INTERNATIONAL

ICC Global Survey on Trade Finance confirms industry optimism – The International Chamber of Commerce’s (ICC) 11th annual Global Survey on Trade Finance reveals that banks are optimistic about the evolving nature of trade finance, though unsurprisingly expect various industry-wide challenges and disruption as a result of the COVID-19 pandemic. The 2020 ICC Global Survey report – recognised as the world’s most authoritative review of the trade finance industry – has been released based on exclusive information from nearly 350 respondents in more than 80 countries, bolstered by nuanced contributions from an international array of experts from the Asian Development Bank (ADB), AUSTRAC, Boston Consulting Group (BCG), Coriolis Technologies, HSBC, Kountable, SWIFT and TXF. Survey responses and accompanying commentary continue to reflect evolution and greater receptiveness to innovation in the financing of international trade, whether through traditional techniques or emerging mechanisms in Supply Chain Finance (SCF). The underlying optimism reflected in past surveys is evidenced again this year, as are key topics and areas of global industry focus.

SCF and digital trade are confirmed as key growth priorities for banks, with 86% and 84% of respective respondents calling them an ‘immediate or near-future priority’. However, there is a divide between global and non-global banks on their supply chain finance offerings and investments in digitalisation. Some 64% of global banks surveyed currently offer SCF platforms, compared to just 13% of local banks and 38% of regional banks. Similarly, while 83% of global banks have a digital strategy, only 46% of local banks report having one – highlighting a growing gap between players of different scale and reach. Other topics are also gaining traction with participants – such as sustainability and financial inclusion, whereby some 67% of respondents indicated that their bank now has a sustainability strategy. What’s more, the majority of banks surveyed are also integrating sustainability risks into their credit risk management procedures. In terms of ongoing challenges, banks of all sizes remain concerned by the obstacles to their trade finance businesses’ growth posed by regulation and compliance policies, with 56% indicating ‘significant concern’ regarding regulatory requirements.

Assessing the impact of COVID-19 - Meanwhile, to quantify the likely impact of the pandemic on the trade finance industry, the report contains results from two additional projects. The first is analysis from BCG to model scenarios on how COVID-19 could disrupt trade, suggesting that trade flow values could fall by anywhere between 11% and 30% in 2020. Findings also indicate that the longer any lockdowns persist, the more severe the global and systemic impact will be, as businesses of all sizes – domestic and international in nature – fight to meet financial and commercial obligations and to remain viable. ICC also conducted a supplementary COVID-19 survey to understand banks’ sentiment regarding the initial impact of the pandemic on trade finance, with banks across geographies reporting an average 0-10% decrease in their trade flows in the first quarter of 2020, and most expecting at least a 20-30% decline for the full year.  (ICC)

Key Words: COVID-19, Global Trade, ICC

Global Gas Flaring Jumps to Levels Last Seen in 2009 – Estimates from satellite data show global gas flaring increased to levels not seen in more than a decade, to 150 billion cubic meters (bcm), equivalent to the total annual gas consumption of Sub-Saharan Africa. The 3% rise, from 145 billion cubic meters (bcm) in 2018 to 150 bcm in 2019, was mainly due to increases in three countries: the United States (up by 23%), Venezuela (up by 16%), and Russia (up by 9%). Gas flaring in fragile or conflict-affected countries increased from 2018 to 2019: in Syria by 35% and in Venezuela by 16%, despite oil production flattening in Syria and declining by 40% in Venezuela. Gas flaring, the burning of natural gas associated with oil extraction, takes place because of technical, regulatory, and/or economic constraints. It results in more than 400 million tons of CO2 equivalent emissions every year and wastes a valuable resource, with harmful impacts to the environment from un-combusted methane and black carbon emissions.

“Our data suggests that gas flaring continues to be a persistent problem, with solutions remaining difficult or uneconomic in certain countries,” said Christopher Sheldon, Practice Manager in the Energy & Extractives Global Practice, World Bank. “The current COVID-19 pandemic and crisis brings additional challenges, with sustainability and climate concerns potentially sidelined. We must reverse this worrying trend and end routine gas flaring once and for all.” The top four gas flaring countries (Russia, Iraq, the United States, and Iran) continue to account for almost half (45%) of all global gas flaring, for three years running (2017-2019). When looking at all oil-producing countries, excluding the top four, gas flaring declined by 9 bcm (or 10%) from 2012 to 2019. In the first quarter of 2020, global gas flaring fell by 10%, with declines across most of the top 30 gas flaring countries.

