congo, hoping to secure support in Nile dam crisis (Al-Monitor)
Egypt is expected to direct more investments into the Democratic Republic of the Congo amid Egyptian efforts to have greater influence in the country. The Egyptian and Congolese governments signed a series of agreements in various fields, including in infrastructure, energy and drinking water, during the visit of Congolese President Felix Tshisekedi to Cairo on Feb. 2.
Urbain Manoka, a Congolese economist, added: “Investment is the factor par excellence of the DRC’s economic growth. It creates income and is one of the main engines of economic activity. A volume of over 50% of inflows [were invested] in sectors linked to basic infrastructure and agriculture, because the country favors investments in the secondary sector, [which is considered a] creator of added value.”
Liberian cocoa farmers still struggle to get to market; can the AfCFTA help? (The Africa Report)
Getting cocoa to market on Liberia’s treacherous roads is no joke. Like Liberia, many African countries hoping to take advantage of the African Continental Free Trade Area (AfCFTA) will require heavy investment in basic road infrastructure. In this episode of Talking Africa, we follow cocoa beans from harvest to coast. The AfCFTA, which came into effect at the beginning of the year, has been heralded as a major step in increasing intra-continental trade with the potential to stimulate growth, industrialisation and generate an additional $450 billion for African countries by 2035. In his annual address to the legislature last month, Liberian President George Weah described the AfCFTA as “a milestone achievement for Africa in terms of the promotion of trade amongst citizens of the African Union” and said he would forward the agreement for urgent ratification, joining the 36 countries that are already fully signed up. But connectivity issues, including weak transport infrastructure and the added costs that come with it, have been flagged as a significant challenge to the success of the initiative across the continent. Liberia will be no exception, given the deplorable state of much of its road network, with motorbikes the primary means of transporting goods and passengers in rural areas.
News from Africa and Africa’s international trade relations
Member and Partner States of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and the Southern African Development Community (SADC) have been called upon to rapidly conclude processes and procedures towards the ratification and implementation of the Tripartite Free Trade Area (TFTA). The call was made during the Extraordinary Virtual Meeting of the Tripartite Council of Ministers held on 15 February, 2021 to discuss the status of signature and ratification of the TFTA and Guidelines for Management and Monitoring of Safe Cross Border Movement of Persons and Personal Goods while Mitigating the Spread of the Coronavirus. Currently 10 Member and Partner States, namely Botswana, Burundi, Egypt, Kenya, Namibia, Rwanda, South Africa, Uganda, Eswatini and Zambia have ratified the TFTA Agreement, which falls short of the 14 Tripartite Member and Partner States required for the TFTA to enter into force in accordance with Article 39 (3) of the TFTA Agreement.
Private sector firms join push for AfCFTA agenda (The East African)
Private sector lobbies in Africa’s six regional trading blocs have formed the African Business Council, a continental umbrella body to spearhead the business agenda for the African Continental Free Trade Area (AfCFTA). The council – with its headquarters at the African Union offices in Addis Ababa, Ethiopia – has been carved out of the six regional trading blocs, these are the East African Community; Southern African Development Community (Sadc); Common Market for Eastern and Southern Africa (Comesa); Southern African Customs Union; Economic Community of West African States, and the Economic and Monetary Community of Central Africa. According to EABC Chief Executive, Peter Mathuki, the council has been long in the making. “We are in discussion with the AfCFTA secretariat with the aim of strengthening the role and mandate of the private sector in driving the continent’s business agenda through the six regional blocs.”
New dawn for continent as African steers world trade (The Herald)
The African continent on Tuesday carved its own piece of history when Nigeria’s Ngozi Okonjo-Iweala was elected to lead the World Trade Organisation, as its director-general. She becomes the first woman and the first African to lead this 164-member organisation in the 73 years of the General Agreement on Tariffs and Trade (GATT), which later transformed to the World Trade Organisation.
For strategic reasons, the appointment could not have come at a better time for Africa, a continent that is hoping to consolidate its economic prowess, which is increasingly become too big to ignore following dramatic and positive economic strides in recent years.
Africa was not able to successfully lobby for increased trade share before because of its fragmented trading policies, that could not be synchronised into one formidable platform, hence the formation of AfCFTA. Through AfCFTA and the presence of an African leader at the WTO who understands the economic challenges and prospects for growth of the continent, the African Union (AU) can now successfully lobby for an observer status at the WTO.
Afreximbank commits $200 million to continental export fund (The New Times)
The African Export-Import Bank (Afreximbank) has committed a $200 million envelope to support the Fund for Export Development in Africa (FEDA), which will have its permanent headquarters in Rwanda. This was confirmed by Louise Kanyonga, the Chief Strategy and Compliance at the Rwanda Development Board (RDB), during an exclusive interview with The New Times on Wednesday, February 18. Established in 2019, FEDA is an equity investment fund and a subsidiary of Afreximbank that seeks to fund African businesses to promote intra-African trade and facilitate foreign direct investment flows into the continent’s trade and export sectors.
African Union to set up infrastructure fund for the continent (Reuters)
The African Union is setting up a fund to finance the construction of much-needed roads, railways and power plants on the continent, its infrastructure head said, turning to new sources of cash due to donor fatigue and higher debt levels. The continent has an estimated annual infrastructure financing deficit of $60 billion-$90 billion, the AU says, making it hard for the body to advance its goal of integrating the disparate individual markets into a single, free trade area. “Africa is financially starved as far as the need for infrastructure development is concerned,” Raila Odinga, who is the AU’s high representative for infrastructure, told Reuters.
Talks with the funds are going on and the AU’s experts are setting up the legal and financial structure for the infrastructure fund, which will be administered by the newly formed African Union Development Agency, Odinga said.
Will the Restructured African Union meet the Continent’s Urgent Challenges? – ACCORD
The Summit’s annual theme, “Arts, Culture and Heritage: Levers for Building the Africa We Want,” which was decided last year, has been overshadowed by the imperatives to complete the reform of the Union and to deal with the ongoing COVID-19 pandemic. The Summit reviewed and approved a comprehensive report of the Africa Centres for Disease Control and Prevention (Africa CDC) that includes crucial strategic continental actions in response to the pandemic, especially the need for equitable and timely access to the COVID-19 vaccine for all AU Member States to ensure that at least 60% of the continent’s population is vaccinated. In respect of the reform of the Union, the election of the Commission’s new leadership has been a big step forward.
The President of the African Development Bank (www.AfDB.org), Dr. Akinwumi A. Adesina, has called for fair access to COVID-19 vaccines for Africans and said debt relief would help African economies recover faster and better from the pandemic. Speaking on 8 February at a virtual event held in his honour as the outgoing African of the Year of African Leadership Magazine, the Bank President warned that so long as the coronavirus was unchecked in any part of the world, no one would be safe. “There is light at the end of the tunnel – it just happens to be a very long tunnel. I am very positive that African economies will bounce back over the next two years, but the speed of recovery will depend on ensuring that Africa gets enough vaccines for its population,” Adesina said. “The world must not short-change Africa on access to vaccines,” he added. He also said significant debt relief would be key to accelerating African economies’ recovery from the COVID-19 crisis. “To recover faster, Africa will need significant debt forgiveness from bilateral and official creditors,” he said during the virtual event attended by Douye Diri, the Governor of the Nigerian state of Bayelsa, and Benoy Berry, Chairman of Contec Global Worldwide.
Worries over growing counterfeit COVID-19 vaccine market in East Africa • Today News Africa
On the World Health Organization’s (WHO) COVAX website, one video is quoted as saying, “When the world has safe and effective vaccines, how can we make sure they reach the people that need them the most?” The WHO may need to urgently drill down into answering that question because there is a robust COVID-19 vaccine counterfeit market set to make millions shipping fake vaccines to Africa. Djibouti, Lomé (Togo), and Cotonou (Benin) are all known entry points for fake pharmaceutical products related to the COVID-19 pandemic. Based on historical data, there is no reason to believe that these ports won’t also serve as a hub for counterfeit COVID-19 vaccines. In particular, one port is making the news as an “easy target” – Mombasa Port in Kenya. Three weeks ago, Mombasa Port, one of Africa’s busiest harbors, registered an increase in the number of ships and cargo. Kenya Ports Authority (KPA) told Africa Inc. Magazine they were optimistic about the early indications of significant growth. However, there is also concern about the Port Authority’s ability to inspect goods because, as one port worker stated, “The more shipments, the less inspection.”
Women-led businesses is missing ingredient to maximizing African entrepreneurship (The Africa Report)
Women make up 58% of African’s self-employed population, yet there are still significant imbalances between opportunities to scale, access to funding and training between men and women-led businesses on the continent. There is clear evidence of this in a recent World Bank report, Profiting from Parity, which shows that women entrepreneurs across sub-Saharan Africa continue to earn lower profits than men – 34% less on average. There is an irony in these inequalities: for investors, women are, in many ways, a better bet than men. In general, women in Africa are more likely than men to choose entrepreneurship as they find themselves in situations where they need to put their natural problem-solving skills to use. In Africa, 5% of Chief Executive Officers are women – slightly higher than the global average of 4%. Moreover, research shows that technology firms led by women experience a 35% higher return on investment than those led by men.
Why being endowed with oil is not always a boon: the case of Nigeria and Angola (The Conversation)
In countries with weak governance institutions, natural resource wealth tends to be a curse instead of a blessing. Where citizens are relatively powerless to hold ruling elites to account, resource wealth undermines development prospects. On the contrary, where citizens are able to exert constraints on executive power, resource wealth can generate development that benefits ordinary citizens.
Literature on the resource curse has done an adequate job of describing the general nature of the relationship between resource dependence and underdevelopment. It now needs to focus on understanding specific manifestations. In my latest book, I detail what these are in relation to oil in Nigeria and Angola, sub-Saharan Africa’s two largest oil producers.
Africa on Track to Make the Transition to Solar Power: Report (Mercom India)
The Africa Solar Industry Association (AFSIA) has pointed out the growing popularity of solar in its ‘Annual Solar Outlook Report,’ which gives an overview of how African countries are faring in their transition to solar power. While there is no dearth of solar resources at their disposal, Africa is still lagging in adopting solar, but things are changing now, and the continent is looking ahead for a brighter future.
Where Is the Africa-China Relationship Headed in 2021? (CSIS)
Many African countries experienced an uneven relationship with China in 2020. Early in the year, the continent’s leaders worried how African students and businesspeople living in China would fare after the outbreak of Covid-19 in Wuhan. The racist treatment of Africans a few weeks later in Guangzhou and elsewhere in China caused major diplomatic rifts, but African leaders’ attention quickly shifted to controlling the pandemic inside their own borders. Initially shielded from Covid-19 cases by their lack of global exposure to trade and tourism, African states carefully watched China and other Asian countries work hard to contain the outbreak and realized they had to take immediate action, too.
However, trade with China then faltered, leading to shortages and inflationary effects, and Chinese workers left projects in African countries due to concerns about the pandemic’s spread. But all this soon recovered too. The Africa-China relationship began to strengthen as the Chinese government and Chinese private organizations such as the Alibaba Foundation provided medical equipment to almost all African countries, and as China announced donations to the World Health Organization (WHO) and joined the COVAX and G20 debt suspension initiatives.
Global economy
WTO asked to focus on subsidies, unfair trade...as Okonjo-Iweala tackles delibitating pandemic (New Era)
With Nigeria’s former finance minister Dr Ngozi Okonjo-Iweala being confirmed as the new director general of the World Trade Organisation, Namibia has implored the global trade body to look into specific trade issues affecting the continent. Amongst her many priorities, these include fisheries and agricultural subsidies and unfair trade practices such as product dumping into African markets and other developing nations.
Wishing her all the best in her new role and many successes, Elijah Mukubonda, spokesperson for the Ministry of Industrialisation and Trade (MIT), said other issues the ministry feels need the WTO’s attention are property rights, such as geographical indications and traditional knowledge as well as equitable access to WTO dispute settlement.
“Currently, many developing nations are not really in position to advance their trade issues to the WTO dispute settlement system due to high cost. Some of the trade issues include global warming due to carbon dioxide emissions by developed nations and capacity building for developing and least developed nations.
“Dr Okonjo-Iweala ascends to take the helm of the global trade body at a time where the Multilateral Trading System is faced with numerous barriers such as a wide range of institutional reforms; impasse on the appellate body; conclusion of the negotiations on fisheries subsidies and the impact of Covid-19 that has turned lives upside down in every sector leaving us with little to no hope with unprecedented challenges. She emerged as the best candidate on merit-based firmly in her education and experience. Dr Okonjo-Iweala has vast knowledge in global economy and trade, multilateralism, economic relations as well as states and international development,” Mukubonda stated.
“Accelerating Trade Digitalization in Times of the Pandemic” (APN News)
Tomorrow [19 February] marks the entry into force of a new international agreement promoting paperless trade, a timely reminder of how the COVID-19 pandemic has brought digital solutions to regional development challenges into the limelight.
Paperless trade across borders has proven an effective way to mitigate trade disruptions since the onset of the crisis, enabling commerce to continue while limiting physical contact. Yet, despite the increasing acceptance of electronic documents across borders, implementation of cross-border paperless trade remains low according to the United Nations Global Survey on Digital and Sustainable Trade Facilitation for Asia and the Pacific.
Across Asia and the Pacific, governments must move from time-consuming paper-based processes to electronic and traceable trade procedures that can significantly enhance competitiveness and address new challenges associated with e-commerce and the digital economy. In doing so, our region can also recover some of the $200 billion in illicit financial flows that sharply reduce the capacity of governments to put in place support measures for vulnerable groups.
How mobile phones are helping achieve UN sustainable goals (Business Daily)
The global mobile industry is contributing to the realisation of the United Nations’ Sustainable Development (SDGs) goals but huge challenges lie ahead for many nations in achieving Agenda 2030. This is according to the 2020 GSMA report which states that that while significant progress has been made since 2015, including reductions in global poverty and maternal and child mortality rates, the world is still far from delivering sustainable development in the next ten years. The survey, 2020 Mobile Industry Impact Report: Sustainable Development Goals, applies a methodology where an impact score is assigned to all SGD goals and calculated out of 100. It discloses that while the mobile industry had the highest effect on infrastructure, at 63, it has had the lowest impact to end hunger (40), eradicate poverty, protect life on earth and promote peace and justice, which all had a score of 44.
Make ‘every effort’ to save COVID-19 response from corruption, UN Assembly President urges (UN News)
Speaking at the UN-Inter-Parliamentary Union (IPU) Annual Parliamentary Hearing, Volkan Bozkir underscored that the potential impact of corruption during the coronavirus pandemic “cannot be overstated”. “Already, corruption has led to scarcity in essential protection, life-saving equipment, adequate assistance and the provision of vital services. Corruption has caused thousands of extra lives to be lost during this pandemic”, he added. The Assembly President stressed the role of parliaments in ensuring oversight and transparency of the trillions of dollars’ worth of protection announced by governments to tackle the pandemic. “Parliaments can play a critical role in ensuring these funds are not diverted through corruption. We must ensure that corruption does not deprive the most vulnerable of medical supplies or assistance programmes”, he said.
Trade and Development Board, 70th executive session (UNCTAD)
The meeting took place virtually on 3-5 February 2021. Key issues included: Presentation of The Least Developed Countries Report 2020: Productive Capacities for the New Decade; Report of the Working Party on the Strategic Framework and the Programme Budget on its eighty-first session; Report of the Eighth United Nations Conference to Review All Aspects of the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices; Report of the Intergovernmental Group of Experts on E-commerce and the Digital Economy; Report of the Intergovernmental Group of Experts on Financing for Development; Report of the Preparatory Committee to the fifteenth session of the Conference; and Report of the Joint Advisory Group on the International Trade Centre.
Documents, Statements and Presentations are available here.
Trade and Environment Review 2021: Trade-climate readiness for developing countries (UNCTAD)
This edition of UNCTAD's Trade and Environment Review examines the physical impacts of climate change and their effects on developing country economies and trade; the vulnerabilities of developing countries to climate change; costs and finance for climate change adaptation; and finally, ways that developing countries can enhance their trade-climate readiness, i.e., enhance the resilience of their trade to climate change through adaptation actions and economic diversification. Special attention is given to examining the challenges faced by the poorest and most vulnerable developing countries, specifically the least developed countries (LDCs) and small island developing states (SIDS).
tralac Daily News
Country focus
Budget to focus on tax enforcement, improved collections, and wealth tax unlikely, says EY (Engineering News)
South Africa’s budget, which is to be presented in Parliament on February 24, is unlikely to result in the introduction of a wealth tax or any other significant tax increases. Rather, it is more likely that the National Treasury will take steps to ensure tax enforcement and collection, says professional services network EY. “The Budget trend since 2019 has mainly been to equip the South Africa Revenue Services (Sars) to enhance tax enforcement and improve tax collections. We do not anticipate a significant departure from this focus in this month’s budget,” says EY South Africa tax leader Ekow Eghan. He adds, however, that EY continues to be of the view that a phased-in reduction of corporate tax rates, however unpopular, could help drive South Africa’s trade, economic reform and competitiveness.
Meanwhile, economists and tax experts from professional services firm PwC have also released their predictions for the 2021 Budget. This includes that Budget margins will be trimmed and reprioritised towards medical and other necessary social expenditure.
SA looks to Asian markets to revive economic growth (SAnews)
International Relations and Cooperation Minister, Dr Naledi Pandor, says government has created a significant footprint in Asian markets as part of efforts to return the country to pre-COVID-19 economic growth. “We will identify new opportunities and expand those that have benefit for South Africa. In pursuit of this objective, South Africa has created a significant footprint in Asia, which is the continent showing the most promise of a speedy return to pre-COVID-19 levels of economic growth.
The Minister said in response to the President’s call of intensifying efforts to stimulate growth, government is working tirelessly to raise South Africa’s global visibility by also “promoting [South Africa] as the best place to be, to do business, to visit, to work, to study and to live”. South Africa, the Minister said, will leverage engagement with the Association of Southeast Asian Nations (ASEAN) to enhance mutually beneficial trade, investment and tourism ties, and to support skills development and training for South Africans.
Should South Africa risk a trade-war with US by taxing Google, Facebook, etc? (CapeTalk)
Taxing the digital economy has the potential to plug gaping gaps in the country’s budget. However, the unilateral introduction of a digital tax by the South African Revenue Service (Sars) poses considerable challenges. A digital tax will hit American companies hard; does South Africa have the might to take on the US in a trade war?
Envoy stresses exchanging information to boost trade (The Express Tribune)
The exchange of trade-related information between Pakistan and South Africa can help boost trade between the two countries, said High Commissioner of South Africa Mthuthuzeli Madikiza. Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Wednesday, he said that South African businessmen were aware of investment opportunities in various sectors of Pakistan’s economy. He identified multiple sectors where the two countries can focus to enhance trade.
SA working towards low-carbon, climate resilient economy: Barbara Creecy (Times LIVE)
Environment, Forestry and Fisheries minister Barbara Creecy has conceded that traders in some of the largest economies in the world are unlikely to prioritise trade with SA because of its highly carbon-intensive production processes. This posed a risk of non-tariff trade barriers, she said during the state of the nation debate on Wednesday.
