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Digital economy is the biggest industry created during COVID-19: Economist (SABC News)
Economist Ntombana Mbele says the biggest industry that was created during COVID-19 in South Africa is the digital economy. Mbele’s comments come ahead of the virtual State of the Nation Address in Cape Town, which will be delivered by President Cyril Rmaphosa on Thursday evening at 7pm. The main industries in the country have always been mining, manufacturing, construction, construction, trade and transport. Mbele says there has been a lot of investment into the digital economy and inter-Africa trade has also accelerated.
Presidential Employment Stimulus making significant strides (SAnews)
President Cyril Ramaphosa’s ambitious drive to inject much-needed jobs into South Africa’s COVID-19 ravaged economy is beginning to bear fruit. This much is evident in the second progress report on implementation of the Presidential Employment Stimulus released by the Presidency on Tuesday. The stimulus, which targets the employment of 600 000 youths, was announced by President Ramaphosa during his address to a joint sitting of Parliament in October. As part of the Economic Reconstruction and Recovery Plan, the Presidential Employment Stimulus is designed to respond to the rise in unemployment caused by the Coronavirus pandemic.
Plans to reopen SA land borders at an advanced stage: Border Management Agency (Eyewitness News)
Plans to reopen South Africa’s land ports next week are at an advanced stage, according to the Border Management Agency. Parliament’s Home Affairs portfolio committee was briefed on preparations for the reopening on Tuesday. The plans were aimed at preventing a repeat of the massive congestion that occurred at some land ports such as Beitbridge, Lebombo and Maseru during December and January. Acting commissioner at the agency, Gene Ravele, told Parliament that the congestion at land ports of entry over the festive season was largely due to insufficient numbers of Health Department staff to carry out PCR tests for COVID-19. South Africa closed its land borders on 11 January and intended to reopen them on Monday, 15 February.
Tourism sector has lost billions of rands, shed more than 300 000 jobs: Deputy Minister (Engineering News)
South Africa’s tourism industry has lost billions of rand and more than 300 000 jobs due to the hard lockdown since the outbreak of Covid-19. Deputy Tourism Minister Fish Mahlalela said the impact of Covid-19, accompanied by the hard lockdown, severely affected the tourism sector both locally and internationally.
New SA tax law: a bold step for loop structures and exchange control (Business Day)
In line with the stated intention to modernise SA’s existing exchange control system, three tax laws were promulgated on January 20. SA tax law stepped boldly into 2021, firmly in line with the government’s stated intention to modernise the country’s existing exchange control system. In 2020, finance minister Tito Mboweni announced the Treasury’s intention to transform the current exchange control environment into a capital flow management framework. This was first announced during the 2020 national Budget Review, and essentially proposed an overhaul of exchange controls to take place over 12 months.
Agri SA calls for more commercial sector involvement in driving growth (Engineering News)
Industry organisation Agri SA says President Cyril Ramaphosa will have to spell out the role of the commercial sector clearly in his upcoming State of the Nation Address. The organisation also wants the President to highlight the factors that undermine this sector’s contribution to the economy and the country’s progress in general.
SA Canegrowers pleads for continued sugar masterplan commitment (Engineering News)
The South African Canegrowers Association (SA Canegrowers) has called on President Cyril Ramaphosa and relevant Ministers to fast-track the commitments under the Sugar Industry Masterplan. This is owing to sugarcane growers suffering from existing threats to the industry, including cheap sugar imports and the Health Promotion Levy, in addition to the economic effects from Covid-19.
Smoke and mirrors: UN data shows Ramaphosa’s investment drive is barely alive (Daily Maverick)
According to The United Nations Conference on Trade and Development (UNCTAD), foreign direct investment flows into South Africa in 2020 almost halved to $2.5 billion from $4.6 billion in 2019, which was a 15% decline from around $5.4 billion in 2018. The cumulative total over the three years amounts to $12.5 billion, which can seem like a really big number in rand terms. But President Cyril Ramaphosa in 2018 set an investment target of $100 billion over five years, and at an investment conference in Sandton in October of that year, no less than $55 billion in investment pledges were made by various titans of industry.
Africa’s miners and winemakers toast China’s row with Australia (Reuters)
Over the past three months, exports of South African wine to China jumped 50%, according to the Wines of South Africa trade body, and hopes are high for even more sales once Australian stocks are polished off during China’s Lunar New Year holiday. The lack of trade deals between China and countries in sub-Saharan Africa also means exporters may face an uphill battle. Despite its increasingly important role as an investor on the continent, China only signed its first free trade agreement with an African country, the Indian Ocean island nation of Mauritius, in January. So while some African products may leapfrog Australian goods in the pecking order, they remain at a disadvantage when competing against exports from countries with preferential Chinese trading terms such as Chile, Peru or New Zealand.
Mnangagwa places hope on AfCFTA, NDS1 (NewsDay)
President Emmerson Mnangagwa yesterday said the National Development Strategy 1 (NDS1), an economic blueprint that came into effect last month, will give fresh impetus to Zimbabwe’s economic recovery efforts. In his address to the Africa Reconstruction Global Summit, Mnangagwa also said the African Union Assembly held over the weekend declared 2021- 2031 the “Decade of African Roots and Diasporas”, an initiative which recognises that the African diaspora will be an important cog to the achievement of Agenda 2063. “The repercussions and impact on trade, investment and development [of the AfCFTA] will be far-reaching,” he said.
Rwandan Business Community Speaks Out Ahead of KPA Awards (KT Press)
Rwandans operating businesses through the Mombasa Port located on the Indian ocean in Kenya, stand a chance to win the second East Africa Maritime Awards (EAMA), officials of Kenya Ports Authority have said. The awards scheduled to take place on May 21, 2021 in Mombasa, Kenya, will recognize business operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo (DRC) which use the Port of Mombasa.
What Kenya should do to benefit from US free trade deal (Business Daily)
Kenya is currently negotiating a free trade agreement (FTA) with the United States of America. The timing of the negotiations could not have been more opportune given the expected expiry of the African Growth Opportunity Act (Agoa) in September 2025. Over 90 percent of the tariff lines under GSP qualify for duty-free preferences under Agoa’s eligibility provisions. However, if Kenya’s trade with the US was to be governed by GSP, the country would be unlikely to sustain or improve her export volume into the US since GSP only promises preferential market access for 4,800 product lines, which is not necessarily duty-free.
Chinese, Nigerian presidents exchange congratulations on 50th anniversary of ties (CGTN Africa)
Chinese President Xi Jinping on Wednesday exchanged congratulatory messages with his Nigerian counterpart, Muhammadu Buhari, on the 50th anniversary of the establishment of the two countries’ diplomatic relations. In recent years, the China-Nigeria strategic partnership has shown a sound momentum of development, and has effectively improved people’s well-being in both countries, Xi said.
Rabiu: With AfCFTA, Nigeria Must Avoid Becoming Dumping Ground (THISDAYLIVE)
The Chairman and Founder of the BUA Group, Alhaji Abdulsamad Rabiu in this interview spoke about a wide range of issues which included opportunities in the African Continental Free Trade Area agreement as well as the need to liberalise the cement industry so as to boost production and subsequently crash the price of the commodity.
Nigerian Business Steps In to Buy Vaccines While Government Dithers (Bloomberg)
Some of Nigeria’s biggest companies plan to raise as much as $100 million to purchase coronavirus vaccines as the government of Africa’s most populous nation is facing increasing criticism for not having secured deals with drugmakers. The Coalition Against Covid-19, led by top executives including Aliko Dangote, Africa’s richest man, and Herbert Wigwe, chief executive officer of Access Bank Plc, aims to purchase the 42 million doses allocated to Nigeria by the African Union’s vaccine procurement program, according to a statement Tuesday. It will start with a first tranche of 1 million doses worth $3.45 million, which should be ready for shipment within two weeks once a deposit is paid, the group said in the statement.
AfCFTA national awareness, sensitisation tour begins (Nigerian Tribune)
The National Action Committee on AfCFTA flags off nationwide awareness and sensitisation tour in line with its mandate to prepare Nigeria to take advantage of the AfCFTA Agreement while mitigating its threats to the Nigerian economy. According to a statement by the Committee, Francis Anatogu, Secretary, the National Action Committee on AfCFTA said, “Our mandate at the National Action Committee is to coordinate the activities of private and public sector at Federal and Sub-National levels to implement AfCFTA for benefit of Nigeria and Nigerians. Our strategy is to work with the states based on their areas of comparative advantages and priorities as a way of building up our national export trade and creating jobs at grassroots level.”
Coastal rail line will boost AfCFTA gains, says Buhari (The Guardian Nigeria)
President Muhammadu Buhari, yesterday, said the Kano-Maradi rail line linking the Niger Republic will boost trans-Sahara trade and boost the gains of the African Continental Free Trade Area Agreement (AfCFTA). Describing the rail line as critical infrastructure, he said it would establish an end-to-end logistic supply chain in railway transport services between the North and Southern ports in Lagos and Warri, Delta State. Buhari said when completed, the project would serve the import and export needs of Niger Republic and other countries in the sub-region through Nigerian ports, insisting that the country would earn vast revenues through trade expansion, while Niger Republic would benefit from the ease of transportation logistics at an affordable cost in its import and export businesses.
Stakeholders brainstorm On Liberia’s AfCFTA Status (The New Dawn Liberia)
A major stakeholder’s workshop on the African Continental Free Trade Area (AfCFTA) Agreement has officially opened at the Ministry of Commerce and Industry in Monrovia, with stakeholders emphasizing the significance of the instrument in boosting trade for Liberia. The workshop, being held from February 9-10, 2021, brings together participants from the public and private sectors.
Freight forwarders want government action on ‘nuisance’ charges (Ghanaweb)
The Ghana Institute of Freight Forwarders (GIFF) wants the Ministry of Transport to set up a committee to look into what it describes as arbitrary fees and charges in the shipping business that could stifle the sector. The worrisome fees and charges include administrative or container release fee, container cleaning and detention fee, demurrage, and interest charges on delayed payment of duties. GIFF is also concerned about the mode of calculation of state warehouse rent by Customs. “That’s one very sour point in our business right now, and one thing we are going to do this year is to push for these fees and charges to be regulated,” said Eddy Akrong, president of the institute.
KAA revamps airstrips in fresh plan to boost tourism (Business Daily)
Kenya Airports Authority (KAA) has embarked on expansion and rehabilitation of airstrips and airports as it seeks to open up tourism, boost the movement of cargo and enhance mobility of passengers across the country. The expansion, especially at airstrips, is meant to increase the capacity of these facilities so that they can accommodate larger aircraft such as code C airplanes. “We want to use these airstrips to open up the country for so many things. For instance, the facilities in the North Rift will play a crucial role in evacuation of farm produce for export while those in other areas like Migori will be instrumental in promoting tourism,” said KAA.
Uganda to spend 97pc of domestic revenue on debt repayments (The East African)
Uganda will spend a bulk of its domestic revenue on debt servicing in the next financial year as the country works to resuscitate its Covid-19 battered economy. According to the National Budget Framework Paper 2021/2022 recently approved by parliament, the country’s budget is projected at Ush45.65 trillion ($12.38 billion), of which Ush20.9 trillion ($5.66 billion) will go to debt servicing, against total domestic revenue that is projected at only Ush21.69 trillion ($5.88 billion). This means that 96.7 percent of Uganda’s total domestic revenue – whose tax revenue is projected to be Ush20.13 trillion ($5.46 billion) – will be spent on debt servicing.
Ivory Coast cacao traders want bigger share of local market (Fin24)
Cacao merchants in Ivory Coast on Tuesday attacked a “monopoly” of the world’s major purchasers of the raw material for chocolate, and called for local traders to get a greater share of the national market. In Ivory Coast’s latest broadside at international players in the chocolate business, the Group of Ivorian Traders (GNI) said it was time to “end the monopoly” of six corporations who dominate purchases of locally-grown cacao.” The six multinationals who make purchases in Ivory Coast through their subsidiaries absolutely should be required to systematically allot 20% to 30% of their contracts to Ivorian processors and exporters,” said GNI spokesperson Fabien Guei.
News from Africa and Africa’s international trade relations
6 reasons why Africa’s new free trade area is a global game changer (World Economic Forum)
The arrival of COVID-19 in 2020 has rapidly reshaped countries, societies and communities. Our response to the pandemic has changed political and social systems and created new social norms. Now the world continues to face a plethora of challenges – including climate change, inequality, technological change, migration and displacement – that are both complex and evolving, and which demand collective action. Most pressingly, the full economic impact of the pandemic is still not fully understood: The IMF projected a historic global GDP contraction of 4.4% in 2020 and a partial and uneven recovery in 2021, with growth at 5.2%. And yet, despite these challenges, global leadership and cooperation have been woefully lacking since the beginning of the COVID-19 crisis. During this time, our rules-based international order became more fragile and even “disordered”. We saw a rise of populism, protectionism and nationalism, exacerbated by COVID-19. Citizens’ trust in governments across the world has been eroded, creating fragility in once-stable democracies. Events in the US Capitol last month simply highlight the fragility of the previously thought-to-be-most-stable of democracies. Enter the African Continental Free Trade Area (AfCFTA).
New Head of African Union Faces Daunting Challenges (IDN InDepthNews)
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. Skeptics are already circling President Tshisekedi who has ambitious goals for the AU in 2021. But he faces serious fires burning at home as he ends a troubled alliance with former President Joseph Kabila and is easing out other holdovers from Kabila’s regime. Observers are already wondering how he will handle it all.
What Is Dr. Monique Nsanzabaganwa Bringing to AU? (KT Press)
Dr. Monique Nsanzabaganwa, 49, was elected this Saturday as Deputy Chairperson of the African Union Commission. She will replace Ghanaian, Quartey Thomas Kwesi, and assist Moussa Faki Mahamat who was also reelected as president of the African Union Commission (AUC) for a new term of 4 years. KTPress takes a look at the gap she will leave in Rwanda’s financial sector, and what Nsanzabaganwa could bring on board at the helm of the African Union especially when the continent needs strategic moves to implement the African Continental Free Trade Area (AfCFTA) agreement.
Covid-19: US$500b Needed To Jump Start African Economies (New Zimbabwe)
African Ministers for Finance have unanimously agreed that at least US$500 billion will be required to jump start their economies battered by the Covid-19 pandemic. This came out during a recent virtual meeting for the ministers, which was convened by the United Nations Economic Commission for Africa (UNECA) and the International Monetary Fund (IMF). The continental purse bearers were unanimous in their call for additional liquidity of US$500 billion in Special Drawing Rights (SDR), better market access, more concessional resources and an extension in the Debt Service Suspension Initiative (DSSI), given the prolonged nature of the pandemic.
A new future for Africa (Brand South Africa)
In the first diplomatic event of the new year President Cyril Ramaphosa attended the 51st World Economic Forum (WEF) virtually, under theme “A crucial year to rebuild trust”. The theme builds on the “Great Reset” that WEF founder Klaus Schwab and Prince Charles launched in 2021. The event took place two weeks before President Cyril Ramaphosa hands over the African Union Chairmanship, after a year of leading the continent through one of the most difficult years in human history. In his virtual address President Cyril Ramaphosa addressed the effects of the Coronavirus and the roll out of plan for the vaccinations in the African continent. He also talked to the progress and establishment of the African Continental Free Trade Area (AfCFTA).
Until Africans get the Covid vaccinations they need, the whole world will suffer: Paul Kagame (The Guardian)
The current situation with regard to the access and distribution of Covid-19 vaccines vividly illustrates the decades-old contradictions of the world order. Rich and powerful nations have rushed to lock up supply of multiple vaccine candidates. Worse, some are hoarding vaccines – purchasing many times more doses than they need. This leaves African and other developing countries either far behind in the vaccine queue, or not in it at all.
In this context, the billions of dollars it would cost to distribute vaccines across the developing world is not particularly high, given the return on the investment. Doing so would unlock global commerce, which would benefit all trading nations during the long road to economic recovery that lies ahead of us. We need global value chains to be fully operational again and to include everyone.
Kenya’s President Uhuru Kenyatta prioritizes investing in women in tech (UNECA)
Kenyan President Uhuru Kenyatta says he is determined to double down on efforts to back women entrepreneurs in Africa. Speaking at the online Africa Business Forum, hosted by the Economic Commission for Africa (ECA), he insisted that “our girls are equal in every single manner to our boys” and was committed to “work together not only in Kenya but across the continent, to ensure that women are able to take their rightful place in society.” Asked whether he considered himself a feminist, the President responded positively saying “women have the same capacity, if not greater capacity, than their male counterparts”. He went on to commit himself “both as President and a politician, to do everything I can to ensure that the women in our country get the same, if not more opportunity than their male counterparts.”
EALA sittings impasse added on to Summit agenda (The East African)
The EAC Heads of State Summit may have to determine the regional Assembly’s sittings when they meet on February 27. This follows a lack of consensus among legislators on the number of sittings the East African Legislative Assembly (Eala) should hold in the remaining five months of the 2020/21 financial year. Under the 2020/21 budgetary vote of $97 million, the Committee on General Purpose realigned Eala’s activities in line with a budget allocation of $16 million, but the Council of Ministers called for the reduction of the number of Eala sittings from 21 to 14, a move the Assembly protested saying it was tantamount to micromanaging their activities.
Covax releases distribution plans according to requests by country (The East African)
East Africa will receive close to 10 million doses of Covid-19 vaccines from the Covax Facility, a global initiative aimed at equitable access to the highly sought after vaccines. In an indicative vaccine allocation plan released last week, the Gavi-run facility announced the exact doses of Pfizer-BioNTech and AstraZeneca-University of Oxford vaccines that countries signed up to that they should expect to receive in the coming months, starting now. According to the interim distribution plan, Kenya, Rwanda, South Sudan and Uganda are the only countries that will receive 9,690,960 doses, in proportion to their population size.
African banks may wait until 2024 to return to pre-crisis revenues – IFC (The Africa Report)
Pimenta is a keen observer of the world of African finance. In charge of a committed portfolio of nearly $18bn at the IFC, this Portuguese and French national, who holds degrees from top Paris universities (École Polytechnique and École Nationale des Ponts et Chaussées), Pimenta has spent nearly 25 years working his way up the IFC’s ranks. He talks here about the state of Africa’s financial industry amid the Covid-19 crisis and the challenges that await the continent.
Africa and the IMF – an unlikely duo (ISS Africa)
In the aftermath of the Great Lockdown, the International Monetary Fund (IMF) has been both proactive and relatively empathetic. The organisation has doubled the capacity of its two programmes meant primarily for disaster relief – the Rapid Financing Instrument and the Rapid Credit Facility – since the onset of the pandemic in March 2020. It has disbursed nearly US$90 billion, including more than US$16 billion to Africa. Of the 100 different programmes the IMF has funded over the past nine months, it’s attached just 13 conditionalities. Also, on 8 January the IMF announced it had secured enough funding to maintain its ‘lending capacity at about US$1 trillion for the coming years,’ signalling its intention to continue this aggressive lending. This is good news – Africa’s economic recovery promises to be long and arduous.’ However, it’s also raising eyebrows, as the IMF hasn’t been a frequent protagonist in Africa’s macroeconomic history.
ACTING Launches African Gas 2021 Report, Forecasts Rapid Growth of Gas-to-Power (Africanews)
The African Coalition for Trade & Investment in Natural Gas (ACTING) is pleased to announce the release and publication of its inaugural “State of Play: African Gas” report, providing the most comprehensive resource on Sub-Saharan Africa’s natural gas markets. Low gas penetration rates in sub-Saharan Africa contrast with the vast amount of natural gas reserves found onshore and offshore from Senegal to Mozambique and whose development could lift millions out of poverty and provide the resource the continent needs to industrialise.
The New Creative Sector Workspace – Adapt, Innovate and Thrive Creative Africa Nexus Virtual Event (Afreximbank)
The Creative Africa Nexus (CANEX), a programme put in place by the African Export-Import Bank (Afreximbank) to support Africa’s creative and cultural industries, announces a series of virtual forums in the lead-up to the Intra-African Trade Fair 2021 (IATF2021). Designed specifically for African creatives looking for ways to monetise their content across the digital landscape, the forum will be a space to share, discuss and create solutions that will encourage creatives to find innovative ways to use existing technology to increase their remuneration and thrive in their careers.
Global economy
Ngozi Okonjo-Iweala poised to become first woman to lead WTO (Aljazeera.com)
The incoming chief of the World Trade Organization has a reputation for shaking up the guardians of wealth and power that will come in handy in her new role. Now, with President Joe Biden’s administration’s blessing after the only other candidate withdrew, Ngozi Okonjo-Iweala of Nigeria is poised to become the first woman and the first African to lead the WTO in its 25-year history. She will also be the first American citizen to hold the organization’s top job.
The WTO badly needs to be shaken up. All three pillars of the Geneva-based trade body’s work are under threat. Its usefulness has been called into question as China’s brand of state capitalism increases its footprint on the global economy, fomenting criticism from Brussels to Brasilia. The WTO plans to hold a meeting in the coming days where its members will consider a final decision on Okonjo-Iweala’s candidacy. If none of the WTO’s 164 members oppose her, she will be appointed for a four-year term, with a possible four-year extension in 2025.
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Comment: Reviving world trade amid COVID-19
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More info: WTO Director-General selection process
East Asian economies drive global trade recovery | UNCTAD
Led by trade in goods, global trade recovered in the last quarter of 2020, reducing its overall decline for the year to about 9%, according to UNCTAD’s new Global Trade Update published on 10 February. But while imports and exports of goods grew by about 8% in the fourth quarter of last year, trade in services stagnated as measures taken in the global fight against COVID-19 continued to affect sectors such as travel. The report also finds that COVID-19 has affected countries’ competitiveness in global markets, with some economies gaining market share in certain sectors while losing it in others.
DDG Wolff: WTO must demonstrate soon it can deliver (WTO)
The WTO must demonstrate soon and visibly that it can deliver on subjects relevant to all those who engage in international trade or are affected by it – which is pretty much everyone. This is a political challenge that must be taken seriously. There has to be more than just talk. It is not enough for government leaders to say that they favor multilateralism and then fail to invest enough to attain results.
What should the centerpieces be of the WTO Agenda going forward? I suggest ten: 1) WTO Members must not fail to address Trade and Health; 2) WTO Members must not fail to address Trade and Economic Recovery; 3) WTO Members must not fail to address Trade and the Environment; 4) WTO Members must not fail to address trade in the Global Digital Economy; 5) WTO Members must not fail to provide trade with a Level Playing Field; 6) WTO Members must not fail to make Agricultural Trade less distorted. This is in the best interests of all; 7) WTO Members must not fail to address the central role of trade as a driver of Economic Development; 8) WTO Members must not fail to address Trade and Peace; 9) WTO Members must restore Balance to the world trading system; 10) WTO Members must not fail to address the Governance of the trading system.
On monitoring trade results in the least developed countries (Trade for Development News)
Monitoring, evaluating and learning, or MEL, is the bedrock of a results-driven and adaptive programme. For trade development work, there are specific considerations and complexities. Add to that the capacity constraints in least developed countries (LDCs), and such monitoring must be robust, yet context specific. Effective monitoring enables work that is focused on delivering impact. Having worked across the complex trade environments of 51 least developed and recently graduated countries for more than a decade, the Enhanced Integrated Framework (EIF) has continued to take the lessons learned from this partnership to better address what LDCs need. In this light three core areas can be drawn from this experience.
World economy will lose trillions if poor countries are shorted on vaccines: OECD (Financial Post)
As the Trudeau government is forced to explain delays rolling out COVID-19 vaccines, some of the world’s economic and health leaders are warning of catastrophic financial consequences if poorer countries are shortchanged on vaccinations. At a video meeting convened by the Paris-based Organization for Economic Co-operation and Development (OECD) on Monday, Secretary-General Angel Gurria predicted that rich countries would see their economies shrink by trillions of dollars if they don’t do more to help poor countries receive vaccines.
Debt sustainability and financing for development: A key post-COVID challenge (Brookings Institution)
One of the key challenges and priorities for policymakers in 2021 will undoubtedly be sovereign debt sustainability and the broader issue of financing for development. To be sure, even prior to the COVID-19 pandemic, sovereign debt across sub-Saharan Africa had been increasing due to growing financing needs against the backdrop of insufficient domestic resource mobilization. The 2008-2009 global financial crisis resulted in ultra-low global interest rates and facilitated access to capital markets for many countries that took advantage of investor reach for yield to issue sovereign debt on international capital markets.
With COVID-19 blamed for surge in food prices, can trade facilitation efforts help? (Devex)
The COVID-19 pandemic has disrupted agricultural output and supply chains globally, exacerbating food price increases at a time when economic contraction and rising unemployment have also hit family incomes in low- and middle-income countries. While this threatens to push the 2030 SDGs on food security further out of reach, trade facilitation efforts such as the African Continental Free Trade Area, or AfCFTA, could help. The Food and Agriculture Organization Food Price index surged again in January, climbing 4.3% from December to its highest level since 2014. Sub-indices for cereals, sugar, and vegetable oil – all key for meeting basic food needs – experienced the strongest gains, with meat and dairy prices also increasing by a smaller percentage.
Biden treads carefully around Trump’s combative trade policy (Associated Press)
Biden and his team are tiptoeing around one of Donald Trump’s most divisive signature legacies: His go-it-alone moves to start a trade war with China and bludgeon some of America’s closest allies with a gale of tariffs on their steel, aluminum and other goods. In upending seven decades of presidential support for free trade, Trump vowed to shrink the U.S. trade deficit and restore millions of lost American factory jobs. Yet for now, the Biden administration seems intent on approaching trade with caution and deliberation.
Covid-19 and food security: can emerging economies mitigate rising prices? (Oxford Business Group)
An increase in food prices following the coronavirus pandemic has intensified concerns related to global food security. For emerging markets, this has further underlined the importance of regional cooperation and innovative solutions to help overcome the challenges. The Food Price Index, established by the UN’s Food and Agriculture Organisation (FAO) to track monthly changes in international food prices, rose for the eighth consecutive month in January, primarily as a result of Covid-19. More broadly, the World Bank recently reported that global food prices rose by nearly 20% in the 12 months from January 2020.
Digital Economy Agreements: The New Phase in Economic Alliances (Valdai Discussion Club)
During the crisis year of 2020 a new trend has set in the formation of international economic alliances that was to a significant degree expedited by the unprecedented challenges posed by the pandemic. The emergence of digital economic agreements (DEAs) was a response to the need to forge ahead with opening markets amid the excesses of protectionism, while at the same time addressing the rising demand for digital services and international cooperation triggered by the Covid crisis. The propagation of digital economic accords may deliver a crucial contribution to bolstering the dynamism of the global economy in the face of a massive economic downturn.
Related News
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Country focus
Clothing and Textile Masterplan Brings Hope to Msinga Factory (the dtic)
The South African Retail-Clothing, Textile, Footwear and Leather (R-CTFL) Value Chain Masterplan has brought optimism and delight to many women in rural Keates Drift in Msinga, KwaZulu-Natal. The area, which is one the poorest in South Africa since its shoe factory closed its doors 26 years ago, and left 3000 families without any source of income, is slowly building its way up in the clothing and textile sector.
Third quarter exports grow as economies recover – TIPS (Engineering News)
South Africa’s exports have benefitted from the recovery of the Chinese economy and rising global demand for commodities, such as precious stones, which has led to growth exceeding pre-Covid-19 lockdown levels during the third quarter of 2020, Trade and Industrial Policy Strategies’ (TIPS’s) third-quarter ‘Export Tracker’ shows. The Export Tracker found that South Africa’s exports for the third quarter of 2020 grew by 9.2% year-on-year and by 40.2% quarter-on-quarter, amounting to R388-billion.
Infrastructure roll-out to support economy needs basic service delivery over long term (Engineering News)
Addressing the current fiscal imbalance in the economy through accelerated and efficient infrastructure procurement and achieving the objectives of the National Development Plan (NDP) requires a strategic focus on not just the short-term, but the medium- to long-term delivery of basic services in South Africa, says industry body the South African Institution of Civil Engineering (SAICE). To revitalise and rebuild the South African economy, the government must focus on five key pillars that are fundamental to service delivery, namely technology, skills development, grass-roots society, sustainability and integration of key institutions to have a common vision linked to the objectives of the NDP.
Kenya Airways makes history by converting Boeing Dreamliner into cargo aircraft (CGTN Africa)
Kenya Airways (KQ) and privately held aerospace company Avianor have made history with the first-ever cabin cargo repurposing of a Boeing 787 into a so-called “preighter”. A “preighter” is a passenger aircraft that has been converted to carry cargo. The term, and the need for preighters, came about as a result of the ongoing coronavirus pandemic. The joint project between Kenya Airways and Avianor will help meet the growing demand for increased cargo capacity as well as the demand for essential and medical goods while supporting future commercial opportunities thereby contributing to the stimulation of the local and regional economies. It also demonstrates Kenya Airways and Avianor’s role as trailblazers in the aero industry.
Kenya hinging on digital technologies to transform economy post-COVID (Kenya Presidency)
President Uhuru Kenyatta has hailed the contribution of digital technologies to Kenya’s transformation saying ICTs are helping the country to create employment opportunities for its youth and enhance delivery of public services. On the African continent, the President observed that digital technologies have enabled both Governments and the private sector to continue operating optimally despite the disruptions caused by the Covid-19 pandemic. “In the face of containment measures necessitated by the pandemic (Covid-19), technology has kept governments and businesses running; and enabled international cooperation and engagements, such as we are involved in today to be sustained,” the President said.
Manufacturers of hand sanitizers decry substandard products (The Independent)
Manufacturers of hand sanitizers have decried the presence of substandard and counterfeit products on the market. The demand for hand sanitizers shot up in April last year following the outbreak of coronavirus in Uganda, as Ugandans learnt that it was an effective way of killing almost of all germs. By October 2020, at least 210 companies, both small and large-scale had been certified by the Uganda National Bureau of Standards, to manufacture hand sanitizers. The emergency need for prevention of the pandemic forced UNBS to invoke the provisions of the standards developed in 2013 for hand sanitizers and septic agents or disinfectants, to ensure quality standard products on the market.
Uganda’s Suubula e-commerce Platform Launches Mobile Apps; Eyes Africa Free Trade Area (chimpreports.com)
Suubula.com, Uganda’s fastest-growing online marketplace, has launched its mobile applications to promote African-made goods after the African Continental Free Trade Area (AfCFTA) became operational on January 1, 2021. The digital platform provides unlimited space to traders, innovators and producers to list their goods and services targeting millions of customers. “Now that the AfCFTA is operational, Uganda and the rest of Africa must exploit this intra-Africa trade milestone to market and sell their goods online across the continent,” said Suubula CEO Camble Hope.
Zimbabweans develop barcoding for Covid-19 certificates (The Herald)
Barcoding is now generated automatically in a system developed by Zimbabweans and already exported to other Sadc countries to identify genuine Covid-19 certificates as those checking the codes are able to immediately see who was tested and when, along with the result. A number of people have been arrested for issuing fake Covid-19 certificates, while Klossad Laboratories was shut down after some of its employees were exposed for facilitating the practice. Ministry of Health and Child Care spokesperson Mr Donald Mujiri yesterday said the barcoding came through a public-private sector partnership to add security to genuine certificates and make counterfeits easy to detect.
Zimbabwean agribusiness companies eye Dubai to boost trade (Emirates News Agency)
Dubai is seeing growing interest from Zimbabwean agribusiness companies that are keen to leverage the emirate as a strategic hub for boost trade, industry experts said during a recent webinar. The virtual forum, organised by Dubai Chamber’s representative office in Mozambique in cooperation with DEAT Capital, DP World and Dubai Exports, examined existing trade synergies between the UAE and Zimbabwe and identified high-potential bilateral business opportunities in the agri-business sector.
In his keynote address, Dr. Masuka stated that Zimbabwe remains steadfast in its drive to re-engage with the rest of the world in doing business to grow its exports and ultimately realise its Vision 2030. The minister elaborated on the Zimbabwean government’s new strategies and noted that “Zimbabwe is open for business from seed to fork”, and described the virtual forum as an “appropriate and opportune as it supports our objective to diversify and grow exports.”
COVID-19 Pandemic Pushes Rwanda into Recession, Severely Impacts Human Capital (World Bank)
The Rwandan economy has fallen into its first recession due to the COVID-19 (coronavirus) pandemic and could potentially compromise years of gains in poverty reduction. Released today, the 16th edition of the World Bank Rwanda Economic Update, Protect and Promote Human Capital in a post-COVID-19 World, says the country’s gross domestic product (GDP) is estimated to have dropped by 0.2 percent in 2020, compared to a projected expansion of 8 percent before the COVID-19 outbreak. This dire economic effect has severely adverse implications for households, as thousands are facing unemployment, revenue losses and increased consumption prices are pushed into poverty.
Burundian Products set to Access Wider Regional Markets (COMESA)
Burundi export products are set to access the larger regional market following improvement of their quality standards. This has been made possible through the provision of laboratory equipment to the agency responsible for Standardization and Quality Control (BBN) in Burundi. The equipment, provided under the COMESA Regional Integration Support Mechanism (RISM), include a UV spectrophotometer, a flame photometer, a pH meter, a fiber analyzer, a distillation unit for protein analysis, a sugar analyzer, an alcohol analyzer, an oxygen and carbon dioxide analyzer.
Nigeria records $2.9bn in annual oil and gas exports in November (Premium Times)
Nigeria sold $2.89 billion worth of oil and gas between November 2019 and November 2020, the Nigerian National Petroleum Corporation has said. The country suffered significant loss of revenue in 2020 due the fall in oil prices as a result of the coronavirus pandemic. In its report, the NNPC sad it recorded a trading surplus of N13.43 billion for the month of November 2020, up by 54 per cent when compared to the N8.71billion surplus recorded in October 2020.
Five Questions About Nigeria’s Road to Recovery (IMF)
The COVID-19 pandemic has placed Nigeria at a critical juncture. The country entered the crisis with falling per capita income, high inflation, and governance challenges. Policy adjustments and reforms designed to shift the country from its dependence on oil and to diversify the economy toward private sector-led growth will set Nigeria on a more sustainable path to recovery. The IMF’s latest economic assessment of Africa’s largest economy recommends exchange rate reforms and strengthened efforts to increase government revenues.
Naira depreciates as external reserves decline persists to $36.12bn (Vangurad)
The naira last week buckled under the weight of increased dollar demand, depreciatiating in both the parallel market and the Investors and Exporters (I&E) window, even as the nation’s external reserves declined further to $36.12 billion last week. Data from the Central Bank of Nigeria (CBN) showed that the external reserves fell to $36.116 billion Wednesday last week from $36.395 billion Wednesday the previous week. This translated to a $279 million week-on-week (w/w) decline and it represents the second weekly decline in the reserves since December 17th.
Outlook 2021: Eyeballing Major Economic Indicators in 2020 - Trade Balance (Proshare Nigeria Limited)
Nigeria’s merchandise trade balance as of Q3 2020 stood at N8.37trn. The trade balance increased by +34.15% when compared with the previous quarter (Q2 2020) while it declined by -8.85% when compared with Q3 2019. Nigeria’s crude oil exports amounted to N2.42trn, non-crude oil exports N561.18bn, non-oil exports N214.65bn. This reveals that Nigeria’s export revenue base is weak and is still heavily reliant on oil export revenue as its main source of foreign exchange earnings. The rise in Nigeria’s imports could be attributed to the pent-up import demand for machinery, mineral products, chemical & allied products. On the other hand, the significant decline in export could be attributed to the decline in lower oil prices and OPEC + production cuts
Nigeria’s China’s major investment destination in Africa (Vanguard)
Despite its fragile economy in recent years, Nigeria remains Chinese major investment destination in Africa, the Chinese Embassy in Nigeria said on Monday. Addressing a media event in Abuja to mark 50 years of Nigeria-China relations, the Chinese Charged de Affaires in Nigeria, Mr. Zhao Yong, disclosed also that China’s trade with Africa has hit $208.7 billion with foreign direct investment totalling $49.1 billion. Yong stated: “Despite the adverse effects of the Covid-19, the bilateral trade volume from January to October of 2020 increased by 0.7% year on year, which was 14% higher than the trade growth rate between China and Africa as a whole. Nigeria surpassed Angola and South Africa respectively to become China’s second largest trading partners and largest export market in Africa.
Sisi Affirms Egypt’s Full Support for Advancing AU Institutions (Egypt State Information Service)
President Abdel Fattah El Sisi on Saturday 06/02/2021 reaffirmed Egypt’s full support for achieving the desired goals for advancing the African Union and its institutions, fully implementing the Agenda 2063 and its first 10-year plan and putting the 2021 theme “Arts, Culture and Heritage” into force. Addressing the 34th African Union summit, Sisi greeted Congolese President Felix Tshisekedi on assuming the AU chairmanship, wishing him success in addressing the current challenges, including the repercussions of coronavirus pandemic, the implementation of the pan-African Free Trade Agreement, and the activation of recommendations for the institutional, financial and administrative reform of the African Union.
India-Tunisia Business Council launched with collaboration of Ministry, Trade and Academia (Businessworld)
The India Tunisia Economic Forum held recently gave impetus to the growing possibilities between India and Tunisia. Indian Economic Trade Organization organized this event which was attended by representation from the Ministry of External Affairs, Govt. of India, Ministry of Foreign Affairs based in Tunis, business owners, Academia, and industrialists. The Forum raised major concern over expanding trade and tourism between India and Tunisia. An MOU was signed between Tunisia Africa Business Council and Indian Economic Trade Organization by Anis Jaziri, President, Tunisia Africa Business Council and Dr Asif Iqbal, President of the IETO.
News from Africa and Africa’s international trade relations
Zambia is latest country to ratify the African Continental Free Trade Area (AfCFTA) agreement (UNECA)
Zambia has submitted the instruments of its ratification of the African Continental Free Trade Area (AfCFTA) agreement to the African Union Commission, AUC Chairperson Moussa Faki Mahamat said. “I was delighted to receive the Ambassador of the Republic of Zambia HE Emmanuel Mwamba, alongside AU Commissioner Albert Muchamba, who deposited the instruments of ratification to the AfCFTA, making Zambia the 36th AU member to fully accede to the agreement,” Mr. Mahamat said on 5 February 2021. With Zambia’s ratification, only 18 member states are left to comply with the requirement.
See tralac’s Status of Ratification infographic
African ministers meet with IMF, ECA on immediate economic response to COVID-19 (UNECA)
The Executive Secretary of the Economic Commission for Africa (ECA), Vera Songwe, on Friday 5 February 2021 met with African Ministers in charge of finance and the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, to discuss immediate economic response to the COVID-19 pandemic. During the virtual meeting, which was convened by the ECA and IMF, the ministers were unanimous in their call for additional liquidity, $500 billion in Special Drawing Rights (SDR), better market access, more concessional resources and an extension in the Debt Service Suspension Initiative (DSSI), given the prolonged nature of the pandemic.
On access to the markets, Egypt’s Minister of Finance, Mohamed Maait, said “there’s a strong case for vulnerable countries to access the markets at affordable rate to afford essentials such as PPEs and food for their populations.” The objective of the meeting was to “seek IMF support in forging a way out of the crisis by transforming existing liquidity instruments and easing market access to alleviate the debt burden and provide much needed liquidity for the continent,” said Ms Songwe.
Africa SDG Report Adds Index on Leaving No One Behind (IISD Reporting Services)
The 2020 edition of the Africa SDG Index and dashboards report, published by the Sustainable Development Goals Center for Africa and the Sustainable Development Solutions Network (SDSN), shows the status of 52 African countries in terms of progress towards the 17 SDGs. The 2020 edition also introduces a new index on the 2030 Agenda’s overarching ambition of leaving no one behind. On responding to COVID-19 in 2020, the report indicates that countries in Africa have reallocated resources and took early measures to lock down activity and curb the spread of the virus. In Sub-Saharan Africa, this prevented the speed of growth in cases and mortality that occurred elsewhere.
Digitisation Can Help Africa’s Supply Chain Meet Demand (Taarifa Rwanda)
While it is likely few people outside the supply chain industry would have given much thought to the sector before 2020, it didn’t take long for Covid-19 to change that. Across Africa, informal merchants and logistic firms alike battled to navigate the unpredictable supply and demand brought about by the pandemic. We all felt the impact of the supply chain under strain. Even the most basic and essential goods were difficult to come by. And the challenge is not over yet. With recent announcements around Covid-19 vaccines from Pfizer and other pharmaceuticals, conversations around finding solutions to this global manufacturing and distribution issue have come to the fore.
Africa’s digital transformation risks becoming trapped in geopolitical competition (Mail & Guardian)
Expanding internet connectivity is not a new issue in Africa. Despite some progress, notably in internet coverage, the growing usage gap (access to the internet, but the inability to use it) has been steadily increasing. In sub-Saharan Africa, it went from 36% in 2014 to 49% in 201, which is twice the global average. This is because of several factors, including the affordability of data and handsets, as well as digital literacy. The Covid-19 pandemic further galvanised the debate on connectivity in Africa. In connected regions of the world, accessible, reliable and affordable internet allowed children to continue their education uninterrupted.
The Tax and Investment Desk of Centurion Plus Launches the AfCFTA Impact Report (Africanews)
The long-awaited African Continental Free Trade Area (AfCFTA) is finally operational, wherein trading commenced on the 1st of January 2021. This marks a celebrated milestone for intra-Africa trade. The AfCFTA eliminates tariffs on 90 per cent of goods produced on the continent, tackles non-tariff barriers to trade and guarantees the free movement of persons. While the private sector in Africa has been grappling with dealing with the effects caused by the COVID-19 pandemic, the AfCFTA provides for key benefits such as open borders, improved contracts, and better structured value chains.
Taking this into account, the Tax and Investment Desk of Centurion Plus launches the AfCFTA Impact Report, which will provide critical business impact assessment, especially for multinational companies and investors conducting business in Africa under AfCFTA protocols. This will be a bespoke report for each entity and will be powered by Centurion’s fully integrated resource base of country-qualified and internationally mobile professionals in all 54 countries in Africa.
The Launch of Team Energy Should be a Rallying Call for Africa’s Private Sector (Africanews)
The African Energy Chamber participated in the launch of Team Energy, an initiative of the UN Economic Commission for Africa (ECA) to create an informal grouping of African clean energy investors, project developers, and institutions dedicated to the fight again energy poverty. Team Energy aims at serving as a catalyst for transformative private sector investments in clean energy under the ECA’s SDG7 Initiative. The initiative was launched at the end of the 4th Africa Business Forum of the ECA, which was opened by H.E. Uhuru Kenyatta, President of the Republic of Kenya and Dr. Vera Songwe, Executive Secretary of the ECA.
Impact of African Continental Free Trade Area agreement (AfCFTA) on Africa’s energy sector (Engineering News)
The AfCFTA envisions to expand intra-African trade and intensify regional integration by successively eliminating tariffs on 90% of product categories. Successful implementation of the agreement is set to have a profound impact on the continent’s energy sector. Regional integration pertaining to energy represents a viable solution for emerging economies, to enhance their energy landscapes in furtherance of realizing social, environmental and economic benefits. Regional integration is pivotal to ensure that energy resources get from localities where they are most affordable, to where they are required.
The 2021 Africa Energy Indaba is set to assemble leaders from the regional and international power and energy community to discuss the status of critical projects, identify lucrative investment and development opportunities, how best to capitalise on those prospects, as well as to share industry best practice.
Regional Task Force Meeting on the Review of the EAC Common External Tariff (CET) (East African Business Council)
The Regional Task Force Meeting on the Review of the EAC Common External Tariff (CET) took place in Nairobi, Kenya recently. The meeting was attended by experts from the EAC Partner States, EAC Secretariat, EABC and TradeMark East Africa (TMEA). In his remarks during the closing session of the meeting, EABC CEO, Dr. Peter Mathuki urged EAC Partner States to stop competing with each other but instead take note of each other’s comparative advantage to boost Intra-EAC trade. He further emphasized the following: Noted the importance of the CET in encouraging forward & backward value addition in the manufacturing sector; Emphasized the importance of “Buy East Africa, Build East Africa”; Appreciated the Partner States for the progress made in finding convergence of the tariff lines under consideration for the rate above 25%; and Urged Partner States to fast track the finalization of the comprehensive review of the CET to spur local production & increase Intra-EAC Trade.
Executive Secretary of the Southern African Development Community (SADC), Her Excellency Dr Stergomena Lawrence Tax, on 8 February, 2021 paid a virtual courtesy call on the Incoming Chairperson of SADC, His Excellency Dr Lazarus McCarthy Chakwera, President of the Republic of Malawi, as Malawi prepares to assume the rotational Chairship of SADC at the 41st Summit of Heads of State and Government. H.E. Dr Tax informed the Incoming Chairperson that the strategic direction of SADC is guided by the Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and the SADC Vision 2050 which were adopted by the 40th SADC Summit in August 2020. These are based on a firm foundation of Peace, Security and Democratic Governance and are premised on the three pillars of Industrial Development and Market Integration; Infrastructure Development in Support of Regional Integration; and Social and Human Capital Development.
COVID-19 pandemic leaves Germany’s Africa policy in limbo (DW)
An important date was missing from German Chancellor Angela Merkel’s calendar last year – the annual summit with African Heads of States and Germany’s business elites. The meeting has become a routine in Berlin since 2017. German companies would not have been able to make many investment commitments anyway. “The coronavirus pandemic is having a significant impact in Africa due to lockdowns in almost all countries and the consequences of the measures we have taken to combat the pandemic,” said Günter Nooke, Merkel’s Africa representative.
Figures from Germany’s investment bank do not look good either: German net direct investments in sub-Saharan Africa from January to September 2020 were €698 million ($840 million) – around €171 million less than in the same period in 2019. Nevertheless, the government wants to stick to its policy. “Concentrating on investments by private companies in Africa and on self-sustaining economic development remain the right thing to do, irrespective of the pandemic that comes our way,” Nooke told DW.
Top 10 Issues that will Strengthen Africa-China Ties in 2021 (The African Exponent)
Over the years, the relationship between Africa and China has been the basis for many debates, with critics divided on whether the partnership has done more harm than good to the African continent. But it is difficult to ignore that certain underlying issues will continue to strengthen African-China ties in the new year, regardless of the enormous criticisms that have trailed the relationship in recent years. Below are 10 issues that will contribute to strengthening African-China ties in 2021.
UK’s five offers for East Africa to come out stronger from current challenges (The East African)
This is an extraordinary moment for all nations as we wrestle with huge, interlinked challenges, including the Covid-19 pandemic, climate change, economic uncertainty and a range of security threats. To meet these challenges and come out stronger on the other side, we need to work together more closely than ever. The UK has a unique offer for East Africa – and that is what I have been discussing during my visit to the region last week, meeting leaders in Kenya, Sudan and Ethiopia.
The first element of our offer must be working together to tackle Covid-19. Second, we are deepening our trade partnerships and supporting countries to build free and open economies. Third, we are building our partnership on security, which is a pre-condition for prosperity. Fourth, we want to work together to tackle climate change, which is vital for security, resilience and sustainable development in the region. Fifth, the UK is a longstanding leader in development – the World Bank said the UK is the only country to meet the needs of the world’s poorest during the pandemic.
EU-Africa partnership must reflect ‘realities of African agriculture’ (EURACTIV)
Future agrifood partnerships between the EU and Africa take into account the realities of farming in Africa, especially in the context of a drive for a greener transition, agrifood stakeholders have warned. The comments come in the context of talks between the two continents aimed at agreeing a new EU-Africa ‘strategic partnership’. The European Union is reshaping its approach to Africa, hoping to promote long-term sustainable food systems and help their people cope with the side-effects of the COVID-19 pandemic. However, visions for a green transition must be keeping with the specific circumstances on the African continent, stakeholders highlighted during a recent event on sustainable food systems and trade.
Global economy
US Chamber of Commerce drives for FTAs with Kenya, UK (Fibre2fashion.com)
The US Chamber of Commerce has come out in strong support of efforts to negotiate free trade agreements (FTAs) with the United Kingdom and Kenya. The one with Kenya may serve as a model for future trade and investment engagement with Africa, it said, urging the US administration to favorably explore these FTAs and continue halted negotiations.
WTO chief: Why the choice of an African woman is a big deal (DW)
The election of a new director-general requires the consensus of all WTO members. The Nigerian economist Ngozi Okonjo-Iweala already had broad support from World Trade Organization (WTO) members, including China, the European Union, the African Union, Japan and Australia. Her challenger, Yoo Myung-hee, the South Korean trade minister, withdrew her candidacy last Friday. “I know that she will discharge her duties very well as she has done in a lot of jobs she has held before,” Dr. Shamsudeen Usman, a former minister of national planning, told DW. The WTO, a Geneva-based body tasked with promoting free trade, has been without a permanent leader since Roberto Azevedo stepped down a year earlier than planned at the end of August 2020.
Participants in domestic regulation negotiations for services commit to maintain momentum (WTO)
Participants in the negotiations on services domestic regulation reaffirmed on 4 February their commitment to reaching a “meaningful” outcome by the 12th WTO Ministerial Conference (MC12) when they met for the first time in 2021. Noting participants’ intention to “maintain momentum”, the Chair, Jaime Coghi of Costa Rica, reported the shared view that an outcome by MC12, due to take place this year, was “viable”. In an effort to streamline procedures required for services suppliers to operate, remove red tape and enhance transparency and predictability of regulatory frameworks, the negotiations aim to reduce the costs of doing business and facilitate businesses’ participation in international services trade.
Poor Countries’ Technology Dilemma (Project Syndicate)
Economic development relies on the creation of more productive jobs for an ever-rising share of the workforce. Traditionally, it was industrialization that enabled poor countries to embark on this transformation. Factory work may not have been glorious, but it enabled farmers to become blue-collar workers, transforming the economy and society as a result. Many low-income countries in Africa and elsewhere hope to travel a similar path in the future. There’s a rub, however, in Africa’s manufacturing renaissance. Even where industrialization is putting down deeper roots, few good jobs have been created in the more modern, formal, and productive manufacturing branches.
The West vs the Global South: You Have the Numbers. We Have the Money (Inter Press Service)
When the 134-member Group of 77, the largest single coalition of developing countries, was trying to strike a hard bargain in its negotiations with Western nations years ago, one of its envoys famously declared: “You have the numbers. We have the money.” But that implicit threat – signifying the power of the purse – did not deter the G77 from playing a key role in helping shape the UN’s socio-economic agenda, including sustainable development, environmental protection, universal health care, South-South cooperation, eradication of extreme poverty and hunger.
Social development key pillar for ‘sustainable and resilient’ world – Commission hears (UN News)
“The COVID-19 pandemic is a stark reminder of the key role social development plays in protecting people’s lives and livelihoods, as well as the planet”, Munir Akram, Pakistan’s UN Ambassador and the President of the Economic and Social Council (ECOSOC) told the in-person opening session of the Commission for Social Development in New York. He upheld that it is also “one of the critical pillars” for making the world “more sustainable and resilient”.
The Green Climate Fund and Adaptation Finance: How to help climate-vulnerable and fragile states adapt to climate change (Flood Resilience Portal)
The evidence is clear: climate finance is not going to the most climate-vulnerable countries and populations. The majority of the most climate-vulnerable countries received less than $20 per person per year in climate change adaptation financing from 2010–2017. This is particularly troubling as climate change is already affecting the lives and livelihoods of communities in climate-vulnerable countries, especially in fragile states. For example, from 2004-2014, 58% of disaster-related deaths occurred in the top 30 fragile and conflict-affected countries.
Nation vows to keep up good work in poverty alleviation (Chinadaily USA)
China’s achievements in poverty reduction and its new pledges to consolidate last year’s results were not made easily, especially in the face of the challenges posed by the COVID-19 pandemic. A recent report by the United Nations Conference on Trade and Development said the pandemic has been affecting poorer nations disproportionately by fueling mass unemployment, pay cuts and deficits. Against such headwinds, China will work to create mechanisms to monitor the recurrence of poverty and keep empowering vulnerable farmers, according to a Communist Party of China Central Committee proposal unveiled in November.
2021 a ‘crucial year’ for climate change, UN chief tells Member States (UN News)
António Guterres was speaking to Member States meeting as part of the preparations towards the latest annual UN climate conference, known as COP26, which will be held in Glasgow, Scotland, in November. Originally scheduled for last year, it had to be postponed due to the COVID-19 pandemic. “The world remains way off target in staying within the 1.5-degree limit of the Paris Agreement,” Mr. Guterres told ambassadors. “This is why we need more ambition, more ambition on mitigation, ambition on adaptation and ambition on finance.” Describing 2021 as “a crucial year in the fight against climate change”, the Secretary-General looked to Member States to build on this momentum on the road to Glasgow.
US-China phase one trade deal largely a ‘failure’, new study suggests (South China Morning Post)
A large part of the phase one trade deal between China and the United States that entered into force almost one year ago was a “failure”, according to a new report, although “several elements are worth keeping and building upon”. The US and China signed their long-awaited deal in January 2020. As part of it, China committed to buying US$200 billion in additional goods and services over 2020-21 on top of 2017’s levels. But a report released by the Peterson Institute for International Economics on Monday, US exports of phase one goods to China in 2020 fell more than 40 per cent short of the target.
15 Fastest Growing Developing Countries in 2020 (Yahoo! Finance)
In this article we are going to list the 15 fastest growing developing countries in 2020. The fastest growing developing countries in 2020 are from various locations geographically, with Africa surprisingly having its fair share of entries. We have used both the IMF’s identification of developing countries and its latest report on the real GDP growth of the countries to come up with our rankings. Rather than simply use one year’s rankings, especially in a year as volatile as this one, we have used the last decade i.e. from 2011 to 2020 to ascertain the actual fastest growing developing countries.
Related News
tralac Daily News
Country focus
What economic trends can we expect from 2021? (Moneyweb.co.za)
Following the volatile year for the global and domestic economies in 2020, we expect 2021 to see an improvement, though uneven across economies. South Africa’s economic recovery depends on several factors, some controllable and others uncontrollable, with the most important one being the logistics of Covid-19 vaccines. Which factors will drive the economic recovery this year and beyond?
Alcohol bans force South African wineries to rethink trade plans (News24)
The government's rationale for imposing bans is twofold – to discourage large gatherings and to ease the burden on hospitals from alcohol-related accidents. The most recent shuttering of liquor stores was accompanied by a 9 pm curfew, and supporters of the policy were quick to highlight the unusual lack of admissions to emergency rooms over the new year. "During the early onset of the second wave everything was still open, so we had surgeries and trauma," said Marc Mendelson, head of infectious diseases at Groote Schuur Hospital in Cape Town.
Industry bodies including the Liquor Traders' Formation have warned of the impact on smaller sellers, particularly in poor communities, while highlighting a surge in illegal trade. There's also been a hit to the National Treasury from a slump in tax revenue. Yet Distell Group Holdings, South Africa's biggest wine and spirits producer, reported Wednesday that domestic revenue held steady during the six months through December, despite losing 41 trading days. The maker of mass-market wines such as Nederburg and Two Oceans got a boost from
At this rate, South Africa will not meet Paris Agreement decarbonisation goal, says PwC (Engineering News)
Professional services firm PwC says the world needs to cut carbon intensity five times faster to meet the Paris Agreement commitments. A decarbonisation rate of 11.7% a year is now required to keep warming within 1.5 °C above pre-industrial levels, which is five times greater than the 2.4% rate that was achieved going into 2020. The PwC 'Net Zero Economy Index' shows that, based on current trends in energy consumption and carbon dioxide (CO2) emissions generation, the century’s global carbon budget would be used up by the end of this decade.
Despite Covid-19 hazard, auto industry hopeful of 2021 sales recovery (Engineering News)
This year should see the South African automotive industry claw back some of the losses experienced in 2020, despite the second wave of Covid-19 raging across the globe. Market commentators believe the 2021 South African new-car market should improve on last year, and that the used-car market will be able to retain its buoyancy this year. Also, new-vehicle exports should witness some growth, while the potential tide of job losses at retail level has been stemmed.
Digital mobile lenders lock defaulters out of platforms (Business Daily)
Unregulated digital mobile lenders have limited lending to a select customer to curb loses after the Central Bank of Kenya banned them from forwarding the names of loan defaulters to credit reference bureaus (CRBs).Digital Lenders Association of Kenya (DLAK) chairman Kevin Mutiso said the lenders initially stopped offering any loans in March and April but later resumed, targeting only the borrowers who had a good repayment history. “We stopped lending in March through April and May but we had to make decisions so we wrote off all bad loans. We are currently only lending to the best customers, those who understand that they have to pay,” he said. “Most borrowers initially were borrowing with no intention to pay back.”
SMEs to benefit from Sh110b Africa free trade area facility (The Standard)
Small businesses in Kenya are set to benefit from a Sh110 billion trade facility to boost their market expansion under the African Continental Free Trade Area (AfCFTA). This is ahead of a planned roll out of a payment facility to ease currency convertibility across the continent. AfCFTA Secretary-General Wamkele Mene said they were working with commercial banks across the continent to pool funds which would be guaranteed by governments. “This trade facility will help SMEs overcome the challenge of access to new markets which is not because of lack expertise but capital,” he said. Mr Mene said they are working with Afremixbank to develop a payment facility which is currently being piloted in six African countries.
New taxes & tax increases: An explainer (Mmegi Online)
Botswana Minister of Finance & Economic Development, Dr Thapelo Matsheka announced a number of tax changes whilst presenting the national budget on Monday, February 1, 2021 These tax changes come against the backdrop of constrained government mineral revenues as well as a dip in SACU and domestic tax collections which were occasioned by COVID-19. Below are the tax changes the Minister proposed to Parliament.
AfCFTA: NESG advises FG to strengthen domestic value chains (Nairametrics)
The Nigerian Economic Summit Group (NESG) has stated that for the FG to maximize the Africa Continental Free Trade Area (AfCFTA) agreement, it needs to direct its efforts into strengthening domestic value chains and also develop an efficient land border system for exports. The NESG Chief Mr. Laoye Jaiyeola stated that the rules of origin trade measures would be a major factor in reducing risks needed to make the agreement feasible, citing some nations might not be transparent with it. He added that transport infrastructure is necessary for a diversified trade economy over commodity export-dependent nations
RwandAir suspends flights to three African destinations (The New Times)
RwandAir, the national carrier has with immediate effect suspended its flights to three southern Africa routes owing to the emerging global concerns of Covid variants prevalence in the area. According to a statement released on Monday, February 8, suspended routes include Johannesburg, Cape Town, Lusaka and Harare. “Scheduled flights will resume as soon as there is more clarity on the situation”, the airline said in a statement posted on Twitter.
Reports indicate that South Africa, was among the countries which detected new variants of Covid-19, a few weeks ago. Other countries include Brazil, Britain among others. However, with the variants spreading across the Southern Africa region, experts say that this will arguably make the fight against Covid-19 more demanding.
Uganda: Business Activity Declines for the First Time in Seven Months (East African Business Week)
Business activity declined for the first time during the past seven months, the headline Stanbic Purchasing Managers’ Index (PMI) dipped below the 50.0, posting a reading of 49.8 from 51.2 in December 2020. Business conditions deteriorated for the Ugandan private sector during January due to a reduction in new orders which caused a fall in employment as the country went through the General Elections period. The PMI is a composite index, calculated as a weighted average of five individual sub-components: New Orders (30%); Output (25%); Employment (20%); Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%).
Morocco's trade deficit eases 23.1%, tourism receipts halve (The North Africa Post)
Morocco’s trade deficit shrunk 23.1% as the pandemic lowered both imports and exports with tourism being the worst hit sector.... North Africa Post's news desk is composed of journalists and editors, who are constantly working to provide new and accurate stories to NAP readers.
News from Africa and Africa’s international trade relations
Dispatch of millions of COVID-19 vaccines to Africa expected to start in February: WHO (UN News)
Matshidiso Moeti, WHO Regional Director for Africa, highlighted that the deployment is a “critical first step” to ensure countries access to vaccines. “Africa has watched other regions start COVID-19 vaccination campaigns from the side-lines for too long. This planned roll-out is a critical first step to ensuring the continent gets equitable access to vaccines”, Dr. Moeti said. The roll-out of the AstraZeneca/Oxford AZD1222 vaccine is subject to the vaccine being listed for emergency use by WHO, which is currently reviewing the vaccine and the outcome is expected soon, according to the agency. Amid surging demand for COVID-19 vaccines, the final shipments will be based on production capacities of vaccine manufacturers and the readiness of countries, WHO added, noting that recipient countries are required to submit finalized national deployment and vaccination plans to receive vaccines from the COVAX facility.
Start Of AfCFTA Trading A Shot In The Arm For Intra-African Trade (Mondaq)
Trading within the African Continental Free Trade Area (AfCFTA) began on 1 January 2020, marking a significant milestone for intra-African trade. This is a historic turning point for Africa, where only approximately 16-18% of trade currently takes place between member states. Under AfCFTA, now the world's largest free trade area, and the auspices of the African Union (AU), the continent intends to increase this percentage exponentially.
Most of the trade undertaken by African nations is with the rest of the world, which is a reality that the AfCFTA Agreement wants to change. Africa's exports to the rest of the world are primarily raw materials, inclusive of extractive materials like oil and minerals, while its imports include manufactured goods, such as automobiles, aircrafts, electronics, pharmaceuticals, machinery and engineering products, among others. Therefore, the value of the goods imported by African countries far outweighs the exports they make to the rest of the world, affecting the balance of trade of African countries.
The AfCFTA -- Can Africa Save Itself? (Economic Confidential)
Africa is an incredibly rich continent. That richness, however, has not translated into wealth for Africans. Africa’s oil and gas and gold and diamonds and copper and cobalt have made Africa a target for stronger external powers for centuries. As a result, one in three Africans (some 422 million people) lives below the global poverty line (and that is a pre-COVID-19 statistic). Generations after the greatly exaggerated death of colonialism, over half of African nations’ exports are raw materials (the top five are oil, gold, diamonds, natural gas, and coal). While African farmers grow and export cash crops like coffee, cocoa beans, and tobacco to make ends meet, African net food imports are expected to triple by 2025, and undernourishment is projected to increase 33 percent over the same time period. The more things change, the more they stay the same.
Africa’s most precious resource, however, is not its arable land, its mineral commodities, or its precious metals. Africa’s most valuable resource is its people
In the coming decades, as the rest of the world ages and searches for new, growing export markets, Africa looks poised to be the only real game in town. The challenge facing African nations will be turning its human capital and resource wealth into a blessing rather than a curse – into leveraging its strengths to increase prosperity and dignity rather than being taken advantage of for yet another generation. Enter the African Continental Free Trade Agreement (AfCFTA), which came into effect on Jan. 1, 2021. The AfCFTA, signed by 54 out of 55 African nations (get with the program, Eritrea!) and currently ratified by 35, is arguably the most ambitious free trade agreement ever agreed to in world history. According to the World Bank, the AfCFTA will increase real income gains by 7 percent, will lift 100 million people out of extreme and moderate poverty, and increase continental production by over $200 billion.
African states to trade in local currencies under AfCFTA (Xinhua)
African states will be able to trade in their local currencies for intra-Africa trade under the African Continental Free Trade Area agreement (AfCFTA), an official said on Thursday. Wamkele Mene, secretary-general of the AfCFTA Secretariat told journalists in Nairobi that the trading bloc is working with the African Export and Import Bank (Afreximbank) ) to establish a payment and settlement platform to eliminate the need for currency convertibility. "When the platform is fully operational, African companies will be able to transact with their counterparties in other Africa countries in their local currencies," Mene said.
AfCFTA Workshop Opens At Commerce Ministry (Liberian Daily Observer)
The Ministry of Commerce and Industry (MoCI), is expected to conduct a two-day stakeholders’ Workshop on the African Continental Free Trade Area (AfCFTA) in Monrovia from February 9-10, 2021. The African Continental Free Trade Area (AfCFTA) was established in January 2012, in Addis Abba, Ethiopia, and entered into force on January 1, 2021, with a focus on creating a single African market for goods and services.
The overall objective of the two-day workshop is to create awareness and build capacity of participants on the implementation of the AfCFTA Agreement, solicit feedback from Liberian service providers on trade restrictions faced in other African countries, as well as seek high level political buy-in to facilitate the ratification of the Agreement.
Updates from the 34th AU Summit
The COVID-19 pandemic remains a severe health emergency that has caused great suffering and hardship across the African continent and globally. The African Union however is committed to ensure all its member states benefit are part of, and benefit from the continental efforts to prevent and contain the pandemic especially with the rollout of the vaccination programme. The Assembly of Heads of State and Government during the opening of its 34th Ordinary Session held virtually on 6 February 2021, committed to strengthen the collective response to the crisis, marshalling resources for the benefit of all, and striving to ensure that no country is left behind.
Although relatively less affected than other parts of the world, Africa has not been spared by the deadly virus. The incoming Chairperson, H.E. Felix Tshisekedi, President of the Democratic Republic of Congo applauded the ingenuity and resilience shown by African countries in the fight against the pandemic. “Let us organize together, with our international partners, for a great offensive against these various scourges. It is imperative that our organization can strengthen the African Centre for Disease Control and Prevention (Africa CDC) in order to respond effectively to emergencies and complex health challenges, as a specialized technical institution of the African Union”, he stated.
H.E. President Tshisekedi observed that collaboratively with the Regional Economic Communities, the Union will strengthen peace and security; pursue the operationalization of the African Continental Free Trade Area; promote a renaissance of African culture, arts and heritage; combat climate change; accelerate integrative projects, including the construction of the Inga Dam; consolidate the African Union's initiatives in the fight against Covid-19 and in the prevention of other diseases. He further added that drawing the lessons of the pandemic, in addition to strengthening health systems, the time has come to invest more in education and scientific research. He observed that it is of highly strategic interest that each Member State earmark a large part of its income for the development of its human capital, which is the main wealth, the only one that can be effectively mobilized to solve its specific problems and face global challenges.
Chadian Moussa Faki retains top AU post (The East African)
Chadian Moussa Faki Mahamat has been re-elected chairperson of the African Union Commission, getting an endorsement from nearly all voting members of the continental bloc. The vote, decided on Saturday evening, saw Mr Faki elected unopposed, something that had always been expected after the AU said he was the only contender. He got 51 votes out of 55 with three abstentions and one other member being ineligible to vote. Faki’s victory is the highest in the African Union’s history and he got 15 more votes that he did last time, even though this vote only went through one round. He will be deputised by Rwandan banker, Dr Monique Nsanzabagwana, who was until Saturday the deputy governor of the Rwandan central bank. Her election went through rounds that were mostly an East African affair. She defeated Uganda’s Prof Pamela Mbabazi and Djibouti’s Hasna Bakarak Daoud.
New AU Chair has his hands full (The Southern Times)
DRC’s President Felix Tshisekedi will lead the African Union for a year after he takes over from South Africa’s President Cyril Ramaphosa at the virtual AU Summit scheduled for the weekend of February 6-7. And he will have a lot on his plate; juggling critical matters at home and on the continent. According to Wanyama Masinde, Professor of Regional Integration and Director of the Centre for Regional Integration in Nairobi, Kenya, President Tshisekedi is taking over at the AU even before settling down at home and stabilising his own country. “Therefore his hands were already full. We only hope that he finds time to lead the AU,” Prof Masinde said.
The Assembly of Heads of State and Government of the African Union has re-elected Moussa Faki Mahamat from the Republic of Chad, as the African Union Commission Chairperson for another four year term from 2021-2024. The election took place on 6 February 2021 during the ongoing 34th Ordinary Session of the Assembly which is being held virtually due to the containment measures instituted as a result of the ongoing Covid-19 pandemic. Mr. Faki sought a second term mandate for the position of AUC Chairperson following the end of his first term tenure (2017-2020). The Chairperson of the AU Commission is elected by the Assembly for a four-year term, renewable once. The Chairperson of the AU Commission is the Chief Executive Officer, legal representative of the AU and the Commission’s Chief Accounting Officer Faki will be deputised by Dr. Monique Nsanzabaganwa from Rwanda. Dr. Nsanzabaganwa secured the majority of votes in a highly contested position which saw two other female candidates vying for the post. Dr. Nsanzabaganwa becomes the first female to occupy the position of the Deputy Chairperson.
President Felix-Antoine Tshisekedi Tshilombo, Takes Over as the New Chairperson of the AU for 2021
The Heads of State and Government of the African Union (AU) have elected H.E. Felix- Antoine Tshisekedi Tshilombo, President of the Democratic Republic of Congo (DRC), as the new Chairperson of the African Union for the year 2021. The event took place today, Saturday 6 February 2021 during the ongoing Thirty-Fourth (34th) Ordinary Session of the Assembly of the Union, holding virtually under the theme: “Arts, Culture and Heritage: Levers for Building the Africa We Want”.
Given the prevailing context of the COVID19 pandemic, the handing over ceremony between the incoming and outgoing Chairs of the African Union was organized in a hybrid mode, both at the Conference Center of the African Union in Addis Ababa, Ethiopia, where the newly elected Chair of the Union, President Tshisekedi was taking part physically, in the solemn handing over ceremony at the podium of the AU Mandela Hall, in the presence of H.E. Moussa Faki Mahamat, Chairperson of the African Union Commission (AUC), while the outgoing Chair Ramaphosa, was taking part virtually all the way from South Africa.