“The World Bank and GGFR are committed to working with governments and industry to end this ‘sticky’ problem. We are working in many of the highest gas flaring countries in the world, helping them develop policies, regulations and practices to end routine flaring. At the same time, we are garnering more commitments from governments and companies to end routine flaring through the Zero Routine Flaring by 2030 initiative. Now over 80 governments and companies, accounting for over half of the world’s routine flaring, have pledged to end this 160-year-old practice,” said Zubin Bamji, Program Manager of the World Bank-managed GGFR Trust Fund. (World Bank)

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

Keep Borders Open – One of the best ways for advanced economies to help poorer countries is to discourage restrictions on trade and immigration and encourage capital flows to countries that need them the most. And they have good reason to do so, as such policies would benefit rich countries as well.  Until recently, we were regularly confronted with images of drowned migrants floating in the waters separating poorer countries from richer ones, from the Rio Grande to the Mediterranean. And although COVID-19 now dominates the news, the pandemic’s economic fallout is likely to exacerbate the global inequalities that drive migration. Many developing countries have so far weathered the pandemic relatively well in public-health terms, but they cannot avoid its economic spillovers. More than ever, poorer countries need the support and cooperation of advanced economies. But the developed world, overwhelmed by its own problems, is turning inward.

Examples of the new policy environment abound. In the United States, the current administration recently suspended new H-1B visas for skilled foreign workers until the end of 2020, and, until forced to backtrack, was threatening to deport international students who do not attend in-person classes this autumn. Meanwhile, European Union policymakers boasted that the bloc’s ambitious COVID-19 stimulus package would be financed in line with a progressive European economic vision. But it includes carbon border taxes that will be anything but progressive, falling disproportionately on developing countries with lower environmental standards. It is hard to imagine a more self-righteous justification of protectionism. Perhaps its only parallel is the US administration’s assertion that prioritizing “the dignity of work” lay behind the requirement in the new US-Mexico-Canada Agreement that 40% of the value of an imported car be produced by workers who earn at least $16 per hour. This is not to give climate-change mitigation or worker protections short shrift. But protectionist measures like these will have no material impact on these important issues, and will hurt developing countries in their current hour of need.

One of the best ways for advanced economies to help poorer countries is to keep their borders open. In the short term, public-health risks may necessitate draconian measures to prevent the coronavirus from entering a country from abroad. But in the long run, developed countries should discourage restrictions on trade and immigration and encourage capital flows to economies that need them the most. But why should rich countries help? Moral arguments aside, why should they not put their own interests first, especially given the domestic challenges they currently face? (Project Syndicate)

Key Words: COVID-19, Global Trade, Regional Integration

Why a sustainable blue recovery is needed - The world’s seventh largest economy based on GDP doesn’t belong to a single country, and isn’t even on land, yet it’s valued at around $3 trillion annually, and supports the livelihoods of more than 3 billion people. It’s the ocean. Worryingly, the ocean and the blue economy it supports are not only in severe decline, the current mode of operating is no longer sustainable. We all rely on the ocean, which covers two-thirds of our planet, to regulate our climate, provide us with food, medicine, energy and even the very air we breathe. Put simply, without a healthy ocean, there is no life on Earth. But the natural assets that the blue economy depends on are fast eroding under the pressure of human activities. For example, 34% of all fish stocks are exploited at unsustainable biological levels or overexploited, while 60% are maximally sustainably fished or managed. This means that we have reached a celling, as 94% of all wild stocks are already being fully utilized, with about one-third exploited in an unsustainable manner. Further, the ocean is becoming acidic due to increasing levels of carbon dioxide being absorbed by it. Rising water temperatures have killed up to half of the world’s coral reefs, and by 2050 there could be more plastic than fish in the ocean. Most of the more than 3 billion people who rely on the ocean for their livelihoods live in developing countries. About 90% of all fishers live in these countries too. Also, 80% of the world’s goods are transported via maritime routes. And between 30% and 50% of the GDP of most small island developing states (SIDS) depends on ocean-based tourism.

