INTERNATIONAL

Joint WCO-IRU statement on responding to the impacts of COVID-19 on cross-border transport –   The text of the joint statement is as follows - The coronavirus disease (COVID-19) pandemic, while above all a public health crisis, presents the world with unprecedented economic challenges. Trade has dramatically declined, supply chains are disrupted and the restrictions to cross-border and transit freight transport that have been put in place could aggravate the pandemic’s economic impact.

As each economy depends on the efficiency of transport, including road transport, especially in this critical time, and bearing in mind the gradual lifting of confinement measures, the World Customs Organization (WCO) and the International Road Transport Union (IRU) jointly call on Customs administrations worldwide to:

• Ensure coordinated cross-border interventions in cooperation with other national border agencies and implement international standards such as the TIR Convention, as appropriate;
• Use the TIR system, and its IT tools, wherever possible, which allow secure transport under Customs control with limited physical checks and less contact between people at borders, thus reducing the risk of spreading the virus and protecting Customs officers and drivers;
• Designate priority (green) lanes for commercial vehicles to reduce border waiting times and introduce other measures to ensure supply chain continuity;
• Avoid closing borders to the international transport of goods, particularly for relief goods and personnel and essential goods; and,
• Avoid unnecessary checking of commercial vehicles at borders.

The WCO and IRU express their readiness to support their respective Members in the implementation of relevant instruments, tools and programmes and will work together to coordinate their respective efforts. (WCO)

Key Words: COVID-19, IRU, WCO

Science and innovation funds key to COVID-19 responses and beyond – Four crucial policies should be implemented to ensure established and fledgling science, technology and innovation (STI) initiatives are not jeopardized in the wake of the coronavirus pandemic. Lessons from the 2008 financial crisis underscore that research and development (R&D) funding tends to drop when disaster strikes – or at precisely the time when funding is needed, UNCTAD says in a new policy brief.

The brief shows that in the aftermath of the financial crisis some countries tightened funding for STI with severe negative consequences and that the same could be true with the coronavirus pandemic. It cautions against this error, advocating for more near- and long-term investment in STI to support immediate crisis management efforts, and then to maintain that funding to build holistic STI ecosystems with the ability to respond to similar crises in the future. It also encourages more sustained international cooperation in STI and other multidisciplinary fields. “During and after the COVID-19 crisis, countries – particularly in the developing world where innovation systems remain fragile – should protect science, technology and innovation resources from austerity drives,” says Ms. Shamika N. Sirimanne, UNCTAD’s director of technology and logistics.

“We are especially concerned about developing countries, where the investment in R&D is precarious and there is pressure to funnel funds elsewhere,” she adds. “Stability and predictability of STI funding are critical for the ability of national innovation systems to support sustainable development and the 2030 Agenda for Sustainable Development.” (UNCTAD)

Key Words: UNCTAD, Innovation, COVID-19

How poor countries can deal with the economic shock of COVID-19 – According to the World Trade Organization, 87.5% of goods exported from LDCs are sold in 10 major markets, all of which are either severely or moderately affected by the COVID-19 outbreak. Due to a fall in demand in these markets, LDCs are certain to lose a significant portion of their export revenues. This decline will make it impossible for LDCs to achieve Target 11 of the Sustainable Development Goal (SDG) 17 to double their share of exports. A shortage of raw materials from China, due to supply chain disruptions will affect many LDCs. For example, shutdowns at Cambodia’s garment factories, which procure 60% of their raw materials from China, could affect 160,000 workers in a worst case scenario.

LDCs are equally affected by declining orders or the cancellation of ready-to-ship orders by Western clothing brands, some of which have already closed outlets. As a result of these closures, Bangladesh alone has seen garment orders worth $1.5 billion being cancelled, affecting more than 1,000 garment factories. Another important aspect on the trade front highlighted by Global Trade Alert is that, as of 21 March 2020, 54 governments have put in place 46 export bans on medical supplies, including personal protective equipment, which is critical for medical workers to treat patients suffering from COVID-19. LDCs will need imported medical supplies to address the increasing number of COVID-19 patients, as many LDCs do not produce them domestically.