Creecy said nine of the world’s 12 largest economies, and many of SA’s major trading partners, had in the past year made net zero carbon commitments, due to investor and societal pressures. These countries included China, the European Union bloc, Japan, and Korea. However, the US was likely to follow suit after announcing its intention to rejoin the Paris Agreement. “Because our energy and production processes are highly carbon-intensive, our major trading partners, who have made net zero commitments, are likely to prioritise trade with other low-carbon economies. This poses a risk of non-tariff trade barriers. Already there is increasing pressure from financial institutions who refuse to fund the development of new carbon-intensive assets,” said Creecy.
Namibia: Repo rate maintained at 3.75% (The Southern Times)
The Monetary Policy Committee (MPC) of the Bank of Namibia has decided to keep the Repo rate unchanged at 3.75 percent. The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one link between the Namibia Dollar and the South African Rand.
Domestic economic activity slowed considerably in 2020 compared to 2019. Contractions were observed in key sectors such as tourism, wholesale and retail trade, mining, manufacturing, construction, as well as transport and storage. The contraction was mainly due to the devastating effects of the COVID-19 pandemic. On the contrary, activity in the telecommunication and local electricity generation subsectors improved during the same period. The domestic economy is estimated to have contracted by 7.3 percent in 2020, before returning to an expected moderate recovery of 2.6 percent in 2021.
To reap big from AfCFTA arrangement, Kenya must focus on export market (Capital FM)
Kenya is the first African Union (AU) member state to ratify the AfCFTA agreement out of the 29 countries that have ratified so far. The exemplary lead Kenya has accorded the Free Trade Area underscores the country’s commitment to its successful implementation.
Under AfCTA, it is about time the African governments to turn the tide of the international trade by making the unified continental trade agreement as source of exported goods through value addition rather than a disadvantage market for foreign exports. Kenya being a regional economic hub, this level of high market integration supported by a 1.3 billion population places the country at a vantage point to take advantage of the new opportunities particularly on the export market of goods and services.
To maximise the benefits from the agreement, the quality and competitiveness of the export market products and services should be continuously improved to match the global standards particularly with regard to the four delivery pillars on manufacturing, affordable housing, Universal Health Coverage and food security.
Kenyan business community need supportive sound policies championed by both the government and the private sector mainly on; access to credit lines for capital, address multiple taxation, fees and charges, lowered cost of production, adequate and timely trade networks and market intelligence to have an upper hand to take the lead.
Kenya banks on new plan to revive tourism (Nation)
The government is banking on recognition of top industry performers and private-public partnerships in its efforts to revive the tourism sector, which suffered a slump last year due to the coronavirus pandemic. Tourism Cabinet Secretary Najib Balala said Magical Kenya Signature Experiences (MKSE), a programme that recognises outfits that offer the best safari and tour experiences, is a key part of the ministry’s strategy to revive the crucial sector.
The CS said although the past one year has been difficult for tourism, he was optimistic that the industry will soon bounce back. “A lot has been going on behind the scenes to ensure Kenya comes back stronger. MKSE is part of our strategy to revive tourism in Kenya through partnership with the private sector,” he added.
Kenya’s trade deficit drops Sh205bn on lower imports (Businsss Daily)
Kenya’s trade deficit last year narrowed by 16.97 per cent, or Sh204.57 billion, helped by a double-digit drop in imports amid disruptions in global supply chains as a result of Covid-19 shutdowns and restrictions. The deficit – the gap between imports and exports – dipped to Sh1.001 trillion in 2020 from nearly Sh1.21 trillion in 2019, provisional statistics published by the Kenya National Bureau of Statistics (KNBS) show. The value of imports dropped by 8.81 per cent or Sh158.74 billion to Sh1.64 trillion in 2020 compared with a year earlier, while total exports increased by 7.77 per cent to Sh641.21 billion.
Kenya to complete grid connection to Ethiopia by June (Pumps Africa)
Kenya is expected to complete the connection of its national grid with Ethiopia’s by June this year. Energy Cabinet Secretary Charles Keter made the announcement and said that said the new connection will be ready for commissioning at the end of three months. “Kenya will venture into the power trade businesses with this new regional interconnect. We view this as a critical installation to the development of the country,” said CS Keter. The Ethiopia-Kenya Inter-connector is Kenya’s second cross-border grid link after Uganda which connects through the Olkaria-Lesos 132 Kilovolts (kV) line. It is also the longest transmission line in East and Central Africa.
Rwanda’s economy hit hard by lockdowns, curfews (The East African)
Rwanda’s economic managers face a daunting task in the coming months to find new sources of growth to revive the economy, which is currently in recession. Coronavirus restrictions imposed by the government during the pandemic have had a negative impact. Faced with mounting uncertainties surrounding the duration and spread of the pandemic, analysts say the economic fallout could intensify unless the government takes additional measures to spur growth.
The pandemic has hit Rwanda’s key strategic sector – service, particularly retail trade, leisure and hospitality and conference tourism – which collectively account for most jobs in the country. And despite the government adopting the Economic Recovery Plan estimated at $900 million over the two fiscal years 2019/20 and 2020/21, economic recovery remains slow in part because of the second wave of infections that recently led to a three-week lockdown in Kigali and reintroduced restrictions on movement.
Rwanda secures $200 million for continental export fund (The New TImes)
Rwanda has secured an initial commitment of $200 million from the African Export-Import Bank to support the country’s preparations to host the Fund for Export Development in Africa (FEDA). The funding was announced by the Minister of Foreign Affairs, Vincent Biruta as he addressed the lower house of parliament on Wednesday, February 16, during a virtual sitting.
Biruta told MPs that FEDA aims at increasing private equity investments in sectors critical to driving intra-African trade and export development. This, he noted, is vital in addressing constraints to the advancement of export growth and diversification, as well as promoting Africa’s export sector.
Rwanda’s robotic advancements in response to Covid-19 (The New Times)
According to information from the World Health Organization, one of the challenges brought about by the Covid-19 pandemic is a stout chain of transmission, especially the rate of infection of health professionals while treating Covid-19 patients. This, experts argue, has seen countries, including Rwanda, adopt the science of robotic systems as part of the ways to offer effective treatment at the same time strengthening the fight against the pandemic.
Tanzania government issues permit for importation of sugar by companies (The Citizen)
The minister for Agriculture, Prof Adolf Mkenda, disclosed yesterday that the government was issuing permits to companies to import sugar for the last time this year, urging the sugar board to start importing the sweetener next year. The comment signals change in the government policy, which has been allowing traders to import sugar to offset the shortages. Recent reports indicate that Tanzania’s demand for domestic sugar was 470,000 metric tons, while the country’s five sugar processing factories had the capacity of producing 378,000 tonnes in 2019.
Mapping Nigeria’s foray into Africa’s single market (Vanguard)
The African Continental Free Trade Agreement, AfCFTA, is a continent-wide trade pact aimed at tearing down barriers to commerce among African countries. It is focused on trade liberalisation across the continent and provides for progressive elimination of tariff and non-tariff barriers and development and promotion of regional and continental value chains.
The AfCFTA will cover a market of 1.2 billion Africans with a combined Gross Domestic Product, GDP, of $2.5 trillion. It would increase intra-African trade by up to 52.3 per cent; and enable all AU countries to share in the welfare gain, which is estimated at 2.64 per cent of continental GDP – roughly $65 billion in 2018 terms. It is also expected to double the continent’s share of world trade from three per cent to six per cent over the next 10 years.
The pact will expand the size of Africa’s economy to $29 trillion by 2050, as estimated by the United Nations’ Economic Commission for Africa, ECA. The general view is that no African country is fully ready for trade liberalisation. Most plan to use the AfCFTA as a driving force to enhance their global trade competitiveness.
Trudi Hartzenberg, Executive Director of South Africa-based Trade Law Centre (Tralac) said: “The negotiations are pretty complex because the countries that are negotiating would lose tariff revenues. Reducing the tariffs means the import duties are lower so they would be gathering less revenue than before. “For some countries, the tariff revenues they get from trade taxes amounts to 25 per cent or more of their total fiscal tax revenues. The easiest taxes to collect are import duties.”
Indian Cabinet okays trade deal with Mauritius, the first with an African nation (Business Standard)
The Cabinet has approved the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius to encourage and improve trade between the two countries. The Agreement is a limited agreement, which will cover trade in goods, rules of origin, trade in services, technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, dispute settlement, movement of persons, telecom, financial services, customs procedures and cooperation in other areas. The CECPA will be the first trade agreement to be signed by India with a country in Africa, information and broadcasting minister Prakash Javdekar said.
Mauritius will benefit from preferential market access into India for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel, Javdekar said. As regards trade in services, Indian service providers will have access to around 115 sub-sectors from the 11 broad service sectors such as professional services, computer-related services, research & development, other business services, telecommunication, construction, distribution, education, environmental, financial, tourism & travel related, recreational, yoga, audio-visual services, and transport services.
Significant scope to expand and diversify India-Ethiopia bilateral trade: MoS MEA (Times of India)
Even as trade and economic relations between India and Ethiopia are booming, there is still huge scope to expand and diversify trade between the two countries, said V Muraleedharan, minister of state for External Affairs said at an ASSOCHAM event held in New Delhi.
Muraleedharan said that the economy of Ethiopia, the second-most populous African country which has been posting a double-digit growth rate for over 15 years together with its highly-educated, skilled populace and sound economic policies makes it an attractive investment destination for Indian entrepreneurs. Highlighting the expansion in economic collaboration between India and Ethiopia, the minister highlighted that despite Covid-19 global pandemic, Indian businessmen continued to explore investment opportunities in the African country.
News from Africa and Africa’s international trade relations
Economic diversification in East Africa: Time to redouble efforts (UNECA)
When the COVID-19 pandemic crisis started; most people were extremely pessimistic. They thought that the the region would drown in terms of trade declining catastrophically. But in actual fact the the East Africa Community economies (Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda) have, by global standards, proven to be relatively resilient. The newly launched joint report by UN Economic Commission for Africa (UNECA), TradeMark East Africa (TMEA) and African Economic Research Consortium (AERC) entitled pdf “Waving or Drowning? The Impact of the COVID-19 Pandemic on East African Trade” (4.01 MB) notes that declines in imports broadly reflected the adverse trade performance of the EAC’s main trading partners during the early phases of the pandemic in April and May 2020, but the imports of all the EAC Partner States subsequently recovered to pre-pandemic levels by the second half of 2020, after governments’ lockdown restrictions were eased and a broader global trade recovery started to take place. Nonetheless, despite showing resilience, COVID-19 has reversed some of the gains made in trade facilitation.
Development Reimagined launches new Flagship Report for Reimagining the African Debt System
As African countries continue to borrow billions of dollars internationally for a range of activities, including much-needed infrastructural development, in energy, transport, water and other sectors, servicing this debt can be challenging, and can hinder African countries’ fiscal space for other expenditure, such as regular social spending on education and health. The ongoing COVID-19 pandemic has pushed some African countries into debt crises, with reduced tax revenues due to, for example, the collapse of commodity prices and tourist arrivals. Simultaneously, government expenditure has increased, with pro poor policies to protect livelihoods and businesses from the impacts of COVID-19, as well as the new costs of PPE, medication and vaccines. But this is all happening amidst existing development challenges, with huge, tens of billions of dollars per year financing gaps for infrastructure and SDG achievement. What’s the background of debt in Africa? How has COVID-19 impacted the situation? What solutions and methods are available?
To explore these critical questions, Development Reimagined has launched a new Flagship Report- “Options for Reimagining Africa’s Debt System”. The paper, part of the Africa Unconstrained series, presents ten “options” for African and other stakeholders to pursue going forwards – three previously utilised, and seven new.
Africa’s reliance on Chinese loans has experts concerned about more debt defaults (CNBC)
After Zambia became the first coronavirus-era debt default on the African continent, analysts are questioning whether nations heavily dependent on Chinese loan financing would be susceptible to debt distress. The Covid-19 pandemic has posed difficulties for a host of sub-Saharan African countries that have borrowed substantially from China in recent years to fund major infrastructure projects, compounding pressures from a slowdown in the continent’s economic growth and falling commodity prices.
Verisk Maplecroft Research Associate Aleix Montana said in a recent report. Montana said the Zambia case indicates that beyond just the size of debt, the composition of creditors also plays a role in determining debt risk.
Resource-backed loans are often attractive to nations with rich natural resources, a need to finance infrastructure projects and limited access to capital markets. In some of China’s financing arrangements, commodities are used as a means of repayment or collateral, Montana highlighted. Loans are often predicated on future production of resources like cocoa, tobacco, oil or copper.
“Repayment deals based on the future value rather than on the quantity of a commodity are especially risky for the borrower, since a decrease in commodity prices in the global market would require an artificial increase in its production to cover the debt obligations,” Montana said.
New project to investigate who benefits from corruption in extractive industries (Devex)
An ambitious new program to fight corruption by identifying who benefits from the proceeds of lucrative extractive industries is being launched by transparency campaigners. Opening Extractives is a collaboration between Open Ownership and the Extractive Industries Transparency Initiative, both organizations campaigning for more accessible knowledge about private finances.
An estimated $88.6 billion is lost from Africa alone each year, according to the United Nations Conference on Trade and Development. Nearly half of this, $40 billion, is associated with extractives industries, particularly the mining of precious metals and stones, according to UNCTAD. The agency also highlighted that annual international aid to the continent amounts to $48 billion. Last year an investigation into hundreds of thousands of documents dubbed the Luanda Leaks found that shady contracts in Angola had funneled a fortune to billionaire Isabel dos Santos, the daughter of the country’s former president. “Anywhere you find political control over the distribution of public funds or public assets, the absence of understanding who ultimately benefits from them leads to a massive corruption risk,” said Thom Townsend, executive director of Open Ownership. He added: “Wherever there is a proximity of political power and the ability to distribute funds and control where they end up, the absence of beneficial ownership data produces a significant risk.”
Sub-Saharan Africa had a manufacturing renaissance in 2010s – it’s a promising sign for the years ahead (The Conversation UK)
The COVID-19 pandemic has wreaked havoc on the global economy, with world output contracting at 3.5% in 2020, and no recovery likely before the fourth quarter of 2021. Similar to other developing regions, sub-Saharan Africa recorded a 2.6% decline, following strong growth of 3.2% in 2019. Unfortunately, this comes at a time when the region has been experiencing a surprising and very welcome manufacturing renaissance. Historically, industrialisation has been associated with rapid technological improvements and sustained growth in the western world, and more recently east Asia, gainfully employing millions of workers and helping it to close the income gap with richer countries.
But recently the trend has reversed across the region. We have documented this in new research based on an in-depth investigation of national statistics in 51 countries, including 18 in sub-Saharan Africa, ranging from South Africa to Ethiopia to Nigeria to Kenya to Mauritius. These 18 countries account for nearly three-quarters of the GDP of the region, so they are a good representation of the overall picture.
One major question that stems from our research is how this trend towards more industrialisation in sub-Saharan Africa is likely to have been affected by COVID-19. Various economic activities have taken a hit, particularly travel and tourism, as lockdown policies have put a break on commerce and travelling. Fundamental drivers of long-term manufacturing growth have also been held back – especially education, with schools closed in many countries for extended periods.
On the other hand, since the recent manufacturing growth has mainly been serving a domestic and not an export market, it is at least not primarily depending on demand from other countries. But as far as exports are concerned, the initial indications are that commodity exports in sub-Saharan Africa were hit harder than manufacturing – vividly illustrated by the collapse in oil prices in 2020 (which has since bounced back). The recently created African Continental Free Trade Area might also boost regional trade in manufactured goods in the years to come. So all in all, the manufacturing renaissance in the region may be relatively resilient.
Crime and (no) punishment: Why Africa’s ports are vulnerable to counterfeit Covid vaccines (Engineering News)
Over the past 12 months, there's been increasing talk in East African intelligence and law enforcement circles about the role Mombasa could play in facilitating shipments of falsified and substandard Covid-19 vaccines. Mombasa's many organised crime groups have never been shy to miss out on new opportunities - and there are a lot of them.
Now, the port is set to become the primary conduit for vaccine supplies from India and China to landlocked East African countries, such as Uganda, Rwanda and Burundi, plus South Sudan, Somalia and the Democratic Republic of Congo. More goods mean less inspection — less inspection makes it easier for criminals to operate Interpol East Africa crime intelligence analyst John-Patrick Broome identifies Mombasa as a "key facility" for trade in falsified and substandard medicines. Already, he says, there's been a noticeable reduction in inspections at Mombasa port and other ports in the region.
Integrating projects: CEMAC moves to the effective mobilization of the funds committed at the Paris roundtable (Business in Cameroon)
On February 15th, in Douala, a session of the technical commission in charge of monitoring the mobilization of financial resources for the implementation of the CEMAC’s 11 integrating projects started. Until February 19th, 2021, the commission will implement resources mobilization mechanisms for the effective mobilization of the XAF2, 492 billion pledged by backers during the investors’ round table organized in Paris on November 16th – 17th, 2020.
Engineering News AAAM and Afreximbank sign an MoU to drive Automotive Investment in Africa (Engineering News)
The African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa. Prof. Benedict Oramah, President of Afreximbank and Mike Whitfield, President of AAAM and Managing Director of Nissan Africa, signed the MoU in early February, formalizing the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.
Prof. Benedict Oramah, President of Afreximbank said that “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA)”.
Statement by the African Peer Review Mechanism on the Downgrade of Ethiopia by Fitch | African Union
The APRM has noted the downgrade of the Republic of Ethiopia’s long-term foreign currency sovereign credit rating by Fitch on the 09th of February 2021, 2-notches from B to CCC. Moody’s and S&P Global rating still has the country’s long-term credit rating on B2 and B, respectively. The newly assigned rating for Ethiopia means the country is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for it to meet its financial commitments on the obligation. The APRM raises the following observations;
The Japan International Cooperation Agency (JICA) and the African Development Fund (ADF) – the concessional arm of the African Development Bank Group – on Tuesday signed a loan agreement of 73.6 billion Japanese yen ($668.1 million) to support the 15th replenishment of the African Development Fund (ADF-15). Ambassador Kuramitsu Hideaki, whose country has been the fifth-largest contributor to the ADF in cumulative terms, said the loan formed part of Japan’s commitment to promote industrial human resource development, innovation and investment, and to invest in quality infrastructure to enhance connectivity, expressed at the TICAD 7 conference in August 2019.
DFI Working Group launches report on blended concessional finance for private sector projects (AfDB)
The report measures private investment in development projects in which MDBs and DFIs also make investments or have otherwise provided deal structuring or other support. These investments support global sustainable development goals by promoting inclusive and sustainable growth, tackling poverty and inequality, and mitigating climate change, among other impacts.
Global economy
Trade experts optimistic of WTO reforms by Okonjo-Iweala (News Agency of Nigeria)
Some trade experts have affirmed that Dr Ngozi Okonjo-Iweala’s appointment as Director-General of World Trade Organisation (WTO) would make a difference through reforms in the global economic and trade space. The experts told the News Agency of Nigeria (NAN) in Abuja on Wednesday that the world looked forward to radical reforms of WTO system, especially with the catastrophe caused by COVID-19 on trade.