Ocean health equals human health and wealth - We are at a crossroads in history. We can’t afford to continue mismanaging this important global resource whose health is intimately tied to ours. Investing in biodiversity, conservation and sustainable practices is key for a peaceful and prosperous future. A regenerative and equitable blue economy that is sustainable must be a vital part of the world’s social and economic recovery from the COVID-19 pandemic. It will help cushion us against future global crises by enhancing the resilience of ecosystems and thus livelihoods. Thankfully, implementing a blue economic approach is possible under the guidance of the UN’s Sustainable Development Goals (SDGs). UNCTAD has identified the pillars of such an approach: economic growth, conservation and sustainable use of the ocean, inclusive social development, science and innovation, as well as sound ocean governance. (UNCTAD)

Key Words: COVID-19, Global Trade, UNCTAD

Trade policy can ensure inclusive prosperity in wake of COVID-19 – Trade-restrictive measures imposed by G20 governments have reached historically high levels, a trend that has only increased with the pandemic. Worldwide, supply chains are also constricting, and some countries are promoting reshoring of production due to both technological change and more inward-looking trade and economic policies. As experts and world leaders assess the intricate supply chain vulnerabilities of our essential goods following COVID-19-related trade restrictions, opportunities arise to realign the structure and substance of trade rules to respond to rising inequalities, climate change and frustrations with trade’s role in development.  That is ironically the call made by the UN’s 2030 Agenda for Sustainable Development to achieve its Sustainable Development Goals (SDGs), as recently reiterated at the World Trade Organization (WTO).  These developments occur at the same time that WTO reforms are on the table as its negotiation and adjudication functions have been weakened by the ongoing U.S.-China trade wars. This provides a rare opportunity to rethink the way our international trade treaties are negotiated, designed and implemented, as well as strengthen the links between trade and development.

We propose a new approach in three areas so trade can be a true engine for sustainable  development and is (1) better aligned with the economic and social development priorities and environmental commitments in the SDGs, the Paris Agreement, and the Sendai Framework for Disaster Risk Reduction; (2) developed and implemented through more transparent and participatory processes; and (3) differentiated and tailored to countries’ specific needs. This would require further research and investment in new and improved tools.

An SDG-aligned new trade regime - The 17 SDGs offer a framework, through their 169 targets and 232 indicators, to bridge concerns on all sides of the trade debate and help replace the zero-sum narrative that was already emerging before the pandemic.   It also provides clear targets to guide the reforms to address the disruptions in supply chains, due to the response to the pandemic and the digitalization of the economy. Substantively, the new model we propose would mean reassessing trade rules in terms of their ability to advance economic, social and environmental dimensions of the SDGs and other international efforts, macroeconomic policies, business and human rights principles, and a balanced approach to the rule of law. (tralac)

Key Words: AfCFTA, Global Trade, SDGs

Redesigning global supply chains post Covid lockdowns – When the shutters came down on China, the European Union and the US in the wake of Covid-19 pandemic, the disruptions to global trade were profound. But, within these challenges there laid opportunities for more resilient and inclusive supply chains to arise. New emerging data shows just how far the impacts of the ‘Great Lockdown’ in the world’s major three supply chain hubs have rippled to developing countries, many of which also went into lockdown. Millions of micro, small and medium-sized enterprises (MSMEs) employing millions of people across the Asia-Pacific, Latin America and the Caribbean and Africa have been affected. As an international community, we have a responsibility to provide a comprehensive response for economic recovery and bolster the resilience of MSMEs against future crises.

Lockdown effects - According to an in-depth survey conducted by the International Trade Centre (ITC) for its just-released SME Competitiveness Outlook 2020, more than half of firms say that they have problems getting hold of the resources they need for production, such as raw materials and equipment, due to lockdowns in other countries. Slower certification processes, temporary trade measures, and logistics problems have also exacerbated these problems. This has led to a global economic as well as health crisis, as the pandemic has challenged governments with finding the most efficient ways of channelling medical and protective equipment and basic items like food to where they are most needed. The surge in demand for health-related products, supply chain disruptions and logistical constraints have made this a herculean task.

