INTERNATIONAL

The Great Unwinding Covid-19 and the regionalisation of global supply chains – The global economy is highly dependent on China. China’s share of global trade in some industries exceeds 50%—in the global trade of telecommunications equipment, for example, China’s share (by volume) was 59% in 2018. China’s importance in global trade and supply chains has grown ever since it was accepted into the World Trade Organisation in 2001. This led to the latest wave of globalisation as multinationals took advantage of the trading opportunities that China offered, both in terms of production and as a source of demand for their products. However, as a result of Covid-19, it is likely that this period of globalisation will not only come to a halt, it will reverse.

The US-China trade war and rising wages in China had already incentivised some multinationals to relocate their supply chains away from China to other parts of Asia; the textile sector was an early example of this trend. Covid-19 will push more companies in other sectors to relocate parts of their supply chains. The outcome of this will be an Asian supply chain network that is both less Chinafocused and more diverse. This is a prelude to what will happen in other regions as global companies look to build resilience into their supply chains. By building quasi-independent regional supply chains in the Americas and Europe, a global company will provide a hedge against future shocks to their network. For those companies that have this luxury already, they have been able to shift production of key components from one region to another as lockdowns and factory closures resulting from coronavirus have unfolded. Supply chains are difficult to set up and even more difficult to move, especially in the automotive sector. As more firms make this decision, therefore, the shift to regionalised supply chains will be an enduring outcome of this crisis.  (The Economist Intelligence Unit)

Key Words: COVID-19, Global Trade, Global Supply Chain

COVID-19 triggers marked decline in global trade, new data shows –   The coronavirus pandemic led to a 3% drop in global trade values in the first quarter of 2020. The downturn is expected to accelerate in the second quarter, according to UNCTAD forecasts, which project a quarter-on-quarter decline of 27%. The coronavirus pandemic cut global trade values by 3% in the first quarter of this year, according to the latest UNCTAD data published in a joint report by 36 international organizations. The downturn is expected to accelerate in the second quarter, with global trade projected to record a quarter-on-quarter decline of 27%, according to the report by the Committee for the Coordination of Statistical Activities (CCSA).

The report is a product of cooperation between the international statistics community and national statistical offices and systems around the world, coordinated by UNCTAD.“Everywhere governments are pressed to make post-COVID-19 recovery decisions with long-lasting consequences,” UNCTAD Secretary-General Mukhisa Kituyi said. “Those decisions should be informed by the best available information and data. I’m proud that UNCTAD has played a central role in bringing so many international organizations together to compile valuable facts and figures to support the response to the pandemic.” Commodity prices falling too

According to the report, the drop in global trade is accompanied by marked decreases in commodity prices, which have fallen precipitously since December last year. UNCTAD's free market commodity price index (FMCPI), which measures the price movements of primary commodities exported by developing economies, lost 1.2% of its value in January, 8.5% in February and a whopping 20.4% in March. Plummeting fuel prices were the main driver of the steep decline, plunging 33.2% in March, while prices of minerals, ores, metals, food and agricultural raw materials tumbled by less than 4%. The more than 20% fall in commodity prices in March was a record in the history of the FMCPI. By comparison, during the global financial crisis of 2008, the maximum month-on-month decrease was 18.6%. (UNCTAD)

Key Words: COVID-19, Global Trade, UNCTAD

How COVID-19 is changing the world: A statistical perspective - Global merchandise trade volumes and values were showing modest signs of recovery since late 2019 when the global economy was hit by the measures taken to contain the COVID-19 pandemic. UNCTAD nowcasts for global trade values point to a fall of 3.0 per cent in the first quarter of 2020 with respect to the previous quarter. Most of the impact of these measures, however, will affect global trade in the second quarter of the year, with an estimated quarteron-quarter decline of 26.9 per cent.

UNCTAD nowcasts incorporate a wide variety of data sources, capturing diverse determinants and indicators of trade. They are updated weekly to incorporate new data releases. The estimations above are based on data available as of 5 May 2020. The nowcasts for merchandise trade value for the first quarter of 2020 were revised downwards over almost all the last updates, reflecting increasingly deteriorating prospects with every release of new statistics. The drop in global trade nowcast for the first quarter is driven by marked decreases in related timely indicators. Since December

2019, commodity prices have been falling at an accelerated rate. UNCTAD's Free Market Commodity Price Index (FMCPI) lost 1.2 per cent of its value in January, 8.5 per cent in February and 20.4 per cent in March. Fuels were the main driver behind this development, recording a price fall of 33.2 per cent in March, while minerals, ores and metals, food and agricultural raw materials saw prices decreasing by less than 4 per cent. 

