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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.
Related News
Consortium of Global Multilateral Development Banks calls for measures to support trade continuity in Sub-Saharan Africa
The Pulse check report issued by a consortium of multilateral development banks and trade research institutions, recounts the views of sub-Saharan banks on multi-lateral development banks’ (MDBs) responses to uphold a well-functioning trade finance market.
The report, which brings together perspectives & insights from 70 trade finance executives from 20 countries, unanimously calls for an urgent switch in the focus of support programs towards private sector and smaller enterprises to avoid a ‘second wave insolvency crisis’ that threatens greater, and far more widespread, economic hardship on the continent than we have seen till now.
Demand for trade finance instruments in the first half of 2020 seems to have flattened compared to growth expectations, while banks, supplying those instruments, have typically “flown to safety” restricting their lending to existing clients. Overall, according to interviewees, the market has contracted from at least 10% on average from 2019 levels in volume and even greater in value because of furloughed projects and investments. Full recovery is only anticipated by end of 2021 at the earliest.
Banks interviewed mentioned that their main constraints revolved around risk uncertainties / macroprudential limitations to extend credit outside of their comfort zone, especially during a persisting pandemic.
The report makes several priority recommendations for MDBs. These include a switch in focus to private sector support, increasing availability of risk-sharing instruments as well as a more granular funding offering. The report also illustrates the need to emphasise pooling of efforts and resources across MDBs and DFIs operating in Africa to respond more effectively to the unfolding situation.
Contributing organisations include the African Development Bank (AfDB), the Arab Bank for Economic Development in Africa (BADEA), the Banque Ouest-Africaine de Développement (BOAD), the East African Development Bank (EADB), the International Chamber of Commerce (ICC), the International Trade Center (ITC), the International Islamic Trade Finance Corporation (ITFC), and the Trade & Development Bank (TDB).
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National
One SA’s Economic Recovery Plan revealed: 20 key interventions (The South African)
One South Africa Movement (One SA) Chief Activist Mmusi Maimane, on Thursday 8 October at a press briefing in Johannesburg, delivered the movement’s Economic Recovery Plan entitled “Review, Repurpose, Rebuild, Reform: A bold plan to turn SA’s fortunes around”. The plan, according to Maimane, is a comprehensive set of specific interventions which seek to build a stronger, revitalised South Africa in the challenging post COVID-19 years. “Our recovery plan requires four approaches to the economy and the State at large; review, repurpose, reform and rebuild. In this light, we argue the following 20 interventions – at least – are required to change South Africa’s fortunes and place us on the right track towards a better future,” he said.
Agricultural transformation a Presidential imperative, says Ramaphosa (Engineering News)
President Cyril Ramaphosa has highlighted access to agricultural land for subsistence farming and commercial production as a national priority, stating that the transformation of patterns of ownership “are fundamental in addressing not only food security, but also historical injustices”. Owing to the impact of the Covid-19 pandemic, South Africa’s economy suffered a significant contraction during April, May and June, with gross domestic product (GDP) having fallen by 16% between the first and second quarters. However, while nearly all other sectors of the economy registered significant drops in output, Ramaphosa said “agriculture bucked the trend”, noting that there had been an increase in maize exports and rising international demand for citrus fruit and pecan nuts, helping the industry grow by 15.1%.
Trade sector in South Africa: Confidence edges up in Q3 (The Africa Logistics)
he improvement in sentiment across the entire trade sector in South Africa can certainly be attributed to the eased lockdown restrictions since the BER’s 20Q2 survey – when the sector registered record low levels across all categories. COVID-19 lockdown restrictions have eased from a regime that only permitted the sale of essential goods under restricted trading hours, to one that pretty much allowed retailers to trade all products except for cigarettes and alcohol.
Startups marked for tax relief to spur innovation (Business Daily)
Kenyan startups admitted to incubation hubs will pay less tax, if Parliament adopts proposals in a Bill which seeks to promote innovation among enterprises. The Startup Bill, 2020 recommends a range of incentives including fiscal and non-fiscal support as well as protection of intellectual property rights. Lack of capital has been flagged as key put off for entrepreneurship in Kenya, especially among the youth eyeing to kick-off their first ventures. “The Bill seeks to provide a legislative framework that promotes an enabling environment for the establishment, development, conduct of business and regulation of startups,” said Nairobi Senator Johnson Sakaja who has sponsored the Bill.
New system helps Zambia track mining revenue (The Southern Times)
The Mineral Output Statistical Evaluation System (Moses) developed by the Zambia Revenue Authority and the United Nations Conference on Trade and Development has is helping the Southern African country track illicit trade practices and recover funds. The UNCTAD data evaluation tool was developed as part of its Automated System for Customs (ASYCUDA), which helps developing countries modernise customs clearance processes.
Nigeria announces plans for new economic zones to boost solid minerals (China.org.cn)
The Nigerian government is working toward establishing special economic zones for solid minerals and creating a large number of employment opportunities, a top official with the Nigeria Export Processing Zones Authority (NEPZA) said. The initiative is part of the government’s promise to revamp the mining sector to enable it to contribute more to national income, said Adesoji Adesugba, Managing Director of NEPZA in a statement reaching Xinhua on Thursday. “We must emulate countries like South Africa, Ghana and Kenya that have taken their mining sector to an enviable height with substantial (amount) of their revenues coming from the sector,” he said.
Freight Forwarders Decry High Debt Notes By Customs (Economic Confidential)
Freight Forwarders in Lagos have called on the Comptroller General of the Nigeria Customs Service (NCS), Col. Hameed Ali (rtd) to curb the indiscriminate issuance of Debit Note (DN) by the compliance team at the Tin-Can Island Customs command. Speaking with journalists, they said the compliance team created in 2019 ought to arrest infractions in duty payments by importers and clearing agents before they exit the seaport, but have been slamming debt notes on already cleared cargoes. Chukwu Nwanne, a forwarder said: “The major challenge we have right now is that the compliance team which was established by the Area Controller is strangulating importers, they are not doing what they are created to do. The compliance team is now the one giving DN to clearing agents. Which should we now follow? This is a duplication of duty.”
Tanzania’s economy to grow by 5.5 percent in 2020, says BOT (The Citizen)
“The MPC is satisfied that the economy continues to perform satisfactorily despite spill-over effects from the global economy due to Covid-19. The economy will grow at the projected 5.5 percent in 2020,” MPC chairman and BoT governor Florens Luoga, said. The MPC, which met on Monday to assess the performance and outlook for the economy, asked the BoT to continue implementing accommodative monetary policy in a low inflationary environment in the remainder of 2020 in order to further stimulate growth of the economy and safeguard the stability of the financial sector.
Africa
Zim poised to become regional fuel hub (The Herald)
Zimbabwe has laid out plans to fully utilise existing capacity and build new infrastructure to position itself as a regional hub for fuel distribution using its strategic location in the region and extensive storage facilities. The new planned pipeline will have capacity to transport 50 million litres per day, which will afford the country an opportunity to fully utilise its storage capacity of 500 million litres for local and regional purposes.
Uganda envoy optimistic on Tanzania business relations on day of (The Citizen)
Ugandan High Commission in Tanzania has said that non-tariff barriers (NTBs) that have been hampering trade between Tanzania and Uganda are currently being addressed at a bilateral level and the East African Community. “We had challenges on the weigh bridge especially at Mutukula which have currently been reduced tremendously, but currently sugar exports, rice and fish imports taxes are being addressed at both bilateral and EAC level,” he said. He said trade between the two countries has been increasing with Uganda importing rice from Tanzania as well as petroleum products while also planning to import gas in their near future which the latter has in abundance. Uganda on the other hand exports sugar and milk to Tanzania.
EAC losing billions due to poor value addition in horticulture, leather goods (The New Times)
East African Community partner states are losing out billions of dollars by inadequately investing in adding value to horticulture and leather goods produced in the region and not addressing bottlenecks derailing growth in the sectors, a new report shows. The report by the East African Business Council (EABC) in collaboration with GIZ is titled, ‘Building the Leather, Fruits and Vegetable value chains in the East African Community’ was launched Thursday, October 8.
EAC partner states slap taxes on Comesa, SADC (Daily Monitor)
To support local production through import substitution, East African Community member states have resolved to retain taxes on goods originating from the Common Market for Eastern and Southern Africa (Comesa) as well as the Southern African Development Community (SADC). The two regional blocs – Comesa and SADC, comprise of about 37 countries with the EAC member states belonging to at least one of the blocs, save for Tanzania which has dual membership. Mid last month (On September 15th 2020, the Council of EAC ministers issued a legal notice in the East African Community gazette, announcing stay of application of Common External Tariffs for goods originating from Comesa and SADC up to June 2021.
Angola plays important role in ECCAS economic integration (ANGOP)
During a meeting he held with Angolan businesspeople on increasing trade between the ECCAS countries, Gilberto da Piedade Veríssimo said that Angola has the highest Gross Domestic Product (GDP) in the community, which could make it an engine for economic integration in the region. However, he noted that it was necessary to take into account some assumptions that make these objectives impossible, such as the lack of formal or physical integration, due to the lack of adequate roads, the lack of a common customs tariff, which created difficulties in the entry and exit of products, as well as the disabling of the 3,000 kilometres of sea coast.
UNECA analysis shows AfCFTA gains for Ghana (Business24 Ghana)
A United Nations’ Economic Commission for Africa (UNECA) assessment of the expected impact of goods-trade liberalisation under the African Continental Free Trade Area (AfCFTA) treaty shows significant economic gains for the continent, with strong potential to promote industrialisation. According to the assessment, AfCFTA modalities on goods trade will lead to an increase in GDP of all African countries, with a projected growth of between 0.35 percent (US$28bn) and 0.54 percent (US$44bn) in Africa’s GDP in the year 2040 relative to the baseline without AfCFTA in place. Ghana’s GDP in 2040 will be between 0.29 percent (US$450m) and 0.31 percent (US$510m) higher than the baseline without AfCFTA, the assessment estimated. The assessment also tipped the country’s exports in 2040 to increase by between 1.7 percent and 2.0 percent, equivalent to US$867m and US$1bn respectively, relative to the baseline situation.
African Union leading on Data Economy in Africa ... for Africa (African Union)
For Africa, Data is an essential resource for economic growth, competitiveness, innovation, job creation and societal progress. It is used in almost every sector, its applications ranging from supporting small farmers in increasing their productivity to modelling and tracing the spread of pandemics such as COVID-19 and the improved management of basic services such healthcare, water and electricity supply chains. H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy addressed the Launch event of the ‘Africa Data Leadership Initiative (ADLI)’, organized by the UN Economic Commission for Africa, Smart Africa and Future State. This initiative aims at ensuring the data economy drives equitable growth and social progress across the Continent.
International
Nigeria’s former finance minister puts Africa one step closer to WTO leadership (African Business Magazine)
Nigeria’s Ngozi Okonjo-Iweala has progressed to the third and final round of the World Health Organisation’s (WTO) leadership race, raising the chances of an African director-general at the most powerful organisation in global trade. The former Nigerian finance minister joins South Korea’s Yoo Myung-hee in the last stage, assuring that the next director-general will be a woman.
Ambassador David Walker, chairperson of the general council, said today that the ultimate objective of the selection process is to make sure that the head of the global trade body is chosen by consensus. “Our aim continues to be to encourage and facilitate the building of consensus among members, and to assist in moving from this final slate of two candidates to a decision on appointment,” he said during Thursday’s announcement.
Next Africa: A Chance to Be Heard at the WTO (Bloomberg)
Ngozi Okonjo-Iweala’s advance to the final selection round for director-general of the World Trade Organization gives Africa a chance to have a say in shaping global commerce. If Okonjo-Iweala wins she will be the first African and the first woman to lead the WTO. “An African at the head of the WTO who is also a multilateralist is an enormous opportunity for the continent and a source of pride,” said Vera Songwe, head of the United Nations Economic Commission for Africa.
DDG Wolff: Open markets essential to global economic recovery (WTO)
Keeping international markets open to trade is an essential part of the agenda for economic recovery from the COVID-19 pandemic, Deputy Director-General Alan Wolff said on 8 October. In remarks delivered to the virtual GLOBSEC 2020 Bratislava Forum, DDG Wolff said the WTO’s contribution to the recovery would be substantially enhanced if members take forward the ongoing process of systemic reform.
The Pulse check report issued by a consortium of multilateral development banks and trade research institutions, recounts the views of sub-Saharan banks on multi-lateral development banks’ (MDBs) responses to uphold a well-functioning trade finance market. Demand for trade finance instruments in the first half of 2020 seems to have flattened compared to growth expectations, while banks, supplying those instruments, have typically “flown to safety” restricting their lending to existing clients. Overall, according to interviewees, the market has contracted from at least 10% on average from 2019 levels in volume and even greater in value because of furloughed projects and investments. Full recovery is only anticipated by end of 2021 at the earliest. The report makes several priority recommendations for MDBs.
pdf Pulse Check: Trade Finance in Sub-Saharan Africa during COVID-19 (1.23 MB)
The African Development Bank hosted an online seminar 7 October as part of the fourth annual Global Infrastructure Forum, drawing together representatives of government, the private sector and multilateral development institutions to discuss strengthening infrastructure development in the COVID-19 pandemic era. The COVID-19 pandemic has sharpened Africa’s already urgent need for added infrastructure spending. The African Development Bank estimates Africa’s infrastructure financing needs at up to $170 billion a year by 2025, with an estimated financing gap of as much as $108 billion a year.
Greener Africa: Time for ‘free trade but also fair trade with Europe’ (The Africa Report)
Africa’s summit meeting with the European Union (EU) in 2021 is a critical opportunity to assert that the relationship is mutually beneficial only if Africa produces what it consumes. Europe should in turn practice the solidarity it preaches in principle, by supporting capacity building in Africa for self-sufficiency. Africa needs to stand firm, with a clear, long-term vision, in order to forge with the EU a common and equitable path to prosperity.
Pandemic highlights importance of EU-AU partnership (EURACTIV)
If there was any doubt about the importance of a strong relationship between Africa and the European Union they have been dispelled by the COVID-19 pandemic, says Samuel Outlule, Botswana’s ambassador to the EU and Belgium. “The EU has been a very strong and consistent partner and COVID-19 has demonstrated that we need each other more than ever before,” Ambassador Outlule told EURACTIV. Back in early March, the European Commission unveiled its ‘Towards a comprehensive strategy with Africa’ as part of a shift towards a less paternalist approach to its relations with African leaders. Within days of its publication, however, the pandemic swept across Europe and, six months on, the world looks rather different.
EAC eyes strengthening economic integration in new partnership with EU (The Kampala Post)
The East African Community (EAC) has partnered with the European Union (EU) to roll out a 16.4-million-euro program aimed at strengthening regional economic integration (CORE) through advancing implementation of the Customs Union and Common Market Protocols. “Thanks to digital solutions, customs operations will be simpler, quicker, as well as safer during this pandemic situation thereby resulting in a reduction of the costs of cross-border trade,” the EAC said in a statement. “A new impetus will be given through this programme to promote free movement of services, a crucial building block for the creation of the EAC Common Market.”
Pandemic has forever changed online shopping, UN-backed survey reveals (UN News)
The study examined how the global crisis has impacted the way people use e-commerce and other digital tools, with more than half of respondents reporting they now shop online more frequently. “The COVID-19 pandemic has accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the world economy begins to recover,” said UNCTAD Secretary-General Mukhisa Kituyi. The greatest shift to online shopping occurred among consumers in emerging economies, according to the survey.
Standards continue to grow as consumers focus on health, sustainability (ITC)
Consumer preferences to buy healthier and more sustainably grown goods continues to underpin the steadily rising popularity of certified products such as soybeans, cocoa and bananas. More farmland than ever is being used to grow standard-compliant crops, according to the International Trade Centre’s (ITC) latest report on sustainable markets. The State of Sustainable Markets 2020: Statistics and Emerging Trends presents the most recent data on area, production volume and producers for 14 major standard-setting organizations focusing on eight commodities and forestry. The report finds that the share of certified farmland of most of these crops is expanding and that this trend will probably continue – especially if emerging markets and producing countries get on board.
Business supply chain strategies are evolving, can poor countries benefit? (Trade 4 Dev News)
Participation in value chains has been a key plank of low-income country development strategies over the past generation. Many analysts and businesses are anticipating a period of transformation that will see a wide-ranging overhaul of supply chain configuration. Forces at play include the adoption of fourth industrial revolution technologies, the rise of political and economic nationalism, the urgent need to address environmental sustainability and the greater frequency of shocks to the global trading system emanating from endogenous and exogenous risks like extreme weather events, pandemics, cybersecurity and financial crises. As the supply chain management decisions of multinationals and lead retailers adjust to this new environment, what are the implications for less developed countries?
Eighth United Nations Conference on Competition and Consumer Protection (UNCTAD)
The Eighth United Nations Conference taking place on 19-23 October 2020 will review all aspects of the set of multilaterally agreed equitable principles and rules for the control of restrictive business practices. The Conference provides an occasion for members of Government, heads of competition and consumer protection authorities and senior officials from both developed and developing countries, including least developed countries and economies in transition, to establish direct contacts and promote voluntary cooperation and the exchange of best practices.
Unemployment Main Concern for Business Leaders but Climate is Moving Up List of Top Risks (WEF)
Unemployment is the main concern for business executives globally, with fiscal crisis – the top concern in 2019 – coming third, according to the World Economic Forum’s interactive map on Regional Risks for Doing Business 2020. “The employment disruptions caused by the pandemic, rising automation and the transition to greener economies are fundamentally changing labour markets. As we emerge from the crisis, leaders have a remarkable opportunity to create new jobs, support living wages, and reimagine social safety nets to adequately meet the challenges in the labour markets of tomorrow,” says Saadia Zahidi, Managing Director at the World Economic Forum.
IMF Executive Board Discusses Paper “Toward an Integrated Policy Framework”
The International Monetary Fund’s Executive Board met on September 28, 2020 to discuss findings of staff’s analytical work on an Integrated Policy Framework (IPF) aimed at helping formulate appropriate responses to fluctuations in international capital flows and other shocks. A staff paper summarizes the key analytical findings, which will serve as an input into a forthcoming review of the IMF’s Institutional View on the Liberalization and Management of Capital Flows.
Related News
World Bank confirms economic downturn in sub-Saharan Africa, outlines key polices needed for recovery
As Sub-Saharan African countries continue to face economic uncertainty in the time of COVID-19, the region’s latest macroeconomic analysis says governments can look to policy reform as a driver of economic recovery.
Driven by the economic fallout of the COVID-19 global pandemic, growth in Sub-Saharan Africa is predicted to fall to -3.3 percent in 2020, pushing the region into its first recession in 25 years, according to the latest regional economic analysis Africa’s Pulse: Charting the Road to Recovery. The pandemic could also drive up to 40 million people into extreme poverty in Africa in 2020, erasing at least five years of progress in fighting poverty.
While the health consequences of the COVID-19 pandemic have been less devastating than expected in the region, the combination of domestic lockdowns and related spillovers from the global recession significantly impacted economic activity. With over a million reported COVID cases across the continent, the pandemic is still not under control in Sub-Saharan Africa. Some governments, notably Senegal and Mauritius, have acted rapidly to reduce the spread of infections; however successful containment measures come with a high economic cost, as has been seen across the globe.
“The road to recovery may be long, and it may be steep, but prioritizing policy actions and investments that address the challenge of creating more, better and inclusive jobs will pave the way for a faster, stronger and inclusive recovery for African countries,” said Albert Zeufack, World Bank Chief Economist for the Africa regions.
Nigeria’s real GDP contracted by 6.1 percent year-on-year in the second quarter of 2020 – the worst result in more than a decade. South Africa, operating under severe containment measures, saw its real GDP contract by 17.1 percent year-on-year in the second quarter of 2020. Angola, Sub-Saharan Africa’s second largest oil producer after Nigeria, saw its economy contract by 1.8 percent year-on-year in the first quarter of 2020.
The decline in growth has been stronger among metals exporters where real GDP is expected to contract by six percent, partly reflecting the large drop in output in South Africa. Among oil exporters, after expanding by 1.5 percent in 2019, real GDP is projected to fall by more than four percent in 2020, owing to contractions in Angola and Nigeria.
In contrast, for non-resource-intensive countries, the decline in growth in 2020 is expected to be moderate, on average. In several non-resource-intensive countries, including Côte d’Ivoire, Ethiopia, and Kenya, growth is expected to slow substantially, but remain positive, owing to their more diversified economies. Meanwhile, the tourism-dependent economies, especially those of Cabo Verde, Mauritius and the Seychelles, experienced a sharp contraction as exceptionally weak international tourism severely impacted the service sector.
The substantial downturn in economic activity will cost the region at least $115 million in output losses this year. Gross domestic product per capita growth is expected to contract by nearly 6.0 percent, in part caused by lower domestic consumption and investment brought on by containment measures to slow the spread of the coronavirus.
“Although the pandemic is not over and the persistence and spread of the virus is uncertain, African governments have started putting in place policies and programs to support an inclusive and sustainable post-pandemic recovery,” said Hafez Ghanem, World Bank Vice President for Eastern and Southern Africa. “Countries are putting in place policies and programs that help create jobs and accelerate economic transformation to reduce the economic impact of the pandemic now, and build the capabilities needed to ensure inclusive economic growth in the future.”
Africa’s Pulse notes that the road to recovery will also require massive investments across countries, as well as financial support from the international community, and recommends a bold reform agenda that includes policies that create fiscal space, along with policies to speed up job creation.
By mid-September, 46 countries in Sub-Saharan Africa had put in place 166 social protection measures – with social assistance representing 84 percent of these measures. Social protection programs have proven to be a critical tool to mitigate the social impact of the pandemic.
“Steady recovery in Sub-Saharan Africa after the COVID-19 pandemic requires policies that foster sustained growth and build resilience, but growth alone is not enough,” said Zeufack. “African countries need to prioritize now policies and investments to create more better and inclusive jobs: that’s the key to sustained, inclusive and resilient growth.”
Several countries, including South Africa, Nigeria, and Ethiopia, have already begun implementing long-needed reforms in energy and telecommunications spurred by the current crisis, and 25 percent of African firms have accelerated the use of digital technology and increased investments in digital solutions.
The Pulse notes that the pandemic has also underscored the importance of the digital economy enabling governments, business and society in a time of lockdowns and social distancing, while recognizing government interventions to reduce the cost of devices and services, avoid disconnections for lack of payment, and increase bandwidth. These measures have been complemented by actions to facilitate network expansion and adopt new technologies, such as Google Loon in Kenya and Mozambique, and the boosting of internet efficiency in Ghana.
Noting that adoption of digital technologies by governments, households and firms in Sub-Saharan Africa still lag behind that of other regions in the world, the Pulse recommends improvements in areas from digital infrastructure and business models, to digital skills and literacy, as well as more effective regulation to expand digital infrastructure and make connectivity affordable, reliable and universal.
Economic Outlook
The Pulse predicts the region will rebound in 2021, however growth will vary across countries. While South Africa is expected to experience a weak recovery, overall growth in Eastern and Southern Africa region is expected to average 2.7 percent. Several countries, such as Ethiopia, have started to take advantage of the opportunity to put policy reforms in place.
“We’ve seen that Angola, Ethiopia and South Africa have accelerated reforms during this time, ensuring that they are poised for growth when the threat of the pandemic has subsided,” said Hafez Ghanem, World Bank Vice President for Eastern and Southern Africa. “There’s no escaping the economic impact that COVID-19 has had on the sub-region, but accelerating reforms is one way to be in the best possible position post-pandemic.”
While the Pulse notes Nigeria’s economic recovery will be weak as well, the Western and Central Africa region is expected to experience an average growth of 1.4 percent. “As COVID-19 continues to put substantial pressure on Western and Central African economies, it is important for policymakers to create the infrastructure necessary for rapid recovery,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa. “Strong policies create the critical cornerstone for sustained, inclusive recovery and improved resilience to shocks.”
Amid the significant economic declines, the analysis recommends governments look to policies African countries need to move toward productivity-driven growth, and create more, better and inclusive jobs. While Pulse authors acknowledge that the road to recovery will be long and arduous – particularly as the region’s economic future remains uncertain amid concerns of a second wave of COVID-19 infections – they recommend governments aim to prioritize and support policies and investments that focus on connecting people to job opportunities, which can help end extreme poverty, particularly post-COVID-19.
In addition to recommending reconstituting of fiscal space to help governments finance programs that will stimulate economic recovery, the Pulse also highlights the following areas for policy consideration:
- Sectoral reallocation policies, to foster the shift from exporting raw materials to greater value addition and intra-Africa value chains. As global trade takes time to recover, policymakers in the region need to promote the development of regional value chains while they are building the foundations and capabilities needed for more comprehensive continental involvement. The African Continental Free Trade Area (AfCFTA) has an important role to play by reducing production costs associated to tariffs, non-tariff barriers and trade facilitation problems. The AfCFTA can also help organize production across the region, expand intra-regional trade and build resilience along supply chains.
- Spatial integration policies, to foster agricultural productivity and reallocate resources to more efficient job-creating locations through enhanced rural-urban and inland-coastal connectivity and investing in cities. Well-functioning cities are the cradle of innovation and of higher productivity, tradable industrial and service sectors. Boosting agriculture productivity, and improving living conditions in rural areas, including food security, will play a critical role. Scaling up infrastructure spending to invest across urban and rural areas, particularly, expanding access to basic infrastructure services.
“Charting the course to rapid recovery will also require massive investments across countries throughout the region, which governments must prepare for,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa. “The recovery journey will be difficult, but without the advancement of structural reforms, robust growth post-pandemic will be even more challenging.”
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National
Illicit trade hotline to curb illegal activity (IOL)
Illegal trading is one of the biggest threats to economic order and growth in the country, according to the Consumer Goods Council of SA (CGCSA), who have launched the illicit trade hotline. Following the temporary ban on the sale of cigarettes and alcohol to help manage the health impacts of the Covid-19 pandemic, concerns were voiced by traders and other groups that an unintended consequence may have been an increase in illicit trade of these products. President of the SA Informal Traders Alliance (Saita) Rosheda Muller, said: “As the national voice of the thousands of informal traders, hawkers, spaza shop owners and home-based operators across all nine provinces in South Africa, we are calling on all informal traders across South Africa to report illicit goods.”
Industrialisation and Beneficiation Gaining Momentum-Director General October (the dtic)
The Director-General of the Department of Trade, Industry and Competition, Mr Lionel October, has presented the Annual Performance Reports for the Financial Year 2019/2020 of the Economic Development Department and the Department of Trade and Industry to the Portfolio Committee on Trade and Industry. One of the key initiatives of the dtic has been the development of Master Plans for different sectors of the economy, with the aim of developing and protecting them to ensure they contribute towards economic growth and job creation. October stated that the Poultry and the Retail-Clothing, Textile and Footwear Masterplans were developed and launched at the Presidential Investment Conference in November 2019.
South Africa mining resilient despite COVID-19 challenges (Mining Global)
South Africa’s mining companies remained resilient and performed on all fronts, according to a PwC report, highlighting the bullish impact of stronger commodity prices and a weaker rand on the key sector. “South Africa’s mining sector continues to be a meaningful contributor to the economy and has weathered the COVID-19 pandemic in many respects – showing good profitability and retaining strong balance sheets,” says Andries Rossouw, PwC Africa Energy Utilities & Resources Leader. “The long-term future is unknown, however, as there is little consensus on how the pandemic will impact the mining industry. The pandemic highlighted the absolute need to build back better and mining will play a key role in that recovery.”
Downstream Sector Deregulation Will Boost Investments – NNPC (Economic Confidential)
The deregulation of the downstream sector of the oil and gas industry in Nigeria will increase investment in the refining business and facilitate exponential growth in the nation’s refining capacity. Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, disclosed this at the African Refiners Association Week 2020 which held virtually on Tuesday. “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.”
Sisi orders shortening customs clearance time, simplifying procedures (State Information Service Egypt)
President Abdel Fattah El Sisi has ordered the customs development strategy to be focusing on the governance of Egypt’s exports and imports, in addition to simplifying customs clearance procedures and shortening their time. The customs development strategy is based on upgrading the technological infrastructure and automating procedures, in addition to linking customs offices and points across the country through the single-window system and tightening customs control using the latest techniques on that score, the minister noted.
Cotton export revenue set to increase (New Vision)
Uganda’s export revenue from cotton is set to increase following the launch of the Cotton Development Organisation (CDO) module under the Uganda Electronic Single Window (UESW) system. This will see stakeholders enjoy reduced paper-based procedures and delays in getting the required regulatory documents for export, such as ginnery certificates, ginning certificate, lint export certificate and the lint quality certificate. This, according to the TradeMark East Africa acting country director for Uganda, Damali Ssali, will enable the country export more cotton and increase export revenue from the cash crop.
Nigeria’s Debt Fast Becoming Unsustainable, May Reach N34trn – LCCI (Economic Confidential)
The Lagos Chamber of Commerce and Industry has said the growing level of Nigeria’s debt is fast becoming unsustainable in the light of dwindling oil prices and production and might hit N34tn by year-end. Quoting the Debt Management Office, Mabogunje said the public debt stock grew by eight per cent to N31tn at the end of the second quarter, equivalent to 21 per cent of the Gross Domestic Product. According to her, the increase in public debt stock was fueled by fresh domestic and external borrowings required to plug the wider fiscal deficit in the revised 2020 budget given the impact of the COVID-19 pandemic and the impact of recent exchange rate depreciation.
Africa
Mozambique: Malawi Should Not Remain Landlocked – Nyusi (allAfrica.com)
Mozambique and Malawi must work very closely together in order to maximize bilateral cooperation and facilitate the transit of Malawian goods through Mozambican ports and rail corridors, thus reducing the landlocked country’s isolation, declared Mozambican President Filipe Nyusi on Tuesday. “The Beira and Nacala development corridors have many opportunities that can be explored for mutual benefit. The potential can be maximized, putting into effect a new approach, which will turn Malawi into a connected country, no longer landlocked. We support this vision,” Nyusi said.
Minister defends Congo road project (New Vision)
Works and transport minister Gen. Edward Katumba Wamala has said Uganda is guaranteed a high return on investment in the 223km road project in DR Congo. Katumba said if Uganda could earn $532m from trade with DRC in 2018, the return could be much higher with a well constructed road network. Figures from the global trade quantifier; United Nations International Trade Statistics Database (COMTRADE) , indicate that in 2018, Uganda’s total exports to DRC stood at $532m, with informal trade exports worth $312m and formal trade accounted for $221m. Uganda’s imports from DRC were $34.49m.
Dar Port, Mombasa competition heats up (New Vision)
The Uganda Revenue Authority (URA) commissioner customs Abel Kagumire, said an increasing number of traders are now opting to use the Dar es Salaam Port following the deployment of URA officers at the port to clear Uganda bound cargo as well as that in transit. This, he said, has smoothened the clearance process, increasing efficiency at the port. “You can pay your taxes in Uganda when your goods are in Dar es Salaam and simply pick them and drive non-stop to your final destination which never used to happen before,” he said.
JPM eyes trade volume rise (Dailynews)
President John Magufuli has welcomed the opening of a new chapter for trade relations between Tanzania and Malawi. Dr Magufuli was optimistic over a brighter future, particularly rising trade volume between the two nations following successful talks on a number of issues meant to facilitate trade flow between Dar es Salaam and Lilongwe. Among other trade facilitations, Dr Magufuli said they have agreed to establish One-Stop-Border Post to allow ease movement of people, goods and services between the two nations. “We want the relationship between Malawi and Tanzania to become more commercial, and with this Malawian President’s visit, I believe we’ll move very fast,” he assured before delegations from both countries at the Magogoni State House.
Legislative agenda for gender mainstreaming in renewable energy should be strengthened (The Chronicle)
Members of Parliament in southern Africa have been urged to take concrete action in driving the legislative agenda to advance gender equality in the renewable energy sector. Speaker of the National Assembly of Zimbabwe, Advocate Jacob Mudenda said during a virtual workshop with Parliamentarians from the Southern African Development Community (Sadc) that women entrepreneurship within the energy sector has the potential to significantly enhance economic growth. “It is of significance that MPs take a concrete legislative agenda whose objective is to expeditiously gender mainstream renewable energy in their respective countries,” Adv Mudenda said.
