IMPORTANT ANNOUNCEMENT

Second survey on COVID-19 pandemic and its economic impact on African countries : Survey extended until 20 July - 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 Monday 20 July.

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

World Bank: DEBT Report 2020 – This is the third in the series of Debt Reports for 2020 published online, at regular intervals, over the course of the year.  Their aim is to provide users with analyses of evolving trends and developments related to external debt and public debt in individual countries and regional groups, with primary emphasis on low- and middle-income countries, and to keep users abreast of debt-related issues and initiatives. The reports:

• Complement the summary overview of borrowing trends in 122 low- and middle-income countries presented in International Debt Statistics (IDS 2020), published in October 2019 with regional and country specific analyses on the composition and characteristics of external debt stocks and flows.  The analyses are underpinned by the detailed loan-by-loan data on stocks, transactions (commitments, disbursements and debt service payments) and loan terms captured by the World Bank Debtor Reporting System (DRS); 

• Draw from the high-frequency, Quarterly External Debt Statistics (QEDS) and Quarterly Public Debt Statistics (QPSD) databases to provide users with syntheses of emergent trends in external and public debt, including borrowing patterns and current debt levels in both high-income countries and low- and middle-income countries;

• Provide users with information briefs on current issues and ongoing initiatives aimed at improving external and public debt measurement and monitoring, filling data gaps, and enhancing the coverage and harmonization of international datasets and related data dissemination.

Debt Report 2020 Edition III highlights the new data series launched in support of the COVID-19 Debt Service Suspension Initiative (DSSI) and gives a brief overview of external debt volumes and composition in eligible countries.  The new dataset, which provides users with disaggregated information on the creditor composition of external debt stocks and debt service obligations of DSSI-eligible countries, aims to facilitate analysis of the debt service suspension.  The Report elaborates on the impact of public health measures to combat the pandemic on the administrative capacity of low-  and middle-income countries to compile external debt data.  It also provides a preliminary assessment of bond issuance by public and private sector entities in low- and middle-income countries in 2019, at the aggregate and regional level, and the evolution of bond issuance by DSSI-eligible countries over the past decade.  (World Bank)

Key Words: COVID-19, Global Trade, World Bank

COVID-19 and the seed sector: How countries are navigating challenges – As a key agricultural input, seeds play a fundamental role in developing the resilient agricultural sectors and food systems that underpin food security and nutrition, and support the livelihoods of farmers and other actors in the value chain. The seed industry is truly globalised: A seed lot can be expected to travel through several countries for multiplication, production, processing and packaging before it reaches a farmer. It is also time sensitive, with defined periods for sowing and harvesting different crops. As such, the necessary restrictions on movement and transport put in place by governments to protect their people from COVID-19 have the potential to seriously affect the production, certification, distribution and cost of seed.

Although many countries are working to keep borders open and trade flowing, a number of issues are emerging related to the business of trade. The increased cost of air transport due to the reduced availability of commercial flights may hamper seed supply chains and on-time delivery of seed. Limits on the mobility of people are affecting a variety of production, trade and sales processes. In addition, delays at borders due to stricter safety measures and fewer personnel are affecting timings and costs. Depending on how long the pandemic and associated confinement measures continue, the seed sector and its associated supply chains could feel the impact of COVID-19 long into the future.

What does this mean for LDCs?- The restrictions on movement put in place by governments to protect their people from COVID-19 present a problem for all countries, but are likely to have a greater impact on developing countries and least developed countries (LDCs) that are being particularly hard hit by the economic downturn. These countries are also relatively more reliant on agriculture as a key economic sector, as well as a critical source of domestic food security. At the recent OECD Seed Schemes Annual Meeting, a representative from the African Seed Trade Association (AFSTA) expressed concern that many African countries rely on their neighbours and regional markets for supply. Reduced access to high quality seed of modern varieties may create livelihood and food security issues for some countries, particularly LDCs. Restrictions on movement and transport may limit the supply of seed on the international market, and as prices rise, LDCs may struggle to compete for access. There is a clear need to keep trade flowing to ensure access to essential products.

