INTERNATIONAL

UNCTAD chief: How to rebuild global economy and trade after COVID-19 – UNCTAD Secretary-General Mukhisa Kituyi discusses how to rejuvenate the global economy and trade in light of the COVID-19 crisis in an interview with Didem Eryar Unlu of the Turkish newspaper Dünya.  It’s too early to know exactly just how much the post COVID-19 world will be different, but some important lessons have already become clear. First, the pandemic has reminded us just how dearly we need to address persistent structural problems facing the entire world. The crisis has aggravated deep seated inequalities between and within countries.

The epidemic is affecting rich and poor differently. Faced with the impacts of the spread of COVID-19, people fare vary differently – both health-wise and economically – depending on the resources at their disposal, depending on the country that they live in, and even depending on the type of home they live in or the type of job that they have. Peoples’ fates faced with the pandemic are also intricately tied to the political choices of their leaders. Amidst the current uncertainties around the pandemic and its impact, the use and misuse of information has exposed a serious flaw in our unequal yet interconnected world.

The crisis has also deepened people’s skepticism of elites and their displeasure at behind closed doors non-transparent decision making. Across the world, whether from Washington to Beijing, from New York to Geneva this has further exposed the fragility of national, regional and multilateral institutions. This calls on leadership across the world to address these problems.

Second, the crisis has shown that we must build back better. Had we been further advanced in meeting the Sustainable Development Goals and the Paris Agreement on Climate Change, for example, we could better face this challenge - with stronger health systems, fewer people living in extreme poverty, less gender inequality, a healthier natural environment, and more resilient societies! We must seize the opportunity of this crisis to strengthen our commitment to implement the 2030 Agenda and the 17 Sustainable Development Goals. By making progress on our global roadmap for a more inclusive and sustainable future, we can better respond to future crises. (UNCTAD)

Key Words: COVID-19, UNCTD, Global Trade

Trade Facilitation in Services : A Conceptual and Empirical Analysis – Beyond their key contribution to value chains in all sectors, services represent a centrally important source of economic and export diversification. This paper discusses how to promote trade in services as a channel for growth, employment, and diversification by assessing services trade costs and identifying policies that contribute to their reduction: a concept termed trade facilitation in services. It summarizes the latest research on the costs facing trade in services beyond discriminatory market access and national treatment and finds that these are high. It proposes measures that could fall under the scope of a potential trade facilitation in services agenda, namely: (i) streamlining processes and procedures used in administering regulatory policies aside from the policy itself, (ii) improving access to information on regulatory policies (that is, transparency), and (iii) boosting the efficiency of governance structures for regulators that set policies affecting trade in services. (World Bank)

Key Words: Trade Facilitation, World Bank, Economic Growth

What future for women small-scale and informal cross-border traders when borders close? – Along African borders, the livelihoods of entire communities depend on trading activities carried out by small-scale traders, most of which are unregistered. Informal cross-border trade has been a major characteristic of the African economic and social landscape, representing up to 40% of regional trade. Because of the flexibility it affords, the small startup capital it requires, and the earning opportunities it offers in border areas where no other alternative is available, women make up the largest share of informal traders, representing 70% to 80% in some countries. In response to the global health crisis, countries in Africa have increasingly started to introduce rest.

 Some are implementing export bans or introducing export licensing requirements while still keeping all commercial borders open, whereas some are only allowing transit of essential goods, aid and relief cargo. Others have instead restricted transit entirely by closing all borders. When cross-border trade is permitted, it mainly concerns larger commercial flows. As borders close, restrictions on freedom of movement are expected to take a particularly heavy toll on those who earn a living by making regular trips between countries. As has been the case with other shocks, women risk bearing the brunt of this pandemic. On top of missed income opportunities caused by the freeze of productive activities, many women traders are suffering economic losses from goods that have remained unsold and, in many cases, gone to waste because of their perishable nature.