Mr Sand Mba-Kalu, a trade expert, urged Okonjo-Iweala to provide strong leadership on current expectation of global trade and increase developing countries participation in WTO activities. Mba-Kalu, who is Executive Director, Africa International Trade and Commerce Research, emphasised the need to address the call for the suspension of Intellectual Property (IP) rights related to COVID-19. He said that the suspension would ensure that not only the developed countries would be able to access and afford the vaccines, medicines, and other medical supplies. Another expert, Mr Lawrence Nze, underscored the need to strengthen domestic and continental trade and equally boost confidence of Nigeria and Africa in multilateral trading system. The expert emphasised the need for global value chain opportunities and seamless trade facilitation regime through effective mechanism.
Goods Barometer signals strong trade rebound but momentum may be short lived (WTO)
World merchandise trade volume growth remained strong in the fourth quarter of 2020 after trade rebounded in the third quarter from a deep COVID-19 induced slump; however, the pace of expansion in the fourth quarter is unlikely to be sustained in the first half of 2021 since key leading indicators appear to have already peaked, according to the WTO’s latest Goods Trade Barometer of 18 February 2021.
Publication of Joint WCO-ICAO Guiding Principles and Guidelines to enhance Air Cargo Security and Trade Facilitation (World Customs Organization)
The World Customs Organization (WCO) and International Civil Aviation Organization (ICAO) released their Joint WCO-ICAO Guiding Principles for Pre-Loading Advance Cargo Information and Joint WCO-ICAO Guidelines on Alignment of the Customs Authorized Economic Operator and Aviation Security Regulated Agent/Known Consignor Programmes. These Guiding Principles and Guidelines are a result of continuous joint efforts over the last 10 years, following serious threats and vulnerabilities to international trade supply chains. “In the context of the COVID-19 pandemic and the need to facilitate safe and secure vaccine distribution, strong collaboration among Customs, Civil Aviation Authorities and the relevant stakeholders is highly recommended,” said the WCO Secretary General, Dr. Kunio Mikuriya. “WCO and ICAO Members are encouraged to make the best use of advance cargo information for risk assessment as well as to align partnership and security programmes to ensure secure and efficient air cargo supply chains,” he added.
Dubai Launches Covid-19 Vaccine Logistic Alliance – East African Business Week
Dubai launches Covid-19 Vaccine Logistic Alliance to speed up distribution around the world, under the directives of Vice President and Prime Minister of the UAE and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum. This is an initiative in support of the World Health Organisation’s (WHO) COVAX initiative and its efforts to equitably distribute two billion doses of COVID-19 vaccines in 2021.
The Dubai Vaccines Logistics Alliance combines the expertise and global reach of Emirates airline with DP World’s worldwide network of ports and logistics operations, along with the infrastructure of Dubai Airports and International Humanitarian City to distribute vaccines worldwide. The distribution will particularly focus on emerging markets, where populations have been hard-hit by the pandemic, and pharmaceutical transport and logistics are challenging.
World Debt Reaches Record $281 Trillion (Bloomberg)
The world has never been more indebted after a year of battling Covid-19. And there’s even more borrowing ahead. Governments, companies and households raised $24 trillion last year to offset the pandemic’s economic toll, bringing the global debt total to an all-time high of $281 trillion by the end of 2020, or more than 355% of global GDP, according to the Institute of International Finance. They may have little choice but to keep borrowing in 2021, said Washington-based director of sustainability research Emre Tiftik and economist Khadija Mahmood.
Even as vaccines are rolled out, low central bank policy rates are keeping issuance above pre-pandemic levels. Governments with big budget deficits are set to increase debt by another $10 trillion this year as political and social pressures make it hard to curb spending, pushing this group’s debt load past $92 trillion by end-2021, the IIF estimates.
EU development boss makes debt relief push (Devex)
European Union finance ministers discussed a “global recovery initiative” in response to the COVID-19 pandemic Tuesday, though the planned link between debt relief and sustainable investments remains vague nine months after the idea was first announced. Ursula von der Leyen, president of the European Commission, told the United Nations last May that Europe needs to do more than hold pledging conferences on global access to vaccines. “I would like to propose something even more ambitious,” she said at the event on Financing for Development in the Era of COVID-19 and Beyond. “We need a global recovery initiative that links investment and debt relief to the Sustainable Development Goals.”
EU’s renewed multilateralism fit for the 21st century (EU News)
On 17 February, the Commission and the High Representative put forward a new strategy to strengthen the EU’s contribution to rules-based multilateralism. The Joint Communication lays out the EU’s expectations of and ambitions for the multilateral system. Today’s proposal suggests to make use of all tools at the EU’s disposal, including its extensive political, diplomatic and financial support to promote global peace and security, defend human rights and international law, and to promote multilateral solutions to global challenges.
High Representative of the Union for Foreign and Security Policy/Vice-President for a Stronger Europe in the World, Josep Borrell, said: “Multilateralism matters because it works. But we cannot be ’multilateralists’ alone. At a time of growing scepticism, we must demonstrate the benefit and relevance of the multilateral system. We will build stronger, more diverse and inclusive partnerships to lead its modernisation and shape global responses to the challenges of the 21st century, some of which threaten the very existence of humanity.”
Tracking an Unprecedented Year for Businesses, Everywhere (World Bank)
The adoption of technology was much lower among smaller firms, which typically face tougher constraints in terms of lack of demand, higher uncertainty and weaker managerial capacities. In addition, these companies often have less access to finance and more difficulty accessing high-speed internet.
Addressing the equitable distribution of vaccines against the coronavirus in the Security Council today, United Nations Secretary-General António Guterres proposed the creation of an emergency task force by the G20 countries to prepare and help implement a global immunization plan. “The rollout of COVID-19 vaccines is generating hope,” he told the 15-member Council’s videoconferencing meeting. “At this critical moment, vaccine equity is the biggest moral test before the global community.”
The Secretary-General pointed out that the coronavirus continues its merciless march across the world – upending lives, destroying economies and undermining the Sustainable Development Goals – while exacerbating all the factors that drive instability and hindering global efforts to implement Security Council resolution 2532 (2020) on conflict prevention and resolution.
Recalling the creation of the COVAX facility – the one global tool to procure and deliver vaccines to low- and middle-income countries – he stressed the urgent need for a global vaccination plan to bring together all those with the required power, scientific expertise and production, and financial capacities.
Mining boom could herald commodity ‘supercycle’ (The Guardian)
It is known as a “supercycle” – and there have only been four in the past century. The term defines periods when commodity prices enjoy an extended boom, and this week’s multibillion-dollar windfalls for mining company investors suggest a fifth supercycle is on its way. Indeed, there are signs it may have already begun. In recent weeks the price of iron ore, which is used to make steel, surged by more than 85% to reach highs not seen in almost 10 years. The market price for copper, used in electrical wiring, has followed suit by climbing 80% since last March to reach a nine-year high. Meanwhile, nickel is trading close to 17-month highs and cobalt is at close to two-year peaks.
The next 30 years are “likely to bring a supercycle in investments in clean energy infrastructure, clean transportation and everything else that is required to make the green transition possible,” Mark Lewis, the chief sustainability strategist at BNP Paribas Asset Management, said.
Responding to a stark rise in food insecurity across the poorest countries (World Bank Blog)
The impacts of the COVID-19 pandemic have dramatically increased food insecurity in the poorest and most vulnerable countries served by the World Bank’s International Development Association (IDA). What does this mean for the kind of support these countries need and what is IDA doing to address this emerging crisis?
COP26: One Earth One Future (UNDP)
During this Decade of Action, we strongly believe we need to amplify the importance of integrated solutions to address the multiple crises facing us – the crisis of biodiversity loss, degraded ecosystems and landscapes, climate change, and poverty and persistent inequality, all compounded in the last year by the COVID-19 pandemic. By safeguarding natural ecosystems and harnessing nature-based solutions, we have the opportunity to build a truly sustainable pathway for a climate resilient development. Well-designed, nature-based solutions can deliver multiple benefits – they support climate adaptation and mitigation, and they protect biodiversity and the valuable ecosystem services, on which our humanity depends to survive and prosper.
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tralac Daily News
Country focus
Agricultural exports record second-largest level on record in 2020 (IOL)
The Agricultural Business Chamber (Agbiz) said yesterday that South Africa’s agricultural exports could increase further in 2021 after reaching record levels last year in spite of lockdown restrictions. South Africa’s agricultural exports increased by 3 percent in 2020, registering the second-largest level on record amounting to $10.2 billion (R).This was the second-largest level after the record exports of $10.7bn in 2018.
Alliance calls for sugar tax increase to pay for vaccines (IOL)
An alliance of non-governmental organisations has called on the government to increase the health promotion levy to 20 percent to help South Africa pay for Covid-19 vaccines. The Healthy Living Alliance (Heala) said yesterday that hiking the levy from the current 11 percent could raise billions of rand for Covid-19 in the short-term, and also reduce non-communicable diseases over time. Tax analysts have, however, dismissed possibilities of any significant tax hikes amid expected budget overrun.
Copyright Amendment Bill an issue for trade between SA and US (Business Day)
SA is apprehensive about striking a new trade deal with the US and would rather maintain existing relations with the world’s largest economy, Lionel October, the director-general of in the department of trade, industry and competition has said. “We are working more on continuing GSP preferences, hopefully getting an extension to Agoa, even though we might have to give some concessions – but rather that than a full-blown trade agreement” that may take four to five years to negotiate, he said. Trade in goods and services between SA and the US was valued at $17.8bn (about R258bn) in 2019, while $2bn of exports from SA were cleared under the GSP and Agoa, according to US government data.
South Africa needs a free-trade deal with China, not the Belt and Road Initiative (Daily Maverick)
Of the 54 countries in Africa, only Mauritius has successfully concluded a free-trade agreement with China. Thirty of the continent’s least developed countries have access to a unilateral preferential scheme. The balance, including South Africa, do not enjoy the same kind of preferential access to the Chinese market.
Related tralac Blog: Preferential trade with Mauritius: market access for the UK, China, and state parties of the AfCFTA
Seek EAC consensus for a new Kenya, UK trade deal (Business Daily)
The decision by the British Parliament to delay the ratification of a new trade deal between Kenya and the UK is a wake-up call to negotiators to seek consensus among all parties likely to be affected by the pact. The House of Lords – Britain’s upper house of Parliament – has backed a proposal by its International Agreements Committee for a 21-day extension of the initial February 10 ratification deadline amid concern that the UK government had not addressed risks of the new pact with Kenya and its impact on regional cohesion within the East Africa Community (EAC).
Kenya tipped to reap big from Africa free trade pact (Nation)
Kenya is has been tipped to be among top beneficiaries of the Africa-wide free trade pact that came into force last month. The new deal is expected to provide access to what has been described as the biggest market in the world. According to the World Bank, Kenya will be among the big gainers of the pact with Ivory Coast and Zimbabwe bettering it. The World Bank cited the Kenya’s relatively developed industrial potential and human capital, which it says will give east Africa’s largest economy an edge from reduced trade
Kenya to raise debt ceiling again as headroom reduces (Business Daily)
Kenya will raise its debt ceiling of Sh9 trillion to accommodate gaps in its expenditure needs amid underperforming tax collections, the National Treasury has said, confirming reports that emerged from corridors of Parliament early January. The Treasury says in Medium Term Debt Management Strategy 2021 that it will be tabling changes to the Public Finance Management law for approval by legislators in the near future to raise the cap on debt, without disclosing the fresh limit it is looking at. This comes just over a year since the lawmakers raised the ceiling from Sh6 trillion in October 2019.
Related:
Treasury, IMF differ on economic growth status (Business Daily)
IMF, Kenya agree on new $2.4b funding to shore up a battered economy (The East African)
Munya orders sugar stocks audit amid dumping claims (Business Daily)
Kenya is assessing the available stocks of sugar to prevent flooding of the local market with imports. The audit is meant to address concerns by producers that importers are dumping sugar in local market, which has tanked their earnings. Cabinet Secretary Peter Munya, however downplayed the dumping claims, saying so far there was no evidence. “People are making noise because this sugar is coming from Uganda. If it were coming through the Port of Mombasa from other regional countries you would not hear these complaints,” said Mr Munya. Kenya has been at loggerheads with Uganda over sugar imports with local producers arguing that the commodity coming from the landlocked neighbour originates from third party countries.
Uganda’s economic recovery slows down as COVID-19 cases surge (CGTN Africa)
Uganda’s economic recovery has slowed down due to a surge in COVID-19 cases in the East African country, its central bank said. Bank of Uganda (BOU) said in a statement issued late on Monday that since December 2020, the recovery has lost momentum. According to the statement, high-frequency indicators of economic recovery show a growth of about 2.6 percent in the quarter to December 2020, down from a growth of 9.2 percent in the quarter to September 2020. The statement said the medium-term outlook continues to be highly conditional on the timelines of the world-wide vaccine rollout and the course of the virus and its new variants.
Zimbabwe borrowed 1.4 bln USD from Afreximbank between 2017 and 2019: finance minister (Xinhua)
The Reserve Bank of Zimbabwe (RBZ) has borrowed a total of 1.4 billion U.S. dollars from African Export-Import Bank (Afreximbank) between December 2017 and December 2019 with the government acting as guarantor, Finance and Economic Development Minister Mthuli Ncube has disclosed. In general notices issued through the Government Gazette on Saturday, Ncube said the first loan agreement of 600 million U.S. dollars in which the Government of Zimbabwe was guarantor was signed on Dec. 27, 2017 “for the purchase of strategic commodities”. Ncube did not however disclose the nature of the strategic commodities.
Zambian expert urges developing countries to emulate China’s production techniques (CGTN Africa)
Developing countries should emulate how China has managed to boost its production capacity which has boosted economic development, an expert said on Tuesday. Lubinda Haabazoka, president of the Economic Association of Zambia (EAZ), said China has made it possible for developing countries to produce for themselves because the Asian nation has been able to produce cheap production machinery. “Our engineers should be busy copying such machinery in Zambia,” he said in a write-up on the performance of the country’s economy. “The structure of Zambia’s economy is what we need to fix because it’s not sustainable for overall economic development and also maintaining strong economic fundamentals.”
High cost of rice concerns consumers, traders (The Point)
In 2018 President Barrow-led government announced a free trade for rice importers. This policy ensures free duties on rice traders. And in his campaign, he repeatedly promised that if he was elected to the Office of the President, a bag of rice would be sold at D700. In 2019 a 50kg bag of American rice was sold in The Gambia at D1150. In 2020 the price increased to D1250. While in late January 2021, the price jumped to D1300.
Egypt as a gateway for international trade (Al-Ahram)
Egypt has recently signed several bilateral and regional free-trade agreements as part of a comprehensive programme to boost exports and increase access to global markets. The Common Market for East and South Africa (COMESA) and Egypt-EU Partnership Association Agreement are two of the best known, granting access for Egyptian exports to African and EU markets with preferential treatment. However, the geographical coverage of the COMESA agreement is limited to East and South Africa and the departure of the UK from the EU in the so-called Brexit has created concerns in the business community about the future of Egypt-UK trade relations.
Mauritius: An international centre of excellence for investment (BizNews)
Mauritius has evolved from its humble beginnings as a mono-crop agricultural economy to become an attractive global investment destination and a hub for financial services excellence. Additional strategic diversification into tourism, manufacturing and real estate development and construction has supported the idyllic Indian Ocean island’s transformation into an economic powerhouse in relation to its size. The strength of the Mauritian economy helps to sustain the country’s investment-grade rating.
The Mauritian government remains committed to contributing towards the economic development of the African continent through trade. In this regard, Mauritius is party to an extensive network of Investment Promotion and Protection Agreements (IPPA) to facilitate cross-border investment flows and enable global businesses to operate efficiently.
WTO: We need to build capacity for international competitiveness – LCCI (The Sun)
The Lagos Chamber of Commerce and Industry (LCCI) has posited that for Nigeria to take advantage of opportunities offered by the World Trade Organisation (WTO) under the leadership of Dr. Ngozi Okonjo-Iweala, it was important to build capacity for international competitiveness of our products and services. The Chamber also emphasised the need to address trade facilitation issues, especially around port processes, ports infrastructures, international trade documentation, foreign exchange policies, trade policies and industrial policies.
CILT Ghana lists logistics, transport deficiencies as threats to AfCFTA (MyJoyOnline)
The Chartered Institute of Logistics and Transport (CILT) Ghana is urging the government to address all logistics and transport issues associated with the Africa Continental Free Trade Agreement, indicating that they can pose as threats to the trade pact.Even though the trade agreement has been implemented, President of the institute, Dr. Ebo Hammond says it can only yield the needed results if there exists a coherent supply chain management strategy and implementation plan. “Because of the Africa Trade Area that has been created, we believe that the entirety of Africa must be wired up in terms of road networks and communication.” he said in an interview on the MarketPlace on Joynews.
Buhari to Ambassadors: Strive to promote trade, foreign direct investment (Vanguard)
President Muhammadu Buhari has urged ambassadors-designate, consuls-general and charge’ d’ Affaires to continually project the strengths of Nigeria, showcase priorities of the government and uphold standards that will bring honour to the country. He further charged them to strive to promote trade, human capacity development, foreign direct investment and other areas of cooperation with countries at national and multilateral levels to support national growth and development.
Africa Must Produce to Benefit from WTO, Say Soludo, Rewane (THISDAY)
A former Governor of the Central Bank of Nigeria (CBN), Prof. Charles Soludo, Managing Director, Financial Derivatives Company Limited, Mr Birsmack Rewane, and former Nigerian ambassador to the United States, Mr. Joe Keshi, yesterday opined that Africa must boost its production level to gain from the World Trade Organisation (WTO). They argued that the WTO as a global body will deal with every country and continent according to what they bring to the table during trade negotiations, noting that if Nigeria would benefit from Dr. Ngozi Okonjo-Iweala’s headship of the organisation, it must align with the principles of the WTO.
Mozambique LNG project on track, Total confirms (Pumps Africa)
Total Chief Executive Officer, Patrick Pouyanne has said that a security agreement with the government of Mozambique has been signed. Speaking to the press in Paris, Pouyanne confirmed that the offshore and engineering works are in progress despite the suspension of the onshore works. The Mozambican government will now offer security in the zone where the liquefied natural gas (LNG) plants will be built. The Mozambique LNG project will be Africa’s biggest foreign direct investment of over US $ 25 billion financed by a consortium of global energy developers and operators.
News from Africa and Africa’s international trade relations
Building African economies back, better and stronger than before (Brookings Institution)
Africa, like other regions, is reeling from the pandemic’s economic and social consequences. The global economic downturn is undercutting every sector of Africa’s economy. Growth is expected to turn negative for the first time in almost 50 years, threatening the hard-won development gains of past decades. The International Monetary Fund (IMF) estimates that Africa will need $1.2 trillion over the next three years to recover from the epidemic.
