Search News Results
tralac Daily News
National
Full Quarterly Bulletin - No 298 - December 2020 (South African Reserve Bank)
Following a fourth successive quarterly contraction in the second quarter of 2020, the real gross value added (GVA) by the primary sector increased markedly in the third quarter, supported by a significant rebound in the real GVA by the mining sector and a further sizeable increase in real agricultural output.
The continued expansion in agricultural output reflected favourable weather conditions as well as the bumper maize and citrus harvests. The rebound in mining production was broad-based and reflected the easing of the lockdown restrictions, supported by higher international commodity prices and increased demand from China, in particular.
The value of South Africa’s net gold and merchandise exports surged to an all-time high in the third quarter of 2020, along with a more muted increase in merchandise imports as global trade recovered following the easing of COVID-19 lockdown restrictions and the related rebound in economic activity. As a result, South Africa’s trade surplus widened significantly to 9.0% − the largest ratio of GDP since the third quarter of 1988. Mining, manufacturing and agricultural exports all increased strongly in the third quarter of 2020, boosted by higher international commodity prices, increased global demand and an improvement in loading rates at domestic ports. The value of merchandise imports increased, although by a much lesser extent than exports, in the third quarter of 2020 and remained well below the level of a year earlier, reflective of weak domestic demand.
The larger trade surplus coincided with a significantly smaller shortfall on the services, income and current transfer account, which resulted largely from a significantly smaller deficit on the income account, as South Africa recorded a first quarterly dividend surplus in almost 25 years. As a consequence, the balance on the current account of the balance of payments switched from a deficit in the second quarter of 2020 to a notable surplus of 5.9% in the third quarter − the largest surplus as a ratio of GDP since the third quarter of 1988.
Dept invests in innovation in tourism sector (SAnews)
The Department of Tourism is set to introduce a programme that will stimulate and encourage innovation in the travel sector. The department, in collaboration with the Technology Innovation Agency (TIA), will implement the Tourism Technology Grassroots Innovation Incubation Programme (TTGIIP). The programme aims to stimulate entrepreneurship and new start-up enterprises in the tourism industry, underpinned by technology, innovation and new business ideas that have the potential to enhance services in tourism. The department and the TIA are co-funding the two-year project, with the TIA being the implementing agent. The department said developments in technology have played a fundamental role in the growth of the tourism and travel industry, and now with the impact of COVID-19, the “use of digital solutions is ever more apparent”.
Communications and Digital Technologies SOEs merge (SAnews)
The Department of Communications and Digital Technologies has embarked on a process to merge some of its entities in line with the state owned enterprises (SOE’s) rationalisation plan. These mergers are in line with last year’s State of the Nation Address by the President, committing government to undertake a process of rationalisation of SOEs, in an effort to ensure that they serve strategic economic or developmental purposes. “The Universal Service and Access Agency of South Africa will be repurposed to establish a state-owned digital fund company,” the Ministry of Communications and Digital Technologies said on Tuesday.
PM Abiy, Kenyatta commit to increased trade (The East African)
Ethiopian Prime Minister Abiy Ahmed marked his two-day state visit to Kenya last week with an inspection of the progress of the Lamu port construction, and the launch of the Moyale one-stop border post on Wednesday along with Kenyan President Uhuru Kenyatta. The leaders committed to boosting trade between the two countries by reducing trade barriers and jointly funding projects, and to allocate more resources for infrastructure projects to ensure the seamless flow of people and cargo between their two countries. The Ethiopia-Kenyan border stretches for over 830km, making the Moyale border post a significant trading point between the two countries.
Kenya loses bid for tax on EAC bottle imports (Business Daily)
Kenya has lost a bid to impose a 25 per cent excise tax on imported bottles from the East African region after the court ordered that the move be frozen. The order by the East African Court of Justice presents a major relief for local beverage manufacturers who were hit by the directive that saw them absorb extra cost as they could not pass down the costs to consumers given the low sales during a pandemic year, according to the manufacturers’ petition to Parliament in April. Previously, the bottles had no excise duty on them but the government introduced it in April, causing Tanzanian bottle manufacturer Kioo Limited to move to court seeking to freeze the tax contained in the Business Laws (Amendment) Act. The order served to Attorney-General Paul Kihara will be a major relief to the brewers and manufactures of other beverages using glass bottles who had decried the new tax that came at the height of a pandemic disrupted business season.
Zim engages Francophone countries (The Herald)
Zimbabwe’s attendance at today’s inauguration of Guinean President alpha Conde cements the already existing relations between the two countries and opens doors to trade throughout West Africa, Vice President Kembo Mohadi has said. VP Mohadi said it was critical for Harare and Conakry to forge bilateral relations beneficial to citizens, especially in the context of the African Continental Free Trade area (AfCFTA), which is set to revolutionise trade from next year.
U.S. move is first step on Sudan’s long road to get debt relief: IMF (Reuters)
The International Monetary Fund on Monday said it stood ready to help Sudan as it moves toward a broader package of debt relief after Washington’s removal of the country from its list of state sponsors of terrorism. Carol Baker, IMF mission chief for Sudan, said removal of Sudan from the U.S. list eliminated one of the hurdles toward debt forgiveness under the Heavily Indebted Poor Countries (HIPC) initiative launched in 1996. But Sudan remains in arrears to the IMF, the World Bank and the African Development Bank, and cannot receive fresh funds from them until it clears up those debts, she said. To reach that point, four other key conditions must be met that are outside the control of the IMF, including strong performance by Sudanese authorities under an IMF staff-monitored economic program for at least six months, Baker said.
Declare services export sector priority sector − Dr Obiora (Vanguard)
As the Buhari-led administration continue to harp on diversifying the economy to non-oil sectors, the National President of the Association of Outsourcing Professionals of Nigeria, AOPN, Dr Madu Obiora, in this interview tasked the government on declaring the services export sector a priority sector and also showcase Nigeria as reliable and quality service destination in Africa, as he spoke on other salient issues that would boost the economy.
Nigeria suspends licensing of free trade zones (Premium Times)
The Federal Government has suspended the issuance of licences for the operation of the Free Trade Zones (FTZ) in the country. According to the Minister of Industry, Trade and Investment, Adeniyi Adebayo, Nigeria is yet to see the potential of FTZs as an instrument for economic growth due to poor implementation. Mr Adebayo said this Monday at the inauguration of the panel set up for the evaluation of the performance of FTZs in Abuja. According to a statement by the minister’s spokesperson, Ifedayo Sayo, all applications for FTZ licences will henceforth not be processed pending the completion of the panel’s assignment. The panel’s key objective is to provide a set of recommendations to inform government strategy on FTZs based on a thorough evaluation off the current operations of FTZs.
Manufacturers may not open next month over COVID-19, Forex crises (Vanguard)
Manufacturing sector operators have indicated that many factories may not open for activities next month due to the impact of COVID-19 fallouts as well as scarcity of foreign exchange supply. Dropping this hint at the 2020 Workshop of the Commerce and Industry Correspondents Association of Nigeria, CICAN, the Acting Director General of the Manufacturers Association of Nigeria, MAN, Mr. Ambrose Oruche, said that the manufacturing sector has been near dearth before lockdown, because of the neglect by government. He stated: “During the lockdown caused by the COVID-19 pandemic most countries stopped sending their raw materials to us and then most industries began to shut down. After that there was a foreign exchange (Forex) issue that was threatening the survival of the manufacturing sector. “It would be difficult for some of the manufacturing companies to come back in January 2021.
World Bank Group to Boost Nigeria’s Efforts to Reduce Poverty
The World Bank Group (WBG) discussed a new five-year Country Partnership Framework (CPF) from 2021 to 2024 and approved a $1.5-billion package to help build a resilient recovery post-COVID19. Nigeria is at a critical juncture. With the sharp fall in oil prices as a result of COVID-19, the economy is projected to contract by over 4% in 2020, plunging the country into its deepest recession since the 1980s. Government revenues could fall by more than 15 billion dollars this year, and the crisis will push an additional 5 million Nigerians into poverty in 2020.
Africa
Informal Trade And Dynamics Of African Trade In The Wake Of Covid-19 Key Features Of 2020 African Trade Report (Africa.com)
The African Trade Report, produced annually by the African Export-Import Bank (Afreximbank), will be launched on 15th December. This year’s report focuses on Informal Cross-Border Trade (ICBT) and provides ground-breaking insights into the scale, composition and approaches to informal cross-border trade in Africa. It is estimated that the formalisation of informal cross border trade could potentially increase official trade numbers by between 30-50%, depending on the region. “ICBT has been a key contributor to job creation, income growth and household consumption, as well as to the development of competitive cross-border regional value chains” explained Professor Benedict Oramah, President of Afreximbank, while emphasizing the importance of ICBT to the continent’s economies.
The Report was done in collaboration with the UN Economic Commission for Africa (ECA). According to Dr. Hippolyte Fofack and Dr. David Luke, Head, African Trade Policy Centre at the ECA, this year’s report will help put in place the structures to better account for ICBT as well as help formalise these value chains.
AfCFTA: Afreximbank supports factoring as a viable alternative source of finance for SMEs (Afeximbank)
“SMEs constitute the greatest proportion of the continent’s industrial fibre, accounting for about 80% of businesses and employing not less than 70% of the continent’s workforce,” noted Ms. Awani. “Given that access to finance remains a key constraint to SME operations, availability of sustainable trade finance, especially for SMEs, will remain the key lubricant to propel the AfCFTA, the single largest trading bloc globally, towards the realization of its aspirations,” she added.
The African Export-Import Bank (Afreximbank) considers factoring as a viable alternative financing instrument for supporting Small and Medium-sized Enterprises (SMEs) at a time when traditional commercial bank lending is tightening while trading is about to begin under the African Continental Free Agreement.
Local Sourcing in Africa Can Aid Economic Growth and Poverty (BORGEN)
Many countries in Africa have turned to local sourcing for economic stimulation as COVID-19 progresses. The new change in business trade is proving to be successful thanks to some initiatives and programs that made local sourcing in Africa possible. One of the initiatives responsible for the growth of local sourcing in Africa is the U.N.’s Sustainable Development Goals (SDGs). The initiative calls for an increase in local raw material sourcing to 50% over the next few years. Farming Better Futures is a program associated with the SDGs.
Visa openness solutions can boost Africa’s economic recovery, the 2020 Africa Visa Openness Index reveals (TravelDailyNews)
A record 54% of the continent is accessible for African visitors who no longer need a visa to travel or can get one on arrival; in 2020, The Gambia joins Seychelles and Benin in allowing visa-free access for all African travelers; 24 countries offer e-Visas reflecting 44% of the continent. The upward trend in African countries liberalizing their visa regimes and welcoming African travelers continues, according to the 2020 Africa Visa Openness Index published by the African Union Commission and African Development Bank on Thursday. This fifth edition of the Index highlights the negative impact of the COVID-19 pandemic, which threatens to reverse Africa’s economic gains of recent years, affecting sectors from tourism through to investment. As travel restrictions ease and safety measures are put in place to contain the pandemic, sustaining progress and momentum on more comfortable continent-wide travel is vital.
Truck drivers hail guidelines on movement of goods to curb COVID-19 in SADC-EAC-COMESA Region (SADC)
The outbreak of COVID-19 has affected economies globally, prompting countries to impose measures which have restricted movement of goods, services and people across borders in efforts to contain the spread of the pandemic. When COVID-19 broke out, most border posts were closed for the general public and only allowed the movement of essential goods such as medical supplies. Truck drivers have played a crucial role of delivering goods to various destinations. The introduction of these measures has helped greatly to curb the spread of COVID-19.
SADC records notable progress in financial markets and regional integration (SADC)
There has been notable progress in the area of payments systems in the Southern African Development Community (SADC).At national level, all the 16 SADC Member States are implementing Real Time Gross Settlement System (RTGS) which facilitates quicker transactions and brings about efficiency in payments. In her report to the 40th SADC Summit hosted virtually by Mozambique in August 2020, SADC Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, said at regional level, harmonisation of payments and clearing systems through the SADC-RTGS is ongoing. The SADC RTGS supports the modernisation and harmonisation of payments and clearing systems both domestically and regionally with the objective of improving safety of payments and efficient settlement and payment processes in the region. It is also intended to lower transaction costs as it removes the need for correspondent banks.
FDI in the region records double digit growth as China invests $7b (The East African)
Foreign Direct Investments (FDIs) into East Africa more than doubled in 2019 buoyed by China’s increased interest in the region’s manufacturing, construction and services sector. EAC’s Trade and Investment Report (2019) shows that FDIs into the region surged to $11.5 billion in 2019 from $5.7 billion in 2018, with all East African Community countries except Tanzania posting increased inflows during the year. Inflows to Tanzania declined by 16 percent to $2.6 billion in 2019 from $3.1 billion. According to the report China was the largest investor in 2019, accounting for 59.7 percent of the total FDI inflows into the region, with significant realised investments in construction, manufacturing and services. Inflows to Uganda increased by almost 20 percent mainly on account of investments in the extractives sector as well as major infrastructure projects like power dams and roads.
Related: EA loses billions in tax exemptions and remissions in five years (The East African)
Comesa counts pandemic linked economic losses (The East Africans)
According to a new report, Comesa has experienced contraction in economic growth, with only six countries out of 21 expected to post positive growth for 2020. The pandemic has wiped out 4.6 percentage points from Comesa’s economic growth this year, and see the bloc slump to a 0.6 percent growth, just 12 months after it grew 5.2 percent in 2019. The report titled Socio-economic impacts of the Covid-19 pandemic: Evidence from Comesa region echoes the International Monetary Fund’s October 2020 regional economic outlook for sub Saharan Africa. Both note that Covid-19 will see contraction cut across all countries and sectors, but countries that are oil, resource and tourism dependent are the most hit, while more diverse non-resource economies like Rwanda, will be more resilient. It agrees with the assessment that agriculture based businesses have only experienced a marginal impact of Covid-related restrictions.
What do FTAs mean for African women? A critical look into the African Continental Free Trade Area (CADTM)
The AfCFTA pursues the same goals of trade deals that African countries have engaged with in recent decades, but unfolds them now on a much broader scale. It is the continental extension of a corporate driven trade agenda previously imposed on distinct African blocs through numerous trade and investment deals and processes. It is important to bear in mind that a large part of trade within Africa, both within countries and across borders, is informal. The track record of past FTAs in regard to the position of women, addressing their concerns in these processes and subsequent benefits have not been good at all. In fact, feminist critiques of free trade and investment policies and agreements in other regions mesh very strongly with the experiences in Africa.
Unpacking the misconceptions about Africa’s food imports (Brookings)
Sub-Saharan Africa’s spiraling food import bill − which stood at $43 billion in 2019 − has attracted mounting attention as a worrisome trend. For years, many pundits have wondered why Africa seems increasingly unable to feed itself, despite having much of the world’s remaining unutilized arable land. This alarming narrative is largely inaccurate. Our research, which disaggregates sub-Saharan Africa’s (SSA) agricultural trade performance by country and type, shows that four countries − Nigeria, Angola, the Democratic Republic of the Congo (DRC), and Somalia − account for most of SSA’s net agricultural import position. The rest of the countries in the region are actually net agricultural exporters. This is good news not only today, but for Africa’s future economic growth through trade, as we explain below. Three key facts emerge from our analysis.
New ECA and GSMA report urges an overhaul of mobile services to boost e-commerce in Central Africa (UNECA)
A new report by the UN Economic Commission for Africa (ECA) and the Global System for Mobile Communications Association (GSMA) has outlined practical measures that Governments and key stakeholders in the mobile telephony sector can adopt to boost the subregion’s sustainable development through electronic commerce. The report titled “The Role of mobile services in Enabling E-commerce in Central Africa and policy implications” was reviewed in an online meeting today by experts from government, the private sector, academia, the development community and civil society from Africa and Europe, Monday. It encourages Central African States to overhaul their overall business environment in order to facilitate transactions in the sector which can bring about socially inclusive economic growth.
This is Africa’s digital shift opportunity (The Exchange)
Africa rarely positively leads on the global scene but this does not mean that nothing good is happening on the continent. Even though the Covid-19 has hot the continent leading to massive losses just like elsewhere in the world, it is noteworthy that 19 of the top 20 fastest-growing countries in the world are in Africa. The continent has registered increased urbanization where an increasingly young and educated population is driving higher consumption of online services. One of the largest overlooked investment opportunities of the past decade for the African continent is the Internet economy which has the potential for profound impact on development. The mobile Internet is transforming lives across the continent with the support of growing local connectivity and mobility and a dynamic, young urban population. With a potential to add up to US$180 billion to Africa’s gross domestic product (GDP) by 2025, depending on the usage intensity of digital technologies by businesses, the Internet economy is improving productivity and efficiencies across large swaths of the economy, including agriculture, education, financial services, healthcare, and supply chains.
Sub-Saharan African businesses are optimistic about 2021 (IT-online)
Purchasing Managers Index (PMI) reports released by IHS Markit in the first week of December shows that sub-Saharan African companies are optimistic about the improvement in business activity during 2021. PwC expects the Sub-Saharan African economy to return to growth in 2021 as the pandemic abates and global trade improves as lockdowns ease. The IMF expects the East Africa Community (EAC) economy to grow by 4,5% in 2021 compared to an expansion of only 1% this year – while the 2020 number was positive, it was significantly lower than an average of 6,1% per annum seen over the preceding four years. The IMF expects the Southern African Development Community (SADC) economy to expand by 3,3% in 2021 following a contraction of 5,5% in the preceding year. IHS Markit data shows that companies in Mozambique expect higher output next year linked to new investments and expectations of an end to the pandemic.
New African Stock Exchanges linkage project targets $1trn market capitalization (Businessamlive)
A new African Stock Exchanges linkage project being promoted by the African Development Bank (AfDB) with other stakeholders, which would integrate stock exchanges across Africa, is set to create an integrated capital market on the continent with capitalization in excess of $1 trillion. The incoming African Stock Exchanges capitalization would represent 90 percent of Africa’s total equity market. According to stock market experts, the new African Stock Exchange linkage will increase liquidity and enable seamless trading platforms across the continent’s 55 sovereign nations, 1.3 billion people and a combined GDP of $3.4 trillion.
Clean energy sector growing in South and East Africa (ESI-Africa.com)
A new report exploring recent developments in the clean energy sector in southern and eastern Africa shows market entry is challenging and requires targeted awareness-raising activities, increased financial inclusion and access to financing. EEP Africa used data collected from a call for 2020 proposals, their annual survey and active portfolio to develop its 2020 Market Report Productivity and Circularity in the Clean Energy Sector. The report looks at three rapidly developing areas of the clean energy market: the evolution of productive use of energy (PUE); role of clean energy in a circular economy; and impact of COVID-19 on early-stage companies.
International
2020 Year in Review: The impact of COVID-19 in 12 charts (World Bank Blogs)
This time last year, concepts such as “lockdowns,” “mask mandates” and “social distancing” were unknown to most of us. Today they are part of our everyday language as the COVID-19 pandemic continues to impact all aspects of our lives. Through the following 12 charts and graphics, we try to quantify and provide an overview of our colleagues’ research in the face of a truly unprecedented crisis.
WCO Council maps the road ahead to ensure the recovery, renewal and resilience of the Customs and trade community for a sustainable supply chain (World Customs Organization)
Heads of Delegation of some 150 WCO Member Customs administrations took part in the 137th Session of the WCO Council, the Organization’s supreme decision-making body, which was held virtually from 10 to 12 December 2020 under the chairmanship of Mr. Ahmed Al Khalifa, Vice-Chair for the North of Africa, Near and Middle East region and President of Customs Affairs in Bahrain. “Customs worldwide have played a critical role during the pandemic and we need to keep the momentum going and be ready for the recovery phase, especially by continuing to ensure the rapid movement of essential goods, including COVID-19 vaccines, and by increasing support to economic operators”, said the Acting Chairperson of the Council in his opening remarks.
European Union, AU sign new partnership to tackle epidemics (The Independent Uganda)
The European Centre for Disease Prevention and Control (ECDC) and the Africa Centres for Disease Control and Prevention (Africa CDC) has launched a new partnership to strengthen the capacity of Africa to prepare for and respond to public health threats. The four-year project dubbed ‘EU for health security in Africa will be implemented through harmonising surveillance and disease intelligence, and supporting the implementation of the public health workforce strategy of Africa CDC. The agreement will come into force on January 1st, 2021. Extending funding worth 9million euros for the activities and a million euros to cover staffing costs at the Africa CDC, he said is aimed at building capacity not only for handling COVID-19 but also to tackle future health threats on the continent.
No subsidized imports in post-Brexit trade deal, CS Maina affirms (KBC)
Industrialization, Trade, and Enterprise Development Cabinet Secretary Betty Maina has assured local manufacturers and producers of various goods that the post-Brexit trade deal Kenya signed with the United Kingdom will not open the floodgate for cheap and subsidized goods. On Monday, CS Maina said the post-Brexit Continuity Trade Agreement which was signed on 8th December 2020 between Kenya and the UK adheres to the fidelity of the EAC Customs Union Protocol and provides room for accession by the willing EAC Partner States as Kenya backs the deal to ensure a 5% increase in exports within the first year of implementation.
Access, funding stand in Africa’s path to getting Covid-19 vaccine (The East African)
As many countries around the world are making important decisions about who gets vaccinated against Covid-19, Africa is increasingly on a razor edge as access to the vaccine is not guaranteed. The challenge facing Africa is access: availability of the required vaccine doses and access to financing to make purchases. Specifically, Africa is scaling walls in the ongoing global race to access the vaccine as rich countries, representing just 13 percent of the world’s population, have already cornered more than half (51 percent) of the promised doses of leading Covid-19 vaccine candidates, according to Oxfam International.
2.7 billion people have had no social protection to cope with Covid-19 economic crisis (Oxfam International)
New Oxfam research shows that over a third of the world’s population has had no public money to cope with the effects of the pandemic. A new report “Shelter from the Storm”, done in partnership with Development Pathways, reviewed government programs used to inject additional money to help people, such as disability, unemployment, child, and elderly benefits, for 126 low and middle-income countries. It found none of them were adequate to meet everyone’s needs. Overall, the world has spent an additional $11.7 trillion this year to cope with the fallout from the coronavirus pandemic. Of this, $9.8 trillion (83%) was spent by 36 rich countries against just $42 billion (0.4%) in 59 low-income countries.
COVID-19 will likely widen yawning migrant pay gap − U.N. (Thompson Reuters Foundation)
Migrants earn up to 42% less than national workers in high-income countries, with the COVID-19 pandemic likely to exacerbate the pay gap and women worse affected than men, U.N. labour experts said on Monday. The pay discrepancy has widened markedly in many countries in the last five years, notably Cyprus, Italy, Portugal and Ireland, according to research by the International Labour Organization (ILO). The U.N. agency said much of the overall migrant pay gap could not be explained by differences in education, skills or experience, and was likely due to entrenched discrimination.
The International Organization for Migration (IOM) is appealing for EUR 100 million to continue providing urgent protection and critical assistance to vulnerable migrants from West and Central Africa along the Central and Western Mediterranean routes, as funding under the EU Trust Fund (EUTF) comes to an end. “Through the EU-IOM Joint Initiative, we have been able to assist over 100,000 migrants who might otherwise have been left in conditions of great peril; in detention centres, stranded and left for dead in deserts, or living in extremely difficult environments conducive to trafficking and smuggling, with no safe alternatives to better their lives and those of their families,” says the IOM Director General.
Update on the Joint IMF-WB Multipronged Approach to Address Debt Vulnerabilities (IMF)
Amid rising debt risks in low-income developing countries and emerging markets, the IMF and the WB have been implementing a multipronged approach (MPA) to address debt vulnerabilities. Amplification of debt risks owing to COVID-19 has upped the urgency to implement the MPA and highlights the importance of debt sustainability and transparency for long-term financing for development. At the same time, it should be noted that countries have limited capacities which are further stretched by COVID-19 and that implementation of the MPA by itself may not be sufficient to address debt vulnerabilities and risks from global economic shocks.
Related News
tralac Daily News
National
Second wave of Covid-19 threatens economy (IOL)
South Africa is on tenterhooks over the second wave of Covid-19 infections with experts warning the newest outbreak could wreak havoc on an already battered economy. Economists this week warned that this, coupled with the end of Covid-19 relief funds, could threaten the steady economic recovery and put consumer spending in jeopardy. Statistics South Africa said its data showed that the recovery in mining and manufacturing production had stalled due to the outbreak of Covid-19 in key trading partner countries and the associated lockdowns.
Sugar sector eyes master plan to protect its turf from big imports (IOL)
The South African sugar industry is looking to the recently signed Sugarcane Master Plan to stabilise the sector in 2021 after a flood of sugar imports devastated it. South African Sugar Association (Sasa) executive director Trix Trikam said last week, “We are particularly concerned about high volumes of sugar imports from Eswatini. India and Brazil have continued to be the main non-African countries importing sugar into South Africa. These issues are being addressed through the recently signed Sugarcane Value Chain Master Plan to 2030.”
Manufacturers urged to bolster internal mechanisms (Dailynews)
Zanzibar’s Second Vice-President Hemed Suleiman Abdallah has said it was crucial for local manufactures to strengthen internal system to satisfy the domestic market and surplus be sold in the international market. “From a production perspective, strengthening internal system means a companywide commitment to eliminate errors at every stage of the product development process – product design, process design, and manufacturing. It also means working closely with suppliers to eliminate defects from all incoming parts,” he noted.
‘Trading’ requires something to trade (Mmegi Online)
For Botswana’s aspirations of an export-led economy, AfCFTA is a dream come true. On the ground, however, is the recurring nightmare of AfCFTA leading to a swamping of the local market by cheap imports, drowning out the little manufacturing capacity available. Voices in certain circles fear that AfCFTA could be a ‘mega-South Africa’, which for decades has overshadowed the local productive sector empowered by the provisions of the SACU agreement.
Zimbabwe domestic power consumers get option to settle bills in foreign currency (Xinhua)
Zimbabwe’s power utility ZESA Holdings on Saturday joined the growing list of state entities which are charging for their services in foreign currency. The generated foreign currency will be used to procure equipment for the utility’s transmission and distribution network. “The power utility has introduced a system where all post-paid customers can optionally settle their bills in foreign currency at the prevailing bank rate in line with the multi-currency regime,” a statement from the company’s stakeholder relations unit said.
DR Congo now ratifies African Court Protocol (The Citizen)
The Democratic Republic of Congo (DRC) has ratified the African Court protocol bringing the signatory countries to 31. The giant country in the heart of Africa deposited its instrument of ratification at the African Union (AU) on Tuesday this week. As of to date, only six of 31 state parties to the protocol have deposited the declaration recognizing the competence of the Court to receive cases directly from NGOs and individuals.
Egypt to implement Arab Africa Trade Bridge programme in December (MENAFN.COM)
Egypt’s Minister of Trade and Industry Nevine Gamea announced, on Sunday, that her ministry will start implementing the Arab Africa Trade Bridges (AATB) programme, which was launched by the International Islamic Trade Finance Corporation (ITFC), during this month. Gamea added that the AATB programme will last until the end of September 2021. She noted that the programme aims to enhance capacity of Egyptian exporters and encourage exporting to new markets in Africa. The minister said that the Export Development Authority (EDA) would implement the programme in Egypt in cooperation with the ITFC, export councils, and the Federation of Egyptian Industries.
Group Seeks Delay in Implementation of ECOWAS Fuel Grade, Emission Regulations (THISDAYLIVE)
The Association of Motor Dealers of Nigeria (AMDON) has urged the federal government to request for a delay in the implementation of the Proposed ECOWAS Fuel Grade and Vehicle Emission Standards Regulations, which is expected to be in operation from January 1, 2021. The association further asked the government to independently review perceived errors in the regulations and address them to provide accurate assessment of the multi-billion-dollar costs and benefits, particularly in the light of the current financial stress occasioned by the COVID-19 pandemic, instability in the global oil market and recession.
Africa
MPs urged to learn from COVID-19 (The Herald)
As COVID-19 continues to sweep across the world with no immediate end in sight, SADC Members of Parliament have been urged to learn from the pandemic and work towards retaining their healthcare professionals, which has become a major challenge in some countries. Trudi Hartzenberg, the Executive Director of the Trade Law Centre (tralac), made the call recently when she addressed parliamentarians who represent their countries on the Standing Committee on Human Social Development and Special Programmes (HSDSP) of the SADC Parliamentary Forum.
Report: Implementation of AfCFTA will shape Nigeria’s international trade in 2021 (TheCable)
SB Morgen, Africa focused geopolitical research firm, has identified events that would shape Nigeria’s international trade dynamics in 2021. These are the ratification of the African Continental Free Trade Area (AfCFTA) agreement by the federal government, and the emergence of Ngozi Okonjo-Iweala as the director-general (DG) of the World Trade Organization (WTO) SB Morgen in its latest report, titled: ‘The year ahead: Light at the end of the tunnel, What to expect’ in 2021 said with a transition to the Biden-led United States (US) administration in January 2021, consensus will likely be reached for Okonjo-Iweala’s appointment, noting that a Nigerian nominee landing the position would give the country’s international reputation a much-needed boost.
AfCFTA: NAFDAC Harps on Adherence to Best Practices (THISDAYLIVE)
As the world awaits the full implementation of the African Continental Free Trade Agreement (AfCFTA), the National Agency for Food and Drug Administration and Control (NAFDAC) has called on small and medium-sized enterprises (SMEs) in the country to embrace best practices as well as ensure that they have Good Manufacturing Practice (GMP) and Satisfactory Analysis Report (SAR) for their products. The GMP and SAR will position local manufacturers to take competitive advantage of the nation’s involvement in the continental trade agreement and help in reducing the number of Nigerian made products that have been rejected internationally.
What opportunities does the AfCFTA hold for women? (NewsDay Zimbabwe)
According to the African Union chairperson, President Cyril Ramaphosa, the African Continental Free Trade Area (AfCFTA) will help advance the empowerment of Africa’s women, by improving women’s access to trade opportunities which will in turn facilitate economic freedom for women, and expand the productive capacities of countries. “We must ensure that there is sufficient support given to women-owned SMMEs and co-operatives in both local and regional economies,” he emphasised.
KRA Commissioner-General to Lead African Tax organization (Capital Business)
The Kenya Revenue Authority (KRA) Commissioner-General Githii Mburu has been appointed as the first Chairperson of the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes Africa Initiative. Africa Initiative is a continental program launched in 2014 by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum), its African members, and various partners. It aims at unpacking the benefits of tax transparency and exchange of information (EOI) to fight tax evasion and other illicit financial flows (IFFs) and serve African countries’ development.
AfDB says new strategy will address debt distress risks in Africa (Ghanaweb)
The African Development Bank (AfDB) will from next year roll out a five-year strategic economic governance plan for the continent, the Director of Macroeconomic Policy, Forecasting and Research at the bank, Dr. Morsy Hanan, has said. According to her, the “New Strategy for Economic Governance in Africa” (SEGA), expected to run from 2021 to 2025, deals with a comprehensive collation of data to inform regular debt sustainability analyses, and supports the design and adoption of legislation and regulations on implicit guarantees and contingent liabilities of state-owned enterprises (SOEs).
Africa expected to see a subdued economic recovery in 2021 (The Exchange)
Analysts at the African Trade Insurance Agency (ATI) annual roundtable noted that Africa is expected to see a subdued economic recovery in 2021 and not likely to reach 2019 growth levels until 2022. One of the striking features of the impact of the pandemic that was revealed as a key factor that should guide the continent’s recovery is that the pandemic is affecting a broader number of countries including more diversified economies and those who rely on aviation and tourism, unlike previous economic shocks that left their mark largely on commodity-dependent countries.
The speakers also noted that by 2021, six African countries are expected to record government gross debt over 100 per cent of GDP while debt burdens overall are expected to rise then stabilize by 2021/2022 above 60 per cent of GDP.
Africa’s Infrastructure Ministers to Meet Virtually to Validate Second Phase of PIDA and Launch of AfSEM (African Union)
The First extra-ordinary meeting of the Specialized Technical Committee on Transport, Intercontinental and Interregional Infrastructures, Energy and Tourism (STC-TTIIET) will be held from 14-15 December 2020 virtually, under the theme Africa’s Infrastructure Priorities 2020-2030. The meeting eyes at validating the priority list of projects for the Second Phase of the Program for Infrastructure Development in Africa (PIDA-PAP2).
Biennial Review Report: Comprehensive Africa Agriculture Development Programme (CAADP) (African Union)
The Second Biennial Review Report of the African Union Commission — on the Implementation of the Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity, and Improved Livelihoods – finds that considerable efforts have gone into improving the quality of the data, with more countries reporting in this round, and there is an overall positive trend in the performance of countries, even though only four countries achieved the required milestone to be on-track. This trajectory should be maintained, and the rate of progress accelerated while measures are put in place to address weaknesses.
African countries cautioned to wake up on sleeping ecommerce (UNECA)
As African countries, in general and those in Central Africa in particular, gear up towards going-live with the African Continental Free Trade Area (AfCFTA) in January 2021, they must tidy-up smart strategies for ecommerce, without which they would lose out considerably on the promise of the fourth industrial revolution – a scenario which is simply not acceptable. Ecommerce, which is the monetary exchange of goods, services and information products via the Internet, will be a key component of phase two negotiations of the AfCFTA.
Member states look away as EAC 2020/21 budget stalls (The Citizen)
The East African Community (EAC) and its organs will now be compelled to agree on the bungled budget for 2020/2021. After settling down for the $97.6 million estimates, the contentious issue is now on re-allocation of funds within the same ceiling. The main contenders are the Council of Ministers, a powerful policy organ of the Community, and the East African Legislative Assembly (Eala).
Related: EALA Speaker urges to settle budget matter (The Citizen)
EAC states pledge to ease trade (The East African)
Regional countries have agreed to make trade between them and with other countries cheaper, faster and simpler, in a significant boost for economic integration in East Africa and continental trade facilitation. Meeting in Nairobi under the first United Nations Conference on Trade and Development Africa e-Commerce Week, representatives from Burundi, Kenya, Rwanda, Tanzania, and Uganda said they would implement trade facilitation reforms. These include reducing non-tariff barriers such as burdensome and incompatible product regulations.
EAC contributes to safer One Stop Border Posts (EAC)
The training of trainers’ course on COVID-19 preparedness and response at 12 One Stop Border Posts between the EAC Partner States started in October 2020 and will end on Sunday, 13 December 2020 at the Gasenyi border post in Burundi. By then about 230 staff will have been trained and will scale up the measures by teaching further colleagues. “The scope of the training has focused on operations at the OSBP with close contact to travelers and their luggage including traded goods,” explains Anthony Kihara of AMREF Flying Doctors.
Here’s Africa’s ‘fire exit’ from Covid-19 pandemic (The East African)
Increasing intra-African trade, innovation, and the blue economy will provide African economies a “fire exit” from ravages of Covid-19 pandemic. These were some of the recommendations from the Kusi Ideas Festival, 2020 edition. “Why is Kenya importing things it used to export? Is it not because the informal sector is not being treated as an engine for growth?” he asked. Dr Mukhisa Kituyi, the secretary general of the United Nations Conference on Trade and Development (Unctad) said that all the economic recovery plans on the continent should be embedded within the health recovery plans.
The dangers of playing politics with COVID-19 cures (African Arguments)
Against the backdrop of the COVID-19 pandemic, court proceedings against the Gambia’s former president and his fraudulent HIV “treatment” underscore the dangers of politicians promoting unproven cures. In April 2020, President Andry Rajoelina of Madagascar announced that a plant-based tonic, Covid Organics (CVO), was an effective treatment for COVID-19.
International
Kenya-UK trade deal provides for other EAC member states to join in by 2025 (The East African)
Kenya is hoping that East African Community member states join the new trade agreement it signed on Wednesday with the UK. Although the agreement between Nairobi and London protects Kenya’s coffee, fresh vegetables, cut flowers and tea exports from taxation in the UK market, it also provides for exports of local products whose raw materials have been sourced from other developing countries. Kenyan officials say the deal has a framework for other countries in the region to join.
UK plans Africa conference for January (Energy Voice)
The UK Department for International Trade (DIT) will hold the Africa Investment Conference on January 20, 2021. The virtual event will focus on four areas: sustainable infrastructure, renewable energy, financial and professional services, and agriculture and agri-tech. The UK will no longer be part of the European Union as of January 1. As such, it is making a push for new trading relationships, seeing Africa as a key region. The country has struck new trade deals with 14 African partners. 35 African partners will receive preferential access. The UK-Africa Investment Summit at the beginning of 2020 saw 27 trade and investment deals signed, worth £6.5 billion. Participants made commitments of £8.9bn.
Kenya to gradually remove taxes on UK goods in pact (Business Daily)
Kenya will gradually remove taxes on imports from the UK after seven years following a trade pact the two countries signed Tuesday last week. Mr James Duddridge, the UK minister for Africa, said the deal – strategic Economic Partnership Agreement (EPA) – is aimed at “doing more trade with less friction” between the UK and the six-nation East African Community bloc. The pact, which will now have to be ratified by respective lawmakers, preserves duty- and quota-free access for exports originating from the EAC free trade area (FTA) after the UK formally leaves the European Union bloc at the end of this month.
UK-Africa trade after Brexit: Time for a reset (African Arguments)
As the UK prepares to leave the transition period with the European Union at the end of December 2020, there has been much discussion of what its newly independent trade strategy will look like. Much of this debate has focused on potential trading agreements with the EU and US, but far less on Africa. This may be understandable given that trade with Africa, amounting to £36.2 billion ($48 billion), represented just 2.5% of the UK’s total in 2019. However, Brexit combined with changing dynamics on the continent provide a huge opportunity for the UK and African countries to rethink their trade relations.
Aim for better Kenya, US trade deals in Biden era (Business Daily)
Kenya and the United States have strong and deep-rooted diplomatic relations, which have existed since Kenya attained self-rule. On February 6, 2020, President Uhuru Kenyatta and President Donald Trump in Washington DC announced the intent for Kenya and the US to negotiate and conclude a Free Trade Area Agreement (FTA). On July 8, the two countries officially launched negotiations for FTA. According to the World Bank, Kenya is one of Africa’s most dynamic economies and the second-largest beneficiary of Africa Growth Opportunity Act’s (Agoa) tariff benefits. The US views Kenya as a strategic partner in the region not only in terms of trade but also security. If successful, this agreement would be the first US FTA with a country in sub-Saharan Africa. Find out more.
China’s Southern Africa Debt Deals Reveal a Wider Plan (Chatham House)
Africa is experiencing its first continent-wide recession in 25 years due to the impact of the COVID-19, but many southern African states were already in economic distress prior to the pandemic – with Angola, Mozambique, Zambia and Zimbabwe partly because of unsustainable debt burdens they owe to China. The COVID-19 crisis propelled African debt – and repayment and forgiveness – to the top of the international agenda once again, although this time much of the debt is bilateral, non-concessionary, or commercial in origin.
As Pandemic Rages, Debt Burden on Developing Nations Grows (Voice of America)
As the coronavirus began to spread across the globe in the first half of 2020, international aid organizations began sounding the alarm about the outsized impact the virus would likely have on poor countries – especially those that are already forced to dedicate significant amounts of their annual budgets to paying off sovereign debts. Now, nearly a year into the pandemic, many of those warnings are coming true, and activists say efforts to relieve the debt burden on developing countries have been ineffectual at best, and a handout to private sector lenders at worst.
WTO may hold TRIPS meet early next year for further discussion on waiver proposal (@businessline)
To ensure that India-South Africa’s proposal for a temporary waiver of TRIPS (Trade Related Intellectual Property Rights) obligations to fight the Covid-19 pandemic does not get buried without further discussions, World Trade Organization (WTO) members are likely to consider an early meeting of the TRIPS Council in January or early-February, instead of sticking to the scheduled mid-March slot, according to a Geneva-based official. “As countries could not arrive at a decision on the waiver proposal at the TRIPS Council meeting on December 10 because of strong opposition by some developed nations, the chair proposed that members should consider holding the next formal meeting, which is scheduled on March 10-11 2021, in January or early February. This would allow further consideration of the waiver request in the more immediate future,” a Geneva-based official said.
Calibrating technology to tackle sustainable development challenges in Africa | UNCTAD
Technology can provide solutions to many development problems and new and emerging technologies can improve access to modern energy services and enhance agricultural productivity and livelihoods. But a deeper understanding of the full spectrum of change that these technologies can unleash across different socio-economic contexts, particularly in developing countries is needed. UNCTAD, which this week at the annual Science Forum in Pretoria, South Africa, announced a new technology assessment project it aims to roll out in key African countries.
The African Development Bank joined a group of 11 multilateral development banks (MDBs) and the International Monetary Fund (IMF) on Thursday in launching a first-ever joint report on financing the Sustainable Development Goals (SDGs). The launch took place during a virtual ceremony attended by the heads of the institutions. The report is released at the end of a critical year, with the COVID-19 pandemic threatening to reverse progress on the SDGs. In response, MDBs have collectively mobilized a global response package of $230 billion between 2020 and 2021, to reduce the pandemic’s impact, of which $75 billion will be directed to the world’s poorest countries before the end of 2020.
AU signs MoU with EU’s International Centre for Migration Policy Development (African Union)
The African Union Commission on Thursday, signed MoU with the International Centre for Migration Policy Development (ICMPD) to enhance existing cooperation on Migration, and Mobility Governance between the two organisations. The Memorandum of Understanding is the result of continuous engagement, informed by the priorities and objectives of the African Union in an effort to improve political stability, enhance safety and security, advance social development and economic prosperity. Migration governance, particularly in the areas of the free movement of people, labour migration and mobility, trade, and remittances, amongst others is central to this effort.
Package of declarations and recommendations adopted to help small businesses trade globally (WTO)
The Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) officially adopted at its meeting on 11 December a package of six recommendations and declarations aimed at addressing challenges smaller businesses face when they trade internationally. The package will be presented to all WTO members at a meeting of Heads of Delegation on 14 December. Ambassador José Luís Cancela (Uruguay), the Coordinator of the Group, noted that MSMEs often struggle to participate in international trade and have been hit very hard by the current pandemic. He added that by endorsing this package, the Group signals that it stands ready to help them.
Report shows marked decline in trade restrictions by WTO members amidst COVID-19 pandemic (WTO)
The Director-General’s latest annual overview of trade-related developments shows a marked slowdown in the number of trade-restrictive and trade-facilitating measures adopted by WTO members related to goods trade over the past year. The report, presented at a 11 December meeting of the WTO’s Trade Policy Review Body (TPRB), notes the decrease observed in regular measures between mid-October 2019 and mid-October 2020 was mainly the result of the sharp decline in overall global trade since the COVID-19 outbreak. The document at the same time provides information about the numerous trade-facilitating and support measures introduced by WTO economies in response to the economic downturn caused by the COVID-19 pandemic in order to ensure a solid economic recovery.