This adds to the pending payments of customers who are themselves unable to pay for goods that had been ordered or supplied before the crisis hit. As the economic prospects worsen and purchasing power drops, women traders are forced to use their capital for survival. Eventually, this will erode their capacity to respond and recover when activities reopen for business. Besides the immediate economic impacts on the livelihoods of cross-border traders, the inability to continue their business as usual is having wider negative spillover effects. Informal cross-border trade flows of staples and other agricultural products play a critical role in guaranteeing food security, especially in remote villages where the population relies more heavily on food items supplied through informal channels than on official distribution. As a result, severe shortages of essential goods coming from across the border, combined with the consequences of stockpiling by those who can afford it, risk to seriously hamper food security in border communities and to intensify poverty. (UNCTAD)

Key Words: COVID-19, Cross-Border Traders, Business

Urgent Appeal to International Community to Support African Travel and Tourism Sector– Five international air transport and tourism bodies have launched an appeal to international financial institutions, country development partners and international donors to support Africa’s Travel & Tourism sector which employs some 24.6 million people on the African continent. Without urgent funding, the COVID-19 crisis could see a collapse of the sector in Africa, taking with it millions of jobs. The sector contributes $169 billion to Africa’s economy combined, representing 7.1% of the continent’s GDP. 

The request is being made by the International Air Transport Association (IATA), the World Tourism Organization (UNWTO) of the United Nations, the World Travel & Tourism Council (WTTC), the African Airlines Association (AFRAA) and the Airlines Association of Southern Africa (AASA). These organizations are jointly calling on international financial institutions, country development partners and international donors to support the African Travel & Tourism sector through these tough times by providing:

• $10 billion in relief to support the Travel & Tourism industry and help protect the livelihoods of those it supports directly and indirectly;
• Access to as much grant-type financing and cash flow assistance as possible to inject liquidity and provide targeted support to severely impacted countries;
• Financial measures that can help minimize disruptions to much-needed credit and liquidity for businesses. This includes the deferral of existing financial obligations or loan repayments; and,
• Ensuring that all funds flow down immediately to save the businesses that need them urgently, with minimal application processes and without impediment from normal lending considerations such as creditworthiness.

Some African governments are trying to provide targeted and temporary support for hard-hit sectors such as Travel & Tourism. However, many countries lack the necessary resources to help the industry and the livelihoods it supports through this crisis. (IATA)

Key Words: COVID-19, IATA, Africa

WTO issues report on trade impacts for WTO members graduating from LDC status – WTO for an analysis of how graduation will impact countries’ trade relations. LDCs are accorded special treatment in the WTO, in particular with regard to enhanced market access opportunities and the implementation of WTO rules and disciplines.   While graduation represents an important milestone in their development path, phasing out of the special treatment provisions associated with LDC status could present challenges to graduating LDCs. As a result, graduation-related concerns are increasingly becoming an integral part of LDC proposals in the WTO.

The report was completed before the outbreak of the COVID-19 pandemic and the issuance of the WTO’s recent trade forecast, which foresees a sharp downturn in global trade this year. Nevertheless, the study remains pertinent as it examines the trade impacts resulting from graduation, not the factors that could constrain prospects for graduation due to the pandemic. “The WTO remains committed to helping LDCs use trade to raise incomes and reduce vulnerabilities, and thereby to graduate from LDC status,” WTO Director-General Roberto Azevêdo said. “Today, a quarter of LDCs are on track to graduate — or at least were, prior to the economic dislocation arising from the COVID-19 pandemic. They​ need to be supported. It is very positive that the international community is continuing to explore measures to facilitate a smooth and sustainable graduation process for LDCs.” A WTO member “graduates” from LDC status when it meets certain socio-economic thresholds set by the United Nations. The decision regarding graduation is taken by UN members at the recommendation of the Committee for Development Policy, an advisory body of the United Nations Economic and Social Council (ECOSOC). (WTO)

Key Words: COVID-19, WTO, Trade

'Trade is still happening' - Canada's DPM and other leaders on responding to the coronavirus crisis - "One of the areas where we feel that we have been more successful than people might have thought is in maintaining our trade with the United States," said Chrystia Freeland, Deputy Prime Minister of Canada, on navigating the economic limitations of the COVID-19 era.  Commenting on the need to close the Canadian-US border to limit the spread of the coronavirus, she added: "We have been able to cut down the traffic across that border by over 90% and at the same time trade is still happening – goods and services are still flowing across the border."