The fall of more than 20 per cent in one month is unique in the history of the FMCPI. From July to December 2008, after the outbreak of the global financial crisis, the maximum month-on-month decrease was 18.6 per cent. At that time, the descent lasted six months. The duration and overall strength of the current downward trend in commodity prices and global trade is yet uncertain. (CCSA)

Key Words: COVID-19, Global Trade, UNCTAD

UNWTO Releases a COVID-19 Technical Assistance Package for Tourism Recovery – With tourism among the hardest-hit of all sectors, UNWTO has identified three possible scenarios for the months ahead. Depending on when restrictions on travel are lifted, international tourist arrivals could decline by 60-80% in 2020.This could translate into a decline in export revenues from tourism of between US$910 billion to US$1.2 trillion and place 100-120 million jobs directly at risk. The social ripple effect is also feared to be at least equally challenging for many societies the world over. Against this backdrop, the COVID-19 Tourism Recovery Technical Assistance Package is designed to support governments, the private sector and donor agencies face this unprecedented socio-economic emergency.

UNWTO Secretary-General, Zurab Pololikashvili says: “We must support the tourism sector now with real actions while we prepare for it to come back and be stronger and more sustainable. Recovery plans and programmes for tourism will translate into jobs and economic growth, not just within tourism itself but across the whole of societies. This package of support will help governments and business implement our Recommendations for Recovery”. Alongside the set of recommendations already released by UNWTO to call for action to mitigate the socio-economic impact of COVID and endorsed by the UNWTO Global Tourism Crisis Committee, the package identified three potential areas of intervention to accelerate the recovery of tourism: economic, promotional and institutional. (UNWTO)

Key Words: COVID-19, UNWTO, Tourism Recovery

Coronavirus: Another chance to transform the global food trade – For the second time this century, the interdependence of the global food supply is in sharp focus. In the first instance, the economic crisis of 2008 created high food prices and pushed an additional 100 million people toward hunger. For many, though, that crisis neither began nor ended in 2008. Now, amid the COVID-19 pandemic, the fragility of the globalized system of trade in food is apparent again. In addition to conflict, climate change and impoverishment, COVID-19 threatens 265 million people with famine and billions with food insecurity. Hunger was on the rise in 2019 before the pandemic began. Despite ongoing calls for change, trade organizations and top food-exporting countries have yet to acknowledge that the current global food trade system is ill-suited to respond to local needs in an increasingly volatile world.

In the years following 2008, Olivier De Schutter, the then-United Nations Special Rapporteur on the right to food, argued that food trade should be restructured around the idea of food as a right — not merely a commodity. He advocated returning decision-making power to communities, investing in agro-e In short, he argued in favour of transforming a system that was ineffective long before the price increases in 2008 were referred to as a crisis. The same transformative opportunity is presented to us today. Encouraging predictable supplies and stable markets are the stated aims of the trade system. But markets are repeatedly destabilized when financial, energy or health challenges emerge. While the full impact of the pandemic on food security is still unknown, it’s likely to take different shapes around the world. The logistical challenges of moving food around the world during the pandemic are exacerbated by the globalized nature of supply chains. Disruptions to planting and harvesting due to illness outbreaks have an impact on food supplies, and restrictions on the movement of migrant farm workers compound the issue as well as reduce worker incomes.

It’s also clear that food availability is easily threatened in a trade system that encourages import dependence and export-oriented agriculture, but cannot require countries to export food. For example, grain-exporting countries like Russia and Ukraine are restricting exports due to domestic supply concerns. These types of restrictions are detrimental to countries that depend on imported food. (Premium Times)

Key Words: COVID-19, Global Food Trade, Global Economy

PAN AFRICA

Figures of the week: Africa’s fiscal response to COVID-19 – In April, the United Nations Economic Commission for Africa published “COVID-19 in Africa: Protecting Lives and Economies,” which analyzes the potential human and economic cost of the pandemic in Africa, and argues that strong partnerships—both regional and international—will be needed to reduce the impact of the crisis. In particular, the report states that continued trade, medical cooperation—including the sharing of intellectual property on testing kits and vaccines—and innovative financing facilities from development finance institutions can play a crucial role in saving lives and bolstering economies.