In his acceptance speech, President Tshisekedi said it is a unique privilege for the Democratic Republic of the Congo be given this opportunity as Chair of the African Union at a symbolic and highly significant moment when “we are celebrating the sixty years of the disappearance of a worthy son of the Congo and Africa, Mr. Patrice Émery Lumumba, who strongly believed in the great destiny of Africa. He did not hesitate to organize, in August 1960 in Kinshasa, then Leopoldville, the last Congress in the history of the great movement of Pan-Africanism. On June 30, 1960, shortly before his tragic death, he declared [I quote]: "Africa will write its own history and it will be in the north and south of the Sahara, a history of glory and dignity".
This pandemic has been a stark reminder of both our vulnerability and our interconnectedness as a human race. As a continent, we identified several priorities for the year.
We agreed to focus on the promotion of peace and security as part of the effort to Silence the Guns in Africa, to support economic development and integration through the operationalisation of the African Continental Free Trade Area, to advance the economic empowerment of women, and to support good governance and democracy. Yet, within a matter of weeks, the coronavirus pandemic forced us to urgently reprioritise both our programmes of action and the deployment of our resources.
Our most immediate and pressing concern was to manage the impact of the pandemic on our people. We worked with urgency to develop the Africa Joint Continental Strategy for COVID-19 and have effectively implemented it through the various structures of the AU. We have been ably led by the AU Bureau, which has been at the forefront of coordinating responses by member states.
In responding to the pandemic, we have been at the forefront of innovation. We established the ground-breaking Africa Medical Supplies Platform to assist AU Member States to access affordable medical supplies and equipment. Our response to COVID-19 has been driven, coordinated and capacitated by our own scientists and medical experts, mainly located within the Africa Centres for Disease Control and Prevention. And now it is our own African Vaccine Acquisition Task Team that is leading our efforts in the next frontier of the pandemic, to acquire vaccines for the people of Africa.
Kagame calls AU to prioritize domestic health financing (The New Times)
President Paul Kagame has called on African Union member states to prioritize domestic health financing especially in light of the Covid-19 pandemic to improve health outcomes and resilience. Kagame was speaking at the 34th Ordinary Session of the African Union Assembly which was held virtually, where he presented a progress report on the Institutional Reform of the African Union as well as an update on domestic health financing. Kagame said that without strong national health systems, the continent will remain vulnerable to pandemics.
African Union must reform to stay relevant - Nigeria's Buhari (Thomson Reuters Foundation)
The African Union must conduct a comprehensive reform if it is to stay relevant, Nigerian President Muhammadu Buhari said at the close of the bloc's two-day summit on Sunday. Nigeria is Africa's most populous nation and the largest economy on the continent, making it an influential member of the 55-nation bloc that was formed to promote international cooperation and harmonise member states' policies. The bloc decided in 2016 it needed to work on changes to make it more nimble, focused and accountable, putting Rwanda's President Paul Kagame in charge of the process. "Global realities demand that the AU be overhauled, if it must remain relevant in intergovernmental processes," Buhari said in a statement at the conclusion of the virtual summit.
African Union Commission End of Term Report 2017-2021
In this report, we take stock of the past four years of the AU Commission and make recommendations for the Union in charting the future. As we do so, we are cognisant that we built on the work of the Commission that preceded us. We have made progress, but there is still work to be done in realising our Continent’s aspirations and strengthening our Union. We focussed on implementation of key priorities laid out in Africa’s 50-year blueprint - Agenda 2063. We are making progress, albeit uneven, in beginning to realise its aspirations. In the last four years, the African Continental Free Trade Area was signed, and entered into force in the shortest time ever witnessed for negotiations of a trade agreement of this size. Coupled with the launch of the Open Skies Initiative and the Free Movement Protocol, the potential to accelerate integration is great and should be capitalised.
Africa Needs Focus on Infrastructure, Supply Chain, Skills (Fibre2fashion.com)
The textile and apparel industry in Africa has grown rapidly in the past couple of years, and is estimated to grow at a compounded annual growth rate of around 5 per cent over the next five years. Even faster growth is possible if the countries pay attention to grey areas like infrastructure, strategic supply chain and skill management. Fibre2Fashion takes a look at some individual nations in the continent.
All set for ECA’s fourth Africa Business Forum featuring Presidents Kenyatta & Tshisekedi (UNECA)
All is set for the Economic Commission for Africa’s (ECA) Fourth Business Forum, a unique gathering of African Heads of State, private sector executives and young ICT leaders and innovators which provides an invaluable opportunity to be part of a dialogue on business and development in Africa. At its fourth session, which takes place on 8 February 2021, the Africa Business Forum will focus on accelerating the role of the private sector through innovative financing to build forward towards achieving the Sustainable Development Goals
Miracles of Our Own Making: How CEMAC Countries Can Emerge Stronger from the Economic Crisis (By Leoncio Amada NZE) (Africa Newsroom)
When the International Monetary Fund (IMF) said that the pandemic-ravaged global economy shrunk by 4.4% in 2020, the news probably surprised no one. The world has not experienced an economic decline so dramatic since the Great Depression, and very few of us have escaped COVID-19's financial tumult. Over the past 12 months, only China's economy grew. Everywhere else, stock markets cratered, businesses shuttered, and unemployment rates climbed to new highs.
As vaccines have started their roll-out, however, signs of recovery, however tentative, are emerging. While this sounds a hopeful note, what the future looks like remains difficult to predict. Uncertainties abound, and how they play out will determine who's right: the optimists, who believe that
More vaccines for SADC countries (The Southern Times)
SADC countries are harmonising efforts to co-ordinate vaccination of the region’s population against COVID-19, with private sector players also coming on board to augment the efforts of the bloc and of individual countries. Last week, SADC Chair President Felipe Nyusi of Mozambique called on the region to establish a vaccine manufacturing facility, a position that the bloc’s Executive Secretary, Dr Stergomena Tax, has publicly backed. This week mobile telecommunications operator MTN donated US$25 million to procure seven million doses of COVID-19 vaccines. This is in addition to what the regional bloc, the African union and individual countries are sourcing. AU Special Envoy on COVID-19, mobile communications mogul Mr Strive Masiyiwa has said one billion doss of vaccines are expected by December 2021 as the continent targets to vaccinate 60 percent – or 750 million - of its 1, 2 billion population.
Did Africa turn a corner in 2020 or did it just dodge a bullet? (Brookings Institution)
Africa had surprised everybody with its resilience during the coronavirus crisis, says Vera Songwe of the U.N.’s Economic Commission for Africa. African economies had shown the world that they were no longer helpless in the face of big shocks: They could collectively raise nearly $50 billion in resources to combat the crisis and freely tap private credit markets instead of relying on foreign governments and development agencies. This could not have happened without structural progress. The second feature that defines the new Africa is divergence: Half the countries on the continent were middle-income economies, not a collection of low-income least developed economies. Heterogeneity has always characterized Africa; it now defines the region’s economy. The third encouraging development was integration. This year, hopes are even higher because of the African Continental Free Trade Area (AfCFTA) that came into effect on January 1.
Big boost for SADC energy transformation (The Southern Times)
The International Renewable Energy Agency (IRENA) and the Southern African Development Community’s (SADC) Centre for Renewable Energy and Energy Efficiency (SACREEE) have signed an MoU to accelerate deployment renewable energy solutions. The two organisations will also co-operate on policy development, capacity building programmes and regional events aimed at attracting investments to the region. Southern Africa has seen remarkable improvement in electricity access over the past decade. This is largely due to a strong commitment from SADC member states to take advantage of the region’s vast renewable energy potential to improve energy security and meet rising energy demand. As a result, the total share of renewables in power generation rose from 23 percent in 2015 to almost 39 percent in 2018. However, despite significant progress, electricity access remains a challenge.
Biden Signals New Tone on US-Africa Relations (Voice of America)
President Joe Biden delivered a message to African leaders meeting virtually this weekend at the African Union Summit 2021, hosted from Addis Ababa. “The United States stands ready now to be your partner in solidarity, support and mutual respect,” Biden said in a video address, his first speech to an international forum as U.S. president. In his remarks, Biden outlined what he called a shared vision of a better future with growing trade and investment that advances peace and security. “A future committed to investing in our democratic institutions and promoting the human rights of all people, women and girls, LGBTQ individuals, people with disabilities, and people of every ethnic background, religion and heritage,” Biden said. Chairperson of the African Union Commission Moussa Faki Mahamat welcomed the message and said the African Union looks forward to “resetting the strategic AU-USA partnership.”
Global economy
Multilateral Cooperation for Global Recovery (Project Syndicate)
by Emmanuel Macron, Angela Merkel, Macky Sall, António Guterres, Charles Michel, Ursula von der Leyen
We should not be afraid of a post-pandemic world that will not be the same as the status quo ante. We should embrace it and use all appropriate fora and available opportunities to make it a better world by advancing the cause of international cooperation. Comments from Javier Solana, Andrés Velasco, Mark Leonard, Kemal Derviş, et al.
Our world has experienced diverging trends, leading to increased prosperity globally, while inequalities remain or increase. Democracies have expanded at the same time that nationalism and protectionism have seen a resurgence. Over the past decades, two major crises have disrupted our societies and weakened our common policy frameworks, casting doubt on our capacity to overcome shocks, address their root causes, and secure a better future for generations to come. They have also reminded us of how interdependent we are. The most serious crises call for the most ambitious decisions to shape the future. We believe that this one can be an opportunity to rebuild consensus for an international order based on multilateralism and the rule of law through efficient cooperation, solidarity, and coordination. In this spirit, we are determined to work together, with and within the United Nations, regional organizations, international fora such as the G7 and G20, and ad hoc coalitions to tackle the global challenges we face now and in the future.
The pandemic calls for a strong coordinated international response that rapidly expands access to tests, treatments, and vaccines, recognizing extensive immunization as a global public good that must be available and affordable for all. In this regard, we fully support the unique global platform Access to COVID-19 Tools (ACT) Accelerator, launched by the World Health Organization and G20 partners in April.
IMF chief warns of ’lost generation’ if low-income countries don't get more help (IOL)
The head of the IMF on Friday urged advanced economies to provide more resources to low-income countries, warning of an emerging "Great Divergence" in global growth that could risk stability and trigger social unrest for years to come. International Monetary Fund Managing Director Kristalina Georgieva told reporters that 50 percent of developing countries were at risk of falling further behind, which raised concerns about stability and social unrest. To avert bigger problems, she said rich countries and international institutions should chip in more. She also urged heavily indebted countries to seek debt restructuring sooner rather than later, and to boost conditions for growth.
Global Economic Outlook and Policy Priorities (IMF)
As we gather virtually—almost a year on from the start of the pandemic—I would like to share with you how we see the global economy and our outlook for it. I will also take the opportunity to talk about where we should be headed—that is, our policy priorities for the period ahead. And—in keeping with the young, optimistic energy that surrounds me virtually with you all today—I will end with what the IMF believes is a once-in-a-generation opportunity that lies ahead of us.
Our immediate priority, must be to bring the health crisis under control. As we look toward recovery, we must consider the potential of lasting scars imposed by the pandemic—such scars could emanate from interrupted schooling, dislocated workers, idled skills, investments on hold, and new technology on standby. Given the gravity of this crisis, our second priority must be to maintain economic lifelines and policy support in countries where the virus is surging. This will help protect households and prevent bankruptcies of otherwise viable firms, enabling a faster rebound once constraints are lifted.
Advanced economies with more fiscal space are, of course, expected to recover faster; but, around half of all emerging markets and developing economies—who were previously converging with advanced economies in per capita income—are now expected to diverge. Which is why, our third priority must be to reverse this dangerous divergence between rich and poor countries. The IMF is calling for a synchronized investment in green and digital infrastructure, as the pandemic starts to come under control.
UNCTAD launches tool to transform economies amid global crisis (Kenya Broadcasting Corporation)
UNCTAD has launched a new tool to help developing countries improve their development policies, reduce poverty and build economic resilience to negative shocks such as the coronavirus pandemic, which has devastated economies across the world. The Productive Capacities Index (PCI) is an online portal with publications, manuals, resources and tools that allow policymakers to measure their countries’ performance in achieving their national development goals, as well as their ability to meet the UN’s Sustainable Development Goals (SDGs).
“As countries fight the coronavirus crisis, their need to build economy-wide productive capacities for inclusive and sustainable growth is greater than ever,” said UNCTAD Secretary-General Mukhisa Kituyi while launching the tool.
Success of circular economy hinges on better governance of ‘waste trade’ (UNCTAD)
In 2019, countries traded 550 million tons of used materials – such as scrap plastics, metals, electronics, paper and second-hand clothes – worth $315 billion. Since the vision of a global circular economy hinges on turning waste into resources, China’s decision highlights the urgent need to better understand and monitor this trade. By reducing primary production, secondary materials (recyclable waste) offer immense economic and environmental benefits beyond cutting water consumption and CO2 emissions.
A network analysis of trade data after China’s ban provides important insight into the complex relationships in the trade of plastic waste.
1. Scrap flows towards weaker regulations.
2. Regional characteristics matter.
3. Low tariffs hinder environmental policy.
4. Illicit trade grows in the shadows of waste.
Investment decline in productive assets spells trouble for poorer nations (UNCTAD)
Foreign direct investment (FDI) flows to developing economies have shown relative resilience to the COVID-19 crisis, falling by just 12% in 2020 compared with the staggering 69% collapse recorded by richer economies. Overall, developing countries attracted a record 72% of global FDI last year, according to an UNCTAD Investment Trends Monitor published on 24 January. But the steep decline in greenfield announcements and international project finance in Africa, Asia and Latin America and the Caribbean is a cause for major concern. “These investment types are crucial for productive capacity and infrastructure development and thus for sustainable recovery prospects,” says James Zhan, UNCTAD’s director of investment and enterprise development.
Pandemic caused 'staggering' economic, human impact in global south, study says (UC Berkeley)
The onset of the COVID-19 pandemic last year led to a devastating loss of jobs and income across the global south, threatening hundreds of millions of people with hunger and lost savings and raising an array of risks for children, according to new research co-authored at the University of California, Berkeley. The research, published today (Feb. 5, 2021) in the journal Science Advances, found “staggering” income losses after the pandemic emerged last year, with a median 70% of households across nine countries in Africa, Asia and Latin America reporting financial losses. By April last year, roughly 50% or more of those surveyed in several countries were forced to eat smaller meals or skip meals altogether, a number that reached 87% for rural households in the West African country of Sierra Leone.
EU Parliamentarians strongly back India-South Africa proposal for COVID-vaccine patent waiver (ANI News)
Members of the European Parliament have backed a joint proposal by India and South Africa for waiver on intellectual property rights for COVID-19 vaccine patents. In a letter addressed to the European Union leadership dated Wednesday, 14 members of the European Parliament (MEPs) have called for a moratorium on the suspension of Covid-19 vaccine patents.
The MEPs' said, "South Africa and India sent a joint proposal to the World Trade Organization requesting an exemption from patents and other intellectual property rights concerning drugs, vaccines, diagnostics, personal protective equipment, and other medical technologies throughout the pandemic and this proposal is still pending." They added: "We ask the European Union to evaluate to support the adoption of a moratorium that allows the suspension of patents and the sharing of technology, data, know-how, allowing generics manufacturers to contribute to increasing global availability, including through support for India and South Africa's proposal at the WTO."
WTO dithers on TRIPS waiver as COVID-19 vaccine gaps grow (The Caravan)
As countries around the world have started vaccinating their residents against COVID-19, the unequal distribution of vaccines between rich and poor countries has become obvious and alarming. Since October, the World Trade Organisation has been debating a proposal initiated by India and South Africa to waive obligations under the Trade-Related Aspects of Intellectual Property Rights or TRIPS agreement to make COVID-19 technologies, including vaccines, quickly accessible to across the world. During the TRIPS council meeting on 4 February, developed countries continued to oppose movement on the proposal.
Doubt cast on benefit to UK of joining trade accord (Chinadaily)
The United Kingdom wants to develop unfettered trade links around the world to offset upheavals from Brexit, but its move to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, presents limited benefits, analysts said. He Yun, an associate professor at the School of Public Administration at Hunan University in Changsha, said the UK government needs to prove that it is capable of negotiating trade deals after the country's departure from the European Union, and the CPTPP constitutes low-hanging fruit. "The CPTPP's benefits for the UK economy will be limited," she said of the country's sought-after participation in a free-trade zone centered on the Asia-Pacific region. "First, distance matters in trade. Air and sea freight carrying goods will be too expensive for the CPTPP to substantially lower the costs of the UK to trade with the rest of the bloc.
"Second, what the UK needs most is to expand the international markets for its services, which is suffering as a result of losing its passporting right to the EU market. But the CPTPP is thin on services."
World's Best Trade Finance Providers 2021 (Global Finance)
Goods nevertheless continued to move across borders, however, thanks in large part to fast action by authorities. In any crisis, there’s an immediate demand for liquidity; and at the start of the pandemic, governments and central banks stepped in with liquidity for the markets. As one issue dissipated, however, another started. Some companies had to expand their supply chains and find new sources. Among their biggest challenges were understanding tax implications and export-import regulations—and establishing their reputations in new arenas. “Trade is essentially all about trust, and many of the banking propositions are around those instances where the trust isn’t there,” says Ebru Pakcan, global head of trade on the Treasury and Trade Solutions team at Citi. “How does the bank, as the intermediary, help a company build that trust?” Technology, in some cases, furnished solutions. Banks and other providers embraced digitization strategies and introduced efficiencies into their processes that ultimately lowered costs, helped corporates manage their balance sheets and attracted new investors. Since trade finance is highly regulated and paper-based, processes can be repetitive and manually intensive.
The range of solutions, improvisations and transformations that the best trade finance banks adopted last year are reflected in the selections made by the editors of Global Finance, with input from industry analysts, corporate executives and technology experts, across 102 countries and eight regions.
Why the silence on vaccines from BRICS partners Russia and China? (IOL)
As South Africa is the only African member of the BRICS community, questions have been raised about why procurement of vaccines from member states such as China and Russia were not mentioned in the president’s speech recently.
“We have secured 12 million doses in total from the global Covax facility, which has indicated it will release approximately 2 million doses by March. We have secured 9 million vaccine doses from Johnson & Johnson, commencing with delivery in the second quarter. Johnson & Johnson has contracted Aspen, one of our pharmaceutical companies, to manufacture these vaccines in South Africa,” said the president. Ramaphosa said, in addition, Pfizer had committed 20 million vaccine doses commencing with deliveries in the second quarter and this must be lauded. However, the issue is the loud silence about leveraging on close ties with Russia and China (BRICS allies) in order to widen the supply source for vaccines and maybe reduce the cost of procurement. While the president stated the government was in advanced negotiations with manufacturers to secure additional supplies, there was no mention of the BRICS advantage enjoyed by the bloc's only African member.
US backs Africa's candidate for top WTO job (The New Times)
Africa’s candidate for the World Trade Organisation’s top job, Ngozi Okonjo-Iweala, is set to become the first woman to lead the global body after the United States backed her bid Friday, February 5. “The Biden-Harris Administration is pleased to express its strong support for the candidacy of Dr. Ngozi Okonjo-Iweala as the next Director General of the WTO,” reads a statement by the United States Trade Representative. “Dr. Okonjo-Iweala brings a wealth of knowledge in economics and international diplomacy from her 25 years with the World Bank and two terms as Nigerian Finance Minister,” the statement added.
Ngozi Okonjo-Iweala set to make history at WTO (BBC News)
Having survived the murky waters of politics in Nigeria, where her mother was kidnapped to send her a message, and rising to number two at the World Bank, Ngozi Okonjo-Iweala should have no trouble dealing with international trade negotiators in her new job at the World Trade Organisation (WTO). The 66-year-old will be the first woman and the first African to occupy the position.
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Country focus
SA expands trade relations across three continents (News24)
South Africa is one of three key markets to join the World Logistics Passport Global Reach Programme, a trade-boosting programme aimed at increasing trade spanning nine countries across three continents. Mike Bhaskaran, CEO of the World Logistics Passport, said the trade programme was a major policy initiative established to increase trading opportunities between emerging markets. Bhaskaran said South Africa, India and Indonesia joined Colombia, Senegal, Kazakhstan, Brazil, Uruguay and the UAE in a club of trading nations sharing expertise to smooth trade flows around the world.
“The World Logistics Passport increases resilience in global supply chains and removes the barriers that prevent developing economies from trading as freely as they might, which is more important than ever as governments around the world seek to recover from the economic impact of Covid-19,” said
Can SA trust the EU’s commitment to fair trade? (BusinessLIVE)
The EU would appear to have one rule for the 27 member states with its trade defence policies, and quite another when it comes to its behaviour towards SA. The EU has emphasised once again its commitment to fair trade. One of SA’s new year hopes would be that it lives up to this commitment in 2021. For some in SA, and particularly its poultry industry, the EU has a history of saying one thing and doing something completely different.
SA’s new energy path gains momentum (Mail & Guardian)
South Africa is on track to meet its post Covid-19 energy needs while reducing its dependence on coal in the current low economic growth scenario, but also when economic growth accelerates in the second half of the decade to 2030. This was affirmed by Minister for Minerals and Energy Gwede Mantashe when he spoke at the third South African Investment Conference (SAIC), held virtually in November last year.
“Energy security in the context of the IRP 2019 is defined as South Africa developing adequate generation capacity to meet its demand for electricity, under both the current low-growth economic environment, and even when the economy turns.” The IRP sets South Africa on a path to pursue a diversified energy mix that reduces reliance on a single or a few primary energy sources. South Africa has a particular need to reduce its dependence on coal in order to reduce emissions. In order to achieve this goal, the IRP allocates the biggest growth to renewable energy for the next decade.
Namibia: Ministry embarks on broader consultation for national budget (New Era)
The Ministry of Finance, which has commenced with drawing up the 2021/22 National Budget, has urged all Namibians to ensure their voices are heard through a broadened open budget initiative. The 2021/22 budget, tentatively scheduled to be tabled by mid-March, is expected to be severely constrained due to subdued economic activity that has seen revenue decrease significantly.
Rich Kenyans triple dollar deposits in pandemic era (Business Daily)
Well-off individuals and companies seeking to safeguard their wealth tripled their dollar deposits to Sh88.1 billion in dollars in the nine months to November last year when Kenya’s economy was in a Covid-linked slump and the shilling weakened steeply against the greenback. Latest data by the Central Bank of Kenya(CBK) shows that the value of dollars stockpiled in banks crossed a record Sh714 billion in November compared to Sh625.9 billion in February just before the country reported its first case of Covid-19 infection on March 13 —triggering restrictions to curb the spread of the virus. The value of the dollar deposits between February and November 2020 represents a 219 percent leap when compared to a similar period of the previous year when the equivalent of Sh27.63 billion was banked.
Tourism gropes in the dark of losses related to Covid-19 (The East African)
Kenya’s hoteliers estimate the country lost in excess of Ksh150 billion ($1.36 billion) in tourism earnings to the Covid-19 pandemic as the tourism industry collapsed across the world. The sector is one of the leading sources of foreign exchange, earning Ksh163.56 billion ($1.54 billion) in 2019, and and which had been expected to grow by one percent in 2020. Tourism contributes 10 per cent of Kenya’s annual GDP and employs over two million people. However, restrictions on travel to combat Covid-19 reduced airline travel and accelerated cancellations of hotel reservations. These measures continue to affect receipts, thereby reducing foreign exchange inflows, and impact service sector-related employment in East African countries with a high dependence on tourism.
Kenya extends e-passport migration deadline to December (Business Daily)
Interior Cabinet Secretary Fred Matiang’i displays the new e-passport launched at the Nairobi immigration offices on August 31, 2017. PHOTO | NMG The government has extended the deadline for migrating to the e-passport by another 10 months due to disruptions arising from the Covid-19 pandemic. Interior Cabinet Secretary Fred Matiang’i made the announcement on Thursday, saying the new deadline is December 31. Kenya has been phasing out the old-generation passports as part of a binding commitment to migrate to the new EA e-passport.
Flower jobs surpass pre-Covid-19 levels (Business Daily)
Flower firms are now employing more people than they did in the pre-Covid period, signalling the continued recovery of the sector that was one of the hardest hit by the pandemic. A survey of flower farms carried out by the Central Bank of Kenya (CBK) ahead of last week’s Monetary Policy Committee meeting showed that the number of workers currently employed exceeds the headcount in February 2020 by 13 percent.
“Relative to the employment numbers by the farms in February, the survey findings show that employment has recovered and exceeded the pre-Covid (February) levels, averaging 113 per cent in December 2020 and January 2021, compared to 87 per cent in November 2020, and 69 per cent in April,” said CBK in the survey.
According to the CBK survey, the flower sector employs over 500,000 people, including over 100,000 engaged directly in flower farms, and impacts over two million livelihoods indirectly.
Investment in infrastructure, innovation now our digital-era focus, (IPPMedia)
Kamando said in Dar es Salaam earlier this week that digital revolution is the backbone of economic, technological and social prosperity after the industrial revolution. He said the importance of digital transformation is crucial for any modern company and more so for the telecommunication industry that has played a central role in rolling out digital solutions in the market. “One of the fundamental pillars of creating a digital society is investing in world-class infrastructure and we have invested heavily on this to build a state of the art network that offers the best user experience,” Kamando said.
Uganda: Government projects public debt to rise to 54.1 per cent by 2023 (Daily Monitor)
Rising expenditure pressures resulting from the need to finance infrastructure projects and an increase in Covid-19 related borrowing will push Uganda’s public debt to 54.1 per cent by the end of the 2022/23 financial year, according projections by the Ministry of Finance. Details contained in the Debt Sustainability Analysis report authored by the Ministry of Finance, indicates that public debt is projected to increase to 49.9 per cent of gross domestic product by June 2021, before peaking to 54.1 per cent by the end of 2022/23 financial year. In the next few years, the Ministry of Finance said, public debt is projected to increase on the account of an increase in the pace of borrowing to finance infrastructure projects, especially in the transport and oil and gas sectors.
Gold makes 44 per cent of Uganda’s export earnings (Daily Monitor)
Gold massively outperformed other export with cumulative earnings hitting $1.7b (Shs6.3 trillion) for the period between December 2019 and November 2020. The earnings represent a 44 per cent contribution out of total exports, which during the period stood at $3.8b (Shs14.3 trillion), according to data from Bank of Uganda. Gold has in the last five years become Uganda’s largest export overtaking coffee, which during the period earned $509m (Shs1.8 trillion), representing a percentage contribution of 13 per cent.
Road Concession: Fed Govt Expecting N1trn Private Sector Investments (Economic Confidential)
The Federal Government is expecting over N1tn from the private sector for the development and maintenance of the 12 highways that it selected for concession under the Highway Development Management Initiative. It was gathered in Abuja on Wednesday that with the funds from private investors, government would be free of the burden of maintaining and rehabilitating the identified roads. It was reported late last month that the Federal Government would receive the Outline Business Case Certificate of Compliance for 12 pilot federal highways billed for concession.
News from Africa and Africa’s international trade relations
Spotlight on the African Union
COVID-19 has not diverted AU’s attention from Africa’s priority issues, says Mahamat (Vanguard)
Chairperson of the African Union (AU) Commission Moussa Mahamat on Friday said that “exceptional situation’’ caused by COVID-19 has not diverted the bloc’s attention from Africa’s priority issues. Although the COVID-19 pandemic “has totally changed the working methods of the AU, it has not diverted the attention of the Union from the continent’s priority issues,’’ Mahamat said during the 38th Ordinary Session of the AU Executive Council held on Wednesday and Thursday. Mahamat expressed his hope that “the year 2021, in spite of the concerns related to new variants of COVID-19, will be prosperous and more fruitful in terms of achieving the developmental objectives of the continent and the world in general.’’ Listing a set of achievements in regional integration such as the launch of the African Continental Free Trade Area and the Single African Air Transport Market.
AU chair admits failures in first term as he seeks second chance (The East African)
African Union Commission boss Moussa Faki Mahamat says the continental body failed to attain some of its goals, including ending violence as a result of “emerging threats”, which overwhelmed member states.
In a speech to African Union’s group of Foreign Ministers on Wednesday, Mr Mahamat said Africa will have to address old and new problems at the same time, if at all the continent can end continual violence. Ahead of the virtual Assembly of Heads of State on February 6, Mr Faki listed the continental free trade area agreement (AfCTA) launched last month, launch of protocol on free movement and the Single African Air Transport Markey (SAATM), concerted efforts to fight disease outbreaks as well as counter-terrorism measures among his successes.
“The year 2020 was initially scheduled as a cut-off year to silence the guns on the Continent, the year from which democratic peace would function as a powerful lever for justice and socio-economic development. Looking at the state of affairs, I note that we have moved only half way,” he told the Foreign Ministers during a virtual sitting of the African Union Executive Council, the second highest organ of the African Union.
Opening Remarks by H.E. Moussa Faki Mahamat at the 38th Ordinary Session of the AU Executive Council
For my part, my Statement will focus on a very succinct presentation of the outcome of the areas of activity of the last four years. Regional integration, Infrastructures, Democratic governance, Peace and security, Institutional reform, Health, Social affairs, Science and innovation, Environment, Food self-sufficiency, bringing the AU closer to the peoples and finally the assertion of Africa on the world stage are the salient features of these priorities.
The panorama of Regional integration, during the term of office, was enriched by a set of achievements, the most striking of which are, among others, the operationalisation of the African Continental Free Trade Area (AfCFTA), launched on 1 January, the launch of the Single African Air Transport Market (SAATM), the adoption of the Protocol on Free Movement and the guidelines for the African Passport….. The progress, if remarkable, still challenges us strongly by the problems which block their effective development. For example, the optimal functioning of the African Continental Free Trade Area depends on two key prerequisites, namely on the one hand, the entry into force of the Protocol on Free movement, whose ratification rate is still below the required threshold and on the other hand the full commitment of all stakeholders, both public and private sector.
Minister Naledi Pandor: 38th Ordinary Session of the Executive Council | South African Government
We are meeting in the context of our global battle against the COVID-19 pandemic. The pandemic has had severe effects on our countries and yet it has also united us in a manner reminiscent of the solidarity that the OAU led against apartheid South Africa. While we are not yet at a level that allows a focus on post COVID recovery, it will be logical to use our precious unity to devise solutions that allow Africa to grow together.
Beyond the pandemic, we also have to ensure our AU executes our agreed reform agenda effectively. We have adopted many decisions since launching the AU, yet we have not yet build fully functional machinery with quality execution, appropriate financial administration and management and a key focus on development. We have made progress in 2021. The implementation phase of the AfCFTA is underway and that is history. We call on AU Member States to finalise all the outstanding issues by June 2021, as agreed during the Extraordinary Summit of 5 December 2021. The vision of Agenda 2063 is realisable if we act with energy and determination.
5 Great Things the African Union Has Achieved This Year (Global Citizen)
South Africa’s run as chair of the African Union (AU) will come to an end this week at the African Union Summit, which takes place over the weekend — with the role to be taken over by the Democratic Republic of Congo. President Cyril Ramaphosa took over as AU Chair in February last year and was welcomed to the position at the beginning of the global COVID-19 pandemic. The year that followed tested the African continent on several fronts as the pandemic highlighted gaps in Africa’s health care systems and lack of economic and social development.
As the pandemic persisted throughout the year, these priorities naturally had to shift to include Africa’s pandemic strategy and continental relief from the pandemic’s impacts. In a short space of time, the South African president managed to lay down the groundwork for most of his initial priorities and has implemented strategies for the continent to continue responding to the pandemic after his chairmanship.
African Union Summit is an opportunity to make good on anti-corruption convention commitments (Transparency International)
African leaders meeting this week at the African Union Summit must redouble their efforts to tackle the root causes and enabling factors of corruption, Transparency International said today. A recent Transparency International report into implementation of the African Union Convention on Preventing and Combatting Corruption (AUCPCC) in ten countries shows much room for improvement. The report finds gaps in enforcement and implementation of AUCPCC Articles related to money laundering, illicit enrichment, political party funding, and space for civil society and media.
Read the report: Implementing and Enforcing the African Union Convention on Preventing and Combatting Corruption: a Comparative Review
The African Union: What role in tackling Africa’s challenges? – ECDPM
The African Union (AU) represents different things to different people. For some, it is a core part of the development landscape in Africa – a symbol of pan-Africanism, continental collective action and aspirations for ‘The Africa We Want’. Others know of its existence but are less sure of its relevance, or how its programmes and policies could or should affect what they experience day to day in their own countries. For others who seek to support African development and international partnerships, the AU is a natural counterpart to the European Union – two continental unions, seeking similar goals. Though all of these partially reflect reality, both in Africa and Europe we see a need to better explain and understand what the African Union does and how it works. This virtual guide aims to do just that.
Connecting African citizens with African decisions - ISS Africa
To be effective, the African Union (AU) needs to become more accessible, responsive and relevant to the average African citizen. This means we need more information about and involvement in the AU’s decision-making processes. The AU summit on 6 and 7 February is an opportunity to remind Africa’s leaders of that. Member states gathered at the summit will no doubt reflect on their responses to the COVID-19 pandemic and the African Continental Free Trade Area which was launched on 1 January this year. They’re also expected to discuss the implementation of the AU Commission’s long-awaited structural reforms, and elect new AU Commission leaders. Heads of state should use this summit to discuss the importance of multilateral institutions in Africa and the continent’s quest to make them more effective. By pooling ideas, goals and resources, multilateralism and its institutions can make a vital contribution to the continent’s future.
‘AfCFTA represents path to the Africa we want’ - Wendell Addy (GhanaWeb)
The immediate past president of the Liberia Chamber of Commerce, Judson Wendell Addy, has urged the continent to work towards establishing an enabling environment that will help foster the objectives of the African Continental Free Trade Area (AfCFTA). According to him, African leaders will have to demonstrate political will to be able to achieve integration for the economic development and transformation of the continent.
“AfCFTA is the path to the Africa we want, so we have to put in all the enablers to have it function. We need to encourage our political leaders to give us the reforms that we need,” he said. “We have to address unrest, policies that should be common across the border, currency issues, banking and transactions. There is a whole range of things that have to be addressed to serve the role of trade integration.”
“Inasmuch as we want to have a common market, if we don’t position ourselves well, it is our former masters who are going to benefit more.”
Standard Chartered host client conference on African Continental Free Trade Area (AfCFTA) (The Nation Newspaper)
As part of Standard Chartered’s knowledge, capacity building and developmental initiatives across its local markets, Standard Chartered Bank Nigeria (SCB) hosted a virtual conference for clients and stakeholders on 21st January, 2021. The conference was organized to discuss the Implications of a Single Continental Market for Nigerian businesses on the back of the launch of the African Continental Free Trade Area (AfCFTA) Agreement on 1st January, 2021. The virtual conference was a unique opportunity for the Bank to re-reinforce its brand promise and commitment to driving commerce and prosperity across Africa which remains a strategic region for the Bank’s for trade and investments priorities. AfCFTA is expected to facilitate the creation of a single continental market for goods and services with free movement of people and investment capital, thus deepening economic integration of member countries and expanding intra-African trade across the continent. Experts believe that full implementation of the agreement will provide growth opportunities for entrepreneurs and businesses, boost industrialization, increase investment opportunities and technology transfers.
African Integration: A priority economic growth lever for the African Development Bank (Born2Invest)
Regional integration has been an integral part of the mandate of the African Development Bank Group since its inception. In this regard, it figures prominently among the five operational priorities of the institution. The Bank supports the African Union’s Vision 2063 and is fully committed to the advent of a Continental Free Trade Area (FTAAf) so that countries can benefit from the opportunities offered by a large regional market and the spillovers of stimulated intra-regional trade.
Aid to Africa was in decline even before the pandemic (ONE Campaign)
The OECD DAC, which tracks official development assistance (ODA) spending, has released the latest global aid figures. Due to a lag in reporting and analysis, these only cover through the end of 2019, but they paint a grim picture for what development assistance looked like in the lead up to the global pandemic. While overall global aid totalled US$151.7 billion, aid fell far short of commitments, and what’s more, development assistance to Africa and the most vulnerable countries declined.
UN FAO estimates that Africa loses about 4 billion dollars worth of food production - SABC News
The United Nations (UN) Food and Agricultural Organisation (FAO) estimates that Africa loses at least 4 billion dollars worth of its total food production to post harvest losses. Yet the solution would be as simple as getting farmers to process their produce, value addition, before sending it to the market. That is what one local government in Kenya is doing with mango’s, changing fortunes for farmers.
Ghana-UK Joint Statement: Ghana-UK Trade Partnership Agreement (GOV.UK)
On 31 December 2020, Ghana and the UK announced that they had reached a consensus on the main elements of a trade agreement that would replicate the effects of the trade relationship between Ghana and the UK prior to the end of the Transition Period following the withdrawal of the UK from the European Union. They stated their intention to finalise the text of the agreement to reflect progress made in relation to rules of origin, cumulation arrangements, time-bound commitments, provisions for development cooperation and commitments to human rights and good governance. Today Ghana and the UK are pleased to announce that they have finalised negotiations on a new Interim Ghana-UK Trade Partnership Agreement. This Agreement will provide for duty free and quota free access for Ghana to the UK market and preferential tariff reductions for UK exporters to the Ghanaian market. The Agreement will enter into effect following the completion of relevant internal procedures required in both Ghana and the UK.
Trade with America thrived under Trump (Mail & Guardian)
Long-held simmering mistrust between the ANC and the US government was further fuelled when the White House seemed to take up the cause of the small but loud right-wing group AfriForum when Trump stated that he had instructed his Secretary of State, Mike Pompeo, to look into the situation, specifically claims of land expropriation, in South Africa.
Given this, one would expect that the Trump years would have been a period of diminishing trade between the two countries. Yet this was not the case. To be sure, the past four years have been characterised by commercial difficulty. As somewhat expected, the Trump administration slapped South Africa with a steel tariff for about a year under the pretext of “national security” concerns. This was an odd claim, given that South Africa represented at most 2% of US steel imports, whereas countries with higher shares were exempted from the tariff. Following the efforts of the department of trade and industry, the tariff was revoked in early 2019. Unexpectedly, however, the trade between the two countries grew substantially over the 2017-2020 period.
Under the umbrella of the Arab-Africa Trade Bridges (AATB) Program, three IsDB Group Private Sector Entities hosted a webinar on key trade finance and investment components aimed at fostering regional trade. The entities included the International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and the Islamic Corporation for the Development of the Private Sector (ICD) in collaboration with IsDB Group Business Forum “THIQAH”. Over 1,000 development institutions, sovereign funds, banks, investment and private equity companies, and key government and corporate sector representatives were in attendance.
Key outcomes from this session noted considerable progress in terms of launching and implementing the projects involving the growth of trade investment and technology transfer between Arab and African countries. The session also addressed the key challenges limiting the business community and concerned trade and investment authorities of the countries in both regions by nurturing an environment where the parties can benefit from the opportunities that exist. In his opening address, Mr. Oussama Kaissi, said: “Despite the tragedy presented by the pandemic, these unprecedented times have brought development institutions together to seek solutions and encourage innovation, teaching us that the best way forward is together. ICIEC believes that through the AATB program, our multilateral efforts can enhance pandemic responses, capacity building efforts, and economic security, providing the citizens of Arab and African countries the knowledge and materials to build a better future.”
Global economy
Yoo Myung-hee, the South Korean candidate to lead the World Trade Organization (WTO), has dropped out of the race, effectively opening the door for Nigeria’s Ngozi Okonjo-Iweala to become its first African leader. In a statement, Yoo, the South Korean Trade Minister, said that she had been “in consultation with major countries such as the United States” over the consensus vote to become the next director general of the WTO. Nigerian candidate Okonjo-Iweala had been recommended by top WTO officials to lead the Geneva body in October, after being judged to have had majority support among members, but the appointment was blocked by the United States under the Trump administration.
The pandemic is not under control anywhere unless it is controlled everywhere (PIIE)
Having largely cornered global supplies of COVID-19 vaccines, countries in Europe are clashing with one another over hoarding their doses, while sending poor countries to the back of the line. Yet, rich, vaccine-manufacturing countries are deluding themselves if they think they can eradicate COVID-19 at home and speed their economic recoveries while the pandemic rages elsewhere, especially in developing economies. Epidemics anywhere threaten immunization efforts everywhere—not least because new viral variants are emerging around the globe. Because a globally cooperative and better coordinated effort is needed, rich countries must stop their infighting and perhaps slow their own consumption of the currently limited stock of vaccines in order to deploy more to the world’s hotspots as soon as possible
Decades of progress on extreme poverty now in reverse due to Covid (The Guardian)
Two decades of progress in the reduction of extreme poverty, the elimination of which is one of the sustainable development goals, have been pushed into a sharp reverse by a combination of the impact of the Covid-19 pandemic, the growing climate emergency and increasing debt. With the World Bank warning of a “truly unprecedented increase” in levels of poverty this year, and renewing calls for debt forgiveness, experts are warning of a growing crisis in multiple areas from education to employment, likely to be felt for years to come. While the World Bank was already pessimistic, in January it updated its forecast for the expected number of newly impoverished people this year from between 88 and 115 million to the new range of between 119 and 124 million.
Countries hail leadership of outgoing UNCTAD chief | UNCTAD
Delegates from UNCTAD’s 195 member states applauded its outgoing Secretary-General Mukhisa Kituyi for his outstanding leadership of the organization for nearly eight years, as he prepares to step down from the role on 15 February. Dr. Kituyi received warm accolades for steering the organization to greater heights, as he presided over his last meeting of UNCTAD’s governing body, the Trade and Development Board, on 3 February. “We can appreciate the fruit of your work in many of the cornerstones that you leave behind for posterity,” said Nasir Andisha on behalf of member countries of the Group of 77 and China.
Vaccine imperialism as a global trading system sinkhole (IOL)
The European Union (EU) is often cited as an exemplary model for regional political and economic integration in the world. The EU’s political unity and policy coherence were reduced to a category of children’s books in how it dealt with the coronavirus. When the virus created commotion in Italy, France, etc, each state quickly reclaimed its individual sovereign rights and closed borders. Brussels and Berlin were not their usual self in a state of confusion.
At the same time, both the EU and the African Union (AU), when it comes to vaccines for treating the coronavirus, are suddenly alive and presenting a united front. The AU vaccine strategy entails sourcing the drug for countries as a collective through the famed Covax facility and or purchasing agreements with major pharmaceutical giants. The European Commission on the other hand has a similar strategy for its 27 members. It looks like the regional blocs are not acting on their own accord.
Rich countries block India, South Africa’s bid to ban COVID vaccine patents | DW | 04.02.2021
The World Trade Organization (WTO) talks on a proposal by India and South Africa to temporarily suspend intellectual property (IP) rules related to COVID-19 vaccines and treatments hit a roadblock on Thursday after wealthy countries balked at the idea, Germany’s dpa news agency reported. The two developing countries say the IP waiver will allow drugmakers in poor countries to start production of effective vaccines sooner. India and South Africa had approached the global trade body in October, calling on it to waive parts of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). The suspension of rights such as patents, industrial designs, copyright and protection of undisclosed information would ensure “timely access to affordable medical products including vaccines and medicines or to scaling-up of research, development, manufacturing and supply of medical products essential to combat COVID-19,” they said.
The proposal was vehemently opposed by wealthy nations like the US and Britain as well as the European Union, who said that a ban would stifle innovation at pharmaceutical companies by robbing them of the incentive to make huge investments in research and development.
The WTO talks are taking place as some wealthy countries face criticism for cornering billions of COVID shots — many times the size of their populations — while leaving poor countries struggling for supplies. Experts say the global scramble for vaccines, or vaccine nationalism, risks prolonging the pandemic.
Small Business, Big Challenge (Global Finance)
Developing-market SMEs, which have long competed for funding against bigger corporates, are counting on help from governments and multilateral lenders to keep afloat.
The long shadow cast by the coronavirus pandemic has extended perhaps most dramatically to small and midsize enterprises (SMEs), highlighting the outsized role they play in the economies of three developing regions—Southeast Asia, Africa and the Middle East—and the challenges they face going forward. Full recovery from the Covid-19 crisis will be critical for these countries. According to a 2018 research paper by the Asian Development Bank (ADB), SMEs accounted for 96% of all businesses and provided two out of three private sector jobs in the Asia-Pacific (APAC) region. And in that region, SMEs generated 42% of GDP in 2015. These companies are especially important players in APAC cross-border trade, accounting as of 2015 for over 40% of export values in China and India, 26% in Thailand, 19% in South Korea and 16% in Indonesia.
Across sub-Saharan Africa, SMEs are similarly dominant, accounting for about 90% of all businesses, according to estimates by the International Finance Corporation (IFC), a member of the World Bank Group, in a 2018 report. In Bahrain, the United Arab Emirates, Iran, Jordan, Egypt, Pakistan and Tunisia, SMEs account for more than 50% of employment, according to a 2020 working paper from the International Monetary Fund (IMF).
Within sub-Saharan Africa, the key to keeping SMEs viable and operational has been collaboration between regional governments and their respective central banks to take the strain out of liquidity conditions via debt forbearance programs and repayment moratoriums. “Many governments in sub-Saharan Africa had already started supporting SMEs before the Covid-19 pandemic, by setting up a clear strategy in specific sectors of the local economy such as agriculture, green energy, health or education,” says Patrick Egounlety, group head, Value Chain and Liquidity Products at Ecobank, a pan-African bank headquartered in Lomé, Togo. He cites Ghana, Nigeria, Côte d’Ivoire, Senegal, Burkina Faso, Benin, Kenya and Rwanda as standout examples of government support for SMEs.
Another key support in the early months of the pandemic was the IFC, which announced in July that private-sector businesses across the Middle East and sub-Saharan Africa would receive $5.6 billion during the current fiscal year, with an additional $2 billion for SMEs. During the 12 months through last June, the IFC had committed $4.6 billion to the region.
WTO Agreement On Agriculture Reflects Double Standards, Should Be Amended: Former Indian envoys (Business World)
Noting that the WTO Agreement on Agriculture is characterised by “democratic deficit” and is based on “commercial realpolitik”, a group of former Indian envoys have called for amending it so that it facilitates developing and least developed countries to achieve SDG of ending hunger and achieving food security.I n an open letter on the WTO Agreement on Agriculture, the former envoys said there is an opportunity for the US, EU and UK along with 19 members of the Cairns Group to end the “double standards that have skewed global production and markets”. They said while US, EU, UK and Cairns Group members want countries like India to liberalise their agriculture markets, allow the market forces to determine prices and limit subsidies, political groups and legislators from some of these countries express support for the farmers’ protests near Delhi and criticize the government for enacting farm laws that seek to empower farmers and bring in greater market efficiency.
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Country focus
Patel: Several govt initiatives under way to focus more on local trade (Eyewitness News)
Trade, Industry and Competition Minister Ebrahim Patel said that government was doing its best to build and stimulate growth for local companies amid the COVID-19 pandemic, which had brought the global markets to their knees. The global outbreak has resulted in many companies, big and small, closing their doors due to the crippling economic impact. Patel said that several initiatives were under way to focus more on local trade. "We sat down with the business community and identified more than 40 major products that with retailers and others we're going to significantly localise from South African-based firms and government itself is revamping our own procurement to try to buy more locally."
Breaking ground on key infrastructure projects would be ‘immune booster’ for ailing economy (Engineering News)
Consulting Engineers South Africa (CESA) believes that visible progress on a select number of high-profile infrastructure projects in 2021 could serve as an “immune booster” for South Africa’s ailing economy and provide impetus for a much-needed recovery in investor confidence. Presenting CESA’s yearly presidential message on Wednesday, Sugen Pillay argued that breaking ground on some of the 50-plus Strategic Integrated Projects (SIPs) already announced and gazetted by government could also build public trust and boost service delivery.
“As we rebuild, we must consider the pace of change, which is currently too slow. There is a need for speed in the infrastructure development plan, although it must be done carefully, or it will fuel corruption.” He said he was encouraged by the progress being made, through the Sustainable Infrastructure Development System (SIDS) methodology, in securing investors for the projects and said project professionals stood ready to lend their support.
SOEs are ‘in a very difficult space’ as Covid-19 adds to their woes - The Mail & Guardian
The department of public enterprises briefed parliament on Wednesday about the effects Covid-19 had on state-owned enterprises (SOEs) during 2020. Acting public enterprises director general Kgathatso Tlhakudi briefly touched on issues related to the pandemic, as he briefed MPs on SOEs’ performance. The department has set aside a budget of R1-million to implement Covid-19 protocols, including sanitisation and deep cleaning, in its own building. However, only 30% of this budget has been spent to date.
South Africa’s economic recovery depends on these factors – including dealing with a third Covid-19 wave (Business Tech)
Following the volatile year for the global and domestic economies in 2020, financial services group Alexander Forbes expects 2021 to see an improvement, though uneven across economies. The group has identified key economic trends and investment themes for 2021 and beyond. Isaah Mhlanga, chief economist at Alexander Forbes, said: “South Africa’s economic recovery depends on several factors, some controllable and others uncontrollable, with the most important one being the logistics of Covid-19 vaccines.” Which factors will drive the economic recovery this year and beyond?
Illicit market booms during alcohol, cigarette sales bans (Engineering News)
To overcome the challenge of a seemingly booming illicit market for cigarettes and alcohol, and to stem the tide of such illicit products in the local economy, requires enforcement of existing laws and adoption of new ones, says South African Liquor Brandowners Association (Salba) CEO Kurt Moore. He spoke during a February 3 webinar hosted by Business Leadership South Africa on illicit trade, especially within the cigarette and alcohol industry, particularly in light of bans on the legitimate sale of these products implemented over the past year.
Panellists participating in the webinar also suggested that some consumers may not return to legal avenues of buying both cigarettes and alcohol once such bans are lifted because the illicit market may offer cheaper prices. As such, Moore posited that the most efficient force against illicit trade was legal traders who sell genuine products.
Uganda coffee exports surge in 2020 due to good weather (CGTN Africa)
Uganda’s coffee exports grew by 972,962 bags in 2020, a 22 percent increase from 2019. The increase is the highest since 1991 according to Uganda Coffee Development Authority (UCDA), the country’s agency mandated to control and market the crop Uganda earned $515.94 million from the exports. In 2019, the East African country shipped 4,519,563 bags, fetching $436.54 million. This represents a 22 percent and 18 percent increase in quantity and value respectively. Europe is the main destination for Uganda’s coffees with a 63 percent import share. Uganda’s government has set itself an ambitious target to increase exports of the crop to 20 million bags by 2025. Coffee is the country’s main cash crop.
Botswana intensifying effort to attract non-diamond exploration (Mining Weekly)
Botswana has intensified efforts to digitise and make geoscience information readily available to local and international potential investors in an effort to encourage prospecting and mining for non-diamond minerals, Botswana President Mokgweetsi Masisi told the virtual 2021 Investing in African Mining Indaba on Wednesday.
“Rare earth metals are necessary components for many products across a wide range of applications, especially high-technology consumer products such as cellular telephones and computer hard drives,” he told the conference covered by Mining Weekly. Mines and metals policy was being reviewed to guide expedited growth of the minerals sector. The policy would aim to maximise economic benefits and facilitate private sector involvement in minerals developments. It would also contribute to the legislative review that would put policy in line with international best practice and be attractive to potential investors.
Masisi said that Botswana’s over-dependence on diamonds had more than ever made it imperative for the country to urgently expand its revenue base to other minerals, notably base metals. “The development of the minerals industry in Botswana is in full steam, as evidenced by several ongoing exploration projects and the issuance of mining licences to private companies,” he said. “In this regard, Botswana has put in place strategies for mineral beneficiation, which include base metals refineries, encompassing the identification of suitable projects in copper, iron and nickel, as well as the creation of an enabling environment to drive these projects.
Rising demand for migrant workers moves Kenya to vet employment agencies - Ventures Africa
A recent surge in demand for migrant workers abroad moved Kenya’s government to license over 300 recruitment companies to secure jobs for its citizens. Although the government exceeded its 240 annual benchmarks for the registration of recruiting companies, the agencies were made to undergo screening based on the government’s new regulations on labour export. Kenya plays big in the Labour Export industry owing to its high rate of unemployment. This has led to a rise in recruitment agencies who help Kenyans secure employment opportunities abroad.
Kenya moves to ratify UK trade pact (Citizen TV)
The government has moved to ratify its recently concluded trade pact with the United Kingdom (UK) which will mark the final approval stage for the deal. In a public notice issued on Wednesday, National Assembly Clerk Micheal Sialai subjected the economic partnership agreement (EPA) to public participation ahead of its consideration by the House. The ratification of the deal which will further involve submissions by the departmental committee on trade and industry is expected to anchor the new trade pact into law. The new Kenya-UK deal was sealed in December last year charting a way forward to the pair’s trade relations after the end of UK’s transition period from the European Union (EU) on December 31.
Kenya and the US should conclude free trade talks (Business Daily)
The United States Chamber of Commerce has seized the initiative early to lobby the new Joe Biden administration for the conclusion of talks on a new trade pact between the US and Kenya.
While Biden’s administration is under no obligation to carry on with the negotiations for a new trade deal with Kenya, it would be proper if the talks were sustained to conclusion because the immense trade and investment opportunities that are likely to be realised. Kenya and the US are key trade and security allies and this relationship should be maintained. The present main trade and investment framework between the US and Kenya-- the Africa Growth and Opportunity Act (Agoa) will lapse in just a few years. The arrangement, which allows sub-Saharan African countries to export thousands of products to the US without tariffs or quotas, expires by 2025. Clearly, the trade partnership between Kenya and the US is an important one and the two nations should strike a deal for furtherance.
Kenya mulls import duties on dairy, eggs to cushion local farmers (News Ghana)
Kenya is considering putting import duties on dairy and egg products in order to cushion local farmers from foreign competition, a senior government official said on Wednesday. Peter Munya, cabinet secretary, Ministry of Agriculture, Livestock, Fisheries and Cooperatives told journalists in Nairobi that the import levies are contained in regulations that will soon be gazetted into law. “We need to take care of our farmers from products coming from outside the country,” Munya said during the Savings and Credit Cooperatives (SACCO) regulations forum.
Sugar from Comesa held by tax agency at Mombasa port (The East African)
Sugar imported under Comesa is being held at the port of Mombasa after Kenya Revenue Authority (KRA) demanded full payment of taxes before goods are released. The move has left importers in a bind as it comes before the Comesa importation deadline of February 2021 expires. The importers said they had been cleared by all relevant departments, and the Agriculture and Food Authority (AFA) confirmed that they were within the quota. "Before we imported sugar, we met all the requirements, including obtaining sugar from qualified Comesa member states or EAC member countries. We even produced a letter issued by the factory producing the sugar to confirm that the sugar under inquiry was produced by themselves," said one of the importers. He added, "All the consignments were accompanied by valid Comesa Certificates of Origin."
Cargo clearance at railways hub to start next week (Nation)
Small-scale traders will from Monday start picking their consignments from the Kenya Railways customs shed after the Kenya Revenue Authority (KRA) gazetted it for clearance of cargo inbound from the Port of Mombasa through the standard gauge railway. Cargo destined to the customs shed will be dropped at the Inland Container Depot (ICD) in Embakasi from where it will be ferried to the Nairobi Railway Station. “Establishment of the Boma Line is part of initiatives to bring services closer to taxpayers and facilitate them to conduct their business effectively and efficiently. For instance, going forward, traders from far areas such as Nanyuki and Sagana will no longer incur huge transport costs to ferry their goods from ICD as this shed will be easily accessible,” said KRA acting Commissioner for Customs and Border Control Pamela Ahago said in a statement. KRA hopes to ease congestion at the Customs office by hastening clearance of goods as verification will be done on single goods stripped from containers as opposed to the typical verification of a whole container.
AfCFTA: How Rwanda plans to tap into the continental market (CNBC Africa)
According to the Rwanda National Institute of Statistics, the country’s exports to Africa has nearly increased by around 50 per cent over the last 5 years. Now, with the AfCFTA in place, the government has identified opportunities in several local products for exports that are expected to drive the country’s exports to the African continent from the current $1.6 billion to about $5 billion in 10 years. Diane Sayinzoga, Head of Special Economic Zone and Export Facilitation Department at the Rwanda Development Board joins CNBC Africa for more.
Zimbabwe: Gvt, SMEs roll online capacity building programme (The Chronicle)
Bulawayo Chamber of SMEs Mr Energy Majazi told Business Chronicle yesterday that they have embarked on a training programme in partnership with their parent Ministry targeting to training120 entrepreneurs. “In collaboration with our parent ministry, we have embarked on a capacity building programme targeting to train 120 members to equip them with relevant knowledge on how to register, run and improve their business. In the past, the SMEs chamber has organised and coordinated courses for players in the SMEs sector covering aspects such as policy validation, procurement procedures and the Common Market for Eastern and Southern Africa (Comesa) protocols.
USAID Trade hub to raise garment production in Ghana (Fibre2fashion.com)
The US Agency for International Development (USAID)-funded West Africa Trade & Investment Hub (Trade Hub) will utilize Women’s Global Development and Prosperity (W-GDP) funds to establish a model factory with Ethical Apparel Africa and Maagrace Garment Industries in Ghana’s eastern region. This partnership will accelerate women’s economic empowerment in apparel manufacturing. The project will set high standards for fair wages and healthy working conditions for 800 new employees and place women in at least 70 per cent of new supervisory and factory jobs, according to a press release from USAID.
Ghana model apparel hub to push women's empowerment (just-style.com)
A model apparel manufacturing factory is to be set up in Ghana aimed at accelerating women's economic empowerment in the sector by setting high standards for fair wages and healthy working conditions. Established by the US Agency for International Development (USAID)-funded West Africa Trade & Investment Hub (Trade Hub), the facility will utilise Women's Global Development and Prosperity (W-GDP) funds. It will employ 800 new staff, placing women in at least 70% of new supervisory and factory jobs. Under the co-investment partnership with the Trade Hub, Ethical Apparel Africa, which works to enable market access for African production, will receive a US$1.35m grant underpinning an equity investment in garment manufacturer Maagrace's Koforidua factory.
"We see [Africa] as being the next frontier of manufacturing for garments," says Keren Pybus, co-founder, and CEO of Ethical Apparel Africa. "But our operating model is based on the fact that all manufacturing should be done ethically. And to us, 'ethical' is more than just doing the baseline compliance." As the $3 trillion global apparel industry looks for its next manufacturing hub, there is a major opportunity for Ghana to build industry, create jobs, and develop its export economy, the West Africa Trade & Investment Hub says. Low costs of living, fast shipping times, and highly competitive labour costs give Ghana a competitive advantage in the garment industry, it adds.
Comply fully with trade laws, protocols – GUTA tells ECOWAS members (GhanaWeb)
The Ghana Union of Traders Association (GUTA) has admonished ECOWAS members and other stakeholders to fully comply with trade laws and protocols. The clarion call comes after some member countries including Ghana and Nigeria have been involved in a trade impasse for months.
“It’s not that we are giving anybody unhindered access to Ghana. Now that the African Continental Free Trade Agreement is open, let all Ghanaian youth who want to trade go to South Africa, if they are 1 million in number, let them all go. Are they going to be allowed to trade? No!” he lamented. “They have controls, and so these controls, rules and engagements in these protocols is what we have to follow and that is all that we are demanding as citizens,” Dr Obeng advised. President of the Nigerian Union of Traders in Ghana, Chukwuemeka Nnaji on his part says governments of the various ECOWAS states need to collaborate towards harmonizing rule and protocols that govern trade activities.
Nigeria: Counting down to recession exit, the challenges, the prospects (Vanguard)
In 2021, starting this first quarter, Q1’21, all expectations are focused on reversal of the depressing macroeconomic figures which had pushed Nigeria into recession in Q3’20. This is despite the resurgence in the COVID-19 debacle, which was the main cause of the recession. Both the fiscal authorities led by the Finance Minister, Mrs Zainab Ahmed, and the monetary authorities led by the Governor of Central Bank of Nigeria, CBN, Mr Godwin Emefiele, assured the nation that Nigeria would be out of recession in the Q1’20, and none of them have yet come out to change that position at the backdrop of COVID-19 resurgence.
External sector stability has been in frequent upset throughout last year with exchange rate and external reserves in tailspin. Inflationary pressures have been persisting for 34 months consecutively, closing the year at 15.75 percent in December 2020. Balance of trade deficit has continued to rise as at year end. Six sectors (agriculture, trade, telecoms, manufacturing, crude oil and real estate) that account for 76% of Nigeria’s GDP were responsible for 68% of the 2.7% economic contraction in the first nine months of 2020. Other than the 6.5% growth in agriculture and telecoms sectors (36.7% of GDP combined), the economic contraction could have been worse.
The Nigeria-Morocco gas pipeline project is being discussed again (Born2Invest)
During a telephone conversation on Sunday, January 31st, between King Mohammed VI of Morocco and President Muhammadu Buhari of Nigeria, the Nigeria-Morocco gas pipeline project and a fertilizer project in Nigeria, in partnership with the Office Chérifien des Phosphates, were discussed. The pipeline project, 7,500 km long at an estimated cost of $20 billion, was discussed in 2016 during the visit of King Mohammed VI to Nigeria and in 2018 during the visit of President Muhammadu Buhari to Morocco. The pipeline aims to supply West Africa, Morocco and European markets. For its part, ECOWAS seems to have made its choice between the two rival projects.
Morocco backs AU efforts to promote inclusive business (The North Africa Post)
Morocco welcomed the creation by the African Union Commission (AUC) of the Africa Inclusive Markets Excellence Centre (AIMEC) which will have a key role to play to help African economies recover from the pandemic impact, Foreign Minister Nasser Bourita said. Inclusive business is conducive to post-Covid economic recovery, said Bourita on the sidelines of the 38th ordinary session of the AU Executive Council, held remotely.
Chad: 1st country in Covid era to ask for restructuring of its debt (The Africa Report)
Already one of the beneficiaries of the Debt Service Suspension Initiative (DSSI), Chad has just officially requested debt restructuring from its major public creditors as well as a support agreement with the IMF. Chad has requested that a “common framework” be set up between the Paris Club and the G20 for the treatment of debt. These donors will probably extend the moratorium enjoyed by some fifty countries, mostly African, until the end of 2021. This is the first initiative of its kind under the “common framework” set up in 2020 between the G20 – under Saudi chairmanship – and the Paris Club to address the insolvency risks of the countries that have been most affected by the economic slowdown caused by the Covid-19 crisis.
The African Development Bank on Wednesday signed protocols to disburse a $14 million grant to the Government of South Sudan to boost agricultural markets in a project to be implemented by the UN’s Food and Agriculture Organization (FAO). The Agricultural Markets, Value Addition and Trade Development (AMVAT) project aims to enhance agricultural productivity and boost the marketing and trade of agricultural products in South Sudan. The project will be implemented by the Food and Agriculture Organization of the United Nations (FAO) in close liaison with the Ministry of Agriculture and Food Security.
“A diversified economy away from oil and long-term growth depends on promoting agribusiness development,” said Athian Ding Athian, South Sudan’s Minister of Finance and Planning at the signing ceremony, thanking the African Development Bank for its growing assistance. “With the support from our partners, we are building an improved marketing and trade environment for agribusinesses, increasing people’s incomes and creating new jobs, particularly for the youth.”
News from Africa and Africa’s international trade relations
At the 33rd Session of the Assembly, held in February 2020, the Heads of State and Government stressed the importance of Culture, Arts and Heritage in the achievement of the African Union Agenda 2063 objectives, as well as those of its flagship projects. They declared that the African rich and diverse heritage is an essential asset to profile the continent in the global arena, while bringing about sustainable development, integration and peace in Africa.
The Chairperson of the AU Commission underlined that the implementation of the strategic priorities of Agenda 2063 has recorded two major achievements, namely the First Continental Report which examines and consolidates the state of implementation of the Agenda in the Member States and in the RECs and the effective transformation of NEPAD into the African Union Development Agency (AUDA) , called to take charge of the coordination and execution of regional and continental projects, among others.
Mr. Mahamat listed a set of achievements related to regional integration such as the operationalization of the African Continental Free Trade Area (AfCFTA) launched on January 1st this year. the launch of the Single African Air Transport Market (SAATM), the adoption of the Protocol on Free Movement and the African Passport guidelines, the implementation of the Comprehensive Africa Agriculture Energy Infrastructure Plan and the response to climate change.
Sixteen African nations interested in AU vaccine plan (Reuters)
Some 16 African countries have shown interest in securing COVID-19 vaccines under an African Union (AU) initiative and the aim is to deliver allocations in the next three weeks, the head of a continental disease control body said on Thursday. John Nkengasong, Africa's Director of Centers for Disease Control (CDC), speaks during a news conference at the African Union Headquarters in Addis Ababa, Ethiopia January 28, 2020. REUTERS/Tiksa Negeri/File PhotoAs wealthier nations push ahead with mass immunisation, Africa is seeking to immunise 60% of its 1.3 billion people in the next three years. Only a handful of African nations have begun giving doses.
John Nkengasong, director of the AU’s Africa Centres for Disease Control and Prevention (CDC), said the 16 countries had so far placed requests for the vaccines under the bloc’s African Vaccine Acquisition Task Team (AVATT), which started operation in mid-January.
COVID-19: African countries scramble for vaccines (Africa Renewal)
Countries across the continent have significant experience conducting mass vaccination campaigns. Infrastructure developed over the years, including for polio, cholera and measles vaccination drives, and lessons learned during the Ebola epidemic stand them in good stead, former President Sirleaf pointed out. Still, having to keep COVID-19 vaccines in extreme low temperatures presents additional challenges.
While Africa blames others for vaccine nationalism, we must also examine our continent’s own failings (Daily Maverick)
The pursuit of GDP growth masked many gaps in African economies for decades, and the Covid-19 pandemic has shown how woefully ill-prepared African countries are to meet the needs of their people. In South Africa for example, the pandemic has exposed many problems, including access to water, food, health services and procurement processes. President Cyril Ramaphosa’s bombshell statement to the Davos summit on 26 January 2021 about vaccine hoarding by rich nations has been discussed and dissected from all angles in media houses around the world. Rich countries, with just 16% of the world’s population, have hoovered up 60% of the world’s vaccine supply, postponing inoculation programmes for the rest of the world by months, if not years. Yet, while we must condemn rich nations for hoarding vaccines and paying scant attention to global solidarity, we must also take a hard look at ourselves and ask why we always have to depend on others for everything.
AfCFTA success depends on technology (Business Daily)
The African Continental Free Trade Area (AfCFTA) agreement became effective in January 1 this year, rekindling the feelings African countries had immediately after independence from colonial powers. These feelings also emanate from recent experiences in Asia that societies can create prosperity for their people by re-organising their economies. However, immediately after independence many leaders chose to centrally manage the economies.
The success of AfCFTA depends on how much we embrace the concept of digitalisation (the process of integrating digital technologies into everyday life) on virtually everything we do. The idea of digitalisation is driving the emerging fourth industrial revolution (4IR). Some of the key technologies like the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain and Big Data must be central to the monitoring and evaluation on the performance of intra-Africa trade.
AfCFTA is a lifeline for African economies, President Uhuru says (The Standard)
President Uhuru Kenyatta at Sagana State Lodge in Nyeri at a meeting with AfCFTA's Secretary General Wamkele Mene who paid him a courtesy call. February 3, 2021. [PSCU]President Uhuru Kenyatta has said the success of the African Continental Free Trade Area (AfCFTA) will assist the continent overcome some of its pressing economic challenges. The President reaffirmed Kenya's commitment to AfCFTA and rallied other African states to work closely with the agency's Secretariat to ensure that continental trade arrangement succeeds. Beyond its economic importance, President Kenyatta pointed out that AfCFTA has the potential to accelerate continental integration efforts by promoting people-to-people interactions through trade.
Agriculture as a buffer in COVID-19 crisis: Evidence from five Sub-Saharan African countries (World Bank Blogs)
Countries in Sub-Saharan Africa (SSA) have not been spared from the negative impact of the COVID-19 crisis. Articulating a policy response to the impact of COVID-19 requires understanding how and which households have been impacted and if households may have been able to rely on or move into specific activities that may act as a buffer in crises. Governments of five SSA countries (Burkina Faso, Ethiopia, Malawi, Nigeria, and Uganda), in collaboration with the World Bank, are implementing several rounds of COVID-19 high-frequency phone surveys (HFPS) to monitor the socioeconomic implications of the pandemic. Agriculture is one of the focus topics included in these surveys. The sample included in the HFPS were interviewed face-to-face in 2018/19 as part of the Living Standards Measurement Study – Integrated Survey on Agriculture (LSMS-ISA) project, making comparison possible. Given that HFPS data collection coincided with the 2020/21 pre-harvest season, this piece focuses primarily on pre-harvesting using data collected from April-August 2020.
Note on the evolution of the prices of the main commodities exported by the CEMAC countries in the 4th quarter of 2020 (Bank of Central African States)
Commodities price index grew by 3.3% in Q4 2020, a report the BEAC shows. This development is the result of the rise in the price of oil, Cemac's main export product, which rose from $42.7 per barrel in the third quarter to $43.6 per barrel in the fourth quarter of 2020, after $30.3 per barrel in the second quarter.
