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Global foreign direct investment falls 49%, outlook remains negative
The biggest drops occurred in developed countries, cutting across all major forms of foreign direct investment.
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 Global Investment Trends Monitor 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.”
Developed economies suffer steepest fall
According to the report, developed economies saw the biggest fall, with FDI reaching an estimated $98 billion in the six-month period – a decline of 75% compared to 2019.
The trend was exacerbated by sharply negative inflows in European economies, mainly in the Netherlands and Switzerland. FDI flows to North America fell by 56% to $68 billion.
Meanwhile, the 16% decrease in FDI flows to developing economies was less than expected, due mainly to resilient investment in China. Flows decreased by just 12% in Asia but were 28% lower than in 2019 in Africa and 25% lower in Latin America and the Caribbean.
In the six months to June 2020, developing countries in Asia accounted for more than half of global FDI. Flows to economies in transition were down 81% due to a strong decline in the Russian Federation.
The decline cut across all major forms of FDI, the report shows.
The report shows that cross-border M&A values reached $319 billion in the first three quarters of 2020. The 21% decline in developed countries, which account for about 80% of global transactions, was checked by the continuation of M&A activity in digital industries.
The value of greenfield investment project announcements – an indicator of future FDI trends – was $358 billion in the first eight months of 2020. Developing economies saw a much bigger fall (-49%) than developed economies (-17%), reflecting their more limited capacity to roll out economic support packages.
The number of announced cross-border project finance deals declined by 25%, with the biggest drops in the third quarter of 2020, suggesting that the slide is still accelerating.
Outlook for full year remains negative
Prospects for the full year remain in line with UNCTAD’s earlier projections of a 30% to 40% decrease in FDI flows, the report indicates.
The rate of decline in developed economies is likely to flatten as some investment activity appeared to be picking up in the third quarter.
Flows to developing economies are expected to stabilize, with east Asia showing signs of an impending recovery.
The flows will hinge on the duration of the health crisis and the effectiveness of policy interventions to mitigate the economic effects of the pandemic. Geopolitical risks continue to add to the uncertainty.
Despite the 2020 drop, FDI remains the most important source of external finance for developing countries, according to UNCTAD. Global FDI stock stood at $37 trillion at the end of 2019.
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A new take on trade
How can trade help the global economy recover sustainably from the pandemic?
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.
COVID-19 and international trade
In 2019, global trade stood at about $25 trillion, with estimates then predicting a 3 per cent rise in 2020. Without a swift recovery in the second half of 2020, the consensus now is that trade will instead plummet by about 20 per cent this year, or by about $6 trillion. Such a decline would be unprecedented, being significantly larger than the $4 trillion fall seen during the 2009 recession.
The impacts of COVID-19 on international trade have been many and varied. We have seen falling commodity prices, reduced manufacturing output and disrupted operations in global value chains. Trade in services has been significantly affected. International tourism arrivals are expected to fall by between 60 and 80 per cent in 2020. Remittances have greatly diminished.
At the regional level, the picture is mixed. While East Asia appears to be on a recovery path, concerns remain for other developing regions where COVID-19 is not yet under control. As many borders remain closed and safety controls delay the movement of goods, developing countries that are highly reliant on external markets are being hit particularly hard. Small countries with high levels of external debt and limited resources to sustain their economies are most at risk of a severe economic recession.
Before the pandemic, there was a growing scepticism towards international trade. Yet the COVID-19 emergency has shown the importance of keeping trade open in times of crisis. For example, cross-border trade has been instrumental in meeting the demand for COVID-19-related medical products on a global scale. International trade of items such as personal protective equipment and ventilators more than doubled in just a few months. The pandemic has also driven an increase in e-commerce, linking consumers to producers not only domestically but also across borders.
Trade and economic recovery
The past few years have been characterised by the high-profile trade spat between the United States and China. In such a context, the pandemic adds to global instability by making the conditions unsuitable to meet the commitments of the two superpowers’ ‘phase one’ trade deal. Coronavirus has the potential to further exacerbate tensions, and to create a more segmented and polarised global economy, with obvious negative repercussions for many countries.
While developed and emerging countries have implemented massive economic packages to support people and businesses, many developing countries are severely fiscally constrained in their recovery efforts, and need a lifeline. Development assistance and a moratorium on debt repayments related to COVID-19 are welcome, but a truly global economic recovery will require international markets that remain open and are made more resilient.
Yet, during periods of economic downturn, the allure of unilateral measures generally increases. For example, at the onset of the pandemic, several countries imposed export restrictions and stockpiled essential medical goods and basic foodstuffs. But countries would be wise to refrain from adopting ‘beggar-thy-neighbour’ policies. While trade restrictions may provide short-term relief, often they provoke retaliation, creating supply shortages and price hikes in international markets, with dire consequences for the global economy.
Trade protectionism will also increase imbalances in the recovery process, adding to the risk that the pandemic will exacerbate existing inequalities, creating the real possibility that the least developed countries (LDCs) will fall further behind. To avoid an insurgence of protectionist measures, governments must monitor how responses to COVID-19 affect trading partners. They must ensure that any such measures are targeted and temporary, and duly address the interests of affected countries, particularly LDCs. Ultimately, keeping exports to developing countries flowing without unwarranted impediments will be crucial to a broad-based recovery.
Trade beyond economic gains
The current world economic crisis can serve as an opportunity for redirecting public policy towards a more inclusive, sustainable and resilient global economy. The metrics of the recovery should not be based solely on economic growth but should also consider the other aspects of development agreed in the Sustainable Development Goals.
This will take a concerted effort, as economic downturns often result in diminished environmental protection. We must avoid a ‘race to the bottom’, where countries seek to secure competitive advantage by watering down environmental safeguards. Instead, to negate this risk, we must align trade policies more closely with climate objectives and further integrate environmental aspects into the international trade framework. For example, international cooperation could focus more closely on greening the trade infrastructure and expanding transnational environmental standards to drive a more sustainable post-COVID-19 economy.
International trade must be part of any recovery effort aimed at building a more fair and sustainable global economy. Promoting free trade as an end in itself, however, will risk fuelling anti-trade sentiments. Instead, the pandemic calls on us to recognise that international trade can have profound effects on lives and livelihoods, both in positive and negative ways.
Commitment to and implementation of the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda on financing for development would help to ensure that inclusive trade growth is an economic foundation for sustainable development. The crisis has yet again underscored the case for continued multilateral trade cooperation and for a robust trading system to contribute to the post-crisis recovery.
Mukhisa Kituyi is Secretary-General, United Nations Conference on Trade and Development (UNCTAD).
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GIPC eyes increased intra-Africa investment (Ghanaweb)
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Egypt becomes largest orange exporter by volume (FreshFruitPortal)
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FG Seeks ECOWAS Cooperation against Illegal Trans-Border Gold Trade (THISDAYLIVE)
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Rwanda, Angola Sign Deal To Exploit Investment Opportunities (Taarifa Rwanda)
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Africa
AfCFTA – The Key to Ushering Trade and Investment to Africa (The National Law Review)
Amid the COVID-19 pandemic, the African continent has seen challenges like other parts of the world that are affecting trade. This includes a moving effective date for the African Continental Free Trade Agreement (AfCFTA), which slid from July 1 to possibly January 1, 2021, to avoid distracting African leaders as they respond to the pandemic. Nevertheless, there is a push to have the continent move forward with the implementation of the AfCFTA, to spur further collaboration and intra-Africa trade, which, in turn, could help the continent better weather economic downturns related to the global pandemic. The AfCFTA, once implemented, will create a US$3.4 trillion economic bloc, which would provide Africa with increased leverage in the global economy.
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F15 Ministers, Special Envoys for mobilization of international COVID-19 support (African Union)
23 October 2020 | As part of the continuing efforts to address the impact of the COVID-19 pandemic, a teleconference was held on 09 October 2020 between the African Union Commission, the F15 Finance Ministers and the AU Special Envoys, for the mobilization of international support for Africa’s response to the COVID-19 pandemic. The purpose of the meeting was for the Finance Ministers, Special Envoys, and the AUC to collectively discuss and agree upon a coordinated approach for the negotiations of resources to secure the COVID-19 vaccine for the continent and build back the economies.
AU COVID-19 Response Fund raises USD 44 million (SAnews)
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Time for integrated regional value chains in Central Africa (UNECA)
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Small farmers are SADC’s future – Dr Tax (Dailynews)
The Southern African Development Community (SADC) joined the international community to commemorate World Food Day on 16 of October which was proclaimed by the Conference of the United Nations Food and Agriculture Organisation to heighten public awareness of the global problem of food absence, scarcity and to strengthen solidarity in the struggle against hunger, malnutrition and poverty. This year, the day was commemorated under the theme “Grow, Nourish, Sustain, Together. Our actions are our future”. It is a clarion call for countries, the private sector and civil society to ensure that food systems grow a variety of food to nourish a growing population and sustain the planet, together.
Africa after COVID19: Policy Priorities to drive economic transformation (ORF)
As Africa entered a new decade, there was sustained, if not vibrant, optimism for the future. Many of the continent’s economies were continuing to grow, while poverty was continuing to decline. The COVID-19 pandemic has dramatically altered that landscape. While the pandemic has not hit Africa as hard as Asia, Europe, and parts of the Americas from a health perspective, it continues to severely strain African economies, threatening to undermine decades of progress and jeopardize long-term goals, including economic transformation. African governments and their development partners must leverage the urgency of the COVID-19 crisis to make meaningful policy changes that will not only help in the short term but also strengthen Africa’s long-term recovery efforts.
The African Development Bank’s African Natural Resources Centre (ANRC) and the African Legal Support Facility (ALSF) hosted a dialogue on responses by governments and the industry to the COVID-19 pandemic in the extractive sector, focusing on South Africa, Ghana, Nigeria, and Kenya. Umar Isa Ajiya, Group Executive Director at the Nigeria National Petroleum Corporation (NNPC), made the point that national oil companies should set aside risk funds to minimize the impacts of unforeseen events. Nigeria’s heavy reliance on oil revenues, oversupply and the dramatic fall in demand for example, has impacted its economy, he said.
Rwanda and British envoys get COMESA accreditation (East African Business Week)
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International
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UK risks road rage with China in Africa (POLITICO)
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IMF to offer low-cost lending into next year as loans hit Sh1.7trn (Business Daily)
The International Monetary Fund has pledged to continue loaning sub-Saharan countries into 2021 after the Bretton Woods body hit Sh1.7 trillion loans over the last six months. IMF said this year, it released $16 billion in loans and debt relief as emergency assistance but more would be needed since the global financial markets have become too expensive for small economies. “The IMF is stepping up efforts to continue this support in 2021. Many of the countries that have received funding from the IMF have reached, or are approaching, their relevant limits for annual access,” IMF said in ‘ pdf Sub-Saharan Africa regional Economic Outlook (2.44 MB) ’. “So the IMF has temporarily increased these annual limits and has allowed for more frequent disbursements under the Rapid Credit Facility, allowing members to obtain further financial support from the IMF during this extraordinary period.”
WTO holds back on LDCs’ request to extend TRIPS waiver (The Financial Express)
The Least Developed Countries’ (LDCs) request to extend the transition period of Trade-Related Aspects of Intellectual Property Rights (TRIPS) didn’t get full support from the members of the World Trade Organization (WTO) Chad, on behalf of the LDC Group, placed a formal request at the meeting of the Council for TRIPS on October 16 in Geneva to extend the transition period for further 12 years. The current transitional period ends on July 1, 2021. In the request, Chad argued that LDCs continue to face serious economic, financial and administrative constraints and are still struggling with various challenges to uplift the socio-economic conditions with very limited capacities. “Such a situation is restricting them to divert resources from other areas, where there is utmost necessity to improve the socio-economic condition of their people,” the written request added.
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Global collaboration is key to recovery and achieving the SDGs (Modern Diplomacy)
The COVID-19 pandemic has stalled the advancement of the sustainable development goals (SDGs). It is creating many challenges, yet also it unveils opportunities to build back better. In this context, inclusive and sustainable industrial development, which is at the core of SDG9, is expected to play a critical role in overcoming the crisis and setting countries back on the path of economic development. SDSN President, Jeffrey Sachs, highlighted the need for global collaboration, and how the world should turn toward six transformation pathways to achieve the SDGs amidst the pandemic. Sachs specifically highlighted the need for the first transformation relating to education, gender and inequality, and the sixth transformation relating to a Digital Revolution for Sustainable Development.
pdf G20 Anti-Corruption Ministers Meeting Ministerial Communiqué (203 KB)
22 October 2020 | In a context of unprecedented global social and economic fragility caused by the COVID-19 pandemic, we stress the heightened threat from and serious impact of corruption on economic growth, sustainable development, quality investment and innovation, and trust between governments and citizens.... The fight against corruption in international trade and investment, as a key dimension to promote a level playing field, remains a top priority of the G20. We encourage countries to promote cooperation with the private sector on this topic and we encourage enterprises of G20 countries to take appropriate measures to raise awareness of corruption risks and deploy effective mitigation and compliance systems.
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F15 Ministers, Special Envoys for mobilization of international COVID-19 support
Communiqué of the teleconference between the African Union Commission, the F15 Finance Ministers and the AU Special Envoys for the mobilization of international support for Africa's response to the COVID-19 pandemic
As part of the continuing efforts to address the impact of the COVID-19 pandemic, a teleconference was held on 09 October 2020 between the African Union Commission, the F15 Finance Ministers and the AU Special Envoys, for the mobilization of international support for Africa’s response to the COVID-19 pandemic. The purpose of the meeting was for the Finance Ministers, Special Envoys, and the AUC to collectively discuss and agree upon a coordinated approach for the negotiations of resources to secure the COVID-19 vaccine for the continent and build back the economies.
In his welcome address, H.E. Prof. Victor Harrison, Commissioner for Economic Affairs at African Union Commission (AUC) highlighted the various initiatives being undertaken by African countries and the AUC to curtail the pandemic and sustain economies. He commended the AU Special Envoys' work in mobilizing resources for the continent, including grants and loans received as emergency support by African countries. He noted that the International Monetary Fund (IMF) increased its support to the continent from US$4 billion to US$24 billion, with ongoing negotiations for the allocation of Special Drawing Rights (SDRs) to enhance the liquidity of governments. He concluded by reiterating the importance of a coordinated and harmonised approach to negotiations for resources for the continent, towards securing vaccines and building back the economy.
H.E. Mr. Tahir Hamid Nguilin, Minister of Finance of the Republic of Chad and Chair of the F15, emphasized the need for additional resources for the continent and commended member states for their efforts so far, despite the limited resources at their disposal. He underscored the need for the AUC, the F15 Ministers, and the Special Envoys to take stock of progress made on the current activities and devise additional strategies for better effectiveness.
Update by the Special Envoys
Dr. Donald Kabureka, representing the AU Special Envoys for the mobilization of international support for Africa’s response to the COVID-19 pandemic stressed that, the pandemic had wiped out the benefits of the economic reforms undertaken over the last two decades in Africa, and is likely to hinder the continent from achieving the SDGs. With regards to the debt moratorium, the Special Envoy stated that only 26 of the 38 eligible countries had applied and managed to create fiscal space of US$ 1.8 billion. He noted that other countries were hesitant to participate in the moratorium due to the stigma around the moratorium, including fear of anticipated negative ratings from international credit rating agencies, denial of future access to capital markets, and excessive cross conditionalities. He further noted that they were working on the extension of the moratorium to the end of 2021.
He commended the IMF for the flow of resources to the continent, noting the US$26 billion received from the IMF since the beginning of the pandemic, and encouraged the Ministers of Finance to seek additional resources from the IMF. He informed the meeting that China was participating in the moratorium through the China Eximbank. He noted the need to clarify whether the funds released by the World Bank were additional resources, or a re-allocation or reprogramming of existing resources.
The Special Envoy appealed to the Finance Ministers to obtain the Special Drawing Rights (SDRs) and consider leveraging it with market sources through a trustworthy institution, such as the African Export Import Bank (Afreximbank). He emphasised that this will enable Africa to have a second source of funding to procure vaccines and support the rebuilding of the private sector and African commercial banks. The Special Envoy stressed the importance of private and commercial creditors' participation in supporting Africa’s recovery.
The Special Envoys recommended that Africa should work together to avoid disorderly default to lenders, negotiate collectively in the bargaining, and ensure Africa's voice is amplified during annual meetings of the IMF/World Bank and other global forums. They highlighted that these measures were important to ensure the credibility of countries and to protect access to capital markets in future. Lastly, the Special Envoys highlighted the importance of strengthening direct relationships between the Finance Ministers and Health Ministers.
Vaccine Finance
Mr. Strive Masiyiwa (AU Envoy for COVID-19 Procurements), highlighted that all African countries are able to procure medical supplies and equipment through the African Medical Supplies Platform (AMSP), and there are no longer shortages. To date, the platform has over 650 suppliers, with Afreximbank facilitating payments between buyers and suppliers. He noted that Afreximbank has also made an overdraft facility available for countries that need short term funding for quick procurement.
He stated that African countries may face challenges acquiring sufficient doses of the COVID-19 Vaccine, noting that the GAVI COVAX initiative, while very good for the continent, may not have the capacity to fully supply Africa with the required volumes, hence the need to access the market to bridge the gap. He stated that an estimated US$10 billion dollars is required for Africa to acquire vaccine doses that will cover 60% of the population, and appealed to the Finance Ministers to commit a portion of anticipated SDRs of about US$1.5 billion, and leverage the amount through the Afreximbank to enable the purchase of vaccines to fill the gap. He warned that failure to secure adequate doses of vaccines for the continent may significantly delay the continent’s recovery from the ravages of the pandemic.
Other Initiatives
H.E. Ken Ofori-Atta, Minister of Finance, Ghana, Chair of Development Committee of the World Bank and co-chair of Global liquidity and financial stability and Dr. Mohamed Maait, Minister of Finance, Arab Republic of Egypt, Co-chair on Discussions Group on External finance, remittances, jobs and inclusive growth provided overviews on work in their respective groups, which were noted by the Ministers.
Afreximbank’s Capitalisation
Professor Benedict Oramah, President of Afreximbank noted that COVID-19 has reminded Africa that lack of capital remained a binding constraint to Africa’s growth and development. He emphasised the value of an alternative financing system for the continent, in addition to foreign funding, stating that the Afreximbank was ready and willing to bridge the vaccine funding gap by leveraging the SDRs from the IMF. He highlighted the Bank’s track record of providing substantial support to African countries during the pandemic and in past crises, noting that Afreximbank approved and disbursed funds of over US$6 billion over the past 6 months, to complement continental and national efforts in addressing immediate needs during the pandemic.
In addition, Prof. Oramah emphasized that increased capitalization of Afreximbank would deepen and expand its effectiveness and enable the Bank to intensify its post-COVID-19 interventions, including through vaccine financing by committing US$5 billion in financing the procurement of vaccines on the continent, and dedicating a US$300 – US$500 million facility to support the development of at least two vaccine manufacturing facilities on the continent. He reiterated that capitalization will enable the acceleration of a private sector-led economic recovery, as well allow expansion of the Bank’s commitment to the AfCFTA Adjustment Facility from US$1 billion to US$3 billion, among other benefits. Further to this, additional capitalisation will help realise new and funding opportunities for African countries.
Recommendations and Way forward
In conclusions, the F15 Ministers:
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Urged for a collective approach, as well as speaking with one voice in Africa’s negotiations with the international community, for additional resources to curtail shocks posed by the pandemic and ensure access to COVID-19 vaccines;
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Endorsed the additional capitalization of Afreximbank, by leveraging US$1.5 billion of the SDRs to support the continent in the procurement of the COVID-19 vaccines, expand Afreximbank’s capacity to support African economies and their private sector, and to rebuild their economies post pandemic, including support the implementation of the AfCFTA;
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Urged the Special Envoys to engage and assess the issue of additional resources from the World Bank, to evaluate if it is only reallocating or reprogramming existing resources, while emphasising the need for additionality;
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Noted that Africa must develop a mechanism to ensure access to adequate vaccines for the continent to complement the Gavi COVAX facility;
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Urged for rigorous action by the Ministers of Finance, to ensure that Africa does not diverge from the rest of the world; and called for the strengthening of the coordination between the Special Envoys, the Ministers of Finance and Ministers of Health in mobilising additional resources.
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Sub-Saharan Africa: A Difficult Road to Recovery
With difficult recovery ahead, policy makers have fewer resources at their disposal as they cautiously lift restrictions and reopen economies. Transformative reforms are urgently needed for rekindling resilient growth, which will be difficult without external support, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook for Sub-Saharan Africa.
“Sub-Saharan Africa is contending with an unprecedented health and economic crisis,” stressed Abebe Aemro Selassie, Director of the IMF’s African Department. “In just a few months, this crisis has jeopardized years of hard-won region’s development gains and upended the lives and livelihoods of millions. The onset of the pandemic was delayed in sub-Saharan Africa, and infection rates have been relatively low compared to other parts of the world. However, the resurgence of new cases in many advanced economies and the specter of repeated outbreaks across the region suggest that the pandemic will likely remain a very real concern for some time to come.
“Nonetheless, amid high economic and social costs, African countries are now cautiously starting to reopen their economies and are looking for policies to restart growth. With the imposition of lockdowns, regional activity dropped sharply during the second quarter of 2020, but with a loosening of containment measures, higher commodity prices, and easing financial conditions, there have been some tentative signs of a recovery in the second half of the year.
“Overall, the region is projected to contract by 3.0 percent in 2020, the worst outlook on record. Tourism-dependent economies faced the largest impact, while commodity exporting countries have also been hit hard. Growth in more diversified economies will slow significantly, but in many cases will still be positive in 2020.
“Looking forward, regional growth is forecast at 3.1 percent in 2021. This is a smaller expansion than expected in much of the rest of the world, partly reflecting sub-Saharan Africa’s relatively limited policy space within which to sustain a fiscal expansion. Key drivers of next year’s growth will include an improvement in exports and commodity prices as the world economy recovers, along with a recovery in both private consumption and investment.
“The current outlook is subject to greater-than-usual uncertainty with regard to the persistence of the COVID-19 shock, the availability of external financial support, and the development of an effective, affordable, and trusted vaccine.”
Against this backdrop, Mr. Selassie pointed to a number of policy priorities going forward.
“Where the pandemic continues to linger, the priority remains to save lives and protect livelihoods. For countries where the pandemic is under greater control, limited resources will mean that policy makers aiming to rekindle their economies will face some difficult choices. Both fiscal and monetary policy will have to balance the need to boost the economy against the need for debt sustainability, external stability, and longer-term credibility. Financial regulation and supervision will have to help crisis-affected banks and firms, without compromising the financial system’s ability to support longer-term growth. And these efforts must also be balanced against the need to maintain social stability while simultaneously preparing the ground for sustained and inclusive growth over the long term.
“Navigating such a complex policy challenge will not be easy and will require continued external support. Indeed, without significant assistance, many countries will struggle to simply maintain macroeconomic stability while meeting the basic needs of their population. In this context, the IMF has moved swiftly and disbursed about US$17 billion so far in 2020 – which is about 12 times more than we typically disburse each year – to help cover a significant portion of the region’s needs and to catalyze additional support from the international community.
“But looking ahead, sub-Saharan Africa faces significant financing gaps. If private financial inflows remain below their pre-crisis levels – and even taking into account existing commitments from international financial institutions and official bilateral creditors – the sub-Saharan Africa could face a gap in the order of $290 billion over 2020-23. This is important, as a higher financing gap could force countries to adopt a more abrupt fiscal adjustment, which in turn would result in a weaker recovery.
“Countries must also play their part – governance reforms will not only improve trust in the rule of law and improve business conditions, but also encourage external support.
“Despite the lingering effects of the crisis, the potential of the region and the resourcefulness of its people remain intact, and tapping this potential will be vital if the region is to find its way back to a path of sustainable and inclusive development. In this context, the need for transformative reforms to promote resilience, lift medium-term growth and create the millions of jobs needed to absorb new entrants into labor markets is more urgent than ever. Priority reforms are in the areas of revenue mobilization, digitalization, trade integration, competition, transparency and governance, and climate-change mitigation.”
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AU Heads of State at the 2nd Mid-Year Coordination Meeting call on political and social actors to respect human rights and the rule of law
Five years after the adoption of the Africa Agenda 2063 and its vision for greater African economic and political integration, and taking into consideration that next year marks three decades since the adoption of the Abuja Treaty establishing the African Economic Community, Heads of State and Government from the Regional Economic Communities (RECs) and the Regional Mechanisms (RMs) together with the African Union Commission, held a virtual meeting on 22nd October 2020 to take stock of the progress made in the area of integration and different aspect of development in the continent. The main objective of this meeting is to enhance effective collaboration between the AU, RECs, RMs, the Member States, and other continental institutions, in line with the principle of subsidiarity.
The coordination meeting which is holding against the backdrop of the COVID19 pandemic was also expected to formalize the framework that will help to strengthen the collaboration between the African Union, the RECs/RMs and the Member States with the view to advance the implementation of the continental development agenda, through a well-established division of labor in accordance with the Heads of State meeting held in Niamey, Niger, in July 2019. These entities are expected to better serve the goal of rapid continental integration and the overall objectives of Agenda 2063. To that effect, the meeting emphasized on the need for continued consultations with Member States on the institutional reform process with the respective RECs playing a facilitating role.
H.E Cyril Matamala Ramaphosa, President of the Republic of South Africa and Chairperson of the African Union (AU) in his opening remarks urged all member states to join the Chairperson of the AU Commission in calling on all political and social actors to reject the use of violence and respect human rights and the rule of law. He noted that, even though COVID19 has tremendously affected the developmental and economic plans of every single country, and caused a set back to the progress in implementing key integration projects, the response to this grave public health emergency has been swift and commendable.
The AU Chair also underlined that the Africa Joint-Continental Strategy for COVID-19 Outbreak has guided the continental effort to mitigate the pandemic. “We established a COVID-19 Response Fund to assist with boosting the capacity of the Africa Centres for Disease Control and Prevention – the Africa CDC – and to assist African countries in combating and containing the spread of the virus,” he stated. Chairperson Ramaphosa further recalled that Special Envoys were appointed to mobilise international support for a comprehensive economic stimulus package for Africa. Adding that, through cooperation at a continental level, the African Task Force for Coronavirus was formed, and that the Partnership for Accelerated Covid-19 Testing campaign was established. The AU Chairperson also highlighted that the innovative Africa Medical Supplies Platform was launched to ensure that all African countries have access to affordable medical equipment, diagnostics and other essential supplies.
President Ramaphosa commended the joint efforts to address the pandemic saying that the continent was able to respond proactively to the COVID-19 threat due to the great work of the AU Commission and the Member States. “As a continent we remain united in our call for equitable access to a COVID-19 vaccine once it is developed.” The Chairperson of the AU further pointed out that, while some Regional Economic Communities have made significant progress in key areas of integration, others have struggled to achieve the goals set out in their respective treaties and conventions and in meeting the milestones set out in the Abuja Treaty. “We welcome the fact that all the Regional Economic Communities affirm the importance of trade in advancing economic integration. Once the African Continental Free Trade Area comes into operation next year, economic integration will be given added momentum,” emphasised the AU Chairperson.
Similarly, the Chairperson of the AU Commission (AUC), Moussa Faki Mahamat, recalled in his opening speech that this meeting is being held in a unique context, deeply marked by the COVID-19 pandemic that has affected the continent negatively. This, he said “has presented a huge challenge for our continent that needs a new dynamics of solidarity, resilience and development.” The AUC Chairperson applauded the outstanding leadership of H.E Cyril Ramaphosa, President of the Republic of South Africa, who in his capacity as Chairperson of the AU has multiplied initiatives and provided guidance with the support from member of the Bureau of the Assembly of the AU and leaders of the RECs, to enable the continent achieve considerable development milestone, despite the obstacles caused by the covid-19 pandemic. “This pandemic, has taught us several lessons, one of them is the strength and efficiency of the coordination…The efficiency in the fight against COVID-19 was attested by the international honorary distinction awarded to Dr John Nkengasong, the director of Africa CDC,” said Mr Moussa Faki Mahamat
Mr Moussa Faki Mahamat underscored the purpose of the coordination meeting, which is to include, in a formalized framework, the relations between the African Union, the RECs/RMs and the Member States so that all these entities cooperate in the development of the continent, without interference or overlap on the skills of each other.
The AUC Chairperson recalled that a general framework for the division of labor has been approved by the Assembly of the Union, at its February 2020 session. “The document on the division of labor between the AU, the RECs/RMs and the Member States which will be presented to you is therefore the result of collective work which was intended to be as detailed as possible, and which adopted a progressive approach, by limiting itself to only three areas, namely Peace and Security, Political Affairs and Trade,” said Mr Moussa Faki Mahamat.
Regarding the African Continental Free Trade Area (AfCFTA), which offers the continent a great opportunity for job creation, industrial linkages, economic diversification and structural transformation, the AUC Chairperson urged Member States to proceed with the ratification of all legal instruments whose entry into force will facilitate the optimal functioning of the AfCFTA. The AUC Chairperson concluded by emphasizing the need to sign the revised Protocol on relations between the African Union and the RECs/RMs, which will take place in December 2020.