Freeland's remarks came during a weekly virtual meeting of the Forum's COVID Action Platform on 6 May. Launched last month, the Forum's platform aims to convene leaders from governments and the business community for collective action to protect people’s livelihoods, facilitate business continuity and mobilize support for a global response to the COVID-19 pandemic. To date, more than 1,500 people from more than 1,000 businesses and organizations have joined the platform. To find the latest updates on the Platform, check out our recently-launched highlights blog.

In addition to Freeland, participants on this week's webinar included: Arancha Gonzalez Laya, Minister of Foreign Affairs, European Union and Cooperation of Spain; Rich Lesser, Global Chief Executive Officer, BCG; Reema Nanavaty, Executive Director, Self-Employed Women's Association (SEWA), India; Paul Stoffels, Vice-Chairman of the Executive Committee; Chief Scientific Officer, Johnson & Johnson; Magdalena Andersson, Minister of Finance of Sweden; and Seth F. Berkley, Chief Executive Officer, Gavi, the Vaccine Alliance. (weforum)

Key Words: COVID-19, Global Trade, Canada

PAN AFRICA

The African Continental Free Trade Area: Potential Economic Impact and Challenges – This Staff Discussion Note assesses income and welfare gains from trade liberalization under the AfCFTA and potential transitional costs for countries participating in the agreement. The note focuses on the potential effects of the AfCFTA on (1) income, welfare, and trade flows; (2) income distribution and employment; and (3) tax revenues. It also discusses key policy reforms needed to maximize the benefits of the AfCFTA. 

 The AfCFTA has the potential to increase income and welfare significantly for its member countries. Previous studies have estimated that African countries could reap long-term income gains of up to 5 percent from the reduction in trade barriers in the context of the AfCFTA. Our own work focuses on the estimation of changes in welfare and shows gains of up to 2.1 percent for the continent. However, these could be substantially underestimated given the static nature of the model, which does not include potential effects of the agreement on increased investment, innovation, and knowledge diffusion. The bulk of income and welfare gains would come from increased efficiency derived from reduced non-tariff barriers (NTBs), as intraregional import tariffs are already low. In our work, we also find that the largest proportional welfare gains would tend to go to smaller countries with open economies. These would also benefit from positive terms-of-trade changes. Countries starting with higher trade barriers would tend to gain more. 

 The AfCFTA would also have a strong impact on intraregional trade—which we estimate would expand by more than 80 percent—but relatively limited adverse effects on trade with nonmember countries (“trade diversion”). Increased intraregional trade would add about US$60 billion to African exports and support ongoing diversification efforts. (IMF)

Key Words: COVID—19, AfCFTA, IMF

ECA proposes COVID-19 exit strategies to bring African economies back on track – The Economic Commission for Africa (ECA) has released a new report proposing to African nations various coronavirus disease (COVID-19) exit strategies following the imposition of lockdowns that helped suppress the virus but with devastating economic consequences. At least 42 African countries applied partial or full lockdowns in their quest to curtail the pandemic. The ECA estimates that a one-month full lockdown across Africa would cost the continent about 2.5 per cent of its annual GDP, equivalent to about $65.7 billion per month. This is separate from and in addition to the wider external impact of COVID-19 on Africa of lower commodity prices and investment flows.

In the new report titled; COVID-19: Lockdown exit strategies for Africa, the ECA proposes seven exit strategies that provide sustainable, albeit reduced, economic activity. The report sets out some of the exit strategies being proposed and tried around the world and outlines the risks involved for African countries. With the lockdowns came serious challenges for Africa’s economies, including a drop in demand for products and services; lack of operational cash flow; reduction of opportunities to meet new customers; businesses were closed; issues with changing business strategies and offering alternative products and services; a decline in worker production and productivity from working at home; logistics and shipping of products; and difficulties in obtaining supplies of raw materials essential for production.

