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Third chapter of SA investment conference gets underway this week (The South African)
President Cyril Ramaphosa will host the third South Africa Investment Conference on Tuesday and Wednesday 17 and 18 November, as part of continuing efforts South Africa’s efforts to grow domestic and international investment and jumpstart the country’s sputtering economy. With South Africa halfway to meeting its target of achieving R1.2 trillion in investments, this year’s SA Investment Conference will not only push for more investment, but will also take stock of the progress in implementation, said Trade, Industry and Competition Minister Ebrahim Patel. The conference programme will also profile the strengths and comparative advantages South Africa offers investors and trade partners in a period of growing African integration through the African Continental Free Trade Area.
Mnangagwa sees signs for economic recovery (The Zimbabwe Mail)
Zimbabwe is on course to an unparalleled economic rebound built on the foundations of Government’s reform programme, which has stabilised the economy over the second half of the year, President Mnangagwa has said. In an address which touched on themes ranging from ruling party ZANU PF party’s internal politics and socio-economic issues, to a specially convened Mashonaland East Provincial Coordinating Committee (PCC) meeting in Marondera yesterday, the President said the country is on firm ground for a rebound.
Importers in Rwanda bank on GPS use (The East African)
Rwandan importers are banking on the use of GPS tracking system starting this month to address delays at the Rusumo border due to Covid-19 restrictions. The system will monitor both trucks and drivers through their mobile phone for potential diversion or stops at non-designated locations as part of measures to curb the spread of Covid-19 along the key import corridor. It is estimated that an average of 150 trucks and tankers use the corridor daily. The Rwanda transporters’ association head Abdou Ndaru said the system has reduced cargo waiting time at the border from two to three days to just four hours.
Sugar tops list of goods most smuggled into Kenya (Business Daily)
Sugar accounts for nearly half of the goods smuggled across Kenya’s porous border points, a new report shows, turning the focus on illicit trading of the sweetener. National Crime Research Centre data shows that 48 per cent of all incidents of smuggling involved sugar with about 789 cases reported over the last year. Other popular products smuggled into the country include alcohol and illicit brews (28 per cent), illegal drugs such as cocaine and heroin (25.2 per cent), cereals (23 per cent), clothes, shoes and handbags (12.8 per cent), charcoal/coal (12 per cent) and wheat and maize flour (11.3 per cent).
Malawi, South Africa sign economic trade agreement: Chakwera grateful to Ramaphosa for hosting him in Pretoria (Malawi Nyasa Times)
Malawian President Lazarus Chakwera has signed a Memorandum of Understanding on Economic Cooperation with South African President Cyril Ramaphosa on the final day of his two-day working visit to the ‘rainbow nation’. “During our bilateral talks, we agreed to enhance our cooperation in various fields of development including trade, health, migration and labour for the mutual benefits of our people…. It is my hope that in future we will sign several MOU’s that strengthen our cooperation through framework of the joint commission of this cooperation,” said Chakwera.
Africa
Only a few states ready for AfCFTA December target (The East African)
Less than six weeks to the start of trading under the African Continental Free Trade Area (AfCFTA) agreement, time is running out for countries to conclude and submit their tariff offers as well as rules of origin, which will govern trade from January 1, 2021. Only 18 out of the continent’s 55 countries have submitted their tariff offers and rules of origin. A number of countries missed the October 30 deadline to submit their tariff concessions, and have until the December 5 African Union summit to do so, officials said. As the continent navigates the Covid-19 storm, experts fear that the outstanding issues – which include schedules of specific commitments on trade in services, in addition to member states not ratifying the agreement – will disrupt trade under the long anticipated AfCFTA.
ECA Calls for Ambition in the AfCFTA at Annual Bank of Namibia Symposium (UNECA)
The Bank of Namibia held its 21st Annual Symposium on 5 November under the theme of ”Positioning Namibia to reap the benefits of the African Continental Free Trade Area.” Representing the United Nations System was the UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), noted that Namibia’s logistics sector is a potential area for entry, providing this service to the entire Continent. The country, she stressed, could leverage technology and undertake work to assess its national competitiveness strategy and strengthen its competitive advantage within the African regional value chain and supply chain.
Regional conference on AfCFTA held in Kumasi (Ghanaweb)
The Chief Executive Officer of the Ghana Export Promotion Authority (GEPA), Dr Afua Asabea Asare, has advised businesses to take advantage of the African Continental Free Trade Area (AfCFTA) agreement to expand their markets and exports to other parts of the continent. She said there was the need for the country to increase its non-traditional exports (NTEs) in order not to overly rely on primary commodities. She said even though the country had enhanced its stature in international trade, the “recent relatively weak performance of the NTEs sector and other externalities in the international trading environment have revealed the risks, weaknesses and uncertainties associated with our over dependence on primary commodity exports and limited product diversification and value addition.”
74 percent of firms unaware of AfCFTA – Business Tracker survey reveals (Ghanaweb)
Barely two months to the start of the African Continental Free Trade Area (AfCFTA), only 26 percent of firms in Ghana are aware of the trade deal, the second wave of the COVID-19 Business Tracker survey has revealed. This means 74 percent of firms are unaware of the AfCFTA. Commenting on the findings, Economic Advisor at the UNDP, Dr Frederick Mugisha said the results gave a sense of what more we need to do so firms benefit from the agreement, which is “to make sure that everybody understands what it is; we need to deliver the AfCFTA the same way we are delivering the SDGs,” he said.
2021-2030 declared decade for Economic Diversification in Central Africa (UNECA)
A timely call to observe the years 2021 to 2030 as The Decade for Economic Diversification in Central Africa has been squarely heeded to by senior state officials across the sub-region led by the Minister of Planning, Statistics and Regional Integration of the Republic of Congo – Ingrid Olga Ghislaine Ebouka-Babackas. The declaration, issued in an address by the Minister and presented by her Chief of Staff Mr. Ferdinand Sosthène Likouka, Thursday, wrapped up the 36th session of the Intergovernmental Committee of Senior Officials and Experts of Central Africa (ICE) which ran from 11 to 12 November 2020. It was held under the theme: “Building skills and competences for economic diversification in Central Africa.”
EAC nations plan joint crackdown on tax evasion (Business Daily)
Tax agencies in the East African Community (EAC) bloc have proposed a joint crackdown on firms evading taxes through cross-border transactions. The heads of seven tax authorities including in Kenya, Tanzania, Uganda, Zanzibar, Rwanda, Burundi and South Sudan said the joint legal framework will curb the tax evasion and profit sharing by rogue multinationals, that are estimated at billions of shillings in illicit finance flows every year.
Africa’s ‘big five’ face 19% fall in oil production as demand slows (IOL)
Global oil demand is estimated never to exceed 2019 levels, with energy markets having reached a tipping point. PricewaterhouseCoopers’ (PwC) Africa Oil & Gas Review 2020 released on Wednesday estimated a 19 percent fall in oil production for the top five African producers: Nigeria, Algeria, Angola, Libya and Egypt. The report underscored the reversal of Africa’s gains during 2020 compared with a year earlier, when mega exploration and development projects were announced. It said the countries could each be facing $20bn (about R310bn) or more in lost export revenue this year.
Mitigating the COVID-19 Fallout in Africa Through Infrastructure Investment (TriplePundit)
The full impact of the COVID-19 pandemic on Africa’s populations and economies has yet to be ascertained. But as the effects unfold, governments, civil society and the private sector can cushion the blow, if they act decisively. Timely deployments of public and private capital into sustainable and long-term investment projects can boost industrialization efforts, generate employment and mitigate the most deadly effect of the virus: poverty. The anticipated decline in African GDP – the first recession in 25 years – is due primarily to restrictions and delays in international trade resulting from the COVID-19 pandemic. The continent’s food import bill is well above US$35 billion and is slated to reach US$110 billion by 2025.
e-Conomy Africa 2020: Africa’s $180 billion Internet economy future
Analysis in a report by Google and IFC, a member of the World Bank Group, finds that Africa’s Internet economy has the potential to reach $180 billion by 2025, accounting for 5.2% of the continent’s gross domestic product (GDP). By 2050, the projected potential contribution could reach $712 billion, 8.5% of the continent’s GDP. Driving this growth is a combination of increased access to faster and better quality Internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant startup ecosystem, and Africa’s commitment to creating the world’s largest single market under the African Continental Free Trade Area.
International
Covid exposes what Africa should do to sustain trade (The Standard)
The Africa Continental Free Trade Area (AfCFTA) Secretariat reports that, for the first time in decades, there has been a contraction of GDP of between 2 to 5 per cent in sub-Saharan Africa. This is directly attributable to the pandemic. The crisis has also triggered a reality check. It has exposed the challenges and inequalities of ‘business as usual’ and magnified the risks inherent in a business model, which often does not have inclusivity and sustainability as priorities. It is now more evident than ever that the way we produce, trade, organise our supply chains, and consume must change if we want to mitigate short-term impacts and better prepare ourselves for future crises while building resilience of our economies.
South Africa association offers UK retailers tips to maximise stone fruit sales (Produce Business UK)
With the ongoing global coronavirus (COVID-19) pandemic, arguably there has never been a more important time for retailers and producers to work together to promote fruit consumption and to encourage shoppers to pursue a healthy diet both in-store and online. Sales of South African stone fruit at UK retail have been performing well in recent years, according to Hortgro, and UK retailers can expect a much better volume of fruit to market this season (November to May), thanks to temperate weather conditions.
Kenya to sign trade deal with UK after London lifts lockdown (Nation)
Kenya and the UK will sign their agreed trade deal once London lifts its Covid-19 lockdown restrictions, officials have said. Ministers attending the joint Economic Development Forum welcomed the agreement in Principle of the UK-Kenya Trade Agreement, marked by the initialling of the text on 3rd November 2020,” said a joint communique. “When, as expected, the agreement enters into effect at the end of 2020, this will secure long-term duty-free and quota-free access to the UK for Kenyan exports and overall trade and economic arrangements,” said Kenyan Trade CS Betty Maina and James Duddridge, UK Minister for Africa in the Foreign, Commonwealth and Development Office.
South Sudan to Use Its First IMF Funding to Stabilize Currency (Bloomberg)
The International Monetary Fund’s first financial assistance to South Sudan since it joined the lender in 2012 will help the East African nation to stabilize the currency after its rapid depreciation. “This facility is given to South Sudan to address a gap, and will be used to address the current challenges we are facing in the market,” Bank of South Sudan Governor Dier Tong Ngor told reporters Sunday. Disbursement of the $52.3 million emergency assistance approved on Nov. 11 will help finance South Sudan’s urgent balance-of-payments needs and contain the fiscal impact of the shock.
Building Forward Together: Financing a Sustainable Recovery for The Future of All (UNECA)
The economic damage to developing economies triggered by COVID-19 can be transformed: from a threat to global growth, into an accelerator of global prosperity. Rapid financial support, developed and deployed in concert between developing countries and the major players of the global economy, public and private, will reinject growth momentum among the world’s fastest growing prior to the pandemic. Emerging and developing economies, excluding China, already account for nearly 40% of global output; restarting these economies will be important for the recovery in the developed world.
Can blockchain make a difference? Africa sees vast monetary potential (Cointelegraph)
As technological innovations continue to spread across Africa, the continent could provide some unique use cases for blockchain technology. Africa has been continually driving innovation in a number of spaces, with mobile payments a prime example of the potential for technology to drastically improve lives. Michelle Chivunga, CEO and founder of digital economy and blockchain solutions group Global Policy House, told Cointelegraph: “Countries in Africa including Ghana are looking into using blockchain for land registry and many countries at digital identity, provenance in supply chains, healthcare and financing. E-commerce and fintech are major drivers of the digital economy in Africa.”
G20 updates
G20 agrees historic debt deal for poorer states hit by Covid-19 (BusinessLIVE)
G20 countries have agreed for the first time on a common framework for restructuring government debt in anticipation of the coronavirus crisis leaving some poorer nations struggling to pay and in need of relief. With the Covid-19 pandemic straining the finances of some developing countries, G20 finance ministers said on Friday that more help is needed than the current temporary debt freeze, which will be extended until June 30 2021.
pdf Extraordinary G20 Finance Ministers and Central Bank Governors’ Meeting Statement (108 KB)
G20 summit this week; expectations of major economic stimulus (The Week)
The upcoming summit of the G20 will be a “milestone”, Saudi Arabia, the chair of the powerful economic bloc, said on Sunday amid mounting expectations of fiscal support, debt reductions and several other monetary measures by the grouping to help the global economy recover from the coronavirus-driven collapse. Saudi Arabia’s Ambassador to India Saud bin Mohammed Al Sati said the virtual summit on November 21-22 will largely focus on addressing the implications of the coronavirus pandemic, future health care plans and steps for reviving the global economy.
Leverage trade finance to safeguard SMEs and power global recovery – ICC
In an open letter, Victor K. Fung (Chairman, Fung Group) and Marcus Wallenberg (Chair, SEB), co-chairs of a high-level advisory group to the International Chamber of Commerce (ICC), have urged G20 leaders to make coordinated interventions to increase the availability of trade-related finance – given that this is a proven low-risk means of providing fresh stimulus to increasingly stretched SMEs. Trade finance underpins somewhere between 80 – 90% of global trade and acts as a vital source of working capital for many SMEs. Recent signals suggest that supply of trade credit to SMEs and emerging markets is at significant risk in response to growing corporate, sovereign and currency risks.
China condemns the blame game COVID-19 during the BRICS Forum (The Washington Newsday)
Beijing denounced the “politicization” of the coronavirus pandemic during a virtual parliamentary BRICS forum and at the same time called for better coordination between Brazil, Russia, India, China and South Africa. “Cooperation between the legislative bodies must be deepened within the BRICS mechanism,” Li Zhanshu, China’s Chairman of the Standing Committee of the National People’s Congress said. “The cooperation mechanism should be perfected and various friendly exchanges between legislators and representatives should be encouraged to further strengthen the BRICS partnership”.
What a Biden win means for Africa
How a Biden presidency could change US relations with the rest of the world (Atlantic Council)
In mere weeks, Joe Biden will stride into the Oval Office. Leaders around the world will have to adapt to a new US administration and its potentially dramatic changes in policy and rhetoric. We asked Atlantic Council experts to preview what Biden’s election means not just for regional heavyweights, but also for smaller nations who could play an outsized role in US foreign policy over the next four years.
Africa: Focus on commercial relationships, conflict risks, and democratic transitions
“Looking at Africa, Biden’s team will see several sets of priority countries: those that are key to improving commercial ties, those that are conflict-prone and could set off further instability, and those undergoing political transitions and where the Biden administration’s attention could contribute to stability and democratic gains,” said Alyssa Harvie, program assistant in the Atlantic Council’s Africa Center; Jordan Wolken, intern in the Africa Center; Vicky Marie Addo-Ashong, intern in the Africa Center
See more news articles from Africa here.
UNCTAD’s Review of Maritime Transport 2020: highlights and figures on Africa (UNCTAD)
COVID-19 has negatively impacted Africa. In the second quarter of 2020, UNCTAD estimated the drop in Africa’s exports at -35% and the drop in imports at -25%. Like in other regions, digitalization is recognized as key to navigating the COVID-19 crisis, hence capacity-building in this area is required. However, a “readiness gap” in the maritime sector’s automation and technology levels puts African countries at a disadvantage. Maritime transport in Africa needs to address challenges facing innovation and technology, infrastructure quality, regulation and governance, human capital and skills, as well as business and investment.
Mining in Africa and beyond: Tracking the great gold rush (The Africa Report)
As demand for gold skyrockets, artisanal mining and smuggling ramps up, financing conflict and corrupt politicians, risking human lives and destroying the environment. The Africa Report tracks the precious mineral on its journey from rebel-controlled areas to jewellery stores across the world. While the coronavirus pandemic pushed up the gold price worldwide, local prices offered from buyers in Africa actually went down, says Joanne Lebert, executive director of IMPACT (formerly Partnership Africa-Canada), which works to improve natural-resource governance. “Transporting gold around the region became harder, and the miners lost out,” says Lebert.
Clock ticks as Brexit trade deal talks resume (LBC)
Talks on a future trading relationship between the UK and European Union post-Brexit continue this week as the clock continues to tick until the end of the transition period. Lord David Frost is in Brussels for another round of negotiations ahead of a European Council video summit on Thursday which has been touted as a deadline for a draft deal. The issues which are still to be ironed out are thought to include the ongoing row over fishing rights, how any deal between the two parties would be governed, and the “level playing field” measures aimed at preventing unfair competition on issues including state subsidies.
New report: Opportunities grow for African IT and business process outsourcing providers (ITC)
National profiles of 11 African countries for information technology and business process management show that emerging firms are poised for growth in a highly competitive digital technology market, according to a new ITC report. African tech firms have played an important role in the transformation of the continent and are well positioned to capitalize on rising demand for digital services. The report provides valuable information that investors, entrepreneurs and governments can use to support this transformation.
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National
Ramaphosa on trade, corruption, and the plan to reduce the gap between black and white South Africans (BusinessTech)
President Cyril Ramaphosa has responded on a number of key issues facing the country, including the introduction of the African Continental Free Trade Area, and the inequality divide between black and white South Africans. In a parliamentary Q&A session on Thursday (12 November), the president was also again questioned on allegations of corruption which have continued to dog government. The AfCFTA will encourage economic diversification, beneficiation of our minerals and resources and value-addition to seize the opportunities arising from an increasingly open African continental market. Ramaphosa said that even prior to the agreement on the AfCFTA, South Africa had already begun implementing an investment-led trade strategy.
Interventions to support SA firms to do business in Africa (SAnews)
President Cyril Ramaphosa says government has put in motion a number of interventions aimed at helping South African companies invest in the continent and participate in the AfCFTA. “We want to ensure that our firms, entrepreneurs, small enterprises and workers benefit from the trading opportunities that will arise as the AfCFTA commences to operate. “Government has a number of interventions to support South Africans that want to trade and do business in other African countries,” he said.
Green industries to aid economic recovery (SAnews)
The Department of Environment, Forestry and Fisheries has published the regulatory framework for Extended Producer Responsibility (EPR) schemes as part of government’s effort to contribute towards the economic recovery plan. “These EPR schemes are part of the Reconstruction and Economic Recovery Plan recently announced by the President as key contributors towards green economy initiatives,” the Minister of Environment, Forestry and Fisheries, Barbara Creecy, said on Thursday.
SA’s unemployment rate jumps to 30.8% in Q3 (Moneyweb)
South Africa’s unemployment rate struck a record high of 30.8% in the third quarter, a big jump from the previous quarter when figures were distorted by lockdown restrictions that prevented people from job-hunting, the statistics agency said on Thursday. Africa’s most industrialised economy has long suffered from extremely high levels of unemployment, trapping millions in poverty and contributing to stark inequalities. Statistics South Africa put the number of unemployed at 6.5 million people in the third quarter, compared to 4.3 million in the previous three months.
Parly to probe gold smuggling (The Herald)
Parliament will soon probe gold smuggling as reports suggest Zimbabwe could be losing millions in foreign currency. Chairman of the Portfolio Committee on Mines and Energy Cde Edmond Mkaratigwa told stakeholders in a meeting to discuss expectations of the mining sector from the 2021 National Budget, which will soon be presented by Finance and Economic Development Minister Professor Mthuli Ncube, that his committee condemned all forms of corruption in the mining sector, including the abuse of the First Family’s name by those involved in corrupt activities.
Nigeria not broke, budget to be passed before end of the year – Budget Office (Nairametrics)
The Director-General of the Budget Office, Mr. Ben Akabueze said he never claimed Nigeria is broke and that his words were taken out of context He made the clarification during an interview on Channels TV on Thursday. Mr Akabueze revealed that the Budget Defence of various Ministries is going well so far as issues are getting resolved and that the 2021 budget will be passed before the end of the year.
Lagos 2020 budget performance improved from 56% to 77% at the end of Q3 (Nairametrics)
Nigeria’s Chief Trade Negotiator for the African Continental Free Trade Area (AfCFTA), Victor Liman, announced that despite Nigeria agreeing to ratify the agreement, our land borders will remain closed until Nigeria can ensure West African neighbors don’t dump substandard goods into the market. Mr. Liman disclosed this in an interview with Arise TV on Thursday that the AfCFTA is a large opportunity for Nigeria as it exposes Nigerian producers to a large market. He added that Nigeria needs to put in place structures to ensure Nigeria remains competitive in the agreement, especially securing the borders.
AfDB, Ugandan Gov’t Agree to Fund MSMEs in the Petroleum Sector (PC Tech Magazine)
The African Development Bank and the Government of Uganda have signed a grant agreement of USD$500,000 to finance Micro, Small and Medium Enterprises (MSMEs) to boost business linkages on the East African Crude Oil Pipeline Technical Assistance project. The project’s overall objective is to help develop capacity of local Uganda MSMEs along the East African crude oil pipeline, by enabling them to access new market opportunities, and building linkages with larger, national, regional and international companies.
Africa
Nigeria has ratified Africa’s historic free trade agreement – but its land borders remain closed (Quartz Africa)
Nigeria has ratified the AfCFTA agreement which will now come into effect on Jan 1 2021. It’s a key move given Nigeria’s status not just as one of the continent’s largest economies but also as its most populous country. “Nigeria’s ratification of the AfCFTA is a welcome development, but the country’s commitment to intra-African trade should also be materialized in reality by the re-opening of its land borders,” says Landry Signé, a Brookings Institution fellow. “Re-opening the borders will send a strong signal about Nigeria’s intentions… to boost intra-African trade.”
African Continental Free Trade Area to be ‘implemented by January’ (BusinessLIVE)
The AfFTA Agreement will be implemented by January 1 2021, according to the secretary-general of the AfCFTA secretariat, Wamkele Mene. He says AfCFTA is the only mechanism at the continent’s disposal to boost its economic recovery after the devastation caused by the pandemic and is an opportunity to establish robust supply and value chains for Africa as well as diversify its productive capacity, particularly from its current overreliance on the export of primary commodities.
Namibia is not ready for AfCFTA – Part I (The Namibian)
SO MUCH has been said on how Namibia could theoretically benefit from the soon-to-be rolled out Africa Continental Free Trade Area, however, no practical assessment has been done on the country’s readiness. However, president of the Chamber of Commerce and Industry Sven Thieme in his presentation at the Bank of Namibia Annual Symposium, said Namibia is not ready to compete with 54 other nations that are targeted by the Africa Continental Free Trade Area (AfCFTA). Thieme said most of Namibia’s strengths are also weaknesses, if not managed appropriately, as “they also create a certain vulnerability that invites exploitation”.
Africa’s success in mobilising power of its youth will deliver AfCFTA promise (UNECA)
The African Continental Free Trade Agreement (AfCFTA) provides a critical opportunity for small and medium-sized enterprises (SMEs), including youth-led enterprises engaged in cross-border trade, to participate in the development of regional value chains, more easily meet the standards of continental markets, and supply inputs to larger companies in their regions, with targeted support. Mr. Adam said in Africa 60 percent of men and 75 percent of women were informally employed, including educated youth.
SADC working towards increasing power generation and transmission
The Southern African Development Community (SADC) continues to seek ways of increasing power generation across the Region to surpass the 3,595 megawatts (MW), out of a targeted 4,000MW, contributed in 2019. Energy is a key enabler of economic development and that is why there has been notable progress across the Region in power generation, and interconnector projects that seek to connect countries to the region’s power pool. Under SADC Vision 2050, the target is that by 2050, the Region would have efficient and effective cross-border infrastructure apparatus, services and networks to support and facilitate deeper regional integration and reduce or avoid transboundary conflicts.
Government reiterates commitment to ECOWAS integration (Ghanaweb)
The government is committed to the regional integration process and the implementation of various protocols and policies to improve the living standards of the people. Mr Charles Owiredu, Deputy Minister of Foreign Affairs and Regional Integration said the government was working to ensure that the country was positioned to access as many benefits as possible. The Deputy Minister noted that despite Ghana’s frontline role within the ECOWAS sub-region, the country was not able to maximize the many opportunities for the benefits of its people.
48th East African Revenue Authorities (EARACGS) Meeting Communique (East African Business Week)
The 48th East African Revenue Authorities Commissioners General meeting was held virtually due to the new working arrangements under the COVID-19 pandemic. It noted that all Revenue Authorities reported declining revenue performance during the period of March to September 2020 due to the COVID-19 pandemic with the greatest decline being registered in May 2020. In the quarter of July to September 2020, the revenue growth in the region ranged from -44.9% to 2.1%. This was unprecedented bearing in mind that the revenues have on average been growing at double digits. The meeting also discussed a number of emerging issues that continue to affect the tax administrations.
Fintech a gateway for Africans to access financial services (Engineering News)
Financial inclusion has been one of Africa’s greatest success stories over the past decade, with more than 470-million mobile money accounts having been created. Kenya-based Cellulant Corporation CEO Ken Njoroge on November 12 said that, with financial technology (fintech) financing of between $5-billion and $6-billion a year, the continent could move past one-billion mobile money users. Mastercard sub-Saharan Africa president Prasad Raghav said the launch and growth of digital financial services had led to an unprecedented increase in the number of people enjoying access to formal financial services.
Tracking tax revenues across 30 African countries (Moneyweb)
Thursday saw the release of Revenue Statistics in Africa 2020 – a report produced by the OECD Centre for Tax Policy and Administration, the African Union Commission and the African Tax Administration Forum – during an international webinar. The report compiles comparable tax revenue and non-tax revenue statistics for the years 1990 to 2018 for 30 countries in Africa, a much-needed resource to inform tax policy analysis and decisions on tax policy. Lower commodity prices, loss of tourism, border closures and lower international trade flows have had a devastating impact on income levels. Much of the socio‑economic progress made over the past 10 years in Africa has been reversed.
International
UNECA pushes for G20, IMF measures to release $500 billion for poorest countries (Reuters)
The UN Economic Commission for Africa urged G20 nations to take measures that could unlock as much as $500 billion (379.2 billion pounds) for the world’s poorest countries and help avoid lasting scars from a prolonged funding gap caused by the COVID-19 pandemic. Published before Friday’s extraordinary Group of 20 meeting, where finance officials expect to complete work on a common framework for dealing with the debt problems of the world’s poorest countries, the plan pushes for four actions to provide immediate relief,
‘Trump is the rupture in US-Africa policy, Biden much more engaged’ (The Africa Report)
The arrival of the Biden administration in the White House will be the opportunity for a reset of USA-Africa policy believes Grant T. Harris, a former Africa advisor for Barack Obama. Harris advised President Barack Obama on Africa policy as Special Assistant to the President and Senior Director for African Affairs at the White House from August 2011 to August 2015. He will be speaking at the Concordia Africa Initiative, the first international forum since the US presidential elections where these issues can be addressed.
There is hope for better Kenya-US relations under Biden rule (The Standard)
The election of Joe Biden as the 46th President of the United States of America has sparked measured optimism of better US engagements abroad. As a gateway to East and Central Africa, Kenya plays a key role as launching pad for corporations and countries keen on economic partnerships with two regions. In July 2020, President Trump and President Uhuru Kenyatta launched negotiations for the first Free Trade Agreement in sub-Saharan Africa. If successfully concluded, the pact would act as a template for similar deals with other African countries while anchoring the much needed shift from aid to trade in Kenya’s relations with the US.
Egypt-UK trade relations witness turning point with approaching Brexit: Trade minister (Ahram Online)
The current phase is a turning point in the history of bilateral relations between Egypt the UK, especially in face of Brexit that paves the way for the UK to establish fresh trade and venture relations across the world, Egypt’s Minister of Trade and Industry Nevin Gamea has said. “Egypt’s government is eager to boost relations with the UK’s business community, by which enhancing the commercial and venture cooperation between the two countries in the coming period. Also, we are looking forward to expanding bilateral cooperation in Africa, especially with the unprecedented political support that Egypt is paying to the continent. This will be a potential that can be tapped for Egypt’s exports to access the African market,” said Gamea.
Paul Akiwumi: Covid-19 and beyond (The Mail & Guardian)
As the world seeks to recover from the Covid-19 pandemic and the ensuing global recession, there is a temptation to prioritise domestic health and economic concerns, especially in advanced economies. But resorting to inward-looking policies or protectionism threatens to leave behind the world’s most vulnerable economies or least-developed countries (LDCs). In responding to the global challenge posed by Covid-19 and building back better for long-term prosperity, the international community must not forget LDCs.
Paul Akiwumi is the director of the United Nations Conference on Trade and Development’s (UNCTAD) Division for Africa and Least Developed Countries
Least developed countries hit hard by trade downturn triggered by COVID-19 pandemic (WTO)
Least developed countries (LDCs) have been hit hard by the downturn in global trade triggered by the COVID-19 pandemic, with LDC merchandise exports declining by 16 per cent during the first half of 2020. The WTO Secretariat reported that the decline in the value of LDC merchandise exports was steeper than the 13 per cent average decline in global exports registered in the first six months of the year. The LDC services sector also took a hit, with preliminary estimates suggesting a drop of close to 40 per cent in the first six months of 2020.
Review of Maritime Transport 2020 (UNCTAD)
The Review of Maritime Transport 2020 provides an update on the latest trends in maritime trade, supply, markets, key performance indicators, and legal and regulatory developments. The global health and economic crisis triggered by the pandemic has upended the landscape for maritime transport and trade and significantly affected growth prospects. UNCTAD projects the volume of international maritime trade to fall by 4.1% in 2020. Amid supply-chain disruptions, demand contractions and global economic uncertainty caused by the pandemic, the global economy was severely affected by a twin supply and demand shock.
FAO’s Food Outlook: Developing countries buoy global food trade
Global trade in food products has proven remarkably resilient during the pandemic, with developing countries even managing to increase export revenues, according to the latest Food Outlook published by the Food and Agriculture Organization of the United Nations (FAO). Data available through June “suggest strong, albeit not complete, resilience of the global food markets to COVID-19 shocks”, the report says in a special feature. “The global food import bill for the whole of 2020 may even exceed that of 2019,” says Josef Schmidhuber. “There is, however, a noticeable shift away from high value food items to staples.”
COVID disruption will ‘pale in comparison’ if world fails to act on climate change, SDGs (UN News)
The fifth anniversary of the Paris Agreement and the adoption of the Sustainable Development Goals (SDGs) “go hand in hand”, Secretary-General António Guterres told a major development bank conference on Thursday. “The decisions we make now will determine the course of the next 30 years and beyond: Emissions must fall by half by 2030 and reach net-zero emissions no later than 2050 to reach the 1.5C goal… If we fail to meet these goals, the disruption to economies, societies and people caused by COVID-19 will pale in comparison to what the climate crisis holds in store”.
OECD and UNDP launch a plan to align global finance with sustainable development (UNDP)
The Organisation for Economic Co-operation and Development (OECD) and the United Nations Development Programme (UNDP) launched a plan today to help public and private actors identify and prioritise investments contributing to the Sustainable Development Goals (SDGs). The OECD-UNDP Framework for SDG Aligned Finance, presented at the Paris Peace Forum, identifies solutions to shift the trillions of dollars available internationally towards more sustainable and resilient investments and to further mobilize investment, especially to least developed countries, small islands developing states, and developing countries.
New report: Making Public Procurement Work for Women (ITC)
There is growing political commitment to increase women’s participation in public procurement tenders, but countries need practical advice on how to go about it. Making Public Procurement Work for Women addresses that challenge. Through this guidebook, the International Trade Centre helps governments identify issues specific to their women-owned businesses, understand policy options and take action. “Governments act as both buyers and advocates to increase women’s participation in public procurement,” said Ms. Pamela Coke-Hamilton, Executive Director of the International Trade Centre.
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Ramaphosa surprises with further easing of Covid-19 restrictions (Moneyweb)
President Cyril Ramaphosa, in a surprise move during his latest address to the nation on the Covid-19 pandemic on Wednesday night, has announced that retail sales of alcohol will be allowed on weekends and that international travel to South Africa will be eased further. The move represents a further “opening up” of the country’s battered economy and will no doubt be hailed by the tourism, hospitality and grocery retail industries, which have voiced increasing unhappiness with the restrictions.
Kenya’s exports to African countries hit pre-COVID-19 level (Xinhua)
Kenya’s exports to African countries have risen to reach pre-COVID-19 levels, with the pandemic seemingly giving the country’s external trade a boost, the central bank said on Wednesday. The exports have been on the rise since April, surging to hit 22.5 billion shillings (about 208 million U.S. dollars) in August, a level last seen in February and March. In 2019, Kenya’s exports to African countries in the first half of the year stood at 1.02 billion dollars, an indication that the country’s trade to the region remains steady in 2020 despite the pandemic.
Truck drivers want Uganda to cut Covid test fees to Sh1,000 (The Star)
Long-distance truck drivers have appealed to the Ugandan government to lower Covid-19 testing fees to Sh1,000. The Sh1,000 fees, they said, will be affordable as they travel across the East African country when their Covid certificates expire. “Reducing the fees will be a good move. Some drivers with no Covid-19 negative certificates get stuck in Uganda for lack of money for testing,” Swaib Abdallah told the Star in Malaba town on Wednesday. Uganda is reported to have argued that it had been overburdened by Kenyan drivers seeking testing services from the Ugandan side of the border in Malaba and Busia, as they avoid long waiting time in Kenya where it would take up to three days before they are tested.
Kaduna Inland Dry Port woos more partners with better service delivery ahead of 2021 (Nairametrics)
The Kaduna Inland Dry Port has emphasized its commitment to ensuring efficient and improved service delivery in 2021. The envisaged improved service entails better services to its clients and wooing more partners in the days ahead. This is according to a report by the Nigerian Television Authority. Speaking to the News Agency of Nigeria in Kaduna State on Wednesday, the Port Manager, Mr. Rotimi Hassan, said, “We want to put the setbacks caused by COVID-19 pandemic behind us and strategize to ensure economic activities pick up beginning from next year.”
Time to operationalise National Ports Authority (Chronicle)
Zimbabwe will re-open its land borders on December 1 to passenger traffic in a phased model starting with private motor vehicles and pedestrians. During the intense lockdowns, only commercial cargo, bodies for burial and diplomats on Government business were allowed access through the borders subject to screening by port health officials. One of the major border posts set to open to passenger traffic is Beitbridge which, under normal circumstances, sees through 8 million people from across Sadc annually and 30 000 at peak daily. Through the Zimbabwe is open for business mantra, the Government has been rolling out a number of initiatives to make travelling and regional, and international trade seamless.
Africa
Finally, Nigeria to ratify the AfCFTA Agreement (African Newspage)
AfCFTA – Covid-19 As a Catalyst for Accelerating Trade and Investment in Africa (AfDB)
Join us on 24 November 2020 to discover the real trade and investment opportunities available through the African Continental Free Trade Area (AfCFTA). The webinar will provide a forum for knowledge-sharing and networking. It will explore crucial policy actions and the scope of investments necessary to mitigate the devastating impact of the COVID-19 pandemic. Expert participants will explore how African countries can transition from aid to trade and become part of the new world order. Trudi Hartzenberg, Executive Director, Trade Law Centre for Southern Africa, will be a speaker.
CEMAC: Many jobs will be lost if the current foreign exchange regulation is applied in the extractive industry, the African Energy Chamber believes (Business in Cameroon)
On November 5, 2020, Abbas Mahamat Tolli (governor of the Bank of Central African States-BEAC) signed a decision extending the deadline for extractive companies to comply with the new foreign exchange regulation by an additional 12 months. Specifically, instead of December 31, 2020, this regulation will be enforced onto oil and mining companies operating in the CEMAC region starting from December 31, 2021.
AfCFTA will boost Kenya cement demand – Bamburi CEO (The Africa Report)
The COVID-19 pandemic has done nothing to derail long-term prospects for Kenya’s per head cement demand to double, Seddiq Hassani, CEO of Bamburi, tells The Africa Report. Kenya needs cement to be able to take advantage of the opportunities arising from the Africa Continental Free Trade Agreement (AfCFTA). Exports such as flowers, tea and food need increased road, rail and port capacity. Housing will also drive cement demand: the International Finance Corporation estimates that Kenya has a housing shortfall of 2m units. “There’s a strong willingness now to develop infrastructure,” says Hassani. Consumption of cement has the potential to triple over the next 15 to 20 years, he adds.
EAC revenue bosses commit to integration, sealing revenue leaks (The Star)
Revenue Authorities from the region have renewed commitment to the East African Community (EAC) integration and curbing of revenue leaks. This is on the back of the Covid-19 pandemic that has hit revenue collection, with all revenue authorities reporting declining performance during the period March to September 2020, with the greatest decline registered in May 2020. “We have also agreed to continue engaging with the EAC Secretariat on the need to establish a Committee on Tax Affairs at the EAC where tax administration matters and other administrative issues not related to customs can be deliberated,” Mburu told journalists after the meeting. The authorities have also committed to fast track the integration of domestic taxes systems in the region.
EALA Trade Committee Discusses Bloc’s Investment Challenges (Taarifa Rwanda)
Members of the East African Legislative Assembly (EALA) Committee on Communication, Trade and Investment on Monday met representatives of EAC department in charge of investments and private sector promotion and discussed strategies, opportunities and challenges for investment in region. Due to the prevalent Covid-19 pandemic that has devastated the bloc member states; the meeting was held by means of video conferencing chaired by Hon Christopher Nduwayo.
East Africa has yet to tap its full maritime potential (ISS Africa)
By not managing and using shared maritime resources, East African states are missing an opportunity to build their economies, create jobs and new industries, and nourish a growing population. Coastal countries account for five of the eight members of the Intergovernmental Authority on Development (IGAD). They have untapped opportunities in the Indian Ocean, Red Sea and Gulf of Aden, three resource-rich and geostrategic waterways which transport billions of dollars of oil, gas and goods.
Export dependence is Sub-Saharan Africa’s poverty achilles heel (BusinessLIVE)
As the world continues to struggle with the myriad social effects of the coronavirus pandemic, leaders are scrambling for solutions to the economic fallout. Economies worldwide have sunk into recession due to sweeping lockdown policies and overall lower consumer and business activity. Why is Sub-Sahara’s future looking so bleak? The answer lies in the rigid markets that distribute these nations’ domestic products. Africa as a whole has an extremely high dependence on exports.
African Trade Policy Centre, SADC Business Council host webinar on Women’s participation in AfCFTA (UNECA)
The African Trade Policy Centre (ATPC) of the Economic Commission for Africa (ECA) in collaboration with the Southern African Development Community (SADC)-Women in Business, and the SADC Business Council is organizing tomorrow a webinar on women’s participation in the African Continental Free Trade Area (AfCFTA).With the theme “Women and private sector engagement in inclusive AfCFTA implementation: Views from SADC”, the webinar will feature panel discussion with public and private sector stakeholders to understand how the implementation of the AfCFTA can support gender equality and women’s economic empowerment from a regional perspective.