The African Development Bank Group Gender Strategy 2021–2025
COMESA Business Council backs digital financial inclusion for small businesses (The East African)
As the private sector struggles to adjust business models to the growing challenges presented by Covid-19, it has become clear that digital transformation is integral to the survival of industries. Affordable digital transactions are needed more than ever and there is a need to harmonize facilitative policies in all COMESA Member States. Today’s financial inclusion agendas should consider the enablement of SMEs to leverage on retail digital solutions to access affordable, value-added digital financial services that also ensure appropriate safeguards for cross border transactions.
New African initiative launched to advocate for gas across value chain (S&P Global)
The African Energy Chamber has launched a new initiative together with investment research company Hawilti to promote gas as a transition fuel in Africa. The African Coalition for Trade and Investment in Natural Gas (ACTING) -- a non-profit initiative -- aims to encourage capital into the African gas value-chain and engage stakeholders and societies on the benefits of gas consumption. The work of the coalition will particularly focus on the collection of key market data and the distribution of information on opportunities, companies and projects expected to shape the future of African gas, they said.
Why Africa and Partners Must Go Up a Gear on Climate (Chatham House)
The pandemic took the spotlight off climate change in Africa, despite 2020 seeing warming temperatures, rising sea levels, and extreme, erratic weather events. 2020 saw time lost and meetings postponed. But the lead-up to the United Nations (UN) Climate Change Conference in Glasgow in November (COP26) brings the spotlight back to climate issues, and a packed international agenda offers an opportunity for Africa to reach Glasgow better prepared and better understood than ever before. Despite the heavy focus on COVID-19, climate issues in Africa certainly did not go away in 2020 – they continued to exacerbate security challenges, population displacement, and heighten the vulnerability of agriculture and food supply.
Impact of Mini and Off-grid Power Projects in Africa (News Ghana)
Renewable and self-sustaining mini- and off-grid solutions serve as alternatives to traditional grid connections to achieve energy-access goals for remote communities. These revolutionary solutions will be discussed and showcased at the upcoming 13th annual Africa Energy Indaba virtual event from the 1st – 5th March 2021 which will provide the latest insights, trends and applications to ultimately increase energy access across the continent.
In Brief: House foreign affairs leader on US-Africa policy priorities (Devex)
The United States’ Africa policy needs to be “reset,” Rep. Gregory Meeks, the new chairman of the House Foreign Affairs Committee, said Monday at an event where he outlined his vision for the U.S.-Africa relationship. “My goal is to reset the United States’ relationship with Africa by focusing on shared challenges, expanding people-to-people relationships and exchanges, developing partnerships to increase youth participation in the digital workforce, and championing a more robust presence across the continent,” Meeks said. Why it matters: Meeks just took charge of the committee, and many development advocates weren’t sure what his priorities would be. He made it clear that he chose to focus his first public event on Africa for a reason — it will be a top priority for the committee.
Fruits of partnership lie ahead for Africa - World - Chinadaily.com.cn
In early January, China unveiled a new white paper on international development cooperation in which Beijing has articulated a vision to engender more inclusive, quality and sustainable development in the world. China's foreign aid will now be administered by the China International Development Cooperation Agency, which was established in 2018. It is clear from the document that Africa ranks high on China's international development cooperation agenda. Between 2013 and 2018, the continent received 44.65 percent of China's total foreign aid budget. Africa also received about 45 percent of human resource development assistance from Beijing during the same period.
Are African Countries Preventing Corruption and prosecuting related crimes? (Transparency International)
When the African Union Convention on Preventing and Combatting Corruption (AUCPCC) was adopted by the African Union Assembly in 2003, it was a huge step towards resolving the continent’s serious corruption challenges. Designed as a shared roadmap for member states to implement governance and anti-corruption measures, the convention aims to eradicate corruption in government and business. But many governments are falling behind on their commitments under the African Union’s anti-corruption convention. A new report by Transparency International explores this, looking at three important areas: money laundering, illicit enrichment and political party funding, as well as the role civil society and media play in fighting corruption.
Global economy
WCO and ICAO join forces to support the cross-border movement of COVID-19 vaccines (World Customs Organization)
The Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya and the Secretary General of the International Civil Aviation Organization (ICAO), Dr. Fang Liu issued on 2 February 2021 a joint statement calling for efforts to ensure safe, secure and efficient transport of COVID-19 vaccines and associated equipment across borders.
“Through digitalization and flexibility of the export, transit and import processes in air cargo operations, including robust risk management mechanisms, our two organizations seek to significantly increase the speed at which vaccines can be delivered to the end user, whilst minimizing the risk of distribution of unsafe and counterfeited medical products”, the two leaders indicated in the joint statement.
2020 Worst Year for Air Cargo Demand Since Performance Monitoring Began (IATA)
The International Air Transport Association (IATA) released data for global air freight markets showing that demand for air cargo decreased by 10.6% in 2020, compared to 2019. This was the largest drop in year-on-year demand since IATA started to monitor cargo performance in 1990, outpacing the 6% fall in global trade in goods.
African airlines saw demand grow by 1.0% in 2020 compared to 2019 (1.9% for international operations) and a fall in capacity of 17.3% (-15.8% for international operations). African airlines posted the strongest international growth of all regions in 2020 as well as in December. International demand in the month grew by 6.3% year-on-year. African airlines now have the same share of the global international cargo market as carriers from Latin America (2.4%). International capacity decreased by 21.6% in December, a steepening of the 18.6% fall in November.
IMF Executive Board Reviews IMF Debt Sustainability Framework for Market Access Countries (IMF)
The Executive Board of the International Monetary Fund (IMF) reviewed on January 14, 2021 the IMF Debt sustainability Framework for Market Access Countries (MAC DSA). The review revealed scope to improve the MAC DSA framework’s ability to identify risk of sovereign stress and better align it with the IMF’s lending framework, to be achieved by replacing the current approach with a new methodology. The MAC DSA plays a key role in the Fund’s core functions of surveillance and lending. In surveillance, the framework helps identify a member’s vulnerability to sovereign stress to steer the member away from such stress. In Fund-supported programs, which often take place after the stress has already developed, the DSA helps determine if sovereign stress can be resolved via a combination of IMF financing and economic reforms, or if measures such as debt restructuring are needed to deliver medium-term debt sustainability. The framework is also used in developing IMF conditionality and informing the need for debt relief in debt restructuring operations undertaken in the context of Fund-supported programs.
The UK begins its approach to the Trans-Pacific Free Trade Agreement (TIPAT) (SmallCapNews.co.uk)
The United Kingdom has officially initiated the process to be part of one of the largest free trade zones in the world, with the aim of establishing itself at the center of emerging economies in the Pacific. And the promotion of employment throughout its territory. This is its accession to a trade agreement between 11 countries that covers 500 million people and accounts for 13 percent of global GDP in 2019. As UK International Trade Secretary Liz Truss reported, on 1 February 2021, she spoke with ministers in Japan and New Zealand to request the UK’s future accession to the Trans-Pacific Inclusive and Progressive Association (TIPAT). It will be the first official step toward accession before negotiations begin this year.
COVAX releases country-by-country vaccine distribution figures (Devex)
Countries involved in the COVAX Facility, the global initiative aimed at equitable access to COVID-19 vaccines, now know how many doses of Pfizer-BioNTech and AstraZeneca-University of Oxford vaccines to expect in the coming months. A country-by-country forecast was released Wednesday by the Coalition for Epidemic Preparedness Innovations; Gavi, the Vaccine Alliance; the World Health Organization; and UNICEF. Countries will receive doses in proportion to their population size. For example, Afghanistan will receive 3 million doses, while Namibia receives about 127,000. These doses are expected to reach about 3.3% of the total population of the 145 facility participants during this time frame. Vaccines are expected to go to the most vulnerable populations, including health care workers.
Time for action: How private sector instruments are undermining aid budgets (Eurodad)
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The great wealth tax debate: How to fund a constitutional state (Daily Maverick)
Have high-income earners been taxed more and more over the years and has a limit now been reached? The editor of Business Maverick, Tim Cohen, repeats this common view in a recent opinion piece. But is he right? It would be both unfair and counterproductive to introduce “a wealth tax,” he said. He quotes Judge Dennis Davis saying “while a wealth tax would add to the legitimacy of the tax system in a country with such vast inequality, it would require significant institutional capacity that can’t just be switched on like a light”.
Addressing Financial Challenges Of Sustainable Shipping (Hellenic Shipping News Worldwide)
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.
New targets to protect biodiversity must include farmers and agriculture (The Conversation Africa)
The UN Convention on Biological Diversity is a treaty that aims to develop national strategies for the conservation and sustainable use of a country’s natural resources, or biological diversity. This is a general strategy that all countries must then adopt at the local level. The Convention – a legally-binding international treaty – is currently negotiating new targets for the next 30 years. Decisions are made by parties to the convention, made up of 196 countries, supported by a range of observers including NGOs, researchers and academics.
Agriculture dominates sub-Saharan African economies. It contributes on average 15% of total GDP, covers vast tracts of land and is often the main source of livelihoods in rural areas. We argue that the new framework must recognise the importance of agriculture for conservation. And that the best way to protect Africa’s biodiversity is to integrate conservation measures on working lands. This will also create jobs and income opportunities for farming communities.
India, S. Africa, Indonesia join WLP (Khaleej Times)
The World Logistics Passport (WLP), a major policy initiative established to increase trading opportunities between emerging markets, announced on Wednesday the joining of India, Indonesia and South Africa as members. The WLP creates opportunities for business across Africa, Asia, Central and South America to improve existing trading routes, and develop new ones, through the world’s first logistics loyalty program for freight forwarders and traders. It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information and facilitating movement between ports and air.
The Johannesburg Chamber of Commerce has signed a framework agreement with the WLP and bilateral negotiations with the government continue. Joining the WLP will be a key enabler of the African Continental Free Trade Agreement, opening up new market potential among countries in the region. South Africa has joined the WLP at a time where the country, and broader region, seek to recover from the economic impact of Covid-19. The WLP will help to achieve the goals in the Reconstruction and Recovery Plan, boosting job creation and supporting export-led growth.
Risk Management Key to Strengthening Global Value Chains Resiliency (Modern Dipplmacy)
APEC economies have developed a strong foundation to deal with the COVID-19 crisis, but more needs to be done to enhance their resiliency in global value chains, according to a recent policy brief by the APEC Policy Support Unit. “Building and strengthening resiliency is the top priority for firms involved in global value chains,” said Dr Akhmad Bayhaqi, a senior analyst with the APEC Policy Support Unit, who co-authored the study. “The economy-wide and global implications brought on by disruptions to supply chains resulting from the COVID-19 pandemic suggest that governments need to support firms in managing such risks.” The policy brief, titled Managing Risks in Global Value Chains, analyzes the ability of the APEC region and its peer international groupings to respond to disruptions and to quickly return to normal operations. Using a value chain strength index, the policy brief measures the strength of economies and groupings against the following risks: 1) logistics and infrastructure risk; 2) natural disaster risk; 3) market risk; 4) political risk; and 5) regulatory and policy risk.
Caught in a tangled web of vaccine nationalism (The Sund Daily)
As known Covid-19 infections exceed 100 million internationally, with more than two million lives lost, rich countries are now quarrelling publicly over access to limited vaccine supplies. With “vaccine nationalism” widespread, multilateral arrangements have not been able to address current challenges well. Vaccine nationalism has meant that the rich and powerful come first, not only in societies, but also in the world, making a mockery of the “No one left behind” slogan embraced by the international community. Many developing countries and most of their people will have to wait for access to vaccines while the powerful and better off secure prior access regardless of need or urgency.
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Country focus
Economic growth to improve this year but will remain constrained (Engineering News)
The economic prospects for this year are better than 2020, but the recovery of the global economy will take some time, which will impact on South Africa’s prospects going forward, owing to the country’s dependence on global events, Alexander Forbes Group chief economist Isaah Mhlanga has said. Speaking during financial services provider Alexander Forbes Investments’ ‘Local and Global Economic Them
Minister Press Release: Government Welcomes Ford R16 Billion Investment Announcement (the dtic)
The new Ford investment in its Silverton plant, when completed, will pump R1,3 billion in wages and salaries annually into the Tshwane economy. This was said today by Minister of Trade, Industry and Competition, Ebrahim Patel, at the public announcement ceremony at the Ford plant. The announcement follows the designation of the area by the Minister as a Special Economic Zone in late 2019. Five key Government policies championed by the President, informed the decision of Ford, and enabled rapid decision-making, Minister Patel told a small gathering of business and Government leaders at the site. First, the Special Economic Zones framework; Second, the mobilisation of investment; Third, the masterplans driving our policy; Fourth, the opening of new markets for locally-produced products; Fifth, the District Development Model
From stimulus to debt: The case of South Africa (Brookings)
An estimated eye-watering $12 trillion of discretionary fiscal support has been provided globally during the pandemic. Such expenditure has come in the form of support to the unemployed, small businesses, and struggling sectors in an effort to save livelihoods and keep economies buoyant. Crucially, though, for many countries in sub-Saharan Africa, these fiscal stimuli packages have deepened their debt challenges. South Africa is one such example. Although the country’s pre-pandemic forecast for debt-to-GDP ratio for 2020 was already high at 65.6 percent, supporting the economy through the pandemic required the government to breach the spending ceiling and expand its borrowing – raising the forecasted debt-to-GDP ratio to 80.5 percent for 2020.
Ghana, UK Must Finalize Trade Agreement To Save Jobs – Fair Trade Africa (Peacefmonline.com)
Fairtrade Africa has urged the government of Ghana and the United Kingdom to finalise a trade agreement to save fruit exporting companies. Ghana and UK failed to finalise a trade agreement before the end of the BREXIT transition December 31, 2020. It said although it welcomed the joint announcement by the Ghanaian Ministry of Trade and the UK Department of Trade earlier this month that an agreement had been reached to allow tariff free access, the delay was impacting negatively on players in the industry. “We call on both the UK and Ghanaian governments to immediately sign an agreement to bring this into effect. Fairtrade Africa also requests that exporters be compensated for the tariffs already paid as it will be unfair for them to bear the brunt of the two governments delay in finalising an agreement,” it said in a statement.
COVID-19: Nigeria to receive first batch of vaccines (15 million) from COVAX in February- Minister (Nairametrics)
Nigeria is expected to receive the first batch of COVID-19 vaccines, which is 15 million, from AstraZeneca under the COVAX programme. This was disclosed by the Minister of Health, Dr Osagie Ehanire, at the Presidential Task Force on COVID-19 national briefing in Abuja on Monday. Though the minister did not specify the date or time, he disclosed that the government had been advised to expect the first batch of the vaccines from February. He said, “According to latest information I have, we have been advised to expect the first COVID-19 vaccines from Covax to arrive in Nigeria as from February. We shall continue to review plans to ensure smooth roll out in our country.”
Nigeria: NESG urges govert to promote non-oil sector to maximise AfCFTA gains (WorldStage)
The Nigeria Economic Summit Group (NESG ) has urged the Federal Government to take more interest in promoting the country’s non-oil exports if Nigeria is to benefit maximally from the African Continental Free Trade Area (AfCFTA) agreement. Chairman of the group, Mr Asue Igohdalo, made the call during a virtual launch of NESG report titled “NESG Macro-Economic outlook 2021.” Ighodalo said that Nigeria needed to create innovative economic ideas that could spur growth and prosperity. “Nigeria is at a crossroads and cannot afford the business-as-usual approach which will only lead to further job losses, pull millions of citizens into poverty and worsen an already fragile economy.”
Kenya gets Sh2bn Covid-19 war, green trade shot in the arm (Business Daily)
Kenya has received Sh2 billion from the Danish government to support the country’s green trade effort and the war on Covid-19 at border points. The funding, which will be channelled through TradeMark East Africa (TMEA), will boost Kenya’s efforts to transition to green trade and create sustainable jobs under the Denmark and Kenya Strategic Framework for 2021 to 2025. TMEA will partner with government institutions and the private sector in adopting sustainable and efficient transport and infrastructure for reduced barriers to trade, improve trading standards and sanitary and phytosanitary issues to enhance business competitiveness in Kenya. Denmark’s support to TMEA’s Safe Trade, which is being implemented in other 10 countries, will enable continuous efforts to provide essential services at the key entry and exit points while keeping front line border workers safe.
Tanzania-Uganda Road Project to kick-off soon (IPPmedia)
The Tanzania-Uganda roads will cover a total of 252km and will be implemented under the Tanzania-Uganda Road Project being coordinated by the EAC. The Masaka-Mutukula sectionwill cover 89km while the Mutukula-Kyaka section has a length of 30km. Mutukula-Kyakahighway will link to a 133km Tanzanian section from Bugene to Kumunazi via Kasulo in the western regions. Mr. Mlote further added that the Tanzania-Uganda Road Project is aimed to improve intra-EAC transport. “The purpose is to facilitate the development of the regional road transport market in the East African region,” he said while receiving final designs from the project consultants in Arusha.
Industry, trade minister tasks new EPZA chief to develop industrial park (IPPMedia)
Deputy Minister for Industry and Trade, Exaud Kigahe said in Dar es Salaam on Friday during Mnali’s inauguration and the retirement of his predecessor, Colonel (rtd) Joseph Simbakalia, that developing new industrial plots countrywide should be given priority as the government targets industrialization. The Deputy Minister Trade and Industry pointed out that EPZA has a crucial role to play in facilitating development towards industrialisation as per the government’s blue print. Kigahe explained that for the country to have sustainable development, EPZA has an important role to allocate more special economic zones with necessary facilities for investments.
Uhuru deploys Cabinet secretaries to speed up legacy projects (The Star)
President Uhuru Kenyatta has deployed his Cabinet secretaries to ensure his legacy projects are completed before he leaves office. Kenyatta, who has been on a working tour of Nyeri, is keen to have all the projects completed as a way of cementing the gains made during his reign. The head of state has been on a warpath with a section of politicians who have started early campaigns for next year’s elections.
Liberia Settles Debt with African Union to Regain Full Membership and Voting Right (Front Page Africa)
Liberia, a founding member of the African Union, Organization of African Unity at the time, was last year relegated from full member to just an observer – a decision which was triggered by the accumulation of unpaid dues that caused Africa’s oldest nation to lose its voting right at the continental body. The Africa Union in 2016 decided on the need for equitable and predictable funding source to finance the Union so as to reduce dependency while implementing development and integration programs on the Continent. On Wednesday, Liberia’s Foreign Minister disclosed that the country has fully fulfilled its financial obligation to the pan-African body. This disclosure comes ahead of the African Union’s 34th Ordinary Session of Heads of State which is scheduled to take place virtually from February 3-7.
Importers Link Essential Commodity Price Hike to Demurrage Charges (Foroyaa Newspaper)
Importers of essential commodities in The Gambia have informed the National Assembly Select on Trade that the high charge on demurrage is one of the major factors contributing to the hike in prices of the essential commodities. “There is also a high demand on essential commodities, especially in Africa and the production level is very low,” said the importers. They also told the committee that amid the COVID-19 pandemic, they have problems in importing and when it comes to shipping, most of the ports in the Far East of India and Pakistan, have to operate the way they were in pre-COVID-19 era. “Before the pandemic, the costs of shipment of a container of rice used to be around US$1600, but today it is US$3800 to US$ 4000. At the same time, factories and suppliers are not working consistently,” the importers said.
AfCFTA: Proudly Made in Zim products (Zimbabwe Independnt)
Undoubtedly, Zimbabwe’s most valuable exports are minerals and tobacco which rake in over $4 billion in export earnings every year. Given the difficulties Zimbabwe is having to control its import bill for consumer products, it must diversify the economy from mining and manufacturers to ensure competitiveness of locally manufactured products. The current export retention scheme where the government retains 40% of all the foreign currency earned by exporters (Using a soft pegged exchange rate), while taxing the same entities in foreign currency discourages value added export growth and encourages importation of finished merchandise for domestic consumption.
Time to embrace non-traditional exports (Zambia Daily Mail)
Zambia is traditionally a copper-exporting country with the commodity accounting for about 70 percent of the earnings. This narrative is about to change following Government’s commitment to promoting non-traditional exports (NTEs) coupled with the coming into effect of the African Continental Free Trade Area (AfCFTA) on January 1, 2021. This will allow small and medium-scale entrepreneurs (SMEs) and local companies to penetrate the market.
Namibia to minimize agricultural imports (CGTN Africa)
Namibia will minimize importing agriculture products and prioritize creating market access for locally produced goods to stimulate economic growth, Minister of Agriculture, Water and Land Reform Calle Schlettwein said Tuesday. Schlettwein said the move aims to empower Namibian farmers and allow them a fair chance to supply their goods to the local market.
Cameroon – Nigeria: Will there be a defined border soon? (The Africa Report)
In an effort to resolve the ongoing border dispute over the hydrocarbon-rich Bakassi peninsula between Cameroon and Nigeria, The Cameroon-Nigeria Mixed Commission will hold an important session in Abuja on 15 February, chaired by the UN Special Representative for West Africa, Mohamed Ibn Chambas. The process of establishing a border along the 2,100km stretch between the two countries is now almost complete. However, there is still one problem. The commission’s experts have come up against 13 reference points corresponding to 100km of the route.
News from Africa and Africa’s international trade relations
REVIEW: African Free Trade Area Ushers In Hope for Stitching Fragmented Continent Together (UrduPoint News)
The African Continental Free Trade Area (AFCFTA) ushered in a sigh of relief when the 54-nation market was finally launched on January 1, 2021. “It is incredibly important for a number of reasons. This is because African countries haven’t been trading amongst themselves,” political economist Mzukisi Qobo told Sputnik.
Qobo is adamant that the free trade area will help harmonize regulations. “It will measure the safety of goods and products to overcome barriers. We are going to see greater movements of people. Some service providers need to be present in other countries to see a greater delivery of goods and services,” he said. This is also an opportunity for African governments to engage the private sector.
All this, according to the non-profit Trade Law Centre for Southern Africa (tralac), is meant to boost the competitiveness of the fragmented African market. The continent is home to 16 landlocked states and 33 of the world’s 47 least developed countries. “By reducing tariff and non-tariff barriers, it should become easier to trade with other African countries and also to improve the competitiveness of Africa’s traders with the rest of the World. These improvements can also serve to attract more investment to African countries-a larger, the integrated market is much more attractive than a small market,” tralac executive director Trudi Hartzenberg told Sputnik.
For the AFCFTA to succeed, African countries, however, have a lot of work ahead. According to Hartzenberg, they need to expand and diversify their productive capacity; improve customs, border management, and governance in general; invest in infrastructure, including digital infrastructure to reduce the costs of key services such as transport and communication.
The grouping of Africa into regional economic blocs is believed to be posing a challenge for seamless trade. According to Hartzenberg, a good example is trade among countries in Southern Africa and West Africa. “South Africa and Nigeria currently trade without any preferential trade arrangement. The tariffs they levy on goods from each other’s markets are those that they apply to imports from global markets such as China. Under the AFCFTA these tariffs are expected to be lower for 90 percent of tariff lines, making these markets much more attractive and encouraging intra-Africa trade, which currently stands at about 16 percent of Africa’s total trade,” she explained. Trade between South Africa and Nigeria, the TRALAC chief went on, is also a reminder that major impediments to intra-Africa trade are non-tariff barriers, such as significant delays at border posts, paper documentation and transport costs.
Development prospects in Africa undermined by a severe economic downturn (Africa Renewal)
In 2020, the world economy shrank by 4.3 per cent, over two and half times more than during the global crisis of 2009, says the latest World Economic Situation and Prospects. Developing countries saw a less severe contraction at 2.5 per cent, with an expected rebound of 5.7 per cent in 2021, according to the estimates presented in the report. However, economic contraction among developing nations, falling exports and local consumption rates as well as high levels of public debt will significantly increase poverty levels, says the report.
African countries are experiencing an unprecedented economic downturn with major adverse impacts on development. Lower commodity prices, the collapse of tourism and lower remittances – exacerbated by much-needed domestic lockdowns and other measures to control the spread of the pandemic – have caused a severe and widespread deterioration of the economic situation. Limited fiscal space, challenging financing conditions and rising public debt have increased the risks of debt distress.
A visa-free Africa will give Africans more access to their continent and business opportunities (Independent Online)
A drive toward One-Stop Border Posts (OSBP) could pave the institutional and economic bridges African countries need to cross between each other. Turning them into smooth paths toward regional integration and economies of scale. This cannot be done in isolation. The Infrastructure Consortium for Africa’s OSBP sourcebook highlights the importance of developing the value chains which drive the utilisation of these borders, and lure investment opportunities – especially along transport corridors. This means connecting people with industry and industry with customers through appropriate transport infrastructure, networks and systems.
Preparations for the fifty-third session of the Conference of African Ministers of Finance, Planning and Economic Development of the Economic Commission for Africa (ECA) have reached advanced stages. The Conference of Ministers will be held virtually from 17-23 March, 2021, under the theme “Africa’s sustainable industrialisation and diversification in the digital era in the context of Covid-19”. ECA’s Regional Integration and Trade Division Director, Stephen Karingi, says with the African Continental Free Trade Area (AfCFTA) now up and running, the theme comes in handy, offering ministers and experts a platform to discuss the need to ensure that digitalization strategies are integrated into policy and planning frameworks for industrialization.
38th Ordinary Session of the Executive Council | African Union
The 38th Ordinary Session of the Executive Council will officially open on 3rd February 2021, in the presence of the leadership and officials of the AU Commission. The Executive Council will consider the draft agenda and the draft decisions and declarations of the Assembly with appropriate recommendations for consideration by the Heads of State Assembly, scheduled to take place from 6-7 February 2021.
Deeper Economic Ties Envisaged, as COMESA Accredits top EU, Canadian Diplomats (COMESA)
New Heads of Diplomatic Missions of Canada, Germany and France have been accredited as Special Representatives to COMESA. Ambassadors Pamela O’Donnell of Canada, Dr. Anne Wager-Mitchell of Germany and François Goldblatt of France presented their Letters of Credence to Secretary General Chileshe Kapwepwe in a ceremony held virtually on Tuesday 2nd February 2021. In her statement, the Canadian Ambassador expressed her country’s interest to work with COMESA to advance shared values and increase opportunities for international trade. Specifically, Amb. O’Donnell identified gender and trade as one of the priority area that her country is keen to collaborate with COMESA.
IFC lends Kioo $10m for modern equipment (The East African)
World Bank’s private sector lending arm has granted $10 million to Kioo Ltd to invest in energy efficient machinery to reduce its carbon footprint in Tanzania. The International Finance Corporation advanced the loan to the Tanzanian glass manufacturer to weather Covid-19 related challenges and invest in the latest modern energy-efficient machinery. IFC said the loan will provide Kioo with working capital as the region’s beverage industry faces falling demand due to measures put in place to contain the spread of Covid-19, like closure of bars and restaurants.
Mobile cash transactions hit record Sh5.2trn on phone payment reliefs (Business Daily)
Kenyans moved Sh5.21 trillion through their phones last year, an equivalent of half of the country’s estimated GDP, spurred by relief measures on mobile phone payments to help to curb the spread of the coronavirus. Fresh data by the Central Bank of Kenya (CBK) shows the total transactions rose by 20 percent from Sh4.34 trillion the previous year. “A significant increase of mobile money usage has been noted over the period the measures have been in place, demonstrating that they were timely and effective,” the CBK said at its Monetary Policy Committee meeting in December.
Biden should use this roadmap for America to re-engage with Africa (Nation)
In recent decades, the United States-Africa relationship has disappointed both sides. Republican and Democratic presidents alike have treated the continent with benign neglect, if not outright contempt. And America has duly fallen behind China, India and France in terms of trade with Africa. The arrival of President Joe Biden provides an opportunity to rekindle the relationship. Typically, articulating an Africa strategy is not a top priority for new US presidents.
Africa – a dynamic region with great resilience, high aspirations, abundant resources, unbounded creativity, and plenty of ideas – should not rely on any foreign power for its political and economic future. The fuse of prosperity and peace must be lit from within. But since trade is the main engine of growth and socioeconomic development for African economies (all small and open) and the US is the dominant economic player, Africans are looking up to Biden to chart a new course. The US can reap major political and economic benefits by acting symbolically, strategically and operationally. The Biden administration can set the tone for a new partnership with several costless overtures.
Will China help or hurt the AfCFTA? (The Africa Report)
African countries want to trade more with their partners on the continent – through the African Continental Free Trade Area (AfCFTA) agreement that launched operations on 1 January – but will that hurt big trading partners like China? In its public statements, Beijing is wholly supportive of the AfCFTA, seeing it as a ‘win-win’ solution and arguing that free trade and multilateralism are key foundations to the global system. In November 2020, China’s foreign minister Wang Yi said the government “will provide cash assistance and capacity-building training to its secretariat”. The focus on intra-African links is likely to involve China in two main ways: trade and the building of infrastructure to facilitate trade.
Measuring the Informal Economy (IMF)
This paper proposes a framework for measuring the informal economy that is consistent with internationally agreed concepts and methodology for measuring GDP. Based on the proposed framework, the informal economy “comprises production of informal sector units, production of goods for own final use, production of domestic workers, and production generated by informal employment in formal enterprises.” This proposed framework will facilitate preparation of estimates of the informal economy as a component of GDP.
Energy Transformation in Southern Africa boosted by new IRENA agreement with SACREEE (ZAWYA)
The International Renewable Energy Agency (IRENA) and the Southern African Development Community’s (SADC) Centre for Renewable Energy and Energy Efficiency (SACREEE) signed a Memorandum of Understanding (MoU), to work together on accelerating the deployment renewable energy solutions, including decentralised technologies, in Southern African countries. “The COVID-19 pandemic has re-emphasised the importance of a reliable, affordable, clean energy,” said IRENA Director-General Francesco La Camera. “It has served as a stark reminder that the new energy age must be inclusive, just and low-carbon if we are to achieve sustainable development in Southern Africa and around the world. Africa can seize the moment for meaningful change, and dramatically improve socioeconomic outcomes by moving decisively towards the energy transformation. This agreement will bolster regional progress.”
Gas can play a key role in Africa’s energy transition (EURACTIV)
Africa’s transition to cleaner energy has been accelerating over the last decade. With strong demand expected to continue rising, driven by population growth, increasing urbanisation, industrialisation and trade, Africa’s new energy projects are a vital part of the global battle against climate change. However, the impact of COVID-19 on the global economy has brought Africa’s switch from fossil fuels to renewables into sharp focus. A study by the University of Oxford published this month showed that Africa is highly unlikely to meet its ambitious targets for the use of renewables, which are now only expected to account for less than 10% of Africa’s energy generation by 2030.
OPEC’s Planned Output Increase Is Offset by Africa Disruptions (BloombergQuint)
OPEC boosted crude production as planned last month, but the increase was tempered by disruptions at long-troubled member nations. The Organization of Petroleum Exporting Countries raised output by 190,000 barrels a day in January, according to a Bloomberg survey. That fits with an agreement between the group and its allies to revive some of the supplies halted during the pandemic. Yet the monthly change is barely two-thirds of the scheduled amount, as increases by OPEC’s Persian Gulf exporters were offset by disruptions in Nigeria and Libya.
Global Economy
Enhance resilience to recover inclusively, says new report (United Nations)
The Great Disruption caused by the COVID-19 pandemic has turned the global economy upside down, destroying millions of jobs and livelihoods. The global economic decline of 4.3 per cent in 2020 was the worst since the Great Depression and three times as bad as the contraction suffered during the Great Recession in 2009, found UN DESA’s World Economic Situation and Prospects 2021 report.
The road to recovery will be long and painful. The forecasted 4.7 per cent growth in 2021 will barely be enough to offset last year’s economic losses. While macroeconomically resilient – and usually rich – countries can expect to rebuild and rebound fast, more vulnerable – predominantly developing – countries will suffer the deep and widespread scarring effects of the crisis against the backdrop of limited fiscal space and unsustainable debt burden.
COVID-19 exposed the digital divide. Here’s how we can close it (Qrius)
In 2020, the world embraced digital transformation at an expedited pace, reimagining technology’s critical role in how we work, learn and live. At the same time, the COVID-19 pandemic illuminated a long-standing issue: billions of people remain without the universal human right of internet access. Many rural and low-income communities around the world, including those in large urban areas, lack reliable, affordable access. More importantly, wireless technology is no longer just important for consumers and entertainment; it is rapidly becoming critical to how we connect everything in the digital world. According to an International Telecommunication Union report, in the developed world the internet penetration rate is 87% but just 47% in developing countries and 19% in the least developed countries.
In a globalised world, proximity is no longer a requirement for trade (Telegraph)
The UK left the European Union one year ago and it is measure of our newly independent outlook that we are applying to join a free trade area with 11 Asian and Pacific nations many thousands of miles away. In a globalised world, geographical proximity is not a requirement for trade nowadays any more than it was during the days of Empire. For all its claim to be the world’s biggest single market, the EU bloc has shrunk as a percentage of global trade and will continue to decline as Asian economies grow. Forging good trading relations with the world’s fastest-growing nations is a far-sighted approach and a welcome departure from the short-termism often seen in government.
What the World Learned Setting Development Goals (IISD)
Even before the COVID-19 pandemic, governments were making uneven progress on the SDGs. The world was off track to end poverty by 2030, food insecurity was on the rise, inequality was increasing, and the environment was deteriorating. But COVID-19 has reversed years of progress on poverty, hunger, gender equality, healthcare, and education. While the virus has impacted everyone, it is harming the world’s poorest and vulnerable the most. It has exposed and exacerbated existing inequalities and injustices.
At first glance, the COVID-19 pandemic poses an insurmountable obstacle to achieving the 2030 Agenda. In reality, the only way out of the crisis is through its application. The SDGs and the 2030 Agenda are well suited to act as a roadmap to coordinate global responses to a crisis with the scale, depth, and complexity of this unprecedented pandemic. The continued pursuit of these goals will keep governments focused on what is needed for recovery: inclusion, equity, growth, resiliency, and sustainability.
Promoting trade while protecting marine species (FAO)
Trade in fish and other marine species, like corals, is critical for the lives and livelihoods of many communities, and demand has increased in recent decades. But global distribution is uneven, and overfishing and illegal trade are putting species at risk. The Convention on International Trade in Endangered Species of Wild Fauna and Flora, known as CITES, was conceived to survey and control the trade of plant and animal species facing extinction. FAO, together with the United Nations Environment Programme’s World Conservation Monitoring Centre, has released CITES and the Sea to reveal just how critical a role trade can play in the survival of a species.
Related News
tralac Daily News
Country focus
Ports upgrade and expand to support manufacturing and exports (Global Africa Network)
Almost a third of South Africa’s manufactured exports are produced in KwaZulu-Natal. A number of domestic and international manufacturers are either buying into the province or building new facilities in order to export finished goods.
The Special Economic Zones (SEZs) at Richards Bay and King Shaka International Airport (the Dube TradePort) are key components of the strategy of attracting investors to the province. Dube TradePort attracted R7-billion between 2012 and 2019 and the same amount is expected to accompany the development of Phase 1A and Phase 1F of the Richards Bay Industrial Development Zone (RBIDZ). There are plans to establish a clothing and textiles SEZ in the province to build on the province’s established strength in the sector and an automotive supplier park will be in operation by 2021.
‘We need exploration to grow our industry’ – Minerals Council (Engineering News)
Minerals Council South Africa president Mxolisi Mgojo on Monday during a virtual State of the Mining Nation described exploration as one of the low-hanging fruits that could change South Africa’s economic trajectory in the short term. Mgojo flashed a graph on to computer screens showing the plunge in direct investment, as well as underperformance of the South African economy, and said: “If we don’t fix this, the spectre of a full-blown sovereign debt crisis that is currently facing us will indeed become a frightening reality.”
Africa’s pandemic-hit mining sector faces exploration challenge (Moneyweb.co.za)
Travel restrictions, supply chain disruptions and risk aversion since the start of the Covid-19 pandemic have slammed the brakes on mining exploration in Africa, jeopardising the minerals supply pipeline. Inward investment will be a key focus at the annual Investing in African Mining Indaba virtual conference to be held on Tuesday and Wednesday, with companies looking to capitalise on higher metals prices and the transition to green energy. Without exploration, the continent’s rich mineral resources are at risk of being unutilised as older mines become unviable.
Vaccines arrive in SA, but it’s still a 2-week wait for the first jab – here’s what happens now (Business Insider)
South Africa has received its first consignment of Covid-19 vaccines – but a lot of logistical hurdles, and another two weeks, stand between those doses and the health workers due to receive them. After clearing customs in coordination with the South African Health Products Regulatory Authority (SAHPRA), the one million doses were handed over to Biovac. The bio-pharmaceutical company, formed in partnership with government in 2003, is tasked with overseeing the transport, storage, and distribution of the vaccines. Using an unmarked cargo carrier, Biovac transported the vaccine to a warehouse in Johannesburg. This secure facility is equipped with cold-chain management systems to ensure the stability and efficacy of the temperature-sensitive doses.
Fewer imports cut current account gap to 11-year low (Business Daily)
Kenya’s current account deficit closed 2020 at its lowest level in 11 years, helped by a drop in the import bill and resilient exports as well as diaspora remittance inflows despite the Covid pandemic crisis. The Central Bank of Kenya (CBK) said the current account deficit – which measures the net of hard currency inflows of goods, services and investments versus external payments – declined to 4.8 percent of gross domestic product (GDP) in the 12-months to December 2020, well below the earlier 5.1 percent projections. This is the lowest year-ending number since 2009, when the deficit stood at 4.6 percent.
Kenya spent Sh250bn by December on Covid-19 - IMF (The Star)
Kenya spent approximately $2.4 billion (close to Sh250 billion) by end of last year to fight the social-economic pressures of Covid-19, according to the latest International Monetary Fund (IMF) report. The summary of the country’s fiscal measures in response to the Covid-19 pandemic shows the country spent $2.3 billion on non-health measures and $100 million on healthcare. According to IMF, the global fiscal support reached nearly $14 trillion as of end-December 2020, up by about $2.2 trillion since October 2020.
Development partners pledge $234m towards Zimbabwe’s fight against COVID-19 (CGTN Africa)
Development partners have so far pledged 234 million U.S. dollars towards Zimbabwe’s fight against the COVID-19 pandemic, Finance Minister Mtuli Ncube said in a joint statement with Acting Health Minister Aaron Murwira ls said Monday. Disbursements by the development partners as at 28 January 2021 stand at 119 million U.S. dollars. The support, in both cash and kind, has been targeted at eight pillars of the country’s response plan, including infection prevention and control, case management and procurement of personal protective equipment (PPE).
A few weeks ago, Fitch Ratings highlighted the Nigerian government’s repeated reliance on its Ways and Means Facility (WMF) with the Central Bank of Nigeria (CBN) as a key indicator of weaknesses in public finance management. The WMF is a government overdraft – a monetary tool that extends credit from the Central Bank to the government when its account reaches zero. According to the report, the CBN’s repeated financing of government budgets could raise risks to macro-stability in the context of weak institutional safeguards that preserve the credibility of policymaking and the ability of the apex bank to control inflation.
Nigeria: Maritime Transport Policy Will Enhance FDI Inflow – Minister (Vnanguard)
Minister of State for Transportation, Senator Gbemisola Saraki, says the National Maritime Transport Policy being developed by Nigeria would lead to improved Foreign Direct Investment (FDI) inflow and enhance the ability of the Nigerian maritime sector to compete internationally. The minister underscored the strategic economic importance of maritime transportation, saying adoption of the transport policy would mark a paradigm shift in Nigeria’s economic competitiveness. The transport policy would also give Nigeria pride of place in the African Continental Free Trade Area (AfCFTA) agreement.
Nigeria-Morocco Pipeline: Nigerian President Shatters Algeria’s Hopes (Morocco World News)
The project of the Nigeria-Morocco gas pipeline has been competing for a few years with the Nigeria-Algeria pipeline project, known as the Trans-Saharan pipeline. From Morocco’s and Algeria’s perspectives, the contest was especially fierce because it is highly unlikely for Nigeria to materialize two projects with similar, even identical objectives. While the Trans-Saharan pipeline came to the forefront several decades ago, the Nigeria-Morocco pipeline became the most prominent pan-African gas transport project in less than five years after it was initially proposed in late 2016.
Maait: Economic reform program put Egypt among world’s fastest growing economies (SIS)
Minister of Finance Mohamed Maait said Monday the economic reform Egypt adopted during the past years with the support of the political leadership and the great Egyptian people, put the country among the fastest-growing economies in the world. He added that the economic reform program helped Egypt to deal successfully with the impact of COVID-19, a matter that contributed to achieving economic and financial stability.
Lesotho: ‘45,000 textile jobs at severe risk’ (Lesotho Times)
The United States government says it is “disheartened” by Lesotho’s failure to address its human trafficking concerns. This puts the country on the brink, with the real risk of losing billions of maloti in funding under the second compact. The US had given Prime Minister Moeketsi Majoro’s government a 1 February 2021 deadline to address an array of human trafficking concerns failing which Lesotho would lose out on a number of American aid and trade instruments meant to help poor African countries.
News from Africa and Africa’s international trade relations
Updates on the AfCFTA
Policy Brief: African Continental Free Trade Area Completes First Month of Trading (IISD’s SDG Knowledge Hub)
The African Continental Free Trade Area (AfCFTA) has wrapped up its first month of trading, having kicked off at the start of the new year. The nascent and wide-reaching trade area will be watched closely given its scope, size, and potential development impacts, along with what it means for existing regional communities and trading ties with other partners. While the agreement and Phase 1 protocols were adopted in early 2018, the process of securing the necessary signatures and ratifications for entry into force continued through 2019.
The AfCFTA has been designed as a multi-stage process, meaning that the agreement will continue to evolve over time, and more negotiations are planned. The first phase, covering goods and services trade, took effect this year, though talks to finalize tariff schedules and the rules of origin provisions for Phase 1 remain ongoing. Officials say that, given the rules of origin talks cover approximately four-fifths of tariff lines, the AfCFTA’s terms will already apply to trade on those products. Rules of origin, in trade parlance, refers to how much content must be produced locally to be treated as being from that country.
Negotiators will now undertake Phase 2, which involves developing protocols on investment, competition policy, and intellectual property rights (IPR). A third phase will involve the negotiation of an e-commerce protocol.
Africa: AfCFTA is now Operational – What to Expect in the First Few Months (Lexology)
Pomy Ketema, Counsel at Baker McKenzie in New York, discusses the agreement’s latest developments, and how businesses in Africa can benefit from AfCFTA, noting that the profitability of any endeavor depends on many factors, commercial and otherwise.
There is already a degree of liberalized trade and integration under the eight RECs recognized by the African Union, and other customs and monetary unions that exist elsewhere on the continent. To date, it has been reported that 41 countries and the RECs, including SACU, EAC, CEMAC and ECOWAS, have submitted their tariff offers and service commitments. Admittedly, the implementation process has been slower than anticipated, with tariff books still being updated and administrative procedures getting rolled out.
Local presence brings with it more commitments and higher costs of doing business. Footprint could be managed via ready-to-use industrial parks and special zones, which may provide easy access to major roads, onsite “one-stop” administrative capabilities to handle basic regulatory and procedural matters, and tax and customs deferral until products are introduced into the local market or exported. The incentives offered by African countries vary widely, such as multi-year income tax exemptions based on the industry involved, location-specific tax reductions or reciprocal low-tax-rate arrangements under REC agreements.
There is no single magic formula for operating under the AfCFTA agreement as its framework is layered onto existing trade relationships, and the manner of its application depends on the type of business activity involved and the arrangements among the countries that are implicated in a particular transaction. As a practical matter, low tariff rates are not the sole driver of business decisions. The profitability of any endeavor depends on many factors, commercial and otherwise, and AfCFTA’s value proposition lies in the incremental benefits it offers to enhance long-term value creation for goods and services to be traded in new markets.
A month into AfCFTA; Assessing the winners and losers, how to minimize risks (Myjoyonline.com)
The continent is a month old into the implementation of the Africa Continental Free Trade Agreement (AfCFTA).Who are the winners and losers, and how do we minimize the risks of the single market? This is the question many investors home and abroad are asking.
Speaking to Charles Ayitey on Business Live on Joy News, Founder and CEO for EBII Group, Adjoa Adjei-Twum, called for more easing of access to financial and other funding instruments for small scale industries to take advantage of. “These small industries make 70 to 80% of businesses on the continent. They must be exposed to readily avenues streams of credit that will help them scale up and take advantage of this AfCFTA,” she stated.
Even as the single market agreement has started, truly innovative approaches to meet financing needs are called for, beyond the routine method of securing loans from multilateral financial institutions. There’s been a proposal for the formation of a continental public-private partnership, in which African businesses that will profit from the expansion of trade under AfCFTA would be major financiers. Not only are the vast majority of African businesses locally based small and medium-sized enterprises, but also there is a daunting lack of cost-effective infrastructure to get goods and services to market at competitive rates.
Although the implementation of some operational aspects of the African Continental Free Trade Area (AfCFTA) has been temporarily suspended, the agreement would be a very important element to support post-pandemic recovery and to foster economic growth in the medium term in sub-Saharan Africa through the creation of larger and more integrated markets and the promotion of intracontinental trade.
The AfCFTA and open borders: Opportunities presented by free migration (Africa Portal)
The AfCFTA presents an opportunity for traders, both large multinationals and small and medium-sized enterprises (SMEs), to trade across Africa through a liberalised market for goods and services. Free migration of persons is at the heart of free trade. In Africa, trade is largely propagated through informal cross-border trade (ICBT). In Africa, these traders are predominantly women and youth. A high percentage of about 30%-40% of trade in Africa is through ICBT to the point that some refer to ICBT as “Africa’s Real Economy”.
With this in mind, free migration presents at least three opportunities that would catapult Africa to greater economic prosperity. First, the recognition of informal cross border traders (ICBTs) and their inclusion to the continent’s formal economic matrix. Second, the alleviation of poverty through remittances. Third, building and growing the African economy by reducing reliance on the “colonial economic model”.
Infrastructure and Industrialisation remain key pillars of AfCFTA (IPP Media)
The 6th PIDA Week ended on a high note with the various infrastructure stakeholders re-affirming the crucial role of PIDA in the achievement of the main goals of the AU Agenda 2063 for continental integration, prosperity and peace. They further reiterated their commitment to regional integration and the development of integrated and efficient infrastructure.
Memo to Leaders: Three “no regret” decisions for financing Africa’s post COVID-19 future (COVID-19 Africa Watch)
In January 2021, Africa hit a new milestone: with over three million COVID-19 infections, the disease is spreading faster now than during Spring 2020. The fact is, though, that case numbers remain much lower than other world regions, leading to a perception that the disease has largely bypassed Africa. But the economic and social aftershocks have not. Now is the time for world leaders to act, both to contain the economic damage before it gets worse and to help the continent get back on track toward a more democratic and more prosperous future.
Uganda is making substantial progress towards the implementation of the harmonised standards agreed to under the Tripartite Transit and Transport Facilitation Programme (TTTFP). The TTTFP is an undertaking of the three Regional Economic Communities in the East and Southern Africa region, namely COMESA, EAC and SADC. TTTFP, a flagship programme under the Tripartite Free Trade Area Agreement is funded by the European Union under the 11th EDF. The programme addresses cross border transport and trade challenges such as high transport costs and delays through the implementation of harmonised road transport policies, laws, regulations, systems and standards that affect drivers, loads, vehicles and road infrastructure in the countries of the Eastern Africa and Southern Africa (EA-SA) region.
EALA 2nd Meeting of 4th Session gets underway virtually (EAC)
Fresh from the passage of the EAC Budget 2020/2021 at a Special Sitting held on January 27th, 2021, the regional Assembly has commenced its Second Meeting of the Forth Session via virtual means. The Session which got underway on January 28th, 2021, with a meeting of the EALA Commission, runs until February 17th, 2021. On top billing at the session, is the debate and possible enactment of the EAC Integrity and Anti-Corruption Bill, 2019. The Bill envisages the promotion of good governance, transparency and accountability in the EAC Organs and Institutions. A number of reports, Motions and Resolutions are also expected to be tabled and or/debated at the sitting.
Scaled up infrastructure, partnerships, integrating gender, de-risking and mobilizing private sector finance are all essential to long-term progress towards the Sustainable Development Goals, participants at the 2021 Climate Adaptation Summit heard. Speaking on the summit’s infrastructure panel, AfDB Vice President for Private Sector, Infrastructure and Industrialization, Solomon Quaynor, said: “African governments cannot afford replacement costs, so it is best to build resilient and quality infrastructure from the onset, as well as implement adaptation improvements on existing infrastructure immediately.”
China’s Engagement in Africa Becomes Focal Point at Linda Thomas-Greenfield’s Confirmation Hearing to Become U.S. Envoy to the UN (The China Africa Project)
Linda Thomas-Greenfield, President Biden’s nominee for U.S. ambassador to the United Nations, came under criticism on Wednesday during her confirmation hearing, for a speech she made in 2019 at a now-closed Confucius Institute in Savannah, Georgia. Republican senators argued the speech was overly complimentary of Chinese engagement in Africa. In that speech, Thomas-Greenfield said both the U.S. and China could learn from each other’s experience in Africa in contributing to African development.
The portion of the speech that got the most attention at the hearing, however, was the play on China’s “win-win development” motto: “In the U.S.-China-Africa relationship, win-win-win cooperation is possible and common development can be achieved. If we all took a step back to consider it, we would see that if we banded together to support Africa’s growth and development, we would all be better for it.”
As Virus Variants Spread, ‘No One Is Safe Until Everyone Is Safe’ (The New York Times)
While more than 90 million people worldwide have been vaccinated, only 25 in all of sub-Saharan Africa, a region of about one billion people, have been given doses outside of drug trials, according to the World Health Organization. But as new variants like the one discovered in South Africa migrate to more countries – including the United States – it is becoming ever clearer that the tragedy for poorer countries could become a tragedy for every country. The more the virus spreads, and the longer it takes to vaccinate people, the greater chance it has to continue to mutate in ways that put the whole world at risk.
Top US lawmaker vows to reverse Trump’s ‘insulting’ Africa policy (Al Jazeera)
The new chairman of the US House Foreign Affairs Committee has pledged to put sub-Saharan Africa “on the front burner” of United States foreign policy. “We have an opportunity to redefine America’s foreign policy and to do so in a way that makes it clear that America is back at the table,” Congressman Gregory Meeks said during an online event hosted by the Center for Strategic and International Studies (CSIS). “This is especially true in Africa, which the previous administration spent the last four years viewing only through the prism of competition with China and Russia.”
US Chamber drives for Kenya-US trade deal (Business Daily)
The United States Chamber of Commerce has urged President Joe Biden to seal a new trade deal with Kenya, which was initiated by his predecessor Donald Trump. The biggest and most influential US business lobby group wants the ongoing negotiations for a free trade agreement (FTA) between the two nations concluded fast to pave the way for uptake of business and investment opportunities. “The Chamber supports the negotiation of a high-standard free trade agreement with Kenya, which may serve as a model for future trade and investment engagement with Africa,” said the business group in a series of recommendations for the new Biden administration.
Beijing expands Indian Ocean FTAs westward with Mauritius (Nikkei Asia)
China's free trade agreement with the small island-nation of Mauritius came into effect in January, increasing the Asian powerhouse's presence in the Indian Ocean where its regional rival India has long dominated. The deal was signed in October 2019 and is the first for Beijing with an African country. It is expected to pave the way for China into the large and lucrative African market, and coincides with the launch of the African Continental Free Trade Area, home to an estimated 1.3 billion consumers.
Global economy
The Global Food Trade Has Been Upended By a Container Crisis (Financial Post)
While it’s not entirely uncommon for containers to transit back empty after a voyage, carriers usually try to backfill them to profit from shipping rates in both directions. But the cost of carrying goods from China to the U.S. is almost 10 times higher than the opposite journey, prompting liners to favor empty boxes instead of loading them, Freightos data showed.
UNCTAD Reveals Economic Slowdown Before COVID-19, Provides Key Data on RCEP Agreement (IISD)
The UN Conference on Trade and Development (UNCTAD) has released two annual publications on key statistics and trends observed in the previous calendar year. Each report is part of a larger effort by UNCTAD to analyze trade-related issues of particular importance to developing countries. The report titled, ‘Key Statistics and Trends in International Trade 2020: Trade Trends Under the COVID-19 Pandemic,’ highlights that although COVID-19 “severely disrupted the world economy,” economic conditions were deteriorating prior to the outbreak. UNCTAD notes that trade tensions between the US and China, fears over a “disorderly Brexit” in Europe, and a negative global output outlook each contributed to a widespread trade downturn in 2019 that preceded the pandemic.
The Pre-Pandemic Debt Landscape – and Why It Matters (IMF Blog)
Many countries entered the pandemic with elevated debt levels. Our new update of the IMF’s Global Debt Database shows that global debt – public plus private – reached $197 trillion in 2019, up by $9 trillion from the previous year. This substantial debt created challenges for countries that faced a debt surge in 2020, as economic activity collapsed and governments acted swiftly to provide support during the pandemic.
Increasing tax revenue in developing countries (World Bank blog)
Tax revenue collection as a share of GDP is only 15 to 20% in lower and middle income countries but over 30% in upper income countries. This gap implies that developing countries have less tax revenue to spend on public goods such as infrastructure and good governance. The gap is caused less by a choice of low tax rates and more by challenges associated with tax collection in developing countries: these include informality and misreporting, by both workers and firms. These challenges generate a vicious cycle, where developing countries remain poor because they are unable to mobilize revenue to invest in public goods. Whar policies can build governments’ ability to raise revenue, and leverage that revenue to provide public goods, in developing countries?
How IDA can support recovery from the Covid-19 crisis (ODI)
This expansion of IDA grants and credits in 2020 and 2021 comes at a price though. Unless shareholders pledge additional contributions in 2021 – the current IDA19 cycle is due to end in June 2023 – or if lending policies change, IDA operations are expected to fall by 35% in 2022. This would mean a drop from $35 billion in 2021 to $22.5 billion in 2022. If more countries are assessed to be at greater risk of debt distress as a result of the crisis, then the sum of IDA funding will fall even further. This is because a greater proportion of the overall IDA envelope will be paid out as grants.
‘Going digital’: How to build an inclusive digital economy in the wake of COVID-19 (UNCTAD)
In 2020, the global economy shrank by 4.3% – over two and half times more than during the 2008-2009 global financial crisis. Lockdowns and other preventive measures that governments have put in place to curb the spread of the virus have disrupted economic activity in ways for which societies were largely unprepared. As social distancing and restrictions on movement became the new normal, businesses and consumers increasingly “went digital”, providing and purchasing more goods and services online. Soon-to-be released findings from a study conducted by UNCTAD and eTrade for all partners shows the strong uptake in e-commerce wasn’t a rich world phenomenon. In fact, consumers in emerging economies have made the greatest shift to online shopping.
Study shows vaccine nationalism could cost rich countries US$4.5 trillion (ICC)
A new study commissioned by the ICC Research Foundation has found that the global economy stands to lose as much as $9.2 trillion if governments fail to ensure developing economy access to COVID-19 vaccines, as much as half of which would fall on advanced economies. The study clearly demonstrates the economic case to invest in the Access to COVID-19 Tools (ACT) Accelerator, the global collaboration to accelerate the development, production, and equitable access to COVID-19 tests, treatments, and vaccines. While other analyses have highlighted the economic costs of vaccine nationalism, this new study is the first to incorporate both supply and demand shocks, domestic and foreign, at the sector level, for an open economy operating within global supply chains.
The race to resilience: protecting poor and vulnerable communities (UN Environment)
Even if we limit global warming to well below 2°C, or even 1.5°C, the poorest and most vulnerable will feel the weight of further loss and damage. Vulnerable communities are already at high risk from climate-related shocks, including crop failures, spikes in food prices and more diseases. Without efforts to cut emissions combined with adaptation and resilience, another 100 million could fall into poverty this decade. To catch up, it is vital that we focus on three areas. First, we must put financing in place for adaptation. Secondly, we must place a stronger focus on nature-based solutions in updated NDCs. Thirdly, we must unite the nature and climate agendas.
Fisheries and aquaculture are of critical importance for global food security as well as recovering from the COVID-19 crisis, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), QU Dongyu, said at the opening of the 34th session of the FAO Committee on Fisheries (COFI). “The potential of a modern aquaculture to grow and feed the world is extraordinary,” Qu said, noting that 10 percent of the world’s population relies on the fisheries and aquaculture sector for their livelihoods, mostly small producers that need support.
Looking Back on the WCO Theme for 2020: A WCO Publication on Sustainability (WCO)
The WCO released a new publication “Customs fostering sustainability for People, Prosperity and the Planet”, which is designed as a look back on the WCO theme for 2020. This publication is aimed at raising awareness of the related WCO initiatives and programmes and of the relevant WCO tools for building Members’ capacity to achieve long-term economic, social and environmental goals at the national, regional and global levels.
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Country focus
Short-term low growth is ‘new normal’ (Moneyweb.co.za)
As the impact of the Covid-19 pandemic continues to ripple through 2021 and South Africa faces economic contraction and high levels of business risk, there are some positive signals that suggest business should be playing it safe for now while keeping an eye on the long game.
Covid-19 could not have happened at a less opportune time for South Africa, already suffering from high consumer, corporate and sovereign debt, with credit ratings below investment grade, low savings rates and high unemployment. Although they were necessary, economic support and stimulus measures dipped the country deeper into deficit and lockdowns amplified the economic woes but there are reasons for optimism despite this negativity, he said.
Economic growth crucial at this venture, says BLSA CEO (Engineering News)
The imperative of economic growth is now even more obvious than at the start of the pandemic, which was characterised by a period of rapid action by the government, Business Leadership South Africa (BLSA) CEO Busi Mavuso said in a weekly newsletter. She noted that, in March 2020, a state of disaster was declared and many emergency regulations were fast-tracked.
Citrus sector celebrates record export season (Engineering News)
Industry organisation the Citrus Growers’ Association of Southern Africa (CGA) says South Africa had a record-breaking 2020 export season that delivered 146-million cartons of citrus to the rest of the world. “These figures indicate phenomenal growth within the South African citrus industry, which remains the second-largest exporter of fresh citrus in the world after Spain.
South African wine sales boom in UK, US, Germany during pandemic (Quartz)
The latest in a series of bans on the sale of alcohol since the start of the pandemic has left winemakers with a surplus of 300 million liters (79.2 million gallons or around 400 million bottles) – nearly half of last year’s harvest – in storerooms, with the latest annual harvest about to begin, according to an industry trade group which is threatening legal action to invalidate the nationwide edict. The industry’s woes come amid a rise in popularity for South African wines around the world, including in the US, which in the past year has joined the UK and the Netherlands among top export destinations. South Africa is the world’s ninth largest producer of wine, which contributed almost $2 billion to the country’s $351 billion GDP in 2019.
Why Bots hasn’t ratified AfCFTA (The Southern Times)
Botswana says it will only ratify the African Continental Free Trade (AfCFTA) Agreement after it completes all attendant internal processes consistent with its own requirements for approval of international treaties. “However, this is a peculiar stance where tariff offers from negotiating partners were only received late in December 2020. We are currently analysing the offers in consultation with our main stakeholders (the private sector) who will be the main beneficiaries of the AfCFTA,” explained chief negotiator in Botswana’s Investment, Trade and Industry Ministry, Mr Phazha Butale.
Bots, Nam to co-operate on vaccine procurement (The Southern Times)
Botswana and Namibia have agreed to work closely in the procurement and distribution of COVID-19 vaccines, in the lobby for legalisation of controlled ivory trading, and in enhancing bilateral commerce. The agreements were sealed by Presidents Mokgweetsi Masisi (Botswana) and Hage Geingob (Namibia) after a meeting of the Namibia-Botswana Biannual Commission in Windhoek on January 29. “In terms of trade and investment, both sides exchanged views on their post-COVID-19 joint economic recoveries. The two countries agreed to leverage on the Trans-Kalahari Corridor to create value chains in agriculture, tourism and trade facilitation,” the communique added.
Botswana: An economy in need of a hope ‘transfusion’ (Mmegi Online)
Experts believe the economy is in desperate need of hope, a critical commodity to re-energise local companies, foreign investors as well as the innovative sector towards a clear strategy that kickstarts the country’s recovery from the pandemic’s impact. “Things look very gloomy now. The most important thing is the direction and the path of the economy and right now, it’s not clearly visible where we are heading.” On Monday, Finance and Development minister, Thapelo Matsheka will present the 2021-2022 budget, giving what is expected to be a bleak picture of the state of the economy and its prospects.
Jobs in Rwanda: Sectors to watch in 2021 (The New Times)
The Covid-19 pandemic and its consequent effects have destabilized the employment industry across the world and have fast changed employment trends. Locally, the scene is likely to be disrupted in multiple ways given the trends seen in the previous year. As of October 2020, the unemployment rate was at 15 per cent according to the National Institute of Statistics of Rwanda’s (NISR) labour force survey, from 22 per cent in May. With the lockdown slowing down a number of economic sectors, experts say that economic growth and consequent job creation is likely achieved from adjustments of the agriculture sector.
Kenya: Unpredictable tax regime hurting economy – experts (Nation)
The government’s frequent introduction of new taxes and failure to develop a proper tax policy framework is hurting the economy more and risks raising inflation and driving away investors to neighbouring countries. This is according to players from the agriculture, manufacturing, finance and other economic sectors, who have criticised the state for coming up with taxes whose formulation is based on the shallow vision of merely netting in more revenue. They faulted several steps taken by the government to effect the raising of taxes for businesses and citizens, including the reversal of Covid-19 tax relief measures that had been placed last year.
Kenyan economy tipped to grow 5pc (Business Daily)
Global economists have marginally upgraded Kenya’s economic growth outlook for this year, citing debt reliefs and stronger capital expenditure. A consensus outlook from 15 global banks, consultancies and think-tanks shows that Kenya’s economy is likely to rebound from an estimated growth of 0.6 per cent to five per cent, an upward revision from 4.9 per cent a month ago. “Moreover, the vaccine rollout should start in February when the first doses arrive in the country, boding well for activity ahead, while debt relief should aid public finances and bolster stimulus to support the economy further.”
CBK gets bigger role on digital payment systems (Business Daily)
The Central Bank of Kenya (CBK) is set to tighten oversight of mobile money as the government moves to safeguard billions of shillings paid through its expanding digital service platforms. Treasury Cabinet Secretary Ukur Yatani said in his draft 2021 Budget Policy Statement (BPS): “Disruption of mobile services due to infrastructural challenges or cybercrime and fraud could lead to significant loss of potential Government revenue, customer deposits and market confidence… To mitigate against such threats, CBK is in the process of formulating a National Payments Strategy to address emerging risks and guide the payments ecosystem in Kenya.”
Dar, Addis trade volume soars (Dailynews)
The trade volume between Tanzania and Ethiopia has tremendously gone up from 1.5bn/- to 13.5bn/- in 2012 to 2019 respectively, as the two nations look for increased business ties. According to Foreign and East African Cooperation Minister Prof Palamagamba Kabudi, Tanzania would capitalise on the visit to exchange experiences and boost trade and investment opportunities, especially on revitalising the leather industry. Ethiopia is Africa’s leading country with the largest livestock, making the Horn of Africa country the powerhouse and best destination for leather and meat factories
‘Zim needs inclusive economic growth’ (The Herald)
Public Service, Labour and Social Welfare Minister Professor Paul Mavima, says Zimbabwe needs to work on urgent and robust measures that allow for inclusive economic growth and reduce the inequality gap. This, he said will ensure every Zimbabwean across the political divide benefits from the vast natural wealth available in the country, ranging from mineral deposits, tourist attractions and good weather favourable for agriculture production. This is in addition to skilled human resources. However, there are still economic injustices prevalent as there are extremely rich and poor people.
Zim targets UAE food export market (The Herald)
Zimbabwe is eyeing expansion of exports of value added agricultural produce as the country takes advantage of trade opportunities in the United Arab Emirates (UAE) to grow the economy, create more jobs, entrench entrepreneurship and sharpen innovation along various agriculture and food value chains. This comes as the UAE has expressed interest in partnering with Zimbabwe to explore and strengthen agri-business opportunities.
Zimbabwe sets aside $100 million to buy COVID-19 vaccines (CGTN Africa)
Zimbabwe has set aside $100 million to acquire COVID-19 vaccines but the government is still waiting for its scientists to recommend which type to buy, a state-owned newspaper reported on Sunday. George Guvamatanga, the ministry of finance secretary, told the Sunday Mail that the government would use funds from a 2020 budget surplus and reallocate some of this year’s budget to buy the vaccines. Finance Minister Mthuli Ncube said in November that a budget surplus was expected for 2020, although final figures have not yet been published.
AfCFTA: Morocco In Position to Benefit From Intra-African Trade (Morocco World News)
Morocco’s strategic location and the competitiveness of its economy will see a lot of benefits from the African Continental Free Trade Area (AfCFTA) that was launched on January 1, 2021. Ezz El-Din Ghufran, Moroccan academic, made his remarks at a meeting organized by the Policy Center for the New South, a leading Moroccan think tank.
Tunisia, Morocco are digital economy standouts (Brazil-Arab News Agency)
An OECD report has shown that these are two North African countries, Tunisia and Morocco, best employ digital tools for economic purposes. According to the survey, 57% of businesses in Tunisia and Morocco have websites. The rates are 47% for small businesses, 67% for medium businesses, and 80% for large ones. The OECD notes that this indicates major digitalization, unlike in other countries.
Nigeria to leverage on public-private partnership with OneAgrix for better market access in agriculture and halal under AfCFTA (Salaam Gateway)
Nigeria is poised to leverage on the recent launch of the African Continental Free Trade Agreement (AfCFTA) for its Agricultural and Halal food products with its public-private partnership with OneAgrix, a global B2B Agriculture and Halal marketplace. This enables the country to gain better market access by using OneAgrix’s trading platform both regionally and globally. Food security is an issue that has been highlighted by the Covid-19 pandemic as more countries are looking to diversify their food sources.
AfCFTA: MAN asks FG to ensure strict compliance on anti-dumping laws (Vanguard)
The Manufacturers Association of Nigeria (MAN) has urged Federal Government to put in place effective monitoring mechanism to ensure that all countries operate based on the rule of origin that has been agreed on dumping. Speaking at the 2021 edition of the MAN Reporter of the year Award Ceremony/ Presidential Media Luncheon, the president of MAN, Engr. Mansur Ahmed said the dumping issue frankly requires political will.
How Cameroon plans to conquer the ECCAS and Nigerian pharmaceutical marketsx (UNECA)
With technical support from the United Nations Economic Commission for Africa (ECA), public and private sector representatives have consolidated a comprehensive framework to render Cameroon’s local pharmaceutical sector better structured, resilient, productive, competitive and viable in the short term. The Government of Cameroon hopes to steer local actors to capture a more sizeable part of the circa the FCFA 200 billion (US$ 369 million) local market for pharmaceuticals and make inroads into the ECCAS subregional and Nigerian markets. Currently, local production meets only 5% of the national needs, as Cameroon imports over 90% of its needed pharmaceuticals.
Shift focus from upscaling to upgrading – Ofosu-Dorte urges businesses (BusinessGhana)
Stakeholders in Ghana’s manufacturing sector are being encouraged to prioritize upgrading over upscaling when it comes to goods and services emanating from Ghana into other African countries as part of the African Continental Free Trade Area (AfCFTA). Speaking on the Citi Breakfast Show as part of the station’s Effective Living Series, David Ofosu-Dorte, the Senior Partner at AB and David Africa, said Ghanaian products will have to prioritize quality over quantity in order to boost demand from other parts of the continent.
Libya Keen on Rebooting its Engagement with COMESA (COMESA)
The State of Libya has renewed its commitment to COMESA and resolved to actively participate and implement regional integration programmes to make a more meaningful impact locally and in the bloc. A first of its kind two-day sensitization workshop was held virtually for the country on 25-26 January 2021 during which Libya’s Minister of Foreign Affairs His Excellency Mohamed Taher Hamouda Siala reiterated his government’s resolve to be more engaged in the activities and programmes of COMESA for the benefit of the country and the region.
News from Africa and Africa’s international trade relations
Teething problems slow AfCFTA take-off (The Guardian Nigeria)
On January 4, Ghana organised an event to commemorate its first export under the AfCFTA framework, setting a tall order for other countries. Ghana is reportedly one of three countries, including Egypt and South Africa that have fit for purpose border and custom facilities, aligning with AfCFTA’s trade terms. Nigeria, the regional bloc’s most populous country and biggest economy is yet to secure the required infrastructure to leverage the agreement.
Speaking during a virtual press conference, recently, Secretary-General of the African Continental Free Trade Area Secretariat, Wamkele Mene, said: “It may take some time before each of us sees the direct benefit. We are not going to be deterred by our critics who say they don’t see evidence that trading has actually started.” Stakeholders are however worried that the processes are not taking shape fast enough.
UN vows to deepen Africa’s trade integration, implement free trade agreement (Macau Business)
The United Nations Economic Commission for Africa (UNECA) on Friday expressed its keen intention to deepen Africa’s trade integration and effectively implement the African Continental Free Trade Area (AfCFTA) Agreement. “The number of members that have ratified the African Continental Free Trade Area (AfCFTA) agreement is approaching 40 with the continent’s leadership showing immense political will towards achieving its aspirations,” the UN agency said in a statement on Friday.