New head of African Union faces daunting challenges from day one (FinalCall.com)
He’s been described as a “master strategist,” but can the incoming chair of the African Union beat the daunting challenges ahead? That is the difficult question facing Felix-Antoine Tshisekedi Tshilombo, president of the Democratic Republic (DRC) as he assumes the post just relinquished by South African leader Cyril Ramaphosa.
AU ECHO 2021 (African Union)
In this edition of the AU Echo in line with the African Union Theme of the Year 2021 on “Arts, Culture and Heritage”, we focus on the cultural and creative industries. This vast sector has great potential and it is telling that African Governments will step up their efforts in the year 2021 to support the CCIs. From continental treaties such as the Charter for African Cultural Renaissance and The African Union (AU) Plan of Action on Cultural and Creative Industries, as well as national development plans on CCIs, 2021 will be a year for rallying support behind a sector which by virtue of its linkages to social, cultural, economic and political issues is at the bedrock of the development of African society and the future envisaged in Africa’s Agenda 2063.
EALA passes key report on EAC political integration (East African Legislative Assembly)
The East African Legislative Assembly is rooting for political integration of the EAC. In so doing, the Assembly has reiterated the need to adhere to a triad-approach encompassing; a common foreign policy, peace and security and good governance. A report of the regional Assembly on “the progress made by the community towards achieving the EAC Confederation and the EAC Elections Observer Missions”, adopted on February 10th, 2021, echoed a robust constitutional making exercise which ensures a comprehensive consultative process with clear benchmarks for a model Political Confederation.
On the four pillars of integration, the House was informed that considerable progress has been registered in the first three (3) pillars of integration (Customs Union, Common Market and the Monetary Union). The Chairperson informed the House that on the fourth pillar (Political Federation), there appeared to be a diversion with the region.
Heavy agenda on the table for EAC heads of state (The East African)
Covid-19 challenges, Somalia’s application to the join the East African Community, ratification of the African Continental Free Trade Area agreement and consultations towards attaining a Political Federation will be top on the agenda at the Heads of State Summit scheduled for February 27. “We are planning to have a Council meeting just before the Summit. There are issues like the challenges posed by Covid-19 in the EAC, the working of the institutions and others, though it is too early to come up with all the issues,” said Prof Manasseh Nshuti, Rwanda’s Minister of State in charge of the EAC and also the chairperson of the Council of Ministers.
EU focuses on a greener and more sustainable economy for Angola (Sprout Wired)
The European Union ambassador in Angola said in an interview with LUSA that funds are currently underway for the coming years. To date, more than EUR 130 million has been allowed under the European Development Fund and they are now “working with the plan for the next six to seven years,” Seppen said. The partnership with Angola derives from the so-called “joint path”, the broad framework on which institutional relations between the European bloc and the African country are based, and which includes political, economic and social aspects.
At the initiative of the ECOWAS Department of Trade, Customs and Free Movement and the ECOWAS Regional Competition Authority (ERCA), a virtual meeting will be held on 17 February 2021 between the two institutions and the UEMOA Department of Regional Market and Cooperation. The Cooperation and Partnership Agreement calls on the two organisations to establish close cooperation and collaboration with a view to promoting the coordination and harmonisation of their respective development actions in order to accelerate convergence between ECOWAS and UEMOA, and strengthen regional integration in West Africa through the Joint Technical Secretariat. On the other hand, the Convergence Protocol sets out common mechanisms for the adoption of regional integration policies, programmes and regulations.
ECOWAS Holds Technical Working Group Meeting on Trade Information System
The first Technical Working Group meeting for the ECO-WAS Trade Information System (ECOTIS) held virtually on the 12th of February, 2021. The trade information system is meant among others, to readily make information on trade related issues available to the regional community citizens, investors and partners. It is also billed to close the existing gaps resulting from untimely, unreliable, inaccurate and cumbersome trade information processes, which have left business opportunities largely untapped and other markets unexplored.
Global economy
What the future holds for world trade, according to 8 global leaders (World Economic Forum)
Ngozi Okonjo-Iweala has made history – becoming the first woman and the first African ever to hold the post of director-general of the World Trade Organization. Her appointment comes after a year that has rocked international trade. In October, the WTO forecast a 9.2% decline in the volume of world merchandise trade for 2020, with a 7.2% rise in 2021. But it warned the estimates were “subject to an unusually high degree of uncertainty” as they depended on government measures to control the pandemic.
The international trade system was under the microscope at the World Economic Forum’s Davos Agenda week, with expert panellists giving their views on what it needs to do to adapt to future disruptions and how industry and government can work together to make it more sustainable and more resilient. These were some of the key quotes.
Least developed countries in 2021 – progress amidst the COVID-19 crisis? (United Nations)
2021 commemorates the 50th anniversary of the creation of the least developed country (LDC) category by the United Nations. Currently, there are 46 countries on the list established by the Committee for Development Policy (CDP). In February 2021, the CDP will undertake its triennial review of the list of LDCs to recommend countries for inclusion and graduation. Twenty-four international experts will review the latest available data for 15 indicators for all developing countries.
Making global value chains sustainable and enhancing the position of LDCs: A shared responsibility (Trade for Development News)
Company activities that incorporate products and services components spread throughout the world are called “value chains”. The social and climatic dimensions of value chains are important for making value chains sustainable, and joint responsibility and action by all stakeholders is required, acknowledging the interdependencies between all. Moreover, value chains require that developed countries and companies originating in them increase their share of responsibility instead of focusing only on their own goals, as is currently happening in the distribution of vaccines against COVID-19. It seems the developed world is not realizing that the unequal distribution of vaccines is not only unfair, but due to economic interdependencies, there will also be significant damage that puts decades of economic progress at risk for developed and least developed countries (LDCs) alike.
UN says lack of proper infrastructure planning is costly and hurts COVID-19 recovery, climate action, and SDGs (United Nations)
In a new publication, the UN is calling on countries to vastly overhaul the way governments build and maintain infrastructure – everything from water and sanitation systems to energy grids to transportation facilities – in order to reduce waste and costs, improve delivery of essential public services and ensure a sustainable future for all. The new publication, Managing Infrastructure Assets for Sustainable Development, issued by the UN Department of Economic and Social Affairs and the UN Capital Development Fund, with support from UNOPS, says sound infrastructure – and the systems that support it – are needed to achieve 92 percent of the Sustainable Development Goals.
Switzerland Climbs to Top of Global E-Commerce Index (UNCTAD)
Europe remains by far the most prepared region for e-commerce, according to UNCTAD’s Business-to-Consumer (B2C) E-commerce Index 2020, but wide gaps with countries with the lowest level of readiness need to be addressed by tackling weaknesses in those nations to spread the benefits of digital transformation to more people. For the first time, Switzerland leads the UNCTAD B2C E-commerce Index, just ahead of the Netherlands. The 10 developing countries with the highest scores are all from Asia and classified as high-income or upper-middle-income economies. At the other end of the spectrum, least developed countries occupy 18 of the bottom 20 positions.
Joint Statement Initiative on E-Commerce (JSI): Economic and Fiscal Implications for the South (UNCTAD)
Covid-19 pandemic has exposed the existing global digital divide and the urgent need to build digital infrastructure in the South. While many developing countries are in the process of designing national digital policies, a group of countries have initiated negotiations on digital rules under the Joint Statement Initiative (JSI) on E-Commerce. This paper identifies key digital rules being negotiated by the JSI members and examines their economic and fiscal implications for the developing countries which are members of the JSI.
Digital Economy Agreements: The New Phase in Economic Alliances (Modern Diplomacy)
This article explores systemic and market barriers preventing the wider use of BRICS national currencies in trade, including currency swaps mechanisms and reasons for BRICS exporters’ preference not to use national currencies. Design flaws are outlined in the New Development Banks’ Contingency Reserve Arrangement (CRA) in the context of de-dollarizing BRICS trade, namely its IMF linkage requirements and limited scope, symptomatic of a lack of trust between BRICS member states.
Accelerating Trade Digitalization Amid The Pandemic (Bangkok Post)
Paperless trade across borders has proven an effective way to mitigate trade disruptions since the onset of the crisis, enabling commerce to continue while limiting physical contact. Yet, despite the increasing acceptance of electronic documents across borders, implementation of cross-border paperless trade remains low, according to the United Nations Global Survey on Digital and Sustainable Trade Facilitation for Asia and the Pacific.
When it Comes to Services vs. Manufacturing, Words Matter (IMF Blog)
Efforts to revive national manufacturing sectors get a lot of airtime. After all, the sector propelled many East and South East Asian economies – the so-called “East Asia Miracle” – and was a gateway to the middle class for millions of workers. However, for all the obsession with manufacturing, economists for their part seem to be more preoccupied with services. To confirm this, we combed through thousands of IMF reports on countries’ economies from 1978 to 2019. Using 113 distinct terms related to growth theory and policy – ranging from “infrastructure” to “liberalization” – we computed the relative weights of each term across countries and years.
Addressing financial challenges of sustainable shipping (International Maritime Organization)
Work to address the financial challenges of shipping’s transition to a more sustainable future has continued this week with a meeting of the FIN-SMART Roundtable Workstream 1. The Roundtable provides a platform for regular dialogue among key maritime stakeholders to support accelerating financial flows, particularly in developing countries, for the decarbonization of the maritime sector. This is carried out in line with country priorities and the goals of the IMO Initial Strategy on the reduction of GHG emissions from ships.
India hopes that new WTO DG will be guided by Mahatma Gandhi’s consideration for the poor (Business Line)
India has expressed hope that WTO’s new Director General Ngozi Okonjo-Iweala would remember Mahatma Gandhi’s advice on considering the fate of the poorest while dealing with a tricky situation when she makes difficult choices at the multilateral trade forum. Views of the new DG on continuing with the special & differential treatment (S&DT) for developing countries may have a critical bearing on the on-going discussions, some trade experts say. The fact that Okonjo-Iweala, is also a development economist who served at the World Bank for several years, has also raised hopes of a positive intervention on development matters. The next few days are likely to be critical for the future of the India-South Africa proposal on temporary waiver of TRIPS provision as the Members may take a call on whether negotiations on the matter should continue some more or be given up as an agreement remains elusive.
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Country focus
20 borders fully reopened, 30 remain closed (SAnews)
South Africa’s 20 land borders, which have only been partially operational for the past month, will now be fully open from today, Cooperative Governance and Traditional Affairs (COGTA) Minister, Dr Nkosazana Dlamini Zuma, has announced. However, the 30 land borders which were closed, will remain so. The closure of the land border posts was introduced last month as the country was seized by a rise in COVID-19 infections. The list of the borders scheduled to reopen can be accessed on: http://www.dha.gov.za/index.php/corona-virus-information
There’s a big problem with South Africa’s plans for digital tax (BusinessTech)
As the economy sheds jobs and business closures mount because of the Covid-19 pandemic, South Africa has its work cut out in attempting to expand the tax base. This would be difficult, but not impossible to achieve, says Robyn Berger, executive of Tax at law firm Bowmans – but government should step lightly to avoid spurring any trade wars. “Taxing the digital economy and the informal economy could potentially bring many new taxpayers into the net, although both routes could pose considerable challenges,” she said. Of the two, taxing the digital economy would likely face the biggest hurdles – particularly if SARS follows through on its proposal to unilaterally tax the gross revenues that digital companies make in South Africa, Berger said.
60-Year-Old Rand Trades Far Outside South Africa’s Borders (Bloomberg)
For a currency that’s lost more than half of its value against the dollar in the past decade, South Africa’s rand may be an unlikely choice when receiving payment for goods and services abroad. But the currency, which marks its 60th anniversary this weekend, is accepted in informal and formal trade across most of southern Africa. It is legal tender in a common monetary area that includes Lesotho, Namibia and Eswatini -- all of which peg their currencies to the rand -- and it’s used in at least five other countries in the region.
Zambia’s efforts to enhance consumption of local products get heightened attention (CGTN Africa)
Zambia’s efforts to promote the consumption of local products is now getting the maximum campaign and recognition across the country. Various stakeholders are now appreciating the fact the promotion and consumption of local products are good for the growth of the economy.
Recently, President Edgar Lungu expressed happiness that more local products are being sold in shops and that more people are consuming the products. “This is patriotism. It is also a clear indication that our ‘Proudly Zambian Campaign’ has taken root,” he said when he addressed the National Assembly on the progress made on the application of the national values and principles.
Let’s focus on import substitution: Minister (The Herald)
There is need to implement the import substitution strategy for cooking oil if the country is to cut foreign currency leakages, achieve economic growth and employment creation, Industry and Commerce Minister Dr Sekai Nzenza has said. The strategy will also help the country meet its national demand for cooking oil of 150 million litres per year. Dr Nzenza said this in Harare yesterday during a tour of Pure Oil Industries to assess the firm’s operations during the Covid-19 lockdown period. Pure Oil Industries manufactures the ZimGold cooking oil brand, margarine, baker’s fat and washing soap, among others. Minister Nzenza said importing crude de-gummed oil is a major drain on foreign currency and it perpetuates low capacity utilisation of the country’s crushing capacity.
Expert Seeks Improved Ease of Doing Business (THISDAYLIVE)
As part of efforts to strengthen ease of doing business in the country, an expert, Olugbenga Ojo, has inaugurated a platform – Eximtradeoptions – to boost trade in Africa and across the world. Announcing the platform during a virtual event held recently, Ojo, who was an alumnus of the Harvard Law School said unveiling of the new platform was necessary to provide an enabling environment for Nigerian business community, who are keen about exploring foreign markets.
“The trade platform which is structured to manage the end to end of the supply chain for both importers and exporters from any part of the world with a protection of the legal framework and insurance against losses, provides array opportunities, with four payment and service packages to accommodate every business interest in the area of international trading,” he stated.
COVID-19: Obasanjo cautions Africa on agric-business, manufacturing sectors - Daily Post Nigeria
Former governor of Imo State and Senator representing Imo West Senatorial district, Rochas Okorocha has urged the Federal Government to take advantage of huge potentials inherent in the entertainment industry. Speaking with journalists in Abuja on his bill, “Establishment of University of Creative Technology, Orlu, Imo State”, which is before the Senate for debate, he said the time for government to diversify the economy was now. He said the country was fast growing in population with the revenues depleting due to forces that were natural, stating that diversification would force other developed economies to bring in investments that will make Nigeria one of the best in the world.
Ugandan govt boosts participation of local firms in EACOP (Indpendent)
Uganda has started implementing a Shs 1.85bn project seeking to build technical skills of local micro, small and medium enterprises eyeing businesses during the construction phase of the East African Crude Oil Pipeline (EACOP). Funded by the African Development Bank (AfDB), the project intends to support Ugandan and Tanzanian small businesses interested in tapping business opportunities along the oil pipeline, enabling them to access new market opportunities, and building linkages with larger, national, regional and international companies. The construction of the EACOP is expected to start anytime soon once the Final Investment Decision is reached. The East African nation hopes to start oil production by 2024.
Uganda maintains 10th spot in ABSA’s Africa Financial Markets Index (Independent)
Uganda has for the fourth consecutive year maintained the 10th position in the Absa Africa Financial Market Index 2020, signalling a stagnation in performance. The report, released by Absa Bank shows that Uganda scored 52 out of 100 in 2019/20 compared with 50 out of 100 scored in 2017/18, but still lagged behind a number of countries in Eastern and Southern Africa. Ridle Markhur, a senior economist at Absa Group, said Uganda’s growth prospects in line with the AFMI will now largely depend on how the government continues to manage the spread of COVID-19, performance of the services sector, inflation, exchange rate movements and performance of imports and exports.
Kenya, Uganda trade sugar and juice in new deal to settle tax dispute (The East African)
Kenya and Uganda have agreed in principal on a bilateral agreement that could put an end to the persistent trade dispute in sugar, fruit juices and pharmaceuticals between the two neighbouring countries. The EastAfrican has learnt that under the agreement, Kenya has agreed to a demand by Ugandan authorities to allow more Ugandan sugar in the country in exchange for relaxation of duty on Kenyan exports of fruit juices and verification fees on pharmaceuticals to Uganda.
“On sugar we have sorted out the issues they (Uganda) notified us about and most likely there will be a government delegation going to Uganda to check a few things. We have been invited and we are now constituting ourselves to go. This was a mutual invitation,” Mr Weru told The EastAfrican in an interview last week.
News from Africa and Africa’s international trade relations
Africa’s Continental Free Trade Area Irons Out Movement Logistics (Africanews)
With the launch of the African Continental Free Trade Area, the 3 regional blocs are accelerating the process of regional integration The council of ministers of the economic blocs Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) discussed — among other topics, the draft guidelines of the three-part mechanism on safe movement in the region. An important conversation in light of the effects of the COVID-19 pandemic — in addition to the approach to accelerating and implementing the Tripartite Free Trade Area.
Will The AfCFTA Be The Heartbeat Of The Global Economy? (Forbes Africa)
At midnight on 31 January 2020, the withdrawal of the United Kingdom (UK) from the European Union (EU) officially came into force. The decision – Brexit – made by 52% of the British population resulted in the EU losing its second-largest economy and the Union Jack isolating itself in terms of trade, effectively quarantining in its own home. But for Africa, the move holds opportunities. Untapped export potential to the UK is large as is untapped UK export to Africa; the latter is worth more than $8 billion.
Yet, it is the new trade agreement implemented in Africa where interest should really be directed; 54 of the 55 African Union states on the continent have signed up for the African Continental Free Trade Area agreement (AfCFTA) which came into effect on the first day of 2021. Eritrea is the only country that chose to sit out – and there are various explanations as to why not unconnected to power and politics.
Technology and supermarket chains can help strengthen southern Africa’s food systems (The Conversation Africa)
Agriculture and agro-processing value chains have been under pressure during the COVID-19 pandemic. This has been particularly marked where they remain underdeveloped, as is the case in South Africa and the rest of the region. Regulatory responses to the pandemic disrupted agriculture and agro-processing activities. For example, agro-processing systems have been slowed down by rigorous border checks. Some countries, including South Africa, closed land border posts. Curfews and social distancing protocols also caused labour shortages, which in turn affected productivity.
The development of stronger and more localised agriculture and agro-processing systems is crucial for food security, fostering rapid industrialisation and economic diversification, and job creation beyond the crisis. New technologies and supermarket supplier development programmes can help overcome weaknesses. They can be used to promote smallholder farmers and SME agro-processors in the region.
Reprieve for regional importers as court stops Kenya’s SGR rule (The East African)
Importers using the port of Mombasa are now free to use road transport to haul cargo to their respective destinations, after a five-judge bench quashed a government directive requiring all cargo imported through the port be transported to Nairobi and the hinterland exclusively by the Standard Gauge Railway (SGR).Kenya Transporters Association’s Mercy Ireri said all transporters from any country in East Africa using the port are now free to choose mode of transporting cargo. “The ruling applies to all transporters irrespective of their country of origin. This ruling is a big relief to Kenyan and Uganda transporters who were mostly affected because they are regular transporters,” said Ms Ireri.
Health sector investments must be on top agenda at EAC summit (The Star)
The East African Community ordinary Heads of State meeting has been scheduled for February 27. EAC secretary-general Liberat Mfumukeko said apart from the appointment of his successor, infrastructure development for 2021-24 is top on the agenda for the Summit.