Development finance institutions’ actions will be important in part because Africa’s fiscal capacity to respond to the crisis is limited. As Figure 1 shows, Africa’s tax-to-GDP ratio was low and falling even before the pandemic. Africa has the lowest tax-to-GDP ratio of any region, at 13.4 percent in 2018, compared to 14 percent in Asia, 25 percent in Europe, and 18 percent in Latin America. The report states that now, as borders close and trade slows in response to COVID-19, governments will collect drastically less revenue from sources such as tourism, travel, and taxes on imported goods. Local governments will also face a decline in own-source revenues and national transfers. The report states that, as a result, the fiscal capacity of African national and local governments to respond to the crisis will be heavily constrained.

Compounding this issue are African countries’ high debt-to-GDP levels, high fiscal deficits, high costs of borrowing, and depreciated currencies, which further limit countries’ fiscal space to respond to the crisis. Twenty-two African countries had debt-to-GDP ratios above 61 percent in 2019, exceeding the 60 percent that is often suggested by economists as a prudential upper bound for developed countries, and far exceeding the 40 percent experts recommend for developing countries. More than half of African countries recorded fiscal deficits above 3 percent in 2019. Costs of borrowing are extremely high: For example, several major African countries, including South Africa, Nigeria, Kenya, and Egypt, have yields over 10 percent on 10-year sovereign bonds, while countries such as Vietnam, India, and Indonesia have yields of 3 percent, 6 percent, and 8 percent, respectively. (Brookings)

Key Words: COVID-19, Africa, Response Policy

The African Legal Support Facility holds 11th Governing Council meeting – The African Legal Support Facility (ALSF) held its 11th Governing Council meeting virtually due to the ongoing novel coronavirus pandemic, discussing future action plans that include measures to assist African countries in their response to the COVID-19 pandemic. The meeting took place on 11 May via video-conference. Council members endorsed the 2019 Annual Report and 2019 Audited Financial Statement, noting that the institution had exceeded its operational targets, consolidated and deepened its partnerships; and expanded its membership.

Two ALSF-supported infrastructure projects won IJGlobal Awards in 2019(link is external). Another project, the Nachtigal Hydro Dam project in Cameroon won the African power sector transaction of the year and Senegal’s Tiaba N’Diaye wind farm project won the African wind sector transaction of the year. The projects will add more than 570 MW of clean energy at competitive tariffs, to support industrial expansion, job creation, and economic growth in their respective countries. The members received an independent evaluation of the previous ALSF Medium-Term Strategy (2013-2017), which reported that ALSF’s beneficiaries were highly satisfied with its interventions. The report also highlighted the ALSF’s efforts to enhance its monitoring and evaluation (M&E) system, establish the ALSF Academy, and implement new financing instruments to broaden its sources of funding.

The Governing Council expressed its satisfaction with the convening of the first high-level forum for Regional Member Countries held in Abidjan on 26-27 February 2020 under the theme ALSF after 10 years: Facilitating Investment and Maximizing Resources for National Development. The Council noted during the event that member countries expressed their willingness to contribute financially to the ALSF to enable it to continue supporting their development efforts. The COVID-19 pandemic which has already had adverse effects on the African continent, was another focus of the meeting. The Council discussed the pandemic’s impact on Africa and measures to help African countries respond to Covid-19, such as debt servicing and renegotiation of contracts. (AfDB)

Key Words: COVID-19, AfDB, Business

AATF and AUDA-NEPAD to promote agricultural research and commercialisation in Africa – The African Agricultural  Technology  Foundation (AATF) and the African Union Development Agency-NEPAD (AUDA-NEPAD), have signed a collaboration agreement   that   will   facilitate   joint   work   towards   building   a   market   system   for   the commercialisation of research products in Africa. The agreementwill also facilitate the improvement of farm productivity through mechanisation to  address  drudgery  and  contribute  to  building  an  enabling  environment  for  agricultural research and development on the continent.

The MoU will be guided by the core principles and values of the African Union especially the realisation of Agenda 2063.Specific key areas of the agreement include addressing challenges in the production of quality foundation seed, a key area of attention for AATF that is already working with the continent's small and medium seed enterprises to ease production of quality certified seed. The two organisations will also focus on strengthening seed  certification and variety release policies  and  processes  including the development  of  the  private  sector,  licensing  of  new agricultural  technologies,and  technology  stewardship  for  sustainable  use  of  agricultural innovations and products.