African refiners seek financial solutions, infrastructure upgrade (The Guardian Nigeria)
African Refiners & Distributors Association (ARA) has stressed the urgent need for countries on the continent to finance downstream projects, especially refineries, as part of measures to ensure cleaner air, and mitigate premature death. ARA believes that shoring finance to upgrade oil refineries and associated storage and distribution infrastructure will check the numbers of premature deaths caused by air pollution in other developing world economies. “The key is to define ‘sustainable’, adding: ”Only then can we secure the financing for the projects required to upgrade our refineries and infrastructure and deliver efficient supply chains for clean fuels to let Africa catch up with the rest of the world on the climate change agenda,” said Executive Secretary, Anibor Kragha.
Fight against money laundering and terrorism financing: The BEAC opts for digital solutions to trace financial flows (Business in Cameroon)
The Bank of Central African States (BEAC) recently launched a selection process for the acquisition and implementation of an IT solution that will filter, profile, and trace financial flows within the CEMAC region. This process is launched about two (2) years after the Action Group against Money-Laundering in Central Africa (GABAC) sent a report (on September 27, 2018) to its seven-member countries denouncing the persistence of the deficiencies it previously identified in the fight against money laundering and terrorism financing. According to the GABAC, in addition to exposing the member countries to sanctions provided by the Mutual Evaluation Procedures Manual, these deficiencies may result in complaints being filed against the countries before the Financial Action Task Force (FATF).
Transport costs still a concern for importers, shippers says (The Star)
In its 2019/2020 budget, the government announced that imported goods will not be re-inspected at the port of Mombasa once cleared at the port of origin, a move aimed at speeding up the flow of goods in the market and cutting on shipment costs. SCEA chairman Genesio Mugo said that the last mile costs for instance to the Industrial Area, Nairobi, remain high from an average of $100 (Sh10,850) in the years prior to 2018. “The rise on the rates is informed by the high truck turnaround time at the ICDN averaging seven hours,” said Mugo.
Information Brief on AfCFTA Third World Network-Africa: 23rd September 2020 (TWN Africa)
Some three months to the official date of January 1, 2021, for the trading of goods under Africa’s Continental Free Trade Area (AfCFTA), work still remains to be done within the Economic Community of West African States (ECOWAS) before the regional bloc can operationalize the trade pact. This borders on the rules of origin, the regional list for the market access offer as a customs union and building the productive capacities of the various stakeholders.
African Continental Free Trade Agreement to benefit Namibia through intra-regional trade (Namibia Economist)
AfCFTA is one of the flagship projects of the Africa Union, a key programme and initiative that has been identified to accelerate Africa’s growth and development by boosting intra-African trade and the Continent’s trading position in the global marketplace. At the recent Africa Summit at Princeton University in the United States under the theme “The Future is African: Post-COVID Economic Recovery Reimagined,” Ms Eunice Ajambo, an economist and the Development Coordination Officer at UN Namibia, did a presentation on AfCFTA as a source of economic stimulus post-Covid, and its contribution to the UN’s Sustainable Development Goals. She noted that the impetus for AfCTA is founded on its potential to enhance the following:
AfCFTA: NASME urges government to scale up investments for SMEs (WorldStage)
The Nigerian Association of Small and Medium Enterprises (NASME), has urged government to scale up investments in infrastructure, manufacturing and agriculture to boost the capacity of Small and Medium Enterprises for the Africa Continental Free Trade Area (AfCFTA). Mr Eke Ubiji, Executive Secretary, NASME made the remarks in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos. “To build a thriving and sustainable economy, a lot of works need to be done in the following areas of infrastructure, injection of more funds into manufacturing and agriculture and the MSME Sector.
Cemac: Budget deficit worsens to XAF495 bln in Q1-2020 (Business in Cameroon)
The six CEMAC countries recorded a budget deficit of XAF495 billion in Q1-2020, according to a note on public finances recently published by the central bank (BEAC). The budget deficit (a closely monitored indicator in the CEMAC region) has thus worsened considerably compared to the XAF15 billion budget surplus recorded in Q1-2019. This is due to the coronavirus pandemic, which affected the prices and volume of commodities exported by the countries.
Pandemic to dominate SADC PF plenary (New Era Live)
The SADC Parliamentary Forum will hold its 47th Plenary Assembly Session virtually from between 9-11 October under the theme: ‘The Role of Parliaments in Strengthening Accountability during a pandemic: The Case of Covid-19.’ This would be the first time that a SADC PF plenary takes place virtually. “The theme recognises that there has been a change in the global, regional and national situations and there are new challenges. Therefore, national parliaments are on uncharted waters. This plenary will enable sharing of new experiences within the region based on inter-parliamentary cooperation as we move to strengthen parliamentary democracy in the SADC region,” SADC PF Secretary General Boemo Sekgoma this week said.
International
Driven by the economic fallout of the COVID-19 global pandemic, growth in Sub-Saharan Africa is predicted to fall to -3.3 percent in 2020, pushing the region into its first recession in 25 years, according to the latest regional economic analysis Africa’s Pulse: Charting the Road to Recovery. “The road to recovery may be long, and it may be steep, but prioritizing policy actions and investments that address the challenge of creating more, better and inclusive jobs will pave the way for a faster, stronger and inclusive recovery for African countries,” said Albert Zeufack, World Bank Chief Economist for the Africa regions.
Africa’s Pulse No. 22 - October 2020
WTO members narrow field of DG candidates
From 24 September to 6 October, WTO members expressed preferences on five remaining candidates during consultations with Amb. Walker, Amb. Dacio Castillo of Honduras and Amb. Harald Aspelund of Iceland. Based on the depth and breadth of preferences articulated to the facilitators, Amb. Walker told a Heads of Delegation meeting on 8 October that the two candidates who secured the broadest and deepest support from the membership and who should subsequently advance to the final round are Ngozi Okonjo-Iweala of Nigeria and Yoo Myung-hee of the Republic of Korea.
EAC, EU launch regional economic integration programme
The EU Ambassador to Tanzania and the East African Community, Manfredo Fanti and the Secretary General of the EAC, H.E. Libérat Mfumukeko, today launched a new EUR 16,400,000 (approx. 43.87 billion TZS) joint programme to strengthen regional economic integration, through advancing implementation of the Customs Union and Common Market Protocols. In particular, the Common Objectives in Regional Economic Integration (CORE) programme will be instrumental in moving towards a fully-fledged Customs Union, by supporting more robust information, communication and technology (ICT) based data exchange protocols for the clearing of goods. Thanks to digital solutions, customs operations will be simpler, quicker, as well as safer during this pandemic situation thereby resulting in a reduction of the costs of cross-border trade.
UK’s Minister For Africa To Visit Zambia (Zambia Reports)
The UK’s Minister for Africa, James Duddridge MP, will make a two-day visit to Zambia beginning tomorrow, 8th to Friday, 9th October 2020. The Minister’s visit will strengthen the broad bilateral relationship that exists between the United Kingdom and the Republic of Zambia. Mr Duddridge said: “This visit provides an opportunity to strengthen trade links between the UK and Zambia and highlight where we can work together now and in the future. Zambia has an important role to play in SADC and the southern Africa region and I will be discussing a range of important regional and international trade and security issues with members of the Government and other key stakeholders.”
United States commits nearly $23 million to support Economic Governance and Women’s Empowerment in Egypt (Africanews)
The United States, through the U.S. Agency for International Development (USAID), and Egypt’s Ministry of International Cooperation signed an agreement to add $22.8 million to the five-year Inclusive Economic Governance bilateral assistance agreement. In line with Egypt’s Vision 2030, this funding is intended to improve the investment environment and empower women to join in the labor force. “This year, we identified seven priority sectors and allocated additional financing to execute more projects in health, education, higher education, science and technology, agriculture, governance, and trade,” H.E Dr. Rania Al Mashat, Minister of International Cooperation, said.
Following week of trade discussions, 4 takeaways for LDCs (Trade 4 Dev News)
As 2020 continues its turmoil, the global trade community is continuing to try and adapt, along with everyone else. With the cancellation of the World Trade Organization’s annual Public Forum due to COVID-19, Geneva Trade Week came to fill in the gap, creating a digital space for the dialogues that usually happen in person in the negotiation and meeting rooms, the halls and the courtyard spaces along Lake Geneva. What is affecting least developed country (LDC) trade the most? What are the main concerns? What promise and potential is there? What issues intersect with larger interests? Moving forward, here are a few items that stand out.
Top global traders push to cut shipping emissions (Reuters)
Some of the world’s biggest commodities and energy players on Wednesday launched an initiative to cut and track emissions from the ships they charter as efforts intensify to reduce the maritime industry’s carbon footprint. About 90% of world trade is transported by sea, and the UN shipping agency – the International Maritime Organization (IMO) – aims to reduce overall greenhouse gas emissions by 50% from 2008 levels by 2050.
How more inclusive ICT policy and infrastructure could stem the spread of COVID-19 (ITU)
Epidemiological evidence has shown that the spread of pandemics across regions and nations follows patterns of underlying social and economic inequalities, among them digital exclusion. In her opening remarks, Ms. Bogdan-Martin emphasized how ICT infrastructure and universal connectivity can reduce the pandemic’s disproportionate effects on the digitally excluded. “As the Internet becomes the primary information channel on the pandemic for those lucky enough to have a connection, inequality in access to services and ICT infrastructures results in increased information asymmetry between users and non-users,” she said. “This compromises the development potential of this transformative technology.”
MSF supports India and South Africa ask to waive coronavirus drug patent rights | MSF
In a landmark move, India and South Africa on 2 October asked the World Trade Organization (WTO) to allow all countries to choose to neither grant nor enforce patents and other intellectual property (IP) related to COVID-19 drugs, vaccines, diagnostics and other technologies for the duration of the pandemic, until global herd immunity is achieved. “A global pandemic is no time for business-as-usual, and there is no place for patents or corporate profiteering as long as the world is faced with the threat of COVID-19,” said Leena Menghaney, South Asia Head of MSF’s Access Campaign. “With this bold action, India and South Africa have shown that governments want to be back in the driver’s seat when it comes to ensuring all people can have access to needed COVID-19 medical products, medicines and vaccines, so that more lives can be saved,” said Menghaney.
Strong government response needed in COVID battle (Harvard Gazette)
A worldwide forum convened to share insights gleaned from the fight against the novel coronavirus highlighted the importance of a strong, coordinated government response as crucial to stopping its spread, both within a country and internationally. Salim Abdool Karim, director of the Centre for the AIDS Programme of Research in South Africa (CAPRISA) and member of the African Task Force on Coronavirus, Africa Centres for Disease Control and Prevention (Africa CDC), said that COVID-19 now appears to be in decline on the continent, though that could be from underreporting or under-testing in some of its countries, or fewer of its citizens travel internationally. However, he too credited a coordinated government response with saving lives. Citing a “strong and consistent political commitment” by the African Union, he noted that Africa CDC quickly set up a platform for a coordinated response for supplies. “We were not competing against each other for, say, test kits,” he said.
Commonwealth Finance Ministers call for extended financial support for vulnerable nations (The Commonwealth)
Commonwealth Finance Ministers have today issued their first joint statement in over a decade, in which they called on the G20, Paris Club, World Bank and IMF to extend financial support to vulnerable nations given the deep and widespread economic impact of the COVID19 pandemic. It urges the G20 to extend its Debt Service Suspension Initiative (DSSI) beyond 2020 and on the Paris Club group of countries to lead on innovative debt instruments which could help provide additional liquidity to Commonwealth and other vulnerable states.
COVID-19 to Add as Many as 150 Million Extreme Poor by 2021 (World Bank)
Global extreme poverty is expected to rise in 2020 for the first time in over 20 years as the disruption of the COVID-19 pandemic compounds the forces of conflict and climate change, which were already slowing poverty reduction progress, the World Bank said today. “In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors. World Bank Group support – across IBRD, IDA, IFC and MIGA – will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery,” said World Bank Group President David Malpass.
World Economic Outlook, October 2020 – Analytical Chapters (IMF)
To contain the coronavirus (COVID-19) pandemic and protect susceptible populations, most countries imposed stringent lockdown measures in the first half of 2020. Meaanwhile, economic activity contracted dramatically on a global scale. This chapter aims to dissect the nature of the economic crisis in the first seven months of the pandemic. It finds that the adoption of lockdowns was an important factor in the recession, but voluntary social distancing in response to rising infections also contributed very substantially to the economic contraction. Therefore, although easing lockdowns can lead to a partial recovery, economic activity is likely to remain subdued until health risks abate.
Chapter 2: The Great Lockdown, Dissecting the Economic Impact
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South Africa’s exports to China were surprisingly better in the ‘pandemic quarter’ (Engineering News)
While South Africa had seen on overall decline in exports during the lockdown, exports to China had grown by just more than 2% year-on-year during the second quarter, says research institute Trade & Industrial Policy Strategies (TIPS). The result is that, during the quarter, China’s dominance as South Africa’s main export destination grew to 13.4% of all exports, at R36.6-billion. The top five products that were exported to China during the second quarter were ores, iron and steel, wood pulp, copper and fruit and nuts, altogether accounting for 88% of South Africa’s total exports to China by value.
Copyright Act ‘discriminatory and ‘exclusionary’ and reform is urgent, say civil society organisations (Daily Maverick)
A group of civil society organisations and activists have written to Parliament, the Department of Trade and Industry, Economic Development, Tourism, Small Business Development and Employment and Labour, regarding the recently amended Copyright Bill. The group says that in its current format, the copyright regime is “discriminatory” and “exclusionary” and that it infringes the rights of pupils, teachers, people with disabilities, artists, musicians, and writers. They are lobbying for urgent reforms that would be in line with our Constitution’s Bill of Rights as well as the international human rights agreements that South Africa has ratified.
4IR Commission Report Recommendations gazetted (SAnews)
Communications and Digital Technologies Minister, Stella Ndabeni-Abrahams, has announced the release of the Fourth Industrial Revolution (4IR) Commission Report for public consumption. This comes after Cabinet last month approved the report, which was handed to President Cyril Ramaphosa in August.
N$8 million earmarked for informal economy (New Era)
Through the Southern African Development Community (SADC) trade-related facility, the industrial upgrading modernisation plan (IUMP) is expected to inject around N$8 million into Namibia’s informal economy. The funds are to be distributed to 52 beneficiaries by end of October this year. “The adoption of the national policy will foster an operation that will foster an approach that recognises different levels of the formation such as being traceable through registration with a recognised informal economy association and operating from a normal place,” explained trade minister, Lucia Iipumbu.
Tuna value dropping, industry must plan ahead – report (New Vision)
Tuna is holding steady as a $40 billion-a-year business, but commercial fisheries worldwide are hauling in bigger catches of dwindling value, threatening the long-term survival of some species, according to a new report. “Fisheries caught 500,000 more metric tons in 2018 than in 2012, but were paid $500 million less in dock value,” study co-author Grantly Galland, an officer with The Pew Charitable Trusts’ international fisheries group, told AFP. Unless governments that regulate the industry through regional management bodies adopt long-term strategies, everything from supermarket tuna to $100-a-portion sashimi could wind up in short supply, the report warned.
Economist call for support for small businesses (New Vision)
Economic experts have called for evidence based research to support the design of interventions for the micro, small and medium size enterprises that can sustain them post COVID-19 pandemic. The economists have expressed fears that bigger enterprises might benefit from current government support at the expense of the micro and small enterprises if support measures are not inclusive for little enterprises. This was during the launch of a study on the socio-economic impacts of COVID-19 on MSMEs in Uganda.
Mthuli Ncube rules out de-dollarisation (The Zimbabwe Mail)
Finance Minister Mthuli Ncube says that Zimbabwe is beginning to engage multilateral creditors, with a view of clearing its US$1.8 billion arrears, which will see the country unlock fresh funding to aid its economic growth efforts. Zimbabwe owes US$1.2 billion to the World Bank and US$600 million to the African Bank. Ncube said the clearance plan had been affected by the coronavirus pandemic, which had seen resources being deployed in order to control and curtail the spread of the virus. As a result monthly token payments to the creditors had been suspended.
Tanzania’s central bank says economy on track amid COVID-19 pandemic (The Star Online)
Tanzania’s economy continued to perform satisfactorily despite spillover effects from the global economy due to the COVID-19 pandemic, the central bank said on Tuesday. The Bank of Tanzania said in a statement that the bank’s monetary policy committee assessment of the performance and outlook of the economy showed that the it will grow at the projected 5.5 percent in 2020. “The projection is underpinned by adequate domestic food supply, stable exchange rate, moderate oil prices and prudent monetary and fiscal policies,” said the statement.
PPE makers worried as State orders slow down (Business Daily)
Manufacturers are worried of being stuck with stockpile of personal protection equipment (PPEs) and other Covid-19 kits after the government slowed orders amid ongoing probe at the Kenya Medical Supplies Authority (Kemsa). Kenyan textiles factories, which previously exported at least 80 percent of their production largely to the US and the UK, switched to making PPEs and masks to fill a gaping domestic demand at the height of coronavirus pandemic. “Most of the procurements of PPEs, masks and other related items made in the EAC are driven by the public sector through the respective ministries of Health,” KAM chief executive Phyllis Wakiaga said via email.
SON DG targets quality local production, reduced red tapes (The Guardian Nigeria)
The newly appointed Director-General and Chief Executive of the Standards Organisation of Nigeria, Farouk Salim has stated that efforts would be geared towards reducing red tapes and stimulating the production of quality goods locally for self-sufficiency. “The LCCI would advise the need to strengthen collaboration with critical stakeholders including the private sector to ensure that he achieves the objectives of the organisation. Synergy and collaboration are very key in getting intelligence, information, collaboration and also in the area of logistics. All those things are very important in achieving the desired results,” said a statement.
Ethiopia further opens up sectors to diaspora and foreign nationals (The Africa Report.com)
As part of Ethiopia’s plan to liberalise its economy and boost investment, it is set to open up sectors that were once reserved for domestic investors. The new regulation is an extension of the country's new investment proclamation, which came into effect earlier this year that gives equal playing field to Ethiopian-born foreign nationals and foreign investors.
South Sudan oil firm bids to set up a $500m regional refinery (The East African)
South Sudanese oil marketing giant Trinity Energy Ltd is set to inject $10 million worth of new investments in its Kenyan operations and also plans to build a $500 million crude oil refinery in South Sudan to serve the region with refined petroleum products. The refinery, to be built by American firm Chemex, is expected to be operational in two to three years, with plans to start distribution of refined petroleum products to Kenya, Uganda, Tanzania and the Democratic Republic of Congo by road, owing to the absence of railway and pipeline connectivity between these countries.
Major Boost For Businesses, SDGs As President Akufo-Addo Launches 4BBT (Modern Ghana)
On Tuesday, October 6th 2020, President Nana Addo-Dankwa Akufo-Addo launched ‘For Better Business Together (4BBT)’ to inspire business-worthy behaviour, discuss and critically analyse specific local issues, and serve as a convergence point for the youth of the world. The move, according to business and industry stakeholders will go a long way to further boost business interest in line with the UN Sustainable Development Goals (SDGs).
Africa
On Thursday, October 1, 2020, in Niamey, the Minister of State, Minister of Agriculture and Livestock, Mr Albadé Abouba, representing Prime Minister Brigi Rafini, officially launched the 4th edition of the trade fair “100 % Made in Niger”, together with the “Buy Nigerien” campaign. “This initiative aims to strengthen sub-regional economic integration and the development of intra-community trade that is consistent with the objectives set through the AfCFTA, the start of which is scheduled for January 2021,” explained Minister of Trade and the Promotion of the Private Sector, Mr. Sadou Seydou.
EAC’s resource dispute resolution treaty up for signing, adoption (The East African)
East African member states are reviewing the Protocol on Environment and Natural Resources Management to create provisions for combating climate change, e-waste management and peaceful resolution of disputes related to trans-boundary resources such as the contentious Migingo Island. The EastAfrican has learnt that the agreement, which is now ready for signing, has clear provisions on reduction of greenhouse emissions, e-waste management and resolution of disputes arising from shared natural resources. The reviewed protocol provides that any dispute arising from shared resources should be addressed in a peaceful manner by the respective EAC ministers of Environment.
Member States Hold the Key to the Operation of the COMESA Information Sharing Portal
Seven countries: Burundi, Rwanda, Comoros, Egypt, Ethiopia, Mauritius and Madagascar have nominated officers that will serve as the focal persons in operationalizing the newly developed COMESA Information Sharing Portal. The portal is a resource page for real time exchange of information on regional supply and demand of essential goods manufactured in the region. Developed to support Member States during COVID-19 and after, the portal will connect producers, sellers and buyers of essential goods and help small-scale cross-border traders and Small and Medium Enterprises have access to market information.
Tripartite Transport Corridor Trip Monitoring System Set for Piloting (COMESA)
Preparatory work for launch of a Corridor Trip Monitoring System (CTMS) pilot project are an advanced stage. The CTMS is an initiative of the tripartite regional blocs; COMESA, EAC and SADC on trade and transport facilitation. Piloting of this project is planned for sections of the North-South (NS) and Walvis Bay-Ndola-Lubumbashi (WBNL) Corridors (which transit Zambia to the Kasumbalesa Border with DR Congo). Initial focus is on Zambia, a well land-linked State with eight neighbouring countries. An Inter-Agency Technical Coordination Committee (IATCC) is being set up for the Chirundu OSBP to come up with recommendations on how to address operational challenges at the border during the COVID-19 pandemic and after.
Cross Border Traders Plead With Gvt To Re-Open Borders (263Chat)
Cross border traders have pleaded with the government to reopen the Beitbridge border post which provides gateway into neighboring South Africa citing that its continued closure puts livelihoods that largely depend on trading from the southern neighbor at high risk of poverty. The call comes after South Africa re-opened its side of the border making it impossible for traders to access passage. The president of the Zimbabwe Cross-Border Traders Association, Killer Zivhu in a statement said cross border traders have since fallen on hard times.
Delays in cargo clearance at Beitbridge (The Herald)
It’s still taking up to 28 hours for a truck carrying commercial cargo to clear border controls at Beitbridge Border Post, with traffic building up as more importers and exporters in Sadc switch transit traffic from Botswana to Zimbabwe. According to transporters, the situation has been the same since Thursday last week with commercial trucks experiencing long delays related to the new Covid-19 clearance procedures by Port Health in South Africa. The delays started when South Africa temporarily stopped accepting commercial trucks from Sadc where drivers had no such certificates, just the clearance documents from their home countries. This resulted in the commercial cargo forming long queues for more than 5km in Beitbridge town.
How Africa can curb illicit financial flows to strengthen economies post Covid-19 (The Mail & Guardian)
The Covid-19 pandemic crisis has worsened the vulnerabilities caused by the excessive reliance of African economies on world markets. Africa’s main trade partners include the European Union, China, the United States and United Kingdom. Together they represent more than 50% of the continent’s trade flows. Africa’s dependence on external markets for medicinal and pharmaceutical products is particularly acute – Africa imports more than 95% of these products from outside the continent. As the continent’s main trade partners have been severely hit by the Covid-19 pandemic, Africa has suffered significant business disruptions and output contraction, including in export sectors.
ECA, Smart Africa & Future State launch Africa Data Leadership Initiative (UNECA)
The Economic Commission for Africa raised the flag on data governance Tuesday by jointly launching the Africa Data Leadership Initiative (ADLI) with Future State and Smart Africa, creating safe space for policymakers, digital rights experts and entrepreneurs to learn together. The ADLI is a peer network designed for and by African policymakers, consumer rights advocates, and private sector stakeholders to ensure the data economy drives equitable growth and social progress across the continent. The tripartite partnership is creating a peer learning and exchange network in pursuit of three interrelated and interdependent goals
Co-operation between African states key in Covid-19 jump-start (BusinessLIVE)
As the economic fallout from the Covid-19 pandemic makes its presence felt across sub-Saharan Africa, all eyes are on the next policy moves governments will make to resuscitate growth. Now, with the IMF forecasting that the volume of goods and services trade will shrink by 12% in 2020, it is clear that fragmentation is something Africa can ill afford. Encouraging intra-African trade and getting AfCFTA back on track have become a matter of urgency. Several hurdles still lie in the way of the effective implementation of AfCFTA, over and above that 24 AU member states and signatories have yet to ratify the agreement. These issues should be priorities for policymakers in clearing the road ahead.
AU, Africa CDC Launch Tech Portal to Digitise COVID-19 Certificates for Travel (Capital Business)
The African Union Commission and the Africa Centre for Disease Control Prevention (Africa CDC) have launched a Covid-19 “Trusted Travel” Portal to simplify verification of public health documentation of travelers during entry and exit across borders. The portal’s key features include information about the latest travel restrictions, and entry requirements, a database of authorised laboratories and vaccination compliance information, as well as Africa CDC mutual recognition protocol for Covid-19 testing and test results and vaccination certificates.
The anti-poverty organisation ONE and the United Nations Economic Commission for Africa (ECA), launched a new report highlighting the severe impact which the global Covid-19 pandemic has had on remittance inflows to Africa, mainly due to the situation of migrants in the countries mostly affected. The report notes that remittances have steadily increased over the past few decades and have become the main financial inflow in developing countries, surpassing foreign aid, private capital flows and foreign direct investment. However, due to the global outbreak of the Covid-19 pandemic, which has caused a global economic downturn, remittance flows to Africa are projected to decline by 21 per cent in 2020. That could mean $18 billion less going to people who rely on that money.
As Africa reopens, researchers see new chance for data-driven response (Devex)
As Nigeria lifts its COVID-19 lockdowns, the government is facing the knock-on consequences of the response. “The restriction in movement created a lot of issues, particularly for a lot of daily wage earners and those who live from hand to mouth,” Dr. Osagie Ehanire, Nigeria’s minister of health, said at the World Economic Forum’s Sustainable Development Impact Summit. As countries reopen, governments have another opportunity to weigh the health and economic impacts of every decision and develop a response that makes sense for their contexts.
Scaling up Climate Change Adaptation in Africa (UNDP)
Gabon’s firm commitment to climate is exemplified not only by its leadership of the initiative, but also by its generous financial contribution to the AAI. The ‘Enhancing Knowledge and Evidence to Scale-up Climate Change Adaptation in Africa via the Africa Adaptation Initiative’ will leverage the capacities of our network of experts from local to global levels ,working seamlessly across our Nature Climate and Energy teams, in particular across our Climate Change Adaptation portfolio, NDC Implementation Support Programme, National Adaptation Plans portfolios and the growing work in supporting countries on Insurance and Risk Finance.
International
Kenya’s plans for digital taxes and its data protection bill hit a potential snag (Techpoint Africa)
Kenya’s plan to enforce taxes on digital services and global tech giants and some provisions of its data protection bill might hit a major setback following ongoing negotiations with the United States on a free trade agreement. The Office of the United States Trade Representative released the details of the negotiation in a document titled pdf “United States-Kenya Negotiations: Summary of Specific negotiating objectives” (852 KB) . According to the document, the United States demands that Kenya removes provisions to enforce taxes on digital products like software, e-books, music, and others. It also wants Kenya to remove any provision in its data protection bill that requires US firms to store data locally
Trump sucked into Kenya plastic ban row (Business Daily)
President Donald Trump has been sucked into a row between members of the US Congress and big oil companies that are pushing to have Kenya drop its strict limits on plastics in the ongoing bilateral trade talks with Washington. “The United States should make no attempt to undermine Kenya’s, or any other developing nations, domestic law or regional agreement developed to meaningfully protect the health and environment of its people such as bans on plastic bags and restrictions on single-use plastics,” some 62 members of the US Congress said in the October 1 letter.
UK’s latest business risk guidance for South Africa covers both strengths and weaknesses (Engineering News)
The UK Department of International Trade released its updated “Overseas Business Risk – South Africa” guidance at the end of last month. The concise document provides political and economic overviews, and covers key economic developments, the business environment, human rights, bribery and corruption, security and intellectual property. “South Africa is a young, relatively stable democracy, dominated by one political party,” states the guidance. “South Africa remains the most sophisticated and developed economy in Africa and has high class companies in finance, real estate and business services, manufacturing and wholesale and retail trade.”
WTO contender suffers EU Brexit slight in leadership bid (The National)
Britain and its erstwhile EU partners have found a new battleground to play out their tension by throwing their weight behind different candidates in the race to find the next leader of the World Trade Organisation. The global system is creaking under the strains of international division as it chooses a new leader after Director General Roberto Azevedo unexpectedly quit less than a year into his second term. Voting is under way to whittle the second-round contenders list down to a final two before the end of this week.
Preparing for the next chapter in trade and sustainable development governance (Trade 4 Dev News)
The debate over how to ensure sustainable development considerations are incorporated within trade policy-making is now some decades old. There is now an increased understanding that national and global economies function better when they are also inclusive, where inequalities are addressed, and where sustainability considerations are put front and center. Yet while there is now an active, engaged community on trade and sustainable development, often this work continues in silos. Meanwhile, those who do not work directly in this space may have a broad sense of the importance of sustainability, but not have a window into the technical and political nuances of these policy decisions and what these mean for daily life.
WTO Members Advance Text Negotiations on Fisheries Subsidies (IISD)
World Trade Organization (WTO) members began work on a consolidated draft document towards an agreement on curbing harmful fisheries subsidies. Members reviewed draft language on subsidies contributing to overcapacity and overfishing, subsidies to distant water fishing, transparency provisions, and special and differential treatment of developing and least developed countries (LDCs).
Reversing the Inequality Pandemic: Speech by World Bank Group President David Malpass (World Bank)
I’m here to set the stage ahead of the IMF and World Bank Group’s Annual Meetings, which will focus primarily on COVID and debt, and will also engage partners in urgent discussions on human capital, climate change, and digital development. The pandemic has already changed our world decisively and forced upon the world a painful transformation. It has changed everything: the way we work, the extent to which we travel, and the manner in which we communicate, teach, and learn. It has rapidly elevated some industries – especially the technology sector – while pushing others toward obsolescence.
The Long Ascent: Overcoming the Crisis and Building a More Resilient Economy (IMF)
Emerging markets and low-income and fragile states continue to face a precarious situation. They have weaker health systems. They are highly exposed to the most affected sectors, such as tourism and commodity exports. And they are highly dependent on external financing. Abundant liquidity and low interest rates helped many emerging markets to regain access to borrowing – but not a single country in Sub-Saharan Africa has issued external debt since March. So, my key message is this: The global economy is coming back from the depths of the crisis. But this calamity is far from over. All countries are now facing what I would call “The Long Ascent” – a difficult climb that will be long, uneven, and uncertain. And prone to setbacks.
Trade shows signs of rebound from COVID-19, recovery still uncertain (WTO)
World trade shows signs of bouncing back from a deep, COVID-19 induced slump, but World Trade Organization economists caution that any recovery could be disrupted by the ongoing pandemic effects. The WTO now forecasts a 9.2% decline in the volume of world merchandise trade for 2020, followed by a 7.2% rise in 2021. These estimates are subject to an unusually high degree of uncertainty since they depend on the evolution of the pandemic and government responses to it.
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ITAC Completes Investigation Into the Supply of Scrap to the Metals Industry (the dtic)
The International Trade Administration Commission (ITAC) has completed an initial investigation into the supply of scrap metal as an input to the domestic steel producing industry, and has made certain changes to the Price Preference System (PPS), to improve access to affordable scrap metal for the domestic steel and other metal producing industry. During the Covid-19 National State of Disaster, the Department of Trade, Industry and Competition (the dtic) received representations from the domestic consuming industry that the PPS was not achieving the intended objectives, causing severe harm to the industry and affecting its recovery from the effects of the COVID-19 global pandemic. The representations requested that urgent action be taken to remedy the situation, retain jobs and capability in the metals sector.