The AUC Commissioner for Social Affairs, Amira Elfadil Mohammed Elfadil, then presented the Progress Report on COVID-19 Pandemic in Africa for adoption by the Heads of States. The meeting commended Member States that have made pledges to support the AU COVID-19 Response Fund and the Africa CDC in an effort to pull together continental resources to support the AU fight against the pandemic. Other development reports were also tabled for consideration and adoption by the Heads of State.
Worth noting that, the African Union (AU) Reforms proposed that the Mid-Year Extra-Ordinary AU Summit be converted into a Coordination Meeting between the AU and the Regional Economic Communities (RECs) to better coordinate the African integration agenda as well as to re-enforce the position of the RECs as the building blocks of the Continental integration process. The Mid-Year Coordination Meeting is the principal forum for the AU, RECs, and RMs to harmonise their work and coordinate implementation of the continental integration agenda.
The virtual meeting was attended by Members of the Bureau of the Assembly of the AU and the Chairpersons of the RECs; the African Union Commission (AUC); Chairpersons of the RECs; Regional Mechanisms; the Chief Executives of the African Union Development Agency (AUDA/NEPAD); UN Economic Commission for Africa (UNECA); African Development Bank (AfDB), the President of Niger as the Champion of the African Continental Free Trade Area (AfCFTA) Agreement and the Secretary-General of the AfCFTA.
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AfCFTA will address Africa’s investment challenges, says ECA’s Karingi at AIM2020
Regional Investment Agreements and Investment Drivers in Africa: Shaping Global Investment Strategies through the African Continental Free Trade Area
The African Continental Free Trade Area (AfCFTA) is a game changer for investment on the continent which in recent years has seen foreign direct investment continuing to weaken, Economic Commission of Africa’s (ECA) Regional Integration and Trade Division Director, Stephen Karingi said Thursday.
The ECA Director said this while presenting for discussion reports by the ECA on investment issues during the Annual Investment Meeting (AIM2020) Africa regional focused session advancing ideas for action on the AfCFTA.
“African economies continue to punch below their weight in terms of attracting foreign direct investment. Moreover, FDI to the continent continues to weaken. While FDI inflows reached US$56.6 billion in 2015, they had fallen to less than US$42 billion by 2017. This figure represents less than three percent of the global investment flows,” he said.
Investment flows to all African regions fell in 2017 to different degrees. This has largely been attributed to the end of the commodity super-cycle. Many African economies remain dependent on exports of primary commodities which are particularly prone to shocks.
“Foreign direct investment is a catalyst of economic growth, structural transformation and regional integration on the continent. African economies need FDI as a means to build productive assets, a vector of positive spill over-effects and an additional and relatively stable source of development finance,” said the ECA Director.
Mr. Karingi said African countries can surmount a number of policy and regulatory challenges through the AfCFTA to attract greater investment by linking individual chapters of the agreement and achieving coherence on the various policy areas they cover; harmonizing heterogeneous approaches to investment regulation in Africa; clarify the relationship and precedence of the AfCFTA Investment Protocol and IIAs; pool resources to strengthen domestic and regional institutions and the business climate.
His presentation summarized the main elements and key findings of two ECA publications on investment and regional integration in Africa which came out earlier this year. These are the “Drivers for boosting intra-African investment flows towards Africa’s transformation” and “Linkages between double taxation treaties and bilateral investment treaties.”
Mr. Karingi said African regional integration has gained momentum with the current efforts to establish the AfCFTA.
“Intra-African investments in particular can be conducive to structural transformation and regional integration in that they can underpin African trade and its industrial contents, enable economies of scale and can facilitate entry into regional and global value chains,” he said.
Mr. Karingi added that the knowledge generated by the ECA enables member States to become informed and position themselves to review, negotiate, renegotiate or terminate investment agreements with careful consideration of the legal, policy, economic and social implications of such agreements to ensure that a balance is struck between protecting investment and preserving policy space for development objectives; and contemplate opportunities for expanding intra-African investment in the context of the AfCFTA.
The Africa Regional Focus Session engaged with the Guinean Minister of Investments and Public-Private Partnerships, Gabriel Curtis, and Yofi Grant, the Chief Executive Officer of the Ghana Investment Promotion Centre on critical issues to shape investment strategies through the AfCFTA.
Mr. Curtis said he sees digitalization as a major opportunity of the AFCFTA with the advancement of an e-commerce protocol to support digital and mobile trade.
“E-barriers are even more cumbersome than barriers to physical trade because they are technology driven and can be addressed through the AfCFTA e-commerce protocol,” he said.
Mr. Grant said reforming business practices and regulations are key actions to support the private sector in realizing the benefits of the AfCFTA.
The Africa Regional Focus Session, which was hosted by the ECA, was held under the theme: Regional Investment Agreements and Investment Drivers in Africa: Shaping Global Investment Strategies through the African Continental Free Trade Area.
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AfCFTA will harmonize investment rules, create level-playing field, says ECA Director
The African Continental Free Trade Area is going to harmonize investment rules between its member countries and the rest of the world in order to create a level playing field after it starts trading next year, said Stephen Karingi of the Economic Commission for Africa.
The investment protocol to replace the rules would help to attract foreign direct investors to come and establish businesses in Africa, Mr. Karingi, Director for Regional Integration at the ECA, made the statement recently at a Nordic-African Business Webcast.
According to him, there are currently multiple bilateral treaties between African countries and bilateral investment treaties between some African countries and the rest of the world but negotiations to harmonize them would start after trading begins on 1 Jan.2021 and be concluded very quickly.
“The AfCFTA is a very deep and broad agreement that is not just focusing on trade in goods and trade in services but it is looking at those issues that would make this regional integration functional through competition policy, intellectual property rights, investment protocol and also e-commerce,” he said.
The agreement entered into force on 30 May 2018, having been ratified by the required 22 countries. Currently, 54 countries have signed, and 30 countries have ratified the AfCFTA. The AfCFTA provides the opportunity for Africa to create the world's largest free trade area, with the potential to unite more than 1.2 billion people in a $2.5 trillion economic bloc and usher in a new era of development.
Apart from exchanging views on AfCFTA, participants at the forum who included business persons, experts, politicians and policymakers from Africa and the Nordic countries discussed issues ranging from agribusiness in Africa, strengthening the business climate on the continent and how businesses will operate in a post-COVID-19 environment.
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Tax hikes and changes proposed for South Africa – including digital products and services (BusinessTech)
South Africa is facing a significant shortfall in revenue collection due to the coronavirus lockdown and other economic factors, says the Parliamentary Budget Office (PBO). In a presentation ahead of finance minister Tito Mboweni’s Medium-Term Budget Policy Statement (MTBPS) next week, the PBO said the cost-of-revenue collection ratio continued to decline from 0.97 in 2014/15 to 0.78 in 2019/2020. “Covid-19 economic conditions together with continued digitalisation of business activities and continued base erosion and profit shifting will negatively affect all of these tax revenue sources,” it said.
Experts urge govt to prioritise informal-trading-friendly policy (Engineering News)
With 60% of South Africa’s economic activity happening in the informal sector, national, provincial and local government alike need to realise the importance of empowering these entrepreneurs to contribute more to the gross domestic product of cities, University of the Witwatersrand associate Professor Margot Rubin said on October 20. Rubin noted that challenges facing entrepreneurship in South Africa include inconsistent policy regimes that have been in place for a long time.
South African businesses: Key to success may be close to home (The Africa Report)
A string of high-profile failures in Western markets has highlighted the brighter prospects that lie in continental expansion for many South African corporates. New Frontier’s ill-fated investment in the UK is just one recent example of South African companies betting big on markets outside Africa, only to see the value of these foreign operations nosedive. Beyond banking and insurance, examples of successful expansion into Africa abound. MTN’s transformation into a multinational behemoth owes much to its early push into Nigeria, in 2001. Shoprite launched its first foreign operation, in Namibia, in 1990, and today is Africa’s largest food retailer, with a presence in 14 countries outside South Africa.
Empowering Ghanaian Businesses to Harness the benefits of the AfCFTA under the framework of the NEDS (GEPA Exporters Portal)
Stakeholders in the public and private sector have been engaged in vibrant discussions bordering on the theme for the 2-day National Conference on the Implementation of the AfCFTA Agreement at the Accra International Conference Centre from October 20-21, 2020, themed “Empowering Ghanaian Businesses to harness the benefits of the African Continental Free Trade Agreement under the framework of the National Export Development Strategy”.
pdf Ghana National Export Development Strategy (NEDS): Overview (11.25 MB)
Rwanda unemployment rate falls to 15 per cent (The New Times)
Unemployment rate fell to 15 per cent in the last three months from May to August, the National Institute of Statistics of Rwanda (NISR) said in its latest labour force survey released on Wednesday. The third quarter report shows unemployment fell sharply from the historic 22.1 per cent that was recorded in May due to the Covid-19 pandemic, to 15 per cent at the end of August.
Museveni Commissions Ambitious Roads Projects in Northern Uganda to Spur Trade (ChimpReports)
President Museveni has commissioned multibillion road works for the construction of the 100 km Rwekunyu-Apac-Lira-Puranga road with an original contract price of Shs 337,526,153,350 in a 36 months projection duration. Once complete, the road is expected to improve access to markets, improve access to social services, enhance increased inter-regional trade volumes and reduce transport costs as well as travel time in the fast-growing northern part of Uganda
South Sudan’s currency loses more value amid plans to change it (The East African)
South Sudan’s currency drastically depreciated against the dollar last week, just after the government announced plans to change it, an indication that more currency hoarders had surrendered the now seemingly old notes. On October 9, the country’s Council of Ministers decided to change the national currency in an attempt to mop up hoarded cash it claims is to blame for the decline of the economy, according to the Information Minister. Although details of how the new currency will be rolled out have not been announced yet, the pound immediately depreciated against the dollar.
Uhuru tariff cut dims Kenya Power revenue by Sh4.8bn (Business Daily)
Kenya Power chairman Mahboub Mohamed said the revenue drop from the unplanned tariff review forced the company to take up short-term loans to cover for the resultant financial hole. “The review dimmed the company’s revenue prospects by Sh4.8 billion of the total projected revenues in the tariff application, thereby necessitating stop-gap measures in short-term borrowings to enable the company meet its financial obligations,” said Mr Mohamed.
Fitch Forecasts 72.8% Debt-To-GDP By End Of 2020 (Modern Ghana)
In its latest ratings report on Ghana, Fitch stated, “We forecast debt at 72.8% of GDP by end-2020, which includes the outstanding stock of GH¢7.6 billion (2.1% of GDP) in the Energy Sector Levy Act bonds. We expect debt to continue rising through 2022, although at a slower pace. “We expect gross reserves to end 2020 at US$6.6 billion, broadly the same as in December 2019, as some foreign-exchange intervention by the BoG to support the currency is offset by new inflow from debt and 4Q cocoa receipts. The import compression will slightly improve reserve coverage to 2.8 months of current external payments, from 2.7 in 2019.”
Mozambique: Sharp Fall in Transit Trade in Maputo Port (allAfrica.com)
The port of Maputo recorded a drop of 13 per cent in the volume of cargo in transit handled in the January-August period this year, compared with the same months in 2019. In the first eight months of 2019, the port handled 8.1 million tonnes of cargo in transit, compared with only seven million tonnes in the same period this year. For businesses in much of South Africa, it is much quicker and more convenient to use Maputo than the South African ports of Durban or Richards Bay. But South African trade went into sharp decline when the Pretoria government imposed one of the most severe lockdowns in the world, in an attempt to halt the spread of the coronavirus pandemic.
Zimbabwean President sets out new legislative agenda to spur economic growth (China.org.cn)
Zimbabwean President Emmerson Mnangagwa on Thursday set out the legislative agenda for the Third Session of the Ninth Parliament of Zimbabwe, which mainly focuses on further driving economic growth. In his virtual address to the joint sitting of both the National Assembly and Senate, Mnangagwa exhorted Parliament to expedite some of the Bills to accelerate economic growth. He said it was encouraging that despite the impact of COVID-19, the country’s exports grew by 4.9 percent to 1.96 billion U.S. dollars in the first half of 2020, from 1.86 billion U.S. dollars recorded during the same period last year. Imports declined by 5.9 percent from 1.96 billion dollars in the first half of last year to 1.84 billion dollars this year..
Burkina Faso’s AfCFTA national strategy implementation meeting holds next week (UNECA)
Government officials and experts in Burkina Faso are meeting next weekto develop the country’s strategy for the implementation of the African Continental Free Trade Area agreement (AfCFTA) ahead of its commencement next year. Besides sensitizing participants on the theme of AfCFTA, the meeting will also hold discussions on the risks and opportunities associated with the implementation of the agreement for the country and the implications for stakeholders. The two-day meeting in Ouagadougou from 26 Oct. to 27 Oct. is being organized by the country’s trade and industry ministry in collaboration with international partners including the United Nations Economic Commission for Africa, the International Trade Center and the African Union Commission.
Ghana-Nigeria trade relations face further tensions (Ghanaweb)
The ongoing public demonstrations in Lagos, the commercial capital of Nigeria and the fatalities that occurred as a result of the use of live ammunition on protestors at the Lekki toll booth on Tuesday, are threatening to further exacerbate the existing tensions between Nigeria and Ghana, which have been created by an ongoing dispute over the status of NIgerian retail traders in Accra and Kumasi, as well as the fate of their shops. This is because Ghanaian president Nana Akufo Addo is the incumbent chairman of the Economic Community of West African States, ECOWAS, and he is therefore coming under increasing pressure at home to publicly criticize the intolerant stance taken by the government of Nigerian president Muhammudu Buhari which led to several confirmed deaths in Lagos on Tuesday.
2nd African Union Mid-Year Coordination Meeting
Meeting calls on political and social actors to respect human rights and the rule of law
Heads of State and Government from the Regional Economic Communities (RECs) and the Regional Mechanisms (RMs) together with the African Union Commission, held a virtual meeting on 22nd October 2020 to take stock of the progress made in the area of integration and different aspect of development in the continent. The coordination meeting was expected to formalize the framework that will help to strengthen the collaboration between the African Union, the RECs / RMs and the Member States with the view to advance the implementation of the continental development agenda, through a well-established division of labor in accordance with the Heads of State meeting held in Niamey, Niger, in July 2019. These entities are expected to better serve the goal of rapid continental integration and the overall objectives of Agenda 2063.
Closing Remarks by African Union Chairperson, His Excellency President Cyril Ramaphosa (The Presidency)
“The report on the status of regional integration and the insightful perspectives provided by Chairpersons of the RECs show that commendable progress has been made in the integration process, and that implementation of the AfCFTA is a priority. With the finish line now in sight, we must make this final push; and ensure all outstanding issues on Phases 1 and 2 are finalised in order for us to start trading by the 1st of January 2021.... It is imperative that we strengthen the RECs as building-blocks for Africa’s continental integration. Intensified coordination and harmonisation will bring us closer to the realisation of the African Economic Community in line with the principles of the Abuja Treaty.”
Africa’s numerous currencies a challenge to AfCFTA implementation – Akufo Addo (Ghanaweb)
President Nana Addo Dankwa Akufo-Addo has said Africa playing host to several currencies impedes the effective implementation of the Africa Continental Free Trade Area (AfCFTA). Akufo-Addo believes a single currency market will aid in the smooth running of the AfCFTA. He made this known in a speech read on his behalf by the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey. “Africa has more than 40 currencies, which are characterised by frequent volatility, illiquidity and rarely traded status on the global financial market, which makes trading among African countries difficult. This constitutes one of the biggest barriers to the effective implementation of the AfCFTA and the development of the continent”.
Egypt’s Sisi: Coronavirus consequences prompted African leaders to bolster joint cooperation (Ahram Online)
President Abdel Fattah El Sisi affirmed on Thursday that despite the coronavirus repercussions on the entire international community, especially African countries, those challenges have prompted African leaders to strengthen joint cooperation with a view to harnessing energies, and finding effective and innovative solutions that help overcome the current difficult circumstances. Delivering a speech via video conferencing, Sisi said Egypt has been keen to be at the forefront of African countries providing medical aid and lab equipment, and transferring technical expertise to support its brotherly African states.
President urges African leaders to ratify investment bank legal instrument (MyJoyOnline)
President Nana Addo Dankwa Akufo-Addo has urged African Union Member States, who have not signed and ratified the legal instrument for the African Investment Bank and Monetary Fund, to expedite the process of accession. He encouraged them to ensure that efforts were coordinated leading to the operationalisation of the African Monetary Institute, the establishment of the Pan African Stock Exchange, and the setting up of African Payment and Settlement System in 2020. “Since the adoption of the protocols for the establishment of the African Investment Bank and African Monetary Fund in 2009 and 2014, respectively, the signatures and ratifications registered have not reached the requisite number to enter into force,” he said.
OUTCOME
Africa
Trade Experts Call for Implementation of AfCFTA (THISDAYLIVE)
African trade experts have called for the swift implementation of the African Continental Free Trade Area (AfCFTA) to lift the continent out of an economic downturn caused by COVID-19. Speaking at a trade forum in Dakar, Senegal, AfCFTA Secretary-General Wamkele Mene, was quoted in a statement to have said the pandemic had, for the first time in 25 years, caused a contraction of GDP of between two to five per cent in sub-Saharan Africa. “This decline will manifest itself in reduced exports and loss of employment, among other challenges,” Mene said.
AfCFTA is key to post-COVID recovery – Islamic Trade Finance (The Africa Report)
Implementing the African Continental Free Trade Area (AfCFTA) agreement is fundamental to the post-pandemic economic recovery, Hani Salem Sonbol, CEO of the International Islamic Trade Finance Corporation (ITFC), tells The Africa Report. The agreement is “one of the solutions for Africa,” says Sonbol, speaking from Jeddah in Saudi Arabia. The ITFC is working closely to help launch the accord early in 2021, he adds.
AfCFTA, technology can help Africa leapfrog development, affect world, say experts (Businessamlive)
Trade and fiscal policy experts have posited that Africa can use digital technology and the African Continental Free Trade Agreement (AfCFTA) to leapfrog development and also affect the world’s economy, especially China and the United States. This was the broad context of discussion at the fourth annual Babacar Ndiaye lecture. “The AfCFTA is a big move for Africa to take its destiny in its hands. The continent sees it as something it has to do to take itself out of poverty and become a global power. Africa with all resources divided into 55 countries, 84,000 kilometres of borders. The colonial masters made colonies not trade, with themselves. They couldn’t use the powers they have to create a value chain globally and develop a trade advantage. This is what the AfCFTA is here for,” the Afreximbank president said.
AfCFTA will harmonize investment rules, create level-playing field, says ECA Director (UNECA)
The African Continental Free Trade Area is going to harmonize investment rules between its member countries and the rest of the world in order to create a level playing field after it starts trading next year, said Stephen Karingi of the Economic Commission for Africa. The investment protocol to replace the rules would help to attract foreign direct investors to come and establish businesses in Africa, Mr. Karingi, Director for Regional Integration at the ECA, made the statement recently at a Nordic-African Business Webcast.
The virtual United Nations World Data Forum ended Wednesday with the Economic Commission for Africa’s (ECA) Director for the Africa Statistics Centre, Oliver Chinganya, stressing the importance of current, reliable and trusted data to ensure Africa leaves no one behind as it implements the 2030 Agenda for Sustainable Development and Agenda 2063, the continent’s blueprint for development. Speaking on a panel discussing the theme; Balancing Data and Data Protection: Learning from African Experiences, Mr. Chinganya said building trust in a field littered with many players is difficult but critical if it is to be used to unlock Africa’s full potential through evidence-based policymaking that will change people’s lives at the grassroots level.
IOM Launches Continental Strategy on Migration for Africa 2020-2024 (EAC)
The International Organization for Migration (IOM) has launched the first Continental Strategy on Migration for Africa for the period 2020-2024. The Strategy provides an excellent opportunity to further develop synergies for more robust migration dialogues and outcomes across regions and with all relevant partners. The IOM’s Continental Strategy was conceived to reinforce commitment towards safe, orderly and regular migration within and outside the African continent. Through multi-stakeholder engagement, it is expected to give impetus for adaptive measures for better migration management and scale up the positive impacts, opportunities and benefits of migration for the whole of society.
SADC develops Regional Migration Policy Framework
Southern African Development Community (SADC) is in the process of developing a Regional Migration Policy Framework in order to promote regular, safe and orderly migration. The Migration Policy Framework will outline key strategies and actions for regional response, as well as the roles and responsibilities of various actors in migration governance and also assist SADC Member States to align to Global, Continental and Regional frameworks on migration. Once in operation the Regional Migration Policy Framework will facilitate and promote the development and implementation of National Migration Policies as well as tailored National Action Plans.
Rising aflatoxins in food import worry East Africa states (Africa Science News)
The East Africa partner states have expressed fear that there is increasing levels of aflatoxins in the foodstuff imported into the region. “The fight against aflatoxin can be won by putting in place the necessary legislation, regulations, standards, coordination, infrastructure, capacity development, and innovation,” he said, noting that efforts are being put in place to promote safe trade through the construction of Busia Jumuiya market,” said Kevit Subash Desai. EABC Executive Director, Dr. Peter Mathuki said Aflatoxin in foodstuffs, as well as COVID-19 pandemic, have caused a heavy toll on cash flow among East African Member states, frustrating normal volumes of business exports across East Africa countries.
International
Sub-Saharan Africa: A Difficult Road to Recovery (IMF)
With difficult recovery ahead, policy makers have fewer resources at their disposal as they cautiously lift restrictions and reopen economies. Transformative reforms are urgently needed for rekindling resilient growth, which will be difficult without external support, the International Monetary Fund (IMF) said in its latest Regional Economic Outlook for Sub-Saharan Africa.
pdf Regional Economic Outlook Sub-Saharan Africa - October 2020 (2.44 MB)
African countries are now cautiously starting to reopen their economies and are looking for policies to restart growth. With the imposition of lockdowns, regional activity dropped sharply during the second quarter of 2020, but with a loosening of containment measures, higher commodity prices, and easing financial conditions, there have been some tentative signs of a recovery in the second half of the year. “Overall, the region is projected to contract by 3.0 percent in 2020, the worst outlook on record. Tourism-dependent economies faced the largest impact, while commodity exporting countries have also been hit hard. Growth in more diversified economies will slow significantly, but in many cases will still be positive in 2020.
Development finance institutions pledge to sustain COVID-19 mitigation, livelihood recovery (AfDB)
Multilateral development finance institutions on Wednesday pledged to continue to collaborate in their efforts to mitigate the adverse impact of the COVID-19 pandemic and accelerate the recovery of economies and livelihoods. At an extraordinary virtual meeting to discuss the impact of their responses to the pandemic and the worsening debt situation, the organizations said that sustaining their joint efforts would protect livelihoods, especially among vulnerable populations, preserve macroeconomic stability and promote a stronger private sector role after COVID-19.
Financiers reaffirm commitment to Africa’s private sector (New Vision)
Closing the infrastructure gap in Africa will take collaboration and sustained financing, development agencies say. This was during an online panel event last week to discuss the role of development finance in the post-Covid-19 environment and investing in Africa’s future. The panel was put together by the US International Development Finance Corporation (DFC) and the Atlantic Council. The continent’s largest development finance institutions have emphasized 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.
US economist tips entrepreneurs on continental, global trade (Nation)
An economist in the US government has challenged African women to advocate for inclusion of gender responsive trade mechanisms under the African Continental Free Trade Area (AfCFTA) agreement. International economist and advisor at the US Department of Agriculture, Ms Pauline Simmons said in an October 14, virtual meeting that women should hold their governments accountable in implementing AfCFTA commitments. “Timely and accurate information is important to identify market opportunities, reduce risks and maximise profits. You cannot trade if you don’t have data,” she said. “You have to work with your governments to ensure you have data that informs of available demand,” she added.
Africa’s WTO Moment | by Kingsley Chiedu Moghalu (Project Syndicate)
If she is chosen to head the World Trade Organization, former Nigerian finance minister Ngozi Okonjo-Iweala, an experienced development economist, would make a broken institution relevant again. She has the gravitas to build bridges between the US and China, on the one hand, and between the WTO and Africa, on the other. Despite being widely regarded as the world’s next frontier for investment and development, Africa is essentially an onlooker in the world trading system, accounting for a meager 2% of global exports. Although the continent is a growing market for the products of globalization, it does not benefit much from world trade, owing to its limited presence in globalized value chains. Instead, Africa trades mainly in agricultural goods and natural resources, whereas most world trade is in manufacturing and services.
There’s still time to change EU-Africa agenda, say activists (EURACTIV)
As policy-makers in Brussels and Addis Ababa plough ahead with plans for what is billed as an ambitious ‘strategic partnership’ between the EU and Africa, civil society groups complain that they have been repeatedly shut out from having any influence over EU-African relations. “We have never been asked to participate (in AU-EU summits) and we don’t know the agendas,” Million Belay, co-ordinator of the Alliance for Food Sovereignty in Africa, told EURACTIV. That needs to change says Belay and fellow civil society leaders, who also insist African governments need to take more ownership of the ‘strategic partnership’, because there is a prevailing sense that the blueprint has been drawn up by Europe for Africa.
Focus on migrant returns threatens AU-EU negotiations (ISS Africa)
Last month the European Commission unveiled its New Pact on Migration and Asylum (New Pact). The pact’s goals of rebuilding trust and developing workable compromises within the European Union’s (EU) 27 states could well be achieved at the expense of external partnerships. The New Pact says all available tools should be used to enforce more returns. These include offering an additional 10% in development assistance to countries that cooperate and applying restrictive visa measures for those who don’t. The African Union (AU) and most African countries have resisted intensified returns policies, maintaining that returns must be voluntary. The overwhelming majority of African migration is intra-continental and the continent is working towards free movement, free trade and regional integration.
NDF joins the Sustainable Energy Fund for Africa to accelerate the green transition in Africa (Nordic Development Fund)
This week, NDF joined the Sustainable Energy Fund for Africa (SEFA). SEFA is a special fund designed to catalyse private sector investments in early-stage renewable energy and energy efficiency markets to accelerate the transition to more inclusive and green growth in Africa. SEFA is also a delivery vehicle for the African Development Bank’s (AfDB) New Deal on Energy for Africa (NDEA). NDF’s total contribution to SEFA is EUR 10 million.
Members cite role of trade facilitation in ensuring access to goods to tackle COVID-19 (WTO)
Several members made presentations during the committee meeting regarding initiatives they have taken to facilitate trade during the COVID-19 pandemic. The United States, Brazil, Colombia and Japan issued a joint call for accelerated implementation of the TFA, arguing that cross-border trade is a critical channel for getting essential products to those who need them. The committee also reviewed more than 70 notifications from members outlining steps taken or planned to implement provisions of the TFA.
Secretary-General urges support for poorest countries (The Commonwealth)
The Commonwealth Secretary-General has called for “swift, coordinated, multilateral action” to support the world’s poorest nations, which are now even more vulnerable in the face of the COVID-19 pandemic. “While some progress has been made in poverty eradication, the levels of poverty remain alarmingly high, with poverty gaps closing only slowly.... We need swift and coordinated multilateral action to address the challenges arising from the pandemic, and their effects in compounding existing vulnerabilities in the world’s poorest countries.”
Women have a vital role to play in post-pandemic recovery (ITC)
There are nine actions that policymakers, corporations and the global community can take to ensure that ‘building back better’ after the COVID-19 pandemic unlocks women entrepreneurship and creates more equal and sustainable societies.
COVID-19 should be the accelerator for e-health in the least developed countries (Trade 4 Dev News)
Healthcare is being transformed the world over, instigated by the fourth industrial revolution and hastened by a common, invisible and deadly enemy – COVID-19. E-health can bring innovation to the healthcare sectors of LDCs, which are mostly low-resource environments with inadequate healthcare infrastructure and services, as well as poor access to information. The way forward is anchored in a digital foundation driven by governments to level the playing field by ensuring uniform access to technologies.
The OPEC Fund and West African Development Bank (BOAD) boost cooperation in Western Africa (Africanews)
The OPEC Fund for International Development (the OPEC Fund) and the West African Development Bank (BOAD) have signed a Framework Agreement to further strengthen their development cooperation in the member countries of the Western African Economic and Monetary Union (WAEMU): Benin, Burkina Faso, Côte-d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo. The agreement focuses on increased engagement and knowledge-sharing between the two institutions and ensures enhanced cooperation in co-financing public and private sector projects, as well as supporting international trade and regional integration.
Impact of COVID-19 on Commodity Markets Heaviest on Energy Prices; Lower Oil Demand Likely to Persist Beyond 2021 (World Bank)
While metal and agricultural commodities have recouped their losses from the COVID-19 pandemic and are expected to make modest gains in 2021, energy prices, despite some recovery, are expected to stabilize below pre-pandemic levels next year, the World Bank said. Oil prices fell dramatically in the early stages of COVID-19 and have only partially regained pre-pandemic price levels, while metal prices declined relatively modestly and have returned to levels that preceded the shock, according to the semi-annual Commodity Markets Outlook report. Agriculture prices were relatively unaffected by the pandemic, but the number of people at risk of food insecurity has risen as a result of the broader effects of the global recession.
UK and Japan sign free trade agreement (GOV.UK)
The UK has officially signed an economic partnership agreement with Japan, marking an historic moment, as the UK’s first major trade deal as an independent trading nation and offering a glimpse of Global Britain’s potential. The deal brings together two of the world’s most technologically advanced nations, placing the UK at the forefront of shaping new global standards on digital trade.