The MoU, signed by DrDenis  T. Kyetere, Executive Director of the AATF  and Dr Ibrahim Assane Mayaki, Chief Executive Officer, AUDA-NEPAD, will ensure that both organisations identify flagship projects from the key areas of cooperation to effectively achieve the intended goals. Dr  Ibrahim  Mayaki,  welcomed  the  collaboration  saying  it  would  contribute  to  accelerating Africa's agricultural transformation. "As  articulated  in  Agenda  2063, Africa's sustained growth, competitiveness and economic transformation require sustained investment in new technologies and continuous innovation in areas  such  as  agriculture,  clean  energy,  education  and  health.  This  agreement  will  help contribute to this goal," said Dr Mayaki. Dr Denis Kyetere said the collaboration provides an opportunity for the smallholder farmers to benefit from innovative and value-adding agricultural technologies."With the smallholder farmer at the centreof decision making, AATF  emphasises the need to get innovations to farmers rapidly and effectively to optimise benefits," said Dr Kyetere, adding that the agreement would also facilitate replication of mechanisation business models in more African countries as part of transformative agriculture development. (allAfrica)

Key Words: AUDA-NEPAD, Agriculture, Business

Call for Applications: On-Line Training- African Continental Free Trade Area (AFCFTA) – The role of journalists – Reporting trade and related economics can be a daunting task for media practitioners without prior training or knowledge of this field. The challenge for most practitioners is two-fold: first understanding the concepts and then applying news gathering and writing skills to produce attention-grabbing content. With business and economics gaining salience in daily life in Botswana and around Africa, it is critical for media practitioners to acquire new skills in unpacking technical economic information and policy issues, and preparing media content with broad appeal to audiences across all media platforms, especially the ever-popular broadcast channels. Using case studies and current issues in the news, this course takes participants on a journey of the trade economics; national & regional trade policy analysis; and global political economy. At the same time, participants are exposed to fresh strategies to gather news and report African trade and other pertinent economic issues of the continent, with specific emphasis on how keeping all media content interesting and relevant to audiences.

The course pays particular attention to accurate reading and distilling of technical data; and assists participants in tackling news assignments that involve economics and business data. This self-paced course will be delivered from 22 June to 14 August. The course will be moderated asynchronously on a weekly basis and participants are required to participate in the weekly on-line discussions. In addition, each module has interactive lessons that provide the core content around the topic for that module. The lessons are designed in a way that learners are also able to self-assess their understanding through built-in quizzes. Additional resources such as bibliographies, web links and optional readings are provided for participants who wish to deepen their knowledge of the course topic

Applicants to the course are expected to have, as a minimum, a bachelor’s degree preferably where courses related to statistics, planning, project management and monitoring project evaluation. In addition, two years of work experience will be required. Women candidates are also strongly encouraged to apply. Until the registration deadline, participants are accepted to the course on a rolling basis and subject to availability of slots. Applications must be completed exclusively on IDEP online application platform at https://www.unidep.org/?apply.  (UNECA)

Key Words: AfCFTA, IDEP, UNECA

tralac Certificate Course: Module 1 – Feedback from the class of 2020 -  tralac's Certificate Course on International Trade Law and Policy for Africa’s Development for the new intake of students is underway. Module 1 took place via e-learning from 20-24 April 2020, focusing on “International Trade Policy and Law in the 21st Century – foundational disciplines”. Participants are busy with Module 2 this week (11-15 May), covering a range of substantive disciplines including trade in services, investment, competition policy and trade facilitation. Module 3 will take place during the first week of June and focus on Africa’s trade and regional integration agenda, with special focus on the African Continental Free Trade Agreement. Below is some of the feedback tralac has received from the class of 2020. Find out more about the certificate course here. (tralac)

Key Words: AfCFTA, International Trade Law, Regional Integration

NORTH AFRICA

Trade deficit is reduced by 1492.9MD by late April 2020 –  The trade deficit fell by 1492.9 MD to stand at 4844.5 MD, at the end of April 2020, against 6336.9 MD, during the same period of 2019, according to data from the National Institute of Statistics (INS), published Wednesday. According to the INS, Tunisia's trade with the outside world at current prices fell by 20.6% in exports against a 16.5% increase during the four months of 2019 and by 21.5% in imports against an 18.7% increase during the same period last year