Innovation, digital economy engine to drive SA’s growth (ITWeb)
South Africa’s post-COVID-19 economy must be centred on stimulating innovation and the digital economy, says Nomalungelo Gina, deputy minister in the Department of Trade, Industry and Competition (DTIC). Gina made the comments during one of the sessions at last week’s annual South African Innovation Summit, which took place online this year. She pointed out that old economic methods are now dying a natural death, and the digital economy, whose bedrock is innovation, is taking over. “Innovation and digitisation will be a necessary condition for building this economy, and will help build various SMMEs of the economy. It is not an exaggeration that the symbiosis of innovation and digital economy is now a pervasive juggernaut that is globally tearing down any inhibitive firewalls.”
Regulations tailored to alluvial diamonds will reward S Africa with jobs – Sadpo (Engineering News)
South Africa’s one-size-fits-all mining legislation is losing vital jobs for the country in the job-intensive alluvial diamonds space that requires regulations tailored to junior mining to survive, South African Diamond Producers Organisation (Sadpo) reiterated on Monday. Because there are so many alluvial deposits in South Africa, Sadpo is asking for alluvial diamonds to play a more prominent role in the economy in general and job creation in particular.
South Africa’s renewed focus on the poultry masterplan (PoultryWorld)
The South African Poultry Association has welcomed a renewed focus on the poultry sector masterplan, despite the severe impact that Covid-19 has had on the local poultry industry. South Africa’s Trade Industry and Competition Minister, Ebrahim Patel, and Agriculture Minister, Thoko Didiza, have been praised for the progress made to date. The poultry sector masterplan aims to stimulate local demand, boost exports, and protect the domestic chicken industry.
South Africa Air’s Savior Is In Ethiopia, Study Says (BloombergQuint)
South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for ruling-party lawmakers. The assessment, seen by Bloomberg, was prepared by African Aviation Services Ltd. and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official
Private sector growth hits 29-month high on rising demand (Business Daily)
Kenya’s private sector activity jumped to a 29-month high in September lifted by rising local and foreign consumer demand following the gradual re-opening of the economy in the wake of the Covid-19 pandemic. The Markit Stanbic Bank Kenya’s Purchasing Managers’ Index (PMI) – a monthly measure of private sector activity – increased to 56.3 in September from to 53 a month earlier, the highest level since April 2018. “The PMI indicated further improvement in business confidence and operating conditions this (September) month, thanks in large part to the lifting of some domestic Covid-19 containment measures,” Stanbic Bank head of Africa research Jibran Qureishi said in the PMI report.
Kenyan coffee risks losing global appeal on chemicals (Business Daily)
Kenya’s coffee risks losing its top spot in the world market following its rejection in Japan and South Korea due to high levels of chemical contamination.The chemical levels of Ochratoxin have exceeded the allowable minimum, resulting in rejection at the two countries’ border points. The coffee, which is highly sought after by roasters for blending with lower quality beans from other parts of the world, has been banned for three years with local stakeholders now raising concerns that if this is not reversed, then the produce could face total ban. “The flagging of Kenyan coffee by the key markets due to high levels of contamination does not augur well for the sector. The government has to move fast in addressing this challenge,” said Peter Gikonyo, the association’s chairperson.
New oil terminal to help cut fuel prices – EPRA (The Star)
Fuel prices are expected fall with the completion of the new Kipevu Oil Terminal (KOT), according to the Energy and Petroleum Regulatory Authority (EPRA). EPRA said demurrage charges are likely to drop as the new facility will be able to berth four vessels (three petroleum and one LPG) at once, hence save on the vessel queuing time. Kenya Ports Authority latest project update indicates the new facility, being developed at a cost of Sh40 billion, is about 63.22 per cent complete, and should be ready in twelve months. “The project is fully financed by the Kenya Ports Authority and once complete will expand our capacity to serve our increasing needs as well as the needs of our neighbouring countries that rely on Mombasa port for oil imports,” KPA management told the Star.
Govt won’t suspend COVID-19 testing at Airport – Oppong Nkrumah (Ghanaian Times)
The government has urged stakeholders to cooperate and support testing of Coronavirus (COVID-19) at the airport which is a public private partnership between the airport company and Health Frontiers. The Minister of Information Kojo Oppong Nkrumah, in an interview said the antigen tests currently underway at the airport for passengers arriving into the country were helping to save lives against the spread of the virus. The minister also announced that the government had no plans of suspending the tests at the airport, changing the company or suspending the contract.
Nigerians borrow to survive COVID-19 economic crunch (Nairametrics)
As Nigeria celebrates her 60 years of independence, it is important to examine how the economy has fared in these past decades. A cursory look at data (spanning 40 years) obtained from both the CBN and the National Bureau of Statistics (NBS) showed that despite the huge growth potential in Nigeria, the nation’s economy only grew at an average rate of 3.33% between 1982 and 2020 (Year to date). Since Nigeria switched to oil exploration as the mainstay of the economy, export earnings from the commodity have risen to over 90%. Meanwhile, the dependency on oil may be doing more harm than good, as growth remains on the ebb.
Djibouti, nation of one million, is building the largest free trade zone in Africa (Face2Face Africa)
Djibouti is capitalizing on its strategic location on one of the world’s busiest trade routes to build Africa’s largest free trade zone area. The Horn of Africa nation controls the Bab el-Mandeb (“Gate of Tears” in Arabic) which is a crucial chokepoint at the entrance to the Red Sea and the Suez Canal from the Indian Ocean. The Bab el-Mandeb is the world’s fourth most frequented maritime route used by some 30,000 ships every year. Also, after the Ethiopia-Eritrea war, Djibouti has become a gateway for 90% of Ethiopia’s imports, a trading volume that accounts for 90% of Djibouti’s port traffic. The $3.5-billion China-backed initiative will span 4,800 hectares when completed and it will become the biggest free trade zone area on the continent. “The volume of goods traveling to East Africa keeps increasing. Every time a product arrives in the continent without being transformed it is a missed opportunity for Africa,” said Aboubaker Omar Hadi, chairman of the Ports and Free Zones Authority.
Africa
President Ramaphosa to chair virtual AU bureau meeting (SAnews)
President Cyril Ramaphosa will, in his capacity as the African Union (AU) Chairperson, convene the 6th virtual meeting of the AU Bureau of the Assembly of Heads of State and Government, since the outbreak of the devastating COVID-19 pandemic. The meeting, which will take place on Tuesday, will assess the situation on the continent in relation to the COVID-19 pandemic and implementation of the Africa Joint Continental Strategy for COVID-19.
The African Continental Free Trade Area – Development Accelerator Or More Of The Same? (Bowmans)
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. The COVID-19 pandemic has induced a crisis in the ‘real economy’ of production and not merely within the financial sphere (as was the case in the 2007- 2009 global financial crisis). This makes it is even more important that the AfCFTA reinforces counter-cyclical interventions that reposition African economies within a global economy faced with the threat of a long-term deflationary period.
pdf Africa Insights, 7th Edition - September 2020 (1.62 MB)
Experts meet to review a new study on preferential trade agreement compliance (UNECA)
The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) today hosted the first of a series of five virtual experts group review meetings on innovative new research on preferential trade arrangements in Africa. The project is in partnership with the Organization of African, Caribbean and Pacific States (ACP). The five studies, which gathered primary survey and interview data virtually over mid-2020, look to provide new answers to some of the critical challenges to how African traders use preferential trading regimes in Africa. “A large number of challenges remain for businesses to satisfy standards in intra-African trade, including labelling issues that raise compliance costs, and that these challenges are greatest among Africa’s MSMEs,” said Tulo Makwati, Coordinator of the SADC Business Council.
How can the African air transport sector bounce back? (African Union)
“Recovery of aviation is essential to rapid and sustainable recovery of Africa economies post-COVID19. Restoring confidence, stimulating demand, consistency and harmonization in applying health measures, as well as innovation are building blocks for successful restart,” stated H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the opening of the High-Level Webinar on African Aviation in the Aftermath of COVID-19. According to the AU Commissioner, the COVID-19 Pandemic has resulted in unprecedented downturn in air transport activity risking economies and livelihoods dependent on travel and tourism. “As countries begin to open their economies and assess the damage from the pandemic, our focus at the AU is to advise governments on best approaches for air transport sector to bounce back and contribute to rapid recovery,” said Dr Abou-Zeid.
MPs and Council set for showdown over $104m EAC budget (The East African)
The East African Legislative Assembly is set on a collision course with the EAC Council of Ministers and the Secretariat after it approved a $104 million budget, $6 million more than the $97.6 million budget proposed in the Council’s Appropriation Bill for the 2020/2021 financial year. The Council’s reduction translated into allocation to the Assembly of $16.7 million. The Eala committee reinstated its sittings with corresponding amounts increasing their allocation to $23.06 million, an addition of $6.3 million. The higher budget is also occasioned by different allocations to the EAC Secretariat, Eala and the East African Court of Justice (EACJ).
Minister addresses relaunch of African economic integration (ANGOP)
At the end of the meeting, Minister Téte António said that integration is a profound theme, which does not depend solely on diplomacy, but on the people. According to the government official, each state has the responsibility to enforce the implementation of the treaty. In his turn, the ECCAS chairperson, Gilberto Veríssimo da Piedade, said that there were some ideas on how integration should be implemented, but that they needed to be validated, that is why they are counting on Angola to help consolidate those intentions.
African Digital Health Passport: The Challenge of Personal Data Protection (Apanews.net)
The Covid-19 pandemic crisis has caused disorder in all economic activities. At a time of economic recovery, the equation of people’s mobility remains a complex subject on which States take concerted but not always consistent action. The webinar organized by the African Performance Institute (API) was an opportunity for experts to discuss innovative solutions with digital to offer Africans the opportunity to move more freely within the continent. Ivorian Lacina Koné, Managing Director of Smart Africa, argues that this digital project should allow tourists to travel and stay unhindered during the pandemic. “The establishment of a sub-regional regulatory environment is all the more important to govern this initiative across the African Union. This allows us to act with other parts of the world such as Europe or the USA.”
Exponential growth possible for Africa’s automotive industry (New Business Ethiopia)
The development of regional value chains could see new vehicle sales increase from 1 million to 5 million units a year across Africa, according to Afreximbank. Speaking at a recent online seminar to promote the African continent’s premier trade event, the Intra-African Trade Fair (IATF2021), to be held in Kigali, Rwanda, from 6-12 September 2021, senior trade facilitator Gainmore Zanamwe, said there were bright prospects for the sector. The Automotive Tradeshow and African Association of Automotive Manufacturers (AAAM) Automotive Forum at IATF under the theme “Building Bridges for a successful AfCFTA”, would be a critical base from which to drive growth through the development of intra-African partnerships, Zanamwe said.
International
SWIFT pilots new service for low-value cross-border payments (East African Business Week)
SWIFT has announced plans for a new service to help banks improve the experience for small and medium-sized enterprises (SMEs) and consumers who send low-value payments across borders. The service will enable these bank customers to make faster, easier, predictable and competitively priced payments all around the world. SWIFT is working with over 20 banks to develop the service, which builds on the strength of SWIFT gpi and the high-speed rails that have already transformed the business of high-value payments. This new initiative will enable consumers and SMEs to benefit from predictable payments, with costs and processing times known upfront, and real-time status available to both originator and beneficiary customers via their financial institutions.
Accelerating winds of change in global payments (McKinsey & Company)
For the global payments sector, the events of 2020 have reset expectations and significantly accelerated several existing trends. The COVID-19 public-health crisis and its many repercussions – among them, government measures to protect citizens and rapid changes in consumer behavior – changed the operating environment for businesses, large and small, around the world. For the payments sector, global revenues declined by an estimated 22 percent in the first six months of the year compared with the same period in 2019. Over the past several years, payments revenues had grown by roughly 7 percent annually, which means this crisis leaves revenues 11 to 13 percent below our pre-pandemic revenue projection for 2020. The insights provided in the full report are informed by McKinsey’s proprietary Global Payments Map, which has provided a granular, data-based view of the industry landscape for more than 20 years.
Digitally enabled economic transformation and poverty reduction: Evidence from Kenya and Cambodia (ODI SET)
Economic transformation is crucial to poverty reduction, through transforming production opportunities, lowering the costs and increasing the variety of consumption and enabling government services and other factors to provide better services. Digitalisation affects all of these channels in fundamental ways. This paper develops a framework to understand how. It argues that digitalisation can have positive and less positive or even negative effects in all of these channels but with likely overall net positive effects, sometimes large. It applies the framework to the cases of Kenya and Cambodia. It also argues that policy matters greatly for whether these positive effects materialise.
4.5 Million African Jobs at Risk due to COVID-19 and Travel Restrictions (IATA)
The International Air Transport Association (IATA) warned that the damage being done to the African aviation industry and on economies by the shutdown of air traffic owing to the COVID-19 pandemic has deepened. “The breakdown in air connectivity in Africa has severe social and economic consequences for millions. No income means the lack of a social safety net for many. Governments need to do all they can to reconnect the continent safely. Keeping borders closed, or imposing measures such as quarantines, that deter air travel, will result in many more livelihoods being lost and further economic shrinkage along with hardship and poverty,” said Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East. To minimize the impact on jobs and the broader African economy, an accelerated recovery of air transport across the region is paramount. This can be achieved through COVID-19 testing as an alternative to restrictive quarantine measures.
CBK says shilling manipulation fears ‘misplaced’ (Business Daily)
The Central Bank of Kenya (CBK) has dismissed fears of manipulation of the Kenya shilling amid the ongoing talks for a bilateral trade agreement between the United States and Nairobi. CBK Governor Patrick Njoroge said Kenya does not and will not manipulate the shilling for competitive gain and hence such concerns are “misplaced.” The comments were triggered by the US seeking an undertaking that Kenya will let market forces influence the rate of exchange of the currency to the dollar as part of the trade agreement.
The African Development Bank organized a high-level session on fostering inclusivity and circularity in Africa’s post COVID-19 recovery. The virtual event was part of the 2020 World Circular Economy Forum Online, an annual conference hosted by the Finnish Innovation Fund SITRA, which attracted more than 5,000 business leaders, policymakers and experts to present the world’s best circular economy solutions. “Centralized platforms like the African Circular Economy Alliance will build the momentum for circular economy engagement and foster continental and regional partnerships,” Nyong said.
WTO Director-General contender Amina Mohamed outlines her vision & plans (Eyewitness News)
One of the contenders to be the next World Trade Organisation (WTO) Director-General, Dr Amina Mohamed, from Kenya, on Monday said the China-US trade tensions were among her main priorities. Mohamed is one of five remaining candidates and two African women vying for that position. “The WTO has managed trade tensions before, and they were between big players. I believe strongly that if it’s a trade dispute the place to resolve it at is the WTO,” Mohamed said.
European Union Backs Okonjo-Iweala for WTO DG (THISDAYLIVE)
The European Union (EU) governments yesterday expressed support for Dr. Ngozi Okonjo-Iweala, Nigeria’s candidate for the position of the Director-General (DG) of the World Trade Organisation (WTO) as the race enters the final month. In addition, Bloomberg disclosed that the EU governments selected the South Korean candidate, Yoo Myung-hee, who is the country’s trade minister, as the second contender for the job, the bloc would be supporting. The WTO’s General Council is expected to meet today to reduce the five candidates still in the race for DG to two.
IMF approves aid for world’s 28 poorest countries (CGTN Africa)
The International Monetary Fund on Monday approved new emergency aid for 28 of the world’s poorest countries to help them alleviate their debt and better cope with the impact of the coronavirus pandemic. The announcement, which follows a similar measure passed in mid-April for 25 countries, is intended to help the countries cover their debt repayments to the IMF for the next six months and “free up scarce financial resources for vital emergency medical and other relief efforts” during the pandemic.
India’s Lines of Credit to Africa in Health: Opportunity to Build a Key Pillar to the Economy (ORF)
Across the African continent, there have been several economic success stories built over the last few decades, and accelerated poverty reduction and human development have been considerable as well. While the direct impact of COVID19 – the “health crisis” – has been lower than feared in Africa, the economic crisis triggered by the lockdowns across the continent has slowed down the journey towards the Sustainable Development Goals (SDGs). It is widely acknowledged that a weak health system has enormous economic costs. However, in the specific context of COVID19, a strong and responsive health system has a key role, not just in the sense of the long-term quality of human capital, but also as a key guarantor of a resilient economy. It is in this context that India’s health sector partnerships with Africa need to be seen, which have the potential to build and strengthen a key pillar of the African economic success story and to gain from it.
Financial policy needs to keep up with the times – and tricks of the trade (Daily Maverick)
The global digital economy has had far-reaching and irrevocable consequences for financial services in South Africa. The financial services sector – and the way it is regulated – is no exception. The need to adapt and respond rapidly has become non-negotiable. According to the Financial Services Conduct Authority (FSCA), regulation needs to keep up with the times, all while ensuring that consumers are treated fairly. In a media release, the regulator states that “digital disruption is forcing specialist financial services functions and support to become more vigilant and agile.”
On the role of women trade trainers (Trade 4 Dev News)
In trade for development, more female trainers could make a big difference. Developing countries tend to have far fewer women in decision-making roles overall, which in the trade context creates greater obstacles for women to become part of global value chains – to highlight a major, practical trade example. According to the International Trade Centre, women face such gendered barriers as official bans to holding certain jobs, maternity obstacles and employment restrictions – all despite doing twice more unpaid care work. This results in working much longer hours than men when considering care work, despite having lower access to capital and productive resources. For example, in agriculture, women tend to be engaged in subsistence production that is consumed within the house, or in the case of being engaged in marketable production, not to have rights to monetary compensation for their work. As a result, there is undoubtedly a male monopoly on trade-related jobs on the ground.
Story: State Trading Enterprises in the World Trade Organization (ITC)
State Trading Enterprise policies are an integral part of the regulatory environment set by the rules of the World Trade Organization (WTO). The STEs have the potential to influence markets significantly. They can be operated in ways that can create distortions to international trade. STEs-related policies are therefore increasingly important in the context of WTO accession negotiations. In collaboration with the WTO Secretariat, two workshops were organized this month for Uzbekistan’s Government officials representing the Ministry of Investments and Foreign Trade (MIFT), the State Assets Management Agency, the Ministry for Foreign Affairs, the Ministry of Economic Development and Poverty Reduction and the Antimonopoly Committee.
Enhancing the resilience of global value chains to climate change: lessons from Covid-19 (ODI SET)
The increase in global trade over recent decades through the expansion of production networks and the integration of newly industrialised economies within global value chains (GVCs) has contributed to unprecedented socioeconomic gains and reductions in poverty. But socioeconomic development’s reliance on fossil fuels has led to climate change and environmental damage, which ultimately leads to social and economic cost. Lockdown policies to limit the spread of Covid-19 may provide lessons for a global and simultaneous climate change impact: bringing to a standstill or drastically reducing supply through GVCs. While the global and sudden disruption the virus has caused is of a scale and immediacy that is greater than any currently experienced climate impact, there are nonetheless lessons to be learnt from the Covid-19-induced disruption for climate resilience, given projected abrupt changes in our climate.
“Turkey-Africa: Partners in Resilience in Post-Pandemic World” (APO Group)
The COVID-19 outbreak shows the necessity of multilateral responses, international cooperation and global solidarity. In this regard, the strategic partnership centered on mutual-benefits and economic development between Turkey and Africa has been maintained even during the pandemic. Turkey’s bilateral trade volume with Africa increased fourfold from 2003 to reach 22 billion dollar. And, Turkish direct investments in Africa exceeded 6 billion dollar (USD) in 2019, while it was only 100 million dollar in 2003. And Turkish investments, mainly in the sectors of textile, food & agriculture, iron-steel, cement, energy, mining, consumer durable goods, tourism and hotel, have created over 100 thousand jobs.
DDG Yi: Today’s thriving knowledge economy is the result of 25 years of TRIPS Agreement (WTO)
Intellectual property is embedded in our lives. Creations and inventions spark the development of new products and services; which can generate business opportunities, jobs, and economic growth. We know that intellectual property is an important component of global value chains. WTO research shows that, for example, 91% of the price of a man’s jacket is linked to intangible assets, of which intellectual property rights are an important component. Technology, economic integration, and consumer preferences continue to transform trade and the world economy must react to shocks like the current pandemic. But history shows us that situations like the COVID-19 pandemic ultimately make us leap forward and adapt; and that having clear rules enhances international cooperation. The TRIPS Agreement remains the most comprehensive multilateral agreement on intellectual property, and it is the first WTO Agreement to be amended in response to public health concerns.
Communication from India and South Africa: pdf Waiver from certain provisions of the TRIPS Agreement for the prevention, containment and treatment of COVID-19 (133 KB)
Related News
tralac Daily News
National
South Africa: Update on partial re-opening of borders (SAnews)
Home Affairs Minister, Dr Aaron Motsoaledi, has convened an inclusive meeting involving senior immigration officials and ports of entry managers to address challenges arising from the implementation of regulations pertaining to travel into the country. This also includes the opening of the tourism industry and promoting trade in order to stimulate economic recovery. The visa free status of citizens of some countries and territories was temporarily suspended at the start of the lockdown period. In line with government commitment to take urgent steps to address the economic and tourism stagnation brought about by the outbreak of COVID-19, the visa free status of citizens from the following countries and territories has been re-instated
KRA raises tax on 31 goods despite firms’ freeze plea (Business Daily)
Kenya Revenue Authority (KRA) has increased tax on at least 31 goods including beer, fuel, bottled water and juice, rejecting manufacturers petition to freeze the higher duty.KRA increased excise duty on the products by 4.94 percent in line with the average inflation rate for the year to June, just days after the reopening of bars following a lengthy Covid-19 lockdown. The adjustment is in line with the law that demands excise duty be revised upwards in tandem with the cost of living measure or the average rate of inflation in the previous financial year.
Namibia registered N$5.1 billion surplus on current account (New Era)
Namibia registered a surplus on the current account during the second quarter of 2020, mainly due to a merchandise trade surplus and an increase in secondary income inflows. The current account recorded a surplus of N$5.1 billion, which is a turnaround from a deficit of N$1.9 billion at the same time last year. According to the Bank of Namibia’s quarterly bulletin, the surplus was attributed to the merchandise trade balance that reflected a significant decline in import payments and an increase in export earnings coupled with the higher Southern African Customs Union (Sacu) earnings.
Govt establishes first free zone at Entebbe airport (Daily Monitor)
Arrangements have been finalised for government to establish the first public free zone at Entebbe International Airport to boost export-oriented investment in the country. The development of Public Free Zone is expected to cost Shs48b. It will house seven production units and trade houses such as offices of the Uganda Free Zones Authority, Uganda Revenue Authority, and other government offices to facilitate the smooth flow of business. Under the arrangement, the project targets sectors which include food processing, mineral processing, warehousing, storage and simple assembly, where all operators in the public free zone will process their products for onward export through Entebbe International Airport.
Uganda airlines back in the skies, flags off first flight to Nairobi (The Star)
Uganda Airlines yesterday resumed commercial flights from Entebbe, flagging off its first flight from the Entebbe International Airport to Nairobi.The Ugandan airport closed down 6 months ago due to the coronavirus pandemic, leading to suspension of service for the airline. “We have now embarked on our expansion drive that was brought to a halt by the pandemic, we will soon start flying to more African nations,” said Cornwell Muleya, CEO, Uganda Airlines.
Angola supports strengthening of women’s role in combat covid-19 (EIN News)
Angola has defended the urgent need for the countries to work together on improving the role and participation of women in tackling the crisis caused by Covid-19, building social cohesion and strengthening of societies with peace and sustainable development. Maria de Jesus Ferreira described the crisis as setback for many gains related to gender equality and empowerment of women and girls.
Building resilience and sustainability of manufacturing sector (The Star)
Manufacturing like any other sectors of the economy has been affected by Covid-19. The Star’s Martin Mwita spoke to the Kenya Association of Manufacturers CEO Phyllis Wakiaga, on the state of the sector during the pandemic and post Covid-19 recovery strategies. On tariffs and levies in cross-border trade in key blocs of EAC, COMESA and SADC, are there any concerns/proposals by manufacturers in Kenya? Regional trade integration is a cornerstone of EAC and COMESA trade policies. This involves strengthening of public institutions and private sector organisations involved in export promotion. Trade contributes towards industrialization and structural transformation. The prosperity of any nation not only depends on a country’s productivity but also on the strategic choice of trading partners, export products, and policies that promote trade.
$10 billion is Lost Annually to Illegal Fishing, Says Amechi (THISDAYLIVE)
The Minister for Transportation, Mr. Rotimi Amechi, has revealed that US$10 billion is lost annually to illegal fishing, stating that dumping of toxic waste and indiscriminate use of plastics is hindering the growth of Nigeria’s maritime economy. He noted that the ministry would liaise with the Nigeria Maritime Administration and Safety Agency (NIMASA) by using the African Union’s (AU) recommendations to aid the stimulus of Nigeria’s blue economy. Yusuf added: “We are not on track to harness the benefits of the blue economy and this is a good time to share ideas and resources to establish a unified approach towards the development of the country’s blue economy.”
Economic Analysts Question South Sudan’s Large Loans (New Delhi Times)
South Sudan has secured $88 million in loans from the Africa Export-Import Bank (Afreximbank) after receiving cabinet approval, but local economic analysts say the hefty loans won’t solve the country’s serious economic problems. “The Afreximbank in the last meeting approved a loan of $25 million. This time the bank has decided to increase the amount, and it also approved that they will give us an additional sum of $63 million for the same pandemic trade impact mitigation,” said Makuei.
Africa
South Africa’s Minister of Trade, Industry and Competition, Ebrahim Patel has been elected as the chair of the Ministerial body tasked with finalising negotiations on the terms for the commencement of the preferential trade under the African Continent Free Trade Area (AfCFTA). He takes the leadership of the African Ministers of Trade (AMOT) three months prior to the start of trading under the AfCFTA and with the continent still in the grip of the Covid-pandemic, with 1,5 million people on the continent infected to date.
The AMOT meeting outcome confirmed the commitment of countries to the start of preferential trade under the AfCFTA on 1 January 2021. Currently there are 28 AU Member States that have deposited their instruments of ratification of the Agreement. Two additional countries have ratified the Treaty and their formal depositing of the ratification instruments are now awaited. The Ministers emphasised the importance of ratification by AU member states to enhance inclusiveness in preferential trade under the AfCFTA and therefore encourage members to ratify the Agreement.
The report on “Identifying Priority Products and Value Chains for Standards Harmonization in Africa” jointly published by the African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA), African Organisation for Standardisation (ARSO) and the African Union Commission (AUC) was launched during a webinar to launch a series of Pan African Quality Infrastructure (PAQI) publications in support of AfCFTA implementation.
Speaking at the webinar, Mr. David Luke, Coordinator of the ATPC, emphasised that the AfCFTA Agreement has the potential to be a game changer for Africa’s industrialization but it is now widely understood that the industrialization and trade potential of the AfCFTA will not be realized without adequate quality infrastructure systems including metrology, standardization, accreditation, quality management and conformity assessment.
First Geneva Trade Week: Africa’s Digital Trade Integration under Spotlight (CUTS International)
“The African Continental Free Trade Area (AfCFTA) offers a unique opportunity for building a stronger and more inclusive participation in e-commerce in Africa,” said Tammo Strümpler on behalf of the German Federal Ministry for Economic Cooperation and Development’s (BMZ) Trade Division, at the opening of a virtual discussion jointly organised with CUTS International Geneva on the opening day of the Geneva Trade Week. Held under the title “Trade and Digital Africa: Innovating for Inclusive and Sustainable Continental Integration”, the discussion aimed to share key research findings and exchange views on what should be the key considerations for African negotiators and other stakeholders for the upcoming e-commerce Protocol under AfCFTA.
Leveraging Special Economic Zones for African Industrialisation and Integration (THISDAYLIVE)
Free Trade Areas are special creation that propel the growth and advancement of many economies worldwide. The FTZ has been successfully deployed from North America to Europe to Asia. Africa’s embrace of the model is now more than critical in view of the advent of the Africa Continental Free Trade Zone. Aggressive adoption of free zone model and its best practices are compulsory for Africa to realize the continent’s desire to advance industrially.
Center urges Ethiopian businesses to use Africa free trade (New Business Ethiopia)
The founder and head of the Center for Accelerated Women’s Economic Empowerment (CAWEE) urges Ethiopian businesses to get prepared to benefit from the African Continental Free Trade Area Agreement (AfCFTA). Speaking to New Business Ethiopia, the Founder and Executive Director of CAWEE, Nigest Haile, said AfCFTA is a big opportunity for Ethiopian businesses to boost the trade of the country with other African countries. Indicating that Africa’s trade with itself currency represents less than 20 percent, she noted that the AfCFTA that lifts trade tariff, is a great opportunity for the growth of Ethiopian businesses and the economy in general.
AFCFTA: Rules of Origin Negotiations at Concluding Stages (THISDAYLIVE)
The Acting Director General of the Nigerian office of Trade Negotiations, Victor Liman has said that his office has negotiated and almost concluded the rules of origin to pave way for Nigeria’s ratification of the African Continental Free Trade Agreement (AfCFTA). Rules of origin is the criteria needed to determine the nationality of a product that could make or break the AfCFTA process. He said: “We have made a lot of progress and as today, we have negotiated and almost concluded the rules of origin to pave way for Nigeria’s ratification of the African Continental Free Trade Agreement.” Liman added: “As part of the agreement, It is proposed that ‘Value add’ should be between 30 and 45 per cent.”
AfCFTA: Continental free trade will reduce value erosion of naira – FG (Nairametrics)
The African Continental Free Trade Area (AfCFTA) agreement will reduce the erosion of the naira, which has suffered nearly 90% devaluation since 2016, through exports of Nigerian made goods and services, and give exposure of the naira to other currencies. Mr. Francis Anatogu, Secretary, National Action Committee on AfCFTA added that Nigeria was meant to take preemptive actions before joining the WTO, like the creation of a trade remedy mechanism. He said trade remedy is an area that has been identified by the National Action Committee to ensure Nigeria is not used for dumping. “We are starting with short term measures (trade remedies), and eventually submitting the bill to the National Assembly.”
Saving Lives, Economies and Livelihoods in Africa – Africa CDC
New pmaphlet: Promoting harmonized, standardized and coordinated entry and exit for travellers in African Union Member States through digital solutions
pdf Saving Lives, Economies and Livelihoods (807 KB)
SADC Member States step up efforts to mitigate impact of COVID-19
SADC Executive Secretary, Her Excellency, Dr Stergomena Lawrence Tax, has said the region has stepped up efforts to address the impact of COVID-19 on Member States’ health delivery systems, the business environment and to mitigate the impact on their economies and socio-economic environments. COVID-19 has brought multiple challenges to the SADC Member States and these include unavailability of drugs and equipment, food insecurity, gender-based violence and a negative impact on the economies of Member States. SADC has conducted a study on COVID-19 and has produced a report which details the extent of the impact of the pandemic on Member States. The study recommends the way forward for the region to mitigate against the disease.
EAC Secretariat strengthens outbreak response capacities of One Stop Border Posts
As the Partner States in the East African Community (EAC) region ease measures that were established to prevent and respond to the COVID-19 global pandemic, the EAC Secretariat has commenced a training of trainers’ course for staff at 12 One Stop Border Posts between the Partner States. Depending on the size of the border posts, between 16 and 32 staff members are trained as trainers in 2-day courses. They come from customs, immigration, port health and animal health, bureau of standards, security, cargo and baggage handlers from both sides of the border as well as from the Joint Border Management Committees. This contributes at the same time to regional integration. Clearing agents are also included in the training.
Ghana to cement position as ECOWAS automobile production hub – Report (MyJoyOnline.com)
Ghana will cement its position as West African’s automotive production hub in the coming years, according to Fitch Solutions, research arm of ratings agency Fitch.The report noted the expected dominance of the nation in the automobile space in West African is due to the comprehensive policy by the government. “We believe developments in Ghana’s metals sector (steel and aluminium in particular) raises the potential for the country’s nascent autos industry to move up the value chain.”