African economies to watch in 2021 with Covid, debt impact (Quartz Africa)
Sub-Saharan Africa will see moderate but positive growth of 2.7% this year, a welcome rebound from the region’s first recession of 25 years in 2020 when the region shrank by an estimated -3.7%. But 2021 is probably going to be just as tough for African economies as it was in 2020. Last year, there was a 6.1% decline in per capita income in the region, the “deepest contraction on record,” says the World Bank in its latest global outlook. There’ll be a further 0.2% decline this year.
WEF eyes benefits of an accelerated free trade area (IOL)
African delegates at the World Economic Forum (WEF) on Friday agreed that the continent could accelerate the build-up of productive infrastructure through the African Continental Free Trade Area (AfCFTA). Ghana’s President Nana Addo Dankwa Akufo-Addo said it was crucial that Africa harnesses its own resources and deploy them as creatively as possible if it was to produce an inclusive, sustainable recovery from the Covid-19 pandemic. “The multilateral system is under strain, and we must do all that we can to generate the needed resources to achieve sustainable development,” Akufo-Addo said. “We in Africa should make every effort to generate for ourselves the additional funds we need to advance, and hopefully our external partners – private and public – will lend their backing to the priorities we set.”
African dealmaking decreases, the African Continental Free Trade Agreement expected to boost recovery (BusinessGhana)
Dealmaking activity in sub-Saharan Africa (SSA) dropped in the second half of 2020, when compared to the second half of 2019 and year-on-year, deals were also down in both volume and value when compared to 2019. As Africa gears up for its post-pandemic recovery, it appears that the opportunities presented by the recent launch of free trade across the continent, as well as foreign investment opportunities, due in part to new partnerships and trade relationships, could be a key factor in attracting much needed investment to the region.
Modern retail on the rise in sub-Saharan Africa, but traditional trade still rules (How we made it in Africa)
Africa’s modern retail development continues to grow and improve in quality but still lags traditional trade. A growing population and larger, more developed cities translate into vast opportunities for retail. Sub-Saharan Africa is made up of a combination of traditional and modern retailing channels. These channels vary by market and are influenced by factors such as the economy, state of development, consumer preferences, internet connectivity, availability and cost of labour and the local culture. All of these variables form a factor that puts different countries’ retail markets at different development stages. Consumer spending is mainly concentrated in the informal/traditional retail sector.
How Africa can benefit from the new commodity super cycle (Institute for Security Studies)
Lessons from the past decade can prevent the continent from bungling the opportunities now on offer. Since the dramatic worldwide 21-year low of April 2020, oil prices have recovered by almost 300%, copper prices have reached an eight-year high and liquefied natural gas prices have recovered by over 700%. This commodity rebound – supported by accommodative global monetary and fiscal policies, COVID-19 vaccine rollouts, and increased investor and market confidence – has significantly boosted prospects of a global economic recovery. This has implications for Africa, whose vulnerability to boom-bust scenarios is well documented.
African countries united in COVID-19 response: President (SAnews)
President Cyril Ramaphosa has described the COVID-19 pandemic as a health, humanitarian, social and economic crisis for African countries, most of whom are inadequately resourced to manage a health emergency of this size. However, African countries are responding to the crises collectively.
Building the Africa We Want: NEPAD Turns 20 (AUDA-NEPAD)
“An impressive accomplishment of NEPAD has been the strengthening of partnerships with the rest of the world. NEPAD has engaged the G20, G8, OECD, FOCAC, TICAD and the UN system on new development cooperation and aid architecture for Africa. Over its 20 years, NEPAD has promoted programmes in areas such as agriculture, health, education and training, the environment, information and communication technology and infrastructure development,” H.E Cyril Ramaphosa, President of the Republic of South Africa and Chairperson of the African Union stated at the NEPAD symposium.
African Union and UNDP launch “AU at 20” Study to review progress ahead of the AU’s 20th anniversary
The African Union (AU) Commission and the United Nations Development Programme (UNDP) today kicked off a year-long project, “AU at 20: A Renewed Call to Action for the 21st Century”, to mark the 20th anniversary since the establishment of the AU. Endorsed by the Chairperson of the AU Commission, His Excellency Moussa Faki Mahamat, the project will undertake a data-driven study to assess progress and chart a renewed call to action towards achieving Agenda 2063 (The Africa We Want) and the UN’s Agenda 2030.
African Development Bank backs young ‘agripreneurs’ to beat climate change (IOL)
The African Development Bank plans to deploy billions of dollars to help young people build a new digitally-driven model of agriculture that can feed the continent’s people and boost prosperity even as the planet heats up, its president said. At a global summit, the bank and the Global Centre on Adaptation announced an initiative to strengthen African efforts to become more resilient threats worsened by fast-accelerating climate change. The AfDB plans to put half of its climate finance towards the initiative – $12.5 billion (R189.29 billion) between now and 2025 – and raise an equal amount from donor governments, the private sector and international climate funds.
African development bank warns gov’t project delays could attract penalties (Independent)
The African Development Bank has threatened to withdraw funding for the project aimed at building the capacity of Ugandans for opportunities in the oil and gas sector, should the government fail to utilize the funds according to the stipulated terms and conditions. The Bank is funding the East African Crude Oil Pipeline (EACOP) Districts’ Micro, Small & Medium Enterprises (MSME) Business Linkage Project, to make the people along the pipeline corridor ready to access jobs and business opportunities the project is expected to create.
Sadc chair Nyusi calls for collective resource pooling (The Herald)
SADC (Sadc) leaders have recommended the pooling of resources in the region for the collective procurement and distribution of Covid-19 vaccines for member states. This was revealed by Sadc chairman and Mozambican President Filipe Nyusi yesterday in a statement on the Covid-19 pandemic, whose second wave has resulted in a spike in infections in the region. “In addition to health measures, we should continue to embark on common regional strategies, harmonised and synchronised initiatives; including electronic platforms to monitor the safe cross border movement of people, vehicles and goods, as well as implementing national action plans that address social consequences,” he said.
Region gets tough on smugglers (The Southern Times)
The lockdowns instituted by SADC governments have sparked a sharp rise in smuggling, prompting revenue authorities to step in with co-ordinated efforts to counter illicit trading. Lockdowns have been triggered by spiralling COVID-19 infections across Southern Africa. Last week the South African Revenue Service (SARS) said it had scaled up digital cargo inspection and tracking systems in response to increased smuggling, while law enforcement agents are upping border patrols to stop illegal border crossings. South Africa is the region’s manufacturing hub and is the source of most smuggled goods, many of which are sold on the black market in other SADC countries.
A Critical Lack of Covid Tests in West Africa (Medafrica Times)
During its 58th summit, held by videoconference this weekend, ECOWAS proposed measures to combat Covid-19. Starting with a harmonization of the price of PCR tests for travelers, in order to allow a better visibility for those who travel between the different countries of the sub-region. These disparities do not facilitate travel between countries, as ECOWAS would like, especially if one sample has to be taken at departure and another at arrival.
World Bank commits $12bn for vaccinations in Africa (Engineering News)
The World Bank has committed $12-billion to African countries to support vaccination programs, the South African Presidency said in a statement on its website on Saturday. The World Bank money will be in the form of grants or on “highly concessional terms,” South African President Cyril Ramaphosa said in the statement.
Biden: Africa shouldn’t hold its breath (The Southern Times)
Experts on the continent are sceptical over whether US President Joe Biden will entirely overturn the approach taken by the Donald Trump administration. Speaking to Anadolu Agency, Iqbal Jassat, an executive at the Johannesburg-based Media Review Network (MRN), said in the wake of Biden administration’s goal to reassert America’s superiority in global affairs, there is little room left for South Africa and other developing countries to manoeuvre. Jassat said the balance of bilateral trade with South Africa is heavily tilted towards the US, pointing to Biden’s background as vice president for eight years under Barack Obama. “Looking at America’s foreign policy, you can’t take it for granted,” Kakuba told Anadolu Agency. “America’s interest comes first when relating with other countries.”
Biden repairs US damaged relations with Africa (Caj News Africa)
The new United States (US) government is mending relations that were strained with Africa under the previous administration of Donald Trump. The revival of relations would entail an expansion of economic, social and political ties with the natural resource richest continent in the world.
Towards a ‘healthy’ India-Africa partnership (BusinessLine)
The Covid-19 pandemic’s impact on India has been especially grim. Given the interconnectedness of world systems, it is crucial to examine how partnerships can be built around the process of recovery, especially with countries in Africa. While Africa was one of the last regions to be hit by the virus, and with deaths over 35,000, it has reported lower case numbers than Asia and even Europe in terms of containing the spread, likely due to its young demography.
Challenges of using the Madrid Protocol in Africa (Inventa International)
The Madrid Protocol 1989, allows applicants to directly file trademarks in several countries with a single application and set of fees, through a centralised bureau that forwards them office actions. In total, the Madrid Union covers about two-thirds of the continent. Notably, Angola, Ethiopia, Nigeria, South Africa and Tanzania do not belong to the Madrid Union. Since these five countries are among the top 10 largest economies in Africa, this has a significant impact on international filing strategies, as applicants are forced to file directly at the national IP offices of these regions. This reduces the cost-effectiveness of the Madrid Union for companies that are most interested in protecting their trademarks in the top African countries by market value.
Global economy
Rwanda named among top 10 countries that responded best to Covid-19 outbreak (The New Times)
Rwanda ranks sixth among the countries that handled Covid-19 outbreak best, according to a new analysis. The COVID Performance Index, by the Lowy Institute, a think-tank based in Australia, ranked 98 countries and found that smaller populations and capable institutions were the most important factors in managing the global pandemic Levels of economic development and differences in political systems between countries had less of an impact on outcomes than other indicators, the analysis concluded. Instead, smaller populations, cohesive societies and capable institutions were the most important factors in how countries confronted the pandemic, it added.
DDG Wolff urges WTO ministers to address the pandemic and make 2021 a year of action
Speaking to ministers from a cross-section of the WTO membership on 29 January, Deputy Director-General Alan Wolff urged them to make 2021 “a year of substantial accomplishments” at the WTO by taking action on health, sustainability issues, and the joint statement initiatives. He urged that concluding agreements not be put off to the WTO Ministerial Conference later this year, particularly for an agreement to curb fisheries subsidies, which should be concluded in the next few months.
Biden administration joins call for ‘swift appointment’ of new WTO head (Politico)
The United States supports quickly ending the impasse the Trump administration created over the selection of the next director general for the World Trade Organization, a top Swiss official said Friday. “Members stressed the urgency of the swift appointment of a new WTO director general, as well as the confirmation of the date and venue of the 12th Ministerial Conference,” Swiss Economic Affairs Minister Guy Parmelin said in his closing statement at virtual meeting of senior trade officials from 29 WTO members, including the United States. “Ministers reiterated their determination to maintain a credible multilateral trading system and to restore a climate of mutual trust.”
World leaders met during the first Davos Agenda (WEF)
The first virtual Davos Agenda closed today following calls from more than 24 heads of state and government and over 1,700 participants from business and civil society to address the crucial challenges facing us all. Sustainability and support for the vulnerable were emphasized. Special addresses and active participation from heads of state, government and international organizations discussed the importance of containing COVID-19 and working quickly to mitigate further fractures in society. Business leaders echoed these calls and urged cooperation and innovation to address crucial economic, social and environmental challenges in the year ahead.
Fair Finance: The women entrepreneurs lifting communities out of poverty (UN News)
Moroccan-born Ms. Gardner, is one of the most prominent senior women in the financial sector, and has been an industry leader for over two decades, as president of a multi-billion dollar New York-based global alternative investment fund. She has pledged to use her new role as the first-ever UNCDF Goodwill Ambassador to promote opportunities and resources for women business owners, and improve living standards for underserved communities.
Financial Perils in Check for Now, Eyes Turn to Risk of Market Correction (IMF Blog)
“The vaccines are here!” – the cry heard and welcomed the world over – has boosted hopes of a global economic recovery in 2021. Yet until vaccines are widely available, the market rally and the economic recovery rest on continued monetary and fiscal policy support. While there is for now no alternative to continued monetary policy support, there are legitimate concerns around excessive risk-taking and market exuberance. Financial stability risks have been in check so far, but we cannot take this for granted.
How common metrics can drive long-term value creation (EY)
The World Economic Forum’s International Business Council (WEF-IBC) has proposed a set of common metrics to spur sustainable value creation. It’s a positive step – if we grasp it. At their essence, the metrics are designed to help guide the business community’s transition from a primary focus on short-term, quarter-to-quarter financial performance toward a broader focus on long-term value across human, consumer, societal and financial outcomes. Ultimately, they provide a tangible way for companies to better serve their communities and become engines of broad-based prosperity. That’s good for society, but it’s also good for our companies.
Developing countries could raise much-needed public revenues, while cutting emissions and air pollution, by making better use of energy taxes and reducing energy subsidies, according to a new OECD report. Taxing Energy Use for Sustainable Development: Opportunities for energy tax and subsidy reforms in selected developing and emerging economies finds that well-designed energy and carbon taxes can strengthen efforts to improve domestic revenue mobilisation. While the revenue potential varies across countries, the report finds that, on average, the countries could generate revenue equivalent to around 1% of GDP if they set carbon rates on fossil fuels equivalent to EUR 30 per tonne of CO2.
Things looking good for mining sector (The Southern Times)
After a turbulent 2020, recent reports show analysts are optimistic that the mining sector will rebound this year. For Africa, the positive outlook would mean increased revenue from the sector as some other sectors are likely to be severely affected by the pandemic. Gold and platinum witnessed significant price increases from mid-2020 to the end of the year owing to a mix of market-based cutbacks, unexpectedly buoyant demand, and pandemic-driven closures. S&P analysts say while the COVID-19 pandemic has highlighted many risks, it has also created new opportunities.
Earnest & Young (EY) noted that the sector will face increased production cost due to the COVID pandemic. “The impact of the crisis has been mixed. Process changes and restrictions have imposed new, unforeseen costs, but some measures taken in response to the virus have removed silos that previously hindered productivity. Over the longer term, we believe that tackling this issue effectively requires true end-to-end focus on costs and productivity across the value chain. “The pandemic has increased costs but created opportunities for innovation “, stated EY in its risk analysis report.
Greater push for extractives to lift veil of secrecy as corruption bites (The East African)
So far, only 55 out of the 193 UN member states have committed themselves to the Extractive Industry Transparency Initiative (EITI) Standards. In eastern Africa, only Ethiopia and Tanzania have committed themselves to EITI standards. Uganda joined EITI in August 2020 and is required to publish an EITI report by February 2022. In Africa – with a huge amount of natural resource deposits – the extractive industry has remained in the hands of a few politically-connected elites with the contracts and the income largely opaque. “Extractive sector transparency is essential in the recovery from the pandemic, especially for countries that depend on resource revenues,” said Helen Clark, the board chair of the EITI.
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Country focus
SARS releases trade statistics for December 2020
The South African Revenue Service (SARS) today releases trade statistics for December 2020 recording a trade surplus of R32.00 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 31 December 2020) trade surplus of R270.63 billion is an improvement from the R23.66 billion surplus for the comparable period in 2019. Exports increased by 21.9% year-on-year whilst imports increased by 5.7% over the same period.
Border traffic decline as national lockdown enforcement heightens (The Herald)
The volume of human traffic and light vehicles passing through Beitbridge Border Post has relatively declined with authorities fully implementing the national lockdown regulations which among other things restricts non-essential general travel. The country moved into national lockdown level 4 on January 5, under which intercity travel, the general travel across borders is suspended, essential shop open between 8am and 3pm and there is a curfew which runs between 6pm and 6am. As it stands only Zimbabweans resident in foreign countries and those foreigners with valid work or study permits, diplomats on Government business are allowed entry
Export speed-up projects in spotlight at Richards Bay Coal Terminal (Engineering News)
South Africa’s Richards Bay Coal Terminal is going all out to raise its export efficiency in a bid to counter ship queuing. With the R1.34-billion worth of stacker reclaimers and shiploaders provided in 2018 putting in solid performances, RBCT has now turned to debottlenecking conveyor projects to speed the export side of the business. The first of these is the Conveyor 931 project and the second is the Conveyor 50/52 project.
€3m loan to support South African blueberry industry (Engineering News)
A €3-million loan to United Exports will help to support growth, exports and jobs in South Africa’s blueberry industry. South Africa’s Western Cape Department of Agriculture estimates that the country’s blueberry sector employs 5 700 people. The fruit is an increasingly important product for South Africa, with production climbing to 18 000 metric tons in 2019/20 from 11 000 the year before, according to the South Africa Berry Producers Association.
Kenya seeks G20 $298m debt holiday extension (The East African)
Kenya may receive additional debt relief from the Paris Club of international creditors to help ease Covid-19 related financial distresses. The country has already received Ksh32.9 billion (about $298.6 million) loan repayment break which it would have paid between January and June, and will make more savings if the period is extended for another six months. Central Bank of Kenya (CBK) governor Patrick Njoroge said an announcement extending the debt service waivers may come in April. “We should add that G20 have committed to consider if they could extend the Debt Service Suspension Initiative (DSSI) beyond June 2021,” he said during a post monetary policy committee (MPC) briefing on Thursday.
Economy Relaxed Covid rules fail to lift economy (Business Daily)
Kenya’s economy remained in doldrums in the third quarter of 2020 despite progressive easing of lockdowns imposed to curb the spread of Covid-19, new data shows. The Kenya National Bureau of Statistics( KNBS) said the country’s GDP contracted 1.1 per cent in the July-September 2020 period compared to a similar period a year earlier — marginally defying earlier predictions that the economy had to reached a lowest point in the second quarter and was set to begin rising. The slump was, however, softer compared with the second quarter’s 5.5 per cent plummet, aided largely by stronger performance in agricultural production and construction works.
Hope for increased intra-trade for women as AfCFTA takes effect (Nation)
There is now hope of Kenyan female entrepreneurs gaining more traction in the African continent’s trade sector as the African Union’s flagship project of a free trade zone takes effect. “Gender disparities have led to less women participating effectively in manufacturing and trade sectors. These are the areas we want to have addressed through AfCTA,” she said on January 26, during a webinar on the status of implementation of AfCFTA. KAM chair, Mr Mucai Kunyiha said while the agreement opens opportunities for increased intra-Africa trade, it would require traders’ innovativeness to compete with other global exporters. He called on the government and relevant agencies to avail information to all stakeholders to enable them make investment decisions.
Google pledges $10 million to support Kenya’s economic recovery (CGTN Africa)
Google has committed $10 million (1.1 billion Kenyan shillings) to support economic recovery in Kenya, Sundar Pichai, CEO of Google and Alphabet said during a virtual meeting with Kenyan President Uhuru Kenyatta. In September 2020, Google announced support for African businesses, job seekers and educational institutions in navigating the pandemic. Since then, the company says it has worked with over 300,000 Small and Medium Enterprises to digitize their businesses and provide them an online presence by building for the Google Business Profiles and business sites. “To continue to support the economic recovery in Kenya, we are committing an additional $10M to go towards loans for small businesses, support for tech startups, and grants for underserved communities. More to come on how we’ll help more people and businesses in Kenya and across Africa,” Pichai said during the meeting.
Over 900 MSMEs Training MoU Signed by UIA & Uganda Insurers Association (East African Business Week)
The Uganda Investment Authority (UIA) and Uganda Insurers Association signed a Memorandum of Understanding (MoU) aimed at creating an enabling environment for doing business in Uganda by especially strengthening the intersection between investment and insurance at the Authority’s head office on Lumumba Avenue. Mr. Joseph Kiggundu, the Acting Director-General, Uganda Investment Authority, noted that itnhad already trained an estimated 600 micro, small and medium enterprises (MSMEs) in various sectors across the country and was looking to train even more MSMEs under the new MOU. “Through this renewed relationship, over 900 MSMEs will be trained in Entrepreneurship skills and sensitized on the benefits of insurance which will ensure long term survival and sustainability of these enterprises,” said Mr. Kiggundu.
Nigeria, Middle East trade volume hits $19.3bn (Vanguard)
The bilateral trade volume between Nigeria and the Middle East reached $19.3 billion in 2019 while Nigeria’s export to China was about $2billion in the form of mineral oils and fuels, oil seeds, plastics, rubber, animal products, shipping vessels and fruits. Vice President, Strategy and Partnerships, MIE Groups, Zahoor Ahmed, revealed this at the virtual press conference organized by Zenith Exhibitions and Middle East for the inaugural edition of Connecting Trade Worldwide (CTW) with Equipment and Manufacturing West Africa (EMWA) code named EMWA & CTW Nigeria that will hold April 27 to 29, 2021, titled, “Growth and Advancement of the Industrial Sector to unlock Nigeria’s Potential,” in Lagos.
FEC Approves Policy to Stop Rejection of Nigerian Goods (THISDAYLIVE)
The Federal Executive Council (FEC) yesterday approved the National Quality Policy to stop rejection of Nigerian goods exported out of the country. The approval which was given during the 31st virtual meeting also included N9 billion approved for the construction of various roads and power projects across the country. “For a long time, Nigerian exporters have been suffering because of lack of quality of their goods. We felt that it was high time we actually have a policy which will create a situation whereby standard of the Nigerian goods that are exported would be raised, such that that rejection would stop,” said Minister of Industry Trade and Investment, Chief Niyi Adebayo
Nigeria Loses W’Africa Air Travel Market to Ghana (THISDAY Newspapers)
Nigeria has lost the West African air market to Ghana as today no Nigerian airline is operating to destinations such as Accra, Abidjan, Dakar, Freetown, Monrovia and the Gambia. Along with the loss of these air travel market are also businesses that were dominated by Nigerians but today, with the influx of Chinese into retail trade in the West Coast and the entrance of South African investors, Nigeria has lost huge market in the sub-region. “The downturn of Nigeria’s economy forced the country to scale back its trade in West Africa. China and South Africa entrepreneurs have moved in because of our bad economy, which became noticeable from 2016. Before then, Nigeria controlled air travel in the sub-regionl,” Uko said.
Gambia: Ministry Explains Reasons for Price Rise in Essential Food Commodities (Foroyaa Newspaper)
The Ministry of Trade, Industry, Regional Integration and Employment (MOTIE) has issued a statement explaining the causes for the recent increment of prices of some essential food commodities, which are both external and local factors. The ministry said on the domestic front, some of the trade support institutions have come up with new tariff/charges effective 1st January 2021. These new measures affect the overall cost structure of the importers of essential food commodities. “The Gambia Revenue Authority has re-introduced the 20% reduction on the indicative value for all imports including the imports of essential commodities. There was 20% reduction on the indicative value of all imports as a government response to the COVID-19 pandemic in 2020. The re-introduction of 20% on the indicative value will increase the general CIF duty payable to GRA on essential food commodities by 20%,” the dispatch added.
Global Trade Corporation to partner with Morocco’s leading poultry company (Togo First)
In comparison to previous years, Togo has significantly improved its ranking under the “Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export. In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.
Egypt, UK seek continued stable trade relations (ZAWYA)
During the event, Paul Mullard, senior advisor at the UK Department for International Trade (DIT), said that the Egypt-UK agreement provides confidence to business and trade between the two countries. It will ensure that it continues on almost the same terms as secured in the EU-Egypt Association Agreement. The current agreement also provides an opportunity to focus more on exploring different ways of enhancing the trade relations between both sides. “The trade between the two parties stood at about £3.6bn in 2019, of which £2.4bn was in trade and goods,” Iman Refaat Nasr, General Director of Trade in Goods, Trade Agreements and the Foreign Trade sector at Egypt’s Ministry of Trade and Industry said. “This represented only 8% of Egypt’s trade with the EU in 2019.”
News from Africa and Africa’s international trade relations
The Secretariat of the African Continental Free Trade Area (AfCFTA), the Future Investment Initiative (FII) and OriginAll S.A. announced today a partnership representing a historic effort and opportunity to harness their respective strengths in an effort to eradicate counterfeit and illicitly traded products from the AfCFTA nations. “Counterfeiters and illicit traders have been taking advantage of our continent for centuries, depriving our nations from substantial revenues, fostering corruption and costing the lives of hundreds of thousands of African citizens every year. This can no longer be tolerated, it needs to stop, and it must stop now. We must put our national interests and the safety of African citizens first.” Said H.E. Wamkele Mene, Secretary General of the AfCFTA. “I am proud to be at the forefront of this initiative and grateful to our friends in the Kingdom of Saudi Arabia for standing by our side during this historic moment,” the Secretary General added.
FII Institute announces agreement to combat counterfeit, illicit trade in Africa (Arab News)
The Future Investment Initiative (FII) Institute, the organizer of the Kingdom’s flagship forum taking place in Riyadh this week, on Wednesday signed a number of major agreements, including a partnership aimed at protecting over 1.2 billion people from counterfeit and illicit trade in Africa. Addressing a press conference on the second day of the fourth FII forum, Richard Attias, CEO of the institute, announced the three initiatives. The first is a letter of intent between the Secretariat of the African Continental Free Trade Area (AfCFTA), Swiss tech company OriginAll and the FII Institute, to develop technology aimed at protecting people from 54 African nations from counterfeit and illicitly traded products.
African trade ministries urged to provide adequate information on AfCTFA (GhanaWeb)
The Executive Director of the AfCTFA Policy Network, Louis Yaw Afful, has called on various Ministries of Trade and trade establishments of party states of AfCTFA to publish their tariff offers, which are the list of products that each country says it is ready to liberalize under the 90% tariff liberalization. He believes, this will make businesses abreast with products that fall within the 10% exclusive or sensitive categories and will attract duties when exported. “Local businesses should know what products have been liberalized so that when products are coming from other countries they can be able to identify the products which are under the exclusives and therefore know whether they will be allowed into the country.”
More countries sign-up to AfCFTA since free trade area opened for business (UNECA)
The number of countries that have ratified the African Continental Free Trade Area (AfCFTA) agreement is approaching 40 with the continent’s leadership showing immense political will towards achieving its aspirations. The African Union Commission’s (AUC) Trade Commissioner, Albert Muchanga, said during an Invest in Africa webinar on Wednesday that five countries had indicated their intention to ratify the agreement soon, joining the 35 nations that have already ratified and deposited their instruments. “Right now I’ve got firm assurances from Zambia, Tanzania, Somalia, Algeria and Morocco that in due course they would deposit their instruments of ratification,” he said.
AfCFTA improves Africa’s trade profile, investment attractiveness (Engineering News)
The African Continental Free Trade Area (AfCFTA) helps to improve the attractiveness of Africa for investors, as the potential markets companies can tap have become much larger. This also places the continent in a stronger position to negotiate fair trade terms with other countries and blocs, African Union Commission (AUC) Commissioner for Trade and Industry Albert Muchanga said during a seminar on January 27. Companies can already start to trade in goods that have been designated under the rules of origin protocols, with the finalised agreement on rules of origins expected to be tabled before the AUC in June. “The rules of origin protect Africa from transshipments − imported goods that are not produced within the continent, but [whose manufacturers] want to take advantage of the larger addressable markets. This is done on a product-by-product basis, and rules of origin and local content requirements for products in 85% of sectors have been finalised, allowing traders to immediately benefit from trading them within Africa,” he noted.
AfCFTA offers opportunities for youth, women-led firms (Business Daily)
On January 1, 2021, African countries officially opened their markets under the Africa Continental Free Trade Area (AfCFTA) pact and duty-free trading of goods and services across borders. On this same day, the United Kingdom’s Brexit kicked-off, officially marking the end of the frosty UK-European Union relationship. The opening up of free trade area offers youth and women in small and medium enterprises (SMEs) greater opportunity to be principal players in regional value chains by opening up continental markets for supplying inputs to larger enterprises in cross-border trade. With the digital economy and e-commerce growing fervently, youth and women will benefit immensely by leveraging on Africa’s digital infrastructure to maximise existing opportunities through AfCFTA.
Commentaries
Top Issues to Watch in Africa: 2021 (Lexology)
Can African governments head off a sustained spike in the spread of COVID-19 and recover economically in 2021? How will the Biden administration engage the continent? Will companies implement more effective due diligence efforts in their supply chains to prevent human rights abuses? What impact will efforts to battle corruption and mitigate climate change have in the coming year? Covington’s Africa Practice offers insights on these questions and other key issues that will define 2021 on the continent.
Africa’s Opportunity (Project Syndicate)
Although the COVID-19 pandemic has deepened Africa’s political and economic problems, and increased its funding needs, the crisis may yet trigger bold initiatives in international relations, trade, debt sustainability, and foreign investment. Will Africa and the world seize the chance to chart a new and better course?
In this Big Picture, Harvard University’s Célestin Monga urges US President Joe Biden’s administration to rekindle the US-Africa relationship at the symbolic, strategic, and operational levels. Likewise, Carlos Lopes of the University of Cape Town shows why Africa and the European Union – the region’s main trade and investment partner – should revamp their ties and build a stronger, more equal partnership. And Hippolyte Fofack of the African Export-Import Bank and Pat Utomi of the African Union’s Pan-African Private Sector Trade and Investment Committee explain why Africa must demand a level playing field from the World Trade Organization.
Turning to the pandemic’s impact on debt sustainability, Paola Subacchi of the University of London’s Queen Mary Global Policy Institute warns that repayment moratoria for African countries, including under the G20’s Debt Service Suspension Initiative (DSSI), will not solve the problems caused by large-scale Chinese lending. Even if the DSSI is fully implemented, argue Brahima Coulibaly of the Brookings Institution, former Nigerian finance minister Ngozi Okonjo-Iweala, and Vera Songwe of the United Nations Economic Commission for Africa, multilateral lenders will still need to close Africa’s pandemic-response funding gap.
But Johns Hopkins University’s Anne O. Krueger doubts that the DSSI’s shortcomings reflect its limited scope and scale. She argues that rich countries should provide poorer ones with pandemic-related necessities, rather than relying on imprecise debt-relief efforts that relieve pressure on governments to embrace growth-enhancing reforms. In a similar vein, the Ecobank Foundation’s Carl Manlan and Efosa Ojomo of the Clayton Christensen Institute urge African leaders to emulate China and target the continent’s 165-million-strong diaspora in order to attract more foreign direct investment.
Africa's Free-Trade Bloc Could Significantly Boost UK-Africa Trade And Investment Flows (Africa.com)
The benefits of intra-regional trade are well known, and some examples already exist on the continent. Trademark East Africa, an initiative supported by the UK government that is aimed at driving trade across the East African community, has been effective in increasing trade flows and reducing trade costs by up to 10%. This initiative should be scaled to other regions in Africa to supplement AfCFTA and accelerate its rollout. Although the initial benefits will stem from increased intra-African trade, we believe that AfCFTA also provides a huge opportunity to boost the UK-Africa trade corridor. It will also stimulate significant investments into the continent, particularly in sectors such as technology, manufacturing and infrastructure.
One of the lessons from COVID-19 is that we need each other, and partnerships between nations and the private and public sectors are critical. Private sector-led economic growth, enabled by market-friendly policies, should be the template for public-private partnerships in Africa.
Africa needs to rise above the policy dilemmas confronting the region amid the Covid-19 crisis (Daily Maverick)
As forecast in 2020, Africa is coming up short in the Covid-19 environment, fiscally and in terms of social policy provisions. Governments on the continent are scrambling to secure Covid-19 vaccine supplies while confronting the economic fallout flowing from the pandemic. In addition to these considerations, the climate crisis is another factor that looms large for the region.
African leaders and representatives from the development community, civil society and private sector came together on Thursday for a symposium to celebrate two decades of the New Partnership for Africa’s Development (NEPAD), a flagship program of the African Union. Participants commended the African Development Bank highly for its role in financing infrastructure and agricultural programs on the continent. The organization was relaunched as the African Union Development Agency-NEPAD (AUDA-NEPAD) in 2018, which participants noted was a turning point in its evolution. South African President Cyril Ramaphosa, Chairperson of the African Union, said: “The coronavirus pandemic has had a severe impact on African economies, on public health and indeed the African Union itself. It has served as a stark reminder of our global interconnectedness because, in the end, what affects one, affects us all.”
PIDA Jobs Outlook: Shining the spotlight on job creation through corridor development (UNECA)
To better understand the extent of the challenge of unemployment on the continent, the African Union Development Agency (AUDA-NEPAD) launched the PIDA Job Creation Toolkit during the 5th PIDA Week held in Egypt, Cairo, in 2019. The PIDA Job Creation Toolkit is an innovative tool for tracking the impact of regional infrastructure development projects on the African labour market. Providing an overview of the toolkit, Dr. Nyirenda-Jere noted that it has the following functionalities, among others: Estimating the number of jobs created by the infrastructure project during its life cycle from project preparation to commissioning; Maximising jobs by suggesting steps to be taken such as skills developments and policy inclusivity to create secondary jobs resulting from anticipated improved infrastructure services; and Building scenarios for job creation in infrastructure projects through features such as suggesting female suppliers for procurement needs in the supply chain.
The Southern African Development Community (SADC) Project Preparation Development Facility (SADC-PPDF) continues to support SADC Member States to strengthen regional infrastructure connectivity by providing grants for project preparation and development for cross-border regional infrastructure projects in energy, transport, information communication technologies (ICT) and trans-boundary water. According to a report by the SADC Executive Secretary for the financial year 2019/2020, by 2019, PPDF had approved a total of Euro 20 million for the preparation of 13 regional projects covering energy, transport and water which are expected to generate US$4.81billion in infrastructure investment. This has the huge potential of unlocking business opportunities across the infrastructure value chain, not just in advisory services, but also financing, construction, equipment supply, technology and skills as well as operations and maintenance.
EALA re-considers EAC Appropriation Bill 2020, approves USD 97.6 Million for Financial Year 2020/21
The East African Legislative Assembly today reconsidered and approved the EAC Budget Estimates for the Financial Year 2020/21, amounting to USD 97,669,708, at a Special Sitting held virtually. With it, the Assembly further enacted the recommitted EAC Appropriation Bill, 2020. Under the 2020/21 vote, the EAC Secretariat is to receive USD 48,564,401, while the East African Legislative Assembly gets USD 16,755,725. The East African Court of Justice is expected to benefit from the kitty, earning USD 3,970,406, while USD 8,380,057 is earmarked for the Lake Victoria Basin Commission. The Assembly further approved USD 1,536,751 for the activities of the East African Science and Technology Commission, and USD 1,399,318 for the activities of the East African Kiswahili Commission.
Technology Unlocking Trade Value in East Africa (East African Business Week)
The latest data – and the region’s continued focus on transforming its key industries, sectors, and infrastructure through technology – is giving me hope that the economic outlook is brightening. Trade-in East Africa has already picked up: according to the Brookings Institute, after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before. For countries and ports of trade that have updated their infrastructure through investments into new technology, these income gains will be easier to realize.
Efficiency should be a top priority. Increasing the volume of containers passing through regional ports could hold huge financial benefits. PwC estimates that sub-Saharan Africa could save $2.2-billion in costs per year if container throughput is doubled at major ports. In addition, improving port performance by 25% can reduce the price of imported goods in the region by $3.2-billion per year while adding $2.6-billion to the value of exports. Automation is also key. Africa’s long-term reliance on slow, manual processes has stunted the growth of trade at its ports. The turnaround time for vessels at African ports – the time it takes to port, offloads cargo, reloads, and departs – averages five days. In addition, deploying new technologies could help solve efficiency and productivity issues at key ports of trade.
East African Businesses adopt digital solutions amid covid-19 (Kenya Broadcasting Corporation)
Business Membership Organizations (BMOs) in the East African region are adopting Customer Relationship Management (CRM) software technologies, in a bid to improve service provision to businesses amid the COVID-19 pandemic. This follows a two-day training by the East African Business Council (EABC) in partnership with GIZ- Business Scouts for Development and the Federation of German Industries (BDI). Speaking during the opening session of the training, EABC CEO Dr. Peter Mathuki urged East African companies to adopt digital business models to improve business resilience and continuity amid the pandemic. “COVID-19 has brought forth opportunities in e-commerce, which have significantly scaled down the cost of doing business by automating manual office operations and reducing human interaction hence increasing productivity and efficiency,” he said.
Three ways West Africa’s digitalisation can improve (The Africa Report)
According to a report by the African Union and the OECD, a shift to digitalisation is essential for successful development in West Africa. The Covid-19 pandemic has provided a strong incentive to the African Union (AU) and the EU to push the continent to accelerate its digital shift by implementing remote learning, retail and production. On 19 January, the AU’s Department of Economic Affairs and the OECD published a report on the dynamics of development in Africa. The report argues that productivity gains and the added value of digital technology are essential for the successful implementation of “Agenda 2063” to transform Africa into the global powerhouse of the future, and provide tens of millions of young people entering the labour market with stable and gainful employment. Digital transformation improves corporate governance and, most importantly, increases their profits by an average of 20%.
EU and Africa must ‘cooperate as equals’, MEPs say (EURACTIV)
Europe should move away from a donor-recipient relationship with Africa and cooperate as equals instead, EU lawmakers have said in a new report adopted on Thursday (28 January). “Europe and Africa need each other; a new and equal partnership must reflect this,” said Chrysoula Zacharopoulou, a French centrist MEP. In its report on a new EU-Africa partnership, the European Parliament’s development committee called for substantial funds to be earmarked in the upcoming budget designed to support the EU’s foreign policy. Among their recommendations, MEPs call for long-term EU financial and technical support for African countries to boost climate adaptation; EU support for African regional integration to help reduce dependence on foreign imports; and for the EU to support the new African continental free trade area which was launched in January.
Empowering Africa: MEPs vote on strategy for a new EU-Africa partnership (European Parliament)
On Thursday, MEPs adopted a wide-ranging strategy on a new EU-Africa partnership by 20 votes, with two votes against and three abstentions. The strategy emphasises the need to go beyond simply cooperating on issues such as the green transition, energy, digital transformation, sustainable jobs, good governance and migration. As well as addressing these areas, listed by the Commission and the European External Action Service, human development must be central to future EU-Africa relations, said MEPs, who welcome this fresh approach to the relationship. The future partnership should prioritise education, including teacher training, reducing early school leaving, and concentrate on the inclusion of girls. It should also aim to improve health care and national health systems.
AU urges to waiver TRIPS obligations in response to COVID-19 (Devdiscourse)
Chairperson of the African Union (AU), President Cyril Ramaphosa has called on the World Trade Organization to waiver specific Trade-Related Aspects of Intellectual Property Rights (TRIPS) obligations related to the prevention and treatment of COVID-19 for a defined period. Together with India, South Africa has proposed a TRIPS waiver in response to the pandemic. “We need more countries to support this initiative. This would enable countries in Africa and elsewhere to access active pharmaceutical ingredients and benefit from technology transfer, including the know-how to manufacture vaccines in Africa at a cheaper cost,” he said.
Zim joins India, SA in trade waiver efforts (The Herald)
Zimbabwe has joined South Africa, India and other countries in sponsoring the proposed waiver from certain provisions of the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement for the Prevention, Containment and Treatment of Covid-19. The waiver is aimed at fast-tracking local production to ensure equitable distribution and easy accessibility of vaccine and other medicines as efforts to curb the Covid-19 virus intensify. Addressing IP barriers is central to countries’ ability to manufacture, import and export Covid-19 medical products while TRIPS flexibilities play an important role in promoting access, in the current context of a pandemic and global demand, simply relying on such flexibilities to overcome IP barriers would be insufficient.
Africa Working With Private Sector, China, Cuba and Russia to Secure Vaccines (Voice of America)
African officials say they are working to acquire hundreds of millions of vaccine doses for the continent over the next year and are urging African solidarity in the battle against coronavirus. Dr. John Nkengasong, a Cameroonian virologist, director of the Africa Centres for Disease Control and Prevention (Africa CDC), says health facilities across the vast continent have conducted 30 million tests — the bulk of them in 10 countries, including South Africa, the continent’s coronavirus hotspot. Ethiopia, Nigeria, Kenya, Zambia and Uganda also conducted tests. Nkengasong noted that much more needs to be done. He added that the private sector is also pitching in, with telecom giant MTN this week donating $25 million to the African Union’s (AU) efforts to secure vaccines for the continent’s 3 million health care workers.
China’s vigorous economic rebound drives cooperation with Africa (MFA China)
In 2020, faced with grave and complex environment both at home and abroad and the huge impact of the epidemic in particular, the Chinese government has taken resolute and swift actions to contain the virus spread, and taken solid measures to stabilize employment, finance, foreign trade, foreign investment, domestic investment and market expectations, and fully safeguard employment, people’s livelihood, market entities, food and energy security, stability of industrial and supply chains and operations at grassroots levels. Foreign trade achieved positive growth. The total value of imports and exports of goods was 32,155.7 billion yuan, an increase of 1.9 percent. The trade balance stood at 516.8 billion yuan in surplus.
UN Women, Standard Bank programme provides leg up for women farmers (Engineering News)
Despite the many challenges brought on by the Covid-19 pandemic, financial services provider Standard Bank and United Nations (UN) Women have made progress in equipping women farmers with the skills and resources needed to grow their businesses and succeed over the long term. Women play a vital role in the agricultural industry in Africa, growing about 70% of the continent’s food, yet they are the most vulnerable to impacts of climate change, Standard Bank corporate and investment banking for agribusiness executive Linda Manda said during a roundtable discussion of the programme on January 27.
3 pioneering African nations embrace gene editing to boost food security, farmer incomes (Genetic Literacy Project)
Kenya, Nigeria and Eswatini are taking the lead on genome editing in Africa as they see its potential in boosting food security and increasing farmers’ incomes. To aid this advance, the three African nations have made significant progress in establishing guidelines to regulate gene editing and gene drive, whereas other countries are taking the direction of case-by-case regulation. Kenya, in its drive to become a middle-income country, is strengthening its biosafety framework to facilitate the adoption of crops developed through the tools of biotechnology. Kenya is now leading African countries since it has begun drafting guidelines to regulate gene-edited products, using procedures in Argentina as a model. The draft guidelines define what needs to be regulated, what is partially regulated and what is not regulated at all.
Africa’s Great Green Wall to see quicker growth with new $16 billion (Landscape News)
The Great Green Wall for the Sahel and the Sahara Initiative, which seeks to restore 100 million hectares of degraded land and create 10 million green jobs by 2030, has entered a new phase with partners pledging USD 16.85 billion in international finance for the Wall’s 11 involved countries over the next five years. To date, 4 percent of the Wall is estimated to be complete, bumped to 18 percent when taking into account associated improvements outside the direct intervention areas. The funding, which makes up more than 30 percent of USD 33 billion needed to reach the end line, seeks to bring rural development initiatives to scale in a region ravaged by the combined effects of drought, poverty and food insecurity.
Global economy
New WTO publication looks at impact of digital technologies on developing countries
The WTO Chairs Programme aims to enhance understanding of the multilateral trading system among academics and policy makers in developing countries through curriculum development, research and outreach activities by universities and research institutions. Through a variety of case studies, the book illustrates how countries in different regions view the opportunities and challenges of digital technologies and how policy makers are responding to them. The publication, entitled “Adapting to the digital trade era: challenges and opportunities”, considers how technological advancement such as the growth of e-commerce and the development of blockchain technology may contribute to inclusive growth. It also looks into what needs to be done at the domestic and regional level to take full advantage of the opportunities offered in the new digital trade era.
COVID-19 continued focus of trade facilitation discussions (WTO)
The European Union put forward a proposal calling on the WTO Secretariat to prepare a compendium document containing the contributions of COVID-19 responses that members and observers have provided to the committee. The compendium would help identify key difficulties and challenges members and businesses have encountered when importing or exporting goods during the crisis as well as particular reforms and changes members and businesses have made in response. Such a compilation would constitute a good basis to discuss recommendations to address the ongoing pandemic, the EU said.
WTO to take up India, South Africa’s TRIPS waiver plea (Economic Times)
The World Trade Organization will next week take up a proposal by India and South Africa for temporary waiver of some TRIPS Agreement provisions to ensure all countries have access to Covid-19 vaccines and medicines. The meeting is scheduled for February 4. The proposed game-changing waiver of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) would enable free flow of medicines, Covid-19 therapeutics and technology transfer across the world, experts said. The move comes at a time when global drug makers involved in the development of Covid-19 therapeutics have refused to give up the patents over their products despite receiving funding from public institutions to develop them, aid organisations said.
Investment in Upskilling Could Boost Global GDP by $6.5 trillion by 2030 (Modern Diplomacy)
Accelerated investment in upskilling and reskilling of workers could add at least $6.5 trillion to global GDP, create 5.3 million (net) new jobs by 2030 and help develop more inclusive and sustainable economies worldwide. These are the key findings of a World Economic Forum report published today. The report, Upskilling for Shared Prosperity, authored in collaboration with PwC, finds that accelerated skills enhancement would ensure that people have the experience and skills needed for the jobs created by the Fourth Industrial Revolution – boosting global productivity by 3%, on average, by 2030. The newly created jobs will be those that are complemented and augmented – rather than replaced – by technology.
Western Union: Emerging Market GDP, Innovation Depend On Remittances (pymnts.com)
In the payments industry, they’re known as remittances. But for the recipients of the cross-border money transfers and peer-to-peer (P2P) payments usually associated with developing economies, they are lifelines. They have provided critical support for those developing markets during the pandemic and will continue their importance after the pandemic is in the rearview mirror, a report by Oxford Economics, commissioned by Western Union, has found.
China calls for joint global efforts as WHO warns of rich-poor vaccine divide (CGTN)
China has reiterated its pledge of “making COVID-19 vaccines a public good,” while calling for joint global efforts to fight the pandemic even as the World Health Organization (WHO) warned of a worsening “vaccine divide” between rich and poor nations. “It is important to scale up cooperation in vaccine development, production and distribution, and make it truly accessible and affordable to people across the world,” Chinese President Xi Jinping stressed in his speech at the virtual Davos Agenda 2021 of the World Economic Forum (WEF) on Monday. He asserted that “containing the coronavirus is the most pressing task for the international community.”
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Country focus
National Treasury is convinced that SA’s Covid-19 vaccine acquisition strategy won’t feature corruption elements and middlemen unlawfully profiteering from this process – as was seen in the emergency procurement of personal protective equipment (PPE) that has become a cadres’ feast. The process of securing Covid-19 vaccines for frontline health workers and the wider public is being done on an urgent and expedited basis by the government, with normal bidding and procurement processes falling away. Treasury Director-General Dondo Mogajane says that the Department of Health is negotiating directly with vaccine manufacturers, which is a key safeguard against corruption, and also means that there is no room for middlemen to be introduced in the vaccine procurement process.
Ramaphosa urges businesses to help fund Africa’s vaccine rollout (Reuters)
South African President Cyril Ramaphosa on Wednesday urged businesses to help fund the continent’s COVID-19 vaccine rollout and asked more countries to support an initiative to waive intellectual property rules affecting vaccine production. Ramaphosa, who currently chairs the African Union (AU), has been leading efforts to secure sufficient vaccine doses for Africa’s 1.3 billion people. Ramaphosa told an AU webinar that it was a “painful irony” that some COVID-19 vaccine trials had taken place in Africa but that it was still struggling to secure doses. If a push by India and South Africa at the World Trade Organization to waive parts of the TRIPS agreement on intellectual property rights succeeds, African countries could benefit from technology transfer to manufacture vaccines more cheaply, he said.
Government recommits to stabilising debt (SAnews)
National Treasury has reiterated government’s commitment to prioritising the COVID-19 pandemic response, reducing the fiscal deficit and stabilising debt over the next five years. The department made the commitment during a series of virtual meetings with the International Monetary Fund (IMF) between 15 and 25 January 2021. The IMF noted that the COVID-19 pandemic had worsened South Africa’s growth and fiscal vulnerabilities and therefore, government is rightly prioritising the response to the pandemic. The IMF urged South Africa to reduce large fiscal deficits and debt levels through the containment of the wage bill, and avoiding ill-targeted subsidies and transfers to inefficient SOEs. “South Africa should advance structural reforms that will raise long-term growth,” said the IMF.
Harm to informal food trade is harm to entire SME food industry (BusinessLIVE)
In April 2020, SA moved into unprecedented territory when the Covid-19 pandemic that had been ravaging populations across the globe finally hit home. Overnight, businesses were shuttered, employees furloughed and the economic wellbeing of millions brought into question. In the following months, the SA economy shed more than two-million jobs and an already high unemployment rate shot even higher. While the devastation unleashed on the economy affected all levels of the working class, it was those considered most vulnerable who were hit hardest. The food sector mirrored the rest of SA’s economy, with the haves fairing far better than the have nots.
Investing in transport: How can we help countries make better-informed decisions? (World Bank)
South Africa has made significant progress toward achieving the Sustainable Development Goals (SDGs). But the work is far from over. To sustain and amplify the socioeconomic gains of the last few years, expanding access to sustainable transport will be a key priority. These were the views expressed by Ms. Boitumelo Mosako, Chief Financial officer and Executive Director of the Development Bank of Southern Africa (DBSA), in a dialogue during the just concluded 10th Consortium Meeting of the Sustainable Mobility for All initiative (SuM4All). For Mosako, the benefit of working with SuM4all partners is clear: it is all about making better-informed decisions to transform South Africa’s transport sector and propel the country forward.
Transnet National Ports Authority move to improve competitiveness (SAnews)
The Coega Development Corporation (CDC), developer and operator of the Coega Special Economic Zone (SEZ) has welcomed the move by Transnet National Ports Authority (TNPA) to relocate its head office to the Port of Ngqura. “It’s a much-welcomed move and one the CDC looks forward to with keen interest bearing in mind the symbiotic economic enabling relationship the CDC and Port of Ngqura have enjoyed over a long period of time,” CDC Unit Head of Marketing, Brand and Communications, Dr Ayanda Vilakazi said on Wednesday. He said the decision of the TNPA shows the commitment to be closer to clients, ensure the unblocking of projects, and facilitate further the competitiveness of ports, impacting positively on the various port users.
Kenya sets the pace in use of tech to ease travel (Business Daily)
Massive changes have been implemented at airports across the globe in the wake of a pandemic that has altered the way we do things in virtually every aspects of our lives. Countries have been compelled to innovate to make airports and travelling safe and help in fighting the Covid-19 menace. Kenya’s Jomo Kenyatta International Airport (JKIA) is no exception, having deployed latest technologies in screening and clearance of travellers.
Africa CDC Director Dr John Nkengasong acknowledged Kenya’s robust technology ecosystem, where blockchain and machine learning are being used to address challenges in various sectors, saying that such an advantage will be key to getting the country’s air industry back to profitability. “Kenya has always been a trailblazer of innovation in Africa, but it is its commitment to continental integration that makes our collaboration on digital health through Trusted Travel such a powerful showcase of Pan-African innovation,” he told Digital Business.
Kenya shrugs off inflation fears to retain benchmark loans rate (The East African)
The Central Bank of Kenya (CBK) on Wednesday retained the base lending rate at 7 per cent for the sixth time in a row shrugging off rising concerns over inflation. The Monetary Policy Committee “noted that the package of policy measures implemented since March 2020 were having the intended effect on the economy, and are being augmented by implementation of the announced fiscal measures in the financial year 2020/21 Budget,” MPC chairman and CBK governor Patrick Njoroge said after its meeting.
Taxes, politics biggest threat to Kenya’s economic recovery (Nation)
Tax increases and politics are seen as the biggest challenges to recovery as analysts look for bright spots to invest in the Kenyan economy. Egyptian investment firm EFG Hermes says the rise in political temperatures ahead of a plebiscite on Building Bridges Initiative and 2022 general election are likely to dampen recovery post-Covid-19. The firm’s analysts say the market is already reflecting more uncertainty about Kenya’s political path than it did two years before the 2017 elections.
Restructured loans hit Sh1.6 trillion (Nation)
Commercial banks have now restructured loans amounting to Sh1.63 trillion, which is more than half of all loans in the country due to the Covid-19 pandemic. This is after borrowers, hard hit by the health crisis, took advantage of the relief announced by the Central Bank of Kenya (CBK). The CBK said of the Sh35.2 billion that was released by the lowering of the Cash Reserve Ratio (CRR) in March, Sh32.6 billion (92.7 percent) has been used to support lending, especially to the tourism, trade and transport and communication, real estate, manufacturing and agriculture sectors.
‘Utilise ATO to gather market information’ (Chronicle)
Zimbabwe’s private sector has been urged to utilise the to gather market intelligence and boost trade riding on the operationalisation of the African Continental Free Trade Area (AfCFTA). Speaking during the AfCFTA webinar meeting organised by the country’s national trade development and promotion agency, ZimTrade on Tuesday, the African Union (AU) Commission senior customs expert and advisor at the AfCFTA Mr Willie Shumba said: “The AU Commission has established what is called the African Trade Observatory, it’s a market intelligence system which tells you of the various opportunities and products which other countries might have or have interest in…. The AfCFTA is saying those who want to take advantage of the trade and economic opportunities within Africa now need to look beyond their traditional markets such as Comesa, EAC and Sadc.”
Customs and Excise crucial to unlock Namibia’s competitiveness (New Era)
The African Continental Free Trade Area (AfCFTA) is brim-full of opportunities to strengthen intra-Africa trade, regional and continental value chains and to create access to new markets and revenue streams. Within this context of the renewal of supply chains, customs administrations will play an integral part as they unlock and leverage Namibia’s competitiveness and enhance both continental and global trade logistics. These sentiments were expressed yesterday by Minister of Finance Iipumbu Shiimi during the celebration of World International Customs Day, which this year encompasses the theme: “Customs bolstering recovery, renewal and resilience for a sustainable supply chain”. In a speech, delivered by Commissioner of the Namibian Revenue Agency (NamRA) Sam Shivute, Shiimi noted that “the sustenance and security of the supply chain play a pivotal role in the movement of goods across borders and countries.”
P13 billion Budget deficit projected (The Patriot On Sunday)
Botswana’s Balance of Payments (BoP) amounts to P21.1 billion deficit as of September 2020, a Bank of Botswana Report has shown. “The deficit mainly resulted from larger payments for imports than receipts from exports in the current account, as alluded to earlier. This resulted in a higher deficit in the current account, as compared to a small surplus registered in the financial account,” the Monetary Policy Committee report indicated. The merchandise trade, services and income accounts recorded a combined deficit of P10.6 billion, which was partly offset by a surplus of P3.6 billion in the current transfers’ account, which is dominated by the SACU revenue receipts. Exports decreased by 75 percent while imports decreased by 23.1 percent, leading to a deficit of P8.7 billion in the merchandise trade account.
Automotive policy will make Nigeria Africa’s manufacturing hub – FG (Nairametrics)
The Minister of Industry, Trade and Investment, Adeniyi Adebayo has disclosed that the new Automotive Industry Bill will help position Nigeria in its rightful position, as the manufacturing hub of Africa. According to him, the whole idea of the New Automotive Policy will be centered on creating an enabling environment for key players in the industry, as the policy seeks to gain the confidence of investors in the industry, especially the Original Equipment Manufacturers (OEM), with the view to have them come in to set up manufacturing plants in Nigeria. The Minister revealed that to make this happen, the government is set to put in place a policy that guarantees the investments of manufacturers and other key players in Nigeria.
Slash on imported vehicles’ duties begins next week – Customs (The Punch)
AfCFTA: Nigeria Customs raises concern over non-inclusion in rules of origin (WorldStage)
The Nigeria Customs Service (NCS) has expressed concern over its non-inclusion in the rules of origin in the African Continental Free Trade Area (AfCFTA) agreement. The Comptroller-General of Customs, retired Col. Hameed Ali made this known at a news conference to mark 2021 International Customs Day in Abuja. Ali explained that while customs was excluded in the rules of origin in verification and certification of goods, chambers of commerce were certified to carry out such obligations. He said chambers of commerce were not experts in the process, hence the need to properly include customs to perform its roles.
‘Economy projected to recover in Q2 in absence of major shocks (The Guardian Nigeria)
Notwithstanding anticipation of slow growth, reflecting the lingering effects of the COVID-19 pandemic on the economy and prospects of stricter containment measures amid a new strain of the virus, the Lagos Chamber of Commerce and Industry (LCCI), has projected a return to positive growth in the second quarter (Q2) of this year. According to the Chamber, Nigeria’s economic growth trajectory is hinged on effective management of the pandemic locally and globally; widespread vaccine rollout; direction of global oil market, and quality of fiscal, monetary, trade and regulatory policies.
Nigeria Joins Forces with World Economic Forum to Fight Plastic Pollution (WEF)
Nigeria will officially join the World Economic Forum’s Global Plastic Action Partnership (GPAP), a platform that works with governments, businesses and civil society to translate plastic pollution commitments into concrete solutions. In joining GPAP, Nigeria will work with the WEF to launch a National Plastic Action Partnership, based on a promising model that has been piloted in Indonesia, Ghana and Viet Nam. Its principal mandates will include creating and working with locally led, locally driven platforms, such as the Federal Ministry of Environment and the African Development Bank-coordinated Nigeria Circular Economy Working Group (NCEWG), to bring together the country’s most influential policy-makers, business leaders and civil society advocates. The goal is to deliver a national action plan for radically reducing plastic pollution, connecting high-potential solutions with strategic financing opportunities.
Seychelles: Country Strategy Paper 2021-2025 (AfDB)
Seychelles became a high-income economy in 2015, and its GNI per capita reached US$ 15,600 in 2018, and continues to enjoy a stable political environment. Moreover, the country witnessed recent robust economic growth averaging 4.2% during 2016-2019 and recorded significant progress on social front with a low Multidimensional Poverty Index (MPI) estimated at 0.04 (2019). Despite this positive evolution, the country still faces development challenges. This Country Strategy Paper (CSP) 2021-25 for Seychelles was prepared at a time when the country was seriously impacted by the COVID-19 global pandemic and is aligned both with the Seychelles’ new Vision 2033 and National Development Strategy (NDS) 2019-2023, and the Bank’s strategic and operational priorities. Owing to the victory of the opposition in the presidential elections of 24 October 2020, any changes in the strategic direction of the country will be reflected in the CSP 2021-2025.
News from Africa and Africa’s international trade relations
Working together towards global recovery (SAnews)
President Cyril Ramaphosa says the COVID-19 pandemic has had a severe impact on African economies, on public health and on the AU system itself. “It is therefore more critical than ever that we step up our collaboration on all fronts as we drive the global recovery effort,” President Ramaphosa said. In his welcome address delivered virtually at the New Partnership for Africa’s Development (NEPAD) 20th Symposium on Thursday, President Ramaphosa said the African Union will continue to work through the COVID-19 Vaccine Global Access Facility known as COVAX to ensure equal access to the vaccine, and that the needs of poor countries are taken into account. President Ramaphosa said they will pursue efforts through the African Vaccine Acquisition Task Team to complement the COVAX arrangements and to secure enough vaccine doses for the continent.
Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina (Businessamlive)
The president of the African Development Bank (AfDB), Akinwumi Adesina, has stated that profit shifting, base erosion and tax avoidance by multinational corporations form a huge part of Africa’s missing taxes and they account for a large share of the over $60 billion in illicit capital flows that Africa loses annually. He made this revelation on Thursday while delivering his speech at the FIRS First Tax Dialogue held by the FIRS in Abuja, Nigeria. “Taxing corporate revenue instead of profits will discourage investments needed to grow businesses and to create jobs. Now, natural resources tax can play a major role in Nigeria. Given Nigeria’s high reliance on oil and gas and minerals, the government should ensure these sectors pay taxes and royalties that are fair and transparent,” Adesina stated.
CPI 2020: Sub-Saharan Africa (Transparency.org)
With an average score of 32, Sub-Saharan Africa is the lowest performing region on the CPI, showing little improvement from previous years and underscoring a need for urgent action. Across the region, the COVID-19 pandemic highlights structural gaps in national health care systems, corruption risks associated with public procurement and the misappropriation of emergency funds. The economic shock of the pandemic led to protests and dissent in many countries, including South Africa (44), Angola (27) and Zimbabwe (24), about rising costs of living, corruption and the widespread misuse of emergency funds. In South Africa, an audit of COVID-19 expenditures revealed overpricing, fraud and corruption. In Nigeria (25), civil society organisations denounced reports of hoarding of COVID-19 medications by states and called on anti-corruption institutions to investigate the allegations. Rather than add pledges, countries must enforce numerous existing anti-corruption commitments, including Agenda 2063, the transformative agenda of the African Union for inclusive growth and sustainable development.
2020 CPI: corruption worsens Covid-19 response and recovery - Corruption Watch
SA fails to make progress in Corruption Perceptions Index
COVID-19 has had a heavy toll on the people of Africa in terms of lives lost and the severe economic impact that is hitting the most vulnerable the hardest. Tens of millions of people are falling into extreme poverty. It’s vital to prioritize the rollout of COVID-19 vaccines. We estimate that every month of delay costs the African continent $13.8 billion in lost GDP. That’s in addition to the loss of lives and human capital. Since the outbreak of COVID-19 last March, the Bank has committed $25 billion to African countries to support their health and economic recovery, and we expect to commit an additional $15 billion by June. We urge leaders of African countries to move quickly to secure vaccinations for their populations, and to avail themselves of the financing available from us and other partners to help with this.
We’ve unique opportunity to bridge digital divide and change our lives (The East African)
According to the Broadband Commission for Sustainable Development at Unesco, most Africans get access to the internet through data from their cell phones. However, the usage gap on the continent, or the percentage of people living inside mobile broadband coverage but not using mobile internet, stood at 49 per cent in 2019. Lack of digital skills and affordability are the two main drivers behind this gap.
Covid-19 has shown us in many ways that digital connectivity, particularly through our mobile phones, is crucial and that lack of it can have catastrophic effects. We cannot underestimate the democratisation of data and the power of the internet in the post-Covid future – just getting people connected opens up a world of possibilities that goes beyond getting a job. If you put data in the hands of people and allow them to do with it what they want, it will bring unprecedented opportunities.
‘Africa needs a single passport to make AfCFTA effective’ – Acheampong (GhanaWeb)
African leaders and stakeholders behind the African Continental Free Trade Area (AfCFTA) have been urged to develop a common passport to facilitate trade within the continent. According to Benjamin Acheampong, Executive Director of consultancy group Wealth Masters, the notion of “Africa Rising” will remain a misnomer unless conditions for doing business on the continent with ease are created. He said governments need to focus on improving internet services, communication and transport in order to ensure a smooth implementation of the AfCFTA. “When all these infrastructure are put in place, then we are on course to pull this AfCFTA initiative off.”
Access Bank repositions digital payment to reap AfCFTA gains (The Nation Newspaper)
Access Bank’s planned expansion to eight African countries will come with huge gains from the 1.3 billion people targeted in the African Continental Free Trade Agreement (AfCFTA) deal. The bank’s strong digital banking platforms will play well in enabling electronic payments across countries of operation and beyond. The lender is not only focusing on key markets to support regional trade and targeting new opportunity markets but positioning its operations as a trade and payments gateway to the world.
Several African Countries Reimpose Restrictions While COVID-19 Cases Rise (News Ghana)
Although during 2020, African Union (AU) member states have recorded far few cases of coronavirus infections per capita than many western industrialized countries in Europe and the United States as well as Brazil and India, the advent of a new variant of the virus in South Africa has raised alarms on the continent and internationally. Many governments have imposed lockdowns and severe restrictions on movements and gatherings which closed schools, businesses, religious institutions and social gatherings since March 2020. However, the economic and social impact of these measures left many workers unemployed. Border crossings had been closed or severely restricted throughout the SADC and other regions of the continent. This lessening of border crossing restrictions and the spike in coronavirus cases has served to spread the virus on a broader inter-continental level.
African migration observatory to begin work in February (InfoMigrants)
The African Migration Observatory was inaugurated at the end of December 2020 and will begin work in February 2021. One of its main aims is to collect information to establish better migratory policies and invite a more balanced view of the topic on the continent. Africa’s first migration observatory is about to begin work in the Moroccan capital Rabat next month, (February). It has been set up by the African Union (AU) with the support of Moroccan King Mohammed VI, who is responsible for the dossier on migration within the African Union. Its inauguration comes more than two years after the adoption of the international Marrakesh pact in 2018 for safe, ordered and regulated migration. The observatory is intended to help observe, research and collect and exchange their own data about migration on the continent, according to its creators – members of the African Union.
Roundup: AU commission chairperson announces “eight major priorities” seeking second-term (Xinhua)
Chairperson of the African Union (AU) Commission, Moussa Faki Mahamat, on Tuesday announced “eight major priorities,” seeking re-election amid an imminent upcoming election. Mahamat, who was elected by African leaders to lead the 55-member pan-African bloc back in January 2017 during the 28th AU Summit, is fast approaching an end to his four-year first-term tenure at the helm of the AU Commission. The Chairperson of the AU Commission is set to present an assessment of his first-term activities to the assembly of African leaders, who are set to meet from February 6 and 7 as part of the 34th AU Summit.
The eight major priorities include finalizing the institutional reform and strengthening the leadership of the AU Commission; enhancing administrative and financial accountability; silencing the guns at continental level; executing key continental integration projects such as the African Continental Free Trade (AfCFTA) Agreement; as well as realizing the continent’s food self-sufficiency, reduce poverty by building resilience through agriculture, the blue economy and environment protection.
Vision of H.E. Moussa Faki Mahamat for the term of office 2021-2024
34th AU Summit strives to leverage and valorise African Arts, Culture and Heritage (African Union)
The thirty fourth (34th) Assembly of Heads of State and Government of the African Union (AU) scheduled to take place on 6 and 7 February 2021 will hold under the theme: “Arts, Culture and Heritage: Levers for Building the Africa We Want”. This theme of the year will be presented during the upcoming African Union Summit, by the lead Department of Social Affairs at the AUC. However, it is worth noting that, Africa is universally recognised for its rich arts and cultural diversity given that, African cultural heritage springs from different communities all over Africa. Therefore, cultural heritage, which is seen as an expression of the ways of living developed by a community and passed on from generation to generation, including customs, practices, places, objects, artistic expressions and values, will for the next twelve months, be at the centre of discussion in most events organised by the African Union
SADC hailed for regional integration (New Era)
The Southern Africa Development Cooperation (SADC) has been hailed for a sound record on some important milestones in different areas of regional cooperation and integration, especially when it comes to peace and security, infrastructure development, as well as trade and investment. Addressing delegates during the launch of the African Union-SADC National Committee yesterday, international relations minister Netumbo Nandi-Ndaitwah said this has been made possible through continental and inter-regional cooperation and integration. “The participation of our citizens in decision making, particularly women and youth, bring the regional process closer to people. Theory and practice continue to prove that such cooperation can positively contribute to capacity building, as well as infrastructure and economic development across countries and regions,” she noted.
Africa Finance Corp. to Boost Lending in Virus Battle (Bloomberg)
The Africa Finance Corp., a development-finance institution focused on infrastructure across the continent, expects to more than double its lending this year in a bid to help African countries recover from the coronavirus pandemic. The organization, which today announced its first direct-borrowing arrangement with the OPEC Fund for International Development, plans to lend more than $2 billion on a net basis in 2021, said Banji Fehintola, the AFC’s senior director, head of treasury & financial institutions. “We have always done at least $1 billion of net lending annually at a minimum,” he said in an interview on Wednesday, adding that this year’s amount would be a record. “We are trying to get the continent back from the Covid pandemic.” Countries across the continent were decimated last year as attempts to curb the spread of the virus saw economic activity shut down and trade disrupted. Africa experienced its first recession in a quarter-century last year, according to the World Bank.
Food Systems in Africa: Rethinking the Role of Markets (World Bank)
Food for cities in Africa is changing under the triple effect of growth demography, urbanization and transformations in agricultural production and trade. These changes create risks: African cities increasingly face the challenges of undernutrition and malnutrition. But they also generate new opportunities: the economy food is the continent’s main source of employment and will remain so in the near future, both to ensure agricultural production, agro-food processing and product distribution. At the center of this economy are the intermediaries market, which link producers and consumers, and whose ineffectiveness explains that about a third of the production evaporates in food losses.
An Africa Roadmap for Biden by Célestin Monga (Project Syndicate)
The arrival of President Joe Biden’s administration provides an opportunity to rekindle the US-Africa relationship. Typically, articulating an Africa strategy is not a top priority for new American presidents. In Biden’s case, he has taken office at a time of heightened global fears about COVID-19, ongoing economic uncertainty, and deep geopolitical division. And for its part, Africa is suffering its worst economic performance in a generation, setting the stage for persistent misery, social unrest, and violent conflict in the future. Nonetheless, the sheer depth of these problems makes this a perfect time for bold initiatives. To be sure, Africa – a dynamic region with great resilience, high aspirations, abundant resources, unbounded creativity, and plenty of ideas – should not rely on any foreign power for its political and economic future. The fuse of prosperity and peace must be lit from within. But, because trade is the main engine of growth and socioeconomic development for African economies (all of which are small and open), and because the US remains the world’s dominant economic player, Africans are looking to the Biden administration to propose a new course.
How Joe Biden can revamp US-Africa policy with an eye on China (Quartz)
Global Economy
Vaccines Inoculate Markets, but Policy Support Is Still Needed The Global Financial Stability Update at a Glance Approval and rollout of vaccines have boosted expectations of a global recovery and lifted risk asset prices, despite rising COVID-19 cases and softening economic activity in late 2020. Until vaccines are widely available, the market rally and the economic recovery remain predicated on continued monetary and fiscal policy support. Inequitable distribution of vaccines risks exacerbating financial vulnerabilities, especially for frontier market economies.
Policymakers should continue to provide support until a sustainable recovery takes hold: under-delivery may jeopardize the healing of the global economy. However, with investors betting on a persistent policy backstop and a sense of complacency permeating markets as asset valuations rise further, policymakers should be cognizant of the risks of a market correction.