Exports reached the level of 12521.2 MD, against 15776.3 MD, during the same period of the year 2019. In value, imports reached 17365.7 MD, against 22113.1 MD, during the same period of the year 2019. The coverage rate gained 0.8 points compared to the same period of the year 2019 to reach 72.1% (against 71.3% one year earlier). A sharp contraction in trade in April due to lockdown measures. In April 2020, exports fell sharply by 48.9% year-on-year (-29.5% in March), the sharpest contraction in recent economic history. Exports reached the level of 2006.3MD, against 3929.9MD in April 2019. According to the INS, this decrease mainly affected the off-shore sectors, namely the textile, clothing and leather sector and the mechanical and electrical industries sector whose explorations fell by 3.5% and 62.1% respectively, while the agriculture and agro-food industries sector recorded a 10.6% drop.

On the other hand, exports of the energy sector recorded a strong increase (+152.4%) explained in part by the regularisation of late customs declarations relating to March (about 34% of the value) and those of the mining, phosphates and derivatives sector which increased by only 2.5%. The breakdown by country shows remarkable decreases in sales to our main European partners, mainly France (-64%), Germany (-61%) and Italy (-47%). The same trend is observed towards certain Arab countries such as Algeria (-79%), Libya (-67%) and Morocco (-62%). (TAP)

Key Words: Tunisia, COVID-19, Trade

EAST AFRICA

Int'l Monetary Fund gives Seychelles $31 million in emergency assistance - The International Monetary Fund (IMF) has approved Seychelles' request for emergency financial assistance, granting the island nation $31.2 million. The line of credit will go in the Seychelles' reserve so as to sustain the island nation's financial resilience through the COVID-19 crisis. The executive board of IMF approved the request under the Rapid Financing Instrument (RFI). Available to all member countries, the instrument provides rapid and low-access financial assistance when an urgent balance of payments is needed. In a press conference on Friday, the governor of the Central Bank of Seychelles, Caroline Abel, said that "the finance will supplement the reserve that we have to sustain the country."

"It will prolong the length of time that we can support the market during this time in which the economy sees itself in a situation where there aren't enough economic activity bringing in foreign currency," said Abel. Seychelles, an archipelago in the western Indian Ocean, has since March 25 banned any passenger arriving from any country on airlines or marine vessels to the island nation, with the exception of returning Seychellois citizens. With no visitors coming from Europe, the country's largest tourism markets, and with international airlines grounded, Seychelles' tourism industry has ground to a halt.

Abel said, "We foresee that the country will not receive a lot of tourists for the rest of this year. As the Central Bank, we need to at one point or another sustain the foreign exchange market, hence, it is important to always have an insurance that should things not get better, there will be something to fall back on and sustain yourself through this difficult time." She said the government is making sure that the extra debt does not become a burden later by making informed calculations when looking for financial assistance. The Seychelles' finance minister, Maurice Loustau-Lalanne, said on Friday that the loan from IMF comes with an interest rate of 0.05 percent. (Seychelles News Agency)

Key Words: COVID—19, Seychelles, IMF

Kenyan Export Trading Group receives 15mln to strengthen operations in Africa – Export Trading Group (ETG), an integrated chain for the management and processing of agricultural products present in 26 African countries, is to receive $15 million in financial support from a Finnish investor. The resource will enable the agro-industrial group to strengthen its agricultural trading and processing operations mainly in Malawi, Mozambique, and Tanzania.
Finnfund, ETG's new shareholder, has not disclosed the shares it will acquire in return for its financial contribution. Three other development financial institutions are reported to have a stake in the Kenyan company, which covers the entire agricultural value chain from production to distribution.

Long before the Finnish investor, several African banks and international financial institutions mobilized funds to support the Export Trading Group's activities in sub-Saharan Africa, South-East Asia, the Middle East, and Europe; regions in which the group has expanded its footprint. (Ecofin Agency)

Key Words: COVID-19, Kenya, Trade

WEST AFRICA

Africa’s GDP to grow by US$300 billion a year if countries adopt technology – Finance Minister Ken Ofori-Atta says research has revealed that Africa's Gross Domestic Product (GDP) will grow by $300 billion a year by 2025 should African countries adopt digital technology. He said there is the need for African countries to fast-track policies and programmes towards leveraging on technology for economic growth. "If we digitise as a continent, we can see 10 percent growth of our GDP because of technology. "South Africa reduced cost by 22 percent and revenues picked up in Rwanda by six percent because of digital technology," he said. Mr Ofori-Atta made these remarks when speaking at the launch of an Integrated ICT System for Microfinance and Small Loans Centre(MASLOC) at the Jubilee House, in Accra.