International
India and SA ask WTO to waive rules to aid Covid-19 drug production (Moneyweb)
India and South Africa want the World Trade Organisation (WTO) to waive intellectual property rules to make it easier for developing countries to produce or import Covid-19 drugs, a letter to the WTO shows. In their letter dated October 2 the two countries call on the global trade body to waive parts of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which governs patents, trademarks, copyright and other intellectual property rules globally.
Africa Must Lead On Climate Change (Forbes)
To preserve its own survival, and secure its own prosperity, Africa must provide global leadership on responsible environmental stewardship and offer the world a novel model of climate led development. This could also make Africa rich. Africa’s reality as a late latecomer to industrialization may actually present the continent an extraordinary opportunity to regain a position of global leadership and contribute powerfully to forward innovation. The continent must stridently carve out a bold path as a climate change leader – proactively developing a completely novel, a priori approach to building sustainable and resilient eco-aligned societies. Doing so offers Africa’s nations and their international partners the opportunity to rethink effective approaches to driving economic growth. Reimagining how we power, transport and manufacture economies harbors the potential to earn Africa quite a lot of money, innovation and geopolitical influence. Africa should seize the initiative.
Rwanda gears up for Commonwealth Head of State Meeting 2021 (East African Business Week)
President Paul Kagame said that CHOGM Rwanda 2021 will be an exceptional occasion to deliberate together on the enormous technological, ecological, and economic challenges and opportunities facing the Commonwealth, particularly our young people, and which are all the more pressing as a result of the Covid-19 pandemic. “Rwanda looks forward to welcoming all delegates and participants to Kigali next year for a safe and productive meeting,” Kagame said. “At this historic CHOGM, the first to be held in Africa for over a decade, we look forward to Commonwealth leaders coming together to take practical action on the critical issues we all face,” he said.
North and South united in need for COVID-19 collaboration (news.trust.org)
In the battle against COVID-19, we all have a common goal: to save lives, reopen our societies and rebuild our economies. New diagnostic tests, treatments and vaccines offer the best hope of achieving this – but only if they are deployed when and where they are needed most. This is not just the right thing to do; it is the smart thing to do. Against a foe that respects no borders, national solutions are bound to fall short. Countries that only focus on ensuring supplies of vaccines, drugs and diagnostics for their own populations must wake up to the fact that they risk delaying the end of the pandemic for everyone. The pandemic transcends national borders – our efforts should be aligned to fight this pandemic collectively. Vaccines, drugs and diagnostics must be made available for all in need. If not, we risk delaying the end of the pandemic for everyone.
The authors: Prime Minister Erna Solberg of Norway and President Cyril Ramaphosa of South Africa are co-chairs of the ACT-Accelerator Facilitation Council.
Emerging technologies can change the African financial landscape (Cointelegraph)
Africa is the home to 1.2 billion people and what has been described as the world’s largest trade area – the African Continental Free Trade Area. Africa is forging a new path to driving development, and access to financial services will play a significant role in its economic growth. The need to provide improved systems for poverty reduction, if not alleviation, is further accentuated when one considers that 416 million Africans live in extreme poverty, and access to financial services is right at the heart of the solution. In a review of the impact of financial inclusion on economic growth, the World Bank argues that “such services must be provided responsibly and safely to the consumer, and sustainably to the provider.” Construed appropriately, financial inclusion has the potential to reduce poverty and inequality by helping disadvantaged groups to benefit from opportunities that otherwise would not have been available.
UK-Ghana partnership yields £80.3m Tema-Aflao road project (MyJoyOnline.com)
The United Kingdom-Ghana partnership has brought together funding and expertise to build a new major road system that will create jobs and build expertise across Ghana. A statement issued by the British High Commission (BHM) in Accra, copied the Ghana News Agency, said the partnership has yielded a £80.3 million project to build the Tema-Aflao highway agreed between BHM and the Ministry of Roads and Highways. Mr Iain Walker, the British High Commissioner to Ghana said: “The significant strengthening of Ghana’s road system shows the UK-Ghana partnership at its best; a long-term partnership working for the long-term benefit of Ghana. Together we are committed to creating opportunities that move beyond aid and towards the trade and investment relationships which drive economic growth and local job creation.”
Senators warn Trump against weakening Kenya’s plastic restrictions (The Star)
A group of US legislators has warned President Donald Trump against weakening Kenya’s restrictions on plastic pollution.The seven senators and 54 members of Congress in their October 1 letter to Trump said they “strongly oppose using the trade negotiations with Kenya to undermine domestic efforts to restrict importation or consumption of single-use plastic and other polluting products. With nearly 400 million tons of plastic produced globally each year and failed policies to reclaim and recycle that plastic, we are creating suffocating amounts of plastic that are harming our environment, our health and our budgets.”In 2019, the US exported more than 1 billion pounds of plastic waste to 96 countries, including Kenya.
State eases dairy farmers’ competition fears in US trade pact talks (Business Daily)
The government has moved to ease fear among local dairy farmers that when Nairobi and Washington strike a trade deal, it will usher unfair competition. Livestock Principal Secretary Harry Kimtai said they will not allow an unfair deal that jeopardises the welfare of local farmers. “Negotiations on modalities to allow importation of milk from the US are ongoing with the government pledging to protect the local dairy industry from unfair competition from the imported products,” said Mr Kimtai.
EACC 15th Annual Trade and Investment Conference
The EACC 15th Annual Trade and Investment Conference will take place on Wednesday 7th October 2020. This virtual Annual Conference brings investors from across the USA and East African decision-makers together for a two days of B2B engagement. This is a conference for businesses, organizations and individuals with interest in trade and investment between North America and the East African Community.
EAC endorses Kenya’s Amina Mohamed for WTO director-general (The East African)
The East African Community (EAC) has endorsed the candidature of Kenya’s Amina Mohamed to head the World Trade Organisation, in the latest boost to her bid. The endorsement was announced on Sunday just two days before the global trade regulator names the two contenders for the final round of the race.
Okonjo-Iweala is Favourite as WTO Narrows Aspirants to 2 Tuesday (THISDAYLIVE)
Nigeria’s former finance minister, Ngozi Okonjo-Iweala remains the favourite for the job of director-general of the World Trade Organisation as the body’s General Council meets next Tuesday to reduce the five candidates still in the race to two. “Aside from Okonjo-Iweala, no other contestant has ever worked or held a key position in a major international body like the World Bank.... In addition, Okonjo-Iweala worked as foreign affairs minister. All her opponents have no international career record,” added another pundit.
France-Kenya: Kenyatta mounts Paris seduction operation for WTO (The Africa Report)
During his five-day official visit to France, the Kenyan President pushed for French investments in his country while defending the candidacy of Amina Mohamed at the head of the WTO. Kenyan President Uhuru Kenyatta made a vibrant plea in favor of a win-win partnership with French companies when he addressed French leaders gathered by the Medef in the salons of the Cercle Interallié on October 2. “Ten years ago, very few French companies were still present in Kenya. They are more than a hundred today,” said Kenyatta, on a five-day official visit to France.
Russia-Africa: Time to Act – interview with Alexander Stuglev (Modern Diplomacy)
Q: What are your views on trade between Russia and Africa following the inaugural Russia-Africa Summit and Economic Forum in October 2019? Trade needs to flow in both directions. What can Russia offer Africa, and vice versa?
A: Russia has achieved impressive results across numerous areas to date, and is ready to share its experience and expertise with its African partners. Specific examples would include agriculture, energy, medicine, digital technologies, and infrastructure projects. I am convinced that Africa possesses enormous potential to become, for example, one of the key players on the international food market. It is Russia’s objective to help Africa achieve this by entering into an equal and mutually beneficial partnership. By working together, we can fully deal with any of the difficulties which can be encountered in certain regions of Africa.
Business leaders call for urgent reforms as global economy faces its ‘worst state in a century’ (CNBC)
Top business leaders say the global economy is facing its worst crisis in a hundred years, and “downside risks remain elevated” unless urgent reforms are enacted during the G-20 summit hosted by Saudi Arabia in November.” The global economy is in its worst state in a century,” warned Yousef Al-Benyan, chairman of the Business Twenty (B20), a group made up of high-level CEOs from around the world. “The challenging opportunity is to build back better, with real urgency required from policymakers and business leaders,” he added.
The Journey Back to Recovery – Resources to Develop Tourism Sustainably (World Bank)
As tourism recovers, a new publication from the World Bank’s Environment, Natural Resources and Blue Economy (ENB) Global Practice and the Global Environment Facility-funded Global Wildlife Program is available to offer some suggestions. Tools and Resources for Nature-Based Tourism curates the wealth of knowledge and resources available on NBT topics and makes them easily accessible to practitioners as they work to restart tourism.
tralac Daily News
National
Tax breaks, grey import probe needed to grow local car market, says Naamsa (Engineering News)
As many European countries reintroduce lockdown measures to deal with a second wave of Covid-19, South Africa’s vehicle exports to these markets are “increasingly under pressure”, says National Association of Automobile Manufacturers of South Africa (Naamsa) CEO Mike Mabasa. The European Union, with imports of R129.7-billion, was the South African automotive industry’s biggest export region last year. In an effort to counter the effects of a challenging export market, Naamsa is pushing for measures to stimulate demand for new vehicles in the local market, says Mabasa.
Anything to do with crypto is highly suspect, says SA’s financial watchdog (Business Insider)
As yet another cryptocurrency scam is investigated in South Africa, the director of investigations and enforcement at the financial watchdog warned consumers to stay away. “In my opinion, anything to do with a crypto is highly suspect and nobody should be invested in anything form of cryptocurrency or any of the products that go with it,” the Financial Sector Conduct Authority’s Brandon Topham told a media briefing on Wednesday. While the boom in cryptocurrencies has somewhat abated in the past two years amid a slump in prices, South Africans are still trading in these currencies, which remain unregulated.
Zimbabwean shoppers rush into S.Africa as borders open (RFI)
South African patrol guards had anticipated that Zimbabweans would resume illegal crossings into the country to buy goods as soon as travel restrictions were lifted. Hundreds were arrested as they tried to smuggle groceries back to impoverished Zimbabwe, where an economic downturn and rampant hyperinflation have destroyed livelihoods.
‘Zimbabwe to keep getting IMF technical support’ (Bulawayo24 News)
Government has said it will continue working with international financial institutions (IFIs), including the International Monetary Fund (IMF) after its aborted Staff-Monitored Programme (SMP) with the Bretton Woods institution. In a wide-ranging interview, Finance minister Mthuli Ncube said it will work with IFIs to enable it to come up with the right policy mix for the country. “Government continues to work to address economic challenges to promote stability using homegrown solutions wherever possible,” Ncube said. “The country’s tax laws require tax payers to remit taxes on transactions in the currency of trade. Government therefore receives its foreign currency revenues from the taxes, duty, levies, royalties and part of these proceeds are being used to pay for civil servants’ Covid-19 allowances, which have been benchmarked in US dollars,” he said.
Zimbabwe entrepreneur sets up intra-Africa trade platform (The Chronicle)
A Zimbabwean entrepreneur with business interests across Africa has created a platform for potential investors to exchange business ideas within the continent. Mr Chad Chawanda, who has business interests in South Africa, Democratic Republic of Congo (DRC), Rwanda and Zimbabwe, has established an intra-Africa trade platform through one of his subsidiaries, Size Chunk Import and Export (SCIX). SCIX runs a podcast where Mr Chawanda carries out interviews with some of the most decorated and successful business people and leaders on the continent.
How technology has boosted Rwanda’s response to Covid-19 (The New Times)
Three months after the Covid-19 outbreak was announced in China, Rwanda reported her first case of the pandemic. Nearly seven months later, the country has now confirmed a total of 4,836 Covid-19 cases of whom 3,125 have recovered. According to frontline workers, technology played a big role in ensuring that Rwanda prevents the quick spread of the pandemic. “We were paper-less from the very beginning and all the needed Covid-19 data were captured on very detailed dashboards (displayed on big screens) and were updated on a daily basis by a single click,” Dr Menelas Nkeshimana, a member of Rwanda’s Joint Taskforce for Covid-19 (JTFC) told The New Times.
Why Rwanda enacted new rules on transfer pricing (The New Times)
Multinationals that transact amongst themselves will now be required to abide by the new tax guidelines, following last week’s approval of a ministerial order that establishes general rules on transfer pricing. The practice is not illegal or necessarily abusive rather what is illegal or abusive is transfer mispricing, which essentially includes trade between unrelated parties. In 2018, a new income tax law was enacted setting out new rules on transfer pricing. The law stipulated that a ministerial order will be passed, highlighting how the new rules will be implemented.
Kenya’s implementation of Beijing Platform for Action on track, President Kenyatta says (The Presidency)
Kenya’s implementation of the Beijing Declaration and Platform for Action that advocates for gender equality as well as empowerment of women and girls is firmly on track, President Uhuru Kenyatta has said. In a recorded video statement, President Kenyatta said the Beijing Platform for Action remains a powerful source of inspiration in the advancement of the rights of women and girls. “Gender equality remains central to the development agenda of my administration as is indeed enshrined in our Constitution of Kenya,” President Kenyatta added.
PAAR in Breach of TFA, WTO Convention, Says Cusomts Agents (THISDAYLIVE)
Customs agents in the country have called on the federal government to urgently put mechanism in place to review the present Pre-Arrival Assessment Report (PAAR) currently being used by the Nigeria Customs Service (NCS), so as to accommodate the realities with present destination inspection operation regime. In a petition addressed to President Muhammau Buhari, the agents said PAAR in its current form do not conform to international best practice and law of the land, especially as signatory Trade Facilitation agreement (TFA), the African Continental Free Trade Area agreement (AFCFTA) and the World Trade Organisation (WTO) convention.
The State of the Ivorian Economy: How Côte d’Ivoire Could Rebound after the COVID-19 Pandemic and Boost Growth (World Bank)
With GDP growth estimated at 6.9% in 2019 (or 4.2% in per capita terms), Côte d’Ivoire continued to be one of the best performing economies in Sub-Saharan Africa, driven in particular by the expansion of the middle class, which supported demand in all sectors. Prior to the COVID-19 health situation, the outlook for 2020 remained favorable, with projected growth of about 7%. This figure has been revised downwards, following the slowdown in exports and the introduction of COVID-19 containment measures, which put a brake on economic activity in the first half of 2020. GDP growth is now expected to be around 1.8%.
Entitled Taking Stock and Looking Ahead: Cote d’Ivoire and the COVID-19 Pandemic, the report – based on survey data collected in April – finds that the COVID-19 epidemic has had several direct repercussions on businesses: reduced working hours, lower sales and revenue, and even partial or total shutdown.
Agriculture boosts Cote d’Ivoire’s economy (Political Analysis South Africa)
The original objective of PAIA-ID, according to the reports, was to increase, in a sustainable manner, the production and productivity of the main crops in the region. This would be achieved through the development of infrastructure and the strengthening of organizational and institutional capacities. Agricultural production has “increased tenfold” these past few years, revitalizing the local economy, following the implementation of the Agricultural Infrastructure Support Project in the Indenie-Djuablin Region (PAIA-ID), between 2012 and 2019. Funded to the tune of 30.2 million dollars (16.89 billion CFA francs) by the AfDB, this project made it possible, in particular, to “restore the conditions of production and sale of agricultural products in this region, which has great potential.”
Africa
Partnerships in megaprojects critical to success of AFCFTA (Devdiscourse)
Partnerships in megaprojects are critical to the success of the Africa Continental Free Trade Agreement (AFCFTA), says South African High Commissioner to Mozambique, Mandisi Mpahlwa. “If we cannot have these major projects that are going to help to integrate our continent, this agreement is going to be dead in the water. We have had a good account on the Maputo Development Corridor and the key issue to highlight is the importance of government leadership to crowd in the private sector and unlock economic potential using public-private partnerships,” he said on Thursday.
Innovation must be at forefront of driving economic recovery (Devdiscourse)
Innovation and the digital economy must be at the forefront of driving economic recovery in the aftermath of the COVID-19 pandemic, says Trade, Industry and Competition Deputy Minister, Nomalungelo Gina. “Innovation and digitisation will be necessary conditions for building this economy and will help build various small, medium and micro enterprises (SMMEs) of the new economy. “It is not an exaggeration that the symbiosis of innovation and digital economy is now a pervasive juggernaut that is globally tearing down any inhibitive firewalls.
Africa’s digital acceleration path in the “new normal” (African Union)
H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy, addressed the MTN “Y’ello Connection Thought Leadership Roundtable” organized under the theme “Bridging the developmental gap: Africa’s digital acceleration path in the “new normal”. “COVID-19 pandemic has not only highlighted the importance of digital inclusion in daily life, but this “new normal” has reset the urgency to accelerate digital transformation on the Continent” said Dr Abou-Zeid H.E. Commissioner underlined the crucial role of the private-public partnerships in accelerating digital transformation and the implementation of the AU Digital Transformation Strategy.
Digital use can power gig economy growth in East Africa – report (The Star)
The gig economy which supports millions of people in East Africa can unlock more openings if it fully exploits the us of digital, according to a report by Mastercard. Titled The Gig Economy in East Africa: A Gateway to the Financial Mainstream, the report explores how digital inclusion is a prime enabler of the gig economy. According to the report, this is possible through connected devices that power the digital economy, and access to capital and markets.
ATAF publishes an approach to taxing the digital economy (ATAF)
The African Tax Administration Forum (ATAF) published today a Suggested Approach to drafting legislation on Digital Sales Tax Services. The release of the publication comes at a time where more and more African countries are battling with levying taxes on highly digitalised multinationals. Many ATAF members have reported difficulties in taxing highly digitalised businesses operating in their countries. Their economies are rapidly getting more digitalised and that digitalisation often enables multinational enterprises (MNEs) to carry out business in African countries with no or very limited physical presence in those countries. This makes it difficult for countries to establish taxing rights over the profits the MNE is making from those business activities.
Africa’s true potential is its young people, President Kenyatta tells French entrepreneurs (The Presidency)
President Uhuru Kenyatta has reiterated that Africa’s biggest asset is the potential held by its youthful population and not its natural resources. “I tell people all the time, we look at the African continent sometimes from a perspective of its natural wealth. The gold, the diamonds, the oil, the gas but what we tend not to see is what is the true African potential. “And the true African potential is our young men and women, and their capacity to participate with you to build a greater and better world for all of us,” President Kenyatta said.
Refurbished port will restore Kisumu as a commercial hub (Kenya News Agency)
The refurbishment of Kisumu port after four decades since the collapse of East African Community (EAC) will revolutionise business activities in the lakeside city. This comes as a sweet surprise considering that the port remained dormant for so long denying those who relied on it directly or indirectly livelihood. Governor Prof Anyang’ Nyong’o revealed in an inclusive interview with KNA that all the institutions including port infrastructure, Kenya Railway, Kenya Ports Authority (KPA) and MV Uhuru were all intact and so commended the people of Kisumu for safeguarding the assets over the long period. “We are going back to full maritime transport in the Lake both for commercial goods and passengers,” Prof Nyong’o emphasised.
Kano-Niger rail line will service landlocked countries around Nigeria – Amaechi (Nairametrics)
The Minister of Transport, Rotimi Amaechi says that the Kano-Niger rail, is favorable to Nigeria as it would enable Nigeria to service landlocked West African nations through the movement of cargoes to Lagos and also make Nigeria compete with other coastal West African nations. The Minister made this known in an interview with Arise TV on Thursday evening. Mr. Amaechi said; “Most coastal economies are competing better than us, in terms of cargo, we decided to join the market and compete to make the Lagos seaport viable. Since they (Niger republic) are not going to use the roads because they are afraid of crime, customs and police checkpoints, we introduced the Kano-Maradi line so that they can convey their goods from Maradi to Lagos seaport”.
New Information Kit to Enhance Gender Mainstreaming (COMESA)
The COMESA Secretariat has developed modules for an online course on trade and gender which will help the advancement of gender equality and empowerment of women in the region. This is part of an information kit presented to Member States in a virtual meeting of COMESA Gender Experts held on 21- 22 September. Speaking during the opening of the two-day meeting, Assistant Secretary General in Charge of Programmes, Dr Kipyego Cheluget said: “It is necessary to address the gender concerns and gaps adequately using different mechanisms including gender mainstreaming and women’s empowerment approaches to meet the aspirations of the Treaty.”
International
COVID-19, Women, Peace and Security Agenda and Multilateralism (African Union)
In the last three to four years, multilateralism has been under threat as evidenced in the global trading and economic management system, due in part to populism and isolationist policies in some countries. This has also affected global peace and security. Despite this, Africa has continued to demonstrate its commitment to multilateralism, grounding its actions on mutually beneficial cooperation in addressing the complex challenges of peace, security and development. Suddenly, in 2020, the world is facing an unprecedented health, economic and societal crisis arising from the COVID-19 pandemic. This crisis has brought to light deep-seated disparities in the world and glaring challenges that can lead to social unrest and insecurity. In addition, COVID-19 has demonstrated the weakness of the global financial system, impacting everyone and all pieces of the inter-connected chain, while the digital divide makes it near impossible for millions of boys and girls to access computers, new technology, thus educational and learning tools.
Re-centering multilateralism in our response plans to COVID-19 further calls on global solidarity for debt relief. Any relief offered must help to lift the disproportionate poverty burden from the shoulders and backs of women. New budgets must prioritize ending inequality between women and men - an urgent prerequisite for the survival and progress of all human beings in a ‘post’-COVID-19 world. This is also particularly significant as the continent observes a new decade of financial and economic inclusion of African women.
Height of fashion? Clothes mountains build up as recycling breaks down (Reuters)
The multi-billion-dollar trade in second-hand clothing helps prevent the global fashion industry’s growing pile of waste going straight to landfill, while keeping wardrobes clear for next season’s designs. But it’s facing a crisis. Exporters are struggling, as are traders and customers in often poorer nations from Africa to Eastern Europe and Latin America who rely on a steady supply of used clothes. Since the COVID-19 pandemic began early this year, textile recyclers and exporters have had to cut their prices to shift stock as lockdown measures restrict movement and business slows in end markets abroad. For many, it’s no longer commercially viable and they can’t afford to move merchandise.
The United Nations Economic Commission for Africa (ECA) and the Institute of International Finance (IIF) released the following statement after a virtual meeting of delegates representing African finance and development ministries, and the private creditor community to discuss the role of the private sector in supporting low-income countries through the COVID-19 crisis, and driving post-pandemic development.
Reform of the International Debt Architecture is Urgently Needed (IMF Blog)
The COVID-19 pandemic has pushed debt levels to new heights. Compared to end-2019, average 2021 debt ratios are projected to rise by 20 percent of GDP in advanced economies, 10 percent of GDP in emerging market economies, and about 7 percent in low-income-countries. These increases come on top of debt levels that were already historically high. While many advanced economies still have the capacity to borrow, emerging markets and low-income countries face much tighter limits on their ability to carry additional debt.
Institutional reforms, political will key to gender inclusion- Sirleaf, UN, World Bank, others (Vanguard News)
Mainstreaming gender inclusion in governance requires institutional and legal reforms as well as deliberate efforts by political leaders to give women a fair chance to contribute their quota to development, according to panelists at the 1st Kwara State Gender Conference held on Thursday. “We set out to offer a strong platform to state and non-state actors alike to discuss domestic, bilateral and multilateral strategies to increase women’s participation in our societies. True to that, we are joined at this conference by some of the strongest voices in the clamour for better opportunities for women in Africa. Kwara State is actively taking the lead in the campaign for gender inclusion because we are convinced that a society works better and grows faster when no one is denied equal opportunities to succeed. And we have no regret pursuing this noble cause,” he said.
Annual report: Pandemic recovery must be measured in ‘human rather than economic terms’ (UN News)
In the Introduction, Secretary-General António Guterres said the international community should reflect on “our shared progress as well as... our vision and values”. He highlighted some of the Organization’s accomplishments, such as putting in place vital agreements that codify and protect human rights, setting ambitious goals for sustainable development, and charting a path towards a more balanced relationship with the natural world, among many others. In emerging from the COVID-19 crisis, the Secretary-General stressed the importance of multilateralism for a world based on fair globalization, the rights and dignity of everyone, and for “success measured in human rather than economic terms”.
Commonwealth countries look to unlock potential of FinTech (The Commonwealth)
An innovative toolkit to help countries unlock the potential of financial technology to deliver inclusive economic progress has been launched by the Commonwealth Secretariat. The toolkit has been created in response to the requests of Central Bank Governors from across many Commonwealth Secretariat with funding support from the Australian Government.
Related News
Trade Policy Review: Zimbabwe
The third review of the trade policies and practices of Zimbabwe takes place on 30 September and 2 October 2020. The basis for the review is a report by the WTO Secretariat and a report by the Government of Zimbabwe.
Report by the Secretariat: Summary
Agriculture, mining and tourism are the main pillars of the Zimbabwean economy, which has succeeded in developing strong export industries in each of these sectors. Exports of agricultural commodities and minerals (led by gold, nickel, and tobacco) account for nearly 90% of total merchandise exports. While manufacturing has been in decline since the last TPR, Zimbabwe retains a relatively large and diversified manufacturing base. Services contribute about 66% to GDP, led by wholesale and retail trade, education services, and tourism.
The country in 2019 was still struggling to stabilize its economy, following a long spell of governance problems and international isolation. Economic reforms, including the adoption of a multiple-currency regime in 2009 with the US dollar as the principal currency, had contributed to its economic recovery with double-digit GDP growth rates and had ended hyper-inflation. However, in a difficult socio-economic context, Zimbabwe then adopted FDI restrictions in 2012 under the Indigenization and Economic Empowerment Act. In consequence, foreign investment has been subdued and the economy has resumed a modest growth performance since 2013 until 2016, hampered by foreign exchange shortages. GDP growth recovered slightly in 2017 and 2018.
Under the multiple currency system introduced in 2009, Zimbabwe formally ceased to have a domestic currency. However, in 2014, the Reserve Bank of Zimbabwe (RBZ) started to credit account holders with electronic money balances, termed “Real Time Gross Settlement” (RTGS), using for accounting purposes an exchange rate of one-to-one between the RTGS dollar and the US dollar. Most domestic transactions and salary payments were carried out with the RTGS electronic currency. However, due to increased fiscal deficits financed by the RBZ, the RTGS balances were not backed up by enough foreign currency earnings to maintain parity, leading to high parallel market premiums for the US dollar.
In November 2017, Zimbabwe witnessed the departure of the President in power since its independence in 1980. The new Government inherited an economy characterized by large fiscal deficits, rising inflation, shortages of basic goods (including fuel and electricity), and critically low international reserves. Zimbabwe’s per-capita income was about USD 1,500 in 2018; the economy was forecast to contract strongly in 2019 (by up to 6% according to the authorities), due to, inter alia, fiscal consolidation and the impact of Cyclone Idai.
The new Government implemented various reforms, including the elimination in December 2017 of the 49% foreign ownership cap for most sectors. The remaining restrictions in the diamond and platinum sectors were removed in March 2019. The one-to-one RGTS$/USD exchange rate was eventually abandoned in February 2019, and Zimbabweans consequently witnessed a major loss of value of their electronic currency balances in US dollar terms. On 24 June 2019, Zimbabwe abolished the multi-currency system and re-introduced the Zimbabwe dollar as sole legal tender.
During the review period, Zimbabwe’s exchange rate policy with an artificially overvalued electronic currency has perhaps been the most important source of distortion to its international trade in goods and services. Indeed, in order to deal with its chronic foreign exchange shortages, Zimbabwe put in place a priority list for imports and other foreign currency payments, and introduced mandatory forex surrender for exporters. The policy involved taking a share of foreign exchange earnings from private foreign currency accounts and replacing them with electronic RTGS dollars. The forex surrender scheme became, effectively, a substantial tax on exporters as RTGS$ receipts from exports lost their value in US dollar terms. Imports were also distorted; those who had access to foreign currency at the official one-to-one RTGS$/USD rate benefitted from cheap imports, which greatly increased the demand for fuel and consumer goods.
Furthermore, to save foreign currency, the forex control measures were implemented alongside import-restrictive measures. As a result of all the trade restrictions imposed by Zimbabwe over recent years, the importance of trade for its economy has significantly declined: its ratio of trade in goods and services to GDP has dropped from 89.5% in 2011 to about 50% in 2017.
Merchandise imports declined sharply between 2011 (USD 8.6 billion) and 2018 (USD 6.3 billion), reflecting the slowdown in economic growth, as well as the restrictive trade and foreign currency measures. Nonetheless, imports of goods continue to significantly outstrip exports. Zimbabwe sources most of its imported goods from South Africa; imports of fuel are mainly from Singapore. Merchandise exports have recovered significantly in recent years, reaching USD 4 billion in 2018. They are destined mainly to South Africa, followed by the United Arab Emirates. Zimbabwe’s export performance closely mirrors the cyclical developments in the mining sector, which staged a recovery following a sharp downturn in 2013-15. Manufacturing exports dropped from USD 740 million in 2011 to USD 470 million in 2018, on the account of liquidity constraints and the high cost of imported raw materials, and power shortages. Tobacco is the number one agricultural commodity for Zimbabwe (21% of total exports in 2018). Zimbabwe is a net-importer of services, although the deficit has narrowed due to a decline in services imports. Remittances (8% of GDP in 2018) play an important role in supporting the people and sustaining the economy.
In the period under Review, Zimbabwe has participated in the negotiations on the African Continental Free Trade Agreement, and the COMESA-EAC-SADC Tripartite Free Trade Area. An early harvest of the latter is a web-based facility allowing stakeholders to report and monitor trade barriers, which has helped to resolve over 70 cases involving measures by Zimbabwe. Zimbabwe has also since 2012 implemented the Interim Economic Partnership Agreement between the EU and the Eastern and Southern Africa group.
Zimbabwe ratified the WTO Trade Facilitation Agreement (TFA) in October 2018. It has notified all its TFA commitments to the WTO, as well as its technical assistance needs for category C measures. Zimbabwe would benefit from the simplification of its customs documentation requirements, as up to 15 paper documents may be required. Given its geographical location, Zimbabwe plays a critical role in the facilitation of regional transit traffic; yet despite harmonized transit provisions within COMESA and SADC, most member countries, including Zimbabwe, run their own national transit systems.
Zimbabwe’s simple average applied MFN tariff increased from 15.4% at the time of its last Review in 2011 to 15.8% in 2019. A quarter of all tariff lines are bound. The applied rates exceed the corresponding bound levels (in some cases by as much as 60 percentage points) on 61 tariff lines; another 64 lines carry non-ad valorem rates that could potentially exceed their ad valorem bindings if the import prices of the products concerned were to fall. Moreover, a surtax is levied at the rate of 25% on imports of numerous products from all countries including COMESA and SADC members.
Zimbabwe continues to maintain a multitude of statutory instruments (over 150 in 2019) that provide for exemptions, suspensions or rebates of customs duties, excise duties, VAT or surtax. The high number of tariff exemption schemes is an indicator that some of Zimbabwe’s MFN tariff rates may be too high, and thereby negatively affect the competitiveness of industries that rely on imported capital goods and inputs.
A system of non-automatic import licensing remains in place for import substitution purposes. The system has changed frequently and conditions to obtain licences appear to be opaque. Furthermore, licences issued to importers are often dependent on other permits or authorizations from other agencies; this multiple-layered system combines non-automatic licensing, quantitative restrictions and SPS requirements for agricultural products.
Pre-shipment inspection requirements were phased-out in 1998. However, in 2015 Zimbabwe made trading across borders more difficult by introducing a mandatory pre-shipment conformity assessment programme, which was notified to the TBT Committee. The scheme covers a range of products (12% of tariff lines at HS 8-digit level), subject to the payment of high and complex ad valorem fees. Zimbabwe provided five SPS notifications related to food safety. Overall, its legal framework for SPS measures requires modernization.
Zimbabwe’s non-automatic licensing regime for exports covers a wide range of products, including most agricultural commodities. As in the case of import licensing, compulsory export licences are intended to ensure that enough quantities of produce are available domestically. Export taxes are in place on several minerals, with lower rates for transformed products.