Related News
African Union 2nd Mid-Year Coordination Meeting closes with a resolve to strengthen collaboration in line with the principle of subsidiarity
Meeting ends with resolve to strengthen collaboration between the AU, RECs, RMs, the Member States, and other continental institutions
The virtual meeting that took place on 22nd October 2020 under the chairmanship of H.E Cyril Ramaphosa, President of the Republic of South Africa and Chairperson of the African Union (AU), concluded its work with a strong determination for the Heads of State and Government of the member countries to work hand in gloves so as to effectively accelerate the implementation of Agenda 2063. The African union 2nd Mid-Year Coordination meeting extensively discussed a range of issues on regional integration, division of labour and the continental strategy to overcome COVID-19 among others.
In his closing remarks, the Chair of the Union stated that the pandemic has shown a great deal of resilience and countries that have experienced a decline in infections have also encountered surges in infections that have made them to revisit the lockdown measures. “We must try to avoid that scenario in Africa….We remain optimistic the momentum will not be lost and we will ensure that all outstanding work is completed,” President Cyril Ramaphosa emphasized.
The Chair of the AU further noted that, the report on the status of regional integration and the insightful perspectives provided by Chairpersons of the RECs show that commendable progress has been made in the integration process, and that implementation of the AfCFTA is a priority. “With the finish line now in sight, we must make this final push; and ensure all outstanding issues on Phases 1 and 2 are finalised in order for us to start trading by the 1st of January 2021,” he said.
On the Division of Labour, the Heads of State welcome progress made in the development of the detailed proposal on the Division of Labour by the AUC, the AUDA-NEPAD, AfCFTA Secretariat, the APRM, the RECs and RMs and Member States in the areas of trade, political affairs and peace and security.
“We look forward to the finalisation of the remaining areas concerning the Division of Labour for consideration at the latest by the 35th Ordinary Session of the AU Assembly in February 2022,” underlined the Chairperson of the AU, stressing that this will give the relevant stakeholders enough time to consult and to come back with a comprehensive document which has the buy-in of everyone. “In this context, we would have fulfilled the aspirations set out in the institutional reform process,” reiterated the Chair of the Union.
During the meeting, the Heads of State also considered and noted with appreciation the report of H.E. Nana Akufo Addo, the President of the Republic of Ghana and the Champion of the AU Financial Institutions. According to President Ramaphosa, the establishment of the AU Financial Institutions will go a long way in fulfilling the objectives of the Abuja Treaty and further deepen the continental economic integration project.
“It is imperative that we strengthen the RECs as building-blocks for Africa’s continental integration”. Underscored the Chairperson of the African Union, adding that, “Intensified coordination and harmonisation will bring us closer to the realisation of the African Economic Community in line with the principles of the Abuja Treaty.”
President Ramaphosa proceeded by thanking the preparations undertaken under the guidance of the Executive Council and the commendable work of the AU Commission. “We have been able to have a productive Mid-Year Coordination Meeting,” concluded the AU Chairperson with satisfaction.
Related News
tralac Daily News
National
Parliament urges Trade and Industry to accelerate Coronavirus COVID-19-related price abuse investigations (South African Government)
The Portfolio Committee on Trade and Industry heard today about the high volume of complaints that the Department of Trade and Industry received within a period of three months during the lockdown on the inflation and abuse of prices on a variety of products that include food, fresh produce and products that are used to curb the spread of Covid-19. Briefing the committee, the Department of Trade and Industry’s Deputy Director-General, Dr Molefe Pule, told the committee that the department received a total of 1 700 complaints within a period of three months this year, a figure he said the department never received before even in a year.
PRESENTATIONS
pdf Competition Commission: Update on COVID-19 Cases and Investigations (608 KB)
pdf Competition Tribunal Presentation (720 KB)
pdf Update on the Implementation of the Competition Amendment Act, 2018 (201 KB)
Economic Reconstruction and Recovery Plan debate: Read Cyril Ramaphosa’s full speech (IOL)
The Economic Reconstruction and Recovery Plan outlines immediate actions to rebuild the economy and to provide jobs and relief to the South African people. These actions include an aggressive infrastructure programme, far-reaching reforms to increase our competitiveness and inclusiveness, measures to catalyse industrialisation, relief for vulnerable households and individuals, and a public investment in employment programmes.
Uber and Bolt warn over pricing rules planned for South Africa (BusinessTech)
E-hailing companies Uber and Bolt have both raised concerns around government’s planned introduction of the Economic Regulation of Transport Bill. The bill broadly aims to introduce further controls around public transport in the country, including regulations around safety, competition and transformation. While Uber and Bolt have generally welcomed the draft legislation, both companies have raised red flags around a section of the bill which could be interpreted as introducing pricing controls for e-hailing in South Africa. The bill states that ‘every regulated entity is subject to price regulation in accordance with a price control determined by the regulator’.
Kenya to borrow Sh600billion from domestic market (Nation)
Continuing impact of Covid-19 on the economy has forced the National Treasury to review government’s spending for this financial year revising the figures upwards to a tune of Sh128 billion. Treasury also announced it would increase its total financing from an earlier planned Sh841 billion in the budget to Sh1,001.8 trillion. To raise the extra money, the government will be seeking about Sh600 billion in domestic financing, up from the Sh494 billion that had been planned for.
Technology Will Help Us Navigate COVID-19 Recovery & Beyond -President Kagame (KT Press)
President Paul Kagame has emphasised Rwanda’s ambition to put technology at the centre of its development plans, pointing out that it will even be more vital in helping the country recover from the effects of the New Coronavirus and for the future ambitions. President Kagame made the observation on Wednesday while participating in the World Economic Forum (WEF) Great Reset Dialogue under the theme “Harnessing the Fourth Industrial Revolution”. President Kagame pointed out some of the partnerships Rwanda has built with global tech companies. “Over the past 20 years, Rwanda has continued to prioritize investment in technology, broadband, and digital skills,” he said.
Uganda, DR Congo decide to make roads, not war (The East African)
After two-and-a-half decades of testy relations, including an armed invasion in 1997 that contributed to one of the world’s deadliest conflicts since World War II, Uganda is betting that infrastructure investments and shared economic benefits will build better relations and long-term stability. Uganda’s cabinet recently approved plans to build three roads inside the DRC, continuing the country’s recent strategy of growing its influence in the Great Lakes region riding on infrastructure diplomacy.
Ugandan court suspends judgement outlawing cross-border lending (The East African)
Ugandan High Court has suspended the enforcement of a ruling that banned foreign banks from participating in syndicated loans in the Ugandan banking sector, pending the hearing and determination of the matter. The ruling effectively outlawed cross-border lending in the country, and thwarted efforts by other foreign banks seeking to make inroads into the country for lending purposes. The development could also have put on freeze an estimated $130 million worth of intra-EAC lending and undermine the on-going regional financial integration process.
Mnangagwa calls for private sector-govt dialogue (Bulawayo24 News)
President Emmerson Mnangagwa yesterday called on private players in the economy to dialogue with his government to find ways of improving the country’s ease of-doing business and attract direct foreign investment. This comes amid calls from stakeholders for Mnangagwa to dialogue with various sectors, including political leaders like MDC Alliance president Nelson Chamisa, to address the country’s political and economic challenges. This also comes as the World Trade Organisation (WTO) recently commended Zimbabwe’s efforts in stabilising the country’s volatile exchange rate and runaway inflation through the introduction of the weekly forex auction system and its active participation in trade negotiations, including the African Continental Free Trade Area (AfCFTA), the Tripartite Free Trade Area between Comesa, EAC and Sadc, in addition to concluding an EPA with the European Union.
Government seeks Shs6 trillion to meet budget shortfall (Daily Monitor)
Government is seeking a Shs6.2 trillion loan to finance a deficit in the Shs45.5 trillion budget of the current financial year. While tabling the request before Parliament yesterday, the State Minister of Finance for Planning, Mr David Bahati, said out of the Shs6.2 trillion, Shs4 trillion will be borrowed from the domestic market while the rest from the International Monetary Fund. In May, the government revealed that the Shs45.5trillion budget would be funded with Shs32.97 trillion raised locally and Shs12.52 trillion from external sources such as loans and grants. However, Mr Bahati told Parliament yesterday that because of the persistent trends of Covid-19, there was a shortfall of revenue in the last quarter of the 2019/2020, adding that the same problem was faced in the first quarter of the current financial year.
Shiimi frees up N$840 million… current budget remains unchanged at N$72.8bn (New Era Live)
Finance minister Iipumbu Shiimi yesterday tabled the mid-term budget for the 2020/21 financial year, consisting of N$841.6 million, with no new allocations being made but rather reallocation to priority areas. Shiimi proposed that the lion’s share of the reallocation, or N$326.4 million, be allocated to the basic education ministry. The freed-up funds announced in yesterday’s mid-term budget review consist of N$701.6 million realised from the operational budget and N$140 million from the development budget. The finance minister emphasised the proposed reallocation of budgetary resources leaves the overall expenditure allocation for the current financial year budget unchanged at N$72.8 billion.
Senior Gov’t Officials Hope to Complete WTO Accession by Next Year (Ethiopian News Agency)
Ethiopia is working to complete its accession to World Trade Organization (WTO) by next year, Senior Policy Advisor and Chief Trade Negotiator at the Office of the Prime Minister said. “Our goal is to conclude Ethiopia’s WTO accession negotiations in 2021. But that of course very much depends on what we will successfully discuss and conclude bilateral negotiations with the member countries. For us concluding the WTO accession is critical because we consider it as an external anchor to our domestic reform effort. Being part of the multilateral trading system is a natural outcome of the domestic economic reform program that the government is currently undertaking,” the chief trade negotiator stressed.
Ofori-Atta pleads with rich countries to extend suspension on debt servicing (Ghanaweb)
Finance Minister Ken Ofori-Atta is calling on rich countries to consider extending the moratorium on debt servicing from poorer countries. Mr. Ofori-Atta made this call as he ended his tenure as chairman of the joint ministerial committee of the boards of governors of the World Bank and the International Monetary Fund. The Finance Minister urged the G-20 countries to not only extend their Debt Service Suspension Initiative (DSSI) by two years but also re-examine the scheme. To help developing countries deal with the economic crisis caused by the Covid-19 pandemic, the G20 launched the Debt Service Suspension Initiative (DSSI), which freezes low-income countries’ external debt service payments to official bilateral creditors until the end of 2020.
pdf National Export Development Strategy (11.25 MB) (GEPA Exporters Portal)
The Ghana National Export Development Strategy (NEDS) envisages that over a duration of 10 years Non-Traditional Exports (NTEs) will grow from $2.8 billion in 2020 to $25.3 billion in 2029 accompanied by deep structural transformation that positions Ghana as a competitive export-led industrialized economy if NEDS is fully funded and implemented.
AfCFTA updates
African Continental Free Trade Area – The Opportunity Africa Offers (Peacefmonline.com)
The African Continental Free Trade Area (AfCFTA) is a single, duty -free, Quota free market covering the African Continent. Trade is key to Africa’s growth. Africa with all the enormous resources has about 2.6% of all world trade as at 2018 (AfrieximBank report, 2019). In this paper by Ellen Ohene-Afoakwa, Regional Corporate Director, West Africa at Absa Bank Ghana, will focus on five essential opportunity areas in Africa, and suggest steps that African Governments, Policy makers, Private Sector, The Youth, Financial institutions and Investors can take to translate the opportunities into profitable, sustainable enterprises for Africa’s growth.
Ghana is ready for AfCFTA – Trade Minister (Ghanaweb)
The Minister for Trade and Industry, Mr Alan Kyerematen has given assurances that given the structures in place, Ghana is ready to take advantage of the African Continental Free Trade Area (AfCFTA). According to him, the government has rolled out the necessary structures capable of facilitating the take-off in January next year. “I say we are ready on two grounds. First, we have introduced institutional frameworks that makes us ready and I believe you recall that the President has introduced an inter-ministerial facilitation team made up of critical sector ministers who are supposed to provide strategic guidance and support to make Ghana ready for the AfCFTA. There is a national steering committee that is coordinating and guiding the support that will be given to the private companies and other stakeholders.”
AfCFTA secretariat to unveil cross-border trading platform for SMEs (Ghanaweb)
The Secretariat of the African Continental Free Trade Area (AfCFTA) has said it is working on a cross-border trade platform to enhance market access and trade connectivity for Small and Medium-sized Enterprises (SMEs) across the continent. The digital platform, it said, will enable SMEs to expand their reach and explore growth opportunities in the AfCFTA, while ensuring seamless cross-border trading when the free trade deal takes off in 2021. “We are exploring various digital-enabled platforms that aim at enhancing market access, trade connectivity of SMEs to new markets across the continent,” Secretary-General of the AfCFTA, Wamkele Mene told a gathering in Accra.
Trade Ministry signs framework for grant disbursement with AfCFTA Secretariat (Ghanaweb)
The Ministry of Trade and Industry on behalf of the People of Ghana has signed the framework for the grant disbursement between the African Continental Free Trade Area (AfCFTA) Secretariat and the West African country. The Grant is in fulfilment of Ghana’s pledge to play host to African Union / AfCFTA secretariat which will be in full operation from the 1st of January 2021.
Nana Akufo-Addo indicated that Ghana has put in place the “One District One Factory” initiative; the development of new, strategic, anchor industries such as garments and textiles, pharmaceuticals, automobile assembly and component manufacturing; the programme for Planting for Food and Jobs; the Planting for Exports and Rural Development (PERD) initiative; the establishment of 67 Business Resource Centres, and 31 Technology Solution Centres; and the development of Industrial Parks and Special Economic Zones, all of these initiatives are to help the nation harness to the fullest, the benefits of the AfCFTA.
Ghanaian traders await African Trade Observatory access (Ghanaweb)
Ghanaian enterprises seeking to exploit duty free access to consumer and business to business markets across the continent are eagerly awaiting full access to the new African Union online portal known as the African Trade Observatory. The development of the impending new portal, which is now at its pilot stage, is supported by the European Union and the International Trade Centre, and is billed to play a crucial role in the implementation of the African Continental Free Trade Area (AfCFTA) The new online tool, designed to help businessmen and businesswomen in Africa understand how best to trade between African countries came a step closer to becoming fully operational in August 2020, as a demonstration version came onstream.
Protectionism in Africa Raises Concern Over Continent’s Free Trade Deal (Bloomberg)
African countries are trying to tear down barriers to commerce through a continent-wide trade pact, but developments in West Africa show some immediate neighbors prefer to keep the fences up. Hundreds of trucks have been parked at Benin’s border with eastern neighbor Nigeria for more than a year. That’s because the government in Abuja abruptly curbed imports in a move to throttle widespread smuggling of products that were sabotaging local industries and inflaming insecurity. Companies have had to resort to Lagos’ congested port – bedeviled by delays and inefficiencies – to move goods.
Win-win outcomes would foster economic integration agenda – UNECA (Chronicle)
The United Nations Economic Commission for Africa (UNECA) says proper management of the interface between continental and regional free trade regimes is critical in generating win-win outcomes towards continental integration agenda. Such continental and regional free trade regimes include the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa (Comesa) as well as the East African Community. Zimbabwe is part of the 21-member Comesa trading bloc and in February this year, the country officially joined AfCFTA.
News from across Africa
Investment in Africa’s untapped private sector is key to resilient economic recovery: Al Mashat (Egypt Today)
As state fiscal pressures mount amid the COVID-19 pandemic, Minister of International Cooperation, H.E. Dr. Rania Al Mashat, urged for the World Bank and international institutions to tap into Africa’s private sector and support economic recovery through enabling the mobilization of private sector investments and strengthening public and private partnerships (PPP) transactions. This was mentioned in her speech during the 2020 African Caucus Meeting of the Governors of the World Bank Group (WBG) and the International Monetary Fund (IMF).
Digital payments holds the power to Africa’s development (Bizcommunity)
The statistics that hover uncertainly around Africa are not ones that should make the continent proud. The World Bank has estimated that Africa could potentially hold 90% of the global poor population by 2030 and has recently cut its economic growth predictions to between -2.1 and -5.1 in 2020 from the 2.4% of 2019. The situation has been significantly worsened by the global pandemic, as the continent hits its first recession in 25 years. Africa has undergone a remarkable journey over the past 30 years. It has not only leapfrogged legacy technology and systems into a more relevant future, but it has done so in spite of challenging circumstances. This is particularly relevant when it comes to mobile – the technology, the connectivity, and the financial inclusion.
EAC calls for development of bioeconomy strategy in region (Xinhua)
The East African Community (EAC) bloc on Wednesday called for the development of bioeconomy strategy in the region to open opportunities for research cooperation. Christophe Bazivamo, deputy secretary-general of EAC, said that a regional bioeconomy strategy and the use of renewable biological resources sustainably to produce food, energy and industrial goods will lead to the promotion of trade in value-added bio-based goods and services. “The strategy will also augment the region’s efforts to engage more effectively in the African Continental Free Trade Area,” Bazivamo said during the first regional bioeconomy conference in Nairobi.
Four African airlines cease operations, more expected to fold (IOL)
Four airlines across Africa have ceased operations due to the impact of Covid-19 and two are in voluntary administration, with many more in serious financial distress expected to fold without committed relief. This is according to the International Air Transport Association (IATA), which said in a statement on Wednesday that without urgent financial relief more carriers and their employees were at risk, as was the wider African air transport industry, which supports about 7.7 million jobs on the continent. IATA’s regional vice president for Africa and the Middle East Muhammad Albakri said the risk of a “jobs bloodbath” was not just in aviation but across industries that depended on efficient global connectivity.
Building back better and greener in Africa requires strong partnerships, high-level champions agree (AfDB)
COVID-19 should not be a reason to renege on global climate commitments. That was one the messages shared by Kevin Kariuki, Vice President for Power, Energy and Green Growth at the African Development Bank, on behalf of Bank President Akinwumi Adesina, at the Africa Regional Resilience Dialogue, titled Building Back Better and Greener: Seizing Transformation Opportunities for a Resilient Future in Africa.
International
Regional Economic Outlook for Sub-Saharan Africa (IMF)
Sub-Saharan Africa is contending with an unprecedented health and economic crisis – one that, in just a few months, has jeopardized years of hard-won development gains and upended the lives and livelihoods of millions. The current outlook for 2020-21 is broadly unchanged from the June update, with activity in 2020 projected to contract by 3.0 percent, still the worst outcome on record. For 2021, regional growth should recover modestly to 3.1 percent. Overall, the region’s outlook will be shaped by the availability of additional financing and the transformative domestic reforms to promote resilience (including revenue mobilization, digitalization, and fostering better transparency and governance), lift medium-term growth, create opportunities for a wave of new job seekers, and progress toward the Sustainable Development Goals (SDGs).
pdf Regional Economic Outlook Sub-Saharan Africa | October 2020 (2.44 MB)
Sustainable shipping possible through platinum, fuel cells − WPIC (Engineering News)
Shipping, which is vital to the global economy, is responsible for about 2.5% of the world’s total greenhouse-gas (GHG) emissions as it is reliant on fossil fuels for power to transport about 90% of all freight goods transported by sea. Like other forms of transport, the maritime sector has committed to reducing its carbon footprint and the International Maritime Organisation (IMO) has set a global target to cut yearly emissions by at least 50% by 2050 from 2008 levels. Industry stakeholders, however, believe hydrogen-powered proton exchange membrane (PEM) fuel cells using platinum catalysts offer the potential for shipping to achieve zero emissions, where hydrogen generated from renewable sources is used as a fuel source, making the entire energy chain clean.
Global trade shows frail recovery in third quarter, but outlook remains uncertain (UNCTAD)
Global trade recorded a 5% drop in the third quarter of 2020 compared with the same period last year, according UNCTAD’s new Global Trade Update published on 21 October. This marks an improvement on the 19% year-on-year plunge recorded in the second quarter, and UNCTAD expects the frail recovery to continue in the fourth quarter, with a preliminary forecast of -3% compared with the last quarter of 2019. Depending on how the COVID-19 pandemic evolves in the winter months, the UN trade and development body expects the value of global trade to contract by 7% to 9% with respect to 2019.
pdf Global Trade Update | October 2020 (1.65 MB)
Factbox: How the G20’s Debt Service Suspension Initiative works (Reuters)
The G20 group of rich nations and big emerging powers extended their Debt Service Suspension Initiative (DSSI) this week to help the world’s poorest countries cope with the fallout of the COVID-19 crisis until the middle of next year. Below is an explanation of how the DSSI works:
India opposes US, Brazil push for fast implementation of trade facilitation measures at WTO (@businessline)
India has opposed suggestions made by the US, Brazil and Colombia at the World Trade Organisation (WTO) of placing binding commitments on members for early implementation of provisions under the Trade Facilitation Agreement (TFA) at the time of the ongoing Covid-19 pandemic, a Geneva-based trade official has said. The country, however, declared that it was ahead of schedule in its own implementation of commitments made, at the meeting of the WTO Committee on Trade Facilitation, on Tuesday.
China’s upbeat economic recovery offers global hope (The Herald)
China’s economic recovery posted an evident acceleration in the third quarter (Q3) among a flurry of key indicators that show an upward trend, underpinned by China’s outbreak containment success, strengthening domestic demand and strong foreign trade. A raft of effective stimulus measures have spurred domestic demand and investment, as well as supporting employment, including more fiscal spending, tax relief, and cuts in lending rates and banks’ reserve requirements. Those efforts cement the goal of keeping the domestic market as the mainstay while the domestic and foreign markets work to boost each other. They also galvanise China’s rebalancing of the economy from an export-and investment-driven one toward more focus on consumption and supply-side structural reforms.
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National
Taking to the skies (SAnews)
Although the COVID-19 pandemic is still with us and requires all to act responsibly, for many the further easing of travel restrictions could not have come at a better time not only for individuals but for the aviation industry as well. Air traffic movement experienced a drastic reduction in the last few months as a result of travel restrictions put in place by many countries around the world. The pandemic has required aviation organisations and entities, particularly airport service providers and air navigation service providers (ANSPs), to analyse and review the way they operate. Lessons learnt in this respect include the need for robust communication channels with recipients of virtual learning programmes as well as adequate advanced planning.
Could Uganda be the next hub of automotive manufacturing? (Daily Monitor)
President Yoweri Kaguta Museveni has banned the importation of buses into the country to promote value addition in the nascent automotive industry. The directive taken with Kiira Motors Corporation (KMC) in mind, which was established to champion value addition in the domestic automotive Industry, is expected to feed the sub sector with the Kayoola Solar Bus, a concept representing the next generation of public transport for cities within the region. Uganda’s automotive market is largely focused on retail and distribution of vehicles, and after-sales support in servicing and spare parts sales. Therefore, the involvement of KMC in the industry with its several projects, including the Kayoola Solar Bus concept, is commendable. However, the fruits of KMC are yet to be harvested.
Youth, trade roadmap aim to tackle root causes of irregular migration in Gambia (The Point)
Gambia Youth and Trade Roadmap is aimed at tackling the root causes of youth irregular migration in The Gambia and increases job opportunities and income prospects for the country’s youth. In order to achieve this, the roadmap prioritises those sectors that have the highest potential to generate decent jobs, but that are also appealing to today’s youth aspirations.
Akufo-Addo launches 2017/2018 census report on agriculture (Ghanaweb)
President Nana Addo Dankwa Akufo-Addo has launched the 2017/2018 National Report of the Ghana Census of Agriculture. The Census report will provide a basis to monitor the progress of Government’s interventions, offer insights on the transformation of the sector, and ensure the integration of the agriculture, industry and services sectors. President Akufo-Addo noted that the importance of agriculture to Ghana’s growth and development demands that the data on the sector, which informed the formulation of strategies and policies, as well as the monitoring and evaluation of such policies, must be accurate and up-to-date.
CBN Raises Red Flag over COVID-19 Financing (THISDAYLIVE)
The Central Bank of Nigeria has advised all financial institutions to be abreast with emerging risks and other developments while taking proactive steps to address the new and emerging money laundering and terrorism financing. The banking sector regulator noted that changes in the trends of business activities and financial transactions precipitated by COVID-19 pandemic had inadvertently led to increase in financial crimes globally. The CBN stated this in a circular titled: “Administrative letters to all banks and other financial institutions,” that was signed by its Director, Financial Policy and Regulation Department, J. M. Gana.
Uganda: Nimule border trade to resume (New Vision)
Women traders operating in markets around Nimule, Uganda’s border with South Sudan, may soon resume business following the launch of the Safe Trade Zone Protocol on Friday. Developed by TradeMark East Africa (TMEA), in partnership with Amref Health Africa, the Safe Trade Zone protocol seeks to facilitate safe opening of border markets, given the current COVID-19 pandemic. The protocol proposes several guidelines that need to be followed for border markets to re-open, so as to allow people to trade safely. It is now almost seven months since trade at border markets came to a halt after governments closed borders and banned gatherings to contain the spread of COVID-19.
Zimbabwe: Two borders with SA proposed to ease pressure on Beitbridge (The Herald)
“We are concerned with cases of illegal crossing on the flanks of the legal border (Beitbridge),” said Mr Ncube. “Such a scenario is not good in terms of security and the country being able to collect revenue through imports/exports which are leaking via the many non-formal entry/exit points.” Assistant Regional Immigration Officer-in-Charge of Beitbridge, Mr Nqobile Ncube said the two borders will help boost arrivals of tourists, with the Shashe point catering for people visiting the Greater Mapungubwe Trans-frontier conservation area which covers Botswana, South Africa, and Zimbabwe (west of Beitbridge).
Time for Nigeria to break restrictive trade shackles (New African Magazine)
Nigeria, as Africa’s biggest economy, is set to be a key player in the African Continental Free Trade Area but its challenges in leveraging this opportunity are significant. Participants at an Economic Commission for Africa workshop at the end of 2019 on Nigeria’s preparedness for the new trade regime highlighted the fact that the cost of doing business in the country and the dilapidated physical infrastructure were among the key priority areas that need to be addressed by the government. Nigeria’s enthusiasm for the AfCFTA has been lacking as it grapples with longstanding domestic issues that may affect its success in this regard.
Cape Verde Is Emerging as a Global Pivot Point (Foreign Policy)
Cape Verde doesn’t often make the news in the West, but since its initial settlement in the late 15th century, the small developing island state has seen it all: colonialization, slavery, piracy, revolution. And now it finds itself in the middle of a global pandemic and a fierce geopolitical rivalry. Against that background, Cape Verde is now redefining its long-term strategy known as Ambition 2030. The strategy hopes to jump-start a decade of action that leads to a new era of prosperity. The world’s great powers have long noted Cape Verde’s strategic position, about 350 miles off the coast of West Africa. Now investors should too.
Egypt Looks South (Global Finance Magazine)
While the global economy slows, Egyptian banks aim to expand their foothold in Africa and boost intraregional trade. In April, Commercial Bank of Egypt (CIB) became the first Egyptian bank to establish a presence in Kenya, through the acquisition of a majority stake in Nairobi-based Mayfair Bank (MBL). The $35 million deal allows Egypt’s largest private bank, with over $24 billion in assets, to take over a network of five branches and a portfolio of high-net-worth individuals and corporate clients.
Africa
“Ghanaian Enterprises Should Be Frontline Actors In AfCFTA” – President Akufo-Addo (Ghana Presidency)
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has reiterated Government’s commitment to assisting Ghanaian enterprises to take advantage of the coming into force of the African Continental Free Trade Area (AfCFTA). Speaking at the 2nd National Conference on the African Continental Free Trade Area, held on Tuesday, 20th October 2020, at the Accra International Conference Centre, the President explained that the AfCFTA will ensure that trading amongst Member States on the continent will be duty-free and quota-free. “We, in Ghana, cannot afford to let this window of opportunity slip. We hope that the private sector, facilitated and actively supported by Government, will be at the forefront of trying to take advantage of the vast possibilities presented by the AfCFTA,” he said.
Google and Amazon seek investment in e-commerce within AfCFTA (Citi Business News)
The Secretary General of the African Continental Free Trade Area (AfCFTA) Secretariat, Wamkele Mene, has disclosed that e-commerce giants, Google and Amazon, have approached the Secretariat for investment in AfCFTA. According to him, discussions are yet to be finalized on the necessary regulatory framework that will be used for the digital trade aspect of AfCFTA. “We have an opportunity with the African Continental Free Trade Agreement as we implemented to negotiate a digital trade e-commerce protocol per the agreement that will set the regulatory framework for e-commerce to take place in Africa for digital trade to take place in Africa, and in this regard we have already been approached by Google and Amazon who are interested in investing where of course we establish the right regulatory framework to invest in data storage centers on the African continent.”
The countdown to implementing the African Continental Free Trade Area in East Africa (Brookings)
The implementation stage of the African Continental Free Trade Area (AfCFTA) is due to begin in under three months. While the COVID-19 crisis has undoubtedly complicated the picture, the East Africa region is actually well-placed to implement the AfCFTA. Despite the skepticism expressed in some quarters about the ability of countries to get the landmark trade agreement up and running, there are strong reasons for optimism. Thus far, it is true that only five countries in Eastern Africa have deposited their ratification of the AfCFTA. However, it is not the number of countries that counts but the fact that a regional block of contiguous countries – representing around three-quarters of regional GDP – is coalescing. From January 1, 2021, Djibouti, Ethiopia, Kenya, Rwanda, and Uganda will all begin a reduction in their tariffs – starting with a linear reduction on 90 percent of tariff lines – leading to the elimination of tariffs on intra-regional imports over a period of five years (10 years in the case of countries classified by the United Nations as “least developed countries”); by the standards of regional trade agreements, this pace of liberalization will be quite rapid.