A rallying call for upskilling towards sustainable growth in Central Africa (UNECA)
A two-day virtual meeting of the 36th Intergovernmental Committee of Senior Officials and Experts (ICE) for Central Africa kicked off Wednesday with focus on strategies to enhance skills to accelerate economic diversification in the Central African subregion. “Without an efficient and inclusive skills development system, it would be impossible to achieve sustainable, resilient and inclusive economic growth in Central Africa as stipulated in the ‘Douala Consensus,” said Ingrid Olga Ghislaine Ebouka-Babackas, Minister of Planning, Statistics and Regional Integration, Republic of Congo.
Ghana-Nigeria Trade Impasse: Uncovering, Analysing And Proffering Recommendations From Citizens’ Perspective (Modern Ghana)
Civil society actors from both Ghana, Nigeria, and across West Africa convened virtually under the auspices of the West Africa Civil Society Institute’s (WACSI) West Africa Policy Dialogue Series (WACPODiS) to discuss the emerging issues on the Ghana-Nigeria Trade Impasse, the implications for regional integration, and as well proffer recommendations on fostering cordial relations among ECOWAS Member States. The webinar, themed “Ghana-Nigeria Diplomatic Relations: Uncovering, Analysing and Proffering Recommendations from Citizens’ Perspective” held on October 7 2020, provided a neutral ground for civil society actors and technical experts to uncover and discuss the key issues, and getting more clarity on local investment laws.
Banks accelerating digitisation in wake of Covid-19 (African Business Magazine)
Covid-19 has accelerated the move towards full-spectrum digitisation of banking services. While the process has been at an advanced stage in countries like Kenya, other African nations, such as Nigeria, are adapting rapidly, writes Rafiq Raji. Even before the Covid-19 pandemic hit, African banks desired to digitise as much of their operations and services as possible. “African banks’ focus on digitisation started well before the pandemic, reflecting its need to deepen financial inclusion and reach the unbanked,” Constantinos Kypreos, senior vice president and banking analyst at Moody’s tells African Banker.
Aviation in Africa during Covid-19: Call for governments to take action after billions lost (IOL)
The International Air Transport Association (IATA) Director General and CEO Alexandre de Juniac shared his concerns about the state of flying in Africa at the 52nd AFRAA AGA this week. He revealed that aviation numbers in Africa were “staggering”. He said traffic is down 89%, and revenue loses had expected to reach $6-billion. He urged governments on the continent to take action to improve the situation. “The consequences of the breakdown in connectivity are severe. Five million African livelihoods are at risk, and aviation-supported GDP could fall by as much as $37-billion. That’s a 58% fall.”
Africa should harness its natural resources to accelerate sustainable development, the African Development Bank’s Chief Economist and Vice President for Economic Governance and Knowledge Management has said. Rabah Arezki was speaking to policymakers and stakeholders during a two-day inception workshop which began Monday on the Bank’s Financial Modelling for the Extractive Sector (FIMES) project. He urged Africa to build capacity to “negotiate better deals and generate the kind of resources that are needed to finance its development and transformation”.
Chamber’s report plots recovery for continent’s oil, gas industry (Engineering News)
After a year of considerable shock for African energy markets, the African Energy Chamber’s ‘Africa Energy Outlook 2021’ report analyses the upcoming challenges and opportunities arising from a post Covid-19 recovery on the continent. During a webinar launching the report on November 10, the chamber called on all industry stakeholders to work together on a reform agenda to keep Africa’s natural resources competitive and to create more jobs.
International
Continuing the United Kingdom’s trade relationship with Côte d’Ivoire (GOV.UK)
This report explains HM Government’s approach to delivering continuity in the United Kingdom’s trade relationship with Côte d’Ivoire now that the United Kingdom has left the European Union. HM Government expects the United Kingdom-Côte d’Ivoire EPA to support jobs and economic development in Côte d’Ivoire by providing continuity in trading arrangements with the United Kingdom including duty free and quota free United Kingdom market access. This could be of benefit to partner firms producing goods for which the United Kingdom is an important export market.
Unions worry this ‘rushed’ UK trade deal could undermine labour standards in east Africa (Left Foot Forward)
The TUC, Kenyan unions and campaigning groups are concerned that the UK has pressured the Kenyan government into sign a bad trade deal. Negotiations were finalised last week for an agreement that unions say could threaten Kenyan domestic industry, undermine good jobs and create barriers to trade across the East African Community – the regional trade bloc. Kenyan unions say it will undermine regional development plans by picking off one nation at a time, while making countries in the region vulnerable to “international price shocks.” TUC General Secretary Frances O’Grady said unions had been kept in the dark about the UK-Kenya trade talks: “The exclusion of workers’ voices raises the risk that the UK-Kenya trade deal will fail to protect decent jobs, promote gender equality and safeguard workers’ rights and public services.”
Intra-African trade will protect Africa from volatile global markets (The Star)
Trade is often heralded as the most viable route to developmental success in Africa. However, as Africa’s trade capacity has expanded, the dynamics have largely remained the same – with trade outflows heading to advanced economies such as the UK, US and China, and inflows coming from the same advanced economies.
African debt isn’t the problem – the global financial system is (African Business Magazine)
A borrower’s club at macro level based on the principles of microfinance originated by Grameen Bank could give African countries the fiscal space they need in the wake of Covid-19, argues Hannah Ryder. So why is Africa’s spending so limited? The phrase economists like myself use is “fiscal space”. African governments don’t have enough room to spend more – i.e. their fiscal space is limited – for two reasons. The fact is, Covid-19 is exposing the world’s true financial conundrum – a debt deficit, not a debt overload. We must think innovatively to construct long-term solutions that shift the balance in favour of empowering worthwhile borrowers.
Africa Must Introduce Data Protections or Risk a New Form of Colonialism (Foreign Policy)
Africa is ground zero for data colonialism. It is the continent with the largest number of countries; most cultural, linguistic and racial diversity; least connected nations; and its data protection regulations range from limited to nonexistent. Africa has always been a continent rich in natural resources, and, today, the diversity of the continent’s population renders it equally rich in data resources. But Big Tech’s exploitation of this diversity – heralded under the guise of internet-for-all initiatives – actually undermines the data sovereignty of African nations and impedes their ability to develop their own digital economies. That’s hardly a tide that lifts all boats.
New Google-IFC report estimates Africa’s Internet economy could be worth $180 billion by 2025 (IFC)
e-Conomy Africa 2020, a new report released today by Google and the International Finance Corporation (IFC), estimates that Africa’s Internet economy has the potential to reach 5.2% of the continent’s gross domestic product (GDP) by 2025, contributing nearly $180 billion to its economy. The projected potential contribution could reach $712 billion by 2050. Driving this growth is a combination of increased access to faster and better quality Internet connectivity, a rapidly expanding urban population, a growing tech talent pool, a vibrant startup ecosystem, and Africa’s commitment to creating the world’s largest single market under the African Continental Free Trade Area.
COVID-19 cuts global maritime trade, transforms industry (UNCTAD)
Global maritime trade will plunge by 4.1% in 2020 due to the unprecedented disruption caused by COVID-19, UNCTAD estimates in its Review of Maritime Transport 2020, released on 12 November. The report warns that new waves of the pandemic that further disrupt supply chains and economies might cause a steeper decline. The pandemic has sent shockwaves through supply chains, shipping networks and ports, leading to plummeting cargo volumes and foiling growth prospects, it says. “The industry must be a key stakeholder helping adapt ‘just-in-time efficiency’ logistics to ‘just-in-case’ preparedness,” UNCTAD Secretary-General Mukhisa Kituyi said.
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Agri sector predicted to show positive growth (IOL)
Although the agriculture sector was expected to show positive growth next year, the Agribusiness Business Chamber (Agbiz) said this would be at a much lower rate than in 2020. Agbiz chief economist Wandile Sihlobo wrote in the organisation’s agricultural market viewpoint on Monday that the sector’s gross added value for 2020 was forecast at a 10 percent year-on-year expansion. The lower growth rate would primarily be a function of base effects. “The output will most likely be large, all else being equal. The same is true for food price inflation, which we continue to believe won’t exceed 5 percent year-on-year in 2021 from an expected 4.5 percent in 2020 and the actual rate of 3.1 percent in 2019.
Weak demand likely to slow production in the near term (IOL)
Manufacturing output decelerated slower than expected in September, but weak demand is likely to continue to depress near-term factory production, economists said on Monday. Food and beverage manufacturing activity grew by 4.2 percent year on year following five consecutive months of declines. It added 1.2 percent to the top line reading, on account of its substantial and revised 27.14 percent weighting in the manufacturing basket. Textiles, clothing, leather and footwear production also edged up, rising by 1.9 percent year on year following August’s -9.4 percent year on year slide. Statistics South Africa (StatsSA) figures showed the largest negative contributions were by the iron and steel sector (-7.5 percent), motor vehicle and other transport equipment (-12.7 percent), wood, paper, publishing and printing (-7.7 percent), and petroleum, chemicals and plastic products (-1.9 percent).
Govt to provide incentives to mining exploration companies (The New Times)
Rwanda says it has put in place an incentive package that seeks to attract investors to invest in mining exploration activities, part of the drive to strategically reposition the country’s mining sector in the region. “We are excited about a new incentive [package] for exploration companies that gives incentives for a 10 year-loss carry over,” Francis Gatare, the Chief Executive Officer at Rwanda Mines, Gas and Petroleum Board (RMB) said during a press briefing. “This means that companies that invest in initial exploration can carry forward losses or expenses incurred during that period.”
Current account deficit improves due to exports rise (Daily News)
The Tanzania current account improved to a deficit of 671.1million US dollars in the year ending September, which is more than a half of the deficit of 1,839.5 million US dollars registered in the corresponding period last year. According to the Bank of Tanzania (BoT) monthly economic review for October, the improvement of the current account deficit was on account of increase in export of goods and a decrease in imports. During the reference period, the overall balance of payments recorded a deficit of 439.0 million US dollars compared with a deficit of 34.5 million US dollars on account of a relatively low official flows. The export of goods and services amounted to 9,467.9 million US dollars in the year ending September, compared with 9,515.0 million US dollars in the year ending September last year on account of a decline in services receipts.
Kenya commissions railway facility to boost ease of doing business (CGTN Africa)
Kenyan President Uhuru Kenyatta on Tuesday officially commissioned the country’s revamped commuter rail system in efforts to decongest traffic in the capital, Nairobi. The system, which will also feature a new light cargo handling facility, was built to improve the ease of doing business in the country, particularly for small scale traders. “We are also talking about the ease of doing business by our small traders they are our biggest employers and we need to ensure that they are treated fairly, and they are facilitated just like all others are,” President Kenyatta said while commissioning the project.
Uhuru hands traders lifeline in clearance of cargo at railways hub (Business Daily)
Small-scale traders who consolidate their imported cargo will now be able to clear the goods individually at the Nairobi Railway Station, eliminating the need to use costly clearing agents and the Sh100,000 container deposit. The clearing process will be even easier for those with goods of Customs value of $10,000 who can make import declaration on a mobile app while those with goods of Customs value above $10,000 will clear through a registered clearing agent in the Customs system. President Uhuru Kenyatta Tuesday launched the initiative that comprise a new Container Freight Station at the Kenya Railways Corporation transit shade where the consolidated cargo importers will have their goods cleared and released for either rail or road transport to their destinations. The cargo clearance plan is expected to be faster than the initial approach where the consolidated goods were cleared as a single container unit at the Inland Container Depot.
Nigeria: Dangote Refinery, African Free Trade hinge on better roads (The Africa Report)
Dangote Group director Devakumar Edwin spoke to reporters last week about the date petroleum products from the giant project will hit the market. “Middle of next year, we start the commissioning process, and it’s a huge refinery, the commissioning process may take three to four months” COVID-19 and the recent disruption to business caused by protests against police brutality may push that into 2022, says Femi Ademola, executive director at Cordros Capital in Lagos. But unless a planned new coastal road is completed before the refinery starts operation, “moving crude from the ports through the roads may not be efficient,” he says.
Trade-offs will be crucial for a resilient maritime sector amid pandemic (Ghanaweb)
The Coronavirus pandemic has had a disruptive impact on the global supply chain, particularly on the port and shipping business and like all port nations, Ghana has had its fair share of the viral sting. On the global front, the shipping sector’s recovery has been tied to the ongoing reorganisation of economic production system which could push shipping companies to rationalise services on specific routes whilst reinforcing intra-regional maritime transport networks, in the longer term. In Ghana, strict adherence to protocols to curb the virus’ spread had a significant impact on the domestic shipping industry with unprecedented drops in both imports and exports for the first half of the year. Official first-quarter trade figures released by the Ghana Shippers Authority have revealed the severity of the impact of COVID-19 on the country’s maritime sector, with significant declines in all aspects of the business.
80% of businesses project recovery by mid-2021 (Ghanaweb)
A majority of businesses are optimistic of recovery from the devastating effects of the novel coronavirus by the middle of 2021, the latest survey by the Association of Ghana Industries (AGI) has shown. The survey, which was aimed at assessing the impact of COVID-19 on businesses in Ghana, revealed that about 80 percent of firms across the manufacturing, services and construction sectors expect to recover by June 2021. “Government must make a dedicated effort to scale up and ensure policy-driven local content in contracts and procurement across key sectors. This will help stimulate demand for goods and services to speed up recovery while developing local supply chains,” Chief Executive Officer (CEO) of AGI, Mr. Seth Twum-Akwaboah said.
The COVID-19 pandemic is causing the most severe global health and economic crisis in at least seven decades. In Egypt, the disruptions caused by the pandemic started in March 2020, and has since interrupted a period of macroeconomic stability, characterized by relatively high growth, improved fiscal accounts, and a comfortable level of foreign reserves. Going forward, for businesses to expand and create sufficient and high-quality employment opportunities, a three-pronged approach will be necessary: (i) Sustaining macroeconomic stability and overall policy predictability whilst incentivizing domestic savings to finance investments, (ii) Getting the enabling environment right to create attractive opportunities for domestic and foreign investments and (iii) Upgrading human capital and firm capabilities to fast-track the economic transformation process in Egypt and to strengthen the country’s resilience against such severe shocks.
Africa
AfCFTA expects a wave of ratifications following Angola (UNECA)
The African Continental Free Trade Area (AfCFTA) Agreement expects several ratifications from member countries following Angola's deposit of its ratification instrument with the African Union last week. Angola's ratification makes it the 30th country to become a State Party to the AfCFTA Agreement. The Angolan move comes less than two months before trading based on the AfCFTA Agreement is scheduled to start on 1 January 2021, thereby raising hopes that more countries will follow Angola's lead before the end of the year. Angola's ratification was greeted with excitement by the AU Commission, where AUC's Commissioner for Trade Albert Muchanga said: "A new wave has been triggered and we expect more instruments in the coming weeks ahead of the start of trading."
16th CAADP PP to highlight Progress of the Malabo Commitments (IPPMEDIA)
The CAADP PP is an open, African Union (AU) member states-led forum aimed at reflecting on adapting continued learning to changing circumstances, needs and aspirations in the advancement of CAADP’s vision and objectives. The platform also stimulates and facilitates a process of sharing experiences on substantive agricultural transformation issues including policies, institutions, technologies, partnerships and alliances, skills and knowledge. According to the concept note that was made available to the Guardian reads that the proposed theme of the 16th CAADP PP is “Malabo Commitments Five Years on: Translating Lessons Learnt into Accelerated Action towards 2025”. We are midway through the 10-year period of the Malabo declaration and as such we should use the 16th CAADP PP for collective retrospective/retroactive reflection (ex-post)
AUDA-NEPAD and RECs Coordination Mechanism (AUDA-NEPAD)
Challenges and opportunities in the development and implementation of innovative regional response strategies to COVID-19 in Africa are being interrogated by AUDA-NEPAD and Regional Economic Communities (RECs). This is in line with their responsibility for building and strengthening African Union Member States and regional capacity for the implementation of development priorities. AUDA-NEPAD and the RECs are fostering regional support to the most vulnerable countries and strengthening regional mechanisms for disasters, as well as capacitating regional surveillance and early warning systems.
The work of the AUDA-NEPAD and RECs Coordination Mechanism comes in the wake of a call for continued to support to countries in strengthening their health systems in the areas of digital tracking systems, adoption of harmonised regional testing systems for COVID-19, to allow cross border movement and enhance the human capacity to track, test, trace and treat. This support will be aligned under the Africa CDC strategies. Another request is for support in information-sharing, through the promotion of information technologies, experience capitalization across the region and through south/south cooperation and sharing of data amongst regions and Member States.
Continental Body Ranks Rwanda As Leading Country Against #COVID-19 (Taarifa Rwanda)
The African Tax Administration Forum (ATAF) has placed Rwanda at the forefront among countries that put effective COVID-19 tax relief measures in Africa, followed by Lesotho, Uganda, Burkina Faso, Niger, Madagascar, South Africa, Togo, Cameroon, Gambia, Sierra Leone, Zambia, Mauritius, Seychelles, Tanzania, Zimbabwe, Eswatini, Ghana, Angola, Burundi and Namibia. On March 21, 2020, Rwanda took a strong decision to enforce a total lockdown across the country to curtail the spread of COVID-19, a week after the first case of the epidemic was registered in the country. Social and economic activities were halted, except for the essential supply activities including health and food related; with a range of social distancing and hygiene measures were set up, such as hand-washing equipment at agricultural collection centers.
Regional integration: WAEMU Commission reviews reform implementation in Togo and other states (Togo First)
This week, the commission of the West African Economic and Monetary Union (WAEMU) is assessing in Lomé the implementation of political reforms, community projects, and programs in Togo. In comparison to previous years, Togo has significantly improved its ranking under the “Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.
Agriculture in the SADC Region Under Climate Change (ReliefWeb)
The agricultural sector is of major social and economic importance in the SADC region. Several climate hazards including drought, unpredictable and extreme rainfall events, heatwaves and strong winds are adversely affecting the region’s predominantly rainfed (95% of cultivated area) agricultural sector The most common climate hazards that affected the SADC region between 1970 and 2020 were drought and extreme rainfall events. By 2059, it is projected that drought will be a widespread and common occurrence with extreme rainfall events affecting most of the northern areas of the region. Climate hazards impact all actors along the agricultural value chain from pre-production to consumption. These impacts are further complicated by a variety of external trends and drivers of change. To move towards a more resilient agricultural sector there is a need to implement enabling policies and public and private investments, adopt innovative technologies and good agricultural management practices.
AU Statement on AU Vaccines Financing Strategy (EIN News)
His Excellency, President Matamela Cyril Ramaphosa of the Republic of South Africa, and Chairperson of the African Union convened and presided over a teleconference Meeting to discuss Africa’s strategy for financing COVID-19 vaccines on 7th November 2020.
In his opening remarks, His Excellency President Ramaphosa outlined the objective of the Meeting, namely to assess options for acquisitions and financing of COVID-19 vaccines in Africa. While recognizing that the Continent has made remarkable progress in the fight against the COVID-19 pandemic, he noted that Africa needed to urgently implement its vaccine strategy, with a focus on acquisition and financing, in order to fully control the spread of the virus. He stressed that Africa should take appropriate measures, as part of the strategy, to secure timely access to COVID-19 vaccines when they become available. President Ramaphosa further noted that about $12 billion was required, and this was expected to come from three sources: the COVAX Donor Initiative, The World Bank, direct donors, and African Import Export Bank, which has committed to raise up to $5 billion.
International
President Ramaphosa reinforces economic ties with US (SAnews)
President Cyril Ramaphosa has reiterated his commitment to strengthening South Africa’s ties with the United State. Speaking during a virtual business and investment roundtable on Tuesday, President Ramaphosa began by congratulating the Americans for their successful elections held last week, which saw Joe Biden win. The President told delegates that the roundtable is taking place at an important time when both countries have begun the laborious task of rebuilding economies while working to overcome the Coronavirus pandemic. “It is now more important than ever for South Africa and the US to deepen our strategic partnership conducted through a number of political and economic forums,” he said, adding that the United State was South Africa’s third-largest trading partner.
Biden should build on Trump's shaky legacy in Africa - analysts (African Business Magazine)
Joe Biden should build on the shaky foundations laid by four years of Trump administration Africa policy as the continent transitions towards a Continental Free Trade Area, analysts say. “From a commercial point of view the incoming administration should look to build on a lot of Trump’s initiatives. He [Biden] could build on these and give them the strategic direction and resources they need. A lot of these policies had the right idea – they just weren’t executed to full potential.”
Digital trade facilitation for women cross-border traders (UNCTAD)
Digital trade facilitation refers to making full use of information and communications technologies (ICTs) and going paperless for all steps of the cross-border trade process. Facilitating trade using digital solutions particularly benefits to micro, small and medium enterprises (MSMEs) including small cross-border traders – many of them women or women-led businesses – which tend to be overly impacted by cumbersome and lengthy import, export or transit procedures. Additionally, digital trade facilitation can help to mitigate the negative impacts of crises such as the COVID-19 pandemic on them. This article firstly discusses the increasing importance of digital trade facilitation in times of global pandemic. The second section explores key challenges faced by women traders in moving forward with digital trade facilitation. The third section provides recommendations to address these challenges.
Preferential tariffs continue for eligible developing countries (GOV.UK)
British importers will continue to pay zero or reduced tariffs on everyday goods such as clothing and vegetables from the world’s poorest countries now the UK has left the EU, Liz Truss will announce today (Tuesday 10 November). The UK’s Generalised Scheme of Preferences (GSP) will cover all the same countries that are currently eligible for trade preferences under the EU’s GSP, allowing businesses to trade as they do now without disruption. Imports from 47 of the world’s least developed countries, including Bangladesh and Malawi, will not face any tariffs – supporting their economic development through business and trade. Low-income and lower-middle income countries will benefit from lower tariffs compared to the UK Global Tariff.
Financing the reduction of extreme poverty post-Covid-19 (ODI)
The Covid-19 pandemic has wiped out years of progress in ending extreme poverty: we forecast an additional 250 million people in extreme poverty by 2030 and expect that it will take 10 years of economic growth just to bring extreme poverty numbers back to where they were before the crisis. Middle-income countries (MICs) have 100 times more tax than low-income countries (LICs) and could raise a further $1,960 billion, which would cover most of the costs of ending poverty; LICs could only raise another $11 billion and still could not afford even half the costs. If donors better prioritised their aid and met the 0.7% aid target, all LICs could afford at least half the costs.
COVID-19 crisis threatens Sustainable Development Goals financing (OECD)
According to the OECD’s latest Global Outlook on Financing for Sustainable Development, developing countries are facing a shortfall of USD 1.7 trillion in the financing they would need this year to keep them on track for the 2030 Sustainable Development Goals (SDGs), as governments and investors grapple with the health, economic and social impacts of the COVID-19 crisis. The report says developing countries are set to see a USD 700 billion drop in external private finance in 2020 and a gap of USD 1 trillion in public spending on coronavirus recovery measures compared to what is being spent in advanced economies, where governments have a greater capacity to borrow. The drop in private finance comes from a fall in portfolio investments, foreign direct investment and a decline in remittances sent home by migrant workers.
Panelists at the IMC Indo-Africa Summit called for stronger public-private partnerships to close Africa’s infrastructure gap and speed up intra-continental and world trade. The three-day event, which took place virtually from 4 to 6 November, drew lessons from India’s public-private partnership experience, which some speakers described as a good model for Africa. Sanjeev Gupta, Africa Finance Corporation Executive Director for Financial Services, drew attention to the need to develop bankable projects to attract the private sector. “African governments cannot be expected, and are indeed in no position, to take early-stage project risks, although they should be. This risk arguably resides better with the private sector, to better realize commercial aspirations,” Gupta said on Friday, explaining how various fragmented systems in Africa constituted practical challenges. In contrast, India had the benefit of being one country with one set of challenges.
The African oil markets of the People's Republic of China and the continuous daily needs for crude oil (Israel Defense)
In an attempt to position themselves as international players in the global oil and gas market, China's national oil companies are investing heavily in the exploration and production of oil and gas supplies in Africa. Africa is the second largest region in supplying oil and gas to China, after the Middle East, with over 25% of its total imported oil and gas.
"The increase in domestic energy demand has led China to diversify its imports of natural resources and China’s presence has increased significantly in almost 20 African countries," said Coa Chai, an expert at GlobalData. One of China’s largest trading partners is the largest African oil producer, namely Nigeria. Nigeria currently pumps two million oil barrels a day and aims at producing three million barrels a day by the end of 2023. As China's domestic oil production keeps on declining, experts predict that up to 80% of crude oil will be imported over the next 15 years.
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National
Patel expects sharp decline in foreign direct investment in 2021 (IOL)
Trade, Industry and Competition Minister Ebrahim Patel has warned that South Africa’s foreign direct investment will experience a sharp decline next year as the Covid-19 pandemic has driven the appetite for new investments to an all-time low. Patel told a preparatory briefing of the Third South African Investment Conference scheduled for next Wednesday and Thursday that UNCTAD forecasts a drop of about 40 percent in foreign direct investment flows this year, and that the decline would continue even in 2021, only recovering in 2022. He said that the economic outlook was highly uncertain as South Africa was bracing for the next credit ratings downgrade, following a deeper recession, with its growth set to contract by 8.2 percent this year.
Technical Regulation Key In Supporting Local Manufacturing (The Department of Trade Industry and Competition)
Technical regulation is key in supporting local manufacturing. This was the message the came out clearly in the webinar on technical regulations which are essential for local producers who manufacture products for the domestic and international markets. The Chief Director of Industrial Procurement at the dtic, Dr Tebogo Makube, said technical regulation was key in supporting local manufacturing and entrepreneurship. According to Makube, standards, measurements, certifications and other aspects that require regulation are also key in promoting locally produced products and their access to market. He said there was a need to identify gaps in technical regulations and how, through their correct application, the population and the economy can be protected from harmful goods.
Counterfeit goods worth Ksh100 million destroyed in Mombasa (KBC)
The Government has destroyed counterfeit goods worth Ksh100 million in Changamwe Mombasa as it escalates efforts to counter illicit trade. Anti Counterfeit Authority Chairperson Florah Mutahi said among the counterfeits destroyed were goods meant for the fight against COVID-19 pandemic valued at Ksh25 Million confiscated from unscrupulous traders. The Chairperson observed that a study carried out recently revealed electrical goods account for the bigger percentage of counterfeits into the country.
Botswana economy expected to rebound next year (Government of Botswana)
The economy is expected to rebound at 7.7 per cent in 2021 following a contraction of 8.9 per cent this year mainly due to challenges emanating from the COVID-19 pandemic. In his State of the Nation Address November 9, President Dr Mokgweetsi Masisi said this year’s poor economic performance was attributable to decline in sectors such as mining, trade, hotels and restaurants, construction, manufacturing and transport and communications. Mining is projected to grow at a rate of 14.4 per cent, trade, hotels and restaurants at 18.8 per cent while transport and communications is expected to grow at 4.2 per cent.
Museveni Appeals for Open Market for Ugandan Products in Tanzania (The East African)
President Yoweri Museveni of Uganda has appealed to his counterpart John Magufuli of Tanzania to allow Ugandan milk, maize, sugar, bananas and manufactured goods to be sold in Tanzania because "the Ugandan market is not big enough" to absorb the country's produce and products. The country will soon catch up with Tanzania, which recently attained middle income status, he said, adding that Uganda was looking to the region, and Africa in general, to expand the market for its produce and products.
Export Strategy to reverse Ghana’s oil palm export deficit (Ghanaweb)
The Ghana Export Promotion Authority (GEPA) and the Ministry of Trade and Industry have projected that the country would realize a total amount of US$134 million from oil palm export in the next 10 years, to reverse the current deficit in the product’s export. Through the National Export Development Strategy (NEDS) for the country’s non-traditional export sector, the Trade Ministry and GEPA are both ready to promote and support the efforts of companies in the secondary and tertiary processing of palm oil to gain footholds in and expand their share of export markets.
NAFDAC partners MSMEs to grow economy (The Nation)
The National Agency for Food, Drug Administration and Control (NAFDAC) has said it will continue to encourage the Micro, Small, and Medium Enterprises MSMEs in order to harness the potentials of trade and investment for the nation’s economic growth and sustainability. NAFDAC Director General Prof Mojisola Adeyeye made this known at the ‘National Trade and Investment Summit 2020’ held in Lagos, where she reiterated the importance of MSMEs in the development and growth of the nation’s economy.
In Cabo Verde, tourism and trade at a crossroads (Trade 4 Dev News)
In the last few decades, the country has forged a new path with tourism, pushing economic growth in a place with few resources and little wealth. The result has been a move from “least developed country” (LDC) status to “developing” in 2007, a reduction in poverty and, for 2019, an annual growth rate of 5.7%. “For Cabo Verde, 25% of the GDP is tourism, and we depend on it,” said Francisco Martins, National Director for Tourism at the Ministry of Tourism and Transport. “But since COVID, from March nothing has happened, there has been no activity.” The country started to slowly open back up to tourism a few weeks ago, and is moving forward with plans to diversify both its tourism sector and its trade more generally.
Africa
Africa's supply chain remains under pressure despite ease of lockdowns (Bulawayo24 News)
The measures that countries have adopted around the world in response to the COVID-19 pandemic have had an unprecedented effect on trade this year as a result of a unique combination of shocks to both global trade supply and demand. Africa is expected to be severely impacted by this slowdown. According to the latest data published by UNCTAD, in 2017, the share of trade in the continent's GDP was 56 % while the share of its exports to the rest of the world ranged from 80 to 90 %, indicating that the continent is both heavily dependent on trade and, specifically, trading outside of Africa.
Border bottlenecks, crime and humanitarian crisis could destroy Beitbridge border post
While four-day delays at the Beitbridge border post are creating an unhealthy and unsafe environment for transport companies, the biggest loser ultimately is the regional economy. It is estimated that local transport companies will lose R620-million this month, as their trucks sit idle at the Beitbridge border crossing into Zimbabwe. This is according to Mike Fitzmaurice, CEO of the Federation of East and Southern African Road Transport Associations (FESARTA) who used GPS data from Globaltrack to calculate the delays.
The Africa investment protocol: a prickly pear for Africans (Mail & Guardian)
In April the secretariat of the Africa Continental Free Trade Area (AfCFTA) agreement announced that the July 2020 launch would be postponed. The launch is now set for January 2021. Africa needs this agreement to facilitate enhanced intra-Africa and international trade as a cornerstone of the African Union’s Agenda 2063, which should result in the elimination of barriers to the free movement of goods, services and people. The question is: Why were African leaders forging ahead with the AfCFTA in the absence of an agreement on investor protections?
All set for 48th East African Revenue Authorities Commissioners General Assembly (EAC)
The 48th EARACGs meeting to discuss experiences and address challenges facing tax administrations in the region will be held virtually on 11th November, 2020. The meeting themed “Rethink, Restart and Reinvent: Our Road to Recovery”, will concentrate on lessons learnt by the EAC Partner States during the COVID-19 pandemic, and the innovative approaches that will shore up revenue in the region. The meeting is expected to among other discuss the modalities of how to collaborate with the EAC Secretariat to establish a Committee on Tax Affairs at the East African Community (EAC).
Regional events on AfCFTA - National Export Development Strategy begin today in Ashanti (Ghanaweb)
The first of the regional conferences on the implementation of the African Continental Free Trade Area (AfCFTA) Agreement and the National Export Development Strategy will be held from today, November 10 in the Ashanti Regional capital of Kumasi. The conferences are to sensitise relevant stakeholders from the private and public sectors, especially Ghanaian businesses in the various regions, about export development interventions aimed at empowering the private sector. A statement issued by the Public Relations Department of the Ghana Export Promotion Authority said all 15 regional conferences would be held in November.
How intra-African trade is progressing amid the pandemic (BBC News)
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. "For some countries, the tariff revenues they get from trade taxes amounts to 25% or more of their total fiscal tax revenues. The easiest taxes to collect are import duties."
International
EAC partner states get five years to join Kenya-UK trade deal (The East African)
East African Community member states have up to five years to join the UK-Kenya trade agreement due to be signed ahead of the Brexit transitional deadline, officials privy to the draft text say. While Kenya negotiated solely, other East African countries could ride on the deal for the next few years as they figure out whether to enter, based on what parties called “transitional clauses.” These transitional clauses could further discuss variable new issues such as services trade, new technology, and research and innovation, which were lacking under the European Union Economic Partnership Agreements (EPAs).
DDG Wolff: WTO accession is a catalyst for domestic reform and economic growth (WTO)
Speaking on 8 November at the High-Level Regional Dialogue on WTO Accessions for the Arab Region hosted by the Arab Monetary Fund and Islamic Development Bank, Deputy Director-General Alan Wolff said the accession process has served as an effective external anchor for domestic reforms and a catalyst for economic growth. Eight countries in the region are still negotiating their membership terms.
The need to reform the World Trade Organization’s (WTO) agriculture subsidy rules and to clinch a deal that disciplines harmful fisheries subsidies are well known, and the latter agreement is now nearly within striking distance. These are important advances, which can be a boon to addressing long-standing hurdles in the field of sustainable development. As this work continues, WTO members are also debating why it remains so difficult to meet existing requirements to notify government support to their economic sectors – and what more can be done.
Iata head calls for African governments to act to save their airline industries (Engineering News)
Remotely addressing the fifty-second annual general meeting of the African Airlines Association on Monday, International Air Transport Association (Iata) director-general and CEO Alexandre de Juniac highlighted the damage that the continent’s airlines have suffered as a result of travel restrictions imposed to counter the Covid-19 pandemic. He also stressed the danger this posed to African economies and called for the aid announced for the continent’s airlines to be disbursed.
Global Trade Developments: Prospects for Africa [video] (Proshare)
This edition of the Economy and Politics anchored by Ottoabasi Abasiekong captures developments around Global Trade Development and the Prospects for Africa. It highlights the recent elections in the United States of America and the declared winner Senator Joe Biden and how it will shape the face of international trade, the program takes a look at the postponement of the announcement of the new Director General of the WTO and the African Continental Free Trade Agreement and Opportunities for the region.
Ramaphosa to meet with US Chamber of Commerce over investment (BusinessTech)
President Cyril Ramaphosa will participate in a virtual business and investment roundtable on Tuesday (10 November) with representatives from three major business organisations from the United States – the Business Council for International Understanding (BCIU), the Corporate Council on Africa (CCA), and the US Chamber of Commerce. “The roundtable will provide a platform for engagement by 32 companies representing sectors such as healthcare, information communication technology, consumer goods, retail, energy, defence, agro-processing, aviation, space, transportation, film and TV production, finance, and consulting.” Ramaphosa is expected to share South Africa’s economic reconstruction and recovery plan as well as the opportunities for doing business in the country.
What the Biden presidency would mean for Africa (The New Times)
Many prominent media organisations and experts project Joe Biden as the country’s next president. What the world didn’t see and hear during the highly contested presidential election, particularly Africa, is what the new presidency would mean towards Africa-US relations. Critics of the US foreign approach have constantly accused the country of exploiting Africa and pursuing self-interests as opposed to doing genuine business. “But what Africans need from America is not lectures on how they should live their lives; they need a relationship based on trade,” Lonzen Rugira, a political analyst, notes.
Lockdown flies global airlines into turbulence (The East African)
The global airline industry is yet to clear the turbulence caused by the Covid-19 pandemic with prospects of an early recovery crashed by the onset of a second Covid-19 wave in Europe. Many countries that had partially opened up are still maintaining quarantines, severely constraining demand for travel. Although East Africa’s airspace has been open since October 1, capacity restrictions mean that airlines are operating fewer flights.
Inevitable Clash When Climate Meets Trade at the Border (Chatham House)
Trade policy has long included reassuring references to appease environmentalists, including in provisions related to domestic environmental protection and conservation, as well as largely respecting global environmental norms, national policies and processes. But this uneasy peace is likely to be tested sharply by fast-evolving climate policies, with a growing number of jurisdictions setting target dates to become carbon-neutral, using carbon taxes and other market-based measures as well as regulations, standards, and subsidies to get there.
Reversing Setbacks to Poverty Reduction Requires Nations to Work Together for a Resilient Recovery (World Bank)
For almost 25 years, extreme poverty was steadily declining. Now, for the first time in a generation, it is increasing. This setback is largely due to major challenges – COVID-19, conflict, and climate change – facing all countries, but in particular those with large poor populations. A new World Bank report , Poverty and Shared Prosperity 2020, provides recommendations for a complementary two-track approach: responding effectively to the urgent crisis in the short run while continuing to focus on foundational development problems, including conflict and climate change.
Economic Forecasts Turned ‘Upside Down’ by Vaccine News (Bloomberg)
Less than a month ago, the International Monetary Fund downgraded its forecast for world growth in 2021, saying the recovery would be “long, uneven and uncertain.” Now, the possibility of a successful vaccine being manufactured and distributed as soon as early next year may warrant significant revisions to growth projections for as soon as the first quarter. “This is a game changer, this is what we’ve been waiting for since March,” said Torsten Slok, chief economist at private-equity firm Apollo Global Management Inc. “Overall, this will turn all forecast spreadsheets upside down.”
Internet Governance Forum calls for bridging digital divides, harnessing the Internet to support human resilience and build solidarity amid COVID-19 (United Nations Sustainable Development)
Never before has the Internet proven to be such a vital lifeline in maintaining economic and social ties, as the world is battling the COVID-19 pandemic. The high-level segment of the Internet Governance Forum opened today, with participants discussing the critical and central role of the Internet in keeping businesses afloat, maintaining family ties and friendships, and enabling global coordination in the efforts to tackle the pandemic. At the same time, the increased reliance on connectivity must be accompanied by stronger efforts to bridge the alarming digital divide that threatens to leave some people behind economically and socially, the participants stressed.
Renewable power is defying the Covid crisis with record growth this year and next (IEA)
Renewable power is growing robustly around the world this year, contrasting with the sharp declines triggered by the Covid-19 crisis in many other parts of the energy sector such as oil, gas and coal, according to a report from the International Energy Agency (IEA’s) Renewables 2020 report released today. Driven by China and the United States, new additions of renewable power capacity worldwide will increase to a record level of almost 200 gigawatts this year, led by wind, hydropower and solar PV. Wind and solar additions are set to jump by 30% in both the United States and China as developers rush to take advantage of expiring incentives.
