IMPORTANT ANNOUNCEMENT

Second survey on COVID-19 pandemic and its economic impact on African countries - The United Nations Economic Commission for Africa (ECA) and International Economics Consulting Ltd teamed up in April 2020, in order to carry out the first survey and provide insights into the economic effects of the pandemic on economic activity and trade for businesses across Africa. The analysis and full report has been published and can be accessed here.

Based on the positive responses of the April Survey, and with a view to shedding light on the policy responses and understanding how businesses are progressing during the pandemic, the team is proposing a second round of the survey. Please also note that the scope of the questionnaire has been slightly expanded (compared to the first round) to account for issues that are gaining even more importance in the context of the pandemic and relating to supply chains, technology, competition and gender.

This survey should take 15 minutes to complete, and please rest assured all responses will remain strictly confidential. Please click on the link below to begin the survey, the deadline for completing the survey is Sunday 28 June.

https://www.surveymonkey.com/r/Covid-19-Africa-Impact

Thank you very much for giving your time to help us with our research. If you have any queries or comments about the survey or the research study, please do not hesitate to contact us by mail eca-atpc@un.org.  

INTERNATIONAL

Investment flows to developing countries in Asia could fall up to 45% in 2020  - Foreign direct investment (FDI) to developing economies in Asia, hit hard by the economic downturn caused by the coronavirus pandemic, are projected to decline by up to 45% in 2020, according UNCTAD’s World Investment Report 2020.

Bleak prospects for 2020 - The number of announced greenfield investment in the first quarter of 2020 dropped by 37%. The number of mergers and acquisitions (M&As) fell by 35% in April 2020. “Lockdown measures and factory stoppages impacted supply chain and factories’ production in the region. Falling corporate earnings, a slump in global and regional demand and economic slowdown have led multinational enterprises (MNEs) to postpone investment plans,” said UNCTAD’s director of investment and enterprise, James Zhan. The pandemic will precipitate a fall in reinvested earnings of foreign affiliates based in the region, affecting investment. It underscored the vulnerability of these supply chains and the significance of the role of China and other Asian economies as global production hubs. Outward FDI is also expected to fall as a result of liquidity challenges faced by companies from the region. A global economic recession will further weigh on inflows to and outflows from the region. Economic growth in Asia is expected to stall to 0%.

Moderate decline inflows in 2019- In 2019, FDI flows into developing economies in Asia declined by 5%, to $474 billion. Growth in inflows in South Asia (10%) and South East Asia (5%) were not sufficient to offset the decline in investment in East Asia and West Asia (13% and 7% respectively). Asia remained the world’s largest FDI recipient, hosting more than 30% of global inflows in 2019.

East Asia - FDI inflows to East Asia declined by 13% to $233 billion in 2019. Inflows to China rose to an all-time high of $141 billion despite trade tensions. Investment flows to Hong Kong, China declined by 34% to $68 billion in 2019, recording a fourth consecutive annual decrease. Flows to the Republic of Korea dropped by 13%, to $11 billion, attributed to trade tensions with Japan and the end of tax breaks for foreign investors in 2018.

South-East Asia- South-East Asia, with FDI rising by 5% to a record level of $156 billion, continued to be the region’s growth engine in 2019. The growth was driven by strong investment mainly in Singapore, Indonesia and Viet Nam. The three countries received more than 80% of inflows in South-East Asia in 2019. Robust investment from Asian economies, United States and within the Association of Southeast Asian Nations (ASEAN) pushed up inflows. Manufacturing and services continued to underpin inflows to South-East Asia. FDI flows to some ASEAN member States (e.g., Myanmar, the Lao People’s Democratic Republic and Thailand) fell. Investment to Malaysia was flat.

South Asia- FDI flows to South Asia increased by 10% to $57 billion. The rise was driven largely by a 20% increase in investment in India, the largest South Asian FDI recipient, to $51 billion. Most of the investments in India went to the information and communication technology (ICT) and the construction industries. Flows to Bangladesh fell by 56% to about $2 billion, reflecting an adjustment from a record-high level in 2018.  In Pakistan, FDI recovered, growing 28% to $2 billion after a 30% fall in 2018.