Exports of services from LDCs are another casualty, with the travel and tourism sector being the worst impacted. According to an initial forecast by the United Nations World Tourism Organization (UN WTO), up to $50 billion in income could be lost as a result of the crisis. Since many LDCs depend on this sector, which contributes to 7% of their export income, a prolonged downturn will have a significant impact on export revenues, foreign exchange reserves, GDP and, of course, jobs, especially for women. To address these problems, countries should refrain from imposing trade restrictions when other policy options are available. And, it is important to keep trade open, not only for medical supplies but also other goods such as food, raw materials and energy supplies. Trade, transport and transit facilities should continue to operate without restrictions, in line with a recent joint ministerial statement issued by seven World Trade Organization members, including one LDC. More LDCs should come forward to join such an initiative. To minimize face-to-face contact between traders with border, transport and transit authorities, paperless trade should be promoted as a quick win measure.  (Trade4devnews)

Key Words: Global Trade, LDCs, COVID-19

PAN AFRICA

COMESA Agency Strikes-off 12 Anti-Competition Trade Agreements – More than twelve trade agreements which have been operational in the Common Market for several years have been banned for being anti-competition. The action was taken by the COMESA Competition Commission (CCC) after assessing the agreements in place up to 2019. The banned Agreements were found to have the potential to bar potential competition in the Common Market (COMESA) by safeguarding dominance by monopoly undertakings. According to the Commission, anti-competitive agreements have the highest potential for partitioning the Common Market hence the renewed vigilance on such agreements.

Among them was that between Confederation Africaine de Football (CAF) and Lagardere Sports S.A.S (LS). In the agreement, CAF had granted the exclusive right to commercialize its broadcasting and marketing rights to LS in the Common Market for an extended period of over twenty years. Other sectors in which the Commission reviewed were distribution agreements affecting alcoholic and non-alcoholic beverages and the fast-moving consumer goods. In another case regarding consumer protection, the Commission intervened and had the Ethiopian Airlines compensate passengers who had been inconvenienced as a result of overbooking.

Meanwhile, the Commission has cautioned consumers in the region to be alert lest they fall victim to fraud during this time when most business are operating online due to the Coronavirus pandemic. In a statement issued in Lilongwe, Malawi, the Commission noted that most consumers have resorted to online purchases to avoid close physical contact in the conventional markets and also in compliance with directives from their respective governments. “We are aware that consumers may be subject to online fraud and similar such vices during this time,” said the Commission in a statement issued by the Chief Executive Officer Mr. George Lipimile. (COMESA)

Key Words: COMESA, Trade Agreements, Regional Integration

How COVID-19 will change China and Africa's economic relationship – One reason for China’s strictness may be earlier research suggesting that different types of Paris Club relief lead to different economic outcomes. Debt stock relief is found to enhance economic growth and a change to repayment terms to induce greater fiscal prudence and better prospects of long-run debt sustainability. This trade-off may lie at the heart of identifying a balance between the two approaches. Another reason could be that China as creditor is not a single lending agency but in fact something of a labyrinth of lending entities. China may even need something of its own “Dongcheng Club” to instigate greater transparency among and between its own international creditors, with Dongcheng being the Beijing district hosting a cluster of the relevant government agencies.

In other words, China joining the G20’s debt repayment freeze is both consistent with its past practice – in offering a repayment freeze where justifiable; but unique – China seldom participates in multilaterally-agreed sovereign debt discussions. The latter has led to hopes that the extreme circumstances induced by COVID-19 may encourage China to go beyond a freeze on repayments and, Paris Club-style, to more magnanimously offer something closer to a debt write-off. Its past behaviour would suggest that is unlikely.