Annual overview of trade-related developments
How domestic Financial Institutions and Local Currency Investments Can Accelerate the Energy Transition (Renweable)
It is widely accepted that the deployment of renewable energy technologies must be scaled up significantly to accelerate the global energy transition. To achieve the target of generating 57 percent of total power from renewables by 2030 will require a doubling of current investments – amounting to over USD 700 billion per year in total. As the costs of renewable energy steadily decline, the sector is becoming increasingly attractive to those looking for stable and cost-effective investments that offer consistent and predictable returns alongside significant potential to stimulate employment and global economic recovery.
Africa: Climate change and sustainable development must be a two-way street (The Africa Report)
Fossil resources have enabled a revolutionary wave of innovation in our societies since the start of the 20th century, but there are hidden costs in fossil resources to society. An IPCC Special Report defines climate risk as the likelihood of unfavourable impacts occurring as a result of severe climate events interacting with vulnerable environmental, social, economic, political or cultural conditions. This category of risks continues to dominate World Economic Forum’s Global Risks Perception Survey
Five years after the adoption of the Paris Agreement: ECOWAS is more mobilized than ever for climate action (The New Dawn Liberia)
Five years after its adoption in Paris at COP21 organized by the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement became effective in 2020 and the ECOWAS Commission intends to reaffirm its commitment to support the global response to the threat of climate change. According to Mr. Sékou SANGARE, Commissioner in charge of Agriculture, Environment and Water Resources of ECOWAS “There is no time to waste in responding to the climate emergency, and this requires the action of all, in a spirit of solidarity and responsibility.”
Japan, S. Africa agree to beef up post-pandemic business ties (The Mainchi)
Japan and South Africa agreed at their foreign ministers’ meeting in Pretoria on Saturday to strengthen post-pandemic business ties, with many Japanese companies looking to enter the emerging market as a key gateway to the whole African continent. Foreign Minister Toshimitsu Motegi said in his talks with Naledi Pandor, South Africa’s minister of international relations and cooperation, that Japanese companies have resumed full-fledged operations in South Africa following a suspension due to the pandemic. The ministers agreed to convene a forum at an early date to spur bilateral investment, the ministry said.
Related News
tralac Daily News
National
Agricultural sector contribution to South Africa’s Gross Domestic Product (GDP) (NAMC)
South Africa’s economy bounced back in the third quarter (July to September) of 2020, coinciding with the easing of corona virus (COVID-19) lockdown restrictions. Gross Domestic Product (GDP) grew by an estimated 13,5% in the third quarter, giving an annualised growth rate of 66,1%. This follows the significant slump of 16,6% (annualised: -51,7%) in the second quarter (April to June) of 2020 during the most restrictive months of the lockdown (April, May and June). Since the first quarter of 2020, agricultural sector has been a positive contributor to the country’s GDP growth with an increase of 28.6%, becoming the strongest performer (15.1%) in the second quarter of 2020 despite the unpleasant conditions of COVID-19 pandemic. Agriculture continued to increase at a rate of 18,5% in the quarter of 2020.
SA needs structural reforms to bolster business confidence (Engineering News)
Business confidence continued its upward trend in November, but poor economic performance remains a concern. The business climate is still plagued by poor economic performance, recessionary conditions and high unemployment and fiscal unsustainability, says the South African Chamber of Commerce and Industry (SACCI). SACCI on Wednesday released the business confidence index for November, which is at 93.4 points. The index has climbed 23.3 points since the low of 70.1 points record in May 2020, amid harsher lockdown restrictions.
IMF asks Zambia to re-draft economic policy in return for funding (Eyewitness News)
Zambia must re-draft economic policy to make its public debt more sustainable, the International Monetary Fund said Wednesday after the copper-rich country requested IMF funding for reforms. Zambia, which has seen its external debt surge to nearly $12 billion this year, had made a formal request to the IMF on Tuesday. But wrapping up a visit to Lusaka, the director of IMF Africa’s Department, Abebe Aemro Selassie, said that “given the deep-rooted challenges faced, policies would need to be calibrated to restore sustainability while protecting the vulnerable and creating more inclusive growth”.
Kenya, Ethiopia border point to boost trade ties (Business Daily)
Kenya and Ethiopia have signalled an intent to deepen integration with a new border crossing after years of struggling to conduct robust bilateral trade under a regime of poor infrastructure. There has been subdued bilateral trade between the two countries as a result of non-tariff barriers such as long bureaucratic procedures, bans and sanctions. Officials see the Moyale One-Stop Border Posts an important signal to start implementing several key trading agreements reached between the two countries but which had largely been untouched.
Uganda’s Textile Industry Is Well Protected (New Vision)
The National Budget Framework Paper (NBFP) for FY2020/21 laid out planned interventions for Uganda’s economic transformation. In light of this agenda some tax policies were put in place to achieve this vision. Until this financial year 2020/21, the East African Community Common External Tariff (EAC CET) structure provided for a maximum import duty rate of 25% on textile fabrics. However, it was realised the duty rate of 25% was not providing the level of protection that is adequate to attract investments and add value to the cotton and create jobs and thus guarantee a market and better prices to farmers.
Yemi Osinbajo launches Process Manual on Port Operations (Nairametrics)
The Vice President of Nigeria, Yemi Osinbajo, has launched the Process Manual on Port Operations to boost efficiency and accountability in Nigeria’s port industry, and also ensure predictability. “The process manual is expected to ensure predictability, promote efficiency and accountability, reduce corruption in the port processes, eliminate bureaucratic bottlenecks faced by port users and reduce the opportunity for illegal demands in the ports,” he said.
In the next three years, an average Nigerian could see a reversal of decades of economic growth and the country could enter its deepest recession since the 1980s. The latest World Bank Nigeria Development Update (NDU) argues that this path could be avoided if progress in the current reforms is sustained and the right mix of policy measures is implemented. The report “Rising to the Challenge: Nigeria’s COVID response” takes stock on the recently implemented reforms and proposes policy options to mitigate the impact of COVID-19 and foster a resilient, sustainable, and inclusive recovery.
Nigeria’s crude oil export earnings rebounded by 116% in November – OPEC (Nairametrics)
OANDO Plc has disclosed the reason why the integrated oil giant has delayed the release of its third (Q3) Unaudited Financial Statement for 2020. The company stated that the inability of the oil company to meet its 2020, Q3 filing of accounts obligation, which was due on November 20, 2020, is as a result of the indefinite suspension of the company’s 2018 Annual General Meeting (AGM).
Africa
The upward trend in African countries liberalizing their visa regimes and welcoming African travelers continues, according to the 2020 Africa Visa Openness Index published by the African Union Commission and African Development Bank on Thursday. This fifth edition of the Index highlights the negative impact of the COVID-19 pandemic, which threatens to reverse Africa’s economic gains of recent years, affecting sectors from tourism through to investment. As travel restrictions ease and safety measures are put in place to contain the pandemic, sustaining progress and momentum on more comfortable continent-wide travel is vital.
Africa’s recovery from the COVID-19 pandemic will depend on the continent’s ability to mobilize resources, African Development Bank President Akinwumi Adesina said on Wednesday. “The speed and quality of recovery will depend on how much we are able to mobilize resources to deal with this,” Adesina said, adding that Africa needs global backing in many areas, but principally in three areas: fiscal support, healthcare provision and youth employment.
The Regional Integration Section of the Regional Integration and Trade Division (RITD) of the United Nations ECA seeks to carry out in-depth research and write an analytically rich and policy-relevant report on the governance of the interface between the AfCFTA and RECs FTAs, including the COMESA-EAC-SADC Tripartite FTA. The overall objective is to provide concrete policy actions that need to be adopted and implemented, including strategies on how to leverage the trade integration achievements of RECs for the benefit of the AfCFTA; as well as lessons that could be drawn from areas of failure of RECs FTAs towards enhancing the successful implementation of the AfCFTA.
‘No African nation yet to meet AfCFTA requirements’ (The Guardian Nigeria)
The Chartered Institute of Arbitrators (CIArb), yesterday, said no nation had met the requirements for the implementation of the African Continental Free Trade Agreement (AfCFTA), despite the political will to get the pact ratified in good time. They noted that with the coming of AfCFTA, Nigerian and African practitioners were on the verge of being relevant globally, adding that this could only be achieved by expanding frontiers of practice and knowledge base beyond the Nigerian context.
Mauritius holds a meeting to review its National AfCFTA Response strategy (UNECA)
The government of Mauritius, with technical assistance from the UN Economic Commission for Africa (ECA) and financial support from the European Union (EU), held a one-day meeting in Port Louis, Mauritius. The main purpose of the event was to review the Mauritius National Response Strategy, which is being developed to help Mauritius take advantage of the African Continental Free Trade Area (AfCFTA) agreement. The meeting also sensitized private operators in the country about the market opportunities offered by the continental agreement.
Indaba panel unpacks challenges to Africa’s industrialisation agenda (Engineering News)
The African export basket continues to lack manufactured products and is overly-reliant on raw materials and in cases, a single commodity; as a result, African countries continue to be affected by commodity volatility and to experience high inequality. Speaking during the Manufacturing Indaba on December 9, consultancy Deloitte emerging markets and Africa MD Dr Martyn Davies said countries with high levels of manufacturing value-add (MVA) had better opportunities to create employment and achieve higher equality. He explained that the countries with the highest Gini coefficients, or most inequality, had lower MVA as a percentage of gross domestic product (GDP).
Data, platforms and analytics helping Africa combat COVID-19, says ECA’s Chinganya (UNECA)
The Economic Commission for Africa (ECA) and the Global Partnership for Sustainable Development Data (GPSDD) on Wednesday hosted a virtual webinar showcasing the power of data partnerships in combating the ongoing novel coronavirus pandemic in Africa. The webinar brought together UN Resident Coordinators and their teams, Heads of National Statistical Offices and COVID-19 surveillance teams in Africa, and providers of data, interactive data, platforms, analytics and tested solutions to share their experiences, showcase results from their work and share learning from their collaborative efforts.
Smart Africa Convenes 27 African countries for its 9th Board Meeting (News Anyway)
The Smart Africa Alliance hosted its 9th Board Meeting virtually on the 7th of December 2020. The meeting welcomed the Islamic Republic of Mauritania as the 31st country member of the Smart Africa Alliance. Additionally, the meeting outcomes included approval of the Bulk broadband capacity project and launch of the Digital ID Blueprint for Africa, Smart Broadband 2025 Blueprint for Africa, ICTStartUps and Innovation Ecosystem Blueprint, and the Smart Villages Blueprint.
Africa is more prepared to fight new COVID-19 wave (UNECA)
Africa is better prepared to deal with a second wave of COVID-19 after stakeholders put measures in place to counter the initial pandemic’s adverse health effects. This is according to a panel of experts who took part in a special event on the second day of the 2020 virtual Africa Economic Conference, with the theme, “Africa beyond COVID-19: Acceleration towards inclusive and sustainable development.”
Assessing Impact of COVID-19 on W’Africa’s Economies (THISDAYLIVE)
The past one year has been tough for countries that depend heavily on primary products as their major source of revenue. COVID-19 saw many countries face turmoil linked to commodity dependence as commodity prices reacted negatively to the crisis, reflecting changes in supply and demand due to measures to limit contagion. Among those that were worst hit were West African countries because of their heavy dependence on primary products.
Airlines back in the sky, raising hope of recovery (The East African)
Tourism stakeholders are optimistic over industry’s recovery following Kenya Airways resumption of service on the Nairobi-New York route on November 29, despite low bookings ahead of the Christmas holiday. Regionally, last week, Uganda Airlines announced resumption of direct flights from Uganda to Mombasa. The flights, which resumed on December 4, have also lifted prospects of business between the two countries.
SADC and Africa Risk Capacity commit to strengthen cooperation (SADC)
The Southern African Development Community (SADC) Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, has commended the African Risk Capacity Group (ARC) for the cooperation that continues to exist with SADC in a number of areas of collaboration, both at the national and regional levels. The cooperation between SADC and ARC is guided by a Memorandum of Understanding (MoU) signed in October 2019.
International
UK and Kenya sign trade agreement (GOV.UK)
The UK has today (Tuesday 8 December) signed an Economic Partnership Agreement with Kenya. The deal was signed in London by International Trade Minister Ranil Jayawardena and Kenya’s Cabinet Secretary for Trade, Minister Betty Maina. This trade agreement will ensure that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market.
Top goods imports to the UK from Kenya last year were in tea, coffee and spices (£121 million); vegetables (£79 million); and live trees and plants, mostly flowers (£54 million). The UK market accounts for 43% of total exports of vegetables from Kenya as well as at least 9% of cut flowers, and this agreement will support Kenyans working in these sectors by maintaining tariff-free market access to the UK.
UNCTAD presents policy pathway to COVID-19 recovery (UNCTAD)
As the world reels from the deepening impacts of the coronavirus pandemic across health systems and the global economy and considers the protracted knock-on effects of a second wave, solutions are needed. A new report from UNCTAD, “Impact of the COVID-19 pandemic on trade and development: transitioning to a new normal”, plots both the economic impacts of the pandemic through 2020, and tangible first steps toward a better recovery. The greatest long-term risk, the report says, is worsening inequalities and vulnerabilities even long after a vaccine becomes available. But policy solutions do exist.
Fund COVAX to reduce COVID vaccination distribution inequity – UN chief (UN News)
The COVAX international vaccine initiative requires $4.2 billion over the next two months to ensure that “sooner rather than later”, World Health Organization (WHO)-approved inoculation can get underway in Africa, UN chief António Guterres said. While expressing his “hope that we will be able to do it before the second quarter”, he acknowledged that several countries have made “an enormous effort” to ensure vaccinations for their own populations while at the same time, the COVAX financing requirements have yet to be fully met.
Nine in 10 in poor nations could miss out as West hoards vaccines (Thompson Reuters Foundation)
Nine out of 10 people in dozens of poor nations could miss out on getting vaccinated against COVID-19 next year because rich countries have hoarded far more doses than they need, campaigners said on Wednesday. Rich nations home to 14% of the global population had bought 53% of the total stock of the most-promising vaccines as of last month, said the People’s Vaccine Alliance. They said pharmaceutical companies working on COVID-19 vaccines should openly share their technology and intellectual property through the World Health Organisation (WHO) so more doses can be manufactured.
Urgently waive intellectual property rules for COVID 19 vaccine (Amnesty International)
Governments should stop blocking a temporary waiver of some global intellectual property rules that will help boost global access to COVID-19 vaccines, Amnesty International and Human Rights Watch said today ahead of a key World Trade Organization (WTO) meeting in Geneva on December 10, 2020. If adopted, the waiver proposal would enable more governments to fulfil their obligations to respect the rights to life and health. The warning comes as vaccinations for COVID-19 begin in the United Kingdom, and are likely to begin in other countries in the near future.
WTO meet today to take up India, South Africa’s proposal to waive IP rights for Covid drugs (The Print)
The General Council of the World Trade Organisation (WTO) is set to take up a proposal floated by India and South Africa in October to temporarily suspend intellectual property rights (IPR) to make Covid-19 vaccines, medicines and medical devices accessible to poorer countries.
UNCTAD Evaluation Highlights LDCs’ Progress, Implementation Gaps on E-commerce Development (IISD)
The UN Conference on Trade and Development (UNCTAD) has published its first comprehensive review of its eTrade Readiness Assessment Programme. Initiated in 2017, the programme aims to identify and address challenges to the development of e-commerce, primarily in least developed countries (LDCs). Titled, ‘Fast-tracking implementation of eTrade Readiness Assessments,’ the report evaluates implementation measures taken in response to earlier recommendations made in seven policy areas:
Growing dimensions of Chinese presence in African continent (The Financial Express)
The evolving dynamics within the post-Brexit EU and the new US Biden Administration will need to take into account the growing influence of China in the African continent. The paradigm is changing and both Europe and the United States, in all likelihood, will try to even the scales within the matrix. This will be required because Africa is slowly developing its own narrative on the global stage.
Rebalancing Algeria’s Economic Relations with China (Chatham House)
The bilateral relationship between Algeria and China dates back to the Afro-Asian Bandung Conference in 1955. Their trade and investment relations took off in earnest in the 2000s during the era of high hydrocarbon rents, evolving gradually into a relationship of economic asymmetry and political expediency. Although China is likely to remain its preferred economic partner, strategic rebalancing would help Algeria hedge its bets and optimize relations with Beijing and beyond.
Brexit: SA’s wine exporters will actually be smiling (Food For Mzansi)
The South African wine industry will be able to export close to 71.5 million litres of wine tariff free to the UK in 2021 despite the country’s exit from the European Union, says Michael Mokhoro, stakeholder manager of Vinpro and the SA Liquor Brandowners Association’s Winebiz desk. This follows the signing of a trade agreement between the UK and members of the Southern African Customs Union (SACU), which includes South Africa, Lesotho, eSwatini, Botswana, Namibia and Mozambique that took place in September last year.
How cotton and its by-products can help create resilience for African smallholders (Trade 4 Dev News)
Cotton is a commercial crop grown mainly for its fibre or lint, a raw material used by the textile industry. In most least developed countries (LDCs) in Africa, raw lint is widely produced for export, creating vital revenue. But long and complex cotton-to-textile value chains are highly sensitive to external factors. These include policy-induced international price distortions, competition with manmade fibres and shocks such as the cancellation of orders from overseas textile manufacturers caused by the COVID-19 crisis.
UN and EIF launch interactive guide on cross-border paperless trade (ESCAP)
Cross-border paperless trade has great potential to not only grow trade competitiveness but also to address new challenges associated with e-commerce and the digital economy. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in collaboration with the United Nations Commission on International Trade Law (UNCITRAL) and the Enhanced Integrated Framework (EIF), today launched an interactive guide to support readiness assessments on cross-border paperless trade.
Related News
tralac Daily News
National
This is the single biggest threat to South Africa right now: Ramaphosa (BusinessTech)
President Cyril Ramaphosa says that South Africa’s 13.5% rebound in GDP during the third quarter of 2020 shows that a strong recovery is possible, even as the economy remains below its pre-pandemic levels. However, he warned that a second coronavirus wave in the country could derail recovery efforts. Commenting on the data released by Stats SA on Tuesday (8 December), the president said that GDP growth in the third quarter surpassed even the most optimistic market expectations.
“The mining and agriculture sectors in particular have demonstrated robust growth in the context of favourable market conditions. As a result of large trade surpluses, a record current account surplus is anticipated. The strong rebound in GDP growth for the third quarter provides support for the approach that we have taken both to confront the pandemic and to protect the economy. Our task now is to ensure that this momentum is sustained, to enable a full recovery of the economy.
Poultry Industry Meets Government on Industry Master Plan Amid Optimism About Sector Performance (Department of Trade, Industry and Competition)
Poultry industry executives met with the Minister of Trade, Industry and Competition: Mr Ebrahim Patel and the Minister of Agriculture, Land Reform and Rural Development: Ms Thoko Didiza yesterday to review implementation of the Poultry Master Plan signed in November 2019. “In a difficult year, we have seen promising gains in the South African poultry industry. We have had more than R1 billion invested by domestic companies, resulting in nearly 1 000 additional jobs and an encouraging increase in production. The next year will require more work to open up export markets and further drive transformation across the entire poultry value chain,” said Minister Patel.
Kenya eVisa system to be extended from 2021 (Business Daily)
The Kenya eVisa is being extended to travelers from all countries as part of a shift towards digitalisation. Previously, the Kenya eVisa had been available to people from select nations only. From January 1st, however, all nationalities that require a visa will benefit from the electronic system. The Kenya eVisa will be a mandatory entry requirement for non-exempt passport holders and will replace other visitor visas for Kenya. Increased use of the electronic visa will also boost security. New, biometric technology is being introduced at airports in preparation for a full transition to eVisas.
Poor govt policy hindering investment in renewable energy – report (Daily Monitor)
Inadequate government support and limited financing from commercial banks, among others, are hindering the private sector from investing in renewable energy, a new report has revealed. Dubbed, ‘Financing Mechanisms for Private Sector Investment in Renewable Energy Access in Uganda,’ the report shows that renewable energy is a profitable venture for investors as well as saving the environment. However, it indicates that the government does not provide the incentives in form of taxes, electricity subsidies and other sources of financing to attract the private sector to invest in renewable energy sources.
Tackling Corruption in the Nigerian Ports – A story of collective action highs, lows, and wins (CIPE)
Nigeria loses up to $1.95 billion USD in government revenue and $8.15 billion USD in private sector revenue annually due to corruption at the Nigerian ports. Money lost because of illicit financial flows at ports weighs very heavily on the economy of a country that as of May 2020 projects to borrow more than $14.1 billion USD to finance the 2020 budget. These losses severely constrict government programs and the capacity to develop and improve much-needed public infrastructure. At the same time, corruption at the ports can operate as a major deterrent to sustainable returns on foreign direct investment.
FG signs trade pact with Morocco, Singapore (Daily Trust)
The Federal Government of Nigeria has signed an Investment Protection Agreement (IPA) with Morocco and Singapore to raise investing confidence. Dr. Sani-Gwarzo said, “Efforts are being made to collaborate with the Ministry of Justice for the production of the Instrument of Ratification for the signature of Mr. President.” The permanent secretary revealed that the trade ministry had embarked on the review of the Industrial Policy of Nigeria, Nigeria Industrial Revolution Plan (NIRP) and the Trade Policy, while Investment Policy formulation was in progress with consultations with stakeholders.
Somalia making steps toward WTO accession (Trade 4 Dev News)
Becoming a member of the World Trade Organization (WTO) isn’t automatic – it’s a process that involves commitments and consensus, questions and responses, meetings and negotiations. Somalia started on its accession path in 2016 with an application to the WTO Director-General. Now, in 2020, the country has made some strides forward. This includes submitting in April the required Memorandum on the Foreign Trade Regime (MFTR), a document that outlines the country’s trade and economic policies as well as trade agreements with other countries. Based on the MFTR, WTO members have submitted over 150 questions to Somalia that the country will be responding to.
Africa
A Manchester Trade Paper: Despite the Dislocation of COVID, Africa Defies the Odds with the Commencement of AfCFTA Trading on January 1, 2021 (The Habari Network)
Even though a particularly disruptive global pandemic has had a negative effect on global trade, economic activity, and international cooperation, there is a bright spot shining from Africa. The continent is now on the verge of entering into a free trade regime that should stimulate intra-Africa trade and economic growth beyond its borders.
Our understanding is that there is a specific framework for the AfCFTA tariff reductions and eliminations. Specifically, Africa’s least developed countries (LDCs) will have ten years to complete the elimination of customs duties on 90 percent of their total products, while the more developed ones will only be entitled to five years. Overall, 7 percent of total African products will be classified as sensitive, with more extended tariff elimination transition periods, while 3 percent will be excluded from this exercise. For trading to effectively commence by January 1, 2021, the tariff schedules must be certified to meet the trade protocol’s liberalization requirements.
AfCFTA, AIDA: Africa’s dual pathways to economic integration, industrial development (African Newspage)
It was in a bid to promote intra-African trade and Pan African industrialization towards attaining the major objectives of African Economic Community (AEC), that the AU has continued to evolve various policy frameworks that will facilitate the successful realization of its vision “for an integrated, people-centred, prosperous Africa,” as enshrined in Agenda 2063: The Africa We Want.
Speaking on Africa’s journey towards industrialization, Mr Chizema said unlike other developing regions of the world, Africa had experienced what he called “a relative deindustrialization” with the share of manufacturing value added to Africa’s GDP falling from 12.8 percent in 2000 to 10.5 percent in 2016. “This does not mean that Africa’s industrial output is lower than 20 years ago but the pace of industrialization was slower than other sectors and far lower than that of other developing regions. For instance, Africa’s share in the global Manufacturing Value Added (MVA) has stagnated at around 1.5% between 2000 and 2013 while developing Asia’s share has almost doubled to 25% over the same period,” he add
Africa calls for international taxation systems reforms as it forges a common position on digital taxation (African Union)
In Africa, the renewed focus to raise additional financing for development and narrow the resource gap by accelerating Domestic Resource Mobilisation (DRM), has been at the center of the development strategy in recent years. However, to fully harness the potential in domestic resources, sealing existing loopholes associated with the Tax revenue under-collection remains a critical issue. Africa must address the structural issues such as tax loopholes; illicit financial flows and device innovative systems that facilitate trade and reduce the inefficiencies associated with cross-border payments and settlements.
COVID-19 Worsening Debt in Countries (COMESA)
Most countries in Sub-Saharan Africa which includes the COMESA region need to prioritize medium term policies such as structural transformation and economic diversification of individual economies, reforms in revenue mobilization and increase trade integration to deal with the worsening debt situation caused partly by the COVID-19 Pandemic. According to a special report authored by Senior Economist at the COMESA Monetary Institute, Dr Lucas Njoroge, the long term, policy priorities should be on ensuring that the debt plays a meaningful role and must be used for revenue generating activities that increase the productive capacity of the economies of the region.
African Economic Conference opens with calls for African solutions to COVID-19 challenges (UNECA)
The 2020 edition of the African Economic Conference (AEC) opened virtually on Tuesday with calls for the continent’s policymakers, researchers, development partners, and champions of policy change to design solutions to ensure Africa builds for the future in the aftermath of the Coronavirus pandemic. Speaking at the opening ceremony of the annual meeting, with the theme; Africa beyond COVID-19: acceleration towards inclusive sustainable development, senior officials from the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB) and the United Nations Development Programme (UNDP) agreed that Africa’s key challenge now was how to build better and return the continent to the path of sustainable development.
Dealing with the micro- and macroeconomic impacts of COVID-19 on Africa (UNECA)
Experts agree that Africa’s governments will have to strike a balance between health, economic and social policy interventions in the coming months to mitigate the negative impact of the COVID-19 pandemic. Measures to prevent the spread of the virus have dampened prospects for economic growth on the continent, due to the prolonged impact of lockdowns and restrictions on travel and movement of goods. While Africa’s young population shielded it from the worst of the pandemic, countries now face weak growth and a diversion of resources that may aggravate the economic impact of COVID-19.
Hope for a more prosperous Africa beyond COVID-19 (UNECA)
Beyond the dark cloud of the COVID-19 pandemic is a silver lining of a more sustainably prosperous Africa. This was the message from the panellists who gathered virtually on the first day of the 2020 African Economic Conference. To emerge stronger from the pandemic, African governments were advised to put in place transparent and accountable governance structures, that would ensure inclusivity and fiscal sustainability. Dr. Hanan Morsy, Director of the Macroeconomic Policy, Forecasting and Research Department at the African Development Bank (AfDB), said the pandemic gives a “one-in-a-century chance” to build a better Africa going forward.
Kagame: Africans must connect easily despite Covid-19 pandemic (The New Times)
President Paul Kagame on Tuesday, December 8, made the case for continued collaboration among African countries, which he said will be critical for the continent to emerge from the current Covid-19 period in safety and prosperity. The head of state was speaking virtually at the Kusi Ideas Festival, 2020 Edition. Kagame noted that there has been a lot of speculation about why Africa is handling the Covid-19 pandemic better than expected. “What really matters is that lessons we have learned and the solutions we have applied will help us to recover together,” he said. “We will only get there if we harness the power of technology,” he added.
COVID-19 recovery: African youth-led Policy Paper makes case for better governance and innovation (Africa Renewal)
Skills development relevant to the digital economy “is one of the most critical investments that need to be made to ensure a sustained economic growth after the COVID-19 pandemic,” the paper states, calling for restrictions on internet freedom to be criminalized. The paper is loaded with sector-specific recommendations. For example, on the economic front, it demands immediate stimulus packages for young people who lost jobs as a result of the pandemic, as well as “increasing investments in youth entrepreneurship and innovation by financially supporting SMEs [small and medium-sized enterprises], by giving grants, loans, tax relief, payroll protection and loans.” Young people would like African governments to “adopt e-healthcare by engaging youth digital innovations to provide quality, affordable and timely health services,” according to the policy paper.
Ten years on – reviewing the trends driving Africa’s allure (Standard Bank Research)
In this report we continue our review of the five structural trends that we outlined, almost a decade ago, to be behind Africa’s underlying economic and institutional appeal. Thus far we have reviewed Africa’s demographic and income developments, as well as the opportunities and risks that emerge as a result of the continent’s rapid urbanisation. We now look to the ICT sector, considering how technological advancements in Africa continue to drive economic activity; attract investment; enable income and efficiency gains; and, in so doing, allow the potential for institutional and developmental leapfrogging in key economies on the continent.
African leaders commit to reduce internet cost by 50% (The New Times)
African leaders under the Smart Africa Alliance on Monday, December 7, committed to bring down the cost of the internet in their countries under an ambitious project that will be implemented starting next year. The alliance has 30 member countries, representing over 750 million people and over 40 private sector members committed to the advancement of Africa through digital transformation. Mauritania became the latest member of the alliance, bringing member countries to 31.
Nigeria to spearhead Africa refinery capacity additions by 2024 (EnergyNews)
Nigeria is expected to drive the refinery capacity growth in Africa by 2024, contributing around 71% of the region’s total growth. Nigeria is likely to add 1.5 million barrels per day (mmbd) of refinery capacity by 2024, says GlobalData, a leading data, and analytics company. lobalData’s report, ‘Refining Industry Outlook in Africa to 2024‘, reveals that refining capacity in Africa is expected to increase by around 55% from 3.7 mmbd in 2020 to 5.8 mmbd by 2024.
Access to climate funds, challenge for ECOWAS members (The Punch)
The ECOWAS Commission has lamented the inability of the member countries of the Economic Community of West African States to access funds to tackle climate change. The regional body noted that the ratification of the Paris Climate Agreement by the ECOWAS member states in 2015 marked an important turning point in the process of combating climate change. Speaking at the opening of a four-day training for national experts in the development of climate projects to access Green Climate Funds in Abuja on Tuesday, the Director, Environment and Natural Resources, ECOWAS, Dr Johnson Boanuh, said despite the existence of several funds, difficulties in
EABC Urges EAC Partner States to market Region as a single investment destination (Capital Business)
The East African Business Council (EABC) is urging East Africa Partner States to harmonise investment incentives and market East Africa as a single investment destination. Speaking at the two-day Virtual Conference on Trade & Investment Opportunities in East Africa Beyond COVID-19, Nick Nesbitt, EABC Chair and the Chief Guest said: “We all have a responsibility to improve the investment climate in East Africa to attract more investments into the region.”
IRENA and African Development Bank partner to scale up renewable energy investments in Africa (AfDB)
The International Renewable Energy Agency (IRENA) and the African Development Bank have agreed to jointly support investment in low carbon energy projects, a move expected to advance Africa’s energy transition. Francesco La Camera, IRENA Director-General said, “this agreement represents the type of coordinated international cooperation that is the cornerstone of the realization of sustainable development in Africa and the achievement of Paris Agreement goals. We will pursue an action-oriented agenda that puts African countries on a path to realizing their full renewable energy potential.”
Africa CDC, COMESA to Collaborate in Promoting Safe Trade (COMESA)
Discussions between the Africa Center for Diseases Control and Prevention (CDC) and COMESA are on course to establish useful collaborations on healthy trade during and post Covid-19. The envisaged partnership will include provision of technical support on public health to trade facilitation initiatives to protect lives and livelihoods. The collaboration will be on trade related issues to ensure harmonized messaging across the region and capacity building on health. “As trade guidelines are developed and implemented across the region, Africa CDC would like to be involved to ensure public health measures are incorporated to prevent likelihood of possible diseases transmission through trade,” Dr Ouma said.
SADC MPs call for debt waiver (The Herald)
The 48th Plenary Assembly Session of the SADC Parliamentary Forum has adopted a motion exhorting the regional body to support an initiative by Speakers and heads of African national parliaments to call for total cancellation of the continent’s foreign debt. Speaker of the Parliament of South Africa, Honourable Thandi Modise said: “Well before the outbreak of COVID-19, most African countries were heavily indebted, with statistics showing that more than half of African countries spend more on debt servicing than they do on education or healthcare – sectors crucial to Africa and our region’s socio-economic development.”
International
Kenya seeks to cement UK market after trade deal (The East African)
Kenyan officials say the new trade agreement with the United Kingdom will protect an invaluable market for local producers, creating continuity after Brexit. On Tuesday, Kenya formally inked the deal with the UK, ending an era of doing business with Britain through the protocols of the European Union, which London will be officially exiting at the end of this month. “We have agreed on a comprehensive package of benefits that will ensure a secure, long-term and predictable market access for exports originating from the EAC free trade area,” Trade and Industrialisation Cabinet Secretary Betty Maina said in a statement on Tuesday. “This agreement is expected to drive growth & expand exports of priority sectors and value chains identified in the national export and development strategy, including in agricultural, manufacturing, fisheries, and livestock sectors.”
Mo Ibrahim: Why Africa must emerge more resilient from the COVID crisis (Atlantic Council)
The COVID-19 pandemic has stressed economies and societies around the world, and in Africa the crisis risks reversing the governance and development successes of the last few decades. That’s the message Dr. Mo Ibrahim, a Sudanese-British entrepreneur, philanthropist, and founder of the Mo Ibrahim Foundation, conveyed during an Atlantic Council Front Page event on December 8. A well-known Afro-optimist, Ibrahim has invested in the continent’s democratic progress and has focused on tackling practical governance issues. While the pandemic has exposed such problems across the world, he noted, one of its lessons is that Africa must be “more self-sufficient” and “resilient.”
Leveraging Digital Transformation in a post-COVID Era: Panel Focuses on Africa’s Digital Opportunities and Obstacles, Striking an Optimistic Note (Portulans Institute)
On Monday, 30 November, Portulans Institute, in partnership with the UN Economic Commission for Africa (UNECA), hosted a virtual panel event focused on leveraging digital transformation in Africa in the post-COVID era. This special event complements the series of launches previously organized by the Portulans Institute in cooperation with UNESCO. The session targeted stakeholders involved in nurturing and building a digital ecosystem in Africa, in particular policymakers, entrepreneurs, financial leaders and academics. During the panel, Portulans Institute Co-founder Dr. Bruno Lanvin also presented regional data and insights from the 2020 Network Readiness Index.
How to reignite Africa’s growth and avoid the need for future debt jubilee (Brookings)
Both the International Monetary Fund (IMF) and the African Development Bank (AfDB) forecast a sharp decline in aggregate growth because of the global health crisis. Africa is set to experience its first recession in about two decades. When you take apart these aggregate forecasts and examine individual sectors, it becomes obvious why Africa stands to lose the most. Economies of the continent are heavily dependent on external flows that emanate from countries hit hard by the pandemic. Those flows include trade in oil and other commodities, foreign direct investment, remittances, development aid, and tourism. A more conducive international architecture of sovereign debt coupled with a shift in the governance system in Africa would not only help align debtors and creditors’ incentives to resolve debt problems. It may forestall any need to consider a debt jubilee down the road.
COVID-19 drives large international trade declines in 2020 (UNCTAD)
According to UNCTAD’s latest nowcasts (run on 8.12.2020), the value of global merchandise trade is predicted to fall by 5.6% in 2020 compared with last year. This would be the biggest fall in merchandise trade since 2009, when trade fell by 22%. This is a significantly more optimistic nowcast than only a few weeks ago when UNCTAD nowcasts were estimating a fall of 9%. The nowcasts – data-led projections for the immediate future – were published today as part of UNCTAD’s comprehensive annual Handbook of Statistics for 2020, which presents the statistical landscape for 2019 with nowcasts for 2020. The predicted decline in services trade is much greater, with services likely to fall by 15.4% in 2020 compared with 2019. This would be the biggest decline in services trade since 1990, when this series began. In 2009, following the global financial crisis, services trade fell by 9.5%.
Should trade continue to be global after the pandemic? (World Economic Forum)
Ten months in, the pandemic still poses a threat to lives and livelihoods in many parts of the world. Among its many impacts are the cracks in our international supply chains, which are crucial to keeping globalized economies ticking along. Continued globalization, with a focus on equitable distribution, and sustainable free trade are crucially important enablers on the road to collective recovery. Standard Chartered’s Trade Opportunity Report points to a combined opportunity of almost $40 billion for exporters to grow bilateral trade between India and 10 key markets, across multiple sectors.
China-Africa trade falls 10 per cent on pandemic, commodities slump (South China Morning Post)
Trade between China and Africa fell by 10.6 per cent in the first 11 months from a year ago amid the pandemic, but analysts expect a rebound next year as key commodities like oil and copper recover. Chinese customs data released on Monday showed two-way trade amounted to US$167.7 billion from January to November, driven down by lower commodity prices and a coronavirus-fuelled economic slump, according to analysts. China’s exports to Africa edged up by 0.6 per cent to US$101.47 billion in the period from a year earlier. But China’s imports from Africa plunged 23.6 per cent to US$66.3 billion.
Developing countries raise climate ambitions to plot path out of pandemic (UN News)
UNDP is supporting 115 developing countries, to enhance their Nationally Determined Contributions (NDCs) – the specific steps that each country intends to take to help meet the goals of the 2015 Paris Agreement, which committed the international community to restrict global warming to “well below 2 degrees Celsius” and aim, if possible, for 1.5C. Signatories to the landmark Agreement are due to meet online for a Climate Ambition Summit on Saturday, marking the fifth anniversary of the pact, and to set out new and ambitious commitments for the next five years, which could provide a major boost for the next landmark meeting, COP26 in Glasgow, Scotland, next November.
MSF calls on World Trade Organization to waive Covid vaccine IP (Health24)
Doctors Without Borders (Médecins Sans Frontières - MSF) is calling on governments to put lives before profits in ensuring that there is equitable access to the Covid-19 vaccine. The international medical humanitarian organisation is running a campaign ahead of the World Trade Organization (WTO)’s General Council meeting on 10 December to consider a proposal from South Africa and India. The proposal also seeks to increase the capacity of vaccine production in middle and low-income countries in order to improve the chances of accessing life-saving treatment. Moderna said that it can only produce between 100 million and 125 million doses available globally in the first quarter of 2021.
Breaking: AU-EU meeting postponed ‘until further notice’ (Devex)
A videoconference between European Union and African leaders planned for Wednesday has been postponed at the last minute. With the 6th EU-African Union summit originally planned for this year postponed due to the COVID-19 pandemic, Wednesday’s meeting was billed by the EU as “an opportunity to build further momentum towards the upcoming summit and discuss the partnership between Europe and Africa.”
Related News
tralac Daily News
National
SA GDP grew by 13.5% y/y in third quarter of 2020 (Eyewitness News)
Statistician-General Risenga Maluleke on Tuesday released the results of the gross domestic product (GDP) for the third quarter of 2020, revealing that the South African economy grew by an annualised rate of 66.1% in the third quarter – or 13.5% year on year. Manufacturing, trade and mining were the biggest drivers of growth in the third quarter. The manufacturing industry rose at an annualised rate of 210.2%, mostly driven by increases in the production of basic metal products, petroleum, vehicles, and food and beverages.
SA production of hand sanitisers earns export revenues of R1.6bn (Business Report)
Local production of hand sanitisers had contributed to saving lives in South Africa and had so far earned export revenues of R1.6 billion for the country, Trade, Industry and Competition Minister Ebrahim Patel said yesterday. He said at the release of data on South African exports of hand sanitiser products that between June and November this year, permits for the export of hand sanitisers to 30 other African countries, including Nigeria, Ghana, Kenya, Mozambique and Botswana, amounted to R1.66bn billion.
Sugar Master Plan hits the sweet spot (SAnews)
Small and large scale farmers in Pongola, KwaZulu-Natal, have welcomed the recently signed Sugar Industry Master Plan. The farmers are looking forward to seeing their sugar cane farming businesses growing after having been severely affected by the COVID-19 pandemic. Cabinet recently welcomed the plan which seeks to take urgent action to protect thousands of jobs, rural livelihoods and businesses, and at the same time create a bold new ambition for the future, which seeks to create diversified revenue streams for sugar producers, and create significant new job opportunities.
The Department of Trade, Industry and Competition (the dtic) and the National Cleaner Production Centre South Africa (NCPC-SA), in partnership with the United Nations Industrial Development Organisation (UNIDO), has launched the Global Eco-Industrial Parks Programme (GEIPP) on Monday, 7 December 2020. According to Deputy Director General of the dtic, Mr Sipho Zikode, the launch marked a very important chapter in building capacity of state-led industrial parks in the country towards the articulation of green economy.
Zim, SA to deepen trade ties (The Herald)
South Africa wants to scale up trade and economic cooperation with Zimbabwe. “Engaging South African companies involved in work in Zimbabwe, engaging economic organisations in Zimbabwe to try and understand the key priorities that should be there between the two countries. I think there has been a lot of progress on that and there have been a few investors that came from South Africa during my period here.” However, there have been concerns that trade is one way with most of the products coming into Zimbabwe and not the other way round.
Government destroys cars – for being illegally imported into SA (HeraldLIVE)
Motorists are warned to make sure they are buying legal vehicles – otherwise it can be confiscated by the state. This comes as a joint government task force will on Tuesday crush a number of illegally imported second-hand vehicles. The proliferation of second-hand motor vehicles into the country from Europe, Asia and the rest of Africa has become a serious risk to the survival of the legitimate motor vehicle industry in the country, the SA Revenue Service said in a statement.
Zimbabwe: Losing millions from illicit gold mining trade (The Africa Report)
In Zimbabwe, the majority of the working population can be found in the informal sector. And in mineral-rich areas of the country, people are continuously risking their lives digging underground in search of gold, hoping to make enough money to take them out of poverty. The recent case of Zimbabwe Miners Federation president Henrietta Rushwaya demonstrates the government’s dealings in promoting illicit financial flows and smuggling of gold outside the country.
Relief for cross border traders (The Herald)
Cross border traders have received a huge relief following an agreement between the Cross Border Traders Association and Kei Laboratories. While other local laboratories charge up to US$60 for such a test, Kei Laboratories will charge US$15 for cross border traders, making it much easier for them to afford the service. Cross border traders have been stranded since the major borders opened last week, as they could not afford the Covid-19 tests that will enable them to show border officials a positive result before they are allowed out.
‘ICTs to anchor growth’ (The Herald)
Zimbabwe will continue adopting information communication technologies (ICTs) to facilitate economic development and transformation, President Mnangagwa told the 9th Smart Africa virtual board meeting yesterday. “To fully exploit the immense potential of ICTs, inclusive guidelines continue to be developed, deployed and managed for national development and transformation. Key among these is Smart Zimbabwe 2030 Master Plan, which permeates through integrated sector specific pillars. This will see Smart Solutions being deployed to achieve Smart Government, Smart Agriculture, Smart Cities, Smart Education, Smart Transport and Smart Health,” said President Mnangagwa.