West Asia - FDI to West Asia declined by 7% to $28 billion. Three countries - Turkey, the United Arab Emirates and Saudi Arabia - accounted for the majority of inflows in 2019. The United Arab Emirates was the largest FDI recipient in West Asia, with flows of almost $14 billion in 2019, growing by a third from the preceding year. Flows to Saudi Arabia increased for the second consecutive year by a further 7% to $4.6 billion because of a few large M&A deals. FDI flows to Turkey declined by 35% to $8.4 billion and investment to other countries in West Asia was flat or declined. (UNCTAD)

Key Words: FDI, UNCTAD, COVID-19

DDG Wolff: Trade and peace are intimately related – Speaking at the “Trade for Peace” webinar on 16 June jointly organized by the WTO and the Institute for Economics and Peace, Deputy Director-General Alan Wolff outlined the important role of the multilateral trading system as a pillar of postwar efforts to maintain global peace and stability. The WTO and the GATT “are not simply contracts, but are a purposed construct for achieving a much more basic human aspiration, peace,” he said. This concept “is very much alive” for some recent WTO members that have experienced the trauma of war. Extract text of DDG Wolff’s remarks are below. To better understand the relationship between trade and peace, it is necessary to transport ourselves back to 1947.  By that year, century had already been the bloodiest in human history. The carnage that took place in those years is now almost unimaginable. 

What was originally called the Great War, what we call World War I, ended just over 100 years ago. Last year there were commemorations for those who fought in that war.  The total number of military and civilian casualties amounted to around 40 million, consisting of 20 million deaths and 21 million wounded.  Of those deaths,  9.7 million were military personnel and about 10 million were civilians.(1)  The short peace that followed the First World War was extremely fragile, hardly more than a prelude for what was to come which was far worse.

Between September 1939 and August 1945, an average of 27,000 people perished every day as a consequence of the Second World War.(2)  Much of the world lay in ruins.  Europe, from the Atlantic and deep into Russia in the West, and Japan and China in the East, were devastated.  20 to 25 million were killed in battle.  An estimated 50 to 55 million were civilian deaths, half from disease and famine (3).  In addition, there were some 20 million displaced persons in Europe alone.(4) 

It was the survivors of these catastrophes who created the liberal international order, of which the multilateral trading system is a key part.  To them the relationship between bringing about increased trade and maintaining the peace was obvious. No explanations were needed.
Their vision was reflected in the opening words of the 1948 Havana Charter for the International Trade Organization:(5) to create conditions of stability and well-being which are necessary for peaceful and friendly relations among nations. . . . 

The signatories of the ITO Charter understood that trade does not guaranty peace.  They were realists.  They had few illusions.  After all, Germany and the United Kingdom had extensive trade before the outbreak of the First World War.  However, the architects of the liberal international order believed that trade could help maintain peace.  In this belief, in the aftermath of the Second World War, the European Coal and Steel Community and the European Common Market were formed, within the global framework of the newly established multilateral trading system.

Far too often the simplest lessons of history are forgotten or obscured by the passage of time.  When the GATT was transformed into the WTO in 1995, it was a peaceful and optimistic time following the end of the Cold War.  The founders of the WTO no longer emphasized  the relationship to peace and stability when establishing the new Organization.  Although the front entrance to the WTO building is flanked by the statues of Peace and Justice, peace was in those years not a topic often discussed in trade negotiations inside the building. 