The chairperson of the Council of Ministers, Nshuti Manasseh, added that the EAC partner states are looking into ways of dealing with the effects of Covid-19 on the region’s economy. This comes at a time when countries across the world are rolling out Covid-19 vaccine campaigns with renewed hope of returning to normalcy. While governments in the region have made efforts to strengthen various aspects of the health system to cope with the pandemic, the significant impact of the virus on the health systems is evident.
British MPs delay nod of Kenya, UK trade deal over EAC disputes (Business Daily)
The British Parliament is seeking more time to ratify a new trade deal between Kenya and the UK, exposing tensions over the move between Nairobi and its East Africa Community (EAC) partners. The House of Lords -- Britain’s upper house of Parliament -- backed a proposal by its International Agreements Committee for a 21-day extension of the initial February 10 ratification deadline amid concern that the UK government had not addressed risks of the new pact with Kenya and its impact on regional cohesion in East Africa. The delay proposal is also attributed to the fact that the UK government has not explained what other options it considered for ensuring continuity of trading arrangements with Kenya and why it chose not to replicate the EU’s Market Access Regulation (MAR) that guided economic partnerships between the two sides prior to Britain formally ditching Brussels in December 2020.
SADC COVID-19 Pandemic – An Opportunity to Strengthen Governance (GGA)
To many in the research community, Africa remains an anomaly, as it has experienced less of the coronavirus burden than many other regions in the world. According to the Africa Centre for Disease Control (AU CDC), as of 27 January 2021, at least 40 countries are experiencing a second wave of the pandemic, including all countries in the SADC region. As of 2 February 2021, the confirmed number of Covid-19 cases from 55 African countries reached 3,582,328. On the continent, South Africa is the outlier, with the highest percentage of recorded active cases of the coronavirus. Based on the available data, South Africa is the epicentre of the pandemic on the continent, and as such the South African Development Community (SADC) finds itself, by extension, in the same situation.
While the COVID-19 pandemic has hampered both social and economic activities in SADC countries to varying degrees, it has also had a detrimental impact on the governance capacity in the region. Since the end of 2020 and the start of 2021, SADC member states have lost ten cabinet Ministers from four countries who succumbed to the coronavirus.
Here’s why China’s trade deal with Mauritius matters (WEF)
2021 marks the start of two important trade policy developments in Africa. Firstly, the African Continental Free Trade Agreement (AfCFTA) has been signed by 54 of 55 African Union member states and ratified by 31 so far. The agreement unites an estimated $3 trillion market and is expected to foster intra-African trade over the coming decades. Second, New Year’s Day marked a major step in China-Africa relations in the form of the China-Mauritius bilateral free-trade agreement (FTA), a first FTA between China and an African state. In September Senegal will host the Forum on China Africa Cooperation (FOCAC), a triennial head of state gathering of Africa and China’s leaders. Since China is not only Africa’s largest external trade partner, but also has a pattern of approaching regional trade policies elsewhere via a “small state first” approach, it is timely to reflect on the China-Mauritius FTA in a China-Africa context.
Related tralac Blog: Preferential trade with Mauritius: market access for the UK, China, and state parties of the AfCFTA
UAE and Africa non-oil trade hits $40.7b in first nine months of 2020 (Gulf Today)
The value of non-oil trade between the UAE and Africa totalled $40.7 billion in the first nine months of 2020, compared to $36.9 billion in the same period of 2019, underscoring the growing trade between the UAE and African countries despite the coronavirus (COVID-19) pandemic. In an interview with the Emirates News Agency (WAM), on the occasion of the launch of “Dubai Week in Africa-Kenya” forum on Monday, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the value of non-oil trade between the UAE and Africa amounted to $50 billion in 2019, compared to $33 billion in 2015. He said that the commercial exchange between the UAE and Kenya has witnessed significant growth from 2015 to 2019, amounting to nearly $2.7 billion, compared to $1.5 billion in 2015.
20th International Economic Forum on Africa - 22 February 2021 - OECD
The global economic recession triggered by COVID-19 is hitting African countries hard. In 2020, 41 African economies experienced a decline in their gross domestic product (GDP). Although situations vary across the continent, this crisis has made clear that post-COVID strategies need to tackle two major obstacles to Africa’s long-term sustainable growth: dependence on external markets, and the incapacity of the formal economic sectors to create enough quality jobs. The African Continental Free Trade Area (AfCFTA), now open for business, provides a platform to accelerate productive transformation, create regional value chains and spur continental integration. Its effective implementation, however, depends on African economies’ capacity to create fiscal space and boost private investment in quality infrastructure and sustainable projects. What are the key priorities for implementing the AfCFTA and accelerating Africa’s productive transformation? How can African governments strengthen their borrowing capacity and improve their debt management? How can bilateral and multilateral co-operation facilitate the process? The 2021 edition of the Forum will gather all key actors to share their views and solutions for action.
Global economy
History is made: Ngozi Okonjo-Iweala chosen as Director-General (WTO)
When she takes office on 1 March, Dr Okonjo-Iweala will become the first woman and the first African to be chosen as Director-General. Her term, renewable, will expire on 31 August 2025. “This is a very significant moment for the WTO. On behalf of the General Council, I extend our warmest congratulations to Dr Ngozi Okonjo-Iweala on her appointment as the WTO’s next Director-General and formally welcome her to this General Council meeting,” said General Council Chair David Walker of New Zealand who, together with co-facilitators Amb. Dacio Castillo (Honduras) and Amb. Harald Aspelund (Iceland) led the nine-month DG selection process.
“I am honoured to have been selected by WTO members as WTO Director-General,” said Dr Okonjo-Iweala. “A strong WTO is vital if we are to recover fully and rapidly from the devastation wrought by the COVID-19 pandemic. I look forward to working with members to shape and implement the policy responses we need to get the global economy going again. Our organization faces a great many challenges but working together we can collectively make the WTO stronger, more agile and better adapted to the realities of today.”
WTO: Our ambition is to operate on world stage, says trade minister (TheCable)
Niyi Adebayo, minister of industry, trade and investment, says Nigeria’s trade agenda is to operate on the world stage, noting that the country has outgrown Africa.
Adebayo said this on Monday during an interview on Arise TV. Speaking on the emergence of Ngozi Okonjo-Iweala as the new director-general of the WTO, the minister thanked President Muhammadu Buhari for insisting on her candidacy. The WTO members, on Monday took the decision to appoint Okonjo-Iweala as the director-general of the WTO, at a special meeting of the General Council, following a selection process that initially included eight candidates. “It is a thing of pride for us as Nigerians that a Nigerian, not only as a Nigeria but for the first time in history of the WTO, an African is occupying that position and not only is it in Africa for the first time, it’s also the first time a woman will occupy that position,” Adebayo said.
UNCTAD Report Highlights Achievements in Mobilizing Domestic Revenues Through Trade Facilitation (IISD)
The UN Conference on Trade and Development (UNCTAD) released a report on the Automated System for Customs Data (ASYCUDA) Programme, which supports countries in mobilizing domestic revenues through implementing trade facilitation policies while simultaneously promoting efficient procedures, regional integration, capacity building, and safeguarding of natural resources. The report shares achievements under the Programme in 25 user countries and territories. The report titled, ‘ASYCUDA Partnerships for Sustainable Development: Compendium 2020,’ presents case studies on a number of topics, ranging from system deployment basic practices to regional integration. Cases from around the world describe challenges, UNCTAD and ASYCUDA’s assistance, solutions developed following collaboration between the ASYCUDA Programme and trade stakeholders, and results.
Major airlines join forces with UNICEF to support ‘monumental’ COVID-19 vaccine roll-out plan (UN News)
The world’s leading airlines are backing a landmark UN Children’s Fund (UNICEF) initiative to prioritize delivery of COVID-19 vaccines, essential medicines and other critical supplies across the globe.
The global problems Biden can’t avoid (CNN)
In his first days in office, President Joe Biden has prioritized immediate actions in America and for Americans. This is what he promised. But he has also committed to reestablishing international US leadership, with "humility and confidence" as Secretary of State Antony Blinken put it, and started with executive orders on issues like refugees and the pandemic. These measures lay the foundation for urgent action needed now more than ever in the world's proliferating humanitarian crises, mired in the triple threat of untended conflict, unmitigated climate change and the scourge of Covid-19.
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Country focus
20 land borders will reopen on Monday, says Motsoaledi (Times LIVE)
Twenty land borders will reopen on Monday, the cabinet decided on Saturday. The border crossings between SA and Botswana, Lesotho, Eswatini, Namibia, Mozambique and Zimbabwe were closed on January 11 in an attempt to control the spread of Covid-19. A statement from the home affairs department said minister Aaron Motsoaledi, deputy minister Njabulo Nzuza and director-general Tommy Makhode will visit the four busiest border posts for the reopening on Monday.
Doctors Fear Covid Variant Outbreak If Zim Opens Border With SA (New Zimbabwe)
Zimbabwe Doctors for Human Rights (ZDHR) have advised the government not to open land borders with SA when it reviews the current lockdown. The end of the extended lockdown coincides with SA’s resolution to open its borders on February 15. Home affairs minister Kazembe Kazembe said a decision to open the country’s ports of entry would be made after consultations with the national Covid-19 task force. Currently only airports are open for civilian travel. Meanwhile, as part of measures to reduce the spread of the virus, the Zimbabwe Human Rights NGO Forum delivered a petition to President Emmerson Mnangagwa to consider presidential pardons as a tool to decongest prisons.
Manufacturing and mining data show sputtering signs of life (Daily Maverick)
December manufacturing and mining data released on Thursday by Statistics South Africa showed signs of a sputtering return to life for both sectors at the end of 2020, but the picture is still pretty dismal. Mining production inched up by 0.1% in December of 2020 compared with the same month the previous year, and 0.5% compared on a monthly basis. By contrast, mineral sales rose by almost 24% year on year in December. Manufacturing also perked up a bit in December, rising 1.8% in the month compared to December of 2019, but the outlook for the sector remains dire. “Furthermore, uncertainty surrounding the government’s vaccine roll-out programme could lead to a sustained period of muted domestic demand,” NKC African Economics said in a commentary note. Both sectors are labour intensive, are crucial for exports, and remain key to unlocking future investment. Their slide needs to be arrested and fast.
Biden Faces South African Push to Extend Trade Concessions (Bloomberg)
South Africa is apprehensive about striking a new trade deal with the U.S. and would rather maintain existing relations with the world’s largest economy, the nation’s top trade official said. South Africa is currently party to the so-called Generalized System of Preferences and the African Growth and Opportunity Act, or AGOA, which together allow most sub-Saharan African countries duty-free access to the American market for almost 7,000 products. AGOA is due to expire in 2025, while Richard Neal, the chairman of the House of Representatives’ Ways & Means Committee, has called for the GSP – the U.S.’s oldest and largest trade-preference program for the world’s poorest economies – to be updated.
COVID-19: From relief to recovery (SAnews)
President Cyril Ramaphosa says South Africa’s collective efforts in the wake of the COVID-19 pandemic must now shift from relief measures to deliberate action to aid economic recovery. This, the President said in his weekly newsletter on Monday, will require cooperation and contribution from every citizen. President Ramaphosa said the country was able to provide a lifeline to its citizens due to the already-existing social security safety net in the form of the South African Social Security Agency (Sassa) and the Unemployment Insurance Fund (UIF). The two bodies were respectively able to provide relief to vulnerable citizens and those whose livelihoods were compromised by the pandemic and resultant lockdown.
South Africa: Taxing the rich has a wealth of potential benefits (New Frame)
Raising the taxes paid by South Africa’s estimated 350 000 wealthiest individuals could deliver much-needed additional revenue to the state’s emptying coffers. The Covid-19 pandemic has shown starkly how unequal the world is, and nowhere is that more evident than in the most unequal country in the world. In South Africa, just 1% of the population owns 55% of the wealth. Going beyond the 1%, South Africa had four US dollar billionaires in 2020 who owned 18% of all the wealth in the country, according to Forbes magazine.
SGR cargo services surpass targets, records best performance in January (KBC)
Kenya Railways Corporation (KRC) has continued to build concerted efforts in enhancing cargo evacuations from the Port of Mombasa. The month of January recorded the best performance since the SGR Madaraka freight inception, with 241 trains run from Mombasa and delivering 24,256 TEUs to both Nairobi and Naivasha ICDs. According to KRC Managing Director Mr Philip Mainga, this remarkable performance was achieved due to the revival of majority of wagons earlier under maintenance repairs and internal conversion of additional conventional cargo wagons to load containerized cargo.
Flower farmers cry foul ahead of Valentine (KBC)
The Kenya Flower Council (KFC) has decried high taxes, lack of flights and poor weather patterns in Europe as the main challenges currently facing flower farmers ahead of Valentine’s day this Sunday. While projecting that the sector which was hardest hit by Covid-19 would recover by the end of the year, the council pointed an accusing finger at the State for unfair tax regimes. This came as the council noted that they were currently exporting only 75 per cent of their produce due to lack of enough flights and limited space.
Kenya: Farmers, households take heat from oil price surge (Business Daily)
Farmers, poor households and transporters are set to continue feeling the heat of rebounding global oil prices, with the cost of diesel and kerosene increasing considerably for the second successive month. The Energy and Petroleum Regulatory Authority (Epra) Sunday increased the retail price of diesel and kerosene by Sh5.51 and Sh5.32 per litre, respectively – citing higher import prices. Kenya’s economy also largely relies on diesel for transportation and power generation, with the price increase expected to impact on the cost of living for households.
Mps want Kenya called to order for refusing Uganda’s dairy products (KFM)
Members of parliament have expressed disappointment over continued blocking of Ugandan products by regional organizations. This was during last evening’s plenary session as the minister of trade Amelia Kyambadde issued a statement “Continued Prohibition of Ugandan Dairy Products to Access the Kenyan Market. Members of parliament including John Baptist Nambeshe, Gilbert Oulanya and Jackline Amongin said it was frustrating for Ugandans to be the ones losing out yet traders from other EAC member countries are freely trading in Uganda.
Rwandan govt emphasises Covid-19 negative results for cross-border travellers (The New Times)
The Ministry of Infrastructure on Thursday, February 11, issued a public notice putting yet more emphasis on the need for all people intending to travel using the country’s land borders to first test and show a negative Covid-19 test in a bid to prevent the spread of the virus. The notice is in line with Government’s measures to prevent the spread of Coronavirus and having observed that some cross border truck drivers and other truck crew members start their journeys before undergoing requisite testing thus the risk of spreading Covid-19 along the way to the borders. Others take the tests but set off before they can get the results.
Rwanda begins vaccinating vulnerable against Covid-19 (The East African)
Rwanda has started its first phase of vaccination against Covid-19 with the limited 1,000 doses of the Moderna vaccine administered to high-risk groups, including frontline workers. The first and primary beneficiaries of the Covid-19 jab will get it for free. The Ministry of Health says the limited initial doses were ”acquired through international partnership in limited quantities” though the country anticipates receiving additional doses in the coming weeks to allow it to expand the vaccination exercise.
BUA’s 200,000bpd Refinery Project Will Meet FG’s Economic Diversification Agenda-Rabiu (Leadership)
Founder and executive chairman, BUA Group, Abdul Samad Rabiu has said the proposed 200,000 barrels per day BUA refining and petrochemical plant in Akwa Ibom will meet the federal government’s economic diversification agenda in the long run. Rabiu disclosed this at a forum in Lagos recently. According to him, as new fuel standards continue to evolve in line with the climate crisis, a project like BUA refinery will have a monumental positive impact on the nation’s economy.
Rwanda lifts duty on luxury cars in move to woo tourists (The East African)
Rwanda will forgo millions of dollars in tax exemptions from importers of expensive vehicles as it attracts high-end tourists into the country. It is the latest attempt to boost tourism, which is struggling to recover from the second wave of Covid-19 infections that have led to new travel restrictions by some countries. In a letter dated January 22, 2021, the Ministry of Finance instructed the Rwanda Revenue Authority to exempt excise duty, value added tax and withholding tax on imported vehicles valued at $60,000 and above. The rationale behind the exemptions, as explained in the letter, aims at facilitating the importation of expensive cars to promote high-end tourism, meetings incentives conferences and exhibitions (MICE), and foreign investment.
Customs chief canvasses mechanisms for AfCFTA success (The Sun Nigeria)
The Nigeria Customs Service (NCS) is canvassing for mechanisms to check the inflow of products of non-participating countries into Africa through the African Continental Free Trade Area (AfCFTA) agreement. The Comptroller-General of Customs, Col Hameed Ali (retd) said that implementation of AfCFTA must abide by the rules of origin policy, to forestall the challenges that might arise in its operations. He, however, disclosed that customs had yet to receive the instruments that would enable it to facilitate the AfCFTA goods movements.
Expert Seeks Improved Ease of Doing Business (THISDAYLIVE)
As part of efforts to strengthen ease of doing business in the country, an expert, Olugbenga Ojo, has inaugurated a platform – Eximtradeoptions – to boost trade in Africa and across the world. Announcing the platform during a virtual event held recently, Ojo, who was an alumnus of the Harvard Law School said unveiling of the new platform was necessary to provide an enabling environment for Nigerian business community, who are keen about exploring foreign markets. “The trade platform which is structured to manage the end to end of the supply chain for both importers and exporters from any part of the world with a protection of the legal framework and insurance against losses, provides array opportunities, with four payment and service packages to accommodate every business interest in the area of international trading,” he stated.
Former NACCIMA boss urges FG to develop export products (WorldStage)
Dr John Isemede, an international export professional, has urged the Federal Government to identify and present made-in-Nigeria products with export potential to maximise the benefits of the Africa Continental Free Trade Area (AfCFTA). He called for a National Trade Fair dedicated to only Made-in-Nigeria products and services through which the Federal Government could identify products, develop and market them through the AfCFTA platform. The former D-G said the country should take advantage of its number one position in the production of cashew nuts, cassava, yam, beans among others in the AfCFTA.
Rice, flour, sugar, cement top free trade exemption list (The Guardian Nigeria)
Despite Nigeria’s comparative advantage and self-sufficiency status in the production of certain products, cement, flour, rice, sugar and 180 other products would not be liberalised under the African Continental Free Trade Area (AfCFTA), even though doing otherwise would help the country tame its rising inflation, The Guardian learnt. Sources familiar with the tariff lines in the schedule submitted to ECOWAS by Nigeria for negotiation told The Guardian that, while 131 products are already on the import prohibition list, the remaining products on the exclusive list were picked based on national priorities, trade volume, priority, food security and competitive advantage.
Nigeria’s cryptocurrency crackdown causes confusion (DW)
Cryptocurrencies eliminate the need for banks and other financial intermediaries in managing exchanges of currency and assets. Despite the technology being decentralized – with no government, company or person controlling it – the Central Bank of Nigeria (CBN) is cracking down on the trade of cryptocurrencies. Last Friday, the CBN instructed commercial banks and other financial institutions to close accounts involved in transactions with cryptocurrency exchanges. Before the ban was introduced, Enogieru Osasenaga invested 100,000 naira (€216, $263) in Bitcoin, the world’s first decentralized digital currency. A week later, its value had doubled.