Trade Grew in Q3 2020 Due to Faster Increase in Imports But Slower Recovery in Exports (Proshare)
The value of Nigeria’s merchandise trade stood at N8,374.4billion in Q3 2020. This represents an increase of 34.15% in Q3, 2020 compared to Q2, 2020 but a decline of 8.85% compared to Q3, 2019. Total trade year to date amounted to N23,203.9billion. Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,641.87billion or 30.51%), United States (N482.3billion or 8.96%), The Netherlands (N443.5billion or 8.24%) and India (N354.1billion or 6.58%) respectively.
Namibia concerned over AfCFTA trading (New Era)
While Namibia is appreciative of the three initial draft tariff offers that are ready for implementation, government said it is concerned about the commencement of trading guided by the African Continental Free Trade Area (AfCFTA) agreement. The government says the three offers are not per the objectives of the AfCFTA, which aims to increase intra-Africa trade from the estimates of 18%. Mbumba said Namibia applauds the seven member states of SACU and CEMAC that have already submitted their initial draft tariff offers. Equally, Namibia commended the 11 African member states that have submitted their schedules of Specific Commitment on Trade in Services with the AU.
EPZA calls on Tanzanians to buy local products (Dailynews)
The Export and Processing Zones Authority (EPZA) has urged Tanzanians to buy goods made from local industries because they have high quality than the imported goods. “When we continue buying imported goods with low quality is sabotaging the government efforts to put enabling environment and attracting more investments in the industrial sector,” EPZA Director of Investment Promotion and Facilitation James Maziku said. He emphasized that the 20 per cent of goods sold in the local market have the same quality as those meant for exports.
Minister Nshuti explains $35 fee on Tz cargo trucks (The New Times)
The $35 fee paid by each truck entering Rwanda, from Tanzania, is for drivers accommodation in Covid-19 pandemic isolation centres so as to prevent the spread of the pandemic and “is not a tax per se”, Manasseh Nshuti, Rwanda’s Minister of State in charge of EAC affairs, has told The New Times.
Africa
The Governing Council of the Pan-African Payment and Settlement System Holds Inaugural Meeting (Afreximbank)
The interim Governing Council of the Pan-African Payment and Settlement System (PAPSS) held its inaugural meeting in Cairo on 3 December 2020. Developed by African Export-Import Bank (Afreximbank), under the auspices of the African Continental Free Trade Area (AfCFTA) Secretariat and the African Union (AU), PAPSS will enable intra-African trade and commerce payments to be made in African currencies in furtherance of the goals of the AfCFTA. The meeting was the start of the implementation of a system that would minimize the financial cost of cross border trade and improve financial integration as well as Africa’s trade and investment competitiveness, Afreximbank President, Professor Benedict Oramah said.
African Union: Long-awaited Africa-wide free trade zone opens on January 1st (Daily Maverick)
The AU summit had made a push for those countries not yet ready to trade on January 1 ‘to get on the bus’. The summit had decided these countries should ratify the AfCFTA and submit their tariff offers by June 30 2021. Many of Africa’s most important economies – including South Africa – will start duty-free trading of goods among themselves on January 1 when the eagerly awaited Africa Continental Free Trade Agreement (AfCFTA) goes into operation.
‘$140bn yearly loss to corruption can address Africa’s power challenge’ (The Guardian Nigeria)
If Nigeria and other African countries checkmate the yearly loss of $140 billion to corruption, the continent might be able to reduce rising production costs and improve citizens’ access to the regular power supply, members of the organised private sector have said. Citing data from the African Union (AU), the Executive Director, Centre for International Private Enterprise (CIPE) Andrew Wilson, stated that the lost income is enough to provide power 24 hours every day to every citizen in the continent for the next three years.
African countries must strengthen governance and international partnerships, while also making better use of abundant natural resources to accelerate economic recovery in the post-COVID-19 period, the International Forum on African Leadership heard. African leaders must be at their creative best to secure critical global partnerships and to drive the continent’s economic resurgence, said Lazarus Chakweras, President of the Republic of Malawi. “The COVID-19 pandemic has taught us that poor governance damages public trust in government interventions. We cannot attract the world to our nations if our nations are in disarray,” he said..
UN offers bleak outlook for East Africa due to Covid-19 (The East African)
Only four East African countries are still on course to record positive economic growth in 2020 as a result of the Covid-19 pandemic, according to Mama Keita, the head of the United Nations Economic Commission for Africa (UNECA) sub-regional office for Eastern Africa. South Sudan leads with an estimated 4.1 percent GDP growth, followed by Ethiopia and Tanzania on 1.9 percent each and Kenya on 1 percent. The region will see a sharp GDP growth slowdown from 6.6 percent in 2019 to 0.6 percent in 2020.
Morocco Seeks to Reduce Energy Consumption by 20% by 2030 (Morocco World News)
Morocco’s plan for the development of renewable energies plans to reduce energy consumption by 20% by 2030. Minister of Energy Aziz Rabbah participated in a virtual meeting of the Energy Transition Council on Friday. The UK organized the virtual meeting as part of its presidency of COP26.
Smart Africa Meeting: Museveni Pushes for Implementation of One Network Area (ChimpReports)
President Museveni has urged the Smart Africa Initiative to look into the possibility of One Network Area (ONA) to promote regional integration by bringing down the high cost of mobile roaming. “We believe if our people are able to call Uganda, Kenya, Rwanda, Tanzania freely – without any hinderance or high costs, it would facilitate regional integration,” said Gender Minister Frank Tumwebaze. Smart Africa is a commitment from African Heads of State and Government to accelerate sustainable socioeconomic development on the continent, ushering Africa into a knowledge economy through affordable access to Broadband and usage of Information and Communications Technologies.
AfCFTA: We need African Union protocol on women – AU Chairman (Nairametrics)
The African Union Chairman and President of South Africa, Cyril Ramaphosa, has called for an African Union protocol on women to enable female inclusion in Africa’s economy, as the African Continental Free Trade Area (AfCFTA) goes into implementation next year. The AU leaders called on a treaty to boost female inclusion and small-scale enterprises to trade across borders, as the agreement goes into place.
An 18-month project on mitigating the impact of COVID-19 on food and nutrition security using Climate Smart Technologies (CSA) funded to the tune of US$180,000 by the European Union (EU) was launched at a colourful event in Eswatini on 23rd November 2020, while Mozambique was still doing preparatory work. The EU has contributed Euro 8 million to the GCCA+ project to increase the capabilities of SADC Member States to mitigate and adapt to the effects of climate change, and to have their voices better heard in the international climate change negotiations.
International
Brexit: Final bid to prevent huge new tariffs ruining African farmers amid allegations of UK ‘bullying’ (Independent)
A last-gasp bid will be made to prevent Brexit ruining African farmers – and hitting British exports – amid allegations of government “bullying” of developing countries. Farmers in Ghana will be hit with huge new tariffs on key exports including bananas and tuna, unless the country agrees to “roll over” its existing trade deal, from the UK’s EU membership, by the end of the month. But its government has protested it would be forced to break a legal agreement with other West African countries – and has condemned the “take it or leave it” approach pursued by London.
New Africa-Europe Foundation and five Strategy Groups launched to enhance a common vision for strengthened partnership (European Commission)
The Africa-Europe Foundation was established by Friends of Europe and the Mo Ibrahim Foundation, in partnership with ONE and the Africa Climate Foundation. High Representative/Vice-President, Josep Borrell, stressed: “Our political ambition to strengthen the partnership between Europe and Africa has been made, loud and clear. And to make this a reality, we need to go beyond narratives and we need to think outside the box. We need to work with partners from backgrounds as diverse as possible, so that innovative ideas and proposals for action can emerge. The Foundation which is being launched today will help us reaching this objective.”
Africa and Europe join forces to fight Illicit Financial Flows (IFFs) in Africa (European Commission)
The African Union is today launching a €7 million Multi Donor Action with the European Union and the German Federal Ministry of Economic Development and Cooperation. The joint action will enhance efforts to combat the scourge of IFFs on the African Continent. HE Birgitte Markussen, EU Ambassador to the African Union said: “This project is of strategic importance both for Africa and Europe and aligns with the commitment made to fight IFFs in Africa during the EU-Africa Summit in Abidjan. Fighting illicit financial flows is part of efforts to collect more and spend better to support countries’ development.”
European Union and African Union sign partnership to scale up preparedness for health emergencies (European Commission)
The European Centre for Disease Prevention and Control (ECDC) and the Africa Centres for Disease Control and Prevention (Africa CDC) launched a new partnership initiative to strengthen the capacity of Africa CDC to prepare for and respond to public health threats in Africa. The four-year project ‘EU for health security in Africa: ECDC for Africa CDC’, funded by the EU, will also facilitate harmonised surveillance and disease intelligence, and support the implementation of the public health workforce strategy of Africa CDC.
Electronics and automotive products lift merchandise trade in Q3, services lag behind (WTO)
The third quarter of 2020 saw a partial recovery of world trade in manufactured goods, led by electronics, textiles and automotive products, as production resumed and lockdown measures were eased in major economies, new WTO statistics show. However, despite substantial improvement in recent months, merchandise trade is still well below 2019 levels, and preliminary estimates suggest services trade remains severely depressed.
Leveraging trade to end hunger (FAO)
FAO’s Committee on Commodity Problems (CCP) today organized a special event to discuss the importance of food and agricultural trade for ending global hunger, seeking to identify critical trade-offs associated with different policy measures and possible priorities for action. “Trade is a powerful tool,” FAO Director-General, QU Dongyu, emphasized, pointing to three cardinal ways to put that power to use: avoid raising trade barriers, especially in periods of crisis; formulate coherent and aligned policies to address trade-offs; and harness the power of digital solutions and innovation.
Guterres spotlights ‘critical role’ of aviation in pandemic recovery, marking International Day (UN News)
“Aviation is an important engine of our world, and will play a critical role in lifting the world to recovery from COVID-19. Let us ensure it receives the support it needs to keep the world’s nations connected and united,” Secretary-General António Guterres said in a message commemorating Monday’s International Civil Aviation Day. The sector has been hit hard by the coronavirus, which has disrupted travel, the transportation industry overall, and operations of airlines and airports globally.
Brief Explores Role of Finance and Technology in Achieving SDGs (IISD)
The IISD has published a policy brief on the role of finance and technology in achieving sustainable development. The brief argues that “technology, finance, and capacity building, together with inclusive and equitable globalization and trade, regional integration, and enabling environments” can help address climate change, biodiversity loss, growing inequalities, poverty, and hunger, among other challenges.
Experts advocate for ‘basic set of metrics’ to define women’s economic empowerment (Devex)
The growing number of tools to measure women’s economic empowerment makes it nearly impossible for programs to compare work across contexts, according to several gender data experts. Many gender data experts see the need to harmonize indicators, but debate continues over how realistic it is to unify metrics on such a complex issue across different contexts.
Related News
tralac Daily News
AfCFTA updates
African Union Heads of State and Government have underscored the urgent need for member states to kick-start trading activities, under the African Continental Free Trade Area (AfCFTA).The decision was adopted during a virtual meeting of the 13th Extra Ordinary Session of the Assembly of the Union on the AfCFTA, held on Saturday 5 December 2020, under the Chairmanship of H.E. Mr Cyril Ramaphosa, President of the Republic of South Africa and Chairperson of the African Union (AU).
“Today we stand on the cusp of a new era in the progress of our continent. The moment that we have all been working painstakingly towards has finally arrived…We are all filled with a great sense of pride at how far we have come to reach this moment”.
Speaking from the headquarters of the AfCFTA Secretariat in Accra, Ghana, the Secretary General of AfCFTA, Wamkele Mene stressed that integrating 55 markets will not be easy but giving up is not an option.
SG Wemkele called on AU Member States to aggressively implement the AfCFTA as one of the tools for effecting a fundamental structural transformation of Africa’s economy and placing Africa on a path of long term industrial development. He said “women in trade, young Africans and SMEs, confront significant challenges when attempting to benefit from trade agreements”. Adding that, for the AfCFTA to be inclusive and to ensure shared growth across the continent; women, young Africans and SMEs have to be at the heart of its implementation.
Select updates from member states
-
Support African Continental Free Trade Area, says President Ramaphosa
-
Egypt affirms commitment to supporting African countries to achieve success for AfCFTA: PM
-
AfCFTA: Morocco Calls Intra-African Trade Strategic Pillar of Development
-
Nigeria calls for ECOWAS commitment as AfCFTA begins Jan. 2021
Other news
EAC beats AfCFTA tariff offer deadline (The East African)
With less than a month to the African Continental Free Trade Area coming into effect, the East African Community submitted its tariff offer on December 3, beating the December 5 deadline. EAC’s tariff offer now brings the number of countries to 40 that are ready to join the continent-wide duty-free quota-free movement of goods on January 1, when trading under the AfCFTA agreement starts. By press time on Friday, 14 countries that had signed the agreement had not yet submitted their tariff offers. These are Algeria, Angola, Comoros, Djibouti, Eritrea, Ethiopia, Libya, Morocco, Mozambique, Saharawi Republic, Somalia, Sudan, Tunisia and Zimbabwe.
China offers comprehensive support to kick-start African Free Trade (Vanguard)
China is prepared to assist countries in Africa launch a continental free trade and investment platform, drawing on its international trade experience, a senior Chinese official said in Nairobi on Sunday. Chang Hao, deputy director-general at the International Cooperation Centre of China’s National Development and Reform Commission (ICC-NDRC), said that China will enhance trade in Africa through its implementation of the Belt and Road Initiative (BRI), which aims to connect 70 countries through infrastructure. “We are prepared to assist African countries through the promotion of trade facilities, building Africa’s industrial capacity to develop its value chain and building complete proposals for China and African countries to implement the various partnerships which exist between them,” Chang said.
Working Paper 342 - Market Integration Across Africa: Progress and Challenges Ahead (AfDB)
Treaties implemented by Regional Organizations (ROs) among which the eight Regional Economic Communities (RECs) have piloted integration across the African continent. This survey has two objectives: take stock of progress at market integration and understand the causes of the African ‘proximity gap’. The review singles out two areas for reducing intra-regional trade costs: adopting simple rules of origin, i.e. rules that are business friendly rather than business owned (details in annex A3) and ‘taking seriously’ the Trade Facilitation Agreement (TFA). New estimates suggest that if the average time in customs for imports at the African Union level were to be reduced to the average time for exports, that is reduced by 49 hours, this would be equivalent to a reduction of 2.7% on tariffs in importing countries. The greatest challenge ahead is increasing the provision of Regional Public Goods (RPGs).
National
Good recovery data could be an early Christmas present for South Africa (BusinessTech)
Statistics South Africa is scheduled to release its GDP numbers for the third quarter on Tuesday (8 December), with analysts hopeful that the data will point to signs of a strong rebound after the country’s coronavirus lockdown. “Based on the large trade surpluses achieved in recent months, the consensus is for a blockbuster current account surplus of 3.7% of GDP after a 2.4% of GDP deficit during Q2,” the BER said. “If such a large surplus is achieved, or especially if it is even larger than expected, it is likely to add fuel to the fire of those investors who have turned more positive on the rand exchange rate, at least versus a weakening US dollar.”
CBN Governor discloses why Nigeria must stop dependence on crude oil (Nairametrics)
President Muhammadu Buhari has stated that African leaders should increase collaboration to battle insecurity in the continent through the implementation of arms control instruments and embargoes. The President disclosed this at the virtual 14th extra-ordinary session of the Assembly of the African Union (AU), in a speech themed, “Silencing the Guns.” On Sunday, Buhari stated that Africa also faced issues relating to peace due to terrorist threats across the nation. “The major challenge for Africa today is achieving a new trajectory of peace, security, stability and a conflict-free Africa, following threats of terrorist activities and other crimes across the continent,” he said.
KRA loses Sh7.7bn retail sector taxes on depressed sales (Business Daily)
The Kenya Revenue Authority (KRA) lost Sh7.71 billion in collections from retail and wholesale traders such as supermarkets in the year ended June 2020 on the back of eroded consumer purchasing power amid reduced operating hours in the final quarter. The Treasury disclosures show total tax receipts from the wholesale and retail trade sector, which have been increasing by double digits in recent years, contracted to Sh53.81 billion from Sh61.29 billion the year before.
Ugandan manufacturers threaten to sue Kenya over trade barriers (Daily Monitor)
Kenya has not responded to threats from the Uganda Manufacturers Association to take the country to the East African Court of Justice to get redress on “unfair trade practices”, which the association claims its own government is abetting. In a statement released on Thursday, UMA, the umbrella association that brings together Ugandan industrialists and manufacturers, said that Kenya has barred a number of its exports from accessing Nairobi. UMA says Kenya is questioning the origin of Uganda’s products, even those with valid certificates of origin.
Government to set up infrastructure fund for electricity projects (Daily Monitor)
Cabinet has approved the setup of an Energy Infrastructure Fund, which will draw money from the Treasury to aid establishment of electricity projects. “We should be allocated money from the Consolidated Fund every year into that fund so that when we have some infrastructure to build, we get a hand from that fund,” Energy Minister Maria Goretti Kitutu said. The fund will be used to set up government infrastructure in the electricity subsector including power generation, transmission and distribution projects as well as any required feasibility studies.
Africa
Four years to go, single currency still elusive (The East African)
Only four years remain for the East African Community’s Monetary Union to come into effect, and analysts now say that it is almost impossible to beat the 2024 deadline. On November 30, 2013, EAC Heads of State signed the Monetary Union Protocol in Munyonyo, Kampala, outlining a 10-year roadmap to realise a single currency. In 2014, member states ratified the East African Monetary Union, which is the third pillar in the region’s integration process. However, governments in the region are still harmonising the policies required to attain a single currency by 2024.
COVID-19 pandemic offers African aviation a chance to reset (AfDB)
Africa’s aviation industry represents a huge market that the continent’s airlines need to exploit more fully, with technology and AI offering the way forward for expansion, regional development experts said Thursday. “Technology and smart technologies are offering this fantastic opportunity, so let’s make use of AI, let’s make use of the Internet of Things, let’s capacitate our people to revamp and to rethink our industry, to make sure that both our airports and our airlines cater for the very near future,” said Dr. Amani Abou Zeid, African Union Commission for Infrastructure and Energy, during the opening session of a virtual workshop.
Govts must rescue Africa’s aviation industry from pandemic turbulence (The East African)
Africa’s air transport industry is set to face another grim year with delays to the region’s economic recovery, job losses and without the continent’s governments urgently providing emergency relief to the entire sector. Governments are also yet to establish a vaccine distribution network, unblock the flow of pledged financial support and systematically implement common Covid-19 testing. Measured by supply, demand and profitability, Africa, which had previously seen modest growth, has been one of the hardest-hit regions in the world.
Importers defy ban by flooding market with illegal sugar (The Standard)
Unscrupulous businesses are having a field day bringing in huge amounts of sugar into the country illegally. The smuggling ring is also exposing Kenyans to substandard products and further weakening the ailing local sugar industry. Large imports of brown sugar have made its way here over the last five months despite a ban last July by the Ministry of Agriculture, partly aimed at enabling the local players to stay afloat. The excessive inflows are such that importers had by October exhausted the duty-free import quota they are allowed to get from Comesa countries over 2020.
AUDA-NEPAD is Supporting Recovery Plans for Africa’s Tourism
The impact of the COVID-19 pandemic on already slowing economies has made tourism particularly vulnerable, becoming the hardest hit sector so far in Africa. It has not just been a health pandemic, but it has impacted the economic and social life of communities. However, it is proven that tourism is uniquely placed to lead future recovery, exemplified in post economic depression, Ebola eras, oil crisis, financial crisis. The sector will provide the jobs that people need to bounce back and will drive economic growth that will help whole African countries to recover.
Kagame to chair Smart Africa board meeting (The New Times)
Heads of State and Government from 30 countries are meeting today virtually to discuss the work of Smart Africa, an alliance of African countries aimed at accelerating the continent’s digital transformation. The ninth board meeting will be chaired by President Paul Kagame, according to the statement from the organisation’s secretariat, currently based in Kigali. “This meeting will discuss Smart Africa’s core deliverables for the just-ended calendar year and the goals for the coming year,” the statement reads in part.
The role of digital transformation in kick-starting African economies (Bizcommunity)
As the business landscape transforms to leverage exponential developments in technology, the expansion and adoption of new business models have rendered the big giants potentially vulnerable due to complexity, scale and entrenched business models. The customer has moved to centre stage as convenience has transitioned from privilege to right, and choice has become ubiquitous. The rapid compounding of complexity has forced organisations to adopt agility as part of the fabric of business operations.
The rise of cryptocurrency transfers to Africa (Africa Feeds)
Cryptocurrency is steadily growing acceptance in Africa. Similarly, the use of cryptocurrency for money transfers to Africa is also on the rise. Fintech companies use cryptocurrencies such as Bitcoin to mitigate problems associated with traditional money transfers to Africa and within Africa such as high fees. Africa is the most expensive region to send money to in the world. Intra-Africa money transfers are even higher than sending money to Africa. The use of cryptocurrency-powered money transfers is expected to lower these high costs.
The Board of Directors of the African Development Bank has approved a $20 million concessional investment from the Sustainable Energy Fund for Africa (SEFA) to establish the COVID-19 Off-Grid Recovery Platform (CRP). The $50 million blended finance initiative, will provide relief and recovery capital to energy access businesses, supporting them through and beyond the pandemic. “This initiative underlines the African Development Bank’s commitment to the accelerated growth of Africa’s decentralized energy industry, based on renewables, as a key driver for universal energy access goals,” said Dr. Kevin Kariuki, the African Development Bank’s Vice President for Power, Energy, Climate and Green Growth
Nigeria: Food insecurity looms as country’s reserves diminish (CGTN Africa)
A surge in attacks on Nigerian farmers is having a knock-on effect on the country’s food reserves, Bloomberg has reported. Citing the All Farmers Association of Nigeria, the news agency said stocks had declined to less than 30,000 metric tons, a fraction of what the country of 200 million people requires. President of the association, Kabir Ibrahim, said growing insecurity had made it difficult to augment those supplies.
Africa’s environment ministers pledge support for green COVID-19 recovery (CGTN Africa)
African environment ministers have pledged to rally behind efforts to accelerate a green and inclusive economic recovery to boost economies and social systems in the continent amid COVID-19 related shocks. The ministers said in a joint statement issued in Nairobi on Friday evening at the end of a virtual summit that promoting the health of ecosystems lies at the heart of efforts to hasten pandemic recovery in the world’s second-largest continent. “Whilst this pandemic is having a profound negative impact on sustainable development and our efforts to combat environmental degradation and eradicate poverty, it also presents opportunities to set our recovery on a path of transformative sustainable development,” said Barbara Creecy, South African Minister of Environment, Forestry and Fisheries.
OP-ED: The Covid-19 pandemic has tested Africa to the limits – but there are many signs of hope (Daily Maverick)
Never have Africans come together the way we have during this catastrophic situation – we have seen the best of humanity through this trying period. The Covid-19 pandemic is one of the most devastating global health and economic crises in modern history. The crisis has affected virtually every facet of socioeconomic functioning, including public finance, which is concerned with the capacity of governments to mobilise resources, primarily for building institutions to promote security, competition and market development, as well as for redistributive purposes.
A rendezvous to transform Central Africa’s routes into development trajectories (UNECA)
How can Central African countries reconfigure existing transport highways which interconnect them, while building and linking new ones in a way that engines and supports structurally transformative economic activities along and near these routes? “At this point in time when everyone agrees with us on the need for the structural transformation of our economies with particular focus on the productivity gains that stem from vertical and horizontal economic diversification, we see development corridors as a game-changer for countries across the subregion,” said Lot Tcheeko, an ECA official coordinating efforts towards the brainstorming exercise.
Leaders track progress on African bid to ‘silence guns’ (Thenews)
African leaders on Sunday held talks to review an ambitious plan for a conflict-free Africa as violent unrest escalates in parts of the continent. The Africa Union (AU) adopted in 2013 a plan to silence guns on the continent by the year 2020. Four years later the leaders signed off on a roadmap for practical implementation of the plan. On Sunday, heads of states and governments from across the continent met virtually to assess progress.
International
DHL Global Connectedness Index 2020 signals recovery of globalization from COVID-19 setback (Africanews)
The DHL Global Connectedness Index 2020 (GCI) is the first comprehensive assessment of globalization during the spreading COVID-19 pandemic. John Pearson, CEO of DHL Express, said: “Connected supply chains and logistics networks play an essential role in keeping the world running and stabilizing globalization especially at a time of a crisis that spans our globe. This reminds us of the need to stay prepared for any challenge. The recent vaccine breakthrough has put a spotlight on the systemic importance of fast and secure medical logistics dependent on a worldwide interconnected network that effectively ensures international distribution.”
Donald Trump’s forgettable legacy in Africa and what to expect from Joe Biden (The Citizen)
Notwithstanding the Trump administration’s rhetoric, Africa continued to receive roughly $7 billion in annual US aid allocations in its first three years. US-Africa trade fell to approximately $41 billion in 2018, down from a high of $100 billion in 2008. On the whole, African countries have continued to export natural resources, such as petroleum and metals, to the US.
Africa and India seek to increase trade, tourism (IOL)
Efforts are under way to increase trade and tourism between India and African countries, including the development of a VIP airport in Zimbabwe, smart cities in African countries, and the establishment of a furniture corridor. According to projections, India-Africa trade could double by 2021 if appropriate steps are taken by sovereign and corporate entities to raise the full benefit of the growth of the two trade partners. President of the Indian Economic Trade Organisation, Dr Asif Iqbal, said it was the right time to reshape this relation.
International Forum on African Leadership: Keynote Speech Delivered by Dr. Akinwumi A. Adesina, AfDB President (East African Business Week)
The negative impacts on economies have been massive. The African Development Bank estimates that Africa’s GDP will decline by $173-236 billion by the end of the year. Africa’s economic growth rate is expected to decline by 3.4%. The world has become more fragile as we all face common existential risks. Our greatest test and task is to build effective partnerships and reinforce leadership to navigate through the pandemic, save as many lives and possible, reverse the trend, and put the world and its economies back on more resilient recovery pathways.
European Commission reports on negotiating round with five Eastern and Southern African countries
The European Commission has published the report summarising progress made during the latest negotiation round to deepen the existing Economic Partnership Agreement (EPA) with five Eastern and Southern African partners (Comoros, Madagascar, Mauritius, Seychelles and Zimbabwe). The third round of negotiations was held virtually from 24 to 27 November 2020. The partners made progress on the five issues already discussed in the first two rounds, namely customs and trade facilitation, technical barriers to trade, food safety and plant and animal health standards, rules of origin and agriculture.
UK and Egypt sign Association Agreement (GOV.UK)
The British Ambassador to Egypt, Sir Geoffrey Adams, today signed an agreement with Egypt’s Assistant Foreign Minister for Europe, Badr Abdelatty to strengthen political and trade ties between the two countries. The agreement will allow British businesses and consumers to benefit from continued preferential access to the market after the end of the transition period – which will help boost vital trade and investment. The agreement will provide tariff-free trade on industrial products, as well as liberalisation of trade in agriculture, agri-foods and fisheries which will make trade easier and deliver significant savings to businesses in both the UK and Egypt.
New Africa alliance aims to tackle deadly COVID ‘infodemic’ (UN News)
The Africa Infodemic Response Alliance (AIRA), brings together 13 international and regional organizations, together with fact-checking groups which have expertise in data and behavioural science, epidemiology, research, digital health and communications. Dr Matshidiso Moeti, WHO Regional Director for Africa, said the Alliance has the unique reach, knowledge and skills to help halt the impact of dangerous misinformation.
Making Industrialization in Africa Sustainable (United Nations)
Africa remains the world’s least industrialized region, with only one country on the entire continent, South Africa, currently categorized as industrialized. There is general agreement that this has to change, and I believe it can. There needs to be a fundamental shift in the structure of the economies of African nations. Industry, especially manufacturing, will have to account for a far greater share of national investment, output and trade.
How the relationship between the UK and Africa may change after Brexit (Lexology)
The status of Britain’s relationship with the European Union following the end of the transition period on 31 December 2020 remains uncertain. However, one thing is certain – change is coming. Unless a comprehensive trade deal is struck at the last minute, the UK will cease to trade with African countries under the terms of the existing arrangements in place between them and the EU and will revert to trading on WTO terms. For some African countries, agreement has been reached to “roll over” the terms of existing EU agreements such that they apply on a bilateral basis with the UK. For others, the terms on which they will trade with the UK in the long term remains to be finalised.
Trade and Commerce in West Africa and How it Influences IP Rights (IPWatchdog.com)
To do business in Africa, it is important to understand how African countries conduct trade and commerce among themselves and with the rest of the world. Specifically, IP right holders navigating the continent would be better served by an informed economic roadmap into the continent. A proper understanding of the business terrain and IP regimes becomes important for global brands looking to pitch their tent in Africa.
ICC and Africa investor launch global eTrade partnership to digitise five million SMEs in Africa (International Chamber of Commerce)
Announced at the second Africa investor Global Trade Organization Leaders’ Summit by ICC Secretary General John W.H. Denton AO and Hubert Danso, Chairman of Africa investor, the campaign will accelerate the digitisation and intra African and global market access for millions of African SMEs, in support of the African Continental Free Trade Area (AfCFTA). ICC and Africa investor will mobilise a worldwide network of multinational companies, African Corporates, chambers of commerce, media organisations and academic institutions, to provide market access, tools and training programs to digitise SMEs in Africa.
UNIDO paper focuses on factors driving successful industrialization (Modern Diplomacy)
More than 32 million of the world’s poorest people face being pulled back into extreme poverty because of COVID-19, leading UN economists said on Thursday, highlighting data showing that the pandemic is likely to cause the worst economic crisis in decades among least developed countries (LDCs). “The COVID crisis is leading LDCs to their worst economic crisis in 30 years, with per capita GDP (Gross Domestic Product) for the group expected to fall by 2.6 per cent this year ,” said Mukhisa Kituyi, UNCTAD Secretary-General, during a virtual press conference. “We project that absolute poverty indices will be expand by 32 million, and extreme poverty rates in these countries will rise from 32.5 per cent to 35.7 in the current year.”
Related News
Thirteenth extraordinary session on the AfCFTA: The Assembly of the Union adopts decision on the start of trading
African Union Heads of State and Government have underscored the urgent need for member states to kick-start trading activities, under the African Continental Free Trade Area (AfCFTA).
The decision was adopted during a virtual meeting of the 13th Extra Ordinary Session of the Assembly of the Union on the AfCFTA, held on Saturday 5 December 2020, under the Chairmanship of H.E. Mr Cyril Ramaphosa, President of the Republic of South Africa and Chairperson of the African Union (AU). The summit is taking place just four weeks before the AfCFTA commences trading on the 1st of January 2021, to consider the adoption of the legal instruments that will facilitate its operation.
Welcoming all the participants to the 13th Extraordinary Session of the Assembly of the Heads of State and Government of the African Union, Chairperson Ramaphosa said “today we stand on the cusp of a new era in the progress of our continent. The moment that we have all been working painstakingly towards has finally arrived…We are all filled with a great sense of pride at how far we have come to reach this moment”.
The AU Chairperson further recalled the collective journey embarked upon over four decades ago, with the adoption of the Monrovia Strategy in 1979, followed by the Lagos Plan of Action in 1980, the Abuja Treaty in 1991 and the subsequent Decisions and Declarations adopted during previous Summits relating to the economic development and integration of the African continent. “And now, we are about to witness the realisation of one of the flagship projects of Agenda 2063.” Stated the Chairperson of the Union, with great relieve.
“Throughout this process, we have stood united, with 55 sovereign AU Member States rallying together, despite different levels of economic development and diverse strategic priorities. The commencement of trading under the AfCFTA on the 1st of January 2021 is one of the most significant milestones in the continental integration project”. Noted the AU Chairperson. He underlined that, this is going to be the clearest affirmation that Africa is determined to take charge of its own destiny, and that its success and development is fundamentally tied to harnessing the potential and energies of her citizens.
According to President Cyrl Ramaphosa, the AfCFTA will boost intra-African trade, it will promote industrialisation and competitiveness and contribute to job creation, and it will unleash regional value chains that will facilitate Africa’s meaningful integration into the global economy. The AfCFTA will also improve the prospects of Africa as an attractive investment destination. It will help advance the empowerment of Africa’s women, by improving women’s access to trade opportunities which will in turn facilitate economic freedom for women, and expand the productive capacity of countries. “To support this, we must strengthen women’s participation in the continental economy by ensuring there is greater public procurement earmarked for women-owned businesses. We must ensure that there is sufficient support given to women-owned SMMEs and cooperatives in both local and regional economies” Emphasised Chairperson Ramaphosa.
H.E. Mr Moussa Faki Mahamat, Chairperson of the AU Commission on his part expressed satisfaction on the millstone achieved in the implementation of the AfCFTA. He said it is the fulfilment of the dream long aspired by the founding fathers of the Organisation of African Unity (OAU), who have always wanted to create an African common market.
Moussa Faki noted that, for this dream to finally become a reality, this continental project had to go through several stages. First was the signing in 1991 of the Treaty establishing the African Economic Community, followed by the signing in March 2018 in Kigali, Rwanda, of the Agreement establishing the AfCFTA, during which 44 countries signed the Agreement, and it is with great satisfaction that in record time 34 countries have ratified the legal instrument on the AfCFTA . This, the AUC Chairperson said, shows the determination by member state to quickly achieve the economic integration of the continent. (See complete speech of the AUC Chairperson on the AU website: www.au.int )
Speaking from the headquarters of the AfCFTA Secretariat in Accra, Ghana, the Secretary General of AfCFTA, Wamkele Mene stressed that integrating 55 markets will not be easy but giving up is not an option. He recalled that in August 2020, the Government of Ghana officially handed over the AfCFTA Secretariat building to the AUC Chairperson, H.E. Moussa Faki Mahamat. Reiterating that, H.E. President Akufo-Addo has given his full support and is committed to see the AfCFTA truly commercially start off trading by the announced date of 1st of January 2021. “Today, 54 countries have signed the agreement while 34 countries have deposited their instruments of ratification, and 41 countries/customs unions have submitted their tariff offers, including the EAC and ECOWAS” underlined the AfCFTA SG. He however noted that, none of this remarkable progress would have been achieved without the unwavering leadership and commitment of H.E. President Mahamadou Issoufou, the Champion and Leader of the AfCFTA”.
SG Wemkele called on AU Member States to aggressively implement the AfCFTA as one of the tools for effecting a fundamental structural transformation of Africa’s economy and placing Africa on a path of long term industrial development. He said “women in trade, young Africans and SMEs, confront significant challenges when attempting to benefit from trade agreements”. Adding that, for the AfCFTA to be inclusive and to ensure shared growth across the continent; women, young Africans and SMEs have to be at the heart of its implementation.
Worth recalling that it is the AU Assembly Decision adopted at its 33rd Ordinary Session held in Addis Ababa, Ethiopia, on 9th – 10th February, 2020, that recommended the holding of this 13th Extraordinary Summit to approve all instruments required for the start of trading under the AfCFTA. During the meeting, the Heads of State expressed their appreciation to the report presented by H.E. Mr. Issoufou Mahamadou, President of the Republic of Niger, the leader and Champion of the AfCFTA, and adopted the recommendations thereof on the progress achieved on the establishment of the African Continental Free Trade Area (AfCFTA). They requested the AfCFTA leader and Champion to continue his efforts to ensure that all fifty-five (55) African Union Member States become state parties to the AfCFTA Agreement.
The Assembly also commended H.E Nana Addo Dankwa Akufo-Addo and the people of Ghana for offering to host the secretariat of AfCFTA in Accra thus, fulfilling the African dream. The Heads of State further commended the role played by all Member States, the African Union Ministers of Trade (AMOT) and other AfCFTA Negotiating Institutions, the African Union Commission (AUC), the Regional Economic Communities (RECs) and the AU cooperating partners, for the significant progress made in advancing AfCFTA negotiations. They congratulated all the countries that have deposited their instruments of ratification of the AfCFTA Agreement, and called on those member states that have not yet ratified the Agreement to do so as soon as possible in order to increase the size of the market and the volume of trade under the AfCFTA.
The Assembly finally deliberated that the exchange of tariff concessions between State Parties will be conditioned by the principle of reciprocity in terms of product line coverage, and tariff reduction schedules that are aligned with the agreed modalities. They endorsed the declaration on the Risk of Investor-State Dispute Settlement (ISDS) with respect to COVID-19 pandemic related measures, as adopted by the African Union Ministers of Trade (AMOT), and the establishment of the African Business Council (AfBC) which is part of the Architecture of the AfCFTA.
Related News
tralac Daily News
National
SA has most developed digital economy in Sub-Saharan Africa, says study (BizNews)
South Africa has been described as having the most ‘developed digital economy’ in Sub-Saharan Africa. This is according to a global index by The Fletcher School at Tufts University. Dubbed the ‘Digital Intelligence Index’, it measures “the progress countries have made in advancing their digital economies, fostering trust and integrating connectivity into the lives of billions”. According to the Intelligence Index, connectivity in Sub-Saharan Africa is lagging behind other regions. However, “digitalisation is advancing fast and being embraced by those who do have access”, says the report.
Draft one-stop border-post policy to be released for public comment in early 2021 (Engineering News)
Government will release its draft one-stop border post (OSBP) policy for public comment during the first quarter of 2021, after Cabinet approved the draft policy during its meeting this week. In a statement, Cabinet said that the OSBP policy would give effect to the framework adopted in 2018. The policy sought to harmonise the movement of people and goods between South Africa’s land ports of entry and its neighbouring countries, while also addressing the congestion that resulted in costly trade delays and frustrated travellers.
Africa’s post-Covid recovery provides major opportunities for South African aviation sector (Engineering News)
African recovery and return to economic growth following the Covid-19 pandemic presented a significant opportunity to the general aviation sector across the continent, but particularly in South Africa, SA Flyer editor Guy Leitch pointed out on Thursday. He was addressing the Commercial Aviation Association of Southern Africa’s virtual 2020 symposium. “South African general aviation is the single largest repository of aviation sector expertise in Africa,” he highlighted. “Intra-African connectivity is the big opportunity.” This opportunity was open to both the general and commercial aviation sectors.
South African economy should recover strongly next year, predicts economist (Engineering News)
The South African economy is already on course for a strong recovery and significant growth next year, economic adviser to the Optimum Investment group Dr Roelof Botha told the Commercial Aviation Association of Southern Africa’s virtual 2020 symposium on Thursday. The Covid-19 pandemic had hit the travel and leisure sector very hard, both globally and in South Africa. But the development of Covid-19 vaccines had radically changed the outlook for the sector. He pointed out that, on the world’s major stockmarkets, travel and leisure stocks had surged by 5% to 30% following the announcement of the development of the first vaccine, by Pfizer.
Government exceeds revenue target for August-November 2020 – GRA (MyJoyOnline)
The Chairman of the Implementation Team of the Integrated Customs Management System (ICUMS), Emmanuel Ohene has disclosed that government exceeded its revenue target in August and November, 2020 from Ghana’s ports. This, he attributed to the introduction of the Integrated Customs Management System (ICUMS) at the ports.
US$300m upgrade for Beitbridge border post (The Herald)
The Zimborders Consortium has secured nearly US$300 million for the upgrade and modernisation of Beitbridge border post, the country’s busiest inland port of entry and one of the region’s key transit points, the company has revealed. The project, to be implemented under a Public Private Partnership with the Government, will be privately funded with a 17 and half years’ operating concession period following the completion of the construction works expected within two years.
CBK raises alarm over rising borrowing by State agencies (The Standard)
Central Bank of Kenya has warned that increased borrowing by State firms from commercial banks could expose the banking industry and other financial institutions to the risk of bad debt. According to the Kenya Financial Stability Report released yesterday, the banking industry’s loans to parastatals amounted to above Sh100 billion by December 2019. The energy sector accounts for the largest share.
The Kenya Financial Stability Report 2019 | CBK
Manufacturers issue ultimatum, demand retaliation against Kenya (Daily Monitor)
Manufacturers have given government up to or before Christmas to come up with retaliatory measures against Kenya, which they accuse of unfairly blocking a number of Ugandan products from its market. In a statement released yesterday, manufacturers, under Uganda Manufacturers Association (UMA), also expressed frustration “over government’s inability to decisively resolve the unfair trade practices subjected to Uganda by Kenya in blatant disregard to the EAC common market commitments”, noting the statement was a culmination of untold frustration by government in the pursuit of equity from EAC partner states.
Tanzania pays attention to Angola’s railway link (The Citizen)
The government said yesterday that it was closely following up on reports that Angola was mulling the construction of a railway line that would connect it (Angola) to Tanzania via Zambia. The plan was to build a trans-African railway between the ports of Dar es Salaam in the east of the continent and Lobito in the west. At present, Angola’s economy depends overwhelmingly on exports to China – in 2018 these accounted for more than $25 billion, more than its exports to the rest of the world combined, and consisted mainly of oil. There is almost no trade between Angola and Tanzania. In 2015, Tanzania exported less than $5m to Angola, and Angola less than $500,000 worth of goods to Tanzania.
Botswana: Economist predicts full economic recovery in 2022 (Daily News)
Although the Botswana economy is destined to bounce back next year, full recovery will only be realised in 2022. This was said by FNB chief economist, Mr Moatlhodi Sebabole during the virtual Youth Entrepreneurship Studio held Wednesday as part of De Beers Diamond Impact Week. Mr Sebabole, who was deliberating on the topic “Recovery and Growth” – Botswana and the Global Outlook from an Economist’s Perspective, said only in 2022 would the economy return to its 2019 size. Describing COVID-19 as a perfect storm in the world economy, he noted that it hit both the demand and supply sides and affected production of goods and services.
Nigeria’s diaspora remittance inflows could rise to $2bn monthly – Emefiele (Vanguard)
The Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, has said that following the introduction of the new Diaspora Forex Remittances policy, the apex bank was targeting about $2 billion monthly from Diaspora remittances. Emefiele who disclosed this at a press conference in Abuja, yesterday, said that the implementation of the policy has commenced adding that the Nigerian public can now receive remittances from their family members, friends and associates in Diaspora in the foreign currency of such remittances.
Border closure not sustainable – Economic Advisory Council chief, Salami (Vanguard)
Chairman of the federal government Economic Advisory Council, Dr. Doyin Salami, has said border closure was not a sustainable strategy. According to him, the nation must take pragmatic steps to reduce the costs of production for its products to be internationally competitive. He said Nigeria would lose out in the implementation of the Africa Continental Free Trade Agreement, AfCFTA, unless its products could withstand international competition.
No significant reduction in cargo traffic at ports – GPHA boss (Ghanian Times)
The Director-General of the Ghana Ports and Harbours Authority, Michael Lujuge has applauded efforts being made by the government to expedite processes leading up to the realisation of efficient multimodal linkages that would complement the ongoing massive developments in Ghana’s port infrastructure. “Trade feeds on distance, time and cost. Connectivity is key. That is why the ideal situation is for you to have multimodal transport,” he said.