Peace and the multilateral trading system in the present -  Just days before the lockdown in mid-March, I was in Addis Ababa with members of the WTO accessions team.  The delegation was there for a conference for the remaining countries in the African continent interested in joining the WTO.  The Ethiopian government arranged a visit for us to Unity Park, just opened and still being finished, on the grounds of the former imperial palace.  One of the buildings in the Park had once served as a prison often for political prisoners during the time of the dictator Mengistu(6).  Its basement had been converted into a museum which informed visitors about the modern history of Ethiopia.  (WTO)

Key Words: WTO, Global Trade, COVID-19

David Laborde: How to help LDCs stay food secure through COVID-19 – International Food Policy Research Institute (IFRPRI) Senior Research Fellow discusses the challenges and opportunities for food security in least developed countries amidst the COVID-19 pandemic

Q: According to your Food Export Restrictions Tracker, it seems that currently 18 countries have implemented food export restrictions linked to COVID-19, representing just over 5.8% of global calorie markets. What does that mean for global food security?

A: Globally, we don’t have a major shutdown of markets mainly because all the big exporters have not limited their food exports. However, some countries and some regions are at risk because their major suppliers are limiting their exports. The wheat market is mainly being impacted by export restrictions implemented by the Ukraine, Russia and Kazakhstan and the rice market is being impacted by Vietnam’s export restrictions. So if we look at Egypt for example, which gets 46% of its staple calories from the Ukraine and Russia, these restrictions are having a significant impact. This is the same for Ghana, which imports half of its rice from Vietnam.

Q: How are LDCs currently faring, particularly those that depend on imports of rice and wheat?

A: We estimate that roughly 16-18% of basic food products that were imported by LDCs prior to COVID-19 are now at risk due to current export restrictions.

When it comes to the LDCs most greatly impacted, Afghanistan is in a tricky situation. Half of their wheat products normally come from Kazakhstan and they are a landlocked country so they are quite vulnerable at the moment. In Africa, the main commodity that they are sourcing from outside the continent is rice. Much of rural Africa relies mainly on local production of cassava and white maize and so they are not particularly impacted by what is happening in global calorie markets. However, rice is quite important in urban centers and the disruption in its availability is a big problem for urban populations. The main trouble in international trade is that countries putting in place export restrictions are not taking into account the impact of these decisions on LDCs, which may be thousands of kilometres away.

COVID-19 is also posing a threat to domestic trade of food in LDCs. In some countries, a lack of coordination between the public and private sector has meant lockdown measures have been announced and markets closed without allowing enough time to transport sufficient food into the cities. So poor populations in urban centers are not only suffering from the lack of availability of imported food, but also a disruption in availability of food from within their own country. While these limitations on movement of goods and people make sense from a health perspective, we are starting to see that some measures are being implemented in excessive ways, particularly in LDCs where there is a high level of informality. Informal traders are the lifeblood of many African cities, and they are being picked up by police for being outside.

Q: What have you been noticing about how LDCs are responding to the export bans as well as the domestic trade challenges? What measures have they taken to curb the effects?

A: Many LDCs are trying to implement social safety nets to provide income to their poor population. Some have also tried to find a way to support SMEs through tax exemptions, better financing and helping farmers secure inputs. One of the challenges is to get the fiscal capacity to pay for these measures, which is why debt relief or at least a moratorium on debt payment will be very important in the years to come. However, while LDCs can be victim of the restrictions, they also do not hesitate to implement them. Formally, we have not recorded any LDCs implementing export restrictions but informally I have received a lot of testimonies stating that this is happening. For example, Burkina Faso has blocked grain and seed exports to Niger. Here you have two landlocked countries that are part of the same trading bloc, but then you see this protectionist gut reaction that will be detrimental to its neighboring LDC that it should be cooperating with. (Trade4DevNews)

Key Words: LDCs, Global Trade, COVID-19

PAN AFRICA

Africa CDC: Considerations for easing public health and social measures including lockdown in African Union Member States: Guidance on  EASING LOCKDOWN – In view of the risks of sustained restrictive measures, many countries are exploring how these can be eased while maintaining a sustainable response and controlling the transmission of COVID19. Before easing restrictions, a risk assessment should be done to consider the likely impacts of lifting PHSM on transmission and epidemic control, and how to mitigate these. The risk assessments particularly need to balance the negative health, social, and economic consequences of retaining measures, which may be considerable, with the risk associated with increases in the number of cases of COVID-19.