But ITC’s research finds that some governments around the world reacted by imposing trade restrictions in the hope that this would increase access to food and essential goods for their citizens. Export bans and other restrictions now cover 73 per cent of global trade in pandemic-related goods such as personal protective equipment and cleaning products. As many as 93 countries have imposed pandemic-related temporary export measures, including export bans or restrictions for medical products and, occasionally, for food. In many places, these measures have reduced, not increased, access to essential goods. This has dented confidence in the potential of value chains to deliver what is needed most in times of crisis.  (The Hindu Business Line)

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

PAN AFRICA

Africa can tackle medical supply shortages through a regional response – Africa can position itself strategically and develop a regional response to avoid healthcare product shortages similar to those triggered by the COVID-19 crisis. That's the main message of Medical Industries in Africa: A Regional Response to Supply Shortages, a new International Trade Centre (ITC) report. COVID-19 severely burdened the global health system, driving a surge in demand for medical supplies such as masks, gowns and gloves. The World Health Organization warned in early March that international production of such goods would have to ramp up by 40% to meet demand. Today, Africa sources only 8% of its health-related products from African suppliers. The continent can become competitive in some of these items while combating the crisis and building its own resilience to future pandemics, the ITC report finds. The African Continental Free Trade Agreement has a key role to play in supporting the regional medical industry, it adds.

'We examine the potential of the African medical supply industry and show how trade can be an important element of the continent's health response, both in the short and long term,' says Dorothy Tembo, ITC Executive Director a.i. 'We suggest a strategic mix of open markets, diversified procurement and stronger regional value chains' to position Africa strategically in the future trade landscape of the global medical industry while safeguarding the health of Africans. Keeping the regional market open for essential health products is critical, the report says. ITC business surveys on non-tariff measures have found that companies in Africa frequently struggle to import medical supplies because of inspections and customs charges. In addition, tariffs are relatively high: African countries apply a 10.3% average tariff on these items, compared with 7.9% in non-African developing economies and 2.9% in developed countries.

African governments should review import regulations and consider temporarily lifting tariffs, taxes and other restrictions that hinder access to these goods - especially as the continent has limited sources of such products. Regional value chains would help diversify global supply  That's why it's also important to diversify suppliers, the report notes. Africa provides just 8% of its own medical products, importing most of the rest from the European Union, China and India.

The report urges policymakers to consider regional suppliers with export growth potential. Diversifying would reduce the impact of export restrictions on essential goods and make the continent less dependent on just a handful of foreign suppliers. Egypt, Ghana and South Africa are viable alternatives for products such as disinfectants and adhesive bandages.  (ITC)

Key Words: Africa, COVID-19, Regional Integration

Africa free trade area to create new opportunities for China-Africa cooperation- The African Continental Free Trade Area (AfCFTA) will create new opportunities for China-Africa cooperation, an Ethiopian expert said on Tuesday. Speaking to Xinhua, Gedion Jalata, a senior advisor to the UNDP South- South Cooperation and a former consultant to UNECA-Capacity Development Division, said the AfCFTA requires strong infrastructure linkage across the African continent, an area where Chinese help is much needed. "AfCFTA will create new opportunities for Africa-China cooperation." "The hard infrastructure spread in Africa is low, with countries like China that have ample experience in infrastructure building well placed to help build road, rail, port and air infrastructures for African countries. A strong Africa will be a strong ally and good partner for China," Jalata told Xinhua. Jalata said trade among African countries is currently only about 17 percent of the total trade in the continent. He said the low infrastructure connectivity among African countries is primarily to blame for low inter-African trade, adding China is supporting African countries through the Belt and Road Initiative (BRI).

"China is also supporting African countries through individual projects like the landmark Chinese built and financed 756 km Ethiopia-Djibouti electrified rail line connecting landlocked Ethiopia to ports in neighboring Djibouti," Jalata told Xinhua. Jalata further said China's support to African countries both through the BRI framework as well as individual projects will boost inter-African economic integration, with China potentially playing the role of key facilitator for the broader goals of AfCFTA. However, Jalata said African countries need to proactively fight new challenges that could derail the goals of AfCFTA like the COVID-19 pandemic, a disease that many African countries are fighting with help from China. "With the rapid spread of COVID-19 pandemic across the continent, many African countries need to boost their health infrastructure to ensure the COVID-19 pandemic doesn't become both a stumbling block to continental economic integration as well as a cross border health crisis," Jalata told Xinhua. (Xinhua)

Key Words: Africa, Trade and Investment, AfCFTA

NORTH AFRICA

Govt. Chief: Capitalizing on Performance of Exceptional Economic Situation Involves Supporting Economy and Prioritizing Social Sectors - The government is working to capitalize on the performance of the exceptional economic situation related to Covid-19, through the support of the national economy, the prioritization of social sectors and the acceleration of digital transformation, head of government, Saâd Eddine El Otmani said Tuesday in Rabat.  Responding to a central question on "public policies in the economic, social and digital sectors in the light of the lessons learned from the repercussions of the health crisis linked to Covid-19", during the monthly general policy session at the House of Advisors, El Otmani said that the Kingdom, under the leadership of HM King Mohammed VI, represents a model in the fight against the pandemic, either at the level of preventive measures put in place to limit the spread of the coronavirus or the decisions taken to combat its repercussions.