IMF raises concern over uneven COVID-19 vaccination, recovery (The Guardian Nigeria)
The International Monetary Fund (IMF) has expressed confidence that the COVID-19 vaccine rollout across different parts of the world would boost confidence in the economy despite rising infection cases. It warned that the uneven vaccination trend and “asynchronous recovery” could stifle growth and endanger capital flows to emerging market economies “especially if advanced economies were to begin to normalise policy.” These were contained in the January 2021 Global Financial Stability Update released yesterday. IMF said the earlier-than-expected global vaccination campaigns “have boosted market sentiment and paved the way for the global economic recovery” but regretted that the uneven process could fuel financial vulnerabilities in emerging markets, including Nigeria, as capital moves to economies with reduced risks.
Global coalition of industry associations call for breakthrough on data flows at the WTO (ICC)
ICC is pleased to join the release today of the Joint Industry Statement on Cross-Border Data Transfers and Data Localization Disciplines in the WTO Negotiations on E-Commerce, which encourages WTO negotiators to agree on a framework to facilitate the seamless and secure movement of information across borders. “COVID-19 has underscored the indispensable role of e-commerce in our lives, and we commend the participating WTO Members for the progress made to date,” said ICC Secretary General John W.H. Denton AO. “Data flows are at the heart of today’s global economy. They support economic opportunity in every country and across every sector,” said Victoria Espinel, President and CEO of BSA | The Software Alliance. “In today’s remote environment, our jobs, health, education, and well-being depend on digital connectivity and data flows like never before. It should be a top priority for governments to negotiate WTO commitments that support the seamless and secure cross-border movement of information.”
Elizabeth Morgan | The WTO and COVID-19: Securing medical and food supplies (Jamaica Gleaner)
COVID-19, as indicated in previous articles, is a trade and health crisis requiring collaboration between the World Trade Organization (WTO), the World Health Organization (WHO), the Food and Agriculture Organization (FAO) and other trade-related bodies. An important aspect of the treatment of COVID-19 is the trade in medical goods and services. In goods, we are looking at medical supplies, such as personal protective equipment (PPE), which includes clothing, gloves, face coverings; drugs, including vaccines; ventilators and other medical technological devices, some still evolving. In addition, there is concern about the general flow of trade to keep economies functioning and the availability of food supplies. The WTO, therefore, has an important role to play in this pandemic. It is concerned about the contraction of global trade, projecting that it would decline by about nine per cent in 2020, and about the use of trade policy measures to restrict trade, especially if there is a shortage of medical and food supplies. While the WTO was expecting trade to rebound in 2021, there is still a pessimistic outlook for this year –depending on policy measures applied and the ability to contain COVID-19
Accelerating Digitalization: Critical Actions to Strengthen the Resilience of the Maritime Supply Chain (World Bank)
The Coronavirus disease 2019 (COVID-19) pandemic has upended lives and brought major disruption to economic activity across the world, precipitating an unprecedented global health and economic crisis. One of the key lessons learned early in the pandemic was the need to ensure business continuity of the critical supply lines, notably the maritime gateways, and the associated logistical chains. However, the maritime ports are also just one node in a complex logistical chain involving a number of interactions; digitization is vital to improving the competitiveness of that chain. This report highlights the immediate, short-, and medium-term measures considered necessary to strengthen the resilience of the maritime and logistics sector, to build back better, and more importantly ensure countries realize the significant potential efficiency gains of digitization. Any move towards increased digitization will require a high level of political commitment, while the establishment must have an appropriate legal, regulatory, and policy framework at the national level, across the different disciplines of the maritime, port, clearance agencies, and the transport and logistics sector.
Food systems face a daunting triple challenge requiring governments to take a more holistic approach (OECD)
Food systems face the triple challenge of providing food security and nutrition for a growing global population, and livelihoods to farmers and others working in food supply chains around the world, all while improving environmental sustainability. Given the deep connections between these objectives, governments can do much more to take into account the synergies and trade-offs that exist between the different areas, as well as the challenges for developing more coherent policy, according to a new OECD report. Making Better Policies for Food Systems brings together decades of OECD research and policy recommendations on food systems. The report underlines the long track record providing data, evidence and policy recommendations on topics ranging from agricultural productivity and trade to obesity, water use, rural development and global value chains.
Transforming agri-food systems will shape the future, FAO chief told World Economic Forum (FAO)
The Director-General of the Food and Agriculture Organization (FAO) of the United Nations, QU Dongyu, called today for coordinated joint responses and “global synergistic action before it is too late” to transform the world’s agri-food systems. Holistic changes are needed to address issues such as climate change, agricultural production, demographics, consumer demands, biodiversity, nutrition, pests and food technology, among others. “We know that the resources – intellectual, financial and material – to unlock innovation and transform agri-food systems are not lacking,” he said. Ultimately, the goal is on-the-ground livelihood improvement for rural and small-scale food producers, which can be fostered by initiatives such as online platforms for e-commerce, delivery services and marketing, and blockchain for better traceability and food safety
Noting how other panelists had discussed the role of trade and subsidies, he added that innovation is needed across the board. “We need innovation of policy, innovation of business models, innovation of financing and technology - with these four we will transform the agri-food systems.”
Climate change less likely to be seen as emergency in poor nations (Thomson Reuters Foundation)
An online UN survey, distributed through adverts in popular mobile games, shows increasingly global understanding of the climate crisis, but the highest concern is in rich nations. People living in the poorest countries are less likely to see climate change as an emergency or think it requires urgent action, the biggest-ever survey of public opinion on the issue showed on Wednesday. But despite regional differences, almost two-thirds of the 1.2 million people surveyed in about 50 nations agreed global warming was a crisis in the online “Peoples’ Climate Vote” poll conducted by the United Nations Development Programme (UNDP) and the University of Oxford. “There is an increasingly global understanding, and with it comes the ability to act collectively on climate change,” UNDP head Achim Steiner told the Thomson Reuters Foundation.
Least Developed Countries call for increased focus on climate adaptation (Modern Ghana)
The world’s least developed countries appealed to the international community for a greater focus on climate change adaptation, particularly locally-led adaptation, at the Climate Adaptation Summit held virtually this week. Bhutan, represented by Mr Sonam P. Wangdi, Chairs the Group of the 46 Least Developed Countries in the UN climate negotiations. He said: “Support for adaptation is urgently needed in the least developed countries, as our countries have low capacity to respond but have high exposure to increasingly intensifying climate impacts… Our priority is ensuring our communities and our economies can adapt to the changing climate. The climate crisis is worsening and our countries are the most vulnerable. Lives and livelihoods are at risk each day. Climate adaptation is critical for ensuring a safe future for all of our people, and future generations.”
Supply chains can be a climate game-changer. Here’s why (WEF)
For leading business executives committed to climate action, there was a silver lining in the dark cloud of 2020. Greenhouse gas emissions dropped for the first time since the Second World War – by about 6-8%. Your company’s emissions probably went down along with everyone else’s. But most of this has happened for all the wrong reasons, and companies need ways to lower emissions that do not grow out of economic or operational disruption. Our latest analysis suggests that for many, a major opportunity lies in their supply chains.
11th Meeting of the Inclusive Framework on BEPS (OECD)
Since its formal establishment in 2016, the Base Erosion and Profit Shifting (BEPS) Inclusive Framework has driven a sea change in international tax policy, particularly with respect to the four BEPS minimum standards that countries and jurisdictions are implementing on an equal footing. The Inclusive Framework is now grappling with an increasingly pressing task: delivering a multilateral, consensus-based solution to the tax challenges arising from the digitalisation of the economy.
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Country focus
Government launches R1.2bn Tourism Equity Fund (SAnews)
Government on Tuesday launched the Tourism Equity Fund aimed at creating an inclusive and growing tourism sector by supporting entrepreneurship and investment on the supply side of the tourism sector. Speaking at the virtual launch of the Tourism Equity Fund (TEF), President Ramaphosa said many jobs in the tourism and associated sectors in the value chain have been shed. “The task before us now is to ensure that we do not simply return to business as usual, but that we accelerate the pace towards achieving our transformation goals,” President Ramaphosa said. According to President Ramaphosa, Tourism directly accounts for 2.9% of South Africa’s GDP and 8.6% indirectly. It supports about one-and-a-half million direct and indirect jobs. President Ramaphosa said South Africa’s tourism base is significant and that it is one of the world’s most popular long-haul destinations.
Parliament demands answers over poor management of SA’s borders (SowetanLive)
The National Assembly’s home affairs portfolio committee wants answers to what led to the congestion at two of the country’s busiest land border posts in December. MPs have argued that the congestion at the Beitbridge border on December 23 and 26 could have led to a humanitarian crisis. The committee visited three border posts – Beitbridge, Lebombo and Mbuzini – this month, where they saw first-hand the congestion and the numbers of undocumented foreigners illegally entering the country. MPs also witnessed poor adherence to Covid-19 regulations, they said.
Namibia’s customs administrations set to play pivotal role in AfCFTA (Xinhua)
Namibia’s customs administrations will be an integral part of the African Continental Free Trade Area (AfCFTA), as they unlock and leverage the competitiveness and enhance both continental and global trade logistics, Finance Minister Iipumbu Shiimi said Tuesday. Namibia is excited by the recent launch of the AfCFTA which is brimful of opportunities to strengthen intra-Africa trade, regional and continental value chains, Shiimi said in a statement delivered on his behalf during the World International Customs Day in Windhoek. “Customs administrations are expected to continuously adapt and display agility and dynamism,” he said, adding that Namibia is in the process of launching the Namibian Revenue Agency (NamRA) with a mandate to administer state revenue and the reform of customs and excise which will contribute to a more enabling business environment.
State to stop imports of used cars in five years (The Standard)
In the Draft 2021 Budget Policy Statement released yesterday, the Kenyan Treasury noted that second-hand car models make up more than 85 per cent of the imported fully built units (FBUs) in Kenya. “The government, through the Ministry of Industrialisation, drafted the National Automotive Policy to streamline the motor assembly industry with the ultimate goal of phasing out the importation of second-hand vehicles by 2026,” said the Treasury in the draft Budget paper. “The policy also aims at spurring growth in local car assembly as it prescribes clear measures to promote utilisation of locally manufactured products, local content, sub-contracting, innovation, research and development, capacity and skills development and training, and technology transfer.”
Kenyan manufacturers call for trade facilitation to exploit AfCFTA opportunities (Kenya Broadcasting Corporation)
Speaking during the session, KAM Chair, Mr Mucai Kunyiha, recognized the challenges and opportunities in AfCFTA. “AfCFTA shall open up borders, both in the continent and globally. However, the level of trade amongst African countries remains low. Whereas AfCFTA enables intra-Africa trade, we still source for raw materials, intermediate goods and finished products from more developed markets, including China, Europe and the United States. We need to look at the opportunities for trade amongst ourselves and take advantage of them in order to build our competitiveness and productivity,” said Kunyiha.
Kenya targets EAC export market with rail, Kisumu Port (The Star)
A properly working rail and lake transport system will be a boost to regional trade where Uganda remains Kenya’s leading trading partner. Over the Covid-19 pandemic period, trade between the two countries has slowed down on delays at the main Busia and Malaba borders, as both countries continue to implement measures to curb the spread of the virus. Kenya’s key imports from Uganda include milk and cream, tobacco, cane, electrical energy and plywood among others. Dominant exports from Kenya are mainly palm oil and its fractions, iron or non-alloy steel, petroleum oils and salt among other goods. Uganda accounts for 28.6 per cent of Kenya’s total exports to Africa.
Tanzania joins EAC One Area Network (Ecofin Agency)
Tanzania just joined the One Area Network adopted by the member countries of the East African Community to harmonize tariffs on voice calls within the region. In a letter addressed to the EAC Secretariat, Stephen Mbundi, the Permanent Secretary of the Tanzanian Ministry of Foreign Affairs, informed the sub-regional executive body that the United Republic of Tanzania has concluded the consultations and is now ready to begin implementation of the EAC Homelessness Framework. Tanzania’s letter comes while the country was in the focus of the EAC’s Transport, Communications and Meteorology (TCM) Sector Council. TCM had given Tanzania until March 31, 2021 to finalize its analysis on the implementation of the “One Area Network”. Once Tanzania’s implementation of the One Area Network is effective, the EAC expects a consolidation of sub-regional integration, pending Burundi’s decision to also join. The population will thus be able to communicate more at low cost. This will be a relief for traders, entrepreneurs, and businessmen in the sub-region.
AfCFTA: OPS Pledges to Collaborate with FG (THISDAY Newspapers)
Members of the organised private sector in Nigeria (OPSN) have pledged to work closely with the federal government on the implementation of the African Continental Free Trade Area (AfCFTA) agreement. They made the pledge Monday, during the formal handing over of the leadership of the OPS from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) to the Nigerian Employers’ Consultative Association (NECA). The OPSN is made up of the NACCIMA, the NECA, the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Small Medium Enterprises (NASME) and the Nigerian Association of Small Scale Industrialists.
Libya to develop its coastal free zones with African states through its railway project and create partnerships with EU (Libya Herald)
Libya plans to develop several coastal free zones to link with neighbouring African states through its railway project and create partnerships with the EU. The revelation was made by the Tripoli government’s Foreign Minister Mohamed Siala yesterday during a virtual workshop. In his opening speech, Foreign Minister Siala indicated that Libya considers COMESA to be one of the most successful and important economic blocs in the African continent. Through it, he added, Libya strives to achieve sustainable development that comes through implementing mega regional projects in several projects. These, he continued, aim to contribute to creating competitive national markets for the member states, help attract foreign investment and enter global markets.
Mauritania becomes second signatory state of the Establishment Agreement of Fund for Export Development in Africa (FEDA) (Afreximbank)
The Islamic Republic of Mauritania has signed the Agreement for the Establishment of the Fund for Export-Development in Africa (FEDA), a development impact-oriented subsidiary of Afreximbank. Mauritania becomes the second signatory of the Establishment Agreement after Rwanda signed in November 2020. To complete the FEDA Legal Establishment, two Afreximbank member states are required to sign and ratify the Establishment Agreement. Mauritania’s signature helps move FEDA’s Legal Establishment process forward. The Establishment Agreement grants FEDA legal capacity to conduct business in its own name as an International Organization with Privileges and immunities accorded to other Multilateral Financial Institutions in Mauritania.
CEMAC: Cameroon proceeds to provisional acceptance of 150-km of roads linking the country to Congo (Business in Cameroon)
The Cameroonian Ministry of Public Works (Mintp) informs that today January 26, 2021, it will proceed to the provisional acceptance of 150 kilometers of road linking Cameroon to Congo-Brazzaville in the framework of the CEMAC integration projects. According to the African Development Bank (AfDB), which is the main financial backer of this inter-capital road project, besides developing trade between the two countries, the roads will strengthen regional integration in Central Africa by allowing interconnection on roads linking Cameroon, Congo, DR Congo, Gabon, Equatorial Guinea and Central Africa.
News from Africa and Africa’s international trade relations
World Economic Forum: Davos 2021 highlights
Connecting Countries and Cities for Regional Value Chain Integration (Deloitte South Africa)
Within the context of operationalizing the African Continental Free Trade Area (AfCFTA) Agreement, as well as continuing to live with the COVID-19 outbreak, the members of the Regional Action Group for Africa identified five pathways as priorities for driving economic recovery and building resilience: new financing models for rapid recovery; unlocking manufacturing to mitigate global supply-chain risks; leveraging integration and regional value chains; revitalizing infrastructure and connectivity; and scaling digital transformation and inclusive innovation
This report is one in a series of reports investigating these pathways, and explores two priorities: first, unlocking manufacturing to mitigate global supply-chain risks; and second, leveraging integration and regional value chains. It also undertakes a review of the status quo of intra- African trade and current African efforts towards liberalizing trade in the continent, and seeks to identify avenues to be explored in order to deepen intra-African trade and unlock production capacity to meet local and global demands in strategic sectors, focusing on the automotive industry.
Virtual State of the World Address by President Cyril Ramaphosa to the World Economic Forum (WEF) Davos Dialogues (The Presidency)
Today, humanity is facing an unprecedented global health, social and economic crisis. The World Bank has reported that extreme poverty is expected to rise globally for the first time in over 20 years as the disruption caused by the pandemic exacerbates the effects of conflict, climate change and underdevelopment.
It is clear that the world is at a crossroads. We are facing a common threat and must therefore act together. These challenges – from poverty to the destruction of our environment, from conflict to inequality, from illiteracy to famine – are all the result of our actions and, too often, our inaction. Our task is therefore not to restore the world to where it was when this pandemic struck, but to forge a new path towards a world that is just, peaceful, cohesive, resilient and sustainable.
Working together with business, labour and civil society, we have developed an Economic Reconstruction and Recovery Plan.
This Plan aims to boost confidence, restart the economy and drive urgent reforms to promote faster, more inclusive growth and employment.
The plan has four immediate priority interventions: Firstly, a massive infrastructure build programme; Secondly, we are rapidly expanding energy generation capacity; Thirdly, we have begun to create additional jobs and support livelihoods through an employment stimulus. Fourthly, we will be intensifying our drive for export-oriented industrial development.
We aim to significantly grow local manufacturing and production, and make South African exports much more competitive. These interventions will enable South Africa to better realise the potential of the African Continental Free Trade Area, which became operational on 1 January 2021. The free trade area will foster integration, increase trade and accelerate the build-up of productive capabilities and infrastructure in Africa to meet growing demand.
South Africa will benefit from greater exports to the continent, and domestic sectors such as steel, automotive production, mining and manufactured products are set to benefit, materially boosting economic growth.
We are pursuing each of these interventions with an urgency and resolve that matches the proportions of the challenge.
Global competition over vaccines may prolong crisis, Cyril Ramaphosa tells WEF
President Ramaphosa asks rich countries not to hoard COVID-19 vaccines
Africa can have an inclusive, cohesive and sustainable recovery from Covid (Mail & Guardian)
The Covid-19 pandemic is driving Sub-Saharan Africa into its first recession in 25 years, putting economic progress at risk. Recovery will depend on how effective governments and private sector partners are at addressing four key priorities: Implementing the African Continental Free Trade Area (AfCFTA); Addressing macroeconomic vulnerabilities; Harnessing the digital transformation; and A just transition to zero emissions.
The World Economic Forum’s Regional Action Group for Africa, in collaboration with Deloitte, recently published a report that addresses how governments and the private sector can leverage this opportunity by building effective regional value chains. Implementing the AfCFTA, which will require the cooperation and coordination of public and private stakeholders, will help usher in the kinds of reforms necessary to enhance long-term growth, reduce poverty and broaden economic inclusion.
Richard Kyereh: AfCFTA will be ineffective without a Single African Air Transport Market (Myjoyonline)
After decades of thoughts and years of postponement, finally, the African Continental Free Trade Area (AfCFTA) is up and running, affording all African countries, except Eritrea, to trade under a single market. As citizens of Africa, we share in the joy for such a trade framework, however, the mission of the AfCFTA which seeks to accelerate intra-Africa trade and strengthen Africa’s voice in the global market space will be meaningless unless the Single Africa Air Transport Market (SAATM) framework is fully implemented.
Why it’s more expensive to fly within than out of Africa (Business Daily)
Flying out of the African continent is way cheaper than flying within it thanks to high taxes, fees and charges slapped on airlines and passengers. Latest African Airlines Association (AFRAA) Taxes, Fees and Charges in Africa report says an affordable air transport will develop Africa’s tourism and trade sectors that are the backbone of the continent’s economies. Intra-Africa trade is extremely low at 15.2 per cent (2015-2017) in comparison to European’s (50 per cent) and Asia’s (64 per cent). “Air transport will be vital in the implementation of African Continental Free Trade Area (AfCFTA) to develop trade among African States,” the report adds.
Covid-19 worsens turbulence facing East Africa’s airlines (The East African)
It is back to the drawing board for airlines in East Africa as a resurgence of Covid-19 further disrupts global travel amid the need to save jobs while turning cash positive. In its first briefing for the year on January 12, the International Air Transport Association (IATA) said that while the transition from cash-burn to cash-generation was in sight, the next six months would be difficult for airlines. While cargo has been a lifeline for many, IATA reports that African airlines saw demand shrink by 1.7 percent year-on-year in November, reversing three months of positive year-on-year growth. The drop was primarily driven by soft performance on the Asia-Africa route, which was down 4.5 percent year-on-year.
African banks sign deal to upgrade trade chokepoint at Zimbabwe border (Global Trade Review)
A group of African banks has signed a US$194mn senior debt facility to rehabilitate the Beitbridge border post, a crossing that connects Zimbabwe and South Africa. Rand Merchant Bank (RMB) acted as co-ordinating bank and sponsors’ advisor and, along with Absa, Nedbank and Standard Bank, was a mandated lead arranger (MLA). The African Export-Import Bank (Afreximbank) and the Emerging Africa infrastructure Fund (EAIF) were senior lenders, with the latter also acting as a mezzanine lender. The senior debt facility makes up the majority of the US$297mn project cost; the outstanding balance was obtained via a mezzanine debt of US$21mn and through equity.
Green technology boost for African mining (Engineering News)
The key to unlocking value of Kabanga Nickel and enabling the full beneficiation of new era metals in Tanzania is an environment-friendly hydrometallurgy process that eliminates smelting and thus slashes the need for electricity. The Kabanga Nickel Hydromet process – which takes ore to refined metals at lower capital and operating costs cutting carbon dioxide (CO2) emission by 80% and eliminating sulphur dioxide (SO2) emission altogether – is seen as a game changer for Tanzania, by providing the maximum in-country value-add to the East African nation.
ECO/AfCFTA: ECOWAS sets new guidelines on single currency and market (Ecofin Agency)
On Sunday, January 23, 2021, the member countries of the Economic Community of West African States held their 58th Ordinary Session of the ECOWAS Authority of Heads of State and Government. This virtual meeting saw the establishment of new guidelines regarding the community’s single currency and market. Concerning the single currency (ECO), the ECOWAS communiqué stressed that the deadline for this project, which has already been postponed several times, will be postponed again, particularly following the impact of the coronavirus pandemic on the macroeconomic performance of West African countries. A new macroeconomic convergence and stability deal between member countries is expected to be implemented by 1 January 2022. According to Alpha Barry, Burkina Faso’s Minister of Foreign Affairs, this new process should lead to a new roadmap for the single currency by 2025.
African Development Bank President Akinwumi A. Adesina announced the launch on Monday of the Africa Adaptation Acceleration Program (AAAP) to mobilize $25 billion to scale up and accelerate climate change adaptation actions across Africa. The AAAP, a joint initiative between the African Development Bank and the Global Center on Adaptation, is expected to scale up innovative and transformative actions on climate adaptation across Africa, Adesina said during the inaugural Ministerial Dialogue on Adaptation Action, held as part of the summit. “Our ambition is bold: to galvanize climate resilience actions; support countries to accelerate and scale up climate adaptation and resilience; and mobilize financing at scale for climate adaptation in Africa,” the Bank chief said.
Climate data presents a $2 billion opportunity in Africa. Here’s why (WEF)
Data is a currency of its own in the modern world, so if only a few people can extract, refine and store it, then it will end up widening existing inequality gaps. This is why “data democratisation” has become essential, especially in emerging economies. While the space sector has always leveraged open data, its value has not been tapped by most economies or societies. In this context, the role of satellite imagery could become increasingly important to find innovative solutions to current problems such as pandemics, famines, or climate change. Digital Earth Africa, a unique program launched in February 2019 uses the Open Data Cube and Amazon Web Services to make global satellite imagery more accessible and proves how data can bridge key social and economic inequalities in the twenty-first century.
Afreximbank Earmarks $2bn to Finance COVID-19 Vaccines’ Purchase (THISDAY Newspapers)
The President of the African Export-Import Bank (Afreximbank), Prof. Okey Oramah has disclosed that the bank is putting in place a financing facility of $2 billion to assist African countries in the purchase of COVID-19 vaccines, which would be available in the continent in March. He also called on Africans and businesses hoping to reap the benefits of the African Continental Free Trade Area (AfCFTA) agreement to exercise patience with the teething problems that would accompany the implementation of the continental free trade area’s agreement.
ECOWAS launches revolving fund to secure 240mln doses of Covid-19 vaccine (Ecofin Agency)
The Economic Community of West African States (ECOWAS) announced it will set up an undisclosed revolving fund to secure a total of 240 million doses of Covid-19 vaccine. In addition to the fund, ECOWAS authorities announced the establishment of a tariff for covid tests in the region. This measure aligns with ECOWAS harmonized protocol on the cross-border movement of persons and goods during the pandemic. This protocol aims to regulate the movement of people from one country to another within the community space, while harmonizing the new regulations of countries on the fight against the coronavirus. Member countries have until June 2021 to start vaccinations.
$37 million investment for SMEs in Sierra Leone, Burkina Faso, Guinea, and Mali (Sierra Leone Telegraph)
The USAID-funded West Africa Trade & Investment Hub has announced its first co-investment project with Stichting Cordaid (Cordaid), managed by Cordaid Investment Management B.V. (CIM), to increase access to finance by small and medium sized enterprises (SMEs) and microfinance institutions (MFIs) in Burkina Faso, Guinea, Mali, and Sierra Leone. This two-way trade in the fragile Sahel region of West Africa aims to combat high rates of poverty, unemployment, conflict, and desertification through private sector investments, targeting both women and youth.
This tech company helped Nigeria Customs generate ₦1.5 trillion in 2020, its highest ever. (Tech Cabal)
Container ship loading and unloading in deep sea port at sunset, Aerial view of business logistic import and export freight transportation by container ship in open sea. When the pandemic struck, the Nigerian government slashed the revenue expectations of different government departments. For the Nigeria Customs Service (NCS), the target was slashed from an initial target of ₦1.2 trillion ($3,145,478) to ₦900 billion ($2,359,108.71). But contrary to expectations, at the end of last year, the NCS generated ₦1.5 ($3,931,847.85) trillion; its highest revenue generated in a single year.
Mauritius and Morocco join African Development Bank (IPPMedia)
The African Development Bank administers the ABABI, a family of African bond indices launched in February 2015 and calculated by the independent, global index provider Bloomberg. At the launch, the indices included Egypt, Kenya, Nigeria, and South Africa. Botswana and Namibia joined in October 2015, and Ghana and Zambia in April 2017. Effective 1 January 2021, Mauritius and Morocco have become members of the ABABI, the Bank said. “This is a positive development as the inclusion of Mauritius and Morocco, two of Africa’s better-rated issuers, will improve the overall credit quality of the ABABI, which now captures close to 90% of the outstanding amount of African sovereign local currency bonds,” said Stefan Nalletamby, Director of the Bank’s Financial Sector Development Department.
Final Communique of the 6th PIDA Week | AUDA-NEPAD
We, Ministers and delegates to the Sixth PIDA Week and the organizing and partner institutions,
Reaffirm the crucial role of PIDA in the achievement of the main goals of the AU Agenda 2063 for continental integration, prosperity and peace and Reiterate our commitment to regional integration and the development of integrated and efficient infrastructure through the application of sound policy and development strategies which will enhance efficiency, sustainability and affordability of transport, energy, ICT and Water services;
Take note of the critical role that soft and hard infrastructure plays towards the realization of the AfCFTA and the opportunity for PIDA PAP 2 projects to emphasize appropriately designed continental infrastructure that will contribute towards building resilience against pandemics and shocks that disproportionately affect the poor and marginalized;
Underscore the importance of creating the enabling environment and undertaking capacity building required to build a bankable project pipeline, and Urge AUDA-NEPAD to work with partner institutions to provide early-stage project preparation support for PIDA PAP 2 projects through the PIDA Service Delivery Mechanism (SDM);
Call upon the Private Sector, and Development Partners to continue supporting the PIDA programme through modalities and instruments such as SDM, the 5% Agenda and the Continental Business Network (CBN) that support the accelerated implementation of projects;
Acknowledge that COVID-19 has necessitated a rapid move to digitalisation and the use of online technologies, which was measured during the Africa’s Development Dynamics 2021 report launch, and welcome AUDA-NEPAD’s work in promoting cyber-resilience through cybersecurity assessments based on the African Union Convention on Cybersecurity and Personal Data Protection.
Acknowledge that pandemics and similar shocks put short and long term pressures on socio-economic systems and Welcome AUDA-NEPAD’s Call for Proposal on Economic Recovery through Infrastructure Services, which will provide COVID-19 mitigation supports to African Micro Small and Medium Enterprises (MSMEs).
Her Excellency Fatoumata CM Jallow Tambajang and her commitment to serve the people of Africa (Africanews)
The gathering of the leaders of the African Union (AU) member nations will take place early next month in February 2021 to elect a new Commission, the body’s secretariat, to run the affairs of the AU for the next four years. From taking on the task of fighting the global pandemic within the African context to reengineering the African debate to The Africa We Want, Her Excellency Fatoumata CM Jallow Tambajang has outlined her four priority actions to achieve her mandate, if elected to the position of the Deputy Chairperson: Enhance administration and financial effectiveness, efficiency and responsiveness of the AUC; Strengthen the overall operational efficiency of the AUC; Effective and timely responses to the development challenges of Africa; The promotion of partnerships for development.
Global economy
Readying regional trade agreements for future crises and pandemics (UNCTAD)
Policy responses to the COVID-19 pandemic have heavily disrupted trade and supply chains, with many countries putting in place ad hoc trade-restrictive measures, seemingly without any concern about their effect on trading partners – at least during the early stages of the crisis. While such reactions to an unexpected global pandemic are understandable, they are certainly not optimal. They have highlighted the limitations of existing trade agreements, including over 184 regional trade agreements signed by economies in Asia and the Pacific, as well as the multilateral trade rules, in providing guidance on how to respond to emergency or crisis situations in a least trade-restrictive fashion.
Against this backdrop, in an effort to accelerate recovery from this crisis and better prepare for the future, UNCTAD together with The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the World Trade Organization (WTO), other UN regional commissions, as well as CUTS and other partners, launched a global initiative on model provisions for trade in times of crisis and pandemic in regional and other trade agreements in May 2020. While the initiative is still on-going, a key deliverable in 2020 was the organization of a fully online global policy hackathon.
Global economic recovery remains precarious, rebound of 4.7% to barely offset 2020 losses (United Nations)
The United Nations today warned that the devastating socio-economic impact of the COVID-19 pandemic will be felt for years to come unless smart investments in economic, societal and climate resilience ensure a robust and sustainable recovery of the global economy. In 2020, the world economy shrank by 4.3 per cent, over two and half times more than during the global financial crisis of 2009. The modest recovery of 4.7 per cent expected in 2021 would barely offset the losses of 2020, says the latest World Economic Situation and Prospects. The report underscores that sustained recovery from the pandemic will depend not only on the size of the stimulus measures, and the quick rollout of vaccines, but also on the quality and efficacy of these measures to build resilience against future shocks.
World Economic Outlook Update, January 2021: Policy Support and Vaccines Expected to Lift Activity (IMF)
Although recent vaccine approvals have raised hopes of a turnaround in the pandemic later this year, renewed waves and new variants of the virus pose concerns for the outlook. Amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. The 2021 forecast is revised up 0.3 percentage point relative to the previous forecast, reflecting expectations of a vaccine-powered strengthening of activity later in the year and additional policy support in a few large economies.
The strength of the recovery is projected to vary significantly across countries, depending on access to medical interventions, effectiveness of policy support, exposure to cross-country spillovers, and structural characteristics entering the crisis. Policy actions should ensure effective support until the recovery is firmly underway, with an emphasis on advancing key imperatives of raising potential output, ensuring participatory growth that benefits all, and accelerating the transition to lower carbon dependence.
Today, the Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya, announced that this year’s International Customs Day (ICD), which is marked annually on 26 January, will be celebrated under the slogan: “Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain”. As we all move resolutely towards a post-pandemic future in 2021, the Customs community, in collaboration with its partners and stakeholders, will be focusing on building Resilience and seeking ways to drive the Recovery process through enhanced collaboration and embracing the digital transformation, along with other advanced technologies, to enable Renewal. This will all be achieved by putting “people” at the centre of change for a Resilient and sustainable supply chain.
Services trade recovery not yet in sight (WTO)
Preliminary data further suggest that, in November, services trade was still 16% below 2019 levels. Prospects for recovery remain poor since a second wave of COVID-19 infections necessitated new, stricter lockdown measures in many countries, with tightened restrictions on travel and related services extending into the first quarter of 2021. The latest statistics confirm earlier expectations that services trade would be harder hit by the pandemic than goods trade, which was only down 5% year-on-year in the third quarter.
World could lose $9.2 trillion through Covid-19 vaccine nationalism (The New Times)
The global economy stands to lose up to $9.2 trillion if governments fail to ensure developing economies access Covid-19 vaccines, a new study commissioned by the International Chamber of Commerce (ICC) Research Foundation has found. This means the situation could cost up to over 10 per cent of the $88 trillion global economy. Titled “The Economic Case for Global Vaccinations”, the study published on January 25 shows that even advanced economies stand to lose trillions of USD through Covid-19 vaccine nationalism.
COVAX Announces new agreement, plans for first deliveries (WHO)
COVAX, the global initiative to ensure rapid and equitable access to COVID-19 vaccines for all countries, regardless of income level, today announced the signing of an advance purchase agreement with Pfizer for up to 40 million doses of the Pfizer-BioNTech vaccine candidate, which has already received WHO emergency use listing. Rollout will commence with the successful negotiation and execution of supply agreements. “The urgent and equitable rollout of vaccines is not just a moral imperative, it’s also a health security, strategic and economic imperative,” said Dr Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization.
Building on the work of the past months supporting country readiness efforts, a “Country Readiness Portal” will be launched by WHO this month, which will allow AMC participants to submit final national deployment and vaccination plans (NDVPs). This is a vital step before allocations can be made, to ensure that delivered doses are able to be effectively deployed and to identify where, if necessary, further support is needed.
Prime Minister Mette Frederiksen of Denmark will head a new high-level global commission – Our Inclusive Energy Future: The Global Commission on People-Centred Clean Energy Transitions – that will examine ways to ensure people are at the centre of clean energy transitions around the world. As countries seek to advance their shifts to clean energy technologies, the success of these efforts will rest on enabling citizens to benefit from the opportunities and navigate the disruptions. This includes social and economic impacts on individuals and communities, as well as issues of affordability and fairness. The new commission will explore these questions in depth, taking into account the need to see people as active participants in clean energy transitions – in collective decision-making and through individual actions and behaviours. Equity and inclusion issues will also be examined, including gender equality.
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Country focus
South Africa’s alcohol industry faces ‘economic abyss’ as alcohol ban continues (BeverageDaily.com)
With the third ban now having lasted a month with no date set for its end, liquor associations say many members are now near closure. The country’s alcohol industry – and associated livelihoods across the supply chain - had already suffered from more than 100 days of alcohol bans in 2020. In a letter sent to President Ramaphosa today, liquor and tavern associations say the tavern sector is ‘at risk of collapsing’ and over 250,000 jobs are at risk of dissipating if the ban is not lifted by February 1.
The South African government introduced the third nationwide ban on the sale of alcohol on December 28: citing a rising number of cases, increased pressure on health services, and the threat of a new more contagious variant. Meanwhile, the industry says the ban not only ‘plunges entire industries into a financial abyss’, but also reduces much-needed government revenue while promoting development of illicit sales of alcohol.
Calls for UK trade to help crippled SA by freeing up tank space (Harpers Wine & Spirit Trade Review)
Richard Bampfield MW has issued a call to the UK trade to support the beleaguered South African wine industry as producers continue to suffer crippling government restriction and oversupply issues. Winemakers in the country suffered a rollercoaster of a year in 2020 (see timeline below), and are still currently legally banned from selling wine domestically. Exports are now permitted once again. However, as the southern hemisphere heads into harvest, producers are facing the unenviable prospect of having to decide whether to throw away wine in order to make space in tank for the new year’s crush. Although not a permanent solution, Bampfield is imploring buyers in the UK to help deplete stocks in South African wine tanks and reinvigorate the industry by encouraging retailers to reorder.
While local poultry production has been steadily increasing over the last five years, with significant growth specifically emanating from numerous SMEs and a few medium-scale producers, a recent poultry ban has the potential to prove the country can be self-sustainable in terms of demand. The biggest national poultry producer, Namibia Poultry Industries (NPI) has therefore called on all poultry producers in the country to use the opportunity brought about by the suspension of poultry importation to show that Namibia can be self-sufficient and meet total local demand. Poultry imports were recently suspended by Namibia’s Chief Veterinary Officer in the agriculture ministry, Albertina Shilongo. The suspension affects the in-transit movement of live poultry, birds, and poultry products following the outbreak of highly pathogenic avian influenza (HPAI) in some European countries. According to International Trade Specialist at NPI, Arwil Viviers, the local demand for poultry products may increase due to the number of European countries which was included in the poultry import ban.
Kenya adopts Trusted Travel digital tool for COVID-19 test result verification (Africa CDC)
On 9 January 2021, the Government of the Republic of Kenya announced the launch of its Trusted Travel platform, based on the Africa CDC Trusted Travel platform, becoming the first country to adopt the platform for managing travels during the COVID-19 pandemic. The platform provides information on travel requirements at the departure and destination ports and access to a list of government approved laboratories for COVID-19 testing in African countries. “As our economies, schools and borders re-open, Africa needs a harmonized approach to reduce the risk of COVID-19 transmission. This is why we launched the COVID-19 trusted travel portal as an innovative digital tool to help Member States upload and verify test results and to harmonize entry and exit requirements to prevent cross-border transmission on the continent,” said H.E. Amira Elfadil Mohammed, Commissioner for Social Affairs, African Union Commission.
Kampala Industrial and Business Park (KIBP) to Create 200,000 Jobs (East African Business Week)
The Kampala Industrial and Business Park (KIBP) is set to become the largest hub in Uganda. The Uganda Investment Authority (UIA) is in the process of acquiring an additional 400 hectares of land to expand its Industrial and Business Park at Namanve. “By establishing these Parks, we not only support business growth but also greatly contribute to the Government of Uganda’s industrialization agenda, create more jobs, ease access to land for investment, introduce new research and technology, boost skills developments and increase Uganda’s exports base,” said Mr. Joseph Kiggundu, Acting Director-General, UIA. “In implementing the infrastructure development project, UIA is engaging with its various stakeholders around KIBP in a series of engagements to ensure that the project is delivered within agreed parameters and requirements. This was the first in a series of such engagements,” said Mr. Alex Nuwagira, Project Manager – KIBP Infrastructure Development Project.
Namibia Dry Port Container Volumes On Decline (Mmegi Online)
The Walvis Bay Dry Port said it is embarking on a number of initiatives to market the dry port on the back of dwindling traffic flow as a result of COVID-19 pandemic. BusinessMonitor has learnt that the dry port, the country’s much lauded seaport, has seen container volumes drop drastically while vehicle volumes gained momentum. From April to December last year, on average container volumes amounted to nine 24 equivalent units (TEU) monthly compared to 24 TEU’s recorded in 2019. Statistics has also revealed that between April and December last year, on average there were 215 vehicles per month compared to 70 recorded in 2019 on the corresponding period. Dry Port manager, Derrick Mokgatlhe told BusinessMonitor they have embarked on several initiatives geared at marketing the dry port. “Most of the marketing targeted entities that move volumes as well as clearing and forwarding agents across the globe,” Mokgatlhe said. “Regionally it was mostly done door to door and through holding information sessions/conferences, which has been affected due to COVID-19 restrictions. We have migrated to virtual platforms to speak to targeted groups.”
UN unveils strategy to move Gabon from brown to green economy (UNECA)
In collaboration with the United Nations Development Programme (UNDP), the UN Economic Commission for Africa (ECA) has kick-started a process to enable Gabon to reap unprecedented development gains from its rich rain forests and other natural resources, achieved through the sustainable transformation of, and a methodical audit of such endowments. Experts of ECA’s Office for Central Africa and advisors in the Gabonese Ministry of Water, Forests, the Sea and Environment, on Friday rounded-off a two day online meeting to fully explicate the stakes of a US$1million two-year project in this regard, funded by the Joint SDG Fund (JSDGF), to involved parties from several other ministries, the private sector, development organisations and conservation NGOs. It will support the Green Gabon pillar of the Strategic Plan for Gabon’s Emergence (PSGE 2009-2025). The project is titled “Gabon and the SDGs beyond Oil: Financing a rapid and sustainable transition from a Brown to a Green Economy”.
NAFDAC DG urges MSMEs to leverage on AFCFTA to expand market frontiers (Guardian Nigeria)
Prof Mojisola Adeyeye, Director-General, National Agency for Food and Drug Administration and Control (NAFDAC) says Nigeria’s participation in the African Continental Free Trade Area Agreement (AFCFTA) will usher in huge economic benefits, including a $2.5 trillion dollar Gross Domestic Product (GDP). The Director-General, who reiterated the Agency’s resolve to continue to encourage the MSMEs in the country, to take advantage of the continental free trade zone, said it would catapult their businesses into the limelight of the global market. “In the extant regional ECOWAS Trade Liberalization Scheme (ETLS) that happens to be one of the Regional Economy Community (REC) building blocks for AFCFTA, over 850 Nigerian companies, with more than 6,000 products, have been admitted into the scheme with a participation level of 50 per cent of the regional total. Currently, Nigeria ranks first with Ghana and Cote D’Ivoire ranking second and third, respectively, among ETLS beneficiaries,” she added.
Zimbabwe steps up fight against gold smuggling (CGTN Africa)
At least 60 kg of gold could be smuggled from Zimbabwe to Dubai, United Arab Emirates monthly, depriving the southern African country of crucial foreign-exchange revenues, Zimbabwe’s state media reported Monday. In an interview with Herald newspaper, Prosecutor-General Kumbirai Hodzi said an inter-agency comprising of the National Prosecuting Authority (NPA) and law enforcement agents were working to prevent the smuggling of the precious metal. “We need to train investigators properly because there is also plenty of smuggling into South Africa and other countries,” he said.
Rwanda’s Kagame backs proposed global social protection fund (TimesLIVE)
Governments, which are spending trillions of dollars to help economies survive the coronavirus crisis, can start social universal protection funds with a fraction of the cash, said Sharan Burrow, the general secretary of the International Trade Union Confederation. “It will go to the G20 this year,” she said of the proposal, which also aims to help the world’s poorest nations start to bridge an $80 billion funding gap for social protections. Proponents of the global social protection fund, which is part of the United Nation’s sustainable aims, want it to be funded by a combination of existing aid assistance from rich nations, increased taxation of firms, and contributions from existing funds. That can be complemented by debt relief or cancellation.
Nigerian economy: Recovery, growth and sustainability – Part 2 (The Guardian Nigeria)
Full implementation of the – AfCFTA Agreement may take some time as countries still have to negotiate aspects of the Agreement such as dispute settlement processes, tariffs and intellectual property rights. The investment and trade opportunities from the AfCFTA will expose Nigeria to the following opportunities: 1. It will eliminate barriers against Nigeria’s products thereby expanding market access for Nigeria’s exporters of goods and services which would serve as a catalyst for growth and boost job creation in the Nigerian economy; 2. It will provide a Dispute Settlement Mechanism for stopping the hostile and discriminatory treatment directed against Nigerian businesses in other African countries; 3. It will support the industrial policy of Nigeria through the negotiated and agreed “Exclusion and Sensitive category lists” to provide space for Nigeria’s infant industries; and 4. Provide a platform for Small and Medium Enterprises (SMEs) integration into the regional economy accelerate women’s empowerment and thereby providing a connection to regional and continental value chains.
Nigeria Outlook 2021: Seizing the New Reality (Proshare)
The economic and social disruption caused by the pandemic and its adverse effects on the global economy are still very evident. The pandemic triggered an economic fallout leaving tens of millions of people at risk of falling into extreme poverty. Amid improved outlook for oil prices, Africa's largest economy continues to grapple with the reintroduction of partial lockdowns enforced in the economic nerve centers of the country. The domestic economy has slipped back into recession behind weakened economic fundamentals, subsequently leading to elevated inflation and exchange rate shocks. While we expect Nigeria to exit recession in 2021, a return to deliberate policy settings is crucial. Overall, we project a slow and gradual growth at 2.43%.
News from Africa and Africa’s international trade relations
Study Finds Five Ways To Boost Intra-African Trade and Build Resilience (World Economic Forum)
On 1 January 2021, the African Union launched the Africa Continental Free Trade Area (AfCFTA), the world’s biggest free trade area and Africa’s most ambitious and recent effort to liberalize trade. The World Economic Forum’s Connecting Countries and Cities for Regional Value Chain Integration – Operationalizing the African Continental Free Trade Area (AfCFTA) report released today analyses the impact that COVID-19 has had on Africa’s supply chains. Developed by the WEF’s Regional Action Group for Africa in partnership with Deloitte, the report provides policy advice for accelerating the expansion of regional value chains in emerging manufacturing economies such as the automotive industry. The paper is part of a series investigating five ways to drive economic recovery and build resilience in the context of the AfCFTA Agreement
Africa’s make-or-break moment (Mail & Guardian)
On 1 January 2021 – just hours after the United Kingdom exited the European Union – trading officially began under the terms of the African Continental Free Trade Agreement. In theory, at least. There are still several bureaucratic and administrative hurdles to overcome. Legislative alignment still needs to happen, and some domestic financial institutions need to change their mandates. Carlos Lopes expects that it will be another two to three years before countries and businesses start to see any real benefits. And then the continent will only have a couple of decades in which to really take advantage of the deal. “By that time we are going to be much more dependent on what kind of agreements we do on services and intellectual property than what we do on goods.”
Local content – A driving force for African oil and gas sector sustainability (Nairametrics)
With 2020 being a year of uncertainties in the oil and gas sector and some of the decisions, activities and market trends that took place last year, David R. Edet, an oil and gas expert, reflects on what some of the activities pre-COVID-19 and now means for the African energy sector. Following the reform of the African Petroleum Producers’ Organisation (APPO) Fund, he witnessed the equally newly reformed Africa Energy Investment Corporation (AEICORP). The AEICORP is to provide “a Solid Capital Base and Liquidity Profile, a Preferred Creditor Status, Developmental Impact, Strong Financial Performance Returns to Investor,” for investors to participate in a low-risk pan-African growth. With one of the objectives of APPO seeking to ensure member countries cooperate, I believe for African countries to reap the maximum benefits from oil and gas, investment in energy technology through institutions like AfDB and AEICORP will help to achieve this aim.
54 African countries committed to joining AFCFTA says GCCI CEO (The Point)
Mr. Alieu Secka made this disclosure recently while presiding the official opening of a one-day Information sharing forum, organised by the Network of Financial and Tax Reporters (NFTR) Gambia Chapter. The ETLS-ECOWAS mechanism was supposed to ensure the free movement of originating products without the payment of customs duties and taxes of equivalent effect on importation into ECOWAS member states. He disclosed that chambers of commerce are also responsible and guarantors of another great ECOWAS Protocol: on Inter-State Transit Trade, aimed at promoting the transport by road of produce of a given Member state to another Member state, of goods in suspension of duties and taxes under the cover of a single document. Mr. Secka indicated that the widespread use of discretion on customs policies is one of the biggest issues across the board.
How cities in Africa and Europe can fuel the recovery (WEF)
This year must be the time to reset the relationship between Africa and Europe. With the blow dealt by COVID-19 to both continents and the inequalities highlighted, forging a stronger partnership between Africa and Europe has never felt more critical. We need to find common solutions to global challenges, from pandemics and climate change to migration; new forms of cross-border cooperation are needed – and fast. Yet, while African and European states struggle to find common ground, cities on both continents are already working together to build back better.
Cities matter: by 2050, two-thirds of the world’s population will live in cities. Cities offer opportunities and benefits, such as access to services and infrastructure; and jobs for individuals and their families, leading to more choice and higher wages. It is, therefore, not surprising that 20% of migrants already live in the world’s major cities. The pandemic has highlighted the essential contribution of these migrants in sustaining the cities in which they live as key workers, from healthcare and sanitation workers to supermarket cashiers, truck drivers and more.
EU and UNDP launch two-year project to address urgent adaptation financing gaps in Africa (ReliefWeb)
The United Nations Development Programme (UNDP), European Union (EU) and partners of the Africa Adaptation Initiative (AAI) joined governments, companies, scientists, NGOs and young people worldwide today at the Climate Adaptation Summit 2021 to launch a two-year €1 million grant supporting the Africa Adaptation Initiative. The EU-funded project implemented by UNDP addresses adaptation financing gaps in Africa to build more effective locally led climate actions across the continent. The project also expands the capacity to utilize climate risk information, assess and implement risk transfer mechanisms, and strengthen the knowledge and capacity to develop effective climate change adaptation actions.
Covid-19 vaccines in Africa: Mo Ibrahim and others lament sorry state of access (The Africa Report)
Sudanese billionaire businessman and philanthropist Mo Ibrahim voiced “shock and sadness” at the spectacle of the Global South being excluded from the mass Covid-19 vaccination drive taking place in richer countries. Ibrahim expressed this view while delivering the keynote address on Wednesday 20 January during Deloitte Africa’s Outlook Conference, which took place virtually. The disparities in vaccine access and distribution were a central theme during the conference. Hippolyte Fofack, the chief economist at Afreximbank, and Martyn Davies, the managing director of emerging markets and Africa at Deloitte Africa, both sounded the alarm about the economic consequences of the region’s delayed access to Covid-19 vaccines.
Namibia to launch the AU – SADC National Committee (Namibia Economist)
The Ministry of International Relations and Cooperation will host the launch of the African Union (AU) – Southern African Development Community (SADC) National Committee on Wednesday, 27 January in Windhoek. The launching ceremony will be followed by a Multi-Stakeholder Sensitization Workshop on the same day, the ministry announced Monday. The AU-SADC National Committee was established by a decision of the cabinet of Namibia on 17 November 2020 in line with a decision of the AU, and the SADC Treaty of 1992. The National Committee would ensure and enhance the implementation of AU and SADC decisions and programmes at the national level, thereby deriving maximum benefits from Namibia’s membership of the AU and SADC respectively.
ECOWAS Leaders hail reopening of Nigerian land borders (Journalducameroun.com)
The Authority of ECOWAS has congratulated the Federal Republic of Nigeria for the reopening of its land borders with its neighbours and called on Member States to continue their efforts in the effective implementation of the Protocol on Free Movement of Persons, Right of Residence and Establishment. The Authority took note of the ongoing institutional reforms in Community institutions, in particular the development of Vision 2050, formulation of a Monitoring and Evaluation Policy, and the Human Capital Development Programme, as well as the staff skills audit and the revision of the Staff Regulations, which are currently being finalized and directed the President of the Commission to continue the efforts of reduction of the operating costs of ECOWAS Institutions.
February date set for next EAC Heads of State summit (The East African)
The much anticipated East African Community Heads of State meeting has been scheduled for February 27. In a letter addressed to all permanent secretaries and ministers for EAC Affairs from Tanzania, Kenya, Uganda, Rwanda, Burundi and South Sudan, EAC Secretary General Liberat Mfumukeko advised that the Council of Ministers will hold their 40th Ordinary Meeting on February 25 in Arusha, Tanzania. The regional bloc has also prioritised recovery plans for the region’s economy that has been battered by Covid-19 measures and regulations. “The EAC partner states are looking into ways on how to deal with the effects of the virus on the region’s economy,” said Nshuti Manasseh, Rwanda’s Minister of State in charge of the EAC and the chairperson of the Council of Ministers. “There are things we need to work on together, especially the free movement of goods and people. We are going to look at the entire economy. We need to see that the movement of goods is going on uninterrupted and that the Customs Union is operating.”
Community integration tax: CEMAC estimates arrears at over XAF80 bln (Business in Cameroon)
The volume of unpaid community integration tax owed by members of the CEMAC community was estimated at XAF80 billion at end-2020. This was revealed on January 23 by Daniel Ona Ondo (photo), President of the CEMAC Commission, during his opening speech for the preparatory works at the 36th meeting of the Ministers of Economy and Finance of the member States of this subregion (announced for January 27, 2021). The meeting will focus on the examination and adoption of the community’s 2021 budget. Instituted in 2012, the community integration tax was aimed at financing the regional integration process. It is a 1% levy on the taxable value of products imported from outside the community space. Each member country was to collect the tax and pay it to the commission but public treasuries do not do it systematically. Hence, the accumulation of the tax arrears, which is supposed to be the main source of finance for the community’s budget.
Shipping container crunch shows signs of easing, index shows (Engineering News)
A global shortage of shipping containers that’s sent ocean freight rates skyrocketing shows signs of easing, according to an index that tracks the steel boxes used to transport 90% of the global trade in goods. The Container Availability Index developed by Hamburg, Germany-based Container xChange should stay around 0.35 to 0.38 through Chinese Lunar New Year in mid-February, the online platform said in a statement on Monday. A reading of 0.5 reflects a balanced market, with anything below that mark indicating demand is outstripping supply. The levels had reached lows ranging from 0.06 to 0.13 in December depending on the size of container tracked.
Engineering News Growing solar in Africa (Engineering News)
The 13th annual Africa Energy Indaba will assemble representatives from development banks, investment funds, solar developers, IPPs, EPCs and other solar stakeholders to engage in comprehensive dialogues to solve Africa’s solar energy challenges in an endeavour to see projects realised. The virtual conference is sure to enlighten attendees on what African leaders and businesses are doing to enable the supply of reliable and sustainable energy for the continent. “Addressing Africa’s large and persistent power deficit is key to achieving economic and social targets. There is significant potential for solar power, both at the utility and off-grid scale, to assist in reducing this shortfall, says the Africa Energy Indaba MD, Liz Hart.
Kenya-US trade deal up in the air as Biden lays down the marker in DC (The Standard)
As US President Joseph Biden’s new team settles in in Washington, Kenya’s bilateral trade pact with the Western superpower hangs in the balance. This with only months to the lapse of the free trade regulatory deadline. “We appreciate what has been achieved through the African Growth and Opportunity Act (Agoa), but it is time we moved to trade agreements that are more mutually beneficial,” said Uhuru. “We will not lose focus on concluding the FTA.” Despite the optimism, several trade lobbies from Kenya, Nigeria, Uganda, Rwanda and Tanzania have written to the Kenyan government, voicing their opposition to the proposed trade deal.
What Biden tenure means for Africa (Business Daily)
The Biden administration will be the one to handle the negotiations of a new trade deal with Africa, with Agoa expiring in 2025. The Trump administration had started this process by opening a free trade deal negotiation with Kenya, which it intended to use as the prototype for securing trade deals with other African countries. Now, there has been a lot of reservations about the US-Kenya free trade deal, which I believe come from either limited understanding about trade agreements or folks who just didn’t trust the Trump administration to have sincere intentions.
To start with, a free trade deal with US is a good policy Kenya should continue pushing for. It provides trade access to the high value US market and Kenya can attract investments within the various supply chains. Where the contention should be is on the finer details of the trade deal. How fair is it to Kenya, for instance? As the Joe Biden administration settles in for its four-year term at the White House, many people in Africa will be interested in understanding what the new administration means for the continent. It is given that US-Africa relations will change.
Global economy
World leaders embrace climate adaptation action (Climate Adaptation Summit 2021)
More than 30 world leaders expressed their firm support for climate adaptation action at the international online Climate Adaptation Summit (CAS) 2021, hosted by the Netherlands. During the two days of the CAS, partners worldwide will share more initiatives, programs and best practices. Their contributions will add up to the Adaptation Action Agenda. Launched at the summit, this broad agenda will provide a framework for accelerating climate adaptation action in the coming make-or-break decade – promoting, guiding, exchanging and monitoring climate resilience building together. This transformative decade will generate more action, integration, partnership, innovation, finance and equity.
Scale up funding for climate adaptation programmes, Guterres urges (UN News)
“Adaptation cannot be the neglected half of the climate equation,” Secretary-General António Guterres said at the Climate Adaptation Summit. The need is all the more pressing in developing countries, which require an estimated $70 billion to meet their adaptation plans. But the figure could reach up to $300 billion in 2030, and $500 billion in 2050, according to the latest edition of UN’s Adaptation Gap report, released earlier this month. Mr. Guterres called for 50 per cent of the total share of climate finance provided by all developed countries and multilateral development banks to be allocated to adaptation and resilience. The Secretary-General also called for making budget allocations and investment decisions, climate resilient.
Kerry: US will make up for 4 years of lost action on climate (The Associated Press)
The world must take decisive action to build resilience to the devastating effects of climate change, U.S. climate envoy John Kerry told a global virtual summit Monday, pledging that President Joe Biden’s new administration would play its role. In a video message to the Climate Adaptation Summit hosted by the Dutch government, Kerry said, “We’re proud to be back (in the Paris climate accord). We come back, I want you to know, with humility, for the absence of the last four years, and we’ll do everything in our power to make up for it.” Biden, in his first hours in office last week, signed an executive order returning the United States to the historic 2015 Paris climate accord, reversing its withdrawal by Donald Trump, who ridiculed the science of human-caused climate change. Kerry said the Biden administration is working to announce its own more ambitious target for cutting emissions soon.
Climate change is melting ice in every continent, new study shows (Engineering News)
Melting on the ice sheets has accelerated so much over the past three decades that it’s now in line with the worst-case climate warming scenarios outlined by scientists. A total of 28 trillion metric tons of ice was lost between 1994 and 2017, according to a research paper published in The Cryosphere on Monday. The research team led by the University of Leeds in the UK was the first to carry out a
New UN Global Compact strategy aims to accelerate business action to achieve Sustainable Development Goals and more ambitious climate targets (UN Global Compact)
UN Secretary-General, António Guterres, Chair of the Board of the UN Global Compact, today announced a new three-year strategic plan to increase and accelerate corporate sustainability and principled business. “The United Nations Global Compact is uniquely positioned to support companies on their journey to align their practices to a sustainable and inclusive future. The Ten Principles on human rights, labour, the environment and anti-corruption offer a blueprint for businesses seeking to be part of the collective effort to build back stronger from the COVID-19 pandemic,” he said. “Now is the time to scale up the global business community’s contributions to the 2030 Agenda and the implementation of the Paris Agreement on climate change. That is the overarching goal of the Global Compact’s strategic plan for 2021 through 2023.”
WTO members resume work on fisheries subsidies negotiations using latest revised text
On 22 January, at a meeting of the Negotiating Group on Rules, heads of WTO delegations said they were committed to keeping up the momentum in the fisheries subsidies negotiations and they welcomed the second revision of the draft consolidated document circulated on 18 December by the chair, Ambassador Santiago Wills of Colombia.
BRI contributes global post-pandemic recovery by laying foundation for cooperation and stabilizing global supply chains (Global Times)
The Belt and Road Initiative (BRI) will contribute to the global economic rebound by stabilizing supply chains among countries along the BRI route, while laying the foundation for further global cooperation, experts said ahead of opening of the World Economic Forum (WEF) in Davos, Switzerland, which will discuss a series of topics surrounding how to restore economic growth in 2021 after a coronavirus-triggered recession across the globe last year. “While promoting infrastructure connect that helped the shipping of medical supplies, daily necessities and COVID-19 vaccines, the initiative also contributed to stable industrial and value chains among countries along the BRI and stabilize global economic rebound expectation,” Wang Yiwei, director of the institute of international affairs at Renmin University of China in Beijing, told the Global Times on Sunday.
ILO: Uncertain and uneven recovery expected following unprecedented labour market crisis
New annual estimates in the seventh edition of the ILO Monitor: COVID-19 and the world of work confirm the massive impact that labour markets suffered in 2020. The latest figures show that 8.8 per cent of global working hours were lost for the whole of last year (relative to the fourth quarter of 2019), equivalent to 255 million full-time jobs. This is approximately four times greater than the number lost during the 2009 global financial crisis. These lost working hours are accounted for either by reduced working hours for those in employment or “unprecedented” levels of employment loss, hitting 114 million people.
Rich countries’ ‘me first’ vaccine hoarding is leaving behind low-income nations (The Washington Post)
The world’s wealthiest countries, including the United States; their regulatory agencies; and the major vaccine developers and manufacturers have grabbed vaccine supply in what Dr. Tedros called a “me first” approach. The doses have been locked in through bilateral deals made between countries and manufacturers, often on secretive terms, creating a hypercompetitive market in which poorer countries cannot easily compete. By necessity, they too are jumping into the fray; the African Union just completed a set of deals for 270 million doses, according to Duke University’s Global Health Innovation Center. Dr. Tedros said 44 bilateral deals were signed last year, and at least 12 so far this year. Moreover, he said, manufacturers have sought regulatory approval first in rich countries where the profits are highest. The possible consequences are “hoarding, a chaotic market, an uncoordinated response, and continued social and economic disruption,” he warned.
Out Of Africa Into The World: Palm Oil Trade Under Global Value Chain And Sustainable Initiatives (Seeking Alpha)
Palm oil has come to be the most consumed, produced and trade type of vegetable around the world. It is regarded as an inexpensive value choice for vegetable oil food use and has wide applications to various downstream industries such as cosmetics products production. Today, Southeast Asia countries, predominantly Indonesia and Malaysia, are the largest supplying region; while the consuming markets are widespread around the world by all major economies, both developing and developed countries. With trade data, we may track the global view of where and how much palm oil is flowing in and out, even down to specific locations and understand the traffic volume. Palm oil usually could be transported via container or bulk carriers – which means carriers in both markets shall have the catchment of this commodity cargo.
Brexit: No such thing as tariff-free trade deal despite Boris Johnson’s claims, peers told (The Independent)
There is no such thing as a tariff-free trade agreement and in some areas Boris Johnson’s Brexit deal grants the UK more restricted access to the EU than Canada, peers have been told. Alessandro Marongiu, international trade policy manager at the Society of Motor Manufacturers and Traders, said avoiding a no-deal exit was a huge relief for the car industry, which has avoided the immediate threat of tariffs on all exports to the EU. However, he told the House of Lords EU Goods Sub-Committee that, while the agreement provided the opportunity for tariff-free access, there was no such thing as a tariff-free deal. “Rather, tariffs apply unless you comply, and can demonstrate you comply, with rules-of-origin requirements. The threat of tariffs is there although agreement allows us to trade tariff-free and quota-free,” he said.
Biden signs ‘Buy American’ order, pledges to renew US manufacturing (Engineering News)
President Joe Biden vowed on Monday to leverage the purchasing power of the US government, the world’s biggest single buyer of goods and services, to strengthen domestic manufacturing and create markets for new technologies. The Democratic president signed an executive order aimed at closing loopholes in existing “Buy American” provisions, which apply to about a third of the $600-billion in goods and services the federal government buys each year. The order will make any waivers more transparent and create a senior White House role to oversee the process.
Under Biden, China faces renewed trade pressure (Associated Press)
The U.S.-Chinese trade war isn’t going away under President Joe Biden. Biden won’t confront Beijing right away, economists say, because he wants to focus on the coronavirus and the economy. However, Biden looks set to renew pressure over trade and technology grievances that prompted President Donald Trump to hike tariffs on Chinese imports in 2017. Negotiators might tone down Trump’s focus on narrowing China’s multibillion-dollar trade surplus with the United States and push harder to open its state-dominated economy, which matters more in the long run, economists say. But no abrupt tariff cuts or other big changes are expected.
New Developmental Financial Institutions Needed To Funnel The Development Of The Industry: EXIM Bank’s David Rasquinha (BW Businessworld)
Export led growth is vital for Indian economy. Post liberalization, India’s growth story based on domestic consumption is over. Having said that we have to do a lot catching -up with neighbors in scaling up in global trade market. For example, India’s share in the global trade export in merchandise is just about 1.7% and 3.5% in services. China contributes 17% in global trade and so we cannot avoid comparison. India contributes 2.6% and need to scale up at least 8-10% to become a 5 trillion economy by 2025. It is the principal financial institution in India for foreign and international trade.
The sweeping and devastating effects of the COVID-19 pandemic are continuing to grow, and so too are the risks of instability and tension amidst glaring inequalities in the global recovery, senior United Nations officials warned today during a Security Council videoconference on the impact of the coronavirus outbreak on international peace and security. As rich countries get vaccinated, the developing world – including countries already trapped in conflict and instability – risks being left behind, dealing a severe blow to peace and security.
The speaker for Kenya, underscoring the impact of COVID-19 on the most fragile countries, said that a lack of vaccines in wide parts of the world for extended periods of time could lead to mutations of the virus that would endanger everybody. Warning against vaccine nationalism, he urged Council members, including those with above-average resources and industrial capacities, to show global leadership by ensuring vaccine availability and affordability for the most fragile countries and regions. With the world on the brink of a rapid unravelling of global order, vaccine access for all would be “a shot in the arm” that would make billions of people feel that the United Nations and its Member States can reach out to them, regardless of wealth or race, he said.
The representative of Niger underscored the imperative of ensuring fair distribution of COVID-19 vaccines, warning countries against using these medicines as a way to advance their hegemonistic ambitions or expand their influence. Fighting the pandemic requires international and regional cooperation. Noting that the Economic Community of West African States (ECOWAS) is implementing measures to guarantee the distribution of vaccines to low-income countries through the COVAX Facility, he said the pandemic has “added a new layer” of development challenges in the Sahel, an area that is already dealing with the impact of climate change. He called for the lifting of unilateral sanctions, which undermine the delivery of humanitarian aid.
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Country focus
Mavuso stresses importance of implementing structural reform (Engineering News)
Everyone, from the South African Reserve Bank (SARB) to organised labour, can see what must be done to get the country back on a growth trajectory, but little seems to change, CEO Busi Mavuso says in the latest newsletter from Business Leadership South Africa. She welcomes SARB governor Lesetja Kganyago’s comment in a Monetary Policy Committee statement last week that a faster growth rate depends on implementing prudent macroeconomic policies and substructural reforms. “Organised business has been saying this for years. If you want investment, change the policies that are choking it off,” Mavuso asserts.
Govt has been open, transparent throughout pandemic – Ramaphosa (Engineering News)
President Cyril Ramaphosa reinforced, on Monday, the importance of keeping South Africans informed of vaccine acquisition developments, adding that government must be held to account for all decisions made around the vaccine. Ramaphosa wrote in his weekly column to the nation that South Africa will soon be receiving its first consignment of Covid-19 vaccines from the world’s largest vaccine produc
Mining underpins Nam exports (The Southern Times)
Mining remains Namibia’s cash cow and largest foreign currency earner, raking in billions despite disruptions in production inflicted by the COVID-19 pandemic. The latest official trade statistics show that the Southern African country increased its income from experts of non-ferrous metals, to Belgium, China and Germany by 25,5 percent in the last quarter. The Namibian Statistics Agency (NSA) says the Southern African Customs Union (SACU) was the largest source of imports for Namibia, accounting for 43,8 percent of all imported vehicles, beverages, essential oils and various manufactured goods
10 ships dock at Mombasa port as business picks up (Nation)
Ten ships docked at the Mombasa port on Thursday evening, giving port managers hope of a turnaround after the Covid-19 crisis impacted transshipment traffic. Before Covid-19 reached our shores last March, the same number of vessels had docked at the port in the first quarter. The Kenya Ports Authority is upbeat of a strong growth in the transshipment business this year. This is also attributed to an improved performance in the fourth quarter of 2020, with the average working time reducing by two days.
The government has embarked on dredging and expansion of the Kisumu port to ease navigation of big ships in Africa’s biggest inland dry port. Speaking during the launch of desilting exercise yesterday, ODM leader Odinga said that the port accommodates up to 10 big ships.
State mulls options to ease rising food cost, shield farmers (Business Daily)
The government is monitoring the current food price increases and will intervene if they go beyond the reach of ordinary Kenyans, Agriculture Cabinet Secretary Peter Munya has said. Mr Munya said that while they expect the price of items such as maize to go up in the coming days, there is need to balance between the interests of farmers and those of consumers. The price of basic commodities such as sugar, milk, wheat flour and bread have been on an upward trend, raising fears of high inflation.
He said the biggest challenge is to maintain favourable prices for each party and that whereas the farmers need good prices for their produce, the consumers too need prices that are pocket friendly.
Kenya joins Tanzania and Uganda in taxing digital transactions (The East African)
Kenya has joined Tanzania and Uganda in taxing digital transactions to support its depleted public coffers in an economy weighed down by slowing private sector activities, shrinking revenue collections, growing public debt and increasing expenditure pressures. The new tax has added more financial pain to households and businesses that started the year with tax relief measures rescinded by the National Treasury. The Digital Service Tax (DST) which took effect on January 1, was introduced by the Cabinet Secretary for the National Treasury Ukur Yatani through the Finance Act 2020.
Tap into AfCFTA market, horticultural exporters told (Chronicle)
LOCAL horticultural exporters have been urged to ride on the African Continental Free Trade Area (AfCFTA) tapping into low-hanging fruits like the US$39 million paprika market where South Africa is the crop’s top importer. The country’s trade development and promotion agency, ZimTrade in a statement has said because South Africa is Zimbabwe’s largest trading partner, this will make it easy for local farmers to tap into this market.
The trade development and promotion agency noted that the coming of the continental trade agreement raises an opportunity for Zimbabwean producers to target new markets such as Libya and Algeria who are second and third top importers of paprika in Africa.