Risk Assessment - A staged approach will be needed so as not to trigger an unmanageable resurgence of COVID-19 cases and further jeopardize the health of the population. The first stage will focus on resuming services that are most critical to health and society, and which can be carried out with policies in place to minimize the risk of transmission. Rollback will begin with the restrictions that have the most severe negative consequences on health and society. Until effective pharmaceutical interventions (e.g. therapies and vaccines) are available, countries may need to continue to loosen or reinstate measures throughout the pandemic.

Even a gradual rollback of PHSM may well lead to an increase in new COVID-19 cases. The key is to be vigilant and ready to respond if cases reach levels unmanageable for healthcare services. Most experts anticipate waves of COVID-19 transmission, so policy makers will need to be nimble in adapting PHSM. Constant monitoring and a readiness to adjust and reintroduce new measures will be required.

What should be in place - A capacity for widespread testing and the ability to rapidly detect a resurgence of cases, to identify, isolate and care for those infected, and trace contacts should be in place before any easing of restrictions. A healthcare system able to absorb an extra patient load is also important.

Africa CDC’s Partnership to Accelerate COVID-19 Testing (PACT) Initiative5 aims to increase continental case finding, testing and isolation/treatment efforts to reduce COVID-19 transmission in Africa. This initiative should be leveraged by Member States to ensure these capacities are in place prior to lifting PHSM. (AU)

Key Words: AU, COVID-19, CDC

Completion of online training on combating the trafficking of cultural property in Africa – Wednesday 17 June, marks the end of a fortnight during which heritage professionals, Customs officials and police officers from six countries of West and North Africa, namely Burkina Faso, Mali, Morocco, Mauritania, Niger and Senegal, shared knowledge about how to strengthen the operational networks for combating the trafficking of cultural property.  The closing ceremony linked each of these countries up with the representatives of the event’s co‑organizers: Paris with the presence of Mr. Ernesto Ottone R., Assistant Director-General for Culture of UNESCO; Niamey with Mr. Assoumana Malam Issa, Minister for Culture of Niger; Brussels with Mr. Stefan Kirsch, Deputy Director for Compliance and Enforcement in the World Customs Organization (WCO); and Lyon with Mr Corrado Catesi, Coordinator, Works of Art Unit, INTERPOL.

Launched by the UNESCO Regional Office in Dakar in partnership with the WCO and INTERPOL, this training was conducted remotely. For a period of two weeks, the participants tackled practical and varied subjects ranging from heritage law to the authentication of cultural property, the management of risks and urgent situations and indeed the protection of the manuscripts of the Sahel. Other matters covered were follow-up on operational activities, such as the worldwide Athena II operation organized by the WCO and INTERPOL in autumn 2019, further discussions on the operating methods of traffickers and effective means for preventing smuggling, and promoting the use of dedicated information tools and platforms for Customs officials and police officers, such as INTERPOL’s database on stolen works of art and Purple Notices, the WCO’s ARCHEO platform and the Livret des forces de l’ordre et de sécurité (booklet for the law enforcement and security agencies) developed by UNESCO Dakar.

The participants who followed the training carried out 15 hours of personal work, participated in more than 13 hours of live sessions, viewed 12 hours of videos, read sundry training materials and also shared their experiences via social networks. Through this training, although it took place online in a region where there are connectivity challenges, the participants were able to establish strong relationships, perhaps even stronger than they would have been in person. The experience was a success, and it demonstrates that there are different ways of approaching capacity-building activities.

“This training revealed a genuine community of practices that binds together quite different professional groups working according to different codes, but among whom a common language can be developed. The challenge has been met successfully, one of the tangible outcomes being the improvement of an inter-agency modus operandi for smoother coordination at national, regional and international level,” said Mr. Ernesto Ottone R., UNESCO’s Assistant Director-General for Culture. In addition to facilitating exchanges of experience and the development of operational procedures, this programme was a way of developing the dialogue further and improving coordination between the law enforcement and security agencies, Ministries of Culture and heritage professionals at national level.