As regards support for the economy, El Otmani noted that it is a question of accelerating, reviving and reinvigorating the national economy in the light of the challenges and opportunities of this health crisis, highlighting the economic vision deployed by the government to deal with the negative repercussions of the novel coronavirus in the short and medium term, concretized in particular by the Amended Finance Bill and the broad outlines of an economic recovery plan, while in the long term, the post-coronavirus lessons will be closely linked to the development of the Kingdom's new development model. Concerning tourism, he stressed that the government has an action plan which was elaborated in a participative way with the concerned actors, aiming at preserving the tourist fabric and employment, accelerating the phase of resumption of tourist activities and putting in place the foundations of the sustainable transformation of the sector, on the basis of consultations between the various ministerial departments, through the implementation of the road map for the period 2020-2022.

On the rehabilitation and integration of the informal sector, which accounts for 20 per cent of GDP and offers more than 2.4 million job opportunities, he said that the State has provided a minimum income to households in the informal sector, in addition to self-employed persons whose economic activity has ceased. As for the component related to the promotion of the social sectors, he indicated that the government continues its efforts to support the education and health sectors and the reform of the social protection system, considering that the conditions of the health crisis are more conducive to speeding up the implementation of this project, through the reform of RAMED (health insurance regime for the poor and vulnerable population) and the extension of basic health coverage, as well as the pension scheme to cover all targeted categories with a view to achieving a 90% coverage rate within a reasonable time frame. (MAP)

Key Words: Trade, COVID-19, Morocco

EAST AFRICA

COVID-19 is fuelling acceleration in digital transformation in Africa- The world is increasingly going digital but much still need to be done on the continent to increase internet penetration. According to the International Telecommunication Union, in 2019 only 28 per cent of Africans used the internet and online shoppers are relatively still few. Experts say that in the wake of COVID-19, there is an urgent need for African enterprises to digitalize and tap into enormous opportunities offered by e-commerce.  For example, Kenya, Mauritius, Namibia and South Africa are the only countries where the share of online shoppers exceeds 8 per cent. In most other countries, it is below 5 per cent. Ms Mama Keita, Director of UN Economic Commission for Africa (ECA) in Eastern Africa says that the COVID-19 pandemic changed the way we do business, and this should be an accelerator for digital transformation. Sectors like education, health, trade, food delivery, events and conferencing experienced unprecedented demand for technology.

 Ms Keita was speaking in a virtual dialogue on how women digital entrepreneurs are contributing to the region's digital transformation. She stressed how COVID-19 crisis and containment measures have upended almost every aspect of life, affecting big and small enterprises, disrupting supply chains, causing the decline of export revenues and interrupting the tourism, transport and logistic sectors significantly.  Ms Keita who explained the Socioeconomic Effects of the pandemic in Africa said that Africa’s projected GDP growth of 3.2 per cent for 2020 is now expected to be a sharp contraction. She, however, noted that East Africa’s economic growth, although highly impacted too, is expected to remain the largest in Africa. “COVID-19 pandemic should be used as a game-changer. It should serve as a wakeup call underscoring the urgency to turn Africa’s structural vulnerabilities into opportunities” she noted.  

Ms Keita said that the overreliance on imports from the Rest of the World of essential goods such as medical, pharmaceutical and food items, should be reduced considerably and gradually be replaced with local production.  “This a great occasion to promote industrialization and structural transformation”.  She recalled the urgency of implementing the African Continental Free Trade Agreement (AfCFTA). “The rapid implementation of the agreement could fast-track the industrial development of the continent and render it more resilient to shocks such as the COVID 19 pandemic” said Ms Keita, adding that digital transformation has a significant role to play in this process, just as digital solutions are helping mitigate the impacts of COVID at the moment.  (UNECA)