As China nears its milestone of eradicating absolute poverty by 2021, it is especially timely for China and African countries to proactively work together on ‘innovative and pragmatic’ cooperation. This may include what would be a rare offer by China of significant debt stock write-off. It could also include, at the least, re-equating the terms of China’s existing loan stock with those of equivalent loans from the World Bank or IMF. Prospects for such calls would undoubtedly be aided by elevated prospects for sustainable debt and development in debtor countries – something the Belt and Road Initiative could both serve, and also be served by. (weforum)

Key Words: COVID-19, Africa, China

Afreximbank Cancels 2020 Annual Meetings Due To #COVID-19 – Due to the #COVID-19 Pandemic, the African Export-Import Bank (Afreximbank) has canceled the series of events which were set around its 27th Annual General Meeting and to hold the Shareholders’ meeting by correspondence. Afreximbank President Prof. Benedict Oramah said that the decision to hold the Shareholders’ meeting by correspondence was made after careful consideration of all available options to ensure the Bank complies with its governance requirements. He announced that the seminars component of the 27th Annual Meetings, which were expected to be held from 10 to 13 June 2020 in Sharm El Sheikh, Egypt, were canceled in light of global mobility restrictions and the need to ensure social distancing imposed by the COVID-19 pandemic situation.

“Our priority is to guarantee the wellbeing and comfort of our shareholders and partners which requires that we comply with health and safety protocols put in place by our host country,” he said. Prof. Oramah explained that these decisions, while difficult, were necessary and in line with the Bank’s proactive efforts to combat the pandemic. “As a leading Pan African institution, Afreximbank’s response strategy has been to lead by example in taking proactive and timely measures,” he said. “We remain fully dedicated to supporting efforts to mitigate the adverse impact of the COVID-19 pandemic on African economies and its people. We will continue to be at the frontline with bold initiatives, forging global partnerships towards mitigating the health and economic consequences of the COVID-19 pandemic on Africa,” Afreximbank’s President added.

Afreximbank Annual Meetings are among the Bank’s most prominent events. They are sought-after keenly by banking industry professionals, trade and trade finance practitioners and other parties involved in economic development from across Africa and beyond. (Taarifa)

Key Words: COVID—19, Afreximbank, Regional Integration

NORTH AFRICA

IMF Executive Board Approves US$2.772 Billion in Emergency Support to Egypt to Address the COVID-19 Pandemic – The Executive Board of the International Monetary Fund (IMF) approved Egypt’s request for emergency financial assistance of SDR 2,037.1 million (US$ 2.772 billion, 100 percent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payments needs stemming from the outbreak of the COVID-19 pandemic. Purchase under the RFI entails exceptional access due to outstanding credit under the previous extended arrangement under the Extended Fund Facility.

Egypt achieved a remarkable turnaround prior to the COVID-19 shock, carrying out a successful economic reform program supported by the IMF’s Extended Fund Facility (EFF) to correct large external and domestic imbalances. The pandemic and global shock pose an immediate and severe economic disruption that could negatively impact Egypt’s hard-won macroeconomic stability if not addressed. The authorities have launched a comprehensive package to contain the economic impact of the COVID-19 shock. The RFI will help alleviate some of the most pressing financing needs, including for spending on health, social protection, and supporting the most impacted sectors and vulnerable groups. The IMF remains closely engaged with the Egyptian government and the Central Bank of Egypt and stands ready to provide policy advice and further support, as needed. (IMF)

Key Words: IMF, COVID-19, Egypt

EAST AFRICA

The impact of COVID-19 on East African Economies - The Coronavirus (COVID-19) pandemic is currently causing significant adverse impact on the global economy with governments around the world implementing various fiscal measures to mitigate its effects and provide relief for businesses and households. Within Africa, the impacts of COVID-19 are being felt in different ways and the measures taken by the respective governments have also differed on the areas of focus and comprehensiveness. Africa’s projected GDP growth of 3.2% for 2020 is now expected to fall to -0.8%. This is due to the enforced partial or total lockdown of economies brought on by the pandemic. The outbreak has led to disruption in the various sectors, most notably the financial industry and the tourism and hospitality sectors.

Our report analyses some of the impacts for the East African region with a view on the effects on the general economy, as well as sectoral views touching on industries such as aviation, tourism agriculture, and manufacturing. In Kenya, projected GDP growth in 2020 now stands at 1% from 5.7% due to the gravity of the pandemic; with the economy seeing a decline in tourism activity, export revenues, and a disruption in the supply chain. In Ethiopia, the country is expected to grapple with high unemployment, and GDP growth has been revised to 3.2% from 6.2% in 2020. Similarly, the outlooks in Tanzania and Uganda show a similar trend with GDP growth being revised to 2% and 3.5% respectively (decline in 3.3% and 1.8% percentage points). Tanzania is showing waning demand for mineral exports considering global supply chain interruptions. The economy in Uganda is also faced with the disruption of supply chains and weakened global demand for goods.