There were good reasons for opting for inter-agency training, which is in line with the series of activities undertaken by UNESCO, the WCO and INTERPOL since 2018, when their operational partnership in Africa began. The training follows up on the WCO’s PITCH training, which took place in December 2018 in Dakar, and it provided an opportunity to test the very first capacity-building framework specifically designed for Customs on combating the trafficking of cultural property worldwide.  (WCO)

Key Words: WCO, COVID-19, Africa

Communique of the video-teleconference meeting of the Bureau of the Assembly of the AU Heads of State and Government with Chairpersons of the AU RECs – His Excellency, President Matamela Cyril Ramaphosa of the Republic of South Africa, and Chairperson of the African Union (AU) convened a video-teleconference Meeting of the Bureau of the Assembly of African Union (AU) Heads of State and Government with the Chairpersons of the AU Regional Economic Communities (RECs) on 11 June 2020.

The Meeting was held to consider reports of the AU Special Envoys, regarding economic relief measures and pooled procurement of medical supplies for Member States in the fight against COVID-19. The Meeting also provided a platform for the Chairpersons of the RECs to update the Bureau on measures and coordination efforts that have been undertaken since the last meeting on 29 April 2020.

All Members of the Bureau of the Assembly of Heads of State and Government participated in the Meeting as follows: His Excellency, President Félix Tshisekedi of the Democratic Republic of Congo, His Excellency, President Abdel Fattah el-Sisi of the Arab Republic of Egypt, His Excellency, President Uhuru Muigi Kenyatta of the Republic of Kenya, and His Excellency, President Ibrahim Boubacar Keïta of the Republic of Mali.

Seven (7) Regional Economic Communities (RECs) of the AU were represented in the Meeting as follows:

• East African Community (EAC), Chaired by His Excellency President Paul Kagame of the Republic of Rwanda;
• Economic Community of Central African States (ECCAS), Chaired by His Excellency President Ali Bongo of the Republic of Gabon;
• Economic Community of West African States (ECOWAS), Chaired by His Excellency President Issoufou Mahamadou of the Republic of Niger;
• Intergovernmental Authority on Development (IGAD), Chaired by His Excellency Prime Minister Abdalla Hamdok of the Republic of Sudan;
• Community of Sahel–Saharan States (CEN–SAD), His Excellency Mr. Mahamat Zene Cherif, Minister of Foreign Affairs, who participated on behalf of His Excellency President Idriss Deby Itno of the Republic of Chad;
• Common Market for Eastern and Southern Africa (COMESA), His Excellency Dr Tehindrazanarivelo Djacoba A.S. Oliva, Minister of Foreign Affairs of the Republic of Madagascar who participated on behalf of COMESA Chair and the President of the Republic of Madagascar, His Excellency President Andry Rajoelina;
• Arab Maghreb Union (UMA), His Excellency Mr Mohammed Taher Sayila, the Minister of Foreign Affairs of Libya who participated on behalf of the Chairman of the Presidential Council of Libya and Prime Minister of the Government of National Accord (GNA), Mr Fayez Mustafa al-Sarraj of the Libyan Arab Republic.

The following Head of States also participated in the meeting; namely, President of Ethiopia, Her Excellency Sahle-Work Zewde; President of Senegal and the current Co-Chair of the Forum on China-Africa Cooperation (FOCAC), His Excellency Macky Sall, and President of Zimbabwe, His Excellency Emmerson Mnangagwa.

The Chairperson of the African Union Commission, H.E. Moussa Faki Mahamat, and the Director of the Africa Centres for Disease Control and Prevention (Africa CDC), Dr John Nkengasong, also participated in the teleconference Meeting.