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National
Critical shortage of building and construction materials in SA (Moneyweb)
Critical shortages of building and construction materials, including cement, steel, bricks and timber, are suffocating the sector’s recovery from the Covid-19 lockdown and diminishing its impact on the recovery of the economy. David Metelerkamp, senior economist at construction market intelligence firm Industry Insight, said the shortages, if they continue for an extended period of time, have the potential to derail government’s planned massive infrastructure investment plan to stimulate the economy post the Covid-19 lockdown.
Taxman’s bitter pill will be hard to swallow (Mmegi Online)
Following months of signals from authorities such as the Bank of Botswana (BoB) and the Botswana Unified Revenue Service (BURS), the Finance and Economic Development ministry has confirmed that the dreaded increases in certain types of tax will take effect next year. The Budget Strategy Paper, a Finance Ministry blueprint released as part of the budget process each year, indicates that government expects revenues of P58.8 billion in the 2021-2022 financial year, up from P52.3 billion in the current year, which ends on March 30, 2021. The difference, or P6.5 billion, will come from, amongst others, potentially higher mineral revenues as the sector recovers, as well as strong receipts from the Southern African Customs Union (SACU).
Tanzania’s inward-looking policies unlikely to change (The East African)
Last week’s swearing-in ceremony of Tanzania President John Magufuli was attended by several leaders from the Southern African Development Community and only one EAC head of state. However, the country’s inward-looking policies are unlikely to change in the next five years. While Tanzania is a member of both the EAC and SADC, it has been seen to lean strongly towards SADC. “Regional integration does not appear to be a national priority for President Magufuli. He is likely to continue his protectionist tendencies over the next five years thereby slowing down the EAC integration process,” Amukowa Anangwe, a former Kenyan Cabinet minister, added.
Zimbabwe looking underground for golden economic revival (EWN)
Reeling from decades of economic mismanagement, Zimbabwe is banking on gold to shore up revenue and tackle the upshots of rampant hyperinflation, corruption and coronavirus restrictions. Global gold prices have surged more than 30% this year, topping a record $2,000 (1,700 euros) an ounce in August, as the precious metal became a safe haven for investors in the face of COVID-induced volatility. Plans are under way to reap $12 billion (10.2 billion euros) from mining by 2023, mainly through gold.
Public debt to hit Sh7.5trn by June next year, says report (Nation)
The country’s debt stock is expected to hit Sh7.5 trillion by June 2021, according to projections by the Parliamentary Budget Office (PBO). The office warns that given the current and projected expenditure demands, Kenya’s debt stock could reach Sh9.2 trillion in the 2022/23 financial year. The projected increase this year, which is Sh873 billion or 15 percent above the national debt of Sh6.6 trillion as at June 2020, is largely attributed to the impact of low generation of domestic revenue and pressure from expenditure on the ongoing capital projects.
New Normal: Nigeria Trade Policy in Post-COVID Pandemic (Africa International Trade)
In Nigeria, the crisis has triggered severe economic imbalances while the external sector is suffering a major contraction. Just like many other countries, Nigeria’s first measure to contain the spread of the virus was to restrict cross-border movement and labour mobility. The action has consequentially wedged on both domestic and international trade flow. Lending credence to this is a World Bank survey on COVID-19 impact, which estimated that trade is the most affected of all the analysed sectors by the pandemic. This could, however, implies that the trade sector which accounted for 33.0 per cent of Nigeria’s GDP in 2018 and 16 per cent of 2019 GDP is bound to further decrease in 2020 as recent statistic reveals.
Nigeria is broke, borrowing to service debts (The Guardian Nigeria)
Speaking at a two-day National Summit on Tax and Development, organised by ActionAid Nigeria, in Abuja, Onyekpere said continued borrowing to service old debt is grossly inimical to national development, and would only leave behind a bleak future for the younger generation. “Nigeria is broke, which is why we are experiencing all forms of financial crises, such as delayed salary payments, strikes, and other challenges. All that the government is doing is borrowing from Peter to pay Paul,” said Lead Director of the Centre for Social Justice (CSJ), Mr. Eze Onyekpere.
Africa
Development Bank grows value of its assets to more than R100bn (IOL)
The Development Bank of Southern Africa (DBSA) provided R15.4 billion towards social and economic infrastructure projects in its past financial year, and it grew the value of its assets by 12 percent to more than R100bn, chief executive Patrick Dlamini said on Friday. The near doubling of non-performing loans in the year had started to improve, with notably some fragile sub-Saharan African countries again beginning to service their loans, but he said “we are not yet out of the woods”, and risks associated with potential second waves of Covid-19 infections remained.
SADC steps up efforts to exploit its natural gas reserves
The Southern African Development Community is exploring ways of harnessing the potential of the massive reserves of natural gas that exist in the Region following the development of Regional Gas Master Plan which seeks to unlock the potential of gas in Southern Africa. SADC has some of the largest deposits of natural gas in the world and harnessing this would improve the energy situation in the Region and contribute to the regional energy mix, which is dominated by coal.
Africa Investment Forum (AIF) Senior Director Chinelo Anohu on Thursday joined business leaders in a webinar to discuss opportunities for Africa in the wake of the COVID-19 pandemic and how the continent could leverage them to attract investment for development. The panel discussion, organized by the Africa Debate, a flagship event of Invest Africa, a leading investment forum in London, discussed domestic manufacturing as a path to expand intra-continental trade while also reasserting Africa’s position in global markets.
Ghana’s trade negotiation team making moves to include locally assembled vehicles to trade under AfCFTA (MyJoyOnline.com)
Ghana’s trade negotiation team is making effort with the West African sub-region to consider locally assembled vehicles from Ghana into its tariff offer. If accepted, locally assembled vehicles could be part of either the 90 per cent duty-free goods or classified as sensitive with its tariff as other products in that class. With few months to begin the implementation of the Agreement, Ghana is expected to join the Economic Community of West Africa (ECOWAS) in submitting a uniform tariff offer for consideration.
Egypt seeks to increase economic cooperation with COMESA (EgyptToday)
Trade and Industry Minister Nevin Gamea discussed on Sunday with Secretary General of COMESA Chileshe Mpundu Kapwepwe ways of increasing Egypt’s economic cooperation with the grouping. She expressed Egypt’s support of COMESA efforts against coronavirus that negatively affected trade exchange among countries as well as the movement of commodities. She underlined the importance of the electronic platform the ministry set up lately to facilitate trade exchange with the grouping’s states.
COMESA to Construct Border Export Zones for Small Scale Traders
Plans to construct at least six border export zones for Small Scale Cross Border Traders (SSCBTI) are at an advanced stage in the selected sites between Zambia on one hand and Malawi, Zimbabwe, DR Congo and Tanzania. The project is being implemented by COMESA with funding from the European Union under the 2nd European Development Fund (EDF 11). To this effect the COMESA Secretariat has been conducting consultative meetings with stakeholders at the select borders to develop border concept designs for the markets and assessing their specific needs.
National Investment Agencies Receive Support from COMESA RIA Towards COVID 19 Recovery (COMESA)
The COMESA Regional Investment Agency (RIA) has embarked on building the capacities of National Investment Promotion Agencies (NIPAs) in Member States to support investments rebound from the effects of COVID-19. In addition, the initiative is aimed at creating understanding of market conditions and drivers, undertaking financial and economic appraisals of investment projects, packaging investment opportunities and sharing best practices on methods applied by IPAs to proactively market their locations and generate leads
‘A game changer for African trade’ (The Southern Times)
The African Continental Free Trade Area (AfCFTA), which will create a single market of 1,2 billion with a GDP of over US$1,4 trillion, could be the game changer for the region’s drive to spur economic development and enhance livelihoods. Last week, Namibia’s Minister of Trade and Industrialisation Lucia Ipumbu told global delegates to the annual Bank of Namibia Symposium in Windhoek that for the first time ever, African countries had the opportunity to solidify trade between each other.
International
COVID-19: Global trade value chains, taxation and recovery (UNCTAD)
Widespread border closures, travel restrictions and shelter-in-place policies that economies adopted early in the pandemic to slow down the global contagion have disrupted productive activities, with long-term economic consequences. Unsurprisingly, this major global disruption is leading to reduced trade locally, regionally and globally, as supply chains are disrupted, production reduced and other country-specific challenges. Unfortunately, the slow pace of international trade activities also reflects those of domestic economies, marking a missed opportunity on government earnings, especially in developing countries. It is imperative, therefore, that we keep trade flowing.
UK partners Zim to improve exports (The Chronicle)
Zimbabwe is poised for improved export competitiveness in the horticulture sector through scaling up capacity building support for farmers with the aim of alleviating poverty in the country. Executive director of the International Trade Centre (ITC), Pamela Coke-Hamilton, on Thursday launched the United Kingdom Trade Partnerships (UKTP) Programme in Harare. The intervention seeks to assist farmers and producers affected by trade disruptions caused by the Covid-19 pandemic by unlocking the potential of economic partnership agreements with the United Kingdom and the European Union.
Brexit: ‘Significant differences remain’ over trade deal (The Star)
British Prime Minister Boris Johnson yesterday said a trade deal with the European Union was “there to be done”, with its broad outline already “pretty clear”. Following a call with EU Commission President Ursula von der Leyen on Saturday, the PM said progress had been made but there were still issues around the “level playing field” and fishing. Both parties agreed negotiating teams would resume talks in London on Monday. Negotiations aimed at agreeing the new relationship – including a trade deal, but also rules in areas like fishing access, the regulation of medicine, and security co-operation – were always intended to be held after Brexit day and during the transition.
Working group finalises package of declarations and recommendations to assist small business (WTO)
The Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) finalised the technical work on a package of six recommendations and declarations aimed at facilitating the participation of smaller businesses in international trade at its meeting on 5 November. This package will be officially endorsed in December this year.
WTO members have ensured support for Okonjo-Iweala’s candidacy – Garba Shehu (Nairametrics)
Former Vice President of Nigeria, Atiku Abubakar, has urged the US President-elect, Joe Biden, to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for integration with the African Continental Free Trade Area (AfCFTA). “Not only do I congratulate you on your victory, but I also urge you to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for seamless interplay with the African Continental Free Trade Area (ACFTA).
Africa’s response to Joe Biden’s US presidential election win
A selection of news articles
How African leaders have reacted to Joe Biden victory (Africanews)
African leaders have congratulated US president-elect Joe Biden on his victory, expressing hope that ties will be restored between the continent and the US, following the rule of President Donald Trump. Nigeria’s President Muhammadu Buhari also congratulated Biden “on his election at a time of uncertainty and fear in world affairs.”
What US election outcome means for East Africa (The East African)
Like Obama before, the Trump administration maintained the Bush-era African Growth and Opportunity Act (Agoa) which allows duty- and quota-free exports from eligible countries into the U.S. But in 2018 Trump suspended Rwanda from Agoa in a dispute over the East African country’s ban on the import of second-hand clothes. Earlier this year the United States and Kenya launched negotiations for a Free Trade Agreement (FTA), which are likely to continue regardless of the outcome of the White House race.
Biden should widen the AGOA for integration with the AfCFTA – Atiku (Nairametrics)
Former Vice President of Nigeria, Atiku Abubakar, has urged the US President-elect, Joe Biden, to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for integration with the African Continental Free Trade Area (AfCFTA). “Not only do I congratulate you on your victory, but I also urge you to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for seamless interplay with the African Continental Free Trade Area (ACFTA).
Biden won. What does that mean for Kenya? (The Standard)
AGOA was signed by US President Bill Clinton as a 15-year trade pact allowing exporters from Africa and several other developing countries duty-free access to the US market. Currently, there are negotiations for a Free Trade Agreement (FTA) between Kenya and the US which look likely to continue during Biden’s rule.
Biden’s election is a reminder that democracy is the best form of government – Buhari (Nairametrics)
Former Vice President of Nigeria, Atiku Abubakar, has urged the US President-elect, Joe Biden, to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for integration with the African Continental Free Trade Area (AfCFTA). “Not only do I congratulate you on your victory, but I also urge you to build on US-Nigeria relations, especially on widening the African Growth and Opportunity Act (AGOA) for seamless interplay with the African Continental Free Trade Area (ACFTA).
Kagame congratulates US President-elect Biden (The New Times)
“President Kagame and the Government of Rwanda congratulate U.S. President-elect @JoeBiden and Vice President-elect @KamalaHarris,” the President’s Office said in a tweet on Sunday. President Paul Kagame on Sunday joined world leaders to congratulate the United States President-elect Joe Biden on his victory, and his Vice President-elect Kamala Harris.
Congratulatory message on victory of President-elect Joseph Biden of the United States of America (The Presidency)
On behalf of the Government and people of South Africa, President Cyril Ramaphosa has extended congratulations to President-elect Joseph R. Biden of the United States following elections held on 03 November 2020. South Africa and the United States enjoy historic relations. The United States contributed to the liberation struggle in South Africa and continued to provide support to help consolidate
A Biden administration favours South Africa (News24)
Analysts believe that Africa, and in particular South Africa, can look forward to better relations with the US under the Biden administration, as his predecessor Donald Trump had no desire in strengthening ties in Africa. With Joe Biden clinching the election to become the US’s 46th president, South Africa can look forward to better relations, but the new president elect first needs to place his focus on home.
Now begins undoing of Trump’s prejudice – Mandela Foundation on US elections (EWN)
The foundation congratulated Biden and his Vice-President Kamala Harris on what “has been a successful but punishing election campaign”. The foundation congratulated Joe Biden and his Vice-President Kamala Harris on what “has been a successful but punishing election campaign”.
Biden’s victory a breath of fresh air, says group (Vanguard)
“The Democratic process of the United States of America on the just concluded presidential election that declared Biden as winner is a demonstration of the will of the American people and we congratulate him and his Vice President elect. A political pressure group, Tinubu Solidarity Vanguard, has commended the American people and government on the recent victory of Mr Joe Biden in the presidential election, describing it as “a breath of fresh air.”
Joe Biden wins White House, ending Trump presidency (Business Daily)
Trump had no immediate reaction to the announcement, but as Biden’s lead grew during vote counts since Tuesday’s election, the Republican president lashed out with unsubstantiated claims of fraud and claimed, falsely, that he had won. Biden secured his win by recapturing the Midwestern states of Pennsylvania, Michigan and Wisconsin -- traditional Democratic territory that Trump had flipped in 2016 with his powerful appeal to white, working class voters.
Kenya’s long wish list as Trump era nears an end (The Star)
Kenya’s economy is expected to calm under US President-elect Joe Biden’s administration, a relief from the volatilities arising from trade wars orchestrated by Donald Trump’s four years. Biden’s election to the White House is expected to wipe out those volatilities to the benefit of import-dependent countries like Kenya.
End plastic waste trade for a healthier future (Bangkok Post)
New trade deals heighten fears that countries in Africa and small island developing states may become the world’s next dumping ground for plastic waste. Unless we address this crisis, the trade in plastic waste will increasingly harm people in low and middle-income countries. Only 9% of plastic waste is recycled. Yet production is set to quadruple by 2050 from 2016 levels as companies seek to expand the plastics market into low and middle-income countries.
Climate Finance Provided and Mobilised by Developed Countries in 2013-18 (OECD)
This report is an update with 2018 figures to the previous publication Climate Finance Provided and Mobilised by Developed Countries in 2013-17. It provides insights on the evolution of the following four components of climate finance over the period of 2013-2018: bilateral public climate finance, multilateral climate finance (attributed to developed countries), climate-related officially supported export credits, and private finance mobilised by developed countries public finance interventions.
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DTIC reiterates importance of quality standards in South Africa (Engineering News)
The Department of Trade, Industry and Competition (DTIC) has reiterated the importance of adhering to institutional and technical standards as a means of boosting localisation in South Africa. In so doing, the manufacturing sector’s contribution to the country’s gross domestic product (GDP) will improve to levels higher than the current 13%, a DTIC representative said. Historically, South Africa’s manufacturing sector contributed more than 20% to GDP.
Proposed chrome export tax: Report highlights the risks and pitfalls (Daily Maverick)
A recent proposal by the South African government to impose an export tax on chrome ore could hit the industry hard and backfire, according to a report prepared for domestic producers. The proposed tax, which was announced in a Cabinet statement on 21 October, took the industry by surprise. Ostensibly, it is aimed at supporting “domestic ferrochrome production and its chrome value chain sector”.
African informal sector is disproportionate (Engineering News)
The informal employment sector within Africa is diverse and presents a range of challenges, notably with a higher percentage of women being employed and a correlation between the informal sector and skills, Ghana-based African Centre for Economic Transformation (ACET) research and policy engagements senior director Dr Edward Brown said during a November 5 webinar discussion on emerging enterprises and economic inclusion. Brown noted that there was a trend towards countries with a higher share of informal employment also having a higher share of an informal type of economy in their gross domestic product makeup.
Namibia to create national strategy for the effective implementation of the African Free Trade Area (Namibia Economist)
The country is in the process of developing a national strategy that will steer the implementation of the African Continental Free Trade Area (AfCFTA) and enhance Namibia’s ability to achieve sustainable and inclusive export-led growth and exploit the opportunities offered by the agreement. This was announced by the Minister of Industrialisation and Trade, Lucia Iipumbu at the official opening of the Bank of Namibia’s 21st Annual Symposium on 05 November. The strategy will ascertain the measures and capacities required to take full advantage of markets within the context of the agreement, while providing the private sector with important entry points into the regional markets as well as alert the state to the required support to stakeholders.
Private sector awaits recovery, loses confidence (The Namibian)
Money extended to both businesses and consumers for investment and consumption has reached its lowest level since 2006. This indicates low confidence in the country’s economic outlook and policy interventions. The Bank of Namibia’s latest statistics show that private sector credit extension (PSCE) continues to drop, and contracted by 0,8 percentage points month-on-month to 1,8% in September this year – from 2,6 percentage points in August. Compared to the same time last year, money extended to the private sector stood at 6,5%.
Zim projects jump in exports despite COVID-19 (The Southern Times)
Zimbabwe’s Foreign Affairs and International Trade Minister, Dr Sibusiso Moyo, says the country’s exports will this year likely grow by five percent despite disturbances to business caused by the COVID-19 pandemic. “Although this is less than the target of 10 percent which we set ourselves at the launch of the National Trade Strategy towards the end of last year, it is still a significant achievement, especially given the massive impact Covid-19 related restrictions have had upon global trade, both supply and demand,” he said.
Zim to benefit from Maputo port – envoy (The Herald)
Efforts by DP World Maputo Port to ramp up capacity to handle huge amounts of cargo will see increased trade volumes on the North-South Corridor, which will benefit Zimbabwe as the country expedites the opening of a dry port at Rutenga, Zimbabwe’s Ambassador to Mozambique, Douglas Nyikayaramba, has said. The Rutenga dry port aims to decongest Beitbridge Border Post and quicken human traffic and land cargo movement as part of efforts to meet Vision 2030 targets. The North-South Corridor is expected to ensure easy border crossing for both people and goods and increase the efficiency and capacity of the transport sector to speed up regional integration and increase trade.
Kenya develops integrated marketing strategy to boost horticulture sector (The Standard)
Kenya has developed a one-year marketing strategy for its horticulture products targeting the European Union, United Kingdom, Australia, United Arab Emirates, Russia, China, and United States towards achieving a 10 per cent export growth in 2020-2021. The Integrated Marketing Communication Strategy (IMC) between Kenya Export Promotion and Branding Agency and the horticultural sector will work towards achieving a coordinated communication programme that is customer-focused and consistent towards achieving a competitive advantage for the horticultural produce.
Tanzania Finalizing Permit For its First Rare-Earth Metals Mine (BloombergQuint)
Tanzania is in the final stages of approving a permit for the country’s first rare earths mine to Australian company Peak Resources Ltd. as the government seeks a bigger share of revenue from natural resources. The state is also finalizing a gold-mining license for another Australian company, OreCorp Ltd. at the Nyanzaga project in the northwest of the country, according to Mining Minister Doto Biteko. Tanzania is Africa’s fourth-biggest producer of the precious metal and plans to increase mineral earnings by at least a third during the next three years. It also has vast deposits of coal, rare-earth metals, iron ore and gemstones.
Aviation outlay to spur trade, tourism (Daily News)
Tanzania’s aviation industry is of critical importance to the economic development of the country and to strategic economic sectors like tourism and trade. Air transport is the preferred method of access to Tanzania for international visitors and, therefore, the sector has proven to be both important and heavily relied upon. Dr John Magufuli said his government intends to create a stronger national flag carrier by purchasing five new aircraft. He added that the government will also strengthen the National Institute of Transport (NIT) to enable it produce aviation experts in different transport cadres.
Uganda’s export earnings from Rwanda fall to an all time low (Daily Monitor)
Uganda’s export receipts from Rwanda have fallen to an all-time low, demonstrating the impact that the closure of the country’s border has had on trade between the two countries. Some of Rwanda’s border points have been closed to Uganda for almost 21 months now with negotiations to reopen them ongoing. In the period between August 2019 and August 2020, cumulative export earnings from Rwanda, according to Bank of Uganda, fell to just $5.1m (Shs19.2b) from $131.8m (Shs494b) in the same period between August 2018 and August 2019.
In Uganda, a government suspension results in a $10M loss for GiveDirectly (Devex)
In the midst of an investigation and indefinite suspension by a Ugandan government regulator, the U.S. Agency for International Development was forced to terminate a nearly $10 million direct cash assistance program run through GiveDirectly, the largest nonprofit providing cash transfers globally. The program, launched in August in partnership with the Ugandan government, was part of the national COVID-19 response, intended to support those who lost income as a result of the pandemic and who are at risk of food insecurity.
Uganda Set for Digital Transformation to Streamline Microfinance Supervision and Regulation Processes (East African Business Week)
NRD Companies, together with the partner Private Sector Foundation Uganda, has prepared a digital transformation plan aimed at streamlining microfinance supervision and regulation processes for Uganda Microfinance Regulatory Authority (UMRA). The plan has been prepared under the project dedicated to the support of institutional capacity building in the field of consumer rights in East African countries. The plan comes as a strategic high-level planning document intended to ensure that the long-term goals of digitization are achieved.
Digital inclusion gateway to Digital Nigeria – NITDA DG (Vanguard)
The Director-General of National Information Technology Development Agency (NITDA), Mallam Kashifu Abdullahi says NITDA is taking advantage of the spread of existing infrastructure across the country to accelerate digital inclusion. He said the focus is on skills rather than degrees to progressively increase the contribution of digital technologies to the economy. The DG said this at the inaugural virtual Digital PayExpo and conference 2020 to mark its 20th Anniversary with the theme: “Emerging Technologies and the National Digital Economy Plan”.
Ethiopia joint venture embarks on saving 2.5m jobs in textile industry (The East African)
The UK, Germany and Ethiopia have set up a fund that could save thousands of jobs in the eastern Africa country’s textile and garments industry, while helping to support the country’s economic recovery from Covid-19. With $6.5 million invested at launch on October 29, the partnership aims to help safeguard a critical industry and protect livelihoods of workers. The funding will kick start the facility and the partnership may expand its reach through additional support in the coming months.
Ghana’s textiles, garments industry get boost (Ghanaweb)
Ghana’s textiles and garments industry are set for exponential growth, thanks to renewed attention and support from the Ghana Investment Promotion Centre (GIPC) and the Ministry of Trade and Industry (MoTI). At the first-ever garment and textiles investment meeting held by the GIPC in Accra yesterday, CEO of the GIPC, Mr Yofi Grant said the time was long overdue for Ghana to take advantage of the global garments market. “Our plan has begun with a forum that assembles stakeholders to talk to each other exploit avenues for partnerships and then we at GIPC support them to reach the global market.”
Africa
Mombasa mega gas terminal to ease prices in upgrade (Business Daily)
Supply of cooking gas is set to increase following the upgrade of an import handling and storage terminal in Mombasa, setting the stage for a further drop in the cost of the commodity. Africa Gas and Oil Ltd (AGOL) will have a storage capacity of 25,000 tonnes of liquefied petroleum gas (LPG) from March when the upgrade of the facility initially built in 2013 is complete. “The infrastructure investments will play a key role in boosting supply and lowering LPG prices. Previously, investment in import handling and storage was the key missing ingredient in the sector which had suffered decades of under supply, poor storage and weak distribution at the port of Mombasa,” said AGOL in a statement.
AfCFTA: Improving guidance on standards can make Nigeria a beneficiary – Trade Minister (Nairametrics)
The Minister of Industry, Trade and Investment, Mr. Adeniyi Adebayo, says that improving guidance on quality and standards, leveraging technology, organization design, and optimization can make Nigeria a net beneficiary of the Africa Continental Free Trade Area (AfCFTA). The Minister disclosed this on Wednesday while giving his remarks at the virtual annual conference of the Institute of Directors (IOD), where he was the Guest of Honour.
Nigerian lawmakers shun ECOWAS meeting AfCFTA, border closure (Vanguard)
Lawmakers from Nigeria are conspicuously absent at the ongoing meeting of the ECOWAS Parliament to discuss the impact of the coronavirus on the takeoff date of the Africa Continental Free Trade Area (AfCFTA) Agreement next year. “The obstacles that African countries face in entering industrial value chains are: difficult access to finance, lack of markets, regional capital, high transport costs, inadequate telecommunications infrastructure and energy, inefficient bureaucracy, heavy taxation and unstable, and the poorly qualified workforce,” lbin Feliho, President of the National Confederation of Employers of Benín (CONEB), said.
pdf Southern Africa Regional Integration Strategy Paper 2020-2026 (1.43 MB) (AfDB)
This Regional Integration Strategy Paper for Southern Africa (SA-RISP) defines the Bank’s framework for operations in the region over the 2020-2026 period. The main objective of the new RISP is to foster an integrated and diversified Southern African region promoting structural transformation and inclusive and green growth. Reflecting this objective, the new RISP has two mutually reinforcing Priority Areas of Bank support: (i) Infrastructure Connectivity; and (ii) Market Integration and Industrialization. The RISP also focuses on capacity building to improve regional portfolio implementation and performance.
Road and air supply chain most affected in East Africa – report (The Star)
The Covid-19 pandemic has significantly cut off supply chains, hampering trade in East and South African countries, according to a report by Shippers Council of Eastern Africa. This may be a result of the lockdown of international airspace by regional countries. Others like Kenya went ahead to lock inter-county land movements. The report dubbed ‘Covid-19 impact on the supply chain in East and Southern Africa’, notes: “Across the region, measures introduced to minimise the spread of Covid-19 appear to have reduced airfreight capacity and impacted road transport capacity.” The drop in supply chain saw reduced business activities in the region as shown in the study.
Poor infrastructure, barrier to agricultural trade – PwC (The Punch)
Poor infrastructure has been identified as one of the major barriers to agricultural trade within and outside Nigeria. An Associate Director at PricewaterhouseCoopers Nigeria, Taiwo Oyaniran, while speaking at an AfCFTA workshop organised by the National Action Committee on African Continental Free Trade Area Agreement stated that Nigeria had significantly poor transport infrastructure and services, particularly in the rural areas. According to him, the lack of cold chain logistics also contributes to a decreased trade capacity through losses from spoilage and impact on time to reach the market.
Weaker currencies increasing EA debt payments burden (The East African)
East African economies are facing a potential rise in debt servicing burden owing to the depreciation of regional currencies currently weighed down by uncertainties in the global economy, disruption of global trade by the Covid-19 pandemic and political jitters linked to the region’s election cycles. Monetary authorities are concerned about stability of the currencies, with fears their persistent fall in value against major foreign currencies could make repayment of external loans in foreign currencies an arduous task.
Rwanda-Ghana relations to spur Africa trade agenda (The New Times)
Rwanda and Ghana have resolved to boost bilateral relations with a broad, varied economic agenda at the core. This week, Foreign Affairs Minister Vincent Biruta was in Ghana to take part in a series of events that officials say will help to strengthen diplomatic and economic cooperation between the two countries. Already, the two countries have expressed commitment to see increased intra-Africa trade volume. Biruta on Tuesday, November 3 met with the President of Ghana, Nana Akufo Addo, during which the two governments pledged their commitment to make the African Continental Free Trade Area agreement (AfCFTA) work.
African aviation looks for its wings (The Southern Times)
The economic effects of closing borders and banning travel to curb the spread of COVID-19 threw commercial African aviation into uncertainty as the vast majority of the continent shut down operations for several months, according to the International Road Federatio. In a continent where most airlines are state-owned, there have been mixed responses by airlines to the market changes that COVID-19 brought. African airlines could lose US$6-8 billion in passenger revenue compared to 2019. The usual contribution to African GDP of US$56 billion per annum is expected to drop by US$35 billion, according to the International Air Transport Association.
Import substitution makes a comeback in Africa (African Business Magazine)
As African industrialisation progresses and Covid-19 impacts on long supply chains, the notion that African economies should produce more locally is gaining traction. The Covid-19 pandemic has reinforced the notion that African countries should produce locally, rather than importing from abroad. Announcing a lockdown in March, Uganda’s President Yoweri Museveni expressed his hope that the crisis would help to build manufacturing capacity, rather than “turning our market into a dumping point for foreign goods”.
A Stalled Conflict in Sahara Risks Reigniting as Trade Blocked (BloombergQuint)
Protesters in the disputed region of Western Sahara blocked Morocco’s main trade route to West Africa, prompting a warning that a conflict suspended for three decades could reignite. Halting what was an average of 150 trucks crossing per day, they’re seeking leverage by impeding Morocco’s burgeoning trade with sub-Saharan Africa. Protesters have also approached Moroccan military outposts. Escalation in the already tense situation threatens to revive fighting in Western Sahara frozen since 1991.
Concerns Over Debt Sustainability Rise in Sub-Saharan Africa Amid Covid-19 (Global Trade Magazine)
The extent and duration of the economic impact of the global pandemic remain uncertain, but post-Covid-19, governments in SSA are prepared to step up their efforts to make countries more resilient in the face of external shocks. Opportunities exist on the other side of 2020 in the form of renewable energy in solar and wind. Another opportunity for SSA lies in manufacturing, which is still low across SSA exempting Ethiopia and South Africa. The implementation of the African Continental Free Trade Area, introduced in early 2020, will provide significant opportunities for manufacturing companies across the region.
Harnessing Geothermal Energy in Africa (African Union)
H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure & Energy, spoke today at the opening session of 8th African Rift Geothermal Conference (ARGeo-C8). The Commissioner said that “Currently, more than 600 million Africans lack access to electricity with many still relying on traditional biomass for cooking. This is having huge impacts on our efforts towards poverty reduction and human development in the Continent”. She highlighted that Africa has a huge potential in renewable energy, especially in geothermal which is a viable energy resource estimated at over 15,000 megawatts in East Rift System Countries, that the Continent can leverage on to improve the energy-mix generation in East Africa.
SGR hauls 2m bags of tea as factories snub warehouses (Business Daily)
More than two million kilogrammes of tea have been transported using the standard gauge railway (SGR) in the past one year after nine factories adopted ex-factory containerisation. Kenya Tea Development Agency (KTDA) Management Services managing director Alfred Njagi said the move has led to enhanced efficiency in the transportation. “Ex-factory containerisation continues to be an increasingly preferred option for big packers that have direct sales arrangements with factories. Over and above being a more efficient method of transporting tea by cutting down on delays occasioned by road transport and warehousing,” he said.
Region Targets $5B Worth of Seed Trade by 2025 (COMESA)
Regional seed trade in the COMESA countries stands at USD 2 billion but this is set to rise to USD 5 billion by 2025 with the implementation of new initiatives. One of them is the rolling out of the COMESA seed labels and certificates developed as part of the implementation of the COMESA Seed Harmonisation Implementation Plan (COMSHIP) aimed at facilitating regional seed trade. COMESA Agriculture Ministers endorsed the COMESA Seed Trade Harmonisation Regulations in 2015 leading to the launch of the COMSHIP programme to expedite implementation both at national and regional level.
COVID-19 at risk of worsening youth unemployment in North Africa (UNECA)
The ECA Office for North Africa held on Tuesday, November 3rd a webinar on “Best practices on job creation in North Africa”. Participants discussed lessons learned and best practices on job creation and what governments and other key actors can do to ensure employment policies achieve meaningful results for youth employment and empowerment across North Africa. Prior to the COVID-19 pandemic, North African economies had achieved reasonable growth levels, and several countries had managed to engage their economies on the road towards more diversification. However, the sub-region still faces major issues including low productivity growth and high unemployment rates.
International
UN faults Kenya for ignoring G20 Covid debt relief offer (Business Daily)
The United Nation’s has faulted Kenya’s reluctance to take up the debt relief initiative by a group of world’s 20 major economies or G20 at a time servicing costs are eating into a significant chunk of revenue. United Nations Conference on Trade and Development (UNCTAD) secretary-general Mukhisa Kituyi said the G20 debt moratorium would have helped Nairobi to free up about $900 million (Sh97.98 billion) in deferred bilateral debt servicing costs. The cash could have been rechanneled to other pressing needs related to alleviation of Covid-19 that has battered the Kenyan economy.
UK-Kenya deal creates ‘huge risks to regional trade’ (The Grocer)
The UK’s trade deal with Kenya agreed this week to avoid tariffs on food imports including cocoa, coffee and bananas, could risk undermining established regional trade relationships in East Africa, trade campaigners have warned. The new agreement will give duty-free access to both Kenyan goods entering the UK as well as for British exporters shipping to Kenya. But campaigners have warned that striking a bilateral deal with Kenya rather than the regional trading bloc of countries including Burundi, Rwanda and Tanzania could create “costly barriers to trade” in the region, while also potentially threatening local development goals and making countries more vulnerable to international price shocks.
UK government appoints British-Nigerian as UK Trade Envoy to Nigeria (Vanguard)
The UK Government has appointed Helen Grant MP, a British-Nigerian, as new Trade Envoy to Nigeria. Speaking on her appointment as the UK Prime Minister’s Trade Envoy to Nigeria, Helen Grant said: “Now I have an opportunity to employ my rich dual heritage to help magnify an already strong UK-Nigerian relationship for our mutual prosperity. As the largest and fastest growing economy on the African continent, the potential for trade and investment with Nigeria is stunning. I will do my utmost to help develop that as part of our nation’s collective drive toward an outward looking global Britain.”
China and terrorism expected to remain key issues in US-Africa policy after polls (The East African)
The US-Africa policy will likely remain focused on countering China’s influence, and fighting terrorism regardless of who wins the Oval Office in the November 3 US election. American citizens will be deciding whether to give President Donald Trump a second term in office, or hand leadership to Joe Biden, the former vice president of Barack Obama. Foreign policy and international trade experts say the US will continue to keep an eye on China, even if the Democrats win the White House.
What the US election result means for Africa (African Business Magazine)
The size of the American economy, the dominance of US companies and the power of the dollar mean the results of the US election race are set to reverberate throughout the world. But what does a Trump or Biden win mean for Africa? The result of the vote could have a profound impact on US foreign policy in Africa, the EU’s Institute for Security Studies (EUISS) says. “As competition mainly revolves around the predatory economic practices (of China) the first pillar of Trump’s strategy is advancing US trade and commercial ties with the region,” Faleg says. “Trump has never personally considered Africa a priority region.”
Opinion: ‘Trump vs. Biden: This is how it could impact South African agriculture’ (Food for Mznazi)
As the race for the White House continues, agriculture leaders say a win for Democrat Joe Biden will strengthen and fast-track trade relations between South Africa and the United States. Currently, the race between pres. Donald Trump and Biden hinges on tight races in battleground states. Trump has already falsely claimed victory while Biden called for patience and every vote to be counted. Meanwhile Mzansi’s agriculture leaders believe a second-term win for Trump will lead to a continuation of the trade war with China which will benefit exports in the agricultural sector immensely.
Top world trade job set for African candidate, despite Trump’s blocking tactics (EURACTIV)
Senior WTO officials are set to make a formal announcement on Okonjo-Iweala’s appointment of Ngozi Okonjo-Iweala as the trade body’s new Director General at a general council meeting scheduled for 9 November in Geneva, by which time the US presidential election is likely to have been settled. Last week, the WTO General Council Chair David Walker recommended that Okonjo-Iweala be appointed as the WTO’s next Director-General. However, in what could be one of its last international policy moves, the Trump administration last week blocked the nomination and continues to support South Korean trade minister Yoo Myung-hee.
Ninth China-Africa Think Tanks Forum to boost development amid pandemic (Global Times)
The Ninth Meeting of the China-Africa Think Tanks Forum looked back and forward to China-Africa cooperation under the framework of the Forum on China Africa Cooperation (FOCAC) over the past two decades, as this year marks the 20th anniversary of the establishment of FOCAC. Officials and experts from China and Africa expressed desire to strengthen cooperation in a range of fields including trade, the economy and poverty alleviation. While the cooperation has progressed very well, Deng Li, assistant minister of foreign affairs, noted that there are also challenges as some countries are trying to undermine China-Africa cooperation by launching groundless attacks.
Resurgent South Africa joins Saudi Arabia on road to economic reform (Arab News)
South Africa is embarking on an ambitious economic reform agenda that shares striking similarities with Saudi Arabia’s own efforts to slash red tape and stimulate investment. Like Saudi Arabia, South Africa is transitioning from a commodity-based economic foundation to a more sustainable and diversified and modernized model. Pretoria is targeting an average annual economic growth rate of 3 percent over the next decade and has established a state infrastructure fund that will provide 100 billion rand ($6 billion) in finance, a move that the government expects will unlock a further trillion rand in investment.
New WTO paper explores linkages between trade and the spread of diseases of animal origin
The WTO Secretariat has published a new information note about trade issues associated with the spread of diseases of animal origin. The note maps out the international framework in place to address these issues, along with ongoing efforts to ensure safe trade in animals and animal products, including in wildlife. The note provides an overview of the current issues and the status of legal frameworks and planned future actions to control the spread, via trade, of diseases affecting human health that originate in animals.
COVID-19 drug and vaccine patents are putting profit before people (The Conversation)
In early October, India and South Africa requested that the WTO Trade Related Intellectual Property Rights (TRIPS) Council, which protects patents and copyrights including those applicable to new diagnostics, vaccines, medicines and medical supplies, consider a temporary waiver suspending TRIPS obligations on all medical products needed to control the COVID-19 pandemic. On Oct. 15, 40 WTO member states discussed the proposal. Most developing countries supported it, though some wanted more time to discuss the implications with their home governments. Most developed countries, including Canada, opposed the proposal. A final decision is on hold but is likely to be made within a matter of weeks
Air Cargo Recovery Continues in September (IATA)
“Air cargo volumes are down on 2019, but they are a world apart from the extreme difficulties in the passenger business,” said Alexandre de Juniac, IATA’s Director General and CEO. African airlines saw demand increase by 9.7% year-on-year in September. This was the fifth consecutive month in which the region posted the strongest increase in international demand. Investment flows along the Africa-Asia route continue to drive the regional outcomes. International capacity decreased by 24.9%.