Many LDCs also depend on trade as a driver of economic growth, producing and selling products to foreign markets. But, the COVID-19 pandemic is having a significant impact on demand in, and the logistics of trading with, key markets for LDCs such as Europe and the US. Many countries in the southern hemisphere play an important role in the contra-season production of seeds for northern hemisphere markets, and this can provide a valuable source of export earnings. For example, maize seed that needs to be sown in spring in Europe may be produced over the winter months in Senegal. March, April and May are critical months for the sowing of spring crops (maize, sunflower, soybean, canola, spring wheat and barley, open field vegetables, etc.) in the northern hemisphere and autumn crops in the southern hemisphere. Although most spring and autumn seed had already arrived in its final country of destination before COVID-19 travel restrictions were put in place, for both developed and developing countries it is uncertain whether seed that is currently being produced for sowing in the next growing seasons will arrive in time. (trade4devnews)

Key Words: COVID-19, Global Trade, Global Business

PAN AFRICA

How global disruption can have local implications – Small businesses are often the most vulnerable to unanticipated events and threats due to their size and lack of resources. These SMEs also often do not have a plan in place to deal with supply chain disruptions. SMEs are important drivers of economic growth in Africa, accounting for up to 90 percent of businesses in sub-Saharan Africa, an SME Initiatives advisory by the International Finance Corporation reports. One thing we’re clearly seeing emerge from the global Covid-19 pandemic is that small and medium enterprises’ (SMEs) supply chains from hub regions across the globe have been severely disrupted on an unprecedented level, and with an unpredictable timeframe for resolution as the virus continues to impact industrial production. Companies that would usually import items to sell, particularly SMEs, are unable to continue with business as usual because of trade disruptions. So, the question we must ask is, how do these SMEs make their supply chain anti-fragile?

Digital commerce platforms and advances in fields like digital analytics and artificial intelligence can significantly help to mitigate the risks of supply chain fragility. Flexible cloud computing solutions, data collection and analysis and automation software can all contribute to the success of SMEs in the digital era. Cloud computing also gives businesses the ability to scale, cost-effectively, to new markets. This is particularly beneficial for SMEs, who often lacked the resources or infrastructure to expand before. Partnerships with companies like Jumia in Kenya and Nigeria also make Microsoft products available to SMEs in local currency. The challenge now is to establish new supply chain avenues within Africa. The African Continental Free Trade Agreement (AfCFTA) can play the role of unlocking innovation, growth and productivity on the continent, especially for its SME segment, by translating spending power into economic development.

To date, intra-African trade is relatively limited; UNCTAD, the main UN body dealing with trade, said it made up only 10.2 percent of the continent’s total trade in 2010. Between 2010 and 2015, fuels represented more than half of Africa’s exports to non-African countries, while manufactured goods made up only 18 percent of exports to the rest of the world. By creating a single continental market for goods and services, the member states of the African Union hope to boost trade between African countries. Some studies have shown that by creating a pan-African market, intra-Africa trade could increase by about 52% by 2022, although these predictions will likely be revised downwards due to the pandemic’s influence on the local and global economy. Regardless, better market access creates economies of scale. Combined with appropriate industrial policies, this contributes to a diversified industrial sector and growth in manufacturing value added.

Digital platforms and the adoption of mobile technology act as effective conduits for the exchange of value, and by aggregating demand across the continent, these platforms give small and medium businesses opportunities to access new markets, and to offer or identify goods and services previously limited by location constraints and marketing costs. These platforms create a diversification effect that boosts the robustness of supply chains. Startups like CoinAfrique, which is based in Dakar, Senegal provide access to markets for SMEs through their free classifieds platform for new and used products, which allows users to make money selling what they do not use and find bargains. The app currently has over one million downloads – and the team are now looking to scale to 10 million active users across francophone Africa. Other platforms, including Biz4Afrika, provide entrepreneurs and SMEs alike with access to valuable business information and resources, finance and markets, providing a boost to small business growth. A powerful force expediting cross-border trade is the accelerating progress of digital technology in areas spanning from trade logistics, automated processing and e-payments to immediate access and exchange of trade information and documentation. (Microsoft News)

Key Words: Regional Integration, SMEs, AfCFTA

COMESA Develops Covid-19 Online Portal to Spur e-Trade - COMESA has developed an online portal to be used by Member States to exchange information on availability of essential products within the region. This is in response to a directive issued by the COMESA Council of Ministers in May this year to develop the platform to support regional trade, during the Covid-19 pandemic. Secretary General Ms. Chileshe Kapwepwe launched the prototype platform to representatives of Member States, during a virtual meeting on 17^th July. The focal points will coordinate with the private sector in populating the platform with information on essential supplies. This is expected to boost local production and address shortages in supply from outside the region. Ms. Kapwepwe said the platform will enable Member States to share information on availability of products and their potential to produce and supply all different types of goods. It will connect buyers to suppliers of essential goods thereby promoting and fostering regional intra-COMESA trade.