The AU Special Envoys, namely, Dr Ngozi Okonjo-Iweala of Nigeria, Dr Donald Kaberuka of Rwanda, Mr Benkhalfa Abderrahmane of Algeria, Mr. Trevor Manuel of South Africa, Mr. Tidjane Thiam of Côte d’Ivoire, Professor Mbaya Kankwenda from the DRC, and Mr. Strive Masiyiwa from Zimbabwe, also participated in the meeting. (tralac)

Key Words: AU, COVID-19, Trade

NORTH AFRICA

Growth rate expected to drop by 4.4% in 2020 due to COVID-19 pandemic (UNDP study) [Upd 1] - The growth rate is expected to stand at -4.4% in 2020 in the wake of the COVID-19 pandemic, shows a study on the economic impact of the coronavirus on the Tunisian economy for 2020. "Thus, in light of this study and for reasons of prudence, the government is going to forecast a growth rate of -6% or -7% in the 2020 supplementary finance law, against a growth rate of 2.7% initially forecast in the 2020 Finance Law," said Development, Investment and International Cooperation Minister Selim Azzabi at a press conference held Wednesday in Tunis. This study was conducted by the Ministry of Development, Investment and International Co-operation and the United Nations Development Programme (UNDP).

The study aims to set up an economic recovery programme in order to better cope with the economic and social effects of the COVID-19 pandemic and to prepare the 2021-2025 development plan.  The study also projects a drop by 4.9% in the global investment and by 8% in the household consumption. Exports and imports are also expected to edge down by 8% and 9.6%, respectively. Azzabi said the complementary bill will include a string of measures that will help cushion the impact of the crisis while identifying sources of funding, particularly that the government will seek to reduce public indebtedness.  Several approaches can be embraced, including the integration of the informal sector into the mainstream economy and decashing by means of reducing cash transations and changing currency in circulation.

These measures are also designed to optimise State expenditure by means of restructuring public bodies and cutting expenses, gear social aid towards eligible recipients and seek greater tax fairness. The minister said the government will undertake a home-to-home strategy to attract new investors. Studies showed that the amount of investments in Asia that will be redirected to Europe is nearly of 50 billion dollars.  Tunisia, Azzabi said in another vein, is conducting talks with lender countries to explore avenues for reducing pressure on public finance.   (TAP)

Key Words: North Africa, Economic Growth, COVID-19

EAST AFRICA

WCO SG participates in Virtual Talk organized by Kenya Revenue Authority – At the invitation of the Kenya Revenue Authority (KRA), WCO Secretary General Kunio Mikuriya spoke as panelist at a live Webinar organized by the Kenya School of Revenue Administration (KESRA) on 16 June 2020. The KESRA is one of the four WCO Regional Training Centres for the East and Southern Africa (ESA) region. The virtual talk was part of KESRA’s Economic Dialogues series and the topic of this webinar was "A thought leadership perspective on the status of Customs and Global Supply Chains: the context of the COVID-19 Pandemic". The webinar was moderated by KRA’s Commissioner and Head of KESRA, Dr. Fred Mugambi and the other panelist was the former Deputy Chairperson of the African Union (AU) Commission and former Secretary General of the Common Market for Eastern and Southern Africa (COMESA), H.E. Erastus Mwencha.

At the beginning of the webinar Dr. Mikuriya expressed his thanks to the organizer for the invitation to virtually address an audience comprising of representatives from Customs, Academia and policy makers from the ESA and other regions. He went on to explain the effects of COVID-19 on borders and its impact on Customs administrations. While many borders are closed or the movement of people is restricted for on the health reason, they are kept open for the flow of medical and other essential goods. Customs officers therefore have a duty to not only safeguard the supply chain but protecting it from health risks. In response, the WCO has collected and shared best practices of Customs administrations around the world to mitigate the negative effects of the pandemic, and has provided relevant guidance in collaboration with international organizations, including the World Health Organization (WHO), and maintained the dialogues with the business community. Dr. Mikuriya envisioned the establishment of resilient supply chain supported by technology and trust in the post COVID-19 environment.