Bridging the Digital Divide to Scale Up the COVID-19 Recovery (IMFBlog)
Digitalization has in the past few years enabled developing countries in particular to leapfrog on financial inclusion. Countries like Kenya, Ghana, Rwanda and Tanzania have made great advances in connecting their citizens to financial systems by leveraging on mobile phone technology. As the world has grappled with the COVID-19 pandemic, with closing of borders, curfews, lockdowns and other movement restrictions, digitalization has come to the rescue. Online shopping and entertainment, digital financial services, virtual meetings and events have taken center stage in lives and livelihoods globally.
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WWF launches plastics report, encourages deeper collaboration to end pollution (Engineering News)
All actors in the plastics value chain have a role to play in dealing with the plastic pollution challenge, and while there are various policies and actions in place, independent conservation organisation the World Wide Fund for Nature (WWF) says little can be achieved without deep collaboration, accountability and transparency. “Critical decisions need to be made in the short term, including the alignment towards a common vision, the fast-tracking of a mandatory extended producer responsibility scheme (underpinned by time-bound national targets), and supporting a new global treaty to address plastic pollution,” the organisation has said at the launch of its ‘South African Plastics Facts & Futures Report‘ on November 4.
Kenya, UK agree terms of post-Brexit trade pact (Business Daily)
Kenya has agreed terms for a post-Brexit trade deal with the United Kingdom (UK), paving the way for the signing of a long-term treaty that will shield EAC exports from tariffs. The two countries announced Tuesday they have reached an “agreement in principle” on continuation of duty- and quota-free access of Kenyan exports such as cut flowers and tea after the UK formally exits the 27-member European Union (EU) at end of the year. “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 Custom Union,” Ms Maina told reporters after the meeting that initialled the trade pact. “Our key exports such as flowers and fresh produce will benefit from enhanced privileges for agricultural goods that confers originating status to EAC exports, even if they pass through EU’s 27 countries.”
The Kenya – UK trade agreement vs EAC geopolitics (Then Star)
The earnest attempt by the Government of Kenya to secure a trade deal with the United Kingdom (UK) prior to the expiry of its transitional relationship with the European Union on 31 December 2020 has come to a successful close with a few days on the clock. The Governments of Kenya and the UK signed the long-sought Kenya – UK trade agreement on November 3, preventing the impending cessation of the trade in goods and services between the two nations guaranteed by EU – EAC Economic Partnership Agreement.
Specifically, under the agreement, certain products from Kenya will have duty free access to the UK market including flowers, tea, coffee and an assortment of vegetables. Conversely, motor vehicle, pharmaceutical and paper imports from the UK would benefit from duty free access to the Kenyan market. Both trade benefits would be available from the year 2021 once the UK has completed its protracted exit from the European Union, with or without a deal, on December 31, 2020.
KRA eyes Ksh.5 billion from the digital economy by June next year (Citizentv.co.ke)
The Kenya Revenue Authority (KRA) has set its sights on raising Ksh.5 billion from the digital economy in six months to June 2021. This ahead of the roll out of the digital services tax on January 1 which is levied on online businesses at the rate of 1.5 per cent of the gross transaction value. KRA has been working alongside the ICT Ministry on a businesses’ sensitization framework ahead of the roll out of the new tax. “Already, KRA has been putting a lot of information out there. We have already seen many people come into the tax base. Previously, people opted to hideaway thinking they were better off,” stated ICT Cabinet Secretary Joe Mucheru. The Digital Services Tax (DST) is a tax payable on income derived or accrued in Kenya from services offered through a digital market place
Mitumba Association of Kenya will no longer import second-hand underwear, bras and socks into the country (The Nairobian)
The Mitumba Association of Kenya announced that from September 31, it would no longer import second-hand underwear, bras and socks into the country. According to the association, mitumba dealers have also agreed that they will be wearing clothes that are made in Rivatex to show solidarity with the government and wear clothes branded as ‘buy Kenya and build Kenya.’ The group said it would comply with the set Covid-19 protocols on the importation of second-hand clothes in line with the president’s directive when he lifted the ban on the importation of mitumba. “Corona has chased our customers because of fear, and now the government has stopped the importation, how will we survive?” he laments.
Jobs in flower farms at stake as France in lockdown (The Star)
According to the Kenya Flower Council, thousands of farm workers are on the verge of losing their jobs due to closure on sale of ‘non-essential’ items by supermarkets and florists during the lockdown in France. The flower council has asked the Kenyan government to urgently engage with the French government to lift the restrictions in order to safeguard thousands of jobs that might be lost. The council said that the industry was adversely affected by the first lockdown in Europe between March and August, which saw demand for flowers dropped. “Millions of stems were destroyed at the farm which resulted in a huge loss for the growers. Consequently, farms reduced salaries and manpower, used minimum spray and fertigation, and put some plants and varieties on rest for weeks till the demand picked up,” the council said.
Informal trade surges at small unmonitored border posts (The Namibian)
Trade in merchandise valued below N$1 000 is gaining momentum at Namibia’s ungazetted borders, recording N$19,9 million in 2019 compared to N$15,3 million in 2016. Interestingly, informal trading has also achieved a trade surplus of N$13,4 million, as the formal trade struggles with deficit, as the country exports more in small values but large volumes. This is according to the Namibia Statistics Agency’s (NSA) fourth (from 2014) Informal Cross Border Trade Survey (ICBTS) conducted last year. According to the informal trade statistics, over 51% of exports were destined for Angola, making that country Namibia’s largest export market in 2019, amounting to N$8,5m. Zambia maintained her second position on the export list, absorbing 48,1% of Namibia’s total informal exports, up from its 2016 level of 24,6%.
Major gains recorded in investment, trade (Dailynews)
Formulation of good policies has greatly contributed to gains recorded in the fields of investment and trade in the country. As the Fifth Phase Government starts its final second five-year term today, it has much to count on the gains recorded in past five years. Dr Magufuli, also CCM Chairman, spearheaded the reform of some laws to curb bureaucratic delays in issuing investment permits, the scrapping of some charges, duties and taxes in various key sectors of the economy such as agriculture, fisheries and livestock. Such government actions have increased Tanzania’s foreign trade from 11.5tri/- in 2014/20 15 to 16.6tri/- in 2018/2019. A vivid example of feats in the foreign trade is that since 2015 to 2018 Tanzania had positive proportion of goods sales by an average of 288.04 million US$. As for investment projects, the Tanzania Investment Centre (TIC) has registered 1,307 new projects worth 14.607bn US$ (30 tri/-) and when completed will create 183,50 3 jobs.
Zimra unveils pre-clearance system (The Herald)
With effect from 1 November 2020, the Zimbabwe Revenue Authority (Zimra) introduced a pre-clearance system on all vehicles goods imported by road. Under the latest customs arrangement, import duty procedures are completed before the traveller or the imported goods arrive at a selected port of entry. Upon arrival, the goods are only checked for conformity and this reduces the time spent by importers while completing customs processes at the ports of entry . This is different from a system where the processing of customs documents was done by a traveller or importer upon reaching the respective port of entry.
Somaliland Port of Berbera Set to Challenge Djibouti’s Monopoly (East African Business Week)
Somaliland Port of Berbera is expected to challenge the monopoly enjoyed by Djibouti once complete in January 2021 and offer an alternative for maritime and military interests in the Horn of Africa. DP World has invested in Berbera port an initial $120 million in financing the first phase (a 400-meter container terminal) which, after it becomes operational, will compete with Djibouti. DP World says the Berbera Port will stand out as the trading and transportation hub for the Horn of Africa. This may turn the port into a new logistical gateway to East Africa and boost economic development in the self-declared republic.
82.9m Nigerians currently living below poverty line – ActionAid (Blueprint Newspapers Limited)
The Country Director of ActionAid Nigeria, Ene Obi has estimated that 82.9 million Nigerians are currently living below the poverty line, in a largely informal economy such as Nigeria. Obi further said in Nigeria, small and medium scale business are mainly driven by young people and women, expectedly government incentives, stimulus and credit facilities must target these biggest demography of people, in order to get the economy back on track at the earliest possible time and tackle the increasing poverty, unemployment and inequality. At a two-day National Summit on Tax and Development in Abuja on Wednesday, Ene observed that in Nigeria and in some other African states, the tax to GDP ratio remains low.
How Madagascar is rebooting its mining sector (Miningreview.com)
The Malagasy government’s ambitions to reform mining legislation has been accelerated by the COVID-19 pandemic, following a failed attempt to introduce a new mining code in November 2019. The drive for reform stems from widespread perceptions nationally that mining projects have failed to deliver expected outcomes or benefits, particularly in terms of government revenues and local content contributions.
Burundi to reopen airport (The East African)
The Burundi government Tuesday announced it would reopen Melchior Ndadaye International Airport on November 8. Burundi closed its airspace in March this year following the outbreak of the coronavirus worldwide. A statement read on Tuesday by government spokesman Prosper Ntahorwamiye stated that strict measures will be put in place to curb the spread of Covid-19.
Africa
Angola deposits AfCFTA instruments of ratification
Africa free trade agreement must be rolled out by January after pandemic delay – Secretariat (Fin24)
Wamkele Mene, Secretary General of the African Continental Free Trade Area Secretariat told delegates at the annual competition law, economics & policy conference on Wednesday that the Secretariat was at advances stages of concluding phase one of the agreement which deals with the trading of goods and services. While understandably not all countries will be ready to trade under the African Continental Free Trade Area (AfCFTA) terms from day one, Mene said the Secretariat was “determined” to get this off the ground from the first day of the year and those countries who lag will hopefully staring start moving together with the rest soon after that.
“We have now resumed our work. We are now negotiating virtually. We are meeting in person where we can, to ensure that we are ready to commerce trading under the AfTCA preferences from the 1st of January 2021,” said Mene. The told the conference that the AfCFTA was possibly the last chance for Africa to move forward with an integrated market in in the continent and overcome “smallness” of its individual economies as well as reliance on export of commodities.
AfCFTA’s promise of free trade is prosperity for all Africans – ECOWAS Speaker (Vanguard)
The Speaker of the ECOWAS Parliament says the African Continental Free Trade Area (AfCFTA) holds the promise of prosperity for all Africans amidst the coronavirus pandemic. Sidie Mohammed Tunis said yesterday during the opening ceremony of two meetings scheduled with a week-long activities of the Parliament in Cotonou Benin Republic. He said that notwithstanding the benefits of free trade, there are visible threats which stall progress and create stumbling blocks to investments that in turn affect commerce and employment in the region, the ECOWAS Parliament “Beyond its impact on human health, the pandemic has disrupted an interconnected world economy and border closure have reduced economic activities with following predictions of recession across the continent,” Speaker Tunis said.
Africa CEO Forum, Okan publish report on transforming ports (Logistics Update Africa)
For the second year in a row, the AFRICA CEO FORUM and the strategy consulting and financial advisory firm Okan published a 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-19 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 percent decrease in traffic for certain African ports. These ill winds come on the back of two decades of unprecedented growth in investment and competitiveness in the continent’s port sector. Totalling $1.2 billion between 1990 and 2004, private investment in Africa’s port sector grew by a factor of 3, reaching $15.2 billion between 2005 and the first half of 2019.
Modernizing Ports And The Northern Corridor Key To Boosting Trade With Regional Neighbours (Kenya News Agency)
Modernizing Kenya’s ports and decongesting the Northern transport corridor will be a game changer in establishing the country as the regional gateway for trade. Treasury Cabinet Secretary (CS) Ukur Yatani speaking at the treasury Tuesday, while signing financing agreements with Trademark East Africa (TMEA) said that reducing the time it takes to enter and exit our borders will make us the transit partner of choice for our regional neighbours. “The four grant agreements worth Sh1.31 billion signed will facilitate trade and unlock the economic growth of Kenya, Uganda, Rwanda, Burundi and Democratic Republic of Congo (DRC) given that this investment is in critical infrastructure,” said Yatani.
Covid-19 Has Added Impetus To Africa’s Sustainable Finance Market – Standard Bank CEO Sim Tshabalala (Africa.com)
The COVID-19 crisis has heightened the focus on climate change and financial instruments that promote sustainable economic development, Standard Bank Group CEO Sim Tshabalala says in the latest episode of the ClimateBiz podcast series hosted by the International Finance Corporation (IFC). In a discussion focused on “Financing the green rebuild”, Tshabalala notes that pressure is building on financial institutions, asset managers and corporates to give more attention to environmental, social and governance (ESG) issues in their day-to-day operations. Against this backdrop, the growth of the sustainable finance market’s growth is being supported by the establishment of ESG linked funds, Sustainable Indices, and by an evolving regulatory environment.
The SACU region is implementing a Regional Customs Modernisation Programme which is our flagship programme. This Programme aims to enhance operational efficiencies for the cross-border movement of goods, secure borders and eliminate entry of sub-standard and illicit goods, ensure seamless movement and facilitation of trade as well as to promote traders’ compliance with the national laws and policies regarding importation and exportation of goods. The SACU region is now transitioning form the Preferred Trader Programme to Authorised Economic Operator Compliance Programme. The transition seeks to augment and amplify the work done so far and to elevate the Preferred Trader programme to a Global Authorised Economic Operator Compliance Programmes.
Export Similarities to Blame for Low Intra-COMESA Trade – Researcher (COMESA)
The export similarities between Member States is a major contributor to the low intra COMESA and COMESA – rest of Africa trade. According to findings presented at the recent COMESA Annual Research Forum, the current export structure depicts a region that produces more or less similar products in terms of their export sophistication. The top five exports to Africa include tobacco and tobacco substitutes, ores, slag and ash, essential oils and resinoids, sugars and sugar confectionery. Mineral fuels and related products are among COMESA’s top exports to the rest of the world. In a research paper titled “Estimating COMESA’S trade potential in Africa: optimizing export opportunities in the AfCFTA,” the Researcher Mr. Manaseh Oiro, observed that similar products are being exported to the rest of the world in larger quantities because they are used as inputs for industrialized countries.
New partnership to expand e-logistics technology solutions across Africa (Marketing and Media South Africa)
Provider of integrated market access and logistics solutions, Imperial has announced an investment in, and partnership with Lori Systems to expand its e-logistics technology solutions across Africa. This strategic partnership is the first of its kind at this scale and scope on the African continent. “We believe that Lori solves a real problem when it comes to matching volatile demand and reliable supply in Africa’s highly fragmented road freight industry. As a business that is focused on efficient and innovative logistics and market access solutions, this is a crucial business investment for Imperial and the continent. “Investing in Lori Systems will enable the creation of further business opportunities in Africa and provide efficiency for Imperial’s clients and transport operators with whom we collaborate,” noted Mohammed Akoojee, Group CEO, Imperial.
International
UK says US ties will go ‘from strength to strength’ whoever wins (Eyewitness News)
Britain on Wednesday insisted its close partnership with the United States was in safe hands whoever comes out on top of the tumultuous presidential election, while noting disagreement over the Paris climate pact. Prime Minister Boris Johnson, a populist ally of President Donald Trump, refused to be drawn in parliament when grilled about the Republican’s premature claim of victory and his intention to ask the Supreme Court to halt the vote counting. But Foreign Secretary Dominic Raab said: “I’m not worried about the relationship. “The contours of the opportunities and the risks always shift a little bit, but that needs to be set against the context of this bedrock and this wider set of interests which are so strong,” he told Sky News.
UK guidance for retailers to prepare for end of transition (Fibre2Fashion)
The UK department for business, energy and industrial strategy (BEIS) recently released information and guidance for the retail sector to prepare for the end of the transition period of the United Kingdom’s exit from the European Union (EU). The period ends on December 31. For businesses and organisations in the retail sector, there will be new rules from January 1. The process of importing and exporting goods between the United Kingdom and the EU will change and the former will apply a UK-specific tariff to imported goods. This UK Global Tariff (UKGT) will replace the EU’s Common External Tariff, which applies until December 31.
How China and the US Threaten the World Trading System (The Diplomat)
As trade remade China, in the process China also remade world trade. As China became more integrated into the global economic system, its use of coercive actions to serve its strategic interests also increased. Gaining membership to the World Trade Organization (WTO) in 2001 facilitated its emergence as the center of a global production network, receiving parts and components mainly from the Northeast Asian economies of Japan, South Korea and Taiwan – totaling 40 percent of overall Chinese imports at that time – and processing for re-export to the United States and Europe. As China became the assembly plant for the world, it boosted East Asia’s economic prominence. But China was also seen as aggravating global macro imbalances and sowing the seeds for heightened tensions with the West.
US exit from Paris deal a blow – but climate action rolls on (Thomson Reuters Foundation)
As the United States officially withdrew from the 2015 Paris Agreement on Wednesday, officials, analysts and campaigners said the departure dealt a blow to global climate diplomacy and the battle to curb rising planet-heating emissions. But, they noted, many American cities, states and companies continue to lead a push to meet U.S. commitments under the Paris accord, aimed at heading off the worst impacts of wild weather and rising seas by reining in temperature rise. Here are some views from climate experts on the U.S. withdrawal from the landmark Paris deal, a key policy promise by President Donald Trump, who has rejected mainstream science on climate change and promoted fossil fuel use:
WTO members highlight key role of investment to increase small economies’ trading capacity
At a meeting of the Committee on Trade and Development dedicated to small economies on 2 November, WTO members and international organizations highlighted the challenges faced by small economies in attracting foreign investment – particularly amid the COVID-19 crisis – and discussed ways to facilitate this investment. Three members of the WTO’s Small, Vulnerable Economies (SVE) Group – El Salvador, Guatemala and Saint Lucia – presented initiatives they have taken to increase foreign direct investment (FDI) in order to expand their trading capacity and support economic diversification.
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National
Cheap imports sour SA’s sweet silver lining (IOL)
When President Cyril Ramaphosa, presenting the government’s Economic Reconstruction and Recovery Plan to Parliament recently, reflected that “even the darkest clouds have a silver lining”, South African sugar cane farmers could immediately identify with the practical realities of this proverb. Earlier this year, when the Covid-19 pandemic triggered stringent economic lockdowns, South African cane growing, as part of the agricultural sector, was declared an essential industry. We were, therefore, able to continue proudly contributing to the nation’s food security, gross domestic product (GDP), and job creation while responsibly flattening the curve. Despite this silver lining, the local sugar industry has continued to face a number of challenges that threaten the sustainability of our sector and the thousands of jobs and livelihoods.
The Competition Commission reviews inputs to strategy to tackle digital economy competition (Engineering News)
The Competition Commission is reviewing the submissions it has received in response to its proposed competition strategy for South Africa’s digital economy in the future. The draft paper on Competition in the Digital Economy was published in September for public comment before October 30, offering a strategy that embraces a proactive approach that adjusts to rapidly changing conditions. “The next step is to assess the submissions and have further engagements with key stakeholders before finalising the final report,” Competition Commissioner Tembinkosi Bonakele said.
Ramaphosa: Govt’s gazetted 50 strategic integrated projects valued at R340bn (Eyewitness News)
President Cyril Ramaphosa on Tuesday said the government has gazetted 50 strategic integrated projects valued at R340 billion as part of its infrastructure development plans. He was addressing the Infrastructure South Africa Project Preparation Roundtable and Marketplace in Midrand, where the private and public sector were discussing the various projects in the pipeline.
Ideal time to push ahead with health-care reforms (Business Day)
The Covid-19 pandemic and lockdown exposed many underlying economic, health and social problems in SA. Now, while the country works to deal with the fallout of the pandemic – and of the government’s hard lockdown – we have the ideal opportunity to adopt the necessary reforms that could place the country in a much stronger position in years to come. A new declaration, initiated by the Geneva Network (UK) and supported by numerous international think-tanks, aims to provide policy guidance to the World Health Assembly (the decision-making body of the World Health Organisation). The declaration, and the policy recommendations contained therein, can help point SA in the right direction in implementing the necessary reforms in the area of medicine.
Namibia to focus on manufacturing (New Era)
According to Deputy minister of industrialisation Verna Sinimbo, “Namibia aims to be a fully industrialised nation by 2030, with both services and manufacturing accounting for more than two-thirds of the economy. Similarly, within the SADC Industrialisation Agenda, it is the regional wish for the manufacturing sector to attain more than 30% of manufacturing value added to the economy by 2030.” According to her, Namibia has done very well in the service sector; however, both the public sector – but mainly the private sector – need to do more to attain more than 30% of manufacturing value added to the economy by 2030. Currently, she says, Namibia’s regional manufacturing value added to the economy hovers around 11 to 12 %, while the service sector constitutes a larger section, approaching even 60% of the gross domestic product GDP in many countries.
Kenya set to shift to e-visa services in 2021 (CGTN Africa)
The Kenyan government on Tuesday announced a shift to e-visa services effective January 1, 2021. The Immigration department said passengers from countries requiring a visa to enter Kenya are expected to have the document before boarding a plane. The Department of Immigration Services said it has put in place a system for online application, payment and issuance of e-visa for visitors coming to Kenya. The government said the online application system will significantly streamline the processing and issuance of visas for foreign nationals visiting Kenya.
Kenya, E. Africa trade lobby sign 12 mln USD deal to fund infrastructure (Big News Network.com)
Kenya and the East African trade promotion lobby, TradeMark East Africa on Tuesday signed a 1.31 billion shillings (about 12 million U.S. dollars) agreement to fund regional infrastructure projects to help boost trade. Ukur Yatani, cabinet secretary of the National Treasury, told journalists in Nairobi that the grants will finance infrastructure projects that will facilitate trade and unlock the economic growth of Kenya, Uganda, Rwanda, Burundi and to a wider extent the Democratic Republic of the Congo. “These projects will create efficient borders that will facilitate international trade, investment, economic growth, promotion of economic competitiveness and improved relations between countries,” Yatani said.
Businesses Must Embrace Change For Growth (Modern Ghana)
Speakers at the annual flagship Business and Leadership conference organised by the Seed Transformation Network (STN) Ghana Chapter have unanimously called on Ghanaian businesses to confront changes in the business environment and ready themselves to benefit from the African Continental Free Trade Area (AfCFTA) and opportunities available in the post-COVID-19 era. “Businesses need to be aware of the change and identify the business opportunities that they present. Businesses that think and prepare for change, and have it engraved in their policies, survive best,” Chief Executive Officer (CEO) of Tropical Cable and Conductor Ltd, Dr. Tony Oteng-Gyasi stated.
Ethiopian Pharma Wing Ready for COVID-19 Vaccine Distribution (East African Business Week)
Ethiopian Cargo & Logistics Services, the multi-award winning and largest cargo network operator in Africa, is pleased to announce its readiness with all required capabilities for the distribution of potential COVID-19 vaccine across Africa and the rest of the world. Commenting on Ethiopian’s preparation for the vaccine distribution, Ethiopian Group CEO Tewolde GebreMariam remarked, “Ethiopian Pharma Wing will repeat its remarkable and globally recognized success in leading the fast delivery of PPE few months ago with similar delivery speed, professional handling and maintaining the cool chain during the forthcoming global distribution of the COVID-19 Vaccine. We will be at the forefront to further discharge our responsibility in the distribution of the vaccine across the globe.”
Access to COVID-19 vaccine by Nigeria, others dims (The Guardian Nigeria)
A recent study has revealed that low-income nations, including Nigeria, might lose access to COVID-19 vaccine. Published by a global health innovation centre, Duke, the survey also showed that high-income countries and a few middle-income ones with manufacturing capacity have already purchased nearly 3.8 billion doses, with options for another five billion. The implication being that these countries would vaccinate their entire population over and over before billions of people get attention in developing nations. The research disclosed that medication for only 250 million people had been purchased so far by COVAX, an international effort involving both wealthy and poor countries, that promises equal access to COVID-19 therapies globally.
FG: We’ll Use Technology to Track Internally Generated Revenue (THISDAYLIVE)
The Accountant General of the Federation (AGF), Ahmed Idris, yesterday disclosed that the federal government would soon acquire software to monitor revenue remittances by various Ministries, Departments and Agencies (MDAs). According to him, “We don’t have visibility – as the money is coming in we only see it dropping-but we’re working through the office of the department of revenue and investment to have software linked to all these revenue generating agencies. This is geared towards achieving that, and once we have that, we will deploy it to all revenue generating agencies particularly as it relates to the government-owned Internally Generated Revenue (IGR).”
Egypt-Sudan eye cross border railway network (Al-Monitor)
Egypt and Sudan are currently reviewing a plan to establish a cross border railway network between the two countries. The document aims to provide the necessary funding for an economic, social and environmental feasibility study for the project of constructing a railway line between Egypt and Sudan. According to the State Information Service (SIS), Egypt and Sudan have strong commercial relations. The volume of trade exchange between the two countries reached about $1 billion in 2017, while the volume of Egyptian investments in the Sudanese market was estimated at $10.1 billion and the volume of Sudanese investments in Egypt at $97 million, according to SIS. Also, the two countries share a number of crossings, including the Eshkeet-Qustul land port, where about 75 cargo trucks and 11 passenger buses pass daily, as well as the Arqin crossing, which witnesses the movement of about 15 cargo trucks and 60 passenger buses per day.
Manufacturers List Benefits, Challenges of CBN N100bn Intervention Fund (THISDAYLIVE)
Pharmaceutical firms and members of the Pharmaceutical Society of Nigeria (PSN) have described the N100 billion single digit interest rate intervention fund from the Central Bank of Nigeria (CBN) as a major development that would significantly boost the manufacturing capacity of firms in the industry, which would have been difficult to realise with financing from commercial banks. The President of the PSN, Mr. Sam Ohuabunwa, who spoke at the Financial Correspondent Association of Nigeria (FICAN) capacity building forum in Lagos, yesterday, said the fund would go a long way in enhancing capacity in the Nigerian pharmaceutical industry and enable firms in the sector to build or complete new plants, acquire new equipment and machinery, commence new processes of production that would expand their manufacturing and increase add on and value addition.
Africa
The African Export-Import Bank (Afreximbank), the pan-African multilateral EXIM bank, partners with the International Islamic Trade Finance Corporation (ITFC), the Trade Finance Arm of the Islamic Development Bank (IsDB) Group; and the Arab Bank For Economic Development in Africa (BADEA) to launch a US$1.5-billion Collaborative COVID-19 Pandemic Response Facility (“COPREFA”) to support African economies with rapid financial assistance to reduce the impact of COVID-19. COPREFA will be accessed by eligible central banks, commercial banks and businesses to finance the import of medical supplies, as well as agricultural equipment and fertilizers essential for addressing the pressing food production deficit.
How a global pandemic could strengthen agribusiness in Africa (Ghanaweb)
As supply chains around the world are disrupted and the demand for certain types of food drops in the wake of the COVID-19 outbreak, questions have begun to emerge about Africa and its ability to ensure food security for its citizens. One of the ways of doing this is embracing intra-Africa trade in the agribusiness space. COVID-19 has already ignited conversations about deglobalisation as major trade routes were temporarily cut off because of lockdowns around the world, or bottlenecks that occurred in the value chain. Agriculture and food production are essential services but have not escaped the consequences of shutting down economies and disruptions in global supply chains. These disruptions, when approached differently, present an opportune time to start discussions about regionalisation of agribusiness in Africa.
Panel calls for more junior mining, exploration in SADC region (Mining Weekly)
While many of the countries in the Southern African Development Community (SADC) region continue to face various challenges, a panel at this year’s virtual Junior Mining Indaba found that Zimbabwe and the Democratic Republic of Congo (DRC) continue to perform well. As an example, Caledonia Mining CEO Steve Curtis said that, while Zimbabwe had a very negative investor sentiment, owing mainly to poor infrastructure, a lack of power and difficulties in obtaining funding, doing business in the country still faced “very few hurdles” once a project was settled. On the DRC front, DRC Chamber of Mines president and Kipushi Corporation MD Louis Watum said the country was a “high risk, high reward” investment destination, especially considering the country’s “dynamic of political challenges”.
Experts urge Africa to promote biotechnology to spur agricultural development (The Star)
African agricultural experts have called on governments, development agencies and regional economic communities to integrate biotechnology into the continent’s agricultural development. Denis Kyetere, executive director of African Agricultural Technology Foundation (AATF), said in a statement issued on Tuesday after a virtual roundtable meeting in Nairobi that “Despite the proven benefits of biotechnology, investment in research and development in agricultural biotechnology has been unpredictable, with the majority of countries lagging in adoption of biotechnological products with only few crops advancing to commercialization.”
Africa Must not Assume a ‘Business as Usual’ Approach to COVID-19 Recovery (Inter Press Service)
The corona virus pandemic is impacting Africa’s population in quite differentiated ways and is significantly entrenching inequality. At the greatest risk are lives and livelihoods of the poor. Millions are being pushed further into hunger and poverty. Leaders must refuse to take the easier option of failed economic models that allow few rich people to build their wealth off the backs of the poor and thrive even in the middle of a pandemic. Political and business leaders must take bold steps towards building a human economy for all Africans. An economy that rewards and guarantees dignity for workers, especially with the coming into force of the African Continental Free Trade Area (AfCFTA). An economy where big corporations and the rich pay their fair share of taxes and public resources are not used for private benefit.
ECA holds meeting on studies into the development agendas in Africa’s sub-regions (UNECA)
The UN Secretary General and the African Union Commission (AUC) Chairperson have committed to working together to implement the development plans, said Stephen Karingi, Director for Regional Integration and Trade Division at the Economic Commission for Africa (ECA). Mr. Karingi spoke on 27 October at the inception meeting on the studies in the five sub-regions of the continent to investigate the linkages between development, peace, security, human rights and humanitarian pillars. Cross-cutting issues to be considered in the studies include gender and youth, COVID-19, and trans-boundary matters for promoting intra-regional cooperation. The issue of COVID-19 and its impact on the four pillars and their inter-linkages featured in the studies of many sub-regions, including socio-economic, health and humanitarian responses to the pandemic.
African economies to experience lower growth in 2020 (New Business Ethiopia)
Most of African economies will be likely to experience lower growth lower than expected growth in 2020 compared to the 2019 projections, says new study. Policy responses to combat the crisis – lockdowns led to decline in demand for African commodities, depreciating exchange rates and higher inflation, according to a new report, ‘Trends and Analysis of Food Items in the Consumer Basket’ by the African Centre for Statistics and Macroeconomic and Governance Division, Economic Commission for Africa. “Policy responses to combat the crisis – lockdowns led to decline in demand for African commodities, depreciating exchange rates and higher inflation,” it said. “However, lower demand for goods and services led to lower than expected core inflation – most economies will experience lower than expected growth in 2020 compared to the 2019 projections.”
How Africa Can Self-Finance its Economic Recovery | by Alain Ebobissé (Project Syndicate)
In the wake of a continent-wide recession, a recovery designed and financed largely by Africans is well within reach. While the COVID-19 pandemic is hitting the continent hard, strategies such as asset recycling, continued digitalization, and stronger regional integration can help ensure that Africa is strong enough to fight back. The continent must now navigate economic recovery while building resilience to future shocks. From strengthening the healthcare sector to nurturing broad-based economic growth, African leaders need to develop new strategies for solving structural challenges.
IOM Continental Strategy for Africa 2020-2024
IOM’s close collaboration with African Member States builds on African Union landmark policy frameworks that shape continental guidance on governing human mobility in all its dimensions. Following on from the launch of the Pan-African Forum on Migration, IOM’s 2020-2024 Continental Strategy on migration provides an excellent opportunity to further develop synergies for more robust migration dialogues and outcomes across regions and with all relevant partners. The document was conceived to reinforce our joint commitment towards safe, orderly and regular migration within and outside of the African continent. Through multi-stakeholder engagement, it will hopefully give impetus for adaptative measures for better migration management and scale up the positive impact, opportunities and benefits of migration for the whole of society.
International
UK and Kenya secure a trade agreement (GOV.UK)
The UK has moved a step closer to signing a sixth trade deal in Africa today (3 November), as negotiations on a trade deal are finalised with Kenya. The agreement will ensure all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access as they export products including vegetables and flowers to their customers back in the UK. Top goods imports to the UK from Kenya in 2019 were in coffee, tea 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. It also guarantees continued market access for UK exporters, who together sold £815m in goods and services to Kenya last year. As the largest economy in East Africa and among the top 10 across the continent, Kenya is an important trading partner for the UK. This deal also recognises the importance of the wider region – other members of the East African Community trade block are able to join the agreement when they are ready.
Ghanaian exporters face high import duties in Britain (Ghanaweb)
Ghanaian exporters are in impending danger of being slapped with high import tariffs by Britain as the country is just weeks ago from a no-deal Brexit. While Ghana is part of a preferential trade terms deal involving the Economic Community of West African States (ECOWAS) and the European Union, Britain’s imminent exit from the European single market means that it will not be covered under the Economic Partnership Agreement between the two regions. A failure to agree a rollover would allow Ghana to impose similarly high tariffs on imports from Britain too although it is still uncertain whether the Government of Ghana would welcome the resultant effects on domestic inflation.
UK urged to strike trade deal with Ghana before Brexit (Ghanaweb)
As the UK’s exit from the European Union on December 31 draws closer, there are growing calls for the government to strike trade deals with Ghana, Cameroon, and Kenya to protect their farmers from new tariffs that could affect their exports. Currently, the EU does not charge any tariffs on imports from these three countries but according to the UK-based trade advocacy group, Traidcraft Exchange, “the UK is choosing not to go down this road”. At the moment, products from these countries come into the UK market without having to pay additional tariffs, Traidcraft explained. “This approach offers farmers in poorer countries, who might otherwise struggle to compete in our market, the opportunity to trade their way out of poverty. “But as it stands, the UK is planning to charge significant new tariffs on imports from Kenya, Ghana and Cameroon when the post-Brexit transition period comes to a close at the end of this year,” Traidcraft noted.
High stakes for Kenya as ‘Uncle Sam’ decides (The East African)
As Americans headed to the polls last night, Nairobi, some 10,000km away, was keenly interested in the outcome as it would continue or alter the relations between the two countries. Both have spoken little on their Africa policies, perhaps signalling how low the continent ranks in their foreign policy agenda. “With the US, any engagements with Africa or other regions has been about the US first,” Mr George Mucee, the Practice Leader at Fragomen-Kenya, a migration consultancy firm in Nairobi, told the Nation.
US election stands to have a big impact on SA trade, foreign aid and pandemic recovery (IOL)
The outcome of the US presidential election stands to drastically affect US foreign policy towards developing nations in Africa, particularly due to Donald Trump and Joe Biden’s differing approaches to solving one of the world’s most pressing issues: China. If there’s one thing that both Biden and Trump seem to agree upon, it’s that the US needs a strict approach to China and the nation’s rising global influence. Both candidates agree that the eastern superpower has abused its economic power in the realm of international trade, but the method by which to remedy the issue is where the presidential candidates begin to differ.
UN Technology Bank and The Commonwealth join forces to support least developed countries (UN)
The UN Technology Bank and The Commonwealth have formed a new partnership to support least developed countries (LDC’s) through technology transfer, capacity building and knowledge sharing. The two organisations signed a memorandum of understanding committing to collaborate to build science, technology and innovation capacity for least developed countries in the Commonwealth. The strengthened cooperation will focus specifically on promoting structural transformation of LDC economies in an effort to help eradicate poverty, fostering long-term sustainable development.
The race against economic inequality within emerging markets – a case for SMEs (Microsoft)
Small and Medium Enterprises (SMEs) represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies, and these numbers rise significantly if we include informal SMEs. Many SMEs across the world, but particularly in emerging markets, struggle with the same challenges – lack of access to affordable finance, trade and investment barriers, and lack of access to global markets. Poor physical and ICT infrastructure often prevent SMEs from operating efficiently or accessing international markets at competitive costs. Digitisation offers SMEs new opportunities to participate in the global economy, but many are lagging in digital transformation and access to the internet remains unattainable for many in the region. We’ve found that investing into strategic partnerships can provide much-needed assistance for SMEs.
The impact of travel restrictions on trade during COVID-19 (VOX, CEPR Policy Portal)
Global trade has taken a great hit in the wake of the current pandemic. In the second quarter of this year, global merchandise trade saw the sharpest quarter-on-quarter decline ever recorded, falling by 14.3% compared to the previous period. The WTO forecasts a 9.2% annual decline in merchandise trade for 2020. Much focus has been directed towards the initial breakdown of supply chains as well as issues related to the distribution of food and medical supplies. The breakdown of many supply chains has also served as a reminder of how dependent countries are on trade, and especially of how important China is as a supplier of inputs to the rest of the world. One aspect that has received less attention is how current travel restrictions have impacted trade by making it hard for business partners in different countries to meet in person.
DDG Wolff: Pandemic crisis highlights need for enhanced cooperation (WTO)
In the wake of the pandemic, WTO Members, many of whom are also active with the IGTC, re-affirmed their commitment to a fair and market-oriented trading system. Many of these Members joined forces and showed readiness to: (i) promote international co-operation; (ii) facilitate information exchange to mitigate supply chain disruptions; (iii) and safeguard global food security through open, predictable and transparent trade. While there were export restrictions put into place to promote food security when the spread of COVID 19 became global, many of these measures have since been rolled back.
DHL moves to reap from intra-Africa commerce (Business Daily)
The German government has partnered with global logistics firm, Deutsche Post DHL Group to moot an e-commerce platform that facilitates cross border trade in Africa. The Sh3.8 billion digitisation drive will reduce manual customs and trade processes in favour of digital clearance protocol running in tandem with an e-commerce platform thereby helping promoting a bulk goods movement regime thereby promoting low-emission logistics in cities. “Bureaucratic customs procedures and corruption are hampering intra-African trade but with a new digital system, we are helping medium-sized African companies to handle customs completely digitally,” he said adding that programme is to be implemented in Kenya, Morocco, Rwanda, Ghana and the Ivory Coast.
China-Africa trade records progress under Forum framework – Envoy (Naija247news)
China-Africa Trade relations has recorded tremendous increase under the Forum on China-Africa Cooperation (FOCAC) in two decades. “In 2019, direct Chinese investment stock in Africa topped 49.1 billion US dollars, up by nearly 100 times from the year 2020; China-Africa trade reached 208.7 billion, 20 times the size of 2020. China has been Africa’s largest trading partner for 11 years in a row, and has contributed more than 20 per cent to Africa’s growth for a number of years. Cooperation in other fields, from technology, education, culture, health, to people to people exchange, peace and security is also making a significant headway, said Mr Zhao Yong, Deputy Ambassador of the People’s Republic of China to Nigeria.