The IT system is an innovative solution to address payment and settlement challenges facing MASLOC to enhance transparency and accountability in the disbursement and recovery of loans. Mr Ofori-Atta lauded Vice President Bawumia for championing the government's digitisation agenda saying it is the way forward towards formalising and transforming the Ghanaian economy. However, the Minister admitted that the country has not reached digital maturity yet, and underlined the need to continue pursuing digital infrastructure to accomplish that agenda. Commenting on the impact of the COVID-19 pandemic on the Ghanaian economy, the Finance Minister admitted that it was practically impossible for government to sustain the economy following the imposition of a partial lockdown in Accra, Tema, Kasoa and Greater Kumasi. (Ghana Web)

Key Words: West Africa, Ghana, Economic Growth

CENTRAL AFRICA

Equatorial Guinea Year of Investment advances, despite challenges – COVID-19 has slowed global trade, but Equatorial Guinea is not relenting in its drive for investment and downstream diversification, said the country’s Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.  Equatorial Guinea’s Year of Investment 2020 campaign continues to move ahead, according to Caty Hirst, director of programming at Africa Oil & Power. “Definitely the Year of Investment is still very important,” said the Minister during a webinar hosted by Africa Oil & Power. “2019 was the Year of Energy, and the Year of Energy was to show to the world Equatorial Guinea … 2020 is the Year of Investment. It is the year that we put our money where our mouth is. And we are definitely going to continue.” Projects already moving ahead include the backfill of gas supply to gas processing facilities as part of the Gas Megahub project, which is in the works with partners Noble Energy and Marathon Oil, as well as preliminary work on a modular refinery. These projects will move forward, despite the low oil price environment caused by COVID-19, largely because they were already in progress.

The pipelines for the backfill project are already complete, and gas feed from the Alen field to backfill the EG LNG plant at Punta Europa should come on stream by November 2020. The Year of Investment, planned to last throughout 2020 and include several in-country conferences and a global investment roadshow, is adapting to the new restrictions under COVID-19. Webinars and video conferencing are just one way technology is keeping the country connected with investors. “By this time, everyone was supposed to be here in Equatorial Guinea. We were supposed to be having a conference. We were supposed to be signing a lot of contracts. But I am still signing contracts,” Lima said.

Webinars and virtual roadshows will continue throughout the year, and will culminate in a Malabo conference on November 25-26, 2020. The Africa Oil & Investment Forum will attract regional and international investors to Malabo, as the country continues to engage at the regional and international level. The Year of Investment is laying the groundwork for 2021, which will be the country’s year to focus on petrochemicals, the Minister said. Equatorial Guinea has been addressing downstream diversification efforts in recent years, with a focus on gas monetisation and building refining capacity. 2020 and 2021 will be “lost years” for upstream oil and gas, he said, as projects are put on hold and cancelled in the short term. (Oil Review Africa)

Key Words: COVID-19, Equatorial Guinea, Trade and Investment

SOUTHERN AFRICA

COVID-19 Response by DTIC: Joint Meeting of Portfolio and Select Committees  responsible for Trade, Industry and Competition - On 21 April 2020, President Ramaphosa announced a R500 billion coronavirus budget to to direct resources towards fighting the pandemic. Funding for the coronavirus budget will include the reprioritisation of around R130 billion within the current budget, with the balance from international and local sources. The R500 billion coronavirus budget will include the following:

• R200 billion loan guarantee scheme in partnership with the major banks, the National Treasury and the South African Reserve Bank.

 • R100 billion for the UIF’s COVID-19 benefit to support workers’ wages and assist companies in distress.

• R70 billion in cash flow relief or direct payments to businesses and individuals, through a 4-month holiday for companies’ skills development levy contributions, fast-tracking VAT refunds and a 3-month delay for filing and first payment of carbon tax

• R50 billion on a temporary 6-month Coronavirus grant towards relieving the plight of those who are most desperately affected by the coronavirus,

 • R40 billion has been set aside for income support payments for workers whose employers are not able to pay their wages.

• R20 billion for additional spending on personal protective equipment for health workers, community screening, increase in testing capacity, additional beds in field hospitals, ventilators, medicine and staffing.