In addition to economic outlooks, the publication looks at how governments in each country across the region have responded to the pandemic through social and health-related measures and the fiscal and monetary interventions introduced to safeguard the economy. (Deloitte)

Key Words: COVID—19, East Africa, Regional Trade

Tanzania: COVID-19 Measures Should Be Cost Efficient - The East African Business Council (EABC), has asked partner states to ensure measures to combat Covid-19, do not cause unnecessary cost and time burden to the free movement of goods and services in the EAC region. "We should not discriminate or put fear or stigma to essential service providers but treat them with respect and understanding. Mask among other Personal Protective Equipment (PPEs), to be given to truck drivers," noted the officials is a statement signed by eight top officials from the member countries. Addressing the issues regarding free movement of cargo across the borders, the apex body of private sector associations and corporates appealed that there should not be put fear or stigma to essential service providers. The meeting was held online.

EABC Chief Executive Officer (CEO), Dr Peter Mathuki said the body was trying to procure thermo-guns and masks for truck drivers to support the free movement of cargo within the region. He said that EABC on behalf of the private sector organizations will facilitate dialogue on regional issues, particularly at the border points. The National transport associations coordinated by the Federation of East African Freight Forwarders Association (FEAFA), should work closely with EABC to enhance information sharing in a bid to facilitate the free movement of cargo across EAC borders. EAC partner states, development partners and the private sector have been asked to continue undertaking sensitization campaigns to the public, truck drivers, women cross border traders on Covid-19 to avoid misinformation and stigmatisation. (Daily News)

Key Words: COVID—19, East Africa, Regional Trade

Review of IP laws to spur innovation – Kenya is set to review her intellectual property laws, through the Intellectual Property Bill 2020. The country has been highly ranked as the second most innovative country in Africa. It is home to many global innovations. Intellectual Property may include innovations and also go further to include trademarks and copyrights. The main classes of intellectual property include trademarks which are distinctive marks used to identify goods and services and attribute the same to a particular enterprise. Therefore trademarks include brand names. Copyrights on the other hand are the class of intellectual property that protect artistic creations of the mind. The entertainment industry for example contains a lot of copyright that falls into various sub classes such as audio, visual, audio-visual, literary and even computer graphics. The last main class of intellectual property includes the patents, technovations and utility models which are all contained in the Industrial Property Act. The less common types of intellectual property include industrial designs and geographical indications.

Currently, intellectual property law in Kenya is governed through many piecemeal laws like the Industrial Property Act which regulates patents, utility models and technovations; Trademarks which regulate trademarks and Copyrights which regulate the same and related rights. There are also several institutions whose mandate it is to oversee the administration of the various classes of rights.  (Business Daily)

Key Words: COVID—19, East Africa, Regional Trade

Uganda Skills and Jobs Analysis – For this report, the World Bank employ the Manpower Survey Uganda (MAPU) 2016/2017 and the formal employer-employee linked dataset to understand several key dimensions of the Ugandan labor market. First, jobs and the quality of the jobs is one key consideration. Here, authors develop a multidimensional measure of job quality, in addition to a standard earnings analysis, which looks at employee earning adjusted for hours worked. Second, authors look at mismatches in the labor market in terms of skills and education and look at answers to questions from the employee and employer section of the MAPU to understand the extent of mismatches in the Ugandan labor market. Third, we identify some potential solutions for these mismatches after discussing job seeking behavior. Authors also analyze training and skills in more depth, in addition to the regulatory environment, and the various dimensions of job quality and formality. Data analysis focuses on the formal employee and employer dataset: 83 percent of formal employees are in the services sector in Uganda, 14 percent in the industry sector, and only 1 percent in agriculture. The findings of this report mainly relate to the services and industry sector. The employees are also predominantly younger: 50 percent of the sample is below 30 years of age, and 60 percent of employees have been in their current job for less than six years. (World Bank)