Among the most sensitive issues facing policymakers is the impact of COVID-19 lockdowns on food security. The seven lockdown exit strategies being proposed by the think tank are identified from proposals and trials around the world. They are assessed with respect to the extent to which each strategy minimizes uncertainty over fatalities. In most cases, countries are applying a combination of several strategies such as testing, contact tracing and gradual segmented reopening. They are improving testing; lockdown until preventive or curative medicines are developed; contact tracing and mass testing; immunity permits; gradual segmented reopening; adaptive triggering; and mitigation. (UNECA)

Key Words: COVID—19, Exit Strategies, ECA

New free-trade pact could help Africa recover from virus – The first commerce under an Africa-wide free-trade pact will provide new stimulus to countries on the continent to overcome the economic damage of the coronavirus, even if it could be delayed for about six months, says the most senior official of this agreement. The secretariat of the African Continental Free Trade Area is exploring the feasibility of moving talks involving more than 50 countries and real-time translation into four languages online. However, full border closures by about 30 nations aimed at limiting the spread of the virus is likely to restrict trade flows over the coming months, Wamkele Mene, the secretary-general, said in an interview.

While the agreement entered into force legally in 2019, protocols for trade in goods, including tariff concessions, need to be agreed for its implementation and commerce to start on July 1. Disruptions caused by the pandemic have set negotiations back by two and a half months. “The consideration for postponement doesn’t mean that there no longer is political will and that there is no longer political commitment,” Mene said by phone from Addis Ababa on Wednesday. “We have to adjust to conditions that unfortunately nobody could have anticipated and we have to give the space to governments to solve the public health crisis as a matter of priority.” (Business Day)

Key Words: COVID—19, AfCFTA, Regional Integration

Intra-African trade, the African Continental Free Trade Area (AfCFTA) and the COVID-19 pandemic - While access to extra-regional imports of food products can help to deal with localized supply shortages, high dependence can increase the exposure of producers and consumers to shocks of a global nature, such as the food price spikes of 2007-08 and the current COVID-19 pandemic. In fact, COVID-19 could exert a significant supply shock in the region. With agricultural production being highly labour-intensive in most African countries, shortages of workers due to the lockdowns may compromise farming activities, as well as downstream trading and transportation activities. These immediate impacts on domestic food production and distribution may be compounded in the medium run, if countries are unable to manage pest and disease outbreaks due to restrictions on movement. At the same time, dependence on extra-regional imports for food makes African countries vulnerable to disruptions in international logistics and distribution, in addition to production problems in other countries. This could result in food shortages and raise food prices, particularly in countries highly dependent on food imports as is the case of many lowincome and landlocked countries and Small Island Developing States (SIDS)

Promoting intra-regional trade in agri-food products is crucial, both as a short- and long-term policy objective in Africa. Reducing vulnerabilities to COVID-19-related market disruptions and mitigating its impacts on the poor would require immediate efforts by African countries to ensure that agri-food supply chains and trade channels remain open. In the medium to long run, given the rapidly growing populations, incomes and levels of urbanization in African countries, substantial growth in food demand is expected, providing significant market potential for African producers. The entry into force of the AfCFTA in 2019 will likely expedite regional integration efforts and promote intra-regional trade in agri-food products, which is projected to expand by 20-30 percent by year 2040.  The role of intra-regional trade as a catalyst for agricultural development has been recognized in both the 2003 Comprehensive Africa Agricultural Development Programme (CAADP) and the 2014 Malabo Declaration. The AfCFTA provides a concrete and timely mechanism to realize such continental agricultural policy commitments.  (FAO)

Key Words: COVID—19, AfCFTA, Regional Integration

Business leaders: COVID-19 shouldn't derail AfCFTA- The COVID-19 pandemic is not a reason to delay the start of trade under the African Continental Free Trade Area (AfCFTA), on July 1, 2020 as earlier envisaged, according to African trade experts and business leaders. Business leaders on the continent have signed an Open Letter stressing that the AfCTFA can and must remain on course.There are innovative ways to keep AfCFTA on track, they stressed, "and we should be willing to explore them." Their view is emphasised in a new report, the AfCFTA Year Zero Report, published by The AfroChampions Initiative.