• R20 billion to municipalities for the provision of emergency water supply, increased sanitisation of public transport and facilities, and providing food and shelter for the homeless

• R2 billion to assist SMEs and spaza shop owners and other small businesses. (thedtic)

Key Words: COVID-19, South Africa, DTIC

Africa Oil & Power launches Angola investment report – In line with Angola’s aim to drive capital inflows into its bankable oil and gas projects, Africa Oil & Power (AOP) has launched the Africa Energy Series Special Report: Angola 2020 as a resource for investors entering or expanding their presence in the country’s energy sector. Available for free download on AOP’s website, the report provides a concise look at Angola’s investment opportunities still on track for development in the face of project delays caused by COVID-19. “While COVID-19 continues to rattle our industry and stall energy developments across the continent, Angola boldly moves forward with a number of its large-scale, capital intensive projects, as explained in the Africa Energy Series Special Report: Angola 2020,” said AOP acting CEO, James Chester.

“While the current investment climate remains challenging for the oil and gas industry, sufficient and sustained FDI is required across the energy supply chain to not only survive the crisis in 2020, but also overcome it in 2021.” The report primarily focuses on upstream developments in Angola, including the 2020 oil and gas licensing round which, as of 6 May, is still scheduled to take place; recent block extensions granted to major operators, including ExxonMobil, Chevron, and Total; the increase in the appraisal of estimated recoverable resources of ENI’s Agogo discovery; the installation of the Lifua-A platform to support oil and gas exploration in Block 0; and the establishment of the New Gas Consortium that represents Angola’s first upstream natural gas partnership.

Within Angola’s developing downstream industry, the report provides updates on the planned construction of natural gas and hydropower plants across the country; the refurbishment of the Luanda refinery to quadruple its current production; and the tender for the construction of new refineries in Cabinda, Lobito, and Soyo. The publication follows the recent announcement of a change in date to the Angola Oil & Gas 2020 Conference & Exhibition, which will now take place in Talatona from October 14-15. Under the theme “Angola: African Investment Capital 2020,” the conference returns for its second year to promote and attract FDI to the country’s bankable projects and sign up new entrants to Angola’s oil and gas sector.  (Oil Review Africa)

Key Words: Angola, Investment Policy, Trade

COVID-19: Zimbabwe’s Smallholder Farmers Step into the Food Supply Gap – As smallholders farmers across the country start growing more produce, there are concerns that demand will outstrip supply as these farmers lack the sophisticated and well-financed production lines of commercial farmers. “Smallholder farmers have been up to the task to feed the country although they have fallen short in terms of meeting demand. “The demand, especially for the upper end of the market such as supermarkets, [and before the lockdown] hotels and restaurants, has largely been met by imports of horticultural produce. The smallholder farmers on the other hand, have largely met the demands for the medium to lower end of the market largely through such localised outlets,” said Ali Said, chief of the food and livelihood support programme at the Food And Agriculture Organisation of the U.N. in Zimbabwe.

“Smallholder farmers are also a major supplier of such institutions like boarding schools and hospitals in their localities. If current bottlenecks to horticultural production by smallholder farmers are addressed, they can produce enough to meet demand,” he told IPS. Mudzingwa agrees. “Massive food production needs capital resources, which smallholder farmers should have access to without stringent conditions,” Mudzingwa told IPS. Last year, Zimbabwe established the Zimbabwe Smallholder Horticulture Empowerment and Promotion project (ZIM-SHEP), with support from the Japan International Cooperation Agency (JICA).  According to the Ministry of Lands, Agriculture, Water, Climate and Rural resettlement, smallholder farmers are the country’s major horticulture producers and ZIM-SHEP is designed to assist these farmers with specialised skills and also help with access to markets.

Self-taught farmers such as Mushowe have already shown the contribution of smallholders in meeting local needs, despite the lack of access to agri-finance.  “I wouldn’t mind having more space to expand vegetable production but I am also aware that expanding will require more resources which I cannot afford at the moment,” Mushowe said.  Despite the International Fund for Agricultural Development (IFAD) supporting Zimbabwe through the Smallholder Irrigation Support Programme, where communities are provided with irrigation systems with particular interest in horticulture, such support is yet to reach Ntabazinduna farmers such as Ntuli.  (IPS)

Key Words: COVID-19, Zimbabwe, Markets