News from Africa and Africa’s international trade relations
Wamkele Mene: ‘AfCFTA is going to be difficult but we’ve got to do it’ (The Africa Report)
Africa’s over-reliance on exporting primary commodities is detrimental to its economic development and undermines its ambition for greater integration. As Mene puts it, this “keeps Africa trapped in [a] colonial model of economic trajectory”. But, in dealing with trade and economy ministers from all over the continent, he says he sees a lot of goodwill. “Everybody wants [to see] Africa industrialising. Everybody wants to see a digital economy on the continent. Everybody wants to see the continent leapfrogging into the Fourth Industrial Revolution,” Mene says.
E-commerce in preferential trade agreements: implications for African firms and the AfCFTA (ODI)
At continent level, the African Continental Free Trade Area (AfCFTA) negotiations are scheduled to include a protocol on e-commerce under Phase III, presenting a unique opportunity for African countries to collectively establish common positions on e-commerce, harmonise digital economy regulations and leverage the benefits of e-commerce. In this paper, we examine developments in e-commerce negotiations, their implications for African businesses and the role of the AfCFTA.
EABC calls for improvement of infrastructure at border posts to fast track cargo movement (East African Business Council)
The East African Business Council (EABC) is calling upon East Africa Partner States to prioritize the improvement of infrastructure at Border Posts, to facilitate seamless flow of goods and movement of persons, as cross border business rebounds. Poor infrastructure continues to be a huge trade barrier in East Africa and a major constraint to regional integration and development. EABC also urged revenue authorities to install cargo scanners at border points to facilitate trade.
Feeding Africa’s fast-growing cities (Farmer’s Weekly)
Demographic projections have forecast that in the coming decades, Africa’s rate of urbanisation will be the highest in the world. As a result, Africa’s cities and food markets offer the largest and fastest-growing market opportunity available to the continent’s 60 million farms. In their efforts to supply growing urban food markets, Africa’s farmers, agro-industries and policymakers face many challenges. In the face of mounting food imports from overseas, African farmers, traders and wholesalers have to find ways to drive down the domestic costs of production, storage and distribution in order to remain competitive with external suppliers in Brazil, North America, Europe and Asia.
Africa in the news: African debt, rising food prices, and vaccine updates
On Thursday, February 11, the United Nations Economic Commission for Africa (UNECA) predicted that the economic damage inflicted by COVID-19 would influence more African nations to pursue debt relief through a new G-20 common framework that leverages the IMF to negotiate debt reduction from private and public creditors, thereby assisting countries in alleviating the economic and financial pressures of the pandemic.
Together with heavy reliance on fossil fuels for government revenue, diminished global oil demand and prices, and unsustainable debt burdens pre-COVID, UNECA emphasized that the strain on government revenues in Africa makes some countries, such as Angola and the Republic of the Congo, particularly vulnerable to pandemic-imposed economic distress.
Notably, not all experts agree on the extent of restructuring’s adverse impact on financing sovereign debt: Vera Songwe, executive director of UNECA and a nonresident senior fellow with Brookings Africa Growth Initiative, does not see the rise in African eurobond interest rates in response to participation in G-20 debt relief as a hindrance to their market access to sovereign debt issuance.
Next Africa: AstraZeneca’s Vaccine Findings Set Back a Continent (Bloomberg)
This week AstraZeneca said its Covid-19 vaccine provides little protection against mild forms of the disease caused by a variant of the virus first identified in South Africa. While China and Russia are pledging donations of their own vaccines to African countries, there is as yet no data on their performance against the variant.
The climate and trade nexus in Africa (ODI)
This report analyses the impacts that changes in trade structures, economic growth and technology have had on the greenhouse gas emissions (GhG) generated in the continent. It sets out climate change adaptation and mitigation strategies in the context of Africa’s economic transformation and development. In this sense, it aims to identify the intersection between trade and climate policies and critical outcomes: the low-carbon and resilient economic development of the continent.
Don’t forget local authorities in EU-Africa relations (EURACTIV)
As the EU and African Union seek to make up for the time lost in 2020 by accelerating talks on a new ‘strategic partnership’ covering political and economic cooperation, one of the risks is that the high-level political talks take place in a vacuum, with little regard for local communities. African civil society activists already complain that they have been left out of the consultation process thus far. Cooperation between the European Commission and local authorities across Africa is set to increase under the EU’s new seven-year budget framework which, for the first time, will see local authorities participate in the process as public actors alongside the central state to define the priorities of European cooperation projects and programs.
China-Africa economic, trade cooperation forges ahead (The Citizen)
As Africa’s major trading partner, China is among countries whose trade with Africa experienced the lowest decrease in absolute terms. In this sense, China has adopted positive measures and taken the initiative to expand its imports from Africa. China attaches great importance to the challenges caused by Covid-19 to African countries and is actively implementing the G20 Debt Service Suspension Initiative (DSSI). At present, China ranks first among G20 member countries who have carried out DSSI by suspending $1353 million worth of debt service payments from 23 countries, including $817 million from 15 African countries.
Global economy
On 10 February 2021, the WCO Secretary General Dr. Kunio Mikuriya met with H.E Dr. Isaac W. Nyenabo II, the Ambassador of the Republic of Liberia in Brussels at the Headquarters of the WCO, following the deposit on 14 December 2020 of the country’s act of ratification of the International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention – RKC). During his meeting with Ambassador Dr. Isaac W. Nyenabo II, Secretary General Mikuriya highlighted that, in support of Liberia and the African Continental Free Trade Agreement (AfCFTA), the RKC is a powerful instrument and if correctly implemented can contribute to boost trade, improve revenue collection, safety, and security controls.
‘Vaccine apartheid’ among trade hurdles awaiting WTO new boss (The East African)
The World Trade Organisation (WTO) will meet in the coming days to conclude the appointment of its new director-general, signalling an end to the push-and-pull between the US and other member states. But the imminent designation of Nigeria’s Ngozi Okonjo-Iweala, after the US finally backed her, could mean her first challenge is something she has faced before, vaccine politics.
All countries have accepted that Covid-19 is an emergency, but wealthy countries have cracked under Big Pharma pressure to impose further non-tariff barriers making it difficult for the poor to import. A vaccine importation strategy publicised by Kenya on Thursday revised the dates to 2023, when at least 16 million people may have been vaccinated. An initial target was to meet this by the end of this year.
WTO Gets First Woman And First African Director General – Analysis (Eurasia Review)
The appointment of a new WTO DG became necessary after the former Chief, Mr Roberto Azevêdo resigned a year before the end of his term, officially stepping down on the 31 August, 2020. He had said that he wanted to give WTO members enough time to choose his successor. However, this rendered the organisation leaderless during a difficult time. The liberal international economic order was – and still is – facing a backlash, while the trade and technology war between the US and China has had a negative effect on global trade.
A new WTO boss who understands Africa is a good thing for the global economy (City A.M.)
The impasse over who will become the next director-general of the WTO has at last come to a conclusion. Following South Korean Trade Minister Yoo Myung-hee’s withdrawal from the selection process, the path is now clear for Ngozi Okonjo-Iweala, a widely respected former Nigerian finance minister, to become the first woman and first African to lead the WTO. The Biden administration’s backing of her candidacy – after months of stonewalling by the Trump White House – means her appointment is a formality. At a time when the global trade system is in desperate need for a cooperative and inclusive response to the Covid-19 pandemic and simmering US-China relations, all member states should welcome fresh leadership at the WTO.
New WTO chief faces rough road ahead (POLITICO)
The coronavirus pandemic also unleashed calls around the world for less reliance on global supply chains as well as impulses to hunker down and produce more goods at home. President Joe Biden, while turning a friendlier face to the world than Trump, is putting domestic recovery at the core of his administration with his “Build Back Better” agenda. Okonjo-Iweala, who holds dual U.S. citizenship, will have to quickly demonstrate her ability to bring countries together after four years of growing mistrust generated largely by Trump’s highly disruptive “America First” trade policy. There will be tremendous pressure on her to produce significant results by the end of the year, when the WTO is expected to hold its first ministerial conference under her watch.
Development finance trends to watch in 2021 (Devex)
Shifting financial markets, evolving public policy priorities, and the pandemic are all impacting the mix of products and strategies garnering more attention in development finance this year. Some areas seem to be slow-moving trends, including blended finance. But others, such as social bonds, seem to be experiencing a rapid acceleration. As private finance and capital markets exert their influence on development finance, there continues to be a push for better standardization and harmonization of metrics, in large part to avoid dilution of impact. As some of these instruments gain popularity, they’re raising questions about whether they will direct private capital to countries and issues that need it most, and importantly, what they may divert increasingly limited official development funds from.
Rising Up to the Challenge: COVID-19 Guidelines Amidst Border Closures and a Pandemic (ReliefWeb)
Since the outbreak of the novel coronavirus (COVID-19) pandemic, over 100 million cases have been confirmed the world over, with Africa recording 3.5 million of the confirmed cases. To curtail the spread of the virus, governments have resorted to lockdowns and border closures. The World Trade Organization projects a drop in African exports and imports by 8 and 16 per cent, respectively, each with its own unique implications for African economies. With the global recession and the disruption of travel, Africa’s high reliance on primary commodity exports (77 per cent of total exports) poses serious risks to trade. Meanwhile, Africa is still heavily reliant on imports for essential goods like food items, energy and fuel products, and pharmaceutical products, which are key to mitigating the COVID-19 pandemic. These essential goods make up 32 per cent of the continent’s total imports, compared with a global average of 23 per cent, revealing a unique vulnerability to trade flows and further emphasizing the need to facilitate cross-border trade on the continent.
Biden to speak at virtual meeting of world’s major economies (Associated Press)
President Joe Biden will speak at a virtual meeting of the world’s major economies on Friday to discuss the coronavirus pandemic and global vaccination distribution, according to the White House. Biden is expected to speak about the need for a global response to the pandemic and to recommit the U.S. to multilateral engagement, a stark contrast from President Donald Trump, who developed an isolationist foreign policy that saw the U.S. withdraw from major global agreements and alliances. Since entering office, Biden has reversed many of Trump’s isolationist moves, including by rejoining the World Health Organization.
Technology, growth, and inequality: Changing dynamics in the digital era (Brookings)
Ours is a time of exciting technological change. The era of smart machines holds the promise of a more prosperous future for all. But it demands smarter policies to realize that promise. To capture potential gains in productivity and economic growth and to address rising inequality, policies will need to be more responsive to change as technology reshapes markets. And change will only intensify as artificial intelligence and other new advances drive digital transformation further – and at an accelerated pace in the aftermath of the COVID-19 pandemic.
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Country focus
AfCFTA: Alive With Possibilities (SAnews)
The South African government says it will maximise the opportunities presented by the African Continental Free Trade Area (AfCFTA), which came into operation on 1 January 2021, following the adoption of the Johannesburg Declaration by the African Union (AU). Delivering the 2021 State of the Nation Address on Thursday, President Cyril Ramaphosa said South Africa was already at work to reindustrialise the economy. This, the President said, was being done through initiatives such as the Ford Motor Company’s investment into the economy. The company recently announced a R16 billion investment in the South African market, which is expected to majorly bump up jobs and local production.
‘Localisation, localisation, localisation’: Ramaphosa delivers a business-friendly Sona (Mail & Guardian)
In last year’s State of the Nation address (Sona), President Cyril Ramaphosa said that he was fixing fundamentals: fixing public finances, growing the economy and fixing the country’s electricity problems. But before he could even begin his work, the pandemic hit. His focus shifted to protecting lives, while struggling to keep the economy from plunging deeper into the doldrums. Now his focus is back to fixing the economy.
In his address, Ramaphosa said infrastructure investment projects worth R340-billion are ongoing. The projects will be in the energy, water, transport and telecommunications sectors. “Construction has started and progress is being made on a number of projects,” said Ramaphosa. The president also spoke about increasing local production and making South African exports globally competitive. He said this will lead to increased local production, which will spur the revival of our manufacturing industry. This emphasis on localisation comes on the back of the African Continental Free Trade Area agreement, which kicked in last month.
Business welcomes govt commitment to infrastructure investment (Eyewitness News)
The President referenced the R100 billion infrastructure fund in his address on Thursday night, saying it’s now in full operation, and funding projects like the rehabilitation of major highways. Business remains concerned about implementation, but it’s hopeful government was at least on the right track with its focus on infrastructure development.
Border jumpers reversing lockdown gains (The Southern Times)
Experts worry that rampant irregular migration through illegal crossing points are counteracting efforts to contain the spread of COVID-19 across borders. The closure of the South Africa-Zimbabwe border at Beitbridge to curb spread of COVID-19 resulted in a 95 percent drop in legal cross-border movements, and an almost 100 percent surge in border jumping, according to official figures.
Kenya’s exports grow in Covid period as imports drop (The Star)
“The quantity of tea exported decreased from 44,724.70 metric tonnes in September 2020 to 43,655.91 metric tonnes in October 2020. The value of exported tea also dropped from Sh10.1 billion to Sh 9.9 billion over the same period,” KNBS notes in its data. China continued to dominate as the top import source market for Kenya during the period, accounting for Sh293.1 billion worth of goods that came into the country, followed by India where the country purchased Sh156.8 billion worth of goods.
What next for Uganda’s agricultural surplus? (Kampala Dispatch)
The Government of Uganda has advised farmers to take seriously complaints from regional and international markets about the quality of Ugandan produce. Ugandan products have undergone a series of rejection over the last three years from the regional markets of Kenya, Rwanda and Tanzania over quality concerns and dumping. Finance Minister Matia Kasaijja says the country is facing a problem of market for local goods which has resulted in surplus, yet farmers are ignoring calls for change. Some of the rejected products include milk, eggs, sugar and maize among others. According to statistics from the Ministry of Trade and Industry, Uganda produces 510,000 tons of sugar. However, only 360,000 tons are consumed locally. The surplus of 150,000 tons is exported within East Africa, COMESA regions and DR Congo. However, due to the import restrictions in neighbouring countries over quality concerns, over 50,000 tons of sugar are flooding causing a drop in the price from 150,000 to 130,000 for a 50 kg bag of sugar.
Investments in Rwanda fall by 47pc (The East African)
The value of investments in Rwanda fell drastically by almost half from $2.46 billion in 2019 to $1.3 billion in 2020 primarily due to the coronavirus pandemic that affected the economy and investors worldwide. The new numbers released by Rwanda Development Board (RDB) on Thursday represent a sharp investment decline of 41 percent, as both local and foreign investors spent less in a year plagued by the coronavirus pandemic. Foreign direct investments (FDI) to Rwanda, however, increased by 51 percent of the total investments from 37 percent in 2019. The figure is a notch higher than the 49 percent fall in global FDI registered in the first half of 2020.
Kenya, Uganda renew milk export dispute as ties sour (The East African)
Kenya and Uganda trade relations are on the verge of straining once again with Kampala accusing Nairobi of stopping its milk from accessing the country, and threatening to drag the matter to the East African Court of Justice. Uganda’s State Minister for East African Affairs Julius Maganda said his country is not ruling out taking Kenya to the regional court over continued trade blockade of many of its farm products. Kenya has in the last one year had trade related tensions with its landlocked neighbour, especially on milk products, which saw the Nairobi confiscate hundreds of tonnes of Lato milk from Uganda in 2020.
Kenya Railways adds cargo storage space (Business Daily)
The Kenya Railways Corporation (KRC) has added more cargo storage capacity at its Nairobi Railways station warehouse, offering a major boost to small traders in the country. The warehouse, dubbed the National Cargo Deconsolidation Centre will enhance capacity of de-consolidated cargo from the initial five 40-foot to fifteen 40-foot containers. The facility is an expansion of the corporation’s Transit shed launched last November by President Uhuru Kenyatta.
KRC said the number of containers being cleared at the facility is later expected to increase to 300 containers per month during the post-Covid period. The old warehouse has been serving up to 200 small scale traders since its launch. The cargo clearance plan is expected to be faster compared to the initial approach where the consolidated goods were cleared as a single container unit at the Inland Container Depot.
Construction of Tanzania–Uganda roads expected to begin soon (Construction Review)
The construction of the multinational Tanzania–Uganda roads (Masaka through Kyotera to Mutukula, Mutukula to Kyaka, and Bugene through Kasulo to Kumunazi) is expected to begin soon following the conclusion of the feasibility study and detailed engineering design. Undertaken by LEA Consulting Ltd, the designs covered 89.5 kilometers of the Masaka to Mutukula road section in Uganda, a 30 km section from Mutukula to Kyaka linking to a 133 km Tanzania section from Bugene to Kumunazi via Kasulo.
Speaking during the handover ceremony of the designs report, the East African Community (EAC) Deputy Secretary-General in charge of Planning and Infrastructure, Eng. Steven Mlote said that the EAC Secretariat will now focus on mobilization of funds to construct the road, as well as cooperation with other regional, continental and global efforts to improve road transport services and safety.
FG set to make Nigeria a major gold producing hub in Africa – Minister (Nairametrics)
The African Development Bank and the Mozambique Liquefied Natural Gas (LNG) Area 1 Project have been jointly awarded the prestigious Global Multilateral Deal of the Year 2020 award by the Project Finance International (PFI).The AfDB disclosed this in an email statement seen by Nairametrics on Thursday evening. The Multilateral bank disclosed that the project is the largest foreign direct investment in Africa to date with a value of over $24 billion, and “will exploit Mozambique’s immense offshore natural gas reserves, which can potentially transform global energy markets. “
Shippers count losses, lament lack of national fleet (Punch)
Shippers in the country have lamented the absence of a national shipping flag carrier. They said the reliance on foreign shipping lines had cost the shipping sector huge losses while clogging the clearing procedures at the ports. A former Chairman of Ship Owners Association of Nigeria, and Chief Executive Officer of Starzs Shipping Company, Greg Ogbeifun, said Nigeria had lost its place in the global industry. The shipping expert who who spoke in a virtual meeting heralding his birthday said Nigeria loses over $41m daily to other countries. He said, “Nigeria used to be a very active player in the global shipping industry. The Federal Government owned the Nigerian National Shipping line in the ‘70s, 80s and early 90s. We had Africa Ocean lines and a few others. “With those platforms, the country was able to participate in some opportunities created by the United Nations Conference on Trade and Development.”
Buhari approves the establishment of Infra-Co with initial seed capital of N1 trillion (Nairametrics)
The Lagos State Government through its newly constituted Traffic Management Enforcement Team to resolve Apapa gridlocks and the Nigerian Port Authority Security Team has identified 7 parks as holding bay for trucks around the metropolis. This is as they set out to put an end to the indiscriminate parking of trucks and trailers across the bridges and major roads which obstruct the free flow of traffic and cause environmental hazard.
Fayinka, who is also a Special Adviser to the Lagos State Governor, on Transportation, said that the team had been able to design a road map and the strategy to be adopted in tackling the issue. He said, “We are in discussion with the various stakeholders; the Nigerian Ports Authority (NPA), Nigerian Shippers’ Council (NSC), Terminal Operators and Association of Trucks Union on the best way to do business around Apapa Ports without the breakdown of law and order.