Will Nigeria leverage AfCFTA to remake economy? (The Nation Newspaper)
Trading under the African Continental Free Trade Area (AfCFTA) agreement eventually commenced on January 1, 2021. The trade liberalisation deal potentially handed Nigeria the opportunity of boosting her competitiveness and remaking the economy. However, experts say that this will depend on the level of commitment of the government working with the private sector to address the supply side constraints of lack of infrastructure, including the provision of soft infrastructure. Assistant Editor CHIKODI OKEREOCHA reports.
Ghana's economy is on track - President Akufo-Addo (GhanaWeb)
President Nana Addo Dankwa Akufo-Addo says Ghana's economy is on track despite the challenges of the COVID-19 pandemic. He said though the disease threatened to derail the gains made in the first three years of his administration, the proactive decisions are taken by the government to fight the pandemic, as well as revitalise and transform the economy with a hundred billion Cedis "anchor bright prospects for the medium-term."
He gave a strong indication that the government was on course with the policies and programmes to mitigate the effect of COVID-19 on the economy and livelihoods. "Government will continue to implement prudent fiscal measures to quicken the pace of fiscal consolidation," he said, adding that the Finance Minister would update the nation next March on measures to be taken to restore the country to the path of economic recovery.
Ghana Revenue Authority targets GH¢60 billion tax revenue for 2021 (GhanaWeb)
The Ghana Revenue Authority (GRA) has set a provisional tax revenue target of GH¢60 billion for 2021, representing a 32.3 percent increase over the 2020 actual collection of GH¢45.338 billion. Rev. Owusu-Amoah said the GRA would step up efforts to tax players in the e-commerce market, which sector has been a challenge over the years, using staff with the requisite training to enable them to identify players in the sector for tax purposes.
On the African Continental Free Trade Area (AfCFTA), the Commissioner-General said AfCFTA trade through ICUMS commenced on the 18th of January 2021. Per the initiative, Customs will implement six of the agreements namely; Tariffs schedule, Rules of Origin, Customs Cooperation & Mutual Administration Assistance, Trade facilitation, Non-Tariff Barriers and Transit. He said although this might not have a direct revenue benefit, it was expected to create job opportunities through increased trade.
Nigeria wants ECOWAS restructured (Premium Times)
President Muhammadu Buhari has advocated for the restructuring of ECOWAS, saying that the organization needed to streamline its management to adjust to current realities. The Nigerian leader drew the attention of the meeting to the fact that at 45, ECOWAS was expected to be an accomplished regional organization, and for that reason, the right and bold decisions to enhance its performance must be taken.
”It is important for the region to evolve effective measures and avoid total lockdown at this critical time, that our economies are gradually recovering from the first wave of the pandemic”, he said, adding: ”The economic challenges that our region faces, because of the pandemic, will no doubt manifest this year, 2021.”
Debt service greatest risk to Nigeria- Adesina (Vanguard)
The President of African Development Bank (AfDB), Dr. Akinwunmi Adesina, has identified debt service as Nigeria’s greatest risk and urged the federal government to take steps to increase tax revenue in the face of dwindling oil income. He spoke virtually at the recently held First Annual National Tax Dialogue, according to the Director of Communications and Liaison of the Federal Inland Revenue Service (FIRS), Mr. Abdullahi Ahmad, in a statement yesterday.
Dr. Adesina was quoted as saying that due to the impact of the COVID-19 pandemic, Nigeria’s economy shrank “by 3% in 2020 on account of falling oil prices and the effects of the lockdowns on economic activities,” adding, “with shrinkage in oil revenues, debt service payments pose the greatest risk to Nigeria.”
He stressed further that for Nigeria to overcome the pandemic, “taxes must form a significant percentage of government revenue. Digitalization of tax collection and tax administration is critical to ensure greater transparency of the tax system, widening of the tax base, while mitigating compliance risks and encouraging voluntary tax compliance.”
DRC National Assembly Adopts Bill Creating Continental Free Trade Area (Taarifa Rwanda)
The Congolese National Assembly was highly packed on Friday as legislators debated thoroughly on a bill introduced to create the African Continental Free Trade Area. After hours of lengthy back and forth debating, the bill was successfully adopted with an overwhelming majority. Details indicate that out of the 340 national deputies present during the plenary session, 330 voted for this bill and only 8 voted against while 2 deputies abstained. This project will therefore be made available to the upper house of parliament for the second reading before being promulgated by the President Félix Tshisekedi.
News from Africa
AfCFTA is the most important initiative introduced by AU – Akufo-Addo (GhanaWeb)
The most important initiative introduced by the African Union (AU) is the African Continental Free Trade Area (AfCFTA), Chairman of the Economic Community of West African States (ECOWAS), President Nana Addo Dankwa Akufo-Addo, has said. In January 2021, the trading phase under the AfCFTA
Goods from non-African countries not to enjoy AfCFTA preferential treatment (GhanaWeb)
Goods exports by third-party non-African countries to African countries will not enjoy preferential treatments stipulated under the African Continental Free Trade Area (AfCFTA) trade pact. This is according to the Secretary-General of the AfCFTA Secretariat, Wamkele Mene. Addressing the issue of transshipment during the operation of AfCFTA, Mr Mene noted that although goods from non-African countries are welcomed into the continent, such goods or imports will not enjoy the incentives that bind the trade agreement between AfCFTA members.
African trade pact offers chance to kickstart UK trade ties (EURACTIV)
The new African Continental Free Trade Area is a chance to kickstart trade between the UK and Africa, delegates told a UK-Africa investment summit this week. “We need to look beyond the pandemic to the growth of the continent beyond pure development, and look to the private sector to be the driver of growth across the continent,” James Duddridge, the UK’s minister for Africa, told an online UK–Africa Investment summit on Wednesday (20 January) The summit, which drew together business leaders and development finance institutions, was the first major international investment event hosted by the UK since it left the EU’s single market on 31 December but it delivered much fewer promises of investment than last year’s inaugural Africa Investment conference. At last January’s UK-Africa investment summit, Prime Minister Boris Johnson hosted 16 African heads of state, resulting in commercial deals across the continent worth £15 billion. The UK has prioritised its main markets on the continent including Egypt, Ethiopia, Kenya and Nigeria.
Foreign Secretary sets out UK's unique offer to East African nations on visit to region (GOV.UK)
On a three-country tour of East Africa, one year on from the UK’s Africa Investment Summit, Foreign Secretary Dominic Raab met with political leaders, NGO’s and civil society in Kenya, Sudan and Ethiopia for important talks on tackling shared challenges including COVID-19, security and climate change.
Speaking at the end of his visit, Mr Raab said: This trip has been an invaluable opportunity to strengthen key partnerships in East Africa, boosting trade, security and our ability to tackle global challenges including Covid-19 and climate change. We are committed to bringing the best of British expertise to the region, defusing tensions, doing business with integrity and forging strong partnerships on health, climate and other global challenges.
Supporting UK foreign direct investment in Africa in 2021 - SET
The UK aims to be Africa’s partner of choice, by growing investment relationships to deliver more exports, jobs and economic growth that benefit both African and British businesses as well as to help African countries recover and build back from the Covid-19 pandemic. The recent second UK–Africa summit aimed to revive foreign direct investment (FDI) to African countries, in a context in which the pandemic has already led to sharp declines in overall FDI flows (-28%), mergers and acquisitions (-44%) and greenfield projects announcements (-66%) in Africa during the first half of 2020 alone. This note aims to present the trends in UK FDI in Africa, how UK investors compare with other major investors (i.e. China and the US) in the continent and insights on constraints and recommendations to boost the role of UK in bringing quality FDI to Africa.
How Covid-19 did what poverty could not: Convince Africa it needs to manufacture (How We Made It In Africa)
Spared the worst medical effects of Covid-19 with among the world’s lowest virus infection rates and fatalities, Africa nonetheless suffered due to deep economic fallout. Declining world demand for commodities amidst general global slowdown and pandemic driven disruptions to supply chains have combined with Africa’s difficulty procuring PPE and securing vaccine supplies to create novel resolve to develop comprehensive domestic production capability.
Africa quickly learned how beholden it was to far-away supply chains – particularly in the healthcare sector. For a time African leaders were nearly impotent in their collective ability to source PPE and ventilators during a sudden worldwide frenzy during which these items became commodified and supply-constrained. More recently, concerns have emerged around African access to the various Covid-19 vaccines – underscoring the general paucity of locally manufactured pharmaceutical compounds. This new conundrum is emblematic of how the pandemic has crystallised policymaker focus on the need for Africa to get serious about manufacturing its needs.
Digital Earth Africa can boost continental agriculture and strengthen fiscal revenues (News24)
Earth Observation (EO) is said to be one of the most valuable assets for the African continent as it can lead to increased fiscal revenues, the safeguarding of environmental resources, improved public health and the boosting of continent-wide agricultural productivity. This is according to the World Economic Forum’s 2021 insight report, Unlocking the Potential of Earth Observation to Address Africa’s Critical Challenges. The report was prepared in collaboration with Digital Earth Africa (DE Africa), a platform designed to catalogue large amounts of EO data used by policy makers, scientists and the private sector to address social, environmental and economic changes on the continent.
With the global Covid-19 crisis threatening the African economy and the livelihoods of its citizens, governments, industry leaders and NGO’s are called on to utilise all the available data to respond, recover and advance hindered efforts towards the achievement of global development priorities.
AfCTFA to help drive continent’s economic recovery from Covid-19 pandemic (Engineering News)
The African Continental Free Trade Area (AfCFTA) can help drive the continent’s economic recovery from the deadly coronavirus pandemic and spur transformation, says Economic Commission for Africa (ECA) regional integration and trade division director Stephen Karingi. He says that, given that Africa does not have the fiscal space for trillion-dollar stimulus packages as it attempts to ‘build forward better’ from the impact of Covid-19, the AfCFTA, driven by the private sector, is going to be key in unlocking Africa’s potential. Karingi stresses that Africa will have to look for innovative alternatives to push its recovery efforts, noting that quality infrastructure development is also crucial if the AfCFTA is to spur economic growth on the continent.
The African Union vaccine plan: A step-up for affordable inoculation? (CGTN)
African countries' determination to induce access to mass production vaccines is finally gathering steam. It received new visibility on January 20, when Reuters reported the price breakdown and procurement motivations for nearly 270 million COVID-19 vaccine shots under the African Union (AU) vaccine plan – the first public details to prevail on the matter.
Africa's stated goal to scale inoculation to nearly two-thirds of its 1.3 billion population, is best served by a price distribution mechanism that operates relative to population density. Hopes of such a mechanism were repeatedly dashed when over $60 billion in monthly debt piled on Africa last year, once stringent virus containment measures were announced by governments. Compounding the task are the present timelines for some 600 million vaccine doses set to arrive to the continent under COVAX – still weeks away from a start.
Construction of key EAC Multinational Road Project to kick off soon (EAC)
The construction of the multinational Tanzania –Uganda Road Project of Masaka – Kyotera - Mutukula/ Mutukula – Kyaka and Bugene – Kasulo – Kumunazi is on the way after the conclusion of Feasibility Study and Detailed Engineering Design funded by the African Development Bank (AfDB) under the NEPAD-IPPF facility.
Speaking during the handover ceremony of the designs report, the EAC Deputy Secretary General in charge of Planning and Infrastructure, Eng. Steven Mlote thanked AfDB for the financial support that had enabled EAC to undertake the feasibility study and design of the multi-million-dollar road project between Uganda and Tanzania. The Deputy Secretary General said that the purpose of multinational road network is to facilitate the development of the regional road transport market in the East African region.
SADC dominates cane syrup market (The Southern Times)
Africa and Middle East Sugarcane Syrup Market size was US$1,864 million in 2017, and is expected to reach YS$2,074 million by 2023, registering a CAGR of 1,8 percent from 2017 to 2023. The Southern Africa Development Community (SADC) dominated the Africa and Middle East sugarcane syrup market in 2017, accounting for more than half of the total revenue.
Global economy
DDG Wolff stresses need to make progress in WTO negotiations to enhance resilience of farm sector (WTO)
2020 was a difficult year. It added an unprecedented health crisis, with consequent supply and demand complications, to the list of challenges faced by agricultural producers, including extreme weather patterns, pests and diseases, geopolitical tensions, and an increasing global population which needs to be adequately fed. It is estimated that global GDP declined by 4.2%(1), one of the largest declines in recent decades, plunging millions of people into poverty and undermining global efforts to meet the Sustainable Development Goals by 2030.
There are a few key lessons from the pandemic that should be borne in mind for the future by policymakers: First, keep markets open; Second, invest wisely: Third, assure transparency. WTO negotiations would greatly benefit the agricultural sector and support sustainable economic recovery.
The 1,000 richest people on the planet recouped their COVID-19 losses within just nine months, but it could take more than a decade for the world’s poorest to recover from the economic impacts of the pandemic, reveals a new Oxfam report today. ‘The Inequality Virus’ is being published on the opening day of the World Economic Forum’s ‘Davos Agenda’.
The report shows that COVID-19 has the potential to increase economic inequality in almost every country at once, the first time this has happened since records began over a century ago. Rising inequality means it could take at least 14 times longer for the number of people living in poverty to return to pre-pandemic levels than it took for the fortunes of the top 1,000, mostly White male, billionaires to bounce back.
Fairer economies are the key to a rapid economic recovery from COVID-19. A temporary tax on excess profits made by the 32 global corporations that have gained the most during the pandemic could have raised $104 billion in 2020
Digitalization crucial to SIDS’ COVID-19 recovery, long-term development | UNIDO
The upscaling of digital technologies presents a host of opportunities for small island developing states (SIDS) to diversify their economies, boost manufacturing, gain greater access to global value chains, and improve disaster preparedness. However, significant obstacles remain, including inadequate digital infrastructure, insufficient training opportunities for women and young people, a growing digital divide, and a lack of data and policy knowledge. That’s according to an expert panel convened for the Global Manufacturing and Industrialisation Summit’s Digital Series on the topic: “How Information and Communication Technologies can foster inclusive and sustainable industrial development in Small Island Developing States”.
Global foreign direct investment fell by 42% in 2020, outlook remains weak (UNCTAD)
Global foreign direct investment (FDI) collapsed in 2020, falling 42% from $1.5 trillion in 2019 to an estimated $859 billion, according to an UNCTAD Investment Trends Monitor published on 24 January. Such a low level was last seen in the 1990s and is more than 30% below the investment trough that followed the 2008-2009 global financial crisis. According to the report, the decline in FDI was concentrated in developed countries, where flows plummeted by 69% to an estimated $229 billion.
Although FDI flows to developing economies decreased by 12% to an estimated $616 billion, they accounted for 72% of global FDI – the highest share on record. The fall was highly uneven across developing regions: -37% in Latin America and the Caribbean, -18% in Africa and -4% in developing countries in Asia. FDI to transition economies declined by 77% to $13 billion.
South African investors, for example, plan to acquire stakes in healthcare providers across Africa and Asia. And Indian IT companies have announced a 30% increase in acquisitions, targeting European and other markets for information technology services.
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Country focus
Bleak outlook for retail sector in 2021 as consumer spending remains subdued (Fin24)
South African retail sales fell more than expected in November, despite deeper Black Friday discounts and month-long promotions, as sales of other items like jewellery and clothes contracted. The latest data points to lingering weakness in the South African economy from the coronavirus pandemic with consumers still feeling the pressure financially, confounding retailers’ efforts to lift profits and reward shareholders through dividends. It also hampers President Cyril Ramaphosa’s efforts to boost growth when South Africa’s already overblown budget has been hamstrung by the virus.
Statement of the Monetary Policy Committee (SARB)
In the third quarter of 2020, the South African economy grew by 66.1% quarter on quarter, seasonally adjusted and annualised, compared to the Bank’s expected 50.3% growth. The growth rate for the full year is now expected to be -7.1%, compared to the contraction of 8.0% expected at the time of the November meeting. However, our projection for the 4th quarter of 2020 is expected to be lower than previously forecast. And while lockdown restrictions currently in place are considerably less restrictive than in 2020, we expect growth in the first quarter of 2021 to remain muted. Despite very robust terms of trade and stronger exports, getting back to pre-pandemic output levels will take time. Sharply lower public and private investment last year and continued weakness in 2021 will weigh on growth prospects. GDP is now expected to grow by 3.6% in 2021 and by 2.4% in 2022.2 GDP growth of 2.5% is expected in 2023. Overall, risks to the domestic growth outlook are assessed to be balanced. Global growth, vaccine distribution, a low cost of capital and high commodity prices are supportive of growth. However, new waves of the Covid-19 virus are likely to periodically weigh on economic activity both globally and locally. In addition, constraints to the domestic supply of energy, weak investment and uncertainty about vaccine rollout remain serious downside risks to domestic growth.
As South Africa veers from NDP jobs and poverty goals ‘course corrections’ proposed (Engineering News)
With the National Development Plan’s (NDP’s) goals of achieving full employment and eliminating poverty by 2030 already out of reach ahead of the onset of the deadly Covid-19 pandemic, which has since obliterated the plan’s objectives entirely, the outgoing National Planning Commission (NPC) has outlined recommendations for a “course correction” in a 170-page analysis. The document, titled a ‘Review of Economic Progress towards Vision 2030’, was first published in December and was formally canvassed with stakeholders during a well-attended webinar on Thursday.
Tax Justice SA outlines 5-point plan to stub out illicit cigarette trade (The Citizen)
Tax Justice South Africa (TJSA) has outlined a five-point plan to address the country’s illicit cigarette trade. TJSA said the plan came after its investigation which blew the lid on how the trade of illicit cigarettes had “taken over South Africa’s mainstream market”, resulting in “criminals looting billions of rands needed to save lives and rebuild our nation”. The investigation revealed that shops throughout the country were selling cigarettes that evade due taxes.
Following the end of our term on the Security Council, South Africa will continue its commitment to multilateralism and work in other multilateral forums, including the United Nations Peacebuilding Commission and other bodies of the United Nations, to pursue these goals. We remain committed to a rules-based order characterised by inclusion and equity. There is a lot of ground lost in multilateralism in the past four years and we need to rebuild trust and co-operation. The six key priorities for South Africa’s Chairship of the Union had to be set aside due to COVID-19. President Ramaphosa led the development of Africa’s response to the pandemic and ensured African collaboration in this important battle.
The COVID initiatives have led to a unified Africa. One of the outcomes of the meeting, was the creation of the COVID-19 African Vaccine Acquisition Task Team (AVATT), in support of the Africa Vaccine Strategy. This was an effort to be responsive to the suspicion that the call for vaccines to be a global public good would not be respected by the richest countries of the world. President Ramaphosa and the AU are working hard to security vaccines for Africa.
Before I conclude, permit me to speak on developments related to the African Continental Free Trade Area, one of the flagship projects of Africa’s blueprint for development, Agenda 2063: The Africa We Want. With the decision to start trading under the AfCFTA on 1 January 2021, Africa signalled her determination to increase manufacturing and industrial capacity to trade in goods and products, produced in Africa. But much work still needs to be done to achieve this vision.
Kenya: Trade, Conservation Top Agenda as President Kenyatta Hosts UK’s Dominic Raab (AllAfrica.com)
President Uhuru Kenyatta Wednesday at State House, Nairobi met visiting United Kingdom’s Secretary of State for Foreign, Commonwealth, and Development Affairs Dominic Raab who paid him a courtesy call. The President and the Secretary of State discussed a wide array of subjects key among them the strengthening Kenya-UK commercial ties following the trade deal signed late last year between the two countries. On the Kenya-UK trade agreement, President Kenyatta thanked the UK saying the pact would help create employment for Kenyan youth and improve the country’s economic performance. The President urged UK investors to take advantage of the trade deal and Kenya’s stable business environment to increase their investments in the country and boost trade between the two nations.
Kenya makes U-turn on Uganda sugar, to import 90,000 tonnes (Daily Monitor)
Kenya will this year import 90,000 tonnes of sugar from Uganda and source at least 160,000 tonnes from other countries after exhausting its Comesa import quota for 2020. This is after Uganda, through the Uganda Manufacturers Association, told Kenya that it has enough sugar both for domestic and export markets and denied importing sugar from outside the Common Market for Eastern and Southern Africa (Comesa). Kenya has been importing 350,000 tonnes from within EAC and Comesa due to a widened deficit in its local market.
Uganda’s tea attracts lowest price among EAC states (Daily Monitor)
Uganda’s tea continues to attract the lowest price compared to other East African member states that sell the commodity through the Mombasa Auction. According to data from the Mombasa Auction, Uganda’s tea sold lower than that of Kenya, Rwanda and Burundi. Tea export receipts, according to data from Bank of Uganda, have also slightly declined by 4 per cent.
Leaning into sustainable development in Tanzania (ITC News)
Women traders at the newly renovated Sofya market in Kasulu now hope for a bright future for their children. The construction of sheds and display facilities for products will enable approximately 1120 women and youth to sell their fruits and vegetables in suitable conditions.
Around 200 entrepreneurs dealing with gems and precious stones will be able to secure deals in the security of the newly renovated Mineral and Gems Exchange Centre in Kigoma Town. In partnership with the Small Industries Development Organization, efforts to establish a competitive palm oil value chain will help secure sustainable livelihood opportunities for 300 women smallholders associated with palm oil production. The digital app will help create stronger market linkages and access to market intelligence for 60 lead farmers, extension officers, agricultural advisors and government representatives.
How Rwanda could benefit from US rejoining of Paris Agreement (The New Times)
Environmental experts in Rwanda have said that developing countries including Rwanda could get more financial support to mitigate climate change and adapt to its effects following the declaration by the new US President Joe Biden to rejoin Paris Climate Agreement. In 2017, United States President Donald Trump announced that the U.S. would cease all participation in the agreement.
A letter to the United Nations signed by Mr. Biden on Wednesday formally starts the 30-day process of bringing the United States back into the accord. Environmentalists who talked to The New Times said the move by the US to rejoin the agreement has multiple benefits for the whole world especially developing nations including Rwanda that are most vulnerable to climate change effects. “First, rejoining the Paris Agreement means Biden will set up pledges to reduce such emissions. This is a benefit because least developed countries like Rwanda are more vulnerable to climate change effects yet they emit less emissions,” Vuningoma Faustin, the coordinator of Rwanda Climate Change and Development Network (RCCDN) said.
Experts list ways to tackle Nigeria’s economic woes (The Guardian Nigeria)
Financial experts and other economic stakeholders have stressed the need for the government to create policies and implementation strategies to tackle the challenges posed by the coronavirus pandemic while providing an enabling environment for investments to thrive. These, according to them, would enable Nigeria to snap out of recession and improve the standard of living for the citizens. Stakeholders, who gathered at the Franco-Nigerian Chamber of Commerce and Industry virtual event, tagged: “Key macroeconomic themes expected to shape the Nigerian 2021 economy,” explored opportunities embedded in the Finance Act, delayed passage of the Petroleum Industry Bill (PIB), the 2021 budget, and the African Continental Free Trade Area (AfCFTA). Fiscal Policy Partner and West Africa Tax Leader, PwC, Taiwo Oyedele, said despite an inflation rate of 14.89 per cent in 2020, unemployment at 27 per cent, the pandemic, economic lockdown, recession, and poverty among other challenges, Nigeria ended the year as the largest economy with $443billion, and 26th globally according to International Monetary Fund (IMF).
Nigeria emerges as Africa’s primary export hub for ivory, pangolin scales (Mongabay.com)
“Nigeria is well connected with other countries in the region, but also has good transportation networks with Asian markets as well,” said Shruti Suresh, senior wildlife campaigner with the Environmental Investigation Agency (EIA). “Combine that with a toxic combination of weak law enforcement and corruption, not only in Nigeria, but more broadly in the region, and what we’re stuck with now is that Nigeria has become the world’s largest hub for export of ivory and pangolin scales leaving African shores for Asian markets.”
“As you’re seeing more enforcement in East Africa – and there is a heavy focus over there at this point on enforcement and stepping up controls at ports along with anti-poaching work – I think the shift is natural to go to locations where you’re seeing less enforcement,” said Julia Viollaz, wildlife crime research officer at the United Nations Office on Drugs and Crime (UNODC). The EIA report points to corruption among port officials as one of the reasons why Nigeria is such an attractive destination for smugglers. In 2019, Nigeria was ranked at 146 out of 180 countries in Transparency International’s Corruption Perceptions Index. Shipping agents were said to be charging premiums per ton for illegal wildlife product exports, paying higher-ranking officials up the chain along with others involved in inspection and border control measures.
Egypt, Turkey compete for influence in Ghana (Al-Monitor)
Egypt seeks to extend its influence on the continent of Africa, notably in Ghana, as Egyptian President Abdel Fattah al-Sisi confirmed his country’s keenness to strengthen relations and cooperation with the West African country during a Jan. 5 meeting with Annan Kato, the special envoy of Ghana’s president. Egypt and Ghana enjoy strong economic and trade relations. The latest statistics by the Egyptian Commercial Representation Office in Accra showed that the volume of trade exchange between the two countries jumped to $108.3 million in 2018, from $70.1 million in 2017, which is a 54.5% increase. According to the State Information Service, Ghana is the fourth market in Africa to receive Egyptian exports after Kenya, Nigeria and Ethiopia.
News from Africa and Africa’s international trade relations
Foresight Africa 2021: Top Priorities for the Continent in 2021 (Brookings Institution)
On January 27, AGI will host a Foresight Africa launch featuring a high-level panel of leading Africa experts to offer insights on regional trends along with recommendations for national governments, regional organizations, multilateral institutions, the private sector, and civil society actors as they forge ahead in 2021. With this and every iteration of Foresight Africa, we aim to capture the top priorities for the region in the coming year, offering recommendations for African and global stakeholders for creating and supporting a strong, sustainable, and successful Africa. In doing so, we hope that Foresight Africa 2021 will promote a dialogue on the key issues influencing development policy and practice in Africa during the upcoming year. Such ideas will ultimately provide sound strategies for sustaining and expanding the benefits of economic growth to all people of Africa in the years ahead.
Private sector key to AfCFTA success and Africa’s recovery from COVID-19 (UNECA)
The African Continental Free Trade Area (AfCFTA) can help drive the continent’s economic recovery from the deadly coronavirus pandemic and spur transformation, says Economic Commission for Africa’s (ECA) Regional Integration and Trade Division Director, Stephen Karingi. In remarks during the 6th PIDA Week, the ECA Director said given that Africa does not have the fiscal space for trillion-dollar stimulus packages as it attempts to ‘build forward better’ from the impact of COVID-19, the AfCFTA, driven by the private sector, was going to be key in unlocking Africa’s potential. He stressed that Africa will have to look for innovative alternatives to push its recovery efforts. Quality infrastructure development was crucial too if the AfCFTA is to spur economic growth on the continent.
Africa trade pact gets $1bn to offset revenue losses (Moneyweb)
The African Export-Import Bank has mobilised $1 billion for an adjustment facility to offset revenue losses for countries that lower cross-border tariffs as part of an Africa-wide free-trade area, according to the zone’s most senior official. “We will be able to go to global capital markets and we will be able to go to development finance institutions to mobilise more resources, but at the moment, it is a fund of a facility of $1 billion,” Wamkele Mene, secretary-general of the African Continental Free Trade Area said in an interview Thursday.
Forget Brexit, AfCFTA is the big deal (The Southern Times)
By creating a shared market between 54 countries, the African Continental Free Trade Area (AfCFTA) will change the face of African trade, and has the potential to accelerate the economic development of the continent – here’s how. Firstly, the free trade area can expedite intra-Africa trade by building on the progress made by eight existing regional economic communities (RECs), such as the Common Market for Eastern and Southern Africa (COMESA) and the Economic Community of West African States (ECOWAS).
Secondly, boosting intra-Africa trade will both inspire and require more investment into transport, and other supportive infrastructure such as energy, water and telecommunications to allow Africa to reap greater economic benefits within the continent.
Finally, by reinforcing continental trade and capacity, the AfCFTA can also help unlock greater international opportunities. Investments in infrastructure and the creation of more supportive business environments will spur entrepreneurs to increase productivity, and step up trade within Africa, and around the world.
Platform to give SMEs a boost in intra-Africa trade (IPPMEDIA)
The Africa Continental Free Trade Area (AfCFTA) app will enable the SMEs to sell and buy goods via a cashless and contactless platform under the low duty regime that satisfies the “know-your-customer” requirements at banks and financial institutions. AfCFTA trade promotion and programmes director Francis Mangeni said SMEs admitted onto the app will be issued with a mark of identity.
The Kenya Association of Manufacturers asserts that overlapping membership to regional trade blocs, underdeveloped transport infrastructure (road, rail and air), unfamiliar or different customs and trade procedures and weak value chains also hurt AfCFTA’s dreams. Intra-Africa trade remains low at 15 per cent compared to Europe’s 68 per cent, North America’s 37 per cent and Latin America’s 20 per cent, solely blamed on “national” interests by member States keen on safeguarding their own industries, trade barriers and poor transport and telecommunication connectivity. Africa is banking on technology to turn AfCFTA aspirations into a reality.
Africa’s long wait for the Covid-19 vaccine (BBC News)
Africa will have to wait “weeks if not months” before receiving Covid-19 vaccines approved by the World Health Organization, according to various officials working towards getting doses for the continent. Close to 900 million doses have been secured so far through various initiatives, enough to inoculate about 30% of the continent’s 1.3 billion people this year. Hoarding by wealthy nations, funding shortfalls, regulations and cold chain requirements have slowed the process of rolling out the vaccines. “The world is on the brink of a catastrophic moral failure and the price will be paid with lives and livelihoods in the poorest countries,” warned WHO head Dr Tedros Ghebreyesus.
The role of technology in unlocking trade value in East Africa (IT-Oline)
The latest data – and the region’s continued focus on transforming its key industries, sectors and infrastructure through technology – is giving me hope that the economic outlook is brightening. Trade in East Africa has already picked up: according to the Brookings Institute, after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before.
The World Bank estimates that trade measures that cut red tape, simplify customs procedures and make it easier for local businesses to integrate into global supply chains could drive $292-billion of the expected $450-billion in income gains from the agreement. For countries and ports of trade that have updated their infrastructure through investments into new technology, these income gains will be easier to realise. The Mombasa Port, East Africa’s largest and oldest sea port, is still the main conduit for global sea trade in the region, but a new port in Lamu will further expand the region’s trade capability. The new port will form part of a transport corridor that will connect Kenya to South Sudan and Ethiopia and greatly assist with boosting regional trade.
African tech startups raise over $700 million in 2020 despite pandemic (Nairametrics)
Nigerian owned businesses and businesses operating in Nigeria recorded over 106 corporate deals valued at over $4.3 billion (N1.63 trillion) in 2020. This is according to data compiled by Nairalytics the research arm of Nairametrics between January and December 2020 all at different stages of completion. Nigeria’s investment climate was precarious in 2020 as the global economy spluttered due to the Covid-19 pandemic. Nigeria’s GDP contracted by 3.62% (year-on-year) in real terms in the third quarter of 2020 after enduring a 6.1% contraction in the previous quarter, a development that was also attributed to the sustained shocks emanated from the continued spread of the virus as well as weak global oil prices.
Comesa Floats €800million to Support Regional Digital Payments (KT Press)
The Common Market for Eastern and Southern Africa (COMESA) Business Council has proposed a new digital financial inclusion program that will have to be adopted by member countries to kick start affordable, accessible and timely digital payment systems in the micro, small and medium enterprises (MSMEs) in the region. The proposed “Digital Integrated Common Payment for MSMEs” was tabled at a virtual consultative meeting held in Kigali city this January 20, 2021 to kick start the region’s validation of its policy and framework that will be submitted to respective member states. The move will be piloted in nine countries including: Rwanda, Zambia, Malawi, Tanzania, Uganda, Kenya, Egypt Ethiopia and Mauritius.
ECOWAS Council of Ministers adopt M&E policy (GhanaWeb)
The ECOWAS Council of Ministers has adopted a draft Policy document for robust Monitoring and Evaluation of the impact of projects and programmes implemented in Member States. The draft policy document titled; “ECOWAS Monitoring and Evaluation Policy”, was recommended by the ECOWAS Council of Ministers for approval by the ECOWAS Heads of Government at a virtual Ministerial meeting organised in Accra on January 20th, 2021. Prof. Gyan-Baffour said the principles of the regional integration agenda of the ECOWAS, based on solidarity, complementarity and subsidiarity must be uphold. He said, the adoption of this policy document, signified the importance of Monitoring and Evaluation in the sub-region’s development trajectory. Madam Finda Koroma, Vice President of the ECOWAS Commission, said the draft Policy was a response to the clarion call from Member States for more visible and more impactful projects.
“The draft Policy will allow the ECOWAS Commission to adopt a policy framework that will guide, among other things, the effective implementation of ECOWAS Vision 2050 to effectively fulfil the aspirations of the community citizens,” she said. Additionally she explained that the ECOWAS Vision 2050 document, once in place, would firm up the aspirations and developmental priorities of West African citizens over the next 30 years while consolidating the gains made by ECOWAS in the implementation of programmes and projects identified under the ECOWAS Vision 2020 document.
Africa: How Biden Can ‘Build Back Better’ U.S. Africa Policy (AllAfrica)
The direction that President Joe Biden will give to the U.S.-Africa relationship will be highly scrutinized as he brings America’s diplomacy back to the global stage. Democracy and the economy are the two fundamental areas of cooperation that he can use to rebuild ties. Africa rises or falls with the quality of institutions such as electoral commissions charged with the responsibility to arrange free and fair elections whose legitimacy is accepted. Since the continent opened up to multi-party systems in the 90s, institutions charged with the responsibility of entrenching democracy through such elections have been at the center of chaos and civil conflicts.
Opening of India Africa Trade Council in India (Business Standard)
The India Africa Trade Council was inaugurated by the Additional Secretary (Africa) Ambassador Nagma Mallick (IFS) Ministry of External Affairs, Govt. of India and the Ambassador of Ethiopia in India Dr Tizita Mulugeta Yimam. There is a huge interest in India as Africa is an emerging region having a great scope for multilateral business opportunities. India Africa Trade council will open 13 Trade offices in Major Metro cities of India to facilitate Indian Businessmen wanting to do Trade in African countries. These offices are expected to work directly with embassies in Delhi and bring opportunities to places like Hyderabad, Chennai, Bangalore and Hyderabad.
“Africa will be at the top of our priorities as per the Prime Minister’s Vision, through the council we will continue to intensify and deepen our engagement with Africa which will be sustained and regular. Our development partnerships will be guided by Africa’s priorities. and we will build as much local capacity and create as many local opportunities as possible. We will bring the South Indian market closer and make it easier and more attractive to trade with Africa. We will support our Industries to collaborate with African companies,” said the President of the Indian Economic Trade Organization (IETO) Dr Asif Iqbal during the Inauguration.
Global economy
Here are 12 trade tasks to prioritize in 2021 (World Economic Forum)
The next director-general of the World Trade Organization faces Herculean challenges. Hercules succeeded at his tasks in the end by trying new tactics, so perhaps fresh approaches should be tried for trade too. The World Economic Forum’s trade community has thoughts on 12 almost impossible tasks to tackle in 2021 Dealing with Brexit has shown how difficult and important it is to get trade paperwork and systems understood and working properly. The same holds true worldwide, not least in poorer nations. A committed global push on trade facilitation, building on the WTO agreement in force since 2017, would spark more economic growth than eliminating all the tariffs in the world. Trade facilitation is also critical for vaccine delivery. Digital trade and e-commerce have been a lifesaver through the pandemic. Yet we have to find a way to give access to more people, confidently share data abroad and connect e-payment systems across borders. The WTO e-commerce negotiations should be finalized, while more advanced options exist in the Digital Economy Partnership Agreement, to help consumers and budding entrepreneurs navigate digital borders.
Fears around shortages of food and medical supplies gripped societies in 2020. Export restrictions were brought in and local production advocated. Rather than slide into protectionism, the case should be made for supply chain resilience through diversity of supply, coupled with improved transparency into the production and stocks of critical goods. New TradeTech can help manage supply chain visibility and risk.
A helpful response to the COVID-triggered economic downturn has been government involvement in their economies, through subsidies, procurement, publicly owned businesses and other means. But if maintained too long, some of these could have harmful cross-border spill-overs and delay recovery. The time is ripe for a global conversation about best-practices for industrial policy and sustainable recovery. Ending harmful fisheries subsidies would be one way to start.
Readying future trade agreements for future crisis and pandemic (UNCTAD)
Policy responses to the COVID-19 pandemic have heavily disrupted trade and supply chains, with many countries putting in place ad hoc trade-restrictive measures, seemingly without any concern about their effect on trading partners – at least during the early stages of the crisis. While such reactions to an unexpected global pandemic are understandable, they are certainly not optimal. They have highlighted the limitations of existing trade agreements, including over 184 regional trade agreements signed by economies in Asia and the Pacific, as well as the multilateral trade rules, in providing guidance on how to respond to emergency or crisis situations in a least trade-restrictive fashion. Against this backdrop, in an effort to accelerate recovery from this crisis and better prepare for the future, UNCTAD together with The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the World Trade Organization (WTO), other UN regional commissions, as well as CUTS and other partners, launched a global initiative on model provisions for trade in times of crisis and pandemic in regional and other trade agreements in May 2020.
How the COVID-19 crisis and the recovery are shaping the global economy (McKinsey)
Businesses have spent much of the past nine months scrambling to adapt to extraordinary circumstances. While the fight against the COVID-19 pandemic is not yet won, with a vaccine in sight, there is at least a faint light at the end of the tunnel – along with the hope that another train isn’t heading our way. 2021 will be the year of transition. Barring any unexpected catastrophes, individuals, businesses, and society can start to look forward to shaping their futures rather than just grinding through the present. The next normal is going to be different. It will not mean going back to the conditions that prevailed in 2019. Indeed, just as the terms “prewar” and “postwar” are commonly used to describe the 20th century, generations to come will likely discuss the pre-COVID-19 and post-COVID-19 eras.
Group of members issue joint pledge on humanitarian food purchases (WTO)
A group of nearly 80 WTO members issued a joint statement on 21 January pledging not to impose export restrictions on foodstuffs purchased by the UN’s World Food Programme (WFP) for humanitarian aid. “We recognize the critical humanitarian support provided by the World Food Programme, made more urgent in light of the COVID-19 pandemic and other crises,” the group said in their statement, available here. “We therefore commit to not impose export prohibitions or restrictions on foodstuffs purchased for non-commercial humanitarian purposes by the World Food Programme.”
Inside Covax: The global plan to share COVID vaccines (Eyewitness News)
The Covax programme, bolstered by the new US presidency on Thursday, aims to secure enough COVID-19 vaccines this year for the most vulnerable 20% in every country, rich or poor. Top US government scientist Anthony Fauci told the World Health Organization (WHO) that the United States intends to join Covax, the globally pooled coronavirus vaccine procurement and equitable distribution effort. The move should give the facility a much-needed powerful impetus - amid fears that rich countries are undermining the project by cutting their own direct deals with manufacturers.
Since December, dozens of the world’s wealthiest countries have begun vaccination campaigns in a bid to halt the coronavirus pandemic. As members of the Covax facility, the poorest nations are hoping to see their very first doses arrive in February. In Covax, funding is covered for the 92 lower- and lower-middle income economies involved, while for richer countries, it operates as a back-up insurance policy. Aimed at pooling the risk and rewards, Covax has struck agreements with manufacturers for two billion vaccine doses, and has secured options on a further billion.
Combined Vaccine Manufacturing capacity to hit 6.8 billion doses in 2021 (Nairametrics)
The United States President Joe Biden has issued an executive order on Thursday that makes it mandatory for international air travellers to quarantine upon arrival in the US. Similarly, the executive order also includes a directive that all interstate travellers in the US will be expected to wear a face mask. This travel order applies to airports and planes, trains, ferries, intercity buses and public transportation, but grants them the ability to issue exemptions.
Supply Chains Decarbonization Offers Game-Changing Opportunity for Companies to Fight Climate Change (WEF)
The commitment to tackling climate change is accelerating in all sectors of society, with net-zero pledges from companies, cities, states, and regions doubling in the past year. Decarbonizing supply chains is a major opportunity for companies to put these commitments into practice. New research published today by the World Economic Forum and Boston Consulting Group (BCG) shows how tackling supply chain emissions can be a game changer in the global fight against climate change. Net-Zero Challenge: The Supply Chain Opportunity analyzes the top eight global supply chains that account for more than 50% of global greenhouse gas emissions and finds that end-to-end decarbonization of these supply chains would add as little as 1% to 4% to end-consumer costs in the medium term.
China fails to meet US trade deal target in 2020 amid pandemic (American Journal of Transportation)
China failed to meet its 2020 trade deal targets with the U.S. in a year marked by pandemic-related disruptions and an increasingly tense relationship with the Trump administration. By the end of December, China had purchased about 58.1% of the $172 billion worth of goods it pledged to buy last year under the “phase one” agreement with Washington, according to Bloomberg calculations based on data from the country’s customs agency. It bought 60.4% of targeted manufactured products and 64.4% of agricultural goods, but lagged behind on energy, importing just 39% of the target.
Under the agreement signed in January last year, China promised to buy an additional $200 billion of U.S. goods and services over the 2017 level by the end of 2021. As the pact enters its second year, all eyes are on whether a new U.S. administration under President Joe Biden will try to renegotiate the deal.
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Country focus
Business, civil society weigh in on COVID-19 vaccine funding (Eyewitness News)
The South African Chamber of Commerce said the failed R200 billion and COVID-19 loan guarantee scheme should be repackaged to finance the vaccine rollout. The South African Chamber of Commerce said the failed R200 billion and COVID-19 loan guarantee scheme should be repackaged to finance the vaccine rollout.
TBS now to inspect vehicles upon arrival at Dar es Salaam Port (The Citizen)
Imported vehicles will from March 1 this year be inspected at Dar es Salaam port upon arrival in the country, the Tanzania Bureau of Standards (TBS) has said. In that regard, the $150 (Sh346,366) inspection fee that was paid in the country of export on imported vehicles will now be paid in Tanzania. TBS head of communications Roida Andusamile told The Citizen that importers and exporters of vehicles have been informed that all vehicle imports will be inspected upon arrival in the country.
Economy can not afford a second COVID-19 lockdown – !Gawaxab (Namibia Economist)
The economy can ill afford a second COVID-19 lockdown, the Bank of Namibia (BoN) governor, Johannes !Gawaxab echoed on Wednesday. !Gawaxab during a donation of COVID-19 equipment worth N$3 million to the Ministry of Health and Social Services reiterated that any lockdown even one as contained as a partial lockdown, could have a severe, long-lasting impacts on the economy. “The damage caused could take years to undo. For this reason, it is sensible to prevent a further deterioration in the COVID-19 matrix in Namibia by focusing on prevention and containment,” he said.
Rwanda & DRC Prepare To Enforce Continental Free Trade Area (Taarifa Rwanda)
Rwanda and the Democratic Republic of Congo are preparing to begin implementing all protocols that will see the two countries working through the African Continental Free Trade Area (AfCFTA). Soraya Hakuziyaremye, Rwandan Minister of Trade and Industry flew to DRC’s Capital Kinshasa where she met with President Félix Tshisekedi for discussions relating to entry into the AfCFTA and the joint economic development projects of the two countries and commercial relations which still need to develop further.
Kenya to continue pursuing trade deal with US (Nation)
Kenya will keep pursuing free trade deal with the United States during Joe Biden’s era, President Uhuru Kenyatta said Tuesday. Mr Kenyatta said the Kenya-US Free Trade Agreement (FTA) will build on the successes achieved under the African Growth and Opportunity Act (Agoa) by ushering in better and bigger trade opportunities and prospects for Kenya. “We appreciate what has been achieved through Agoa, but it is time we moved to much closer trade arrangements that are mutually beneficial. We will not lose focus on concluding the FTA,” the President said. On Monday, Trade Cabinet Secretary Betty announced that the third round of negotiations for the FTA are set to resume in the coming days.
Related:
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What US leadership change means for Kenya on trade, ties (The Standard)
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Kenya taps Sh1.3bn US fund for workers’ rights ahead of new trade deal (Business Daily)
Mozambican Chamber motivates for local participation (Engineering News)
With the current liquefied natural gas (LNG) projects under way in Mozambique, Mozambican Oil and Gas Chamber executive chairperson Florival Mucave notes that government needs to ensure that there are rules and regulations in place to encourage local participation. Mozambique has a unique opportunity to drive its economic growth through the development of its natural resources. However, this will be successful only if it is beneficial to the local economy, in terms of facilitating goods and services, and job creation, he says.
Angola, India review cooperation in industry sector and trade (ANGOP)
Angolan minister of Commerce and Industry Victor Fernandes and the Indian ambassador to Angola, Pratibha Parkar, discussed on Tuesday in Luanda the partnership agreements between the two countries in the trade and industrial areas. The two officials reviewed the protocols signed in the fields of diamonds, oil, agriculture, information technology, health, food industry and food security. The minister explained that Angola has improved its business environment, especially in the sectors of manufacturing and food, in health and technology. In turn, India’s ambassador, Pratibha Parkar, voiced satisfaction at  relationship between the two countries in the sectors of industry and trade.
AfCFTA: NCS Lists Conditions for Implementation (PR Nigeria)
Sequel to the ratification of AfCFTA by member nations, the Nigeria Customs Service (NCS) has found it pertinent to inform the public about steps which must be taken to enable its smooth and full implementation. Instead of proceeding in a chaotic manner, the NCS as policy implementor understands the importance of spelling out the roles and responsibilities of all parties in this agreement and the conditions attendant on its implementation.
We wish to re-confirm our willingness and readiness to play our role as trade facilitators in this regard. However, we also wish to remind the public that our functions are highly automated and primarily systems driven. Hence the need to methodically harvest and integrate all data associated with AfCFTA into our system for easy deployment, access and use by the trading public.
AfCFTA: Consider stimulus package for local businesses – GNCCI to govt (Ghanaweb)
The Ghana National Chamber of Commerce and Industry (GNCCI), has tasked government to consider the provision of a stimulus package for local businesses involved in the AfCFTA. The Chamber’s president, Clement Osei-Amoako, made the call in an interview with Accra-based Citi FM. He stressed that the takeoff of the AfCFTA meant that local business automatically had continent-wide competition. Mr. Osei-Amoako said that the proposed package will also boost the business environment and in effect engender critical private sector competitiveness.
Congestion stalls operations at Nigeria’s busiest ports (Africanews)
Hundreds of heavy duty trucks have remained stuck on roads in Nigeria’s economic capital Lagos, as they wait to get access into the Tin Can Island port. The congestion, which is almost crippling operations at the Lagos TinCan port, has compelled some shipping lines to divert Nigeria-bound cargoes to neighboring ports in Cotonou and Cote d’Ivoire according to Nigerian Ports Consultative Council. A long-running crisis at the Apapa and Tin Can Island ports Lagos, the main commercial entry points into Africa’s largest economy Nigeria, has been worsened by the pandemic-induced economic slump.
Nigeria not ready for AfCFTA, says APFFLON boss (Vanguard)
Divergent reactions have continued to trail Nigeria’s move to boost its international trade with the flag-off of African Continental Free Trade Area (AfCFTA). The Africa Association of Professional Freight Forwarders and Logistics in Nigeria (APFFLON) thinks that the development, though an historic milestone, is coming at a time the country is in a state of uncertain and unfavourable industrialisation and manufacturing activities. The President of APFFLON, Mr. Frank Ogunojemite insisted that Nigeria was not ready for AfCFTA, noting that with the prevailing micro and macroeconomic variables in the polity, AfCFTA was doomed to fail and the nation set to be the biggest loser.
Nigeria imports N2.59tn goods from Asia in three months (The Punch)
Goods traded by Nigeria with other West African countries have been ranked as the least among the country’s global trade partners. Figures obtained from the National Bureau of Statistics’ foreign trade statistics for the third quarter of 2020 revealed that trade with Asian countries topped the list of Nigerian trade partners. During the quarter, Nigeria imported goods mainly from Asia, valued at N2.59tn, while goods valued at only N12.5bn originated from ECOWAS.
Ethiopia’s garment manufacturing hopes unravel with Tigray war (Quartz Africa)
For the past two months, violent conflict in Ethiopia’s northern Tigray region fueled by ethnic power politics has threatened the country’s stability. The scale of the conflict could scare off foreign investment in the country’s garment industry. This sector is hugely important to Ethiopia, which aimed to propel its agricultural economy toward a more prosperous future built on providing clothing to consumers in the West. While the Ethiopian textile and garment industry is still small – its export share is not more than 10% of total exports, and its products only represent 0.6% of total GDP – the sector was expected to grow by around 40% a year in the next few years.
Tunisia offers opportunities, frustrations (Energy Voice)
Tunisia holds opportunities for investors, but government processes and local unrest have slowed developments. “Oil and gas production is decreasing and fields are getting mature, while energy demand is increasing,” Sackmaier said. OMV produces from eight concessions in Tunisia, of which it operates seven. The company’s production is 10,400 barrels of oil equivalent per day. “Political and social instability” hampers new investments, with “unrealistic expectations” among the citizens of Tunisia. This leads to strikes and blockades, he said.
News from Africa
AfCFTA to aid Africa’s recovery from Covid, but full-scale implementation to be challenging (Engineering News)
AfDB president Dr Akinwumi Adesina, speaking at the Virtual 2020 International Forum on African Leadership last month, noted that Africa must further accelerate the development of digital infrastructure. He commented: “We must rethink infrastructure and for a ‘Digital Africa’. As economies recover, the world will become more digital. People, businesses, financial institutions and governments have to rapidly adjust to this new normal.
“The role of technology, especially digital technology, artificial intelligence, robotics and the Internet of Things, will further revolutionise financial inclusion, delivering services, climate information, insurance, and health delivery, especially new models of telemedicine for better access and affordable care.”
Trade Law Centre for Southern Africa executive director Trudi Hartzenberg echoed this sentiment, adding that the Programme for Infrastructure Development in Africa has taken on new significance in the current context, as countries need to factor fibre, satellite and other digital infrastructure into their development plans to bridge the digital divide. Hartzenberg noted that the push towards digitalisation, in light of the pandemic, in terms of adapting the way in which we work, produce and consume must extend to trade facilitation, citing how e-certificates and e-payments, which were popularised during the pandemic through necessity, must inform the way African businesses operate in the future.
Infrastructure key to realisation of the African Continental Free Trade Area (UNECA)
The 6th PIDA Week opened virtually on Tuesday, 19 January 2021, with key speakers stressing the need for Africa to continue to invest in quality and sustainable infrastructure if the African Continental Free Trade Area (AfCFTA) is to deliver for the continent. The AfCFTA’s main objective to boost intra-African trade can only be achieved with adequate quality infrastructure. For her part, Dr. Pandor said; “I accept we need to have global partners, but they must be strategic additions and not enforced collaborations.” She added that good governance was crucial if Africa is to attract private investment in key infrastructure projects.
AU member states adopt digital Covid certificates (The East African)
African Union member states will from this month start using digital Covid-19 certificates as one way of eliminating travel restrictions that were occasioned by outbreak of coronavirus. In the new digital application from Econet Wireless and PanaBios which was certified by AU and the Africa Centres for Disease Control and Prevention (Africa CDC) will assist travellers to comply with Covid-19 travel protocols and share vital information to end double testing across the continent. The application will also share information about the latest travel restrictions and entry requirements applicable to the entire stretch of passengers’ journey across Africa.
EAC seeks support to reap more AfCFTA benefits (The East African)
East African Community member countries have engaged the services of the Economic Commission for Africa to come up with a policy that will ensure that the region does not lose out in the African continent free trade area (AfCFTA) which came into force this January 1. The EastAfrican has learnt that the EAC Secretariat with the support of the Commission is designing a regional strategy for the implementation of the pact. “The strategy will complement the broader trade landscape of the EAC and identify opportunities, gaps and steps required to take full advantage of continental and global markets resulting from the AfCFTA induced opportunities,” Kenya’s Principal Secretary in the State Department of EAC Affairs Dr Kevit Desai told the East African last week
EAC economies excepted to rebound in 2021 says EABC (Kenya Broadcasting Company)
The East African Community (EAC) economy will rebound in 2021, if EAC Partner States Governments strengthen macro-economic policy coordination and adopt a regional coordinated approach in handling the COVID-19 pandemic. COVID-19 disruptions in 2020 provided a learning curve, on the need to have sustainable EAC regional value chains integration for the development of finished products with a view of reducing industrial and trade risks arising out of external shocks.
Cost of Covid-19 test a hindrance to free movement in EAC (The East African)
The cost of Covid-19 testing is now becoming a hindrance to free movement of people and goods within the East African Community. EAC and the private sector are concerned that the Covid-19 related Non-Tariff Barriers (NTBs) continue to hinder cross-border trade due to different measures on Covid-19 in the region. Tests are priced differently in each EAC partner state, while containment measures vary. It costs an average of $100 to carry out Covid-19 test for visitors to the six EAC states.
AU working to secure vaccines for Africa (SAnews)
South Africa’s six key priorities of the African Union (AU) have had to take a backseat due to COVID-19, with President Cyril Ramaphosa leading the continent’s response to the pandemic and ensuring collaboration in this important battle. While 2020 has been an unprecedented year, the Department of International Relations and Cooperation Minister, Dr Naledi Pandor, believes that the COVID-19 initiatives have led to a unified Africa. Pandor said one of the outcomes of this collaboration was the inception of the COVID-19 African Vaccine Acquisition Task Team (AVATT), established by President Ramaphosa in support of the Africa Vaccine Strategy.
COVID-19 shots to cost between Sh300 and Sh1100 under African Union vaccine plan (The Standard)
African countries will pay between $3 and $10 per vaccine dose to access 270 million COVID-19 shots secured this month by the AU, according to a draft briefing on the plan prepared by the African Export-Import Bank (Afreximbank) and provided to Reuters. South African President Cyril Ramaphosa, who serves as AU chair, said last week arrangements had been made with the bank to support member states who want access to vaccines. Countries can pay back the loans in instalments over five to seven years, the document showed.
“The digital payment system platform dividend for COMESA and Africa at large, can be enormous with potential gains in growth of regional trade (sourcing and supply) which is currently below 20%. But turning this vast potential into reality will require the collective efforts of our governments, the private sector, and development partners,” said Mr. Marday Venkatasamy, Chairman of the COMESA Business Council (CBC), in his opening statement at the COMESA Digital Financial Inclusion High Level Public-Private Dialogue.
Candid Dialogue on Africa’s Investment Landscape (Proshare Nigeria)
A high-level discussion on Africa’s outlook hosted by the Africa Investment Roundtable (AiR) on Monday saw speakers covering lessons from 2020, the outlook for 2021 and ways to turn the current crisis into an opportunity. Indeed, last year was unprecedented in the worst sense and unfortunately the crisis appears still to be unfolding. One key message that was reiterated by the three speakers on the panel was that Africa must not waste this crisis.
The 41st Ordinary Session of the Permanent Representatives’ Committee (PRC) kicked off on 20 January 2021, in the context of the prevailing COVID-19 Pandemic, ahead of the 34th Assembly of Heads of State and Government of the African Union (AU) scheduled to take place on 6 and 7 February 2021. “Notwithstanding Covid-19, Africa showed incredible determination by conducting and concluding virtual negotiations on complex and difficult matters of the AfCFTA, leading to the successful Johannesburg Extraordinary Summit on 6 December 2020. It is absolutely important to work to implement all the decisions taken at the Summit,” H.E. Edward Xolisa Makaya, Ambassador of the Republic of South Africa and Chairperson of the PRC, said.
New report offers insights into e-marketplaces in Africa (ITC News)
Recent evidence signals an upsurge in Africa’s use of digital trade, as a reaction to COVID restrictions. Yet consumer traffic on online marketplaces in Africa still has vast untapped potential. One way to tap that potential is to provide reliable information about e-marketplaces for sellers, buyers, companies and policymakers across the continent. A new International Trade Centre (ITC) report aims to help plug this information gap. Business and policy insights: Mapping e-Marketplaces in Africa provides insights, drawn from a new International Trade Centre database about online marketplaces across Africa, called the Africa Marketplace Explorer.
Why mines are increasingly adopting renewable energy (Power Engineering International)
A recent discussion on the Africa Mining Forum Digital Event on investment in power projects by the mining industry, explored why mines were increasingly using renewable energy, following a global trend wherein 76% in the global economy, renewable energy is now the cheapest to generate bulk electricity. The discussion titled ”Reshaping energy capital flows to drive positive investment into mining” explored the appetite of mining companies for alternative sources of energy and looked at the different models that were available, especially at the exploration stage.
Africa’s international trade relations
UK-Africa Investment Summit 2021
One year on from the UK-Africa Investment Summit hosted in January 2020, the UK Department for International Trade organised the Africa Investment Conference on 20 January 2021, bringing together UK and African businesses to discuss emerging and relevant themes around doing business in Africa, and to connect UK companies to opportunities of today and tomorrow across the continent. Despite the current global economic context, the UK’s ambition to be Africa’s investment partner of choice has never been stronger, and strengthening investment relationships will be central in recovering from the disruption caused by the international COVID-19 pandemic.
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UK investment important in bridging Africa’s housing gap
Britain helps Kenya prepare for roll-out of COVID-19 vaccine
The Next 100 Days: Positioning Africa at the Forefront of the Biden Administration (Africa Oil & Power)
On Wednesday, U.S. President Joe Biden was sworn into office, ushering in a new administration, new foreign policy and a new approach to U.S. trade and investment in Africa. For its part, the Trump administration had not been short on growing U.S. private sector involvement in Africa, specifically under its trademark initiative, Prosper Africa. With a rapidly growing, increasingly urbanized population – and associated needs for energy and infrastructure development – the African continent should be at the forefront of a U.S. investment agenda, in terms of developing a mutually beneficial, long-term relationship characterized by sustainable energy development and cooperation.
Global economy
Updated estimates of the impact of COVID-19 on global poverty: Looking back at 2020 and the outlook for 2021 (World Bank Blog)
As the new year brings some hope for the fight against COVID-19, we are looking back and taking stock of the effect of the pandemic on poverty in 2020. In October 2020, using the June vintage of growth forecasts from the Global Economic Prospects, we estimated that between 88 and 115 million people around the globe would be pushed into extreme poverty in 2020. Using the January 2021 forecasts from GEP, we now expect the COVID-19-induced new poor in 2020 to rise to between 119 and 124 million.
Digitalizing the Maritime Sector Set To Boost the Competitiveness and Resilience of Global Trade (World Bank)
A new report, Accelerating Digitalization: Critical Actions to Strengthen the Resilience of the Maritime Supply Chain, by the World Bank and the International Association of Ports and Harbors (IAPH) shows that better digital collaboration between private and public entities across the maritime supply chain will result in significant efficiency gains, safer and more resilient supply chains, and lower emissions. Maritime transport carries over 90% of global merchandise trade, totaling some 11 billion tons of cargo per year. Digitalizing the sector would bring wide-ranging economic benefits and contribute to a stronger, more sustainable recovery.
No consensus at WTO yet on IP waiver on Covid-19 vaccines & drugs (The Times of India)
WTO members took up the “game changing” waiver proposal submitted jointly by India and South Africa at the TRIPS Council, even as opposition from rich countries continued, leading to no consensus. The members on January 19 agreed on continued consideration of the proposal but made clear they remain far from reaching a consensus, sources told TOI. While there was no indication of changes in their well-known positions at the informal meeting of the TRIPS Council held Tuesday, some 30 members engaged in advancing the discussion and extensively exchanged views on this issue after the series of meetings held since the proposal was initially submitted on October 2 last year.
New IFC Initiative Helps Banks in Mexico, Philippines, South Africa, Egypt Scale Climate Finance (IFC)
Through a new initiative launched today, IFC, a member of the World Bank Group, will work with financial institutions in four countries to mobilize private sector financing for climate mitigation and adaptation projects and help align financial-sector strategies with the targets of the Paris Climate Agreement. The program, “Scaling Up Climate Finance through the Financial Sector,” is designed to increase climate lending by participating banks in Egypt, Mexico, the Philippines, and South Africa to 30 percent of their portfolios by 2030, while reducing exposure to coal.
Brexit LIVE: Watch out Brussels! UK eyes up historic mega deal with £2TRILLION market (Daily Express)
Now free from the EU’s control, Tory peer Lord Dolar Popat has identified Africa as the next key area for the UK to build trade ties and kickstart Mr Johnson’s post-Brexit plans. Due to the fast-growing population of the continent, the collective GDP of the continent is worth nearly £5trillion. Next year the Africa Free Trade Agreement will come into force and will provide a market worth £2trillion, offering a vital opportunity for the UK to build its trade portfolio, the Tory peer argued. Amid these incredible opportunities for the Prime Minister’s post-Brexit plans, Lord Popat insisted: “It is not too late to harness Africa’s abundant opportunities.” Writing for Politics Home, he added: “I urge policymakers to consider a free trade agreement with the continent.
Anger builds among manufacturers as EU customers cancel orders due to Brexit red tape (The Independent)
EU customers are cancelling orders from the UK because of a mass of red tape, UK manufacturers have said, as anger builds over a lack of government Brexit support and antiquated customs systems. While problems have been most acute for perishable goods like meat and seafood, manufacturers are now also reporting cancelled orders and some haulage firms are refusing to move goods. Close to 30 per cent of small British firms have stopped shipping goods to the EU amid widespread confusion about customs forms and extra costs, according to accountants UHY Hacker Young.
Related News
tralac Daily News
Country focus
Supply Chains Latest: Covid Curbs Shut Busy African Border (Bloomberg)
South Africa’s decision to shut its land borders to most travel to curb the spread of the Covid-19 pandemic has blocked hundreds of thousands of foreigners trying to return to work after the December holidays. Beitbridge, the only legal road crossing between Zimbabwe and South Africa – and southern Africa’s busiest inland border post – was worst affected. Even before the Jan. 11 announcement by President Cyril Ramaphosa that 20 of South Africa’s land border posts would be closed to almost all travelers except those hauling freight, people waited for as long as four days in lines of traffic that stretched miles from the gate.
“There is significant movement of persons,” said Trudi Hartzenberg, executive director of the Tralac Trade Law Center in Stellenbosch, South Africa. Labor market developments across the region show “we really are so closely connected to Zimbabwe specifically, but then to Zambia, Malawi, Tanzania and so on, so it really is a regional effect.”
DHL Global Forwarding invests 126.5 million rand in new facility in South Africa (EIN News)
Clement Blanc, Managing Director, DHL Global Forwarding, South Africa said, “While it’s too early to fully grasp the economic impact of the current pandemic, our confidence in investing ahead of the curve is abetted by our diverse service portfolio and long-established foothold in Africa. As the world’s largest free trade area moves toward economic integration, our five-year strategy to sharpen our core business offerings and accelerate digitalization will further our growth in the region and specifically, in South Africa.”
Wheat, sugar and salt lead import for January (Vanguard)
There are indications that the confectionary industry will experience a boom in the first quarter of 2021 as wheat, the major condiment for bread and other confectionaries, is leading the import chart with a total of 178,358 metric tonnes. Wheat is followed by sugar, another major condiment used by confectioners, with 49,000 mts, while salt took a third position on the chart. According to the shipping position, a statistical document of the Nigerian Ports Authority, NPA, for the month of January 2021, most of the wheat imports are due in the country before the end of the month while some of them have already arrived and are awaiting clearing and evacuation.
UNCTAD lists Nigeria among ship-owning countries (Vanguard)
The United Nations Conferences on Trade and Development (UNCTAD) has recognized Nigeria in the class of ship-owning countries. Disclosing the development in an interview, Ms Olufunmilayo Folorunso, Secretary General of African Shipowners Association, said that UNCTAD, which is dedicated to trade and development, captured the information in its annual report for 2020, confirming Nigeria as the only African country in the class, besides Liberia, which is not flagged Africa. Her words: “UNCTAD does global pictures and they produce an annual report. In the annual report for 2020, excerpts of which we got in November 2020, and went through it thoroughly, the highlight for me was the fact that Nigeria is part of the Top 35 ship-owing countries.”
Nigeria requests 10 million COVID-19 vaccine doses from African Union (Reuters)
Nigeria has written to the African Union to request 10 million COVID-19 vaccine doses to supplement the COVAX programme and has allocated $26 million for licensed vaccine production, the health minister said on Monday. Nigeria, like other countries across Africa, is grappling with a second wave of the novel coronavirus. The African Union has secured a provisional 270 million COVID-19 vaccine doses from manufacturers for member states, its chair South African President Cyril Ramaphosa said last week.
Nigeria’s China-built railway has to avoid debt pitfalls (Quartz Africa)
The 156-kilometer Lagos-Ibadan railway costs $1.5 billion and runs from Lagos to Ibadan, the second largest city in the country’s southwest, and, subsequently, with additional funding, on to the northern cities of Nigeria. It is funded by a $1.3 billion loan from the Export-Import Bank of China and about $182 million from the Nigerian government. The Lagos-Ibadan line is a critical section of the broader $11.1 billion 2,733 kilometer Lagos-Kano standard-gauge north-south railway being constructed by Chinese engineering giant the China Civil Engineering Construction Corporation (CCECC). Officials of the Nigerian Railway Corporation (NRC) consider port hauling service, not intercity travelers, to be sufficient for the service to be profitable and to generate enough funds to pay off the loan from China.
Nigeria issues fresh conditions toward smooth implementation of AfCFTA (Nigerian Tribune)
The Nigeria Customs Service (NCS), on Tuesday, issued conditions for the smooth implementation of the African Continental Free Trade Area (AfCFTA) agreement. In a statement signed by the Service Spokesman, DC Joseph Attah, the Service reminded all parties of their roles and responsibilities towards the agreement. According to the statement, “Sequel to the ratification of AfCFTA by member nations, the Nigeria Customs Service has found it pertinent to inform the public about steps which must be taken to enable its smooth and full implementation.”
Border closure failed to achieve objectives – Prof Asiwaju (2) (Vanguard)
Government has, in the course of the border closure lost so much in image, especially in the weighing scale of human rights abuses and havoc wreaked on such regular socio-economic operations as peasant agriculture, petty trading, carpentry, iron welding, barbing and hairdressing salons, tailoring and fashion shops, hospitalities and road transportation, to mention just the leading examples of small-scale economic operations that suffered untold losses as a result of the ill-advised 15-month unilateral border closure.
Finance Ministry warned govt of huge losses due to Internet shutdown (Daily Monitor)
Government, on January 13, shutdown the Internet on the eve of the presidential and parliamentary election, citing fears that unnamed individuals had planned to mobilise protests in the event that the elections are not declared in their favour. In a January 18 letter, Finance Ministry permanent secretary and secretary to Treasury Patrick Ochailap, warned Prime Minister Ruhakana Rugunda of massive cross-cutting losses, which included defaulting on debt repayments and other international obligations, drawing attention to “the crippling effects of Internet lockdown on Treasury operations, financial sector and business sector”.
Kenya now eyes Sh69bn debt service suspension (Business Daily)
Kenya has widened its debt service relief request to all its bilateral lenders, hoping to save Sh69 billion, the National Treasury has said. The move comes days after a decision by the Paris Club of international decision to give Kenya a Sh32.9 billion loan repayment break to help ease the financial distresses linked to Covid-19. The Treasury said Nairobi had expanded the bid for reprieve from servicing its looming debt payment obligations under the landmark debt relief initiative – known as the Debt Service Suspension Initiative (DSSI) – that came from the G20 grouping of the world’s largest economies – spurred on by the International Monetary Fund ( IMF) and World Bank – last April. The G20 nations agreed to freeze bilateral government loan repayments for 76 low-income countries until the end of the year and called on private sector creditors to participate on a voluntary basis.
News from Africa
The response to the COVID-19 crisis builds momentum for Africa’s digital transformation to overcome the pandemic and create more productive jobs, according to the 2021 edition of Africa’s Development Dynamics (AfDD) launched today. The COVID‑19 pandemic is the hardest shock to African economies in 25 years. Gross domestic product (GDP) has decreased in 41 countries in 2020, compared to 11 countries in 2009 when the Global Financial Crisis hit. Yet Africa’s governments are facing today’s crisis with lower financial resources than they did then: over 2010‑18, domestic revenues per capita decreased by 18%, and external financial flows per capita by 5%; total national savings could drop by 18%, remittances by 25% and foreign direct investment by 40%. In that context, Africa’s booming digital sector offers an opportunity for governments to help kick-start a new growth cycle in the aftermath of the COVID-19 crisis, according to the report. By encouraging the spreading of digital technologies, data and interconnection to all sectors, starting with healthcare, African countries can accelerate economic transformation and the creation of productive jobs, in line with the Aspirations of the African Union Agenda 2063.
6th PIDA Week positions infrastructure at the heart of Africa’s economic recovery (African newspage)
The 6th Programme for Infrastructure Development in Africa (PIDA) Week, a weeklong event aimed at engaging and exchanging information on progress in the implementation of the PIDA programme, has commenced virtually on Monday.
The event which is being hosted by the African Union Development Agency (AUDA-NEPAD), the AU’s development agency, is holding January 18 -21 under the theme: “New decade, new realities, new priorities – positioning PIDA and infrastructure development in Africa’s continued growth and economic recovery.” PIDA is the AU’s strategic framework for regional and continental infrastructure development, guiding its infrastructure development agenda, policies, and investment priorities; it provides a framework for engagement with Africa’s development partners on the provision of regional and continental infrastructure as well as facilitating the physical, economic and social integration of the continent in support of the African Continental Free Trade Area (AfCFTA).