Africa operating as a bloc best for economic recovery (FurtherAfrica)
African trade experts have called for the swift implementation of the African Continental Free Trade Area (AfCFTA) to lift Africa out of the economic downturn caused by Covid-19. Speaking at a trade forum in Dakar, Senegal, AfCFTA Secretary-General Wamkele Mene said that the pandemic had, for the first time in 25 years, caused a contraction of GDP of between 2 to 5 per cent in sub-Saharan Africa. Dorothy Tembo, Deputy Director of the International Trade Centre (ITC), a joint agency of the World Trade Organization and the United Nations, said the continent must work toward operating as one trade bloc by January 1, 2021. She also announced the launch of ONE TRADE AFRICA, a new ITC programme to unlock the full business potential of the AfCFTA targeted at micro, small and medium-sized enterprises.
Curbing illicit financial flows to finance sustainable development in Africa (UNCTAD)
Curbing illicit financial flows (IFFs) can help African countries mobilize capital to finance the achievement of the Sustainable Development Goals (SDGs) and other national priorities. Financing shortfalls continue to hamper progress towards the SDGs, the African Union Agenda 2063 and the implementation of the African Continental Free Trade Area (AfCFTA). Investment in national development priorities, such as infrastructure and education, is often wanting as well.
Africa: Pandemic could be dawn of a new day for the continent (The Africa Report)
In Africa, the impact of COVID-19 is not only widespread, but it is also devastating and has the potential to have a deeper and longer-term impact on the growth trajectory of the continent, investment banker Yvonne Ike tells The Africa Report. That potential includes plunging 40 million people on the continent into poverty, out of 100 million globally projects the World Bank. In addition, about 300 million youth in Africa will be negatively impacted one way or the other, points out Ike, managing director and head of Sub-Saharan Africa (except South Africa) at Bank of America Merrill Lynch; the third largest investment bank in the world.
Regional tourism players push for harmonised travel protocols (The New Times)
The East Africa Tourism Platform (EATP), the top private sector body for tourism in the region on Tuesday, October 20, advocated for harmonized reopening protocols in partner states. This is to allow east Africans and international tourists to take advantage of attractions in the region and discover the hidden treasures. Fred Odek, the outgoing EATP Chairperson, said: “We are looking at ways to harmonise protocols; without having harsh conditions, work out a way to ease travel in East Africa, because easing travel is easing doing business.”
Covid-19 cited for contraction of East African economies (The East African)
Regional economies received a battering courtesy of the Covid-19 pandemic, and the numbers now just prove how damaging. Kenya, Rwanda and Uganda had by the end of March instituted measures to contain the virus, shutting down the economies leading to job and other economic losses.
West Africa Hard Pressed to Expand Cocoa Market Share (CNS)
Ghana and Ivory Coast account for two-thirds of the world’s cocoa supply, but unlike oil-producing countries, they are unable to influence prices that are historically too low to meet the basic needs of small planters. “They could decide the market prices, above all if they allied themselves with other major producers like Ecuador, Cameroon and Nigeria, but there’s a lack of real political will,” an industry expert said on condition of anonymity. For the first time in years, the neighbouring west African countries have matched their cocoa prices to halt a thriving traffic in cocoa beans between Ivory Coast, with its 40% of the world market share, and Ghana, in second place with more than 20%.
A Case for Tax Overhaul in Eastern Africa (Bloomberg Tax)
Cephas Osoro of Crowe Kenya looks at the historical context of the tax regimes in Eastern African countries and discusses the current system, using Kenya as an example. He suggests a complete review and overhaul of the tax system in these countries may be necessary to suit their circumstances and improve tax collection.
Financial markets in Africa still underdeveloped (Moneyweb)
Modern, robust and transparent financial markets are essential to attract investors to the African continent and fund economic growth, according to a research report by the Official Monetary and Financial Institutions Forum (OMFIF) as part of its annual study into the development of financial markets in African countries. The research, in collaboration with Absa, again puts SA first in its ranking of African countries in respect of different aspects in an attempt to measure the state of financial markets on the continent.
International
How digital gives SMEs a competitive advantage (IOL)
Digital business technology is progressing all the time; becoming faster, more capable and cheaper. It reduces costs and friction, provides detailed information in close to real time, and has the potential to open up new markets and opportunities. Covid-19 compelled many businesses to embrace the use of digital platforms to make and receive payments, given health concerns around physical interaction and the hygiene factor of handling physical cash during a pandemic. In fact, digital platforms allow SMEs the flexibility to create hybrid models between physical and online retail – or to bypass brick-and-mortar stores altogether.
Ten African Heads of State have issued a strong call to other world leaders to increase their funding to the International Fund for Agricultural Development (IFAD) or risk jeopardizing Sustainable Development Goal targets for eradicating poverty and hunger, particularly in Africa. “Investing in building the resilience of rural people is now more important than ever in order to secure food supplies, safeguard rural livelihoods, ensure that progress made over the years is not lost and prevent more rural people from falling into poverty and hunger”.
The continent’s largest development finance institutions have emphasized 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. Launched at the end of 2019, the DFC has an investment cap of $60 billion and has selected Africa as a priority region for future investments.
New EU-Africa pact must deepen trade ties, minister says (EURACTIV)
The EU and African Union must use a new ‘strategic partnership’ to deepen their trade and investment relations, participants agreed during a EURACTIV event focusing on what is likely to emerge from discussions between the two blocs. One of the main priorities of African governments from the process is to secure improved trade terms that will enable them to develop domestic and regional manufacturing with a view to increasing exports to the EU. “It is our hope that the new partnership will create new global value chains, to increase exports of finished goods,” Botswana’s trade and industry minister, Peggy Serame, told the event, pointing out that most of sub-Saharan Africa’s exports to the EU are raw materials rather than finished products.
Europe supports Africa CDC and Africa’s COVID-19 response with test kits (Emergency Live)
Africa CDC arrived 1.4 million anti-Covid kits. The Africa Centres for Disease Control and Prevention (Africa CDC), through the African Union, today received the third and last batch of 1.4 million COVID-19 test kits donated by the Government of Germany. The kits were delivered through a European Union (EU) Humanitarian Air Bridge flight as part of the EU’s global response to the COVID-19 pandemic, worth over €26 million, with contributions from the EU, Germany, Austria, Spain, and Sweden.
New portal reveals progress in attaining trade-related Sustainable Development Goals (WTO)
Launched on World Statistics Day, the portal allows users to conduct customized analysis of the trade-related SDG indicators, with the objective of improving understanding of the relationship between trade and development in the SDG agenda and highlighting the latest state of play in achieving the relevant SDG targets. The portal can be accessed here: https://sdgtrade.org/
Deputy Director-General Yonov Frederick Agah, who oversees development matters in the WTO, said at the launch event at the WTO: “Trade has an important role to play in the attainment of these goals. Over the last 15 years, trade has been an engine for economic growth and has unlocked massive poverty reduction gains and socio-economic development across the globe, particularly in developing countries…. The SDG Trade Monitor is the result of a collective effort between UNCTAD, ITC and the WTO. This multi-agency collaboration is an example of the hard work and the value proposition of the Geneva trade hub, further proving that multilateral efforts in trade are possible and worthwhile.”
WTO Race Hits Key Stage With U.S., EU Divided on Two Finalists (SWI swissinfo.ch)
The U.S. and Europe are heading for a clash over their preferred candidates to lead the World Trade Organization as the selection of the first woman to run the referee of global commerce enters a pivotal phase. The European Union is inclined to support Nigeria’s Ngozi Okonjo-Iweala and may sign off on that position Wednesday, people familiar with the process said. Other observers say the Trump administration is leaning toward South Korea’s Yoo Myung-hee. Meanwhile, China’s preference and those of other major economies like Brazil and India remain unclear.
Brexit: Standoff continues in trade talks after negotiators’ call (BBC News)
Talks on a post-Brexit trade deal remain stalled, after a phone call between the two sides’ negotiators failed to make a breakthrough. UK negotiator Lord Frost said his call with the EU’s Michel Barnier on Tuesday had been “constructive” but in-person negotiations could not resume. Meanwhile, Prime Minister Boris Johnson has urged business leaders to prepare for the end of the transition period in December, in a conference call alongside Cabinet Office Minister Michael Gove.
Global value chain lens can inform responses to bolster tourism industry in developing countries (Trade 4 Dev News)
Headlines associated with tourism and COVID-19 are alarming. The pandemic has been called an existential threat to the industry. The cruise sector has been blamed for spreading the virus. Workers in popular destinations are sliding into poverty. Preliminary data shows the damage. Estimates indicate the number of international travellers fell by 56%, with US$320 billion in lost receipts through the end of May. While recent shocks wreaked financial havoc, this disruption is different. It is truly global. All countries are negatively impacted; with essentially no one traveling across borders, no one is winning. It has created a rare pause in which countries can learn from the past and prepare for the future.
Members discuss intellectual property response to the COVID-19 pandemic (WTO)
Some 40 members engaged in a substantive discussion on a proposal submitted by India and South Africa for a temporary waiver of certain TRIPS obligations they said would facilitate an appropriate response to COVID-19. The proposal suggests a waiver for all WTO members on the implementation, application and enforcement of certain provisions of the TRIPS Agreement in relation to the “prevention, containment or treatment” of COVID-19. The proponents argued this would avoid barriers to the timely access to affordable medical products including vaccines and medicines or to scaling-up of research, development, manufacturing and supply of essential medical products.
Migrants essential to recovery of global development post COVID-19 (UNDP)
Global human mobility has halted with the overall impact of COVID-19, hitting people on the move hard. As borders re-open slowly, a new UN Development Programme (UNDP) report illustrates how governments can shape migration to benefit development and boost recovery. The report, Human Mobility, Shared Opportunities: A Review of the 2009 Human Development Report and the Way Ahead, looks back at the last decade and assesses how future policy responses could facilitate safe, orderly, and regular migration.
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South Africa’s track record bodes ill for investment drive (IOL)
South Africa will be hard pressed to realise its ambitions of attracting R1 trillion ($61 billion) of private investment in infrastructure if its past record is anything to go by. The investment drive began two years ago and is a key component of an economic blueprint unveiled by President Cyril Ramaphosa last week that aims to revive the coronavirus-battered economy. It envisions the government spending R100 billion on infrastructure, an allocation that’s expected to galvanize 10 times as much private investment within four years. Yet International Monetary Fund data shows investment as a percentage of South Africa’s gross domestic product has been in decline since 2016 and the Washington-based lender forecasts that the ratio will reach a record low of 13% this year.
SA could become top exporter of green hydrogen to the world (IOL)
South Africa could become an effective exporter of cost-effective green hydrogen to the world, given its immense renewable energy potential, according to the inaugural PwC report on hydrogen published yesterday. The report titled ‘Unlocking South Africa’s hydrogen potential’ said that South Africa had one of the highest renewable energy generation potentials in the world citing the billions of rand committed to solar, wind and pumped storage projects across the country. The reported said the Integrated Resource Plan-the blueprint for South Africa’s energy mix, which was gazetted last year, made clear guidance for renewables to account for a bigger proportion of the country’s generation capacity.
Kenyan banks in big trouble over locust, Covid-19 shocks (The East African)
Top Kenyan banks have yielded to the Covid-19 pandemic with grim prospects of weaker profitability, slowed loan book growth and a surge in the volume of bad loans, signaling reduced dividends for shareholders and reduced corporate tax to the government this year. According to a special report by rating agency Fitch on eight banks that control 83 percent of the industry’s deposits and 76 percent of the total assets, weaker operating conditions have resulted in substantially lower earnings and profitability metrics for the lenders that have also borne the brunt of huge loan restructuring to protect borrowers whose loan repayments have been impacted by the Covid-19 pandemic.
Major losses for Namibia if new EPA is not ratified… millions stand to be lost in exports (New Era Live)
It is imperative for Namibia to ratify the Southern African Customs Union (SACU), Mozambique and United Kingdom (UK) Economic Partnership Agreement (EPA) as soon as possible to ensure the country continues to benefit from duty free and quota free trade with the UK after December 2020. As part of SACU Namibia currently trades with the UK under a signed memorandum of understanding on an interim basis until December this year. Minister of Industrialisation and Trade Lucia Iipumbu cautioned in Parliament last week that the ratification process must be completed to ensure that Namibia continues to trade with the UK under favourable conditions after December 2020 when the current agreement between the European Union (EU) and the UK lapses.
First merchandise trade surplus in 13 years (The Namibian)
Namibia recorded a merchandise trade surplus for the first time in 13 years, thanks to a reduction in imports and an increase in the export of raw minerals. Bank of Namibia that monitors the country’s balance of payments noted in its latest Quarterly Bulletin (September 2020) that Namibia recorded a surplus of N$918 million in its merchandise trade account for the second quarter. “Namibia registered a merchandise trade surplus during the second quarter of 2020, the first since the third quarter of 2007, due to a decline in import payments and increased export earnings,” said the central bank.
Rwanda ratifies continental aviation constitution, eyes bite of tourism cherry (The New Times)
Last week, Rwanda approved the revised African Civil Aviation Commission (AFCAC) constitution, becoming the 13th African state to ratify this establishment. The constitution, which seeks to promote coordination, better utilisation and orderly development of African air transport systems – will enter into force after the ratification of two more countries. Among the benefits, Udahemuka said, Rwanda expects a boost in tourism revenues and jobs.
Burundi Investment 1st quarter achievements and Covid-19 impact on foreign trade (RegionWeek)
A recent report published by Burundi Institute for Statistics and Economic Studies reveal new data on the impact of COVID-19 in Burundi from January to June 2020, among key finding, are: The effects of COVID-19 on formal exports and imports were deeply felt in May 2020 with a profound decrease in the entry or exit of goods in the national territory. Exports and imports in value decreased by 51.6% and 22.4% respectively in May 2020 compared to January 2020 (month without COVID-19). However, a resumption in due form of exchanges was recorded in June 2020.
NACCIMA Pledges Support for FG’s Economic Stabilisation Measures (THISDAYLIVE)
The Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) has pledged to partner with the federal government in the ongoing effort to reposition the economy for greater performance. The association said it will participate in the arrangements for the implementation of the economic programmes under the Economic Sustainable Plan (ESP) announced by the federal government to kick-start the economy after the ravaging effect of Covid-19 pandemic, while also working to ensure that Nigeria maximises benefits derivable from the African Continental Free Trade Area (AfCFTA) agreement.
New currency notes gets 1 million Ethiopians into banking system (IOL)
Ethiopia’s effort to stamp out counterfeiting by introducing new currency notes is pulling people who’ve never had a bank account into the financial system. Over the past four weeks, almost 1 million previously unbanked Ethiopians have handed in their two-decade-old banknotes, according to the central bank. In exchange, they were given a bank account from which they can draw the new notes. The regulator is trying to deter cash hoarding that enables corruption and illegal trading to thrive, and escapes the tax net. While Kenya’s demonetization process that started last year went smoothly, the equivalent of about $68 million was not returned, according to the central bank. South Sudan is also contemplating demonetization to curb illicit financial flows.
Africa
Akufo-Addo opens second AfCFTA Conference today (MyJoyOnline.com)
President Akufo-Addo will open the second edition of the national conference on the implementation of the African Continental Free Trade Area (AfCFTA) Agreement in Accra, today. The two-day conference is on the theme: “Empowering Ghanaian Businesses to Harness the Benefits of the African Continental Free Trade Agreement under the framework of the National Export Development Strategy (NEDS).”The event will bring together relevant stakeholders from the private and public sectors to discuss government’s export development interventions aimed at empowering the private sector to harness the benefits of the AfCFTA.
Continental and Regional Trade Regimes Need Proper Management to Succeed (COMESA)
There is need for proper management of the interface between the continental and the regional free trade regimes to generate a range of win-win outcomes for various stakeholders in Africa’s integration agenda. According to Dr. Stephen Karingi, the Director, Capacity Building Development at the United Nations Economic Commission for Africa (UNECA), the successful implementation of the African Continental Free Trade Area (AfCFTA) will depend, on how smoothly or otherwise, it is interfaced with pre-existing regional economic communities FTAs and related instruments. He was speaking during his keynote address at the opening of the 7th COMESA Annual Research Forum whose theme is “Harnessing Intra-COMESA Trade through the Interface with African Continental Free Trade Area (AfCFTA)”.
African Agency in Mineral Resource Governance (Chatham House)
Citizens of resource-rich countries are demanding greater social and economic benefits from their natural resource endowments, and governments have moved to exert increased control of resource rents for national benefit or, in the worst cases, personal enrichment. Africa accounts for around 30 percent of the world’s mineral resources but attracts only around 15 percent of global exploration spend and accounts for only about 8 percent of global production concentrated in a few jurisdictions. To change this perception, and to support a rejuvenation of the industry across the continent, there is an urgent need for open and collaborative dialogue between government and industry that goes beyond revenue management.
Scanners cause border delays (The Chronicle)
The Zimbabwe Revenue Authority (Zimra) has since July been forced to manually enforce customs regulations on commercial imports coming into the country through Beitbridge following a major breakdown on its mobile cargo scanner. This emerged during a tour of the Beitbridge Border Post recently by the Deputy Health and Child Care Minister, Dr John Mangwiro. At least 1 300 commercial trucks enter the country’s and Sadc’s busiest in land port of entry daily and the figure has been swelling with Botswana (another Sadc transit route) have extended their lockdown to April 2021. Zimra’s spokesperson, Mr Francis Chimanda said yesterday that the cost of repairing the scanner is yet to be ascertained, as troubleshooting was still underway.
Bissau Customs DG meets Gambian counterpart (The Point)
In his welcoming remarks, CG Darboe expressed profound appreciation for the visit which he said would go a long way in cementing ties and strengthening trade facilitation between the two countries. This is critical given the huge volume of trade that takes place between Banjul and Bissau. “Today’s meeting being the first of its kind between the two administrations is a welcome development in the context of regional integration and addressing challenges in the free movement of people and goods,” he said. According to the presentation, GRA collection accounts for 60% of government revenue, which is a fundamental pillar in building a modern country.
Sudanese-Ethiopian border reopens for trade (Radio Dabanga)
Three border crossings between Sudan’s Blue Nile state and Ethiopia were officially re-opened on Friday, marking the resumption of trade exchange and border relations between the two countries. Sources from Ed Damazin, capital of Blue Nile state, told Radio Dabanga that the opening was attended by representatives of the Sudanese and Ethiopian authorities. The crossings are of great importance to the people of the two countries, especially in the field of trade. Sugar, cooking oil, coffee, soap, and perfumes from Ethiopia are sold at markets in Blue Nile state’s Geisan. In 2018, 2.5% of Sudan’s exports went to Ethiopia.
Africa’s 60% arable land is SADC’s solution to food insecurity and poverty (Citypress)
The Covid-19 coronavirus pandemic has revealed that very few countries on the African continent have the adequate policies and related mechanisms in place to cope with the pandemic shocks on their economy. According to the second Biennial Review Report of the African Union Commission titled Comprehensive Africa Agriculture Development Programme released last week, this is even more apparent in the Southern Africa Development Community (SADC) region’s agriculture sector. “Hunger is rising in Africa and there is another real threat of climate change. SADC member states need to elevate agriculture to the global agenda,” said Senior programme officer for global policy and advocacy at the Bill & Melinda Gates Foundation, Faustine Wabwire, said.
International
Africa Trade and Investment Global Summit confirmed for Dubai in 2021 (FurtherAfrica)
ATIGS Group has just confirmed that its Africa Trade and Investment Global Summit (ATIGS) will be held on October 27 & 28, 2021, in Dubai, UAE. For this upcoming edition, preparations have now begun to ensure the best possible results for the event, designed as the landmark global-Africa business platform to foster foreign direct investment in Africa and promote international trade. The recently-ratified African Continental Free Trade Area (AfCFTA) is poised to be a new and much-welcomed element as it is poised to serve as a powerful catalyst towards achieving new business deals and trade opportunities in the African Continent.
Working Together to Write a New Chapter of the Forum on China-Africa Cooperation in the New Era – Article by Minister Zhong Shan (People’s Daily)
This year marks the 20th anniversary of the establishment of the Forum on China-Africa Cooperation (FOCAC). It has become a distinct symbol in international cooperation with Africa and in South-South cooperation. Standing at the new historic starting point, China is willing to work with Africa to stay true to our original aspiration, keep forging ahead to consolidate and strengthen the FOCAC mechanism, substantiate and deepen the Belt and Road cooperation, drive high-quality development of China-Africa trade and economic cooperation, and set a good example for the building of a community with a shared future for mankind in our times.
MENA: Trade and Regional Integration are Critical to Economic Recovery in the Post-Covid Era (World Bank)
Trade and integration – within the Middle East and North Africa (MENA) region and with the rest of the world – will be critical to lowering poverty, empowering the poor, and igniting economic growth in the post-COVID era, according to the World Bank’s latest regional economic update. The report, titled Trading Together: Reviving Middle East and North Africa Regional Integration in the Post-Covid Era, paints a comprehensive picture of MENA’s economic situation six months into the COVID-19 pandemic.
The Leader the WTO Needs | by Mo Ibrahim, Kevin Watkins and Mary Robinson (Project Syndicate)
With the global trading system under severe pressure, international cooperation to strengthen a rules-based order is vital. Now, perhaps more than ever, we need a World Trade Organization that supports economic recovery, defends multilateralism, rebuilds trust, and rises to the twenty-first-century challenges posed by poverty, inequality, climate change, and – more immediately – the COVID-19 pandemic.
Civil society organizations call for strong support for trips waiver to combat COVID-19 (Info Justice)
Nearly 380 civil society organizations have urged Members of the World Trade Organization to strongly support the adoption of a draft decision proposed by India and South Africa for a waiver from certain provisions of the TRIPS Agreement to combat the worsening COVID-19 pandemic. India and South Africa have submitted a proposal to the WTO TRIPS Council on a “Waiver from certain provisions of the TRIPS Agreement for the prevention, containment and treatment of COVID-19”. In their letter to the WTO Members, the CSOs said that in a global pandemic where every country is affected, a global solution is needed.
UN calls for comprehensive debt standstill in all developing countries (UNDP)
Poor and middle-income countries need bold new mechanisms to dig out of crushing debt, sharply worsened by the COVID-19 pandemic, with a focus on “green,” sustainable recovery, a senior UN official told G-20 finance ministers and central bank governors at the World Bank-International Monetary Fund (IMF) Annual Meetings yesterday. Navid Hanif, Director of Financing for Sustainable Development at the UN Department of Economic and Social Affairs, welcomed G-20 plans to extend through 2021 the Debt Service Suspension Initiative (DSSI) – announced in April in response to the pandemic – but said more needs to be done to address the worst global crisis since World War II.
G20 endorses action plan on trade, investment and supply chains to support growth (domain-b.com)
Finance ministers and central bank governors of the Group of 20 major economies at their meeting in Riyadh, Saudi Arabia, have agreed on an action plan to facilitate international trade, investment and to build resilience of supply chains to support growth, productivity, innovation, job creation and development, even as they committed themselves to specific actions to navigate the present crisis caused by the coronavirus epidemic. They also committed themselves to strengthen international cooperation and frameworks, endorsed at the 15 April 2020 meeting and take steps to support recovery and achieve strong, sustainable, balanced and inclusive growth. A communique issued at the close of the meeting underscored the urgent need to bring the spread of the virus under control, which is key to supporting global economic recovery.
A Leap Forward on Cross-Border Payments (IMF Blog)
Progress to improve cross-border payments has been slow, but is just about to take off. That is how history evolves – one small step at a time, until it suddenly leaps forward. The confluence of new technologies and renewed determination among policymakers are making significant improvements possible. Reforms have the potential to be transformative by making cross-border payments cheaper, faster, more transparent, and more widely accessible. The stakes are high. Changes to cross-border payments have a bearing on the stability of the international monetary system, on financial inclusion, and on the efficiency of trade and financial markets. And reforms may unlock innovation and much needed growth, particularly following the COVID-19 crisis.
Laying the Foundations for a Resilient Recovery (World Bank)
The COVID-19 pandemic continues to devastate countries, overwhelming health systems, disrupting productivity, threatening food security, multiplying job losses, and reducing incomes, particularly for the poorest. It has led to the largest global economic contraction in eight decades, affecting all economies and causing investments, trade, and remittance flows to plummet. The global crisis is threatening the lives and livelihoods of the most vulnerable by increasing poverty, exacerbating inequalities, and damaging long-term economic growth prospects. It requires a comprehensive, robust global response from the development community. These were key messages from the Development Committee.
Oxfam: Rich countries are not delivering on $100bn climate finance promise (Climate Home News)
Wealthy nations are giving less money to poorer ones for climate projects than their official statistics make out, according to analysis by Oxfam. In a report published on Tuesday, the anti-poverty charity found that nearly 80% of climate finance to developing countries took the form of loans, rather than grants. Poor nations were expected to pay richer countries back, often for investment in projects with weak climate credentials. “The excessive use of loans and the provision of non-concessional finance in the name of climate assistance is an overlooked scandal,” the report said.
How biodiversity-friendly trade can support COVID-19 recover (UNCTAD)
At the first‑ever global summit dedicated to biodiversity held virtually on 30 September, various leaders said the COVID-19 pandemic is an opportunity for countries to put bold and ambitious environmental action at the heart of their post‑coronavirus economic recovery strategies. One of the tools at countries’ disposal is BioTrade – the collection, production, transformation and commercialization of goods and services derived from biodiversity under BioTrade Principles and Criteria, a set of guidelines that emphasize environmental, social and economic sustainability.
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Continental and Regional Trade Regimes Need Proper Management to Succeed
There is need for proper management of the interface between the continental and the regional free trade regimes to generate a range of win-win outcomes for various stakeholders in Africa’s integration agenda.
According to Dr. Stephen Karingi, the Director, Capacity Building Development at the United Nations Economic Commission for Africa (UNECA), the successful implementation of the African Continental Free Trade Area (AfCFTA) will depend, on how smoothly or otherwise, it is interfaced with pre-existing regional economic communities FTAs and related instruments.
He was speaking during his keynote address at the opening of the 7th COMESA Annual Research Forum whose theme is “Harnessing Intra-COMESA Trade through the Interface with African Continental Free Trade Area (AfCFTA)”.
“One of the main objectives of the AfCFTA is to accelerate regional and continental integration through the consolidation of the multiple and overlapping trading regimes, embodied in pre-existing RECs FTAs, such as the COMESA,” Dr Karingi noted.
“However, as law scholars have already argued, some wordings in the AfCFTA Agreement suggest that this relationship is likely to be more complex. And although this is not what was originally imagined, it now needs to be properly analysed and understood.”
He cited Articles 5 and 19 of the AfCFTA which are intended to help navigate the complexity of the relationship with pre-existing intra-African trade instruments. Article 5 for example, does not only recognize ‘RECs’ Free Trade Areas as building blocs for the AfCFTA,it also points to the need to leverage their best practices.
Further, Dr Karingi noted that some RECs, individually or collectively, have made great strides in some dimensions of integration, way ahead of what is currently envisioned in the AfCFTA with four African Union-recognized RECs having FTAs that have achieved higher levels of integration than the AfCFTA at the time of its entry into force.
He therefore observed that the AfCFTA, could lean on the progress that RECS such as COMESA have made in important areas of integration including the COMESA Investment Area, COMESA Competition Policy, COMESA’s progress on the issue of Intellectual Property Rights, and the COMESA Digital FTA.
He added: “The AfCFTA can also benefit from COMESA’s experience in building trade supporting institutions, such as in the areas of trade finance, trade insurance, regional payment systems, and in the context of simplified trade regimes.”
By safeguarding the achievements of RECs, he observed, the AfCFTA has in the short run, allowed for some level of flexibility on the co-existence of a web of connected, yet distinct, trade regimes, which would be consolidated at some later stage. He said this requires careful and thoughtful management – backed by evidence-based research which the COMESA Forum provides.
In her statement, the Secretary General (SG) of COMESA Chileshe Kapwepwe noted that since 1950s, there has been a proliferation of regional integration agreements (RIAs), making them the centerpiece of many questions of global governance.
“For instance, do RIAs deliver the intended benefits for members? Why do governments sign these agreements, and do they work towards attainment of anticipated long-term consequences of doing so? Within the context of the Africa Continental Free Trade Area, what for instance are the optimal options for allocation of duties between regional economic communities, ACFTA, Member States and Private Sector?” she posed.
“These are questions that only in-depth research and analysis can find appropriate solutions.”
The SG said the capacity building interventions in research and training carried out by COMESA are aimed at enhancing not only the capacity of the COMESA Secretariat but also that of the Member States in economic and trade policy analysis and research, as well as trade negotiations.
Mr. Escipión Oliveira Gómez, Assistant Secretary General Structural Economic Transformation and Trade, Organisation of African, Caribbean and Pacific States (OACPS) said the COVID-19 pandemic has demonstrated that no country or region can go it alone. His organization was therefore keen to collaborate with regional economic communities towards implementation of innovative initiatives to promote integration.