Five-year plan holds promise for Africa (China Daily)
The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, held last week, laid out a comprehensive guideline for the 14th Five-Year Plan (2021-25), which covers major aspects of China’s socioeconomic life. The launch of the five-year plan is also a launchpad for China’s second centenary goal of becoming a modern socialist economy by 2035. Several components of the five-year plan will have far-reaching effects on Africa, because China is the largest trading partner of the continent by far. The CPC Central Committee resolved to continue opening up the economy and to avoid the unrealistic event of decoupling from the global economy.
Related News
tralac Daily News
National
Loss of capacity and skills in cotton value chain costs SA R20bn (Cape Business News)
Despite the solid growth that the South African cotton industry has experienced in the last seven years, the country still lacks the capacity and skills within the value chain to take full advantage of local beneficiation. This means that most of the land’s lint cotton is exported for processing before the final product is imported again. This translates into an opportunity loss of about R20,4bn of beneficiation in the local cotton value chain based on the 2018/19 production year’s output of 51,000 tonnes of lint cotton.
President Ramaphosa to address Infrastructure South Africa roundtable (SAnews)
President Cyril Ramaphosa will today open and address the Infrastructure South Africa (ISA) Project Preparation Roundtable and Market Place at the Gallagher Convention Centre in Midrand, Gauteng. The Infrastructure South Africa Project Preparation Roundtable and Market Place aligns with the first priority President Ramaphosa presented last month at the joint sitting of Parliament on the South African Economic Reconstruction and Recovery Plan.
South Africa: Necessary measures needed to avoid Covid resurgence (The Africa Report)
South Africa’s stringent lockdown earlier this year may have saved lives by containing the spread of COVID-19. New COVID-19 infections have been declining and lockdown restrictions relaxed. But this has triggered fears of a new wave of infections. More must be done to reinforce these preventative behaviours to avoid a surge in infections. This is particularly urgent given that South Africa’s early strict lockdown resulted in tremendous social and economic costs to the country.
New-vehicle sales down 25.4% in October, exports at risk as second Covid wave hits Europe (Engineering News)
Total South African new-vehicle sales declined by 25.4% in October, to 38 752 units, compared with the 51 968 vehicles sold in the same month last year. The new-passenger-car market also fell by 25.4%, to 26 793 units. Some good news is that the car rental industry accounted for “an encouraging” 12.8% of passenger car sales in October, says National Association of Automobile Manufacturers of South Africa (Naamsa) CEO Mikel Mabasa.
Agricultural prices improve by 5% as economy recovers (East African Business Week)
According to the June 2020 Uganda Bureau of Statistics report, food crop growing activities registered a growth of 4.3 per cent in 2019/2020, compared to the 1.5 per cent growth in 2018/19, while livestock growing activities grew by 7.7 per cent in 2019/2020 compared to 7.3 per cent in 2018/19. “The 5 percentage points price improvement, is largely attributed to the gradual recovery of activities in the agricultural sector and the economy as a whole, case in point is the improved price of Matooke and other foodstuffs,” noted Evans Nakhokho the Chief Manager Agribusiness at Centenary Bank during a thought-leadership forum hosted by Bank under the theme: Interventions for Agribusiness Development.
Broke Kenya eyes extra Covid-19 loan from IMF (BusinessDaily)
Kenya has for the second time in less than six months reached out to the International Monetary Fund (IMF) for budget support to weather the coronavirus economic hardships. The type of credit Kenya has sought from the IMF is a quick-disbursing facility where money flows straight into the budget to top up the public purse and is used at the discretion of the government. Kenya’s economy shrank by 5.7 percent in the second three months of 2020, its first quarterly contraction since the global financial crisis 12 years ago, as the Covid-19 pandemic shut businesses and kept people at home. The Treasury expects growth of less than 2.5 percent compared to 5.4 percent last year, and international institutions are making lower forecasts.
Zimbabwe records trade deficit in September (China.org.cn)
Zimbabwe recorded a trade deficit of 42.6 million U.S. dollars in September 2020, the Zimbabwe National Statistics Agency (Zimstat) said on Monday. According to the statistics agency, the country exported goods worth 398.8 million dollars during the month, less than the value of its imports which stood at 441.4 million dollars. The imports were up by nine percent compared to August, while exports increased by 2.4 percent from 389.3 million the previous month.
Make Ghana pharmaceutical hub in Africa – President (Graphic Online)
President Nana Addo Dankwa Akufo-Addo has given an assurance that the government will work actively and speedily to ensure that the pharmaceutical industry takes advantage of the African Continental Free Trade Area (AfCFTA) agreement to become the drug manufacturing hub in Africa. He said the industry held tremendous opportunity and called for coordinated efforts among industry players, financial institutions and the government to position Ghana to take advantage of the great new opportunity that was beckoning. ”The pharmaceutical society and the pharmaceutical industry are clear growth points for the future of Ghana’s economy, and I think it is my duty to be out there battling for everything that we can do to assist with that growth. There is a great deal that comes from you for the country,” he said.
Ghana and Rwanda to explore business opportunities (Ghanaweb)
Government has called on the business community in Ghana and Rwanda to take advantage of their vast economic potentials to explore business opportunities in all sectors of the economy. The government also encouraged the Rwandan government and businesses to invest in Ghana for mutual benefits. Mrs Shirley Ayorkor Botchwey, the Minister of Foreign Affairs and Regional Integration said Ghana was among the countries across the continent with a conducive investment climate coupled with good incentives provided under the Ghana Investment Promotion Centre Act 2013, Act 865. She mentioned that the establishment of the African Continental Free Trade Area (AfCFTA) presented new opportunities to both countries to expand trade relations at the bilateral and continental levels.
Upcoming Bank of Namibia 21st annual symposium to unpack the African Continental Free Trade Area (Namibia Economist)
The Bank of Namibia 21st Annual Symposium will take place on Thursday, 05 November, under the theme: Positioning Namibia to reap the benefits of the African Continental Free Trade Area (AfCFTA). The Minister of Industrialisation and Trade, Hon. Lucia Iipumbu, shall deliver the keynote address at the event. The symposium aims to unpack challenges, namely: limited manufacturing activity, infrastructure constraints as well as tariff and non-tariff barriers that, amongst others, hinder trade between Namibia and the rest of Africa.
More trouble for Nigeria as crude oil prices drop 3% (TheCable)
The price of Brent crude dropped by 3.43 percent to $36.64 per barrel on Monday after some European countries imposed another round of lockdown to slow the spread of the coronavirus. COVID-19 infections have been spreading in various parts of the world as scientists and health professionals warn of a second wave of the outbreak. Crude oil earnings account for a large portion of Nigeria’s revenue and the economy is projected to enter its second recession in five years on the back of low oil prices and reduced economic activities due to a lockdown imposed to stop the spread of the virus. To combat the crude revenue drop, the Nigerian government is already making effort to shore up non-oil revenue.
Kenya to tap Sudan market after sanctions fall (Nation)
Kenya is hoping the end of sanctions the US had imposed on Sudan could stabilise its tea market and open up investment opportunities for Nairobi’s firms. The US announced this week that it was dropping sanctions imposed on Khartoum 23 years ago after it designated Sudan as a State sponsor of international terrorism. “We have been trading with Sudan under many formations including Comesa,” Johnson Weru, the Trade Principal Secretary, told the Nation, referring to the Common Market for East and Southern Africa, a trading bloc of 14 countries in the region. “We shall definitely improve our trade especially on products that we mutually cumulate.”
Africa
Nigeria: Can Africa’s Regional Economic Communities Produce A Continental Market? Part 1 (Mondaq)
The AfCFTA is set to create a single continental market for goods and services for more than one billion, two hundred million people on the African Continent. In addition to the creation of a single African market, will free movement of business, persons and investments across the continent ultimately lead to the emergence of a customs union? The World Trade Organisation (WTO) sanctions and recognises that trade associations formed along regional lines can be instrumental as units of development suitable for both advanced and developing economies.
NGOs call for a total end to AfDB support for fossil fuels (Afrik 21)
The African Development Bank (AfDB) must put in place a directive excluding the financing of fossil fuels, and publish it without delay on its website. This is the subject of an open letter from environmental civil society organisations to AfDB President Akinwunmi Adesina. The latter is called upon to sign a note from which his financial institution will no longer finance and provide financial and technical support to coal, gas and oil projects on the African continent. This call comes as a prelude to the “Finance in Common Summit”, which the AfDB will attend from 9 to 12 November 2020 in France.
AU chief seeks proactive gender-responsive to African infrastructure growth (The Nation Nigeria)
African Union (AU) Commissioner for Infrastructure and Energy Dr. Amani Abou-Zeid has canvassed the need to integrate gender-responsive approaches in infrastructure planning and implementation for Africa to reach its full potential. Commissioner Abou-Zeid spoke at the opening of the Gender-Responsive Infrastructure Development Webinar hosted by the African Network for Women in Infrastructure (ANWIN). According to her, the COVID-19 pandemic has revealed the deficiencies across the various sectors of infrastructure in Africa. “The impact of the global pandemic worsens the constraints women face, due to the already challenging infrastructure landscape in the continent,” she said, referring to the disproportionate burden African women shoulder due to infrastructure deficits.
Jumia opens logistics service to third parties (Logistics Update Africa)
Jumia has made its logistics service available for use by third party businesses who wish to leverage its network, technology and expertise for last mile deliveries across 11 countries in Africa. Till now, Jumia’s logistics services were reserved for ecommerce and food vendors operating on its marketplace. “Businesses across the countries are re-examining their costs, especially during Covid-19. For many, logistics is a major cost driver and headache to manage. We have the right infrastructure, people, partnerships and technology required to help third parties and partners solve logistics and marketing challenges. We believe we can provide better quality of service at lower cost,” Kumar said.
Fintech in Africa: Reshaping the financial sector (CGTN)
In the last decade, the impact of financial technology (fintech) on Africa’s financial sector and other key sectors has been phenomenal. As a key driver of growth in the region, fintech is a viable alternative to traditional banking in urban and rural areas. In Africa, fintech creates an enabling environment that opens up the financial sector’s value chain and promotes efficiency gains. In Sub-Saharan Africa (SSA), fintech is a catalyst for growth in financial inclusion and innovation. Although poverty is prevalent in SSA, with a large proportion of low-income households in the region, the remarkable growth in digital financial services has created a new fangled market that allows the people in the region to access reliable, affordable and sustainable financial services.
Foreign Investment is Vital for Africa’s Growth: We Must Do What We Can to Encourage It (Africa Oil & Power)
Despite the COVID-19 pandemic, not all of the economic news in Africa has been negative. We continue to see promising developments. We address the value of investment activity in our upcoming 2021 Africa Energy Outlook. “Investments are required to convert resources in the ground to revenue and value,” the report says. “The investments represent jobs and business for a plethora of oil field service providers and is therefore an important metric to the wider activity level around the oil and gas industry.” While the report describes widespread declines in capital expenditures in the continent’s oil and gas industry, it notes that they are taking place, primarily, because of COVID-19. An investment rebound is possible after the pandemic, the report says, if oil prices exceed current expectations.
A judiciary that is independent and impartial is the bedrock of a democracy and the rule of law, and is the last line of defence against any encroachment on rights and freedoms under law. Based on the current Africa Integrity Indicators, the continent is making progress, albeit slowly, on judicial independence. However, to fight corruption effectively also requires an enabling legal framework, which most Southern African Development Community countries don’t have. The unspoken tragedy in Africa that keeps corruption alive is that the proceeds of crime and illicit money are the raw material for election campaigns and election buying, says the writer.
Communiqué: Commemoration of the 11th Africa Day for Food and Nutrition Security (African Union)
The 11th Africa Day for Food and Nutrition Security (ADFNS) was commemorated virtually on 30th October 2020 under the theme “Resilient Food Systems toward Healthy Diets for the Vulnerable during Emergencies: Lessons from the COVID-19 pandemic”. The focus of the 11th ADFNS is to uncover the underlying benefits and potential that investment in resilient food systems can create with special focus on situations dictated by emergencies such as the Covid-19 pandemic.
International
Donald Trump’s ‘foreign policy’: Fact-checking US$166 bn China-Africa trade claim (Africa Check)
In an October 2020 online article, South Africa’s Mail & Guardian said that while US president Donald Trump’s mission was to make America great, his administration had “largely remained disengaged” with Africa. In contrast, as US influence lost ground under Trump, who the article noted hasn’t travelled to Africa, China “further accelerated its influence” on the continent. The newspaper said: “Trade between Africa and China has grown rapidly, reaching US$166 billion in 2011, according to the United Nations.” But it didn’t give any more recent figures that could have included the Trump years. Trump took office in 2017. As the US votes on 3 November, does this number stand up to closer scrutiny? What is the most recent volume of trade? And is there a rivalry between the US and China for Africa? We went in search of answers.
WTO Officials Mull Delay in Okonjo-Iweala’s Fate over COVID-19 Scare (THISDAYLIVE)
The World Trade Organisation’s (WTO) efforts to elect a new leader next week could be delayed for at least another month because of the rapid spread of COVID-19 in Switzerland. While some in-person meetings may be virtual, it was gathered that senior WTO officials are discussing whether to postpone their plan to formally confirm Nigeria’s candidate, Dr. Ngozi Okonjo-Iweala, as the next director-general of the WTO. According to Bloomberg, on Sunday, Geneva’s cantonal authorities announced strict new lockdown measures amid a surge in infections and hospitalisations in the Swiss city.
The Case for a Nigerian-Born Woman to Lead the World Trade Organization (US News)
The tariff wars of U.S. President Donald Trump’ administration have garnered enormous press coverage over the past four years, and rightly so. They have pitted America against the other major economies in the world in head-to-head high-stakes disputes. Global trade practitioners, however, have been equally focused on a battleground far from the eye of the general public the World Trade Organization. The WTO, made up of 164 members, is tasked with trying to bring new global trade agreements and resolve disputes over existing trade activity. This has been a longstanding aspiration. With the WTO director-general post now open, the Trump team has hit the pause button. The two finalists are Yoo Myung-hee, trade minister of South Korea, and Ngozi Okonjo-Iweala, a Nigerian-born economist and international development expert who also holds U.S. citizenship. The consensus candidate backed by the overwhelming number of member nations is Okonjo-Iweala. She has a director-general’s dream resume.
Labour urges UK trade secretary to end delays over Kenya and Ghana deals (The Guardian)
The Labour party has urged the UK trade secretary, Liz Truss, to end delays over rollover deals with Kenya and Ghana to prevent them being slapped with high tariffs when the UK leaves the EU on 1 January. Negotiations with Kenya and Ghana have yet to be signed off with only nine weeks to go before the UK’s transition deal with the EU comes to an end, when import charges would be imposed on goods worth £2.6bn from the African countries. With EU trade talks hanging in the balance and discussions with the US barely started, the trade department signed a deal with Japan last month that the shadow trade secretary, Emily Thornberry, warned massively favoured the world’s third-largest economy.
UK companies explore energy opportunities in Egypt (Oil Review Africa)
The UK Department for International Trade (DIT) and the Scottish Development International (SDI) have organised the first virtual energy event to explore business opportunities for UK-Scottish companies in Egypt’s transition to net zero. Undersecretary, Minister’s Technical Office, Ministry of Petroleum & Mineral Resources, Osama Mobarez said, “Egypt and the UK enjoy longstanding ties with special strategic partnerships in the oil and gas sector. The Egyptian Ministry of Petroleum and Mineral Resources has adopted several reforms and policies to ensure energy security, financial stability and enhance the investment environment to avail more opportunities. These reforms have resulted in several successes providing more opportunities to our partners and driving further achievements.”
Josep Borrell: Why Are EU-African Relations a Strategic Issue (EuBulletin.Com)
For European foreign policy, there are, perhaps, just three issues that truly qualify as ‘strategic’: the extent we manage to shape events in our neighbourhood; the way we navigate the growing strategic competition between the US and China and the nature of our future partnership with Africa and the kind of social-political model that will prevail on that continent. It is necessary to think about EU-Africa relations in these terms, as a strategic issue that deserves the highest level of attention.
UN pushes for technology in the fight against graft (Nation)
The United Nations Office on Drugs and Crime (UNODC) has challenged Kenya to embrace use of technology if it is serious about fighting massive corruption in public and private sectors. In Kenya, the main corruption loophole, according to audit reports, is manipulation of procurement system and other transactions that have increased the cost of doing business. Experts say the technology allows full traceability of transactions while building the roadmap to identify illicit activities or malfeasance. It also reduces illicit financial flows, strengthening the recovery and return of stolen assets, substantially reducing bribery and corruption, and developing effective, accountable and transparent institutions at all levels.
COVID-19: Remittance Flows to Shrink 14% by 2021 (World Bank)
As the COVID-19 pandemic and economic crisis continues to spread, the amount of money migrant workers send home is projected to decline 14 percent by 2021 compared to the pre COVID-19 levels in 2019, according to the latest estimates published in the World Bank’s Migration and Development Brief. Remittance flows to low and middle-income countries (LMICs) are projected to fall by 7 percent, to $508 billion in 2020, followed by a further decline of 7.5 percent, to $470 billion in 2021. The foremost factors driving the decline in remittances include weak economic growth and employment levels in migrant-hosting countries, weak oil prices; and depreciation of the currencies of remittance-source countries against the US dollar.
Fisheries subsidies negotiations chair introduces revised draft consolidated text (WTO)
“In putting forward this revision, I am mindful of the Trade Negotiations Committee guidelines that negotiating chairs, through the negotiating process, should aim to facilitate consensus and to seek to evolve consensus texts,” the chair said, noting that the revised consolidated text is without prejudice to any member’s position. The chair called on members to approach the revised text with a mindset focused on compromise. Given the ongoing COVID-19 pandemic and related containment measures, the chair asked members to remain flexible on arrangements for discussions on the revised consolidated text and said they will be informed once concrete plans are in place.
Related News
COVID-19: Trade-related news, analysis and resources
tralac is closely monitoring trade-related policy measures and responses to the COVID-19 pandemic adopted and implemented by African countries and beyond. Below is a selection of useful resources, analyses, news items and publications particularly relevant for trade and related developments on the African continent. This webpage is updated regularly to facilitate information-sharing and dissemination.
Page contents
COVID-19 Trade and trade-related measures
Africa
African countries have responded to the COVID-19 pandemic through the adoption of various trade and trade-related measures in an effort to contain the economic impact of the crisis. To monitor the situation and encourage the sharing of information, tralac has prepared a list of these measures, which is updated regularly from official sources.
To date, tralac’s country policy tracker covers COVID-19 trade and related measures for 39 African countries. In addition, tralac has a regional policy monitor covering the regional economic communities (RECs) and the African Union.
Policy monitoring tools
For information and resources relevant to Africa on the pandemic:
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Milken Institute COVID-19 Africa Watch: African Policy Monitor
Additional online tools monitoring policy responses to COVID-19:
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ITC MacMap COVID-19 Temporary Trade Measures page
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World Bank COVID-19 Trade Policy Database: Food and Medical Products
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WCO’s COVID-19 dedicated page
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Global Trade Alert’s 21st Century Tracking of Pandemic-Era Trade Policies in Food and Medical Products
Global monitoring by the WTO
The WTO Secretariat is monitoring member countries’ notifications on COVID-19. The list is an informal situation report and an attempt to provide transparency with respect to trade and trade-related measures taken in the context of the COVID-19 crisis.
Information Notes from the WTO Secretariat
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pdf Improving trade data for products essential to fight COVID-19: A possible way forward (977 KB) - 1 July 2021
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pdf Trade in Medical Goods in the Context of Tackling COVID-19: Developments in 2020 (522 KB) - 30 June 2021
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pdf Developing and delivering COVID-19 vaccines around the world: An information note about issues with trade impact (3.23 MB) - 22 December 2020
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pdf Trade in Medical Goods in the Context of Tackling COVID-19 (update) (533 KB) - 22 December 2020
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pdf Standards, regulations and COVID-19: what actions taken by WTO members? (update) (241 KB) - 4 December 2020
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pdf Future resilience to diseases of animal origin: The role of trade (187 KB) - 3 November 2020
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pdf The TRIPS Agreement and COVID-19 (233 KB) - 15 October 2020
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pdf How WTO members have used trade measures to expedite access to COVID-19 critical medical goods and services (277 KB) - 18 September 2020
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pdf COVID-19 and agriculture: A story of resilience (764 KB) - 26 August 2020
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pdf Cross-border mobility, COVID-19 and global trade (399 KB) - 25 August 2020
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pdf Trade costs in the time of global pandemic (813 KB) - 12 August 2020
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pdf The economic impact of COVID-19 on women in vulnerable sectors and economies (319 KB) - 3 August 2020
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pdf The COVID-19 pandemic and trade related developments in LDCs (451 KB) - 8 June 2020
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pdf Helping MSMEs navigate the COVID-19 crisis (254 KB) - 3 June 2020
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pdf Trade in services in the context of COVID-19 (270 KB) - 28 May 2020
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pdf E-commerce, trade and the COVID-19 pandemic (150 KB) - 4 May 2020
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pdf The treatment of medical products in regional trade agreements (799 KB) - 27 April 2020
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pdf Export prohibitions and restrictions (321 KB) - 23 April 2020
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pdf Transparency – why it matters at times of crisis (139 KB) - 7 April 2020
Members’ proposals on COVID-19
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pdf APEC Ministers responsible for trade virtual meeting: Joint statement 2021 (116 KB)
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pdf COVID-19 and beyond: Trade and health (revision) (118 KB) - 19 May 2021
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pdf Ottawa Group: Trade facilitation measures taken in response to COVID-19 (342 KB) - 29 September 2020
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pdf Statement on COVID-19 and the multilateral trading system by ministers responsible for the WTO (revision) (68 KB) - 30 July 2020
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pdf COVID-19 initiative: Protecting global food security through open trade (revision) (87 KB) - 26 June 2020
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pdf African Group Statement on the Implications of COVID-19 (78 KB) - 25 June 2020
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pdf June 2020 statement of the Ottawa Group: Focusing action on COVID-19 (96 KB) - 16 June 2020
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pdf COVID-19 Measures related to trade in goods: Communication (53 KB) - 4 June 2020
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pdf Responding to the COVID-19 pandemic with open and predictable trade in agricultural and food products (revision) (78 KB) - 28 May 2020
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pdf Statement on highlighting the importance of MSMEs in the time of COVID-19 (revision) (66 KB) - 25 May 2020
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pdf G20 Trade and Investment Ministerial Meeting: Ministerial Statement (131 KB) - 14 May 2020
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pdf Joint Ministerial Statement on COVID-19 and the multilateral trading system (58 KB) - 5 May 2020
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pdf Securing LDCs’ emergency access to essential medical and food products to combat the COVID-19 pandemic (171 KB) - 4 May 2020
On the tralac Blog
David Christianson
David Christianson and Trudi Hartzenberg
David Christianson
Gerhard Erasmus
Juliette Armelle Kouamo
David Christianson
Rwatida Mafurutu
Innocent Muranganwa
Innocent Muranganwa
Willemien Viljoen
tralac Publications
Paul Cormon and Willemien Viljoen - 03 Jul 2021
Gavin van der Nest - 03 Jul 2021
Gavin van der Nest 31 May 2021
Gavin van der Nest 19 Apr 2021
Taku Fundira 21 Dec 2020
Gerhard Erasmus and Trudi Hartzenberg - 29 Jul 2020
Rwatida Mafurutu and Talkmore Chidede - 25 May 2020
Gavin van der Nest - 14 May 2020
Gerhard Erasmus and Trudi Hartzenberg - 13 May 2020
Gerhard Erasmus - 06 Apr 2020
COVID-19 in Africa: Trade-related resources
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pdf Africa’s Pulse: Charting the road to recovery (5.66 MB) - World Bank, October 2020
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pdf Pulse Check: Trade Finance in Sub-Saharan Africa during COVID-19 (1.23 MB) - October 2020
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pdf Coronavirus disease (COVID-19) and migrant remittances: Protecting an economic lifeline (1.67 MB) - UNECA/ONE, September 2020
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pdf Harnessing Innovation and Emerging Technologies to Address the Impact of COVID-19 in Africa (2.22 MB) - AUDA-NEPAD, August 2020
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pdf Facilitating Cross-Border Trade Through a Coordinated African Response to COVID-19 (2.16 MB) - UNECA, August 2020
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pdf Africa trade and Covid‑19: The supply chain dimension (404 KB) - ODI ATPC Working Paper, August 2020
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pdf Assessing the Impact of COVID-19 on Africa’s Economic Development (2.18 MB) - UNCTAD, July 2020
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pdf Transformative policy solutions to support women-led businesses in Africa in a post COVID-19 world (1008 KB) - Policy Brief by Efe Ukala (ImpactHER), Elena Ruiz Abril (UN Women), Esther Dassanou (AfDB), July 2020
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pdf Feed Africa Response to Covid 19 (1.10 MB) - AfDB Brief, July 2020
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pdf The impact of Covid-19 on Africa’s energy sector and the role of RE to empower a long term and sustainable recovery (1.16 MB) - Res4Africa, June 2020
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pdf ‘Not a Good Time’: Economic Impact of COVID-19 in Africa (978 KB) - AfDB Working Paper, June 2020
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pdf COVID-19 in African cities: Impacts, Responses and Policies (1.65 MB) - Published by UN-HABITAT, UNCDF, UCLG-A Africa and UNECA, June 2020
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pdf COVID-19 Crisis in North Africa: The Impact and Mitigation Responses (1.01 MB) - UNECA, June 2020
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pdf Socio-Economic Impact of COVID-19 in Southern Africa (1.29 MB) - UNECA, May 2020
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pdf Economic Impact of the Covid-19 Pandemic on East African Economies (2.00 MB) - Deloitte, May 2020
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pdf Informal traders: A balancing act of survival (495 KB) - ATPC Policy Brief, May 2020
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pdf Covid-19 and Export Restrictions: the Limits of International Trade Law and Lessons for the AfCFTA (244 KB) - ATPC Policy Brief, May 2020
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pdf Impact of COVID-19 in Africa (1.27 MB) - UN Policy Brief, May 2020
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pdf How much will poverty rise in Sub-Saharan Africa in 2020? (626 KB) - World Bank Poverty and Equity Note, May 2020
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pdf Responding to COVID-19 in Africa: Using Data to Find a Balance (930 KB) - PERC, May 2020
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pdf How COVID-19 is changing the world: A statistical perspective (8.70 MB) - CCSA, May 2020
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pdf Insights on African businesses’ reactions and outlook to COVID-19 (962 KB) - ECA and ICE, 30 April 2020
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pdf COVID-19 in Africa: Alternative to Current Confinement Approaches (2.27 MB) - AUDA-NEPAD, April 2020
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pdf The African Development Bank Group’s Covid-19 Rapid Response Facility (1.01 MB) - April 2020
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pdf Saving Africa’s private sector jobs during the coronavirus pandemic (434 KB) - Policy Brief, April 2020
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pdf Measures for supporting domestic markets during the COVID-19 outbreak in Africa (206 KB) - FAO/AU brief, April 2020
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pdf Intra-African trade, the African Continental Free Trade Area and the COVID-19 pandemic (365 KB) - FAO/AU brief, April 2020
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pdf Safeguarding input supply chains for small scale agricultural producers in the context of COVID-19 in Africa (293 KB) - FAO/AU brief, April 2020
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pdf COVID-19 in Africa: Alternative to Current Confinement Approaches (2.27 MB) - AUDA-NEPAD, April 2020
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pdf Africa’s Response to COVID-19: Key Messages for IMF and WBG Meetings (592 KB) - UNECA, April 2020
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pdf AUDA-NEPAD and COVID-19 Response to Food Insecurity and Malnutrition, Volume 2 (1.70 MB) - 15 April 2020
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pdf The Impact of Covid-19 on Africa’s Trade and Integration: Commentary by Trudi Hartzenberg (794 KB) - ISPI (Istituto per gli Studi di Politica Internazionale), 9 April 2020
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pdf Africa’s Pulse: Assessing the economic impact of COVID-19 and policy responses in Sub-Saharan Africa (2.99 MB) - World Bank, April 2020
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pdf Trade Responses to the COVID-19 Crisis in Africa (277 KB) - World Bank Trade and COVID-19 Guidance Note, April 2020
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pdf Impact of the Coronavirus (COVID-19) on the African Economy (1.01 MB) - African Union Report, April 2020
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pdf Trade Policies for Africa to Tackle Covid-19 (1.20 MB) - ATPC Briefing Paper, 27 March 2020
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pdf Report on African Ministers of Finance Meeting: Emergency Request to the international Community on COVID-19 Response (341 KB) - 22 March 2020
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Virtual Conference on COVID-19 Impact on Africa - 19 March 2020
Additional resources
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pdf COVID-19 Trade Watch No. 12: 30 April 2021 (671 KB) - World Bank
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pdf COVID-19 Trade Watch No. 11: 31 March 2021 (836 KB) - World Bank
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pdf COVID-19 Trade Watch No. 10: 28 February 2021 (1.67 MB) - World Bank
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pdf COVID-19 Trade Watch No. 9: 29 January 2021 (956 KB) - World Bank
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pdf COVID-19 Trade Watch No. 8: 30 November 2020 (1.77 MB) - World Bank
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pdf COVID-19 Trade Watch No. 7: 31 October 2020 (878 KB) - World Bank
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pdf Phase II: COVID-19 Crisis through a Migration Lens (1.33 MB) - World Bank Migration and Development Brief 33, October 2020
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pdf Integrated national financing frameworks build back better (735 KB) - UN DESA Policy Brief, October 2020
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pdf A Pandemic Trade Deal: Trade and Policy Cooperation on Medical Goods (3.82 MB) - World Bank, September 2020
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pdf COVID-19 Trade Watch No. 6: 30 September 2020 (2.28 MB) - World Bank
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pdf Financing for Development in the Era of COVID-19 and Beyond (2.30 MB) - UN Policy Brief, September 2020
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pdf COVID-19 Related Travel Restrictions: A Global Review for Tourism (1.33 MB) - UNWTO Seventh Report as of 10 September 2020
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pdf Digital Technology in Social Assistance Transfers for COVID-19 Relief: Lessons from Selected Cases (636 KB) - CGD Policy Paper, September 2020
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pdf COVID-19 Trade Watch No. 5: 31 August 2020 (966 KB) - World Bank
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pdf COVID-19 and Transforming Tourism (832 KB) - UN Policy Brief, August 2020
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pdf COVID-19 Trade Watch No. 4: 31 July 2020 (3.19 MB) - World Bank
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pdf COVID-19 and Tourism: Assessing the Economic Consequences (3.64 MB) - UNCTAD, July 2020
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pdf Promoting Access to Medical Technologies and Innovation, 2nd edition: Intersections between public health, intellectual property and trade (9.02 MB) - Joint WHO-WIPO-WTO Publication, July 2020
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pdf G20 Surveillance Note: G20 Finance Ministers and Central Bank Governors’ Virtual Meeting (712 KB) - IMF, 18 July 2020
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pdf Implementation of the G20 Action Plan (511 KB) - IMF, July 2020
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pdf Global Productivity: Trends, Drivers and Policies (Advance Edition) (27.55 MB) - World Bank, July 2020
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pdf Post-COVID-19: Investment Promotion Agencies and the "New Normal" (3.12 MB) - UNCTAD, July 2020
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pdf Trade Financing and COVID-19: Joint WTO, ICC and B20 Statement (176 KB) - July 2020
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pdf COVID-19 Trade Watch No. 3: 29 June 2020 (947 KB) - World Bank
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pdf COVID-19 poses grievous economic challenge to landlocked developing countries (542 KB) - UN DESA Policy Brief, June 2020
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pdf Global Investors for Sustainable Development Alliance Statement of Action: COVID-19 and Beyond - Response and Recovery (132 KB) - 10 June 2020
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pdf Joint Call for Smooth Transit and Transport Facilitation To and From LLDCs (474 KB) - United Nations, 8 June 2020
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pdf COVID-19 and sovereign debt (540 KB) - UN DESA Policy Brief, May 2020
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pdf Compendium of resources on trade in times of crisis and pandemic: Version 1.0 (1.14 MB) - United Nations ESCAP, May 2020
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pdf COVID-19 pandemic deals a huge blow to the manufacturing exports from LDCs (539 KB) - UN DESA Policy Brief, May 2020
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pdf COVID-19 Trade Watch No. 2: 29 May 2020 (1.31 MB) - World Bank
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pdf Streamlining Technical Measures on Medical Products to Combat COVID-19 (271 KB) - World Bank Trade and COVID-19 Guidance Note, May 2020
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pdf Covid-19 and Food Protectionism: The Impact of the Pandemic and Export Restrictions on World Food Markets (2.29 MB) - World Bank Policy Research Working Paper, May 2020
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pdf World Seaborne Trade in Real Time: A Proof of Concept for Building AIS based Nowcasts from Scratch (916 KB) - IMF, May 2020
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pdf Recommendations to Leverage E-Commerce During the COVID-19 Crisis (285 KB) - World Bank Trade and COVID-19 Guidance Note, May 2020
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pdf Facilitating Air Freight – Policies and Actions (386 KB) - World Bank Trade and COVID-19 Guidance Note, May 2020
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pdf Health Services Trade and the COVID-19 Pandemic (1.49 MB) - World Bank Trade and COVID-19 Guidance Note, May 2020
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pdf Logistics and Freight Services: Policies to Facilitate Trade (407 KB) - World Bank Trade and COVID-19 Guidance Note, May 2020
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pdf Global Trade Cooperation after COVID-19: Can the G20 Contain Disintegration (401 KB) - IIT Policy Brief, April 2020
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pdf How countries can leverage trade facilitation to defeat the COVID-19 pandemic (695 KB) - UNCTAD, April 2020
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pdf The COVID-19 Crisis: Accentuating the Need to Bridge Digital Divides (1.69 MB) - UNCTAD, April 2020
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pdf The COVID-19 Pandemic and the Blue Economy (2.41 MB) - UNCTAD, April 2020
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pdf Competition and Consumer Protection in the time of COVID-19 (1.64 MB) - UNCTAD Newsletter April 2020
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pdf COVID-19: A 10-point action plan to strengthen international trade and transport facilitation in times of pandemic (1.15 MB) - UNCTAD Policy Brief, April 2020
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pdf Trade Facilitation Best Practices Implemented in Response to the COVID-19 Pandemic (174 KB) - World Bank Trade and COVID-19 Guidance Note, April 2020
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pdf COVID-19 Trade Watch: 16 April 2020 (792 KB) - World Bank
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pdf Commodity exporters face mounting economic challenges as pandemic spreads (447 KB) - UN DESA Policy Brief, April 2020
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pdf COVID-19: Embracing digital government during the pandemic and beyond (369 KB) - UN DESA Policy Brief, April 2020
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pdf The impact of COVID-19 on women (691 KB) - UN Policy Brief, April 2020
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pdf Communiqué: G20 Finance Ministers and Central Bank Governors Meeting (218 KB) - 15 April 2020
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pdf IMO-WCO Joint Statement on the Integrity of the Global Supply Chain During the COVID-19 Pandemic (253 KB) - 15 April 2020
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pdf Statement on the Trade Policy Response to Covid-19: A Call for Urgent OECD Action (239 KB) - 7 April 2020
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pdf WCO-WTO Joint Statement on COVID-19-related trade measures (51 KB) - 6 April 2020
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pdf The Potential Impact of COVID-19 on GDP and Trade (1.28 MB) - World Bank Policy Research Working Paper, April 2020
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pdf Adapting the use of Asycuda World to the Covid-19 Situation: Guidelines to Customs Administrations (965 KB) - UNCTAD, April 2020
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pdf Impact of COVID-19 on informal workers (1.25 MB) - FAO, 7 April 2020
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pdf Trade in Critical Covid-19 Products (3.20 MB) - World Bank Guidance Note, March 2020
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pdf Do’s and Don’ts of Trade Policy in the Response to COVID-19 (109 KB) - World Bank Guidance Note, March 2020
Related News
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National
Trade stats shows domestic recession keeps imports low (Fin24)
A recovery in commodity prices and global demand saw SA record a trade surplus of R109.5 billion for the third quarter of the year, according to an economist. The SA Revenue Service on Friday released trade statistics for September 2020, which reflected a trade surplus of R33.5 billion. Exports increased by 23.3% during the period and imports declined 3.2%. By comparison, August recorded a trade surplus of R38.7 billion “The trade dynamics relate mainly to the recovery in commodity prices and global demand during the third quarter that aided SA’s export performance,” said Investec economist Kamilla Kaplan.
Power wobbles despite $1.6 billion investments (The Guardian Nigeria)
At a peak of 5,459.50 megawatts, Nigeria’s power sector still wobbles with low transmission capacity seven years after privatisation. This is despite the $1.6 billion invested through the World Bank, African Development Bank (AfDB), and other corporations. The $1.6 billion investment is in addition to other budgetary allocations to key power infrastructure and other revenues generated by the government-owned Transmission Commission of Nigeria (TCN).
Zimbabwean govt gingers up Covid-19 response (The Sunday Mail)
Government is reactivating and strengthening its rapid response machinery to respond to a possible second wave of coronavirus. To curb the spread of new infections, Government has deployed private testing laboratories at ports of entry to intensify testing. Chief coordinator for the national response to the Covid-19 pandemic in the Office of the President and Cabinet, Dr Agnes Mahomva, said the nation should guard against complacency. She said caution should be observed during the phased reopening of borders from December 1.
Uganda Agriculture Ministry reviews its 2019/2020 performance (New Vision)
Uganda has been one of the fastest-growing economies in Africa; and agricultural growth is key in helping the country progress towards middle income status. The Minister of Agriculture, Animal Industry and Fisheries (MAAIF), Vincent Ssempijja has said that the ministry has addressed a variety of agriculture challenges. According to Ssempijja, in the financial year 2019/2020, the ministry committed itself to address the issues that included mobilising and supporting small scale farmers along with the four-acre model concept, increasing exports of specific commodities, and Supporting individuals and companies for seed production.
Why we’re focusing on agriculture, industrial revolution – CBN (Vanguard)
The Central Bank of Nigeria (CBN) said it is providing and will continue to provide interventions for agriculture and industrial revival of Nigeria as the two sectors amongst others remained a veritable tool towards building a robust economy for the country. Nwanisobi said the 5-year policy thrust of the apex bank which covered 2019-2024 initiated by the CBN Governor will grow the real economy for the country. He said that the policy which centred around establishing a firm and stable microeconomic environment would pave room for low inflation, financial stability, exchange rate stability and efficient payment system.