 Speaking from Accra, Ghana, Edem Adzogenu, Co-Chair of the AfroChampions Initiative Executive Committee, on Wednesday, May 6, told The New Times that postponing the start of trading would be a mistake. Launched in January, 2017, the Afrochampions is a special implementation vehicle for major, innovative, public-private partnerships to harness big opportunities in Africa for transforming the continent’s best companies and institutions into globally significant players. Adzogenu said: "It certainly will be a mistake to postpone because this may well be our new reality. My view is that the political decision has already been made for Start of Trade to commence on July 1. If COVID-19 hadn’t struck , we would be on course. So, COVID-19 reality needs to be evaluated within the context of the technical, health and economic realities that the pandemic presents.

"The reality is that we need essential products to be produced and health personnel moving across borders. It will be a mistake for African countries to keep treating each other as foreign markets in times like this." Before the African business community made its position known, last month, President Cyril Ramaphosa of South Africa, who is AU Chairperson, recommended that the date - July 1, 2020 - originally chosen for starting trading under the Agreement be postponed to January 1, 2021. Ramaphosa indicated that this was due to the impact of the pandemic on the work and operations of the Union. (The New Times)

Key Words: COVID—19, AfCFTA, Business

Making Finance Work for Africa hosts webinar series on impact of COVID-19 crisis on African economies and the financial sector – The Making Finance Work for Africa (MFW4A) partnership, a unique platform for African financial sector development research, advocacy, knowledge management and networking, has launched a special webinar series on the impact of the COVID-19 crisis on African economies and the financial sector. The series offers a platform to discuss concerted actions to mitigate the impact of the pandemic on African economies and the financial sector. The first webinar, held on 14 April, had policymakers and CEOs of financial institutions and other stakeholders, discuss the consequences of the COVID-19 pandemic on the African financial sector. The 90-minute session focused on major issues affecting financial institutions, such as lack of credit, rising non-performing loans, deteriorating service quality, and worsening business conditions.

Representatives from Cofina Group, UBA and Standard Bank, amongst others, warned that current regulatory responses only addressed immediate needs. They advocated for long-term solutions to scale up domestic capital markets and accelerate the digital transformation of African financial services. The panelists also offered immediate additional policy responses to strengthen the resilience of African financial systems. During the 28 April session, development finance institutions discussed their programmes to mitigate the impact of the pandemic on the African financial sector. These included mechanisms and facilities to help commercial banks and other financial institutions manage the adverse effects of the crisis. (AfDB)

Key Words: COVID—19, Africa, Financial Sector

NORTH AFRICA

Morocco’s Port Activity Increases by 6.3% in First Four Months of 2020 – Moroccan seaports have recorded an imports and exports volume of 31.1 million tons between the start of 2020 and the end of April, the National Port Agency (ANP) announced. The number represents a 6.3% increase compared to the same period in 2019, when the volume reached 29.2 million tons. Moroccan imports amounted to 20 million tons, marking a yearly increase of 5.2%, while exports amounted to 11.1 million tons, increasing by 7.4% in one year.

The four first months of 2020 were marked by an unprecedented import volume of grains. According to ANP, Morocco imported 3.4 million tons of grains and cereals, approximately 36% more than during the same period in 2019. Coal imports have also recorded a yearly increase of 5%. Meanwhile, the volume of exported fertilizers grew by 63% and raw phosphate exports increased by 6%. The Jorf Lasfar port, near Casablanca, recorded the highest traffic volume in Morocco with 12.7 million tons by the end of April (a 13.1% yearly increase), followed by the Casablanca Port with 10.3 million tons (+4.9%), and the Agadir Port with 2.2 million tons (+8.6%). The southern ports of Dakhla and Tan-Tan also recorded an increase in traffic volume, with +8.1% and +51.5% respectively. In April alone, port activity in Morocco increased by 3.2% compared to the same month in 2019, reaching 7.7 million tons. Cereal imports reached 1.2 million tons in April, increasing by 70%, followed by sulfur imports (579,084 tons, +37%) and ammonia (165,244 tons, +45%). Meanwhile, exports of fertilizers increased by 72% in April to reach 1.1 million tons. Phosphate exports amounted to 857,999 tons (+6%) and clinker exports reached 135,948 tons (+45%).  (Morocco World News)