Mr. Prudence Sebahizi, the Chief Advisor of AfCFTA and Head of AfCFTA Negotiations Unit, Africa Union Commission (AUC) kicked-off the presentations with a status report on the AfCFTA negotiations and the Interface between AfCFTA and regional economic communities.
The three days Forum will review nine best research papers selected from a list of 39 submitted to COMESA in response to a call for papers made early this year. It is funded by COMESA, OACPS and the European Union.
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Job creation is key to SA’s economic recovery (SAnews)
As the country recovers from the devastation of the Coronavirus pandemic, President Cyril Ramaphosa has emphasised the need to take stock of the mammoth task of creating employment as the country’s battered economy recovers. The President said this in his weekly newsletter, which follows on the Reconstruction and Recovery Plan he delivered during a joint sitting of Parliament last Thursday. Amongst other things, the stimulus is expected to protect and create directly funded jobs and livelihood support interventions while the labour market recovers from the pandemic.
South Africa records growth in exports to China (The Africa Logistics)
As expected, South Africa saw an overall decline in exports during the lockdown. However, that was not the case for South Africa’s trade with China. SA exports to China grew year on year by just over 2% during the second quarter of 2020. The result is that during the quarter China’s dominance as South Africa’s main export destination grew even further to 13.4% of all exports to the tune of R36.6 billion. During this period, the top five export products to China included ores (67.7%), iron and steel (11.7%), wood pulp (3.3%), copper (3.2%) and fruit and nuts (2.9%), altogether accounting for 88.8% of South Africa’s total exports to China by value. This emerged from the second quarter Trade & Industrial Policy Strategies (TIPS) export tracker which unsurprisingly saw a strong decline in the remainder of SA’s trading partners.
Next Africa: Zambia Is Focus of Global Debt Crisis (Bloomberg)
Zambia is in the global spotlight for all the wrong reasons. The southern African nation skipped a coupon instalment on its Eurobonds this week, increasing the likelihood of a debt default. The government has called on private creditors to agree to a deferral of payments at an Oct. 20 meeting, but many are reluctant to comply. The country is now a test case for how the international community will treat nations that can’t meet their commercial debt obligations, even if it’s a result of the Covid-19 pandemic. Countries from Africa to Latin America and beyond are facing similar struggles, leaving them at the mercy of lenders trying to get their money back.
BITC restrains targets amidst COVID-19 crunch (Mmegi Online)
The Botswana Investment and Trade Centre (BITC) has decided to maintain, rather than review, its investment promotion and job creation targets this year, as the novel coronavirus (COVID-19) pandemic wreaks havoc with its activities. Annually, the BITC, which is the country’s lead agency for attracting investment and promoting exports, increases its targets by a minimum of 10%. For the current financial year, which began in April, the BITC will keep to the same targets it had last year, executives said on Tuesday. “We are living in an era of radical uncertainty,” he said.
Zim exports on upward trend (The Sunday Mail)
“The need for increased diversified exports of value-added goods and services as opposed to the present reliance on the exportation of primary commodities is now urgent and imperative.” This call to action made by President Mnangagwa during last year’s ZimTrade Exporters’ Conference is now bearing fruits, evidenced by improvements in the nation’s exports this year. According to ZimStats figures released for January to August 2020 exports, Zimbabwe’s exports stood at US$2,563 billion, representing a 4,9 percent rise from US$2,442 billion recorded in the same period in 2019. With the relaxation of lockdown regulations, exports grew by 35 percent month on month for the period July-August 2020.
Covid cuts EAC exports to Sh28bn (Business Daily)
Kenya’s exports to its five partners in the East African Community (EAC) bloc fell 15.83 percent in the second quarter of the year, largely reflecting impact of travel restrictions and reduced demand amid the Covid-19 pandemic. Earnings from goods sold to Uganda, Tanzania, Rwanda, South Sudan and Burundi in the April-June 2020 period dropped to Sh28.83 billion from Sh34.25 billion a year earlier, latest data released by the Kenya National Bureau of Statistics (KNBS) shows. The Sh5.42 billion contraction came at a time when Kenyan traders experienced lengthy cross-border delays because of the requirement for Covid-19 testing for truck drivers.
President envisions cross-border business (Daily News)
President Dr Mokgweetsi Masisi has expressed the hope that the small stock initiative would translate into cross-border business opportunities and collaborations. President Masisi explained that the initiative to assist up-and-coming small stock farmers was prompted by government’s resolve to empower citizens and his determination to support the agricultural sector towards attainment of food security.
Jumia Launches 2020 Ghana Food Index Report (Modern Ghana)
As part of the World Food Day celebrations on 16th October, Jumia has published its 1st Ghana Food Index Report showing the impact of COVID-19 on food trends in Ghana. New innovations in the food industry, one of the world’s oldest and largest industries, are creating attractive opportunities for women and youth on the African continent. More than 3 millions jobs can be created in 2025 in Africa by Online Marketplaces.
Nigerians hungrier now, thanks to Buhari’s policy on food imports (The Africa Report)
Since 21 August 2019, Nigeria shut its borders with Benin and effectively the main artery of trade between Accra and Abuja. What was thought to be a short-lived closure has dragged on for over a year later with unforeseen consequences coupled with the pandemic. About 15 months ago, Tunrayo Akinola spent N30,000 a month out of her N60,000 monthly salary feeding herself and her small family of two. That was before President Muhammadu Buhari ordered the closing of the Nigerian border against its neighbours to prevent smuggling of rice and other products, thereby halting trade between Nigeria and the remaining African countries with which it had signed the African Continental Free Trade Area (AfCTA) agreement.
Africa
AfCFTA budget approved, secretariat to advertise vacant positions (Ghanaweb)
Secretary-General of the African Continental Free Trade Africa (AfCFTA), Wamkele Mene, has revealed that the budget of the secretariat has been approved. He said this paves the way for the secretariat to start advertising for various vacant positions in order to get qualified persons to fill all the posts. At a media engagement on Thursday October 15, Mr Wamkele Mene said “in the next few weeks we shall be in the position to start advertising positions both the ones that are the professional levels and those that will be support staffs.”
Govt to hold national conference on implementation of AfCFTA agreement (Ghanaweb)
The AfCFTA Secretariat is located in Ghana Government will hold a two-day National Conference in Accra from Tuesday 20th to 21st October, 2020 on the implementation of the Africa Continental Free Trade Area (AfCFTA) Agreement. A statement issued in Accra on Sunday 18th October 2020 by the Ministry of Trade and industry said the theme of the conference is “Empowering Ghanaian Businesses to harness the benefits of the African Continental Free Trade Agreement under the framework of the National Export Development Strategy (NEDS)”. The statement said “the National Conference will bring together relevant stakeholders from the private and public sectors in Ghana to discuss Government of Ghana’s export development interventions aimed at empowering the private sector to harness the benefits of the AfCFTA”.
SADC trade sneezes amidst corona pandemic (The Southern Times)
The COVID-19 pandemic has affected millions of people worldwide and to try and contain the spread of the virus governments the world over have imposed various measures which have limited movement of people and goods across borders. Some ports of entry were closed and only limited types of goods were initially allowed across the few open borders, skeleton staff reported for duty, more controls for COVID-19 protective equipment and medical supplies were introduced, health checks for cross border crews are now mandatory and many other measures which vary from one country to the other, have been adopted. However, the introduction of these measures have had negative effects on trade facilitation in the Region.
pdf SADC Call for Action on Food Security in the Context of COVID-19 (557 KB) (Southern Africa Trust)
In order to respond to the immediate socioeconomic hardships caused by the COVID-19 global pandemic, as well as to build a new foundation for sustainable, resilient, broad-based socio-economic recovery, we believe that SADC needs an updated framework to accelerate commitments to end hunger by 2025. To this end, we call upon SADC governments to prioritise enhanced regional cooperation and radically expand people centred rights based public investment in the following areas:
Uganda-DRC road projects viable move (New Vision)
Media has been awash with complaints following Uganda’s news to supporting DR Congo (DRC) for three bitumen road projects. Such projects fit into broader African economic integration through the African Continental Free Trade Area (AfCFTA). From 3 States, East African Community (EAC) expanded to six and still counting on Djibouti, Ethiopia, Somalia, DRC, etc. International Conference on Great Lakes Region (ICGLR) protocol informed the November 2019 Uganda- DRC communique, concluded in Munyonyo. These frameworks, inter alia, invite states to joint investment, trade and security. The Uganda-DRC communique committed them to trade facilitation interventions commencing within 24 months, including eventual bitumen of at least 1,200 km road networks.
East Africa could become a major cannabis export hub (The East African)
The East African Community could become a mass producer of medical cannabis for export to fast-growing markets in the West. This is after Rwanda on October 12 became the latest EAC partner state to approve medical cannabis production for export, following closely in the footsteps of Uganda. Tanzania and Kenya, which produce the largest amounts of cannabis in the region, are yet to legalise the commodity and so it is exported illegally. Rwanda government officials said the decision to legalise the export of medical marijuana was based on the revenue potential for the country.
Outcome of the Meeting on CBC’s Engagement with Regional Financial Services Regulators (COMESA)
“Digital payment systems are a focus area on course to improving the efficiency and performance of SMEs in the region. This is therefore a very important forum which provides Government to Business, Business to Business and Business to Consumer, key policy aspects that needs to be addressed in order to promote intra-COMESA trade which is currently low.” This was said by Mr. Marday Venkatasamy, Chairman of the COMESA Business Council (CBC), in his opening statement during the Financial Services Regulators Sub-regional Stakeholders Meeting – Towards Harmonization of Policies for an Integrated Digital Common Payment Scheme for MSMEs – which took place on 13th October 2020.
Addressing supply chain disruption and compliance in the IMT sector in Africa (The Africa Logistics)
Industrials, manufacturing and transportation (IMT) companies have some of the most complex supply chains of any sector and have been particularly hard hit by quarantines, travel restrictions, and other disruptions brought about by the global COVID-19 outbreak. Marc Yudaken, Partner and Head of the Industrials, Manufacturing and Transportation (IMT) at Baker McKenzie in Johannesburg says that African IMT companies that have operations in multiple jurisdictions, or source products from other regions, have faced intense challenges when reacting to and minimising supply chain impacts.
Unlocking Africa’s Energy Investment Potential Will Require More Than Just Waiting for Covid-19 to be Over (Pulse Nigeria)
While the impact of the Covid-19 pandemic on the oil market has been unforgiving, the latest meeting of the African Energy Chamber’s Investment and Regulatory Affairs Committees last week tended to downsize the responsibility of such external shocks to explain the lack of investment in Africa. While it is clear that 2020 will remain one of the worst years in oil & gas history, the end of the pandemic and the rebalancing of the market will not necessarily translate into investments in Africa unless bold reforms are made. From a regulatory perspective, most African jurisdictions were already uncompetitive for oil & gas investment before the current crisis, and plagued by policy uncertainty and issues around the sanctity of contracts.
International
Proposals for global partnerships to facilitate an African recovery (SHINE)
The spread of the COVID-19 pandemic has profoundly affected developed and developing countries alike, despite vast disparities in initial response capacities. Global leaders were especially concerned about the disease’s potential implications for Africa, given the continent’s lack of financial and medical resources, weak health-care systems, fragile economies and vulnerable populations. But preparation and cooperation among African leaders and African Union agencies, particularly the Africa Centers for Disease Control and Prevention, have resulted in many successes – including increased testing capacity, resource mobilization and coordinated policies to prevent and contain the coronavirus’ spread and promote economic recovery. We therefore propose six ways the world can cooperate with Africa to improve the continent’s crisis response, accelerate its economic recovery, and build momentum for its post-pandemic development.
Landry Signé is a professor and senior director at Arizona State University’s Thunderbird School of Global Management. Ameenah Gurib-Fakim is former president of Mauritius.
The US government makes its big push for investment in Africa (Atlantic Council)
Buoyed by bipartisan commitment and a new government agency, the United States has taken new and significant steps to help drive investment in Africa, strengthen the region’s dynamic economies, create lucrative opportunities for US and African businesses, and advance US foreign-policy goals in the region. “America’s goal in [Africa] s to support locally led problem-solving for enterprise-driven growth, inclusive societies, and transparent, accountable governance,” US National Security Advisor Robert O’Brien said on October 16, as part of the opening session of the Investing in Africa’s Future conference hosted by the Atlantic Council’s Africa Center and the US International Development Finance Corporation (DFC).
SA missing from world’s most exciting economies: 2030 forecasts (BizNews.com)
South Africa has been China’s biggest trading partner in Africa for 10 years and China the largest recipient of SA goods and services for 11 years, Chen Xiaodong, China’s ambassador to SA, said recently. In 2019, total trade was $43.2bn (about R700bn) between the two countries, according to Bloomberg. Standard Chartered forecasts that China will be by far the largest economy in 10 years. In the global bank’s list of the most exciting economies, resource-rich friend SA is conspicuously missing.
Download: The Super-Cycle Report Investor Supplement Turning Insights into Asset Allocation Strategy (pdf)
Global Poverty Soars – As Incomes of World’s Billionaires Hit New Highs (Inter Press Service)
Addressing poverty eradication last week, just ahead of the International Day for the Eradication of Poverty on October 17, UN chief António Guterres warned that the impacts of the COVID-19 pandemic are falling “disproportionately on the most vulnerable: people living in poverty, the working poor, women and children, persons with disabilities, and other marginalized groups”. Pooja Rangaprasad, Director, Policy and Advocacy, Financing for Development (FfD) at the Rome-based Society for International Development (SID) warned: “Unless global economic solutions are prioritised to ensure developing countries have the fiscal space to respond to the crisis, the consequences will be devastating with millions being pushed back into extreme poverty.”
More trade, less aid: EU and Africa renew their relationship (The Brussels Times)
The European Union and the African Union are looking to renew and strengthen their relationship, from aid donor and -recipient to equal trade partners. Both the EU and the AU made it clear at the Africa-Europe Civil Society Conference 2020 on Friday that they are looking to renew the quality of the Africa-Europe Partnership in the near future, with higher involvement for the people of the two continents. In the short term, tightening the EU-AU relationship will result in more support for African health systems in light of the coronavirus pandemic.
EU and Africa team up on taxing Big Tech (POLITICO)
Europe and Africa are teaming up to push for international rules for taxing tech giants in the face of American skepticism and the economic crisis caused by the coronavirus pandemic. The Organisation for Economic Co-operation and Development on Monday is set to publish technical blueprints on how to tax digital companies across borders, like Facebook, Amazon and Google. The plans consist of two pillars: one aimed at ensuring big digital and multinational companies are taxed in the places where they generate profit – not where they book them. The second pillar aims to set a global minimum corporate tax rate.
Brexit: Door ‘still ajar’ for EU trade talks, says Gove (BBC News)
The door is “still ajar” for talks with the EU over a post-Brexit trade deal but only if it moves ground in key areas, Michael Gove has said. He said the EU must speed up the negotiations and offer better terms. It comes as the EU’s chief negotiator Michel Barnier will not travel to London for talks tomorrow but will join “remotely, as planned”, his team said. Negotiations between the UK and the EU have stalled amid disagreements over fishing access and competition issues. The EU has said it is prepared to “intensify” talks but it would not agree a deal at “any price”.
WTO DG: Okonjo-Iweala gets the backing of 79 countries so far (Nairametrics)
Nigeria’s candidate for the vacant World Trade Organization (WTO) Director-General post, Ngozi Okonjo-Iweala, has expressed confidence in her quest to lead the crisis-ridden global trade organization after all of Africa backed her candidacy, vowing she would champion reform. This disclosure was made by Nigeria’s former Finance Minister at a virtual press briefing on Friday, October 17, 2020, after 55-member African Union officially supported her over the sole remaining opponent, Yoo Myung-hee of South Korea.
World Bank says financial crisis likely from pandemic, China not fully committed to debt relief (Nairametrics)
The World Bank has warned that the coronavirus outbreak is turning into a major economic crisis and could likely see the emergence of a financial crisis from the pandemic. This disclosure was made by the World Bank Chief Economist, Carmen Reinhart, during an interview with Bloomberg Television. Reinhart during the interview said, “This did not start as a financial crisis but it is morphing into a major economic crisis, with very serious financial consequences. There’s a long road ahead.”
Expo chance for Kenya to improve trade with China (Nation)
The third annual China International Import Expo (CIIE) is set for Shanghai early next month as planned. The staging of the event is emblematic of China’s triumph over Covid-19 and a demonstration of the confidence in the vitality of the Chinese economy. Kenyan enterprises have participated in the previous CIIE and will leverage this edition to further scout for export opportunities to China.
Report discusses challenges, options as world continues to drive decarbonisation agenda (Engineering News)
While the global shift from fossil fuels to renewables is helping new ecosystems and technologies to emerge, many of the pursued steps towards decarbonisation pose unique challenges. Deloitte’s newest global report – titled “The 2030 Decarbonisation Challenge: The Path to the Future of Energy“ – explores potential strategies and tactics for how companies in the energy and resources industry, that intend to achieve carbon neutrality by 2050, can accelerate decarbonisation
Negotiations on domestic regulation disciplines for services “very advanced” – Chair (WTO)
A total of 62 WTO members are currently engaged in discussions to develop new disciplines on domestic regulation in services trade. These disciplines apply to licensing and qualification requirements as well as procedures and technical standards for trade in services. The objective is to create good regularity practices that mitigate any unintended trade-restrictive effects of procedures for authorizing the supply of services. The Chair, Jaime Coghi Arias of Costa Rica, stressed the participants’ objective of finalising the negotiating text by the end of the year. “Achieving an agreement on outstanding drafting issues as soon as possible would be of critical importance,” he said.
WHO lends support to IP-waiver proposal from South Africa, India (@businessline)
The World Health Organisation (WHO) has lent its support to a proposal from South Africa and India to the World Trade Organization (WTO) seeking a waiver on certain intellectual property (IP) provisions that could come in the way of access to medicines, vaccines and devices developed to tackle the novel coronavirus. The support comes even as the recently-concluded TRIPS Council meeting failed to reach a consensus on the issue, setting it up for informal consultations for resolution by the year-end. The TRIPS Council is responsible for implementing the TRIPS (Trade-related Aspects of Intellectual Property Rights) agreement.
African migrants’ overwhelm not Europe/America, but each other’s countries: IOM (Ethiopian Press Agency)
African migrants’ destinations are overwhelmingly not to Europe or North America, but to each other’s countries, said the International Organization for Migration (IOM). African migration in the 21st Century takes place mainly by land, not by sea. The report released on Thursday by IOM and the African Union Commission (AUC). It is the first continent-specific report on migration and is being released during a virtual meeting bringing together policymakers, experts on migration and UN partner agencies.
COVID-19 crisis puts migration and progress on integration at risk (OECD)
Migration flows have increased over the past decade and some progress has been made to improve the integration of immigrants in the host countries. But some of these gains may be erased by the COVID-19 pandemic and its economic fallout. Governments need to secure the health and safety of all workers in essential activities and maintain spending on integration to help migrants continue to contribute to society and the economy, according to a new OECD report. The OECD International Migration Outlook 2020 says that the COVID-19 crisis has had unprecedented consequences on migration flows.
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SA recovery plan to improve economic growth (SAnews)
South Africa’s new Reconstruction and Recovery Plan should help unlock greater job creation and faster economic growth. “The plan contains many practical initiatives which together should improve the underlying investment environment and unlock greater job creation and faster economic growth. Much now depends on how quickly the specific measures proposed in the plan can be implemented,” Nedbank economists said. Infrastructure is a key element of the plan announced by President Cyril Ramaphosa with the Infrastructure Fund due to provide R100 billion in catalytic finance over the next decade, leveraging as much as R1 trillion in new investment for strategic infrastructure projects.
South Africa Revenue Service announces new trade facilitation measures (Logistics Update Africa)
South Africa Revenue Service (SARS) has announced a revision in the customs declaration process where all bonded goods imported into South Africa must be under sealed containerised conditions. According to section 64D of the Act, the removal of goods in bond states that no person, except if exempted by rule, can remove any goods in bond, or for export, or any other goods that may be specified by rule, unless licensed as a remover of goods in bond. SARS has stated that the amendments to section 64D of the Act does not, and will not, affect and/or influence the declaration process of cargo that is to be transported, nor will it affect and/or influence importations, exportation or transit cargo.
Calls for South Africans to buy local to reignite growth (SAnews)
If South Africa is to adopt the right localisation policy at a larger scale, about 3.2 percentage points could be added to the country’s annual GDP, says President Cyril Ramaphosa. This policy would include manufacturing 10% of goods locally, as well as supplying 2% of goods that African countries buy from outside the continent. “If we were to manufacture just 10% of these goods locally, it is estimated that we could add 2 percentage points to our annual GDP. “The rest of Africa currently imports R2.9 trillion worth of manufactured goods from outside the continent each year. “If South Africa were to supply just 2% of those goods, it would add 1.2 percentage points to our annual GDP,” he said.
Namibia: Covid-19 a Wake-Up Call – Mbumba (New Era)
Vice-President Nangolo Mbumba has said that the ongoing Covid-19 is “a wake-up call” and the SADC region’s members of parliament must adapt to the new norm. He made the remarks when he officially opened the virtual 47th Plenary Assembly Session of the SADC Parliamentary Forum last Friday. “It is evident that the Covid-19 pandemic is a wake-up call to all of us - governments, parliaments and the citizenry all over the world. In the rude rush to respond to the novel pandemic, in some instances, responses were knee-jerk and suffered from experimentation,” Mbumba said.
Kenya Economy Shrinks for First Time in 12 Years on Covid-19 (Bloomberg)
Kenya’s economy contracted for the first time in almost 12 years in the second quarter as the impact of the coronavirus pandemic battered key sectors. Gross domestic product fell 5.7%, compared with growth of 4.9% in the three months through March and expansion of 5.3% in the same period a year earlier, the Kenya National Bureau of Statistics said Thursday on its website. The median of six economists’ estimates in a Bloomberg survey was for a contraction of 2.3%.
Kenya drops four places in investment attraction ranking (Business Daily)
Kenya has dropped four places in the index that measures the capacity of countries to attract local and foreign investments, a new report has shown. The fourth edition of Absa Africa Financial Markets Index 2020 show Kenya lost seven points to score 58 out of 100 points, placing it at the seventh position from last year’s third. Four countries – Nigeria, Botswana, Namibia and Ghana – leapfrogged Kenya to join South Africa and Mauritius who retained top two positions with 89 and 79 points respectively.
Kadaga wants ‘board of directors’ appointed to implement Sugar Act (pmldaily.com)
Speaker Rebecca Kadaga is committed to ensuring that there is funding that is needed for the implementation of the Sugar Act 2020. According to her, a board of directors should be appointed according to the law which needs funding for adequate implementation. “We are going to ensure that during this budget cycle, we make a provision for some money to start the board and the other activities,” said Kadaga.
South Sudan abandons plans to introduce new currency (CGTN Africa)
South Sudan said it has reversed its plans to introduce a new currency as the pound continues to depreciate against the U. S. dollar and other major currencies due to the economic crisis. Michael Makuei Lueth, minister of Information and Broadcasting, said the move to change the local currency was only a mere proposal by the economic crisis management committee as a means to salvage the economy from further collapse but was not agreed and passed by the cabinet.
Zambia’s debt crisis worsens (The East African)
Zambia’s debt situation seems to be deepening with some commercial creditors “refusing” to grant it some relief it has been seeking to ease the pressure, the country’s Parliament heard late Thursday. “Although we have obtained some relief under the debt service suspension initiative (DSSI) window, particularly from official creditors, engagements with commercial creditors, have not yet yielded the expected results. This is because these creditors were concerned that we were not treating all creditors equally,” Finance minister Bwalya Ng’andu told the House in a statement.
Gambia: Reopening of Land Borders! (The Point)
The closure of borders between The Gambia and Senegal has impacted negatively thus amounting to huge economic losses in both countries economies. It was in late March when the two countries closed its borders as part of measures to stem the rise of coronavirus in both countries. This has caused hardship and challenges to many businessmen and even travelers in these countries. The Gambia is getting prepared for the reopening of its borders planned for this Thursday. Many welcome this development as they prepare to continue their daily activities across the two country’s borders.
In a landmark ceremony, held under the auspices of HE President of the Republic of Djibouti, Ismail Omar Guelleh, Djibouti inaugurated the regeneration project to turn the Historical Port of Djibouti into an international business district. The regeneration will see the historical port transformed into a district called the East Africa International Special Business Zone, which will take place in six phases. The development of an international business district will advance Djibouti’s Vision 2035, the national development strategy to maximise the country’s geostrategic position.
FEC approves 1.6bn for e-Government Procurement Platform to check corruption (Pulse Nigeria)
“E-government procurement is a global trend and from the research carried out by the World Bank, it had been established that countries that have taken off with e-government procurement have witnessed exponential economic growth and they have stimulated ICT in those countries. “It will reduce corruption to the barest minimum because it will reduce the human interface within the process. The overall cost is about N1.6 billion,” he said.
Africa
AfCFTA To Commence On January 1 As planned (Modern Ghana)
Mr Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA) said the AfCFTA Secretariat was targeting January 2021 for the commencement of the implementation of the free trade agreement following its postponement due to the outbreak of the COVID-19 pandemic. Mr Mene said this ahead an engagement with the diplomatic community from Africa Member States based in Accra. “We are looking to the agreement mechanisms for the removal of non-tariff barriers to trade on the African Continent,” he said. “We will have to work with the various countries to put in place the requisite tariff infrastructure and customs’ administration infrastructure for the new agreement,” he said.
Business-boosting African Trade Observatory (ATO) to start virtual demonstrations (African Union)
The African Trade Observatory (ATO) – a mechanism being implemented by the International Trade Centre (ITC) to help the new African Continental Free Trade Area (AfCFTA) function when it goes live in 2021 – has begun testing the online dashboard to give real-time trade statistics to African users. Such information will include intra-continental trade flows (traded values, traded quantities, the use of tariff preferences, taxes and fees paid at the border), and information on market conditions (such as taxes applicable at the border and regulatory requirements).
AfCFTA: North African Representatives Call for Accelerated Negotiations on E-Commerce (UNECA)
The ECA Office for North Africa held on Wednesday 14 October 2020 a webinar on the African Continental Free Trade Area (AfCFTA) and the mitigation of the COVID-19 Impact on trade strategies in North Africa. The meeting provided representatives of trade ministries, private sector representatives and academics from Algeria, Egypt, Libya, Mauritania, Morocco, Sudan and Tunisia with an opportunity to share their experiences in using national trade strategies to mitigate the impact of the pandemic on populations’ health and access to food, as well as the pandemic’s repercussions on foreign trade. Participants observed that COVID-19 has disrupted supply chains and international trade, triggering a reorganisation of international trade and increased protectionism.
African Union launches the first edition of the Africa Migration Report in collaboration with IOM (African Union)
Cognizant that, the bulk of migration almost 80% in Africa is intra-continental, and conscious of the need to better understand and manage the migration phenomenon for the benefit of the continental aspirations articulated in Agenda 2063, the African Union Commission in partnership with the International Organization for Migration (IOM) with the support of the USA and Switzerland launched virtually the first ever edition of the Africa Migration Report. The first edition, therefore, seeks to provide additional perspectives that ensure a more complete understanding of this complex phenomenon, thereby correcting misconceptions regarding African migration.
SB Moyo speaks on Tripartite agreement (The Herald)
Zimbabwe is in the process of coming up with its development strategy within the context of implementing the Tripartite Free Trade Area incorporating the Common Market For Eastern and Southern Africa, the East African Community and the Southern African Development Community, whose trade agreement was signed in June 2015, legislators heard yesterday. Foreign Affairs and International Trade Minister Sibusiso Moyo said implementation of the agreement was on course and Zimbabwe could capitalise on its highly skilled labour to benefit from it.
Innovative research on preferential trade arrangements in Africa reviewed by Experts (UNECA)
The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) hosted the third of a series of five virtual experts group review meetings on innovative new research on preferential trade arrangements in Africa. The study is the widest in scope, covering all African sub-regions, and providing an overarching framework for the ECA-OACPS project to assess issues related to preference utilization in Africa and identify areas for improvement. The objective was to evaluate the extent to which African businesses are utilizing the trade agreements available to them, with a specific focus on shining light on the challenges African producers face with trading agreements ‘within’ Africa, which is an under-studied area.
Hundreds of trucks parked at borders stall African trade pact (Engineering News)
Hundreds of trucks have been parked at Benin’s border for more than a year since its eastern neighbor Nigeria abruptly curbed imports. To the west of Benin, officials in Ghana’s capital have shut Nigerian-owned stores to comply with a law that curbs foreign participation in its retail trade. Such actions embody the hurdles that must be overcome if Africa is to fulfill its vision of instituting a continental free-trade agreement. For now, protectionism remains the name of the game for West Africa’s economic powerhouses, whose governments are preoccupied with overcoming the devastation wrought by the coronavirus.
Kenya Intervenes In Busia, Malaba Border Crisis (New Vision)
The Kenyan government has intervened to address a huge hold-up of cargo trucks at the Malaba and Busia border posts. Over 2,500 cargo trucks heading to Uganda are held up on the Kenyan side of the border posts due to lack of COVID-19 testing reagents. Ugandan importers were incurring huge losses after their cargo remained at the border for days.