As part of the roll out and implementation of the platform, the Secretariat conducted a training programme considering that multiple stakeholder use is needed to make it versatile, functional and sustainable. Secretary General said the platform will also help small-scale cross-border traders and SMEs to have access to market information and linking producers, sellers and buyers. She noted that measures being implemented by Member States such as closing borders to prevent the spread of the pandemic are slowing down economic activity and have severely impacted cross border trade. She said the implementation of the Digital Trade Facilitation programme and other instruments and the liberalization of services remained core to strengthening the stability of the COMESA region against external shocks. COMESA’s strategy in combating Covid-19 include the need to strengthen openness, coordination and collective approach by Member States in facilitating movement of goods and services amidst restrictive measures, and safeguarding the existing trading arrangements and avoid erosion of gains already made as far as liberalization of trade and investments.  (COMESA)

Key Words: Regional Integration, COMESA, Trade

More than three-quarters of polled Africans report income falls on COVID-19 – A five-nation survey by GeoPoll in Sub-Saharan Africa has found that 60 percent of those employed prior to the COVID-19 pandemic have not been able to work as a result of the outbreak, and nearly half of those are unsure if they will have jobs to go back to. Of the five countries surveyed in Sub-Saharan Africa: Ivory Coast, Kenya, Mozambique, Nigeria and South Africa, an even larger proportion, at four out of five of those polled in the survey of 2,500 respondents, reported that their income has decreased during the pandemic, with those in informal jobs, particularly in trade and agriculture, reporting the most widespread and largest falls in incomes.   Overall, some 60 percent of formal sector workers reported income falls, but 88 percent of informal sector workers reporting reduced earnings. The International Labour Organisation estimates that the informal sector accounts for over 80 percent of the workforce in sub-Saharan Africa. “The closure of borders, restrictions on movements, and suspended education and hospitality sectors has wrought financial havoc across the African nations studied, with those in informal employment being hardest hit” said Roxana Elliott, VP Marketing & Content, GeoPoll.

The lifting of restrictions is unlikely to repair the damage quickly, with only 57 percent of the previously employed saying they still have work to return to once the COVID-19 restrictions are lifted. Moreover, just 6 percent of the respondents reported they have sufficient funds to cover their household expenses for more than five months, and most are already running down their savings or relying on credit. Altogether, 30 percent said they would be covering most of their expenses next month through borrowing, and 28 percent by using savings. Moreover, during the pandemic, almost half of all respondents have taken an extra loan to help cover household expenses. “With many sub-Saharan Africans still excluded from borrowing, the impact of the pandemic on income and employment, which has hit the lowest income earners the hardest, will make paying for basic expenses such as food and rent a challenge for millions over the coming months,” said Roxana.

Despite the harsh economic effects being felt, a majority in the nations studied believe their governments should prioritize protecting people from the virus, rather than focus on reopening economies. Of the countries studied, Nigeria was the only one in which a majority feel that reopening the economy should be a priority. However, it was also found that those whose income has decreased significantly were more likely to favour reopening economies. The survey was conducted remotely via SMS from June to July 2020. It was run through GeoPoll’s mobile surveying platform, which enables safe and effective data collection via SMS, voice call, and other modes even when in-person research cannot be conducted.  (Business Capital)

Key Words: COVID-19, Africa, SMEs

Affirmative Finance Action for Women in Africa, ImpactHER and UN Women Policy- Brief exposes disadvantages to women entrepreneurs in post COVID-19 era, offers solutions – Women-led businesses are more vulnerable to closure than those led by men in the era of the novel coronavirus, due to women’s limited access to finance, shifts in consumer behavior, and the increase in women’s household care responsibilities as a result of extended lockdowns. All across the continent, the coronavirus pandemic is wreaking economic havoc and hitting women the hardest, with women-led Small and Medium-sized Enterprises(SMEs) at greater risk of closure as they tend to be smaller and on average, operate in lower profit margin, service-based industries. These and other important findings of a new policy brief highlighting policy solutions to support women-led businesses in Africa in a post COVID-19 world, were released during a webinar organized Wednesday 15 July by the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) program, working with UN Women(link is external) and ImpactHER(link is external).