Key Words: Uganda, World Bank, Job Market

WEST AFRICA

Expedite action on National AfCFTA implementation strategy - CUTS Ghana – How the implementation strategy is designed contributes greatly to ensure that a country obtains a maximum benefit from the Agreement. The strategy should identify the export products to other African countries and suggest definite steps to actualize such exports. It should also underline vulnerable and sensitive products that need special consideration and measures to bolster these sectors. Emphasis should be placed on SMEs that make up about 85% of enterprises in the country. Cross cutting issues pertaining to gender equality, environment and climate change should catch particular attention. Other vulnerable groups such as the youth and smallholder farmers must also be given a special attention.

The speed at which the strategy is efficiently developed will not only give the country a competitive edge over other State Parties, but will also help identify challenges and fill the necessary gaps before kick -off. It is important to note that strategies developed, be it in trade facilitation, productive capacity building, among others take time to become operational. For example, firms need some time to build new internal capabilities or improve upon the existing ones, diversify or add value to their products. Moreover, the gains expected to emerge from the AfCFTA is likely to happen over a long term, hence a swift action taken to develop a national strategy will fast-forward the country’s ability to benefit greatly from the Agreement.

Notably, the AfCFTA agreement will bring in its wake some adjustment cost since resources will have to be re-allocated over time from sectors that are negatively affected by the free trade by shifting resources from import- competing industries to export oriented sectors. In this sense, putting a quick but efficient strategy in place provides the country the opportunity to offer adjustment assistance to vulnerable groups and sensitive sectors that may be adversely affected. (Ghana Web)

Key Words: AfCFTA, Ghana, Regional Integration

COMESA States want a socioeconomic study on the impact on COVID-19 – COMESA Member States have asked the Secretariat to conduct a socioeconomic study on the effects of the Coronavirus to inform ongoing COVID-19 containment measures and recovery strategies. The request was made by Permanent/Principal Secretaries (PSs) from ministries that coordinate COMESA regional integration programmes during the COMESA Intergovernmental Committee meeting conducted today by video conference. The meeting was called to consider a raft of regional guidelines that will enable a coordinated approach in responding to COVID-19.  Currently, Intra and Extra-COMESA trade has been negatively affected by the measures that countries in the region have put in place, which differ in extent and severity. The delegates acknowledged that some of the measures are not coordinated at a regional level thus seriously limiting regional trade which involves essential commodities that are in critically demand. Hence, the need for a coordinated approach that will ensure that measures individual countries put in place are harmonized across the region to facilitate the flow of essential goods and services.

Given the multiple membership of countries to regional economic blocs: COMESA, the East African Community and the Southern African Development Community, the delegates endorsed the development of guidelines that will provide a coordinated approach across the region. A draft set of guidelines, which was developed by trade and customs experts from member states was discussed by the PSs for their endorsement before they are presented to the Council of Ministers on Thursday this week for adoption and subsequent implementation.

Addressing the delegates, the Secretary General of COMESA Chileshe Kapwepwe said a cooperative effort on the part of all countries is needed as the world has become interconnected through technology, production and travel. “In addition to coordinated efforts, a uniform application of measures is paramount at a regional level to ensure continued trade and supply of goods and services while attending to the imperatives of public health,” the Secretary General said. (tralac)

Key Words: COVID—19, COMESA, Economic Impact

Liberia: COVID-19 Reduces Liberia's Export – The Managing Director of the National Port Authority (NPA) reveals here that the novel coronavirus has affected almost everything at the Port, including huge reduction in exports. Mr. Bill Tweahway laments that Liberia, like any other country around the world, is suffering from damages caused by the pandemic, adding that being cognizant of the danger, Management has put in place necessary measures to protect its staff and workers.

"As per my understanding and from all indications, the danger posed on Liberia by COVID 19 is immense and our exports have been reduced, including imports as well", he disclosed in a simulcast with three radio stations Tuesday, 11 May in Monrovia. He cautions that if anybody in Liberia thinks that COVID-19 is a makeup, such person doesn't value lives, because developing countries are on their knees, battling the virus saying, that is why the Management of the NPA has done everything to avoid the spread of the virus, including telling people to remain safe.