The Republic of Congo signed the Treaty for the establishment of the African Medicines Agency (AMA) (Social News XYZ)
The Republic of Congo becomes the eighteenth AU member state that have signed the Treaty for the establishment of the African Medicine Agency (AMA) on 15 October 2020, Addis Ababa, Ethiopia. The Agency will regulate the access to safe, effective, good quality and affordable essential medicines and health technologies. AMA will do this through coordination of on-going regulatory systems, strengthening and harmonizing efforts of the AUC, RECs, Regional Health Organizations (RHOs) and member states, providing regulatory guidance.
ECA and Partners discuss conducive Energy Regulatory Environment to attract investment (UNECA)
The Energy sector experts from the government of Rwanda, the UN Economic Commission for Africa and the RES4Africa Foundation held a virtual meeting to discuss the Rwanda Energy Policy and Regulation related to attracting the participation of the Private Sector. Ms Mama Keita, Director of ECA in Eastern Africa stressed the importance of the energy sector to boost development across Africa, stating that investment in energy infrastructure at both the national and regional levels is required for future economic growth and prosperity on the continent.
Nigeria approves to contribute USD 2 million for 2020 budget of West African Power Pool (Devdiscourse)
The Government of Nigeria has approved its contribution of USD 2 million to the 2020 budget of the West African Power Pool (WAPP), according to a news report by Daily Trust. He said: “The pool is about trying to have coordination and synergy among West African countries. This decision has been taken by ECOWAS. It’s for the generation of electricity throughout the region so as to have a robust, constant, and steady power supply. It’s just like the national grid we have here in Nigeria. Now, we want to have a regional grid. It means in case there is a failure in one country, another can supplement it.”
International
Boris Johnson says UK should prepare for no deal with EU (Evening Standard)
Boris Johnson has said that the EU has “abandoned the idea of free Brexit trade deal” and that the UK should prepare for an Australian-style solution – Downing Street language for no-deal – in the post-Brexit trade talks. The Prime Minister put the country on notice that its EU departure at the end of the transition period on December 31 could be without a trade deal with the European bloc. Such a scenario would leave businesses facing tariffs and quotas to trade with the European bloc, and transport delays could see some food shortages, a supermarket chief warned.
New African oil pipeline traces a regional divide on energy policy (Upstream Online)
A new 1950-kilometre pipeline being built by China National Petroleum Corporation to carry crude from Niger’s Agadem basin to Port Seme in Benin will cut through a well established Sub-Saharan Africa oil region and will serve as a symbolic barrier of sorts marking vastly different approaches to the oil and gas industry. Challenges are not unknown in Niger, Benin and Nigeria, which the new pipeline will traverse. But the three nations are mostly business friendly and relatively welcoming to international companies.
COVID-19 Spells Trouble for China in East Africa (The Diplomat)
On September 22, a report by the Kenyan Parliament’s transport committee made it abundantly clear that the East African country is struggling to meet its commitments on the Standard Gauge Railway (SGR), a flagship infrastructure project of Kenya-China engagement that is mutating into a critical test beyond the bilateral relations. As a result of the global economic circumstances due to the COVID-19 pandemic, the report makes the case for the government not only to renegotiate the terms of the loan provided by Chinese lenders but also to try to slash operational costs by at least 50 percent.
New WTO report looks at the global intellectual property system and COVID-19 (WTO)
The WTO Secretariat has published a new information note about how the global intellectual property (IP) system relates to the COVID-19 pandemic and potential contributions it could make to efforts to address it. The note provides an overview of IP-related measures taken by WTO members and other stakeholders since the start of the crisis.
pdf The TRIPS Agreement and COVID-19: WTO Information Note (233 KB)
EU summit focuses on ties with Africa (Anadolu Agency)
The second day of EU leaders’ summit on Friday will focus on relations with Africa. “Today, we’ll have the opportunity to tackle the international relations, especially our future relationship with Africa. In December, we’ll have in Brussels an important meeting with the African Union,” Charles Michel, president of the European Council, said in a doorstep statement. “It will be the occasion to renew our partnership and even our alliance with Africa, this alliance is natural for geographic reason, for historical reasons, for cultural reasons. There is a huge potential, if we take, together with the African leaders, the right decisions,” he added.
Kenya, US seek to strengthen trade ties (The Star)
Kenya and the United States continue to seek ways to transform their trade and investment partnerships in ways that can accelerate economic growth and have a deep impact on peace and development in Kenya and, indeed, in the East African region.The upcoming Free Trade Agreement with United States holds great promise for a much more invigorated trading regime between the partner countries. Nothing sends a powerful signal for growing and better trade relations than a partnership built around a stable and progressive political environment devoid of any threats, particularly those of terrorist elements such as Al-Qaeda and its affiliates including, Al Shabaab.
Turkey-South Africa trade to rise in post-pandemic period (Anadolu Agency)
Bilateral trade and investments between Turkey and South Africa are expected to grow as the two countries recover from the effects of the novel coronavirus, the Turkish ambassador to South Africa said. “I am confident that bilateral investments will further improve as our economies recover in the post-COVID-19 period and as growth prospects improve,” Elif Comoglu Ulgen, Turkey’s ambassador to South Africa, said in an interview with Anadolu Agency. Ulgen said she is hopeful that with the African Continental Free Trade Agreement (AfCFTA) becoming effective soon will further increase the investment attractiveness of South Africa to Turkish businesses in the near future.
Only 28% of air cargo industry prepared to move Covid-19 vaccine (ITLN)
TIACA together with Pharma.A ero on Wednesday expressed strong concern over the current state of air cargo readiness for the upcoming Covid-19 vaccine transportation, with only 28 percent of the industry feeling well prepared for it today. As compared to companies which are already in close engagement with vaccines manufacturers, companies not involved in direct conversations with the manufacturers felt the least prepared for the upcoming logistics challenge of vaccines transportation.
Morocco amends trade agreement to curtail Turkish imports (The Arab Weekly)
The Moroccan government imposed further restrictions on products manufactured in Turkey for a period of five years. It also imposed strict restrictions on Turkish store chains in Morocco, and warned it would close them if they do not comply with measures aimed at promoting Moroccan industry. Under the new measures, customs duties on textiles bearing Turkish seals will increase by 90% The agreement also stipulates that the Moroccan side will not apply any other duties on imports of Turkish origin, except those covered under articles 18 and 19 of the free trade agreement between the two countries.
What developing countries can teach us about how to respond to a pandemic (The Conversation)
Nine months into the pandemic, Europe remains one of the regions worst affected by COVID-19. Ten of the 20 countries with the highest death count per million people are European. The other ten are in the Americas. Most of Africa and Asia, on the contrary, still seems spared. Of the countries with reported COVID-related deaths, the ten with the lowest death count per million are in these parts of the world. When it comes to managing infectious diseases, African countries show that experience is the best teacher.
Regional development banks play a critical role in COVID-19 response and recovery (Atlantic Council)
During the week of October 12, the World Bank and International Monetary Fund (IMF) met virtually for their 2020 Annual Meetings as the COVID-19 pandemic continues to spread around the world, sickening and killing millions, forcing 1.5 billion children and young people from schools and advanced education, devastating economies, and pushing millions in poverty as lockdowns closed businesses and put workers out of work.
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National
Amid SA’s economic gloom, exports boom thanks to gold price, citrus (Business Insider SA)
South Africa’s economy is expected to shrink by 8% this year due to the pandemic, but there’s one unlikely bright spot: exports.In August, the value of South African exports amounted to R130.2 billion – the largest number on record. This is largely due to the rocketing price of gold, which has gained 23% over the past year as Covid-related uncertainty unnerves investors across the world. Another export highlight was citrus. In July and August, South Africa exported almost R8 billion in citrus, according to SA Revenue Services. This was thanks to a solid local harvest – but also strong demand, especially in Europe, for vitamin C as the coronavirus caused consumers to become more conscious of protecting their immune systems. In all, South Africa may export almost 10 billion pieces of citrus fruit this year, in what is expected to be one of the best seasons on record.
pdf Trade negotiations, implementation and relations: dtic Presentation - 13 October 2020 (552 KB)
Presentation to the Portfolio Committee on Trade and Industry by Ambassador X Carim, DDG Trade Policy, Negotiations and Cooperation, 13 October 2020. Outline: Guiding Principles; African Economic Integration; SACU, SADC, TFTA, AfCFTA; Trade Relations with the EU: SADC-EU EPA; Trade Relations with the UK: SACUM-UK EPA; SACU-EFTA FTA; SA-US Trade Relations; BRICS; and SA Approach to MTS/WTO
Ramaphosa under pressure to outline decisive plan to boost SA economy (Eyewitness News)
With President Cyril Ramaphosa expected to table government’s economic recovery plan on Thursday, he is under pressure from all quarters to come up with bold and decisive action rather than more rhetoric and promises. Ramaphosa is expected to address a joint sitting of both houses of Parliament at 2pm and it will be broadcast live. Cosatu’s Matthew Parks agreed it was time for Ramaphosa to show his hand. “We’re in the worst economic crisis in 100 years, we have lost 2.2 million jobs in the last quarter, we’ve pushed past 51% unemployment, we are in serious danger of heading into economic depression unless government decisively intervenes with the assistance of the private sector to get the economy out of its deep hole to create jobs, rebuild the state, deal with corruption, and collapsing SOEs, particularly Eskom,” Parks said.
Zimbabwe’s debt stifling its economy (The East African)
Experts are warning that Zimbabwe’s appetite for Chinese loans is pushing the country’s foreign debt to unsustainable levels. According to former finance minister Tendai Biti, who held the post between 2009 and 2013 when Zimbabwe made some steady progress towards clearing its foreign debt, President Emmerson Mnangagwa’s government contracted a staggering $2.5 billion in external debt between July 2019 and July this year. This has pushed Zimbabwe’s external debt to $4.8 billion.
Kenyan county revenues drop Sh4.6bn on Covid heat (Business Daily)
Revenue collection by counties for the year ended June dipped by Sh4.55 billion in the wake of restrictions imposed to curb the spread of the coronavirus disease, new data shows. The Controller of Budget (CoB) says that Sh35.77 billion was raised in the period, reflecting an 11.2 percent fall from Sh40.3 billion a year earlier. The restrictions in the last quarter of the year hurt businesses where counties rake in billions from rates, cess and parking fees. Kenya imposed a dusk-to- dawn curfew in March, banned movement into and out four counties including Nairobi and Mombasa and suspended international flights after recording the case of Covid-19 infection.The directives forced traders and motorists to stay at home, businesses to close and others reduced operating hours, leaving counties with reduced revenue streams in the race to hit their annual collections targets.
Kenya to prioritize environmental conservation in industrial drive (China.org.cn)
Kenya will prioritize environmental conservation in its industrialization agenda as part of efforts to support sustainable development, a government official said on Wednesday. Francis Owino, principal secretary, State Department for Industrialization said in Nairobi that climate change is one of the greatest threats faced by the country and has the potential to negate socio-economic gains made by the government. “Even as we push for industrialization, we will adopt environmental standards to safeguard the quality of air, water and soil,” Owino said during celebrations to mark the World Standards Day.
Uganda’s exports to Kenya fall amid border delays (The Star)
Imports from Uganda to Kenya dropped in August due to border delays and reduced economic activities in the wake of Covid-19. Uganda exports to Kenya stood at $46.9 million (Sh5.1 billion)as of August 2020 a slight decline from $48.3 million (Sh5.2 billion)the same period last year, according to the Uganda Bureau of Statistics. On the other hand, the value of Kenya’s exports to Uganda increased to $88 million (Sh9.6 billion) a jump from $53.9 million (Sh5.9 billion )in the same period last year, even as delays at the Malaba and Busia borders continue to affect cargo movement.
Responsible tourism in Tanzania, recommendations for COVID-19 recovery (Trade4Dev News)
With numerous major natural tourist attractions, Tanzania is feeling the impact. The World Bank’s 14th Tanzania Economic Update (TEU) forecasts economic growth to slow to 2.5% in 2020, from the 6.9% growth reported in 2019. Tourism operators in Tanzania are forecasting revenue contractions of 80% or more in 2020. And nationwide, the crisis could push 500,000 Tanzanians below the poverty line, with those employed in the informal economy likely to be impacted the most. According to a Government of Tanzania study on the impacts of COVID-19 on the tourism sector, without the pandemic, the 2020 season would have attracted approximately 1.9 million tourists and generated US$2.9 billion of forex.
Tanzania investors study Malawi’s investment, trade potentials (The Citizen)
Members of the business community in Tanzania are working on a special strategy that would enable the country to best utilise the trade and investment opportunities that are available in neighbouring Malawi. Grouped under the auspices of Tanzania Private Sector Foundation (TPSF), the business community believes Malawi has numerous untapped potentials in the areas of commercial agriculture, manufacturing and mining that could be utilized for the benefit of the peoples of both countries. The strategy, according to the acting TPSF chairperson, Ms Angelina Ngalula, would take into account the business environment in Malawi and come up with a database of potential business and investment areas. “The strategy will make it easy for Tanzanians to understand the business environment there. It will entail potential areas of doing business, including costs of establishing a business or factory, taxes and other matters,” she said yesterday.
Rwanda approves cannabis production for export (The East African)
Rwanda has approved the cultivation and export of cannabis even as the use of the stimulant for medical or recreational purposes remains illegal in the country. The government is targeting to grow its export earnings from the global cannabis market valued at the $345 billion according to analysts New Frontier Data. The decision has caused confusion with some warning it could be detrimental to the youth if tough controls are not enforced.
Mauritius holds national AfCFTA strategy consultations on October 15 (UNECA)
Mauritius, with the support of ECA, will organize a national consultative meeting on Thursday 15 Oct. to guide the development of the country’s African Continental Free Trade Area (AfCFTA) implementation strategy. Scheduled for the capital city Port Louis, the meeting is expected to kick-start reflections on how Mauritius can seize the opportunities of the AfCFTA to deepen its level of trade integration with the rest of Africa. The collaboration comes under the mandate of the Commission through the African Trade Policy Centre to help AfCFTA member-states to prepare for the agreement’s implementation to start next year.
Equatorial Guinea: Oil production drops in September to 103,000 barrels (Macau Business)
Daily oil production in Equatorial Guinea fell in September to 103,000 barrels, a drop of 15,000 barrels a day, according to data released by the Organisation of Petroleum Exporting Countries (OPEC).OPEC’s latest monthly report, published on Tuesday and based on secondary sources from the organisation, shows that oil production in Equatorial Guinea fell in September after high results in August. In the last 20 years, the exploitation of oil resources has been the main pillar for the growth of this economy. To avoid a high dependence on oil exploration, the African Development Bank (AfDB) committed last September to support economic diversification in the country through a program that will focus, among others, on agricultural transformation.
Urgent measures needed for private sector to green Cameroon’s economy (UNECA)
Cameroon’s private sector is currently ill-prepared to leverage a spate of opportunities offered by the green economy but a comprehensive set of measures which Government should spearhead, can turn the issue around, says a new study being finalized by the United Nations Economic Commission for Africa (ECA). The “Study on Leveraging the Potential of the Private Sector to Stimulate Green Growth and Job Creation in Cameroon” explores five sectors in which both government and the private sector should focus for maximum results. They are: energy, agriculture, and manufacturing, waste treatment and forest resource management.
IFC and AATIF Invest in Senegal Onion Plant to Boost Agriculture and Jobs in the Country (IFC)
IFC, a member of the World Bank Group, and the Africa Agriculture and Trade Investment Fund (AATIF) today announced an investment to help Société Africaine d’Ingrédients (SAF Ingrédients) build an onion dehydration plant in Senegal—the first in sub Saharan Africa—that will create hundreds of jobs and boost the country’s agriculture exports. The unique project involves decommissioning an existing onion dehydration plant (built in 2003 and closed in 2014) near Dijon, France, and relocating it to St. Louis in northern Senegal. Support from IFC and AATIF will also help SAF Ingrédients develop a 760-hectare onion farm and establish a large out-grower network of onion farmers.
Africa
The African Continental Free Trade Area: development accelerator or more of the same? (How We Made It In Africa)
Economic growth, industrialisation, sustainable development, regional cooperation and integration in Africa are just a few of the desires and expectations riding on the African Continental Free Trade Area (AfCFTA). At this time of Covid-19-induced economic and social woes, the AfCFTA has been hailed as a continental comeback strategy, and as a way for Africa to reposition itself on a global stage. The formation of new markets, the projections for higher employment numbers, more diverse products and the stimulation of industrialisation pathways are part of the vision for the AfCFTA as African economic integration is realised.
Business-boosting African Trade Observatory (ATO) to start virtual demonstrations (Africanews)
An online tool designed to help businessmen and businesswomen in Africa understand how best to trade between African countries came a step closer to becoming fully operational in August 2020 as a demonstration version came onstream. The African Trade Observatory (ATO) – a mechanism being implemented by the International Trade Centre (ITC) to help the new African Continental Free Trade Area (AfCFTA) function when it goes live in 2021 – has begun testing the online dashboard to give real-time trade statistics to African users. Such information will include intra-continental trade flows (traded values, traded quantities, the use of tariff preferences, taxes and fees paid at the border), and information on market conditions (such as taxes applicable at the border and regulatory requirements). The transfer of raw data from providers to the ATO team will be automated where possible to make the collection of quantitative information sustainable.
Stalled Trucks at Borders Cast Pall on African Free Trade Pact (BloombergQuint)
Hundreds of trucks have been parked at Benin’s border for more than a year since its eastern neighbor Nigeria abruptly curbed imports. To the west of Benin, officials in Ghana’s capital have shut Nigerian-owned stores to comply with a law that curbs foreign participation in its retail trade. Such actions embody the hurdles that must be overcome if Africa is to fulfill its vision of instituting a continental free-trade agreement. For now, protectionism remains the name of the game for West Africa’s economic powerhouses, whose governments are preoccupied with overcoming the devastation wrought by the coronavirus.
Africa: Networking to facilitate the financing of renewable energies (Afrik 21)
How to mobilise funds for the implementation of a dedicated clean energy project for the grid? This is a real headache for independent power producers (IPPs), especially the less experienced ones. To address this issue, the Renewable Energy Performance Platform (REPP) launched online networking sessions on October 13th, 2020. The aim is to enable IPPs to make contact with investors.
Truck drivers register on the digital cargo tracking system (KBC)
Over 50,000 truck drivers have successfully been uploaded to the Regional Electronic Cargo and Driver Tracking System (RECDTS) since it was rolled out in September. Principal Secretary State Department of East African Community Kevit Desai made the disclosure on Tuesday when he led a team from his Ministry and the private sector representatives to Malaba One Stop Border Post in response to complaints by industrialists that grain imports contained aflatoxin. The East African Community Secretariat and its Partner States rolled out the Regional Electronic Cargo and Driver Tracking System, designed as a mobile phone application to enable the issuance of the EAC Covid-19 digital certificates that are mutually recognized by Partner States.
Kenya approves move to set up EAC seamless airspace (The Citizen)
Kenya has moved the region closer to achieving an open airspace following the decision by the Cabinet to approve establishment, implementation and management of the East African Community (EAC) Seamless Upper Airspace. The development, which has been elusive for many years, comes at a time the call for creation of a common airspace has been getting louder from different stakeholders who have argued that the move will lower high cost of air transport in the region.
COMESA Regional Economy Poised to Shrink by 0.6% in 2020 (COMESA)
A report from the Fifth Trade and Trade Facilitation Sub-Committee meeting of COMESA which was held virtually has indicated that the region’s average growth slowed down in 2019 to 5.2% from 6.0% in 2018 and is projected to decrease to 0.6% in 2020. The slowdown in growth was experienced in most COMESA member countries except Egypt, Ethiopia, Malawi, Rwanda and Seychelles that registered improved economic growth in 2019 compared to 2018. The impressive growth of above 5% in both years in these countries, reflected among others, improving growth fundamentals, with a gradual shift from private consumption toward investment and exports
Notable Rise in Trade Barriers as Countries Responded to Covid-19 (COMESA)
There has been a notable increase in the number of Non-Tariff Barriers during the COVID-19 pandemic period as countries increasingly took discretionary measures to contain the spread of the virus. COMESA Director of trade Dr Chris Onyango told delegates attending the fifth Meeting of the COMESA Trade and Trade Facilitation Sub-Committee last week, 6-8 October 2020, that during the COVID 19 era, measures put in place by Member States have disrupted global value chains, radically reduced dependency on imports and rallied States towards the path of protectionism.
COVID-19, security and development take centre stage in Ministerial meeting of the African Union (AU)
The impact of the COVID-19 pandemic on the lives and livelihoods of the African citizenry, continues to be a matter of great concern on the continent. As the world contends with the “new normal” and continues to navigate through the destruction caused by the pandemic, Africa remains optimistic that the proactive initiatives undertaken since the outbreak of the pandemic in March 2020, have been effective in containing the spread of the virus and will enable the continent realize a gradual recovery of the socio-economic gains negatively affected by the pandemic. It is against this backdrop that the 37th Ordinary Session of the Executive Council of the African Union (AU) kicked off on 13 October 2020 with great optimism that Africa has an opportunity to reimagine an Africa post-COVID-19 and derive new ways of addressing the challenges of peace and security, socio-economic under-development, and poverty. The COVID-19 context prompted the holding of a virtual ministerial conference to enable the designated representatives of government from AU Member States to fully participate in the discussions from their respective capitals through the use of information technology.
pdf Speech of African Union Commission Chairperson, H.E. Moussa Faki Mahamat (46 KB)
pdf Opening Remarks by the Chairperson AU Executive Council, Dr Naledi Pandor (44 KB)
Amidst climate concern, stakeholders insist oil key to Africa’s future (The Guardian Nigeria)
Stakeholders in Africa’s energy sector have insisted that crude oil still has a major role in the continent’s future despite growing concern over climate change. The stakeholders, who gathered at the African Refiners Association (ARA) Week 2020, however, stressed the need for clean energy transition and climate change mitigation policies to address looming challenges. “It is important to note at this point that the future of our continent does not just lie in our ability to unlock value from our vast natural resources or powering an industrial and economic revolution, but also in our ability to implement proven refining solutions that consider the broader public health implications of our business decisions,” he stated.
International
EU’s priorities in Africa should be the same as in Europe, says MEP (euronews)
The EU is looking to reset relations with Africa and change the narrative from aid donor to equal trade partner. Brussels had planned to reboot the alliance this year but the coronavirus pandemic has so far derailed efforts. Beyond investment, politicians in Brussels are looking at ways to shake up their economic partnerships. Job creation is key to the new strategy, which will be discussed at this week’s EU summit. “We need to invest in the infrastructures, in the digitalisation and to invest in education that is key if we want to increase the employment rate,” said Jutta Uriplainen, EU commissioner for international partnerships.
The EU is Africa’s largest trade partner, but China is increasingly becoming a key player on the continent. Brussels has set aside €4.6 billion in guarantees for projects with public and private investors in Africa. The goal is to create 10 million jobs by 2023. “We need to guarantee that we advance in terms of trade, but at the same time we need to guarantee the protection of the natural resources, we need to guarantee a cooperation in terms of climate change and our priorities in Europe have to be the same in the agenda with Africa: equality, rule of law and democracy,” said Garcia.
Nigerian governor to address UK business leaders on Brexit opportunities (Bdaily Business News)
A Nigerian state governor will next month showcase the post-EU opportunities for UK companies in Africa’s largest economy – when he becomes the first African to address an influential group of British business leaders. Nigerian state governor to tell Institute of Directors: “There is a huge status to buying British in Nigeria, but in recent years, Britain has prioritised Europe in its trading relationships, allowing counties like China and Japan to take advantage. Brexit is the perfect opportunity to think again”.
Nigeria: Leading the World Trade Organization: The Case for Nigeria’a Okonjo-Iweala (The Street Journal)
The selection process for the leadership of the World Trade Organization in Geneva is down to two finalists. Both are women – Ngozi Okonjo-Iweala, Nigeria’s former minister of finance, economy and foreign affairs, and Yoo Myung-hee, the first woman to serve as South Korea’s minister of trade. Okonjo-Iweala, Africa’s candidate, is the better woman to revive the WTO. The institution has been weakened by great-power rivalry between the United States and China, a political assault on globalization that has been heightened by the Covid-19 global health pandemic. It also has faced increasing institutional irrelevance in recent years, as countries have tilted toward bilateral and regional trade deals following a breakdown in global trade negotiations.
World Bank president compliments Nigeria for tackling fuel subsidies (WorldStage)
Mr David Malpass, President of the World Bank Group, has commended the Federal Government for removing subsidies on petroleum products. He said this in Washington D. C. on Wednesday at the opening press conference for the World Bank at the ongoing 2020 International Monetary Fund (IMF)/World Bank virtual annual meetings. Malpass was responding to a question on whether the World Bank saw an opportunity or problem regarding the enormous youth population in Nigeria accompanied with rising unemployment and the burden of COVID-19.
IFC and Union Bank Partner to boost Nigeria’s trade finance (African Review)
IFC, a member of the World Bank Group, has announced a finance guarantee facility to Union Bank to boost access to finance for local business, enable increased international trade for Nigeria and help protect the country’s economy from the impact of the COVID-19 pandemic. The US$40 million facility, under IFC’s Global Trade Finance Program (GTFP), will support Union Bank to establish working partnerships with nearly 300 major banks within the GTFP network, thereby broadening access to finance and reducing cash collateral requirements for Nigerian businesses. The facility will enable the continued flow of trade credit into the Nigerian market at a time when imports are critical, and the country’s exports can generate much-needed foreign exchange.
Zambia’s debt demand shows limits of China’s chequebook diplomacy (The Africa Report)
Zambia’s request for blanket debt-service suspension from creditors edges the country closer to default and highlights the limitations of China’s debt diplomacy. The government has decided to ask all external creditors to agree to debt service suspension on the same terms, Zambia’s finance ministry said in a statement on October 13. The only foreign-currency denominated debt that Zambia will continue to pay is from multilateral agencies, plus debt for a few priority projects, the statement adds.
Is global logistics industry prepared to deliver Covid vaccines? Not quite (Business Standard)
The medical industry’s dash to produce the world’s first coronavirus vaccines in just a few months is heightening the urgency for the workhorses of global trade to be ready for the historic charge to defeat the disease. Only 28% of companies involved in supply-chain logistics feel well prepared to handle Covid-19 vaccines and 19% characterized their readiness as very unprepared, according to a survey released Wednesday that showed a wide swath between optimists and pessimists. The poll, conducted in mid-September by the International Air Cargo Association and Pharma.Aero, is part of an effort to coordinate widespread delivery of the immunizations.
World Bank avails more funding for global Covid response (Engineering News)
Some of the latest economic and poverty data from international institution, the World Bank, shows that “desperate inequality” is being caused by the Covid-19 pandemic and the subsequent economic shutdowns, which have led to recessions in various countries. While the recessions in advanced economies are less severe than what had been feared, in most developing countries is has become a depression, especially for the poorest, which may see extreme poverty, globally, rise by 150-million as early as 2021.
The international community has made substantial progress towards reaching a consensus-based long-term solution to the tax challenges arising from the digitalisation of the economy, and agreed to keep working towards an agreement by mid-2021, according to a Statement released today. The OECD/G20 Inclusive Framework on BEPS, which groups 137 countries and jurisdictions on an equal footing for multilateral negotiation of international tax rules, agreed during its 8-9 October meeting that the two-pillar approach they have been developing since 2019 provides a solid foundation for a future agreement.
Fiscal Policy for an Unprecedented Crisis (IMF Blog)
The COVID-19 crisis has devastated people’s lives, jobs, and businesses. Governments have taken forceful measures to cushion the blow, totaling a staggering $12 trillion globally. These lifelines have saved lives and livelihoods. But they are costly and, together with sharp falls in tax revenues owing to the recession, they have pushed global public debt to an all-time high of close to 100 percent of GDP. The October 2020 Fiscal Monitor examines countries’ experiences managing the crisis and discusses what governments can do in the different phases of the pandemic to save lives, reduce the impact of the recession, and revive growth and job creation.
As countries look inward, food security for developing nations becomes more important than ever (Finfeed)
Whether COVID leads to isolationist policy or protectionist policy is up for debate, what we do know is that countries from Egypt and Jordan to Pakistan, Taiwan and China are stockpiling agricultural commodities to boost strategic food stockpiles and protect their food supplies. Food stockpiling is a precautionary measure against potential disruptions that could be caused by COVID-19 outbreaks. “COVID-19 has forced consumers to shift from just-in-time inventory management to a more conservative approach which was labelled just-in-case,” said Bank of America Corp. analysts led by Francsico Blanch, head of global commodities. “The result is that consumers are holding more inventory as a precaution against future supply disruptions.”
G20 to extend debt relief for poor countries by six months (Eyewitness News)
G20 nations announced Wednesday a six-month extension to a debt suspension initiative for the world’s poorest countries ravaged by the coronavirus pandemic, triggering criticism from campaigners who said it did not go far enough. The 20 most industrialised nations had pledged in April to suspend debt service from the world’s most vulnerable countries through the end of the year as they faced a sharp economic contraction caused by the pandemic. The initiative will now be extended until the end of June next year, G20 finance ministers and central bankers said after a virtual meeting hosted by the group’s current president Saudi Arabia.