Africa
AU holds AfCFTA Extraordinary Summit (SAnews)
The African Union will this weekend host the African Continental Free Trade Area (AfCFTA) Extraordinary Summit, in preparation for the start of the AfCFTA on 1 January. Cabinet, in a statement following its meeting this week, said the AfCFTA holds “enormous benefits” for South Africa as it serves as a “catalyst to economic growth and investment”. “The free-trade area opens our exports of goods and services to a market of more than 1.2 billion people. As Chair of the AU, South Africa has been at the forefront of driving the implementation of the AfCFTA,” reads the statement. Cabinet reiterated that the agreement advances economic integration and development, women empowerment on the continent, and strengthens efforts towards peace and stability in Africa.
One month to start trading under AfCFTA, where does Africa stand? (The New Times)
With trading under the African Continental Free Trade Area (AfCFTA) agreement, expected to start January 1, 2021, officials and experts say, a lot of ground as regards outstanding negotiations and readying prerequisites to make things work has been covered. The negotiators are still busy trying to wrap up before the beginning of trade. Prudence Sebahizi, Chief Technical Advisor on AfCFTA at the AU Commission, told The New Times that “much progress has been made” to ensure that trading starts on January 1. “Member States have been able to conclude outstanding negotiations on rules of origin to the level above 80% and tariff offers have been submitted to allow trade in goods to start.”
President Felix Tshisekedi Warms Up For AU Chairperson (Taarifa Rwanda)
Moussa Faki, Mahamat the Chairperson of the African Union Commission flew to the DRC capital Kinshasa to meet President Felix Tshisekedi who is preparing to assume his new role as Chairperson of the AU in early 2021. Moussa Faki confirmed President Tshisekedi will assume the functions of head of the African Union during the Ordinary General Assembly in early February 2021 in Addis Ababa.
The promise of the African Continental Free Trade Area (AfCFTA) (ECDPM)
The hopes and aspirations attached to the AfCFTA – for trade, industrialisation and addressing the effects of COVID-19 – place it high on the agendas of African policymakers, but also of their partners who support the process. This paper provides an overview of some of the potential opportunities and benefits of the AfCFTA, particularly in relation to manufacturing, agriculture, services and e-commerce, but also of the challenges involved in moving from agreement to impact.
Morocco reiterates full support for African free trade area (The North Africa Post)
Morocco voiced its full support for the African Continental Free Trade Area (AfCFTA) as a lever of African integration and a development trigger, Minister delegate in charge of African affairs said. Morocco spares no effort to materialize the AfCTA on the ground, Mohcine Jazouli told an African Union meeting held by video conference. He recalled that King Mohammed VI had underscored Morocco’s commitment to promote an intra-African cooperation based on economic solidarity.
Figure of the week: Socioeconomic impacts of COVID-19 in Ethiopia, Malawi, Nigeria, and Uganda (Brookings)
Although most African countries have, to date, been largely successful in fighting the spread of COVID-19, with far fewer reported cases and deaths from the disease than Europe, Asia, or the Americas, the pandemic has still had substantial socioeconomic impacts on African citizens. Policy measures to limit the spread of the disease, such as travel restrictions, lockdowns, and school closures – while both necessary and effective at limiting health impacts – have slowed economic activity worldwide. As a result of the health and economic effects of the pandemic, up to 49 million more Africans could be pushed into extreme poverty in 2020.
African Of The Year: Ngozi Okonjo-Iweala (Forbes Africa)
Ngozi Okonjo-Iweala has been adjudged the ‘2020 African of the Year’. Previous winners have been Rwandan President Paul Kagame (2018) and African Development Bank President Akinwumi Adesina (2019). Okonjo-Iweala is well-positioned to take on the next big role, transforming Africa and negotiating on the world stage.
President’s Remarks at the 5th Annual Meeting of the Africa Economic Zones Organization (AEZO) (Africanews)
Africa has had impressive economic growth over the past one decade, including 6 of the ten fastest growing economies in the world. While the pandemic has set us back now, with a decade of growth lost, I am confident that Africa will bounce back. The same fundamentals that drove growth are still there. At the core of this must be the growth of the private sector, and the deployment of supportive environments for their operations. Globally, Special Economic Zones have powered the economic growth of several countries. Collectively, they have contributed exports worth $3.5 trillion, roughly 20% of global trade in goods.
East Africa Is Backsliding Dangerously (Yahoo!)
Only decade ago, the map looked very different: South Africa was slipping into corruption and stagnation, Angola was a full-blown kleptocracy, and donor darlings, Rwanda and Ethiopia, were deeply repressive strongman technocracies. Meanwhile, across much of the East African Community and among its immediate SADC neighbors, progress – halting and complicated but unmistakable – was underway. If SADC and the African Union find themselves now ignored by leaders they have coddled, they have largely themselves to blame. Kenya’s hastily agreed free-trade deal with Britain, meanwhile threatens to drive a wedge into the East African Community.
African Development Bank launches new regional integration strategy 2020-2025 (Caribbean News Global)
On November 26, 2020, the African Development Bank launched the West African regional integration strategy for the period 2020-2025 during a virtual seminar, which brought together representatives of the Bank, regional economic communities and member countries. The main objectives of the webinar were to provide an overview of the new strategy and to create a platform for multi-stakeholder and multidisciplinary collaboration for high-level dialogue to mobilize regional member countries in favor of regional integration.
Although advantageous, local currency financing for off-grid renewables projects and businesses in Africa is still limited, according to a new report released by the African Development Bank. The report, Exploring the Role of Guarantee Products in Supporting Local Currency Financing of Sustainable Off-Grid Energy Projects in Africa, summarized findings of an in-depth study of documents on the off-grid energy and local currency financing sector, as well as interviews of energy stakeholders in the commercial and industrial and mini-grid sectors in Ghana, Kenya, Nigeria, and Tunisia.
International
UN says private sector key to realize sustainability agenda in Africa (Xinhua)
African governments should leverage capital, technology and manpower from industry to hasten realization of sustainability agenda and pandemic recovery in the continent, a senior UN official said on Thursday. Amina J. Mohammed, UN Deputy secretary-general, said that targeted investments from Africa’s indigenous businesses are required to catalyze inclusive growth in the continent amid COVID-19 linked economic shocks. “The private sector in Africa should seize the opportunity to invest sustainably and create a peaceful, prosperous continent that is also resilient to the shocks triggered by the pandemic,” said Mohamed.
Will China create another African debt crisis? (ORF)
Europe’s preparation for the European Union–African Union Summit in 2021 needs to successfully provide a coherent African policy on security, immigration and climate change that goes beyond trade and provides, at the very least, an opportunity for dialogue with the Russian Federation, which is also re-engaging in Africa. The reality is the COVID-19 economic impact will have knocked back significantly Moscow’s Africa ambitions and this will result in a greater niche focus on key countries such as South Africa.
What do China’s economic plans mean for Africa? (WEF)
Last month the Central Committee of the Communist Party of China (CCP) laid out the country’s socio-economic blueprint for the next five years. As China’s 14th five-year plan, this particular one marks an important transition from China’s first to its second centennial goal. Ahead of next year’s Forum on China and Africa Cooperation (FOCAC), hosted by Senegal, it is worth examining the difference between the two centennial goals, and what that could mean for Africa’s own development prospects
DDG Agah: Trade key to mitigating impact of COVID-19 pandemic on Africa (WTO)
We are, today, living in an unprecedented time, with extraordinary challenges resulting from the COVID-19 pandemic. While governments, in all economies, are taking steps to mitigate its impact, trade, no doubt, continues to remain a key part of the solution to protect jobs, ensure steady income and improve standards of living of people in Africa. Against this challenging environment, the successful implementation of the AfCFTA could help mitigate the economic crisis; and set the continent on a common path for renewed growth.
The Need for EU-Russia Dialogue on Africa (Chatham House)
Africa is confounding predictions of a COVID-19 apocalypse, but widespread anxiety remains. Valuable lessons must be taken forward from the successful national responses so far across public health, security, and the economy.
Fintech Market Reports Rapid Growth During COVID-19 Pandemic (World Bank)
The fintech market has continued to help expand access to financial services during the COVID-19 pandemic – particularly in emerging markets – with strong growth in all types of digital financial services except lending, according to a joint study by the World Bank, the Cambridge Centre for Alternative Finance at the University of Cambridge’s Judge Business School, and World Economic Forum.
70% of Destinations Have Lifted Travel Restrictions, but Global Gap Emerging (UNWTO)
The number of destinations closed to international tourism has continued to fall. According to the eighth edition of the UNWTO Travel Restrictions Report, 70% of all global destinations have eased restrictions on travel introduced in response to the COVID-19 pandemic. In comparison, just one in four destinations continue to keep their borders completely closed to international tourists. Europe continues to lead the way in lifting or easing travel restrictions followed by the Americas, Africa and then the Middle East.
What Africa Needs Now Is Its Own Singapore (BloombergQuint)
When it comes to economic development, China’s amazing success soaks up much of the attention. But another huge region has quietly begun what looks like a new phase of exponential growth: Southeast Asia. The sustained enrichment of this region will transform the world, and carry important lessons for struggling countries like those in Africa.
Located far from booming Asia, Africa may have to wait its turn to be the next manufacturing hotspot.
Related News
tralac Daily News
National
African Nation Worst Hit by Covid Falling Behind on Vaccines (BloombergQunit)
The African country with the worst confirmed coronavirus outbreak is yet to provide clarity on how it plans to order vaccines, even as the global race to secure inoculations accelerates. South Africa did confirm last week that it plans to sign up to Covax, a global initiative that strives to ensure that poorer countries have access to shots. The National Treasury has allocated 500 million rand ($33 million) toward the program and will need to find a further 4.5 billion rand to move to “the front of the queue,” Finance Minister Tito Mboweni said in an interview. That payment has yet to be made, according to Anban Pillay, deputy director general at the Department of Health. Still, that doesn’t mean South Africa will miss out on the first batch of available vaccines, he said.
Second Covid-19 wave may cut short improvements in trade sector confidence levels (Fin24)
The Bureau for Economic Research (BER) on Thursday released its retail trade survey results for the fourth quarter of the year. “Major improvements can be seen across all trade categories, with retailer, wholesaler and new vehicle dealer confidence all increasing remarkably on the back of improved operating conditions, a noteworthy uptick in sales volumes and an overall improvement in profitability,” the report read. However BER pointed out that headwinds lie ahead, with the special Covid-19 relief grant expiring early next year, “billions” could be wiped from consumer incomes and the trade sector.
Uganda’s GDP Contracts under COVID-19, Investing in Uganda’s Youth Key to Recovery (World Bank)
The latest World Bank economic analysis for Uganda projects the economy to contract by up to 1% in 2020 due to COVID-19 disruptions to trade activities and production, down from 7.5% growth in 2019. According to the Uganda Economic Update, Investing in Uganda’s Youth, real Gross Domestic Product (GDP) grew at only 2.9% in fiscal year 2019/20, less than half the 6.8% recorded in fiscal year 2018/19. Uganda should strive to maintain debt sustainability – it is in an enviable position compared to many other countries.
Uganda opens new alternative route to Kenya (The East African)
Ugandans can now travel to Kenya using the 44.5 Kilometre-long Bumbobi-Lwakhakha road, into Bungoma County, western Kenya. The road, which was commissioned on Tuesday by President Yoweri Museveni, has been upgraded to tarmac from all-weather courtesy of a Ush140 billion ($37.6 million loan from the African Development Bank in 2016. The road is expected to deepen regional integration and cross border trade with Kenya, and offers an alternative to the Busia and Malaba border crossings.
Uganda safeguards financial stability amid COVID-19, but risks remain (China.org.cn)
Uganda is so far succeeding in safeguarding financial stability, although risks remain as the east African country battles the economic effects brought about by the ongoing COVID-19 pandemic, the central bank said here in a recent report. Decisive monetary and macro-prudential policies have reduced short-term risks to financial stability, said the financial stability report for the third quarter by the Bank of Uganda (BOU). While the short-term risks to financial stability arising from the pandemic have been relatively contained, the outlook remains highly uncertain and depends on the evolution of the pandemic and the pace of economic recovery, the report said.
Digital stamps have exposed dishonest industrialists – Govt (Daily Monitor)
Finance Minister Matia Kasaija has said government had anticipated manufacturers to resist implementation of digital tracking solutions because the system has exposed illegal activities orchestrated by some industrialists. Digital tracking solutions, which are being implementation by Uganda Revenue Authority (URA) and lately Uganda National Bureau of Standards (UNBS), seek to fight under declaration of production capacity and substandard goods. However, they continue to face resistance particularly from manufacturers, who say they have a high cost burden.
Botswana Oil aims for petroleum products security (FurtherAfrica)
Botswana Oil remains resolute in achieving security of petroleum products in the country, acting chief operations officer Mr Mosetlho Kenamile has said. Speaking at a media workshop in Gaborone recently, Mr Kenamile said the recent petrol shortage in the country had necessitated greater investment and participation of locals in the sector noting that capacities of storage needed to be reached in order achieve security for the country. He said Botswana Oil was embarking on an exercise to source petroleum-based products from other markets to achieve and maintain supply. He also noted that South Africa as the country’s main import partner experienced volatility from time to time which affected supply.
Ghana positioning itself to benefit from ECOWAS protocols and conventions (MyJoyOnline)
Ghana in its quest to improve the living standards of its citizens, has intensified stakeholders’ engagements on the Protocols and Conventions of the Economic Community of West African States (ECOWAS). Among the ECOWAS protocols and conventions are the promotion of economic cooperation, integration, and fostering of relationships among member states to contribute to the progress and development of the sub-region.
Hope for border reopening (Vanugard)
News of the imminent reopening of the borders by the Federal Government is hugely relieving and eagerly anticipated by a cross section of players in the economy. The Nigerian government shut its borders due to certain alleged acts of infidelity by our neighbours and fellow members of the Economic Community of West African States. Throughout the period that the closure lasted, the Federal Government and the Nigerian Customs Service maintained that Nigerian farmers had benefited immensely from it. But it paid a blind eye to the fact that our manufacturers and other international business interests which also need the West African market suffered unquantifiable losses.
Zim targets AfCFTA market opportunities (The Herald)
Zimbabwe is scaling up efforts to take a strategic position in the exploitation of the 1,2 billion people African market that is set to be created by the African Continental Free Trade Area (AfCFTA). As a key enabler in attaining an upper middle income economy by 2030, Zimbabwe has plans to boost the manufacturing industry and its export basket in terms of volume and variety. Under its economic revival strategy, the manufacturing industry has a critical role to play in satisfying the local and export markets.
Africa
The Futures Report: Making the AfCFTA Work for Women and Youth (African Union)
The Futures Report: Making the AfCFTA Work for Women and Youth is a groundbreaking UNDP Flagship Initiative produced in collaboration with the Secretariat of the African Continental Free Trade Area. It tells the story of the promise of the AfCFTA through the voices of women and youth producing goods and services in Africa. The high-level launch event convenes diverse stakeholders and partners to dialogue on how to support women and youth-owned enterprises to maximize the benefits in the AfCFTA as a means for attaining sustainable development.
E-commerce will enable young people to gain from AfCFTA but legal hurdles loom (The East African)
Young people in Africa could unlock the benefits of the Africa Continental Free Trade Area (AfCFTA) through e-commerce, which accounts for global online sales worth $26 million. The trading bloc comes into force in January 2021. However, even as e-commerce is touted as the panacea for growth of trade in Africa, countries are being warned about the sector’s legal hurdles. When well utilised, technology and online market places can drive inclusive growth across Africa, with e-commerce likely to create as many as three million jobs by 2025. This is according to a recent virtual meeting on Trade Beyond Covid-19: Unpacking the AfCFTA for East Africa.
Algeria, Nigeria will ensure success of AfCFTA, says minister (The Nation Online)
Algerian Minister of Foreign Affairs Sabri Boukadoum has stressed the need for his country and Nigeria to work together to ensure the success of the African Continental Free Trade Area (AfCFTA). Speaking on the possibility of the January 2021 commencement date of the AfCFTA and given the COVID impact, Boukadoum said the date is sacrosanct as the continent is eager for it to begin despite the hiccups.
‘Additional COVID-19 Testing Fee Hindering Trade and Movement in West Africa’ – ECOWAS Ambassador to Liberia Discloses (FrontPageAfrica)
The Special Representative of the President of the Economic Community of West African States (ECOWAS) to Liberia, Ambassador Babatunde Ajisomo, has underscored the need for coherence and harmonization in the fees being charged travellers for Covid-19 test by authorities of countries in the region. Ambassador Ajisomo pointed out that most people are finding it very difficult to travel to and from ECOWAS nations as a result of the disparity in the fees being charged for Covid-19 test in these countries. He further stressed that the Covid-19 testing fees must be harmonized to help boost trade and make
The African Development Bank, the United Nations Economic Commission for Africa and UN Women unveiled details of its Africa Gender Index report during a virtual global dissemination event on Tuesday, 1 December 2020. “Our aim for the Africa Gender Index is to spark dialogue and informed debate and reform on gender equality at national and regional levels. We also hope the Index will enrich and inform the global conversation wherever Africa’s development is on the agenda,” Vanessa Moungar, Director of the Bank’s Gender, Women and Civil Society Department, told online attendees.
International
Africa strains seen growing, report finds (Chinadaily)
The COVID-19 pandemic has severely affected Africa’s economy and is likely to exacerbate its internal economic problems such as the “low growth, high debt” dilemma if proper measures are not taken, a report by the Chinese Academy of Social Sciences said. The Annual Report on Development in Africa (2019-20) was co-released by the Institute of West-Asian and African Studies of the Chinese Academy of Social Sciences, the China-Africa Institute, and the Social Sciences Academic Press (China). The report said given the vulnerability of African economies and their dependence on the outside world, the pandemic will have a profound impact on African economies far greater than the 2008 global financial crisis.
Improve productive capacities in the world’s poorest countries for stronger recovery, UNCTAD says
Efforts to rebuild the economies of the world’s poorest nations post-pandemic will fall significantly short unless their productive capacities are drastically improved, according to UNCTAD’s Least Developed Countries Report 2020. Least developed countries (LDCs) with the most developed productive capacities have best been able to combat the fallout from the pandemic, according to the report. Productive capacities are the productive resources, entrepreneurial capabilities and production linkages that together determine the capacity of a country to produce goods and services and 3 enable it to grow and develop.
Monitoring Small-Scale Cross-Border Trade in Africa: Issues, Approaches, and Lessons (World Bank)
Small-scale cross-border trade (SSCBT) is of substantial importance in African countries. While individual transactions are small, SSCBT volumes add up to sizeable amounts that sometimes exceed official customs-recorded trade across entire categories of goods particularly in agriculture. Thus, while it is often said that African countries trade more with the outside world than with each other, a very different picture of regional integration emerges when SSCBT is considered
Kenya keen on strengthening trade ties with the EU (The Exchange)
Kenya is keen on strengthening trade and investment ties with Europe, President Uhuru Kenyatta has said. Currently, Kenya’s exports to the EU are mainly agricultural commodities such as cut flowers, fruits and vegetables, which account for over 90% of total export value. Others are tea, coffee, fish and fisheries products, sugar, semi-processed tobacco, textile and clothing, coffee and handicrafts, among others. Though trade with the EU is heavily in its favour, it remains Kenya’s second largest market after COMESA.
Let’s not ask what can be done for Africa, Kagame tells Europe (The New Times)
President Paul Kagame has said the idea of always asking what should be done for Africa does not help the continent, but rather emphasized it was important to have mutual understanding between Europe and Africa. Kagame told leaders it was important Europeans and Africans understand each other better if the partnership between the two continents were to flourish, and that the platform was key to achieving that.
UNDP sign partnership to support reopening of Africa travel, trade (The Star)
The United Nations Development Programme has entered a new partnership seeking to support the safe re-opening of Africa to travel and trade in the wake of the Covid-19 pandemic. The partnership with PanaBIOS Consortium, represented by AfroChampions will enable the use of tools such as digital testing certificates and vaccination e-certificates, often backed by machine learning and blockchain systems, to increase the capacity of governments to screen inbound travellers quickly, securely, efficiently, and in a manner that respects human dignity and rights.
Europe Leads the Way in Easing Covid-19 Travel Restrictions (GTP Headlines)
Europe continues to lead the way in lifting or easing travel restrictions, the World Tourism Organization (UNWTO) said on Wednesday. According to the eighth edition of the UNWTO Travel Restrictions Report, as of November 1, a total of 152 destinations – 70 percent of all global destinations – have eased restrictions on international tourism that were introduced in response to the coronavirus (Covid-19) pandemic, up from the 115 recorded on September 1. The 152 destinations that have eased travel restrictions include 40 destinations in Africa (75 percent of all destinations in Africa), an increase of 14 destinations compared to September 1.
Cash flow the biggest problem facing business during COVID-19 crisis (ILO)
A new report on the impact of the COVID-19 pandemic on businesses shows that their greatest challenges have been insufficient cash flow to maintain staff and operations, supplier disruptions and access to raw materials. With businesses already undergoing significant competitive pressure prior to the crisis, government restrictions, health challenges and the economic fall-out brought by COVID-19 further set back many enterprises. Interrupted cash flow was the greatest problem, the survey found. More than 85 per cent reported the pandemic had a high or medium financial impact on their operations. Only a third said they had sufficient funding for recovery.
OP-ED: Developed market stimulus programmes boost emerging market trade surpluses (Business Maverick)
Developed market stimulus packages have lifted emerging market trade fortunes – and, so far, have kept financing pressures largely at bay. The outlook is expected to be favourable for this group of countries too, although South Africa is pinpointed as one of the few that has only a thin buffer to protect itself against any setbacks.
G5 Sahel-EU Summit: Debt cancellation is now a ‘necessity’, Mohamed el-Ghazouani says (Ecofin Agency)
On November 30, the organization of the G5 Sahel countries held a video-conference summit with the European Union (EU) to discuss the problems of the region. In line with their April appeal, they called on foreign countries, particularly those of the EU, to improve their support to the G5 Sahel governments through debt relief initiatives.
WTO Members Reveal “Entrenched” Differences as Fisheries Talks Approach 2020 Deadline (IISD)
The WTO negotiating group in charge of fisheries talks has met almost daily since 23 November in the run up to the end-of-year meeting of the WTO General Council – the organization’s highest-level decision-making body, alongside the Ministerial Conference. Meetings taking place from 30 November to 4 December are held at the heads-of-delegation level to address any deadlocks.
DDG Alan Wolff: “Pressing needs for a breakthrough” in WTO farm trade talks (WTO)
The COVID-19 pandemic should be a wake-up call for all of us. At the outset of the crisis, many policymakers feared that a global health crisis would turn into a food crisis as well. This fear was driven by the realization that food systems across the globe are now deeply inter-connected and that trade restrictions can create serious and irreversible damage to global food production. Today agricultural production takes place within Global Value Chains (GVCs). International trade in food has gone far beyond a bag of rice or a bushel of wheat crossing a national border. Primary commodities cross national borders on average at least twice, as they are exported for processing into food.
Related News
tralac Daily News
National
SA virus fears cloud outlook for banks tied to economy (Moneyweb)
The outlook for South African banks is growing murkier amid the rising threat of a second coronavirus wave that could upend an improvement in economic activity. Africa’s most-industrialised economy is mired in a recession and unemployment is at a 17-year high. That follows restrictions in the second quarter that shuttered everything but essential services. “There remains considerable uncertainty and forecast risk,” Standard Bank Finance Director Arno Daehnke said on a call.
Presidential employment stimulus plan on track, more than 400 000 jobs created (IOL)
The presidential employment stimulus plan is on track to create thousands of job opportunities, the presidency says. President Cyril Ramaphosa announced the employment stimulus initiative earlier this year as part of an effort to create employment opportunities following many people losing their jobs due to the coronavirus pandemic. The move was announced as part of a broad effort to reconstruct the economy as it recovers from the pandemic, Ramaphosa had said.
KAM decries multiple national and county taxes (The Star)
Multiple levies and taxes by national and county governments are hurting businesses already reeling from effects of Covid-19, the Kenya Association of Manufacturers(KAM) has said. These include charges on agricultural produce headed to factories, mainly in Nairobi and supply of manufacturers goods across the country, where industry players have to pay in the inter-county movements. Nairobi is among counties that are making doing business hard, the manufacturers’ lobby group has said, citing the Nairobi City County Finance Bill, 2020.
Used car prices jump as shilling hits historic low (Business Daily)
The cost of second-hand cars has jumped by up to 12 per cent or Sh500,000 per unit over the past three months, propped up by the weakening of the shilling to historic lows against the dollar in the wake of coronavirus-related economic shock. The rise in car prices comes amid plunging purchase orders due to reduced cash flow from to the Covid-19 pandemic, which triggered layoffs and pay cuts as banks reduced credit lines in fear of defaults. Kenyans faced with Covid-19-linked hardships have gone slow on luxury spending.
CMA seeks to review Collective Investment Schemes Regulations in response to market dynamics (Capital Business)
The Capital Markets Authority (CMA), with the support of FSD Africa, has onboarded a consultant to review the Capital Markets (Collective Investment Schemes) Regulations, 2001 to make them more robust and facilitative to market dynamics. The CMA Chief Executive, Wyckliffe Shamiah, said that the proposed legal framework review is designed to address stakeholders’ concerns with the current framework and facilitate the development of a robust asset management sector, in line with the aspirations of the 10-year Capital Market Master Plan (2014-2023).
Kenya’s Year on Year Inflation Rises to 5.46 in November (Capital Business)
Kenya’s year-on-year inflation in November increased to 5.46 percent compared to 4.84 percent in October 2020. Data from the Kenya National Bureau of Statistics reveals that the Consumer Price Index in November was up by 1.19 percent from 109.60 in October 2020 to 110.91 in November 2020. During the period under review, the food and non-alcoholic beverages index increased by 1.54 percent while the year-on-year food inflation stood at 6.09 percent in November 2020.
Kenya drops IPPs for KenGen to generate clean and cheap energy (The East African)
Kenya dropped Independent Power Producers as private project partners in geothermal power production due to their perceived “sluggishness” in supporting government efforts to generate clean and cheaper energy. Energy Cabinet Secretary Charles Keter told The EastAfrican that the government will, instead, work with the state-owned power producer KenGen in the second and third phases of the 465MW geothermal power production at Menengai Geothermal fields, about 185 kilometres northwest of the capital Nairobi.
Nigeria’s gas programme to create 2m jobs annually – Minister (Vanguard)
The Minister of State for Petroleum Resources, Chief Timipre Sylva, says the National Gas Expansion Programme (NGEP) of the Federal Government will create two million jobs annually in the country. Sylva disclosed this at the inuaguration of the programme by President Muhammadu Buhari in Abuja on Tuesday. He said the introduction of gas for the powering of automobile and other engines was a step in the right direction, adding it remained a cheaper and cleaner source of energy.
Customs explains multiple import counter-check system (Vanguard)
Cordinator of the Comptroller General of Customs Strike Force Zone ‘A’, Ahmadu Bello Shuaibu, has said the Service’s four layer import counter-check system is to safeguard the economy and national security against acts of sabotage. This is coming on the heels of the recovery of a staggering N417million within three weeks crack down by his operatives, bringing the full force of its mandate to bear in the mop up of import leakages from all the entry points within its territorial jurisdiction.
Export: FG Highlight Action Plans Ahead January 2021 AfCFTA (THISDAYLIVE)
The digitalisation of Nigerian ports, deployment of e-Customs, investment of over $300 million in inland dry ports and the overhaul of transportation logistics will position Nigeria to take maximum advantage of the African Continental Free Trade Area (AfCFTA), which will be operational January 1, 2021, the Executive Secretary/CEO of the Nigerian Shippers council (NSC), Mr Hassan Bello has said.
Zim scores high on debt management transparency (The Herald)
Zimbabwe has reasonably high ratings in the region in terms of debt management transparency according to the Open Budget Index (OBI). A country’s budget transparency score, reflected on the OBI, assesses the public’s access to information on how the central government raises and spends public resources. According to the Index, Zimbabwe is rated at about 48 percent, trailing behind South Africa and Namibia who are rated at about 87 percent and 52 percent respectively.
Africa
SA to chair AU Executive Council meeting (SAnews)
International Relations and Cooperation Minister Dr Naledi Pandor is set to preside over the 21st Extraordinary Session of the Executive Council of the African Union (AU) today. Pandor will preside over the session in her capacity as the Chairperson of the Executive Council of the AU. “The meeting of the Executive Council is held in preparation for the upcoming 13th and 14th Extraordinary Summits on the African Continental Free Trade Agreement (AfCFTA), and on Silencing the Guns in Africa, which will be held on 05 an 06 December 2020, respectively,” said the Department of International Relations and Cooperation (DIRCO) on Wednesday.
Cameroon becomes 33rd country to ratify AfCFTA one month to start of trading (UNECA)
Cameroon’s decision comes after Lesotho and Tunisia submitted their own instruments on 27 November, leaving only 21 countries yet to ratify the treaty. They are Benin, Botswana, Burundi, Cape Verde, Central African Republic, Comoros, Democratic Republic of the Congo, Guinea-Bissau, Liberia and Libya. The others are Madagascar, Malawi, Morocco, Mozambique, Nigeria, Seychelles, Somalia, South Sudan, Sudan, Tanzania and Zambia.
Ratification, border opening and stakeholders’ views, as AfCFTA is set to commence January 2021 (Nairametrics)
The African Continental Free Trade Area (AfCFTA) is expected to open up Nigerian businesses to a market of over 1.2 billion people and a GDP of $2.5trillion. The Nigerian Government ratified the agreement on November 12, ahead of the December 5 deadline issued by the African Union to its 55 member states, as AfCFTA is expected to commence January 2021. Despite this welcome development, some stakeholders are still concerned with the border closure policy of the Federal Government and dumping of substandard goods in the Nigerian market, with the recent disclosure by the FG that the borders will be reopened soon.
AfCFTA: Nigeria can ban 10% of sensitive goods, others at borders (Daily Trust)
In spite of the African Continental Free Trade Area (AfCFTA) starting in January, Nigeria has the right to restrict import of seven per cent of goods considered as sensitive for 10 years when the land borders reopen. The free trade pact also permits Nigeria to permanently deny tariff liberalization of three per cent of other goods from being imported.
The Executive Director, Trade Law Centre and member of the Committee for Development Policy (CDP), Trudi Hartzenberg, said the AfCFTA clearly made provisions for phased tariff concessions. Hartzenberg said all member states have agreed that 90% of tariff lines are to be liberalised. Under the free trade pact, a distinction is drawn between Least Developed Countries (LDCs) and non-LDCs for the tariff negotiations. LDCs have 10 years to achieve 90% liberalisation, while non-LDCs, where Nigeria falls in, have five years. The remaining 10% tariff line is split into 7% for sensitive products and 3% may not be liberalised entirely.
Banks will play a principal role in AfCFTA – Azubike Chimezie Obi (MyJoyOnline)
The African Continental Free Trade Area Agreement (AfCFTA) seeks to liberalize trade and services across the African continent, making it the largest free-trade area in the world. It will produce a single market of more than 1.2 billion people with accumulative Gross Domestic Product (GDP) in excess of US$3 trillion. While this will provide the continent with great opportunities, Mr. Azubike Obi,Group Head, Business Development at FBN Bank Ghana Limited believes that “the degree of success of any country with AfCFTA heavily depends on its financial services sector since it will serve as the engine that will drive the expected activities.”
‘Continued border closure negates AfCFTA’s liberalisation agenda’, says MAN (The Guardian)
The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to review its stance on border closure, citing that the trade protocol is premised on liberalisation of intra-regional trade in the continent. Indeed, the border closure has created rancour between Nigerian and its neighbours, especially Ghana, while its economic impact has been severe for Nigerians that depend on imported food to address the shortfalls in local production, as well as manufacturers that exploit the West African markets for expansion.
Action Committee on AfCFTA partners NSC on transportation infrastructure deficit (Vanguard)
National Action Committee on AfCFTA for Transportation is inking partnership with the Nigerian Shippers Council, NSC, to address deficits in transportation infrastructure in the country. Committee led by the Co-Champion, Mrs Funmi Folorunsho, paid a visit to the headquarters of NSC in Lagos. Some of these crucial factors as road infrastructure, railway connectivity to inland dry ports and hinterlands, speedy cargo evacuation, automation, single window platform at ports, availability of fleet for ships and aircrafts, among others. He said Nigeria could be ready for the AfCFTA take off in January 2021, adding that the port system would be fully automated in the first quarter of 2021.
Illicit Financial Flows (IFFs) have been at the centre of discussions in Africa due to their negative impact on development financing, sustainable development and growth. The emergence of the COVID-19 pandemic has exacerbated the fiscal deficit situation in some African countries, equally bringing to the fore, the urgency to address the vice of the illicit outflows. To enhance efforts to combat the scourge of IFFs on the African Continent, the African Union Commission through the Department of Economic Affairs, is scheduled to launch a Multi-Donor Action to add to the existing mechanisms established to stem the illicit outflows. The Multi-Donor Action will be launched during the African Union’s Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration from 1st to 4th December 2020.
African Union Directors General of Customs Meeting reviews AU Guidelines on COVID-19 (WCO)
At the invitation of the African Union (AU) Commissioner for Trade and Industry, H.E Albert M. Muchanga, the WCO Secretary General, Dr. Kunio Mikuriya, spoke at the AU Sub-Committee of Directors General of Customs Meeting held online on 27 November 2020. The Meeting listened to a WCO presentation on the role of Customs in mitigating the impact of the COVID-19 pandemic and considered the draft AU Guidelines on Trade and Transport Facilitation for the Movement of Persons, Goods and Services across Africa during the COVID-19 Pandemic.
Afreximbank launches MANSA, Africa’s Digital Due Diligence Repository
African Export-Import Bank (Afreximbank) today in Cairo officially launched the operations of ‘MANSA’, a pan-African customer due diligence repository for financial institutions, corporate entities and SMEs, developed to address the perceived risk of doing business in Africa and with Africans. The Platform will also serve to address key trade related challenges facing the continent, including, the lack of market information, the high cost of doing business in Africa and discovering African counterparties
Inclusive governance and regional focus will help drive Africa’s industrialization (Africa Renewal)
What reforms does Africa need going forward? Much-needed reforms on the continent must be guided by two main streams. The first stream is governance that is more open to local communities, to civil society and to the private sector. And by the private sector, I do not mean big multinationals. I am referring to MSMEs. A governance system that is open to these actors will ensure that Africans’ interest is defended. The second type of reform is to have leaders who think regionally because national solutions are not optimal solutions.
Geospatial information critical for Africa’s sustainable development (UNECA)
The Sixth Meeting of the Regional Committee of the United Nations Global Geospatial Information Management in Africa (UN-GGIM: Africa) opened Tuesday with the Director of the African Centre for Statistics at the Economic Commission for Africa (ECA), Oliver Chinganya, emphasizing the importance of solid, reliable and accurate ‘place-based’ information for informed decisions needed to tackle Africa’s greatest challenges.
International
SA must learn from the scramble for Covid-19 vaccines, develop own capacity – Pandor (News24)
South Africa should use lessons from the pandemic to focus on ensuring that it can manufacture vaccines in future, rather than just advocating that these should be made freely available to all, International Relations and Cooperation Minister Naledi Pandor has said. Pandor on Tuesday night told a Zoom lecture organised by the South African BRICS Think Tank, made up of researchers and academics: “There’s no better lesson than the pandemic towards the importance of research development and innovation and I believe, if there is anything South Africa should give attention to, it is that. If we don’t, we remain vulnerable.”
Reconsidering Africa as a potential growth market for US businesses (Forbes Africa)
While US companies began the year with uncertainty over continuing tensions between China and the United States, by March a new, wholly unexpected series of challenges emerged as a result of COVID-19. As we look ahead to a new year, the question on many businesses’ minds will be how to build greater resilience and where to look for growth opportunities that position them strongly for the future. However, entering a new market is never an easy undertaking. Cultural differences, contrasting operational styles, and mismatched regulatory expectations often present significant challenges.
Transition 2020 | Biden and Trade: Africa Policy Shifts Back to Traditional US Engagement (The National Law Review)
President-Elect Joe Biden’s campaign platform pledged the US would renew a “mutually respectful engagement toward Africa with a bold strategy.” His immediate focus, however, will be to tackle domestic matters like COVID-19 and the economy. Initial engagement with Africa may therefore be conducted through combatting the pandemic, bilaterally and multilaterally, and via the Global Health Security Agenda, as the new administration further refines its Africa strategy. The incoming administration will likely seek initially to “restore and reinvigorate” diplomatic relations with African governments and the African Union with respect to combatting the pandemic. Biden officials will focus more on multilateral trade relationships, and less on bilateral trade talks.
China’s African engagement? (The Express Tribune)
With China-Africa trade crossing $200 billion, China has become the largest trading partner in Africa and currently more than 10,000 Chinese firms are working across the continent. China’s commitment also reflects through Belt and Road Africa Reconstruction Fund amounting to $1 billion and African Aid Package of $60 billion. China helped Africa build some mega-infrastructure projects, which include a $12 billion coastal railway in Nigeria, $4.5 billion Addis Ababa-Djibouti Railway, and $11 billion port and economic zone at Bagamoyo.
South African wine could be a winner as China slaps Australia with massive import duties (Business Insider)
China has slapped import tariffs of between 107% and 212% on Australian wines from this weekend, as part of a tense – and growing – trade war between the countries. In recent months, China also banned exports from some Australian beef facilities, launched a crackdown on coal imports from that country, and imposed an 80% tariff on Australian barley. China says the barley and wine tariffs are anti-dumping measures, but commentators believe it has more to do with Australia’s call for an investigation into China’s handling of the coronavirus pandemic, as well as its decision to exclude Huawei from the development of Australia’s 5G network.
Could China replace Australian iron ore with metal from Africa? (The Guardian)
Across China and around the clock, furnaces fuelled by Australian iron ore pump out the steel the country needs to build its way out of the coronavirus downturn. But as China’s trade war with Australia has become louder, working its way from unofficial stoppages to swingeing tariffs on barley and wine, so too have rumblings that the country may slow or end its use of Australian ore. For Australia, a lot is at stake.
Scientific and trade cooperation between China and Africa (Modern Diplomacy)
Africa, as China’s economic and trade partner, has brought huge mutual benefits. Africa has the 53 most important minerals on the planet and some rare strategic resources, but the rate of development and use of arable land is lower than 30%. Although China is the world’s richest country for mineral resources, its per capita share is less than half of the world’s level. Hence, together with the regular distribution of mineral resources, it is also necessary to establish greater China-Africa relations to broaden the trade channels for these resources.
Cairo is Africa’s Leading Fintech Ecosystem in 2020, Kampala Leads Sub-Saharan Africa- Report (Technext)
Egypt’s capital, Cairo is Africa’s leading Fintech Ecosystem and the only African Ecosystem listed among the world’s top “Ecosystems to watch” in 2020. This is according to the Global Fintech Ecosystem Report (GFER) produced by Startup Genome LLC. The ranking is based on a mix of quantitative (e.g., funding, exits, talent, focus and legacy) and qualitative factors (founders, experts and policymakers in the ecosystem).
First virtual trade mission for UK-Africa legal services (GOV.UK)
Legal services experts from the UK and Africa will be brought together for a landmark virtual trade mission, hosted by the Lord Chancellor Robert Buckland QC. Part of the Ministry of Justice’s Legal Services are GREAT (LSAG) campaign, it will promote the UK’s prestigious legal sector to some of the fastest growing economies in the world.
Nine countries oppose move to waive Covid vaccine patent rights (The East African)
A waiver on patents and other intellectual property-related rights to Covid-19 drugs, vaccines, diagnostics and other technologies – lasting the duration of the pandemic – has been delayed by at least nine developed countries. The waiver, proposed at a World Trade Organisation meeting on November 20, will suspend various provisions of the body’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement to combat the Covid-19 pandemic. The intellectual property waiver would allow all countries to choose to neither grant nor enforce patents and other IPs related to Covid-19 drugs, vaccines, diagnostics and other technologies, until global herd immunity is achieved.
UN appeals for $35 billion to help world’s ‘most vulnerable and fragile’ in 2021 (UN News)
Mark Lowcock said that the global health crisis had impacted dramatically people already reeling from conflict, record levels of displacement, climate change shocks. He said that “multiple” famines are looming. The situation is “desperate” for millions and has left the UN and partners “overwhelmed”, he added. “The picture we are presenting is the bleakest and darkest perspective on humanitarian needs in the period ahead that we have ever set out. That is a reflection of the fact that the COVID pandemic has wreaked carnage across the whole of the most fragile and vulnerable countries on the planet.”
Global agreement on migration ‘taking root’ despite pandemic challenge: Guterres (UN News)
“The Compact reflects a growing global understanding of the great benefits of human mobility. But it also recognizes that, if poorly managed, migration can generate huge challenges, from a tragic loss of life to rights abuses and social tensions”, said Secretary-General António Guterres, launching his biennial report on the Compact’s implementation. Mr. Guterres outlined three key recommendations, the first of which is to embrace the spirit of collaboration “no country can address migration alone.”
The 2020 Atlas of Sustainable Development Goals: Stories and insights through innovative visuals (World Bank Blog)
This year’s Atlas is a web publication that guides readers through the Sustainable Development Goals (SDGs) using interactive storytelling and innovative data visualizations. The Atlas aims to expand understanding of key SDG indicators and trends, which is important for measuring progress and directing action. The 2020 edition seeks new and creative ways to expand understanding of each of the 17 goals.
Challenges and Opportunities From COVID‐19 for Global Sustainable Development (Wiley Online Library)
We live in unprecedented times, faced with a pandemic of monumental proportions. COVID‐19 not only has wreaked havoc across the world, it has exposed fundamental weaknesses in the healthcare systems and capabilities in a number of countries, both rich and poor. Against this backdrop and addressing the systemic nature of the pandemic and related effects, we identify challenges and opportunities that COVID‐19 presents by linking the immediate need to curb the spread of the disease to the SDGs.
Opening Plenary, 19th International Anti-Corruption Conference (IMF)
It is especially important to zero in on corruption in the midst of this crisis – the worst health and economic crisis of our lifetimes. There is so much suffering that every penny counts towards saving lives and protecting livelihoods. And it is also a time when if people don’t trust government, they will not follow the recommended health and containment measures. Corruption corrodes this trust and it weakens the impact of policies and public spending.