When asked whether various ports in the counties were functional, he details that all of the four ports in the country are functional, noting that both Greenville (Sinoe County) and Buchanan (Grand Bassa County) ports are currently exporting logs and iron ore, while the Freeport of Monrovia is well active. (The New Dawn)

Key Words: COVID-19, Liberia, Trade

SOUTHERN AFRICA

SADC energy sector braces for COVID-19 impact – The southern Africa energy sector has not been spared by the ongoing coronavirus pandemic, with both positive and negative impacts on efforts by the region to address power shortages. On the positive side, most countries in the Southern African Development Community (SADC) have experienced reductions in demand for electricity during peak hours. According to the Southern African Power Pool (SAPP), the majority of its member countries have not had to impose demand side management measures such as load shedding during the past few weeks as there has generally been a decline in system load. “There has been a general decrease in demand recorded by SAPP members due to lockdown measures that were taken by most SADC countries,” SAPP said during a teleconference meeting of the SADC Energy Thematic Group (ETG) held on 5 May.

SAPP is a regional body that coordinates the planning, generation, transmission and marketing of electricity on behalf of member state utilities in SADC. It is made up of power utilities from Angola, Botswana, Democratic Republic of Congo, Eswatini, Lesotho, Malawi, Mozambique, Namibia, South Africa, United Republic of Tanzania, Zambia and Zimbabwe. The majority of these countries have been on lockdowns since the end of March, a development that has seen them shutting down businesses, closing borders and asking people to stay home as part of measures to contain the spread of the coronavirus, which had affected more than 8,800 people in the region as of 8 May, according to the Africa Centres for Disease Control and Prevention.

According to SAPP, South Africa, which is the largest producer and consumer of electricity in the region, has experienced a 40 percent decline in peak system load since it embarked on a coronavirus nationwide lockdown on 27 March. South Africa accounts for more than 70 percent of the installed electricity generation capacity for the 12 SAPP member countries, according to the 2018 SADC Energy Monitor. Being the largest economy in southern Africa, South Africa also consumes the bulk of the power generated in the region. (SADC)

Key Words: COVID-19, SADC, Energy Sector

SADC Regional Response to COVID-19 Pandemic- Bulletin No. 4 – This report highlights some global public health initiatives which are being rolled out, including vaccine initiatives and testing.  The report also highlights the regional case load, depicting some of the highly impacted countries. Further highlights on the testing capacity of SADC Member States is provided. In the last few days, the region has seen some plans and strategies by some Member States to ease lock down measures, this report highlights the case of Botswana and South Africa on easing lock down measures as the steps that these Member states will be taking. The report further provides updates on the economic measures and impact as well as on the implementation of the SADC Guidelines on Trade and Transport Facilitation. Key recommendations are summarized as follows:

Member States are urged to step up testing, including mass testing for case identification.

Member States intending to lift lock down rules should do so in a phased manner, without compromising the efforts to reduce transmission.

Member States intending to reopen schools should consider putting in place the following as a basic minimum which should include, but not limited to, basic hygiene, water and sanitation facilities; availability of cleaners and screeners; providing additional teaching staff to decongest classrooms as well as mobile classrooms; compulsory wearing of masks; sanitization and disinfection of classrooms and common areas, enforcing extreme social distancing in classrooms and in school buses.

Member States who have not yet done so, are urged to submit copies of national trade and transport facilitation guidelines that they have issued under the Covid-19 emergency, details of their focal persons of their National Trade and Transport bodies and details of designated border focal persons for data sharing in order to facilitate evaluation or consistency, information sharing, monitoring and reporting as directed by Council.

All Member States are also requested to share copies of revised and updated guidelines. Member States are encouraged to consider coordinating their approaches and timing when revising regulations and laws that affect transport in order to avoid or mitigate disruptions to cross border supply chains and transportation.

Member States are encouraged to consider transport sector when implementing stimulus measures to ensure economic stability and COMESA, East African Community (EAC) and SADC to harmonize their approaches to regulation of transport during Covid-19 emergency. (SADC)

Key Words: COVID-19, SADC, Regional Response