“The compilation and analysis of real time data is crucial as Africa responds to the pandemic. The surveying of women-led businesses from across sectors and industries provides opportunity to have targeted interventions aimed at keeping these vital contributors to African economies afloat,” said Esther Dassanou, AFAWA Coordinator. The brief, titled ‘Transformative policy solutions to support women-led businesses in Africa in a post Covid-19 world,” contained results of an ImpactHER survey of more than 1,300 women-owned SMEs in 30 African countries on the impact of COVID-19 on their businesses. Over 200 participants joined in the virtual webinar, which was moderated by UN Women’s Elena Ruiz, Women’s Economic Empowerment Regional Policy Advisor for West and Central Africa. “The policy brief and the discussion have put on the table strategies that work for women entrepreneurs in the region. We hope this will contribute to make sure that women entrepreneurs and women-led businesses are at the centre of COVID19 recovery plans, and to help governments and other actors build a post-COVID economy that challenges, rather than reproduces, gender inequalities,” Ruiz noted. Panelists in Wednesday’s seminar were Ada Udechukwu, Head of Women’s Banking at Access Bank, Nigeria; Efe Ukala, Founder of ImpactHer; Sylvia Natukunda, Founder & CEO of yogurt company Farm Reap in Uganda; Kosi Yankey, Executive Director of the National Board for Small Scale Industries in Ghana and Dr. Boutheina Ben Yaghlane Ben Slimane, Director General, Caisse of Deposits & Consignments in Tunisia. They shared perspectives from government, private sector and banking on how women-led businesses in tourism, trade, retail, hospitality, education, personal care and similar sectors have suffered as result of COVID-19, and offered recommendations for immediate, short- and medium-term solutions to mitigate the impact on women-led businesses. (AfDB)

Key Words: COVID-19, Africa, SMEs

NORTH AFRICA

Morocco Economic Monitor – Morocco’s Economic Prospects and the COVID-19 Crisis Impact - The Morocco Economic Monitor (MEM), a semi-annual report from the World Bank economic team, presents recent economic developments and economic policies. This June 2020 MEM issue includes a chapter on Morocco’s economic outlook in light of the COVID-19 pandemic and the consecutive economic crisis it generated. This issue covers macro-economy to business environment and private sector development as well as prospects for economic rebound. Over the past two decades Morocco has achieved significant social and economic progress due to large public investments, structural reforms, along with measures to ensure macroeconomic stability. The COVID-19 shock is, however, abruptly pushing the economy into a severe recession, the first one since 1995. The economy is expected to be doubly impacted by domestic and external economic shocks. Real GDP is projected to contract by 4 percent in 2020, a sharp contrast to the 3.6 percent expansion projected for that year prior to the outbreak.

The labor market and the private sector are severely impact by the crisis. The combined negative effects have led to widespread job and income losses, especially in the informal sector where 66 percent of workers lost their jobs. Government assistance has partly mitigated income loss for 19 percent of households, particularly in the informal sector. Morocco’s twin deficits are projected to deteriorate but remain manageable. Despite lower imports, the current account deficit is expected to widen to 8.4 percent in 2020 reflecting sharp declines in goods export, tourism revenues, and remittances. On the fiscal front, revenue (excluding those from the COVID-19 Fund) are projected to materially contract while expenditures are projected to increase in 2020 on the back of additional spending on health, social protection, and other COVID-19 policy responses. As a result, the overall fiscal deficit is projected to widen to 7.5 percent of GDP in 2020, almost 4 percentage points larger than projected pre-COVID-19. Both public and external debt are projected to rise but to remain sustainable. The government’s response to date has been swift and decisive. The government’s proactive response enabled the country to avoid a massive outbreak, thus saving lives. The COVID-19 crisis led to the preparation of a Revised Finance Law, the first in 30 years. Continued good policy measures are critical both to shorten and lessen the economic, social, and health trough, and to hasten the recovery; these include a clear roadmap for lifting containment measures as well as an economic recovery plan. (World Bank)

Key Words: World Bank, COVID-19, Morocco

Algeria plans new economic and financial reforms to save $20bln in 2020 – The government of Algeria aims to save $20 billion by the end of this year through the implementation of new economic and financial reforms. The information was reported following a council of ministers held on July 13. According to President Abdelmadjid Tebboune (pictured), the reforms target the banking, tax, and commercial sectors. In the coming years, actions will focus on accelerating the digitalization and modernization of “the tax, land management, and customs sectors” and pursuing the implementation of the Islamic finance procedure to “stimulate the collection of savings and create new sources of credit.” The government also wants to recover the money circulating in the informal market and re-inject it in the formal market. Plans are also underway to recover, from the country's gold reserves, “funds frozen for decades in customs and seizures, ports and airports” and integrate them into the national reserves.