State-owned enterprises play a major role in the economy, including in manufacturing, mining, utilities, and telecoms. For 2017, the Auditor General of Zimbabwe reported a worsening of the losses by the SOEs (some 107 of them in 2019) due to a continued lack of appropriate governance. Several of these SOEs, such as the Grain Marketing Board and the Minerals Marketing Corporation of Zimbabwe (MMCZ), are engaged in international trade.
Zimbabwe has recently modernized its government procurement regime: The Public Procurement and Disposal of Public Assets Act came into force in January 2018; it contains domestic preference provisions. The new Procurement Regulatory Authority of Zimbabwe (PRAZ) oversees public procurement and has started for the first time to compile procurement data. In 2018, public procurement amounted to USD 1.5 billion, or 10% of GDP.
Zimbabwe’s intellectual property rights regime is administered by the Department of Deeds, Companies and Intellectual Property under the Ministry in charge of Justice. The Zimbabwe Intellectual Property Office (ZIPO) oversees the registration of trademarks, patents, geographical indications, integrated circuit layout designs and industrial designs. Zimbabwe also has a plant breeder’s rights legislation; however, the country is not a member of UPOV. Zimbabwe has yet to accept the Protocol amending the TRIPS Agreement to provide additional flexibilities to grant special compulsory licences for exports of medicines.
Agriculture is the main source of subsistence for most of the population. The sector’s performance has varied substantially due to drought and other natural disasters, as witnessed by Cyclone Idai which hit Mozambique and Zimbabwe in March 2019. As a result, Zimbabweans remain highly food-insecure, with millions of people in need of food aid over the recent years. Maize is the key food security crop and therefore at the centre of Zimbabwe’s agricultural policy. A range of policies are in place, essentially to control maize supplies, trade and prices. In response to the 2019 drought, the Government introduced a single-buyer regime whereby all marketed maize production must be channelled through the Grain Marketing Board (GMB). Other measures include temporary import and export bans depending on the domestic supply situation, an input subsidy scheme called “Command Agriculture”, price support, and consumer subsidies. The GMB administers the Strategic Grain Reserve and acts as buyer of last resort for all grains and cotton. Applied MFN tariffs on agricultural products (WTO definition) averaged 25.1% in 2019.
Zimbabwe is endowed with more than 40 mineral and metal resources, including gold, platinum group metals, diamonds, nickel, coal, and chromite. A “beneficiation” policy to encourage local downstream processing is enforced through export taxes on “un-beneficiated” platinum group metals, diamonds and lithium. Exports are controlled by two state-owned marketing monopolies (MMCZ and Fidelity Printers and Refiners).
Zimbabwe’s electricity sector is in a state of prolonged crisis, as reflected by chronic power cuts, lagging investment, and a drain on the public finances caused by the national power utility. Fuel imports have also been affected by a reduced availability of foreign currency, resulting in chronic fuel shortages. Zimbabwe’s fuel import regime would benefit from market-based reforms, transparency, and strong competition policy enforcement.
Zimbabwe’s manufacturing policy has been largely inward looking, relying on import substitution policies made effective through tariffs on final products and exemptions on inputs, as well as discretionary import licensing and a newly adopted local content strategy.
Zimbabwe has a long insurance tradition and is host to some of the world’s oldest multinational insurance companies, such as Old Mutual. The main national insurance groups have close ties with Zimbabwe’s main commercial banks as several financial conglomerates have insurance or banking subsidiaries.
Zimbabwe is one of the few countries where the State still has substantial ownership in mobile telecom operators. International communications are among the most expensive in Africa, suggesting that the sector’s reform could be of considerable benefit to the economy. One of the main drivers of telecom services in Zimbabwe has been mobile banking, an alternative to cash for making payments. Zimbabwe saw a surge in mobile money transactions in 2018, as the foreign exchange shortage escalated into a cash crisis.
Tourism is Zimbabwe’s flagship industry benefiting from the country’s beauty and wildlife, and well-trained workforce. Tourism also benefits from more competition among air transport companies following the opening of the Zimbabwean skies.
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National
SA’s trade surplus widens, but it could be thwarted by renewed lockdown restrictions (Fin24)
While South Africa’s trade surplus increased in August, concerns of a second wave of Covid-19 infections could see countries implement restrictions again with consequences for international trade, an economist warned. The South African Revenue Service on Wednesday released trade statistics for August. It showed that the trade surplus increased to R38.9 billion, slightly up from the R37.2 billion reported in July. This is attributed to rising exports, which rose by 8.8% year-on-year. On a month-on-month basis exports increased by 6.6%. The increase in exports is in line with improvements in global demand, noted Investec economist Lara Hodes. “Specifically, the implementation of renewed restrictions in certain countries to try and curb second waves of Covid-19 infections would impede the pace of global recovery and thus international trade,” Hodes said.
pdf Merchandise Trade Statistics August 2020 including BELN (508 KB)
Covid-19 has made inequality worse, researchers find (Bizcommunity)
The Covid-19 pandemic and the nationwide lockdown have deepened inequality, especially in the job market and in education, according to a major survey released on Wednesday, 30 September. An alarming finding of the National Income Dynamics Study – Coronavirus Rapid Mobile Survey (NIDS-CRAM), was that the job losses may be long lasting. The 2.8 million jobs lost after February had not been recovered by June, according to this second NIDS-CRAM survey, based on the responses of 5,700 people. NIDS-CRAM researchers found that about one-million people who lost their jobs during the Covid-19 pandemic fell into poverty. “The Covid-19 pandemic is a health crisis that will exacerbate the South African unemployment crisis,” they said.
Deputy Minister Gina to Deliver Keynote Address During 2020 Innovation Summit Investors Garage (the dtic)
The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina will deliver keynote address during the 2020 Innovation Summit’s ‘Investors Garage’ information session, where she will cast the spotlight on innovation, technology and the impact of COVID-19 on world economies during a first of its webinar that will take place on Thursday, 1 October 2020.
SA’s borders open but travellers from high-risk COVID-19 countries still banned (Eyewitness News)
As the country’s international borders start to reopen on Thursday, a travel ban will remain in place for leisure travellers from 57 countries deemed to be high risk. The government made the list known on Wednesday. Countries on the high-risk list include the United Kingdom, the United States, India, Russia, France and the Netherlands. Business visitors, diplomats and people with high-skills visas from high-risk countries will, however, be allowed in, as well as all travellers from the African continent.
Zimbabwe borders remain closed (The Chronicle)
Zimbabwe’s borders remain closed to general human travel and the lockdown regulations as announced by the Government have not changed despite South Africa announcing the opening of its borders. Zimbabwe and South Africa closed their borders to general human traffic, including Beitbridge Border Post, in March when they effected their first 21-day lockdowns to curb the spread of Covid-19. Government recently lifted the ban on domestic and international air travel. Domestic and foreign travel, which were banned on March 30 as Government imposed measures to curb the spread of Covid-19, are set to resume today. However, strict Covid-19 measures will be adhered to in the opening up of the aviation sector.
Republic of Zambia launches Time Release Study of nation’s key One Stop Border Post (WCO)
On 18 September 2020, the National Trade Facilitation Committee (NTFC) of Zambia under the auspices of the Ministry of Ministry of Commerce, Trade and Industry, launched the Time Release Study (TRS) for the Chirundu One Stop Border Post. This TRS was rolled-out with technical assistance of the WCO and focused on imports – considering the Chirundu border post collects the majority of the county’s import taxes.
Tanzania import bill for July down (Dailynews)
The total import of goods and services decreased to 9,687.4 million US dollars in the year ending July from 10,185.8 million US dollars in the corresponding period a year earlier. According to the Bank of Tanzania (BoT) monthly economic review for August, all categories of imports increased, with the exception of transport equipment, machinery, oil and fertilizer, which decreased slightly. The oil imports accounted for 18.7 per cent of goods import, having decreased by 13.3 per cent to 1,507.1 million US dollars due to a decline in oil prices in the world market. On monthly basis, import bill for goods decreased slightly to 620.3 million US dollars in July this year, from 765.2 million US dollars in the corresponding month last year, partly reflecting disruption of global supply chain following the outbreak of Covid- 19.
Kemsa rejected price discounts on Covid-19 kits (Business Daily)
The management of the Kenya Medical Supplies Agency (Kemsa) rejected discounts by suppliers of Covid-19-related items, a special audit has revealed, raising the red flag on the controversial tendering which may cost taxpayers up to Sh2.3 billion. A forensic audit by the Office of the Auditor-General found that Kemsa officials chose to pay Sh4,500 for a pack of 50 face masks, way above the Sh3,183 quoted by suppliers — a variation equivalent to 41.37 percent. The Auditor-General said that besides the inflated prices, Kemsa failed to conduct a comprehensive needs assessment of the Covid-19 purchases, leaving it stuck with stocks worth about Sh6.34 billion in its warehouses.
Namibia to ratify continental medicines agency treaty (The Namibian)
The National Assembly will this week be expected to discuss and ratify an agreement to establish a continental medicines regulatory authority in Namibia.The agency to be known as the African Medicines Agency (AMA) is aimed at strengthening the capacity of medical products regulation in Africa and the harmonisation of regulatory systems, “as a foundation for the establishment of a single medicines regulatory agency in Africa”. “The agency offers a continental focus for certain activities, such as the opportunity to assess special classes of medicines for example advanced therapies, active pharmaceutical ingredients and products that are not regulated in many African countries, among them invitro diagnostic products and devices and vector control products,” Shangula said.
COVID-19 in Nigeria: What businesses must do to thrive in the new economy (Pulse Nigeria)
The spread of the COVID-19 virus across the world has drastically influenced the way we live, work, and do business. Economies slowed globally down as countries shut economic activities to fight the pandemic. In Africa, nations are still trying to flatten the curve of the outbreak and also to protect their economies from collapse. The African Development Bank (AFDB) already projects the continent’s GDP to contract by 3.4%. Nigeria has introduced measures to minimize the impact of the economic contraction, suppress pressure on the naira, and create a soft landing for citizens and businesses. However, all of these are not nearly enough.
Trade Policy Review: Zimbabwe (WTO)
The third review of the trade policies and practices of Zimbabwe takes place on 30 September and 2 October 2020. The basis for the review is a report by the WTO Secretariat and a report by the Government of Zimbabwe.
pdf Report by the Secretariat (2.39 MB)
pdf Report by the Government (474 KB)
Africa
Bold steps taken to make African trade easier, help small businesses (African Union)
The African Union has amplified action to tackle non-tariff barriers and increase small businesses’ use of the tradebarriers.africa tool through its new online platform. The African continent is about to become the world’s largest free trade area. If not addressed, non-tariff barriers (NTBs) may slow down this effort. Although the negative impact of NTBs on intra-regional trade is recognized, so far there has been limited success in addressing them. “The success of the AfCFTA depends in part on how well governments can track and remove non-tariff barriers,” said Ambassador Albert Muchanga the African Union Commissioner for Trade and Industry. A new campaign to spotlight and remove non-tariff barriers (NTBs) in intra-continental trade launches this week. The #TradeEasier campaign aims to promote the uptake and use of the African Union’s tradebarriers.africa, a non-tariff barriers reporting mechanism tool.
Showcasing the African Medical Supplies Platform (AMSP): Engaging ECOWAS member states (UNECA)
At the initiative of the United Nations Economic Commission for Africa (ECA), through its sub regional office for West Africa (SRO-WA), in partnership with Afreximbank, Africa Centres for Disease Control and Prevention (Africa CDC) and African Union Special Envoy, Strive Masiyiwa, a High-Level Stakeholder Webinar on Africa Medical Sales Platform (AMSP) was organized on Tuesday. Taking the floor on behalf of Dr Vera Songwe, Executive Secretary of the ECA, the Director of the sub regional Office for West Africa of ECA, Ngone Diop explained that “To fully harness the opportunity of AMSP and African Continental Free Trade Area (AfCFTA) initiatives, it is crucial that the member states ratify the African medicine agency treaty (AMA) to effectively regulate and harmonize medical products so that the continent can mitigate standards medicine circulating in the region and preserve life”.
Zim, Malawi bolster ties (The Herald)
President Mnangagwa yesterday urged SADC countries to harness natural resources abundant in the region so as to improve the lives of their citizens through production and productivity. “It is important that we leverage on the natural resources within our countries to grow our economies and improve the quality of life of our people,” the President said. “The ongoing consultations between our officials to establish a Zimbabwe-Malawi Business Forum to facilitate increased trade cooperation should be speedily concluded. It is commendable that Malawian companies always exhibit at our Zimbabwe International Trade Fair.
EABC calls for equal treatment of all people coming into Kenya from Tanzania
The East African Business Council (EABC) is calling for equal treatment of all citizens entering Kenya from Tanzania, irrespective of whether they are truck drivers or ordinary citizens. Currently, ordinary citizens entering into Kenya from Tanzania are allowed to proceed once they produce a COVID-19 certificate while the truck drivers are subjected to both production of the certificate from Tanzania and also another testing at the border point and allowed in only after the results are out. This, a process which border officials from the Tanzanian side and truck drivers claim is taking more than a week, hence subjecting goods to further delays.
SGR Nairobi-Mombasa trains double as demand increases (Business Daily)
Kenya Railways has doubled the frequency of standard gauge railway (SGR) passenger service between Nairobi and Mombasa, signalling rising demand for travel after the easing of Covid-19 lockdown. SGR service was scaled down to a single trip in July when it services resumed after Kenya suspended operations in April to curb the spread of coronavirus. But the easing of the restrictions, including allowing travel in and out of Nairobi and Mombasa has triggered a rise in demand, prompting Kenya Railways to up frequencies.
West Africa’s long-discussed new currency Eco could now be delayed by five years (Face2Face Africa)
The implementation of the “Eco” common currency under the Economic Community of West African States (ECOWAS) could now be delayed by five years due to the effect of the coronavirus pandemic. Leaders of ECOWAS said last year the Eco would be set up in 2020 but the short time frame coupled with logistics constraints stalled the implementation process. The economic hit from COVID-19 has further disrupted the bloc’s timetable for the implementation of the common currency which has been in the works for two decades now.
Africa: Curb Capital Flight to Help Fund Covid-19 Response in Africa (allAfrica.com)
Curbing capital flight and other illicit financial flows from Africa can generate $88.6 billion a year. As most countries in sub-Saharan Africa are dependent on exports of raw commodities, commercial flows of commodities are a focal area in the study of IFFs. UNCTAD estimates that the persistent gap between what African countries report as commodity exports and what their trading partners report as imports (also known as export under-invoicing), was at least $40 billion in 2015, with gold exports representing 77% of the total. As an illicit outflow, trade misinvoicing contributes to capital flight and lost taxes, eroding the resources available for African countries to respond to crises such as COVID-19.
Why is Africa lagging behind? (African Business Magazine)
In 2015 the WWF, the international conservation organisation, together with the University of Queensland and the Boston Consulting Group, released a report titled “Reviving the Ocean Economy: The Case for Action – 2015”, which estimated that the key ocean assets were valued at $24trn. “If we are to truly unlock Africa’s potentials, we must acknowledge that despite the successes, Africa is still facing numerous challenges in developing the Blue Economy agenda,” says Vincent Meriton, the Seychelles’ Vice President. “These range from financial barriers to limited access to technology, and they are preventing some states from fully implementing their plans.”
African presidents crack the whip on continent’s counterfeits (FairPlanet)
Each year an estimated 116,000 people in Sub-Saharan Africa die as a result of substandard and fake anti-malaria drugs with the World Health Organisation indicating that out of all counterfeit medicines that were reported to the institution between 2013 and 2017, 42% of them were found in Africa. The global trade estimated to be worth $200 billion annually affects up to 120 countries. “Health remains one of the most crucial yet hugely neglected and underfunded sectors in most African countries. The impacts of this lack of investment are far-reaching occasioning brain drain and the continent being one of the most expensive for patients seeking medicare with the bulk of its population unable to access even basic healthcare. This has fanned the unprecedented trade in counterfeits that have not only bled the sector but triggered ripple effects across multiple sectors and crippled economies,” said Dr. Harrison Mueke from Kenya’s Maseno University School of Medicine.
Figures of the week: Financial inclusion of farmers in Africa (Brookings)
More than half of the population of sub-Saharan Africa works in the agriculture sector, but most farmers in the region still do not have access to formal financial services. Limited access to these services makes it more difficult for farmers to take advantage of business opportunities, invest and save for the future, and insure against risks. To analyze this issue, on September 24, the World Bank released the report Digitization of Agribusiness Payments in Africa: Building a Ramp for Farmers’ Financial Inclusion and Participation in a Digital Economy. The report argues that digitization of agribusiness payments can help advance financial inclusion of farmers, analyzes the current status of digitization, and recommends key actions that can help accelerate digitization.
pdf Digitization of Agribusiness Payments in Africa (1.34 MB)
Good governance is the lynchpin for African progress (news.trust.org)
COVID-19 has joined the climate emergency at a time when Africa is facing what Mo Ibrahim calls “a crisis in leadership and governance.” This crisis seems all the worse when we define governance as the delivery of goods and services that citizens legitimately expect their governments to deliver. Citizen’s expectations relate to the promotion and support of human rights and participation, safety and rule of law, socio-economic opportunities and human development. In view of the very mixed progress made so far in meeting these entirely reasonable expectations, the permanent question is how to apply Africa’s abundant wealth in natural and human resources – especially its women and youth – towards rapid recovery and sustainable development.
Second edition of the Labour migration Statistics report in Africa (African Union)
This second edition of the Report on Labour Migration Statistics in Africa summarizes statistical information for a period of ten years (2008-17), building on the first edition, which captured data from 2008 to 2015. The focus of this report is on emerging patterns and trends in the stock of international migrants living in African countries. The report attempted to bring to the fore the evidence of the contribution of remittances to the development of migrants’ countries of origin, particularly towards alleviating poverty and social inequality in the recipient households and communities of origin. Unfortunately, it is essential to note that the magnitude of remittances entering African countries continue to be underestimated due to the proliferation of informal remittance networks to avoid high transaction costs affecting many migrant workers.
The Multiplicative Power Of Investing In Production (Forbes)
African policymakers must resist the urge to find shortcuts to ensuring an abundance of cheap consumption; they must either invest in production or be forced to enjoy poverty. Importantly, and controversially, African policy makers should prioritize local production over efficiency and low consumer prices. Even the very poorest will benefit from increased labor demand, higher wages and technical skills development brought by healthier local industries. This trumps the recent instinct to keep the people poor but ensure they have cheap rice and gadgets – courtesy of imports from Asia or Europe via a prematurely liberalized trade border. Steps are being taken to consolidate Africa’s markets into a vast and liberalized free trade zone. This is a positive step, but must be followed by focused, concerted effort on ensuring African manufacturers produce the bulk of the goods that get traded within the AfCFTA.
International
Nigerians Not Benefiting From US duty-free Export – NEPC (Economic Confidential)
The Nigerian Export Promotion Council says only few Nigerian exporters have benefitted from the United States duty free trade opportunity despite several sensitisation carried out by the council. The Executive director, NEPC, Segun Awolowo, said this during an African Growth and Opportunity Act webinar for Nigerian exporters organised by West African Trade and Investment Hub in collaboration with NEPC and the Feed the Future Nigeria on Tuesday. In order to increase the participation of exporters, he noted that training in certification and capacity improvement of manufacturers were key issues that should be addressed.
Rwanda’s clothing spat with the US helps China (BBC News)
Rwanda’s efforts to boost its domestic garment industry have seen it fight a lonely, and continuing, trade battle with the US that dates back to 2015. Back then the six members of the East Africa Community (EAC) block of countries – Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda – announced that they would all put in place high tariffs on the import of second-hand clothing or “chagua”. The idea behind the de-facto ban was to stop the importation of large quantities of cheap used clothing, mostly from the US and the UK, which the African nations said were stifling the growth of their nascent garment industries. Keen to hang on to its share of these exports, the US responded that the proposed ban would violate free-trade agreements, and it threatened to remove the EAC countries from the African Growth and Opportunity Act (Agoa).
Kenya and France sign three bilateral deals to boost economic ties (Business Daily)
President Uhuru Kenyatta kicked off his official visit to France on Wednesday evening at Elysee Palace where he was received by his French counterpart Emmanuel Macron. Together with his host, they witnessed the signing of three bilateral agreements before leading their delegations to a State banquet hosted in honour of the visiting Kenyan leader. Among the agreements reached is a public private partnership (PPP) for the construction of the Nairobi-Nakuru-Mau Summit highway signed between KeNHA and Vinci Concessions. The highway is one of the largest PPP projects in Eastern Africa. Others were agreements for the development of the Nairobi central business district (CBD) to Jomo Kenyatta International Airport (JKIA) commuter railway line and the 400kV Menengai-Rongai electricity transmission line
OPINIONISTA: SA agreement with South East Asian bloc opens up a host of opportunities (Daily Maverick)
South Africa is in the process of acceding to the Treaty of Amity of the Association of South East Asian Nations (ASEAN), the fifth-largest economy in the world. The potential for future trade, investment and a host of other cooperation agreements is exciting. One way for Africa-ASEAN reciprocal trade and investment to flourish is to forge agreements with regional blocs, more specifically through the African Continental Free Trade Area Agreement (AfCFTA). There have to date been no trade agreements between ASEAN and African regional economic communities. In 2008, seven ASEAN nations with diplomatic representation in SA forged the ASEAN-Pretoria Committee (APC) in an effort to boost trade and investment with South Africa. These are concerted efforts by ASEAN to boost trade and investment with Africa in general and South Africa specifically. It is imperative that SA develops a clear strategy to optimally benefit from accession to the TAC by means of increased cooperation, trade, investment and tourism.
UK businesses explore retail & e-commerce opportunities in Egypt (GOV.UK)
The UK Department for International Trade (DIT) and Egyptian British Chamber of Commerce (EBCC) organised their first retail webinar to explore retail and e-commerce opportunities for British companies in the Egyptian market. More than 50 attendees joined the webinar, among them Sir Jeffrey Donaldson, the UK Trade Envoy to Egypt, who highlighted the growth in opportunities for UK brands in overseas markets Sir Jeffrey Donaldson said: We view Egypt as a country with huge potential, and one worth investing in. We consider it as our gateway to Africa especially with its advantageous location, the good international and domestic transport links, and all the existing trade agreements with Africa, the EU, and the Arab Region.’ Following the implementation of major economic reforms, Egypt has seen notable macro-economic improvements and was named one of the fastest growing economies in the world in 2019.
The international community can assist entrepreneurs in displacement settings to recover from COVID-19 and prepare for future shocks through adaptation, digitization, and cooperation. That was the conclusion of “Perspectives on Economic Resilience for Business in Displacement: Lessons learned from COVID-19 to prepare for future shocks”, an ITC online event that heard from entrepreneurs in Botswana, Colombia, Gaza, and Kenya held on 3 September 2020.
Finding Balance: The Post-COVID Landscape for Financial Institutions (Baker McKenzie)
COVID-19 represents one of the greatest ever shocks to our economies and, in consequence, to the business models of financial institutions and the way they do business. While many changes to business processes and operations were already taking place prior to the pandemic, COVID-19 has given many added impetus and urgency. Decision-makers must choose between adapting a wait-and-see approach or implementing more proactive strategies to safeguard and, if possible, grow their businesses. “Finding Balance: The Post-COVID Landscape for Financial Institutions” seeks to map the post-pandemic environment that financial institutions need to navigate as we move to the new normal. We look at how different industry sectors are experiencing profoundly distinct impacts on their balance sheets and markets, with very different timescales and pinch points. We also consider how the global economy will be impacted directly and indirectly in the years ahead.
Undaunted by the global forces shaping their societies and challenging their very existence, the leaders of small countries – which comprise about half of the United Nations membership – took centre stage in the General Assembly today, reminding the world of their service to bygone power structures and outlining visions for progressive cooperation that favours their ingenuity and mettle.
José Ulisses de Pina Correia e Silva, Prime Minister and Minister of Reform of Cabo Verde, said that, given the COVID-19 pandemic, “humanity is confronting its greatest challenge in more than a century”. Rich countries are responding to the coronavirus with hundreds of billions of dollars in economic stimuli, but Africa and small island developing States lack the savings required to recover and relaunch themselves. Nobody wins when Africa becomes more impoverished, but everyone wins if African countries can access the resources that they need to overcome the crisis and enter a new era of structural transformations that will strengthen their economies and lift their positions in the Human Development Index. In such a context, access to a COVID-19 vaccine should be equitable and universal and external debts should be forgiven, he said.
Recognizing that the continued deterioration and degradation of the world’s natural ecosystems were having major impacts on the lives and livelihoods of people everywhere, world leaders called for increased resolve to protect biodiversity at the UN today. A record number of countries – nearly 150 countries and 72 Heads of State and Government – addressed the first ever Summit held on biodiversity to build political momentum towards the post-2020 global biodiversity framework, to be adopted at COP15 in Kunming, China next year.
President Cyril Ramaphosa's address (The Presidency)
Mnangagwa: ‘Climate change threat to biodiversity conservation’ (The Herald)
Buhari Outlines Key Measures to Reverse Biodiversity Loss in Nigeria (This Day Live)
Op-ed: Businesses Could Pay $1 Trillion Biodiversity Bill (Forbes)
COVID-19: B20-UNDP Joint Statement (UNDP)
The COVID-19 pandemic is having a devastating impact across the globe, posing significant threats to sustainable development gains and efforts to eradicate poverty, reduce inequalities and build resilient societies. The pandemic has exposed challenges in governance which require collective action and solutions. By focusing on accountability and integrity, and by holding public and private sector actors to higher standards of ethical conduct, the G20 Leaders can improve response and recovery efforts, fight corruption in government and business, and build more inclusive and equitable societies.
We urge the G20 Leaders to commit more explicitly to accountability and anti-corruption efforts to ensure the impact and effectiveness of response and recovery efforts to COVID-19. We call upon the G20 Leaders to adopt the following measures to improve integrity and to reduce corruption in the age of a global pandemic:
ICC Sec Gen sets out 3 priorities to revive COVID-hit global economy (International Chamber of Commerce)
ICC Secretary General John W.H. Denton AO has outline three priorities for reviving the global economy as quickly and as safely as possible in the COVID-19 era. “We cannot respond to COVID-19 based on fear, distrust and entrenched global isolationism. But rather we must build on creativity, connectivity and mutual benefit. That is how we achieve long-term gains for everyone, such as inclusive growth and sustainability,” he said. “If much government discourse around supply chains is perhaps exaggerating a problem to justify a solution, there is not enough attention on the systemic problems in trade finance markets and very few proposed solutions,” Mr Denton said. “Simply put: if the world is banking on a trade-led recovery, we better make sure the banks can finance global trade. And that will require a possible US$5 trillion to flow to the real economy – something that just won’t happen without major, coordinated public interventions.”
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National news
Commitment made to reduce food waste (TimesLIVE)
“Ultimately, the CGCSA is advocating for legislation to make it possible for surplus food, which is still safe for human consumption, to be donated to the needy as part of national goals to avert food insecurity in SA,” he said. “We appreciate the willingness of these companies, both manufacturers and retailers, to partner with government in ensuring food waste is reduced, with the aim to eliminate food waste in the near future. This is one of the efforts by SA to transition to sustainable consumption and production and achieve healthy and sustainable food systems,” Thembelihle Ndukwana, director of agro processing at the department of trade & industry said.
Environment at stake, as Uganda loses millions of food (Eagle Online)
Ghana: NGO commends the government’s effort on reducing food loss (GhanaWeb)
Editorial Comment: Food waste prevention strategies vital for Zim (The Herald)
‘Sanctions hamper access to capital’ (The Herald)
Zimbabwe’s efforts to implement sustainable development and its capacity to revive the economy from the impact of Covid-19 pandemic are hampered by the illegal sanctions denying access to capital, President Mnangagwa has told the United Nations, while appealing for more debt relief for developing countries. “Efforts towards practical and real time solutions to the sustainable debt burden that constitutes risk to long lasting recovery for most developing countries must be vigorously pursued. The efforts must enable debtor countries to channel more resources towards developmental programmes for Zimbabwe,” President Mnangagwa said.
Good news as Covid-19 tax reliefs to stay (Nation)
Kenyans will continue enjoying the current tax relief extended by the government to cushion households and businesses against the Covid-19 pandemic for another three months. But, some other tax reductions will be in place for much longer as they will lapse in July next year to coincide with the end of the government’s financial year. Small businesses will also continue paying a reduced turnover tax. “To continue cushioning our micro, small and medium enterprises, the Treasury considers maintaining the reduction of the current turnover tax from three per cent to one per cent,” the President said at the end of yesterday’s Covid-19 conference.
Kenya in African digital pact to ease movement of goods (Business Daily)
Kenya is among 13 African countries that have entered into a digital deal to ease movement of goods across the continent.The countries have jointly activated the Regional Customs Transit Guarantee Scheme (RCTG-Carnet) that allows free movement of goods among signatories to the platform.Kenya, a signatory to Africa’s Free Trade Area agreement now has a regional platform that facilitates faster clearance of goods at border points.Other signatories are Burundi, Djibouti, DR Congo, Ethiopia, Madagascar, Malawi, Kenya, Rwanda, South Sudan, Sudan, Tanzania, Uganda and Zimbabwe.
Remittances in August register Slight Drop to Hit Sh29.7bn (Capital Business)
Kenyans living abroad sent home Sh29.7 billion during the month of August, marking a one percent drop from Sh29.9 billion that was dispatched in July. However, the cumulative inflows in the 12 months to August were higher Sh316.9 million compared to Sh301.1 million over a similar period last year. Data from the Central Bank of Kenya reveals that the United States was amongst the top contributors to the diaspora remittances as the country is still on the road to recovery from the economic impact it has faced over the coronavirus disease.
UNCDF: Tanzania model of least developed economies (Dailynews)
The United Nations Capital Development Fund (UNCDF) has described Tanzania’s entry into middle-income economy as an outstanding example of knowledge and technical support in catalysing local development investment. Mr Peter Malika, the Head of UNCDF, said the project dubbed as Local Financing Initiative (LFI) was supporting technical knowledge, providing seed capital and writing bankable business plans to local entrepreneurs, which had yielded positive results and fighting against poverty in Tanzania.
Uganda to help build roads inside Congo, citing trade goals (The Star)
Uganda’s government said Tuesday it would help finance projects to surface over 200 kilometres (124 miles) of road inside neighbouring Congo as part of plans to boost trade between the countries.Uganda will contribute about 20% of the project value while the rest will be met by Congo’s government in an envisaged public-private partnership, Ugandan Works and Transport Minister Gen. Katumba Wamala told The Associated Press. The projects will boost investment and improve security in eastern Congo, the statement said.
Tanzania, Burundi plan for railway and refinery (The East African)
After last week’s maiden tour of Tanzania, where Burundi’s President Evariste Ndayishimiye met Tanzanian President John Magufuli in Kigoma, the two countries agreed to build a railway to transport minerals from Gitega. The railway is expected to run from Uvinza in western Tanzania to Gitega in central Burundi through Musongati, where the largest deposits of nickel are found. The two governments have set up a permanent commission to implement the project.
Bank identifies public, private cooperation as core to agricultural transformation (The Guardian Nigeria)
Chairman, Board of Directors, Sterling Bank Plc, Asue Ighodalo, has identified five core areas that should be articulated in the quest to transform the agricultural sector in Nigeria and African. The Chairman stated this in his welcome address at the virtual Agriculture Summit Africa (ASA), organised by Sterling Bank, themed: Fast Forward Agriculture: Exploiting the Next Revolution,” with synchronized broadcast studios from Lagos and Abuja. Ighodalo urged governments in sub-Saharan African economies to optimise the agricultural sector to attract sizeable investments that will help to drive expansion, and achieve global competitiveness as well as increase financing to key points of the value chain, particularly small holder farmers, to modernize their practices and increase outputs.
Nigeria: Rising inflation/energy prices force small businesses to close (The Africa Report)
Nigeria’s mounting inflation in parallel with growing costs of energy are driving small and medium businesses away; at a time when the whole economy is suffering from the impact of the pandemic. At a time when the nation is reeling from the effects of the coronavirus pandemic which negatively impacted government and business revenues, as well as individuals’ personal incomes, the Nigerian government gave the nod for a 100% increase in electricity tariff that sees Nigerians paying N62.33 from 30.23 per kilowatt unit of energy per hour (kwh).