Eswatini Rail Link (ESRL) project plans in good progress (Construction Review Online)
Plans for the implementation of the Eswatini Rail Link (ESRL) project, which is a joint inter-railway strategic initiative between Transnet Freight Rail (TFR), the South African rail manager, and Eswatini Railways (ESR), are in good progress, reportedly in the fund acquisition stage which when successful will be followed by the construction phase. The project is aimed at creating a dedicated General Freight Business (GFB) corridor for Transnet whilst providing the much needed additional capacity for Eswatini Railways. It entails the construction of a 150-kilometer long new railway link between Lothair in South Africa and Sidvokodvo in Eswatini, formerly known in English as Swaziland.
To Better Address the COVID-19 Crisis, Niger Should Focus on Health Measures and on Protecting Jobs and Livelihoods (World Bank)
According to the World Bank’s latest Economic and Poverty Update for Niger published today, the COVID-19 pandemic has a significant impact on the economy and could trigger a recession if the many downside risks to economic activity materialize. The economic slowdown has already reversed the decline in the poverty rate seen for several years in Niger, pushing close to 270,000 Nigerians into poverty this year. The report notes that Nigerians have been severely impacted by the combined effects of the pandemic, the global recession, and the economic slowdown in the country. These different shocks have led to job and income loss, an increase in some food prices, and disruptions in the system providing social protection and delivering basic services, in particular health and education services. Consequently, the poverty rate is projected to rise from 40.8% in 2019 to 42.1% in 2020.
Africa
#BuyAfricaBuildAfrica initiative launched to promote African brands, goods (KBC)
BCW Africa, Brand Leadership, Kantar and Geopoll Friday announced the launch of the #BuyAfricaBuildAfrica initiative. This initiative encourages local brands to adopt the #BuyAfricaBuildAfrica stamp of approval for ‘made in Africa’ brands and to wear their local identity with pride. “African brands have an important role to play in helping to build the image and competitiveness of the continent,” says Thebe Ikalafeng, Executive Head: Brand Leadership and Founder of Brand Africa 100. With the #BuyAfricaBuildAfrica initiative, there are five criteria for qualification as an African brand:
IATF2021 Advisory Council Holds 7th Meeting Virtually (African Export-Import Bank)
The Advisory Council of the second Intra-African Trade Fair (IATF2021) convened on 4 September 2020 for its seventh session to review the event workplan and other initiatives accompanying the Trade Fair. Due to the ongoing COVID-19 pandemic, the Advisory Council met virtually for the second time. Addressing the meeting, President Obasanjo highlighted the difficulty in the necessary decisions made to postpone the event in light of the COVID-19 pandemic situation, giving the continent and the world more time to adjust to the challenges of the pandemic and avoiding the risk of postponing the Event more than once. “The choice of the month of September 2021 was also meant to accord countries and businesses enough time to recover from the effects of Covid-19 pandemic, and we expect that by then, global travel and global commerce and supply chains would have gotten back to normal,” he explained.
Ecobank Restates Commitment to AfCFTA (Proshare)
The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has said the bank is prepared to partner with other organizations to explore the opportunities available in the African Continental Free Trade Area (AfCFTA). Akinwuntan in his remark at an event in Lagos pointed out that the pan African bank was set up primarily for the economic integration and development of Africa, stressing that the bank was ready to deploy its capacity, platform and network to achieve the AfCFTA objectives.
THE BIG INTERVIEW: Amadou Diallo, CEO, DHL Global Forwarding Middle East & Africa (Logistics Middle East)
Collaboration has been the key to ensuring consumer, medical and humanitarian goods continue to flow around the world in spite of strict border controls introduce during the Covid-19 pandemic. But the last few months have not just been about industry piers working alongside each other. Larger organisations have found themselves looking internally for guidance on how to navigate the crisis. DHL Global Forwarding is one of the firms to have enjoyed the luxury of having a rich pool of knowledge and employees based around the world. The challenges of shifting goods – regardless of their nature – across borders during a pandemic soon became clear to Amadou Diallo, CEO of DHL Global Forwarding Middle East and Africa and his colleagues. In the midst of global border closures, DHL Global Forwarding established a communication line with all of its operator partners, which provided daily updates on border closures and customs regulation changes.
ECA launches new report on extractive sector governance (UNECA)
Sudan’s Prime Minister, Abdalla Hamdok, and Economic Commission for Africa’s (ECA) Executive Secretary, Vera Songwe, on Friday launched a new publication that proposes actions that need to be put in place to stem Illicit Financial Flows leakages before they leave Africa’s shores. The Report notes that once the resources leave Africa, getting them back involves a complicated process requiring capacities often in short supply in African countries. Furthermore, the speed and ease of loss across national boundaries, easily breach Africa’s national financial security defense lines. This trend, states the Report, must be halted. The Report, titled; Institutional Architecture to Address Illicit Financial Flows from Africa, was launched during a high-level roundtable convened by UN Deputy Secretary-General, Amina Mohammed on the theme: Extractive Industries as an Engine for Sustainable Development: The Case of Africa.
pdf Institutional Architecture to Address Illicit Financial Flows from Africa: A Primer (3.84 MB)
The Ministers Responsible for Energy, and for Water from the Southern African Development Community (SADC) met on 30th October 2020 through video conferencing hosted by the Republic of Mozambique. The Ministers deliberated on programmes of regional dimensions in support of the implementation of the recently approved SADC Regional Indicative Strategic Development Plan (RISDP) 2020-30 and the SADC Vision 2050, particularly programmes of infrastructure development. The meeting also considered a report on the impact of the COVID-19 pandemic and how it has affected investments in the Energy and Water sectors in the Region, and proposed mitigation measures that could be applied at regional and national level. Ministers reviewed strategic instruments for guiding adherence to COVID-19 and similar pandemics in the energy sector at regional and national level, and called for continuous assessment and monitoring of the impacts.
Africa’s energy masterplan takes shape as African Development Bank and AUDA-NEPAD release key report (AUDA-NEPAD)
The African Union Development Agency (AUDA-NEPAD) and the African Development Bank have released recommendations of a baseline study that looked into the development of a continental energy grid and market. The study, supported by the European Union, is the first step in an ambitious project to create an efficient, competitive energy sector that helps to serve Africa’s vast non-connected population, which is key to the continent’s economic prospects. The recommendations were discussed at a roundtable meeting between the partners organized by the African Development Bank on Wednesday 28 October.
White Paper: Harnessing Innovation and Emerging Technologies to Address the Impact of COVID-19 in Africa (AIDA-NEPAD)
The first Specialized Technical Committee on Education, Science and Technology (STC-ESTI) requested the AU Commission and AUDA-NEPAD to advise Member States and RECs on matters of technology prospecting, including regulatory and ethical requirements that need to be put in place in order for the continent to benefit from emerging technologies. The Ministers further directed the then NEPAD Agency to establish a system for obtaining expert contribution on the matters of technology development, acquisition, and deployment for socio-economic development.
The month of November is a special one for us in Africa. Fourteen years ago, the African Heads of State and Government designated November 1st as Africa Youth Day, and for the past few years, we have celebrated African Youth throughout the month of November. This year, the theme of Africa Youth Month is ‘Youth Voices, Actions and Engagement: Building A Better Africa’ This year’s theme is a testament to the immense and inspiring work of young people, further highlighted by our youth’s response to the COVID-19 pandemic which touched every corner of the world in 2020. As Africa grappled with real challenges which were further intensified by the pandemic, our youth more than rose to the occasion.
International
Nigerian Still in Line to Lead World Trade Organization, Despite US Opposition (Voice of America)
Nigerians have expressed confidence that the country’s former finance minister, Ngozi Okonjo-Iweala, will still become the first African and first woman to lead the World Trade Organization, despite opposition from the United States. The 66-year-old has secured strong backing to become the WTO’s director general, but the U.S. this week put its support behind a South Korean candidate. Okonjo-Iweala has gathered support from many WTO member countries, but the U.S. is backing her only opponent, South Korea’s Trade Minister Yoo Myung-hee, citing her skills and experience in international trade dealings. But Nigerians continue to stand behind Okonjo-Iweala, who once served as the country’s finance minister.
Covid-19 pandemic to fuel $4trn global GDP loss in 2020 (Businessamlive)
The economic uncertainties occasioned by the coronavirus induced-recession will see many economies’ real gross domestic product (GDP) plunged by $3.94 trillion in 2020, statistical data compiled and presented by BuyShares show. The statistic also shows ten countries, which will be impacted the most, will cumulatively lose $696.56 billion in real GDP due to the pandemic. And as projected, the pandemic has elicited massive losses in different sectors of these economies already, which can be reflected in metrics like the real gross domestic product.
From strength to strength: Kenya-US partnership from Agoa to FTA (The Star)
The US and Kenya believe in a strong economy through an open, free marketplace allowing entrepreneurs, businesses, and the private sector to thrive and create jobs. The African Growth and Opportunity Act enhanced markets, allowing Kenyan businesses to grow. The Act will expire in 2025 and, while it has been helpful, Agoa has not been transformative in driving the broad-based economic growth Kenya seeks. Kenya is ready for the next step, a US-Kenya Free Trade Agreement that will bring our relationship from reliance on tariff preferences that erode over time and can be unilaterally withdrawn, to an agreement that drives more efficient uses of resources and expands trade.
‘South-South collaboration can ensure equal access for COVID-19 vaccine’ (The Week)
The similarities are striking – much like India, Africa’s death rate due to COVID-19 has been lower than in the developed world, antibody surveys have detected large number of infections, and governments in the region are concerned over the threat of second wave of infections, even as economic compulsions have made lockdown and tight restrictions nearly impossible now, despite the upcoming threat. Dr Githinji Gitahi, group CEO of Amref Health Africa, the largest African-led international organisation on the continent, feels that though Africa had the experience of Ebola when dealing with COVID-19, the way forward for resource-constrained countries such as India and Africa is investing in primary health care. Focusing on health information systems with adequate data protection safeguards, too, will be crucial, as will enhanced health budgets, if countries want to successfully prepare and manage health crises in the future.
FOCAC: 20 Years of extensive consultation, joint contribution and shared benefits (Mmegi Online)
China is the largest developing country and the African continent is home to the largest number of developing countries. China and Botswana enjoy longstanding friendship, and our bilateral relations have benefited greatly from FOCAC. In 2018 when President Masisi paid a state visit to China and attended the FOCAC Beijing Summit, China-Botswana relations have ushered in a new era. Guided by the “Eight Major Initiatives” proposed at the Beijing Summit, China and Botswana have signed agreements and MOUs in such areas as mutual visa exemption; economic, trade, investment and technical cooperation; as well as human resources development. China-aided projects such as Mmopane Primary School and Kazungula Primary School are in smooth progress. And Botswana beef export to China is just around the corner.
World’s richest nations jostle to lead globalisation clubhouse (Moneyweb)
The race to fill a role at the heart of world economic policy making is turning into a new battleground for the future of globalisation. The OECD acts like an auditor for globalisation, shaping policies and setting standards in areas from taxation to trade and education. It’s currently running contentious negotiations over digital taxes that are on the brink of imploding into a transatlantic trade war. Liddell faces competition from European candidates on the other side of that issue, including former EU trade commissioner Cecilia Malmstrom. “This is the most important multilateral organisation that most people have never heard of,” said Daniel F Runde, Senior Vice President of the Centre for Strategic and International Studies. “The OECD sets the Marquess of Queensberry rules of globalisation,” he said, referring to the standards of modern boxing.
UK ministers ‘just cannot understand’ merits of aid spending, says Rory Stewart (Devex)
Rory Stewart, former U.K. secretary of state for international development, has said it was “incredibly difficult” to convince his Cabinet colleagues of the merits of aid spending while he was in government. At a time when public finances have been tight, Stewart added that politicians often preferred to avoid the topic. Speaking during a panel discussion Friday, he said that “it’s very, very difficult, frankly,” to make the case for development aid. “Not only can I not convince the public; I can’t even convince colleagues around the Cabinet table.”
DDG Wolff urges start of “serious discussion” on WTO reforms (WTO)
Our moderator has put to us three issues for our reactions: Economists say we are entering a period of deglobalisation, the UN secretary general is warning for the Great Fracture, the US and China are talking about decoupling and dual circulation. In this changing global trade context, what role is there for the WTO? How can the WTO rebuild confidence in the global trading system? What should be the priority for WTO reform, and is reform of the WTO possible?
Sustainable urbanization critical to COVID-19 recovery, better quality of life (UN News)
The World Cities Report 2020, released on Saturday, showcases the value of sustainable urbanization and how it can contribute to global efforts to build back better after the crisis. “The World Cities Report 2020 convincingly affirms that well-planned, managed, and financed cities and towns create economic, social, environmental and other unquantifiable value that can vastly improve the quality of life of all,” said Maimunah Mohd Sharif, the UN-Habitat Executive Director. “Urbanization can be leveraged for the fight against poverty, inequality, unemployment, climate change and other pressing global challenges.”
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National
Technical advisory panel on investment infrastructure being finalised (SAnews)
Public Works and Infrastructure Minister Patricia de Lille says the department is in the process of recruiting professionals to serve on the Technical Advisory Panel of Infrastructure South Africa (ISA).
“In August, we also advertised for professionals to serve on the Technical Advisory Panel for the Infrastructure Investment Plan. “This is to support the implementation of the plan and the panel will consist of technical experts from the following sectors - energy and alternative energy, financial structuring, infrastructure investment and planning, the oceans economy, urban management and green financing to name a few,” she said. De Lille said the experts will be used on a needs basis and called upon to provide independent, strategic, tactical and technical assistance to ensure the expedited planning, monitoring and implementation of the Infrastructure Investment Plan.
Bots wants to boost trade ties with Namibia (The Southern Times)
The Botswana Investment and Trade Center (BITC) wants to grow its relationship with the Namibia Investment Centre (NIC) to promote trade and joint ventures between companies from the two countries. Incoming Botswana High Commissioner to Namibia, Dr Batlang Comma Serema, last week told Globe Media that efforts were also being made encourage collaboration between the two countries’ chambers of commerce. According to the United Nations COMTRADE database on international trade, Namibia’s exports to Botswana in 2019 stood at US$610,56 million, while Botswana’s exports to Namibia were valued at US$194,63 million.
Zambia debt woes expose difficulties in international assistance (Global Times)
Zambia has reached a deal to defer debt repayments that were due this month on a loan from the China Development Bank (CDB), the Reuters reported. Zambia’s debt woes show that the impact of the COVID-19 pandemic on international development assistance is increasing. Developing countries, especially the Least Developed Countries (LDC), are facing more difficulties. For the majority of underdeveloped countries, the pandemic has exacerbated the risks they face. There are signs that in underdeveloped countries, whether in terms of governance, gender equality, social equity, or many other goals set out in the 2030 Agenda for Sustainable Development, they have stalled.
Ghana: SPS Requirements and Good Practices for Export (CUTS International)
The manual identifies the good practices of safety and hygiene procedures of five food products for export to European Union. These products are (i) Cocoa beans, whole or broken, raw or roasted (ii) Cocoa butter, fat, and oil (iii) Cocoa paste, wholly or partly defatted (iv) Fresh or dried cashew nuts, in shell (v) Prepared or preserved tuna/skipjack/bonito. This is done at all stages of the product marketing circuit (production, harvesting, transport, packaging and export) through the understanding and monitoring of the various stakeholders in agriculture sectors in Ghana. The manual is based on findings from studies conducted along the selected food products to promote the competitiveness of SMEs so that they can better leverage the Europeans Union market opportunities.
COVID-19 harm Govt revenues (The Patriot On Sunday)
Minister of Finance and Economic Development Dr Thapelo Matsheka said government revenues would fall from P62.4 billion to P52.3 billion in 2020/21 financial year due to the big decline in mineral revenue from P20 billion to P10.5 billion. Billions of dollars’ worth of goods begin the final leg of their in-land journey to Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of the Congo aboard transport trucks originating at the sprawling port of Mombasa in southeast Kenya. The drivers were identified early on as a high-risk group for the spread and transmission of COVID-19. This, combined with border closures and other mobility restrictions, brought much of the trade in the region to a grinding halt.
Rwanda to commission consulate in Ghana to enhance intra-African trade as AfCFTA takes off (Ghana Business News)
The Rwanda government has announced the commissioning of its consulate in Ghana to coordinate and strengthen Ghana-Rwanda relations in the face of a common trade platform. The Mission in Ghana will add to the already existing ten on the African continent. According to Dr. Kacyira, the High Commission in Ghana will cement the bilateral relations between the two countries. She mentioned among other things key areas both countries need to focus on including tourism, agriculture, and education. “My appeal is that we need to celebrate this milestone of Africa integration. My president is very very committed to the AfCFTA,” she said. “The AfCFTA is just one of the reasons for us to come and establish here in Ghana. Ghana produces cocoa and it’s processed in Switzerland. Why not in any other African country?” she asked.
Africa
Senzo Mchunu launches Africa Sovereign Credit Review Report (Devdiscourse)
Public Service and Administration Minister Senzo Mchunu in his capacity as the African Peer Review Mechanism (APRM) Focal Point for South Africa has launched the First Edition of the Africa Sovereign Credit Review Report. The APRM authored an Africa sovereign credit rating review report in collaboration with the African Development Bank and the United Nations Economic Commission for Africa. The report is the first edition of a bi-annual publication on developments and trends in the area of sovereign credit rating services by international rating agencies among African countries.
Nigeria – Ghana trade tensions: Proof AfCFTA may not bring unity (The Africa Report)
The African Continental Free Trade Area (AfCFTA), initially meant to rollout in July of this year, was created to solidify economic regional cooperation within the continent. But looking to the complex trade relations already brewing in West Africa, many of the problems the AfCFTA is likely to face on the continent are already being highlighted. West African governments, particularly the administration in Nigeria led by Muhammadu Buhari, have shown signs of leaning towards economic nationalism and protectionism – protecting people and property above all, with a fear of foreign competition. In addition, the path towards a singular currency in the region has not been without dispute. Looking at the trade relations between Nigeria and Ghana – the two economic giants of West Africa – in recent years, it is clear that trade relations are strained, with the actions and reactions from both sides drawing them further away from cooperation.
Digital ‘Travel Pass’ set to accelerate Africa free trade area and economic integration (The Zimbabwe Daily)
African countries agreed last year to create the world’s largest free trade area measured by the number of countries participating, by January 2021. But amid health concerns stoked by the global Coronavirus pandemic, the Africa Centres for Disease Control and Prevention (Africa CDC) has urged African governments to embrace technology that helps speed up the continent’s economic integration. This has resulted in the Africa CDC establishing the Trusted Travel Platform to help digitally verify public health documentation for travellers at national borders. “We understand that governments are under pressure to implement the African Continental Free Trade Area (AfCFTA) as a way of reviving their economies, that are expected to lose between 25 and 30 million jobs due to the COVID-19 pandemic. But we are calling for caution as they open their borders,” a spokesman for the Econet Group said recently.
Yellow Card Scheme (Regional Motor Third Party Insurance Scheme for the COMESA Region) (The Zimbabwe Daily)
The COMESA Yellow Card cover is a regional third-party motor insurance scheme recognised by COMESA member countries as evidence of a guarantee to provide the minimum insurance cover required by the laws of the country visited by the travelling motorists. It was established by a protocol signed by Heads of State and Government in 1986 and became operational on 1st July 1987. Members of the National Bureau of Zimbabwe have now been granted permission COMESA to issue the by COMESA Yellow Card Third Party Motor Insurance cover under the Business to Business arrangements in South Africa and Mozambique.
Ministers to deliberate on the implementation of the SADC Regional Indicative Strategic Development Plan 2020-30 and the SADC Vision 2050 (Namibia Economist)
SADC ministers responsible for energy and water will deliberate on the implementation of the SADC Regional Indicative Strategic Development Plan 2020-30 and the SADC Vision 2050 particularly programmes for infrastructure development of the two sectors on 30 October virtually and chaired by Mozambique. The ministerial meeting will among others, review the initiatives aimed to support implementation of the regional power programmes and projects, petroleum and gas subprogrammes, promotion of new and renewable energy sources and energy efficiency issues, and the status on the establishment of energy regulators and modalities of strengthening the Regional Energy Regulators Association.
Private sector investment in Benin, Burkina Faso, Chad and Senegal to accelerate following EIB insurance support (Social News XYZ)
Private sector investment in Benin, Burkina Faso, Chad and Senegal, will be strengthened following European Investment Bank support for the countries in their membership and share capital increase in the African Trade Insurance Agency (ATI). The West and Central African states, Burkina, Chad and Senegal will join 18 African countries including Benin, who is already a member, where business investment, job creation and access to finance has been increased by targeted investment insurance. As seen elsewhere across Africa, ATI membership will help to address the economic, social and health challenges caused by COVID-19.
Timely COVID-19 Testing of Mombasa Port Truckers Helps Reinvigorate Economies - Kenya (ReliefWeb)
Thousands of truck drivers across Kenya have been tested for COVID-19 by the International Organization for Migration (IOM) since July, as part of a broader effort to reinvigorate regional economies impacted by COVID-19. Billions of dollars’ worth of goods begin the final leg of their in-land journey to Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of the Congo aboard transport trucks originating at the sprawling port of Mombasa in southeast Kenya. The drivers were identified early on as a high-risk group for the spread and transmission of COVID-19. This, combined with border closures and other mobility restrictions, brought much of the trade in the region to a grinding halt.
SMEs need policy support to compete in AfCFTA – Report (News Ghana)
A research report has recommended policy support for Small and Medium Enterprises (SMEs) to be competitive in participating in the African Continental Free Trade Area (AfCFTA). The report said the support should focus on cheaper and more innovative trade finance products, trade policy, trade infrastructure, improved capacity, trade information and facilitation, market access for growth and expansion of SMEs in the country. Dr Samuel Frimpong Boateng, the Lead Consultant for the Research made these recommendations at a stakeholder workshop on the report titled “Mobilising Diagnostics Data to Inform Bottom-Up Decisions on Government Policies.”
African FTA Could Transform Trade on Continent, but Infrastructure, Complacency Seen Pitfalls (Export Compliance Daily)
The African Continental Free Trade Agreement (AfCFTA) could potentially transform trade on the continent and bring it into global supply and value chains, but key parts of the deal remain unfinished, and infrastructure investment will be necessary to tap the agreement’s potential, panelists said on an Oct. 28 webinar hosted by law firm Squire Patton. Intra-regional trade has clear benefits for economic growth, social transportation and well-being, but Africa has the least of it of any continent, said Samuel Mwale, a Kenya-based business executive and coffee trader and an adviser with the Kenya Private Sector Alliance. AfCFTA is an opportunity for a “great future” for Africa, and one of the boldest pushes for a different Africa in the 21st century, Mwale said. But the deal isn’t done yet.
‘Better customs means better trade’ (The Southern Times)
The Southern African Customs Union (SACU) needs to spruce up its systems to facilitate efficient trade and support economic development, a senior Namibian government official has said. At a workshop on customs modernisation in Windhoek this week, deputy director in the Namibian Finance Ministry, Ms Yoolokeni Haihambo said modern customs unions went beyond revenue collection and played an active role in trade facilitation.
Sensitisation of shippers and businesses on AfCFTA critical-AGI (Ghana Shippers Authority)
The Volta and Eastern Regional Chairman of the Association of Ghana Industries (AGI), Mr. Dela Gadzanku has underscored the need for shippers and businesses to be sensitised on the benefits of the African Continental Free Trade Area (AfCFTA) agreement. This, he said, would help them to make informed business decisions in order to take advantage of the full potential of the agreement for the economic transformation of Ghana and Africa as a whole.
AfCFTA key in driving auto sector investment momentum on the continent – Nissan boss (The Africa Report)
“We see Africa as a big opportunity,” says Guillaume Cartier, senior vice-president and chairman for Africa, the Middle East and India region at car maker Nissan. “The market will grow,” Cartier says. He points to the continent’s sizeable population – “it’s big.” Auto ownership is not as high nor as saturated as other more mature markets. Most importantly, “there is potential.” Nissan is looking at, among other opportunities on the continent, first-time buyers and government fleet solutions. “Africa is fascinating. What we have to look at is how we can onboard the first-time buyer. This is a large part of the market – it’s nothing compared to Europe, the US, where you have to renew customers. That is one big category,” Cartier tells The Africa Report.
The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) has today hosted the fourth in a series of five virtual experts group review meetings on innovative new research on preferential trade arrangements in Africa. The project is in partnership with the Organization of African, Caribbean and Pacific States (OACPS). The study assesses the options presented for overcoming the challenges of Informal Cross Border Traders (ICBT) and in particular policies for extending the benefits of free trade to informal traders. Two key areas are the focus of this study: i) systems for more structured ICBT, including the potential for a simplified trade regime in the Economic Community of West African States (ECOWAS) region; and ii) institutionalising ICBT data collection for policymaking.
The new investment case for Africa and emerging sectors of opportunity (How we made it in Africa)
From the days of African independence to the turn of the 21st century, developed countries’ economic engagement with African nations was largely limited to the provision of humanitarian and development aid. The beginning of the new millennium saw a shift as traditional donor countries began to focus on boosting African economic growth via increased trade. Over the past decade, this dynamic has shifted once more, with an increased emphasis on facilitating private investment into African economies. The business case for investing in African markets can no longer rest solely on the dated adage that six of the 10 fastest-growing countries are in Africa – it now needs to be updated to the post-Covid emergent economic reality.
Access to finance poses the biggest challenge for African businesswomen (UNECA)
Inadequate finance and information are among the leading non-tariff barriers (NTBs) facing African businesswomen and may undermine the success of the African Continental Free Trade Area (AfCFTA), according to an advocate for businesswomen on the continent. Speaking today during a webinar on the Trade Easier platform, a mechanism for reporting, monitoring and eliminating NTBs under AfCFTA, the Executive Director of the Pan African Business Women’s Association (PABWA), Ms Yavi Madurai, said.
The Minister of Finance, Kingdom of Lesotho, Thabo Sofonea, officially opened the 26th Meeting of the Inter-Governmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa. He said that, although the current response to the pandemic was through emergency health and economic mitigation measures, fiscal consolidation and structural reforms were required to restore external balance, preserve debt sustainability and stimulate inclusive growth over the medium-term.
The meeting concluded with an outcome document which proffered recommendations and appealed to member States, United Nations and development partners to pull together resources to strengthen the national and regional macroeconomic environment, create a platform for the implementation of the AfCFTA in Southern Africa, enhance the role of the private sector and build back better post-COVID-19.
‘Better customs means better trade’ (The Southern Times)
The Southern African Customs Union (SACU) needs to spruce up its systems to facilitate efficient trade and support economic development, a senior Namibian government official has said. At a workshop on customs modernisation in Windhoek this week, deputy director in the Namibian Finance Ministry, Ms Yoolokeni Haihambo said modern customs unions went beyond revenue collection and played an active role in trade facilitation.
The renewAfrica Initiative presented to EVP Timmermans (UNECA)
The renewAfrica Initiative was today presented to Mr Frans Timmermans, the European Commission’s Executive Vice-President for the European Green Deal. The renewAfrica Initiative has been structured to implement PPPs, so to create a level playing field for European industry and investors. In this regard, the Initiative will contribute to add value to existing European financial instruments, so to mobilise the scale of public and private capital necessary to the creation of a pipeline of sustainable and bankable renewable energy projects in Africa.
EAC trade suffers due to border restrictions (The Standard)
The East African Business Council (EABC) is calling upon East African Community Partner States to allow movement of persons across border posts, lifting the restrictions currently in place. A move set to boost trade-in services such as tourism and re-open closed cross-border markets. Currently, some border posts such as the Taveta-Holili One-Stop Border Post (OSBP) and the Isebania-Sirare border post (Kenya-Tanzania) are still not allowing movement of persons despite travelers having Covid-19 certificates.
The future of mobility in Africa (The New Times)
This week, the UN published a report about the impact of used vehicles on the environment in Africa. According to this report, Africa is the destination of 40% of used light duty vehicles from Europe, Asia and the USA. This trend contributes to the astonishing low GDP-high emissions paradigm, whereby African cities have the same pollution levels such as industrialised ones. The failure to absorb internal demand of mobility products will be exacerbated with the rising middle class in Africa. The said report details how global fleet of light duty vehicles will double by 2050 and how 90% of this growth will take place in low and middle-income countries. Against this background, an urgent action plan is needed to transform the demand of mobility into an engine of growth for Africa.
Digital payments key to Africa growth (The Southern Times)
The World Bank has estimated that Africa could potentially hold 90 percent of the global poor population by 2030 and has recently cut its economic growth predictions to between -2,1 percent and -5,1 percent in 2020 from the 2,4 percent of 2019. The situation has been significantly worsened by the global pandemic, as the continent hits its first recession in 25 years. But this is not the picture that defines a continent that has long defied expectation and prediction.
SMEs need policy support to compete in AfCTA – Report (News Ghana)
A research report has recommended policy support for Small and Medium Enterprises (SMEs) to be competitive in participating in the African Continental Free Trade Area (AfCFTA). The report said the support should focus on cheaper and more innovative trade finance products, trade policy, trade infrastructure, improved capacity, trade information and facilitation, market access for growth and expansion of SMEs in the country. Dr Samuel Frimpong Boateng, the Lead Consultant for the Research made these recommendations at a stakeholder workshop on the report titled “Mobilising Diagnostics Data to Inform Bottom-Up Decisions on Government Policies.”
International
Mapping African regional cooperation (European Council on Foreign Relations)
The African regional security landscape is something of a multi-layered jigsaw puzzle. Regional conflicts in the Sahel and the Lake Chad Basin have led to the creation of multiple and overlapping membership organisations that to seek to deal with cross-border challenges. This project maps African regional initiatives in west and central Africa and provides a data-based and a geographical overview of the ‘à la carte’ nature of African regional cooperation.
Europe’s Pivot to Africa: Shaping the Future of the Strategic Partnership (EUBULLETIN)
2020 seemed set to be “a pivotal year” for EU-African relations, with the 10th Commission-to-Commission meeting between the EU and African Union (AU) held in February, followed by a renewed comprehensive EU Strategy with Africa published in March. However, with the planned 6th African Union-European Union Summit now postponed due to the COVID-19 pandemic, the leaders should use the upcoming months to forge a true strategic partnership which goes beyond the archaic donor-recipient relationship. Only then can EU-Africa relations become a building block in Europe’s quest to obtain geopolitical power, and can Africa fully benefit from its longstanding yet so far disappointing relationship with Europe.
The new investment case for Africa and emerging sectors of opportunity (How we made it in Africa)
From the days of African independence to the turn of the 21st century, developed countries’ economic engagement with African nations was largely limited to the provision of humanitarian and development aid. The beginning of the new millennium saw a shift as traditional donor countries began to focus on boosting African economic growth via increased trade. Over the past decade, this dynamic has shifted once more, with an increased emphasis on facilitating private investment into African economies. The business case for investing in African markets can no longer rest solely on the dated adage that six of the 10 fastest-growing countries are in Africa – it now needs to be updated to the post-Covid emergent economic reality.
BRICS Business Council seeks more growth opportunities post pandemic (Political Analysis South Africa)
The BRICS Business Council released a statement on Thursday, 29 October 2020, detailing the resolutions from the ten-day BRICS Business Forum. The physical gathering was conducted in Russia, but most international delegates attended virtually. The participants included business leaders and representatives from BRICS countries, namely, Brazil, Russia, India, China and South Africa. The primary focus was on growth prospects post the pandemic, as well as possible partnerships between business and the state. This is in an effort to revitalise the economies of the respective states.
Five BRICS Countries Accentuate UN’s Central Role in International Affairs (IDN InDepthNews)
Parliamentarians of five BRICS countries (Brazil, Russia, India, China and South Africa) have pledged to join hands in combating COVID-19, facing the challenges and threats that each member state currently faces, and strengthening cooperation, including at the inter-parliamentary level. In view of the coronavirus pandemic, the Sixth Parliamentary Forum on October 27 was organized via video conference. Its main theme was "BRICS Partnership for Global Stability, Shared Security and Innovative Growth: parliamentary dimension".
Market Illiquidity: Experts advocate diversifying investment options through global best practices (BusinessAMlive)
Philip Buyskes, chief executive officer at Frontclear, said there is a plan underway for the implementation of regulatory reforms to help the proper functioning of the market. “Progress has been made in the last couple of years in the government bond market. But there is still low liquidity in the African secondary market. Overall, it is still a relatively small and illiquid market. Interesting to highlight is the focus of the money market in Africa. We now look forward to seeing more liquidity in the bond and repo market. We are also working on implementing regulatory reforms to help the proper functioning of the bodies or players in the market. Ultimately, our goal is to finance infrastructure. The view is to get the basic things right and being able to achieve real payments in the market.”
FOCAC grows in pragmatic cooperation since its inception two decades ago (China.org.cn)
On October 7, the air cargo route from Wuhan in central China to Ethiopian capital Addis Ababa became operational as the first flight took off, carrying nucleic acid test kits to detect the novel coronavirus disease (COVID-19), masks and other epidemic prevention materials. It was a telling gesture with the Forum on China-Africa Cooperation (FOCAC) celebrating its 20th anniversary the same month. FOCAC, already an important platform for collective dialogue and practical cooperation between China and Africa, has, in the wake of the global pandemic, shown its role in enhancing support between the two sides to tackle the disease.
COVID-19: Remittance Flows to Shrink 14% by 2021 (World Bank)
As the COVID-19 pandemic and economic crisis continues to spread, the amount of money migrant workers send home is projected to decline 14 percent by 2021 compared to the pre COVID-19 levels in 2019, according to the latest estimates published in the World Bank’s Migration and Development Brief. Remittance flows to low and middle-income countries (LMICs) are projected to fall by 7 percent, to $508 billion in 2020, followed by a further decline of 7.5 percent, to $470 billion in 2021. The foremost factors driving the decline in remittances include weak economic growth and employment levels in migrant-hosting countries, weak oil prices; and depreciation of the currencies of remittance-source countries against the US dollar.
How COVID-19 Will Increase Inequality in Emerging Markets and Developing Economies (IMFBlog)
Emerging markets and developing economies grew consistently in the two decades before the COVID-19 pandemic hit, allowing for much-needed gains in poverty reduction and life expectancy. The crisis now puts much of that progress at risk while further widening the gap between rich and poor. As part of our latest World Economic Outlook we explore two facts about the current pandemic to estimate its effect on inequality: a person’s ability to work from home and the drop in GDP expected for most countries in the world.
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National
South Africa’s 2020 Medium Term Budget Policy Statement (MTBPS) (National Treasury)
Two weeks ago, President Matamela Cyril Ramaphosa laid out the government’s consensus-driven and action-oriented Economic Reconstruction and Recovery plan. This particular plan is urgent and all of us should do everything in our power to implement it. We table a five-year fiscal consolidation pathway that promotes economic growth while bringing debt under control. The fiscal measures realign the composition of our spending from consumption towards investment and support efforts to lower the cost of capital. Our revised fiscal framework puts us on a course to stabilise the ratio of debt- to-GDP at around 95 per cent within the next five years. The stock of gross debt will rise from roughly R4 trillion this year to R5.5 trillion in 2023/24.
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pdf Medium Term Budget Policy Statement (MTBPS) 2020 (3.13 MB)
Namibia seeks to ratify SACUM-UK EPA (New Era)
Namibia is in the process of ratifying the SACU-Mozambique-United Kingdom (UK) economic partnership agreement (EPA) aimed to provide continuity and certainty in trade amongst the parties, when the UK is no longer a member of the European Union. Trade minister Lucia Iipumbu recently tabled the SACUM-UK agreement in parliament for ratification. She said the ratification of SACUM-UK EPA therefore provides the window of opportunity for Namibia to continue reducing and eradicating poverty through the establishment of a trade partnership consistent with the objectives of sustainable and inclusive development.
Rwanda’s revenue from rare minerals drops by half as production slows (The East African)
Rwanda’s principal minerals – cassiterite, wolfram and coltan – fetched $31.6 million in revenues in the first half of 2020, down from $56.6 million in the same period last year, largely due to disruption in the sector occasioned by the coronavirus pandemic. Sector players say mineral buyers, particularly electronic companies, halted the purchase of minerals used in the manufacture of devices for much of this year as production slowed down worldwide on account of the Covid-19 pandemic. The fall in revenue earnings, as released by the National Bank of Rwanda, means less money for the government that has for a long time banked on the mining sector as a major contributor of foreign exchange, second only to tourism.
Call to link continent by rail, water and air (The East African)
In Uganda, players in cross-border trade and logistics are looking at ways to revive their sectors after being battered by Covid-19, while at the same time preparing for AfCFTA. According to Jennifer Mwijukye, the chief executive of Unifreight Cargo Handling Logistics Ltd, the focus now for Uganda, as well as the other EAC partner states, should be how to develop inter-model integrated transport that links the whole of Africa, so as to have efficiency, dependability and availability. She says now is the time to link the continent by rail, water and air transport corridors. “Decent options of transport should be made available for continental trade to flourish. And before we have transport systems, we will not have meaningful trade. Some hinterland countries like Uganda will suffer and even regret why they went into that free trade area, agreement,” Ms Mwijukye said.
COVID-19 management: Ghana adjudged one of best three in the world – Ofori-Atta (Graphic Online)
Presenting a budget to cater for the first quarter of 2021 in Parliament Wednesday, the Minister explained that an increase in business and consumer confidence was a sign of the government’s efficient management of the COVID-19 pandemic. “Indeed our efforts have been adjudged as among the best three in the world. Mr. Speaker, the robustness of our macro-economic fundamentals and the efficacy of Government’s COVID-19 mitigation measures have been borne out by recent indicators.”
Ghana exporters advised to rely on the NEDS to stay ahead of competition (Ghanaweb)
Trade practitioners and experts have outlined various means Ghana can scale up its exports as Africa gets ready for a 3 trillion-dollar continental free market from January 1, 2021. Speaking on Eye on Port on how to promote value addition to Ghana’s exports to remain competitive in a continental economy, the Director of Projects at Ghana Exports Promotion Authority, Alexander Dadzawa expressed that the Government sees a major opportunity in the African Continental Free Trade Area to take advantage of, in its ambitions to balance the trade deficit of exports to imports.
Take advantage of opportunities AfCFTA offers – Prez Akufo-Addo to businesses (Graphic Online)
President Nana Addo Dankwa Akufo-Addo has charged Ghanaian enterprises to take advantage of the opportunities offered by the African Continental Free Trade Area (AfCFTA) agreement, which comes into force in January 2021, to expand their reach and contribute to Ghana’s development. “We in Ghana cannot afford to let this window of opportunity slip. It is our hope that the private sector, facilitated and actively supported by the government, will be at the forefront to take advantage of the vast possibilities presented by the AfCFTA,” he said.