Words: AfCFTA, East Africa, Regional Trade

Intra-EAC trade up 60pc in decade of Common Market – Trade between East African Community member states has increased by 60.75 percent from $3.72 billion when the Common Market Protocol was launched in 2010 to $5.98 billion in 2018, latest trade data shows. The Common Market Protocol has boosted trade in the region by easing cross-border movement of goods and people, though numerous non-tariff barriers (NTBs) continue to hold back the region’s potential. The volume of trade among EAC member states increased rapidly between the years 2010 to 2013, but dropped for three consecutive years from 2014 to 2016. The EAC Trade and Investment Report shows that the value of intra-regional trade increased 9.4 percent to $5.98 billion in 2018 from $5.46 billion in 2017. This growth was partly attributable to EAC member countries’ increased preference to trading with each other to offset falling demand for the region’s products in European and US markets. According to the report, all EAC member states save for Burundi recorded growth in trade with their regional counterparts. (Trade Mark East Africa)

Words: Regional Integration, East Africa, Regional Trade

WEST AFRICA

‘Nigeria can make $65bn revenue from AfCFTA in 10yrs’ – The Nigerian economy can benefit up to $65bn in revenue from the optimization of the Africa Continental Free Trade Area Agreement (AfCFTA) in the next 10 years. Mr Francis Anatogu, the Executive Secretary, the National Action Committee on Africa Continental Free Trade Area Agreement (AfCFTA) stated this Monday during a virtual press briefing on the activities of the Committee. He said whilst the exact projections for what Nigeria might benefit from the deal is still being worked out, Nigeria could earn up to 10 per cent of the African export market share. “What I can tell you is that Africa on an annual basis imports goods from the rest of the world worth about $540bn per annum. They also import services worth about $140bn or $150bn per annum. So that is the size of the market we are targeting. Obviously Nigeria will take a significant percentage of that market. Our estimation is that Nigeria will take a tangible percentage of that market,” he said. He explained that “if altogether Nigeria gets 10 per cent of Africa’s market worth $650bn of the market share per annum, then we are targeting $65bn in trade for Nigeria per annum” he said. “Can that be achieved over 5 years period? Most likely not but it is something we can aim to achieve by 2030 when we achieve full liberalization. But like I said this is work in progress, the projections will become apparent in about a month or two”.

He explained further that the Committee is kick-starting a strategy workshop series to put together what they found out in terms of implementation requirements and develop strategies to get into Africa and make a success of AfCF. “Out of these strategy series will come the specific projections on what benefits Nigerian can get from the deal.” he stated. “The core rust of the National Action Committee is mobilizing people in the public and private sector, mobilising resources and communicating how we can take advantage of the AfCFTA. It is potentially a game-changer for us in Nigeria. The Africa Continental Free Trade Area Agreement (AfCFTA) which will come into effect January 2021 seeks to liberalize and facilitate the free movement of persons, capital, goods, and services crucial for deepening economic integration, and promoting agricultural development, food security, industrialization, and structural economic transformation. It also seeks to create an expanded and secure market for state parties’ goods and services, among other trade and commerce benefits. (Daily Trust)

Key Words: Africa, Business, AfCFTA

SOUTHERN AFRICA

IMF executive board to consider SA loan request next week – The International Monetary Fund's executive board will meet next Monday to consider South Africa's request for a Covid-19 response loan, according to the board's calendar. The meeting comes after months of engagements between National Treasury and IMF management. SA is seeking a loan of $4.2 billion from the multilateral institution, though certain factions of the ANC have been against this. The IMF is known for issuing loans with stringent conditions related to structural reforms. However, the Covid-19 loan, which falls under the "rapid financing instrument" of the IMF, is not subject to these same conditions. Finance Minister Tito Mboweni has said that the loan being sought will not "undermine" national sovereignty. Mboweni said he also had the support from the ANC to approach the IMF. Treasury has been locked in "protracted" negotiations with IMF management to discuss the borrowing arrangements, Fin24 previously reported.

Monday's meeting is likely to be about the consideration of the term sheet for the agreed amount, said Sifiso Skenjana, chief economist at IQBusiness. The term sheet would include details of the transaction – such as when and how much must be repaid. It is country-specific and considers said country's economic trajectory, he explained. "This is more of a rapid credit facility and ensuring all the boxes are ticked around the utiilisation of that facility," Skenjana said. Government has put together a R800 billion response – a combination of fiscal and monetary policy interventions – in a bid to mitigate the impact of the Covid-19 pandemic.  (fin24)

Key Words: SA, IMF, COVID-19