The African Statistical Yearbook 2020 (AfDB)
The Yearbook series is a result of joint efforts by major African regional organizations to set up a joint data collection mechanism of socioeconomic data on African countries as well as the development of a common harmonized database. The Joint African Statistical Yearbook is meant to break with the practices of the past where each regional/subregional organization was publishing statistical data on African countries of the continent in an inefficient way, leading to duplication of efforts, inefficient use of scarce resources, increased burden on countries and sending different signals to users involved in tracking development efforts on the continent.
EXPLAINER | What to know about the African free trade area – and when you can start exporting (Fin24)
The free trade agreement came into effect on 1 January. But that was more of a symbolic launch. A number of processes must be concluded before meaningful trade can take place. [Subscription service]
Market integration is a process, says AfCFTA secretariat amid challenges (The Guardian Nigeria)
The Secretary-General of the African Continental Free Trade Area Secretariat, Wamkele Mene, has dismissed talks that the AfCFTA arrangement was being rushed, saying there is no trade agreement where all members were ready at the same time. Indeed, there have been concerns about countries’ readiness for the trade deal; many are yet to address issues bordering strategies and customs procedures. According to the Organised Private Sector, the AfCFTA serves as an avenue for local industries in Nigeria to penetrate new markets and establish strong cross-border supply chains with other African countries, even though it also poses new competitiveness risk for many firms especially for those in the real sector.
Understanding AfCFTA and Nigeria-Niger rail project (Pulse Nigeria)
AfCFTA’s potential, the United Nations Economic Commission for Africa estimates that the agreement will boost intra-African trade by 52 per cent by 2022. With this, economists posit that AfCFTA will consolidate Africa into one trade area to provide great opportunities for entrepreneurs, businesses and consumers across the continent to support sustainable development in the world’s least developed region. To achieve part of the aims of the initiative, the federal government embarks on a rail line project between Nigeria and Republic of Niger as a way of improving trade relations and boosting economic activities between the two countries.
Increased trade – exactly what Africa needs post-Covid-19 (News24)
The AfCFTA is not as yet fully operational: January 1 this year marked a landmark date in the process of full adoption and implementation, but we are not yet over the finish line. On the AfCFTA – and increased African trade – Emeritus Professor Jaime de Melo and economist Anna Twum have identified “low-cost inputs trade, simple rules-of-origin, and digital connectivity” as key to “regional trade integration and global value chain participation.” Regarding barriers that could inhibit supply chain participation – and by extension, trade – they point to: 1. High tariffs on intermediate inputs; 2. Complicated rules-of-origin; and 3. Expensive and unreliable digital connectivity.
AfCFTA: Ecobank Pledges to Facilitate Payments for Customers (THISDAY)
The Group Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Mr. Ade Ayeyemi, has said that the pan-African banking group is positioned to facilitate payments across Africa as the implementation of the African Continental Free Trade Area Agreement (AfCFTA) commences. Ayeyemi, who was quoted in a statement to have made this assertion during an interview recently, pointed out that Ecobank has been able to effect international payment across the 33 countries where it operates on the continent through its Rapid Transfer platform.
Access Bank Targets Eight More African Countries in Expansion Drive (THISDAY)
Access Bank Plc has unfolded plans to expand to eight more African countries as part of a strategy to support trade and finance in the continent and take advantage of the newly formed African Continental Free Trade Area (AfCFTA). The countries are Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia. Presently, the tier-one bank operates in 12 countries. According to Group Managing Director, Access Bank, Mr. Herbert Wigwe, across Africa, there is an opportunity for the bank to expand to high-potential markets, leveraging the benefits of AfCFTA. He stated that the plan is for the bank to establish its presence in 22 African countries so as to diversify its earnings and take advantage of growth opportunities in Africa. Africa has enormous potential and there are opportunities for an African bank that is well run, that understands compliance and has the capacity to support trade and the right technology infrastructure to support payments and remittances, without taking incremental risks.
Kenya Led Other African Countries in Startup Investment in 2020 (Techweez)
Kenya is known for its vibrant startup hubs and reports show that investors are very interested in ideas in this country. According to a preliminary overview report about startup investments in Africa by Startup list Africa, Kenya is the leading destination for startup investments in Africa in 2020. Kenya received over 25% of total funding in Africa which is a significant cut of the pie. The top industry that received the funding was renewable energy which is an industry that has seen tremendous interest in. According to their report. Kenya led the way with $266 million (Kshs 29.3 billion) in investments ahead of Nigeria ($237 million), South Africa ($198 million), Egypt ($125 million) and Ghana ($90 million). The top industries that got funding in Kenya are in renewable energy, Agritech and logistics.
COMESA Secretariat Signs Sub-Delegation Agreement with Malawi to Upgrade Mchinji Border Post (COMESA)
The COMESA Secretariat and the Government of the Republic of Malawi have signed a 3.54 million Euros agreement that sub-delegates the implementation of coordinated border management activities under the broader Trade Facilitation programme with COMESA at Mchinji border post between Zambia and Malawi on the Malawian side. The project will support the implementation of key pillars of One Stop Border Post (OSBP) operations. Some of the major activities to be implemented under this agreement include upgrading the customs e-management system and bandwidth; improving inter-agency connectivity; implementation of the Trade and Transport Corridor Management System; capacity building, training and sensitization of National Trade Facilitation Committee and Border Agencies among others.
High demand for vaccines puts Africa on the back burner (The East African)
As the AU announced this past week that it had secured 270 million doses of Covid vaccines, East Africans will have to wait a bit longer to access the required quantities. While the announcement provides relief as countries may soon access the much-needed vaccines for frontline workers, the elderly and people with chronic ailments, the available doses are not enough to contain the pandemic as scientists recommend at least 60 per cent vaccination of the population. And even though it is the largest such agreement yet for the continent, it will not be until April that the first shipment of 50 million doses arrives and is then distributed through June, the head of the Africa Centres for Disease Control and Prevention (AfricaCDC) John Nkengasong said on Thursday.
An additional 19 million Euros is expected into the ECOWAS Fund (Vanguard)
Vice President of ECOWAS Commission, Mrs Finda Koroma has said that an additional 19 million Euros is expected into the ECOWAS Stabilization Fund. The Fund expected this year will be provided by the German government which would cover post Ebola countries like Guinea and Liberia. The fund will consist of several components. It will have four components as a private sector promotion and employment window, consisting of short term employment like labor, construction projects, maintenance of basic economic and social infrastructure as well as Medium term employment creation through investment in value chain especially in agriculture.’
Mauritius, Morocco Join AfDB Index (THISDAY)
The African Development Bank (AfDB) has announced the addition of two new countries – Mauritius and Morocco – to its Bloomberg African Bond Indices (ABABI), marking a steady progress in the Bank’s efforts to deepen the continent’s local currency bond market. The African Development Bank administers the ABABI, a family of African bond indices launched in February 2015 and calculated by the independent, global index provider Bloomberg. “This is a positive development as the inclusion of Mauritius and Morocco, two of Africa’s better-rated issuers, will improve the overall credit quality of the ABABI, which now captures close to 90 per cent of the outstanding amount of African sovereign local currency bonds,” Director of the Bank’s Financial Sector Development Department, Stefan Nalletamby said.
Africa’s Evolving Cyber Threats (Africa Center for Strategic Studies)
African governments face a fast-evolving array of digital threats from espionage, critical infrastructure sabotage, organized crime, and combat innovation. African governments and security sector actors have only just begun to identify and respond to the ways in which digital technology is transforming African security. Cyberspace has amplified the nature of four major types of security activity in particular: espionage, critical infrastructure sabotage, organized crime, and the contours of the African battlefield.
International trading partners
Maiden Africa Investment Roundtable Discusses Using Technology to Drive Regional Development (Proshare Nigeria)
The Africa Investment Roundtable (AIR) held its maiden edition in which it addressed the issue of the application of technology in driving growth in Africa. The session focused on a few issues ranging from lessons of the COVID-19 and sundry challenges in 2020 to the continental economic outlook in 2021 and how African policymakers can turn crisis into opportunities. Co-Founder of the AIR Initiative, Ms. Arunma Oteh, said that the Africa Investment Roundtable was conceived as a thought leadership series to bring expert-opinion to bear on the ways of taking advantage of investment opportunities in Africa.
UK to host 2021 UK-Africa Investment Conference (Foreign Brief)
The UK Department for International Trade is set to virtually host the 2021 UK-Africa Investment Conference today. The event links British and African businesses in hopes of creating future investment opportunities in sustainable infrastructure, agriculture and green technology. Last year’s showing announced over $8 billion worth of trade and investment deals. This year’s meeting follows December’s breakthrough deal between the UK and EU.
The UK has drawn up trade deals with 13 African nations post-Brexit, but the new bilateral agreements differ little from previous EU-Africa deals. However, negotiating comprehensive regional deals may prove more complex. For example, Kenya’s efforts towards an independent agreement with the UK have been criticised for its potential to compromise the East Africa Community (EAC) trading bloc’s ability to forge a collective bargain. Kenya will likely continue to push for an immediate replacement to the pre-Brexit deal for fear of losing access to the UK market, Nairobi’s fifth-largest trading partner. The rest of the EAC stands to lose bargaining power as a bloc without the inclusion of one of its most powerful members. If Kenya decides to rush ahead without the EAC, already strained relationships may drastically flatten the trajectory of African economic development.
We must seize the opportunity to pursue a post-Brexit trade deal with Africa (PoliticsHome.com)
A year on from the first UK-Africa Investment Summit (AIS), progress has been made to improve our links with the great continent of Africa. We have only just started. On the anniversary of the UK-Africa Investment Summit in London, we look back on this historic event which brought together heads of state, politicians and business leaders from the UK and Africa. In the year since the summit, progress has been made. Post-Covid and post-Brexit, it is key for the UK to promote exports and investment to this magnificent region. Why, then, was our total trade with the continent just $27bn in 2019 (2.4% of the UK’s total trade). Germany and France export double the value of goods that Britain does to Africa. In stark contrast, over half of the UK’s exports are sent to European countries.
The UK has deregulated citrus imports, including from South Africa (Engineering News)
With the UK’s departure from the European Union’s (EU’s) single market and customs union at the start of this year, London has deregulated, among other commodities, citrus fruit and leaf imports. The UK is a major market for South Africa’s citrus sector, reportedly taking 9.5% of the country’s citrus exports in 2019. “Leaving the EU single market and customs union means we can tailor regulation and import controls specifically to the needs of Great Britain rather than the EU,” a spokesperson for the UK High Commission in South Africa told Engineering News in an exclusive interview. “However, imports of citrus fruit and leaves into Northern Ireland will currently continue to be subject to the EU’s plant health import requirements.”
UK Export Finance unlocks trade to Egypt and supports UK jobs with £1.7bn guarantee (GOV.UK)
A consortium led by Bombardier Transportation has confirmed a deal with the Egyptian Government to build two new monorails thanks to £1.7 billion backing from UK Export Finance (UKEF), the largest amount of financing it has ever provided for an overseas infrastructure project. International Trade Secretary Liz Truss said: “Trade is an incredibly powerful way to propel growth and create jobs as we recover from the pandemic. This deal shows why we are so determined to get businesses to grasp these opportunities and take advantage of the support available from Government. One third of our economy is exports. That’s why support from our export credit agency is vital. It can help the UK get a bigger slice of the global economic pie, secure jobs across the country and make the most of our newfound independence as a trading nation.”
SACU’s economic partnership agreement with UK officially commences (Namibia Economist)
The Economic Partnership Agreement between the SACU Member States (Botswana, Eswatini, Lesotho, Namibia and South Africa) and Mozambique on the one part, and the United Kingdom of Great Britain and Northern Ireland on the other part (SACUM-UK EPA), entered into force on 1 January 2021. The agreement came into force following the end of the UK’s transition period and the deposit of the instruments of ratification by all the Parties to the SACUM-UK EPA.
US-Africa policy can be reset under Biden (The Mail & Guardian)
Since American agricultural commodities’ demand for slave labour brought the United States and Africa together four centuries ago, the US-Africa relationship has been mainly defined by economics and the shifting strategic value of the continent to America. As President Joe Biden takes office, it is time to consider how to elevate US-Africa relations through policies that can bring more prosperity to ordinary Africans and Americans.
What can Africa expect from the Biden administration? (The Africa Report)
Tomorrow, the whole world’s eyes will be on the inauguration of Joe Biden. Stepping into a moment of unprecedented domestic crisis, he will probably have relatively little bandwidth for Africa. While the incoming Assistant Secretary of State for African Affairs hasn’t been confirmed yet, many State Department appointments have been filled by veterans from the Obama era. Repairing alliances and boosting multilateralism seem to be on the agenda. What will be fascinating is how this will play out on the ground in Africa. One of the first casualties of the Biden reforms could be the Trump administration’s free trade agreement with Kenya. Nairobi is reportedly concerned that the nascent deal could be dead in the water, with the Biden administration opting to focus more attention on working via the African Continental Free Trade Area. This won’t only boost multilateralism in theory, it will also bolster the East African Community’s role as a negotiator – one undercut by both the Trump administration and Kenya itself.
Africa: How Fighting Climate Change Policy Can Help President Biden Re-Engage Africa (AllAfrica)
Despite dire predictions, the Trump Administration’s overall policy toward Africa represented continuity. Foreign aid continued; skilled diplomats were appointed and deployed to resolve conflicts; and the signature Africa programs of past presidents remained unabated. Biden will innovate new ways to engage with the continent towards a more stable, more secure Africa Because of Biden’s focus on climate change, it is likely that his signature program will focus on this issue. Herein lies Biden’s opportunity for an innovative Africa policy.
ECI signs agreement with Eastern and Southern African Trade and Development Bank (EIN News)
Etihad Credit Insurance (ECI), the UAE’s Federal export credit company, has partnered with Eastern and Southern African Trade and Development Bank (TDB), the financial arm of the Common Market for Eastern and Southern Africa, to advance economic development through trade finance and project and infrastructure finance, thereby bolstering the competitiveness of UAE-based businesses as they explore new markets and expand their operations in the international marketplace. The UAE is Africa’s fourth-largest global investor in Africa after China, Europe and the United States of America, with an investment of AED 92 billion ($25 billion) over the 2014-2018 period. This agreement is set to further boost the appetite of UAE businesses to increase their exports and investments in Africa.
CDC inks facility with TDB to boost pandemic trade recovery in Africa (Global Trade Review)
CDC Group, a publicly funded development finance institution, has moved to support the Eastern and Southern African Trade and Development Bank (TDB) with a new US$100mn finance facility. The agreement aims to boost TDB’s capacity for providing credit to African businesses in need of short-term financing, and who are grappling with the economic impact of Covid-19. According to a statement from the parties, the commitment will provide top-up loans and much-needed capital to new and existing TDB clients, which in turn will support the import, export and production of “strategic inputs” and agricultural commodity goods in the 22 members states where TDB operates. There will be a “strong focus on those economies with the most challenging investment climates”, the release says.
Project launched to define role of finance in South Africa and India’s ‘just transitions’ (Engineering News)
A new multi-partner initiative has been launched with the aim of defining the role that finance can and should play in supporting both South Africa and India’s aspirations to implement “just transitions” to more climate-resilient economies. The ‘Just Transition Finance Roadmaps in South Africa and India Project’ is being backed by the UK’s development finance institution, the CDC Group, in partnership with Trade & Industrial Policy Strategies (TIPS) and the National Business Initiative (NBI), of South Africa, as well as the Observer Research Foundation, LSE Grantham Research Institute on Climate Change and the Environment, the Harvard Kennedy School’s Initiative for Responsible Investment and the National Institute of Public Finance and Policy.
Global economy
The State of Economic Inclusion Report 2021: The Potential to Scale (World Bank)
The State of Economic Inclusion Report 2021 sheds light on one of the most intractable challenges faced by development policy makers and practitioners: transforming the economic lives of the world’s poorest and most vulnerable people. Economic inclusion programs are a bundle of coordinated, multidimensional interventions that support individuals, households, and communities so they can raise their incomes and build their assets. Programs targeting the extreme poor and vulnerable groups are now under way in 75 countries.
Could 2021 be a comeback year for global trade? (Cayman Compass)
2020 was one of the most disruptive years in recent memory for global trade and the rules-based multilateral trading system. The COVID-19 pandemic triggered a sharp contraction in global merchandise trade growth which was already slowing due to escalating trade tensions among major trading powers. It disrupted global supply chains, provoking calls for nearshoring. COVID-19 also delayed the scheduled trade policy reviews of some World Trade Organization (WTO) members, as well as postponed key events on the global trade calendar, in particular the WTO’s Twelfth Ministerial Conference (MC12) and Fifteenth Quadrennial Conference of the United Nations Conference on Trade and Development (UNCTAD XV).
Business performance, strategy, Covid-19 drive further change in nonexecutive practices (Engineering News)
While 2020 was a year of fluctuations and novel challenges, the remuneration of nonexecutive directors continues to be increasingly linked to the performance of businesses, as well as their ability to adapt to new challenges and new demands from stakeholders and shareholders, says professional services and advisory multinational PwC South Africa People and Organisation Reward Tax, Legal and Governance leader associate director and co-lead Leila Ebrahimi. Ebrahimi is the editor of the PwC ‘2021 Nonexecutive Directors Practices And Fees Trends’ report, released on January 19.
Independent panel finds critical early failings in COVID-19 response (UN News)
The Independent Panel for Pandemic Preparedness and Response found critical elements to be “slow, cumbersome and indecisive” in an era when information about new disease outbreaks is being transmitted faster than countries can formally report on them. “When there is a potential health threat, countries and the World Health Organization must further use the 21st century digital tools at their disposal to keep pace with news that spreads instantly on social media and infectious pathogens that spread rapidly through travel,” said Helen Clark, former Prime Minister of New Zealand and co-chair of the panel.
Covid-related risks dominate Allianz Risk Barometer 2021 (Engineering News)
A trio of Covid-19-related risks heads up the tenth Allianz Risk Barometer 2021, reflecting potential disruption and loss scenarios companies are facing in the wake of the pandemic. Business interruption and pandemic outbreak are this year’s top business risks with cyber incidents ranking a close third. “The Allianz Risk Barometer 2021 is clearly dominated by the Covid-19 trio of risks. Business interruption, pandemic and cyber are strongly interlinked, demonstrating the growing vulnerabilities of our highly globalised and connected world.
Supporting low carbon investments through COVID-19 recovery targeting funding for ten key sectors across 21 emerging markets has the potential to generate $10.2 trillion in investment opportunity, create 213 million jobs, and reduce greenhouse gas emissions by 4 billion tons by 2030, says an IFC report published today. The report, Ctrl-Alt-Delete: A Green Reboot for Emerging Markets, analyzes the economic and climate benefits of a green recovery that focuses on decarbonizing existing and future energy infrastructure, building climate-smart cities, and helping speed the transition of key industries to greener production.
Innovation to counter food supply-chain disruptions and spur recovery (ReliefWeb)
Innovative solutions in agri-food systems helped households and countries contain disruptions in food supply chains during the COVID-19 pandemic, and more will be required to “build back better and build back greener”, FAO’s Director-General QU Dongyu said today. Innovation occurs on the technology frontier but also in policy making and business models, he emphasized while speaking at a virtual high-level panel on how to help strengthen the sustainability of food systems and prevent future pandemics. The event was organized by FAO as part of the week-long Global Forum for Food and Agriculture (GFFA) in Berlin.
The Platform for Collaboration on Tax (PCT), a joint initiative of IMF, OECD, UN and the World Bank, released the final version of the Practical Toolkit to Support the Successful Implementation by Developing Countries of Effective Transfer Pricing Documentation Requirements. The PCT’s new toolkit serves as a sourcebook of guidance on implementing transfer pricing documentation requirements for developing countries. The toolkit compiles essential information on transfer pricing documentation and analyzes policy choices and legislative options.
Delays projected in poorer nations’ access to vaccines (Anadolu Agency)
Distribution of COVID-19 vaccines in the 92 least developed countries will not start before late March, health authorities said Tuesday. While high and middle income countries are already undergoing vaccination, the least developed poor countries have not been able to receive the vaccines, which were supposed to be distributed in the COVAX program’s framework for equitable allocation. World Health Organization (WHO) Director-General Tedros Adhanom Ghebreyesus drew attention to the global inequality in access to vaccines in one of his recent addresses. “Even as vaccines bring hope to some, they become another brick in the wall of inequality between the world’s haves and have-nots,” he said.
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Country focus
SA must embrace innovation to rebuild economy: President Ramaphosa (SAnews)
With the COVID-19 pandemic having battered the South African fiscus in 2020, President Cyril Ramaphosa has cautioned that the country will have to embrace innovative interventions to rebuild the economy in the New Year. The President said this on Monday in his first weekly newsletter of 2021. “Significantly, the Economic Reconstruction and Recovery Plan that we announced in October last year is based on broad consensus among all social partners on the actions needed to rebuild the economy. This lays a firm basis for effective cooperation that draws on the resources, capabilities and energies of all sections of society,” he said.
South Africa – Import Requirements and Documentation (The Africa Logistics)
South Africa has a complex import process. The South African Revenue Service (SARS) defines approximately 90,000 product tariff codes that are strictly enforced on all imports. New-to-Market U.S. exporters are actively encouraged to engage the services of a reputable freight forwarding/customs clearance agent well versed in South African convention. Customs South Africa (Customs SA), a division of SARS, requires that an importer register with its office and obtain an importer’s code from SARS. This impacts many importers and may cause delays to clearance of goods. SARS uses a Single Administrative Document (SAD) to facilitate the customs clearance of goods for importers, exporters, and cross-border traders. The SAD is a multi-purpose goods declaration form covering imports, exports, cross border, and transit movements.
SA wine exports to the UK leap 23% (Harpers Wine & Spirit Trade Review)
South African wine exports to the UK, its leading export market, surged last year with both value and volume sales up. During 2020, export sales to the UK leaped 23% in value, while the market increased by 7% in volume terms, according to the SA Wine Industry Information and Systems NPC (SAWIS). An increase of 28% by value for packaged wines to the UK was also announced for the same period. “We have seen many importers, retailers and wine commentators go above and beyond to help our industry and make UK wine drinkers aware of the quality and potential of great South African wines… We look forward to welcoming the UK trade back to South Africa as soon as possible,” said Jo Wehring, UK market manager for WoSA.
Development Bank to offer Covid-19 relief loan (The Nambian)
Small and medium enterprises (SMEs) of a year and older will next week be able to apply for bridging capital from the Development Bank of Namibia (DBN).This to cushion the economic impact of the Covid-19 pandemic. According to DBN, it will extend loans to SMEs requiring bridging capital to carry them through the current low-revenue period. Enterprises that wish to restructure their business operations to best survive the changing business environment may also apply.
KQ goes for more cargo planes as passenger numbers remain low (Nation)
National carrier Kenya Airways (KQ) has continued to repurpose some of its wide body passenger aircraft into cargo planes to fill the gap caused by passenger shortfalls. In its latest announcement, KQ says that so far, it has fully repurposed one Dreamliner for cargo transportation. Managing Director Allan Kilavuka explained the impact of the move on Monday, during the signing of a commitment of collaboration with players in the fresh produce export business.
Kenya Airways mulls more cargo flights to China as Sino-Africa trade grows (Xinhua)
Kenya Airways is considering adding new cargo flights to China as Sino-Africa trade grows, an official said on Monday. Dick Murianki, Director of Kenya Airways Cargo told Xinhua in Nairobi that the airline has been experiencing increased demand for air freight between China and the African countries that it operates in. “We currently fly into Guangzhou but we are looking at going into other cities. Shanghai looks interesting but we have not yet made a decision,” Murianki made the remarks when the Kenyan airline signed a cooperation agreement with the Kenya fresh produce exporters.
Tea price stays high despite UK lockdown (Business Daily)
Tea prices at the Mombasa auction remained at a four-month high last week, even as concerns emerge that a new UK lockdown will pull them down in the short-term. A market report shows a kilogramme of the beverage on average fetched Sh211 in the second sale of the year, which is the same value that it attracted in the opening trading of 2021.
Treasury ahead of domestic debt target on Covid (Business Daily)
The Treasury has moved ahead of its domestic borrowing target for the first half of the current financial year after it tapped money from commercial lenders on the back of relatively low interest and reduced economic activity, which cut credit to the private sector. Fresh data published by the Central Bank of Kenya (CBK), the government’s fiscal agent, shows domestic debt increased by Sh310.94 billion in the six-month period to nearly Sh3.49 trillion as at end of December. The amount tapped from domestic investors such as banks and pension funds is an equivalent of 59.26 percent of the Sh524.69 billion net borrowing target for the full-year period ending June 2021.
We are progressing well with e-receipts, says URA (Daily Monitor)
URA recently started implementation of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), a medium that is being used by all businesses to manage issuance of receipts and invoices for tax purposes. The system was effectively rolled out on January 1, despite pleas from companies for an extension. Ian Rumanyika, the Uganda Revenue Authority (URA) manager public and corporate affairs explains the progress and benefits of the system. EFRIS implementation commenced on January 1. What is the progress so far?
Nigeria’s rail costs exceed AU’s estimates by over 100% (The Guiardian Nigeria)
An investigation has shown that the average cost per kilometer (km) of the newly contracted Kano-Maradi rail line exceeds similar projects under the Programme for Infrastructure Development in Africa (PIDA), as estimated by the African Union (AU) by, at least, 100 per cent. The Federal Government, recently, announced that it signed a Memorandum of Understanding (MoU) with Mota-Engil Group for the construction of the 283.75 Kano-Maradi standard-gauge rail at a contract cost of $1.959 billion. In an AU document titled ‘Towards the African Integrated High-Speed Railway Network (AIHSRN) Development’, the Union puts the estimates of the new railway line needs of the continent at 12, 000km, which are expected to be completed at a cost outlay of $36 billion.
Border closure failed to achieve objectives – Prof Asiwaju (Vanguard)
There is, perhaps, no better pointer to the abysmal failure of Nigeria’s border policing and management mechanism than the recent candid confession by President Muhammadu Buhari, as reported in the media on Monday, 22 December, wherein he was correctly described as having given up and ‘handed over Nigeria’s border’s to God’. What we must quickly add, though, is that what has so manifestly frustrated Buhari is his own administration’s self-inflicted conservative police-state approach to border management based on obsolete use of state coercion apparatuses that permits police brutality; inspired by a negative ultra-nationalism and indulging in inherently impracticable tradition of unilateral border closure. But also unacceptably insensitive of Nigeria’s state obligations to neighbouring sovereignties, including two of Africa’s vulnerable landlocked countries, in the interest as much for international relations as common commitment to bilateral cooperation and wider regional integration.
Diversifying export earners via horticulture sector competitiveness (Ethiopian Press Agency)
The higher management of the Ministry of Agriculture and other stakeholders recently held discussion on options of expanding the horticulture investment and the national project of boosting avocado production in areas with potential and suitable climate. Ethiopia has a great opportunity for horticulture development due to the favorable climatic conditions, fertile soils, huge irrigation potential and affordable manpower. The sector has attracted a significant amount of domestic and foreign investment. Ethiopia’s horticulture products have had also a chance to penetrate into the international market in the past two decades. One of the major focus areas of the recent discussion were ways of tapping the huge potential in the sector and the performance so far.
Mineral exports surge 27pc to surpass target (The Herald)
Zimbabwe’s mineral exports, excluding gold and silver, for the year 2020 surged by 27 percent, earning the country US$2,4 billion, the Minerals and Marketing Authority of Zimbabwe (MMCZ) has said. This sets Zimbabwe on course of achieving a US$12 billion mining economy in the next two years, said Mr Muzenda. The mining sector is Zimbabwe’s largest foreign currency earner, accounting for 70 percent of the country export receipts. In 2019, the Government launched a roadmap to grow the mining sector to US$12 billion by 2023 through leveraging on the country’s diverse mineral wealth. The mining roadmap, also known as “Strategic Road to the Achievement of US$12 billion by 2023” targets gold revenue at US$4 billion, platinum group metals at US$3 billion, chrome, iron, steel diamonds and at US$1 billion, lithium at US$500 million, while other minerals are expected to contribute US$1,5 billion.
Angola engages in investment protection agreement with China’s (ANGOP)
Angola has announced plans to enter into the negotiation processes of Agreements on Promotion and Reciprocal Protection of Investments (APPRI) with Japan, China and Mozambique. This was announced Thursday by the State Secretary for Planning, Milton Reis, who did not add further details in terms of the agreements. For 2021, the Ministry of Economy and Planning says it has scheduled events and arrangements of joint agreements for bilateral economic cooperation with countries such as the United Arab Emirates, Russia, South Africa, Egypt, Zambia, Cuba, Czech Republic and Germany.
Global uncertainty hampers oil blocks auction in Angola (GCTN Africa)
The COVID-19 pandemic is significantly jeopardizing the intention of Angola’s National Oil and Gas Agency (ANPG) to auction nine new oil blocks concessions, a study by an Angolan consulting company specializing in oil and gas, PetroAngola, revealed on Sunday. According to PetroAngola, the spread of the virus has brought a huge environment of uncertainty in the global oil and gas industry, negatively impacting the main fundamentals of the market. The scenario has forced the cancellation of more than 64 percent of the country’s planned bidding in 2020 worldwide, the company said.
Algeria crude oil output tumbles in 2020 (CGTN Africa)
Algeria’s oil revenues collapsed in 2020, according to energy ministry figures released Sunday, exacerbating an economic crisis in the North African country which is heavily dependent on crude income. “The overall volume of hydrocarbon exports reached 82.2 million tonnes of oil equivalent in 2020, for a value of $20 billion, a decrease of 11 percent and 40 percent respectively compared to 2019,” the ministry said in a statement. The coronavirus pandemic and the ensuing economic downturn hit oil prices hard, battering the economies of producer nations.
Carryout Market Research in Agribusiness Ventures (Taarifa Rwanda)
More people are turning to agribusiness ventures that are involved in the primary production of crops, livestock and poultry. Sometimes these ventures become specialized in the processing or semi processing of agricultural commodities because of having many years of experience and always being informed about the industry’s condition. For one to be a successful owner of an agribusiness venture, it is of great importance to carry out a market research to get an informed view of what to expect when venturing into agricultural businesses. Market research has proven to be a key aspect that each aspiring business owner must undertake before setting up the actual business, it has several informative guidelines that will help to sustain a business.
News from Africa
Africa’s Development Dynamics 2021: Digital Transformation for Quality Jobs (OECD)
Can digitalisation create quality jobs and make African economies more resilient to the global recession triggered by the COVID-19 pandemic? The 2021 edition of the Africa’s Development Dynamics report draws lessons from the continent’s five regions – Central, East, North, Southern and West Africa – to develop policy recommendations and share good practices. This virtual, high-level event will take place during the PIDA Week on Tuesday, 19th of January 2021, 15:45 to 17:00 CET | 17.45 to 19.00 EAT
Africa’s Infrastructure Ministers Validate Africa’s Infrastructure Priorities for 2021-2030 (African Union)
Africa’s infrastructure Ministers convened virtually to discuss the Continent’s infrastructure priorities for 2021-2030 and to validate the outcome of the first extraordinary expert group meeting of the AU Specialized Technical Committee on Transport, Intercontinental and Interregional Infrastructures, Energy and Tourism (STC-TTIIET) held on December 14, 2021. “Annually, we have an infrastructure financing gap of between $60 -$90 billion. We need effective and efficient plans to mobilize resources to fund the identified PIDA projects. The long-term solution in my view is the creation of an Africa Continental Infrastructure Fund under the auspices of the AU to pool resources. Such a fund would focus on a combination of domestic sources and private sector financiers,” said the Rt. Hon. Raila Odinga, the AU High Representative for Infrastructure Development.
Infrastructure development mainstay for African continental free trade area: UN expert (Xinhua)
As the African Continental Free Trade Area (AfCFTA) Agreement set to solve Africa’s investment hurdles, there is an urgent need to address the continent’s infrastructure shortcomings, a senior official of the United Nations Economic Commission for Africa (UNECA) said on Monday. The statement was made by Stephen Karingi, regional integration and trade division director at the UNECA, ahead of the sixth session of the Program for Infrastructure Development in Africa (PIDA) Week, which kicked off virtually on Monday to review progress, share experiences and build consensus on key infrastructure projects that will take Africa to the next level of development. “New decade, new realities, new priorities - ANGOP positioning PIDA and infrastructure development in Africa’s continued growth and economic recovery.”
The SADC Industrialisation Strategy and Roadmap foresees an increase in manufactured exports to at least 50 percent of total exports in the Southern African Development Community (SADC) by 2030, from less than 20 percent at present, and to build market share in the global market for the export of intermediate products to East Asian levels of around 60 per cent of total manufactured exports. The Industrialisation Strategy and Roadmap foresees the lifting of the regional growth rate of real Gross Domestic Product (GDP) from 4% annually (since 2000) to a minimum of 7% a year. It also seeks to double the share of manufacturing value added (MVA) in GDP to 30% by 2030 and to 40% by 2050, including the share of industry-related services, and to increase the share of medium-and-high-technology production in total MVA from less than 15% at present to 30% by 2030 and 50% by 2050.
Dialogue could have averted Covid-19 border chaos (ISS Today)
The festive season was marked by dramatic scenes of tens of thousands of people amassing at border posts between South Africa and its neighbours where procedures had slowed down due to COVID-19 restrictions. Border posts such as Beitbridge between South Africa and Zimbabwe and the Lebombo border with Mozambique were particularly chaotic, with travellers and trucks delayed for days. Many people used dangerous illegal routes to cross into South Africa after spending Christmas at home. The panic and congestion – potentially aggravating the pandemic – was largely due to a lack of coordination between governments and failure to implement strategies agreed on by Southern African Development Community (SADC) member states. Dialogue at a high level could have averted much of the crisis.
Africa Free Trade Agreement: President Adesina receives award for strong leadership and support (Africanews)
African Development Bank President Akinwumi A. Adesina and 10 African Heads of State and Government were on Friday honoured for their leadership in the African Continental Free Trade Area (AfCFTA) process. The AfCFTA, the largest free trade area in the world, began trading on 1 January 2021 and is expected to speed up the recovery of the continent and enhance its resilience by increasing the level of intra-African trade in goods and services. The award was organised by AeTrade Group in collaboration with the African Union Commission, the African Business Council, the Pan African Chamber of Commerce and Industry, the Federation of West African Chambers of Commerce and Industry, and the East African Chamber of Commerce, Industry and Agriculture.
AMSP opens COVID-19 vaccines pre-orders for 55 African Union Member States (African Export-Import Bank)
Following the announcement by the African Union Chairperson, President Cyril Ramaphosa on the 14th of January 2021 that the African Union has secured a provisional 270 million COVID-19 vaccine doses for Africa through its COVID-19 African Vaccine Acquisition Task Team (AVATT), the Africa Medical Supplies Platform (AMSP), on behalf of the Africa Centres for Disease Control and Prevention (Africa CDC), today commences the COVID-19 vaccines pre-order programme for all African Union Member States. “Afreximbank is proud to expand its support to African economies in their bid to contain the pandemic. Our vaccine financing facility builds on the success of our Pandemic Trade Impact Mitigation Facility (PATIMFA) to open access to COVID 19 vaccines to African states based on a whole-of-Africa approach favoured by the African Union,” said Prof. Benedict Oramah, President and Chairman of the Board of Directors of the African Export-Import Bank.
Africa finds its voice as President signs Factbook (The Herald)
President Mnangagwa yesterday signed copies of The Africa Factbook and accompanying letters, which will be distributed to the heads of state and government of the other 54 African Union countries. The Africa Factbook is Africa’s first ever publication tells the African story from an Afrocentric perspective. It is the continent’s first ever coordinated response to more than 500 years of misinformation and often disinformation against Africa by outsiders and more recently by the global media empires.
African Central Bankers Out of Policy Space to Fight Recessions (Bloomberg)
African central bankers meeting in the next two weeks amid a resurgent coronavirus may find they’ve used up most of their interest-rate ammunition to lift their economies out of recessions that still affect much of the continent. Monetary policy committees have limited scope to provide stimulus after aggressive easing when lockdowns first shuttered output in 2020, with inflation quickening in Nigeria and Angola and restrictions that would dull the impact of rate cuts continuing in South Africa and Kenya. “I don’t think there is scope for strategic easing of monetary policy in 2021,” said Jibran Qureishi, head of Africa research at Standard Bank Group Ltd. “In the event that economic activity remains sluggish, a bias to cut will persist, but any cuts from these levels will be token.”
Africa’s international trade relations
Partnership with a purpose: EU-Africa relations in 2021 (EURACTIV)
The EU’s plans to strike a ‘strategic partnership’ with Africa were one the victims of the COVID-19 pandemic. After the European Commission set out its stall in a March 2020 strategic paper, summits were cancelled and it is unclear whether EU and African Union leaders will agree on an agenda with the ambition needed for a genuine ‘strategic partnership’ this year.
UK-Africa trade: What will Brexit change? (Deutsche Welle)
The United Kingdom on Wednesday will host a virtual UK-Africa conference to promote trade and investment opportunities in African markets. The meeting takes place on the anniversary of the inaugural 2020 UK-Africa summit hosted with great fanfare by Britain’s prime minister, Boris Johnson, who famously skipped the World Economic Forum in Davos to lead the event. At last year’s summit, Johnson said Britain had all it took to become Africa’s “obvious partner of choice” for doing business post-Brexit when it was no longer tethered to European Union trade agreements with the continent. Leaving the EU theoretically allows the UK to make independent trade agreements better tailored to individual African nations.
New Initiative: German Automotive Industry intensifies links to Africa (Engineering News)
The German automotive industry sees potential in Africa and strengthens its ties to the continent. The German Association of the Automotive Industry (VDA) joined hands with the African Association of Automotive Manufacturers (AAAM) as part of the “PartnerAfrica” project of the German Federal Ministry for Economic Cooperation and Development (BMZ). AAAM is the first Automotive association with a pan-African approach, established in 2015 by global Original Equipment Manufacturers (OEMs). The partnership-based cooperation between is mutually beneficial: in cooperation with local and regional structures it helps the automotive industry to improve access to sometimes difficult markets and at the same time it is in the interest of German development policy to improve local prospects by involving the private sector and to create sustainable jobs and sustainable mobility in partner countries.
Fate of Kenya-US Free Trade Deal Uncertain (The Maritime Eexcutive)
A cloud of uncertainty has engulfed Kenya’s pursuit of a free trade agreement (FTA) with the United States due to the impending change of guard at the White House. Anxiety in Nairobi has been exacerbated by the unexpected resignation of U.S. ambassador to Kenya Kyle McCarter, who espoused President Trump’s belief in deepening trade and commercial engagements with Africa. “The Trump administration valued bilateral approach to policy but the Biden administration has promised a return to multilateralism and alliance-building. While Kenya might want to continue the pursuit of an FTA, there is no guarantee of Washington being interested,” said Ken Gichinga, chief economist at Mentoria Economics. He added that while the need to neutralize China’s influence in Africa is something the new U.S. administration would want to pursue, the need to broaden the spectrum of trade and commercial interests through the African Continental Free Trade Area (AfCFTA) looks more feasible. Cooperation through AfCFTA will revive the importance of the African Growth and Opportunity Act (AGOA), which has failed to flourish under the Trump administration. Total two-way goods trade between the U.S. and Africa declined from $36.9 billion in 2015 to $34.7 billion in 2019. Of importance to note is that AGOA, which is set to expire in 2025, was renewed during the Obama administration in 2015 when Biden was the vice president. Kenya’s FTA negotiations with the U.S. commenced in July last year, and the target was to have a deal that would allow duty-free access for Kenyan goods to the U.S. market before the end of the year, while the Trump administration was still in office.
Global news
Step up climate change adaptation or face serious human and economic damage – UN report (UNEP)
As temperatures rise and climate change impacts intensify, nations must urgently step up action to adapt to the new climate reality or face serious costs, damages and losses, a new UN Environment Programme (UNEP) report finds. Adaptation – reducing countries’ and communities’ vulnerability to climate change by increasing their ability to absorb impacts – is a key pillar of the Paris Agreement on Climate Change. The UNEP Adaptation Gap Report 2020 finds that while nations have advanced in planning, huge gaps remain in finance for developing countries and bringing adaptation projects to the stage where they bring real protection against climate impacts such as droughts, floods and sea-level rise.
The World Needs to Wake Up to Long-Term Risks (World Economic Forum)
For the last 15 years the World Economic Forum’s Global Risks Report has been warning the world about the dangers of pandemics. In 2020, we saw the effects of ignoring preparation and ignoring long-term risks. The COVID-19 pandemic has not only claimed millions of lives, but it also widened long-standing health, economic and digital disparities. According to the Global Risks Report 2021, released today, these developments may further impede the global cooperation needed to address long-term challenges such as environmental degradation. Financial, digital and reputational pressures resulting from COVID-19 also threaten to leave behind many companies and their workforces in the markets of the future. While these potential disparities could cause societal fragmentation for states, an increasingly tense and fragile geopolitical outlook will also hinder the global recovery if mid-sized powers lack a seat at the global table.
World Leaders to Meet During Davos Agenda in a Crucial Year to Rebuild Trust (World Economic Forum)
The World Economic Forum Davos Agenda, taking place virtually on 25-29 January, will bring together the foremost leaders of the world to address the new global situation. Heads of state and government, chief executives and leaders from civil society will convene under the theme: A Crucial Year to Rebuild Trust. “In the context of the COVID-19 pandemic, the need to reset priorities and the urgency to reform systems have been growing stronger around the world,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum. “Rebuilding trust and increasing global cooperation are crucial to fostering innovative and bold solutions to stem the pandemic and drive a robust recovery. This unique meeting will be an opportunity for leaders to outline their vision and address the most important issues of our time, such as the need to accelerate job creation and to protect the environment.”
COVID-19 Travel Bans Impact Least Developed Countries (Borgen Project)
COVID-19 has made severe global impacts, but impoverished countries are facing the harshest consequences. There are 46 countries identified by the United Nations (UN) as Least Developed Countries (LDCs) due to “severe structural impediments to sustainable development.” These nations have the fewest means with which to fight the pandemic. LDCs have approximately 900 million people and account for less than 1% of recorded COVID-19 cases and deaths. However, these low percentages are not an accurate reflection of the current situation. Without the necessary resources to test people, it is impossible for institutions to gather precise data. COVID’s impacts do not stop with health, either. With global COVID-19 travel bans, LDCs’ economies, heavily reliant on tourism, have disproportionately suffered, as well.
Most Major Economies Are Shrinking. Not China’s (The New York Times)
As most nations around the world struggle with new lockdowns and layoffs in the face of the surging pandemic, just one major economy has bounced back after bringing the coronavirus mostly under control: China. The Chinese economy rose 2.3 percent last year, the country’s National Bureau of Statistics announced on Monday in Beijing. By contrast, the United States, Japan and many nations in Europe are expected to have suffered steep falls in economic output. While the recovery remains uneven, factories across China are running in overdrive to fill overseas orders and cranes are constantly busy at construction sites – a boom in exports and debt-fueled infrastructure investments that is expected to drive the economy in the coming year.
A Brexit lesson: EU’s benefits, largely invisible, hurt to lose (POLITICO.eu)
Britons have finally understood (five years too late) why the European Union’s single market and customs union are important: They make EU internal borders invisible. Rather than a tale of a ruler who discovers he is naked, this is the story of a country that is discovering the importance of benefits it had taken for granted because they could not be seen. Invisible benefits are easy to forget and hard to sell politically. They are also easy to dismiss and easy to lie about. But the cost of abandoning them can be steep.
BRI is a game changer: Executive secretary of UN ECLAC (ECNS)
“The Belt and Road Initiative (BRI) is a game changer. In a world where international cooperation has been severely weakened in recent years, the BRI is a testimony of China´s continued support for multilateralism and mutually beneficial relations among countries and regions,” said Alicia Bárcena, Executive Secretary of the United Nations’ Economic Commission for Latin America and the Caribbean (ECLAC) on Monday.
Related News
tralac Daily News: First edition for 2021
Country focus
Malawi ratifies AfCFTA after submitting instrument of ratification (UNECA)
Malawi submitted its instrument of ratification of the African Continental Free Trade Area (AfCFTA) treaty today, becoming the 35th member state to ratify the agreement, said the African Union Commission (AUC). Ambassador Albert Muchanga, the AUC Trade and Industry Commissioner who made the announcement, said more member states were on track to submit their own documents soon. Following Malawi’s ratification, only 19 member states are left to comply.
Zambia Ratifies and Deposits Instruments of the Tripartite Free Trade Area (TFTA) Agreement (COMESA)
Zambia has become the latest country to deposit its instruments of ratification for the Tripartite Free Trade Area (TFTA) Agreement with the COMESA Secretariat. This brings the number of countries that have ratified and deposited the TFTA instruments to nine. The Agreement needs a total of fourteen ratifications by Member States to enter into force.
Once operational, the TFTA will enable the free movement of goods, services and businesspersons all of which stimulate economic activity in the region thereby improving the lives of ordinary people. COMESA Trade experts say the Agreement will serve as an impetus for investment in Africa’s cross-border infrastructure. It is estimated that Africa needs to invest nearly $100 billion annually in infrastructure over the next decade. Less than half of this target is met currently. One of the reasons for the low level of investment has been poor coordination across the different trading blocs. Building infrastructure will also create additional jobs and foster the development of engineering services.
Export application under AfCFTA through ICUMS to start January 18 (Business Ghana)
Application processes through the Integrated Customs Management System (ICUMS) for export under the African Continental Free Trade Area (AfCFTA) is to commence on January 18, 2021. This was announced by Mr Fechin Akoto, Assistant Commissioner of Customs in charge of Tariff and Trade, and responsible for Free Trade Agreements including AfCFTA, in a media interaction. He indicated that the Customs Division of the Ghana Revenue Authority (GRA) was currently assisting the exporters on the necessary processes, as well as all key information regarding trading in the AfCFTA.
AfCFTA: Nigerian Commodities Exchange prepared for agreement – MD (Nairametrics)
The Nigeria Commodity Exchange (NCX) is well-positioned to take advantage of the African Continental Free Trade Agreement (AfCFTA), through the implementations of several measures to ensure smooth export operations of Nigerian Commodities. This was disclosed by the Managing Director of the Commodities Exchange, Mrs. Zaheera Baba-Ari, in an interview on Sunday in Abuja. She added that the NCX had an established network of 20 warehouses across major production areas in the six geo-political zones of the country for efficient receipt and storage of agro-commodities to be traded on the exchange. The NCX boss said that AfCFTA would help Africa fight challenges that were caused by the pandemic in the continent’s economies through trade.
AfCFTA: What Nigerian businesses must do to export to African countries - Official (Premium Times)
The Nigerian Office for Trade Negotiations (NOTN) Saturday said exporters or agents aspiring to move products to countries under the African Continental Free Trade Area (AfCFTA) must obtain permits, licences, certificates and other relevant documentation from appropriate government agencies. Nigeria was one of the last African countries to sign the AfCFTA with President Muhammadu Buhari raising concerns that goods produced outside Africa could be dumped in Nigeria through other (West) African countries who allow largely unrestricted imports. The president only signed it after a committee he set up advised him to do so.
AfCFTA and Dangote’s refinery will make fuel cheaper – Energy Consultant (BusinessGhana)
Energy analyst and lead technical consultant to the Chamber of Petroleum Consumers (COPEC), Dr Yussif Sulemana says the African Continental Free Trade Area Agreement (AfCFTA) coupled with the establishment of a state-of-the-art refinery by Nigerian businessman Aliko Dangote stand the potential to significantly reducing the cost to refined crude products on the continent. He stated that “Nigeria is now looking straight, and they say they want to add value to their raw material base which is crude oil and so that is the cue and if they succeed, and we see that it is doable then Ghana just has to make its existing refinery vibrant. If we have a lot of finished products within the market, first of all, cost-wise, it is going to be competitive, and the cost will come down. So I see two things within the AfCFTA. It will break trade barriers, and it will bring about structural transformation in magnanimous proportions in the African continent and that includes intelligence sharing etc.”
What Museveni’s victory in Uganda elections means for EAC (Nation)
Uganda’s President Yoweri Museveni secured a fresh presidential term in the elections held on January 14, amid complaints of electoral fraud by the leading opposition candidate, Robert Kyagulanyi aka Bobi Wine. The Economic Survey of 2020 shows that Kenya exported to Uganda goods worth Sh64.1 billion in 2019, accounting for almost half of the value of Kenya’s exports to the East African Community partner states.
KRA Surpasses December Revenue Target to Collect Sh166bn, Reflecting Economic Recovery Prospects (Capital Business)
The Kenya Revenue Authority surpassed its revenue collection target for the month of December 2020, the first positive and above target collection rate since the outbreak of Covid-19 pandemic. KRA Commissioner General Githii Mburu said a total of Sh166 billion was collected against a target of Sh164 billion representing 3.5 percent growth over the same period last year. The improved performance has been attributed to the economic recovery following the relaxation of the COVID-19 containment measures and enhanced compliance efforts by KRA in the month of December. Departments that boosted KRA’s performance in the month under review include the Customs and Border Control Department which recorded the highest ever monthly revenue collection in KRA’s history by collecting Sh60.777 billion, reflecting growth of 40.9 percent and registering a revenue surplus of Sh12.191 billion.
China ready to suspend Kenya’s debt over COVID-19 pressure (Capital News)
China has indicated its willingness to suspend Kenya’s debt as part of measures to help developing countries weather the COVID-19 storm. The Embassy in Nairobi said China stands ready to strengthen coordination with Kenya in its efforts to address debt challenges. “Africa’s need is always China’s concern,” the Embassy said, “We stand ready to strengthen coordination with Kenya and assist Kenya in its efforts to address debt challenges.” It said: “Both sides are now keeping efficient communication through smooth channel.”
Rwanda’s horticultural exports meet demand in Dubai (The New Times)
Consumers flocking one of the biggest Carrefour outlets at the Mall of Emirates in Dubai appreciated new fresh products including avocado and passion fruits from Rwanda on Sunday. Speaking at the launch, Emmanuel Hategeka Rwanda’s Ambassador to the United Arab Emirates welcomed the move by Carrefour to open the gates to Rwanda’s quality fresh products following a supply of goods partnership agreement signed with Rwanda’s National Agricultural Export Board (NAEB) in November 2020. Under the deal, Rwandan exporters will be supplying to this wide UAE retailing company with passion fruits, apple banana, pineapple and avocado.
Cane growers raise alarm over sugar imports (The Standard)
Cane growers have raised alarm over the impending importation of 57,473 tonnes of sugar to cover a deficit of the commodity under the Common Market for Eastern and Southern Africa (Comesa) safeguards. They accuse the Ministry of Agriculture of failing to prevent the dumping of sugar into the country that is making local factories untenable, thereby impoverishing millions of stakeholders who depend on the sector. Kenya Sugarcane Growers Association Secretary General Richard Ogendo while terming the move a scheme to illegally bring in sugar into the country, pointed out that the Comesa quota for 2020 was already exhausted, citing an October 31, 2020 notice issued by Agriculture and Food Authority (AFA). “This is a very clear indication that some well-connected individuals have already been identified to flood the Kenyan market with duty-free sugar imports at the expense of the ailing industry,” he said.
AfCFTA: What are Rwanda’s export-ready products? (The New Times)
The Rwandan government has identified opportunities in several local products for exports under the recently launched Africa Continental Free Trade Area. Among the products that have been found to be market-ready, according to The Ministry of Trade and Industry include agro-processing products including tea, coffee, cereals as well as diary, animal and vegetable oil products. Other products that are export-ready according to the Ministry of Trade and Industry include products from mining operations including ores and base metals. Rwanda is also looking to export construction materials, agro-products, hides and skins and textiles.
Report Insight: How Tanzania economy closed off 2020 (The Exchange)
Tanzania central bank last week produced a monthly economic review for December 2020, which depicted rather a range of issues, for instance on revenue performance being broadly in line with the 2020/2021 target. This fruitful sector of the economy saw a mix of performances as some traditional exports did well compared to others. Cloves, nuts and cotton exports increased compared to tea and sisal – which declined due to the low price and volume of production. “The value of exports of goods and services amounted to USD 8,839.9 million in the year ending November 2020, lower than $ 9,460.8 million in the year ended November 2019, explained by the decline in services receipts. On monthly basis, the value of exports of goods and services was $836.5 million in November 2020 compared with $857.2 million in November 2019. The value of traditional exports increased to $ 826.1 million in the year ending November 2020 from $ 745.1 million recorded in the corresponding period in 2019, owing to an increase in export values of cashew nuts, cloves and cotton” the report noted. According to the report, imports bill for goods and services declined to around $8.9 billion in the year ending November 2020 from $ 10.5 billion in the corresponding period in 2019, which is largely by a decrease in imports of capital and intermediate goods. The report attributed the decrease to transport equipment and oil. “The value of oil imports, which accounted for 17.1 per cent of goods import declined by 28.8 per cent to $1.3 billion owing to a decrease in both price and volume,” the report noted. Tanzania economy is projected to grow at a pace of 5.5 per cent, slightly off the 7 per cent anticipated earlier, due to various reasons including COVID-19 shocks.
Malawi’s NBS Bank launches ecommerce platform and online payment gateway with Network International (Africanews)
NBS Bank, a leading commercial bank in Malawi, launches its state of the art e-commerce platform, powered by Network International (www.Network.ae), the leading enabler of digital commerce across Africa and the Middle East. The implementation of Network International’s N-GeniusTM Online payment gateway will enable NBS Bank to offer Malawian small and medium enterprises (SMEs), large corporations, public institutions and individuals a fast and secure way to enter the rapidly growing e-commerce market in Malawi. With the capability to enable digital commerce transactions for merchants and public organizations through the N-Genius™ Online payment gateway, NBS Bank and Network International will help drive Malawi’s goal of becoming a cash-lite economy.
Ethiopia to Attain Wheat Import Substitution Soon (Ethiopian Herald)
The summer wheat irrigation projects undergone in 12 woredas of Amhara state and 21 woredas of Oromia state are expected to realize import substitution soon, said Ministry of Agriculture. In an exclusive interview with The Ethiopian Herald, the Ministry of Agriculture Wheat Irrigation Project Coordinator Daniel Muleta (Ph.D.) said that in the highland parts of the country following the harvesting of rainy season’s crops, summer wheat irrigation projects are to be in effect. Currently the nation imports 17 million quintals of wheat from abroad and the nation has the potential not only to substitute but also to export as there is vast areas of land suitable for wheat production both in the high and low lands of the country.
Egypt’s pres. asserts full support to activation of African Continental Free Trade Area (Egypttoday)
After it has gone into effect earlier this month, the chief of the African Continental Free Trade Area (AfCTA) Wamkele Mene met with President Abdel Fatah al-Sisi in Cairo Sunday. The president affirmed Egypt’s full support to the activities of the AfCTA stipulating Egypt is ready to provide expertise needed for the work of the agreement. The president underlined that stability is crucial for creating a suitable environment for the success of the pact.
ITFC provides trade funding to Egypt | ALB Article (ICLG.com)
The International Islamic Trade Finance Corporation (ITFC) has agreed a new programme which will provide USD 1.1 billion to Egypt in the form of integrated trade solutions. The ITFC, part of the Islamic Development Bank Group (IsDB), previously provided USD 3 billion to Egypt in a programme that ended in 2018. That funding was intended for food commodities, crude oil and petroleum, as well as to strengthen value chains, help the growth of small and medium-sized enterprises (SME) growth and develop trade.
South Africa has to sail muddy waters of confusion over exports after Brexit (Daily Maverick)
The sprawling metropolis of East London has a population roughly equal to the population of São Tomé and Príncipe – just above 200,000 in both cases. São Tomé and Príncipe (two islands, but one country) account for half the African countries with which the Southern African Customs Union has implemented the African Continental Free Trade Area. The other half is Egypt. Now this might be disappointing, given the exuberant media coverage saying we have implemented the African Continental Free Trade Area (AfCFTA). Fifty-four of the 55 African Union members have signed the agreement and, at last count, 34 have deposited their instruments of ratification. Although Minister of Trade and Industry Ebrahim Patel has “called on South African farmers and manufacturers to gear up for the new opportunities in export markets”, it is by no means clear which markets he had in mind when he made this statement.
UK-Africa conference to boost Zim industry (The Herald)
When President Mnangagwa announced on November 24, 2017 that Zimbabwe would pursue an engagement and re-engagement drive to establish and re-establish good relations with all countries of the world, many people thought it was empty talk. But the President said his administration would “hit the ground running”, and indeed, no time was wasted. The efforts to re-engage are already bearing fruit and the invitation to participate in the virtual Africa Investment Conference scheduled for this Wednesday is testimony to that. The conference is organised by the UK’s Department for International Trade and Zimbabwe joins 35 other African countries in the key conference that is expected not only to raise Zimbabwe’s profile on the international arena, but also expose captains of industry to potential markets and sources of funding.
Benin/Nigeria: Trouble continues at the border (The Africa Report)
Aurélien Agbénonci, Benin's foreign affairs minister, complained to his Nigerian counterpart, Geoffrey Onyeama, that goods are still being blocked at the border of the two countries, despite Abuja announcing its reopening almost a month ago. So far, no official complaint has been made. However, according to our information, Agbénonci used the opportunity of President Nana Akufo-Addo’s swearing in ceremony on 7 January in Accra to question his Nigerian counterpart Onyeama. Although the Nigerian authorities have announced the reopening of the borders with the country’s four neighbours (Benin, Niger, Chad and Cameroon), in reality, only pedestrians and light-duty vehicles can – legally – cross the border between Benin and Nigeria. The announcement of the closure, in August 2019, had been very badly received by the Beninese authorities, who had not been consulted beforehand. Once again, the reopening was decreed without prior consultation, according to Talon’s government.
Benin’s Q3 exports up 1.7 pct amid COVID-19 pandemic (CGTN)
Despite the COVID-19 impacts on Benin’s economy, Benin’s foreign trade volume in the third quarter of 2020 experienced a slight increase compared to the previous quarter, according to the quarterly bulletin of foreign trade statistics released on Saturday in Cotonou. Benin’s merchandise exports increased by 1.7 percent during the third quarter of 2020, valued at 114.70 billion CFA francs (abo
Mining industry to support SA’s Covid-19 vaccine rollout (TimesLIVE)
SA’s mining companies will support the government in the rollout of Covid-19 vaccines as the nation battles a surge in infections, the industry body said on Friday.
The Minerals Council, which represents mining firms, said its members are developing plans to use the sector’s health-care infrastructure and delivery capability to accelerate the vaccination programme, but did not provide further details. “While government is primarily responsible for funding the vaccine rollout and is the single buyer, the industry can play a material role in accelerating the vaccination programme on mines and in mining communities,” said Minerals Council CEO Roger Baxter.
News from Africa
African Business Council Applauds the Start of Trading on the Basis of the AfCFTA (African Union)
On 1 January 2021, at the launch of the start of trading on the basis of the AfCFTA, the Pan-African Private Sector, under the umbrella body of the African Business Council (AfBC), issued a press statement in support of this initiative. In it, the AfBC acknowledged that the start of trading under the AfCFTA presents enormous business opportunities for the Pan-African Private Sector, SMEs, Women and Youths as the continent takes this bold move towards Boosting Intra-African Trade. “The AfCFTA gives us an opportunity to drive our agenda. For many years, the African business community has been individualistic in driving the continent’s agenda. It is an opportunity for us as the African Business Council to come together and support the implementation of the AfCFTA. We are a united voice, and we can do this together”, Dr. Amany Asfour, Interim Chair Person of the African Business Council.
“The proliferation of Non-Tariff Barriers in Africa has often hindered intra-Africa trade. It is difficult to move cargo among African countries, and the online system on the Monitoring, Reporting and Elimination of Non-Tariff Barriers (www.tradebarriers.africa) will assist in the implementation of the AfCFTA”, Ms. Amina J. Mohammed, Secretary General of the United Nations.
Figure of the week: Momentum in trade going into the AfCFTA era (Brookings)
Trading under the African Continental Free Trade Area (AfCFTA) commenced just two weeks ago. Many academics, policymakers, and business leaders are hopeful that, if implemented appropriately, the landmark trade agreement could further bolster efforts toward regional integration and spur economic growth across the region more broadly. The region does enter the agreement with great momentum around trade: Exports have grown by nearly a factor of four since 1995. Notably, while South Africa and Nigeria remain sub-Saharan Africa’s largest exporters, the export landscape beyond these two countries has changed dramatically in recent years (Figure 1). As Africa begins the AfCFTA era, it will try to harness the momentum it has displayed in trade the last few decades, though bottlenecks around infrastructure and other nontariff barriers still threaten its overall success.
African Continental Free Trade Agreement: Red tape delays start of trading under new pact (Daily Maverick)
Trading under the African Continental Free Trade Agreement (AfCFTA), the ambitious continent-wide free trade agreement which has been signed by 54 of Africa’s 55 states officially began on January 1. But Pretoria says no goods have yet been exported or imported under its zero or reduced import tariffs. That is because all the necessary red tape has not yet been cleared away by all member states. There has been some confusion about this, with official indications that South Africa, Egypt and Ghana had begun trading. But it turns out that while these countries have put in place the necessary customs procedures to start trading, they have not cleared other bureaucratic obstacles to do so.
Stakeholders list AfCFTA gains in agricbusiness despite $73b infrastructure gap (Guardian)
Although Sub-Saharan Africa requires massive investment, with over $73b needed on irrigation and storage infrastructure alone to unlock potentials of agricultural sector, some stakeholders, yesterday, said with the right policies, the African Continental Free Trade Agreement (AfCFTA) may address existing barriers to agricbusiness and limit the continent’s vulnerability from excessive import of agric produce. Currently, Africa barely trades with itself. Just 16 per cent of African exports are destined for other African countries, which is considerably less than 59 per cent of trade within Asia and 68 per cent within Europe, due to high tariff and infrastructure bottlenecks.
African Union offers region access to COVID-19 vaccine supply (Jamaica Observer)
The Caribbean Community (Caricom) has been offered access to approved COVID-19 vaccines from a shipment recently secured by the African Union. Barbados Prime Minister Mia Mottley announced Thursday that regional leaders will have two weeks to decide whether they will accept the offer. Updating the country on the COVID-19 situation, Mottley said the African Union recently secured 270 million vaccine doses from Pfizer, AstraZeneca, and Johnson & Johnson – which will be made available this year, with at least 50 million available April to June – for its member states to supplement the COVID-19 Vaccines Global Access Facility (COVAX Facility) that is also being used by Caricom nations. She disclosed that she was contacted by the coordinator of the African Medical Supplies Platform on Wednesday, with the news that some could be accessed by Caricom.
Crowd funding: A case for innovative retooling strategies towards increased trade under AfCFTA (NewsDay)
Zimbabwe can be said to have turned the corner, from a hopeless case three years ago, to one of the most promising economies in the sub-region. As confirmed by one of Zimbabwe’s leading economists, Eddie Cross in an interview on ZBC-TV, the Transitional Stabilisation Program (TSP) provided firm ground for growth through righting macro-economic fundamentals such as a stable exchange rate, receding inflation and much needed economic reforms like ease of doing business, consumer protection laws and more. With these fundamentals firmly in place, focus is now on consolidating these gains under the National Development Strategy One (NDS1). Thus, this submission proposes, if not already under implementation, a homegrown funding mechanism for Zimbabwean businesses based on co-operation and guided by the country’s national interest and vision which are tied to the United Nations Millennium Development Goals (MDGs) as well as the AU’s Agenda 2063.
A giant step for Africa (The Southern Times)
The recently consummated African Continental Free Trade Area (AfCFTA) will need more than just the signatures of the continent’s 55 political leaders to work, Namibian political scientist and international relations expert Dr Ndumba Kamwanyah says. Speaking to The Southern Times this week, Dr Kamwanyah said while operationalisation of the AfCFTA was a historical moment for Africa, for it to be meaningful in the long run required better synchronisation of economic systems and a deliberate push towards value addition. He added that there African countries should urgently start diversifying their economic bases.
Why 2021 Could Mark the Dawn of a New Era for Africa (Foundation for Economic Education)
The African Continental Free Trade Area (AfCFTA) came into force on 1 January, 2021. Once it becomes fully implemented and operational by 2030, the AfCFTA could be the world’s biggest fully-realized free-trade zone by area. The bloc has a potential market of 1.3 billion people and a combined gross domestic product of $2.5 trillion. This moment should be celebrated as the AfCFTA could portend a new era of African openness, co-operation, trade, progress and innovation. According to the African Export-Import Bank, the AfCFTA could boost intra-African trade to 22 percent of total trade, up from 14.5 percent in 2019. If African countries are to step up the maturing of their industries and wider economies, they need more goods to flow – and the added expertise and insights of various businesspeople and manufacturers will also increase once it is easier for them to move between different countries. According to Alexander C. R. Hammond, “when African states trade with one another, the goods traded are almost three times more likely to be higher-valued manufactured products, when compared to the goods that leave the continent.” At the time of writing, all but one of the 55 African Union nations have signed to join the area, and more than half have ratified the accord. Through implementing the AfCFTA swiftly and effectively, the continent could set itself apart as a prime destination for investment and innovation.
Need to look at AfCFTA from a gender lens (Chronicle)
Little has been said about the implications of AfCFTA on men and women, bringing the need to look at it from a gendered lens. Women play multiple roles in economies as tax payers, traders, producers, workers and as providers of care for the entire labour force. The AfCFTA must not just be looked at as a trade agreement and something for corporates and industry, it must be viewed as an instrument for development intended to lift 100 million Africans out of poverty by 2035. The AfCFTA presents immense opportunities to tap into the talents of young Africans and women to ensure inclusive benefits. To ensure its success as one of the greatest developments of the 21st century on the continent, the AfCFTA must be inclusive in design and implementation.
AfCFTA: How Intellectual Property laws can help create jobs (Africa Renewal)
In international trade, the most-favored-nation (MFN) clause requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other World Trade Organization member countries. Although its name implies favoritism toward another nation, it denotes the equal treatment of all countries. On the other hand, the national treatment clause forbids discrimination between a Member’s own national and also the nationals of the other Members Second, the IP protocol should leverage on already existing regional IP regimes, such as ARIPO and OAPI, in order to streamline the continent’s IP policies. [Africa has two regional patent systems, OAPI (Organisation Africaine de la Propriété Intellectuelle or African Intellectual Property Organization) and ARIPO (African Regional Intellectual Property Organization). Even though the larger African economies of South Africa, Nigeria and Egypt do not form part of the regional systems, the OAPI and ARIPO system provide a relatively cheap, easy and effective way of extending IP protection to a total of 35 African countries with a combined nominal GDP of $420 billion]. These institutions should be accorded support for effective implementation of the policies.
OP-ED: Africa’s Covid-19 response has been admirable, but the economic costs will linger for years (Daily Maverick)
The economic impacts of Covid-19 for Africa are expected to cause the first recession for the continent in 25 years, threatening to undo years of economic progress. Government interventions to combat the virus have been effective from a public health perspective, but they are not economically sustainable. This column draws on the findings of a report authored by a team of researchers at Columbia University and the Brenthurst Foundation. The report identifies common successes and challenges in responses to Covid-19 in five African economic and cultural hubs – Egypt, Ethiopia, Kenya, Nigeria and South Africa; it also outlines optimal pathways for economic recovery and bolstering future epidemic preparedness in the five countries and Africa as a whole. The report’s findings were presented on 12 January at the Futures Forum on Preparedness, a two-day event focused on global health security hosted by the philanthropic organisation Schmidt Futures.
African Union vaccines to be allocated according to population - AU Chair Ramaphosa (The South African)
Coronavirus vaccine doses secured by the African Union (AU) will be allocated according to countries’ population size, President Cyril Ramaphosa said Friday, speaking in his capacity as AU chair. He said vaccines from Pfizer, Johnson & Johnson, and AstraZeneca would be available this year, but did not specify how much each African country would get. “The Africa CDC has already worked out the allocations that each country will be able to get, and the allocation is going to be worked on the size of your population,” Ramaphosa said, referring to the AU’s Centres for Disease Control and Prevention (CDC).
SADC welcomes AfCFTA launch (The Southern Times)
Southern African Development Community (SADC) members have welcomed the launch of the African Continental Free Trade Area (AfCFTA). AU Chairperson Mr Cyril Ramaphosa, who is the President of South Africa, said the AfCFTA heralded a new era of African integration, development and progress. “Importantly, it will enable African countries to benefit from their own natural resources and reduce their dependence on countries outside of the continent for manufactured goods and services,” he said. SADC Executive Secretary Dr Stergomena Tax said establishment of the AfCFTA was a key milestone in the integration agenda and was a huge step towards realisation of the founding forefathers’ dream of a united, and prosperous Africa. “As a regional economic community and one of the eight pillars of the African Union, SADC has made tremendous progress in its integration agenda and across all the eight dimensions of integration,” she said.
The Southern African Development Community (SADC) has adopted a new Labour Migration Action Plan (2020-2025) as part of efforts to promote skills transfer and match labour supply and demand for regional development and integration. The Action Plan, adopted through the Employment and Labour Sector in the Region, is in line with Article 19 of the SADC Protocol on Employment and Labour, which seeks to protect and safeguard the rights and welfare of migrant workers, to give them better opportunities to contribute to countries of origin and destination.