In the commercial sector, the government intends to reduce the level of imports, particularly services and maritime transport of goods, to preserve the foreign exchange reserves affected by the double effect of the covid-19 and the fall in oil prices. The pandemic that has already affected at least 19,206 people in Algeria continues to wreak havoc. The country anticipates a decline in its macroeconomic performance this year. In the first quarter of 2020, for example, the trade deficit widened by 26% compared to the same period in 2019, while the authorities expect the level of foreign exchange reserves to drop from $51.6 billion to $44.2 billion. The Algerian government announced in May that the state would now halve its 2020 operating budget. According to Finance Minister Aïmen Benabderrahmane, the country is ready to inject “immediately” for investment and economic recovery the equivalent of 1000 billion dinars ($7.7 billion) “to which should be added available $10 billion.”  (ecofin agency)

Key Words: Algeria, Economic Growth, Trade Growth

EAST AFRICA

The one-stop border post between Tanzania and Kenya, a symbol of East-African integration– Naftali Elude Mzota, a driver for the Impala Shuttle Company in Tanzania, has been driving between Tanzania and Kenya for over 23 years. Asked about the difficulties of crossing the border, Mzota sighs. "Customs clearance used to be a real challenge here, because there were two borders. You had to go through at the Tanzanian immigration office, and then repeat the exercise on the Kenyan side. It used to take between one and a half and two hours," he said, smiling. "That's all changed now. When passengers arrive, it doesn't matter which side they come from, a single checkpoint does all the administration and they are able to carry on across the border." The land border between these two East African countries, now has just a single border post. This project, the One-Stop Border Post, was set up at Namanga, a town of 16,000 inhabitants that straddles Longido District in Tanzania and Kenya’s Kajiado County in Kenya.
By cutting the crossing time to a maximum of half an hour, the One-Stop Border Post project has boosted trade and tourism between Kenya and Tanzania. To set up the border post, the African Development Bank in 2007 approved $185 million in funding, of which $108 million went to Kenya and $77 million to Tanzania. The Bank co-financed the project with Japan International Cooperation Agency.

"Thanks to the new crossing point, road traffic has increased," said Edward Wilson Lyimo, the owner for more than 20 years of a hotel on the Tanzanian side of Namanga. "Businesses have become profitable and this new crossing has really helped us. Now, we can do business in both countries." The development has boosted the regional economy by streamlining, along with improved roads, the movement of people and goods across the border.
"The idea now is to reproduce this initiative on other borders, such as that with Ethiopia, the Democratic Republic of the Congo and Zambia," said Kenneth Bagamuhunda, Director-General, Customs and Trade of the East African Community (EAC). The African Development Bank's is working to support regional integration, cross-border trade, tourism, the socioeconomic development of the region and poverty reduction. The One-Stop Border Post project is also advancing regional cooperation, facilitating cross-border dialogue and the signing of treaties between EAC member countries. It supports the ongoing work of the Facilitation of Cross-Border Movements Committee, set up in 1998 by the EAC Commission to address passports, travel documents for businesspeople, visas and other matters identified in the Tripartite Agreement on Road Transport. (Ecofin Agency)

Key Words: Regional Integration, East Africa, Regional Trade

WEST AFRICA

Sierra Leone announces construction of $1.4bln polyvalent seaport – Sierra Leone has revealed plans for the construction of a seaport. John Tambi, Head of the Presidential Infrastructural Initiative (PII), said talks are in advanced stages for the implementation of the project. The facility, which will be located near the village of Niti, on the island of Bonthe, about 150 km south of Freetown, will integrate an industrial free-trade zone. The feasibility study, completed in December 2019, was carried out by Strong Hold Finance Group. According to Tambi, investors have already expressed interest in the project, and “we are now moving to the contract agreement stage and I’m sure we can start the project this year.” The official noted that the project is valued at $1.4 billion and will be carried out through a public-private partnership. The government of Sierra Leone will retain at least a 25% stake in the port and associated facilities. The IIP was created in 2018 by President Bio, shortly after he took office. The mandate of the initiative is to plan, design, and implement strategic and transformative infrastructure projects covering all sectors, using innovative financing methods. It is directly supervised by the Office of the President. (Ecofin Agency)