Economy: Continued fiscal support and public health action needed to make hope of recovery a reality (OECD)
The prospect of a number of COVID-19 vaccines becoming widely available next year has lifted hopes for a faster recovery, but policymakers will need to retain both public health and fiscal support while acting decisively for the momentum to pick up, according to the OECD’s latest Economic Outlook. Global GDP in the fourth quarter of 2020 is expected to be 3% below the same quarter last year, while for the Euro area and the US the decline is projected to be 7.3% and 3.2%, respectively.
Related News
tralac Daily News
National
30 November 2020 - Trade Statistics for October 2020 (SARS)
The South African Revenue Service (SARS) today releases trade statistics for October 2020 recording a trade surplus of R36.13 billion. These statistics include trade data with Botswana, Eswatini, Lesotho and Namibia (BELN). The year-to-date (01 January to 31 October 2020) trade surplus of R203.23 billion is an improvement from the R3.27 billion surplus for the comparable period in 2019. Exports increased by 21.5% year-on-year whilst imports declined by 5.7% over the same period.
SA ports tariffs are set to stay unchanged for 2021/22 (IOL)
The Ports Regulator of South Africa has elected not to increase the average tariffs for the financial year 2021/22 to aid the battling maritime industry amid Covid-19 disruption that has hammered SA’s ailing economy. At the end of July, the National Ports Authority (NPA) applied to the Ports Regulator in terms of a section of the National Ports Act for approval of the tariffs for services and facilities it offered for an average of 19.74 percent increase for the period April 1, 2021 to March 31, 2022, together with indicative tariffs of -0.29 percent for the period April 2022 to March 2023 and -7.86 percent for the period April 2023 to March 31, 2024.
Agbiz to focus on niche and labour-intensive value chains (IOL)
The Agricultural Business Chamber (Agbiz) said on Monday that while there was room for the localisation strategy in South Africa’s agriculture, food and beverages sector, the focus would not primarily be on the top-ten imported products, but rather on niche and labour-intensive value chains that the country had not yet explored optimally. Agbiz chief economist Wandile Sihlobo said determining such value chains would require deep research which the Department of Trade, Industry and Competition (DTIC) should lead, along with private sector players.
Nam advances regional logistics hub dream (The Southern Times)
The Namibian government’s plan of making the country a transport and logistics hub for Southern Africa got a boost with Monday’s ground-breaking ceremony for rehabilitation and upgrading of the railway line between Walvis Bay and Arandis. The project will be undertaken by China Gezhouba Group
Trade minister, UNBS to meet over digital stamps (Daily Monitor)
Trade Minister Amelia Kyambadde has said she will this week hold a meeting with Uganda National Bureau of Statistics (UNBS) officials to discuss the planned introduction of digital tracking solutions. UNBS last week confirmed it was planning to introduce digital tracking solutions in which it would conduct a phased implementation starting with high risk products such as cosmetics and beauty products, construction material, electricals and electronics.
Weekly Economic Index: Nigeria’s economy enters a full-blown recession in Q3 (Ventures Africa)
Recently, the National Bureau of Statistics (NBS) revealed that the October 2020 Consumer Price Index (CPI) increased by 14.23 percent (year-on-year). The rise represents 0.52 percent, compared to the rate recorded in September 2020 (13.71 percent). The CPI is used to measure the inflation
Nigerian traders in Ghana raise alarm over fresh shops closure (P.M. News)
The National Association of Nigerian Traders (NANTS) has called on the Federal Government to take urgent action as Ghanaian Authorities embarked on another round of closure of shops belonging to Nigerian traders on Monday. The National President of NANTS, Dr Ken Ukaoha, who made the call in an interview with the News Agency of Nigeria (NAN) in Abuja, condemned the maltreatment of Nigerian traders in Ghana Ukaoha said that the entire process showed Ghana’s decision to undermine trade and economic integration process in ECOWAS.
Ghana among top 3 African markets in infrastructure investments – Report (Ghanaweb)
A total of US$7.9 billion of investments involving private participation in infrastructure since the year 2000 put Ghana among the top three Sub-Saharan African markets, after South Africa and Nigeria. According to Fitch Solutions latest appraisal of the Ghanaian economy, considerable Private Public Partnership track record and pipeline underscore private infrastructure investment opportunities in the country since the year 2000.
Africa
AfCFTA: Africa readying for free trade come January 2021 (Africa Renewal)
The AfCFTA agreement itself requires countries to protect the vulnerable, including women traders, and to address corruption. African states with bilateral trade agreements with foreign countries or other regions such as the European Union will need to walk a tightrope in meeting prior commitments while implementing the AfCFTA. Optimistic projections of the benefits of Africa’s free trade are, in theory, based on orthodox economic calculations – a linear demand and supply correlation that may not fully encompass externalities such as the availability of countries’ implementation capacity, requisite infrastructure, policy coherence and so on.
Tunisia and Lesotho join growing number of countries to ratify AfCFTA one month to start of trading (UNECA)
One month to the commencement of trading at the African Continental Free Trade Area (AfCFTA) agreement, two more countries have formalized their ratification of the agreement. Lesotho and Tunisia submitted their instruments of ratification to the African Union Commission (AUC) which is the depository of the instrument on 2 November, according to the Commissioner for Trade Albert Muchanga.
Virus Gives Top Sub-Saharan Container Hub Room to Revamp Systems (Bloomberg)
As Covid-19 restrictions wreak havoc on the world’s major ports by exposing inefficiencies and lengthening delays, trade at sub-Saharan Africa’s biggest container hub is functioning well after a strict lockdown gave it room to test and institute new systems .A lull in activity amid the curbs meant authorities at the Port of Durban on South Africa’s east coast was able to try new ideas and “had an appetite to take little bits of failure but quickly recover because there wasn’t a lot of pressure,” said Moshe Motlohi, its general manager.
COVID-19: Africa urged to allocate adequate resources to secure vaccines (New Vision)
A leading African Immunization expert has called on African countries and the international community to take concrete actions to ensure the continent has equitable access to the coronavirus (COVID-19) vaccines. Dr Omu Anzala, a Kenyan professor of virology and immunology said Africa should start planning logistics and distribution of vaccines instead of being skeptical and hesitant. “The emerging global issue right now is acceptance of the vaccines, availability and its access,” said Dr Anzala.
ECOWAS Energy Forum 2020 calls for acceleration of decentralised renewable energy in West Africa (Journal du Cameroun)
The fourth annual Sustainable Energy Forum (ESEF 2020) of the Economic Community of West African States (ECOWAS) has highlighted the collective progress in achieving the ECOWAS regional sustainable energy targets. The forum emphasized the remaining challenges faced by stakeholders in building a robust renewable energy and energy efficiency market. ECOWAS Commissioner for Energy and Mines, Douka Sediko described the renewable energy opportunities in the ECOWAS region as huge and called for a concerted effort in mobilising necessary finances.
Study on the Socio-Economic Impacts of Covid-19 Pandemic in COMESA Region Completed
COMESA Secretariat has conducted a study on the socio-economic impacts of the COVID-19 pandemic in the region. The study is expected to help Member States in developing policies to address the impacts of the pandemic on their economies. According to the study, only six Member States: Egypt, Ethiopia, Kenya, Malawi, Rwanda and Uganda are projected to have positive growth rates post COVID-19 pandemic. The resultant contraction in economic growth in countries is likely to hit hard countries that are resource intensive, oil exporters, and tourism dependent. Non-resource intensive countries will be more resilient.
COVID-19 Food and Nutrition Security Response Plan Endorsed (COMESA)
The Council of Ministers has endorsed the COMESA COVID-19 Food and Nutrition Security Response Plan developed to help the region deal with the impacts of COVID-19 on regional food security. The plan is designed to address immediate, short-term and medium-term food security and livelihoods needs while integrating the response effort to the long-term regional agriculture development and integration agenda.
Inclusive and sustainable growth critical for West Africa’s successful transformation (UNECA)
There can be no meaningful and successful transformational development in West Africa in the absence of inclusive growth and development, Nigeria’s Minister of State for Budget and National Planning, Prince Clem Ikanade Agba, said during the region’s just-ended 23rd session of the Intergovernmental Committee of Senior Officials and Experts (ICE) for West Africa. “It is now up to you to identify drivers that will move the sub region forward. It is therefore necessary to develop and deploy human capital and improve our infrastructure stock to increase productivity and competitiveness,” he said.
2 million Ugandan women to benefit from continental entrepreneurship program (The Kampala Post)
2 million Ugandan women involved in entrepreneurship are set to benefit from an initiative that the government has adopted to help them expand access to capital financing, business information and networks across the Africa continent to support their businesses, Sarah Kanyike, the minister of state for Disability and Elderly Affairs, said in a statement. The 50 Million African Women Speak Networking Platform “is an online social network that allows women in Africa learn from each other and be able to share lessons, as well as conduct business,” Minister Kanyike said.
Economic outlook for the Central African Republic: Diversifying the economy to build resilience and foster growth (World Bank)
According to the World Bank’s latest economic update for the Central African Republic (CAR), entitled The Central African Republic in Times of COVID-19: Diversifying the economy to build resilience and foster growth, the country’s pace of economic growth for 2020 will have slumped to between 0 and −1.2% as a result of the COVID-19 pandemic following five years of robust growth (4.1%, on average). In 2019, although the country’s growth rate slipped to 3.1%, it was still higher than the rates recorded by neighboring countries that are facing a similar situation of fragility, conflict, and violence., the update notes that the global slowdown has not spared CAR, where production of its main export products, such as coffee and cotton, has plummeted. The health crisis has weakened public finances and deepened the country’s balance of payments deficit.
Beitbridge to get R4.5bn upgrade to stop delays – and bribes (Business Insider)
The Zimbabwean side of the Beitbridge border post is now on track to get a $296 million (R4.6 billion) upgrade after key investments. Bloomberg reported this week that private equity firm Harith General Partners and the Phembani Remgro Infrastructure Fund are buying stakes in Zimborders, which has a concession to design, build and operate the border post for more than 17 years as part of a public-private partnership project. Large banks in South Africa also committed funding to the project.
Beitbridge, Plumtree borders open on low note (The Herald)
The country’s southern borders with Botswana (Plumtree) and South Africa (Beitbridge) re-opened as planned at 6am today with low activity under a new set up where passenger traffic including motorists and pedestrians is now allowed passage through the port of entries. Strict and safe covid-19 screening methods are being carried on all those leaving or entering the country. Before the reopening of the borders to more traffic, today, Plumtree and Beitbridge were handling 5000 and 15 000 people daily.
International
COVID-19 Policy Briefing Series
COVID-19 and Commonwealth FDI: Immediate Impacts and Future Prospects
Wednesday 2 December 2020, 1500 – 1600 GMT
COVID-19 is affecting all aspects of foreign direct investment (FDI). The pandemic has led to a slowdown in the implementation of existing investment projects, resulting in delayed FDI flows; and many firms have deferred investment decisions amid heightened uncertainty, significant income losses and, in certain cases, factory closures and supply disruptions. As a result, FDI inflows into all Commonwealth countries are expected to fall by 50 per cent to US$178 billion in 2020. A significant loss of FDI will undermine economic growth and transformation in Commonwealth countries and could constrain Commonwealth trade in the medium- and long-term. This webinar will discuss the findings of a recent study by the Commonwealth Secretariat and UNCTAD.
The Trade Hot Topic is available here: https://thecommonwealth.org/sites/default/files/inline/THT-170.pdf
Register for the webinar: https://attendee.gotowebinar.com/register/3588335773032029456
EAC upbeat Biden will revive stalled trade talks (The East African)
The East African Community is optimistic that the US President elect Joe Biden will revive the negotiations and implementations of the EAC-US Trade and Investment Partnership. This came to the fore as leaders from the EAC congratulated Biden for his election win, with many expressing hope that his presidency will boost ties with the regional bloc. The Trade and Investment Framework Agreement (TIFA), which is a trade pact that establishes a framework for expanding trade and resolving outstanding disputes between countries, was agreed between US and EAC partner states in June 2012 but was never implemented.
UK-Kenya trade pact awaits approval from EAC Council of Ministers (The East African)
East African Council of Ministers will, this week, hold their last meeting of the year with Kenya hoping to get approval to separately sign a trade agreement with the United Kingdom ahead of the December 31 deadline. The EastAfrican has learnt that the virtual meeting of the EAC Sectoral Council of the Ministers of Trade, Industry, Finance and Investment (SCTIFI) will also discuss other regional matters such as EAC policies on trade, non-tariff barriers, Customs, budgets, standards and quality, industrialisation and the tripartite agenda.
China to cut back lending to Africa in the post-COVID-19 era (The Africa Report)
Chinese infrastructure lending to African countries is widely expected to slow over the next 1-2 years amid mounting debt sustainability concerns. This would mark a dramatic change over the past twenty years when Beijing emerged as a key source of development finance that helped Africa close its gaping $100 billion-a-year infrastructure deficit. At least 18 countries are currently renegotiating debts with China, with 12 others still in talks to restructure an estimated $28bn of Chinese loans, according to the New York-based consultancy Rhodium Group.
It’s Time for an Africa Policy Upgrade (Foreign Policy)
U.S. President Donald Trump’s policy toward Africa will be remembered by its tone of disrespect, from his calling African nations “shithole countries” to canceled cabinet-level trips to the region. But while he needs to restore civility to U.S. foreign policy, President-elect Joe Biden shouldn’t fully reject Trump-era Africa policy when he takes office. In part, that’s because Africa policy is unique. It has historically been uncontroversially bipartisan, and U.S. presidents from Bill Clinton to Trump have continued their predecessors’ Africa programs.
African agency in the new Cold War: Traditional power competition in the post-COVID-19 African landscape (Atlantic Council)
This paper explores the shifting roles of Africa’s traditional external powers: China, the United States, the EU, and India. Section 1 introduces the evolving postures and colliding interests of these powers. Section 2 maps out the competitive post-COVID landscape and outlines economic and security flashpoints. Finally, Section 3 identifies opportunities for African nations to pursue their own ambitions while resisting the imposition of a new Cold War–style competition on the continent.
COVID-19 crisis accentuating the need to bridge digital divides (OECD)
Improved Internet connectivity and skills have helped many countries to cope with the health and economic crisis from COVID-19. Yet the pandemic has raised the bar for the digital transition and underscores the need to close the digital divides that risk leaving some people and firms worse off than others in a post-COVID world, according to a new OECD report.
Related News
tralac Daily News
National
South African Retailers Turn From China to Source Local Clothes (Bloomberg Quint)
South African retailers including The Foschini Group Ltd. and Woolworths Holdings Ltd. are increasing investment in local clothing manufacturers – both to reduce a dependency on Chinese imports and secure a supply chain thrown into disarray by Covid-19 restrictions. The companies have signed up to an industry plan that includes a target to source 65% of their goods from local manufacturers within the next decade. While progress toward the goal varies per chain, the spread of the coronavirus has sharpened their collective focus. The pandemic caused “such disruptions to the supply chain that everyone’s sitting back and saying do we ever really want to be that reliant on China ever again?” TFG Chief Executive Officer Anthony Thunström said in an interview.
Export taxes becoming more prevalent globally (The Herald)
South Africa has joined the bandwagon in imposing export taxes to either collect more revenue or alter the flow of goods across borders. The Customs and Excise Duty Act has been amended to allow the minister of finance to impose an export duty whenever he deems it expedient in the public interest. This amendment becomes effective from March next year. And on April 1 South Africa will introduce an export tax on nine tariff codes on scrap metal. There has been talk about a 30 percent export tax on chrome and further export duties on iron ore, leather and maize. However, no implementation dates have been announced.
Roundup: Online sites bring markets closer for rural Kenya farmers (Xinhua)
Poor road network and lack of transport and quality market are among challenges farmers in rural Kenya have grappled with for years, making agriculture less profitable though it is the source of livelihoods for millions in the countryside. These challenges had pushed many people to farm closer to urban areas like Nairobi where they can easily access good market and the road network is better. However, the advent of online marketplaces where farmers are selling their produce is eliminating many of the challenges for rural farmers, in particular access to quality market.
Rwanda’s GDP declines by 12.4pc in the second quarter (The East African)
Rwanda’s economy has been hit severely by the pandemic with various sectors registering a significant drop in production and consumption of services despite ongoing efforts by the government to revamp the economy. While there has been an increase in economic activity, it is yet to significantly improve the country’s economic prospects as some sectors of the economy remain closed. From July to September, the second quarter, Rwanda’s Growth Domestic Product (GDP) dropped by 12.4 per cent compared to the same period in the previous year, partly due to the prolonged impact of the total lockdown imposed in March for almost two months.
Covid exposes Kenyan banks’ bad loans (The East African)
Kenyan banks are figuring out how to recover as they face lower end-of-year bonuses and reduced dividends for shareholders. The banks are weighed down by the Covid-19 pandemic, the spillover effects of rate caps, stringent loan loss provisioning, demands of the international financial reporting standard (IFRS 9), and challenging economic conditions that have seen the government downgrade the growth prospects of this year to a record low of 0.6 percent, from 2.6 percent.
Do not use protectionism to achieve import substitution – experts (Daily Monitor)
Uganda should not use the excuse of import substitution to promote protectionist tendencies, according to Mr Ramathan Ggoobi, a lecturer at Makerere University Business School. Mr Ggoobi, who is also an economist, said there has been a clamor for import substitution, which apparently focuses on saving the country from spending on imports, which could be viewed as a form of protectionism. Government, in the 2020/21 budget introduced high import duties on some imports as a way of safeguarding local industries. While presenting findings of a research titled Import Substitution: Uganda’s Post-Covid-19 Industrial Policy Strategy in Kampala last week, Ggoobi said government should use industrial policies such as production subsidies, preferential access to credit and equity instead of using trade policies such as high tariffs, quantitative restrictions and import prohibition under the guise of promoting import substitution.
Nigeria: Stakeholders fear monopolies with selective border re-opening for Dangote, BUA (WorldStage)
Trade and Industry Stakeholders have said that the reported re-opening of the borders to allow Dangote and BUA companies to trans ship their goods across the closed borders was lopsided and amounted to a ‘selective decision’ that would engender monopolies. Key stakeholders made this assertion in a communique issued on Sunday after a Webinar and Physical “Stakeholders’ Review Meeting on the Recommendations of the Policy Dialogue on Border Closure and Matters Arising”.
Government cautioned on tax breaks for oil and gas sector (Ghanaweb)
The Natural Resource Governance Institute (NRGI) has cautioned government to avoid granting tax breaks to companies in the oil and gas sector. The institute’s latest briefing, which assessed the risk of a “race to the bottom” in how oil- and gas-producing countries manage tax issues in the pandemic context, said with the drop in oil prices, some countries will likely have to decide whether they will give tax breaks to oil and gas companies to attract or retain investment.
GHS21billion spent to clean up the financial sector-Veep (BusinessGhana)
Vice-President Dr Mahamudu Bawumia says government has spent GHS21billion to clean up the financial sector. He said 99 per cent of depositors of the affected banks, microfinance and savings and loans companies had been fully settled. The Vice-President was speaking at the 12th Edition of the Nation Building Updates at the Cedi Conference Centre, Department of Economics, University of Ghana. The event was on the theme, “Future of Ghana’s Economy”.
Africa
‘AfCFTA creates a new trade and integration reality’ (Global Trade Africa)
Industry experts meeting last week for a virtual discussion focused on resetting, retooling and restarting regional integration in Africa in the wake of the COVID-19 pandemic, underscored the importance of putting small scale traders at the heart of any initiatives. The joint webinar, organised by the African Development Bank and Korea Customs Service (KCS), looked at service sectors, e-commerce, digital platforms and value chain development as critical factors for accelerating trade and investment in Africa against the backdrop of the global pandemic.
“AfCFTA creates a new trade and integration reality…integrating unequal partners across the continent,” said Trudi Hartzenberg Executive Director of the Trade Law Center (TRALAC). Trade facilitation enjoys specific focus within the AfCFTA, with digital, e-payments, and e-commerce particularly
Strategy to ensure Namibia benefits from AfCFTA (New Era Live)
Namibia is in the process of developing a National Africa Continental Free Trade Area (AfCFTA) Implementation Strategy and Action Plan. Once implemented, this strategy is expected to enable the country to identify key value addition and trade opportunities while attending to operational constraints to optimally benefit from the AfCFTA. Minister of Industrialisation and Trade, Lucia Iipumbu, said the strategy will provide the private sector with important entry points into the regional markets as well as to alert the state to the required support to stakeholders.
Stakeholders outline how Nigeria should mobilise for AfCFTA (The Eagle Online)
Trade and investment stakeholders in Nigeria at the weekend outlined ways the country could effectively mobilise for the Africa Continental Free Trade Area (AfCFTA). They made the submissions at a virtual ‘Nigeria Investment Conference’. Awe, who is the Chairman of NACCIMA’s Export Group, noted that the government cannot do everything given the myriad challenges it faced, as such the Organised Private Sector (OPS) should work around the challenges in the system, to effectively position its members for the AfCFTA.
African startups can secure development funding through AfCFTA Vision Challenge (Disrupt Africa)
African tech startups have been invited to apply for the AfCFTA Vision Challenge, which offers them the opportunity to secure investment from development finance institutions while also putting them in prime position to benefit from the opportunities offered by the African Continental Free Trade Agreement. The AfCFTA Vision Challenge, part of the broader Vision Initiative to boost access to funding and technological capacity for startups, SMEs, innovators and entrepreneurs across the continent, has been launched alongside the Sankoree Institute of AfroChampions, and is open to startups working in any one of eight critical issue areas, including education, health, agriculture, infrastructure, good governance, manufacturing and environment.
The United Nations Economic Commission for Africa (ECA) and Portulans Institute, a research and educational think tank based in Washington DC, have teamed up to launch the results and rankings of the think tank’s latest edition of the Network Readiness Report (NRI 2020) in a bid to assess how countries are leveraging information technologies for future readiness. Titled, ‘Accelerating Digital Transformation in a Post-COVID Global Economy’, the Report will be launched virtually on 30 November.
Spectre of debt defaults haunts EA as Covid-19 shrinks exports, taxes (The East African)
East African countries face a higher risk of debt defaults as governments grapple with shrinking tax revenues, lower export earnings, as well as limited access to external resources. The Covid-19 pandemic has amplified this vulnerability with debt-to-GDP ratios exceeding 50 percent. Latest data by the United Nations Economic Commission for Africa (UNECA) shows that on average over 10 percent of export revenues and primary income in the region is spent on debt repayments. The debt levels have been brought into sharp focus by recent developments in the region.
INDEPTH | Africa Industrialization Day 2020: Towards inclusive, sustainable industrialization in the AfCFTA era (African newspage)
The Africa Industrialization Week 2020 (AIW 2020) climaxed with a high-level session commemorating the African Industrialization Day 2020 (AID 2020), where President Mahamadou Issoufou of the Republic of Niger cum AU’s President Champion of the African Continental Free Trade Area (AfCFTA) was honoured for his transformational leadership of the AfCFTA process. The week-long commemoration saw deliberations on key topics pertinent to the continent’s inclusive and sustainable industrialization. Pertinent issues discussed during the course of AIW2020 include Africa’s need for renewable energy and circular economy; Place of quality infrastructure in Africa’s trade, industrialization and economic policies; Place of micro, small and medium enterprises (MSMEs) sector as a game changer in Africa’s industrialization process, amongst many other crucial topics.
COMESA Extends Kenya Sugar Safeguard for Two Years
COMESA Council of Ministers has granted Kenya a two year extension of the sugar safeguard beginning March 2021 to February 2023. In its 41st meeting conducted virtually on Thursday, 26 November 2020, the Council urged Kenya to share the modalities used in calculating the projected sugar deficit with other member states by 30 November 2020. In its decision, the Council urged Kenya to give priority to COMESA originating sugar noting that the region produces enough to meet the deficit.
Securing Africa’s Energy Future in the Wake of Covid-19 (Modern Diplomacy)
African ministers from countries making up 70% of Africa’s total primary energy supply, nearly 70% of its GDP and more than half of the continent’s entire population met with global energy leaders via videoconference on 24 November 2020. A revitalised energy sector is key to Africa’s economic transformation. Participants agreed on the urgent need to enhance actions to ensure sustainable economic recovery and significantly scale up energy investments in Africa over the next three years in the wake of Covid-19.
International
Kenyans prefer US development model despite China forays (Business Daily)
Over the past five years, China has pumped billions of shillings into Kenya’s mega infrastructure projects covering roads and rails. From the Sh31 billion Thika Road, the Sh327 billion Standard Gauge Railway to the ongoing Sh59 billion Nairobi Expressway, road and rail networks have expanded, traffic jams alleviated and commuting hours slashed. Despite the improvements, nearly five in every 10 Kenyans still prefer the US’s development model over China’s, a survey shows. “43 percent of Kenyans rank the US model as ideal followed by China (23 percent),” the Afrobarometer report shows. This comes at a time Washington’s is warning of rising China’s debt on poor countries. Zambia could be the first country on the continent to default on its foreign debt after it failed to pay more than Sh4.4 billion last month.
Africa poised to benefit from strong European backing in its recovery – Optimize Agency (Bizcommunity)
The Covid-19 global pandemic may result in 2020 seeing the worst year of growth for the global economy in 40 years, but there remains “huge untapped potential” in the trade relationship between Southern Africa and Europe. This was the overwhelmingly positive message from an upbeat seventh edition of the Southern Africa Europe CEO Dialogue, held, this year, in a hybrid physical and digital format in Johannesburg.
Ngozi Okonjo-Iweala offers WTO global and local experience (The Africa Report)
The global economy faces profound uncertainties, particularly in the face of the COVID-19 pandemic. In addition, faith in the efficacy of international bodies such as the World Trade Organisation (WTO) has been weakened by a power struggle between China and the US. As the process for appointing a new head of the organisation moves into its final phase, it’s worth considering what front runner Ngozi Okonjo-Iweala could bring to the complex role of managing an international organisation, including designing and implementing reforms.
African nations ‘far from ready’ for COVID-19 vaccination drive, says UN health agency (UN News)
Matshidiso Moeti, WHO Regional Director for Africa highlighted the importance of strong planning and preparation for successful inoculations –against COVID-19. “The largest immunization drive in Africa’s history is right around the corner, and African governments must urgently ramp up readiness. Planning and preparation will make or break this unprecedented endeavour,” she said. “We need active leadership and engagement from the highest levels of government with solid, comprehensive national coordination plans and systems put in place,” added Dr. Moeti.
NGO-Private Sector Partnerships Key to Achieving Impactful Development Goals – Experts (Capital Business)
Increased partnerships between non-governmental organizations and the private sector has been touted as the key to achieving more impactful development goals. This is according to the findings of a recently released report dubbed “Private Sector Partnerships for Sustainable Development: A Guide to NGO/CSO – Private Sector Collaboration in Kenya” by Finnish Development NGOs – Fingo. “Private sector partnerships provide NGOs/CSOs with an opportunity to drive social-economic interventions, improve approaches to solution creation and implementation and leverage on mutual strengths to accelerate impact,” the report notes.
WTO launches new edition of Handbook on the TRIPS Agreement
The WTO launched today (27 November) the second edition of “A Handbook on the WTO TRIPS Agreement”, which describes the historical and legal background to the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS), its role in the organization and its institutional framework. The publication coincides with the 25th anniversary of the entry into force of the Agreement.
Related News
tralac Daily News
National
‘80% of truck drivers are South African’ (IOL)
The National Bargaining Council for the Road Freight and Logistics Industry has said by far the majority of truck drivers in SA, who fall under their jurisdiction, are local citizens. The bargaining council reacted to comments made by the All Truck Drivers Foundation (ATDF), which claimed this week that about 80% of truck drivers employed by SA companies were foreign nationals.
SA revisits disaster management strategies amid COVID-19 (SAnews)
The COVID-19 pandemic has highlighted the need to strengthen government’s risk reduction strategies and disaster management frameworks, systems and personnel, says Minister Nkosazana Dlamini-Zuma. Strategies, she said, must also find tangible expression at provincial and national levels, and must have all stakeholders involved, “so that all of society can be active participants in prevention, avoidance and mitigation”.
Growth forecasts revised downwards as Covid batters economy (Lesotho Times)
Finance Minister Thabo Sophonea yesterday presented his mid-term budget review indicating that the Covid induced decline in economic activities such as diamond mining and textiles production had resulted in lower than anticipated revenue collection which would lead to a 14 percent decline in economic growth in the current fiscal year. “The pandemic is expected to have a negative impact on the balance of payments in 2020/21. The trade deficit will deteriorate reflecting a slowdown in exports. Although the income account will continue to register a surplus due to robust SACU receipts, remittances from mine workers will remain subdued,” Mr Sophonea said
Treasury Revises Kenya’s 2020 Economic Growth to 0.6pc (Capital Business)
Kenya’s economic growth for 2020 has now been revised downwards to 0.6 percent. Speaking during the public hearings on the financial year 2021/2022, Treasury Cabinet Secretary Ukur Yatani said the new projection has been influenced by the impact of the coronavirus pandemic on the global and domestic economy. “It is important for us to underscore that what happens in the global arena has major implications in the performance of our economy. The on-going COVID-19 pandemic and the associated economic crises are likely to deplete domestic public resources by affecting tax and non-tax revenues,” reads Yatani’s statement.
Food insecurity, overdependence on food imports pose challenge to agric sector — Nanono (Vanguard)
The Minister of Agriculture and Rural Development, Mohammed Sabo, Thursday, disclosed that food insecurity and overdependence on food imports currently pose challenges to the agricultural sector. According to him, his Ministry will work with key stakeholders to build an agribusiness economy capable of delivering sustained prosperity by meeting domestic food security goals.
A growth-centred Budget (The Herald)
Boosting production, getting infrastructure fixed and expanded, supporting the vulnerable and increasing the spending power of ordinary people are the main planks of the 2021 National Budget presented by Finance and Economic Development Minister Professor Mthuli Ncube yesterday. The 2021 National Budget comes in the context of a two-year slow-down and Covid-19 induced economic slow-down that will see the local economy sliding by -4,1 percent this year, but the new measures are expected to drive gross domestic product (GDP) growth next year to 7,4 percent.
Financial Year 2021: PM Dion Ngute Presents Government’s Priorities (Cameroon-Tribune)
“The COVID-19 pandemic has weakened our public finances, already strained by the economic and financial situation faced by States of the Central Africa Sub Region. Mindful of the situation, we have defined and are implementing a strategy for economic recovery to mitigate the effects of the health crisis…. At the national level, the budget balance deteriorated slightly due to the effects of COVID-19. It stood at -2.3%, against an initial target of 1.1%.”
CGEM: Mauritania to Ease Visa Requirements for Moroccan Entrepreneurs (Morocco World News)
The General Confederation of Moroccan Enterprises (CGEM) announced on Monday that Mauritania accepted to ease visa requirements for Moroccan entrepreneurs and companies. CGEM said that companies affiliated to the federation can obtain multi-entry business visas to Mauritania. Data from Tralac shows that Mauritania’s international exports rose by 6% between 2017 and 2018. The website said that Mauritania mainly trades with Morocco. The trade between the two countries accounts for 31% of Mauritania’s total exports and imports.
Oil production increment good for revenue generation - Barimah (Ghanaweb)
Paul Apraku Twum Barimah, the Aspiring Member of Parliament for Dormaa East, says the recent Fitch report on expected oil production of Ghana next year will strengthen the confidence of investors in the industry. The report said Ghana’s oil production was expected to increase by two per
Senegal joins World Logistics Passport as hub for Africa (Trade Arabia)
Senegal is to boost its position as a trade hub for Africa by joining the World Logistics Passport, a major initiative by Dubai to link nations around the world and increase South-South trade. The World Logistics Passport has been created to overcome trade impediments, such as logistics inefficiency, that currently limit the growth of trade between developing markets. South-South trade is already worth an estimated $4.28 trillion annually, more than half of total developing countries exports in 2018, according to the WTO.
Africa
AfCFTA a Vehicle to Lift African Citizens Out of Years and Depths of Poverty (Department of Trade, Industry and Competition)
The African Continental Free Trade Agreement (AfCFTA) provides a great opportunity for African countries to lift citizens of the continent out of poverty. This is according to the Chief Director of Trade and Invest Africa at the Department of Trade, Industry and Competition (the dtic) (TIA), Mr John Rocha. He was speaking on the first day of a two-day South Africa-Ethiopia Trade and Investment Webinar. The event is held as part of efforts to increase bilateral trade and investment between South Africa and Ethiopia.
Why Tanzania should not fear AfCFTA (The Citizen)
“Tanzania is expected to experience a larger tariff revenue loss, equivalent to 1.3 percent of total government revenue but our estimates also indicate that it is one of the countries which will benefit most from the AfCFTA, through higher levels of trade and economic activity,” said ECA director for the Eastern Africa sub-region office Mama Keita who spoke during the online meeting yesterday. “The revenue losses in cases like this may well be considered by policymakers a price worth paying for the added dynamism of the domestic economy – which overtime will, in itself, lead to higher government revenues through VAT and other taxes,” she added.
How Nigerian businesses can benefit from Africa Free Trade Treaty — Osinbajo (Vanguard)
Just as the Africa Continental Free Trade Area (AfCFTA) treaty comes into force in January 2021, Nigerian businesses and the entire private sector have to become conversant and knowledgeable with the rules as this would be required so as to benefit maximally from the treaty. Prof. Osinbajo stated this Thursday at the opening session of the 52nd Annual National Conference of the Chartered Institute of Personnel Management (CIPM). According to him, “it is imperative for Nigerian businesses to also familiarize themselves with AfCFTA rules because they will have to assist in providing the evidence to trigger action on trade remedies by government.”
Industry experts meeting this week for a virtual discussion focused on resetting, retooling and restarting regional integration in Africa in the wake of the COVID-19 pandemic, underscored the importance of putting small scale traders at the heart of any initiatives. "AfCFTA creates a new trade and integration reality... integrating unequal partners across the continent," said Trudi Hartzenberg Executive Director of the Trade Law Center (TRALAC). Trade facilitation enjoys specific focus within the AfCFTA, with digital, e-payments, and e-commerce particularly important, she added, citing a 2020 WTO report that emphasized education and healthcare as fundamental to industrialization.
Tema Port ranked the largest port in West, Central Africa (Ghanaweb)
The President of Ports Management Association of West and Central Africa (PMAWCA) and the Director-General of Ghana’s Ports and Harbours Authority, Michael Luguje has revealed that with the completion of phase 1 of the MPS Terminal 3, the Tema Port is currently the biggest in terms of capacity of all ports in the West and Central Africa. “If you look at single terminal volumes that are handled, we were able to do 1 million TEUs at the close of 2018 and 2019. Barring COVID-19, our target was to cross the 1 million mark,” the DG asserted.
Ports: six key recommendations for Africa’s growth (The Africa CEO Forum)
The AFRICA CEO FORUM and the strategy consulting and financial advisory firm Okan is publishing their report on the African logistics sector. This year’s edition, entitled “Africa’s ports: fast-tracking transformation”, gives an overview of the sector’s strengths and weaknesses while providing a list of six recommendations that have the power to turn Africa’s hubs into global giants. The Covid crisis has led to significant upheaval in the transport and logistics sectors. One of the most major impacts is no doubt the decline in trade flows, taking the form of a 30% to 40% decrease in traffic for certain African ports.
Uganda-Tanzania pipeline runs into legal challenges (Daily Monitor)
Four non-governmental organisations have moved to the East African Court of Justice to block the construction of the East African Crude Oil Pipeline (EACOP) by Uganda and Tanzania. The NGOs are now seeking a permanent injunction against Uganda, Tanzania and the EAC, whom they have sued, from constructing the pipeline through protected areas, among other orders. The pipeline will transport crude oil from Hoima district in Uganda to Chongoleani in Tanga, Tanzania.
Truckers trapped in ‘60km-long’ queues at Kenyan border (Business LIVE)
The queue of lorries snakes down the narrow tarmac road, stretching back as far as the eye can see on both sides of a sign that reads: “Welcome to Busia, the gateway to east and central Africa”. Before Covid-19, Kenyan driver Joseph Kimani used to expect a five-hour wait to cross from there into Uganda with his cargo of diesel. Now the queue on the Kenyan side, which he and other drivers say extends for upwards of 60km, take five days to clear and, for them, life on the road has become literally that
Supporting farmer organisations to access regional markets (Daily Monitor)
Limited access to reliable markets is one of the constraints limiting commercialisation of agriculture among smallholder farmers. Without ready markets, smallholder farmers are unable to earn decent incomes from their production, and this limits their level of investment in agriculture in subsequent seasons. Mr Patrick Muganga blames the limited access to markets by farmers on limited market research and end market engagement by farmers and other value chain actors, resulting in the mismatch between market requirements and what is supplied.
New Market Realities for 2021 Expected to Drive Revisions of Fiscal Terms to Improve Competitiveness (African Energy Chamber)
Without bold fiscal reforms, Africa is doomed to further loose its global market share of oil & gas investment and production. This is a major takeaway, if not the most important takeaway, from the Africa Energy Outlook 2021 released this month by the African Energy Chamber. As oil prices settle around the $60/bbl threshold in a few years, the end of the super-profit era is over and adopting competitive fiscal frameworks will become increasingly central to maintaining investment in the sector. Across the continent, major projects are unlikely to be sanctioned because of challenging market dynamics, but especially because of uncompetitive fiscal regimes.
Chairs' Summary for the AUC-IEA Second Ministerial Forum (IEA)
African ministers from countries making up 70% of Africa’s total primary energy supply, nearly 70% of its GDP and more than half of the continent’s entire population met with global energy leaders via videoconference on 24 November 2020. A revitalised energy sector is key to Africa’s economic transformation. African countries must engage in robust, innovative actions to strengthen energy security, scale up infrastructure investment, and promote the growth of the green economy, making use of all available opportunities to continually accelerate Africa’s clean energy transitions. These interventions can be bolstered by enhanced rates of internal trade in Africa, including in the energy sector, through a speedy implementation of the African Continental Free Trade Area.
SADC and ICPs convene ground-breaking virtual dialogue (SADC)
The Southern African Development Community (SADC) and the International Cooperating Partners (ICPs) have risen above COVID-19 circumstances and demonstrated attributes of true indomitable partnership. The SADC-ICP Dialogue Platform meetings are a key enabler in facilitating critical conversations with ICPs and create a common understanding regarding joint considerations and approaches for the implementation of the region's strategies and priorities. H.E Dr Tax highlighted that the SADC region remains vulnerable to the impact of COVID-19 and commended Member States for the swift and decisive response measures and adherence to safety protocols.
International
Africa Looks to China, Russia to Boost Scant Vaccine Supplies (Bloomberg)
The Africa Centres for Disease Control and Prevention and the African Union have discussed Covid-19 vaccine trial partnerships with both China and Russia, part of an effort to ensure Africa is not last in the queue for vaccines when they become available. “We are not limiting ourselves to any particular partner,” John Nkengasong, head of Africa CDC, said Tuesday at the Bloomberg Invest Africa online conference. “As a continent of 1.2 billion people, we are willing to work with any partner who adheres to our strategy plan for vaccine development and access in Africa.”
Four key priorities for revisiting LDC vulnerabilities (Trade 4 Dev News)
Despite commendable progress implementing the Istanbul Programme of Action (IPOA) for Least Developed Countries (LDCs), structural vulnerabilities in LDCs continue to exist and warrant urgent attention. Many LDCs have limited productive capabilities, rely heavily on exports of a narrow range of primary commodities, and face high and unstainable debt levels. Pressing challenges related to climate change and the health and economic crises created by the COVID-19 pandemic are exacerbating these vulnerabilities. COVID-19 threatens to stall, or even reverse, the economic transformation gains already achieved by LDCs and stifle the prospects of countries looking to graduate out of the LDC category.
Why Africa’s small-scale fisheries “may not count” (SeafoodSource)
Despite the huge potential of Africa’s small-scale fisheries to boost the region’s food security, ramp up nutritional levels, alleviate poverty, and enhance environmental conservation, decision-makers across the continent have given the sector little attention – largely because of inadequate data to support its potential role in sustainable development. John Virdin, the director of the Ocean and Coastal Policy Program at Duke University’s Nicholas Institute for Environmental Policy Solutions, is hoping to change the perception of Africa's small-scale fisheries as part of a continuing partnership with the United Nations' Food and Agriculture Organization.
Keeping the Global Focus on Low-Income Countries | by Kristalina Georgieva & Sigrid Kaag (Project Syndicate)
Owing to the COVID-19 pandemic, the global economy is suffering its sharpest decline since the Great Depression. But while everybody is hurting, it is the world’s poorest countries that will pay the highest price unless they receive more help. Some 1.5 billion people live in low-income developing countries, struggling to overcome weak public health systems, limited institutional capacity, and, in many cases, high debt levels. All these countries entered the crisis with a limited capability to fight it. They faced a dramatic increase in spending needs just when the pandemic caused a decline in revenues from tourism, remittances, and commodity prices. While actions to protect advanced-economy businesses and workers amounted to some 20% of GDP, this support in low-income countries was only about 2%
Covid vaccine: TRIPs waiver patently needed (@businessline)
Last week, the announcement by Pfizer and its collaboration partner BioNT about their potential Covid-19 vaccine candidate showing an improved efficacy of more than 90 per cent in its Phase III, late-stage, study hit the headlines globally. Following this, Pfizer CEO Albert Bourla said they are close to a much-needed breakthrough to the world. But many of the developing and least developed countries are now concerned on how a fair distribution of the vaccine can be ensured. The concern on the fair distribution of the vaccine is now focussed on the decisions to be made by the WTO.
DDG Agah at ITC Joint Advisory Group: Open trade and economic inclusion key to post-COVID recovery (WTO)
Global trade has, thus far, held up better than many had expected, though WTO economists still expect merchandise trade to shrink by 9% this year. Fiscal and monetary support have helped prop up demand, and the scope of new trade restrictions has been relatively modest. Many of the export controls on food and medical supplies introduced early in the pandemic have been rolled back. Governments have cooperated with the WTO’s monitoring efforts.
The task facing us is two-fold. First, we must keep international markets broadly open, and continue the process of reforming the WTO and the global trade rulebook to respond to new commercial realities. And second, we must ensure that the benefits from trade, and from economic activity in general, are widely shared.
What the end of the UK-EU transition period means to UK-SA trade (Engineering News)
With effect from January 1 this year, the UK left the European Union (EU). But that day also inaugurated the start of a transition period, during which the UK remained part of the EU customs union and single market. That transition period ends on December 31 and thereafter the UK is free to implement its own trade deals with countries and blocs around the world. To date, the UK has signed, or agreed in principle, trade agreements with six African partner countries or groups. These are Côte d’Ivoire (signed), the Eastern and Southern Africa trade bloc (Madagascar, Mauritius, Seychelles and Zimbabwe – signed), Kenya (agreement in principle), Morocco (signed), the Southern Africa Customs Union plus Mozambique (SACU+M – signed) and Tunisia (signed). The agreement with SACU+M was one of the earliest that Britain negotiated with its international trading partners, being concluded more than a year ago.