Africa is set to roll out its Single Passport this year (KeTurboNews)
African passport is the flagship project of the 2063 Agenda aiming to remove restrictions on Africans’ ability to travel, work and live within their own continent Single passport for all African nations is set to be introduced this year as the continent is forging its way to easing movements of people and goods within its internal boundaries. Single passport for Africans is a declaration of the Africa Union Agenda 2063 seeking to integrate the continent’s business and politics based on Pan-Africanism and the vision of Africa’s Renaissance.
The African Union Passport is currently available to government leaders, diplomats and AU officials only. Reports from South Africa said that the passport is set to be rolled out this year as an implementation of the African Continental Free Trade Area (AfCFTA).
AfCFTA: President Buhari, 9 others receive award for contribution to agreement (Nairametrics)
AfCFTA has awarded President Buhari alongside other African leaders for their contributions to the success of the agreement. President Muhammadu Buhari was awarded for his contributions to the start of the African Continental Free Trade Agreement (AfCFTA), alongside 9 other African leaders including Nigeria’s Dr Akinwumi Adesina, President, African Development Bank (AfDB). The awards were presented by the African Union in a virtual event held at the Union Headquarters in Addis Ababa, Ethiopia on Friday.
The economic shock associated with the COVID-19 pandemic struck when the economic outlook for the region was improving. Tight regional policies helped maintain an improved external position in 2019. The current account deficit shrank to 2.5% of GDP, and external reserves increased. Fiscal balances remained broadly unchanged from 2018 at -0.3 percent of GDP, bringing public debt to 52 percent of GDP. Overall regional growth was 1.9 percent in 2019. While the pandemic seems to be under control in the region at the moment, the related oil price shock led to a sharp deterioration of fiscal and external balances in 2020. CEMAC is expected to experience a 3 percent recession in 2020. The current account deficit is expected to worsen to 6.5 percent of GDP, and external reserve coverage to remain at 3.5 months of imports of goods and services. The fiscal deficit would deteriorate to 3.8 percent of GDP, and public debt increase to 57 percent of GDP. The shock is set to have long-lasting effects on the economic outlook for the CEMAC. With lower medium-term oil prices, the outlook projects that CEMAC’s fiscal and external adjustments will be slower than previously envisaged, and risks are tilted to the downside. Growth is expected to rebound in 2021 to 2.7 percent and continue to pick up gradually to around 3.5 percent in the medium term, as reforms to improve governance and the business climate are assumed to slowly take hold. The region is at a critical juncture, as the second phase of the regional strategy is about to begin. CEMAC’s regional institutions and the national authorities should aim to radically transform the region by implementing governance, transparency and business climate reforms that will lay the basis for a diversified, inclusive and sustainable growth.
COVID-19 Pandemic: Impact of Restriction Measures in West Africa - Benin (ReliefWeb)
This document analyses the impact of COVID-19 and the restrictions measures that were put in to place to contain the pandemic, in the ECOWAS region. It is based on a review of the epidemiological and the socioeconomic analysis of primary and secondary data (implemented through a household web-survey covered 15 countries). The current report will demonstrate how the rate of the spread of COVID-19 and the restriction measures taken, are straining the economic and social system of ECOWAS States. Several factors of vulnerability and socioeconomic fragility facing the region could exacerbate the effects of the health crisis. In particular, the region is characterized by: (i) poorly diversified economies focused on exports of primary products; (ii) limited fiscal space; and (iii) a large informal sector. The region is strongly affected by the contraction of world trade, causing a sharp fall in the prices of several export products such as oil, minerals and some agricultural products. In 2020, although still subject to strong uncertainty, forecasts predict a sharp deterioration in the current account deficit for ECOWAS as a whole, which is expected to stand at 4.3% against 2% in 2019.
Push for renewables: How Africa is building a different energy pathway (Africa Renewal)
Mr. Adnan Amin, the director-general of IRENA, says a lot of countries in Africa are increasingly embracing renewables as an enabler to leapfrog to sustainable energy future. “As a promising sign of things to come, several African countries have already succeeded in making steps necessary to scale up renewables, such as adoption of support policies, investment promotion and regional collaboration,” Mr. Amin said at the 9th Session of the agency’s Assembly, held in Abu Dhabi last year. According to the International Renewable Energy Agency, countries like Egypt, Ethiopia, Kenya, Morocco and South Africa have shown firm commitment towards accelerated use of modern renewable energy and are leading energy transition efforts, while some of Africa’s smaller countries including Cape Verde, Djibouti, Rwanda and Swaziland have also set ambitious renewable energy targets. Others are following suit, and renewable energy is on the rise across the continent.
Maersk calls for military action over surge in piracy off West Africa (BusinessLIVE)
The world’s biggest shipping company demanded a more effective military response to surging pirate attacks and record kidnappings off the coast of West Africa. The number of attacks on vessels globally jumped 20% in 2020 to 195, with 135 crew kidnapped, the International Maritime Bureau’s (IMB’s) piracy reporting centre said in a January 13 report. The Gulf of Guinea accounted for 95% of hostages taken in 22 separate instances, and all three of the hijackings that occurred, the agency said. “It is unacceptable in this day and age that seafarers cannot perform their jobs of ensuring a vital supply chain for this region without having to worry about the risk of piracy,” said Aslak Ross, head of marine standards at Copenhagen-based Maersk. “The risk has reached a level where effective military capacity needs to be deployed.”
Global economy
The BRICs at 20 | by Jim O’Neill (Project Syndicate)
Much has happened in the two decades since the BRICs (Brazil, Russia, India, and China) became a group to watch in the twenty-first century. While some of them have surpassed expectations, others have fallen short, as have the relevant global-governance institutions. This November will mark the 20th anniversary of the BRIC acronym that I coined to capture the economic potential of Brazil, Russia, India, and China. Many commentators will be revisiting the concept and assessing each country’s performance since 2001, so here are my own thoughts on the matter. What the world really needs is what we called for back in 2001: genuinely representative global economic governance. Let us hope there is a renewed desire to take this path under the new US administration.
China’s Debt Grip on Africa | by Paola Subacchi (Project Syndicate)
The pandemic is confronting highly indebted poor countries with a fateful dilemma. As Ethiopian Prime Minister Abiy Ahmed, a Nobel Peace Prize laureate, lamented last April, leaders have been forced to choose whether to “continue to pay toward debt or redirect resources to save lives and livelihoods.” And when they choose the latter, it is often China – Africa’s biggest bilateral lender – to which they have to answer. According to Ahmed, a moratorium on debt payments was essential to enable Ethiopia to respond to COVID-19. Such a moratorium would save Ethiopia – one of the world’s poorest countries – $1.7 billion between April 2020 and the end of the year, and $3.5 billion if extended to the end of 2022. An effective COVID-19 response, he noted, would cost $3 billion.
China’s financial aid to Africa switches focus to grants, white paper shows (South China Morning Post)
A new white paper released by the State Council Information Office in Beijing provides a glimpse into Chinese aid to Africa and other emerging economies. According to the report, titled “China’s International Development Cooperation in the New Era”, Beijing has “steadily increased the scale and further expanded the scope of its foreign aid”. The last such paper was published in 2014 and covered the 2010-12 period. “The establishment of such a specialised agency represents a milestone in China’s foreign aid journey,” the report said, adding that Beijing would “give US$2 billion of international aid over two years to countries hard hit by Covid-19, especially developing countries, to support their fight against the virus, and efforts to resume economic and social development”.
Global Trade’s Annual Logistics Planning Guide Can Put You In The Power Position Again (Global Trade Magazine)
For a supply chain to truly function well it needs to be flexible, operating under a ‘bend but don’t break’ principle that allows it to scale to needs and to be maneuverable enough to escape blockages and delays along the route. Much like a muscle, however, this is fairly unlikely to simply come naturally. It takes preparation, training, and stretching to build a muscle into something with the capacity and flexibility to go through rigorous moments of endurance or sprinting. This analogy begins a follow-up report on the Supply Chain USA Virtual Summit 2020 by Alex Hadwick, editor-in-chief for Supply Chains with Reuters Events, which presented the online event in partnership with ABBYY, a digital intelligence company.
Hadwick discovered that numerous experts from across the supply chain space agreed that critical lessons must be learned from the disruption of 2020 as well as broader industry trends. Pery, the process intelligence expert at ABBYY, contributes the summit follow-up’s conclusion: “It’s evident no matter which stage of the supply chain logistics providers serve, having good process workflow and visibility into the specific events, activities, and people involved with each step is critical to successfully completing the last mile and delivering a positive customer experience.” He and Hadwick before him take deeper dives into each of the sections presented above. If you would like to read their full report, visit https://1.reutersevents.com/LP=29531.
Air travel down 60 per cent, as airline industry losses top $370 billion: ICAO (UN News)
The International Civil Aviation Organization (ICAO) said on Friday, that as seating capacity fell by around 50 per cent last year, that left just 1.8 billion passengers taking flights through 2020, compared with around 4.5 billion in 2019. That adds up to a staggering financial loss to the industry of around $370 billion, “with airports and air navigation services providers losing a further 115 billion and 13 billion, respectively”, said ICAO in a press statement.
Closing the Infrastructure Gap (Swiss Re)
COVID-19 is exposing the urgent need for better health infrastructure in EMDEs
after the worst subsides, it will be vital that governments work to close their infrastructure investment gaps. The lesson from previous crises is that governments must guard against rushing to build lower-quality, more expensive, higher-carbon, and less resilient infrastructure assets. Instead, they have an exceptional opportunity to launch green stimulus packages that prioritise sustainable infrastructure designed to mitigate the next public health crisis, bolster long-term economic growth after COVID-19, and adapt to the effects of climate change.
World is warming up to China for trade. But India is left with just a handful of minilaterals (The Print)
as countries scramble to find new partners and new trade pacts in the wake of Covid, India is looking at a future where there is no China because of border tensions, and instead has lined up a few minilaterals whose outcomes are unknown. It seems that China is able to impose itself as a critical business partner even at a time when countries have been grouping up against its increasing belligerence under the Xi Jinping administration. India has been a rare exception in maintaining a consistent stance against China in terms of trade, blocking Chinese investment in April last year and walking out of the RCEP in November 2019. This stance has been bolstered by the Ladakh standoff. What it means is that while leading countries that are part of the large-scale and complex global value chains and supply networks have begun to find ways to do business with China, India will be the only country to be left out of all such trade and economic blocs or groupings.
Global Economy to Expand by 4% in 2021; Vaccine Deployment and Investment Key to Sustaining the Recovery (World Bank)
The global economy is expected to expand 4% in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year. A recovery, however, will likely be subdued, unless policy makers move decisively to tame the pandemic and implement investment-enhancing reforms, the World Bank says in its January 2021 Global Economic Prospects. “While the global economy appears to have entered a subdued recovery, policymakers face formidable challenges—in public health, debt management, budget policies, central banking and structural reforms—as they try to ensure that this still fragile global recovery gains traction and sets a foundation for robust growth,” said World Bank Group President David Malpass. “To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labor and product market flexibility, and strengthen transparency and governance.” Sub-Saharan Africa: Economic activity in the region is on course to rise by 2.7% in 2021.
WTO, OECD launch dataset on bilateral trade in services (World Trade Organisation)
The WTO and the Organisation for Economic Co-operation and Development (OECD) on 13 January jointly launched a new dataset covering bilateral services trade of over 200 economies from 2005 to 2019. The WTO-OECD Balanced Trade in Services (BaTIS) dataset, which provides detailed data for 12 services sectors in addition to total commercial services, offers a complete and balanced matrix that reconciles previously asymmetrical export and import data. At present, bilateral data are available for less than 70% of world trade in services. For individual services sectors, data coverage can be much lower. The BaTIS experimental dataset, which uses both official statistics and estimates for missing data, provides users with a complete and balanced matrix covering virtually all economies in the world.
Creative economy to have its year in the sun in 2021 (UNCTAD)
After a year of pandemic-induced lockdowns, there couldn’t be a better time to appreciate the creative economy. The United Nations is doing just this as it marks 2021 as the International Year of the Creative Economy for Sustainable Development. As the coronavirus pandemic closed traditional areas of life, many people took up a craft, read books, watched endless series and films, connected to digital concerts, or shopped online for the latest fashion. They helped sustain the creative economy, which is finally having its day – or more accurately, year – in the sun.
India, South Africa proposal for TRIPS waiver to be taken up again at WTO (BusinessLine)
India and South Africa’s proposal for a temporary waiver in Trade Related Intellectual Property Rights (TRIPS) provisions to ensure free flow of medicines, vaccines and medical equipment between countries during the ongoing Covid-19 pandemic will come up for discussion once again at the World Trade Organisation (WTO) this week. “The General Council of the WTO could not arrive at a decision on a waiver before the year-end break as many countries opposed it while several others wanted it to be implemented. It will hopefully be able to take the matter forward now given the fact that the proposed waiver has been supported by several civil society and intergovernmental organisations,” an official tracking the development told BusinessLine.
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National
Aviation industry anxious as COVID-19 resurgences force new travel bans (The South African)
With a host of countries – mainly across Europe – announcing over the weekend that they have now banned air travel due to the wave of COVID-19 infections stemming from a rampantly spreading mutation of the virus, the future of South Africa’s tourism and aviation industries are yet again in serious jeopardy. Six nations – including Germany and France, countries where many of SA’s regular tourists hail from – have imposed restrictions on flights from South Africa, as of 10:30 on Monday 21 December and two others have issued an outright ban on all travellers entering from our shores.
Flower firms call for expedited review of the minimum wage bill (New Vision)
Workers in flower firms have called for expedited review of the Minimum Wage Bill as means of protecting workers from exploitation. The bill which was passed by parliament in 2018 suffered a setback when the president declined to ascent to it. “All along, we have been pulling ropes with the union but the introduction of floor wage made the union lose words since what they were agitating for was much lower than what was introduced and being paid to workers currently,” she said.
Ugandan dairy industry reels from Kenyan ban (Business Daily)
That Kenya is a lifeline for the dairy industry in Uganda is not in doubt. Therefore, when Kenya slapped the Mbarara based Lato Milk with an import ban early in the year, the effects were devastating for farmers in the neighbouring state. After several complaints by Kenyan farmers over the influx of Ugandan milk, which had seen a litre touch the historic low of Sh17, the government reacted by confiscating thousands of tonnes of milk from Uganda and consequently stopping imports. The move did not only cause an uproar in Uganda, but also saw hundreds of workers in Pearl Dairies, the makers of Lato Milk sent on leave with production at the firm cut to bare minimum.
Fintech stakeholders want national payments systems law reviewed (New Vision)
Despite Uganda passing the National Payments Systems (NPS) Act in May to regulate electronic money service providers, stakeholders are opposing the law, saying it will stifle innovation. The sticky issue that Financial Technology companies (Fintechs) are opposing is the minimum paid-up share capital requirement which they say is stringent and might push many startups out of the market. Speaking during the 2020 Digital Impact Awards Africa at Hotel Mestil in Kampala on Friday, the Mallan Company chief executive officer, Malcolm Kastiro, said that “With all that minimum paid-up capital share capital, where is fair competition? This is creating a barrier to entry; we need to ensure that this regulation does not stifle the sector.”
Uganda issues tough guidelines to avoid congestion at main international airport (CGTN Africa)
Uganda’s civil aviation authority (UCAA) has released guidelines to reduce crowding at the main international airport in Entebbe amid concerns over rising coronavirus cases in the East African nation. While noting that the airport had witnessed an increase in human traffic, the UCAA said all arriving and departing passengers will be picked or dropped by a maximum of two people, including the driver of the car, to avoid unnecessary crowding.
Indecision, hard ball tactics blow to Uganda’s oil dream (The East African)
Even as Uganda waits for the final investment decision for its oil project expected this month, years of indecision by government have cost the country and major investors billions of dollars over the past decade, based on the current price of oil. By press time, the indecision continued as Ministry of Energy had not received any signal that Total would submit Final Investment Decision proposals, as scheduled, Permanent Secretary Robert Kasande said. Uganda discovered oil in 2006, but dithered on oil production, with costly delays over the choice of a route for the crude oil pipeline, as well as years of haggling between the government and oil companies over the economics of a large refinery vis-à-vis a pipeline as a more feasible plan for commercialisation of the resource.
Tanzania to resume oil, gas negotiations in 2021 (The East African)
The Tanzania Petroleum Development Corporation (TPDC) is optimistic that the Host Government Agreement (HGA) negotiations between the government and International Oil and Gas Companies on the liquefied natural gas will resume in January 2021. This is after they stalled for about a year following the government’s decision to review Production Sharing Agreements (PSAs). According to reports, Tanzania is seeking to scrap sections on the contract that seem tilted against it. The government and project developers were initially expected to have concluded the negotiations by September 2019, a key decision that could pave the way to the final investment decision to be made.
Spare SMEs from paying turnover tax, says lobby (The Standard)
Manufacturers’ lobby has warned that the move to start taxing small businesses turnover tax will have a huge impact on their business operations. The Kenya Association of Manufacturers (KAM) now wants the minimum tax abolished or suspended, until when effects of the Covid-19 pandemic, which has affected the economy, is managed. The manufacturers argue the introduction of the minimum tax will hurt the economy and reduce Kenya’s attractiveness to investors. “Introduction of a new tax based on turnover will hurt a company’s financial well-being such as creating cash flow constraints,” noted the manufacturers’ body.
China dominates Namibian exports The Southern Times)
Sino-Namibia trade relations are at an all-time high following increased exports from the Southern African country to the Asian giant. Figures from the Namibian Statistics Agency (NSA) for the last quarter of 2020 also show that the country’s trade with fellow SADC members is on an upward trend. China is Namibia’s largest export market, while South Africa is the number one source of Namibia’s imports. The NSA said China, South Africa, Botswana and Zambia continued to be Namibia’s major trading partners. The agency said the composition of goods exported to China mainly consisted of non-ferrous metals, metalliferous ores and metal scrap; as well as non-metallic mineral products and non-monetary gold.
Ghanian expert says AU must tap Chinese technology in AfCFTA implementation (CGTN)
The African Union (AU) must tap into Chinese technology to derive maximum benefits from the implementation of the Africa Continental Free Trade Area (AfCFTA) agreement next year, said Albert Fiatui, Executive Director for the Center for International Maritime Affairs (CIMA) in Ghana. Speaking with Xinhua, he observed that win-win cooperation between Africa and China will help Africa’s rapid economic transformation with the AfCFTA agreement coming into force. “Africa cannot trade with itself just alone and succeed, so Africa needs China as much as China needs Africa,” he said.
AfCFTA: CPC to leverage on implementation to turnaround ill-fortunes (Ghanaweb)
Cocoa Processing Company (CPC) Limited says it plans to leverage on the implementation of the African Continental Free Trade Area (AfCFTA) agreement come next year. The trade pact is expected to come into force on January 1, 2020 with Ghana serving as the host of the secretariat. According to a member of CPC’s management, the move has become necessary to reverse the ill-fortunes that have impacted on the operations of the cocoa processing company. “We have started rebranding our confectionary products to make ready for the AfCFTA market. We are also targeting entry into the Chinese market,” he is quoted in an interview with the B&FT newspaper.
Ghana to secure COVID-19 vaccines for population: president (CGTN)
Ghanaian President Nana Addo Dankwa Akufo-Addo said late Sunday preparations were afoot to secure COVID-19 vaccines for the country’s population. In his national COVID-19 broadcast, Akufo-Addo said he had put together a team of experts to work out a program for purchasing the vaccines now in use in some countries. Ghana “is not going to be left behind in having
MPS positions for AfCFTA as it builds capacity for ‘Tema Industrial City’ (Ghanaweb)
Meridian Port Services Limited (MPS) and EIFFAGE Génie Civil have reached an agreement to extend the original FIDIC Yellow Book Contract to include land works for the fourth new berth of the MPS Terminal 3 – which is part of Phase 2 of the Tema Port Expansion Project. Transhipment remains a key goal for ports in the region as West Africa still lacks a well-developed transhipment hub. “This state-of-the-art terminal and its enhanced capacity are purposely aimed at catering for the anticipated volumes increase that will come in as more shipping lines realise the added value that MPS Terminal 3 contribute to their market range and share of the West African trade volume,” said Mr. Mohamed Samara, MPS’ Chief Executive Officer.
Report Calls for Strategies to Nigerian Boost Export (THISDAYLIVE)
Despite the immense opportunities it presents to the economy, Nigeria currently lacks targeted and systematic strategies for exporting services. According to a report by the Centre for Trade and Development Initiatives (CTDI) titled: “Analysis of Potentials of Nigeria’s Services Sector for Economic Diversification, Employment and Foreign Trade”, which was commissioned by the PDF II Bridge Programme, there is need for a holistic services sector policy with strategic development plans for priority sectors. The report noted that the Nigerian Export Promotion Council (NEPC) currently directs the bulk of export promotional work to the goods sector largely sidelining the services potentials.
Why Buhari re-opened Nigeria’s land borders – Presidential source (Vanguaurd)
The harsh economic situation occasioned by the outbreak of the coronavirus pandemic and negative impact of the border closure on the private sector and the ordinary Nigerians made President Muhammadu Buhari to order the re-opening of shut land borders, a top Presidency source has revealed. “According to the report of a Presidential Committee which recommended the reopening of the border, one of the significant issues that stood out in the summary of the Committee’s findings and recommendations include the negative impact of the border closure on the private sector.
Related: Revealed: Negative Impact of Closures Forced Buhari to Reopen Borders
AfCFTA: Nigeria To Protect Home Industry, Implement Sugar Master Plan For 10 Years (Leadership)
The Nigeria Sugar Development Council (NSDC) has said that the take off of the Africa Continental Free Trade Agreement (AfCFTA) in January would not affect the Nigeria Sugar Master Plan (NSMP) as the country has already secured under the trade agreement , an allowance of 10 years to implement fully, the sugar master plan before it would start producing sugar locally. The Plan contains fiscal and investment specific incentives designed to stimulate and attract new investors to the industry in order to increase local sugar production and reduce the nation’s dependence on imports.
AfDB board approves $10.4 billion borrowing plan for 2021 | Nairametrics
Education Cannot Wait (ECW) has announced US$20.1 million in catalytic investment grants to accelerate the response to the protracted crisis in northeast Nigeria. According to ECW, this is in reaction to the armed conflict and escalating humanitarian crisis in northeast Nigeria, that has left over 1 million girls and boys in need of educational support. According to the organisation, the initial programme will run for three years, with the goal of leveraging an additional US$98.7 million in co-financing from national and global partners, the private sector and philanthropic foundations, to reach over 2.9 million children and youth.
Bring on AfCFTA, says Malawi (The Southern Times)
The Malawi government says it has put in place measures in readiness for the Africa Continent Free Trade Area (AfCFTA) as it rolls out on January 1, 2021. Trade Minister Sosten Gwengwe told The Southern Times Business that the country was committed to the historic agreement that creates one of the world’s largest ever free trade pacts. “As a ministry, with the help of the United Nations Economic Commission for Africa, we have formulated a strategy on national implementation of the AfCFTA. The strategy outlines mitigation measures on any possible impacts of the AfCFTA,” Minister Gwengwe said.
Liberian gov’t Launches Cash Transfer Program (The News Newspaper)
The Government of Liberia, in collaboration with USAID, has launched a COVID cash transfer program which is expected to benefit about 85,000 petty traders and market women across the country. US$150 will be disbursed to the most vulnerable in the Liberian society in three installments in an effort to cushion the effects of the global pandemic. “In the PAPD [Pro-poor Agenda for Prosperity and Development], we look at social protection as a valuable investment, particularly in vulnerable rural settings,” the statement quoted Finance Minister Samuel Tweah as saying at a virtual conference meant to launch the program.
GRA-Bissau Customs bilateral meeting ends (The Point)
Addressing the closing ceremony, Yankuba Darboe, commissioner general of GRA, expressed appreciation for the warm hospitality accorded to him and his delegation by his Bissau Guinean counterparts. “This signifies the good intention to make this collaboration a huge success. This is because we are one people in two different countries which is an opportunity for closer and excellent trade relations and the development of our region.” he added. Commissioner Darboe acknowledged that as close trading partners, there is an urgent need to enter into a tripartite agreement involving Senegal to minimise bottlenecks in the free movement of goods and people.
The trade between Morocco and the rest of Africa is on the rise since 2009 (Born2Invest)
Trade between Morocco and the rest of the African continent is doing well. That is confirmed by the 66th issue of Al Maliya magazine, published every four months by the Ministry of Economy, Finance, and Administrative Reform. Trade transactions between Morocco and the rest of Africa increased by 6.1 percent for the 2009-2019 period. Based on data from the Exchange Office, the document highlights that the share of this trade in Morocco’s overall trade volume is 5.1 percent in 2019. According to the same source, during this period, trade was marked by a structural change as of 2015, the year from which Morocco’s trade balance became in surplus.
Egypt’s trade deficit declines 32.4% in September 2020 (Daily News Egypt)
Egypt’s trade deficit decreased by 32.4% to $2.7bn in September this year, compared to $4bn during the same month in 2019, according to a report by the Central Agency for Public Mobilization and Statistics (CAPMAS). Exports also declined by 2.8% to $2.3bn in September 2020, versus $2.4bn in the comparison period. The monthly report attributed the decline to a decrease in prices of some commodities, such as garments by 5.1%, petroleum products by 36.5%, crude oil by 38.4%, and fertilisers by 33.4%. However, the value of other exports increased during September 2020, such as plastics in their primary forms by 15.2%, pasta by 17.8%, carpets by 23.6%, and pharmaceuticals by 4.9%.
Africa
Long way before Africa’s single market moves at full steam (Yahoo!)
Border controls between African countries can be arduous -- red tape, tariffs and other hurdles are a major discouragement to trade, say experts. Touted as the world’s largest single market in terms of the number of member nations, Africa’s ambitious blueprint for free trade kicks into gear on January 1, bringing together more than 50 economies from Algeria to South Africa. Jakkie Cilliers, head of African Futures and Innovation at the Pretoria-based Institute for Security Studies, says it will be a long way before tariffs are scrapped, red tape is slashed and much-trumpeted gains are realised.
Kagame: AfCFTA will rebuild economies and foster resilience (The New Times)
Collaborative action in the implementation of the African Continental Free Trade Area will support rebuilding of African economies following disruption by the Covid-19 pandemic and strengthen resilience to future shocks, President Paul Kagame has said. Kagame made the remarks while speaking at the Virtual AfCFTA Business Forum on Friday 4th December 2020. The summit was held as the continent prepares to commence trading under the new regime in January 2021 following postponement of the previous launch date, July 2020 as a result of the Covid-19 pandemic.
AfCFTA strategy to chart a path for lifting millions out of poverty in DRC (UNECA)
Experts attending the meeting to formulate the AfCFTA implementation strategy in the Democratic Republic of Congo (DRC) discussed a range of sectors that could help the country benefit from the agreement. The meeting to discuss the AfCFTA strategy was organized in Kinshasa by the UN Economic Commission for Africa (ECA) through its office for Eastern Africa in collaboration with the Ministry of Industry and the Ministry of Foreign Trade in DRC. ECA estimates large potential gains from the AfCFTA for Eastern Africa, including an increase in intra-African exports by over US$ 1 billion and the creation of nearly 2 million new jobs. DRC is well placed to take advantage of those new opportunities.
Related: Africa on threshold of dismantling colonial economic model with AfCFTA - Mene
Mr Wamkele MENE, Executive Secretary of the AfCTA Secretariat who addressed the meeting explained that if Africa must benefit from the agreement, greater attention must be geared towards stopping the colonial economic model of exporting primary commodities to Europe and the rest of the world. Mr Mene reminded participants that intra-African trade is very low. it is at 18% at best.
Strong case made for deepening agro-industrial value chains in Central Africa (UNECA)
The alarmingly high rates of food importation in Central Africa should be a phenomenon of the past, economists and agriculturalists argued Thursday. This, because all countries of the subregion are abundantly blessed with arable land and ecological zones favorable for animal protein production, necessary for developing strong agricultural value chains that should bring greater prosperity to the subregion in the context of the African Continental Free Trade Area (AfCFTA).
Covid drives contraction for African trade figures (IT-online)
The last two years haven’t told a good story for African trade, according to Afreximbank’s annual African Trade Report (ATR). This year’s report examined trade and economic developments in Africa in 2019, a year dominated by trade wars and escalating tariffs that resulted in a sharp deceleration of global trade growth. This has been compounded by Covid-19, and as a result, following a fall of 2,8% last year, global trade is expected to shrink by 9,2% in 2020. The ATR conducted an extensive study of informal cross-border trade (ICBT), the first attempt at measuring in a detailed manner the size and composition of informal trade.
Africa can finance its development but needs a paradigm shift (Sierra Leone Telegraph)
Africa faces its worst economic recession in 25 years, largely due to the COVID-19 pandemic. It is estimated that the continent’s economy will contract by 2.6% at worst, pushing about 29 million people into extreme poverty and causing 19 million job losses, while remittances to sub-Saharan Africa are likely to decline by 23.1% ($37 billion) in 2020 alone. Africa’s challenge is not the absence of liquidity or funds to finance development. Its problems are massive illicit financial flows that are draining funding capacity and the lack of ownership over natural resources, coupled with a whole narrative built around managing poverty instead of development, and depicting Africa as a poor continent in need of help from the international community. The continent’s leaders urgently need to look at new ways to finance development, or risk falling further behind.
IATF2021 Advisory Council Holds its 8th Meeting (Afreximbank)
The Intra-African Trade Fair (IATF2021), scheduled to take place in Kigali, Rwanda, from 6 to 12 September 2021, will enable stakeholders to share trade, investment and market information as well as trade finance and trade facilitation solutions designed to support the implementation of AfCFTA, boost intra-African trade and deepen and consolidate African economic integration. A Conference will run alongside the exhibition and will feature high-profile speakers and panelists addressing topical issues relating to trade finance, payments, trade facilitation, trade-enabling infrastructure, harmonization of trade standards, industrialization, regional value chains and investment.
The African Union Commission organized Virtually the 9th Industry Stakeholders Strategic Retreat (African Union)
The Department of Trade and Industry of the African Union Commissions (AUC) organized Virtually the 9th Industry Strategic Stakeholders Retreat to formulate, implement and harmonize industrial development policies on the continent. “We need to take steps to utilize such opportunities to drive a continental industrialization agenda utilizing mutually reinforcing and beneficial partnerships” Mr. Victor Djemba, Chief. UNIDO Regional Division – Africa said. “It must be appreciated by all of us… the impact of the COVID-19 has also provided us with an opportunity that needs to be harnessed”
‘Africa needs $9b to buy, administer Covid vaccine’ (The East African)
Africa needs $9 billion to vaccinate 780 million people over the course of two years, pan-African multilateral trade finance institution (Afreximbank) has said. The money is estimated to cover the cost of purchasing the vaccines and administering them to 60 per cent of the population. Two doses of the vaccine are required for full protection from the coronavirus .John Nkengasong, head of the Africa Centres for Disease Control and Prevention (Africa CDC), estimated in an article in the science journal Nature, that it could take until October 2021 to secure the total 1.5 billion vaccine doses needed to reach 60 per cent of the continent’s 1.3 billion people. The financing requirement, estimated at $9.1 billion will come from four sources; donors, country self-financing, the World Bank, and Afreximbank, said Prof Benedict Oramah, president of the Afreximbank.
Debt forgiveness will top the African agenda in 2021 (Mail & Guardian)
The year 2020 will, of course, be remembered for the Covid-19 pandemic. Many African countries have handled the public health effects of coronavirus well compared with neighbouring continents, with some 55 000 related deaths and 2 million recovered out of a population of just over a billion. This can be credited to quick action and leadership by the Africa Centres for Disease Control and Prevention (Africa CDC) and others. Climate, prior exposure to other coronavirus strains and effective community health networks set up in response to contain other epidemics such as Ebola also clearly played a role. Unfortunately, many African countries will be much more seriously affected by the socioeconomic consequences of the global economic slowdown triggered by the pandemic.
Sub-Saharan Africa: Riskiest investment region (Africanews)
Sub-Saharan Africa has been named riskiest region in the world for business and investors due to militant violence and abuses by security forces, according to new report by risk consultants Verisk Maplecroft. Wilson Khembo, Director for “Seven Oaks Road” a political and security risk consultancy firm in West Yorkshire, England tells our Ignatius Annor that “Africa needs foreign direct investment that can be pumped into manufacturing, investment that can be pumped into infrastructure development. If we are able to get this sort of investment, then obviously we’ll be able to diversify our exports and increase our global share on the global market. For investors to come to Africa and invest their money, they need to be assured that their investment is going to be safe.”
Harvesh Seegolam: Opening of the informative session on the MauCAS and the SADC and COMESA cross-border payment systems (Bank for International Settlements)
Regional payment systems enable settlement of cross-border transactions faster without having to rely on intermediary banks outside the region. This offers several advantages to countries in the region in terms of cost savings and transaction time. As Intra-Africa and regional trade continues to grow, the MauCAS will play a key role in further facilitating the integration of our domestic payment infrastructure with regional payment systems. The MauCAS platform, through the IPS – the Instant Payment Switch – has far-reaching potential for commercial transactions.
Biggest vaccine rollout in history (The Southern Times)
Africa is prepping itself for its largest vaccination drive in history – a multi-billion dollar effort to combat the spread of COVID-19. The World Health Organisation estimates the cost of rolling out a COVID-19 vaccine to priority populations in African at around US$ 5.7 billion. Up to another 20 percent of this figure will be needed for related materials, distribution and training of health professionals. The costing is based on an estimated vaccine price of US$10,55 per dose for a two-dose regimen.
Migration: A force for inclusive, social and economic development in eastern Africa (The East African)
The recent African Migration Report says over 26 million international migrants are on the move across the continent. There are almost eight million migrants in East and Horn of Africa, representing 30 per cent of Africa’s migrant population, making it host to the largest share of international migrants on the continent by region. According to the same report, migrants, including those in the diaspora, remitted over $81 billion to Africa in 2018, with $48 billion coming to sub-Saharan Africa in 2019, according to the World Bank data. By matching the labour market’s demand with supply, migration is making important contributions to the economies of both migrant source countries and destination, changing lives by increasing productivity and facilitating trade and investment.
International
AfCFTA: Commonwealth to strengthen capacity of African countries export (Vanguard)
The Commonwealth has reiterated its commitment to work with African countries to deepen export capacity and, particularly, take advantage of trading opportunities like the African Continental Free Trade Area (AfCFTA). Patricia Scotland, Secretary General of the Commonwealth, stated this in a telephone interview with the News Agency of Nigeria (NAN) in Abuja. She explained that the Commonwealth Secretariat had been working with the 19 African member states to strengthen their institutional capacity and develop trade policies over the years. This, according to her, will enable the countries engage in trade negotiations, agreements and deepen their national capabilities at export, and exploit the huge opportunities provided by AfCFTA.
EU-UK trade talks floundering over fish as cutoff day nears (Bay News)
With yet another Brexit deadline disappearing in the rearview mirror, a breakthrough on fishing rights remained elusive for the European Union and Britain on Sunday – leaving both without a trade agreement that would dull the cutting edge of a chaotic, costly economic break on New Year’s Day. With hundreds of thousands of jobs at stake throughout the economy, the tiny sector of fisheries continued to drive a wedge between the 27-nation bloc and the U.K., highlighting the animosity that drove them to a Brexit divorce over the past four years. Britain left the bloc in January, but a 11-month economic transition period ends on Dec. 31.
Related: Fisheries dispute threatens to sink post-Brexit trade deal (EURACTIV)
UK trade envoy on latest British-Egyptian trade deal and bilateral ties after Brexit (Ahram Online)
On 5 December, Egypt and the UK inked an agreement that aims to strengthen political and trade ties between the two countries. The agreement, which will come into force by the beginning of January, will allow British businesses and consumers to benefit from continued preferential access to the market after the end of the transition period caused by Brexit, which will help boost vital trade and investment. In an exclusive interview, Jeffrey Donaldson, the UK’s Prime Minister’s Trade Envoy to Egypt, shared with Ahram Online the details of the agreement and how the UK seeks to deepen economic and commercial cooperation in the phase after Brexit. Donaldson also said that the UK is one of Egypt’s leading investors with the value of total trade amounting to about £3.5 billion annually, adding that the UK’s priority is to ensure the continuity of the EU-Egyptian Association Agreement and to deepen the bilateral relationship between both governments.
New benchmark for cooperation (China Daily)
Since its founding, the Forum on China-Africa Cooperation has proved to be an effective platform for deepened and upgraded interaction From 2000 to 2010, the FOCAC showed its strength in promoting China-Africa cooperation and African development. China-Africa trade grew from $10.6 billion in 2000 to $106.8 billion in 2008 at an annual growth rate of over 30 percent, and China became Africa’s largest trading partner. Those 10 years also witnessed rapid development in Africa with an annual economic growth of 5 percent to 10 percent. Today, the world is being reshaped, while China-Africa relations have come to the best time in the history. With humanity at a crossroads in its development course, the Chinese and African civilizations will add impetus and inspiration to the development of human civilizations.
If COVID-19 changes finance, will that help development funding? (Devex)
As global markets contracted in response to the COVID-19 pandemic, the growth of environmental, social, and governance, or ESG, investing; sustainable investing; and impact investing appears to have accelerated. But whether that potential shift will result in finally unlocking more capital to finance development remains an open question. The ESG market is expected to reach $45 trillion in assets under management this year, though Europe and North America account for more than 90% of the market, according to research released by J.P. Morgan earlier this year.
The production gap report: 2020 special issue (ODI)
The Production Gap Report, first launched in 2019, measures the gap between Paris Agreement goals and countries’ planned production of coal, oil and gas. It finds that the ‘production gap’ remains large: countries plan to produce more than double the amount of fossil fuels in 2030 than would be consistent with a 1.5 °C temperature increase limit. This year’s special issue looks at the implications of the Covid-19 pandemic – and governments’ stimulus and recovery measures – on coal, oil and gas production.
En Route to Investment (IFC)
In much of the world, logistics companies use technology to match available vehicles with shippers that need to move goods, ensuring that every mile is paid for. But automating freight management has been difficult in Africa, where drivers are typically solo operators scheduling their own jobs. The process regularly results in “empty runs” – trucks with no cargo for the return route, forcing drivers to idle for days. That’s part of what makes logistics costs in Africa almost double that of North America, according to data from supply chain firm Armstrong & Associates. But technology created by African e-logistics companies is beginning to patch the supply chain gaps. Industry observers like Hashi say that e- logistics companies are becoming well positioned to meet a projected increase in intra-regional trade when the African Continental Free Trade Area opens next month.
Financing the Sustainable Development Goals: The Contributions of the Multilateral Development Banks (AfDB)
The year 2020 marks 75 years of multilateralism since the United Nations (UN) came into existence and 5 years since the adoption of the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs). The financing needed to realize this vision has grown from billions to trillions. With only 10 years to go before 2030, we have entered a Decade of Action to achieve the SDGs. In this context, the multilateral development banks (MDBs) and the International Monetary Fund have come together to highlight our efforts to support countries in achieving the SDGs, by providing finance, technical assistance, policy support, and knowledge.
World trade volume rallies in third quarter after COVID-19 shock (WTO)
Global merchandise trade volumes bounced back in the third quarter of 2020 from a deep second quarter slump brought on by the COVID-19 crisis according to statistics released by the WTO on 18 December. In the third quarter, the volume of merchandise trade rose 11.6% compared with the previous quarter after falling 12.7% in the second quarter (revised up from an initially estimated decline of 14.3%).
Ban on food aid restrictions blocked at WTO (Reuters)
World Trade Organization members were at odds on Friday over a proposal that would ban countries from restricting food aid deliveries, potentially complicating the response to a feared COVID-fuelled humanitarian catastrophe next year. The proposal was one of two related to the pandemic that failed to make headway at a three-day meeting of the Geneva-based trade body, an outcome its spokesman described as “disappointing” in a difficult year for the institution.
OPEC Fund for International Development approves $50M financing to boost international trade with ECOWAS (Togo First)
At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms. In comparison to previous years, Togo has significantly improved its ranking under the “Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.
Chair of services domestic regulation talks issues revised negotiating text (WTO)
The Chair of the negotiations on services domestic regulation, Jaime Coghi Arias of Costa Rica, circulated a “far advanced” negotiating text on 18 December capturing the progress made in 2020 on domestic regulation disciplines. Next year will be “crucial” for the talks, he stressed, given the commitment of “all participants to deliver a significant outcome” at the 12th WTO Ministerial Conference (MC12) scheduled for 2021.
The Last-mile Internet Connectivity Solutions Guide (ITU)
The Last-mile Internet Solutions Guide consists of guidelines that can help policymakers and professionals select and customize appropriate last-mile connectivity solutions. This guide is part of a broader Last-mile Connectivity Toolkit, which aims to drive new collaborative strategies to extend connectivity to those at the bottom of the social pyramid, and to enable key stakeholders to take a more holistic approach that treats broadband as a basic public utility and core tool for socio-economic development.
With four more countries now live in the Electroneum app for electricity top-ups for a total of nine, the award-winning cryptocurrency startup continues on the forefront of providing use cases that solve real-world problems for its users worldwide. And with nearly 4.1 million registered users, the British blockchain startup is to date the only one providing electricity top-ups with crypto. The new countries that went live today are Sierra Leone, Togo, Benin, and Ivory Coast, said Electroneum CEO, Richard Ells. Electroneum in-app electricity top-ups were already live in Nigeria, Mali, Gambia, Senegal, and Guinea-Bissau.
Five years since the Paris Agreement: The race to net zero is on (Eco Business)
As 2020 comes to a close, the date is fast approaching for all parties to the Paris Agreement to submit their updated commitments, or nationally determined contributions (NDCs), that specifically delineate how each country will meet the common climate goals within the United Nations framework. Due to the Covid-19 global pandemic, COP 26 climate talks were postponed to 2021, and instead, a series of virtual events including the Climate Ambition Summit was held on 12 December 2020, where countries were given the opportunity to provide updates on their adjusted NDCs.
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National
South Africa misses Covax deadline to secure vaccines (Engineering News)
South Africa, the country hardest hit in Africa by the coronavirus, missed a December 15 deadline to make a deposit to secure vaccines to fight the pathogen, and hasn’t arranged a guarantee to make the full payment. The payment to the Covax program will be made in coming days, according to Tandi Nzimande, the chief executive officer of the Solidarity Fund, a philanthropic organization backed by some of South Africa’s richest people and biggest companies. The fund undertook to make the R327-million ($22-million) deposit, which represents 15% of the R2.2-billion rand that will ultimately have to be paid, after the government failed to do so.
Export earnings hit five-year high (Business Daily)
Kenya’s export earnings for the 10 months to October grew the fastest in five years, indicating continued resilience of the sector against the pandemic, and its support in the rebound of the economy. Central Bank of Kenya (CBK) data shows that total exports in the period grew by 6.4 per cent to Sh532.91 billion from Sh500.79 billion in the corresponding period last year. The growth in earnings has been attributed to better performance of the traditional exports such as coffee, tea and petroleum products.
Nigeria to reopen border with Benin for goods trade (Africanews)
Nigeria is lifting the closure of borders with neighbouring Benin and Niger which it imposed in August 2019 to curb the smuggling of rice and other commodities, the government said Wednesday. "Four land borders will be reopened immediately while the remaining borders are directed to be reopened on or before 31st of December," Finance Minister Zainab Ahmed told a press conference. Under President Muhammadu Buhari's instructions, "the ban on importation of rice, poultry and other banned products still subsists and will be implemented by border patrol teams," she said.
Buhari stunned Nigeria's neighbours when he unexpectedly closed the country's borders to goods trade, saying the time had come to crush contraband trade. The unilateral move was criticised for violating commercial and freedom of movement treaties signed under the Economic Community of West African States (ECOWAS). The closure had a major impact on Benin, a key exporter of foodstuffs to Africa's most populous country via its port of Cotonou.
Related: Nigeria backs down after 16-month border closure (The Guardian Nigeria)
Despite concerns about Nigeria’s readiness to implement the African Continental Free Trade Agreement (AfCFTA), the race to meet the January 1, 2021 deadline appears to have forced the Federal Government to reopen the land borders, having recorded very little gains from its 16-month border closure. The Federal Executive Council (FEC), yesterday, approved the recommendation of a committee for reopening of four of the nation’s land borders with immediate effect while stating that others would be “reopened in due course.”
CBN approves new license categorizations for payment systems (Nairametrics)
MUFG and African Export-Import Bank (Afreximbank) have signed a $520 million facility, following Nippon Export and Investment Insurance (NEXI) agreement to support and cover the arrangement. Afreximbank will use the $500 million proceeds from the signed agreement with MUFG Bank for its Pandemic Trade Impact Mitigation Facility (PATIMFA). The facility fully aligns with Afreximbank’s strategic priorities in the area of intra and extra African trade and investment, export manufacturing, as well as industrialization. These objectives find common ground with NEXI’s objectives of supporting sustainable African growth and development in line with TICAD objectives.
Govt rallies SMEs to tap into AfCFTA opportunities (The Chronicle)
With only a few weeks left before the African Continental Free Trade Area (AfCFTA) implementation begins, the Government has called upon small to medium enterprises (SMEs) to position themselves for lucrative export opportunities. Zimbabwe has one of the vibrant SMEs sector in Africa, which plays a critical role in job creation, empowerment, wealth generation and the economy as a whole. Minister Nyoni said since Covid-19 has disrupted traditional trading models, Zimbabwe would seek leverage on digital technology to enhance its export market advantage. She, however, admitted there was a gap in relevant infrastructure provision, which the Government and private sector players would need to urgently address.
Rwanda, DP World sign deal to boost exports (The New Times)
Logistical challenges that impede local producers from accessing international market could soon come to an end following the entrance of a new e-commerce platform by DP World, into the local market. The global logistics firm has signed a Memorandum of Understanding (MoU) with the Rwandan Government which will see Rwandan producers use the firm’s newly launched e-commerce platform, Dubuy.com to get their products to the international market. The development is expected to bring to an end supply-chain logistics challenges that have held back local producers, from accessing the international market especially in markets where there is demand for Rwandan products. The platform will operate as a Business to Business platform meaning exporters will be trading with other business operators and consequently large volumes of orders.
KQ launches expanded Southern Africa operations to fly cargo directly from Johannesburg (Capital Business)
Kenya Airways has launched its expanded Southern Africa operations that will see the airline fly cargo directly from Johannesburg to other countries in the region. Currently all connections are done through its hub in Nairobi and going forward all cargo from Southern Africa will be delivered directly, resulting in shorter connecting times and speed to market, one of the unique selling propositions to its customers.
Hundreds of MSMEs Apply for the Recovery Funds as Disbursement Begins (Capital Business)
Over 200 local businesses in Kenya have applied for COVID-19 relief loans under a programme run by Kenya Private Sector Alliance (KEPSA) and Mastercard Foundation. The Mastercard Foundation COVID-19 Recovery and Resilience Programme for micro, small and medium enterprises (MSMEs) aims to benefit 400 MSMEs through the partnership with KEPSA, whose operations have been adversely affected by the COVID-19 pandemic. “We are working to spur economic recovery with a focus on small businesses, and these loans can be used to restart and rebuild businesses as the pandemic-related restrictions continue to be lifted and recovery begins,” KEPSA Chief Executive Officer Karuga says.
Cash in Kenyans’ pockets jumps to 19-month high (Business Daily)
The amount of cash circulating outside the banking system and in people’s pockets hit a 19-month high in October, buoyed by more firms resuming operations after the easing of some restrictions imposed to stem the spread of Covid-19. Central Bank of Kenya (CBK) data shows that cash outside banks rose to Sh223 billion in October from Sh217 billion in September and Sh194 in April. The jump in circulation came in a month when Kenya eased Covid-19 restrictions, reducing the nationwide nightly curfew by three hours to between 9 pm and 4 am and lifting lockdowns on Nairobi and Mombasa.
Kenya, Tanzania and Rwanda rank top for rapid digital growth, demand (The East African)
Kenya ranked top within the region in digital growth and demand, according to the latest Digital Intelligence Index payments firm Mastercard and the Fletcher School at Tufts University. According to the Digital Intelligence Index, Kenya is followed by Rwanda and Tanzania. Together, the three countries are categorised as “Break Out” economies for evolving rapidly and their significant growth. Growth in internet penetration, improved infrastructure and more young people who are digitally savvy are some of the factors that made Kenya and Rwanda more attractive to investors.
Madagascar Needs Bold Reforms to Reopen the Country, and Rebuild Stronger After COVID-19 Crisis (World Bank)
The latest World Bank economic update for Madagascar, Setting a Course for Recovery, estimates that the economy contracted by 4.2 percent in 2020 due to COVID-19 disruptions to global trade and domestic activity. The depth of the recession is therefore comparable to that of the 2009 constitutional crisis and was primarily driven by a sharp drop in export revenues and private investments. According to the report, a sudden stop in activity led to significant increase in extreme poverty, with vulnerable populations in urban areas being particularly affected. In the first semester of 2020, 64.4 percent of households reported a loss of revenue and 97 percent of companies a decline in the demand for their products and services.
Morocco-Africa trade: Average annual increase of 6.1% between 2009 and 2019 (The North Africa Post)
Trade between Morocco and the rest of Africa showed an average annual growth of 6.1% over the period 2009-2019, according to “Al Maliya”, the magazine of the Moroccan Ministry of Economy & Finance. The share of this trade in the Kingdom’s overall trade volume stood at 5.1% in 2019, according to data from the Foreign Exchange Office. Morocco-Africa exchanges were marked by a structural change from 2015, as Morocco’s trade balance started being marked by a surplus, the magazine indicates. This result is due to a greater increase in exports than in imports.
Africa
ECA’s ERA 2020 launched; focuses on innovative finance for private sector development (UNECA)
The Economic Commission for Africa (ECA) on Tuesday launched its flagship Economic Report on Africa, titled: “Innovative Finance for Private Sector Development in Africa”, which looks at innovate financing as a way of providing solutions to the challenges of private sector financing, hence enabling Africa’s private sector to thrive and drive the continent’s economic growth and recovery; and, importantly, to increase the private sector’s resilience to the effects of the global coronavirus pandemic. Executive Secretary, Ms. Vera Songwe expressed her hope that the analysis in the ERA would allow stakeholders, particularly during, and in the post-COVID-19 pandemic, to look at how financing and innovative tools for infrastructure, agriculture and technology, are designed as the Continent tries to build forward out of the COVID-19 pandemic.
Intra-Africa Trade Key To Cushioning The Blow Of Trade Tensions And External Shocks, Says Afreximbank (Africa.com)
Afreximbank released yesterday its annual African Trade Report (ATR). This year’s report examined trade and economic developments in Africa in 2019, a year dominated by trade wars and escalating tariffs that resulted in a sharp deceleration of global trade growth. This has been compounded by Covid-19, and as a result, following a fall of 2.9% last year, global trade is expected to shrink by 9.2% in 2020. The ATR conducted an extensive study of informal cross-border trade (ICBT), the first attempt at measuring in a detailed manner the size and composition of informal trade.
Africa trade deal could tap $84bn in export potential (Moneyweb)
A continent-wide free-trade pact could help to realise more than $84 billion in untapped intra-African exports, according to a new report by the African Export-Import Bank. If the export potential is tapped under the deal, intra-continental trade could rise to more than $231 billion, or about 22% of total African commerce, even if all other conditions remained the same, Afreximbank said. Most of the untapped gains would come from southern Africa, from sectors “already proven to be internationally competitive and which have good prospects for export success in other African markets,” such as mineral commodities, machinery, food products, vehicles and parts, plastics and rubber, Afreximbank said.
Afreximbank expands Trade Finance Intermediary Initiative (Afreximbank)
During 2020, the African Export-Import Bank (Afreximbank) has increased the number of its Trade Finance Intermediaries (TFIs) to more than 65 in 30 African countries. A key component of the Bank’s business model, the Trade Finance Intermediary initiative enables a smoother delivery of Afreximbank’s initiatives and credit solutions. In line with its charter and mandate, Afreximbank delivers its products and services with and through central banks, commercial banks and other eligible bank and non-bank financial institutions. The Trade Finance Intermediaries also act as Local Administrative Agents for Afreximbank’s facilities. The Bank has put in place the Trade Finance Intermediary initiative to establish lasting relationships with these partner financial institutions. New guidelines for appointing Trade Finance Intermediaries were introduced in 2017.
Africa on the Right Track to Implement its Infrastructure Priorities for the Next Decade (2021-2030) (African Union)
The First extra-ordinary meeting of the African Union Specialized Technical Committee on Transport, Intercontinental and Interregional Infrastructures, Energy and Tourism (STC-TTIIET) kicks off virtually on Monday under the theme “Africa’s Infrastructure Priorities 2021-2020” On its first day, the meeting brought together more than 170 experts drawn from African Union Member States, Regional Economic Communities (RECs), Regional and Continental Institutions, and partners. Officially opening the Experts’ meeting, Dr. Ahmed Mohamed Mohina, First Undersecretary Ministry of Electricity and Renewable Energy of the Arab Republic of Egypt, current Chair of STC-TTIIT, said that Africa, is the land of promises with untapped potential in natural resources and human capacity. Dr. Mohina highlighted that it's urgent for Africa to invest in infrastructure and enhance interconnectivity thereby improving the standard of living of its citizens. “We require massive investments in the infrastructure sector. So far, much of Africa’s infrastructure has been financed by governments that strain public resources. We need to promote the full participation of the private sector to pull appropriate financial and technical resources to the sector”.
‘Imported Vehicle Prices To Increase Next Year’ (Economic Confidential)
The prices of vehicles imported into Nigeria will increase significantly from next year once the Fuel Grade and Vehicle Emission Standards Regulations of the Economic Community of West African States is implemented, the Association of Motor Dealers of Nigeria (AMDON) has said. AMDON said the plan of ECOWAS was to implement the regulation next year, which would restrict the importation of passenger vehicles of not more than five years old and heavy duty vehicles of not more than 10 years old into ECOWAS member states, including Nigeria.
Financing cost impedes agribusinesses in Africa (BusinessGhana)
Access to finance emerged as the greatest priority for agribusinesses in Africa and cost of finance cited as the biggest impediments, a new survey has revealed. This is not surprising, given that across the continent less than five per cent of commercial bank lending goes to agribusinesses. The inaugural ‘Africa Agribusiness Outlook’ has noted that the issue is not just about access to finance, it is about the cost of finance and availability of financial instruments that are adapted for the agricultural sector. “It is also about making agriculture attractive, viable and profitable rather than being looked at as a risky endeavour. Given the importance of the agricultural sector to many African economies, we believe this is an area that needs to be given urgent attention,” the survey stated.
ECA’s Chinganya calls on national statistical systems to maintain efforts to modernize & transform (UNECA
The Forum on Statistical Development in Africa (FASDev) continues to play a critical role in contributing to partnership building for statistical development on the continent for informed decision-making, says Oliver Chinganya, Director of the African Statistics Centre at the Economic Commission for Africa (ECA).
Its main aim was to have an overview of statistical activities, including technical assistance and training in Africa; set up a permanent system for monitoring statistical development in Africa; and to strengthen modalities for cooperation, with a view to leveraging each partner’s comparative advantage. “These objectives remain valid today after 16 years of FASDev’s existence,” said Mr. Chinganya, adding over the years FASDev has established linkages three areas - producers of official statistics; statistics training centres, and partners supporting statistical development resulting in an improvement in quality of data and statistics, and increased capacity building and training of young statisticians.
The African Development Bank announced $90 million in new donor commitments for the Sustainable Energy Fund for Africa (SEFA) during a virtual launch event held on Monday, in which SEFA’s transformation into a Special Fund was also unveiled. The new SEFA Special Fund is expected to expand, be more flexible, as well as more responsive to Africa’s fast changing energy market, with a sharper focus on green mini-grids and green baseload, and offering a wider array of catalytic finance instruments. Over 300 development partners and financiers attended the launch event, as well as representatives of African governments and energy sector institutions, project developers and sponsors, commercial banks and infrastructure funds.
Opinion: Build Africa back to 'better'...not just to 'normal' (CGTN Africa)
Since the World Health Organization declared COVID-19 a global pandemic in March 2020, countries, societies, and individuals have struggled to respond to the pandemic’s devastation of health systems, economies, trade, and human wellbeing. While Africa has been spared the pandemic’s harshest health impacts, it has absorbed a heavy economic burden. The economic crisis caused by the pandemic has demonstrated the need to rethink Africa’s development model, as the world contemplates emerging from the pandemic and aims to build back economies quickly following the current shock—and ensure resilience against future ones. Africa must do more than get back to normal: it must build back even better, an idea captured in the theme of Africa Economic Conference 2020, Under the theme: Africa beyond COVID-19: Acceleration towards inclusive and sustainable development, the conference, being held 8-10 December and jointly organized by the United Nations Economic Commission for Africa, and the United Nations Development Programme, provides a platform for established and up-and-coming academics to present solution-oriented research to policymakers and decision-makers.
Majority of Africans would take a safe and effective COVID-19 vaccine (Africa CDC)
A survey conducted by the Africa Centres for Disease Control and Prevention (Africa CDC), in partnership with the London School of Hygiene & Tropical Medicine (LSHTM) has shown that a predominant majority (79% average) of respondents in Africa would take a COVID-19 vaccine if it were deemed safe and effective.
International
Transforming trade, backing productive capacities is key to fixing global economy (UNCTUD)
The COVID-19 crisis has been both an accelerator and a decelerator for already rooted trends in the global economy. On the downside, the pandemic hit amidst widening inequality, declining economic prospects, mounting vulnerabilities to climate change, and a weakened multilateralism. But there is a solid route out of a fractured picture: expanding the transformative productive capacities of all could form the core of a new, more resilient multilateral consensus for accelerating achievement of the Sustainable Development Goals (SDGs). This according to UNCTAD’s Secretary-General, Mukhisa Kituyi, who outlined that the pandemic demands new economic and intellectual beginnings in his new report to member States. The report sets the scene for the UN trade and development body’s quadrennial conference due to take place next year in Barbados.
"Building productive capacities that facilitate structural transformation and economic diversification will be vital to overcoming the current fractured global economic landscape and addressing the new challenges posed by the COVID-19 pandemic," said Dr. Kituyi. In his report, Transforming Trade and Development in a Fractured, Post-Pandemic World, Dr. Kituyi lays out the key issues on which UNCTAD member States could find consensus and frames the discussion for the fifteenth session of the United Nations Conference on Trade and Development, or UNCTAD 15, where the organization’s mandate is updated and adapted to new and emerging needs.
The UN Conference on Trade and Development’s (UNCTAD) 2020 Handbook of Statistics shows that COVID-19 has contributed to significant declines in international trade, with services trade experiencing a drop not seen since 1990. The handbook provides a range of statistics and indicators on international trade in merchandise and services, investment, population, maritime transport, and development. This year’s online edition adds new interactive charts and maps, enabling increased visibility of small territories and allowing for user customization. The handbook notes that the total value of world services exports in 2019 was valued at USD 6.1 trillion, after a “modest” 1.9% rise. Prior to COVID-19, between 2014 and 2019, all main service categories exports – transport; travel; insurance, financial, intellectual property, and other business services; telecommunications, computer, and information; and “other” categories – were increasing, with telecommunications experiencing the highest growth rates. However, in the wake of the pandemic, trade in services is likely to fall by 15.4% in 2020 compared with 2019, the handbook projects.
Year-on-year, the handbook notes in a “nowcast” – UNCTAD’s data-led projections for the immediate future in response to increased demands for up-to-date statistics in light of the pandemic – that a 19.9% decline of services trade is expected this quarter relative to the third quarter of 2019. The plunge has been driven by sharp declines in travel, transport, and tourism activity, UNCTAD finds.
Legislation for the UK’s independent tariff policy (GOV.UK)
From the 1 January 2021 the UK Global Tariff will replace the EU’s Common External Tariff as the UK’s Most Favoured Nation tariff – the framework it will use to trade independently outside of free trade agreements. The UK Global Tariff is tailored to the needs of the UK economy, backing British business to compete on the world stage.
It’s simpler to use, greener, and cuts red tape and other unnecessary barriers to trade. It will make it easier for businesses to import goods from overseas. Today, 16 December, steps will be taken to bring this into law, with the laying of Statutory Instruments before Parliament as part of a wider legislative package. This legislation implements the announcement of the UK Global Tariff in May 2020.
Alongside the UK Global Tariff, the Government has also acted to: establish the UK’s Generalised Scheme of Preferences to support trade with developing countries roll over existing trade remedies to protect domestic sectors from unfair international competition.
Africa visit by EU officials set off coronavirus super-spreader fears (POLITICO)
A visit to Addis Ababa in October by a high-level delegation including EU foreign policy chief Josep Borrell was designed to showcase a donation of 7.5 tons of coronavirus testing kits. Instead, it ended up setting off fears of a super-spreader event at the African Union headquarters and among top Ethiopian officials. The events surrounding the visit — and EU-Africa relations in general — came under renewed scrutiny after the surprise, last-minute cancellation by the African side of a planned videoconference summit that was to be held last Wednesday.
COMESA and the European Union have signed a EUR 7.6 million Financing Agreement for the COMESA Institutional Capacity Building Programme. Secretary-General Chileshe Kapwepwe co-signed the Agreement with the Ambassador of the European Union to Zambia who is also the Special Representative to COMESA, Mr. Jacek Jankowski on Wednesday, 16 December 2020 at the COMESA Secretariat. The objective of the programme is to deepen regional integration in the COMESA region, and to enhance effectiveness and efficiency of the COMESA Secretariat in the implementation of regional cooperation projects and engagement with its Member States. The programme will support COMESA in the domestication and implementation of regional commitments at Member States level. It will further facilitate multi-stakeholder dialogue on regional economic integration, in the Tripartite framework of COMESA, the East African Community (EAC) and Southern Africa Development Community (SADC).
Southern African Development Community :: SADC and EU working on increasing intra-regional trade
The resolution of Non-Tariff-Barriers to trade under the Southern African Development Community (SADC) and the European Union (EU) Trade Facilitation Programme (TFP) is ongoing and playing a key role in the context of the COVID-19 pandemic. SADC and the EU signed the TFP in 2019 and this is aimed at addressing several elements identified by stakeholders as crucial for developing an improved international market access and for increasing intra-regional trade between SADC Member States. The programme has to date seen trade flows within the SADC Region and with the outside world increasing along the North-South Corridor. The TFP programme, which will run from 2019 to 2025, is funded to the tune of Euro 15 million by the EU under the 11th Economic Development Fund. The TFP addresses non-tariff barriers to trade and facilitates harmonisation of technical, sanitary and phytosanitary standards and provides cross-border management tools to speed up processes and reduce the costs of exports within the SADC countries and with the EU. Sanitary and phytosanitary measures set out the basic rules for food safety and animal and
At WTO, a battle for access to COVID-19 vaccines (Devex)
High-income countries appear to be maneuvering to avoid a showdown at the World Trade Organization’s General Council meeting, beginning Wednesday, over a proposal to temporarily waive intellectual property protections for all COVID-19 vaccines and other technologies.
There is some skepticism over whether countries are actually in a position to take advantage of the proposal, introduced by South Africa and India, or if mechanisms already exist to address these concerns. Supporters of the plan are willing to address these issues, as long as that debate is not being used just to sideline the conversations around access to COVID-19 vaccines.
WHO vaccine scheme risks failure, potentially leaving poor countries with no COVID vaccines until 2024 (Australian Broadcasting Corporation)
The global scheme to deliver COVID-19 vaccines to poorer countries faces a "very high" risk of failure, potentially leaving nations that are home to billions of people with no access to vaccines until as late as 2024, internal documents say.
The World Health Organization's COVAX program is the main global scheme to vaccinate people in low and middle income countries against coronavirus. It aims to deliver at least 2 billion vaccine doses by the end of 2021 to cover 20 per cent of the most vulnerable people in 91 low and middle-income countries, mostly in Africa, Asia and Latin America.In internal documents — reviewed by Reuters — the scheme's promoters say the program is struggling due to a lack of funds, supply risks and complex contractual arrangements which could make it impossible to achieve its goals.
WTO Members Delay Agreement on Fisheries Subsidies to 2021 | News | SDG Knowledge Hub | IISD
World Trade Organization (WTO) members did not conclude negotiations on an agreement on curbing harmful fisheries subsidies by the 2020 deadline. A new schedule for meetings in 2021 is being developed, with the aim of bringing “this negotiation to the finish line.” The WTO’s 11th Ministerial Conference (MC11) and SDG target 14.6 give negotiators the task of securing an agreement on eliminating subsidies for illegal, unreported and unregulated (IUU) fishing and to prohibit certain forms of fisheries subsidies that contribute to overcapacity and overfishing by the end of 2020. In March 2020, the COVID-19 crisis resulted in the suspension of in-person meetings, and members used online meetings and written exchanges to continue negotiations. Despite their efforts and “almost daily” meetings in late November, WTO members were unable to finish negotiations at the 14 December informal meeting of the Trade Negotiations Committee.
The draft text addresses all the main pillars of the negotiations, including prohibitions on subsidies, a placeholder for a capping mechanism and a list of non-harmful subsidies, provisions for special and differential treatment for developing and least developed countries (LDCs), technical assistance and capacity building, notification and transparency, institutional arrangements, and dispute settlement. During the final “cluster” of discussions in the 2020 work programme, heads of delegations provided drafting suggestions on IUU fishing, overcapacity and overfishing, and special and differential treatment for developing countries.
WCO publishes updated version of the Coordinated Border Management (CBM) Compendium (WCO)
The latest version of the Coordinated Border Management (CBM) Compendium contains a number of new features and aims to comprehensively support Customs administrations, Cross-Border Regulatory Agencies (CBRAs) and international organizations in strengthening implementation of CBM in various fields. The concept of CBM has existed for many years and refers to a coordinated approach by border control agencies, both domestic and international, in the context of seeking greater efficiencies in managing trade and travel flows, while maintaining a balance with compliance requirements
The Compendium also includes a new section on cooperation between the WCO and the UPU. This section sets out potential opportunities for cooperation between Customs administrations and designated postal operators, including the exchange of advance electronic data aimed at improving risk management, trade facilitation and control of postal items, particularly in the context of growing e-commerce via post.
Policy Brief: Coherent Global Trade Policy Frameworks Needed for Circular Economy for Plastics (IISD)
As the consequences of COVID-19 continue to be felt around the world, one of its unexpected impacts has been the increased use of single-use plastics, fueling concerns that plastic waste levels will grow with it. In parallel, the push by many governments to adopt measures at the domestic level to address this issue, which in some cases includes trade policy measures, requires better coordination to be effective. Part of the COVID-19-related increase in single-use plastics comes from the rapid transition to online shopping instead of traditional in-shop purchases. This has increased by 6-10%, according to a recent survey by the UN Conference on Trade and Development (UNCTAD), and is likely to grow further in the holiday season. The pandemic also spurred the use of disposable products due to health and hygiene concerns, many of which are largely or entirely composed of plastics – such as utensils, bottles, wet wipes, masks, and other personal protective equipment.
People, planet on ‘collision course’, warns UN Development Programme (UN News)
The coronavirus pandemic is the latest crisis facing the world, and societies everywhere need to “release their grip on nature”, or risk more of the same, the agency said in this year's Human Development Report, entitled The Next Frontier, released on Tuesday. “Humans wield more power over the planet than ever before. In the wake of COVID-19, record-breaking temperatures and spiraling inequality, it is time to use that power to redefine what we mean by progress, where our carbon and consumption footprints are no longer hidden”, said Achim Steiner, UNDP Administrator. “As this report shows, no country in the world has yet achieved very high human development without putting immense strain on the planet. But we could be the first generation to right this wrong. That is the next frontier for human development.”
DESA Identifies 16 SDG Good Practices to Inspire Governments, Stakeholders (IISD)
The UN Department of Economic and Social Affairs is showcasing 16 examples of successful SDG implementation efforts from around the world, in hopes of helping governments and stakeholders deliver on the 2030 Agenda while addressing the COVID-19 pandemic and reducing the risk of future emergencies. The success stories are described in the first-ever ‘SDG Good Practices’ publication and featured on a data visualization dashboard. The publication titled, ‘SDG Good Practices: A compilation of success stories and lessons learned in SDG Implementation,’ consists of examples submitted through an open call from DESA conducted in 2018-2019. DESA reports that it received over 700 submissions from all types of stakeholders. An inter-agency expert team from UN bodies identified over 500 “good practices” from the submissions. On the visual dashboard, 513 good practices are displayed by the implementing sector, the associated SDG(s), and their location. Another feature enables the user to see all of the good practices being implemented in a selected country. Individual examples also can be viewed in detail on a dedicated website.
Feeding the world's growing population while limiting the impacts of climate change will require urgent and radical transformation of our agri-food systems, FAO Director-General QU Dongyu said at a High-Level event commemorating the 5th anniversary of the Paris Agreement on Climate Change. "We need to interact differently with our environment," the Director-General said, pointing to the need for high-impact action focused on better production, better nutrition, a better environment for a better life . "Let us show nature the reverence it deserves and prepare ourselves to set the table for 10 billion people by 2050 with healthy diets."
Agriculture, including forestry, fisheries and livestock production, generates around a fifth of the world's greenhouse gas emissions, which must be reduced by 2030 to achieve the goal of limiting the global warming increase to 2°C.