Key Words: West Africa, Regional Integration, Investment Policy

SOUTHERN AFRICA

WCO Supports Liberia Time Release Study project virtually- Within the framework of the WCO Capacity Building Programs for the Liberia Revenue Authority (LRA), the WCO delivered a national workshop on Time Release Study (TRS) to support the national efforts of the Customs Administration of Liberia in moving forward with its TRS project. The workshop was organized from the 8th to 9th July 2020, virtually, as part of the preparation for the Liberia TRS Working Group (WG) to start drafting the TRS report. The virtual workshop was conducted using the WEBEX platform. During the discussions, the WCO’s experts were informed of the state of play regarding the implementation of the TRS in Liberia, including actions foreseen to be carried out, such as familiarization of the WCO TRS Software, preliminary analysis using sample TRS data, modes and procedures to be included in the national study, and the initial tentative period for data collection. Furthermore, the experts were also briefed on current issues impacting the national TRS project in the current context of the COVID -19 pandemic. The workshop provided the opportunity for the experts, Liberia Customs officials and one official representing a national terminal to analyze some of the current issues impacting the TRS project in Liberia and to design a solution to address the challenges. At the end of the workshop, a participant representing the national Customs Administration of Liberia expressed to the WCO expert that they will make every effort to ensure that the TRS project is finished before the end of 2020. It is important to highlight that in spite of the existing uncertainty globally, the Customs Administration of Liberia is actively engaging with trade stakeholders to carry out a TRS in Liberia. The Administration is planning to make maximum use of technology to achieve many of the goals defined within the context of its national TRS project.  (WCO)

Key Words: WCO, Liberia, Trade

SA and EU move towards rebuilding frayed relation –South Africa and the European Union took a big step towards rebuilding their rather neglected relationship this week when they held their first ministerial conference in four years. South Africa is the EU’s only “strategic partner” in Africa and one of only 10 in the world, yet a combination of factors, including a cooling of relations during the troubled Zuma presidency, have kept them from fully developing the partnership. “Strategic partners should speak more often,” EU ambassador to South Africa Riina Kionka told Daily Maverick after Tuesday’s meeting. “And we have a lot to talk about.” She noted that the last ministerial conference had been in 2016 – although the last summit between President Cyril Ramaphosa and the EU’s council and commission presidents had taken place in 2018. The meeting was important for the South African ministers and their EU counterparts to get to know each other better as well as to tackle problems. The meeting, held by video because of the coronavirus pandemic, was co-chaired by SA’s International Relations and Co-operation Minister, Naledi Pandor, and her EU counterpart, Josep Borrell, the High Representative of the EU for Foreign Affairs and Security Policy and vice-president of the European Commission. They had met in person once before, at the Raisina Dialogue in India in January, Kionka said. 

She said the meeting covered a wide range of political, economic, environmental and social issues. But trade took up about 60 to 70% of the two-and-a-half-hour meeting, she said, with “trade irritants” to the relationship figuring prominently.  The meeting had been particularly important to bring together South Africa’s Minister of Trade and Industry, Ebrahim Patel, and EU trade commissioner Phil Hogan, who had been battling to align their diaries for some time. Eventually, they had held two preparatory meetings over the last week and then the full ministerial meeting on Tuesday. Finance Minister Tito Mboweni and EU International Co-operation Commissioner Jutta Urpilainen also attended.  Kionka said the ministerial conference discussion had three basic components. The first was working together in the international sphere. The EU believes it is especially important to boost co-operation this year, as South Africa is both on the UN Security Council and c hairs the African Union. 

The second component was about broad economic policies and building a better, just, post-Covid transition towards a greener global economy. The third component of the discussions was trade. “And quite a few issues remain. But there was progress.”The two sides agreed to co-operate more on international issues, particularly on the UN Security Council, where South Africa is a non-permanent member until the end of this year – and especially because it is chairing the AU. The main areas of co-operation are on women, peace and security which are a big priority for South Africa. It includes greater participation of women in resolving conflicts as well as taking more effective measures to prevent violence, including sexual violence, against women and girls in conflict. The EU side was impressed with Pandor’s disclosure that 15% of South Africa’s UN peacekeepers are women, Kionka said. (Daily  Maverick)

Key Words: South Africa, EU, COVID-19