Closer Africa-Europe Collaboration Needed to Deliver Food and Nutrition Security Roadmap, Says Leading Research Body (East African Business Week)
Africa’s apex organization for coordinating and advocating for agricultural research and innovation has called on more African and European countries to prioritize investment in science, technology and innovation for agriculture on the continent. The Forum for Agricultural Research in Africa (FARA) updated partners on a joint initiative between the European Union and the African Union to promote sustainable agriculture during its General Assembly this week. FARA also called on the agricultural research for development sector on the continent to unite and implement a roadmap for food and nutrition security.
Ngozi Okonjo-Iweala: how global and local experience would play out in WTO top job (The Conversation)
The global economy faces profound uncertainties, particularly in the face of the COVID-19 pandemic. In addition, faith in the efficacy of international bodies such as the World Trade Organisation (WTO) has been weakened by a power struggle between China and the US. As the process for appointing a new head of the organisation moves into its final phase, it’s worth considering what front runner Ngozi Okonjo-Iweala could bring to the complex role of managing an international organisation, including designing and implementing reforms.
Related News
tralac Daily News
National
SARB warns rising public debt ‘will severely impact financial sector’ (The South African)
According to the South African Reserve Bank (SARB), National Treasury’s October Medium Term Budget Policy Statement (MTBPS) projections – which indicate that public debt is expected to reach 82% of GDP in the current fiscal year, and rise to 95% in 2026 – will have dire implications on the country’s financial sector. In a financial stability review report on Tuesday, the SARB outlined the potential consequences and said that the sharp rise in debt could place the country in a precarious position.
How values, interests and power must shape South Africa’s foreign policy (The Conversation)
The COVID-19 crisis is one of many indicators that we live in dangerous and uncertain times. Others include the international community’s struggle to respond to technological and climate change, demographic shifts, growing poverty and inequality as well as increased global insecurity. The global governance arrangements for managing these changes are no longer fit for purpose. These changes are pushing countries to reassess how they use foreign policy to serve their national interests.
Africa’s economic giant Nigeria at a ‘critical juncture’ (Eyewitness News)
More than 200 million Nigerians will slide further into poverty as the coronavirus pandemic has sent oil prices tumbling and pushed Africa’s largest economy into recession. To many in oil-rich Nigeria, Saturday’s announcement of a recession was no surprise – even the president had warned a downturn was coming. The number of poor Nigerians was expected to increase by about two million largely due to population growth, according to the World Bank, but with the pandemic, the number could increase by 7 million.
COVID-19 Erodes Progress in Poverty Reduction in Kenya, Increases Number of Poor Citizens (World Bank)
The economic and social disruptions induced by the COVID-19 pandemic have eroded progress in poverty reduction in Kenya, forcing an estimated two million more Kenyans into poverty. Using data to track the impact of the crisis on firms and households, the 22nd edition of the Kenya Economic Update, Navigating the Pandemic, finds that the pandemic and measures to mitigate the spread of the virus are creating multiple challenges for Kenya’s private sector, with severe consequences for household jobs and incomes.
Diaspora inflows increase Sh30bn in first 10 months (Business Daily)
Cash sent home by Kenyans living abroad grew by Sh29.97 billion in the 10 months to October, compared to a similar period of last year, despite pressure from the economic knocks of the Covid-19 pandemic. The Central Bank of Kenya (CBK) data shows that the remittances amounted to $2.54 billion (Sh268.63 billion) in the first 10 months of this year, compared to $2.34 billion (Sh238.66 billion) in the same period in 2019 – a nine per cent growth.
Sugar companies want parliament to intervene on deteriorating market (The Independent)
Sugar companies from Busoga sub-region are seeking Parliament’s intervention in the fight against ‘unfair’ competition from ‘sugar bonds’ which has frustrated local manufacturers. While meeting Speaker Rebecca Kadaga today, the managing directors of sugar companies revealed that sugar bonds which were earlier banned by President Yoweri Kaguta Museveni are still operating. Kadaga who said she was not aware of the illegal sugar trade, said Parliament has debated on the poor trade relations with neighboring countries and tasked the Minister of East African Community Affairs to address them at the regional level
Zimbabwe targets US$8bn industrial and commercial sector (The Chronicle)
Zimbabwe has set a target of achieving a US$8 billion Industrial and Commercial Sector by 2023 with Cabinet approving the ambitious roadmap on Tuesday. The growth of the industrial and commercial sector would be boosted by a number of investments scheduled for implementation under the roadmap, since it is private-public-sector-led. “The Roadmap outlines the plan to raise the manufacturing and commercial sector contribution to GDP from the current US$7,16 billion to US$8,03 billion by 2023, through the sector’s diversified 94 sub-sectors,” Environment, Climate, Tourism and Hospitality Minister, Mangaliso Ndlovu said in a post-Cabinet media briefing.
Africa
AfCFTA Secretariat rolls out ‘vision’ initiative backed by ‘super-app’ (Ghanaweb)
With barely two weeks left to the Extraordinary Summit of African Union Heads of State on 5th December, 2020, ahead of the expected start of trading under AfCFTA on 1st January 2021, the AfCFTA Secretariat is pleased to announce AfCFTA Vision, an Initiative in partnership with the Sankoree Institute, an affiliate of AfroChampions. In addition to building a community of visionaries (the “AfCFTA Visioneers”) and creating a platform for knowledge creation and sharing to help accelerate the pace of implementation of AfCFTA, a major component of the Initiative is a suite of apps (or, collectively, a “super-app”) that shall serve as the base for a continental business registry, trade directory, cross-border trade facilitation network, and a dashboard for the private sector to interact with the upcoming Africa Trade Observatory.
AfCFTA: African Finance Ministers to discuss payments system for trade bloc (Nairametrics)
The African Union has announced that its Specialised Committee on Finance, Monetary Affairs, Economic Planning and Integration will discuss the launch of a payment system for the African Continental Free Trade Area (AfCFTA) from the 1st to the 3rd of December. The African Union disclosed this on Tuesday evening, the meeting will be 2 days before the planned deadline on the ratification of the agreement.
Experts decry lack of hubs, trade facilitation to support AfCFTA (National Accord)
Mrs Dabney Shallholma, Chairperson, Sealink Promotional Shipping Company, on Tuesday decried the lack of hubs and trade facilitation to support the African Continental Free Trade Area (AfCFTA). Shallholma spoke on the topic, ‘Hindrances to Maritime Transport, Intervention and Mitigation Actions to Unlock them’. “Hubs are international gateway that have a direct impact on the port, facilitate traffic along corridors, and it takes time to plan and develop. We are here today discussing on how to have trade facilitation and creation of hubs when we do not have such at home,” she said.
Nigeria to benefit as AfDB invests $25bn in African countries (TheCable)
The African Development Bank Group (AfDB) has approved the investment of $25 billion to develop agriculture in African countries. Akinwumi Adesina, AfDB’s president, disclosed this at the virtual conference to mark the 10th anniversary of Sahel Group, a private equity firm focused on agribusiness. He said the fund would be shared among African countries. Adesina said the fund provided to Nigeria will help the country transform from a net fertilizer importing country to a fertilizer exporting nation.
A policy paper to the Secretary General of AfCFTA (Ghanaweb)
Africa’s demographic distribution, abundance of natural resources, stable political and peaceful democratic transitions, and the potentials of AfCFTA serve as spokes and hub for the progress of the continent as has not been witnessed before. There are many policy interventions to consider because as has been demonstrated in this paper so far, the AfCFTA platform has the potential to raise productivity levels, promote higher investments, improve income levels, and reduce poverty on the continent. These positives must benefit the youth of Africa now.
AWIEF2020 Virtual Conference adds Prestigious Keynote Speakers
COVID-19 has disproportionately affected women in business, amplifying concerns about gender inequality and the financial inclusion of women in Africa. On the positive side, the pandemic has accelerated progress in digital transformation and the expansion of the digital economy in Africa, which will continue to grow across sectors such as agriculture, education, healthcare, e-commerce and ICT.
This year’s Africa Women Innovation and Entrepreneurship Forum (AWIEF) is themed ‘Reimagining Business and Rebuilding Better’ and will be held on 2-3 December 2020. African Continental Free Trade Area (AfCFTA) Secretary-General, H.E. Mene, will also speak on Day 1, addressing the crucial role of AfCFTA in rebuilding the continent post-pandemic. This year’s event MC will be popular broadcaster and SABC TV presenter, Leanne Manas
Inside Africa’s new plan to tap power of e-commerce (Business Daily)
Africa’s dream of thriving e-commerce is taking shape following the rollout of an online trade platform. The initiative, launched on Monday, is part of the continent’s plan to accelerate its move towards plugging into, and reaping the rewards of, the global digital economy. Innovators and businesses across the continent will now enjoy a one-stop platform from the African Continental Free Trade Area (AfCFTA), which eliminates hurdles in cross-border transactions while also reducing tariffs on 90 percent of all goods traded.
Africa considers merging national carriers to boost aviation (Business Daily)
Some African countries are deliberating on merging their national carriers to take advantage of economies of scale and make them competitive in the global market. The talks also include eliminating visa fees within the continent, simplifying immigration rules, improving air connectivity infrastructure and making airport charges affordable within Africa’s 54 countries.
New report reveals how Covid-19 has affected Eastern Africa (UNECA)
When the Covid-19 pandemic sent the global economy into a recession, the East Africa region was not spared. According to UN Economic Commission for Africa’s Economic and Social Impacts of Covid-19 in Eastern Africa report, the region’s labour market has been the worst hit on the continent, with an estimated 38 million jobs lost. Presenting the report during the 24th Meeting of the Intergovernmental Committee, Ms Mama Keita, head of ECA in Eastern Africa, said that the region will barely grow in 2020 with only four countries on track to experience positive growth in 2020.
East African Community and Germany agree to continue and deepen longstanding partnership
On the 23rd/24th of November, the EAC Secretariat and the Government of the Federal Republic of Germany successfully concluded their Government negotiations on development cooperation at the EAC Secretariat’s headquarter in Arusha, Tanzania. In total, Germany committed up to 42.9 Euros for the next two years. “We could build on the foundations that had been laid long before the COVID-19 pandemic struck – testing capacities could be made available quickly and cross-border cooperation created leverage in containing its further spread. Investments in human capital and laboratory equipment will continue in order to keep the regional level of preparedness high,” said Marcus von Essen.
The 41st COMESA Council of Ministers Meeting gets Underway
The 41st COMESA Council of Ministers meeting began this morning under the theme “COMESA – Towards Digital Economic Integration”. The core business of the two-day meeting is to make decisions on the implementation of COMESA programmes and the administrative and budget matters for the regional bloc for the next one year.
COMESA: Egypt acquired 32 percent of investments in COMESA members states during 1st half of 2020 (EgyptToday)
Egypt has acquired 32 percent of the number of investment projects which have been carried out at the COMESA member states since the beginning of the year and till July 2020, according to a recent report issued by COMESA. Around 100 projects of foreign direct investments (FDI) have been implemented during the period of January till July, 2020, compared with 228 projects during the same period of the previous year, recording a decrease of 56.14 percent due to the impact of the coronavirus pandemic.
The United Nations Economic Commission for Africa (UNECA) Sub-Regional Office for West Africa, in partnership with the Government of the Federal Republic of Nigeria, today virtually launched the proceedings of a meeting of West African Think Tanks and experts. In view of the many challenges associated with demographic dynamics in West Africa, aggravated by the adverse effects of the Covid-19 crisis, the achievement of the 2030 Agenda for Sustainable Development and the 2063 Agenda for Africa’s future aspirations will require a better understanding of the region’s demographic transformations and the policies that are critical to achieving the demographic dividend.
The Republic of Seychelles ratifies the Treaty for the establishment of the African Medicines Agency (AMA) (Africanews)
The Republic of Seychelles becomes the fourth AU member states to ratify the Treaty for the establishment of the African Medicines Agency (AMA) and deposited the instrument of accession to the Chairperson of the Commission of the African Union on 23rd November 2020 in Addis Ababa, Ethiopia. The African Medicines Agency will enter into force once ratified by fifteen African Union Member States. The AMA will serve as the continental regulatory body that will provide regulatory leadership, to ensure that there are harmonized and strengthened regulatory systems, which govern the regulation of medicines and medical products on the African continent.
Strengthening Rural Decent Jobs in Africa (AUDA-NEPAD)
Africa may not reach its transformation goals as defined in Agenda 2063, without fully harnessing the demographic dividend through Investments in Youth. While youths currently constitute approximately 40% of the working age population, over 60% of them are unemployed. However, Africa has policies and programmes to tackle unemployment amongst the youths, but the different policies at both continental and national levels do not adequately address the challenges of the rural youths in a holistic and coherent manner.
Ministers from African countries representing nearly three-quarters of the continent’s energy consumption and more than half of its population met with global energy leaders today to consider how to revitalise the African energy sector and enable a sustainable economic recovery after the pandemic. Under the theme of Securing Africa’s Energy Future in the Wake of Covid-19, the Second AUC-IEA Ministerial Forum was chaired by Dr Fatih Birol, Executive Director of the IEA, Dr Amani Abou-Zeid, African Union Commissioner for Infrastructure and Energy, and Mr Gwede Mantashe, Minister of Mineral Resources and Energy of South Africa.
Regional resource Hub for protected areas and biodiversity launched (CGTN)
During an online event, the International Union for Conservation of Nature-IUCN, the Regional Centre for Mapping of Resources for Development-RCMRD, and partners on Tuesday officially launched the Regional Resource Hub and one of its flagship knowledge products, the most comprehensive analysis on the state of protected areas in Eastern and Southern Africa. “The establishment of this Resource Hub is a great milestone as it will facilitate the provision of relevant information and data to support policies and effective decision-making on protected and conserved areas which are our invaluable natural heritage,” said Luther Bois Anukur, Regional Director, IUCN Eastern and Southern Africa Regional Office.
REIPPPP lessons: To build localisation, embrace importation benefits (ESI-Africa.com)
The South African renewable energy independent power producer procurement programme (REIPPPP) has contributed vastly to the country’s economic growth since its launch almost a decade ago. Though some of the REIPPPP requirements promote localisation to boost the growth of the renewable energy sector, it is importation that has largely dominated the industry. This factor has opened room for the industry experts to talk about how the updated Integrated Resource Plan (IRP), a policy document, can better address sustainable localisation.
International
WTO boss: Coast clear for Okonjo-Iweala as South Korea withdraws candidate – Report (Vanguard)
South Korea has decided to withdraw its candidate from the World Trade Organisation, WTO, director-general race, according to Washington Trade Daily. Yoo Myung-hee is South Korea’s Trade Minister and its candidate for the top job at the WTO following the resignation of Roberto Azevedo. Ngozi Okonjo-Iweala, Nigeria’s candidate in the WTO race, had secured the popular vote by a wide margin on October 28 but was not named DG because the US opposed her candidacy.
China may scale back investment in Africa, says new report (The Africa Report)
In the coming decade, China is expected to consume less raw materials and be more selective in its foreign lending and investment activities. In a report published on 10 November, the German insurer Allianz and its credit insurance subsidiary Euler Hermes revealed a disturbing finding: over the coming decade, China may no longer be able to provide Africa with the same amount of funding, taking the form of loans, investment and trade, as in the past. China has a heavy debt burden.
China’s resource-for-infrastructure deals (The Mail & Guardian)
Through the use of resource-financed-infrastructure (RFI) agreements, China is playing an ever-greater role in financing industrial and trade-related infrastructure projects in Africa. The RFI model is a financing mechanism whereby a government promises future revenues from a resource extraction project to repay a loan used to fund its infrastructure construction. China uses RFI deals to reach agreements with African nations that are dependent on commodities and eager to secure low-interest loans for infrastructure development.
China-Nigeria trade at $13.66bn in 2020 is largest in Africa (Vanguard)
The Chinese Embassy in Nigeria says China-Nigeria trade relations is the largest in the continent with an increase of 0.7 percent at $13.66 billion in 2020 over the previous year. “China’s exports to Nigeria were $11.58 billion, decreased by 2.4 per cent; imports from Nigeria were $2.09 billion, a year-on-year increase of 22.7 per cent,” spokesperson of Zhao Yong, Chargé d’affaires of the Embassy of China in Nigeria said. “To China, Nigeria has remained the biggest importer and second largest trading partner in Africa. Our bilateral trade volume is more than tenth of China’s trade with the whole continent.”
Why US Companies are Investing in Africa (BORGEN)
Within the next 10 years, consumer spending in Africa is expected to reach 2.5 trillion U.S. dollars. In fact, over 20% of this spending will occur in Sub-Saharan Africa. The continent is also experiencing mass urbanization. Therefore, Africa has the potential to become the next big international market and source of investment. Although, international companies often avoid investing in Africa due to reports of corruption, unsafe business environments and poor government policies. Several organizations and government initiatives have now implemented strategies to eliminate these concerns, reduce poverty and promote investments, which is why U.S. companies are investing in Africa.
Regional trade will drive next phase of globalisation (Khaleej Times)
The coronavirus continues to redefine how the world stays connected and has triggered an existential moment for free trade and globalisation. In turn, pressure has mounted on governments and businesses alike to nationalise supply chains, nearshore operations, and set their sights on shorter, nimbler supply chains that don’t depend on trade flows with too few countries, too far away. But while the trajectory towards globalisation has certainly shifted in the wake of Covid-19, world trade isn’t fracturing into isolationist deadlock as many feared at the beginning of the pandemic. Instead, the world trade puzzle is being re-arranged into huge regional pieces that will determine new trade gravities, from the EU and other countries in Europe with which it trades, to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and much speculated African Continental Free Trade Area.
How a Collective Infrastructure Push Will Boost Global Growth (IMF Blog)
With vaccines around the corner, there is increased hope that the pandemic could soon be under better control. That said, the need for cooperative efforts to work toward a better future has never been greater. An IMF report published ahead of the G20 leaders meeting argues that a synchronized infrastructure investment push could invigorate growth, limit scarring, and address climate goals. In fact, when many countries act at the same time, public infrastructure investment could help lift growth domestically and abroad through trade linkages.
For Most African Carriers, Next Year Will Be Precarious (Aviation Week Network)
All regions face a steep uphill climb from the COVID-19 crisis, but the starting point for African carriers is much further down the mountain. Most were loss-making before the pandemic and are ill-equipped for the tough journey that will continue through 2021. African airlines carry just 2.1% of world airline traffic. The high level of connectivity that other continents lost to COVID did not exist in Africa to begin with. IATA figures show African traffic was down 90.1% in August, causing load factors to fall 41 points to just 34.6%, the lowest of any region.
The State of Tax Justice 2020 (Tax Justice Network)
The State of Tax Justice 2020, a first-of-its-kind annual report by the Tax Justice Network, reveals for how much tax each country in the world loses to international corporate tax abuse and private tax evasion. While there have been estimates in the past about the tax lost globally to tax abuse, it has been difficult to determine how much each country loses individually – until now.
Fresh kick-off for agri-food systems transformation (FAO)
Global leaders called today for an urgent action to transform agri-food systems to make them more sustainable and resilient in the face of COVID-19 pandemic and other crises, and ensure that everyone has access to affordable, healthy and nutritious food. “The resources – intellectual, financial and material – are not lacking, but unless we are well-organized and coordinated, the probability is that we will be too late and too ineffective for too many people in the Least Developed Countries, the Land-Locked Developing Countries and the Small Island Developing States”, FAO Director-General QU Dongyu noted. He singled out three critical drivers.
EIF launches virtual campaign to help ramp up trade in least-developed countries (WTO)
The Enhanced Integrated Framework (EIF) launched a digital campaign in October aimed at encouraging businesses in least-developed countries (LDCs) to share how the COVID-19 pandemic is affecting their participation in global value chains. Twelve businesses from 12 LDCs have shared their experiences so far.
Policy Brief: WTO Members Mull Easing Restrictions on Humanitarian Food Aid (IISD)
Negotiators at the World Trade Organization (WTO) are considering a proposal from Singapore that would ensure humanitarian food aid is exempt from export prohibitions and restrictions, ahead of the trade body’s General Council meeting on 16 December. Proponents say the move will make it faster and easier for the World Food Program (WFP) to provide urgently-needed assistance to save the lives of people in crisis situations – and ensure that trade rules support progress towards SDG 2, which commits governments to ending hunger and malnutrition.
‘Infodemic’ risks jeopardising COVID-19 vaccines (Eyewitness News)
Beyond logistics, governments must also contend with scepticism over vaccines developed with record speed at a time when social media has been both a tool for information and falsehood about the virus. “The coronavirus disease is the first pandemic in history in which technology and social media are being used on a massive scale to keep people safe, informed, productive, and connected,” the WHO said. “At the same time, the technology we rely on to keep connected and informed is enabling and amplifying an infodemic that continues to undermine the global response and jeopardises measures to control the pandemic.”
UNCTAD Offers Trade Policy Solutions to Aid Inclusive Recovery in Vulnerable Countries (IISD)
A report by the UN Conference on Trade and Development (UNCTAD) warns that, despite growing confidence that the end of the COVID-19 pandemic is near, the economic fallout will continue. The report projects that the global economy will contract by 4.3% in 2020. The report titled, ‘Impact of the Pandemic on Trade and Development,’ underscores that COVID-19 has hit vulnerable populations and sectors hardest, and that economic and social impacts have been felt most severely in structurally weak developing countries, with those in Africa, least developed countries (LDCs), and small island developing States (SIDS) grappling with the most drastic impacts.
Related News
tralac Daily News
National
South Africa’s refinery woes raise reliance on fuel imports (BusinessTech)
South Africa, which buys nearly a third of its fuel requirements from overseas, is undergoing a surge in imports with the refining industry walloped by the coronavirus and anticipated clean-fuel regulations. Africa’s most industrialized nation imported 135,000 barrels a day of clean fuels last year, and shipments are expected to rise 16% in 2020, according to energy consultant Citac. The South African Petroleum Industry Association is in talks with the government about challenges “such as demand destruction due to the Covid-19 pandemic, pressure to decarbonize and low refinery margins.”
Ghana records $1.7bn trade surplus in 10 months (MyJoyOnline)
According to the Summary of Economic and Financial Data by the Bank of Ghana, the nation recorded $1.7 billion dollars trade surplus, about 2.6% of Gross Domestic Product in October 2020. The trade surplus is bigger than what was achieved during the same period last year and could even grow larger this year, exceeding the $2.2 billion dollars registered. This comes despite the impact of covid-19 on the economy. But diversified exports appear to have been doing the trick for the nation as the economy has benefited immensely from escalating gold prices from the international market.
Food prices rise dramatically in October (New Era Live)
Food and non-alcoholic beverages recorded the highest annual inflation rate in 2020 with 7.1% recorded in October 2020 compared to 4% registered at the same time last year, according to the latest Namibia Consumer Price Index (NCPI) from the Namibia Statistics Agency (NSA). This substantial increase emanated mainly from price increases in meat from 1.9% to 9.3%, fish from 2.5% to 8.5%, oils and fats from 0.6% to 7.1%, sugar, jam, honey, syrups, chocolates, and confectionery from 0.7% to 6.6%.
Export diversification hedge against shocks, stabilise revenue (Tanzania Daily News)
Tanzania has been among the countries benefitting from export diversification that help hedge against adverse terms of trade shocks by stabilising export revenues and the negative impact of terms of trade in primary products. According to the Export diversification in African countries, 2018 report, Tanzania is one of the sixth African countries with highest export diversification that reflects the concerted efforts put by the government recently in driving up industrial sector.
New Vision 2030 chief tweaks strategy to deliver on projects (Nation)
With 10 years left to deliver the vision, which retired President Kibaki designed back in 2008 against tightening budgets and huge debt, the government is changing tact in seeking to deliver Vision 2030 projects. Newly appointed Vision 2030 Director General Isaac Mwige says they are making short-term plans with measurable outcomes and finding ways to ensure changes in the political scene do not affect the homestretch for delivering on the flagship initiatives.
Investment, regional co-operation top Magufuli’s new goals (The East African)
The Tanzania Investment Centre (TIC) will now be under the Office of the President to ensure efficiency, as President John Magufuli focuses on investment and regional co-operation in his second term. It was previously under the Office of the Prime Minister. In his inaugural address to parliament in Dodoma on Friday, President Magufuli said his priorities are to attract foreign and local investments with a focus on industrial, agriculture, tourism, livestock and fishing development.
Budget deficit, rising debt bad for Kenya – experts (The Star)
Kenya must address budget gaps, resource utilisation and the rising debt, financial experts have cautioned. The Institute of Public Finance (IPFK) and the International Budget Partnership Kenya (IBPK) say the country’s budget continues to experience deficits forcing the government to continue borrowing heavily. Kenya’s public debt currently stands at a new high of Sh7 trillion. This year is projected to be worse on the effects of Covid-19 on the economy.
‘Devolution agenda success requires collective effort’ (The Chronicle)
Addressing heads of Government departments during a Provincial Development Committee (PDC) meeting recently, Ms Lathiso Dlamini said: “I urge all Ministries to come up with plans on how to further the devolution agenda. While we are waiting to be fully devolved there is a lot that we can be doing and there are a number of strategies that we can put in place to ensure the success of the devolution programme,” she said.
Growth of apparel exports vindicates Rwanda on second-hand clothes (The New Times)
In 2015, the East African Community (EAC) partner states agreed to increase tariffs on second-hand garments to help grow the region’s textile and garment industry. Three years later, only Rwanda implemented the agreement, while the other partner states withdrew from the plan succumbing to pressure from Donald Trump’s America. Rwanda would soon pay the price when it was removed from the list of countries that accessed duty-free apparel market in the United States through the African Growth and Opportunity Act (AGOA) framework.
Manufacturers says no to UNBS’ plan to introduce digital stamps (Daily Monitor)
Manufacturers and the private sector have asked government to stop being insensitive as it piles them with costs that not only threaten their businesses but are likely to harm the economy. Reacting to a proposal that Uganda National Bureau of Standards (UNBS) had partnered with a Swiss company to introduce digital tracking solutions, Mr Gideon Badagawa, the PSFU executive director, warned that government is going to constrain production and force industrialists to take drastic measures that might harm the economy.
Restructuring: Plans must pass through legal process from the National Assembly - Tambuwal (Nairametrics)
Former Vice President of Nigeria, Atiku Abubakar has warned that Nigeria must stop borrowing for anything other than essential needs, adding that very non-essential line items in the proposed 2021 budget must be expunged and others in a bid to kick start the economy from a recession. Atiku disclosed this in a social media statement on Sunday, titled: “We Must Exit This Recession With Precision”.
EACC recovers assets worth Sh25bn in one year to June (Business Daily)
Documents shared with National Treasury shows that the Ethics and Anti-Corruption Commission (EACC) latest recoveries jumped 5.6 times compared to the previous year’s Sh4.5 billion. The latest recoveries are more than the Sh22.56 billion that the commission had cumulatively recovered in cash and immovable property between 2003 and end of December 2019.
Kenya’s Ministry of Energy unveils bioenergy strategy (The Standard)
The government has launched a bioenergy strategy (2020-2027) placing the country on track in meeting clean cooking targets by 2028. The plan aims at providing investors with information on viable opportunities for bioenergy development and promotes sustainable production and consumption of bioenergy with attendant human health, economic, and environmental benefits. It also seeks to serve as a framework for regional cooperation and trade in bioenergy and related feedstock as called for by the Africa Bioenergy Policy Framework and Guidelines (African Union & UNECA).
Respite, as government approves release of goods stuck at Seme border (The Guardian)
The Office of the National Security Adviser (ONSA), which is coordinating the border closure exercise, has approved the release of over N130 billion goods stuck at the Seme border, more than one year after President Muhammadu Buhari ordered the abrupt closure of the borders. National President, Association of Nigerian Licensed Customs Agents (ANLCA), Iju Tony Nwabinike, had recently expressed worries that trucks laden with goods worth over N130 billion belonging to private businesses have been trapped since August 18, 2019, when the borders were shut.
Africa
How EAC will hack the US$4 Trillion AfCFTA market (The Exchange)
With the implementation of the African Continental Free Trade Area (AfCFTA), the region has to work together now more than ever if the countries in the region are to reap maximally from the agreement. For starters, the East African Community (EAC) should fast-track AfCFTA negotiations for the region’s private sector to tap into the US$4 trillion market. In addition, there is an urgent need to fast track the formation of a continental institution mandated to articulate the views of the private sector on the actualization of the continental agreement.
Nigeria: Minister sees transportation as indispensable to maximise AfCFTA potentialities (WorldStage)
Nigeria’s Minister of State for Industry, Trade and Investment, Amb. Mariam Katagum has said that transportation was an indispensable sector to maximising the potentialities of the African Continental Free Trade Area (AfCFTA). “There is need to extend the presence of transportation across Africa and have regional linkages to take advantage of logistics infrastructure that already exists. “There is also the need to build cross-border relationship, identify what needs to be done and who should do what, to make African trade to blossom,” she said.
What hosting the continental export fund means for Rwanda (The New Times)
Rwanda will be the permanent home to the Fund for Export Development Fund in Africa (FEDA), thanks to the agreements signed over the weekend between the government and the African Export-Import Bank (Afreximbank). On Sunday, November 22, the two parties entered three agreements that will see Kigali host the Fund’s headquarters whose ultimate aim is to provide equity capital to export and trade-oriented businesses in Africa.
Can Africa’s third industrial development decade deliver? (UNIDO)
Industrialization and development go hand in hand. There is hardly a country in the world that has developed without building a strong manufacturing base. But for Africa – sometimes referred to as the continent of the future – the fruits of industrialization have often seemed just out of reach. A debt crisis, ill-designed structural adjustment policies and a crash in commodity prices left Africa poorer at the end of the decade than at the beginning.
Despite ongoing challenges and a levelling off in GDP growth since 2017, many countries have made significant strides in boosting their industrial and agro-processing sectors, notably in food and beverages, leather, textiles, automotive and heavy machinery. The diversity needed to allow manufacturing to really take off has not yet taken root, but there are pockets of success.
Time for Manufacturing Africa (The Nation Newspaper)
Last Friday, November 20 marked 2020 edition of Africa Industrialization Day (AID). The theme of this year’s AID is “Inclusive and sustainable industrialisation in the AfCFTA and COVID-19 era”. Industry is the key driver of sustainable jobs and development for national economies and the foundation of good living standards. With large small or medium scale enterprises, Africa must consume products it produces not imported or smuggled as it is the case in Nigeria.
SADC rolls out strategic development blueprint (CAJ News Africa)
Celebrating its 40-year milestone, the Southern African Development Community (SADC) has restated its commitment to peace, security and development. This as the regional bloc rolls out its Vision 2050 and the Regional Indicative Strategic Development Plan (RISDP) 2020-2030. The SADC Summit approved the strategic documents in August this year. Both blueprints aim for “a peaceful, an inclusive middle to high income industrialized region, where all citizens enjoy sustainable economic well-being, justice and freedom.”
Puzzle of EAC bills that are passed but not effected (The Citizen)
Dozens of bills passed by the East African Legislative Assembly (Eala) have yet to be assented to by the partner states. The Treaty for its establishment provides that a head of state who withholds assent should refer it to the East African Legislative Assembly (Eala) for reconsideration. However, it emerged last week during an Eala sitting that rarely does the
COMESA Policy Organs’ Meetings Get Underway
The 41st Meeting of the Intergovernmental Committee began, Monday 23rd November. The two-days virtual meeting will discuss and review implementation of regional integration programmes, plan activities and make recommendations to the Council of Ministers meeting scheduled on Thursday, this week, for decision making. Zambia’s Minister of Commerce, Trade and Industry Hon. Christopher Yaluma opened the meeting. “Owing to travel restrictions brought on by the pandemic, the region has witnessed a dramatic decline and destabilization in domestic, regional and international trade, requiring the employment of comprehensive economic recovery strategies,” he pointed out.
Gender and Sustainable Energy Country Briefs for Kenya, Rwanda, Tanzania, and Uganda Global Launch (AfDB)
The African Development Bank, ENERGIA and the Climate Investment Funds have developed four country briefs looking at the current status of gender and energy in Kenya, Rwanda, Uganda and Tanzania. Based on an in-depth review of policy documents and consultations with key stakeholders, the briefs aim to provide policymakers and practitioners with recommendations to effectively integrate gender in energy planning, implementation and monitoring. The briefs present key data, an overview of the institutional set-up and targets on gender and energy, and an analysis of barriers and opportunities.
AUC-IEA Ministerial Forum: Securing Africa’s Energy Future in the Wake of COVID-19 (African Union)
The COVID-19 pandemic has created an unprecedented global emergency and significantly amplified existing challenges to Africa’s energy sector and created myriad new ones. The African Union Commission (AUC) and the International Energy Agency (IEA) will co-organize a virtual Second Ministerial Forum on 24 November 2020. The aim of the Forum is to agree on and promote actions to ensure a sustainable economic recovery and scale up of energy investments in Africa over the next three years coinciding with end of the first 10-year Action Plan of the Agenda 2063.
Oil & gas activities trigger big investments in Namibia, Angola and South Africa (Bozcommunity)
For nearly 70 years, oil has been a mainstay of the Angolan economy, contributing about 50% of the nation’s gross domestic product and around 89% of exports. The country holds the continent’s second-largest proven oil reserves and is behind only Nigeria in terms of production. In recent years, though, the drop in oil prices scared off foreign investment, putting pressure on Angola’s well-established oil and gas industry. Despite its vast resources, not only was production on the downturn, there had not been a major new discovery since 2011. Like its neighbours to the west, South Africa has been the site of considerable excitement over frontier discoveries.
Boosting Africa’s Food Supply: Rethinking Aflatoxin Management for Improved Food Trade in East Africa (World Bank)
While East African Community (EAC) Member States have made good progress in adopting regionally harmonized standards that include limits on aflatoxins, the high cost and complexity of meeting these standards has led to a large share of food being traded outside the regulatory system. Especially as countries in the EAC look to recover from COVID-19 and build resilient food systems for the future, minimizing the cost of market transactions is more important than ever.
Ghana, Ivory Coast threaten to suspend sustainable cocoa schemes (Thompson Reuters Foundation)
Ghana’s cocoa regulator has threatened to suspend the sustainability schemes used by major cocoa and chocolate companies to assure consumers that the beans they use are sustainably and ethically sourced. But companies in west Africa were thwarting government attempts to combat farmer poverty. As a result, their sustainability schemes, which allow companies such as Barry Callebaut and Nestle to charge consumers a premium for chocolate certified as sustainably sourced, could be suspended.
How to curb illegal mining in Great Lakes Region amid COVID-19 (Miningreview.com)
An all-inclusive approach involving all stakeholders is what is needed to curb illegal sourcing and trafficking of mineral resources in Africa’s Great Lakes region. The countries are well endowed with natural resources and have one of the richest concentrations of precious minerals and metals on Earth. However, the exploitation and trade of minerals are too frequently conducted illegally and often finance non-state armed groups, which further destabilise the region.
International
WTO top job: Groups revive Amina-Ngozi rivalry long after race (Nation)
Two lobbies are reviving the rivalry between Kenya’s Amina Mohamed and Nigeria’s Ngozi Okonjo-Iweala for the top job at the World Trade Organization, long after the race ended. They appear to question the integrity of the European Union endorsement, which tilted the race in favour of Dr Okonjo-Iweala and South Korea’s Yoo Myung-hee after the second round of the race. But in a letter to the European Commission earlier this month, the European Renewable Energies Federation, the association of green energy in the EU, argued Ms Mohamed should have been the “ideal” candidate to be endorsed by the EU for the WTO top job due to her pledges on climate-friendly policies. The federation asked the EU to rescind the endorsement of the Nigerian.
New survey shows COVID-19’s impact on e-commerce in poorer nations (UNCTAD)
Digital businesses have been affected by the COVID-19 crisis to varying degrees with those in poorer nations struggling to bridge the digital divide, according to an UNCTAD study. “The existing divides in terms of digital readiness underline the need to accelerate policy reforms and mobilize support to build the capacity of developing countries to leverage e-commerce in their COVID-19 recovery plans” Ms. Sirimanne said. “Digitalization must be placed at the heart of the development debate,” she added.
World Trade Report 2020 explores increasing use of policies to foster digital innovation (WTO)
A growing number of governments have adopted policies aimed at promoting innovation and technological progress for their economies, a trend which has implications for trade flows and the rules that govern global commerce, according to the 2020 edition of the WTO’s World Trade Report. The flagship publication, launched in an online event on 23 November, maps out the use of government policies in the digital era and underlines the importance of countries working together to encourage positive global outcomes while minimizing negative spill-overs.
Commonwealth Connectivity Agenda Cluster Week 3
Commonwealth Leaders adopted the Commonwealth Connectivity Agenda (CCA) at the Heads of Government Meeting (CHOGM) in April 2018 to boost trade and investment links across the Commonwealth and raise intra-Commonwealth trade to US$2 trillion by 2030. The 3rd Cluster Week presents an opportunity to reflect and reprioritise, sharpening focus on the areas within the Connectivity Agenda where Commonwealth countries can work together to support each other to emerge faster from the Covid-19 crisis.
SADC countries seal new pacts (The Southern Times)
Namibia has ratified the SACU-Mozambique and United Kingdom Economic Partnership Agreement (SACUM-UK EPA). At the same time, Malawi and South Africa signed a memorandum of understanding on trade to bolster bilateral commercial ties. The SACUM-UK EPA aims to secure continuity for preferential trade between SACU members Botswana, Eswatini, Lesotho, Namibia and South Africa on one hand, and Mozambique as well as the UK following London’s decision to exit the European Union.
From regional to global: the path to graduation for African LDCs? (Trade 4 Dev News)
The debate concerning the participation of least developed countries (LDCs) in global value chains is not new and has come to the fore on many occasions since the category was created by the United Nations in the early 1970s. In becoming the focus of renewed interest, the debate helps raise awareness of the need to speed up the industrialization and structural transformation of LDCs so as to create conditions for sustainable and inclusive development.
BRICS Annual Summit November 2020 – Review (Silk Road Briefing)
The annual meeting of the BRICS grouping of Brazil, Russia, India, China and South African heads of state was held this week, with Russian President Vladimir Putin hosting a virtual conference from Moscow. Combined, Brazil, Russia, India, China, and South Africa have a population of approximately 3.1 billion people – some 41 percent of the global population, and 18 percent of global trade. Brazilian President Jair Bolsonaro, Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping, and South African President Cyril Ramaphosa all participated.
Related News
tralac Daily News
National
Declaration on crypto assets welcomed (IOL)
Luno, the biggest cryptocurrency group in South Africa, welcomed the publication by the Financial Sector Conduct Authority (FSCA) on Friday of a draft declaration of crypto assets as a financial product under the Financial Advisory and Intermediary Services (FAIS) Act. Luno general manager for Africa Marius Reitz said they welcomed the draft declaration and cryptocurrencies were increasingly demonstrating the significant role they could play in the future of money.
Uganda’s economy on recovery trend: report (Big News Network)
Uganda’s economy is on a recovery trend from the downturn caused by the COVID-19 pandemic, a new report by the ministry of finance showed. The monthly performance report for October showed that for the fourth consecutive month, the Purchasing Managers’ Index (PMI) has stayed above the 50-mark threshold. “This gives an indication of further recovery in economic activity, from the downturn caused by the COVID-19 pandemic,” the report said.
Ghana’s public debt exceeds sustainability threshold (Ghanaweb)
As widely expected Ghana’s public debt has now passed the generally accepted sustainability threshold of 70 percent of Gross Domestic Product, the GHc273.8 billion in total debt by the end of September translating to 71.0 percent of GDP. The sharp increase in the public debt in 2020 – it rose by GHc55.6 billion during the first nine months of this year alone – is primarily due to the cost of successfully navigating the outbreak and viral spread of the COVID-19 pandemic.
Nigeria’s petrol price still low compared to neighbours’, encourages smuggling – NNPC GMD (Premium Times)
Despite the complaint by Nigerians of the rising cost of petrol, the government says Nigerians still pay the lowest amount for the product in West Africa and that is encouraging large smuggling to countries in the sub-region. The low pump price of petrol in Nigeria compared to what obtains in other countries in West Africa encourages unrestrained smuggling of the commodity from Nigeria, a senior official said Friday.
Rwanda to host continental export development fund (The New Times)
A new fund that was created by the African Export-Import Bank (Afreximbank) last year, the Fund for Export Development in Africa (FEDA), will have its permanent headquarters in Rwanda. This follows the signing of three agreements between Rwanda and Afreximbank on Sunday, November 22 in Egypt, which paves way for the establishment of FEDA headquarters in Kigali. Under the agreements signed, Rwanda committed to offer certain benefits to FEDA including offering free rental to the Fund for the next two years, officials said.
Nigerian Economy Enters Second Recession In Five Years (Economic Confidential)
The Nigerian economy has slipped into its second recession in five years as the gross domestic product contracted for the second consecutive quarter. The National Bureau of Statistics announced Saturday the nation’s GDP recorded a negative growth of 3.62 per cent in the third quarter of 2020. The country had earlier recorded a 6.10 per cent contraction in the second quarter.
URA raises red flag over rising cross-border smuggling at Elegu border (Kampala Dispatch)
The Uganda Revenue Authority (URA) has raised a red flag against smuggling of goods in Elegu, the porous Uganda-South Sudan border. Ivan Kakaire, the URA regional manager in charge of customs in Elegu says that the commonly smuggled goods across the porous border include fuel, powdered milk, sugar and rice among others. Kakaire explains that while the border is well managed, some smugglers still use canoes to ship contraband through the water and have often intercepted them en-route to neighboring Gulu and Adjumani district.
Debt eats 58pc of taxes in 4 months (Business Daily)
Debt repayments gobbled up nearly 58 percent of taxes in four months through October ahead of the Treasury’s move to apply for additional cheaper World Bank and IMF funding and consider a debt relief offer Nairobi had earlier rejected. Treasury data showed Friday that debt servicing costs amounted to Sh246.29 billion in the July-October 2020 in an environment of falling tax receipts, which dipped Sh71.94 billion to Sh426.38 billion compared with a year earlier.
Egypt reports $1.22bn exports, $640m imports with Nile Basin countries in 2019 (Daily News Egypt)
Egypt has reported a total of $1.22bn in exports to Nile Basin countries during 2019, compared to $1.20bn in 2018, reflecting an increase of 1.4%. On Sunday, the Central Agency for Public Mobilization and Statistics (CAPMAS) issued its annual bulletin of trade exchange between Egypt and Nile Basin countries for the year 2019. The bulletin reviewed the volume of trade, including exports and imports, with Sudan, Ethiopia, Uganda, Congo, Kenya, Tanzania, Rwanda, Burundi, and Eritrea.