Related: Sensitisation of shippers and businesses on AfCFTA critical – AGI (Ghana Shippers Authority)
Gov’t revises fiscal deficit-to-GDP to 8.3% in 2020 (Myjoyonline.com)
Government has scaled down the projected 2021 Fiscal Deficit from 9.6% of Gross Domestic Product (GDP) as reported in the Mid-Year Review to 8.3% of GDP. This reflects improved revenues from the anticipated pick-up of economic activities and a more rationalized public expenditure programme. According to Finance Minister, Ken Ofori-Atta, it expects the country to return to the fiscal responsibility threshold of 5.0% of GDP fiscal deficit and a positive primary balance earlier than the 2024 fiscal year previously announced. “I want to assure this House that we will recover, we will revitalize, and we will transform the economy. We shall pivot off the AFCFTA headquarters in Accra for Ghana to become a dynamic regional hub. We have planted the seeds for a fast-paced and more inclusive recovery”.
CBN reveals framework for the N75 billion Youth Investment Fund (Nairametrics)
The Central Bank of Nigeria (CBN) has revealed the implementation framework for the Nigerian Youth Investment Fund. This was disclosed in a publication by the Development Finance Department under the auspices of the Central Bank of Nigeria. The CBN stated that the Nigerian Youth Investment Fund (N-YIF) would be funded through NIRSAL MFB window, with an initial take-off seed capital of N12.5 billion. The N-YIF aims to financially empower Nigerian youths to generate at least 500,000 jobs between 2020 and 2023.
Africa
African Union Ministers for Trade report progress in AFCFTA negotiations (South African Government)
The 12th Meeting of the African Union Ministers of Trade (AMOT) took place virtually on 27 October 2020 with the participation of 38 African Union Member States. Ministers noted significant progress in the finalisation of additional Rules of Origin following the adoption of a priroitised work programme and roadmap for the outstanding negotiations by the 11th AMOT held on 30 September 2020 to facilitate the start of preferential trade under the AfCFTA. It is expected that further substantive progress will be made in the conclusion of additional outstanding chapters on Rules of Origin in the next round of negotiations in an effort to unlock and finalise commercially and mutually beneficial tariff offers. In considering outstanding Rules of Origin, Minister Patel emphasised the importance of concluding Rules that promote and enhance a “Made in Africa, Grown in Africa, Designed in Africa” approach.
UN Global Compact launches first regional network in Africa (The Financial)
The United Nations Global Compact today launched its first regional network in Africa for Mauritius and the Indian Ocean region at an event attended by representatives from business, civil society, academia and the United Nations. Executive Director and CEO Sanda Ojiambo hailed the importance of the new regional network. “It’s a milestone on the road to uniting business for a better world,” she said. In her welcoming remarks at the event, she added, “This regional network is a natural response to the need for more regional integration in tackling important issues such as extreme poverty, gender inequality and fragile ecosystems. As a convener and partner, the regional network can help the region achieve inclusive recovery from the COVID-19 pandemic and deliver on the Sustainable Development Goals.”
Access to finance poses the biggest challenge for African businesswomen (UNECA)
Inadequate finance and information are among the leading non-tariff barriers (NTBs) facing African businesswomen and may undermine the success of the African Continental Free Trade Area (AfCFTA), according to an advocate for businesswomen on the continent. Speaking today during a webinar on the Trade Easier platform, a mechanism for reporting, monitoring and eliminating NTBs under AfCFTA, the Executive Director of the Pan African Business Women’s Association (PABWA), Ms Yavi Madurai, said the problem of gender inequality, corruption, and lack of trust between women and border officials were among other barriers. “Access to finance is the biggest challenge to women in business in Africa,” she said.
African countries contributed the most to the fight against Covid-19 on the continent with $44.6bln (Ecofin Agency)
With $44.6 billion, African countries are the biggest contributors to the battle against Covid-19 on the continent. The figures were reported by Bartholomew Armah, an economist and Chief Development Planning, Macroeconomics and Governance Division – UN Economic Commission for Africa. The second-largest contributor is the International Monetary Fund with about $16 billion. This amount may have increased in the meantime, as the institution continues to approve disbursements to some countries in the region, as was recently the case for Cameroon. At just over $4.9 billion, the G20 and its initiative to suspend the debt of poor countries takes third place.
How trade restrictions meant to curb Covid-19 have hit Africa’s (The Citizen)
Trade routes have been significantly disrupted this year in efforts to contain Covid-19. The effects of this are already showing: global growth is set to contract by 4.9 percent and growth in sub-Saharan Africa will contract by 3.2 percent. This will get worse if continued restrictions further impede trade. In the current economic climate, trade is not a luxury that can be temporarily avoided. In Africa, there’s a growing body of evidence showing that firms – from large to very small – have been severely affected by restrictions in the movement of goods and people.
Coalition of African Nations to Coordinate Data Protection Framework (JD Supra)
A coalition of African nations have developed a data protection framework with the goal of centralizing data protection laws and the digital economy across Africa. Currently, five countries, including Nigeria, are testing the data protection framework, with the intention to make Africa a single market. After the testing is complete, the data protection framework will be replicated across additional African countries. The data protection framework, focused on data transfers, is based on the legal agreement established with the African Union Convention on Cyber Security and Personal Data Protection, also referred to as the Malabo Convention for Cyber Security and Data Protection.
Africa can’t risk a major maritime cyber attack (ISS Africa)
Cyber attacks against African maritime infrastructure threaten the continent’s recovery from COVID-19 and its long-term development and security aspirations. According to maritime cyber defence company Naval Dome, 310 incidents affecting maritime industries were recorded worldwide in 2019, a huge jump from 120 in 2018 and 50 in 2017. No data is available yet for this year, but the figure is expected to reach 500 incidents in 2020. About 90% of Africa’s trade is seaborne, making the continent dependent on well run ports and shipping, and effective protection of its maritime resources. Digitalisation will make African infrastructure a high-risk target and the impact of cyber attacks could be severe.
Smart Power lights up Africa’s Road to Pandemic Recovery (East African Business Week)
Across Africa, access to power is hampered by the lack of access to competitive funding, the dire state of the continent’s utilities infrastructure and the need for energy policy and legislation to be adapted so that it can boost investment in the sector. Post COVID-19, new solutions are urgently needed to address Africa’s power crisis and switch on a continent-wide strategy for its recovery and renewal. Such solutions must take into account the energy transition and in particular, the utilisation of renewable energy, the focus on smart power technologies and cost effective solutions, as well as the global drive towards a decentralised, decarbonised and secure energy supply that addresses climate change and stimulates economic growth.
International
US holds up Ngozi Okonjo-Iweala appointment as WTO Director-General (The Africa Report)
Nigeria’s Ngozi Okonjo-Iweala was slated to be the new Director-General of the World Trade Organization. She will be the first woman, and the first African, to lead the institution. But there was an unexpected glitch in the process. A panel at the WTO recommended her on Wednesday for the position. The announcement that Ngozi Okonjo-Iweala is to be the new director-general of the World Trade Organization would have been a tremendous boost for Africa and lines her up for one of the toughest jobs in the international system.
Discord over next global trade chief threatens to blow up WTO (POLITICO)
On Wednesday, the United States said it could not support Nigeria’s Ngozi Okonjo-Iweala as the next WTO boss even though most member countries supported her. Washington, however, is throwing its weight behind her opponent, the South Korean candidate Yoo Myung-hee, saying that she has “25 years of trade experience and that she would be able to hit the ground running,” according to a WTO spokesperson. WTO officials will now hold consultations with member countries, hoping to find a consensus by the meeting of all delegations on November 9.
African and US Development Financiers Confirm Commitment to Attracting Private Sector Capital to Africa (The Fintech Times)
The continent’s largest development finance institutions have emphasised that a sustained and collaborative approach among development partners to scale up project development activities will boost the number of bankable projects attracting investor interest and contribute to closing the infrastructure finance gap in Africa. They spoke during a panel event to discuss their organizations’ role in post-Covid-19 environment, convened on October 16, as part of a day-long public forum on investing in Africa’s future, organized by the US International Development Finance Corporation (DFC) and the Atlantic Council.
From Agoa to FTA, Kenya-US partnership getting stronger (Business Daily)
The African Growth and Opportunity Act (Agoa) enhanced markets, allowing Kenyan businesses to grow. Agoa will expire in 2025 and, while it has been helpful, it has not been transformative in driving the broad-based economic growth Kenya seeks. Kenya is ready for the next step, a free trade agreement (FTA) that will bring our relationship from a reliance on tariff preferences that erode over time and can be unilaterally withdrawn, to an agreement that drives more efficient uses of resources and expands trade. Both the United States and Kenya believe in a strong economy through an open, free marketplace – allowing entrepreneurs, businesses, and the private sector to thrive and create jobs.
NGOs & Foundations Want to Dictate Africa’s Agricultural Destiny (European Scientist)
Across Africa, farmers and governments are struggling to feed growing populations. Ongoing and deadly locusts and Fall Armyworm infestations, cancer-causing mycotoxins, crop diseases and adverse weather all threaten starvation for millions. At the same time, agricultural technologies that can help improve yields, protect the natural environment and feed hungry millions are being undermined by intentionally deceptive anti-technology campaigns. Campaigns funded by rich foundations hyping utopian visions of organic peasant agriculture and European government-funded non-governmental organizations (NGOs) are seeking control of Africa’s food and agriculture.
China to start buying soybeans from Tanzania as it seeks new suppliers (South China Morning Post)
China, the world’s biggest importer of soybeans, is opening its market to Tanzania as it seeks to reduce its reliance on the United States and Brazil for supplies of the oilseed. Wu Peng, director of African affairs at China’s foreign ministry, said an agreement had been reached on Monday for Tanzania to start exporting soybeans to the country. He said it was in line with Beijing’s pledge to support African nations by expanding imports – especially beyond natural resources – made during the Forum on China-Africa Cooperation in 2018. “Both China and Africa stand to benefit from stronger trade ties,” Wu added.
Empowering women to leave no one behind (FAO)
Agrifood systems cannot be transformed unless there is gender equality. That was the simple message underlying the launch today of a new report by the Food and Agriculture Organization of the United Nations (FAO) and the African Union that puts the spotlight on women’s role in agrifood systems. The report was launched by FAO Director-General QU Dongyu and African Union Commissioner for Rural Economy and Agriculture Josefa Sacko at the 31st Session of the FAO Regional Conference for Africa. “Rural women are the pillars of our food systems and agents of change for food security and climate justice. But they’re also disproportionately affected by poverty, inequality, exclusion and the effects of climate change,” UN Deputy Secretary-General Amina Mohammed said by video message at the launch.
pdf Leaving No One Behind – A Regional Outlook on Gender and Agrifood Systems (12.89 MB)
Policy Brief: As Second Wave of COVID-19 Sweeps the Globe, WTO Members Mull Options for Pandemic Response (IISD’s SDG Knowledge Hub)
As reports of COVID-19’s second wave dominate news headlines, the urgency for a coordinated international response has grown, especially as the pandemic continues to expose the potential limitations of existing global governance frameworks. In Geneva, the situation has lately revived one of the most entrenched debates in international trade: whether the World Trade Organization’s (WTO) rules on intellectual property rights protections are well-suited to responding to public health needs and whether further flexibilities and new approaches are needed, especially in times of crisis.
This debate took center stage at the 20 October meeting of the WTO’s TRIPS Council – the body that deals with the implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The proposed waiver was reportedly opposed by the EU and the US, as well as a mix of developed and developing economies, while others sought further time to consider its feasibility and wider impact, beyond the immediate pandemic needs. India and South Africa refer to the challenges inherent in putting these TRIPS flexibilities into practice as part of the rationale for their proposal, especially given that many developing and least developed countries (LDCs) may lack the manufacturing capacity to do so.
Poor countries denied $5.7 trillion in aid because of rich countries’ 50-year failure to deliver on aid promises (Oxfam International)
“Fifty Years of Broken Promises,” published ahead of the 50th anniversary of the international aid commitment on Saturday 24th October, warns that the economic fallout of COVID-19 will increase the need for aid but will further undermine aid spending, and make it harder for poor countries to mobilize revenue from other sources. The pandemic could push as many as 200 - 500 million more people into poverty, yet just 28 percent of the $10.19 billion the UN requested to help poor countries tackle the crisis has been pledged to date.
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African Union Ministers for Trade report progress in AFCFTA negotiations
Minister Ebrahim Patel on progress in AFCFTA negotiations
Just short of one month after assuming Chairship of the African Union Ministers of Trade, South Africa’s Minister of Trade, Industry and Competition, Ebrahim Patel has chaired his second meeting of the Ministerial negotiating body with the aim of finalising the key aspects of the outstanding AfCFTA negotiations to enable the start of preferential trade on 1 January 2021.
The 12th Meeting of the African Union Ministers of Trade (AMOT) took place virtually on 27 October 2020 with the participation of 38 African Union Member States.
Ministers noted significant progress in the finalisation of additional Rules of Origin following the adoption of a priroitised work programme and roadmap for the outstanding negotiations by the 11th AMOT held on 30 September 2020 to facilitate the start of preferential trade under the AfCFTA.
It is expected that further substantive progress will be made in the conclusion of additional outstanding chapters on Rules of Origin in the next round of negotiations in an effort to unlock and finalise commercially and mutually beneficial tariff offers. In considering outstanding Rules of Origin, Minister Patel emphasised the importance of concluding Rules that promote and enhance a “Made in Africa, Grown in Africa, Designed in Africa” approach.
“It is important that we seek to ensure that agreed Rules of Origin promote and support local production and value addition in Africa. Our Rules, therefore, should not be designed to benefit third parties,” said Minister Patel.
Also participating in the 12th AMOT, Deputy Minister Nomalungela emphasised that “Rules of Origin should incentivise the expansion of Africa’s manufacturing capacity, including the development of supply chains and maximum value addition within the Continent. These rules must serve to spur increased investment in local African productive capacity and job creation.”
Ministers further emphasised the need for State Parties to the AfCFTA Agreement to prioritise the finalisation and submission of tariff offers on the basis of the agreed Rules of Origin. The importance of ratification by AU member states to enhance inclusiveness in preferential trade under the AfCFTA was again encouraged.
Minister Patel acknowledged that the spirit of consensus building in the AfCFTA negotiations would contribute to successful deliverables for the Extra-ordinary Summit.
Minister Patel also noted the series of focused meetings of the negotiations and implementation structures to be held during the month of November 2020 to ensure that the necessary prerequisites for trade are in place to support the commencement of preferential trade. These include, amongst others, the consideration of trade in services offers, the finalisation of tariff concessions on the basis of as many agreed Rules of Origin as possible, as well as the finalisation of the necessary customs documentation.
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South Africa’s 2020 Medium Term Budget Policy Statement (MTBPS)
Finance Minister Tito Tius Mboweni delivered his Medium-Term Budget Policy Speech in Parliament on 28 October 2020 in Cape Town.
Below is his speech.
Introduction
Twenty-six years ago, President Nelson Mandela stood at this very spot to weave the tapestry of our newly democratic country. Freedom was only two weeks old. Madiba challenged us to:
Meet despair with hope and death with a reaffirmation of the beauty of life.
His plan for the country’s first democratic administration committed us to fiscal rehabilitation after the devastation wrought to our public finances by the previous regime.
Most of us sitting in this House, I amongst them, did not know it then but Madiba was ushering in a period of unmatched social progress in our history.
Over the next 15 years, the economy began to re-emerge. Real GDP rose by 61 per cent and 5.3 million jobs were created.
We are fiscally at a moment not unlike that in 1994. We must rebuild our economy, rehabilitate our public finances and recover from the devastation wrought upon us by COVID-19.
As we rose to that fiscal challenge, so we will rise to this one.
Two weeks ago, President Matamela Cyril Ramaphosa laid out the government’s consensus-driven and action-oriented Economic Reconstruction and Recovery plan. This particular plan is urgent and all of us should do everything in our power to implement it.
Summary of the Medium-Term Fiscal Strategy
The pdf June 2020 Special Adjustments Budget (723 KB) was prepared in an environment of extreme uncertainty. Given the economic situation then, government proposed a three-year fiscal consolidation.
Since June, more data has become available. The economy is now expected to contract by 7.8 per cent this year, and the 2021 outlook is more uncertain. Job losses have been particularly severe.
But we cannot allow our recent fiscal weakness and the pandemic to turn into a sovereign debt crisis.
Therefore, today government sets out active measures to avoid this risk.
We table a five-year fiscal consolidation pathway that promotes economic growth while bringing debt under control.
The fiscal measures realign the composition of our spending from consumption towards investment and support efforts to lower the cost of capital.
Our revised fiscal framework puts us on a course to stabilise the ratio of debt- to-GDP at around 95 per cent within the next five years. The stock of gross debt will rise from roughly R4 trillion this year to R5.5 trillion in 2023/24.
The medium-term fiscal strategy narrows the main budget primary deficit from an expected R266 billion in 2021/22 to R84 billion in 2023/24 and we achieve a surplus by 2025/26.
We propose consolidated spending of R6.2 trillion over the 2021 Medium Term Expenditure Framework, of which R1.2 trillion goes to learning and culture, R978 billion to social development and R724 billion to health.
We forecast the South African economy to grow by 3.3 per cent in 2021, 1.7 per cent in 2022 and 1.5 per cent in 2023.
Mr President, by putting all our efforts into implementing the Economic Reconstruction and Recovery Plan, we can accelerate growth to 3 per cent or more. This will secure fiscal sustainability and build this economy better than before.
The Economic Context
Turning now to the economic context.
A sharp – and hopefully short – global recession is underway. The International Monetary Fund expects global output to contract by 4.4 per cent in 2020, before rebounding to 5.2 per cent in 2021 in their October World Economic Outlook.
Growth in advanced economies is strengthening. Next year, emerging market countries are set to grow by 6 per cent.
Sub-Saharan Africa is expected to rebound to growth of 3.1 per cent in 2021. As always, Africa has been at the forefront of innovative solutions to the crisis, including delivering social assistance using digital technology.
Madam Speaker, you are now well aware that the country’s Aloe Ferox is drought resistant, it can survive the harshest of circumstances and can certainly withstand a pandemic.
Our little Aloe Ferox has survived! It is recovering!
In South Africa, the high frequency data that we collect suggests that green shoots are emerging. At this stage, it looks like there will be a strong rebound in the next quarter.
These will be supported by government’s Economic Reconstruction and Recovery plan.
Already there is progress on implementing the plan.
Honourable Members, improving the supply of electricity is urgent. In line with our plan, there is progress in allowing municipalities to buy electricity from different sources.
In addition, the way has been opened for the procurement of almost 12 000 MW of new electricity capacity to be provided by independent power producers.
The ongoing implementation of the Eskom Roadmap and unbundling continues. Divisional managing directors and boards of directors have been appointed.
Infrastructure is at the centre of the plan.
Mr President, our government, under your wise leadership, has championed the Infrastructure Fund to implementation. And we are starting to see results!
Subsidies of R2.2 billion will support the Social Housing Programme aimed at poor, working South Africans. A further R6.7 billion has been contractually committed to this programme. We expect that the total investment from this programme will be R20 billion over the next 10 years.
As a consequence of the Fund, the Student Housing Programme worth an estimated R96 billion is underway. It will service nearly 300 000 students a year when complete.
The Budget Facility for Infrastructure will support new projects, including through blended finance in partnership with the private sector. These include hospital projects in KwaZulu-Natal, such as the extension of Chief Albert Luthuli, and the Western Cape, like Tygerberg and Klipfontein. There are exciting new proposals for the development of more than 12 harbours in the Eastern Cape, KwaZulu-Natal, Northern Cape and Western Cape.
Finally, we will review our existing public finance regulatory framework to unblock infrastructure investment by the broader government.
Over and above this, the Independent Communications Authority of South Africa has issued an invitation to apply for the auction of additional spectrum.
Government has initiated a process to review Regulation 28 to make it easier for retirement funds to increase investment in infrastructure – should their board of trustees opt to do so. At all times, trustees are expected to put the interests of retirement fund members first. A draft gazette will be released in due course for public comment.
Notwithstanding this encouraging progress, there are priority structural reforms that require acceleration.
Operation Vulindlela is a critical coordination tool to unlock and fast track implementation of the structural economic reform agenda. Deputy Minister David Masondo is leading this initiative, and a technical team, headed by Dr Sean Phillips, will draw on expertise and capacity from the public and private sectors. This will ensure that implementation is well coordinated, sequenced and timeous.
Parliament plays an important role in this reform agenda. We thank this House for fast-tracking the Economic Regulation of Transport Bill.
Under the leadership of the Minister of Health, government is exploring greater participation in the COVAX facility, a global initiative to ensure equitable access to future vaccines.
In the area of social protection, we are happy to announce a historic agreement with all NEDLAC constituencies for the annuitisation of provident funds beginning in March 2021, which will enable all workers to continue to enjoy tax deductions on their contributions. We thank the labour constituency for identifying appropriate annuity products for low income workers.
The NEDLAC constituencies also agree to accelerate the introduction of auto- enrolment for all employed workers, and the establishment of a fund to cater for workers currently excluded from pension coverage, as an urgent intervention towards a comprehensive social security system. Government will present legislation next year to allow for limited pre-retirement withdrawals under certain circumstances linked to mandatory preservation requirements.
Today, we announce further steps to make cross-border business easier, including inward listings, loop structures and corporate foreign borrowings.
Work is well advanced to modernise the cross-border flows management regime to support South Africa’s growth as an investment and financial hub for Africa.
Update on the Fiscal Relief Package
In April this year, government announced a major fiscal relief package of around R500 billion or 10 percent of GDP, including:
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More than R30 billion for health and other frontline services
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Support vulnerable households which is now in excess of R50 billion
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More than R40 billion for wage protection through the UIF
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Around R100 billion for job creation initiatives, which will now be spread over the MTEF
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R200 billion for a credit guarantee scheme
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R20 billion towards municipalities to assist them with COVID-19 related activities
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R70 billion towards emergency tax measures
As the pandemic has unfolded, some shifts in resources could be implemented. The resources for the relief package came from a variety of places, including drawing down on Unemployment Insurance Fund reserves, the issuing of new guarantees and projected revenue losses.
During the lockdown, cash grants were paid to over 22 million people, nearly half of the population.
To reach the poorest South African households, we expanded social protection. Seven million people accessed the Temporary Employment Relief Scheme through the Unemployment Insurance Fund. The Special COVID-19 Social Relief of Distress grant reached six million people.
The Cabinet has decided to extend the Social Relief of Distress grant to the end of January 2021. Because this grant is so effective in reaching the unemployed, we propose to redirect R6.8 billion from the public employment programme allocation.
The temporary increases in other grants will unfortunately have to come to an end.
This adjustments appropriation also adds R1 billion for food relief to fight hunger.
Honourable members,
We are happy to announce today that we are allocating R12.6 billion in this financial year to the game-changing employment initiatives championed by the President.
The Provincial Equitable Share is augmented by R7 billion to support jobs at fee-paying public schools and government-subsidised independent schools.
R600 million goes to employ early childhood development and social workers.
R2 billion is allocated to Working for Fire, Working for Water and Working for Forests.
The rest of the allocation from the employment initiative is divided between the transport, arts, sports and culture, health and agricultural sectors.
The District Development Model will fast-track infrastructure and general socio-economic development. The revised Division of Revenue for 2020/21 proposes allocations of R806.7 billion to national departments, R628.3 billion to provinces and R139.9 billion to local government.
After extensive consultations between the Banking Association, the National Treasury and the South African Reserve Bank, work is underway to review the Loan Guarantee Scheme to improve take-up. I will also be working with my colleagues in the Cabinet to boost business restart efforts.
Net in-year spending adjustment
In summary: non-interest spending in 2020/21 is unchanged relative to the Special Adjustments Budget at R1.6 trillion.
All additional pressures have been accommodated through adjustments elsewhere.
Net in-year revenue revision
Gross tax revenue is revised down but this is offset by other receipts into the National Revenue Fund.
Main budget revenue is now projected to be R1.6 billion less compared to the Special Adjustment Budget.
Debt service costs
Debt service costs are revised down by R3.4 billion, in part because borrowing costs are lower than expected.
Revised main budget deficit
Altogether, the in-year revised main budget deficit is now expected to be R707.8 billion, a little better than the Special Adjustments Budget. As ratio of GDP, it is unchanged at 14.6 per cent of GDP. The consolidated deficit is also marginally better in rand terms, but unchanged at as proportion of GDP at 15.7 per cent.
Government has broadened its financing strategy to include drawing down on sterilisation and foreign currency deposits. We are also borrowing at favourable rates from international finance institutions. The MTBPS Review and Adjusted Estimates of National Expenditure provide greater detail on our fiscal and borrowing plans.
I now turn to the medium-term fiscal strategy.
The Medium-Term Fiscal Strategy
As we chart our way forward, we are reminded of the grizzly sea captain in Samuel Coleridge’s poem, the Rime of the Ancient Mariner, who is hit by a great tempest that throws his ship off course.
To quote:
And chased us south along.”
Our job is not to tremble in fear at the storm blast, neither at plagues nor at the wide-open mouth of the hippopotamus.
Armed with a strong sense of direction, steadfastness, resolution and determination, we face these perils head-on. Our compass points towards fiscal sustainability and we must all face the same way.
In June, we published the medium-term spending plans and long-term debt projections to spark robust debate on our fiscal path – here in this House, within government, with community activists, with civil society, with the trades union movement, with our provincial and municipal colleagues, on Twitter, with small and big business, and in opinions expressed through media platforms.
We are grateful for the constructive discussions.
South Africans love a debate – even about garlic! This is the glorious, loud and rambunctious democracy that we fought so hard for.
Mr President, you summarised the consensus two weeks ago:
We cannot sustain the current levels of debt; particularly as increasing borrowing costs are diverting resources that should be going to economic and social development.
We must now rally behind fiscal rehabilitation and growth.
Right now, government is borrowing at a rate of R2.1 billion per day.
Madam Speaker, we must be careful to avoid the fate of countries like Argentina and Ecuador that defaulted on their debt this year.
Countries that find themselves in default see sharp GDP contractions and currency depreciations. On current trends, more of our taxes are being transferred to bondholders, rather than to critical services for our people.
An uncontrolled increase in borrowing costs would harm small businesses, ordinary South Africans and the poor the most.
The Cabinet remains resolute and will walk through the narrow gate towards fiscal sustainability. Before today, the economy languished in a trap of paralysis – as the Rime of the Ancient Mariner says, “As idle as a painted ship, Upon a painted ocean”. Today we break free from this trap.
Some might ask: can we not just spend our way out of the present crisis?
Certainly in 2009, when we had debt of 31.5 per cent of GDP and the real yield on government debt was about 3 per cent, every rand of government spending got us R1.60 in GDP.
Now, however, at such elevated real interest rates, every additional rand gets us less than a rand of GDP. It may even subtract GDP, leaving us poorer and more indebted than before.
And it is easy to see why. As we borrow more, we pay even more. We also have not been spending on infrastructure, which creates long-term growth.
We act to instil confidence amongst discouraged work seekers, businesses bruised by lockdown and facing uncertainty, farmers and farm workers who produce the food for the country, and our international partners who know that South Africa is a great place to invest.
Amongst other things, we will:
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Make it easier to do business. We must remove the needlessly complex red tape that increases the cost of doing
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Create stable and predictable policies. As we rebuild, there must be universal understanding of the policy trajectory of our government. It is not only investors that need confidence, but also the average South African.
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We must use our ingenuity and adapt after the ravages of the
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Embrace a sustainable future, and work towards a green and just transition.
The future of work is now different in the post COVID-19 world. The public service must adapt to the new world after the pandemic. The crisis has highlighted and unfortunately widened inequality. We must continue to protect the most vulnerable.
Compensation Adjustments
Now, as we go forward together as part of our post-lockdown rehabilitation, we need to come together to forge a new consensus on public-sector employee compensation.
Our compatriots in the private sector have made sacrifices and even negotiated salary cuts to keep businesses afloat.
Over the past five years, public sector employee compensation grew by 7.2 per cent a year on average – well above inflation. Over the next five years, it will need to grow much, much slower.
The Minister for the Public Service and Administration and the leadership of the public service unions are meeting to discuss how best we adapt to the reality that we must do more with less, and that we are all in this together.
We wish to thank them all for the seriousness with which they approach this matter. I must stress that our public servants do important work for South Africa. They are patriots. They too wish to unburden our country of debt. They want to bequeath assets, not liabilities, to the next generation.
Still we cannot expect our civil service to carry the burden of nation building alone. Consideration should be given to the proposal for across-the-board compensation pay reductions to management-level positions, across national, provincial and municipal governments, state-owned entities and all other senior public representatives.
Progress on zero-based budgeting and spending reviews
Zero-based budgeting will be piloted at the Department of Public Enterprises and National Treasury next year. It will be fully integrated into the budget system by the 2023 Budget. In practice, it will mean programme-by- programme and project-by-project analysis. We must discard those things that we no longer need to do and scale up those that are essential for progress.
State-owned enterprises
Madam Speaker, R3 billion was allocated to the Land Bank in June. The Bank will require an additional R7 billion over the medium-term to support its restructuring.
R10.5 billion is allocated to SAA to implement its business rescue plan. This allocation is funded through reductions to the baselines of national departments, public entities and conditional grants. This allocation is in addition to the R16.4 billion allocated over the 2020 MTEF in the February Budget for settling guaranteed debt and interest.
Our approach is in line with the principle that funding to state-owned companies must come from within the current framework and reprioritised from elsewhere.
We cannot break the fiscal framework.
Dealing With Corruption
The final part of our duties as captains through the storm is to strengthen the ship.
The COVID-19 pandemic has given rise to shameful and exploitative acts of corruption. This has overshadowed our collective achievements in saving lives and supporting livelihoods.
It is not true that the R500 billion relief package has been entirely lost to corruption. As pointed out above, it is being used to cushion the impact of the pandemic and aspects will continue to be rolled out over the medium term, particularly the Presidential Employment Programmes.
We must continue to defeat the corrupt and plug the loopholes. Efforts to support a rapid response to COVID-19 underline the need for comprehensive procurement reforms. The National Treasury has withdrawn the emergency procurement instruction note and required all state bodies to revert to normal procurement processes. Procurement is now slowed down due to a few scoundrels who put themselves ahead of the country, and we must all suffer.
The details of all COVID-19 related procurement, including the names of companies awarded contracts, have been published. The majority of health spending takes place at provincial level. Provinces are taking actions against those found to have been involved in corrupt practices.
The South African Revenue Services is working with other law enforcement agencies to evaluate R3.5 billion worth of tenders awarded to entities not registered for VAT.
In addition, the State Capture Commission of Inquiry is allocated an additional R63 million from the Department of Justice and Constitutional Development to finalise investigations and produce a close-out report.
Conclusion
Honourable Speaker, Members of the House,
Today we set out a course back to prosperity. Growth is slowly returning.
Things are looking better.
The 2020 MTBPS sets out our course forward.
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We intend to run primary surpluses on the main budget by 2025/26 by constraining non-interest spending growth
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We shift spending from consumption to investment. Over the MTEF, the fastest-growing item, other than debt service costs, is spending on capital goods, i.e. investment, which is projected to grow at 7.8 per cent a year
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We allocate resources for the Economic Reconstruction and Recovery Programme
The Gospel according to John chapter 12 verse 35 warns us:
“You are going to have the light just a little while longer. Walk while you have the light, before darkness overtakes you. Whoever walks in the dark does not know where they are going.”
Madam Speaker, Honourable Members,
Today we embrace our higher purpose as citizens and leaders to take forward the vision of nation-building. Together we can shape a new destiny for our great, vibrant, beautiful country.
Our thanks go to the President and the Deputy President for their support, Cabinet colleagues, the members of Ministers’ Committee on the Budget, the MECs of Finance (Team Finance).
Thanks also to the chairpersons of the Standing Committee on Finance and Appropriations Committee, Mr Joe Maswanganyi and Mr Sfiso Buthelezi respectively, and members of the respective parliamentary committees.
The Medium-Term Budget Policy Statement coincides today with another important process, the tabling of the tax Bills. I am grateful to the Standing and Select Committees on Appropriations and Finance. They have the responsibility for steering the consideration of the tax bills, giving effect to the revenue proposals as announced in the 2020 Annual Budget in February and related tax administration matters. They will also consider the 2020 Division of Revenue Second Amendment Bill and the 2020 Second Adjustments Appropriation Bill.
We also wish to thank the Governor of the South African Reserve Bank, Mr Lesetja Kganyago and his staff for their cooperation with us.
A special word of thanks goes to the Deputy Minister of Finance, Dr David Masondo, and the Director-General of the National Treasury, Mr Dondo Mogajane, and the team for their courage, hard work and commitment.
Finally, we express our appreciation to the people of South Africa who continue to walk with us as we chart the way to a promising destination.
I thank you.
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SACUM-UK EPA and SA-US Trade Relations, including AGOA (the dtic)
The United Kingdom (UK) is South Africa’s 5th largest trading partner with total trade amounting to R110 billion in 2019. This is up from R73 billion in 2014. Total two-way trade in goods between SA and the US grew from $7.3bn in 2001 to a peak of $16.3bn in 2011. Since then, bilateral trade declined steadily, to $12.3bn in 2019.
pdf Presentation (340 KB) by Ambassador Xavier Carim, Deputy Director General, Trade Policy, Negotiations and Cooperation Branch, dtic
Toolbox of measures needed to arrest slippage of domestic chrome competitiveness (Mining Weekly)
The Minerals Council South Africa says a comprehensive “toolbox” of measures is needed to improve the competitiveness of the entire chrome value chain, which has been impacted by a number of challenges. These challenges include nearly 40% of South Africa’s ferrochrome production having either been closed or mothballed in the past two years, as well as the significant 523% rise in the price of electricity over the past decade and shortages of electricity supply that have affected the production of mining companies and materially eroded the competitiveness of the ferrochrome industry.
Mini-budget: A tough balancing act (SAnews)
Finance Minister Tito Mboweni faces a tough juggling act this afternoon, when he presents the 2020 Medium Term Budget Policy Statement (MTBPS) in Parliament. The MTBPS will be his second budget presentation since the tabling of the Supplementary Budget in June, which was in response to the economy-crippling COVID-19 pandemic. It also comes on the back of the recently announced Economic Recovery Plan. Econometrix (Pty) Limited director and chief economist, Dr Azar Jammine, speaking to SAnews, said the country might see tough austerities being imposed due to the country’s recent dramatic deterioration in finances.
Export revenue increases by 115.6 USD million (Ethiopian Press Agency)
Exports in the first quarter of the fiscal year 2020 compared to in the previous fiscal year, export revenue increased by 115.6 million USD or 16 percent and a total of US $ 838.6 million was earned, according to the Ministry of Trade and Industry (MoTI). The mining sector has achieved 300 percent of the plan and 205 million USD earned. The industrial sector earned 95 percent and 94 million USD, while agricultural products earned 73 percent and 541 USD respectively, said MoTI. It is stated that the export Products contract registration and implementation of export contracts then major contribution to the improvement of export trade.
Kenya’s debt repayment down Sh199 billion on cheaper loans (Business Daily)
Taxpayers forked out Sh651.5 billion to service Kenya’s public debt in the year to June 30, a report by the Treasury shows, marking a 23.34 percent drop from the previous year. The loan repayments during the period were Sh198.57 billion lower compared to Sh850.07 billion in the 2018/19 fiscal year following a decision by the State to ditch costly commercial loans. “The decline of debt service was on account of decline to lower repayment of commercial debt,” Treasury Cabinet Secretary Ukur Yatani said in the annual public debt management report to Parliament.
Zambian cabinet approves ratification of African free trade agreement (Xinhua)
Zambia’s cabinet has approved the ratification of the African Continental Free Trade Area (AfCFTA), a spokesperson said on Tuesday. Chief Government Spokesperson Dora Siliya said the cabinet approved the ratification of the agreement during its sitting on Monday, Oct. 26. She said the ratification of the agreement will enable the country to have access to a larger market and to harmonize trade instruments across the continent’s regional economic communities. Zambia signed the agreement on February 10, 2019.
A high-level panel to promote the implementation of the AfCFTA in Niger (UNECA)
On the initiative of the United Nations Economic Commission for Africa (ECA), through its Sub-Regional Office for West Africa (SRO-WA), in partnership with the Ministry of Trade and the Promotion of the Private Sector and the Organisation of Industrial Professionals in Niger (OPIN), a high-level panel was organised Thursday, October 22, 2020 on the theme “Boost local production: promote the ‘Made in Niger’ label within the framework of the implementation of the African Continental Free Trade Area (AfCFTA)”.
Nigeria’s Manufacturing Sector contracts for 6th consecutive month (Nairametrics)
The Manufacturing Purchasing Managers’ Index (PMI), for the month of October, witnessed a contraction for the 6th consecutive month, as it stood at 49.4 index points. This was disclosed by the Central Bank of Nigeria (CBN), in its October PMI report released today. According to the information contained in the report, despite the fact that the Manufacturing Purchasing Managers’ Index (PMI) for the month of October contracted, the Manufacturing PMI index recorded a month-on-month increase owing to improved New orders, faster manufacturing supplier delivery time, and slight changes in production and employment levels.
Fresh concerns over $17 billion yearly freight loss to foreign shipping lines (The Guardian Nigeria)
Stakeholders in the maritime industry have expressed displeasure over the yearly $17 billion revenue loss to foreign ship owners due to the inability of the country to lift her cargoes. According to shipping experts and economists, Nigeria cannot own and manage vessels, which is a critical and essential trade facilitation tool. This is particularly worrisome as trade is the country’s second-largest contributor to its gross domestic products (GDP).
Africa
AfCFTA and Trade un Services tops the agenda of the SRO-SA Ad-hoc Expert Group Meeting (UNECA)
The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA) convened an Ad-hoc Expert Group Meeting on the theme: “The African Continental Free Trade Area (AfCFTA) and Trade in Services: Opportunities and Strategies for Southern Africa.” On opportunities and strategies for Southern Africa to benefit from trade in services under the AfCFTA, the e representative from UNCTAD, among others, highlighted the technical support that UNECA and UNCTAD were providing to member States in developing regional value chains in services, within a joint UN Development Account project. Ms. Trudi Hartzenberg, Executive Director of Trade Law Center (TRALAC), South Africa, emphasised the need to create an internally consistent regulatory ecosystem in services trade across the RECs and the AfCFTA.
A Clarion Call to ensure that trading under the AfCFTA begins in 2021 – A Manchester Trade Paper (The Habari Network)
In this brief Manchester Trade paper, we argue that unless intra-African trade under the African Continental Free Trade Agreement (AfCFTA) begins on a timely basis, Africa’s credibility as a serious player in the global economy will suffer a demoralizing blow. Specifically, if the current delays and launch dates go beyond January 2021, Africa’s various trade and investment partners may start to doubt if the AfCFTA will ever become a reality. Ideally, the current trajectory of the AfCFTA negotiations thus far should culminate in a tentative 2020 ministerial to announce the implementation of a functional AfCFTA.