H.E Mwencha talked about the economic effects of COVID-19 and indicated that regional integration embodied in the African Continental Free Trade Area (AfCFTA) could be the way forward to address the concerns raised by the Pandemic. Dr. Mikuriya concurred and mentioned the progress made in the ESA region with regards to integration and connection with external markets. Both panelists called for the strengthening of cooperation for a better world and appreciated the discussions. In conclusion, Dr. Mikuriya praised the webinar initiative as a good model for all the WCO regional entities to follow. (WCO)

Key Words: East Africa, WCO, Trade

WEST AFRICA

Protecting trees, empowering women, ensuring incomes – suggestions for a just shea story— As with other commodity crops, when the global community starts to value it, local communities can suffer. Shea is no different. Shea trees grow in different spaces, in savannah woodlands, in fields where they serve to protect cereals and to sometimes mark property. While West Africa’s forests are being slowly cleared to make way for farming, shea remains one of the few trees that is still allowed to grow in farm fields because its presence complements other crops. Researchers have so far had limited success cultivating shea trees, which take 15-20 years to mature and become productive. So for now, the tree’s continued use in rural communities where they are protected and naturally regenerate is perhaps the only way for them to survive.

Traditionally, women have the right to manage and use shea trees, even though arrangements may differ according to ethnicity, settlement history and social status. But with the demand for shea butter increasing, more men are entering the arena, particularly in privileged positions overseeing aspects of production and trade. This is because women often don’t have the power to make decisions about the trees or over the land where trees grow.  

Like other indigenous trees in the Sahel, the shea tree serves multiple purposes. The charcoal derived from its wood is sought after, but due to the high value of shea butter, communities prioritise its use for butter. Customary regulations protect the shea trees in many countries, but the challenges faced by rural youth in making a decent living are putting more pressure on the trees, with the growing number of young men seeking incomes in charcoal production that includes shea trees. This increasing use of shea trees for charcoal and the very slow and sometimes completely absent regeneration of the trees pose a serious problem. If the current socio-ecological system continues to be disrupted, then its promise for rural incomes could swiftly turn to losses.

Ensuring rights - The rights of women and the protection of shea may be better thought of as inextricably linked in the parts of West Africa where the trees grow. By empowering women, shea trees can be better protected. By protecting shea trees, women’s rights can be better secured. We need to ensure that the women who collect shea benefit from being part of the global marketplace – and that they start benefitting now. This means:

1.     Better understanding and accounting for the dynamic and complex land and tree rights in shea producing landscapes.

2.     Including ecological and social safeguards in the shea trade, from the top down and the bottom up. Those who profit the most from the trade in shea have a responsibility to support those who don’t, creating conditions so women can assert their rights.  

3.     Supporting practices and research that foster regeneration. Traditional practices used to consist of a rotation between fallow lands and farmlands, enabling shea trees to regenerate. Given the current high pressure on land, there are very few places that practice fallow agriculture, and the trees are thus disappearing. Scientists are racing to find ways to cultivate shea, but funding is limited.

4.     Recognizing and counting women’s ‘invisible work’ and focus on the most vulnerable. If one compares the amount of effort women make in the shea value chain with what they earn from it, it is clear that there is disparity.

5.     Helping women band together. The Global Shea Alliance empowers women to earn their fair share by helping them organize into cooperatives, and giving them access to storage infrastructure that enables them to sell to larger buyers. Incomes have increased by 30-50% compared to just selling at the local market. The Enhanced Integrated Framework is training small businesses processing shea how to increase production, as well as assisting with access to new markets and promotional skills. (Trade4DevNews)

Key Words: West Africa, Women and Trade, Global Value Chains

SOUTH AFRICA

Seeking debt relief, Angola opens door of oilfield holdings to China – Angola’s need for debt relief is giving China an open door to extend its oilfield holdings as the system of using the country’s oil for debt service breaks down. This month, Angola reduced the number of oil cargoes being sent to China to pay its debts, and also said that it has sought debt relief from the G20. Oil-backed loans account for roughly two-fifths of Angola’s external debt, and most of its obligations to China. Luanda and Beijing “both have good cause to shift away from the current model” of oil being used for debt servicing, says Nick Branson, senior Africa analyst at Verisk Maplecroft in London. Since entering an IMF programme in December 2018, Angola has come under growing pressure from the fund to clear its collateralised debts, says Branson.