Nordic-African Business Webcast 2020 Told Africa Will Prioritise Digitisation Across Sectors (The Fintech Times)
Organised by the Norwegian-African Business Association, H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy, participated in the high level opening of the ‘Nordic-African Business Webcast 2020’, together with H.E. Ine Marie Eriksen Søreide, Minister of Foreign Affairs of Norway, Mr. Raymond Carlsen, CEO of Scatec Solarand and Mr. Samalia Zubairu, President and CEO of Africa Finance Corporation. The commissioner highlighted the need to invest in digitalisation in all sectors as high priority for the Continent, with an urgent need to scale up access to affordable energy as without it no development strategy can be deployed. The third priority area for Africa recovery is capacity development especially for youth, women and girls who are the African development actors to harness efficiently existing and future opportunities.
DDG Yi praises WCO-WTO partnership in implementation of Customs Valuation Agreement (WTO)
Global trade has grown and developed in ways that the negotiators of the Customs Valuation Agreement could never have foreseen. The reshaping of value chains will give rise to new and emerging business models and trade developments that in all likelihood will require further interpretation of the application of the Customs Valuation Agreement, at least at the technical level.
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African trade integration is still a far way off, envoy tells Parly (Fin24)
African states are progressing with trade regimes that are past due in a bid to bolster trade within the continent, Deputy Director General at the Department of Trade Industry and Competition’s Trade Policy, Negotiations and Cooperation branch Ambassador Xavier Carim told Parliament on Tuesday. “Although intra-Africa trade is low, Africa is by far the second-most important export market for most African countries, behind the EU. Seven African countries count Africa as their main export market and 25 count Africa as their second-most important market,” said Carim.
We need to move away from GDP as a measure of progress: Dr Mamphela Ramphele (BusinessTech)
The Covid-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming society into a more equitable, resilient and prosperous democracy that promotes the wellbeing of all people, according to academic and businesswoman Dr Mamphela Ramphele. She focused on three key issues in her virtual address: leadership in challenging times, the process of emerging from the Covid-19 crisis, and education as a platform for innovation and resilience.
Minister of Mineral Resources & Energy, Hon. Gwede Mantashe, sets out post-pandemic plan for South Africa’s energy sector (APO Group - Africa Newsroom)
Hon. Gwede Mantashe opened day two of AOW Virtual (7-8 October), an online summit from the team behind Africa Oil Week. In his address, Minister Mantashe did not shrink from addressing the devastating effects of COVID-19 on South Africa, having only recovered from the disease himself a few months previously. Though South Africa allowed the energy sector to operate at full capacity following the nationwide lockdown, a decrease in demand for petroleum products over an extended period meant some refineries were still forced to close.
Telecoms, imports push sh1trillion tax surplus in Uganda (New Vision)
The Uganda Revenue Authority (URA) realized sh1 trillion surplus in the first quarter of the financial year after telecoms and imports performed beyond expectation. The taxman collected sh4 trillion from July to September 2020 beating targets of sh2.99 trillion. International trade tax collections were sh1.7 trillion, performing at 138.87% with a surplus of sh479.79b. Compared to the same period last FY, and customs tax collections grew by sh23.93b (1.42%) year on year.
Eswatini Rail Link project progressing, developers say (Engineering News)
The Eswatini Rail Link (ESRL) project is on track to advance economic development and intra-African trade, the developers noted in a statement on October 12. The project is a joint inter-railway strategic initiative between Transnet Freight Rail (TFR) and Eswatini Railways (ESR) to create a dedicated general freight business (GFB) corridor for Transnet, while providing much-needed additional capacity for ESR. It is expected to be a catalyst for economic development, improve regional integration and promote intra-African trade.
Nigeria 2021 budget: Fireworks in Senate over rising deficit, borrowing (Daily Trust)
Senators engaged in a heated debate on Tuesday on the 2021 Appropriation Bill presented by President Muhammadu Buhari for consideration and approval. The fiscal document has a total revenue projection of N7.88trn with a deficit of N5.20trn. Senate Leader Yahaya Abdullahi (APC, Kebbi) said a budget deficit of this size, requiring more indebtedness, was not healthy for the long-term development of the country.
Manufacturers, importers accuse Customs of frustrating business at ports - LCCI (Maritime Info 247)
The Lagos Chamber of Commerce and Industry (LCCI), has called for urgent and imperative reforms for the Nigeria Customs Service (NCS), accusing the service of frustrating trade at seaport. “Customs processes and procedures for the clearance of cargo at the ports is one of the biggest challenges currently faced by the business community. It is severely hurting investors and adversely affecting economic recovery efforts. The situation calls for urgent intervention and reforms of the Nigerian Customs Service. There are issues of undue delays, weak application of technology, arbitrariness in valuation, impunity, uncertainty of international trade transactions, cost escalation, negative investment climate perception, ineffective mode of seeking redress, pervasive human interface, among others,” Dr. Yusuf said in a statement.
DPR Upbeat about Oil Reserve, FDI Inflow (THISDAYLIVE)
The Department of Petroleum Resources (DPR) has restated its belief in a brighter future for Nigeria’s oil and gas industry. The agency also expressed optimism about the realisation of the anticipated 40 billion barrels oil reserves and increased Foreign Direct Investments (FDIs) to the country. “Nigeria is positioned to optimally develop its oil and gas resources for the benefit of stakeholders who are the ordinary Nigerians. “Government’s target to increase our oil condensates and gas reserves by 2025 is realistic and achievable with the programmes and policies being put in place,” Director of DPR, Mr. Sarki Auwalu said.
Africa
We meet today under a “new normal” caused by the outbreak of the COVID19 pandemic. Indeed, the COVID-19 pandemic has over-stretched our already weak public health systems to it limits. The pandemic has also caused unimaginable impact to the socio-economic landscape thereby undermining the gains that we have made thus far. It came as no surprise therefore that the economic forecasts predicted that the Continent will experience a recession this year due to the COVID-19 pandemic, for the first time in over two decades.
The gains that we have achieved thus far in the successful implementation of the Joint AU Continental Strategy should galvanize us on as the Continent to continue to pool our resources until the scourge is defeated and beyond.
See also: pdf Speech of H.E. Moussa Faki Mahamat, Chairperson of the African Union Chairperson (46 KB)
It must be noted that this health crisis has dramatically exposed our weaknesses and amplified our fragilities. The state of our externally-oriented economies, denounced, since the 1960s, by many development economists, came to light. The inability of our industries to produce goods and services, whose importance has proved vital for the survival of our peoples, emerged as an unbearable structural weakness.
Specifically I’m referring to medicines, test kits, masks, single-use or multiple-use suits, respirators, ICU beds that we have, either received as donations or had to import, with all that this entails in terms of increased dependency but also in terms of foreign currency outflow. All of this proved challenging.
This health crisis is, therefore, an opportunity for a well thought-out and resolute reorientation of our manufacturing capacities by giving priority to import substitution, at a time when we are preparing to operationalise the African Continental Free Trade Area.
New investments to lead Africa agri-development (The Herald)
At a time when the rest of the world is re-thinking its approach to commercial agriculture, Africa has a clear opportunity to refresh its approach to the sector and become an emerging force. Big shifts are already happening in food production, land and water use, and the integration of agri-tech and product tracing. If African firms take an early lead during this transition, they will be well placed to compete globally by building enduring assets and commercial advantages beyond primary production. “Without continued advances in agricultural productivity, the whole project of African advancement is at risk,” according to Linda Manda, sector head agribusiness, corporate and investment banking at Stanbic Bank’s parent company, Standard Bank.
Covid-19 and AfCFTA: Africa’s path out of recession? (Oxford Business Group)
With a view to stimulating an economic recovery from the coronavirus pandemic, African governments are pushing ahead with plans to implement a continent-wide free trade zone, with a particular emphasis on e-commerce and digital payments. In late September Wamkele Mene, the secretary-general of the African Continental Free Trade Area (AfCFTA) Secretariat, told a business conference in South Africa that AfCFTA negotiations over e-commerce and digital trade would be fast-tracked, with Covid-19 heightening the need for an adequate legal and governance framework.
Uganda court decision rattles East Africa’s syndicated loans market (The East African)
East Africa’s nascent syndicated loan markets have been upended after a Ugandan High Court declared cross-border lending illegal if done without the permission of the Central Bank. The development could freeze an estimated $130 million worth of intra-EAC lending and undermine the on-going regional financial integration process. Kenya Bankers Association (KBA) said its members will, for the time being, approach syndicated loans with caution until the interpretation of the Ugandan law on the matter is clarified by the Court of Appeal.
Regional Research Forum to Unveil Interface Between Intra-COMESA Trade and the Continental FTA (COMESA)
The 7th COMESA Annual Research Forum will take place from 19 – 21 October 2020 and this year, the focus is how intra-COMESA Trade can be harnessed through interface with the African Continental Free Trade Area (AFCFTA). According to the COMESA Director of Trade, Dr Christopher Onyango, the theme is motivated by renewed impetus towards consolidation of a single continental market and the role of COMESA in the realization of this goal. COMESA is the largest economic bloc with a membership of 21 member States, a combined GDP of US$ 769 billion, a combined population of over 583 million and therefore a critical pillar in the realization of the African Economic Community.
EABC calls for Mutual recognition of COVID-19 Certificates among East African Partner States (Capital Business)
The East African Business Council (EABC) is calling for mutual recognition of COVID-19 certificates among East Africa Community (EAC) Partner States and restocking of reagents at border posts, to minimize traffic snarl-ups at the Busia and Malaba border posts. “It is very critical for transporters in the region to also embrace the recently launched Regional Electronic Cargo and Driver Tracking System (RECDTS) to improve the truck turnaround time and allow Partner States to electronically share truck drivers’ COVID-19 test results, thus minimizing the need for multiple COVID-19 tests in a single trip.”
‘Africa Must Think Continental, Focus on Wealth Creation’ (THISDAYLIVE)
The Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Ade Ayeyemi has reiterated the need for African countries to adopt a continent-wide approach to business and also focus on wealth creation. This, he said would make businesses in the continent to be relevant in the global value chain. The Ecobank CEO emphasised that, “no country is so poor that it has nothing to give and no country is so rich that it has nothing to receive. All of us must come together to become better.” Also speaking, the Executive Director/ Chief Executive, Nigeria Export Promotion Council (NEPC), Segun Awolowo, said with a market of 1.2 billion people and combined GDP of $3 trillion, there was huge potential for Nigeria to increase its export to Africa.
Tough times for Africa’s upstream oil and gas (African Business Magazine)
Getting upstream oil and gas projects off the ground in sub-Saharan Africa was challenging before the Covid-19 pandemic. Now the operating environment is even tougher, as the industry contends with labour restrictions, disrupted supply chains and the long-term impact on revenues and investment of the collapse in global demand for energy products. Global oil prices have recovered from their lows, with Brent crude trading at almost $40 in early September, up from lows of $20 in mid-April, indicating demand recovery that could bolster investment. It will still be a tough task. Most of the African oil and gas projects for which final investment decisions were originally planned for 2020 require an oil price of $40 and upwards – some much higher – just to break even.
Trans Gambia Corridor Strengthening Pavement Project, Others Launched (Foroyaa Newspaper)
President Adama Barrow, on a series of engagements had on Thursday 1st October, 2020 laid the foundation stone for the second phase of the 24kilometers road, Trans Gambia Corridor Strengthening Pavement project. The road, when completed in 18 months, is expected to boost trade between Gambia, Senegal and beyond. Furthermore, it will also help in the flow of busy traffic around that part of the country.
International
African trade to be impacted by No-deal Brexit and Covid-19 (Africa Feeds)
A No-Deal Brexit compounded by the COVID-19 pandemic could see UK GDP fall by 6% and lose £134 billion pounds annually according to The Outlook for Trade after Brexit report. The report forecasts the combined economic costs of Brexit and the COVID-19 crisis on the UK economy as well as addressing particular issues relating to exports of four key industries: automotive; consumer goods; healthcare; and technology.
Virusha Subban, Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg, noted that there was strong consensus that the years of deliberation around Brexit had added to the geopolitical and economic uncertainty of investing in Africa, especially when it came to finalising the terms under which African countries were going to trade with the UK after Brexit. This uncertainty has been exacerbated by the impact of COVID-19 on trade in the region, which resulted in a twin supply-demand shock, mass production shutdowns and supply chain blockages across the continent.
Zimbabwe: EPA with Britain ratified as re-engagement continues to bear fruit (The Herald)
Zimbabwe has ratified the Economic Partnership Agreement (EPA) with Britain that allows Zimbabwean exporters access to UK markets free of tariffs and quotas and is expected to boost trade and investment between the two countries as Government’s re-engagement drive continues to bear fruit. The ratification of the EPA follows the withdrawal of the UK from the European Union, meaning it can no longer trade under the Eastern and Southern Africa-EU EPA.
Close EU-Africa relations more important than ever, says Socialist group leader (EURACTIV)
The COVID-19 pandemic has highlighted the importance of strong EU-African relations, Iratxe García, the leader of the Socialist and Democrat group in the European Parliament, told EURACTIV as her political group launched its Africa week (13-15 October). “We are advocates of value addition and inclusion of Africa in the global value and supply chains; we have in the past, made input to this effect towards the EU-AFRICA strategy. We are of the strong belief that shifting economic models from extraction to manufacturing benefits both continents…. Having said that, it is also important to ensure that the natural resources are used to the benefit of the population, and not just a few.”
UNDP, UNCDF, Switzerland and Kenya Launch a New Initiative to Govern BigFintech for Greater Good (MarketScreener)
Regulators, UN agencies, market actors and officials from 10 countries will gather virtually on October 9th to launch the Dialogue on Global Digital Finance Governance, implementing one of the key recommendations of the UNSG Digital Finance Task Force, to catalyse international and corporate governance innovations to ensure BigFintechs benefit all. “Many positive developments have happened that align fintech with sustainable development, which need to be built upon. BigFinTechs present a different challenge in that their size and scope present much greater potential for both positive and negative impacts. Strengthening the opportunities and mitigating the risks with governance innovations will ensure that BigFinTechs and fintech follow a similar path in supporting the greater good” noted Achim Steiner, cochair of the Digital Finance Task Force and UNDP Administrator
Turkish exporters complain of new customs delays in Morocco, Algeria (Reuters)
Turkish companies say they are facing new delays in recent weeks exporting clothing to countries in North Africa where one, Morocco, has amended a trade deal allowing it to raise duties by up to 90% on such goods. The exporters of ready-to-wear clothes have complained about unusual requests for paperwork and delays of up to five times the norm clearing customs in Morocco and Algeria, three sector groups told Reuters. Morocco’s government, worried that a 2004 free trade deal with Turkey has harmed its manufacturers and retailers, said last week that talks that began with Ankara in January led to an amendment in August. A trade ministry source said the amendment allows Morocco to raise duties by up to 90% on 1,200 products including textiles and clothing for five years.
China leads the way in boosting South-South cooperation (China.org.cn)
In the face of the continuing COVID-19 pandemic, the relevance of South-South Cooperation (SSC) has further increased when the virus has compounded social and economic problems of poor, developing and developed countries alike. As the largest developing nation, China has assumed a greater role in realizing the SSC vision by supporting LDCs and developing nations. South-South cooperation is a central part of developing countries’ endeavor to seek strength through unity. China’s role in realizing the development aspirations of countries within the framework of SSC while shedding light on their joint commitment to building a harmonious and
Transcript of October 2020 World Economic Outlook Press Briefing (IMF)
In our latest World Economic Outlook, we continue to project a deep recession in 2020. Global growth is projected to be -4.4 percent, which is a small upgrade from June. This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partially by downgrades in some emerging and developing economies.
Emerging markets and developing economies are having to deal with this crisis with far fewer resources. These economies will need to prioritize critical spending for health and support for the poor and also ensure maximum efficiency, but they will also need continued support in the form of international grants, concessional aid, and in several cases, debt relief. Now where debt is unsustainable, it should be restructured sooner than later to free up finances to deal with this crisis.
‘Time for global solidarity’ to overcome COVID’s health, social and economic challenges (UN News)
In a joint statement, the International Labour Organization (ILO), Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD) and World Health Organization (WHO) highlighted that tens of millions are at risk of falling into extreme poverty. “Now is the time for global solidarity and support, especially with the most vulnerable in our societies, particularly in the emerging and developing world,” the statement said. “Only together can we overcome the intertwined health and social and economic impacts of the pandemic and prevent its escalation into a protracted humanitarian and food security catastrophe, with the potential loss of already achieved development gains”.
Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (IMF)
COVID-19 has spread rapidly around the world and in many emerging markets and developing countries (EMDCs) over the past six months. We continue to face a highly uncertain economic outlook. Securing economic recovery is expected to be protracted with likely scarring damage to productive capacity.
At this critical juncture, we are encouraged by the efforts of the G20, World Health Organization, World Trade Organization, and International Financial Institutions (IFIs) to deepen global cooperation to support all countries – in solidarity – confronting the inter-related health, social and economic crises brought about by the COVID-19 pandemic
It is crucial to support developing countries manage their worsening debt vulnerabilities to avoid a debt crisis that seriously sets back development progress. We welcome the G20’s Debt Service Suspension Initiative (DSSI) and encourage advanced economies as well as emerging markets with fiscal space to extend DSSI support beyond 2020.
ACI and IATA call for urgent industry-wide support to underpin recovery
Airports Council International (ACI) World and the International Air Transport Association (IATA) reinforced the urgent call for governments to use testing as a means to safely re-open borders and re-establish global connectivity and to prevent the systemic collapse of the aviation industry with non-debt generating financial support. The dual measures would protect countries from the importation of COVID-19 cases, avert an employment crisis in the travel and tourism sector, and ensure that the critical aviation structure remains viable and able to support the economic and social benefits on which the world relies.
China’s dominance of global trade is only growing, despite Covid and Trump (ThePrint)
Surging global demand for everything from hazmat suits to work-from-home technology has allowed China, which contained the virus months ago, to capture record market share of global exports by quickly reopening its factories while the rest of the world grappled with lockdowns. It’s a striking reversal from the first two months of the year when China’s exports contracted by 17.1%. “China’s export performance during this crisis is indeed a proof of its solid status as the world’s factory,” said Yao Wei, China economist at Societe Generale SA. “It is reliable, as the quick and effective containment of the outbreak in China allowed its manufacturing sector to resume operations way ahead of others.”
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South Africa won’t meet debt targets, president’s council says (Moneyweb)
South Africa won’t be able to meet its finance ministry’s debt targets and it may be undesirable for it to attempt to do so at a time when the economy is being battered by the fallout from the coronavirus, according to an advisory panel appointed by President Cyril Ramaphosa. In a more than 100-page document advising the government on an economic recovery program that Ramaphosa is due to unveil on October 15, the President’s Economic Advisory Council said spending cuts could hold back growth and have other adverse consequences.
N$1.9bn trade deficit for August (New Era)
In August 2020, Namibia’s exports stood at N$6.3 billion and imports at N$8.2 billion, subsequently, the country’s trade balance resulted in a deficit of N$1.9 billion. The August 2020 figures show that exports weakened month-on-month, falling by 3.2% from its revised level of N$6.6 billion in July 2020,
Namport docks 17 car carrier vessels amid pandemic (Namibia Economist)
The Namibia Ports Authority managed to safely receive 17 RoRos (car carrier vessels) for the past six months to date and while these numbers do not show an increase, these vessels were allowed to dock at the Port of Walvis Bay despite the pandemic. Most recently, the port recorded 4 RoRos which docked at the Port of Walvis Bay’s quayside in September and 4 more similar vessels are expected to call the Port in the month of October.
Kenya to diversify export products to eliminate trade deficit (CGTN)
Kenya plans to diversify its export products in order to eliminate its trade deficit, a government official said on Monday. Wilfred Marube, CEO, Kenya Export Promotion and Branding Agency (KEPROBA) told a virtual meeting that for the past five years imports have exceeded exports by an average three times. “We have identified 19 priority products that we can export to the rest of the world in order to bridge the trade deficit,” Marube said during the webinar on fostering partnerships and synergy in export promotion and nation branding.
Gabon: Tackling its future energy needs scientifically (ESI-Africa.com)
To achieve our strategic development objectives and honour our commitments to international climate agreements, we need abundant and sustainable energy, and to do that we cannot continue to rely on extracting fossil fuels. We need renewables. The opportunities are immense, but so are the demands. Gabon’s urban population is growing at 3.3% annually, and we have committed to increasing the energy access for rural populations, whose current 38% electrification rate is meagre compared to urban areas, which have a rate of above 80%.
Understanding funds sources for Rwanda’s $11 billion climate plan (The New Times)
Rwanda recently submitted revised its Nationally Determined Contributions (NDCs) to the United Nations Framework Convention on Climate Change (UNFCCC). This in turn revealed that the country requires over $11 billion to implement the measures between 2021 and 2030 to mitigate and adapt to climate change. The measures include renewable energy, green transport, waste management, climate-resilient agriculture, clean technologies in industries, green buildings, green cities, reforestation, water security, wetlands restoration climate compatible mining, disaster motoring, adaptation to disease outbreaks, livestock and crop insurance, storm water management, floods control among many others.
Promoting Uganda’s interests abroad (New Vision)
The Ministry of Foreign Affairs continues to implement a foreign policy that promotes peaceful and friendly relations with all countries, on the basis of respect for each other and mutually beneficial trade and commercial interactions, and regional economic and commercial cooperation and integration with our neighbours. The ministry, today, is pursuing, as a matter of utmost importance and priority, a policy of commercial and economic diplomacy aimed at promoting Trade, Tourism and Investments to spur economic development and transformation.
Ghana leads on industrial growth by dropping the dogma (The Africa Report)
Ghana has shown that by dropping the dogma around free market policy, making manufacturing a bipartisan cause and using the government as a problem-solving machine for businesses, African countries can create jobs and attract investment into industry.
Nigeria’s dollar earnings fall by over $7 billion due to Covid-19 (Nairametrics)
Despite the ease of lockdown in the country, the prices of household items continue to trend upwards, as traders across Lagos markets have once again lamented the sustained decline in patronage. This is according to the latest Household Market Survey conducted by Nairalytics, the research arm of Nairametrics. The persistent increase in the price of food items across major markets in Lagos State continues to hit harder on consumers, as local and foreign rice, tomatoes, pepper, flour amongst others, recorded significant surges in their prices.
Nigeria manufacturers' export group demands payment of N200bn outstanding EEG debt (Businessamlive)
The Manufacturers Association of Nigeria Export Promotion Group (MANEG) has charged the federal government to pay the outstanding Export Expansion Grant (EEG) debt amounting to N200 billion to revitalise the non-oil export sector. “The current backlog will be approximately N150 to N200 billion, which is bad because they are creating a fresh backlog and this would bring another batch of promissory notes to be issued in order for exporters to be paid,” he stated.
Mozambique outlines fund plan for $96bn gas windfall (Engineering News)
Mozambique published its proposed model for a sovereign wealth fund as it prepares to reap as much as $96-billion – more than six times the size of its current gross domestic product – from liquefied natural gas projects that companies including Total are building. The developments, which are the biggest private investments yet in Africa, could make Mozambique the continent’s second-biggest producer of the fuel. The central bank laid out plans for how the fund may function and which institutions it will report to. The proposal anticipates that the $96-billion will accumulate over the lifetime of the projects.
Africa
African Union launches sh370b public health system for Africa (New Vision)
Dubbed the Africa Pathogen Genomics Initiative (Africa PGI), the four-year partnership is aimed at expanding access to next-generation genomic sequencing tools and expertise that are designed to strengthen public health surveillance and laboratory networks in Africa. Uganda is among the 55 African Union member states that are slated to benefit from the initiative. Africa PGI will be part of the Institute of Pathogen Genomics, launched by Africa CDC in 2019, with a vision to integrate pathogen genomics and bioinformatics into public health surveillance, outbreak investigations, and improved disease control and prevention in Africa.
Interventions to mitigate COVID-19 impact on economic growth (ESI-Africa.com)
The Big Question we asked the experts is: What interventions should policymakers implement to mitigate the impact of the COVID-19 pandemic on economic growth and enhance resilience to future shocks? A gradual shift toward investments and net exports, and the move away from private consumption resulted in over 50% of Africa’s GDP growth as of 2019. A tremendous improvement for the first time in a decade. However, this was publicised by the African Development Bank in January 2020 before the COVID-19 pandemic hit Africa.
Africa should pave the way for investment amid risk-averse environment (BusinessLIVE)
With UK-Africa trade at a low ebb, it remains to be seen how far the former will be willing to invest in the continent. After its exit from the EU the UK is likely to look to craft new approaches to trade, aid and investment. To its advantage, Africa has a burgeoning supply of human capital in its increasingly young population: the UN Economic Commission for Africa asserts that by 2050 the teeming numbers of young Africans will form more than a quarter of the world’s labour force. In theory, this is set to unlock great potential for the continent in the next decade and may afford Africans better bargaining power in future.
Djembe Consultants, Afrilabs Assess Impact of COVID-19 on Innovators (PC Tech Magazine)
Djembe Consultants in partnership with AfriLabs have launched an Insights Report that assesses the impact of COVID-19 on the Africa’s young innovators and entrepreneurs. In addition, it also provides perspectives from industry experts as to how African decisionmakers from both the public and private sectors can accelerate support across the full innovation spectrum including education, inclusivity, investment, policy and research and development.
Entitled “Building a Resilient Innovative Africa”, the report is a result of a survey of over 1,000 pan-African innovators, entrepreneurs, and startups from both Djembe’s and AfriLabs’ vast innovation and entrepreneurship networks. Framed within the context of key milestones for the continent, including the impending African Free Trade Continental Area (AfCFTA), UN SDGs, and the African Union Agenda 2063, the report also brings together the expert perspectives of individuals from some of the continent’s leading development and private sector organizations
Countdown to IATF2021: Revival of the African Economy and AfCFTA (African Export-Import Bank)
Afreximbank, in collaboration with the African Union, has hosted the third in the series of five live events as a countdown for the African continent’s premier trade event, the Intra-African Trade Fair (IATF2021), which is to be held in Kigali, Rwanda, from 6 – 12 September 2021, under the theme ‘Building Bridges for a Successful AfCFTA.’ Jean Bertrand Azapmo, Principal Adviser to the AU Commissioner for Trade and Industry Department of Trade and Industry, African Union Commission, discussed the impact of Covid-19 and logistics and the importance of the IATF because it “unified fragmented and disjointed African economies, still surviving the brunt of the colonial economic system, bringing them closer to each other and asking the private sector to increase trade once they grasp the opportunities in other parts of Africa.”
Trade tonic awaits Africa in recovery bid (China Daily)
An incoming free-trade area for Africa could act as an economic stimulus for countries trying to recover from the impact of the COVID-19 pandemic, analysts say. Over the long run, they say, the African Continental Free Trade Area, or AfCFTA, can help reduce the continent's reliance on overseas markets. The trading bloc is due to come in at the start of next year, after the pandemic pushed back its implementation date. He Yun, an assistant professor in the School of Public Administration at Hunan University, said the disruptions caused by COVID-19 have ravaged Africa's economy, and most countries on the continent do not have the funds to roll out large stimulus packages. For these countries, the AfCFTA can serve as an economic stimulus to help with their post-pandemic recovery.
COMESA seeks to harmonise digital payment for MSMEs (The New Times)
The business council of the Common Market for Eastern and Southern Africa (COMESA) is working to develop “affordable” solutions that will increase intra-trade and financial flows for Micro Small and Medium-sized Enterprises (MSMEs). This was stressed on Tuesday, October 13, as this institution representing interests of the private sector at a regional level convened, virtually, a financial services regulators sub-regional stakeholder meeting. “Among the challenges impacting industry competitiveness, is the lack of an affordable and effective platform which accommodates digital cross-border payments by SMEs," said Sandra Uwera, Chief Executive Officer of the COMESA Business Council (CBC).
Tapping tech to address Africa’s food insecurity (Business Daily)
Food security is arguably one of the biggest concerns to be brought under the spotlight by the Covid-19 pandemic. But the daily challenge people across Africa face in putting food on the table is nothing new. According to the 2020 Global Report on Food Crisis, there were 135 million people facing acute food insecurity in 55 countries, more than half of them (73 million) in Africa. Further, over 27 million people in six IGAD member states (Ethiopia, Kenya, Somalia, South Sudan, the Sudan and Uganda), were classified in crisis or worse. Here in Kenya, the report estimates that almost 3.1 million people, representing 22 percent of the population analysed in arid and semi-arid lands, were facing crisis conditions or worse from August–October 2019. While the food insecurity forecasts for 2020 were produced before Covid-19 became a pandemic, it is likely the pandemic may push even more families and communities into deeper distress.
Challenge of Poverty in Central Africa: Impact of the COVID-19 Pandemic and Strategies (UNESCO)
UNESCO’s MOST Programme will focus on a comprehensive MOST research, capacity-building and policy support project, to support data systems in Central Africa in relation to poverty eradication, the reduction of inequalities and post-pandemic resilience, focusing on gender, persons with disabilities and youth.
International
Okonjo-Iweala Gets More Presidential Push for WTO DG (THISDAYLIVE)
President Muhammadu Buhari yesterday in Abuja assured Nigeria’s former Minister of Finance, Dr. Ngozi Okonjo-Iweala, that the country would deploy its entire energy to ensure that she becomes the Director-General of World Trade Organisation (WTO). This was contained in a statement signed by the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu. According to analysts, Okonjo-Iweala’s high professional/personal qualities, international contacts and impeccable records as Nigeria’s former Finance minister/Foreign Affairs minister and as former managing director of the World Bank, stand her high above the other contestant.