AfCFTA success depends on manufacturing, value-addition – Dr Osafo-Maafo (Ghanaweb)
Senior Minister, Dr Yaw Osafo-Maafo, has said the success of the Africa Continental Free Trade Area (AfCFTA) depends on every African country having something to trade to the rest of the continent. He said while the free trade area agreement is long overdue, African countries need to emphasise manufacturing and value addition. He said while other intra-continental trade zones like Europe and the Americas are recording annual trade volumes of 60% to 70% of total trade volumes, intra-Africa trade remains a meagre 2%, per 2016/2017 figures. “We have a long way to go to make the agreement work. We must work and trade among ourselves. Others are doing 70% and we are doing 2%. So, we need definitely to do more,” he said.
Africa needs to improve continent’s integration (China Daily)
Historically, African countries have suffered from pervasive corruption and illicit financial flows, which have continually deprived them of much-needed development funds, and eroded confidence and trust on the world stage. Furthermore, the institutions that have been established to ensure transparency and accountability are lacking the leadership and political goodwill needed to effectively discharge their mandates. However, according to the United Nations Conference on Trade and Development’s “Economic Development in Africa Report 2020”, African countries need to build greater cooperation under the African Continental Free Trade Area to curb corruption and illicit financial flows. In addition, to create more resilient African economies, Africa needs to take action on deeper integration.
Opportunities to Turn Around the Low Intra-Regional Trade Abound (COMESA)
Intra-regional trade among the 21 Member countries of COMESA is estimated at a 7%. This low performance is attributed to inadequate participation of all Member States in the COMESA Free Trade Area and the challenges they face in the implementing regional commitments. The situation further aggravated by poor physical connectivity leading to high transportation costs, prevalence of non-tariff barriers, lack of information exchange about existing trading opportunities and prevalence of restrictive regulatory requirements in various markets. ”We need full application of the rules-based regime provided for under the COMESA Non-Tariff Barriers regulations and collective implementation of the commitments under the World Trade Organization Trade Facilitation Agreement,” he said. “We also need to accelerate the negotiations on Trade in Services and make meaningful commitments in sectors that impact trading conditions in the region in terms of competitiveness such as financial sector, telecommunication, tourism and transportation.”
Bioeconomy offers the opportunity to create many jobs in East Africa (UNECA)
Many policymakers and businesses have been calling a green recovery and a “Build Back Better” strategy in the post-COVID-19 era to limit the impact of future pandemics and crises such as climate change. Experts stress that moving our economies towards a bio-based economy offers opportunities for countries to rebuild their economies in an environmentally and socially inclusive manner. Mama Keita, Director of UN Economic Commission (ECA) for Africa in Eastern Africa told the participant at the meeting that ”Bioeconomy is knowledge-intensive and not well-known or understood by the general public and by decision makers. The States and their partners have an important role to play to overcome these challenges.”
African banks – finding balance between post-pandemic challenges and opportunities (East African Business Week)
In a post-pandemic environment, African banks will have to navigate not only an economy in recession, but one where there will be many disruptors to existing business models and a rapid acceleration of existing trends such as digitalisation, cybercrime and the importance of environmental, social and governance (ESG) factors. Baker McKenzie’s latest report, “Finding Balance: The Post-COVID Landscape for Financial Institutions”, states that at the beginning of the COVID-19 crisis, financial institutions faced two main challenges – prudential and operational. The prudential challenge refers to a sudden drop in the value of financial assets, or loss of liquidity, whether domestically or elsewhere in the world.
FAO aims to untap Africa’s potential to end hunger and malnutrition (FAO)
The Director-General of the Food and Agriculture Organization of the United Nations QU Dongyu says Africa’s potential gives him hope that the battle against poverty and hunger can be won. He made the remarks at today’s opening of the Ministerial segment of the 31st Session of the Regional Conference for Africa. “We meet in trying times, but the opportunities ahead of us give me hope,” Director-General Qu said. “Africa is the continent of untapped potential and remains a key priority for me. I am convinced that agricultural and rural development are the keys to winning the battle against poverty and hunger in Africa.”
Experts give insight into food safety in Africa (Food Safety News)
African experts have highlighted the main food safety concerns, challenges, and potential solutions for the continent at the International Association for Food Protection (IAFP) virtual annual meeting. Lucia Anelich, director of Anelich Consulting, presented the situation in South Africa. Lucia Anelich, director of Anelich Consulting. Anelich said not all the system is risk-based but there is a push to revise regulations and standards. “Food safety management system implementation is mainly voluntary and it has become a customer requirement. So if a company wants to do business with another they will require a specific FSMS is in place and certified by an accredited certification body,” she said.
Data-driven digital banking the way to go – KPMG report (Ghanaweb)
A new KPMG report says banks can only survive in the highly digitised era if their product offerings are designed in a way that meets the preference of millennials. The report titled: “Heightened customer expectation in the new normal and beyond,” said the future of customer experience will be insight-led, digitally-enabled and would require customer-centric culture as well as compelling value propositions. “Banks must deploy cross-cutting customer strategies that are born out of data analytics about customers as an essential tool for growth.
International
Food Security and Human Welfare Critical in Trade Agreements – South African Minister (the dtic)
The Trade Ministers Meeting discussed ways to narrow differences and generate consensus to drive the WTO fisheries subsidies negotiations towards conclusion and the contribution of the WTO to global economic recovery post-COVID-19. The negotiations on fisheries subsidies are at a critical stage and the WTO has a role to deliver on Sustainable Development Goal (SDG) 14.6 which aims to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to the Illegal, unreported and Unregulated (IUU) fishing, and refrain from introducing new such subsidies, recognising that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the WTO fisheries subsidies negotiation by 2020.
Minister Patel emphasized that the key objective for the negotiations should be to discipline the subsidies that are targeted at large-scale industrial fishing, while safeguarding food security and livelihoods for subsistence and artisanal fisheries.
DDG Yi calls on ministers to ramp up cooperation on trade to bolster economic recovery (WTO)
The informal session, convened by Australia, looked at two issues: how to narrow differences and move towards an agreement in the WTO fisheries subsidies negotiations, and how the WTO can best contribute to global economic recovery in the wake of the damage caused by the pandemic. The outlook for global trade is a bit brighter than a few months ago. Your countries’ extraordinary fiscal and monetary measures have cushioned the fall in demand, forestalled financial market instability, and contributed to an uptick in trade.
What you need to know about the EU’s backing of Okonjo-Iweala to lead the WTO (African Business Magazine)
The final round in the election for the next director-general of the World Trade Organisation, the multilateral body that regulates world trade, pits former Nigerian finance minister Ngozi Okonjo-Iweala against South Korean trade minister Yoo Myung-hee. The winner, who will be the WTO’s first female director-general, will take the reins as the global trading system comes under significant pressure from an ongoing trade war between the United States and China and amid unprecedented disruption caused by Covid-19. In a significant coup for Okonjo-Iweala, European Union ambassadors confirmed this week that the Nigerian, who would be the first African director-general of the organisation, has secured the support of the EU’s 27 member states following discussions in Brussels last week after hearings with both candidates.
WTO: 106 Countries Back Okonjo-Iweala (The Tide)
The WTO’s consultation process ended, yesterday, and the new leader is expected to be named in November but an EU official said that the EU would publicly announce its support for Nigeria’s former finance minister, Dr Ngozi Okonjo-Iweala, according to AFP. If Okonjo-Iweala is confirmed, she would join the WTO at a difficult time, with the world facing a deep post-Coronavirus recession and a crisis of confidence in free trade and globalisation.
Global trade linked to resource insecurity (Cosmos Magazine)
The global economy and international trade are aggravating water, land and energy insecurity and this is taking a disproportionate toll on supply chains and remote nations, according to the first comprehensive analysis of its kind. “Whilst most mainstream economists argue for increased trade on the basis of competitive advantage, this analysis shows empirically that trade amplifies resource insecurity,” says Oliver Taherzadeh, who led the research while at the University of Cambridge, UK. “These findings call for critical reflection on whether globalisation is compatible with managing the risks countries face.”
Designing South-South trade and investment projects with impact (ITC)
A new International Trade Centre (ITC) report shows governments and donors how to design and execute effective South-South programmes that have a sustainable impact on development. Drawing from case studies and interviews with ITC staff who have worked on South-South projects, Designing for Impact: South-South Trade and Investment is a guide for good project management for trade and investment promotion. It urges learning from relevant role models to transfer knowledge and technology.
International Tourism Down 70% as Travel Restrictions Impact All Regions (UNWTO)
Restrictions on travel introduced in response to the COVID-19 pandemic continue to hit global tourism hard, with the latest data from the World Tourism Organization (UNWTO) showing a 70% fall in international arrivals for the first eight months of 2020. All world regions recorded large declines in arrivals in the first eight months of the year. Asia and the Pacific, the first region to suffer from the impact of COVID-19, saw a 79% decrease in arrivals, followed by Africa and the Middle East (both -69%), Europe (-68%) and the Americas (-65%).
United States Enables Zambia’s Leadership Role in SADC Regional Seed Export Policy (EIN News)
Today, U.S. government, through its Agency for International Development (USAID), and the Southern African Development Community (SADC), in close partnership with the Government of the Republic of Zambia, commissioned a pilot seed export from Zambia to Mozambique produced by emerging seed company, Lake Agriculture. “Through our Seed Trade Project, we are supporting the SADC Secretariat to harmonize the national seed legislation across all 16 Member States with the regional guidelines. Due to its location and ability to produce quality seeds, Zambia is uniquely positioned to provide the ideal seeds for this inaugural export,” said U.S. Embassy Zambia Chargé d’Affaires, a.i. David Young.
How Fighting Cybercrime Also Fights Global Poverty (BORGEN)
Technological advancements of the last three decades have revolutionized the nature of governance, business and daily life for the better. However, it has also given rise to a new, inconspicuous category of criminal activity. Cybercrime is the broad term for criminal activities that involve the use of digital computers. Potential victims include any individual, business or other entity with a digital device. Although there are many forms of cybercrime, the most common include hacking, committing fraud or theft, trafficking child pornography and using hate speech or inciting terrorism. Fighting cybercrime is one of the many ways governments can also help downsize poverty.
Coronavirus vaccines, World Trade Organisation and the global divide (The Financial Express)
Covid-19 has introduced several far-reaching changes in the global order. Some of these are in management of global trade. The division among countries over flexibilities to be allowed in the World Trade Organisation’s intellectual property rules, for global production and distribution of vaccines, is an indication of the turmoil that global trade management and the WTO would encounter in the days to come. Concerns over low-income populations in several countries missing out on vaccines have been highlighted by findings of a recent study by Oxfam.
Related News
Food Security and Human Welfare Critical in Trade Agreements – South African Minister
The Minister of Trade, Industry and Competition, Mr Ebrahim Patel participated in the Informal World Trade Organisation (WTO) Trade Ministers Meeting on Tuesday, 27 October. The Trade Ministers Meeting discussed ways to narrow differences and generate consensus to drive the WTO fisheries subsidies negotiations towards conclusion and the contribution of the WTO to global economic recovery post-COVID-19.
The negotiations on fisheries subsidies are at a critical stage and the WTO has a role to deliver on Sustainable Development Goal (SDG) 14.6 which aims to prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to the Illegal, unreported and Unregulated (IUU) fishing, and refrain from introducing new such subsidies, recognising that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the WTO fisheries subsidies negotiation by 2020.
A study by the Food and Agriculture Organisation estimates that 85% of governments’ fisheries subsidies benefit large industrial fleets, thereby creating perverse incentives that enable distant water fleets to target fishing stocks that are already in an unsustainable condition.
Minister Patel emphasized that the key objective for the negotiations should be to discipline the subsidies that are targeted at large-scale industrial fishing, while safeguarding food security and livelihoods for subsistence and artisanal fisheries.
In relation to the contribution of the WTO to global economic recovery, Minister Patel stressed that the prospects of economic recovery are dependent on an efficient response to curb the pandemic. “Many countries face institutional and legal difficulties when using TRIPS flexibilities due the cumbersome process to be followed to invoke the flexibilities.
The TRIPS Waiver as proposed by South Africa and other developing countries aims to promote timely, affordable and equitable access to vaccines, medical technologies and treatments of COVID-19 and ensure that IPRs are protected for the benefit of all” said Minister Patel.
This follows a call South Africa made at the G20 Ministers of Trade and Investment meeting held on 23 July 2020 in which Minister Patel highlighted the need for the G20 and the World Trade Organization, to discuss the relationship between TRIPS (the Agreement on Trade-Related Aspects of Intellectual Property Rights) and COVID-19, arguing that affordable access to technology to produce critical medical supplies remains important. The South African government argued that the provisions of the TRIPs Agreement on patents and compulsory licensing should not be barriers to sharing the technology to produce the medical equipment needed to address the crisis.
Minister Patel added that “in a post-COVID dispensation, strong and resilient national systems would have to enhance national production capacities; ensure greater diversification and value-addition, including technological upgrading. This applies even more in circumstances where developed countries are adopting measures to promote ‘strategic autonomy’ and re-shoring strategies. We strongly believe that further tariff liberalization is not a solution in the midst of a crisis.”
Furthermore, Minister Patel stressed that it is time for a fresh set of thinking about trade policy and its interface with industrial policies and legitimate national industrial objectives.
Related News
SACUM-UK EPA and SA-US Trade Relations, including AGOA
Presentation by Ambassador Xavier Carim, Deputy Director General, Trade Policy, Negotiations and Cooperation Branch at the dtic, to the Select Committee on Trade and Industry, Economic Development, Small Business Development, Tourism, Employment and Labour on 20 October 2020.
SA-UK Trade Relations
The United Kingdom (UK) is South Africa’s 5th largest trading partner with total trade amounting to R110 billion in 2019. This is up from R73 billion in 2014.
In 2019, SA exports to the UK were worth R68.1 billion; 12.6% average annual growth since 2014, from R37.6 billion. The main export products were platinum, motor vehicles, citrus and other fresh fruit, catalytic converters, and iron ore.
Imports from the UK were worth R41.3 billion; 3.1% average annual growth since 2014, from R35.2 billion. The main import products were printed materials, machinery and computer equipment, motor vehicles, whiskies, electric equipment including sound and visual equipment.
Current trade between SA and the UK takes place under the Economic Partnership Agreement between the Southern African Development Community and the European Union (SADC-EU EPA) which has been in force since October 2016. The SADC-EU EPA is a free trade agreement (FTA) between the Southern African Customs Union (SACU) members – Botswana Eswatini, Lesotho, Namibia (BELM) and South Africa – who negotiate and implement FTAs as a bloc, plus Mozambique (SACUM) on the one side, and the EU on the other. The SADC-EU EPA replaced the trade chapter of the 1999 Trade, Development and Cooperation Agreement (TDCA) which was a bilateral FTA between SA and the EU.
In March 2017, the UK formally notified its intention to leave the EU (‘Brexit’). The UK formally left the EU on 31 January 2020 through the so-called Withdrawal Agreement. The Withdrawal Agreement stipulates that EU trade agreements will continue to apply to the UK until 1 January 2021.
Soon after the UK notified its intention to leave the EU, SACU, Mozambique and the UK agreed to initiate negotiations to “roll-over” the trade arrangements of the SADC-EU EPA into a new bilateral agreement. The SACUM-UK EPA was signed in October 2019. This ensures trade between SACUM and the UK continues uninterrupted when the UK leaves the EU.
The terms of the SADC-EU EPA have been largely transposed into the new SACUM-UK EPA. However, some changes were required with respect to: Tariff-rate quotas (TRQs), Sourcing inputs from the EU into products traded between the UK and SACUM, Transitional Arrangements, Geographic Indicators (GIs), and a Built-in Agenda
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TRQs. A TRQ establishes a tariff preference for a specific volume of imports. Under the SADC-EU EPA, the UK shares TRQs with other EU Members on exports of 8 agricultural products to SACU. South Africa has 13 TRQs to the EU of which a share had to be carried over to the UK under the new arrangement. Shares were calculated on historical trade covering 13 products for export to the UK, notably wine, sugar, canned fruit, fruit and fruit juices. TRQ volumes will increase annually.
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Cumulation. A new provision was negotiated that would allow the UK and SACUM to fully cumulate with EU inputs for production to export to each other, meet the Rules of Origin requirements and obtain the preferential tariff. It ensures continuity of highly integrated value chains across EU-SA-UK, notably in automotive. The provision is applicable for 3 years pending the outcome of a new trade arrangement between the UK and EU. This period can be extended or revised if deemed necessary by SACUM and the UK
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Transitional Arrangements. The SACUM-UK EPA contains transitional arrangements to carry over measures and actions from the SADC-EU EPA. These include continuation of the current safeguard on imports of poultry. South Africa agreed that UK safety and health regulations affecting agricultural trade would continue to match those of the EU. On Customs matters there is continued recognition of Certificates of Origin as issued under the SADC-EU EPA. If changes are effected in future, the UK is obliged to provide sufficient time for SACUM exporters to adjust to new regulations and requirements.
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Built-in Agenda. A Built-in Agenda was agreed to address areas of interest that could not be resolved during negotiations. For SA, areas of interest are DFQF market access or increase of TRQ volumes into UK; Regional cumulation to allow BELN and Mozambique to cumulate with SA products (especially basic agricultural product inputs); Treatment of vehicles with engine capacity of 1000cc and less; Export taxes; Enhanced cooperation on TBT, i.e. standards, conformity assessment procedures, etc.
The South African Parliament ratified the SACUM-UK EPA in December 2019. The UK, Botswana, and Lesotho have also ratified. Eswatini and Namibia are at an advanced stage of ratification. Once ratified by all, instruments of ratification have to be deposited at the SACU Secretariat by 30 November 2020, so the agreement is in force on 1 January 2021.
SA-US Trade Relations
Since 2001, SA exports enter the United States under three regimes: a) the MFN (most-favoured nation) tariff rates that are applied to all WTO members; b) GSP that offers preferential tariffs for most developing countries on around 4650 products; and c) AGOA that offers preferential tariffs for eligible sub-Saharan African countries, that covers GSP products and an additional 1835 products.
Being eligible for GSP is a prerequisite for preferences under AGOA and while the GSP is subject to annual reviews, AGOA benefits are locked-in for extended periods of time. AGOA was established in 2000 and has been renewed twice; in 2008 and again in 2015 for a duration until 2025.
These extended periods aimed to foster greater certainty in market access and encourage productive investment in sub-Saharan African countries. Nevertheless, both schemes are subject to considerable discretion by the US Government, and countries can and have been removed from the schemes from time to time.
Total two-way trade in goods between SA and the US grew from $7.3bn in 2001 to a peak of $16.3bn in 2011. Since then, bilateral trade declined steadily, to $12.3bn in 2019. SA exports to the US increased from $4.3bn in 2001, peaking at $10bn in 2008 at the time of the global financial crisis, and then steadily declined to $7.6bn in 2019. SA imports from the US increased from $2.8bn in 2001 to $7.1bn in 2012 but declined to $4.6bn in 2019. Over the period 2001-19, the trade balance often favoured SA due to high levels of SA’s commodity exports (notably platinum, diamonds and gold).
GSP and AGOA offers SA preferential market access for exports of higher value added manufactured goods. SA’s top higher value added exports under GSP include chemicals, iron and steel, precious stones, metals, machinery, plastics, auto components. Under AGOA, they include autos, iron and steel, fruit and nuts, organic chemicals, beverages and spirits. The share of SA exports under GSP and AGOA increased from 20% in 2001 to 44% in 2014, but fell to 26% in 2019. GSP exports increased from 11.4% in 2001 to 17% in 2005 but then declined to 10% in 2019. The share of AGOA exports (excluding GSP) increased from 9.4% in 2001 to 31% in 2013 but then declined to 16% in 2019.
SA exports under MFN contribute the largest share of SA exports to the US. In 2001, MFN exports accounted for 79% of all our exports, declined to 56% in 2013, before rebounding to 74% in 2019. We are seeing a steady return of a greater share of commodities in our total export basket to the US. A corresponding decline in the value of the US market for SA value added manufactured products. The US ranking in our global trade has declined from a share of 8.7% in 2010, to 6.9% in 2019.
In general, the decline is due to poor trade conditions since the global financial crisis in 2008 in which demand and growth in the US real economy has been subdued. Moreover, there have been significant shifts in the US import policy stance with greater focus on supporting US manufacturing, particularly under the Administration’s “America First” policies.
The changes affected SA in various ways: In March 2018, citing national security, the US imposed WTO inconsistent tariffs of 10% and 25%, respectively, on aluminium and steel imports from all except six WTO Members. SA steel exports to the US declined by 33% between 2017 and 2018 (to US$187mn).
In 2018, the initiation an investigation into tariffs in the auto sector generated uncertainty for SA auto exporters. This lead to changed decisions on sourcing, with the effect that SA auto exports to the US (worth $1.2bn in 2017) fell 51% in 2018. In June 2020, the US announced an investigation into vanadium imports. SA exports of vanadium may be at risk. SA has also faced the prospect of being removed from the preference schemes if certain US market access or policy concerns were not addressed.
In 2015, the US enacted new AGOA legislation that introduced an ‘out-of-cycle’ review of SA’s AGOA eligibility. Under the threat of removal from AGOA, SA granted the US an annual quota of 65 000 tons for poultry imports subjected to WTO-legal anti-dumping duties.
In October 2019, the USTR initiated a review of SA’s GSP eligibility based on concerns of some US firms who argue that SA’s Copyright Amendment Bill undermines their commercial interests. The President’s decision on 16 June 2020 to return the Bills to Parliament due to constitutional concerns has delayed a final decision by the US. All this has a dampening effect on exports and trade.
SA-US Trade Relations: African Growth and Opportunity Act (AGOA)
AGOA will expire in 2025. The US has indicated that it will not extend AGOA and, if it does, it will not include developing countries such as SA. The GSP scheme is also under review that could bring changes to the eligibility criteria.
At the annual AGOA Meeting in September 2019, the USTR announced a new post-AGOA policy approach to sub-Saharan Africa. The USTR proposed to negotiate an FTA with one African country that would serve as a model for others. They indicated that its recently concluded US-Mexico-Canada FTA would be the model for such FTAs.
US FTAs are demanding and the scope for flexibility is narrow. US FTAs:
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require close to full tariff liberalisation for trade in industrial and agricultural goods. There are no rules to limit the large support provided to the agricultural sector;
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limit government measures on preferential procurement and localisation, and seek access to government procurement markets;
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require extensive liberalisation and deregulation for trade in services (finance, telecommunication amongst others);
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include stringent (WTO-plus) rules to protect intellectual property rights while restricting policies for technology transfer;
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and on digital trade, prohibit customs duties on electronic transmissions, localisation programmes and local content requirements but lock-in provisions for free flow of data.
SA will need to carefully consider post-AGOA trade relations with the US. SA-US trade remains important; SA continues to benefit from AGOA and GSP, and the US remains an important source of investment and technology for SA. The SA government, through the Department of Trade, Industry and Competition (dtic), continues to cooperate with the US Government and Embassy in SA to enhance trade and investment, and to address issues of concerns on both sides.
Find out more on AGOA.info.
Related News
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National
How the virus worsened South Africa’s debt woes (Bloomberg / Engineering News)
South Africa is faces surging debt as the havoc wrought by the coronavirus pandemic compounds a deterioration in public finances caused by overspending, mismanagement and alleged graft during former President Jacob Zuma’s nine-year rule. “South Africa’s debt position is going to be unsustainable over the next five years because the fiscal consolidation measures are unfeasible,” said Mpho Molopyane, an economist at FirstRand Group’s Rand Merchant Bank.
Done deal for Dar-Kampala oil project (Dailynews)
Tanzania has finally sealed the Host Government Agreement (HGA) with TOTAL in implementing the East African Crude Oil Pipeline Project (EACOP), after protracted negotiations. The long-drawn-out move in reaching an agreement with the French firm was due to unresolved harmonisation issues between Dar es Salaam and Kampala, two East African countries. Speaking shortly after signing the agreement with the French multinational integrated Oil and Gas Company, the Attorney General of Tanzania, Dr Adelardus Kilangi, who also led the country’s team on the negotiating table, said the deal signalling Tanzania’s readiness and commitment in welcoming potential investors to the country.
Govt asks banks to support import substitution (Dailynews)
The government has called upon financial institutions to channel their lending in areas which will enhance import substitution. The pledge came during Minister of State in the Prime Minister’s Office (Investment) Angellah Kairuki’s tour of various banks in Dar es Salaam. Ms Kairuki said that the move would make country not to depend on foreign goods that could easily be produced locally and save the economy’s foreign reserve. She said one of the key areas was the pharmaceutical industry.
Kenya shilling hits record low of 108.85 on import pressure (Business Daily)
The Kenya shilling dropped to a record low of 108.85 units against the dollar on Monday, market data showed, on demand for the greenback by importers. This was despite a fall in the Central Bank of Kenya(CBK) dollar reserves to a five-month low of $8.223 billion (Sh888 billion) or 4.99 months import cover – a sign that the regulator may have acted to support the local currency. The shilling has come under intense pressure after reopening of the economy as imports pick up despite slower recovery of dollar-earning exports and tourist receipts.
Doing Business Roadmap To Improve Cameroon’s Environment (Cameroon-Tribune)
The 11th session of Cameroon Business Forum which is the main forum for dialogue between the State and private sector took place at the Auditorium of the Prime Minister’s Office in Yaounde on October 22, 2020 and ended with adoption of the roadmap on priority actions to improve Cameroon’s ranking in Doing Business report. Prime Minister, Head of Government, Chief Dr Joseph Dion Ngute chaired the session that took place on the theme, “COVID-19: Proofing the business environment.” As he closed the event, Prime Minister Dion Ngute called on the public and private sector actors to ensure the success of reforms put in place to caution the impact of the COVID-19 pandemic in the country’s socio-economic life. He said the topics presented and Doing Business roadmap adopted were all intended to make the business environment in the country attractive.
COVID: 4% of Kenyan business professionals expect their firms to fold (Kenya Broadcasting Corporation)
4 percent of business professionals in Kenya expect firms they work for to fold on account of COVID-19 according to a survey conducted by the Africa Business Panel. South Africa had the highest number of professionals who expected their firms to wind up at 10, followed by Nigeria at 5 percent and Ghana 3 percent. The COVID-19 pandemic has seen caused disruptions in the continent as a result of stringent measures undertaken by the states to suppress the spread of the viral disease. According to the Panel, 62 percent of African companies indicated that they are struggling but will survive.
Zambia’s private sector shows slow recovery from COVID-19 in September (Xinhua / CGTN Africa)
The private sector in Zambia eased the slowdown imposed by the COVID-19 pandemic during the month of September following government’s decision to ease some restrictions to stimulate economic activity, results of a survey showed on Monday. While the business environment remains volatile due to the pandemic, the decline in business activities was much slower during the month of September compared to previous months.
Somalia Scales up Social Protection Measures as COVID-19 Constrains Economic Growth (World Bank)
Somalia’s economic growth is forecast to contract significantly due to the negative impacts of COVID-19 (coronavirus), the locust infestation and extreme flooding. The economy is projected to contract by 1.5 percent in 2020, down from earlier estimate of 3.2 percent before the pandemic. The latest World Bank Somalia Economic Update says COVID-19 has impacted all sectors of the economy leading to declines in revenue for both Federal and state governments. The pandemic has limited livestock exports, trade taxes and remittances, with direct impact on poor households, services and core government functions.
Africa
Call for African govts to adopt ‘Travel Pass’ in preparation for 2021 Africa free trade area (263Chat)
African governments have been urged to embrace the Africa Centres for Disease Control and Prevention (Africa CDC)’s Trusted Travel Platform to protect local economies and lives as the continent prepares for its largest free trade area. The COVID-19 pandemic has affected several economic sectors on the continent since its onset. Trade and supply chains have been disrupted while some sectors - such as aviation, tourism and hospitality - have been among those hardest hit by the pandemic, resulting in massive job losses and lost revenue. The African Union Commission recently launched the ‘saving lives, economies and livelihoods’ campaign that seeks to reduce the spread of infections within and across borders by creating a unified public health corridor for safe travel on the continent.
African money transfer firms thrive as pandemic spurs remittances (news.trust.org)
Despite predictions of a historic drop in remittances due to a pandemic-induced global economic slump, Africa’s money transfer companies have seen a boom. “We saw an increase of transfers as the diaspora wanted to help their family,” said Patrick Roussel, who heads mobile financial services for the Middle East and Africa at French telecom company Orange – a dominant player in French-speaking Africa. “We’ve seen an influx of new customers, and we see them mainly coming to us from the informal market,” said Andy Jury, chief executive of Mukuru, the company Takawira now uses.”
Africa’s food security in the spotlight (FAO)
African member countries of the Food and Agriculture Organization of the United Nations (FAO) will come together for the first ever virtual session of the Regional Conference for Africa, from Monday 26 October. The Government of Zimbabwe is hosting and chairing the biennial event. The 31st Session of the Regional Conference for Africa will also look at the impacts of COVID-19 on food security and nutrition, and ways to build more-resilient food systems. A publication by FAO and the African Union, “Regional Outlook of Gender and Agribusiness in Africa”, will be launched that contains policy recommendations and new data based on a review of 40 country gender assessments of agriculture and rural livelihoods.
Magufuli’s bold actions rattle EAC, benefit Tanzania (The East African)
When John Pombe Magufuli took over the reins as president of Tanzania in November 2015, the East African Community was already pulling in two opposite directions. Kenya, Uganda and Rwanda were already coalescing around the “Coalition of the Willing,” as it came to be known — to accelerate the regional integration agenda, from functional issues like trade and tourism to more ideological ones like political federation. At the East African Legislative Assembly, opinion is divided whether President Magufuli is responsible for the slow pace of integration after missing summit meetings. The Heads of States Summit hasn’t met for two years.
Thoughts On Re-Opening Leisure Travel (Mmegi Online)
It is well documented that the coronavirus (COVID-19) is hurting the country’s key revenue earners namely mining, SACU’s customs and excise duties and tourism. These key revenue lines have been suffering due to closed borders since March with tourism on its deathbed. It is encouraging on the mining side that diamond sales have improved since August with De Beers reporting that demand has risen. The same cannot be said for tourism as border exits and entries remain restricted to essential travel.
How to make EAC economic integration dream a reality (Business Daily)
A recent Ugandan High Court ruling in a case involving a Kenyan bank is a manifestation of confusion that continues to cloud the process of integrating East African Community (EAC). The ruling, which has since been appealed, may entrench scepticism about the adopted EAC Protocols on the Establishment of Customs Union, Common Market, Monetary Union, and Political Confederation. Even though the BoU has since circulated press statements clarifying that its regulatory powers are limited to financial institution business conducted by BoU-licensed entities in or outside Uganda and that these powers do not extend to activities of foreign banks outside Uganda.
Women, migrants the hardest-hit by Covid-19 pandemic (The Citizen)
Sectors dominated by women and migrant workers in Southern Africa are the hardest-hit by the Covid-19 pandemic, according to a new report, as workers across the region face lower quality lives, loss of income and a battle for a “living wage”. The Southern African Trade Union Coordination Council released a study into the impact of the pandemic on workers in the Southern African Development Community (SADC) region this week, with findings calling for a coordinated effort by governments to improve the lives of migrant workers. The findings largely pointed to the cases of Zimbabwe, Mozambique and Malawi as top providers of migrants and Botswana, Namibia and South Africa as top recipients in the SADC region.
Africa climate change report reveals heat rising north and south, Sahel getting wetter (UN News)
“In recent months we have seen devastating floods, an invasion of desert locusts and now face the looming spectre of drought because of a La Niña event. The human and economic toll has been aggravated by the COVID-19 pandemic,” WMO Secretary-General Petteri Taalas said in a statement. The report aims to fill a gap in reliable and timely climate information for Africa, which translates into a lack of climate-related development planning, said Vera Songwe, Under-Secretary-General, and Executive Secretary of the United Nations Economic Commission for Africa (UNECA). The agricultural sector is key to building climate resistance, since it is the dominant employer and it relies on the use of water and energy – both heavily implicated in climate change, WMO’s Regional Strategic Office Director, Filipe Lucio, said.
International
A new take on trade (UNA-UK)
The COVID-19 pandemic has gravely impacted the global economy. Countries have sought to contain the spread of coronavirus by limiting the mobility of people, suspending many non-essential activities and implementing social distancing. While these measures have saved countless lives, they have also created the worst recession since the Great Depression of the 1930s. The global economy is now expected to shrink by about 5 per cent in 2020.
While many countries have now begun to resume economic activity, the potential negative effects of the pandemic are far from over. In the absence of reliable vaccines or better treatments, the risk is that further waves of contagion could derail the economic restart. Given the uncertainty, it is essential that policymakers remain vigilant and continue to devise policies that protect their economies against worsening conditions. As part of this, trade policies will be essential to create a more resilient global economy.
Mukhisa Kituyi, Secretary-General, United Nations Conference on Trade and Development (UNCTAD)
AU-EU partnership: Goals and expectations (ECDPM)
This year marks 20 years since the formalisation of the partnership between the African Union (AU) and the European Union (EU). During that two decades, the partnership has matured and withstood numerous challenges. As it forges ahead, it will continue to be tested by issues such as the COVID-19 pandemic and global trends in governance, peace and security, trade, and multilateralism. These, and the impacts of poverty and inequality within and between countries, also provide opportunities to consolidate and deepen mutual understanding and promote a paradigm shift. Now, in 2020, four priority areas represent the greatest opportunities for increased collaboration and impact of the partnership: Peace, security and governance; Investing in people; Migration and mobility; and African sustainable structural transformation.
UK turning to Ghana as trade and investment destination (Ghanaweb)
As the United Kingdom gets closer and closer to a widely feared no-deal exit from the European Union, its private sector is already making moves to cement alternative trade and investment counterparties. One of them is Ghana, a traditional major trade and investment partner which has lost ground to various counterparties in both western and eastern Europe over the past couple of decades because of the more favourable terms and conditions offered it by being part of a continental free market. Instructively the governments of both countries are currently engaged in negotiations which, if successful, would allow the two countries to continue the preferential trade terms applicable through the ECOWAS – EU Economic Partnership Agreement.
Restrictions in trade to contain COVID-19 have been devastating for Africa’s urban poor (The Conversation)
Trade routes have been significantly disrupted this year in efforts to contain COVID-19. The effects of this are already showing: global growth is set to contract by 4.9% and growth in sub-Saharan Africa will contract by 3.2%. This will get worse if continued restrictions further impede trade. The World Trade Organisation has warned that at worst, global trade could collapse by a third this year, and at best, it will contract by 13%, similar to the recorded drop after the 2009 financial crisis. Trade enables formal firms to flourish, which will be essential for economic recovery. It also protects the urban poor operating in the informal economy against poverty and hunger. The continuation of trade is even more essential for their survival as they operate without an adequate safety net.
Stakes are high for Africa in US presidential election (The Africa Report)
In a week’s time, Americans will see their votes counted in an election seen universally as the most consequential for half a century. Consequential for the direction and stability of the country for decades, and for the international system it has dominated. Africa has not figured in any of the presidential and vice-presidential debates, or in much of the campaigning. Yet it has a serious stake in the outcome as shown by a clutch of Trump administration actions in the last few months.
UNCTAD, AU to remove trade barriers in Africa (The Nation)
Breaking down non-tariff barriers is vital to better trade and stronger African integration. To this end, the African Union (AU) and United Nations Conference on Trade and Development (UNCTAD) are seeking ways to help people trade easier, the UNCTAD has said. In a statement said the AU, UNCTAD and other partners are on a mission to ease trade on the continent and make the African Continental Free Trade Area a viable reality for economic development. According to the statement, one way to do so is to eliminate a costly and complex suite of irritants to freer trade: non-tariff barriers (NTBs).
COVID-19 and migrant remittances: Supporting this essential lifeline under threat (Brookings Institution)
In Africa, one out of five people sends or receives international remittances. Since 2009, the flow of remittances to the continent has nearly doubled; they now comprise more than 5 percent of GDP in 15 African countries. In 2019, migrant workers sent about $85 billion to their relatives on the continent. Worryingly, under COVID-19, precarious working conditions facing expatriates and operational difficulties facing remittance service providers (RSPs) have resulted in a major drop in this essential lifeline. In fact, remittance inflows to Africa are projected to decline by 21 percent – $18 billion in 2020. In comparison, global remittances to African countries fell by 5 percent during the global financial crisis of 2008.
The World Trade Organization (WTO) since 1998 has maintained a moratorium on customs duties for electronic transmissions of digital products and services. But now, despite a strong consensus among economists and trade policy experts that countries around the world greatly benefit from duty-free e-commerce and digital trade, some countries have begun pushing for the moratorium to end. This would be a terrible mistake, according to new report from the Information Technology and Innovation Foundation (ITIF) and the Global Trade and Innovation Policy Alliance (GTIPA), a worldwide network of independent think tanks that support trade liberalization and integration.
Negotiations on e-commerce continue, eyeing a consolidated text by the end of the year (WTO)
WTO members participating in the negotiation of rules on e-commerce shared updates on the work done to streamline the negotiating text at a plenary meeting on 23 October. The co-conveners, Australia, Japan and Singapore, encouraged members to propose constructive solutions and show flexibility in an effort to deliver a consolidated negotiating text by December this year.
Global foreign direct investment falls 49%, outlook remains negative (UNCTAD)
Global foreign direct investment (FDI) flows fell 49% in the first half of 2020 compared to 2019, due to the economic fallout from COVID-19, reveals UNCTAD’s latest pdf Global Investment Trends Monitor (2.43 MB) released on 27 October. In the wake of the pandemic, lockdowns around the world slowed existing investment projects and the prospects of a deep recession led multinational enterprises to reassess new projects. “The FDI decline is more drastic than we expected, particularly in developed economies. Developing economies weathered the storm relatively better for the first half of the year,” said James Zhan, UNCTAD’s investment and enterprise director. “The outlook remains highly uncertain.”
New UN report details environmental impacts of export of used vehicles to developing world (UNEP)
Millions of used cars, vans and minibuses exported from Europe, the United States and Japan to the developing world are of poor quality, contributing significantly to air pollution and hindering efforts to mitigate the effects of climate change, according to a new report by the UN Environment Programme (UNEP). The report shows that between 2015 and 2018, 14 million used light-duty vehicles were exported worldwide. Some 80 per cent went to low- and middle-income countries, with more than half going to Africa.