Verisk Maplecroft expects Luanda to offer Beijing increased equity stakes in the six oil fields where Angolan and Chinese oil companies are partnered under the banner of Sonangol Sinopec International (SSI). This would be in place of ongoing crude cargoes and would fit in with Sinopec’s strategy of investing in high-quality producing assets, Branson says. Verisk expects Sinopec to acquire part of Sonangol’s stake in Total’s Block 32 or Eni’s Block 15/06.

Branson predicts that the regulator, Angola’s National Oil, Natural Gas and Biofuels Agency (ANPG) will offer Sinopec preferential treatment in discovered resource opportunities, such as marginal fields, where fiscal terms are attractive at lower crude prices, and undeveloped acreage held by dormant indigenous companies. “This would be a far more attractive opportunity than the onshore blocks that ANPG plans to offer as part of its 2020 licensing round,” he says. Debt negotiations with Beijing have already started and it’s “really essential” for Angola to secure some form of relief, says Thea Fourie, senior economist for sub-Saharan Africa at IHS Markit in Centurion, South Africa. She notes that Angola in 2015–16 renegotiated bilateral loans from China and Brazil to reduce repayments. Despite a partial rebound, oil remains well below the $55 per barrel assumed in the original 2020 national budget. At current levels, Fourie says, sizeable fiscal adjustments including government spending cuts and additional financing for a wider fiscal deficit will be needed. (The Africa Report)

Key Words: Southern Africa, Trade, Oil Industry

Zimbabwe to get USD115 million windfall from ZRBF – Nasdaq (Nasdaq: NDAQ) on Wednesday announced the inclusion of the African Development Bank (AfDB.org), one of the world’s largest issuers of social bonds, in the Nasdaq Sustainable Bond Network (NSBN). The NSBN is a global and publicly available platform designed to improve transparency in the market for green, social and sustainability bonds. Ten Bank bonds were added to the platform, including its landmark $3 billion Fight COVID-19 Social Bond launched in March 2020, the largest Social Bond ever launched at the time in international capital markets. Fight COVID-19 remains today the largest dollar-denominated Social Bond. It aims to help alleviate the economic and social impact of the pandemic on livelihoods and Africa’s economies. By joining the Nasdaq Sustainable Bond Network, socially responsible issuers are provided with a unique opportunity to bring attention to their concrete actions in terms of financing climate change and green growth.

“Nasdaq welcomes the inclusion of the African Development Bank on our Nasdaq Sustainable Bond Network especially with its Fight Covid-19 Social Bond, launched to alleviate the impact of the pandemic on African economies and livelihoods,” said Ann-Charlotte Eliasson, VP, Head of EU Bond Listings and Sustainable Debt. “We are proud to offer visibility to an issuer with such a strong social mandate, which the world needs more than ever, especially in these challenging times.” Since the launch of Nasdaq Sustainable Bond Network (bit.ly/2N2BuNN) in December last year, more than 40 issuers from 13 countries have added over 4,000 bonds to the platform, including the Nordic Investment Bank, HSBC and Fannie Mae.

“The Nasdaq Sustainable Bond platform allows us to showcase our work in combating poverty and in helping move the African continent forward. Our Fight Covid-19 social bond is about saving lives and livelihoods,” said Hassatou Diop N’Sele, Treasurer of the African Development Bank. The African Development Bank established its Social Bond framework in 2017 and has raised the equivalent of $5.5 billion through five transactions supporting 89 eligible social projects in 28 African countries as of 31 December 2019. In 2018, the Bank was designated “Second most impressive social or sustainability bond issuer” at the Global Capital SRI Awards and the Bank’s NOK 1 billion 3-year Social Bond issued in 2019 was awarded “Social Bond of the Year” by Environmental Finance.  (Devdiscourse)

Key Words: South Africa, Trade, COVID-19