Prices of rice, tomatoes, frozen foods increase in September as traders lament low turnover (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. An interview with a trader at Oyingbo market revealed that customers have become disgruntled with the persistent increase in prices of most food items, as it has become a cause for worry to the traders, “We are worried about this continued increase in price of food, as some of our customers now decide to buy less due to the price increment, while others just take a walk,” She said.
Addressing Youth Unemployment in Ghana Needs Urgent Action, calls New World Bank Report
A new World Bank report titled “Youth Employment Programs in Ghana: Options for Effective Policy Making and Implementation” identifies agribusiness, entrepreneurship, apprenticeship, construction, tourism and sports as key sectors that can offer increased employment opportunities for Ghanaian youth. It also calls for more investments in career guidance and counseling, work-based learning, coaching, and mentoring to equip young people with the skills needed for work. The report suggests that although these are not new areas, the government could maximize their impact by scaling-up these priority areas in existing youth employment interventions and improve outreach to the youth.
Local production reduces imports of face masks: Ministry (Ethiopian Press Agency)
Health State Minister Sahrela Abdullahi stated that due to the high demand created by COVID-19, many textile companies are switching to the production of surgical face masks thereby contributing share in the import- substitution strategy. “We have witnessed huge consumption of surgical face masks at the centers,” she said, adding that that local firms’ investment in this sector will have paramount importance to supply quality products and ease the shortage. The government has disbursed substantial amount of hard currency to the purchase of COVID-19 preventive items including personal protective equipment (PPE), oxygen tanks, beds and ventilators and it encourages private sector’s involvement in the production of medical equipment.
Regional and continental news
Crisis? What crisis? COVID-19 and the unexpected recovery of regional trade in East Africa (Brookings)
At the beginning of the COVID-19 pandemic, such was the scale of the economic disruption caused by lockdown measures that there was much talk of the collapse of global trade. In the midst of the lockdowns, in April, the World Trade Organization estimated that the decline would amount from anywhere between 13 and 32 percent. In a similar vein, UNCTAD was forecasting a 20 percent decline in global trade for 2020. However, recently released trade statistics across the world reveal that those forecasts may have been overly pessimistic and underestimated the relative resilience of the global trading system. In summary, despite the depth of the economic crisis precipitated by the COVID-19 pandemic, since May 2020 intra-regional trade in East Africa has shown significant resilience with a notable positive correlation with measures put in place to protect transport corridors from severe disruptions.
Saving lives and money through the Africa Medical Supplies Platform (UNECA)
The United Nations Economic Commission for Africa (ECA) and the Common Market for Eastern and Southern Africa (COMESA) on September 17, jointly held a high-level webinar for Ministers of Finance and Ministers of Health to showcase the Africa Medical Supplies Platform (AMSP).AMSP is a digital platform intended to serve as a consolidated online marketplace to facilitate the provision of COVID-19-related medical products by addressing supply chain issues such as shortages, delays in distributing supplies, accessibility, quality standards and affordability
AMSP aims at operationalizing and fostering the primary objectives of the AfCFTA-anchored Pharmaceutical Initiative of ensuring access to safe and affordable quality medicines in Africa, through pooled procurement and capacitating local production for improved health outcomes. In her opening remarks COMESA Secretary General, Her Excellency Chileshe Kapwepwe acknowledged the value of AMSP especially as it complements their own efforts such as establishing COVID-19 guidelines to move supplies across the continent, ensuring uninterrupted supply of life-saving PPEs, Test kits, and medicines.
COMESA Hails the new Continental One-Stop-Shop for Medicines
COMESA has welcomed the launch of the African Medical Supplies Platform (AMSP) as an invaluable One Stop Shop that will ensure access to safe and affordable quality medicines in Africa. “By reducing costs through pooled procurement, this initiative goes a long way in easing the financial burden and strengthening national responses to the pandemic,” she told the guests. She added: “COVID-19 has shown the limitations of globalization and global supply chains, which have been easily disrupted due to the various lockdowns and the unprecedented shortages of tradable commodities and services in our countries.”
African Export-Import Bank (Afreximbank), the pan-African multilateral EXIM bank, announces $100 million financing to enable its Member States to procure COVID-19 related medical resources through the Africa Medical Supplies Platform (AMSP). The funding is available to African governments to acquire medical supplies through the AMSP in the form of pre-approved overdraft limits for each African government. This facility quickens access to critical COVID-19 containment and therapeutic supplies by bridging short term funding gaps that African states may be experiencing. Prof. Benedict Oramah, President of Afreximbank, said: “We are mindful of the challenges many African economies are facing as they work hard every day to contain the pandemic. With this $100 million overdraft facility, we are ensuring African states are able to rapidly access diagnostic kits and medical supplies at competitive prices from African suppliers and global markets.”
African island states launch joint medicines procurement initiative (WHO)
Ministers of Health from seven small African island states today signed an agreement to jointly procure drugs and vaccines in a bid to improve quality and access to medicines and other health products. The ministers from Cabo Verde, Comoros, Guinea-Bissau, Madagascar, Mauritius, Sao Tome & Principe and Seychelles that form the Small Island Developing States signed the Pooled Procurement agreement to take advantage of economies of scale and collective bargaining. High cost of drugs and medical supplies is one of the major challenges the small island states face due to their modest populations.
Trade and Development Bank donates half a million dollars to COVID-19 response in Africa (Africa CDC)
The Eastern and Southern African Trade and Development Bank (TDB) has donated US$500,000 to support COVID-19 response across Africa by the Africa Centres for Disease Control and Prevention (Africa CDC). The donation is being made to the African Union through the COVID-19 Response Fund as part of TBD’s COVID-19 Emergency Response Programme (CERP). Admassu Tadesse, President and Chief Executive of TDB, said: “It is our duty to respond to African Union’s call for solidarity to address today’s greatest global public health crisis. The pooling of resources and fusion of efforts of global and African institutions is certainly crucial to halting the spread of the virus and mitigating its impact on the health and socio-economic situation of our peoples. We commend the African Union for bringing African countries together to act as one, with more power and greater effectiveness.”
Unlocking Africa’s digital future (The Africa Report)
Before Africa can reach the uplands of digitization – the robotics and the AI – it must first do the hard slog of reforming telecoms markets and opening up to competition, argues the outgoing head of the IFC. The big pot of gold at the end of the path to digitization can lure us into believing that most countries are speedily heading towards it. Many are not. Digitization remains constrained by the poor state of internet connectivity. In sub-Saharan Africa, only 20 percent of the population subscribes to the internet. When people subscribe, they use it sparingly: The average user consumes 300 Megabytes per month, roughly enough for half an hour of video conferencing. Addressing these constraints has little to do with AI, big data and an army of coders. The first steps to digitization are decidedly unsexy and very analog. Governments need to address vested interests, monopolization and regulatory barriers in connectivity markets to get people connected to the internet.
How to beat the lack of data on illicit outflows draining Africa of capital and tax (UNCTAD)
Africa loses at least $40 billion each year from the underinvoicing of commodity exports from the continent, according to the latest comprehensive data available. The size of trade gaps varies by country, but is relatively consistent by commodity group, with gold exports representing 77% of the total, followed by diamonds (12%) and platinum (6%). The proceeds from trade underinvoicing and other illicit financial flows (IFFs) contribute to an average of $88.6 billion per year of capital flight from Africa, which is wealth sent and held abroad. Formulating effective policies to combat illicit behaviour requires effective analytical tools. But this is often complicated by a lack of reliable data, since illicit activities are inherently clandestine.
Written by Paul Akiwumi, UNCTAD Director for Africa and Least Developed Countries.
Global trade news and Africa's global relations
African green reformer tipped to win UN trade leadership race (Climate Home News)
Two African women who have pledged green reforms are the front-runners to become the World Trade Organization’s next director-general in November. Either Kenya’s Amina Mohamed or Nigeria’s Ngozi Okonjo-Iweala could become the organisation’s first female and first African leader. According to analysts from the Center for Strategic and International Studies, many nations, particularly in Africa and the EU, are expected to support both candidates. Both women used their written candidate statements to call for environmental reform of the WTO’s trade rules, while their three opponents from Korea, the UK and Saudi Arabia, have said little about climate change.
Protect the world from sliding into global recession, urges UN chief
Speaking at a high-level event on financing for development in the era of COVID-19 and beyond, António Guterres said that while countries reacted swiftly to the global crisis, mobilizing a fiscal response of more than $11.5 trillion globally, only a fraction was accounted for by developing and emerging economies. Economies “which have the greatest need, least resources and weakest capacities for addressing the crisis,” he highlighted. The UN chief welcomed the G20’s Debt Service Suspension Initiative, which has created fiscal space in the world’s poorest countries, but added that the response did not address the magnitude of the crisis “Unless we take action now, we face a global recession that could wipe out decades of development and put the 2030 Agenda for Sustainable Development completely out of reach,” he cautioned.
South African President Cyril Ramaphosa’s address
Remarks by IMF Managing Director Georgieva
Statement by Dominic Raab, Foreign, Commonwealth, and Development Secretary
Future-proofing safe trade now urgent for developing countries (Trade 4 Dev News)
The COVID-19 pandemic is wreaking havoc with people’s lives and livelihoods, and the effects are being felt most keenly by the most vulnerable. Estimates from the World Bank point to the fact that 100 million people could now be pushed into extreme poverty, while UNCTAD reports that world trade could drop by around 20% in 2020. In developing countries, many of the sectors that had generated jobs and economic growth over the last decade have been most affected, from fruit and vegetables to cut flowers and tourism. At the same time, the pandemic highlights the interconnectedness of global supply chains, including agri-food trade. And it shows the ease with which plant pests and animal diseases can cross borders and how zoonoses – diseases transmissible from animals to humans – can spread, exposing the need for a coordinated effort to manage their impact. Yet in developing and least developed countries (LDCs), where health systems, infrastructure and resources face existing gaps, regulators and the private sector – especially small businesses – confront huge challenges to respond.
Food loss and waste must be reduced for greater food security and environmental sustainability (FAO)
At the global event marking today the first International Day of Awareness of Food Loss and Waste, the UN Food and Agriculture Organization (FAO), the UN Environment Programme (UNEP) and their partners urged everyone to do more to reduce food loss and waste or risk an even greater drop in food security and natural resources. This year we have witnessed an increase in food loss and waste as a result of movement and transport restrictions due to the pandemic. COVID-19 aside, however, each year about 14 percent of the world's food is lost before even reaching the market. Food loss is valued at $400 billion annually – about the GDP of Austria. On top of this comes food waste, for which new estimates are coming out early 2021. When it comes to environmental impact, food loss and waste generate eight percent of global greenhouse gas emissions.
Addressing Food Loss and Waste: A Global Problem with Local Solutions – World Bank (ReliefWeb)
Less Food Loss and Waste, More Right to Food (Inter Press Service)
Nations commit to reverse nature loss by 2030 (AFP)
Governments and regulators should urgently work together to improve the data used for environmental, social and governance (ESG) investing, according to a new OECD report. The OECD Business and Finance Outlook 2020 says that ESG investing has grown steadily in recent years, with ESG ratings, indices and other financial products proliferating to meet demand. Yet market participants across the board are still missing the relevant, comparable and verifiable ESG data they need to properly conduct due diligence, manage risks, measure outcomes, and align investments with sustainable, long-term value. “Finance has a critical role to play in ensuring a truly sustainable recovery from the COVID-19 crisis that will create better and greener jobs, boost income and lead to more sustainable and resilient growth,” said OECD Secretary-General Angel Gurría. “But finance can only deliver better environmental, social or governance outcomes if investors have the tools and information they need.”
DDG Alan Wolff: Trade is the best option for ensuring supply of essential goods (WTO)
Over the millennia, the ways goods, services, ideas and people have crossed borders has changed almost beyond recognition. One recent example: I am currently speaking to you from Switzerland via an internet platform that few of us were familiar with when this year began. As you are well aware, the outlook for the global economy over the next two years remains uncertain. Much will depend upon how the pandemic evolves, what measures governments and businesses will need to take, and how quickly countries can rebound from the economic damage.
While trade volumes have also been affected, it could have been much worse. In April, WTO economists projected that depending on the pandemic’s impact and the policy response, global merchandise trade volumes could fall by 13% to 32%. The experience of shortages in a relatively few, but essential, product lines, and of being unable to rely on international markets, has injected new urgency into the debate over on-shoring and near-shoring supply chains. While it is understandable that governments would be keen to avoid a repeat of these circumstances, moving value chains closer to home is not straightforward, is sometimes impractical and in many cases would carry major opportunity costs.
Climate change is an area where international action and co-operation are vital. We have seen, time and time again, that its impacts take no notice of national borders. Ahead of COP26, we are urging all countries to come forward with adaptation plans, and ambitious NDCs. Developed countries like the UK have a responsibility, to support others around the world, just as they pursue adaptation and mitigation at home. And I am calling on countries to step up to the plate. To provide more finance and assist the most vulnerable.
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National news
Public comment sought on draft COFI Bill (SAnews)
National Treasury is soliciting public comments on the second draft of the Conduct of Financial Institutions (COFI) Bill, which was published on Monday. “The COFI Bill is a key pillar in government’s Twin Peaks financial sector regulatory reform process, which aims to entrench better financial customer outcomes in the South African financial sector. It is a financial institution-facing law that sets requirements for financial institutions to meet and outcomes to deliver.” The Bill aims to significantly streamline the legal landscape for conduct regulation in the financial services sector and to give legislative effect to the market conduct policy approach, including implementation of the Treating Customers Fairly (TCF) principles.
Unemployment rate: These industries recorded the highest job losses (The South African)
Stats SA released the quarterly Labour Force Survey and it’s not looking good. Several industries recorded devastating unemployment figures. The results of the Quarterly Labour Force Survey (QLFS) for the second quarter of 2020 look bleak to say the least. The report indicated that the number of employed persons decreased by 2.2 million to 14.1 million compared to the first quarter of 2020. According to Stats SA, industries across the country suffered significant rates of unemployment.
Ethiopian Airlines rides out pandemic on strength of cargo boom (The Citizen)
Ethiopian Airlines has lost more than $1 billion in revenue during the coronavirus pandemic but has so far managed to avoid seeking a bailout or laying off any full-time employees, CEO Tewolde Gebremariam said in an interview with AFP. By pivoting in March to meet spiking cargo demand, Africa’s largest carrier partially offset the blow of a 90-percent drop in international traffic, Tewolde said. The slow rebound in passenger traffic -- total flights are at half of 2019 levels -- means Ethiopian remains in “survival mode”, Tewolde said.Yet it is simultaneously looking to deepen ties with other airlines on the continent.”It is... an opportune time now to support other airlines because we are in a better position,” he said.
Mombasa port half-year cargo volumes drop on Covid effects (The Star)
“A positive first half performance in the period July to December 2019 was overshadowed by steep decline in the preceding months of January to June 2020 due to the effects of the Covid-19,” KPA management says in its report.A survey by the East African Business Council (EABC) notes over half (51 per cent ) of EAC’s exports, Kenya included, are destined to countries highly impacted by Covid-19, while 53 per cent of its imports originate from such highly impacted countries.”Disruption of global supply chain has impacted negatively on demand of EAC exports,” EABC chief executive Peter Mathuki said.
Traders query borders and airport opening (New Vision)
Cross border, traders are not sure if during the planned opening of Uganda's borders and airports, traders and business people will be allowed in and out of the country. Margaret Auma, chairperson Elegu Women Cross Border Traders Association said they were not clear if they would be allowed to cross with their goods. Auma said they coped with doing business with the South Sudan counterparts by sending them by trucks. “Truck drivers drive the goods to Nimuli Border Post in South Sudan. They leave them there and come back. Payments are done by mobile money,” Auma said. She said if traders are allowed to move they will be able to travel where necessary. Business activities are likely to pick up as the airport, borders open to tourists, visitors and returning Ugandans on Thursday October 1.
Uganda accuses Tanzania of unfair charges on transporters (The Citizen)
Uganda and Tanzania are locked in a dispute over road user fees for trucks headed to the Dar es Salaam port, with Kampala threatening to retaliate against “unfair” charges imposed on its transporters that are higher than those applicable to Rwandan shippers. Kampala has filed a complaint with the EAC Council of Ministers, accusing Tanzania of breaching the Common Market Protocol by imposing different road user charges to partner states in the same trading bloc. Escalation of the dispute could hit over $171 million worth of trade between the two East African neighbours, and inflict more damage on the fragile regional integration process.
FG inaugurates digital Nigeria portal, mobile app (Punch Newspapers)
The Federal Government on Monday inaugurated the digital Nigeria portal and mobile app. Minister of Communications and Digital Economy, Isa Pantami, said the move was in furtherance of the Digital Nigeria Programme, which was kicked off by the President, Major General Muhammadu Buhari (retd.), on March 19, 2020. At the inauguration in Abuja, the minister said the programme was part of the Federal Government’s initiatives aimed at empowering innovators and entrepreneurs with the requisite skills to thrive in the emerging digital economy.
Customs agents describe PAAR illegal, seek review (The Guardian Nigeria)
The National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), has said that the Pre-Arrival Assessment Report (PAAR) on cargoes is not backed by any existing law. Therefore, its component is strange and not recognized for the treatment of valuation and other Customs matters, and aligned with the international valuation process. “PAAR has no legal relevance with regards to pre-assessment procedures and treatment of imports, as such goods are not pre-assessed before arrival and not inspected, which require the select principle of examination to be conducted with frequent lifting of value in contravention of the Customs and Excise Management (Amendment) Act 20 of 2003.
USAID, FG Launch $16.6m New Initiative To Improve Agriculture In Nigeria (Leadership)
The U.S. Agency for International Development (USAID) and Federal Ministry of Agriculture and Rural Development have launched an innovative new initiative that will leverage the power of entrepreneurship to improve agricultural outcomes in Nigeria. The initiative which is a five year, $16.6 million innovative Feed the Future Nigeria Agricultural Extension and Advisory Services Activity, will facilitate learning and replication in agriculture through private sector-embedded extension models to help more than two million small stakeholder farmers make use of new agricultural technologies and practices.
AfCFTA: Nigeria To Benefit From $900bn Global Shipping Business (Leadership)
As deliberations and ratification of the African Continental Free Trade Area (AfCFTA) continues, the president of Ship Owners Association of Nigeria (SOAN), Dr Mark George Onyung, has said that Nigeria would benefit from over $900 billion daily global shipping business. Onyung, who disclosed this at the weekend in Lagos, during a meeting with the visiting secretary general of AfCFTA, said, SOAN would diversify as many of their ships have been moving oil to other parts of the world.
Leaders join sanctions removal crusade (The Herald)
Zimbabwe has endured the intolerable and crushing impact of economic sanctions for almost two decades. This has largely affected economic growth as the country is not accessing lines of credit to boost productivity and even address other wider social and health issues such as the novel coronavirus pandemic, HIV and Aids, cancer and other new and emerging diseases. Sanctions have inflicted considerable economic harm on Zimbabwe and this has been felt in a number of sectors. Lack of access to the global financial system has contributed to the suffering of masses as they suffer from shortages of specialised medicine and other important national services that require imported machinery and equipment.
Regional and continental news
Africa could gain $89 billion annually by curbing illicit financial flows (UNCTAD)
UNCTAD’s Economic Development in Africa Report 2020 says stopping illicit capital flight could almost cut in half the annual financing gap of $200 billion that the continent faces to achieve the Sustainable Development Goals. Illicit financial flows (IFFs) are movements of money and assets across borders which are illegal in source, transfer or use, according to the report entitled “Tackling illicit financial flows for sustainable development in Africa.” It shows that these outflows are nearly as much as the combined total annual inflows of official development assistance, valued at $48 billion, and yearly foreign direct investment, pegged at $54 billion, received by African countries – the average for 2013 to 2015.
AfCFTA negotiations continue despite coronavirus snag, ECA’s Stephen Karingi (UNECA)
Member States are continuing negotiations on phase 1 issues of the African Continental Free Trade Area (AfCFTA) despite the ongoing novel coronavirus pandemic, says Economic Commission for Africa’s Stephen Karingi.Mr. Karingi, Director of the ECA’s Regional Integration and Trade Division, says though timelines may have been revised for the commencement of trade with the global pandemic taking a toll on the advancement of the operational phase of the AfCFTA, the need for further analysis on the linkages and interplay between phase II issues was critical to support negotiations.Mr. Karingi was speaking during a virtual Expert Group Meeting to review the draft publication; Towards a Common Investment Area in the African Continental Free Trade Area: Levelling the Playing Field for Intra-African Investment.
Covid-19: Accountants urge digital shit to boost recovery (IPPMEDIA)
Experts in the field of accountancy who participated in an online conference organized by the Association of Chartered Certified Accountants (ACCA) East Africa made these assertions in discussing the theme, ‘Covid-19: The Road to Recovery,’ fielding leading accountants from Tanzania, Uganda, Rwanda and Kenya. These include shift from ‘business as usual’ to creativity and adaptability as well as strong cooperation between the public and private sectors.
Pandemic spurs Africa's mobile telcos to ramp up banking bid (Business Report / Reuters)
When Covid-19 hit Ivory Coast, Bonaventure Kra, who works at an import-export business, began to worry. Handling hard cash all day was a risk. Queuing in crowded bank branches exposed him to infection. Africa's mobile phone operators are ramping up plans to bring banking to millions of Africans, in some cases for the first time, after the coronavirus crisis caused a surge in use of digital financial services. "It's one of those industries that we consider to be ripe for disruption," Sibusiso Ngwenya, financial services managing executive at South Africa's Telkom, told Reuters.
East Africa slowly reopens for business after Covid-19 havoc (The East African)
Businesses across East Africa are racing to pick up the pieces after six months of Covid-19 restrictions, setting the stage for economic recovery and a rise in employment numbers.Emboldened by the declining Covid-19 infections, EAC partner states are in the process or have already re-opened their borders, hotels and schools. “Flattening the Covid-19 curve is a national endeavour that requires action at the individual, community, county, and national levels. Every one of us must play our part for Kenya to triumph over the disease,” said Kenya’s Head of Public Service, Joseph Kinyua, in a statement to the media last week.
EALA launches delayed five-year strategic plan (IPPMEDIA)
EALA Speaker Ngoga Martin said yesterday that the just launched document is the regional assembly’s third strategic plan, projecting its activities from 2019 to 2024, meant to guide EALA operations under ten broad thematic areas. “This is a significant milestone to be proud of and on behalf of the Commission, the broad membership and Secretariat, I take great pleasure in introducing the new strategic plan,” he stated.
EAC seeks integration of financial services (The Citizen)
The East African Community (EAC) has approved several draft policies aimed to integrate the financial services among the partner states. The integration will be realized through fast-tracking of implementation of Payment and Settlement systems in the region, among others. The EAC Banking Certification Policy and its implementation strategy and road map is among the key document endorsed. Also approved are the draft EAC Microfinance Service Policy and the draft EAC Insurance Bill.
ECOWAS Commission begins consultation for post-2020 vision on South-South (The Sun Nigeria)
The Economic Community of West African States (ECOWAS) has begun a-two day consultation workshop on the organisation’s post-2020 vision for the South-South zone. Head of ECOWAS National Unit, Ministry of Foreign Affairs, Mr. J. U. Oyi, said in his key note address noted that the workshop was targeted at outlining the expectations of the people of Nigeria, with regards to the formulations of ECOWAS vision-2050 documents. To achieve this, Oyi said the workshop would be “consultative, participatory and forward thinking as the outcome of this workshop would be communicated to ECOWAS Commission as Nigeria’s position.”
A New Paradigm of African Agricultural Development (Bain)
In order to feed and employ the fastest-growing population in the world, we need a new approach to agricultural development in Africa, one with farmer-allied intermediaries at its center Working hand in hand with smallholder farmers, farmer-allied intermediaries, including producer organizations, aggregators, processors and vertically integrated food brands, can simultaneously achieve a number of critically important outcomes for a broad set of stakeholders. These include enhancing the livelihood of smallholder farmers and alleviating rural poverty, delivering quality agricultural output to buyers, creating a more efficient sales channel for input providers, making more nutritious food available to Africa’s growing populations, and creating jobs and contributing to broader economic development (see Figure 3). This approach to agricultural transformation is consistent with the United Nations’ goals for sustainable development
Global trade news and Africa's global relations
Germany’s trade with Africa falls amid coronavirus pandemic (DW)
In recent years, German companies doing business on the African continent have expressed their delight at the supposedly record-breaking trade between Germany and Africa. This year, though, it’s a different story. Due to the coronavirus pandemic, German imports from Africa fell sharply to 10.4 billion euro ($12.1) from January to July 2020, according to Germany’s Federal Statistical Office. That’s a decline of nearly 3.6 billion euro, or 26%, compared to the same period in 2019. Exports aren’t looking much better. They fell by around 2.6 billion euro, or 18%, to around 11.6 billion euro from January to July 2020 compared to the same period last year.
South Africa, China working on new 10-year strategic cooperation plan (BizNews.com)
South Africa and China are working on a new 10-year strategic program for cooperation, as the current one nears its end. The new plan will focus on collaboration in areas including higher education, skills transfer, health, the digital economy, science and technology, Public Enterprises Minister Pravin Gordhan said at an online briefing hosted by the Chinese Embassy on Monday.
G20 debt service suspension initiative applications rose to 46 countries to date
The G20 International Financial Architecture Working Group (IFA WG) concluded today its September meetings, where it discussed updates on the implementation of the Debt Service Suspension Initiative (DSSI), alongside various financial resilience and stability topics, including in the context of COVID-19 impacts and global economic recovery.
The initiative provides an estimated USD14 billion of immediate liquidity relief by bilateral official creditors alone in 2020. The G20 is also working with International Organizations to complement these efforts, including Multilateral Development Banks, who are planning to commit USD75 billion for DSSI-eligible countries over the period between April-December 2020 alone, part of their USD230 billion commitment for emerging and low-income countries as a response to the pandemic. In addition, since late March, the IMF has provided debt relief to 28 DSSI-eligible countries and also provided financial assistance of more than USD88 billion to 81 countries, 53 of which are DSSI-eligible countries facing the economic impact of COVID-19.
The international community continues to make progress towards strengthening developing countries’ ability to effectively tax multinational enterprises, despite the adverse impact of the COVID-19 crisis on domestic resource mobilisation efforts. Tax Inspectors Without Borders (TIWB), a joint OECD/UNDP initiative launched in July 2015 to strengthen developing countries’ auditing capacity and multinationals’ compliance worldwide, has gained increased relevance in the COVID-19 era as a practical tool to help developing countries collect all the taxes due from multinational enterprises. To-date, TIWB assistance has delivered more than USD 537 million in additional revenue for developing countries up to June 2020, according to its latest annual report.
Mission Impossible? Can Fragile States Increase Tax Revenues? (IMF Blog)
The COVID-19 shocks are proving to be especially challenging for fragile states. Pre-COVID, fiscal revenues were low in such countries and governments were struggling to raise them. Now, COVID-19 is hitting them hard and fiscal revenues are falling. Once the pandemic abates, restoring and further enhancing tax collection is even more important to secure debt sustainability, facilitate the post-COVID-19 recovery, and meet development financing needs in order to meet the Sustainable Development Goals. This is a formidable challenge. However, our new staff research finds that achieving sizable gains in tax collection in fragile environments is not “mission impossible.”
New WTO working group established to deepen trade and gender discussions
A group of WTO members agreed to establish an Informal Working Group on Trade and Gender on 23 September, marking the next phase of an initiative kickstarted in 2017 to increase the participation of women in trade. The online meeting to launch the new WTO working group was held at the invitation of Iceland and Botswana. The Informal Working Group’s objectives will be to continue to share best practices among members on increasing women’s participation in trade, consider and clarify what a “gender lens” is in the context of international trade and review how a gender lens could usefully be applied to the work of the WTO, review and discuss gender-related analytical work produced by the WTO Secretariat, and explore how best to support the delivery of the WTO Aid for Trade work programme. It will convene for its first meeting in the second half of 2020 and establish a schedule of activities and themes to be discussed in the run up to the 12th Ministerial Conference.
UNDP and UN Women launch COVID-19 Global Gender Response Tracker
Most of the world’s nations are not doing enough to protect women and girls from the economic and social fallout being caused by the COVID-19 crisis, according to new data released today by UNDP and UN Women from the COVID-19 Global Gender Response Tracker. The tracker, which includes over 2,500 measures across 206 countries and territories, specifically analyses government measures with a gender lens in three areas: those that tackle violence against women and girls (VAWG), support unpaid care, and strengthen women’s economic security.
Structured discussions on investment facilitation for development move into negotiating mode (WTO)
Participants in the structured discussions on investment facilitation for development began on 25 September 2020 formal negotiations on a multilateral agreement on this issue, with a view to achieving a concrete outcome by the 12th WTO Ministerial Conference (MC12) scheduled for next year. “Our objective for this new and crucial stage of the structured discussions is clear: to advance as much as possible on the drafting of the specific provisions of the future multilateral framework on investment facilitation for development with the aim of making meaningful progress towards the end of the year, keeping in mind our overall objective of achieving a concrete outcome at MC12,” Ambassador Francke added.
How will COVID-19 change global development? 5 experts weigh in (Devex)
The unofficial theme of the 75th United Nations General Assembly, which certainly looked and felt different, was the response to and recovery from COVID-19. The unprecedented crisis has cast a long shadow and disrupted ongoing development efforts, which were already falling short of what was necessary to achieve the Sustainable Development Goals.
While COVID-19 has in some ways paused “everything,” it has not stopped climate change, the need for poverty alleviation, or “all the issues we had when we shaped the agenda for the SDGs,” said Amina Mohammed, deputy secretary-general at the U.N., at a World Economic Forum event last week. COVID-19, therefore, should only reinforce the need for the SDGs as a framework, and the goals should be front and center in any response, she said. Mohammed called on the world’s richer countries, those which have spent trillions on their domestic stimulus packages, to step up and support poorer countries.
Paris Agreement Implementation and Compliance Work moves forward with informal meet (Republic World)
While the world is still battling with the COVID-19 pandemic, climate activists along with several world leaders have tried to raise the issue of environmental degradation at the United Nations. Recently, UN’s Paris Agreement Implementation and Compliance Committee (PAICC) took forward the 2015 accord in an informal virtual meet addressing the different ways in which the world can work in unison to effectively tackle the issue. The statement said, “The draft Rules of Procedure under discussion aim to address any matters necessary for the proper and effective functioning of the PAICC. Once completed, the Rules of Procedure will address any matters necessary for the proper and effective functioning of the PAICC, including the
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Africa could gain $89 billion annually by curbing illicit financial flows
UNCTAD’s Economic Development in Africa Report 2020 says stopping illicit capital flight could almost cut in half the annual financing gap of $200 billion that the continent faces to achieve the Sustainable Development Goals.
Every year, an estimated $88.6 billion, equivalent to 3.7% of Africa’s GDP, leaves the continent as illicit capital flight, according to UNCTAD’s Economic Development in Africa Report 2020.
Illicit financial flows (IFFs) are movements of money and assets across borders which are illegal in source, transfer or use, according to the report entitled “Tackling illicit financial flows for sustainable development in Africa.”
It shows that these outflows are nearly as much as the combined total annual inflows of official development assistance, valued at $48 billion, and yearly foreign direct investment, pegged at $54 billion, received by African countries – the average for 2013 to 2015.
“Illicit financial flows rob Africa and its people of their prospects, undermining transparency and accountability and eroding trust in African institutions,” said UNCTAD Secretary-General Mukhisa Kituyi.
These outflows include illicit capital flight, tax and commercial practices like mis-invoicing of trade shipments and criminal activities such as illegal markets, corruption or theft.
From 2000 to 2015, the total illicit capital flight from Africa amounted to $836 billion. Compared to Africa’s total external debt stock of $770 billion in 2018, this makes Africa a “net creditor to the world”, the report says.