 Key Words: COVID—19, Morocco, Business

EAST AFRICA

African Development Bank welcomes $10 million Clean Technology Fund investment to diversify Ethiopia’s energy mix -  The African Development Bank has welcomed a decision by the Trust Fund Committee of the Clean Technology Fund (CTF(link is external)), one of two funds within the Climate Investment Funds (CIF), to extend a $10 million  concessional senior loan for development of the 50 MW Tulu Moyo Geothermal Power Plant project in Ethiopia. The CTF approved the loan on 20 April 2020. The project is seen as a critical step to the East African country’s drive to harness sustainable and resilient energy resources to support its economy and livelihoods. With this investment, CTF becomes the first geothermal Independent Power Producer (IPP) in Ethiopia.

“We welcome the participation of CTF in this project. These concessional resources will be instrumental in helping the country to diversify its energy mix by facilitating the deployment of renewable energy technologies while supporting Ethiopia in meeting the targets under its National Electrification Plan 2.0,” said Anthony Nyong, Director of Climate Change and Green Growth at the Bank. The project entails the design, construction, commissioning and operation of a 50 MW geothermal power plant under a Build, Own, Operate and Transfer (BOOT) scheme, and marks the first phase of the Ethiopian government’s plan to build a cumulative generation capacity of 150 MW by 2024. The project will include a sub-station and an 11 km transmission line. Antony Karembu, Principal Investment Officer and Renewable Energy Specialist at the African Development Bank noted that as the first geothermal Independent Power Producer in Ethiopia, CTF will leverage climate finance options in mobilizing private sector operators for the project. (AfDB)

Key Words: AfDB, Investment Fund, Ethiopia

Relief for food exporters as more airlines resume flights – Foreign-based airlines have resumed flying to Jomo Kenyatta International Airport (JKIA) as European countries start easing Covid-19 lockdowns, pushing up demand for fresh produce and the capacity of freighters.

The latest entrants are British Airways and Singapore Air, which had stopped plying the Nairobi route following restrictions on international travel and low demand for horticultural produce in Europe after cancellation of orders. Other airlines have also increased their frequencies, with Ethiopian Airlines flying daily from JKIA, KLM three times a week and Kenya Airways (KQ) also making a couple of trips to Europe and China.

"We are happy that the capacity for freight is now building up at JKIA and this will go a long way in ensuring we do not suffer space constraint as well as address the high cargo rates being levied at the moment," said Fresh Produce Consortium chief executive Ojepat Okisegere. Emirates SkyCargo introduced two weekly flights last month, utilising the belly-hold capacity on its wide-body Boeing 777-300 ER passenger aircraft to supplement the cargo capacity offered by its freight aircraft from Nairobi and Eldoret. (Business Daily)

Key Words: COVID-19, Kenya, Export

WEST AFRICA

IATA calls on Nigerian Government to Support Aviation in the Face of COVID-19 Crisis – The International Air Transport Association (IATA) called for aviation-specific financial relief measures from the government of Nigeria to address the severe impact of the COVID-19 crisis on the air transport sector. Air transport has ground to a halt in efforts to stop the spread of COVID-19. Along with the direct impact on jobs and companies in aviation, related industries including tourism, hospitality and trade have been hit hard.  All play an essential role in creating jobs and powering economies.