Women’s Rights Online: closing the digital gender gap for a more equal world (World Wide Web Foundation)
The internet has long been celebrated as a force for greater equality – breaking down barriers for those previously held back by their geography, wealth, race, class and gender. However, longstanding inequalities in access to, and use of, the internet holds back its egalitarian promise. This report provides a global snapshot of the state of digital gender inequality and finds that even where women are closing the gap on basic internet access, they face a multitude of additional barriers to using the internet and fully participating online.
IMF and World Bank must lend more to Africa’s stricken economies, critics say (African Business Magazine)
Multilateral institutions like the World Bank and the IMF have come under fire from African ministers and economists who say they are failing to step in to cushion the financial blow caused by the global pandemic. Ghana’s minister of finance, Ken Ofori Ata, said that at this week’s World Bank and IMF annual meetings much more needs to be done to help economies cope with falling revenues, rising expenditures and increasing debt distress.
Debt Burden of Least Developed Countries continues to climb to a record $744 billion in 2019 (World Bank)
In response to an urgent need for greater debt transparency, the latest edition of the International Debt Statistics (IDS) report provides more detailed and more disaggregated data on external debt than ever before in its nearly 70-year history – including breakdowns of what each borrowing country owes to official and private creditors in each creditor country, and the expected month-by-month debt-service payments owed to them through 2021
Global Partnerships for an African Recovery | by Landry Signé & Ameenah Gurib-Fakim (Project Syndicate)
The spread of the COVID-19 pandemic has profoundly affected developed and developing countries alike, despite vast disparities in initial response capacities. Global leaders were especially concerned about the disease’s potential implications for Africa, given the continent’s lack of financial and medical resources, weak health-care systems, fragile economies, and vulnerable populations. But preparation and cooperation among African leaders and African Union agencies, particularly the Africa Centers for Disease Control and Prevention, have resulted in many successes – including increased testing capacity, resource mobilization, and coordinated policies to prevent and contain the coronavirus’s spread and promote economic recovery.
Despite these successes, Africa is still facing significant challenges. These include a continued rise in COVID-19 cases, a need for greater testing capacity and improved health infrastructure, difficulties acquiring medical and food supplies, weak social-welfare systems that are struggling to support vulnerable populations during the economic crisis, and high government debt coupled with a need for increased spending.
China, Africa set example of multilateralism
China and Africa have vowed to uphold the spirit of solidarity and cooperation, jointly cope with various risks and challenges, and let their cooperation shine as an example of multilateralism and mutual benefits. The pledge was made on Monday by President Xi Jinping and Senegalese President Macky Sall in a joint congratulatory message to mark the 20th anniversary of the Forum on China-Africa Cooperation. China and Senegal are the forum’s Chinese and African co-chairs.
Four ways to boost China-Africa cooperation (CGTN)
This year marks the 20th anniversary of the Forum on China-Africa Cooperation (FOCAC). China and Africa have huge potential for cooperation as the two differ in comparative advantages and levels of industrialization. China’s trade with Africa increased 20-fold from $10 billion in 2000 to some $207 billion in 2019 under the framework of FOCAC and the Belt and Road Initiative (BRI). Over 3,700 Chinese enterprises have invested and started businesses across Africa, providing a strong driving force for sustained regional economic growth. In the context of current Sino-U.S. tensions, exploring new markets in Africa is a promising pathway for Chinese enterprises “going global,” despite various challenges such as lack of deep knowledge of local realities and gaps in infrastructure and talent. Overcoming these obstacles requires governments, enterprises and industry associations to cooperate in building more platforms and launching supporting policies and safeguard measures.
BRICS commitment to jobs, social protection & social dialogue welcomed by ILO (Modern Diplomacy)
LO Director-General Guy Ryder has welcomed the commitment made by Brazil, Russia, India, China and South Africa (the BRICS countries) to take more action to support labour markets in meeting the unprecedented challenge of COVID-19. In remarks to the sixth BRICS Labour and Employment Ministers Meeting (LEMM), Ryder also praised the employment and social protection measures already implemented by these five major economies, noting that 121 new social protection measures had been introduced between March and August 2020 as part of the BRICS crisis response.
Africa – new opportunities (Law Gazette)
A recent series of virtual events aimed to strengthen links between African and UK law firms by highlighting the untapped opportunities Africa presents. HMG trade commissioner Emma Wade-Smith explained that the Department for International Trade has a clear purpose to champion economic growth and job creation. ‘The UK is committed to being Africa’s business partner of choice,’ she said, referencing the inaugural UK-Africa Investment Summit hosted by the UK government in January. ‘The legal services sector is intrinsic to economic growth. The impact of Covid raises the centrality of legal services to rebuilding the economy.’
Malawi to benefit from K1 billion UK trade, Covid-19 support for southern Africa (Nyasa Times)
The United Kingdom (UK) will provide £1 million (about K1 billion) funding to implement a programme with the International Organization for Migration (IOM) to support informal traders – who rely on trading across the borders around Southern Africa for their livelihoods and income – to ensure traders can do business safely during the COVID-19
MENA: Global Action is Urgently Needed to Reverse Damaging Jumps in Extreme Poverty (World Bank)
For the second time, the rate of extreme poverty in the Middle East and North Africa (MENA) region jumped again, nearly doubling between 2015 and 2018, according to a new World Bank report. The World Bank’s biennial Poverty and Shared Prosperity report finds that the rate of extreme poverty in the MENA region rose from 3.8% in 2015 to 7.2% in 2018 – the latest year for which data is available. This followed another rise in poverty in the region from 2.3% to the levels in 2015. According to the report, the latest jump in poverty in MENA was driven largely by the effects of ongoing conflict in Syria and Yemen, but this does not fully account for the economic downturn in Lebanon.
Communiqué from the Small States Forum 2020 (World Bank)
Members of the Small States Forum met virtually on October 8, 2020.
2. Small economies are facing an unprecedented social and economic crisis due to the COVID-19 pandemic. A collapse in tourism, falling commodity prices, and diminished remittances have sharply increased poverty and unemployment. Some Small States are witnessing a dual shock from the health impacts of the pandemic and recent natural disasters. Most small economies are in recession, with GDP falling by 7.6 percent in 2020 on average, and over 20 percent in some tourism-dependent economies (World Bank staff estimates).
5. This pandemic has reinforced our vulnerability to pre-existing structural challenges, including limited capacity and economies of scale and high-cost public services. These have been compounded by our vulnerability to climate change and by ever-increasing pressures in the provision of correspondent banking services that threatens our external trade business and inward investment.
7. The pandemic has exacerbated the debt vulnerabilities of many small economies. Despite efforts at fiscal prudence, many Small States have sizable public debt, due to their narrow and volatile revenue base, combined with low growth and expenditure shocks. COVID-induced GDP losses and higher financing needs will significantly worsen the debt positions of Small States. There is a need to re-engineer the way we will look at debt financing, so it does not become a constraint in dealing with the COVID-19 pandemic and other development issues. In this context, we call for an urgent meeting to address debt burdens and a resolution to the rising debt overhang.
Trade has a role to play in making the COVID-19 response more effective, says DDG Agah
On behalf of the four Deputy Directors-General, DDG Agah addressed heads of WTO member delegations on 12 October and emphasised “the importance of open and predictable markets to foster a strong and inclusive recovery for all countries”. In his remarks he highlighted the work done by the DDGs to ensure stability and continuity during the transition period until a new Director-General takes office, and reminded members that the policy choices adopted at the WTO and domestically will matter for stimulating job creation and growth.
UN chief announces major push to transform harmful food systems
In a video message, Mr. Guterres highlighted the importance of food systems, and their impact on economies, environment and health, but warned that they are “one of the main reasons we are failing to stay within our planet’s ecological boundaries”. This year, the coronavirus pandemic has brought the fragility of the world’s food supplies to the fore, with millions going hungry. At the same time, the climate crisis continues to wreak havoc on food security. To address these issues, the Secretary-General is convening a Food Systems Summit next year to raise global awareness and spur actions to rethink food systems, so that they can play a more positive role in ending hunger, reducing diet-related disease, and help in the fight against climate change.
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National
Time to implement reforms running out – FirstRand chair (Moneyweb)
FirstRand chair Roger Jardine says the “socio-economic fallout of the Covid-19 pandemic has brought forward the inevitable inflection point that our country was bound to eventually face”. “Confronted by an accelerating unemployment rate, falling economic activity and an ever-rising government debt burden, economic change has become inevitable as the weight of these developments is becoming too heavy for the current system to carry.” Writing in the banking group’s 2020 annual report, Jardine says the country still has “the opportunity to choose how we would best effect the changes necessary to reverse the trajectory”.
Civil society calls for extension of Covid-19 relief funds (IOL)
In a statement, issued on Sunday by the Assembly of the Unemployed and Grant Claimant, Equal Education Gauteng, the South African Federation of Trade Unions and former Public Protector Adv Thuli Madonsela, the organisations said that the grants were put into place as temporary relief measures but their removal now assumes that there is no longer a need for relief. Their termination would lead to a humanitarian crisis. Data from the National Income Dynamics Study – Coronavirus Rapid Mobile Survey has revealed that the receipt of the grant has been pro-poor, and has helped stave off hunger while the caregiver grant has been especially important for supporting women-headed households. Organisations said these grants should continue until a comprehensive plan for guaranteed basic outcomes has been put in place.
How South Africa became one of the most attractive destinations for outsourcing business (Face2Face Africa)
South Africa has emerged as one of the best business outsourcing hubs in the world. For three years in a row, it has been voted as the second most attractive Business Process Outsourcing (BPO) in the world by the annual 2020 Front Office BPO Omnibus Survey conducted by Ryan Strategic Advisory. The feat has largely been due to the country’s reputation as a reliable, cost-effective, and high-quality destination for outsourced business services. As a show of confidence in South Africa’s robust business outsourcing, Amazon in June announced that it would be hiring 3,000 people in South Africa this year to support customers in North America and Europe.
Green shoots raise hope of economic revival (The Southern Times)
Namibia recorded a current account surplus of N$5,1 billion (US$342 million) thanks to increasing exports and stable income revenue inflows in the second quarter of 2020. The current account surplus followed a drab first three months of a year characterised by decline attributed to low economic output globally due to the COVID-19 pandemic. Bank of Namibia (BoN) director of strategic Communications Dr Emma Haihambo attributed the upturn to stable revenue inflows from the Southern African Customs Union.
pdf President Museveni’s Independence Day speech (93 KB) (Scribd)
Theme: Celebrating Uganda’s steady progress towards economic take-off and self-reliant economic growth
As a result of diversification of our economy and expanding our export base, our economy has been able to withstand the potential negative impact of COVID-19. The demand for our export goods remained strong even when there were disruptions in trade supply chains globally. This is because we have a very diversified export base. We recorded US$ 3,823 million in export of goods in the Financial Year ending June, 2020; export of mineral products were worth US$ 1,221 million while coffee fetched us US$ 497.4 million. Fish was US$ 180 million, Maize was US$ 123 million. The Middle East, East African Community and COMESA account for almost 80 percent of our export demand.
KRA to track traders’ daily sales in new law (Business Daily)
The Kenya Revenue Authority (KRA) will start receiving real-time data on traders’ daily sales following the publication of a new law that allows the taxman to monitor transactions using Internet-enabled electronic tax registers. The new regulations published by Treasury Cabinet Secretary Ukur Yatani on Friday require businesses to install new electronic tax registers connected to the KRA’s systems, escalating the war on tax cheats. Under the new system, the KRA will receive sales and invoice data from all registered companies and traders on a daily basis in a fresh push to boost revenue collections and curb tax evasion.
Zimbabwe: Phased border reopening proposed (The Herald)
The Department of Immigration has advised the Government on health grounds to consider phasing the reopening of land borders for passenger traffic, especially at Beitbridge Border Post where 500 000 people crossed in both directions before the start of the lockdown in March alone. Already, South Africa and Zimbabwe have similar regulations in place on testing requirements to avoid quarantining on the other side, although the regulations are yet to be perfectly aligned. But the recent introduction of more strict testing requirements for truck drivers has caused traffic jams for 1 000 or so trucks that cross the border every day as officials check the required paperwork. The port of entry is a gateway from South Africa to much of Sadc, with many using the border post on their way to Zimbabwe, Malawi, Mozambique, DRC, Zambia and Tanzania.
Orange boom a boon for Egypt (Fruitnet)
Since the outbreak of Covid-19, the popularity of vitamin C-packed fruit like oranges and other citrus has soared, and big producing countries like Egypt are expected to continue to benefit from the increased demand. “Due to years of investing to expand cultivation areas and to enhance agricultural products’ quality to meet international standards for exportation purposes, the Egyptian agricultural products will see increasing demand from the international market,” says Egyptian exporter Nile Establishment for International Trade. “Production of oranges in Egypt has skyrocketed on account of improved irrigation, low labour costs and the devaluation of the Egyptian pound.”
Africa
The Fiscal Policy Response to COVID-19 from African Governments (COVID-19 Africa Watch)
As the UNECA’s Dr. Vera Songwe told COVID-19 Africa Watch in June, the COVID-19 pandemic arrived in Africa first as an economic crisis, then as a health crisis. The health crisis arrived first elsewhere in China, Europe, and the United States and the shockwave of the shuttering of those economies reached African countries before the full force of the virus did. The result for Africa has been the beginning of the first major recession for the region in over 25 years. The IMF now projects the regional GDP of Sub-Saharan Africa to decline by 3.2 percent, compared to a previously projected growth of 3.6 percent, a considerable negative swing of 7 percent. In some countries, the economic downturn has been even more pronounced. In South Africa, the IMF is projecting a contraction of 8.0 percent; the Nigerian economy is expected to shrink by 5.4 percent; and in Botswana, the IMF anticipates a 9.6 percent contraction.
EAC Member States urged to Support Smallholder Farmers to adopt Organic Farming (East African Business Week)
Small-scale Farmers within East Africa have called upon EAC Member states to support them to adopt Organic farming practices. The farmers under their umbrella organization the Eastern and Southern Africa Small scale Farmer’s Forum (ESAFF) said that farming organically has economic and environmental advantages to the community member states. According to Hakim Baliraine, the National Chairperson of ESAFF Uganda, organic farming does not only help reduce public health. “Foods grown organically are rich in Vitamins such as C, iron, magnesium, and phosphorus, with less exposure to nitrates and pesticide residues in organically grown fruits, vegetables, and grains which has been proved to boost the body’s immunity against COVID-19,” said Baliraine at a Media Launch of the Annual National Organic Week under the theme Embracing Organic products for Health living amidst COVID-19.
AfCFTA take-off: Nigeria remains most sought-after bride (Latest Nigeria News)
Indications are that the proposed date for the commencement of the long awaited African Continental Free Trade Agreement (AfCFTA) in July 2020 which suffered an upset and now confirmed for January 2021, according to analysts was as a result of ravaging Covid-19 pandemic, while others claimed that it was a technical delayed to enable Nigeria’s participation as the largest market in the economy. The reason for this is not farfetched: Nigeria is one of the three of 55 African Union member countries holding out on tendering signature to the trade arrangement, along with Benin and Eritrea. Pressure from local unions such as the Manufacturers Association of Nigeria (MAN) and businesses had delayed the continent’s largest country from signing the agreement since it was launched two years ago.
Push to have DRC, South Sudan join Single Customs Territory - FREIGHT LOGISTICS MAGAZINE
Players using the Northern Corridor have asked Democratic Republic of Congo (DRC) and South Sudan to join the Single Customs Territory (SCT) in bid to enhance seamless flow of the cargo along the corridor and border crossing points. A report by the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) that gives recommendations based on its first 14 observatory reports has also asked Uganda to extend a list of goods cleared through the SCT. “Uganda should consider expanding goods cleared under SCT and work towards full roll-out. It will minimise diversion of goods in transit. Border crossing has been seen as the second cause of delays,” the report noted. To ease clearance of the cargo, the report recommends the need to synchronise all Single Window Systems. Kenya, Uganda and Rwanda have already established functional window systems. These systems provide a platform on which Partner Government Agencies (PGA) are able to clear cargo online. The process of automating customs processes in South Sudan is currently ongoing.
The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) hosted the second of a series of five virtual expert group meetings on innovative research into preferential trade arrangements in Africa. The study aims to develop guidelines on how to strengthen the capacity of the African private sector to better engage in the negotiation and implementation of preferential trade arrangements. Presenting the main findings of the study, Guillaume Gerout, ATPC trade expert who led the preparation of the study, highlighted: a) the need for policymakers to develop negotiating positions through an inclusive and participatory process involving all stakeholders, b) the particular role of the private sector as direct beneficiaries or victims of the outcomes of such negotiations, and c) the unique role of civil society organisations in serving as a communication bridge between government and the wider society.
AfCFTA protocol must provide a fair regulatory environment and protection for investors (BusinessLIVE)
With less than three months before the expected conclusion of negotiations on the African Continental Free Trade Area’s (AfCFTA) protocol on investment increasing attention is being paid to the protocol’s likely investment protections and rights of recourse for investors in Africa. While the protocol’s content remains unclear, it is hoped that it will enhance Africa’s prospects as a desirable investment destination by offering investment protections that support the rule of law and good governance. It should provide appropriate mechanisms for the international enforcement of those protections and harness the contributions of foreign investment to maximise development.
Africa: Corruption and Covid‐19’s Effect on Economies (Wiley Online Library)
As Africa cautiously welcomes the positive news that it looks like it will escape the worst ravages of Covid‐19 infections, it is also having to deal with the fallout of several revelations of corruption among officials in their handling of Covid‐19 funds. Resurrecting economies is of course difficult when you hold very few economic trump cards and depend on others to buy your primary products. So, while public health officials are still calling for extreme care, the business‐minded are desperately trying to kick‐start international trade.
Reforms, integration: Africa’s only chance for recovery post-Covid-19 (The Zimbabwe Independent)
As the coronavirus pandemic reaches the probable end of its life cycle, the world economy has been devastated and may possibly crash with it. It is more concerning to note that there are still possibilities of a second wave of the pandemic according to some health experts. Developing economies have had much less fatalities to their advantage but they have been the most affected in terms of economic regression. With a global economic contraction of 5,4%, South Africa will perform worse and register a contraction of 7,2% and Zimbabwe will be closely in that region with a contraction of 7,4%. Both South Africa and Zimbabwe have highlighted the importance of introducing structural reforms in order to make their respective economies more efficient and thus make the post-pandemic recovery more certain and enduring.
Gendering Agriculture so Women Take the Lead in Feeding Africa (Inter Press Service)
Africa’s hopes of feeding a population projected to double by 2050 amidst a worsening climate crisis rest on huge investments in agriculture, including creating the conditions so that women can empower themselves and lead efforts to transform the continent’s farming landscape. We know the world has the technology and resources to eradicate hunger but finding the right policies and the will to implement them often elude us. Fortunately, young women and men carrying out evidence-based research in sub-Saharan Africa are coming up with some possible answers on how to tackle these pressing issues.
International
Opening Remarks at Mobilizing with Africa II High-Level Virtual Event (IMF)
In Africa, there are more than a million cases. 23,000 deaths confirmed; countless others unconfirmed. Jobs lost, family incomes down 12 percent. And, according to our colleagues at the World Bank, up to 43 million more people are at risk of extreme poverty, reversing a trend we have been so proud of. We are in this crisis together and it is in everybody’s interest to mobilize and fight this pandemic together. And that means mobilizing with Africa.
Since our first Mobilizing with Africa meeting in the spring, we have seen African policymakers acting swiftly, despite often doing so with very tight financial constraints. On average, they spent an additional 2.5 percent of GDP on health and social programs to meet their peoples’ needs. The world has taken supportive action as well.
See also: Remarks by World Bank Group President David Malpass
Digitization across sectors, universal affordable energy access & skills of the future are Africa’s priorities (African Union)
Organized by the Norwegian-African Business Association, H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy participated in the high level opening of the ‘Nordic-African Business Webcast 2020’. The Commissioner highlighted the need to invest in digitalization in all sectors as high priority for the Continent. There is also urgent need to scale up access to affordable energy without which no development strategy can be deployed. The third priority area for Africa recovery is capacity development especially for youth, women and girls who are the African development actors to harness efficiently existing and future opportunities. “COVID-19 crisis is a turning point for Africa’s future. Our Continent’s post-crisis recovery hinges upon robust re-imagined Infrastructure plans marked by key-drivers, namely the acceleration of energy access and transition, the spur of digitalization across sectors and investment in inclusion and skills of the future.” highlighted Dr Abou-Zeid.
See also: African Development Bank makes pitch for strategic partnerships with Nordic businesses
WTO DG: EU’s backing and implications for Nigeria’s trade (The Guardian Nigeria)
Nigeria’s optimism that its former Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, would clinch the top post of Director General (DG) of World Trade Organisation (WTO), was buoyed recently by European Union’s (EU) endorsement. International Communication and Development expert, Dr. Arthur-Martins Aginam, said as the DG of WTO, Okonjo-Iweala’s term would quicken the space of Nigeria’s development and balance of trade.
Should the former Finance Minister clinch the WTO top job, therefore, it would help to spur the expected expansion of market access for Nigerian exporters and growth, thereby boosting job creation and supporting industrialisation. As such, on account of the fact that the FMITI has completed the review of all existing international investment agreements and commenced implementation of country-specific recommendations, a Nigerian WTO DG would be a boon to such initiatives.
Emerging economies plead for more ambitious debt relief programmes (TechnoCodex)
Government ministers of poor and indebted nations will this week appeal to their creditors for a much more ambitious debt relief effort as they grapple with the healthcare and economic consequences of the coronavirus pandemic. They will set out their case for greater support from foreign governments and multilateral lenders as delegates gather for the annual meetings of the IMF and World Bank. Financial assistance for cash-strapped governments has so far fallen well short of what is needed – and of what advanced economies have been willing to do for themselves – according to critics. So far 43 countries have applied for debt suspensions through the initiative, delaying about $5.3bn of payments this year – less than half of the $11.5bn available, according to the World Bank.
New report calls for measures to support trade continuity in Sub-Saharan Africa (ICC)
ICC has contributed to a new report by a consortium of multilateral development banks and trade research institutions, gauging the views of Sub-Saharan banks on the current response from multilateral development banks (MDBs) to maintain a well-functioning trade finance market. Entitled Pulse Check, the report brings together perspectives and insights from close to 70 trade finance executives from 20 countries. Contributors unanimously call for an urgent focus on support programmes that target private sector and smaller enterprises to avoid a ‘second wave insolvency crisis’ that threatens widespread greater economic hardship on the continent.
Turkey looks to develop investment, e-commerce portals with African nations (Daily Sabah)
Turkey aims to establish investment and e-commerce portals with African countries in the coming period, Trade Minister Ruhsar Pekcan said, as the country looks to further improve its bilateral trade and investment ties with the continent. Pekcan’s remarks were made on the sidelines of the virtual Turkey-Africa Economy and Business Forum, which kicked off Thursday. “We project that this portal will have content that includes elements such as product and company information, regulatory information, requests and company matching for the development of trade and investment relations,” Pekcan said.
Farmers, firms reap big from EU support (The Citizen)
Smallholder farmers and firms in Tanzania are reaping big from a European Union (EU) market access programme. Over 1,000 of the farmers have been capacitated in modern production techniques of fresh produce for export. Improvement of the quality of their fresh produce has enabled them to easily access the multi-million dollar EU market. Elsewhere, firms secured loans totaling $1 million, with over 50 capacitated in financial management, branding and packaging. “The interventions have been rewarding,” says Mr Safari Fungo, senior regional technical advisor with the EU-EAC Market Access Upgrade Programme (MARK-UP).
TradeMark East Africa, WFP Partner in COVID-19 Safe Border Trade in Rwanda (KT Press)
TradeMark East Africa (TMEA) has donated Personal Protective Equipment (PPEs) that will be used by frontline workers to improve safety against the New Coronavirus for border staff and persons crossing through Rwandan borders. Michel Minega Sebera, the Permanent Secretary in the Ministry of Trade and Industry said the support will be an added value to Rwanda’s campaign against the New Coronavirus spread through open borders but also maintain the movement of persons and goods which are highly needed in maintaining cross border trade activities under the Covid19 pandemic in East Africa. TMEA Rwanda Country Director Patience Mutesi also said that the equipment is part of the TMEA Safe Trade Emergency Facility and will be distributed in partnership with the World Food Program (WFP) which has a well-developed logistic mechanism and reach.
Minister for Africa announces closer UK-Southern Africa partnerships on visit to Malawi and Zambia (GOV.UK)
The UK Minister for Africa, James Duddridge, travelled to Malawi and Zambia this week (5 to 9 October) where he built on UK partnerships across Southern Africa to promote, support and reinforce our shared national interests – with a focus on boosting regional trade links and tackling the health and economic impacts of COVID-19. To ensure key border posts in Zambia, South Africa and Malawi can remain open during the COVID-19 pandemic, the Minister announced that the UK is partnering with the UN International Organization for Migration (IOM) to provide advice and training to traders, governments and border agencies – allowing traders to resume their business legally and safely.
China’s Angola relief proves Africa can withstand Zambia default (The Africa Report.com)
China still cares what the world thinks about it – and that will help Africa to limit the danger of contagion from an increasingly likely Zambian debt default. A committee representing Western holders of Zambian bonds on 30 September rejected the government’s request to delay interest payments. The bondholders fear that they are not being treated on equal terms with Chinese creditors. Yet a Zambian default wouldn’t have a wider impact on investor confidence in African debt, says Steve Hanke, professor of applied economics at Johns Hopkins University in Baltimore. “China wants to avoid further negative public relations” related to its Belt and Road Initiative and to “preserve strategically important relationships”, which includes Zambia due to its large mineral reserves.
China’s success in combating poverty offers hope to Africa (New Vision)
African leaders, policymakers and scholars said the continent is leveraging on robust cooperation with China to acquire capital, skills and technology. China’s development experience over the past decades offers key lessons to Africa, UN Deputy Secretary-General Amina Mohammed said at the sixth African Regional Forum on Sustainable Development in Zimbabwe in February. “Just as China’s remarkable achievements in lifting its people out of poverty contributed to major advances under the Millennium Development Goals (SDGs), so can Agenda 2063 have similar impacts on SDGs,” said Mohammed.
Chinese companies ditch Zimbabwe projects (Bulawayo24 News)
Major Chinese insurance firms are refusing to underwrite critical infrastructure projects in Zimbabwe due to government’s failure to pay commitment fees and other related costs, it has emerged. Official sources say the construction of the US$680 million Kunzvi Dam, for which the tender was awarded to Chinese state enterprise Sinohydro, has stalled after government dithered on paying the required US$10 million commitment fee, prompting one of China’s top insurance firms Sinosure which has to date funded projects worth billions of dollars in Zimbabwe to ditch the venture.
3 takeaways from the World Bank Fragility Forum (Devex)
Balancing humanitarian, security, and long-term development goals in countries impacted by fragility, conflict, and violence, or FCV, is always a challenge – now made more urgent by the COVID 19 crisis. The World Bank estimated in February that by 2030, over two-thirds of the world’s extreme poverty would be concentrated in countries impacted by fragility and conflict. By June, it was estimated that an additional 18 to 29 million people would be impoverished in FCV settings by the end of this year, facing crushing health and economic burdens while country economies face their worst recession in five decades. How to partner better to ensure development and peace in the most difficult environments was the timely focus – alongside other themes from the first World Bank Group strategy for Fragility Conflict and Violence released earlier this year – of the first all-virtual World Bank Fragility Forum 2020.
African Youth Front on Coronavirus (New Delhi Times)
Non-Aligned Movement has called on the developing world to formulate an effective response strategy to the COVID-19 crisis, which has affected not only affected the health sector but has also resulted in a social and economic crisis. NAM has adopted a Declaration underlining the importance of international solidarity in the fight against COVID-19 which calls for supporting the efforts of the World Health Organization (WHO). The WHO has called on the increasing role of youths in the fight against COVID-19 pandemic. According to the WHO, young people represent the future of health and other professions. Despite social distancing measures in many countries, they have united with peers from across the globe to drive positive change through the cumulative impacts of their small acts of empathy.
COVID-19 Crisis and WTO: Why India and South Africa’s Proposal on Intellectual Property is Important (The Wire)
On October 2, India and South Africa sent a proposal to the World Trade Organisation (WTO), asking that it allow countries to suspend the protection of certain kinds of intellectual property (IP) related to the prevention, containment and treatment of COVID-19. The two countries propose this waiver to last until widespread COVID-19 vaccination is in place globally, and when the world’s population has developed immunity to the virus. The concern is that the development of and equitable access to the tools – such as vaccines and treatments – needed to fight the pandemic could be limited by patents and other IP barriers.
WTO launches new import licensing platform
Four years of work by the WTO Secretariat bore fruit with the launch on 9 October 2020 of the new import licensing database. The new platform gathers together import licensing information, analysis and reporting and streamlines notification procedures for WTO members. At a meeting of the Committee on Import Licensing, members commended the work done by WTO staff to provide a one-stop shop for members and interested parties seeking to access information on import licensing procedures.