IFFs related to the export of extractive commodities ($40 billion in 2015) are the largest component of illicit capital flight from Africa. Although estimates of IFFs are large, they likely understate the problem and its impact.
IFFs undermine Africa’s potential to achieve the SDGs
IFFs represent a major drain on capital and revenues in Africa, undermining productive capacity and Africa’s prospects for achieving the Sustainable Development Goals (SDGs).
For example, the report finds that, in African countries with high IFFs, governments spend 25% less than countries with low IFFs on health and 58% less on education. Since women and girls often have less access to health and education, they suffer most from the negative fiscal effects of IFFs.
Africa will not be able to bridge the large financing gap to achieve the SDGs, estimated at $200 billion per year, with existing government revenues and development assistance.
The report finds that tackling capital flight and IFFs represents a large potential source of capital to finance much-needed investments in, for example, infrastructure, education, health, and productive capacity.
For example, in Sierra Leone, which has one of the highest under-five mortality rates on the continent (105 per 1,000 live births in 2018), curbing capital flight and investing a constant share of revenues in public health could save an additional 2,322 of the 258,000 children born in the country annually.
In Africa, IFFs originate mainly from extractive industries and are therefore associated with poor environmental outcomes.
The report shows that curbing illicit capital flight could generate enough capital by 2030 to finance almost 50% of the $2.4 trillion needed by sub-Saharan African countries for climate change adaptation and mitigation.
IFFs are concentrated in high-value, low-weight commodities, especially gold
The report’s analysis also demonstrates that IFFs in Africa are not endemic to specific countries, but rather to certain high-value, low-weight commodities.
Of the estimated $40 billion of IFFs derived from extractive commodities in 2015, 77% were concentrated in the gold supply chain, followed by diamonds (12%) and platinum (6%).
This finding offers new insights for researchers and policymakers studying how to identify and curb IFFs and is relevant to all gold-exporting countries in Africa, for example, despite their differing local conditions.
The report aims to equip African governments with knowledge on how to identify and evaluate risks associated with IFFs, as well as solutions to curb IFFs and redirect the proceeds towards the achievement of national priorities and the SDGs.
It calls for global efforts to promote international cooperation to combat IFFs. It also advocates for strengthening good practices on the return of assets to foster sustainable development and the achievement of the 2030 Agenda for Sustainable Development.
Need to collect better trade data to detect risks related to IFFs
Specific data limitations affected efforts to estimate IFFs. Only 45 out of 53 African countries provide data to the UN International Trade Statistics Database (UN Comtrade) in a continuous manner allowing trade statistics to be compared over time.
The report highlights the importance of collecting more and better trade data to detect risks related to IFFs, increase transparency in extractive industries and tax collection.
The UNCTAD Automated System for Customs Data (ASYCUDA), including its new module for mineral production and export, called MOSES (Mineral Output Statistical Evaluation System), are potential available solutions.
African countries also need to enter automatic exchange of tax information agreements to effectively tackle IFFs.
Africa should improve regional cooperation on IFFs and tax
Although IFFs are a major constraint to domestic resource mobilization in Africa, African governments are not yet sufficiently engaging in the reform of the international taxation system.
Transparency and cooperation between tax administrations globally and within the continent is key to the fight against tax evasion and tax avoidance.
Regarding regional cooperation on taxation within the continent, the African Tax Administration Forum can provide a platform for regional cooperation among African countries.
Regional knowledge networks to enhance national capacities to tackle proceeds of money laundering and recover stolen assets, including within the context of the African Continental Free Trade Area (AfCFTA), are crucial in the fight against corruption and crime-related IFFs, the report says.
Tackling IFFs requires international action
Tax revenues lost to IFFs are especially costly for Africa, where public investments and spending on the SDGs are most lacking. In 2014, Africa lost an estimated $9.6 billion to tax havens, equivalent to 2.5% of total tax revenue.
Tax evasion is at the core of the world's shadow financial system. Commercial IFFs are often linked to tax avoidance or evasion strategies, designed to shift profits to lower-tax jurisdictions.
Due to the lack of domestic transfer pricing rules in most African countries, local judicial authorities lack the tools to challenge tax evasion by multinational enterprises.
But IFFs are not just a national concern in Africa. Nigeria’s President Muhammadu Buhari said: “Illicit financial flows are multidimensional and transnational in character. Like the concept of migration, they have countries of origin and destination, and there are several transit locations. The whole process of mitigating illicit financial flows, therefore, cuts across several jurisdictions.”
Solutions to the problem must involve international tax cooperation and anti-corruption measures. The international community should devote more resources to tackle IFFs, including capacity-building for tax and customs authorities in developing countries.
African countries need to strengthen engagement in international taxation reform, make tax competition consistent with protocols of the AfCFTA and aim for more taxing rights.
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New WTO working group established to deepen trade and gender discussions
A group of WTO members agreed to establish an Informal Working Group on Trade and Gender on 23 September, marking the next phase of an initiative kickstarted in 2017 to increase the participation of women in trade. The online meeting to launch the new WTO working group was held at the invitation of Iceland and Botswana.
Iceland Ambassador Harald Aspelund, co-chair of the International Gender Champions (IGC) Trade Impact Group, introduced the proposal to establish the WTO Informal Working Group. This proposal, he said, stemmed from consultations with WTO members who expressed support for following-up on the commitments contained in the pdf Buenos Aires Declaration on Trade and Women's Economic Empowerment (493 KB) . The declaration established an initiative to remove barriers to women's participation in trade and was supported by 118 WTO members and observers at the 11th Ministerial Conference in 2017. It now counts 127 signatories.
The Informal Working Group's objectives will be to continue to share best practices among members on increasing women's participation in trade, consider and clarify what a “gender lens” is in the context of international trade and review how a gender lens could usefully be applied to the work of the WTO, review and discuss gender-related analytical work produced by the WTO Secretariat, and explore how best to support the delivery of the WTO Aid for Trade work programme. It will convene for its first meeting in the second half of 2020 and establish a schedule of activities and themes to be discussed in the run up to the 12th Ministerial Conference.
“The Buenos Aires Declaration on Trade and Women's Economic Empowerment has become a vital part of the WTO's work to make trade more inclusive,” Deputy Director-General Yonov Frederick Agah said at the meeting. “Today marks an important new phase in moving this work forward on a continued transparent, collaborative and open basis.” Read his full remarks here.
Botswana Ambassador Athaliah Molokomme, likewise a co-chair of the IGC Trade Impact Group, summed up members' interventions at the meeting, saying that she found there to be strong support for the formation of an Informal Working Group and that concrete activities and timelines are needed next.
Dorothy Tembo, executive director ad interim of the International Trade Centre and co-chair of the IGC Trade Impact Group, further noted that work must continue to expand the group beyond the 127 current supporters.
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Structured discussions on investment facilitation for development move into negotiating mode
Participants in the structured discussions on investment facilitation for development began on 25 September 2020 formal negotiations on a multilateral agreement on this issue, with a view to achieving a concrete outcome by the 12th WTO Ministerial Conference (MC12) scheduled for next year.
At the first in a series of meetings of this joint initiative scheduled until the end of the year, participating members started to work on concrete drafting proposals for specific provisions based on the “informal consolidated text” that serves as a basis for the negotiations.
Four two-day meetings are foreseen in the period September-December 2020, with the possibility of adding inter-sessional meetings as needed. The coordinator of the structured discussions, Mathias Francke, Ambassador-designate of Chile, encouraged members who have not yet done so to share as soon as possible their specific text proposals, which will be incorporated in further revisions of the informal consolidated text. He also called on members to work among themselves to advance and facilitate convergence.
“Discussions in the last months have allowed us to make significant progress on the substance, allowing greater understanding of members' positions on the different issues, including in a number of instances on possible concrete language,” said Ambassador Francke.
“Our objective for this new and crucial stage of the structured discussions is clear: to advance as much as possible on the drafting of the specific provisions of the future multilateral framework on investment facilitation for development with the aim of making meaningful progress towards the end of the year, keeping in mind our overall objective of achieving a concrete outcome at MC12,” he added.
Member-driven, transparent, inclusive and open to all WTO members, this joint initiative currently has the participation of 105 members, up from the 70 that supported the pdf Joint Ministerial Statement on Investment Facilitation for Development (59 KB) launched at the 11th Ministerial Conference held in December 2017 in Buenos Aires.
In a second pdf Joint Statement on Investment Facilitation for Development (66 KB) issued on 22 November 2019, 98 members expressed support for the 2017 joint ministerial statement. They committed to intensify work to further develop the framework for facilitating foreign direct investment, and to work towards a concrete outcome on Investment Facilitation for Development at the 12th WTO Ministerial Conference (MC12). These members also agreed to continue their outreach efforts towards WTO members, especially developing and least-developed members, to ensure that the future framework helps to address their investment facilitation priorities and needs.
In the context of the WTO, investment facilitation means the setting up of a more transparent, efficient and investment-friendly business climate by making it easier for domestic and foreign investors to invest, conduct their day-to-day business and expand their existing investments.
The focus on investment facilitation comes with the recognition that in today’s integrated global economy, expanding investment flows, like trade flows, depend on simplifying, speeding up and coordinating processes. Indeed, in many cases, the bottlenecks, inefficiencies and uncertainties that investment facilitation seeks to address arise from unnecessary red tape, bureaucratic overlap or out-of-date procedures which can become costly impediments to investment.
Next meetings
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8-9 October 2020
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9-10 November 2020
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7-8 December 2020
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G20 debt service suspension initiative applications rose to 46 countries to date
G20 IFA WG advances its agenda on Financial Resilience and Supporting the Recovery
The G20 International Financial Architecture Working Group (IFA WG) concluded today its September meetings, where it discussed updates on the implementation of the Debt Service Suspension Initiative (DSSI), alongside various financial resilience and stability topics, including in the context of COVID-19 impacts and global economic recovery.
The DSSI, now in its fifth month of implementation, has received 46 applications to date from eligible countries in different regions of the world, with the most from Africa totaling to 30 countries.
Bandr Alhomaly, the Saudi G20 Presidency IFA WG policy lead, said, “All major official bilateral creditors remain committed to suspending due debt service payments to the most vulnerable countries in these challenging times. These commitments are complemented by the support of the IMF and Multilateral Development Banks to DSSI-eligible countries.”
The initiative provides an estimated USD14 billion of immediate liquidity relief by bilateral official creditors alone in 2020. The G20 is also working with International Organizations to complement these efforts, including Multilateral Development Banks, who are planning to commit USD75 billion for DSSI-eligible countries over the period between April-December 2020 alone, part of their USD230 billion commitment for emerging and low-income countries as a response to the pandemic. In addition, since late March, the IMF has provided debt relief to 28 DSSI-eligible countries and also provided financial assistance of more than USD88 billion to 81 countries, 53 of which are DSSI-eligible countries facing the economic impact of COVID-19.
pdf Communiqué: G20 Finance Ministers and Central Bank Governors Meeting - 15 April 2020 (218 KB)
The IFA WG also continued discussing ways to enhance cooperation among development partners, focusing on efforts to further develop risk insurance and catalyze private sector investment, especially in low-income countries. In addition, IFA WG discussed emerging topics related to financial resilience, including the historic level of capital outflows from emerging markets due to the COVID-19 pandemic and ways to restore sustainable flows of capital and develop domestic capital markets.
“As we begin to look towards a stronger, more resilient recovery, the G20 is exploring structural approaches to secure longer-term financing to developing countries, including through the development of domestic capital markets and crowding-in private sector investments. This comes alongside efforts to better manage risks from excessive capital flow volatility, while unlocking greater gains from enhanced cooperation between development partners,” Alhomaly added.
The IFA WG, under the Saudi G20 Presidency, will convene additional meetings in order to form and present their findings and recommendations, including their recommendation on the feasibility of extending the DSSI beyond 2020, to the G20 Finance Ministers and Central Bank Governors during their meeting on October 14.
G20 members were joined in the meetings by experts from the International Monetary Fund (IMF), World Bank Group (WBG), Bank of International Settlements (BIS), Organization for Economic Co-operation and Development (OECD), International Organization of Securities Commissions (IOSCO), and various regional development banks. The Paris Club, the UAE and Kuwait also attended part of these meetings, as they are among the creditors participating in the DSSI.
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the dtic and CDE to Host Webinar on SEZS as Drivers of Economic Growth and Industrialisation
The role of the Special Economic Zones (SEZS) as drivers of economic growth and industrialisation, will come under the spotlight at a webinar that will be hosted by the Department of Trade, Industry and Competition (the dtic), in partnership with the Centre for Development and Enterprise (CDE), on 29 September 2020. “The webinar will provide government, potential investors and SEZ operators with an opportunity to discuss how SEZs, as drivers of economic growth and industrialisation, can be used as a bedrock for sustained job creation; enterprise development; innovation and technology; and skills development, and to consequently enable a guaranteed safe environment for investments. It will also look at regional industrialisation benefits including ways to increase exports to neighbouring countries and the rest of the African region,” says Majola.
Related: SA’s SEZs create decent jobs (The Mail & Guardian)
The Special Economic Zone programme is one of the important tools that the South African government has introduced to drive economic growth and regional development. More importantly, the SEZ programme is used as a critical tool for accelerating the country’s industrial development agenda. This programme is mandated by the SEZ Act, which was proclaimed in February 2016. To complement the DTI’s SEZ strategy, a package of tax incentives will be available to companies located in certain SEZs, subject to specific criteria.
South Africa’s economic recovery complicated by costs of prohibition (Africa Times)
The head of South Africa’s tax authority (SARS) has warned that it may take years to dismantle the criminal networks that have flourished during the alcohol and tobacco ban implemented as part of the country’s response to coronavirus. SARS Commissioner Edward Kieswetter said that the ban – which was established as part of the government’s wider Covid-19 strategy – has allowed illegal operators to infiltrate the market, marketing counterfeit products to unwitting customers. The ban has been compared to the US government’s attempt to introduce prohibition in the 1920s; that policy backfired spectacularly, ushering in a lucrative bootlegging industry and empowering the country’s criminal networks.
SA, Mozambique to host trade investment webinar (SAnews)
South Africa and Mozambique will on Tuesday host a two-day virtual Trade and Investment webinar. The webinar will be held under the theme ‘Developing Afrocentric Solutions and Forging Partnership in Response to COVID-19’. Trade, Industry and Competition Deputy Minister, Nomalungelo Gina and Mozambique Deputy Minister of Commerce and Industry, Ludovina Bernardo, are expected address the virtual seminar. The webinar will focus on trade and investment opportunities available in Mozambique and also discuss strategic issues regarding Mozambique’s investment plans to stimulate the country’s economic growth amid the COVID-19 pandemic.
Osinbajo: We will soon reopen the land borders (TheCable)
Vice President Yemi Osinbajo says the federal government will soon reopen Nigeria’s land borders. In October 2019, President Muhammadu Buhari ordered the closure of land borders to check smuggling goods and arms into the country after a partial closure of the Seme border in August 2019. Speaking during a webinar organised by The Africa Report on Thursday, Osinbajo said the federal government is working towards reopening the borders. The webinar, which was themed ‘Bouncing back: Nigeria’s post-pandemic recovery plan’, focused on issues regarding government frameworks to be adopted towards economic recovery following the coronavirus pandemic which affected countries globally.
Egypt’s government to launch initiative to repay exporters’ arrears at 15% discount: Finance minister (Ahram Online)
Egypt’s government is set to launch an initiative within the coming days that allows instant and cash repayment of the entirety of export companies’ arrears from the Export Development Fund (EDF) before the end of 2020 at a discount of 15 percent, Minister of Finance Mohamed Maait announced on Sunday. “The initiative will be implemented in collaboration with the banking system, as the finance ministry will deposit a guarantee at the Central Bank of Egypt (CBE) to allow for the payment of the arrears through the end of September for export companies that are willing to pay their entire dues, but with a repay acceleration discount of 15 percent,” according to Maait.
Zambia’s call for debt relief triggers fear of domino effect across Africa (The Africa Report.com)
While the world’s second largest copper exporter has asked for a delay in paying its interest, Chad, Congo and Angola are also facing serious financial difficulties due to falling oil prices and the pandemic. Will Zambia be the first African state unable to pay its debts after the coronavirus crisis? On 22 September, the world’s second largest copper producer asked its private creditors to defer payment of interest until April. This deferral, which represents a sum of $120m, concerns three bond issues totalling $3bn issued in 2012, 2014 and 2015.
Kenyan horticulture exporters expect a full bloom (Logistics Update Africa)
The pandemic saw a decrease in the volumes of Kenyan horticultural produce as a result of the massive reduction in demand for flowers in Europe which led to a near closure of the flower auctions. The horticulture sector foresees a shift in production mainly from flowers to diversify into production of a variety of other horticultural produce to protect the farmers from reliance on one produce. As the markets open up, the industry is expected to rebound, though at a slow pace. The stakeholders are building packaging solutions, adding freight capacity to meet the growing demand for the upcoming peak season. To support the Kenyan exporters and ensure compliance to European Union (EU) standards, the government is planning to build a fumigation facility at Jomo Kenyatta International Airport (JKIA), which is expected to be operational by Q1 2021.
Regional and continental news
Stakeholders brainstorm on African free trade pact, 3 months to kick-off (Daily Trust)
As preparations for the operationalisation of the African Continental Free Trade Area (AfCFTA) scheduled for January 2021 gains traction, Nigeria’s National Action Committee AfCFTA is engaging stakeholders on the best ways the country can maximise the accruable benefits from the deal. At the first strategic stakeholders sensitization seminar held in Abuja, the Central Bank of Nigeria (CBN) however said integrating African banks into the pact was key to the success of the deal. The Director of the Monetary Policy Department at CBN, Dr. Hassan Mahmud, said: “There are about 700 banks in Africa, however, they only account for about five per cent of the global banking network. Continental integration in the banking system is key to strengthening the sector as a whole in Africa.” Secretary of the Committee and Special Assistant to the President on Public Matters, Francis Anatogu, said: “The stakeholders are an integral part of the AfCFTA drive that would ensure a smooth, seamless and beneficial implementation of the agreement.”
African countries ask for Moratorium extension ‘until 2021’ (Africanews)
African nations came out swinging during the United Nations General Assembly, calling for dramatic fiscal measures, in order to help economies survive the impact of the coronavirus pandemic. African countries estimate they need an annually support of $100 billion for the next three years, pointing out it is only a fraction of the trillions of dollars, some richer countries are using to revive their economies. “I take this opportunity to commend the efforts made by the members of the G-20, the World Bank and the International Monetary Fund in the context of the initiative for the suspension of debt servicing. I would call on the African Union to continue its efforts to attain this moratorium to 2021,” said Amadou Ba, Senegal Minister for Foreign Affairs and Senegalese abroad.
EAC Tables USD 97.6M budget proposals to EALA for 2020/2021 Financial Year
The EAC has presented to the East African Legislative Assembly, the long-awaited Budget estimates for the Financial Year 2020/2021, totaling $97,669,708, at a sitting held via virtual conference. The 2020/2021 Budget is themed: “Stimulating the economy to safeguard livelihoods, jobs, businesses and industrial recovery.” According to the Chairperson of the EAC Council of Ministers and State Minister for EAC, Republic of Rwanda, Hon Prof Nshuti Manasseh, the Budget estimates are presented at a time when EAC region as well as the globe is still reeling from the effects (and after-effects) of the Covid 19 pandemic, leading to lockdowns and a slowdown in economic activities. “The impact of the Pandemic on EAC Partner States, though not yet assessed fully, is no doubt surmounting,” the Minister said. He reiterated the EAC Budget would complement the efforts of Partner States and development partners to spur economic recovery arising from the Covid19 disruptions.
COMESA, Mauritius Considers Post Covid-19 Regional Recovery Plan as Priority
COMESA and the Mauritius have agreed on the prioritization of a post-Covid-19 regional recovery plan to assist Member States get their economies back on their feet. In a meeting conducted virtually between COMESA Secretary General Chileshe Kapwepwe and the Mauritian Minister of Foreign Affairs, Regional Integration and International Trade Hon Nandcoomar BODHA, the two agreed on the need for resource mobilization efforts to support the plan. Secretary General hailed Mauritius for setting the best example in the region in the management and containment of the Covid-19 pandemic. The country has flattened the curve and has no active Covid-19 cases. She said COMESA was actively engaged with development partners including the African Development Bank, the European Union and the World Bank to support Member States during the pandemic and after.
SADC Executive Secretary highlights region’s major achievements in its 40-year history
Peace and security, political stability, solidarity, establishment of a free trade area and increasing intra-regional trade are some of the major achievements in Southern Africa over the past 40 years, the Southern African Development Community (SADC) Executive Secretary, Her Excellency Dr Stergomena Lawrence Tax, has said. In an interview with Dr Shaka Ssali on Voice of America’s, Straight Talk Africa, H.E. Dr Tax highlighted SADC’s major successes over the past 40 years, saying these were underpinned by peace and security.
Another major achievement for SADC on the economic front, H.E. Dr Tax said, was the establishment of the Free Trade Area in (2008) which had managed to improve intra-trade. Intra-SADC trade rose from 16.3 percent in 2008 to 21.6 percent in 2016, but slowed down to 20.0 percent in 2017 and again to 19.3 percent in 2018. While performance has been mixed, at times, the speed was slow, there is hope that intra-SADC trade would grow and that Member States needed to improve their competitiveness by addressing the supply-side constraints, including strengthening cooperation in cross-border infrastructure, she said. “And now the orientation has been on industrialisation. Notwithstanding having a Free Trade Area, we realized that we need to enhance our competitiveness and productive capacities to utilize the free market which we have established,” she said.
Momentum drains from West African common currency plans (France 24)
Hopes raised by West African leaders of finally launching this year their “Eco” common currency, in the pipeline for three decades, have faded as the coronavirus crisis and squabbling over severing the remaining monetary ties to former colonial ruler France snarl progress. Chiefs of the 15-nation Economic Community of West African States (ECOWAS) regional bloc said last year the Eco would be set up in 2020 but the short time frame was not enough for the sheer logistics involved. Niger’s President Mahamadou Issoufou, whose country also uses the CFA franc, urged fellow leaders at a September summit to “come up with a new roadmap, sticking to a gradual approach for launching the common currency”.
Renewed push for African medicine body (New Era)
Health minister Dr Kalumbi Shangula this week re-introduced a motion seeking the establishment of an African Medicine Agency (AMA), which will serve as the continental regulatory body of medicines and medical products. The AMA treaty was initially introduced to the National Assembly two months ago, but debate on the issue was disrupted by the mid-year recess for parliamentarians. The treaty would enable Africa to ensure that the continent controls the illicit trade of medicine within the envisioned African Continental Free Trade Agreement (AfCFTA). “In the current Covid-19 era it is the ideal body to assess the Covid-organics offered by Madagascar and make a recommendation that would assist African states to make an informed decision on this product. It is envisaged that the AMA will provide a better environment for legitimate manufacturers to flourish and improve local manufacturing of quality products,” Shangula noted.
African civil society response to the COVID-19 outbreak; Initiatives and Lessons Learned (African Union)
The African Union’s CIDO-supported webinar series focused on community let initiatives from several African countries aiming at bringing attention to their efforts in alleviating the Covid-19 outbreak’s impact. On June 11, 2020, CIDO held the ‘African civil society response to the COVID-19 outbreak; Initiatives and Lessons Learned’ webinar gathering prominent figures from the African civil society to exchange best practices and expertise from different countries in relation to the pandemic and to the great initiatives that were implemented during the sanitary crisis. The webinar served to promote the role of civil society and provide them with a platform to share their initiatives. It aimed as well to sort out a log for lessons learned and challenges faced by CSOs.
Greener Africa: Women – The face of a digital and green revolution? (The Africa Report.com)
Africa’s digital revolution is gathering strength, buoyed by the continent’s success as the world’s pioneer in mobile money. In 2019, African technology start-ups, especially in Fintech (financial technology), raised a record level of venture capital – close to half a billion dollars. The continent has registered some of the world’s fastest internet penetration and usage rates and has increased the volume of cashless transactions and the extent of financial inclusion. However, digitalisation is not happening at uniform pace or scale and women are the missing face of Africa’s digital revolution.
The scramble for Africa’s seaports (The Star)
African governments are grappling with corruption, internal conflicts, failure in health and education sectors while at the same time trying to catch up with the urgent need for infrastructure development. This is 50 years after gaining political independence. This has caused a huge delay in infrastructural development of seaports. Consequently, most of the African countries remain dependent on ports built before the 1960s, while the current demands and standards are completely different. Currently, larger deep draught vessels require a depth of 10 or more meters while previous vessels required a minimum of seven meters.
In addition, the previous establishments are often major trade hubs that are congested and lack basic handling equipment in rapidly growing economies, coupled up with poor and corrupted managing systems of the existing ports. According to a PWC report, new port development is multifaceted in that they are increasingly multi-sectoral in nature, involving a number of ancillary projects across the broad range of sectors linked by other modes of transport.
International news
Africa.com is convening thousands of leaders of African businesses, and the highest ranks of U.S. agencies that support African business, to present opportunities for growth through trade, investment and technical assistance. This virtual summit, Africa’s Portal to Doing Business with the United States, will take place virtually on October 14, 2020.
For decades, The United States Government has funded a number of agencies and platforms to support African companies to do business with both the U.S. Government itself, and with the U.S. private sector. This is a unique opportunity for African business leaders to hear from these resources together, at one time, in one place, and to hear from other African business leaders themselves who have engaged with the United States.
The OPEC Fund approves US$20m for SMEs in East Africa (APO Group)
The OPEC Fund for International Development (the OPEC Fund) has signed a US$20 million term loan in favor of East African Development Bank (EADB). EADB will use the loan to support small- and medium-size enterprises (SMEs) and infrastructure projects in East Africa. “We are very pleased to support private sector development in East Africa, which goes to the core of our mandate,” said OPEC Fund Director-General Dr Abdulhamid Alkhalifa. “We have partnered with EADB since 2001 and we appreciate the opportunity to strengthen our relationship. SMEs are critical to achieving progress toward Sustainable Development Goal (SDG) 8 on decent work and economic growth. Efficient infrastructure, as part of SDG 9, improves access to social services, reduces business and production costs, supports trade, and will ultimately provide East Africa with a more competitive business environment.”
US-Africa trade relations: ‘Why is AGOA better than a bilateral free trade agreement?’ (Brookings)
In recent months, the U.S. began negotiations for a bilateral free trade agreement with Kenya. These negotiations are aligned with the current administration’s vision for trade reciprocity rather than unilateral trade preference programs. Although these negotiations could produce the first bilateral trade agreement between the U.S. and a sub-Saharan African country, a shift from regional preferential trade agreements to bilateral free trade agreements could undermine the growth of smaller countries, who may not be of enough economic interest to the United States. Bilateral agreements could also undermine efforts to create a regional economic bloc through the African Continental Free Trade Area (AfCFTA). When President Bill Clinton signed the African Growth and Opportunity Act (AGOA) in 2000, African countries were given a competitive edge by providing unilateral duty-free exports for 6,500 products from Africa to the United States.
Twenty years after AGOA was first adopted, we see that it has created long-term, sustainable growth by stimulating the private sector and creating jobs in a region where many countries are battling high unemployment, thereby addressing structural challenges the region faces. Additionally, in choosing a regional approach for the trade agreement, Clinton empowered both big players like South Africa and smaller players like Lesotho. In many ways, this approach aligns with the “trade not aid” mantra.
Suspension of US aid to Ethiopia is yet another example of Trump’s disregard for Africa (The Conversation)
America’s Department of State recently suspended $130 million worth of aid to Ethiopia because of “a lack of progress” on negotiations pertaining to the construction of the Grand Ethiopian Renaissance Dam on the River Nile. According to state department officials, the decision to cut aid came as a result of a direct “guidance” from President Donald Trump. The decision to suspend aid to Ethiopia comes after almost 10 years of regional and international efforts to mediate the dam dispute between Egypt and Ethiopia. Almost 60% of Ethiopians do not have access to electricity. The renaissance dam is critical to expand energy sources across the country. The country will also export hydroelectric power to its neighbours.
We need new criteria for financial support to vulnerable small states in the wake of COVID-19 (The Commonwealth)
Ministers and senior officials have called on the international community to reform the financial system and the ways it offers support to small states in the wake of the COVID-19 pandemic. Representatives of Commonwealth member countries met in the margins of the United Nations General Assembly to discuss the urgent need for improved access to financial resources and debt relief to secure small states’ economic resilience and maintain progress on their sustainable development goals (SDGs) and Nationally Determined Commitments (NDC) for tackling climate change. Commonwealth Secretary-General Patricia Scotland said: “Given the wide ranging impact of COVID-19 we need a new set of criteria for the financial support we offer to vulnerable small states and we must urgently reassess the methods we use to classify countries for official support.”
Saudi Arabia to hold virtual G20 summit on November 21-22 (Reuters)
The G20 leaders summit will be held virtually on Nov. 21-22, Saudi Arabia said on Monday, as the COVID-19 pandemic thwarted Riyadh’s hopes of hosting the gathering in the kingdom to boost its international standing. Saudi leaders had hailed the kingdom’s G20 presidency as proof of its leading role in the global economy, but the majority of the meetings have been held virtually due the novel coronavirus. The summit will focus on “protecting lives and restoring growth, by addressing vulnerabilities uncovered during the pandemic and by laying down foundations for a better future,” the statement said.
Leading Chinese fintech injects fresh impetus into world economy (China.org.cn)
As many small and medium-sized enterprises (SMEs) worldwide have been hit hard by the COVID-19 pandemic, fintech is expected to provide them opportunities to shake off the negative impact and thus inject new momentum into the global economic recovery. Besides the demonstration of innovative applications of fintech in China, more than 40 online and offline sessions were held at the three-day INCLUSION Fintech Conference in Shanghai, covering global inclusion and openness, innovative fintech, global ecosystems and partners, and green solutions and sustainability. Although the world economy remains shrouded in the gloomy shadow of the coronavirus, the financial inclusion and technological innovation brought by China’s fintech industry have offered a silver lining.
Gove heads to Brussels as EU trade talks resume (BBC News)
Cabinet Office minister Michael Gove is heading to Brussels at the start of a week of talks about the UK’s future relationship with the European Union. Mr Gove will meet European Commission Vice President Maros Sefcovic to discuss implementation of the Brexit divorce deal. And on Tuesday formal negotiations will resume as the two sides attempt to agree a post-Brexit trade deal. The last set of talks between the two sides ended acrimoniously when the UK government introduced the Internal Market Bill which would allow the UK to override parts of the original Brexit divorce deal – known as the withdrawal agreement.
pdf United Kingdom Internal Market Bill - 30 September 2020 (365 KB)
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Manufacturing tipping point could be pushed back by innovation and tech – De Ruyter (Engineering News)
Addressing the Manufacturing Circle annual general meeting (AGM) on September 22, Eskom CEO and Manufacturing Circle former chairperson Andre de Ruyter said that investing in research, embracing innovation and technology and lowering manufacturing costs were equally critical in boosting manufacturing competitiveness, as was a collaborative approach. The manufacturing sector had reached a “tipping point”, he said, adding that eliminating growth and investment barriers, while boosting the demand for local goods were just some of the measures required to place it on the path of success.
Kenya unveils first diaspora investment fund (African Business Magazine)
Kenya has introduced its first licensed investment fund for citizens living overseas, in a move that is expected to channel more of the diaspora’s money into development projects across the country. The fund is expected to provide a safe and regulated investing body for Kenyans living overseas. It also allows payments to be made using Kenya’s popular mobile money platform M-Pesa, enabling Kenyans to make investments from as little as five dollars. Susan Muigai, ADAM’s head of global business development, said: “The use of technology will be the hallmark of the five diaspora funds, available to investors from all over the world as well as Kenyans. Using the ADAM mobile app, they are able to invest, check their investment balances and even sell their units in real time using VISA cards, bank accounts and MPESA.”