Chartered Institute of Logistics cites policy imperatives for urgent government action (Myjoyonline.com)
The Chartered Institute of Logistics and Transport (CILT) Ghana has proposed some policy imperatives needing urgent government policy directives and action. The leading professional body in logistics and transport, CILT Ghana’s proposals span from the rail sector, road, maritime and the country’s air space. According to the institute, these interventions are imperative in order to promote the growth of the logistics and transport space to contribute to socio-economic development of the country.
Egypt seeks completion of pan-African road through 10 countries to Cape Town (Al-Monitor)
The Egyptian government is leading efforts to build a road linking Egypt with nine African countries as part of efforts to boost development and bolster Egypt’s exports to Africa. Transport Minister Kamel el-Wazir told the House of Representatives on Jan. 31 that his ministry is working to carry out several road projects to connect with Egypt’s neighbors. “We will complete the Cairo-Cape Town Road that will cross through nine African countries as part of Egypt’s efforts to connect with neighboring countries,” Wazir said. The pan-African highway would begin in Egypt from the coastal city of Alexandria and go through Cairo on its way to the Arqin crossing on the Egyptian-Sudanese border.
Uganda retains 10th position in Absa Index (Daily Monitor)
Uganda has retained the 10th position in the Absa Africa Financial Markets Index (AFMI) involving 23 African countries. The Absa Africa Financial Markets Index, is a toolkit for African countries seeking to strengthen their financial markets. Speaking during the launch of AFMI report earlier in the week, Bank of Uganda Deputy Governor, Dr Michael Atingi-Ego noted that Uganda’s overall ranking of 10th from 2017 to date could be regarded by pessimists as stagnation, but for an optimist like himself, “it speaks to stability and resilience.” The national score also increased from 50 in 2017/18 to 52 out of 100 in 2019/20, but even though Uganda somewhat consolidated its ground, he believes a lot of room remains to be covered.
Over 77% Rwandan Importers From RRA Golden Card Scheme (Taarifa Rwanda)
Over 77% of Rwanda’s importers and exporters are benefiting from the Gold Card Scheme, a scheme from which only those who are tax compliant and trustworthy get special exemptions during custom procedures. Rwanda Revenue Authority’s Commissioner for Customs Services, Felicien Mwumvaneza, says that there are special exemptions that are granted to importers and exporters who belong to the Gold Card Scheme which among them include a 5% VAT exemption and immediate release of their consignment from the customs offices upon arrival. Mwumvaneza noted that this is an achievement not only to those who have earned this prestige but also to the government that has tirelessly invested in an advanced customs technology to improve customs procedures as well as tax compliance.
Ghana not yet seeing benefit of AfCFTA due to COVID-19 – Ayorkor Botchwey (Modern Ghana)
The Minister-designate of Foreign Affairs, Shirley Ayorkor Botchwey has explained that Ghana is not yet seeing the benefits of the African Continental Free Trade Area (AfCFTA) agreement, especially as the host country because of the COVID-19 pandemic. Addressing Parliament’s Appointments Committee on Thursday, February 11, 2021, the Foreign Minister-designate said, “Ghana’s successful candidature to host the AfCFTA secretariat will go a long way to help the country. It will impact our economic development. As the host country, there are several benefits, including employment, when it is at its full capacity of operation”.
News from Africa and Africa’s international trade relations
The AfCFTA Is Already Running Up Against the Hard Realities of Africa’s Endemic Trade Barriers (Foreign Policy)
Sometime soon, thanks to a deal struck under the COVAX Facility, African nations may start receiving larger shares of the Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines. As they do, their economies can move further toward post-coronavirus growth and recovery. This good news comes as the continent hits another economic milestone: On Jan. 1, the African Continental Free Trade Area (AfCFTA) – the world’s largest free trade area – officially went into force. The moment was decades in the making; since the Lagos Plan of Action of 1980, creating an “African Common Market” has been a major regional goal. Despite the lofty achievement, though, Africa’s envisaged free trade area still faces many hurdles.
See the tralac Blog: Trade under AfCFTA Rules started on 1 January 2021, but hard work lies ahead
AfCFTA states terms for members in other pacts (The East African)
African countries negotiating free trade agreements with parties from other parts of the world will be required to grant the same preferences or better terms to African Continental Free Trade Area (AfCFTA) member states. The AfCFTA Secretary General Wamkele Keabetswe Mene, referring to Kenya, which is currently negotiating a free trade agreement with the US, said the same preferences granted to America should be given to African countries. “Any country, any state party is within their legal rights to negotiate with a country outside of the AfCFTA Treaty, as long as you provide better or similar treatment to the AfCFTA party that you are intending to provide to a third party,” said Mr Mene.
Connecting people and markets in Africa in 2021 (ECDPM)
On 1 January 2021, trading formally began in the African Continental Free Trade Area (AfCFTA). The AfCFTA aims to create a continental market for goods and services, with free movement of people and investments intended to help deepen the economic integration of the African continent and promote development. Easier movement of persons on the continent would make African labour markets more efficient, enabling companies to bridge skills gaps by recruiting from neighbouring countries, and greater conditions for mobility of workers has the potential to lower unemployment rates.
EABC policy agenda to spur Intra-EAC trade to 30pc (Kenya Broadcasting Corporation)
The East African Business Council (EABC) in partnership with the Federation of German Industries (BDI) has convened trade and policy experts from the EAC Partner States virtually to chart out a joint regional policy advocacy agenda geared to spur intra-EAC trade to 30%. COVID-19 pandemic has disrupted regional and global supply chains leading to contraction of intra-EAC trade and costing USD 37billion to USD79 billion output losses for the region.
Total EAC exports decreased by 4.7 percent to USD 14.0 billion in 2018 from USD 14.7 billion in 2017 of which, intra-EAC exports accounted for 22.4 percent. The trade deficit for the EAC region increased by 39.4 percent to USD 24.3 billion in 2018 from USD 17.4 billion registered in 2017. (EAC Trade & Investment Report, 2018).
Elimination of persistent Non-Tariff Barriers (NTBs), implementation of trade dispute settlement mechanism; harmonized product standards and work permit regimes; liberalization of trade in services, free movement of capital, harmonization of domestic taxes in the region are top of the EABC Policy Agenda 2021/22 geared to boost intra-EAC trade and investment in the region.
Pandemic clips airlines’ wings (The Southern Times)
Intercontinental passenger carrier Emirates announced Monday it would be suspending its four weekly frequencies into Harare and Lusaka, as RwandAir pulled out of four SADC destinations Tuesday, citing a surge in COVID-19 cases in the region. Other airlines have grounded or trimmed flights across the region in response to falling passenger numbers since the pandemic intensified. However, Airlink is adding a route in Southern Africa in March when it starts connecting Cape Town and Harare.
COVID-19 Vaccinations Roll Out Slowly in the COMESA Region
Three COMESA Countries Egypt, Mauritius and Seychelles have rolled out the COVID-19 vaccinations. According to the COMESA Early Warning System (COMWARN) report, countries in the COMESA region have however, been slow to roll out COVID-19 vaccination. The slow rollout in Africa generally has been attributed to the costs of procurement, availability and safety concerns. Most developed countries that had earlier procured COVID-19 vaccines from the bigger pharmaceuticals started vaccinating their citizens earlier in the year.
Covid19: Supporting Africa’s micro businesses to help them survive (The Africa Report)
Africa is full of talented people who, with capital and training, can deliver outsize returns and drive the economic change that is needed. The past year has not been a complete catastrophe for entrepreneurs. The diverse and dynamic alumni network we have at Tony Elumelu Foundation have reached remarkable heights across Africa in the wake of the pandemic, with inventions like Pad Up – a social enterprise that has produced and distributed over 100,000 breathable sterile face masks to medical personnel in Nigeria; and in Sierra Lone, Lili Tap by Light Salone Innovation – a safer way of opening and closing water taps with a foot working down a lever system. In 2020, a Uganda fashion designer, Juliet Namujju, was featured on CNN African Voices as a “Changemaker” and she has since then manufactured reusable, washable and biodegradable anti-viral face masks as an alternative to single-use face masks which are made of plastic.
COMESA is Resetting Relationship with its Institutions
Specialized institutions established under the COMESA Treaty are among the best rated in the African continent with some attracting membership beyond the regional bloc. The Secretariat and the institutions are developing a cooperation agreement to guide their relationship to not only keep pace with the changing dynamics but ensure the interest of other stakeholders are safeguarded. Over 10 institutions have been established since the creation of the regional bloc, firstly as the Preferential Trade Area for Eastern and Southern Africa, the precursor to COMESA. They specialize in different aspects of regional integration including finance, insurance, industry, investment, competition policy, women affairs, energy among others. In coming up with a cooperation framework, the Secretariat and the institutions seek to create a nexus that balances the institutions’ responsibilities to COMESA, and the interests of the other external stakeholders.
The AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) program has agreed a partnership with the African Guarantee Fund (AGF) to unlock $1.3 to 2 billion in loans to women-owned Small and Medium Sized Enterprises(SMEs) in Africa, by working with financial institutions to enhance their ability to lend to women. The move signals the launch of AFAWA’s Guarantee for Growth (G4G) program, which aims to make available up to $3 billion in financing for women entrepreneurs through de-risking and technical assistance measures. Already, financial institutions in Cameroon, Democratic Republic of Congo, Kenya, Rwanda, Tanzania and Uganda are signing on to the program.
SADC and EU discuss existing cooperation with view to enhance it and make it more impactful
The Southern African Development Community (SADC) enjoys long standing cordial relations and strong cooperation with the European Union Delegation (EU) in the Republic of Botswana, SADC Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, has said. Speaking during her virtual meeting with Mr Stefano Gatto, Senior Inspector at the European Union External Action Service on 9 February 2021, H.E Dr Tax indicated that, while the region continues to cooperate with the EU and highly appreciates the cooperation and support rendered to the region, it will be prudent to re-orient and enhance the existing cooperation by focusing more on impactful partnership and timely delivery of programmes.
On achievements, Dr. Tax cited the Tripartite Transport and Transit Facilitation Progamme (TTTFP), and Support to Peace and Security in the SADC Region (SPSS) programmes, to have contributed to SADC integration agenda. In relation to TTTFP, she indicated that he programme has contributed to the development and harmonisation of transport and transit policies aimed at promoting trade facilitation in the SADC, EAC, and COMESA Tripartite area. Through EU support, Tripartite Guidelines for Trade and Transport Facilitation were developed and adopted to ensure continuous movement of essential goods and services during COVID-19 pandemic.
Currency union on intra-regional trade (Graphic Online)
The Economic Community of West African States (ECOWAS) comprises eight Francophone, five Anglophone and two Lusophone countries. These countries were categorised into two zones namely: the West African Economic and Monetary Union (WAEMU), formed as an African colony of France during the colonial era; and the West African Monetary Zone (WAMZ). Comparatively, the WAEMU uses the CFA, as a common currency, and the WAMZ uses their sovereign currencies. Additionally, the WAEMU intra-trade averages 13.7 per cent 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.
How China can help Africa’s economy recover from Covid-19 (Quartz Africa)
Much international coverage of Ethiopia last week focused on its request for debt relief under a new framework agreed to last year by the Group of 20 countries, including China. The initiative is designed to help poorer countries deal with the impact of the Covid-19 pandemic. While the question of how Ethiopia deals with its debts – particularly through this program – is extremely important, it is just one aspect of the country’s recovery from the pandemic, and future prosperity. A major challenge is how it can increase trade and exports, which currently contribute only 7.9% to its GDP, one of the lowest in Africa. This is a major goal of Teshome Toga, Ethiopia’s ambassador to China for the last two years.
China-Africa: The growing battlefield for digital dominance (The Africa Report)
The first wave of telecoms growth in Africa made millionaires – in some cases, billionaires – of investors who bet on Africans spending on mobile phones. No one is underestimating the potential of the next wave – interlocking trade, digital money and communications. Certainly not the Chinese, whose technology, communications and finance companies are heavily invested.
Global economy
Trade and investment factsheets (GOV.UK)
A snapshot of the UK’s trade and investment positions with individual trading and investment partners overseas. These factsheets summarise the latest statistics on trade and investment between the UK and individual overseas partners. Trade statistics inform how we meet the challenges of trade policy and promotion in the UK. The factsheets provide statistics between the UK and its partners on:
- exports, imports, and total trade
- trade by commodity and service type
- regional trade in the UK for goods
- UK market share for trading partners
- VAT-registered businesses trading goods
- foreign direct investment (FDI)
- ‘Ease of doing business’ rankings
- summary trade and investment data as reported by each partner
- economic data and projections
Multi-year Expert Meeting on Commodities and Development, twelfth session | UNCTAD
UNCTAD's Trade and Development Board Multi-year Expert Meeting on Commodities and Development Twelfth session took place virtually on 8 and 9 February 2021 from Geneva. A background note from the UCNTAD Secretariat titled “Recent developments, challenges and opportunities in commodity markets” was prepared to highlight key commodity market trends and to analyse factors, including the significant effect of the pandemic, that contributed to the trends in commodity prices observed in 2020.
A suite of TRAFFIC reports into high-value African marine products highlights yet another burgeoning, under-reported, unsustainable, and illegal trade that threatens the long-term survival of key marine species and the potential for sustainable human development. TRAFFIC’s policy brief A response to trade in high-value marine products between Africa and Asia summarises studies into seahorse, sea cucumber, and fish maw (dried swim bladder) trade; painting a picture of population declines, inadequate regulation, stretched law enforcement, and local communities impacted by illegal and unsustainable catch and trade.
Rich countries have a moral obligation to help poor countries get vaccines, but catastrophic scenarios are overrated (Brookings Institution)
As rich countries ramp up their vaccination efforts, there is a lot of concern over the when and how of developing countries also receiving and distributing vaccines in a timely manner and finally getting this horrible pandemic behind us. The concerns are real, and the task of vaccinating the poorest of the poor requires a massive global effort by rich and poor countries alike. First and foremost, it is a moral argument. Given that the vaccine itself already exists – albeit with different levels of effectiveness – every day that goes on results in preventable deaths that must be avoided. Instead, the rich countries have engaged in “Vaccine Nationalism,” paying for doses in short supply in quantities that more than cover their own populations. When it comes to saving lives, leaving the distribution of vaccines purely to the market is absurd as no one is safe until all of us are safe. But beyond the moral argument, there are also compelling arguments on the possible very scary consequences of leaving developing countries behind when it comes to vaccinations. Some of these arguments are excellently spelled out in this piece, which includes the following three points.
WTO and its role in reducing the economic shock of the pandemic (Observer Research Foundation)
Commentators and academics have regularly drawn attention to the importance of the World Trade Organisation (WTO) in regulating trade and reducing barriers. However, the role that the institution has played – and continues to play – in reducing the economic shock of the COVID-19 pandemic, and thereby mitigating its adverse impacts, merits more attention. The WTO has helped in absorbing this blow in a three-pronged manner: First, by helping members coordinate their trade policies; second, by ensuring transparency with regard to pandemic-related measures; and lastly, by monitoring members’ trade responses to the pandemic.
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Ramaphosa expected to lay out plans for vaccine rollout, broadband access in State of the Nation Address (CGTN Africa)
South Africa’s President Cyril Ramaphosa is Thursday evening expected to deliver the nation’s 2021 State of The Nation Address (SONA) to the first-ever Hybrid Joint Sitting of the National Assembly and the National Council of Provinces on Thursday, the event will for the first time be held virtually, due to the coronavirus restrictions. The president is set to talk about COVID-19 vaccines as a pressing priority as the cost of COVID-19 lockdown restrictions wreak havoc, with South Africa’s economy in the doldrums.
Nigeria justifies war on cryptocurrencies, takes tougher actions (The East African)
The Central Bank of Nigeria (CBN) has ignored the uproar over a crackdown on cryptocurrencies, giving several reasons for the move, ordering investigations and blocking all the accounts of companies trading in them. The apex bank on February 5 joined countries that have outlawed cryptocurrencies, asking banks and financial institutions to close accounts. Two days later, it opened investigations into the bank accounts and blocked those suspected to be used for fraud. The bank on Sunday explained that many other countries, investors and economists have warned against cryptocurrencies because of the “significant risks” in transactions. The risks, it said, include loss of investments, money laundering, terrorism financing, illicit fund flows and criminal activities. Defining cryptocurrencies as digital or virtual currencies issued by largely anonymous entities and secured by cryptography, the bank said cryptography is a method of encrypting and hiding codes that prevent oversight, accountability and regulation.
State plans to train more youth in blue economy push (Business Daily)
The government is seeking to have more trained personal in maritime in a bid to increase the sector’s contribution to the economy. Shipping and Maritime Principal Secretary Nancy Karigithu said the government plans to support young people to undertake studies in the maritime sector to enable them to work at home and abroad. “We are creating a very strong pillar for the development of the blue economy and the maritime sector,” said Ms Karigithu at the Kenya Maritime Authority (KMA) headquarters. The latest plan to encourage youth to undertake maritime training is the rollout out of a dedicated fund that will see students get loans to finance their education.
SMEs call for fund to boost exports in horticulture sector (Business Daily)
SMEs in the agribusiness sector have called on the government to help them establish external business links and set up a revolving fund to assist those looking to export produce. Participants at an exporters forum held in Nairobi Wednesday said that helping the small scale sellers could triple Kenya’s export earnings from horticulture. Local SMEs lack a seamless and well-funded platform to source produce and ship the same to foreign markets, putting them at a disadvantage compared to well-oiled multinational producers. “Our partner businesspeople pledge payments upon receiving the shipment but we lack funds to source, package and ship the consignments. Our buyers pay upon arrival and many are unwilling to take the risk of upfront payments,” said Nancy Wakaba, chief executive of Modest Exporters.
93 checkpoints: How extortions, multiple taxes force transporters off Taraba, Benue roads (Daily Trust)
Truck drivers conveying food items, timber and other goods pass through a 93 checkpoint-hell through Taraba and Benue states to get to their destination, driving up food prices and subjecting the drivers to exploitation from corrupt law enforcement agents and thugs, as Daily Trust reports. A combination of extortion by security agents, multiple taxes and illegal checkpoints is forcing truck drivers conveying farm produce, cattle and timber to abandon parts of Benue and Taraba state roads.
Cabinet guns for Air Namibia liquidation - The Namibian
Cabinet has given its approval for Air Namibia to be voluntarily liquidated. The intention is to register the resolution with Business and Intellectual Property Authority (BIPA) before 18 February so that Challenge Air (which took Air Namibia over unpaid dues) cannot attach any of the airline's assets. In leaked documents from a consultative meeting yesterday, Cabinet made the decision that the airline's workers will enjoy preferential treatment and receive their full severance packages from the liquidators.
In a communique yesterday, the Air Namibia management informed the public that all flights with the airline are cancelled and all aircrafts will return to the base. The reservation system for taking new bookings has also been suspended. “Affected passengers must register their claims for a refund,” the communique noted. A source close to the matter confirmed to The Namibian that it seems the government changed its mind regarding the appointment of the three new directors and have decided to rather appoint two government employees.