Tunisia Host eBusiness Forum (COMESA)
The Tunisian Export Promotion Center in partnership with GIZ organized an online business-matching event dubbed “Tunisia Africa E-Business Meetings” on 18th-19th and 20th of November 2020. The main objective of the event was to promote South-South partnership and boost economic exchanges between African countries. This is expected to be achieved through consolidating economic relations through Networking, identifying new opportunities for cooperation with African economic operators, mobilizing all actors towards better African integration and boosting intra-African trade exchanges.
Africa
African think tanks want better funding (The Southern Times)
The postponement of trading under the African Continental Free Trade Area (AfCFTA) from July 2020 to January 2021 due to the COVID-19 outbreak presents challenges that bring to the fore the role of think tanks in promoting economic growth and development. Speaking at the opening of the 7th Africa Think Tank Summit, organised by the Africa Capacity Building Foundation, Prof Kevin Chika Urama – a senior director at the African Development Institute of the AfDB Group – said: “This is a clarion call for Africa to accelerate the implementation of this agreement to be able to achieve the great implications of trade for development.”
Let’s operationalize the principles of a single market – Trade Minister (Ghanaweb)
Mr Alan John Kojo Kyerematen, the Minister of Trade and Industry, says that for the continent to benefit from the single market, there was the urgent need to create awareness among the regulatory authorities, including customs of all state parties, economic operators, including producers and exporters as well as the logistics industry in the various countries.
Pact to resolve potential trade tensions under AfCFTA almost ready (Ghanaweb)
An official pact that could prevent trade tensions under the soon to be implemented Africa Continental Free Trade Area (AfCFTA) is almost ready. This strategic initiative is under the auspices of the African Union and the International Trade Centre. This is expected to provide solutions to countries in an effort to avoid overlapping of export sector priorities as countries could potentially prioritize similar produce ahead of AfCFTA implementation next year January.
ECA launches ATEX, e-commerce platform that will support transactions when AfCFTA starts next year (UNECA)
The Economic Commission for Africa presented an online trading platform Thursday, that will facilitate trading between buyers and suppliers when the African Continental Free Trade Area (AfCFTA) agreement starts next year. Known as the African Trade Exchange (ATEX), the business-to-business e-commerce platform will not only improve cross-border trade but also provide businesses with quality products from verified African suppliers in an efficient way at reduced average trading costs based on AfCFTA rules.
The COVID-19 pandemic reminds us of the complex societal, governance and security linkages that underpin sustainable development. The pandemic also requires governments to look beyond borders. Look at how the restricted global trade in vital goods such as pharmaceuticals, PPE, and oxygen impacted the level of preparedness in some African countries.
The African continent also needs to increase local manufacturing while taking advantage of the momentous opportunities presented by the Africa Continental Free Trade Agreement. Once in place, intra-African trade is expected to grow by 33%, and Africa’s total trade deficit is expected to be cut in half. And there is another crucial point – we need an immediate debt moratorium for countries with unsustainable debt levels.
From Survive to Thrive, working together for a better Africa – Huawei (The Star)
As individuals, our lives have been transformed; as businesses, our operating models have been revolutionised; and as a society, we have been shaken to the core. Fortunately, many of the technologies that have helped us through the worst of the pandemic and the lockdown, hold the key to success and prosperity in the post-lockdown era. The new ways of interaction that emerged this year – characterised by remote work, distance education, remote healthcare, online shopping and mobile money – will define how society works in the future.
From agro-processing initiatives to energy, transportation and water and sanitation services, transformative investments by the African Development Bank are paving the way to unlock Africa’s economic potential, according to the 2020 Annual Development Effectiveness Review (ADER), released on Friday. The report is themed Building resilient African economies. “Our goal has been and always will be to transform Africa through investments that make a difference to those who need it most. We are a bank that invests in people,” said Bank President Akinwumi Adesina.
SADC can be a major force: Guibeb (The Southern Times)
The Ambassador of Namibia to Germany, Andreas Guibeb, has called for strengthening of regional groupings in Africa such as SADC because they have the ability to collectively develop the African continent and make it a bigger player in global economics and politics. “There is saying that you can go far along but you can indeed further in unity hence the reason the importance of regional groups such as our SADC which we must continue to strengthen,” said Ambassador Guibeb.
Igad legal and policy experts now validate visa-free movement (The East African)
The Inter-Governmental Authority on Development (Igad) has validated a roadmap to implement the protocol on free movement of persons, which is expected to take 10 years. This was arrived at a high-level legal and policy experts meeting of the regional body held in Entebbe, Kampala on November 16-17 and was also endorsed by the Igad committee of ambassadors and ministers in charge of migration and labour. Upon adoption by the region’s summit, the roadmap will ease cross-border mobility for its 270 million people, improve regional economic integration and development.
SA’s Musina SEZ counts on Zim for resources (The Herald)
South Africa will look to Zimbabwe for resources for its proposed Musina-Makhado Special Economic Zone. The MMSEZ is located in the vicinity of the Beitbridge Border Post, which is one of the busiest ports of entry to South Africa and a gateway to the South African Development Community (SADC) countries. Lehlogonolo Masoga, CEO of Musina-Makhado, says the MMSEZ has the potential to become an inland intermodal terminal, facilitated by its anchoring position along the North-South Corridor, and directly connecting to the country’s major ports for the trans-shipment of sea cargo and manufactured goods.
African Energy Chamber to Gather Industry Stakeholders within the CEMAC Region Ahead of 2021 Recovery (Africanews)
To mark the launch of the latest African Energy Outlook 2021, the African Energy Chamber will be hosting a Power Breakfast in Malabo on Wednesday November 25th. The event will gather all of the Chamber’s partners and industry stakeholders in Equatorial Guinea as the market embarks on a path to recovery in 2021.
The Government of the Kingdom of Eswatini, through the Ministry of Commerce, Industry and Trade, requested for technical support from the ECA in developing an inclusive financing model to cater for the needs of MSMEs. ECA SRO-SA Acting Director, Sizo Mhlanga, noted that, “For frameworks to contribute to the desired outcomes, they must be effectively implemented and this calls for the identification and addressing implementation barriers. Experiences from the region and beyond, show that once policies are adopted, implementation as envisaged becomes a challenge.”
Slow progress in meeting commitment to 2020 as the year of universal ratification of Maputo protocol (African Union)
A two-day meeting convened to evaluate the status of the ratification, domestication and implementation of the Protocol to the African Charter on Human and Peoples’ Rights on the Rights of Women in Africa, commonly referred to as the Maputo Protocol on Women’s Rights, has concluded with strong recommendations on how to accelerate actions on the commitment to African women.
G20 Summit highlights
Leaders’ Declaration G20 Riyadh Summit - November 21-22, 2020
We, the G20 Leaders, meeting for the second time under the Saudi Presidency, stand united in our conviction that coordinated global action, solidarity, and multilateral cooperation are more necessary today than ever to overcome the current challenges and realize opportunities of the 21st century for all by empowering people, safeguarding the planet, and shaping new frontiers. We are committed to leading the world in shaping a strong, sustainable, balanced and inclusive post-COVID-19 era.
We welcome that the Saudi Presidency has prioritised the matter of G20 Support to COVID-19 Response and Recovery Plans in Developing Countries, especially Africa and Small Island Developing States. Our recovery from the crisis requires that we redouble our efforts to meet our global obligations as reflected in the UN 2030 Agenda for Sustainable Development – particularly our commitment to leave no-one behind and help those furthest behind first.
ICC welcomes G20 commitment on equitable distribution of Covid-19 vaccines; calls for emergency summit to deal with risks to real economy in early 2021 ICC welcomes G20 commitment on equitable distribution of Covid-19 vaccines; calls for emergency summit to deal with risks to real economy in early 2021.
G20 wraps up with African debt relief a priority (Africa Times)
With Zambia’s recent default on debt repayment and global concern over pandemic-related economic impacts, the G20 meeting in Riyadh wrapped up Sunday with a commitment through June for the Debt Service Suspension Initiative (DSSI) to allow developing nations to defer debt payments. Both Ramaphosa and President Paul Kagame of Rwanda attended the G20 virtual meetings hosted by Riyadh, the latter in his capacity with the African Union Development Agency (NEPAD).
FAO urges G20 to support farmers, protect the vulnerable and invest in innovation
QU Dongyu, Director-General of the Food and Agriculture Organization of the United Nations, today called on G20 members to address the impacts of COVID-19 on agri-food systems by boosting farmers productivity, scaling up social protection mechanisms and investing in digital innovation, among other measures. The Director-General also called on G20 Members to support investment in digital innovation and extension.
With respect to trade, there are three immediate challenges: to utilize trade to help underwrite the economic recovery, to facilitate trade in essential medical products to treat the pandemic, and to reform the institutional framework for world trade. First, trade finance for the developing world needs to be restored.
A No-Brainer for the G20 | by Jim O’Neill (Project Syndicate)
G20 leaders, representing the world’s largest economies, will discuss COVID-19 this month at a virtual summit, where they will have a chance to secure a return on investment that would make even the legendary investor Warren Buffett blush. With less than one-tenth of one percentage point of global GDP, the international community can vastly expand access to life-saving COVID-19 tests, treatments, and vaccines (once they are available), thereby putting the global economy back on track to long-term growth and stability.
“The Debt Service Suspension Initiative, in particular, gave many poor countries much needed temporary ‘breathing space’. The Common Framework for Debt Treatments beyond the DSSI, endorsed by G20 Leaders at this meeting, will allow low-income countries with unsustainable debts to apply for permanent debt relief on a case-by-case basis, with a level playing field for creditors. It is critical to operationalize this Framework promptly and effectively.”
Remarks by World Bank Group President David Malpass to the G20 Leaders’ Summit
International cooperation has never been more important. I’ve been very pleased to see the progress the G20 has made on debt transparency and debt relief. These are important, positive steps for development, and I’ve been glad to see constructive responses from major creditors.
G20: Global co-operation and strong policy action needed for a sustainable recovery (OECD)
Emergency economic measures to tackle the crisis will need to be adapted, support to people and businesses become more targeted, and new policies put in place to make the objective of a stronger, sustainable and inclusive global economy, a reality. 22/11/2020. The COVID-19 crisis has exposed major weaknesses in our economies that can only be fixed through greater global co-operation and strong, targeted policy action, according to a new OECD report presented to the Leaders of the G20 countries at their virtual Summit this weekend.
G20 leaders united to address major global pandemic and economic challenges (European Commission)
President von der Leyen said: ”I am glad that G20 leaders agreed to make Covid-19 vaccines available and affordable for all. But more funding is needed. This is why I called G20 Leaders to commit to fund 4.5 billion US dollars for the ACT-Accelerator by the end of the year. G20 leaders also agreed to maintain economic measures until the recovery is firmly on the way. As a lesson from the crisis we need to step up global preparedness.”
UN chief to press G20 for greater solidarity and support during pandemic (UN News)
The Secretary-General will press them to support global mechanisms striving to make any COVID-19 vaccines and therapeutics affordable and accessible to anyone, anywhere, who needs them. Speaking in New York on the eve of the virtual meeting, the UN chief told reporters that the world must ensure recovery from the crisis will be inclusive, sustainable and in line with global climate goals.
World leaders praise Paris climate pact as Trump justifies exit (Fin24)
Xi, who has pledged to make his country carbon-neutral by 2060, said China “applauds” the so-called circular carbon economy put forward by Saudi Arabia, a controversial plan that seeks to reduce emissions while capturing and reusing greenhouse gases produced by burning hydrocarbons. World leaders urged countries not to lose sight of climate goals, and endorse the aims of the Paris Agreement.
International
Four summits, one message: Trade cooperation for global recovery (The Manila Times)
After four years of diminished prospects, stagnation and divisive geopolitics, four summits (RCEP, Brics, APEC, G20) suggest world trade could show the way toward a better future but only through effective execution.
Hosted by Russia on November 17, the Brics Summit brought together major economies of the emerging-market bloc: Brazil, Russia, India, China and South Africa. The Summit focused on practical measures to battle the pandemic and support the Brics’ economic recovery. China’s President Xi Jinping warned about “the practice of using the pandemic to pursue ‘de-globalization’ or clamor for ‘economic decoupling’ and ‘parallel systems’,” which will end up hurting “the common interests of all.”
Since early spring, the major rich-income economies have been crafting massive stimulus responses against the pandemic. In 2020, fiscal support packages could climb to $15 trillion to $20 trillion worldwide. Meanwhile, many medium- and particularly low-income economies are suffering from excessive debt burden. On November 21 and 22, the G20 Summit focused on addressing the implications of the global pandemic, future health care plans and steps for revising the global economy, including fiscal support, debt reductions and other vital measures.
While the US did America First, other countries came together (Quartz)
Today, two architects of the modern world trade order [the US and UK] have taken a sharp turn away from far-reaching global agreements, and gone back to the more cautious approach of negotiating one nation at a time. Meanwhile, two separate massive trade blocs are forming in different parts of the world. Last week, Nigeria ratified the African Continental Free Trade Area (AfCFTA): The pan-Africa trade bloc will come into effect in January. And in Asia, 15 countries including China just formed the Regional Comprehensive Economic Partnership (RCEP), which could dramatically streamline trade in the region when ratified.
UK ready to partner with Nigeria to generate long term benefits – UK Trade Envoy (Nairametrics)
Former Vice President of Nigeria, Atiku Abubakar has warned that Nigeria must stop borrowing for anything other than essential needs, he also added that very non-essential line items in the proposed 2021 budget must be expunged and others in a bid to kick start the economy from a recession. Atiku disclosed this in a social media statement on Sunday, titled: “We Must Exit This Recession With Precision”.
IMF slaps tough terms on Kenya loan offer (Nation)
The government is in urgent need of cash for its annual budget support and will therefore have to implement tough conditions imposed by international lending institutions, Treasury Permanent Secretary Julius Muia has said. The IMF on Friday released a statement disclosing that tax, governance and monetary policy reforms are part of its ongoing debt negotiations with the government, stoking fears of a return to painful prescriptions of the past that have resulted in civil servant job losses and increased taxes.
Four Things to Know About How Fragile States Like South Sudan Are Coping With COVID-19 (IMF)
On November 11, 2020, the International Monetary Fund granted the Republic of South Sudan a $52 million emergency disbursement under the Rapid Credit Facility to help its economy weather the shock of the COVID-19 pandemic. This is the first time this new and still fragile country has received financial support from the IMF.
A multi-agency platform providing vital trade and market information is helping micro, small and medium-sized enterprises – and the institutions that support them – to weather the COVID storm. Smaller firms have been among the hardest hit by COVID-19 as demand for their goods and services plummeted and disrupted supply chains. In response, chambers of commerce and other business support organizations worldwide have been diligently working to support MSMEs to adapt their business strategies and put them on the path to recovery.
Commonwealth private sector targets green, digital recovery (The Commonwealth)
Trade ministers and business leaders from across the Commonwealth will gather virtually to examine how they can work together to spur a digitally-inclusive and green recovery in the face of devastating economic impacts linked to COVID-19. Commonwealth Secretary-General Patricia Scotland said: “The disruptions triggered by COVID-19 has greatly accelerated the shift towards digital trade, which was already unfolding before the pandemic struck. We now stand at a pivotal crossroads where entire countries, sectors and companies are at risk of being left behind.”
TRIPS waiver: WTO to decide on India-South Africa proposal next month (@businessline)
The World Trade Organisation (WTO) is likely to take a decision next month on the India-South Africa proposal for the temporary waiver of global intellectual property obligations to fight the pandemic. But developed members such as the EU, the US and Canada are continuing to oppose the proposal, according to a Geneva-based official. “The chair of the TRIPS council will now get in touch with delegations bilaterally and in groups to see what a possible solution could be,” the official said.
Stakeholders panel shares ideas on how to revitalise the WTO to meet future challenges
Guy Ryder, Director-General of the International Labour Organization (ILO), said that the WTO has been instrumental in powering the growth and dynamism of the global economy. This has provided the enabling conditions for the ILO to promote the achievement of many of its goals, such as the provision of decent work opportunities and reduction of poverty, he said.
Céline Charveriat, Executive Director of the Institute for European Environmental Policy, stressed that the world needs to focus on what sort of trade we need to help it recover from where it currently stands and to become climate neutral by 2050. She said the WTO needs to be a place where there is an equitable sharing of the benefits and risks from “greening” trade. The WTO is the only place that can bring an end to environmentally harmful subsidies, she added.
Joshua Bolten, President and CEO of the US Business Roundtable said: “Only a bold and comprehensive reform agenda can restore the central role of the WTO and prevent its downward spiral into irrelevance. To those of us who believe in the multilateral system in the WTO, we must come together to prove it can meet the challenges of today, and of the future.”
Related News
tralac Daily News
National
Manufacturing can play a key role in South Africa’s economic recovery (Engineering News)
The country’s economy is in a dire state, exacerbated by the impact of the Covid-19 pandemic; however, there are signs of opportunities for recovery and manufacturing can play a big role in supporting economic recovery, PwC Africa partner and chief economist Lullu Krugel said during a November 19 webinar hosted by industry organisation, the Manufacturing Enterprise Solutions Association. Krugel said technology was a big disrupter, but also provided opportunities for the industry.
Investment Conference bears fruit (SAnews)
South Africa’s premier two-day Investment Conference recently wrapped up in a time when the world continues to pick itself up amidst the pandemic that has changed life as we know it. Despite the global turmoil caused by the pandemic, the appetite for investing in Africa’s southernmost country was not dampened. “Tough decisions have had to be made on investments, on expansion and on entry into new markets. It is therefore significant that you have all come here – both in person and virtually – to show that this is a country you believe in and want to see succeed,” said President Ramaphosa.
SA urged to pursue cybersecurity frameworks based on global best practice (Engineering News)
South Africa’s digital interactions and cybersecurity, notwithstanding the Cybercrimes Bill 2017 that has not yet been adopted, are currently governed by the Electronic Communications and Transactions Act (ECTA) 2002, as well as the Protection of Personal Information Act 2013. There is still a significant amount of work required to bring South African legislation in line with international principles and standards, says law firm Cliffe Dekker Hofmeyr (CDH) technology, media and telecommunications practice director Preeta Bhagattjee. “Without a well-defined legal framework, it is more difficult, but not impossible, to prosecute people or organisations implicated in cyberattacks and crimes, which weakens enforcement. Data protection legislation often goes hand in hand with cybersecurity laws.”
President Kenyatta says govt committed to modernize security sector (Capital FM)
President Uhuru Kenyatta has reiterated the Government’s commitment to the modernisation of the country’s security apparatus. The President said despite competing national interests, including the fight against COVID-19, the Government will continue investing in equipment, technology and training to enhance the effectiveness of the police and other security agencies. “We understand that in a dynamic operating environment characterized by emerging and asymmetrical threats, investment in modern technology and cutting-edge training is instrumental for 21st Century law enforcement,” the President said.
Manufacturers develop standards to ease goods clearance at points of entry (Capital FM)
The Standard Operating Procedures (SOPs) developed by Kenya Association of Manufacturers (KAM) seek to ensure better and more efficient entry operations to facilitate trade and enhance the fight against illicit trade. Speaking at the Launch yesterday, Cabinet Secretary, Ministry of Industrialization, Trade, and Enterprise Development Betty Maina highlighted the Government’s commitment to sustain the fight against illicit trade in the country. “Our ports and other points of entry play a fundamental role in facilitating global trade. The development of these SOPs is therefore an integral part of a successful quality system,” said CS Maina.
Zambia seeking ‘win-win’ resolution with creditors after default (CGTN Africa)
Zambia is seeking a compromise solution with bondholders and does not expect them to seize its mining assets even though it defaulted on $42.5 million in Eurobond debt last week, Mines Minister Richard Musukwa said on Thursday. The government in September requested a six-month deferral on interest payments for three commercial eurobonds worth $3 billion. But it missed the $42.5 million interest payment due on one bond on October 14, prompting ratings agency S&P to declare the country in default.
Govt imports drop to lowest level in years (Daily Monitor)
Government imports declined to an all-time low for the first time in over three years, according to details contained in the Bank of Uganda report for the month ended September. According the report, government imports fell to $4m (Shs15b), which was a drop from the monthly average of $56m (Shs210b). During the month, formal private sector imports formed the largest part of the import bill with mineral products (excluding petroleum products), which stood at $176.4m (Shs661b) taking the biggest share, while $115m (Shs431b) was spent on importation of vehicles and accessories.
Rwanda’s garment export revenues hit record high (The New Times)
Rwanda’s textile and garment sector has recorded unprecedented growth since 2018 when the US government suspended Rwanda from the list of countries whose apparel exports enter the American market duty-free under the African Growth and Opportunity Act (AGOA). Donald Trump’s administration suspended AGOA for Rwandan apparel products following a decision by Kigali to raise tariffs on second-hand clothes to protect the local industry. However, the local apparel export defied the odds between 2018 and 2020, growing at 83 per cent in value.
Egypt ministerial meeting discusses proposals to facilitate trade with Africa (MENAFN.COM)
Egypt’s Prime Minister Mostafa Madbouly has reviewed proposals, during a high-level ministerial meeting, to facilitate the movement of goods between Egypt and Africa, and to enhance transport networks. Madbouly said Egypt is keen to strengthen relations with African countries, and increase trade exchange across the continent to achieve mutual benefit for all parties involved. He also said that increasing the volume of trade exchange requires developing the means and methods of transportation across Africa, in order to reduce the final costs of goods.
Experts meet to validate two documents (The Point)
Permanent secretary at the Ministry of Agriculture, Ebrima Sissaho, has pointed out that the ECOWAS region has experienced strong growth in agricultural production over the last 20 years particularly compared to the rest of the continent. However, he said despite these gains, food insecurity remains a major challenge. According to him, the Food and Agriculture Organisation (FAO) statistics has indicated more than 34 million people are undernourished in the sub region and the countries hardest hit are also poorest and the most fragile ones.
Africa Industrialisation Day: highlights
Time to turn COVID-19 into an opportunity (sardc.net)
The COVID-19 pandemic that has affected the global socio-economic landscape has brought to the fore the need for Africa to industrialize and trade more with itself than the outside world. Regional integration experts said an industrialized Africa has the capacity to shield itself from any global commodity volatilities that have continued to dictate the direction of Africa’s trade and economic progress. Furthermore, industrializing the continent would mean less raw resources being shipped and traded elsewhere, enabling African countries to fully benefit from their natural resources, as well as create employment for its citizens.
Statement by the SADC Executive Secretary, H.E. Dr Stergomena Lawrence Tax
On this day, the 20th November, the Southern African Development Community (SADC) region joins the rest of the world to commemorate Africa Industrialization Day. This year’s commemoration is under the theme “Inclusive and Sustainable Industrialisation in the era of the Africa Continental Free Trade Area (AfCFTA)”. The theme underscores the importance of policy harmonization and alignment across national borders as a pre-requisite for cross border investment and for the movement of goods, capital and people.
SADC understands that industrialization, with strong linkages to domestic economies, will help SADC Member States and African countries, to enhance productivity, diversify their economies, achieve high growth rates, and thus, reduce exposure to external shocks. SADC has over the years been at the forefront in driving the industrialisation agenda by putting in place policies and strategies to boost and catalyse industrialisation and transformation of the region. The transformation of SADC economies aims to create decent jobs, promote value adding development approaches, and improve the welfare of citizens, and ultimately eradicate poverty in the region.
UN reaffirms commitment to Africa’s industrial development (Premium Times)
The UN Secretary-General, António Guterres, has reaffirmed the organisation’s commitment to “inclusive, resilient and sustainable” industrialisation in Africa. “The COVID-19 crisis hit African economies well before the pandemic spread across the continent, with falling demand for African commodities and products, disruptions in trade and travel, reduced remittances and foreign investment, and vast job and income losses. Economies were expanding and poverty was in decline. Technology and innovation were being embraced across the continent, and progress had been made in unity and economic integration. The entry into force of the African Continental Free Trade Area (AfCFTA) promised a strong boost in intra-African trade,” he said. Mr Guterres emphasised that the response to the pandemic was an opportunity to address “structural inequalities and vulnerabilities” and promote transformative change for a more resilient Africa.
Data from external sources does not reflect realities of African countries: African Statistics Day (African Union)
The growing demand for legitimate, quality and timely statistics has in recent years been a priority at the national, regional and continental levels leading to the adoption by the African Union Member States in 2018, of the revised Strategy for the Harmonization of Statistics in Africa (SHaSA 2). The African Charter on Statistics serves as a comprehensive policy framework for the development of statistics in Africa. Its ratification and domestication and the full implementation of SHaSA, are expected to leapfrog the continent to generate reliable and harmonized statistics covering the environmental, social, economic, cultural and political dimensions of sustainable development through the implementation of a coordinated strategy at the continental level.
At the commemorative events, the African Union Commission also launched the third edition of the African Trade Statistics Yearbook, a time-series of annual trade data for the period from 2013 to 2019. The Yearbook acknowledges that harmonized and high-quality trade statistics data are critical to support trade negotiations. It fulfils the need for comprehensive, detailed and reliable statistics on merchandise trade in African Union.
Follow related updates on Twitter
ICYMI: How intra-African trade is progressing amid the pandemic (BBC)
Last year African countries signed an agreement aimed at increasing trade between them. If implemented successfully, they believe it could create a single African market of over a billion consumers. According to Trudi Hartzenberg, executive director of the Trade Law Centre (Tralac) in Stellenbosch, South Africa, negotiations between African nations are ongoing virtually, but they have now hit “some sensitive issues”. “The negotiations are pretty complex because the countries who are negotiating would lose tariff revenues. Reducing the tariffs means the import duties are lower so they would be gathering less revenues than before,” she explains.
Conduct comprehensive market research about AfCFTA nations – Researcher to businesses (MyJoyOnline)
Managing partner for research firm – Indago Africa, Gordon Biaku, is urging businesses to conduct a comprehensive market research of countries they wish to invest in, before participating in the African Continental Free Trade Area (AfCFTA).”First and foremost, understand your trade locally. Number two, of which of all the countries you want to venture, Nigeria, South Africa and the like, get local knowledge. If possible, get local partnerships, they can help with local knowledge,” he said.
UNECA hails Nigeria’s ratification of AfCFTA deal as “strong signal” of integration (CGTN Africa)
The UN Economic Commission for Africa (ECA) on Thursday welcomed Nigeria’s ratification of its membership of the African Continental Free Trade Area (AfCFTA). Last week, Nigeria’s Federal Executive Council (FEC) ratified the country’s membership less than a month before the December 5 deadline. Vera Songwe, Executive Secretary of the ECA, said the move by the continent’s largest economy and most populous nation was a serious indicator about Africa’s desire to strengthen intra-African trade. “This sends a strong signal that the African continent is serious about regional integration and lays a robust foundation for successful implementation of the AfCFTA,” Songwe said.
AfCFTA will add more responsibility to Customs Administrations – GRA (Ghanaweb)
The coming into force of the African Continental Free Trade Agreement (AfCFTA) in January will add more responsibility to Customs Administrations in Africa, Mr Ammishaddai Owusu-Amoah, Commissioner-General, Ghana Revenue Authority (GAR), has said. He said it would be prudent for Customs Administrations on the continent to have additional resources in performing their roles diligently. The meeting under the auspices of the AfCFTA Secretariat was on the theme: “Operationalization of the AfCFTA Custom Provisions.”
AfCFTA to boost Ghana-South Africa trade relations – Ayorkor Botchwey (Ghanaweb)
Foreign Affairs Minister, Shirley Ayorkor Botchwey, says the implementation of the African Continental Free Trade Agreement (AfCFTA) offers an opportunity for Ghana and South Africa to boost its trade relations. According to the Minister, the AfCFTA further express optimism that the business community in both countries will take advantage of the large market to invest.
African Development Bank supports continental strategy on COVID-19 with US$27.33 million (Africa CDC)
In response to a request by the Bureau of the African Union Heads of State and Government under the leadership of H.E. Cyril Ramaphosa, Chairperson of the African Union and President of South Africa, the African Development Bank (AfDB) has approved a grant of US$27.33 million to the Africa Centres for Disease Control and Prevention (Africa CDC). Awarded under three key components – technical assistance and capacity building (US$19.33 million), institutional support (US$7 million) and contribution to the African Union COVID-19 Response Fund (US$ 1 million) – the grant is to support implementation of the Africa Joint Continental Strategy for COVID-19 Outbreak.
Tingg: Changing The Digital Economy’s Narrative In Africa (Premium Times)
By leveraging technology, tech-savvy youth and a vast majority of Africans with mobile devices – phones, tablets, laptop computers etc. – now carry out transactions seamlessly. This is fundamentally why a digital payments system is one of the five operational instruments of the African Continental Free Trade Area (AfCFTA). The objectives of the AfCFTA include creation of a single continental market for goods and services, with free movement of business persons and investments, aided by a digital payments system that eliminates the need for cash transactions.
Africa’s development models must change (ISS Africa)
As the world grapples with COVID-19, analysts have had to review their forecasts of development in Africa. There is now much discussion of V-shaped or U-shaped or L-shape recovery patterns and what these might mean for what was a generally positive outlook for the continent – an ‘Africa Rising’ narrative. However, circumstances over the past decade or more suggest that the socio-economic development models used by the major multilateral financial institutions and development agencies need to be reviewed. They should align with the fact that most African economies lie beyond current legal frameworks and the law, and are subject to informality, poor land management and pernicious organised crime networks.
Round Table for the Financing of CEMAC Integration Projects (Africanews)
After two days spent in Paris meeting with representatives of the French Government, heads of community institutions, representatives of international institutions, donors and private investors, CEMAC can boast of significant economic success. Under the leadership of HE Mr. Clément Mouamba, Prime Minister, Head of Government of the Republic of Congo, the institution has succeeded in raising 3.8 billion euros to support the financing of integration projects for the economic development of the region.
Lake Victoria: East Africa sitting on untapped trade worth $60b (The East African)
The development of Lake Victoria ports is the biggest project in implementing the East African Community Inland Waterway Transport infrastructure development agreed by partner states to strategically link Uganda, Tanzania and Kenya to both the Northern and Central transport corridors. However, while all three countries have expressed interest in reviving the Lake Victoria water transport to unlock the economic potential of the region and integration, official launch of Kisumu, set for August 2019, has been postponed several times, because of underestimation of infrastructure layout needed and inability of Uganda and Tanzania to complete their corresponding facilities on time.
Cane farmers want Comesa import safeguards extended (The Standard)
Sugarcane farmers are pushing for the extension of restrictions on sugar imports. The Kenya National Alliance of Sugarcane Farmers Organisation says with the looming expiry of import safeguards by the Common Market for Eastern and Southern Africa (Comesa), farmers might lose market for their produce. The safeguards allow Kenya to limit duty-free sugar imports from Comesa countries to a maximum of 350,000 tonnes annually. “If the sugar imports keep coming without restrictions, it will not safeguard farmers and the prices of sugar will be depressed. In the end, the sugar industry will die,” the organisation’s chairman Saulo Busolo said.
Economics alone isn’t holding back West Africa’s Eco (ISS Africa)
The Eco – the proposed single currency for members of the Economic Community of West African States (ECOWAS) – was scheduled to launch in July this year. The failed launch of the Eco in July will be the fifth attempt in about two decades. This time there’s no new date and instead, discussions are being held on a new roadmap. Official reasons for the delay are mainly economic – member states have been unable to meet the convergence criteria for launching the single currency. These include inflation, debt-to-GDP ratio, budget deficits and their financing, reserves and exchange rate stability. But even if these hurdles are overcome, political problems will probably still prevent the currency from taking off.
International
COVID-19’s economic fallout will long outlive the health crisis, report warns | UNCTAD
Global markets and spirits are up with the news that two COVID-19 vaccines have shown to be more than 90% effective in late-stage clinical trials. But while there is growing confidence that an end to the health pandemic is in sight, an UNCTAD report published today warns that a viable vaccine will not halt the spread of economic damage, which will be felt long into the future, especially by the poorest and most vulnerable. The report, “Impact of the COVID-19 Pandemic on Trade and Development: Transitioning to a New Normal”, provides a comprehensive assessment of the economic knock-ons, projecting that the global economy will contract by a staggering 4.3% in 2020 and warning that the crisis could send an additional 130 million people into extreme poverty.
UN urges Africa to develop clear competition rules for AfCFTA to boost trade (The Independent)
The UN on Thursday urged Africa to develop clear competition and consumer protection rules for African Continental Free Trade Area (AfCFTA) in order to boost trade. Mukhisa Kituyi, secretary general of United Nations Conference on Trade and Development (UNCTAD) told a trade forum in Nairobi that lack of adequate competition laws leads to distortion practices that undermine cross-border trade. “We need to have clear competition laws regulating cross border trade so that enterprises and trade can thrive in Africa,” Kituyi said.
DDG Yonov Frederick Agah: Trading system has proven resilient during COVID-19 pandemic (WTO)
The international trading system has proven surprisingly resilient during the COVID-19 pandemic, with global supply chains adapting after initial disruptions and goods continuing to flow across borders, Deputy Director-General Yonov Frederick Agah said on 18 November. In a speech to the Asian Logistics, Maritime and Aviation Conference in Hong Kong, China, DDG Agah said keeping markets open to trade is an essential step to ensure that a strong economic recovery takes hold after the pandemic.
The future of global supply chains: What are the implications for international trade? (Brookings)
The COVID-19 pandemic and associated global recession have had a devastating effect on international trade. In the second quarter of 2020, global trade was down 18.5 percent, a far sharper drop than was seen for GDP. Much of the economic activity that continues in a pandemic – health services, housing services, utilities – is not traded internationally, while the widely traded goods such as cars, electronics, and tourism are cut back as people face an uncertain future. The main question addressed in this essay is, what is the likely evolution of supply chains and international trade in the medium to long run after the COVID-19 pandemic?
As new debt crisis looms, Africa needs more than world is offering (WTVB)
African countries face another debt crisis and will need more long-term help than the latest G20 debt plan offers them to ward off trouble ahead and keep much-needed investments coming in, according to policymakers, analysts and investors. Around 40% of sub-Saharan African countries were in or at risk of debt distress even before this year, while Zambia became the continent’s first pandemic-era default last Friday. G20 countries have offered the world’s poorest countries relief until at least mid-2021 and sketched out rules for rescheduling government debt to help fend off the risk of default. But these plans to provide near-term breathing space might not go far enough.
Time is Ripe for Innovation in the World of Sovereign Debt Restructuring (IMF Blog)
New IMF staff research looks at possible innovative sovereign debt instruments that could do both: help creditors and debtors reach agreement on how to restructure debt by sharing some upside potential, and make a country’s debt portfolio more resilient to future shocks. The pandemic might be the force that catalyzes long overdue innovation in sovereign debt instruments that could facilitate restructurings and even help avoid them in the future.
Scaling up multilateral bank finance for the Covid-19 recovery (ODI)
Lending by the International Bank for Reconstruction and Development (IBRD) for middle-income borrowers rose to $27.9 billion in FY2020, up 20% over the previous year and evidence of a fast if limited response to the crisis this spring. Lending is projected to rise to $35 billion in FY2021, and then decline to $26 billion in FY2022. This response is well below IBRD’s nearly tripling of lending in 2009 after the global financial crisis, and even higher lending in 2010. IDA and the African Development Fund will have to dial back lending in the next two years without more help.
New trade rules vital to protecting the planet (UNEP)
A new United Nations Environment Programme (UNEP) report says that type of unbridled international trade is having a damaging effect not only on rainforests but the entire planet. The report, which called for a raft of new Earth-friendly trade rules, found that the extraction of natural resources could spark water shortages, drive animals to extinction and accelerate climate change – all of which would be ruinous to the global economy. “We have to make sure that our global trade policies protect the environment not only for the sake of our planet but also for the long-term health of our economies,” said Inger Andersen, Executive Director of UNEP.
Central & Eastern Europe and EU-Africa Relations After 2020 (Chatham House)
With negotiations for a new post-Cotonou Partnership Agreement and a renewed Joint Africa-EU Strategy due to be concluded in 2021, there is the potential for a critical reset in the relationship between the EU and Africa. This paper finds that the transition perspectives of Central and Eastern European member states can help shape the EU’s evolving partnership with Africa, in line with the ambition to move away from a donor-to-recipient dynamic towards a more equal engagement based on trade, investment and partnership.
Kenya, Britain $11m climate change war chest ahead of Glasgow meeting (The East African)
Kenya and the United Kingdom have entered into an agreement to combat climate change, even as Kenya was challenged to take on higher nationally determined contributions (NDCs) as a leader in the region, ahead of the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow. The UK announced $11 million support to Kenya for new climate initiatives as part of the UK Pact Green Recovery Challenge Fund for projects meant to help countries accelerate their low-carbon transition. The UK said it was doubling its international climate finance to $15.4 over the next five years.
East African business lobby seeks ties with China to boost competitiveness (Ximhua)
The East African Business Council (EABC) said Thursday its pursuing partnerships with Chinese firms in order to boost the competitiveness of the region. Peter Mathuki, CEO of the EABC told Xinhua in Nairobi that companies in East Africa face great competition from goods produced in regions that have advanced industrial technologies. “The East African business community is seeking to forge partnership with Chinese in order to benefit from the latest innovations required to compete favorably in the international market,” Mathuki said.
Kenya is not a dumping ground for US plastic (The Africa Report)
The new administration of US president-elect Joe Biden must resist pressure from US oil and chemical companies to use Kenya as a dumping ground for plastic waste. In April, the American Chemistry Council (ACC), members of which include Shell, Exxon, Total, DuPont and Dow, proposed investments in recycling in Kenya, provided that the recipient country accepts US plastic waste. Researchers led by Jenna Jambeck have estimated that Africa’s total mismanaged plastic waste may more than double from 4.4 million metric tons in 2010 to 10.5 million metric tons in 2025.
The US announces a $500m in trade project for Africa’s private sector (Ecofin Agency)
The Acting Deputy Administrator of the U.S. Agency for International Development (USAID), John Barsa, announced on November 17, 2020, the launch of a new Africa-wide trade and investment program under the “Prosper Africa” initiative. Worth up to $500 million for over five years, depending on the availability of funds, “this flagship program will offer new and expanded support services to increase two-way trade and investment between Africa and the United States substantially,” USAID said. The program will provide coordinated services that are aligned with private sector needs “through a continent-wide approach”.
Policy Brief: Event Explores How Trade Can Support Resilience in a More Disaster-prone World (IISD)
How can policies on trade strengthen resilience in countries that are particularly vulnerable to disasters? Experts and senior government officials grappled with this question at a virtual session during the World Trade Organization (WTO) Trade and Environment Week on 18 November, focusing particularly on the role that trade facilitation can play in the process. Bain said trade can “play a vital role” in easing access to food, medicines, building materials, and equipment when a disaster strikes, and in laying the foundations for the post-crisis recovery.
Africa shrugs off net-zero push without finance to follow (Thompson Reuters Foundation)
As more countries, cities, investors and businesses set net-zero emissions goals, they now cover about half of the world’s economy – but Africa is largely left out of the picture so far. Failure to revamp policies to benefit from a global low-carbon shift may mean Africa misses out on investment, said Wendy Hughes, a carbon markets manager at the World Bank Group. But officials from the continent noted that with sub-Saharan Africa currently producing less than 4% of global emissions, “carbon-cutting” goals have limited relevance, with most African nations focused instead on creating jobs and economic growth.
How climate change threatens African coffee farmers (DW)
Some 169 million bags of coffee were produced in the 2019/2020 coffee year, according to the International Coffee Organization. But about 60% of wild coffee strains worldwide are in danger of extinction, according to a study by the US journal Science Advances. Not only is coffee indigenous to Africa, it is also the region with the most coffee-producing countries. Ethiopia, along with Uganda, Tanzania and Kenya produce 80% of Africa’s total coffee exports, according to the UN Conference on Trade and Development.
Is climate finance diverting from development assistance? (Devex)
The year 2020 was meant to be a key milestone on the road to meeting the goals of the Paris climate agreement. That is particularly true for climate finance and for the agreement between higher- and lower-income countries that if governments took steps to limit carbon emissions, they would be supported with technical and financial assistance. Due to a lag in reporting, it will take another two years to know for sure whether high-income countries have met their commitment to provide $100 billion of climate finance to lower-income countries per year by 2020.
The continent ambitious Northern entrepreneurs soon won’t be able to ignore (Business Live)
No matter which way you look at it, Africa is becoming a force to be reckoned with in business. As a continent, it boasts eight of the world’s 15 fastest growing countries, including one of the globe’s exploding middle-class communities. Local trade between Africa and the UK stood at £35.5bn in goods and services in the year to the end of quarter one, 2020. That was the subject of this week’s Doing Business in Africa virtual panel session – the latest event hosted by BusinessLive in partnership with the Department for International Trade.
The Global South’s Pandemic Path to Self-Reliance (The Daily Star)
Covid-19 continues to have a devastating impact on public health and to rattle the global economy with structural shocks. But the current crisis could offer developing countries a path toward greater economic self-reliance. This is partly because developed countries have in general borne the brunt of the pandemic’s health effects so far. The OECD estimates that external private finance inflows to developing economies could decrease by USD 700 billion year on year in 2020, exceeding the impact of the 2008 global financial crisis by 60 percent. Today, developing countries have more opportunities to become self-reliant.
UK-EU Brexit trade talks to continue remotely, Britain says (Reuters)
The British and European Union teams negotiating a post-Brexit trade deal will continue to hold discussions remotely after a member of the EU team tested positive for COVID-19, a British government spokesman said on Thursday. “The UK and EU teams have agreed to continue to negotiate remotely for the time being,” the spokesman said. “The talks will resume in person when it is judged safe to do so. The health and welfare of our staff are our priority.”
Related News
tralac Daily News
National
Closing address by President Cyril Ramaphosa at the third South Africa Investment Conference (The Presidency)
It has been a gathering filled with promise and optimism. It has also been a practical Conference, focusing on the numerous opportunities that exist in this country, the challenges that investors face and the measures that must be undertaken to address these. But it has also been about new investments, about companies that are looking beyond the pandemic to invest in a growing economy. I am therefore immensely pleased to announce here today that we are firmly on track to meet our five year target of $100 billion in new investments.
Related: Economic Recovery Plan: The key to unlocking SA’s growth (SAnews)
South African debt crisis can be avoided, Ramaphosa says (BusinessTech)
South Africa’s government is committed to reining in its debt and will avoid a sovereign debt crisis, president Cyril Ramaphosa said. “I am certain that we will be able to bring our debt levels down and avoid what you could call a debt crisis because we are focused,” Ramaphosa said in an interview Wednesday with Bloomberg Television on the sidelines of an investment conference in Johannesburg. “A country that needs to grow needs to reduce its debt.”