Statistics Agency revises 2019 real GDP contraction further down to -1.6% (Namibia Economist)
The economy suffered a larger contraction last year than earlier estimated, according to the Namibia Statistics Agency’s recently published revised national accounts data for 2019. The latest revisions show that real GDP contracted by 1.6% in 2019 compared to the earlier estimate of decrease of 1.1% published in the preliminary national accounts report of March 2020. The largest historical revisions were made in agriculture, forestry fishing manufacturing construction and wholesale retail trade industries. Looking at the sectoral developments in 2019, the agricultural sector was the worst performing sector last year, contracting by 5.7% compared to growth of 3.3% in 2018. The industrial sector also performed poorly last year, with output dropping by 3.2% compared to growth of 6.3% in 2018. The services sector declined by 0.1 last year compared to a decrease of 1.2% in 2018. The wholesale retail industry’s dismal decrease in output of 9.1 in 2019 offset the robust growth in information communication and financial insurance services.
Mchinji One stop border post to be completed by December (Malawi Nyasa Times)
Minister of Trade, Sosten Gwengwe has said the construction of the One stop border post at Mchinji/Mwami-Zambia border would ease cross border trade between the two countries. According to the Team Leader of the Supervision at the One Stop Border project, Thomas Zilly, the Covid-19 pandemic delayed the construction, but the construction work would be completed by December 2020. “We expect an increase in the movement of the goods between the two countries, we want to export more to Zambia especially agriculture value added products,” he said.
Uganda: Speaker directs review of taxes on textile following traders’ outcry (Uganda Parliament)
The Speaker of Parliament, Rebecca Kadaga, has directed the Ministry of Finance, Planning and Economic Development to review taxes on imported textile, following uproar from traders who said the new tax regime is prohibitive. In a meeting with the United Textile Group and Manufacturers’ Association at Nakivubo, downtown Kampala, Kadaga said it is unacceptable for such taxes to be levied on traders struggling to recover from the adverse effects of the Covid-19 pandemic.
Zambia hints at first Covid default as Africa debt burden rises (IOL)
Zambia became the first African country to ask bondholders for relief since the onset of the coronavirus as nations from Angola to Kenya battle to cope with the economic hit from the pandemic.The southern African nation said it needed “breathing space” to plan a debt restructuring, and asked holders of its three Eurobonds totaling $3 billion to defer interest payments until April. Zambia’s $1 billion of notes due 2024 fell 4.5% in London to 52.46 cents on the dollar on Tuesday, after the government said a coupon payment due Oct. 14 would be included in the proposed suspension.
Nigeria’s manufacturing sector contracts for 5th consecutive month – CBN (Nairametrics)
The Manufacturing Purchasing Managers’ Index (PMI), in September 2020, has witnessed a contraction for the fifth consecutive month, as it stood at 46.9 index points. This was disclosed by the Central Bank of Nigeria (CBN), in its September PMI report released on Wednesday. The report stated that, out of the 14 subsectors surveyed, 4 subsectors reported expansion (above 50% threshold) in the review month.
Port Operations At 50% As NSC Eyes Higher Automation (Daily Trust)
The Executive Secretary of the Nigerian Shippers’ Council (NSC), Barr. Hassan Bello on Tuesday said most maritime agencies as well as shipping firms have achieved about 50 per cent automation of their port facilities. He said full automation of the ports could be reached by March 2021. Speaking in Lagos, Bello said: “Automation is sure to make progress. The Regulation Department (NSC) has already given us a report on areas that are already automated and what is the deficit. So many things are done online. NSC has carried out a survey on levels of automation and clearing processes for containerised goods and RORO cargo at shipping lines.”
Regional and continental news
President calls for women to get greater access to financial tools (SAnews)
President Cyril Ramaphosa has thrown his weight behind the empowering of women in Africa by giving them enabling tools to build themselves a financially secure and independent future. President Ramaphosa was speaking during a high-level virtual panel, G7 Partnership for African Women’s Financial Inclusion on Wednesday. “We must enable women to take advantage of the technological advances to start their own businesses, to trade and to seek employment,” President Ramaphosa said. “We believe that a digitally enabled economy with a strong emphasises on gender equality has the potential to be transformative, fair, sustainable and competitive,” he added.
AfCFTA: MAN, LCCI call for re-opening of Nigeria’s borders (The Sun Nigeria)
The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to immediately re-open the country’s land borders to boost the economy and attract the much-needed investments following the official flag-off of the African Continental Free Trade Area (AfCFTA) slated for January 1, 2021. He said the association understood government’s stance on the border closure following the massive smuggling and importation of counterfeit goods and other agriculture products into the country.
In a similar development, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, also said the private sector expected the Federal Government to re-open the borders because of its imperative to the country’s economic fortunes following its negative contribution to trade since the closure one year ago. He said the country’s economic growth had remained subdued at two per cent this year due to the border closure and other challenges, insisting that the country’s economy remains susceptible to external shocks, especially, oil price fluctuations.
AU says 17 African countries, regions under border closure amid COVID-19 pandemic (CGTN Africa)
The Africa Centers for Disease Control and Prevention (Africa CDC) on Wednesday said that 17 African countries and regions are under full border closure due to concerns related to the rapid spread of COVID-19 in Africa. The Africa CDC, a specialized healthcare agency of the African Union (AU) Commission, said in its periodic report issued on Wednesday that some 17 African countries and regions are still under “full border closure” while the closure of country-wide educational institutions has been activated across 33 African countries in an effort to halt the spread of the infectious virus. It noted that 9 African countries are practicing mandatory COVID-19 testing at borders. Meanwhile, the Africa CDC had recently published COVID-19 guidelines, which reiterated that “due to disruptions in the global supply chain, some African countries may face the risk of an acute shortage of personal protective equipment.”
Shippers call for scrapping of cash deposits for containers as security (The East African)
Cash deposits charged by shipping lines as a guarantee for the return of cargo containers by importers could soon be scrapped. The Intergovernmental Standing Committee on Shipping (Iscos) has stepped up the push for the elimination of cash deposits. Iscos Secretary General Daniel Kiange said it is a trade barrier at both the Mombasa and Dar es Salaam ports. “We have had a number of meetings. The Tuesday virtual meeting with industry players was fruitful. We have suggested doing away with cash deposits as a container guarantee, and moving to either the use of insurance or signing a guarantee form between the traders and shipping agents,” he said.
Higher levy plan for importers avoiding SGR (Business Daily)
Importers who choose to transport goods by road face higher rail import levy in a move aimed at encouraging the use of the standard gauge railway (SGR).Parliament has recommended an increase of the Railway Development Levy by 0.3 percentage points or 2.8 percent of the cost of goods ferried by road.Currently transporters pay 2.5 percent of the cost of imported goods in Railway Development Levy to move goods from the port of Mombasa to Nairobi and the hinterland. But those using SGR will pay a lower fee of 1.5 percent if recommendations of the National Assembly transport committee are adopted.
Onshoring And Intra-African Trade - Solution For Post-Covid Job Creation (iAfrica)
Sea-Air-Land Ports and Development Zones in Africa – an integrated logistics framework to accelerate reshoring, job creation, and trade. For Africa to achieve significant economic growth requires a rethink of its logistics infrastructure. Existing transportation involves a traditional truck-rail-air-sea service capability unsuited to today’s needs. The competitiveness of the continent has further been impacted by its predominant export of raw materials with the importation of manufactured product. This is characterized by China becoming Africa’s major trading partner with bilateral trade at $185 billion USD (2018) and a major negative trade impact. South Africa’s trade deficit with China alone was approximately $8.5 billion (2018).
Counterfeiting of Fake Drugs in Africa: current situation, causes and countermeasures (Inventa International)
As counterfeit goods cost a fraction of the price of the original goods, people who under normal circumstances would not have access to those products can afford them. Recently, whilst attending one workshop on Anti-Counterfeiting, the panellist told the audience something that caught in my mind: if you want to know if a specific product, from a specific brand is trending at the moment, just take a look at its presence and demand in illegal markets. Intellectual Property protection plays a very important role in the fight against counterfeiting and in helping to diminish its negative impact on the economy of a specific jurisdiction. However, Intellectual Property in Africa is currently insufficient to deal with the problematic properly, despite the progress that is being made daily with emphasis in the further developed countries.
Global trade news and Africa's global relations
EA partners throw Kenya under the bus on UK talks (The East African)
Kenya’s multimillion-dollar trade with Britain hangs in the balance after its East African Community partners failed to agree on the timeline for negotiating a new, post-Brexit trade deal. Meetings called to negotiate a collective trade agreement between the EAC and the United Kingdom have failed to make any substantive progress, leaving Kenya the most exposed to losing its $393 million exports market owing to its classification as a Lower Middle Income Country. Afraid of losing its UK market access, Kenya presented its grievances to the EAC Council of Ministers to be allowed to negotiate individually and be joined by any willing member.
India in the process of finalising trade pact with Mauritius: Piyush Goyal (The Economic Times)
Commerce and industry minister Piyush Goyal on Wednesday said India is in the process of finalising the proposed free trade pact with Mauritius. The proposed India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) seeks to mutually benefit both the countries in the area of trade in goods and services, he said. He also said that recently India and the Southern African Customs Union (SACU) have decided for early resumption of negotiations for a preferential trading agreement.
BRI can help put Africa’s key projects on fast track (China Daily)
The Belt and Road Initiative and the African Continental Free Trade Area, positioned among key global and continental frameworks, are expanding the levels of economic cooperation and offering added advantages for industrial and sustainable development. Concurrently, the two initiatives are geared to address infrastructural underdevelopment issues and bottlenecks in international trade. From an African perspective, three strategies can be pursued to ensure that the BRI is well integrated with the AfCFTA.
Effective multilateralism key to overcoming global challenges, Uhuru says (KBC)
Effective multilateral action within a rule-based international system is key to overcoming global challenges including securing lasting peace and prosperity, President Uhuru Kenyatta has said. “Kenya believes strongly that if we remain anchored in multilateralism and with the unity of purpose, we are much more agile in embracing change and positive transformations if we remain rooted in a rule-based international system and act innovatively and selflessly, we can transcend our challenges and secure lasting peace and prosperity for all,” he said.
Africa offers Asian business an abundance of investment opportunities, webinar participants learn (AfDB)
The African Development Bank today held a workshop to convey the continent’s immense investment and partnership opportunities to Asian business leaders, particularly as the continent seems poised to return to economic growth in 2021 following the impact of the COVID-19 pandemic. Africa’s huge and highly diverse continent has the second-largest population in the world and the second-largest land mass after Asia, offering tremendous investment opportunities for the Asian private sector. The Bank views Africa’s private sector as a critical engine of economic growth and development but Asian companies often lack information about the business climate.
Germany Advances as Major Player in Pan-African Trade and Investment (Africa Oil & Power)
The Germany-Africa Business Forum (GABF) hosted its second installment of its German-African cooperation-focused webinar series on Wednesday, aimed at outlining the opportunities for sustainable FDI between Germany and the African continent. Anchored by the theme of investment and trade for African economic development, the opening keynote was delivered by H.E. Nooke, and outlined four key success factors in driving Africa’s economic development: investment and business climate, transport, energy and technological infrastructure, available workforce, and access to markets. Digitalization and green energy were advanced as two of the critical sectors for facilitating Africa’s economic and social development. Africa contains a young, tech-savvy population, noted H.E. Nooke, translating to smooth technological adoption and enhanced opportunities for both consumers and businesses.
JETRO to aid Japan, India ventures in Africa (@businessline)
Japan is keen to promote collaborations between Japanese and Indian companies in various African countries in focus areas such as automobile parts, infrastructure and energy projects, home appliances and power machineries, and has proposed to facilitate “business matching”. The Japan External Trade Organisation (JETRO), the country’s foreign trade promotion body, will provide support to Japanese and Indian companies which try to establish and expand their businesses in Africa and will connect business partners and financial bodies, Yasuyuki Murahashi, Chief Director General of JETRO India, told BusinessLine.
Ministers of Foreign Affairs of Landlocked Developing Countries (LLDCs) adopted a Roadmap for Accelerated Implementation of the Vienna Programme of Action during their annual meeting in the virtual sidelines of the United Nations General Assembly. The Vienna Programme of Action is an ambitious plan agreed in 2014 to help LLDCs increase connectivity, enhance competitiveness, expand trade and structural transformation, in pursuit of development goals. However, during a midterm review at the end of 2019 it was revealed that LLDCs are not on track to achieve the goals of the Programme by the deadline of 2024.
In this context, the Chair of the Group of LLDCs, representing the group’s interests at the highest international level, requested the United Nations to develop a visionary Roadmap to accelerate progress. The Roadmap presents a call to action for policy makers, the private sector, multilateral and regional development banks, the UN system and other organizations to help address the structural challenges in LLDCs. Special focus is given to assisting LLDCs to understand and deal with the impacts of the COVID-19 crisis.
Universal broadband access is the vital catalyst needed to drive global economic recovery and accelerate lacklustre progress towards the UN Sustainable Development Goals, according to a new report released by the UN Broadband Commission for Sustainable Development. The COVID-19 pandemic has significantly underscored humanity’s growing reliance on digital networks for business continuity, employment, education, commerce, banking, healthcare, and a whole host of other essential services. Yet today, almost half the global population has still never accessed the internet, and hundreds of millions more struggle with slow, costly and unreliable connections.
Paul Kagame, Co-Chair of the Broadband Commission and President of Rwanda said: ”The first decade of the Broadband Commission has made a real impact by highlighting the transformational power of universal access to high-speed internet connectivity and smartphones. Ideas that seemed futuristic ten years ago, are now mainstream. The next decade will be about using digital tools to speed up the recovery from the Covid pandemic and make up some of the lost ground on the SDGs.”
Global trade in food and agricultural products more than doubles in last two decades (FAO)
Global agri-food trade has more than doubled since 1995, amounting to $1.5 trillion in 2018, with emerging and developing countries’ exports on the rise and accounting for over one-third of the world’s total, according to a new report issued today by the Food and Agriculture Organization of the United Nations (FAO). The State of Agricultural Commodity Markets, 2020 (SOCO 2020) argues that global trade and well-functioning markets lie at the heart of the development process as they can spur inclusive economic growth and sustainable development, and strengthen resilience to shocks. “We need to rely on markets as an integral part of the global food system. This is all the more important in the face of major disruptions, whether they come from COVID-19, locust outbreaks or climate change,” wrote FAO Director-General QU Dongyu in his introduction to the report.
Guterres advocates for digital world that ‘strengthens human rights, advances peace’ (UN News)
The UN was founded 75 years ago, at the outset of the nuclear era, to provide “a global platform for addressing the world’s most pressing challenges, to secure peace and to safeguard the future for generations”, said Secretary-General António Guterres in a video message on Thursday to the high-level meeting on digital cooperation In a digital world of both vast potential and looming challenges, good governance and global cooperation is needed too – and the UN can play a critical role in bringing all actors together, he declared. The COVID-19 pandemic has “highlighted and exacerbated global inequalities, including the digital divide”, said the UN chief. This adds further urgency to ensure that the response also illustrates the “central role of technology in keeping economies and health systems running, young people
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Retail trade confidence edged up in Q3 – Bureau for Economic Research (Business Report)
The Bureau for Economic Research (BER) on Monday said that retail trade confidence edged up in the third quarter of this year after plunging to a 29-year low of 11 index points in the second quarter. The BER, however, said retailers noted that underlying business conditions remained tough. BER said the improvement in sentiment across the entire trade sector can certainly be attributed to the eased lockdown restrictions since the bureau’s second quarter survey, when the sector registered record low levels across all categories.
SA poultry industry invests $60m in expansion (Moneyweb)
South African poultry producers have invested more than half of the funds they committed as part of a so-called master plan to grow the industry as the government earlier this year raised tariffs to counter cheap imports. Around R1 billion ($60.2 million) of the R1.7 billion pledged for expansion by 2022 has already been invested and 5% more chickens are being produced for slaughter each week, Izaak Breitenbach, a general manager of the South African Poultry Association, said Tuesday in an emailed statement.
Botswana’s Financial Stability at Risk (Botswana Gazette)
Experts say that If the pandemic becomes more protracted, it will further elevate risks to financial stability; in particular potential increase in default of bank loans and insurance premiums payments or contributions to pension funds, as well as, early pension withdrawals emanating from loss of employment and, the Financial Stability Council (FSC) said. Overall, not-withstanding the challenges engendered by the onset of the COVID-19 pandemic, the domestic financial system continues to be resilient, characterized by strong capital buffers, liquidity position and profitability. The enduring stability of the financial system according to FSC is supported by a sound macroeconomic environment, efficient market infrastructure and effective le-gal and supervisory frameworks.
Kenya’s shipyard to boost regional maritime scene (Business Daily)
The construction of one of the largest slipway in East Africa by the Kenya Navy is expected to be a major boost to maritime operations in the region. The facility, which is being put up at the Mtongwe Navy Base in Mombasa, is one of the flagship projects in new plan to revamp Blue economy. The project which is expected to be completed by June 2021 will be able to handle vessels with a capacity of up to 4,000 tonnes and measuring 150 metres high and 30 metres wide.
Tanzania, Rwanda set to strengthen bilateral, economic ties (Dailynews)
TANZANIA and Rwanda have committed to address trade barriers in order to strengthen bilateral and economic ties that would ultimately enhance business and competitiveness. According to the United Nations COMTRADE database on international trade, the two East African nations have been for many years having great trade relations that accelerated investments between the two countries. However, despite the challenges, the records show that Rwanda imports from Tanzania were 224.54 million US dollars while Rwanda exports to Tanzania were 5.1 million US dollars last year.
Cash Transfers Support Madagascar’s Poorest and Most Vulnerable Citizens During COVID-19 Restrictions (World Bank)
Containment measures enacted earlier this year to stop the spread of COVID-19 in the country’s three most affected cities have directly impacted informal businesses and the most vulnerable households. “During the period of restriction where the incomes of these vulnerable households are affected, social safety nets are a way to help families meet their basic food needs, avoid selling their assets or sacrificing their livelihood to survive, protect their human capital, while respecting the rules of confinement,” explained Julia Rachel Ravelosoa, World Bank Senior Social Protection Economist for Madagascar.
Developed by the Cash Working Group, the platform bringing together the government, technical and financial partners and social protection actors of which the World Bank has been a member since its establishment in Madagascar in 2016, this cash transfer program will be extended to prepare the period of deconfinement and the reopening of schools in order to better protect the already fragile human capital. For the World Bank, an additional financing is underway to expand the cash transfer program to more geographic areas and reach more vulnerable people.
A summer of higher food prices, limited room for monetary policy (Nairametrics)
Headline Inflation has assumed a new pattern over the last three months, primarily driven by pressures in the food basket, reflecting a shock to crop cultivation from covid-19 restrictions and border closures. In addition, more recent developments in currency markets, where the Naira has weakened, as well as the increases in petrol prices following the removal of blanket subsidies have underpinned inflationary expectations. Looking ahead, sizable increases in electricity tariffs which came into effect in September as well as continuing fuel price pressures could see inflation head towards 14% levels in Q4 2020. Given the supply-side driven nature of the inflationary bout as well as the recent pivot to unorthodox monetary policies (which include liquidity tightening measures via CRR debits) it is likely that the CBN will ignore these numbers and persist with its current stance.
Unstable laws affecting flow of foreign investments into oil sector, says NNPC (The Guardian Nigeria)
The oil and gas sector might not attract the needed foreign direct investments (FDIs) except the country reviews its regulatory framework, the Nigerian National Petroleum Corporation (NNPC) said yesterday. “We need to act quickly to move from this unstable situation to a very stable one, and the only way is for us to get the Petroleum Industry Bill (PIB) to work so that countries and investors can work with us,” the GMD stated.
Manufacturers worry about rising inflation, access to forex for raw materials (The Guardian Nigeria)
Local manufacturers have expressed concerns about rising inflation in Nigeria, considering that prices are further spiked by challenges in supply chains, occasioned by the inability to access foreign exchange for the importation of critical raw materials. According to the operators, the trend is expected to continue till the year end, except macro-economic changes are implemented. While they predicted an inflation rate of between 15 and 18 per cent, the Central Bank of Nigeria (CBN), said inflation would likely rise up to 14.15 per cent at the end of December.
FG moves to clamp down on illegal fertilizer manufacturers and agro-dealers (Nairametrics)
The economic challenges triggered by the COVID-19 pandemic and accompanying issues from foreign exchange illiquidity coupled with the existing structural and regulatory imbalances in the economy constrained the operations of the big players in the paints and coatings industry in the first half of the year. The knock-on effect of the COVID-19 induced lockdown on the global and domestic value chain like other sectors in the economy took a huge toll on the activities of the producers in the paint and coating industry, as the pandemic disrupted their operations and also their trade segments, and this in extension led to a fall in demand, sales volume, revenue and underlying profits of the players.
Regional and continental news
SACU Secretariat hosts 4th Ministerial Retreat (SACU)
South Africa’s Minister of Finance, Mr Tito Mboweni, chaired the 4th joint Finance and Trade Ministers’ virtual Ministerial Retreat meeting on 21 September 2020. The Ministers agreed on refined development priorities for the Southern African Customs Union (SACU) within the changing global and regional developments that have impacted on the Union; as well as agreed on activities that could be prioritised for SACU going forward and their sequencing. Ministers observed that much disagreement remains around issues involving the Revenue Sharing Formula (RSF) and Tariff Setting architecture, respectively. However, in the spirit of unity, they were unanimous that specific attention should be put on those issues that propel SACU forward.
Regulators in Africa’s big economies are scrambling with a spike in cryptocurrency trade (Quartz Africa)
In August 2018, a report on the state of cryptocurrency regulation across Africa came back with one obvious conclusion: most countries were undecided on what to do.In fact, 21 African countries had made no public stance on cryptocurrency regulation at the time, while only two had shared favorable stances about potential regulation. But, in what represents a major shift, Nigeria and South Africa—two of the continent’s largest economies—are stepping up regulatory plans.
In April, South Africa took its first steps towards creating cryptocurrency laws by publishing a framework proposal and, more recently, Nigeria laid out plans to regulate cryptocurrencies through its Securities and Exchange Commission. This is a marked turnaround from two years ago when the Nigerian lawmakers asked the central bank to “investigate” bitcoin.But progress remains uneven across the continent. Kenya, which has typically been at forefront of adoption of financial technology solutions in Africa, has not set out concrete plans for regulation since its central bank warned local banks against cryptocurrency dealings.
‘Africa must tap the incredible opportunity before it’ – Sayeh (The Africa Report.com)
COVID-19 has disrupted our lives and livelihoods at a pace and scale not seen in living memory. The pandemic threatens to wipe out almost a decade of development progress in Africa, as the effect of weaker health systems, lockdowns, commodity price drops, trade collapse, evaporating tourism and shrinking remittances hit the region – all at the same time. To secure a sustainable long-term recovery, leaders must make the right policy choices and mobilise investments in the region.
Agriculture Summit Africa: AfDB President, Adesina to deliver keynote address (Ventures Africa)
Dr. Akinwunmi Adesina, President of the African Development Bank (AfDB), will deliver the keynote address at the Agriculture Summit Africa (ASA) 2020 holding between September 23rd and 24th. Agriculture Summit Africa, an annual event organized by Sterling Bank since 2018, is one of the continent’s leading, privately funded platforms dedicated to increasing the value of the agribusiness value chain. It creates a convergence of private and public sector interests, development finance institutions, agribusiness investors, and players every year. The theme of this year’s Summit is, ‘Fast Forward Agriculture: Exploiting the Next Revolution.’
Ayeyemi: Africa Must Think Continental, Focus on Wealth Creation (THISDAYLIVE)
The Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Ade Ayeyemi has reiterated that African countries must adopt a continent wide approach to business and also focus on wealth creation to be relevant in the global value chain. According to Ayeyemi, for the African Continental Free Trade Agreement (AfCFTA) to become a reality, there must be commitment and readiness for trade facilitation by the individual nations. Ayeyemi who was speaking at the Ecobank virtual Regional Trade Conference 2020, noted that Ecobank is fully committed to Africa as the foremost Pan-African Bank to Unequivocally support the implementation of AfCFTA, readiness to use its unique pan-african platform to facilitate trade, payment and business and deployment of its strong Africa knowledge to support governments and businesses.
African Free Trade Agreement Needs Legal Backing, Says Lawan (THISDAYLIVE)
President of the Senate, Dr. Ahmad Lawan, has stated that the need for necessary legal backing for the African Continental Free Trade Agreement (AfCFTA) to become effective. He also stressed that for the agreement to yield expected results, it must be backed by the right policies and robust implementation. According to Lawan, aside facing the challenges of unemployment and underemployment, which have been a trigger for both regular and irregular migration, the economies of African countries have been characterised by low productivity, reduced efficiency, and the problem of limited resources. He, therefore, described the African Continental Free Trade Agreement as “a step in the right direction for the growth of African economies through limited restrictions, leading to the stimulation of trade, commerce, and industry.
CEMAC: Towards the creation of a mixed inter-state customs brigade (Business in Cameroon)
Cameroon’s Directorate-General of Customs recently hosted a meeting aimed at ensuring the consistency of the draft regulation on the creation, organization, and operation of a mixed inter-state customs brigade within the CEMAC region. During the meeting, “relevant” proposals were made for the purpose. For instance, it was suggested that the legal status of the staff employed by the brigade should be clarified, the nature of their works and the instrument they will need should be estimated as well as the means to evaluate their works elaborated. The participants also suggested that integration be promoted via facilitation of the transport and transit of goods and the promotion of free movement of people.
Green hydrogen study integrating SADC ahead of trillion dollar market emergence (Engineering News)
German-funded project to develop a green hydrogen atlas across Southern Africa is integrating the Southern African Development Community (SADF) region ahead of the projected opening up of a trillion dollar market going into the future. Funded €5.7-million by the Germany Federal Ministry of Education and Research (BMBF), the Green Hydrogen Atlas-Africa project is also placing Southern Africa on the road to contributing meaningfully to global sustainable development goals. “We’re moving really fast,” Sasscal executive director Dr Jane Olwoch commented to Engineering News & Mining Weekly in a Zoom interview, in which she described the green hydrogen atlas project as the starting point of a process to firm up data and validate green hydrogen sweet spots.
How African nations worked together to control the coronavirus (The Christian Science Monitor)
At a lecture to peers this month, John Nkengasong showed images that once dogged Africa, with a magazine cover declaring it “The Hopeless Continent.” Then he quoted Ghana’s first president, Kwame Nkrumah: “It is clear that we must find an African solution to our problems, and that this can only be found in African unity.” The coronavirus pandemic has fractured global relationships. But as director of the Africa Centers for Disease Control and Prevention, Mr. Nkengasong has helped to steer Africa’s 54 countries into an alliance praised as responding better than some richer countries, including the United States. “Africa is doing a lot of things right the rest of the world isn’t,” said Gayle Smith, a former administrator with the U.S. Agency for International Development.
Opinion: Action Needed For Africa To Benefit From Digital Trade (iAfrica)
Fuelled by smart technologies, mobile devices, and 24/7 connectivity, the way consumers browse, shop, and pay is moving towards digital. In response to these evolving consumer practices, commerce itself is undergoing a profound transformation, with businesses looking at digital solutions to improve sales, acquire new customers, and reduce costs. Cross-border sales have opened the door to a world of opportunity and e-Commerce companies are eager to storm through. Digitalization brings new opportunities. Digital services and platforms are helping to digitize many of Africa’s small businesses and can offer a pathway towards formalization. However few entrepreneurs really go regional, much less global as they lack the relevant skills, have not yet seen the benefits of the digital economy or have concerns about more formalized trading.
Global trade news and Africa's global relations
Global players urged to back African stimulus package (SAnews)
President Cyril Ramaphosa has called on the international community to support the rollout of a comprehensive stimulus package for African countries. Addressing a virtual sitting of the 75th United Nations General Assembly debate on Tuesday, President Ramaphosa, who is also the Chairperson of the African Union (AU), said the stimulus package will enable African countries to mitigate the health impacts of COVID-19 and aid the continent in the immense task of rebuilding its shattered economies. “We must boldly pursue avenues of redistribution and redress as a means of advancing shared prosperity. We must deal decisively with the rot of corruption that is robbing our people of the opportunities and services that are their right,” he said.
Transforming Agriculture for Food, Nutrition and Livelihoods (IDN-InDepthNews)
COVID-19 has turned a bad situation to worse. Smallholder farmers lost effective markets for their produce against increasingly difficult trading conditions and the impact of climate change on the production. In a new assessment, in May 2020, the United Nation warned that the coronavirus pandemic could precipitate a “global food emergency”. “The impact of COVID-19 on food systems is significant,” Dhanush Dinesh, Global Policy Engagement Manager, at CCAFS told IDN, pointing that the pandemic has affected the production and distribution of food through disrupted input supplies and market and distribution networks.
US sets lower annual apparel import cap under AGOA (Apparel Sourcing & Textile Industry News)
The US has set new – lower – annual limits on duty and quota-free imports of apparel articles assembled from regional and third-country fabric under the African Growth and Opportunity Act (AGOA) in the upcoming fiscal year. The new figures are released by the Committee for the Implementation of Textile Agreements (CITA) for the 12 months from 1 October 2020 to 30 September 2021. The annual limits are set out in the AGOA Acceleration Act of 2004, and are calculated based on the volume of all apparel articles imported into the United States in the preceding 12-month period.
The US is worried China has become Africa’s best friend – so what is Trump doing? (Face2Face Africa)
In a recent interview with the BBC, Tibor Nagy, the US assistant secretary of state for African Affairs remarked: “For too long when investors have knocked on the door, and the Africans opened the door, the only person standing there was the Chinese.” African countries are redefining the nature of trade relations with the US. Some are pursuing a bilateral arrangement with the US as they don’t find the US approach of multilateralism useful anymore. Kenya and the US are negotiating a Free Trade Agreement (FTA). If the FTA goes through, it will be America’s first bilateral trade agreement with a country in sub-Saharan Africa. U.S. Trade Representative (USTR), Ambassador Robert Lighthizer, has said the deal will become a model for future trade agreements with other African nations.
Covid-19 resurgence in Europe worries horticulture traders (Business Daily)
Kenyan fresh produce exporters are concerned about the possibility of a second Covid-19 lockdown in Europe, which would hurt their sales ahead of the peak season. The head of the Horticulture Directorate Benjamin Tito said that should the UK and other European countries – which are major markets for fresh produce – go into new lockdowns due to rising Covid-19 cases , local producers will face devastating consequences, especially if this entails closure of the European airspace. “We are keenly monitoring the development in the UK, if it will involve the cancellation of flights, then it might have a huge impact on our horticulture sector,” said Mr Tito.
Kenya offers EAC partners seat in UK trade deal talks (The Star)
the UK and Kenya will not stand still and are working at pace to secure an agreement before the end of UK’s transition period with the EU at the end of the year,” Trade Cabinet Secretary Betty Maina said yesterday.Such an agreement would provide a transition mechanism for Kenya and enable other EAC partner states to join when they are ready to do so while negotiations continue, the CS said.UK’s exit from EU has a timeline of December 31, and failure to have a trade deal will expose Kenyan exports to higher tariffs, as the EAC-EU EPA terms will not be applicable in UK.”This will provide the strongest possible platform for the United Kingdom, Kenya and, ultimately, the whole EAC, to expand our trading, investment, tourism and historical relationships in the future,” CS Maina said on the ongoing talks.
World merchandise trade fell 14% in volume, 21% in value in Q2 amid global lockdown (WTO)
In the latest data, the steepest declines were recorded in Europe (‑21%) and North America (‑20%) while Asia was relatively less affected (-7%). The nominal dollar value of merchandise trade also plunged in the second quarter, falling by 21% year-on-year. In comparison, the decline in merchandise trade values during the financial crisis was deeper with a 33% drop recorded in the second quarter of 2009.
As UN turns 75, multilateral milestones show successes and ‘how much remains to be done’ – Kagame (UN News)
Paul Kagame reminded the delegates that 25 years ago the World Conference on Women in Beijing charted a “transformative agenda on gender equality” but acknowledged that “true gender equality has still not been attained in any country”. And although the Sustainable Development Goals