Organisation seeks to support Malawi women entrepreneurs (Malawi24)
An organization working in the SADC region, Africa Trust Group (ATG), has partnered Enygma Ventures to financially support Malawian women who have existing businesses and those with business ideas. This is according to Lelemba Phiri founder of the ATG which is an operating partner of Enygma Ventures which focuses on bridging the gender gap in access to finance for early-stage women entrepreneurs in the SADC region. In an interview, Phiri told Malawi24 that they thought of extending their operations in Malawi because they have seen several women entrepreneurs that are already working hard to finding solutions to tough challenges through business. She, however, said that regionally, women still have less access to funding a development which she said has resulted into losing of up to $95billion in productivity every year just because women are not fully included in economic activities.
Changing Ethiopian ICT landscape presents attractive opportunities and potential, says market ... (Engineering News)
Information and communication technology (ICT) market research firm International Data Corporation (IDC) says there are positive opportunities in Ethiopia as the government focuses on liberalising the telecommunications sector and allowing for foreign investment. This move creates space for organisations and investors to explore opportunities in this changing ICT ecosystem, which will have long-term benefits for the country, the IDC says in its ‘Ethiopia ICT Landscape and Future Market Opportunities’ market perspective insight analysis.
NOTN: Why Nigeria has not started trading under AfCFTA (The Cable)
The Nigerian Office of Trade Negotiations (NOTN) says trading has not begun under the African Continental Free Trade Area (AfCFTA) agreement because it is still in the process of domesticating the guidelines. Victor Liman, NOTN acting director-general and chief trade negotiator, told journalists in Abuja that the processes involved before implementation include the enactment of a law by the national assembly in line with the provisions of section 12 of the amended 1999 constitution. “You don’t just ratify an agreement and start implementation. You have to first of all address the domestic issues that would allow the implementation to kick-start. You have to put the right framework in place,” he explained.
COVID-19 vaccines split Nigeria's private sector as BUA tackles CACOVID (Premium Times)
The purchase of one million doses of COVID-19 vaccines has split leaders of Nigeria’s private sector with allegations of falsehood and insincerity being branded by top players. Top industrial firm, BUA Group, has accused the private sector-led Coalition Against COVID-19 (CACOVID), which it is part of, of mischief and spreading false information.
“BUA decided to secure these 1million vaccines by paying the full amount for the vaccines today (Monday) because these vaccines became available only last week through AFREXIM. We expect the vaccines to be delivered within the next 14 days and hope priority will be given to our frontline workers who have committed their lives to managing the pandemic,” a statement signed by BUA founder, Abdul Samad Rabiu, said.
CPI to Rise by 16.10% YoY in January 2021 (Proshare Nigeria)
As at December 2020, inflation in advanced economies had firmed up (US- 1.4% and UK - 0.6%) when compared to 1.2% and 0.4% in November 2020 respectively. Euro Area inflation remained unchanged at -0.3%. Clearly, at current levels it still lags the 2% target which could trigger a change in monetary policy direction. As the global economy recovers gradually, we expect that movement in energy prices will be a key driver of global inflation in the near term. Already, we have seen this play out in the past few months where inflation in many climes ticked higher following improvements in crude oil prices.
At 15.75% (as at December 2020), Nigeria's inflation rate sits at a three-year high and sufficiently above the 12% - 13% threshold that the CBN considers injurious to economic growth. While some of the pre cursors to the inflationary pressure have eased ( re-opened borders and electricity tariff hike roll back), we worry about the sticky nature of prices and the time horizon in which price adjustments can occur. On land border closure, we note that although the borders have been re-opened, importation of certain food items are still restricted. We therefore look to the rules of origin guiding the AfCFTA which is expected to have seen considerable progress by July 2021. Under the AfCFTA, tariff and non-tariff barriers to trade are expected to be eliminated. Thus, ensuring free movement of goods that pass the conditions of the rules of origin. Pending clear guidance on rules guiding trade under the AfCFTA, we expect local food supply capacity to remain stretched and food prices to remain elevated. In addition to these are security challenges which continue to plague the nation's food producing regions.
Construct four-lane road to ease Busia cargo clearance - EABC (The Star)
“Insufficient parking space for cargo trucks along the northern transport corridor trunk routes still pauses a safety challenge for the traders and border communities,” he said. The council has further urged revenue authorities to install cargo scanners at border points to facilitate trade.
In October last year, truck traffic snarl-up to the Busia border exceeded 15 kilometres, disrupting cross-border trade and escalating the cost of doing business. This saw EABC call for mutual recognition of Covid-19 tests across the region.
CEMAC: Cameroon repaid XAF382 bln to investors on the local money market in 2020 (MINFI) (Business in Cameroon)
During the 2020 fiscal year, Cameroon repaid XAF382 billion of loans raised on BEAC securities market. We gatherd that inorder to repay those loans, the country raised XAF413 billion by issuing treasury bills (short-term securities) on the same market. According to Finance Minister Louis Paul Motaze, during the period under review, Cameroon’s net borrowings on the CEMAC money market was XAF31 billion. The official disclosed the figure on February 9, 2021, during the presentation of Cameroon’s 2021 public securities issuance program in Douala.
"The funds raised through the issuance of treasury bills helped ensure better cash management by alleviating tensions related to the periodic decline in revenues. As for the funds raised through the issuance of treasury bonds, they contributed to the continuation and completion of many investment projects. These investments include XAF80 billion for road infrastructure, XAF70 billion for sports infrastructure, XAF45 billion for the Covid-19 response plan...," the Minister of Finance explains.
Zim's Yearly Exports Grow To US$4.4b (New Zimbabwe)
ZIMBABWE’S annual exports for 2020 defied Covid-19 pandemic and grew to a record US$4.4 billion on the backdrop of a raft of economic reform measures, the country’s trade facilitation body, Zimtrade has reported. Predictions by the World Trade Organization (WTO) last year had projected “world trade is expected to fall by between 13 to 32% in 2020 as the Covid-19 pandemic disrupts normal economic activity and life around the world”. However, based on the Zimbabwe National Statistic Agency (Zimstat) data, the trade facilitator said exports grew by 2.7% in 2020. The growth coincides with increased foreign currency availability on the Reserve Bank of Zimbabwe (RBZ) foreign exchange auction system coupled with stable exchange rates, which have spurred businesses. “In terms of monetary value, the nation’s exports stood at US$4.39 billion, up from US$4.28 billion recorded in the same period in 2019,” Zimtrade said. “Although this falls short of the 10% export growth set under the National Export Strategy, it reflects on the commendable efforts that went to ensure the country retains a positive export growth.”
News from Africa and Africa’s international trade relations
AfCFTA could be ‘jackpot for SA farmers’ (Food for Mzansi)
Bearing in mind that Mzansi is a major exporter of food products to the rest of the continent, there can be no doubt that the African Continental Free Trade Agreement (AfCFTA) will boost local farmers. This is the view of Dr Sifiso Ntombela, chief economist of the National Agricultural Marketing Council (NAMC), about AfCFTA, which came into effect on 1 January 2021. The agreement, he believes, presents an opportunity to boost intra-African trade and farmers will benefit from new open-trade opportunities.
Africa business leaders optimistic of swift economic recovery in 2021 (The Guardian, Nigeria)
Business leaders in Africa have expressed the hope that economic prosperity and increase in trading activities would return to the continent from 2021. Their optimism is sequel to the outcome of a survey of more than 150 chief executive officers (CEOs) in the continent released by the Africa CEO Forum, and Deloitte.
According to the survey, 95 per cent of the CEOs said the Covid-19 crisis has had negative consequences in Africa across all sectors, and sub-regions with much impact on business activities. Although the consumer business, financial services, and energy sectors were the most optimistic prior to the crisis, at the moment, they are the most concerned about the future. However, the morale of stakeholders from the food, health, and education industries is the least impacted. The survey states, “Across all sectors, the sense of resilience is striking, as 80 per cent of survey respondents exhibit a high degree of confidence about the continent’s long-term outlook compared with just 73 per cent one year earlier. This is illustrated by the fact that 60 per cent are confident that business will ‘return to normal’ in 2021. Respondents are also pleased about current and future developments in terms of increasing local production, but above all in terms of digitalisation for which they expect significant support from public authorities.”
Why Agribusiness Investment is Most Exciting for Africa. - East African Business Week
Agribusiness investment is currently the most exciting venture for Africa. Africa’s food import bill-estimated by the African Development Bank annually at $43 billion in 2019, should both be a source of worry and energise the continent into self-sustenance. Food imports create dependency and outflow of much needed foreign exchange. These food imports do not mean the continent’s land is unproductive, but rather a combination of factors including limited intra-continental trade and entrepreneurs’ inability to see agribusiness as a goldmine.
Africa's free trade agreement: great expectations, tough questions (Equal Times)
The start of trading under the African Continental Free Trade Area (AfCFTA) agreement on 1 January 2021 marks the dawn of a new era in Africa’s development journey. Over time, the AfCFTA will eliminate import tariffs on 97 per cent of goods traded on the continent, as well as address non-tariff barriers.
African countries have also been trapped in the lower levels of the global economy by selling low-value raw materials and buying higher-value manufactured goods. This is seen as one of Africa’s major challenges for development. The free trade agreement seeks to reverse this.
Increased production for exports cannot happen in a vacuum. The agreement attempts to solve demand issues by creating a single African market, but there are reasons that countries haven’t been able to scale up production to match the consumption of their citizens.
There will be several other barriers to trade including the deficit in hard and soft infrastructure, certification requirements, bureaucratic red tape and rent-seeking by government officials. A mechanism has been set up for reporting and addressing non-tariff barriers.
The East African Legislative Assembly has urged the EAC Council of Ministers to cause Lake Victoria Basin Commission (LVBC) to embark on the process of harmonization of Partner States’ policies and laws appertaining to the Lake Victoria Basin.
A report of the Committee on Agriculture, Tourism and Natural Resources (ATNR) on the On-Spot Assessment of the Lake Victoria Basin, presented yesterday to the House by Hon. Mathias Kasamba (on behalf of the substantive Committee Chair, Hon. Dr. Abdulla H. Makame), also tasks the region to make every effort to safeguard LVBC’s mandate, by strengthening its capacity, inter alia through enhanced funding and provision of requisite human resources.
The International Organization for Migration and COMESA will review their current memorandum of understanding (MoU) to incorporate emerging issues on movement of people particularly in the implementation of the African Continental Free Trade Area (ACFTA) as well as the COVID-19 pandemic. Priority issues to be addressed are those relating to free movement of people under the ACFTA framework now that majority of the African Union member States have endorsed the free movement of goods and services. Also notable during the COVID-19 pandemic, has been an upsurge of non-tariff barriers affecting free movement or people, goods and services as countries strive to contain the spread of the pandemic
Electric vehicle battery manufacturing: Why SADC needs to act now (Mail & Guardian)
The pandemic has highlighted a number of systemic problems in the Southern Africa Development Community (SADC) region, the major one being the high rate of unemployment and poverty. Even prior to the pandemic, the region’s unemployment rate was hovering around 11%, with a youth unemployment rate of about 25%. Unemployment directly affects the levels of poverty in the region. Instead of lamenting how our lives have changed since the advent of Covid-19, we should use the pandemic to look at new ways of doing things, such as fast-tracking initiatives to improve the livelihoods of everyone in SADC. An opportunity staring us in the face is the electrification of transport; in other words the transition from petrol and diesel vehicles to electric vehicles. A report titled Jobs in green and healthy transport states that the Electric Vehicle (EV) industry is set to create at least 10-million jobs worldwide. What can SADC governments do to make sure that the region gets a share of those job opportunities?
The President of the African Development Bank, Dr. Akinwumi A. Adesina, has called for fair access to COVID-19 vaccines for Africans and said debt relief would help African economies recover faster and better from the pandemic. Speaking on 8 February at a virtual event held in his honour as the outgoing African of the Year of African Leadership Magazine, the Bank President warned that so long as the coronavirus was unchecked in any part of the world, no one would be safe. “There is light at the end of the tunnel – it just happens to be a very long tunnel. I am very positive that African economies will bounce back over the next two years, but the speed of recovery will depend on ensuring that Africa gets enough vaccines for its population,” Adesina said. “The world must not short-change Africa on access to vaccines,” he added.
He also said significant debt relief would be key to accelerating African economies’ recovery from the COVID-19 crisis. “To recover faster, Africa will need significant debt forgiveness from bilateral and official creditors,” he said during the virtual event attended by Douye Diri, the Governor of the Nigerian state of Bayelsa, and Benoy Berry, Chairman of Contec Global Worldwide.
Tackling illicit financial flows to secure Africa’s future, curb conflict (Africa Renewal)
Given the cross-border nature of IFFs, action is needed at the global level. In 2019, the UN launched the High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda (FACTI). This panel has been tasked to review current challenges and trends related to financial accountability, transparency and integrity, and to make evidence-based recommendations on making systems more comprehensive, robust, effective, and universal in approach. Their first report with their findings is due to be launched on 25 February.
New AU chair DRC’s President Felix Tshisekedi sets ambitious agenda for 2021 (Africa Renewal)
The 34th Session of the African Union Summit ended on 7 February 2021 with the new Chair, President Felix Tshisekedi of the Democratic Republic of the Congo (DRC), outlining an ambitious agenda for the year.
Addressing a virtual gathering of fellow heads of state and government at the two-day summit, President Tshisekedi said his priorities would be tackling the COVID-19 pandemic, accelerating the operationalization of the African Continental Free Trade Area (AfCFTA) and fostering peace and security on the continent.
Combating climate change, expediting regional integration, investing in human capital, promoting Africa’s culture and empowering women and youth will also get his attention.
AfCFTA: Experts, traders call for robust participation of women and youth | Namibia Economist
The Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has, since assuming office in March 2020, persistently hammered on the urgent need for effective implementation of the trade pact to stimulate Africa’s recession-threatened economy. Mene reiterated that theme on 3 December at the virtual launch of the Futures Report: Making the AfCFTA Work for Women and Youth. Produced by the UN Development Programme (UNDP) and the AfCFTA Secretariat, the 100-page report details challenges and opportunities in intra-African trade, and reflects the views of some of Africa’s leading development experts, policy makers and business leaders, as well as the lived experiences of traders, including women and youth.
More African Nations Seen Tapping G-20 Debt Plan on Revenue Drop (Bloomberg)
The economic damage wrought by the coronavirus will probably lead more African nations to seek debt restructuring, the head of the United Nations Economic Commission for Africa said.
With government revenue taking strain because of the slowdown in economic growth, some countries are less equipped to meet the demands of their citizens, Uneca Executive Secretary Vera Songwe said in an interview. She didn’t specify which nations might seek relief, but said it would be those made most vulnerable by the crisis. “African countries don’t have the resilience buffers that we had in 2020,” Songwe said. “There probably will be more countries that will opt for the G-20 debt framework,” because they need additional fiscal space to purchase vaccines, she said.
The G-20 framework aims to bring creditors including China into an agreement to rework the debt of countries in danger of defaulting. China is Ethiopia’s biggest bilateral creditor, accounting for 23% of its total public debt burden of $27.8 billion, according to World Bank data.Under the G-20 program, debtors are committed to seek similar terms of the resulting bilateral restructuring with private creditors. It’s unclear what that will mean for Eurobond-holders, said Songwe, who spent more than a decade at the World Bank before being appointed head of the UN body in 2017.
“We’ll get better clarity as one or two countries take it and start doing it,” she said. “But essentially when you restructure your debt, you put everything in the basket.”
Vaccine procurement and distribution – the continent’s next big Covid-19 test (Daily Maverick)
Notwithstanding that there is no vaccine with 100% efficacy in preventing Covid-19, global efforts at developing a vaccine have reached encouraging levels.
The development and approval of the vaccines is the biggest hope in the fight against a resurgent Covid-19
The rollout of vaccines across the world has just begun with many countries, mainly in the Western world, already taking deliveries. However, there is concern at what is being referred to as “vaccine nationalism”, as developed countries hoard vaccines while many other countries, mainly in Africa and the developing world, are left without.
Meanwhile, in a memo to the AU, the International Commission of Jurists (ICJ) has recommended the African Union acknowledge that Covid-19 vaccines are a “public good” and that all states must ensure access to these vaccines in order to realise the human rights of their inhabitants. The vaccine deficit has become all the more apparent for Southern Africa, where the current second wave of the pandemic has led to more cases and fatalities, as well as reports of the overwhelming of medical facilities in countries like Malawi and Zambia, leading Gavi, the Global Vaccine Alliance, to suggest that Covid-19’s impact may be “vastly underestimated” in African countries.
Global economy
Climate Adaptation Summit Launches Adaptation Action Agenda 2030 (IISD Reporting Services)
The Climate Adaptation Summit (CAS) 2021 launched the Adaptation Action Agenda 2030 and Decade of Action, establishing practical climate adaptation solutions and plans leading to 2030. The Adaptation Action Agenda 2030, which will guide the Decade of Action towards 2030, joins over 50 partners to establish initiatives aimed at concrete actions and partnerships to increase climate resiliency. The Action Agenda is designed to complement the SDGs and promote progress towards the adaptation and resilience goals of the Paris Agreement on climate change, and encourages partners to collaborate to deploy knowledge tools, technical assistance frameworks, digital innovation, financing solutions, and youth empowerment programmes to support adaptation projects.
Lessons from Africa on climate change adaptation | World Economic Forum
The Earth’s changing climate is already having major consequences for the environment and society. While these impacts highlight the need to cut greenhouse gas emissions, they also show that communities around the world will need to adapt to manage the changes around them. But agreeing on and implementing adaptation decisions can be complex, requiring careful consideration of multiple factors and perspectives, plus balancing different priorities over different timescales.
But there are no blueprints for this learning process. Instead, we have to make progress through trial and improvement. In this article, we unpack insights from a new open-access book on building adaptation and resilience in Africa.
Half of UK exporters to EU are having Brexit difficulties, survey finds (The Guardian)
Half of British exporters to the EU are facing difficulties with mounting Brexit red tape and border disruption after a month of the new rules, according to one of the most comprehensive business surveys since leaving the bloc. The British Chambers of Commerce (BCC) said that 49% of UK-based exporters in a survey of 470 firms had suffered problems with post-Brexit arrangements since the start of the year, as companies struggled to adapt and faced higher costs due to extra border checks and paperwork. Little more than a month into the UK’s new relationship with Brussels, the leading business lobby group warned that urgent action from both the British government and the EU was necessary to solve severe issues with cross-border trade. It said UK companies were facing extra costs, delays in shipments to and from the continent, mountains of new paperwork and were often confused about whether particular rules applied to them or not.
E-commerce negotiations: Members finalise “clean text” on unsolicited commercial messages (WTO)
At the first meeting of the year on e-commerce negotiations, held on 5 February, co-convenor Ambassador George Mina (Australia) commended WTO members for finalizing a clean negotiating text on the issue of unsolicited commercial messages, otherwise known as spam. Ambassador Mina said that 2021 is a critical year for the e-commerce initiative and stressed that members need to intensify the pace of talks to deliver on the goal of substantial progress by the 12th Ministerial Conference (MC12) due to take place this year.