Prior to the crisis, aviation contributed $1.7 billion to Nigeria’s GDP and supported 241,000 jobs. IATA estimates that the COVID-19 crisis puts 124,000 Nigerian jobs at risk and some $900 million of the country’s GDP.The Nigerian government has introduced broad economic relief packages to mitigate the devastation caused by COVID-19 but IATA now urges the government to implement specific financial relief measures for aviation to ensure that, the sector will be capable of driving the recovery.

“Nigeria has announced general relief measures for sectors affected by COVID-19, but not specifically for aviation. Given the importance of air transport for Nigeria’s economy and connectivity, the government must not let aviation fail. The industry faces a liquidity crisis. Without a viable aviation sector Nigeria’s eventual recovery from COVID-19 will be longer and even more painful. Aviation-specific financial relief measures are urgently needed as a matter of survival,” said Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East.

The Government should consider implementing some or all of the following relief measures:

• Direct financial support to passenger and cargo carriers
• Loans, loan guarantees and support for the corporate bond market by the Government or Central Bank
• Tax relief - rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020
• Financial relief on airport and air traffic control (ATC) charges and taxes
• Reduction, waiver or deferral of government-imposed taxes and fees
• Foreign exchange availability

“As the aviation industry looks to restart, it is important that key regional players like Nigeria are ready and able. Aviation is a strategic pillar for social and economic development. Supporting aviation now will mean that Nigeria’s economy can pick up from where it stopped and drive forward,” said Albakri. (IATA)

Key Words: COVID-19, IATA, Nigeria

GEPA steps in to fast-track economic recovery for farmers – The Ghana Export Promotion Authority (GEPA) has taken steps to help farmers boost coconut production for exports in the next five years, as the economy seeks to recover from ravages of the coronavirus pandemic. With regard to this, the authority has handed 160,000 coconut seedlings to the Coconut Famers Association of Ghana (COFAG) – a move the association says can help the economy rake in revenue of about US$2billion by 2023. Again, through this intervention GEPA wants to increase acreage of the crop by 10,000-plus acres nationwide. Speaking at a brief occasion in Accra to hand the seedlings over to the association, CEO of the GEPA, Dr. Afua Asabea Asare, said her outfit is committed to doing whatever it possibly can to contribute in revival of the economy following the damage caused by COVID-19. “We expect that opportunities will open up for Ghana to export more horticultural products to other African countries. Thus, our various agricultural value chains need to be innovative and competitive to take advantage of market opportunities that will be available post COVID-19.

“From our end, Ghana Export Promotion Auhtority remains committed in its support to the coconut sector as we continue to strategically intervene by providing 160,000 quality disease-resistant seedlings to farmer groups,” she said. Also speaking at the event, President of the Coconut Farmers Association of Ghana, Patrick Ndabiah, thanked GEPA for its donation of the seedlings; saying it will play a major role in accelerating the vision of making the country one of the major gainers in the global coconut industry. (Ghana Web)

Key Words: COVID-19, Ghana, Business

SOUTHERN AFRICA

Desperate traders risk virus spread to smuggle bales into Zimbabwe– Zimbabwe is clamping down on second-hand clothes imports as cross-border Covid-19 coronavirus infections and smuggling surge. Cross-border traders, who make their living from buying and selling goods sourced from neighbouring countries, are defying lockdown regulations to illegally cross into countries such as South Africa and Mozambique, according to authorities. Monica Mutsvangwa, the Minister of Information, said smuggling activities especially along the vast Mozambique border pose a serious threat as imported coronavirus cases are on the increase. “An increase in the smuggling of second-hand clothes into the country through border posts with Mozambique such as Mt Selinda and Sango poses unprecedented danger of spreading Covid-19 by to thos “The government will upscale the enforcement of the law banning the importation of second hand-clothes,” she added.

Zimbabwe first banned the importation of second-clothes in 2015 to protect the country’s textile industry, but relaxed the restrictions two years later as it is a major source of income for informal traders hit hard by the collapse of the economy. Traders source bales of the clothes from Tanzania, Mozambique, South Africa and Zambia to resell to locals whose shrinking sources of income make it difficult for them to buy brand new clothes. (The East African)

Key Words: COVID-19, Zimbabwe, Trade