Chrome exporters want to discuss ways of solving ferrochrome dilemma without export tax (Mining Weekly)
South Africa’s non-integrated chrome ore exporters want to discuss ways of solving the existential threat to South Africa’s struggling ferrochrome industry to avoid the need for an export tax being imposed on the export of locally mined chrome ore. However, they are not legally permitted to enter into discussion fully until they receive an exemption to do so from the Competition Commission. “Introducing a tax will not, in the longer term, give ferrochrome any benefit at all. It’s like prescribing the wrong medicine for an illness,” McAdam, also a former ferrochrome executive of long-standing, said.
Kenya to defer Sh75bn after U-turn on G20 debt relief plan (Business Daily)
Kenya is now ready to defer Sh75.5 billion ($690 million) in debt payments to help it weather the Covid-19 pandemic, marking a U-turn stance on the G20 coronavirus debt relief initiative it had snubbed in May. Treasury Secretary Ukur Yatani says Nairobi has received clarity on what impact the debt relief programme might have on the country’s credit rating and a final decision will be made as early as next week.
Speaker launches NDPC 2019 Annual Progress Report (Ghanaweb)
Professor Aaron Mike Oquaye, the Speaker of Parliament, on Wednesday launched the National Development Planning Commission (NDPC) 2019 Annual Progress Report (APR) in Accra. The 108-page report assesses the progress of implementation of the Medium-Term National Development Policy Framework. On the economic dimension, there was inadequate financing for Small and Medium Enterprises (SMEs) due to fiscal constraints within the private sector as a result of contractions in market coverage, long term finance, high cost of accessing capital and low innovation capacity. Key policy recommendations include expediting of processes for establishing a National Development Financial Institution (Development Bank) that will provide long term loans at affordable rates to businesses and industry.
Oil pipeline route to be cleared (New Vision)
The long-awaited decision on the environmental and social implications of the proposed East African crude oil pipeline is going to be made in the coming weeks. Dr Tom Okurut, the executive director of the National Environment Management Authority (NEMA), acknowledged that the environmental and social impact assessment (ESIA) of the pipeline has delayed, but pointed out that they are still on track and insisted the process is moving smoothly.
Africa
African Trade Statistics 2020 Yearbook | African Union
Compilation of trade statistics is a high priority for the African Union and its Member States. With the adoption of Agenda 2063 in 2013 and its first ten-year implementation Plan, a number of aspirations, objectives and targets are related to trade. Thus for a successful implementation of Agenda 2063, various trade policies need to be enacted upstream.
Overview
The 55 African Union Member States account for around 3% of world’s trade in goods. During the period 2013-2019, the AU trade annual exports and imports had both first a decreasing trend between 2013 and 2016 and an increasing trend afterwards, with imports exceeding exports over the observed period. Consequently, the trade balance from 2013 up 2019 was negative.
Strengthening intra-African trade is very important for the economic development and integration of the continent. However, the share of Intra-African trade remains low: on average 13% for intra-imports and 20% for intra exports over the period of the last seven years. The value of total intra-African exports decreased and the share of intra-exports trade increased slightly (from 18.2% in 2013 to 19.6% in 2019).
The major player in intra-African trade is South Africa, which share in intra exports varies from 26 to 31% over the period of seven years and is followed by Nigeria (13.9% in 2019) and Democratic Republic of Congo (7% in 2019). South Africa is a leader for intra imports (14%) as well, followed by Namibia (7%) and Botswana (6%)
Extra African trade makes up more than 80% of the total trade. The extra-AU trade balance is negative over the period followed, with an average of 372 billion US dollars for exports and 495 billion US dollars for imports.
African Statistics Day marked across continent (UNECA)
Countries have embarked on national activities in celebration of the African Statistics Day on the theme “Modernizing national statistical systems to provide data and statistics to support sustainable peace and development in Africa”. The Director of the Economic Commission for Africa’s (ECA) African Statistics Centre, Oliver Chinganya, stated: “Digitization of statistical systems and processes, will be key in modernizing national statistical systems to provide data and statistics for decision making timely. The effect of COVID-19 pandemic has demonstrated that there is need to not just strengthen but re-engineer statistical systems and this has to be done now, and the African Statistics Day is the dawn to this change.”
Africa on course to implement AfCFTA: AU official (China.org.cn)
African countries are determined to start trading in line with the African Continental Free Trade Area (AfCFTA) on Jan. 1 next year, said a senior official of the African Union Commission (AUC) on Wednesday. Chief technical adviser and head of the AfCFTA negotiation support unit Prudence Sebahizi made the remarks while addressing the 7th Africa Think Tank Summit. Trudi Hartzenberg, executive director of the Trade Law Centre (tralac) in South Africa said there is so much energy in AfCFTA with increase in countries signing and ratifying the protocol. She stated that African countries have to diversify the productive capacity, improve payment systems and infrastructure to facilitate the implementation of the protocol.
Barine calls for inter-institutional cooperation among African countries ahead of AfCFTA (Ghanaweb)
Kenya’s High Commissioner to Ghana, His Excellency Eliphas Mugendi Barine, has called for inter-institutional collaborations among private sector groups in African countries that would create the synergy necessary to diversify product range to meet the international demand. Speaking on Eye on Port, the Kenyan High Commissioner to Ghana, explained that because the various countries are endowed differently in terms of resource, it is important for private sector groups in African countries to be in close cooperation with their counterparts in other countries to enjoy the full benefits of a liberated market.
Egypt seeks to augment economic cooperation with African countries: Gamea (Daily News Egypt)
MSMEDA Deputy Executive Director Tarek Shash said, on behalf of Minister of Trade and Industry Nevine Gamea, that MSMEDA’s contribution into the launch of the “50 Million African Women Speak Digital Platform” comes in tandem with Egypt’s orientations to reinforce economic cooperation and increase trade exchange with African countries. This comes as a further step to open new potential markets for products of small and medium-sized enterprises (SMEs).
African airlines advised to share basic facilities (The East African)
The African Airlines Association (AFRAA) is urging the continent’s airlines to co-operate and merge operations to fill existing gaps in the sector and build resilience for post-Covid-19 recovery. AFRAA’s secretary-general Abdérahmane Berthé said smaller airlines need to consolidate and share basic facilities while established airlines need to co-operate and code-share to avoid operating in the same routes. “Africa will need to focus on aviation as one of the critical drivers for socio-economic recovery and development. We are conscious of the enabling role that aviation plays in facilitating trade and growing our economies as we collectively navigate these times,” said Ricardo de Abreu, the chief guest and Angola’s Minister for Transport.
Afreximbank’s African Commodity Index declines moderately in Q3-2020 (Afreximbank)
African Export-Import Bank (Afreximbank) has released the Afreximbank African Commodity Index (AACI) for Q3-2020. The composite index fell marginally by 1% quarter-on-quarter (q/q), mainly on account of a pull-back in the energy sub-index. In comparison, the agricultural commodities sub-index rose to become the top performer in the quarter, outstripping gains in base and precious metals. The recurrence of adverse commodity terms of trade shocks has been the bane of African economies, and in tracking the movements in commodity prices the AACI highlights areas requiring pre-emptive measures by the Bank, its key stakeholders and policymakers in its member countries.
SADC records increase in fish production
The Southern African Development Community (SADC) has recorded an increase in aquaculture production which rose to 100,950 tonnes in 2020, from 92,773 tonnes reported in 2019. The fisheries sector in SADC Member States, comprising marine and inland capture fisheries and aquaculture, generates a variety of benefits, including nutrition and food security, livelihoods, employment, exports and foreign currency, and conservation and biodiversity values that are of global significance. As part of the implementation of the SADC Regional Aquaculture Strategy, 12 Member States have implemented national aquaculture programmes in line with the regional strategy, resulting in the increase in aquaculture production.
East and Southern Africa region holds an extraordinary governing Council session (WCO)
Mr. Phodiso Valashia, Commissioner of Customs, Botswana Unified Revenue Service (BURS) and Vice-Chair for the WCO East and Southern Africa (ESA) region, and Dr. Kunio Mikuriya, WCO Secretary General, participated in the ESA Extraordinary Governing Council held virtually on 12 November 2020. He underscored the important work done by the WCO as it continued to assist Customs administrations worldwide during the COVID-19 pandemic by developing guidelines and standards to harmonize Customs procedures and facilitate trade, in addition to the provision of global capacity building support. The Vice-Chair highlighted the part to be played by Customs in accelerating Africa’s market integration and economic development under the African Continental Free Trade Area (AfCFTA), and reiterated the readiness of the region’s Members to play critical supporting roles to this end.
“North Africa is the most impacted sub-region of our continent after Southern Africa, and although most of its countries are not in the low-income category, COVID-19 has made its economies vulnerable. When the G20, OECD, IMF and the World Bank meet next, we want to ask for a substantial package for Africa and make the case together for better market rates for borrowing, including for countries such as Morocco or Egypt who have already gone to the market”. This was stated by the Executive Secretary of the Economic Commission for Africa, Vera Songwe in her remarks at the opening of the 35th meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for North Africa on Tuesday 17 November.
International
SA to participate in G20 Leaders’ Summit (SAnews)
President Cyril Ramaphosa will this weekend lead the South African delegation to the virtual G20 Leaders’ Summit. The G20 Leaders’ Summit is convened by the Kingdom of Saudi Arabia, with a focus on deepening global cooperation around the theme of ‘Realising Opportunities of the 21st Century for All’. The summit will set out to lead international efforts to develop a robust coordinated global response to fight the COVID-19 pandemic, safeguard the global economy and enhance international cooperation.
Opportunities in Egypt: Securing US investments (Al-Ahram Weekly)
According to Sherif Kamel, president of AmCham Egypt, the country is an attractive environment for investors of all nationalities, including US investors. “Egypt is a huge and growing market,” he said. The size of the trade exchange between the two countries last year was $8.6 billion, the largest in Africa, he added. Such opportunities can be further enhanced as the country continues its economic-reform programme, Kamel said. “Through Egypt’s reform programme, we have a higher chance of increasing trade exchange with the US, and I hope there will be greater direct investments, especially in non-oil sectors,” he added.
ICC advocates for sustainable, secure, and inclusive digital policies for all at IGF 2020 (International Chamber of Commerce)
During the first-ever virtual IGF, ICC convened business, government, civil society and the technical community to discuss the most pressing issues related to Internet governance through a series of workshops, high-level sessions, and roundtable discussions. Taking place under the theme of “Internet for human resilience and solidarity,” this year’s IGF developed around four thematic tracks: data, environment, inclusion, and trust.
BRICS countries to step up economic, trade cooperation: MOC (China.org.cn)
BRICS countries have agreed to strengthen economic and trade cooperation in the next five years, according to China’s Ministry of Commerce (MOC).Member countries have decided to improve trade facilitation and are committed to safeguarding the multilateral trading system as part of efforts to enhance anti-pandemic cooperation, said Chen Chao, an official with the MOC. Chen described the consensus as one of the important achievements of the 12th BRICS summit. BRICS countries have formed a strategy for economic partnerships, focusing on three key areas, including trade investment and finance, digital economy and sustainable development.
UK launches export help scheme for Southern African, especially women-owned, firms (Engineering News)
The British government has launched an £8.9-million programme to help businesses in the Southern African Customs Union, plus Mozambique (SACU+M), to enter and grow their export markets. Known as Trade Forward Southern Africa (TFSA), the initiative is part of the UK Prosperity Fund Global Trade Programme, and is especially intended to support women-owned and women-dominated businesses. “This programme aims to help business better understand the new terms of trade under the new UK-[SACU+M] Economic Partnership Agreement,” explained British High Commissioner to South Africa Nigel Casey. “In particular it ensures the private sector and customs and trade facilitation officials have the information and tools they need to manage export and import clearance procedures effectively.”
Bloomberg New Economy Special Report from Bloomberg Economics
This year’s Bloomberg Economics report for the New Economy Forum speaks to the three biggest challenges facing the world today. First, getting well by spurring recovery from the Covid-19 recession. Second, sticking together by guarding against the risk of the U.S. and China decoupling. Third, owning the future. We model GDP growth out to 2050 for the world’s major advanced, emerging, and frontier economies. Starting from that baseline, we explore scenarios for geopolitics, climate change, globalization, and technology, and what megatrends in those areas mean for the size of the global economic pie and how it’s divided up.
US-Africa relations: Biden needs to focus on economic policies and diplomacy rather than China-Africa relations (Daily Maverick)
Over the past four years, the stated aims of the foreign policy of the Donald Trump administration included an “America First” approach to trade and diplomacy. Trump’s Africa strategy not only focused on advancing US economic interests in Africa, but also sought to economically contain China’s impact on the continent. The key focus of the strategy was to counter China’s commercial, security and political influence in Africa, which has been solidified through deepening economic engagement, closer security cooperation and high-profile diplomacy epitomised by the Forum on China-Africa Cooperation (FOCAC). Over the next four years, Biden needs to develop a clear, comprehensive bipartisan long-term vision for its US-Africa policy that is aligned to the African Union’s Agenda 2063.
Table for 10 Billion? Leaders to Unlock More Sustainable and Equitable Food Future (WEF)
The COVID-19 crisis has exacerbated vulnerabilities in food systems – highlighting the insecurity of rural livelihoods, the tragedy of food waste, and stark inequities in access to healthy food. As the global population races to 10 billion, more needs to be done to feed the planet while tackling the environmental impact of agriculture and addressing lack of biodiversity. To mobilize the coordinated and large-scale action needed to support our future, the World Economic Forum and 13 organizations from the public and private sectors have partnered on the Bold Actions for Food as a Force for Good event from 23-24 November 2020.
Under-investment threatens to delay clean energy for poor ‘by decades’ (Reuters)
Investment in providing electricity and clean cooking to hundreds of millions of people is “orders of magnitude” below what is needed to meet a global goal for everyone on the planet to use modern, green energy by 2030, researchers said Thursday. “As we deal with the ongoing challenges of COVID-19, and the ever-growing impacts of climate change, the need for modern, sustainable energy access has never been more important,” said Damilola Ogunbiyi, CEO of Sustainable Energy for All (SEforALL) and co-chair of UN-Energy.
WTO report shows slowdown in G20 trade restrictions as COVID-19 impacts world economy
This 24th WTO Trade Monitoring Report on G20 trade measures was prepared against the backdrop of the COVID-19 pandemic and the human, social and economic toll it continues to exact. The new report reflects more fully the impact the global health crisis has had on trade and trade policy. Although world trade had already been slowing before the pandemic, merchandise exports in nominal USD terms was down 21 per cent in the second quarter of 2020 compared to the previous year, while commercial services exports was down 30 per cent. Of the 133 COVID-19 trade and trade-related measures recorded for G20 economies since the outbreak of the pandemic, 63 per cent were of a trade-facilitating nature and 37 per cent were trade restrictive.
Related News
tralac Daily News
National
President to officially open third SA Investment Conference (SAnews)
President Cyril Ramaphosa will deliver the Opening Address at the third South Africa Investment Conference today, as part of expanding South Africa’s efforts to grow domestic and international investment. In 2018, President Ramaphosa embarked on a R1.2 trillion, at the time, investment drive to stimulate sustainable, equitable and inclusive growth, as the foundation for socio-economic transformation in the country. The 2020 two-day conference, which kicked off on Tuesday, will showcase new investment opportunities for South African and global businesses and for development financing institutions, multilateral development and other institutional investors.
Plea to limit scrap metal exports (The Herald)
The continued exportation of scrap metal is disadvantaging local businesses who need the raw material and industry leaders are lobbying the Government to limit such trade for the benefit of domestic firms. The Confederation of Zimbabwe Industries (CZI) Matabeleland Chapter is lobbying its members for an imminent stakeholder engagement with the Government so as to address the dispute.
Strategy for achieving US$25.3 billion by 2029 under NEDS outlined (Ghanaweb)
The Ghana Export Promotion Authority has outlined an integrated list of 17 existing high performing and industrial priority products that could catapult the projected Non-Traditional Export (NTEs) revenue from the current total earnings of US$2.9 billion to US$25.3 billion by 2029. The move forms part of strategic efforts under the ambitious National Export Development Strategy (NEDS) being implemented by the Authority and key stakeholders that also seeks to energize the private sector to take optimum advantage of the Africa Continental Free Trade Area (AfCFTA).
Ghana’s transit trade creating huge revenue – GSA (Ghanaweb)
Ghana’s transit trade is estimated to generate GHS134 million annually, as revenue for the nation. Ms Benonita Bismarck, Chief Executive Officer of the Ghana Shippers Authority (GSA) who made this known, said transit trade had become a significant component of the country’s economy. Ms Bismarck said the government was working to address the challenges to ensure that the country enormously benefited from transit trade. Mr Isaac Tersiah Ackwerh, Ashanti Regional Manager of GSA, said the use of the country’s ports by landlocked neighbours was bringing tremendous benefits to the country.
FG to establish Infrastructure company for critical investments in projects (Nairametrics)
President Muhammadu Buhari has approved the establishment of an infrastructure company that will be wholly focused on critical infrastructural investments in the country. The Presidency in the tweet post said, “President Buhari has approved the establishment of an Infrastructure Company, wholly focused on critical infrastructural investments in Nigeria. This Infrastructure company will raise funding from Central bank of Nigeria, Nigeria Sovereign Investment Authority, Pension funds, and local and foreign private sector development financiers.”
Ethiopia Achieved Positive Poverty Reduction but Inequalities Persist (World Bank)
Over the last two decades, Ethiopia has registered fast economic growth which has led to significant national poverty reduction. However, there were significant differences in the pace and nature of poverty reduction across Ethiopia’s regions, according to a new World Bank Group rural poverty assessment study. According to the Ethiopia Regional Poverty Report – Promoting Equitable Growth for All Regions, poverty declined at a much faster pace in urban areas than in rural areas.
Africa
UNECA expert highlights importance of digital ID for Africa’s post COVID-19 economy (Biometric Update)
The Lead Advisor for the United Nations Economic Commission for Africa (UNECA’s) Digital Centre of Excellence, Tunde Fafunwa, has explained why African nations must be more intentional about developing digital identity systems especially as they look to rebuild stronger economies in the post-COVID-19 era. Fafunwa made the point in a recent interview he granted to COVID-19 Africa Watch, an initiative of economic think tank Milken Institute. He said for the digital ID dream in Africa to be effectively realized, there is need for political will from governments as well as broad-based consultations and stakeholder collaboration, despite an existing key challenge where about 500 million Africans lack a foundational ID document with which to carry out official transactions.
The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA), in collaboration with the SADC Business Council, organized a virtual Sensitization Forum for the private sector to stimulate discussions and facilitate dialogue on: Post-COVID Recovery Strategies and Regional Integration in Southern Africa: Challenges and Opportunities. In his official opening statement, the Acting Director of SRO-SA, Mr. Sizo Mhlanga alluded to the need for countries to create conditions for the private sector to be more effective drivers of industrialization, economic diversification, trade and investment in the region which would result in reinvigorated economic growth and decent jobs.
Increased liberalization and intra-regional resilience key to aviation recovery in Africa – ICAO SG (TravelDailyNews International)
Speaking at a special online event organized by the African Union (AU) to commemorate the Yamoussoukro Decision, ICAO Secretary General Dr. Fang Liu declared that the recovery of African air services should be encouraged through further liberalization and intra-regional resilience. “Prior to the onset of the pandemic, African aviation was poised to become one of the fastest growing air transport markets in the world,” Dr. Liu said. “To help restore these significant and positive benefits to African prosperity, current priorities should focus on the establishment of effective contingency policies and regulations.”
NUPENG calls on Africa to fast-track industrialisation, economic development (The Eagle Online)
The Nigeria Union of Petroleum and Natural Gas Workers has urged all critical players in the African continent to foster a strong commitment toward supporting Africa’s industrialisation and the implementation of a continental free trade agreement. “The African continent needs to leverage its abundant human and natural resources with creativity and innovation to fast-track industrialisation, economic development and regional integration also with cooperation as well as sincerity of purpose to engender faster collective growth and prosperity,” said NUPENG’s National President, Williams Akporeha and General Secretary, Afolabi Olawale.
Responding to AfCFTA, post-pandemic through SAE (THISDAYLIVE)
Nigeria is systematically and fundamentally responding to new economic challenges through a coordinated revival and expansion of special economic zones (SEZ) across the country. A renewed attention is being paid to the reform of SEZ to cope with demands of post-pandemic recovery and requirements of African Continental Free Trade Area (AFCTA). All stakeholders now accept that Nigeria’s quick gain ahead of the expected AFCTA regime is a revival, reform and expansion of the SEZs.
International
President-Elect Joe Biden expresses admiration for SA in call with President Ramaphosa (IOL)
President-Elect Joe Biden expressed his admiration for what the democratic South Africa has achieved, in a call with President Cyril Ramaphosa on Tuesday, 17 November. The leaders discussed ways to strengthen US-Africa relations and overcome the Covid-19 pandemic. “President Cyril Ramaphosa is hopeful of a strong partnership between the United States and the African continent in promoting peace and stability in international relations and advancing multilateralism,” the Presidency said. “President-Elect Biden and Vice-President-Elect Kamala Harris have identified Africa as a major player in international affairs and in the advancement of multilateralism.”
COVID-19 pandemic exposed fragile global supply chains: South African President Cyril Ramaphosa (Republic World)
The COVID-19 pandemic has exposed the vulnerability of an over-dependence on fragile global supply chains even for basic foods and essential medical products, South African President Cyril Ramaphosa said on Tuesday as he called on the international community to support a comprehensive stimulus package for African countries. Addressing the virtual 12th BRICS summit hosted by Russian President Vladimir Putin, Ramaphosa said the pandemic has taught the world the necessity of strengthening health systems and being prepared for future emergencies of this nature and scale.
Leaders of the BRICS countries adopt the Moscow Declaration of the XII BRICS Summit
President of the Russian Federation, chaired the XII BRICS Summit under the theme “BRICS Partnership for Global Stability, Shared Security and Innovative Growth” via videoconference. The Heads of State and Government of the BRICS countries exchanged opinions on the current state of and prospects for their countries’ cooperation and reviewed the outcomes of the Russian BRICS Chairmanship in 2020. Following the Summit, the Leaders adopted the pdf Moscow Declaration (567 KB) that reflected the consolidated approaches of the BRICS nations to the future development of their association, the pdf Strategy for BRICS Economic Partnership through to 2025 (337 KB) and the BRICS Counter-Terrorism Strategy.
UK-Kenya Economic Development Forum: New UK funding for prosperity (GOV.UK)
The UK and Kenya held the second Economic Development Forum where KES 131 million of new British funding was announced to increase trade and investment opportunities. British High Commissioner to Kenya, Jane Marriott, said: “Today’s Forum is helping our countries trade more, invest more and create more jobs. It builds on the initialling of the UK-Kenya trade agreement earlier this month, which will ensure trade continuity between our countries. I am delighted to see so much momentum to strengthen our economic partnership, and today’s announcement of new UK support for entrepreneurs and businesses shows our deep commitment to building our mutual prosperity.”
Put digital technology to work ‘for those who need it most’: UN Secretary-General (UN News)
While the COVID-19 pandemic has shown the importance of digital technologies and the benefits of connectivity, it has also exacerbated inequalities, including basic online access, UN Secretary-General António Guterres said on Tuesday in a video message to the closing session of the Internet Governance Forum (IGF). ”We urgently need to address the growing digital gender gap and put digital technology to work for those who need it most: the vulnerable, the marginalized, those living in poverty, and people suffering from discrimination of all kinds,” the Secretary-General said.
Tax Revenue in African Countries (Tax Foundation)
The Organisation for Co-operation and Economic Development (OECD) has compiled tax revenue data for countries around the world – including 30 African countries, where tax revenue as a percent of GDP is on average lower than in other regions. On average, this tax-to-GDP ratio for those 30 countries was 16.5 percent, compared to the OECD average of 34.3 percent and the Latin American and Caribbean (LAC) average of 23.1 percent. Taxes on goods and services were on average the greatest source of tax revenue for African countries, at 51.9 percent of total tax revenues in 2018.
New IATA Guidance Prepares for Global Vaccine Distribution (IATA)
The International Air Transport Association (IATA) released guidance to ensure that the air cargo industry is ready to support the large-scale handling, transport and distribution of a COVID-19 vaccine. IATA’s Guidance for Vaccine and Pharmaceutical Logistics and Distribution provides recommendations for governments and the logistics supply chain in preparation for what will be the largest and most complex global logistics operation ever undertaken. “While the immediate challenge is the implementation of COVID-19 testing measures to re-open borders without quarantine, we must be prepared for when a vaccine is ready,” said IATA’s Director General and CEO, Alexandre de Juniac.
New initiatives launched to intensify WTO work on trade and the environment (WTO)
Two proponent groups launched new initiatives to intensify discussions at the WTO on trade and the environment on 17 November, the second day of the WTO’s Trade and Environment Week. The initiatives establish structured discussions on trade and environmental sustainability and an informal dialogue on plastics pollution.
Over the next decade, fast-growing developing nations will contribute to the bulk of the increase in energy consumption. However, the responsibility of adopting sustainable growth does not – and cannot – fall on them alone. A global shift towards more sustainable growth needs innovative and responsive policies that can only be implemented with international cooperation. The COVID-19 pandemic has triggered effects ranging from the economic impact on remittances to the financial endangerment of tourism-dependent small island developing states. It should also serve as a wake-up call to the effects of climate change, which, unlike the current pandemic, is being driven explicitly by human activities.
Related News
tralac Daily News
National
SA Investment Conference gets underway (SAnews)
The first leg of the two-day South Africa Investment Conference will get underway this afternoon at the Sandton Convention Centre. The conference, which is in its third year, aims to attract R1.2 trillion in investments. Since 2018, the conference has secured over R650 billion of investment as leaders from business, government, and the investment community forged relationships and explored ways to reignite growth in South Africa. The 2020 instalment of the Investment Conference comes as countries around the world continue to battle the COVID-19 pandemic with little funds to spare.
Govt, industry sign the sugar master plan (Engineering News)
Trade, Industry and Competition Minister Ebrahim Patel, Agriculture, Land Reform and Rural Development Minister Thoko Didiza and sugar industry stakeholders have signed the Sugar Industry Master Plan. As part of the master plan, industrial users and retailers have agreed to minimum offtake of sugar for a period of three years, with at least 80% of sugar consumption to come from South African farms and millers during the first year, increasing to 95% by 2023.
Kenyan manufacturers to increase production to tap into Africa’s free trade deal (Xinhua)
Kenyan manufacturers are preparing to increase production in order to tap into African Continental Free Trade Agreement (AfCFTA) which kicks off from Jan. 1, 2021, a senior government official said on Monday. Betty Maina, cabinet secretary, ministry of industrialization, trade, and enterprise development told journalists in Nairobi that Kenya is targeting to supply the continent with goods and services that are currently imported from outside Africa. “Our manufacturers are preparing to ramp up production in agro-processing industries to take advantage of liberalized trade in Africa,” Maina said. She added that Kenya is prioritizing the African market because it absorbs most of the country’s processed exports.
Micro-lenders lose Sh1bn in one year (Business Daily)
Kenya’s micro-lenders suffered a Sh1 billion loss in 12 months to June, a 30 percent decline from a Sh0.7 billion last year, a Central Bank of Kenya (CBK) report shows. The 14 micro-finance banks (MFBs), which operate in the regulated space, have been on a loss-making streak since 2015, suffering from high default rates and competition from digital lenders. The small lenders target loans to the ‘bottom of pyramid’, made up of the people most financially affected by the Coronavirus pandemic, making it difficult for their customers to meet repayments against high cost of operations.
Why trade in contraband is a bad recipe for manufacturing sector (Nation)
Manufacturing is one of the pillars of President Uhuru Kenyatta’s Big Four Agenda and has the potential to transform the country’s economy, catapulting industrial growth and creating hundreds of thousands of jobs. However, illicit trade particularly influx of contraband and counterfeits is a huge impediment to the realisation of growth in the goods making sector. Notwithstanding, President Kenyatta’s government has progressively addressed the threat of illicit trade through a multi-agency approach.
Kenya MPs against forced use of SGR to ferry goods (The East African)
Kenyan lawmakers have recommended the removal of the compulsory requirement for the use of the Standard Gauge Railway (SGR) to transport cargo. The government was also advised to consider adjustments to the Railway Development Levy (RDL) as an incentive to use the SGR such as importers paying a preferential RDL of 1.5 percent of the value of their goods. Conversely, importers who choose to use road transport will attract an additional surcharge of 0.3 percent of the value of goods imported, up to a maximum of $138.
Debt weighs down Kenya’s economic growth outlook (Nation)
The swelling public debt, dwindling savings and a plunge in government integrity have weighed down Kenya’s economy over the past decade. The country has been ranked at position 108 out of 167 for economic quality globally, four points down from the number 104 in 2010. This is according to the Legatum Prosperity Index, which measures countries’ changes in prosperity overtime. “While many nations continue to grapple with the social, economic and health impacts of Covid-19, choices need to be made that are likely to have longer-term consequences,” said Dr Stephen Brien, director of policy at the Legatum Institute.
Mnangagwa launches new five-year economic blueprint (New Zimbabwean)
Zimbabwean President Emmerson Mnangagwa on Monday launched the country’s new five-year economic blueprint that is targeting economic growth rate of five percent per annum to catapult the country into an upper middle income economy by 2030. Dubbed the National Development Strategy (NDS), the plan runs from 2021-2025 and succeeds the Transitional Stabilization Program (TSP) which ends this year. Its other objectives are to accelerate economic growth, improve the public sector and strategic infrastructure such as energy, ICT, transport and house delivery, among others.
Maritime stakeholders want political parties to address sector issues (Ghanaweb)
Stakeholders in the Maritime Sector have called on the various political parties to spell out their proposed policies for the sector. They noted that the sector, also known as the blue economy, had more to offer the country but because politicians did not engage sector players in formulating policies, those policies lost their support during implementation. They made the call on Thursday during an open forum organized by the Maritime Courier Publication aimed at giving the various political parties contesting the 2020 election the opportunity to engage the maritime and shipping industry players on their proposed policies.
Horticulture roadmap validated (The Point)
While horticulture holds higher economic prospects relative to other agricultural products, it accounts for only a fraction of the country’s estimated 285, 000 hectares of arable land available for agriculture. Ousman Bojang, director of Trade at the Ministry of Trade, Regional Integration and Employment said the roadmap would promote and sustain market linkages between hotels and farmers. “The roadmap highlights several sets of activities and provide coordinating approach to support horticulture gardens to response to the need of the market which includes constructions of a vegetable center and infrastructure as well as storage facilities,” he stated.
Africa
Africa Industrialisation Week 2020 (UNIDO)
This year’s celebrations present a unique opportunity to consolidate the continent’s vision to build a self-resilient, self-reliant Africa, the Africa We Want, given remarkable political traction on regional economic integration, as confirmed by milestones this far on the trade front through fruition of the Africa Continental Free Trade Area (AfCFTA), a liberal trading regime that will create an enlarged US$3 trillion market, with 1.27 billion consumers.
African countries failing to progress in good governance: report (Yahoo)
Governance progress slowed across Africa for the first time in a decade, even before the coronavirus pandemic hit, with commitment to democracy and civil rights faltering, a major report said Monday. The Mo Ibrahim Index of African Governance, published every two years, gives each country’s government a score according to criteria including anti-corruption measures, protection of civil liberties and caring for the environment. Across Africa, progress in some areas such as economic opportunity has come alongside “worrying declines in participation, rights, inclusion, rule of law and security,” the report said. For the first time, the report looked at new areas such as digital rights and inclusiveness as well as environmental sustainability.
Inaugural Africa Mining Forum digital event kicks off (Miningreview.com)
While the COVID-19 pandemic has caused unprecedented disruption to African mining operations, the inaugural Africa Mining Forum (AMF) digital event, titled The next smart move: COVID-19 recovery plan to stimulate investment into mining exploration in Africa, provides the perfect opportunity for key sector players to engage meaningfully with each other. Hubert Danso, CEO and vice-chairman of Africa Investor, added that the continent’s potential to be a global mining investment haven cannot be disputed given its mineral wealth. “This includes 90% of the world’s platinum and cobalt supply, 50% of the world’s gold supply and 35% uranium…. That said, Africa only received less than one third of the $3 billion exploration investment in 2019. COVID-19 offers a unique opportunity to try different approaches and public-private partnership models to attract mining investment in Africa,” he explained.
The Program for Infrastructure Development Program (PIDA) focal points drawn from African Union Member States, Regional Economic Communities, and continental institutions get together virtually for PIDA Continental Technical Validation Workshop. The workshop presented the progress, outcome, and the draft priority list of projects for the second phase of the PIDA Priority Action Plan (PIDA PAP2) which has entered an active consultation phase in November 2019. Seventy on (71) regional infrastructure projects in the four PIDA sectors – Energy, Transport, Trans-Boundary Water, and ICT – have been prioritized from a long list of over 240 proposed projects. The balance of projects will constitute a reserve list that will serve to replenish the priority list at planned reviews during the 10-year implementation time frame from 2021 to 2030.
AFRAA maps new era for air transport industry in Africa (New Vision)
The African Airlines Association (AFRAA) concluded its 52nd Annual General Assembly on Tuesday with a rallying call for airlines to take specific measures to build resilience and emerge stronger after the crisis. The assembly further called for a multi-sectoral and pragmatic approach by governments and stakeholders to support the recovery of the air transport industry and interrelated sectors such as tourism. The general assembly was held in a virtual format under the theme ‘Redefining Air Transport for a New Era’. In a comprehensive analysis of the industry’s outlook for 2021 and beyond that was presented in AFRAA’s annual report it was noted that recovery of traffic in Africa is expected to start with domestic markets. Intra-African routes are projected to follow suit, while international traffic is expected to take more time to reach pre-crisis levels due to a challenging operating environment.
Angola-Tanzania railway line construction in the offing (Construction Review Online)
Plans are underway for the construction of the “Angola-Tanzania railway line” which will begin from the port of Lobito in the city of Lobito, Angola to connect with the Port of Dar-es-Salaam, in Tanzania. This was revealed by the Angola ambassador to Tanzania, Sandri De Oliveira at the occasion to mark the Central African country’s 45th independence anniversaries held in the capital city of Tanzania. “In order to have the railway link with Tanzania the Angolan government would construct a new railway line into Zambia that would further link to the 1,860 km Tanzania-Zambia Railway (TAZARA),” Ambassador Oliveira said.
Integrate biotechnology into Africa’s agricultural development (IPPMEDIA)
African governments, regional economic communities, and development agencies have been urged to strengthen and harmonize biotechnology policies and biosafety regulations to create an enabling environment for biotechnology development in Africa. It was revealed that less than 30 per cent of African countries have functional biosafety frameworks and the number of biotech products getting to farmers is still very low. Hence, a further call was made to fully integrate biotechnology into Africa’s agricultural development agenda to ensure that food and nutrition security is attained across the continent. These calls to action were made by experts during a continental Consultative Roundtable on Agricultural Biotechnology, Innovation and Emerging Technologies for Africa’s Rural Economic Transformation in October 2020.
North Africa 35th ICSOE to Discuss Conditions for Sound, Post-COVID-19 Recovery in North Africa (UNECA)
The ECA office for North Africa will organise the 35th meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for North Africa on Tuesday 17 November, under the theme: “Recovering from COVID-19: Policies and Strategies for North Africa”. Discussions will build on five webinars held by the office over the last month, and in which participants have discussed issues such as the implementation of Agenda 2030 (SDGs) and Agenda 2063 in North Africa and the impact of the pandemic on the progress being made; North Africa’s economic and structural challenges and the reforms needed to facilitate its economic recovery; the African Continental Free Trade Area (AfCFTA) and how it can help mitigate the impact of the ongoing crisis on member countries’ trade strategies; best practices for job creation and finally how innovation and new technologies can help the sub-region navigate post COVID-19 economic trends.
International
China-Africa relations: Beijing says it will help pay for world’s largest free-trade zone (Korea Times)
China has announced that it will help to finance the development of an Africa-wide free-trade area, which on completion will be the world’s largest, spanning 55 nations with a combined GDP of US$3.4 trillion and about 1.3 billion consumers. Speaking at an event to mark the 20th anniversary of the Forum on China-Africa Cooperation (FOCAC), Thursday, Chinese Foreign Minister Wang Yi said Beijing welcomed the development of the African Continental Free-Trade Area (AfCFTA) and “will provide cash assistance and capacity-building training to its secretariat.”
President Ramaphosa to lead SA delegation at BRICS summit (SAnews)
President Cyril Ramaphosa will lead the South African delegation at the virtual 12th BRICS Summit scheduled for Tuesday. BRICS is an association of five major emerging countries, Brazil, Russia, India, China and South Africa, which together represent about 23% of GDP and 18% of global trade. Russian President Vladimir Putin will chair the 12th BRICS Summit under the theme: “BRICS Partnership for Global Stability, Shared Security and Innovative Growth”. Leaders will be focused on strengthening intra-BRICS relations and mutually beneficial cooperation across the BRICS pillars of cooperation, namely, political and security, economic and finance, social, and people-to-people cooperation.
G-20 not planning to make anti-protectionism pledge at weekend summit (Kyodo News)
The Group of 20 major economies do not plan to make a pledge on fighting protectionism at their summit this weekend, despite the increasing need to promote free trade to prop up the global economy amid the coronavirus pandemic, sources close to the matter said Monday. The G-20 leaders have refrained from vowing to combat protectionism in joint communiques at their summits in the last two years in the face of opposition from the United States. The G-20 nations will also discuss a plan to support developing countries in addressing the pandemic, with measures including providing coronavirus vaccines at lower prices and reducing their debts to help them fund steps to curb infections and ease the economic fallout, according to the sources.
Tensions simmer over EU-Africa trade relations (EURACTIV)
Trade relations are likely to be at the heart of the delayed EU-Africa ‘strategic partnership’, but only if long-standing tensions can be resolved, including different views on the content and form of the future trade partnership. The EU-African Union summit, originally planned for mid-October, was delayed until 2021; officially because of the second wave of the COVID-19 pandemic, but long-standing disagreements are simmering over future trade policy between the two continents. The main demand of African leaders is expected to centre on the continent’s ability to develop local industries and productive capacity to export high-value products rather than raw materials.
Borrowing goes through the roof as EA amasses $73b in external debt (The East African)
Countries in the region have seen increased borrowing over the past decade, amassing $73.8 billion in external debt. The International Debt Statistics 2021 report by the World Bank shows that between 2009 and 2019, countries in the region increased external borrowing by nearly four times, from $19.9 billion to $73.8 billion. During the period, Kenya was the biggest borrower raising the stock of external debt from $8.5 billion to $34.2 billion. “The overhang of debt may slow investment and growth for years to come, a burden on the poor that now needs to be addressed,” said David Malpass, the World Bank Group president.
Chinese influence is assured – how should Africa respond? (African Business Magazine)
The coming decade will see a consolidation of China’s position as the dominant external actor in Africa, but the implications for the continent’s future are still an open question. A major narrative over the first two decades of the 21st century has been the rise of China and its emergence as an influential actor in Africa. That relationship, and China’s activities elsewhere, have faced withering criticism and prompted Africa’s traditional partners, Europe and the US, to reassess their relationship with the continent. Covid-19 has altered that trajectory and global trends are converging now to ensure that the coming decade will see a consolidation of China’s position in Africa as the dominant external actor.
COVID-19 is a ‘wake-up command’ to address Africa’s challenges – Tony Blair (AfDB)
The COVID-19 pandemic has exposed the challenges and opportunities of Africa’s development landscape, former British prime minister Tony Blair said on Monday in a lecture organized by the African Development Institute in Abidjan. “We have the same problems but what we also have is vastly increased urgency… not so much a wake-up call but a wake-up command,” Blair said. The former UK prime minister addressed a virtual audience on the topic Building Back Better in Post COVID-19 Africa: The Role of Technology and Governance, as part of the Kofi A. Annan Lecture Series. Blair, in his first ever virtual lecture, outlined three aspects which in his words would make a big difference to Africa: investing in industrialization, accelerating technological innovations, and building capacity for institutions to get things done
A gender-sensitive sustainable COVID-19 recovery: The role of development finance institutions (ECDPM)
This paper looks at what development finance institutions (DFIs), including multilateral development banks, can do to support a gender-sensitive economic recovery from COVID-19. A sustainable COVID-19 recovery will not happen without a strong gender emphasis, in all its dimensions. DFIs have an important role to play in adopting a gender lens to their operations and incentivising their clients to do the same, seeking synergies with other international and local actors, both public and private. All DFIs should promote women’s access to finance and to sustainable energy and digitalisation and, with a gender lens, provide support to sectors such as health and agriculture and to micro, small and medium-sized enterprises.
IAPH-WPSP Barometer: Upticks in hinterland delays as well as port storage utilization levels for medicines, foodstuffs and consumer goods (World Port Sustainability Program)
The International Association of Ports and Harbors (WPSP) COVID-19 Task Force has released its fourteenth report since April and the initial outbreak of COVID-19 on a global scale. The report, compiled by Professors Theo Notteboom and Thanos Pallis, is based on the comprehensive and complete replies of 73 world ports, which on this occasion has obtained improved responses from Asia and Africa to complement the decent response from the Americas (20.1%) and Europe (41,1%). While global trends have emerged out of the survey responses, regional variations of the impact of the pandemic are prevalent in most findings.
Tanzania dethrones US as Kenya’s tourism top source market (The East African)
Tanzania edged out the US as Kenya’s leading tourism top source market in September buoyed by its lesser Covid-19 lockdown measures, new data shows. Rising virus cases have hampered arrivals from the world’s biggest economy after many countries, including Kenya, categorised US travellers as Covid-19 high-risk. This has forced many of them to either cancel or postpone their trips indefinitely. Latest data from the Tourism Research Institute (TRI) shows the US trailing Tanzania at number three. This is a significant jump from August when the country could not even appear among the top 30 source market of visitors to Kenya.
Global Summit of Development Banks Fails to Learn from Destructive Past (Inter Press Service)
450 public development banks from around the world met for the Finance in Common Summit at the Paris Peace Forum. They gathered to discuss how they can direct their combined investments of over USD 2 trillion – 10% of total investments in the world – “to support the transformation or the global economy” and “build new forms of prosperity that take care of people and the planet.” The very idea of international development finance has to be reshaped under the leadership of communities who have repeatedly called for the lens of collective responsibility and reparations. People who are the purported beneficiaries of development finance have to be the key decision-makers.
New Asian trade bloc could play key role in driving investment (UN News)
A new trade bloc covering a huge swathe of the Asia-Pacific region will play an important role in developing poorer economies and in post-pandemic stimulus, according to a report published on Monday by the UN Conference on Trade and Development (UNCTAD). The Regional Comprehensive Economic Partnership agreement (RCEP) was signed on Sunday by 15 countries including China, Japan, Australia, Vietnam and South Korea, jointly covering a total population of more than 2.3 billion people – five times the size of the European Union.