Today’s Topics:

US applauds Ghana, AU Commission over AfCFTA Secretariat – (Ghana Web)

China, US say talks on implementing trade pact coming soon – (Yahoo)

ECA holds a series of regulatory reviews of the electricity sector in Africa – (UNECA)

Kagame Calls for African Readiness to Acquire Covid-19 Vaccine – (The New Times)

COMESA To Launch Women’s Digital Networking Platform in Member States – (COMESA)

The Foreign Aid Game Is Changing - These Are the Opportunities for Africa- (The Conversation)

WHO, Unicef Urge Safe School Reopening in Africa – (WHO)

Tanzania hands over SADC chair to Mozambique – (The EastAfrican)

Nigeria Accounts for Over 60% Products Under Ecowas Trade Scheme – (Premium Times)

Border closures drop international trade revenue by 42% - (Ghana Web)

South Africa's economy to grow strongly this quarter after record second-quarter fall: Reuters poll – (Reuters)

INTERNATIONAL

US applauds Ghana, AU C'ssion over AfCFTA Secretariat – The United States of America has congratulated Ghana and the African Union Commission on the official opening and handing over of the African Continental Free Trade Area (AfCFTA) Secretariat in Accra. According to the US, the AfCFTA is an important milestone in promoting a sustainable trade and investment environment in Ghana as well as the integration of African economies. The US, in a statement, noted that it is looking forward to partnering with the Secretariat to support regional integration through the AfCFTA. Ghana’s President, Nana Addo Dankwa Akufo-Addo, opened and handed over the Secretariat to the AU Commission at a brief ceremony at the Africa Trade House, on Monday, 17 August 2020. Delivering a speech at the ceremony, President Akufo-Addo stated that Ghana had discharged all of her obligations towards the establishment and the setting up of the office, following the selection of Ghana, in 2019, by the AU Assembly to host the AfCFTA Secretariat.  (Ghana Web)

Key Words: Global Trade, AU, AfCFTA

China, US say talks on implementing trade pact coming soon – Chinese and U.S. trade envoys will hold a meeting by phone “in the near future” to discuss an agreement aimed at resolving a tariff war, a Commerce Ministry spokesman said Thursday. The spokesman, Gao Feng, gave no details of the timing at a ministry news briefing. White House economic adviser Larry Kudlow said Thursday that the talks are part of the process of implementing the U.S.-China trade deal, though he did not say when they would actually happen. He attributed any delay to “scheduling issues.” “It’s part of the process, part of the governance process of this large trade deal,” Kudlow said on Fox News Channel’s “Fox & Friends.” “It was on again, off again, that’s all that was, was scheduling issues. It’s a normal review.” Under the “Phase 1” trade agreement signed in January, both governments agreed to suspend potential additional penalties on each other’s goods in a fight that erupted in 2018 over Beijing’s technology ambitions and trade surplus. The truce called for talks to be held after six months, but those were delayed due to the coronavirus pandemic. A meeting scheduled for last week was to be held online but was postponed.

“Both parties have agreed to hold a call in the near future,” Gao said. Kudlow, President Donald Trump’s top economic adviser, said the administration has “many huge complaints about China, many,” but that both sides are engaged on the deal. He said China has been buying “a ton” of commodities, mostly agricultural goods, and that the U.S. trade representative believes China is “following their script.” “So far, so good,” Kudlow said. The two governments have rolled back some penalties but most of the punitive tariffs imposed on hundreds of billions of dollars of each other's goods remain in place. (Yahoo! Finance)

Key Words: Global Trade, China-US Trade Talk, COVID-19

PAN AFRICA

ECA holds a series of regulatory reviews of the electricity sector in Africa – The Economic Commission for Africa’s Energy, Infrastructure and Services Section (EISS) of the Private Sector Division has undertaken a series of validation meetings related to implementing regulatory review of the electricity sector in Africa to crowd-in private sector investment. Following the development of a comprehensive regulatory review methodology which were validated and approved in December 2019, regulatory and policy data gathering in Ethiopia, Kenya, Zambia, South Africa, Angola, Ghana and Morocco resumed. Draft country reports and national regulatory data are validated subsequently along with senior country experts and representatives from energy institutions in these member States. “The regulatory review initiative contributes to the SDG7 Finance initiative of the ES in the one of its three pillar areas: governance of the electricity sector.”

Mr. Yohannes Hailu, who is coordinating the initiative from EISS, indicated that these were fruitful meetings aimed at validating over 680 regulatory and policy data inputs at national level that enables detailed regulatory review of the electricity sector in Africa to effect greater private sector participation through regulatory improvements in the electricity value chain. Mr. Robert Lisinge, Chief of EISS, further highlighted the importance of the regulatory work not only to enhancing private sector engagement in energy development, but also to infrastructure development at large as regulation and finance remain key areas of ECA’s engagement and efforts to address the infrastructure gap in the “Decade of Action.”

The Ghana national validation meeting took place on July 17 and July 24, with the support of Minister John Peter Amewu. The meeting extensively reviewed the electricity regulatory environment in the generation, transmission, distribution and off-grid systems space with a goal of identifying enablers and current regulatory barriers to upscaling private sector investment in the sector. While Ghana made substantial improvements in electricity sector regulatory reform, the meeting observed the need to further enhance private sector models in the transmission and off-grid segments of the Ghanaian electricity sector. (UNECA)

Key Words: UNECA, Regional Integration, Private Sector

Kagame Calls for African Readiness to Acquire Covid-19 Vaccine – President Kagame requests the AU to appoint an official in engaging global stakeholders to ensure that Africa will be able to obtain the vaccine once it's available. President Paul Kagame has requested the African Union Chairperson to consider appointing an African Head of State to commence engagements to ensure that Africa has access to Covid-19 vaccine once it's available. President Kagame was speaking at a virtual meeting of the African Union Bureau and Chairs of Regional Economic Communities chaired by AU chairperson, President Cyril Ramaphosa of South Africa. Speaking at the meeting, Kagame requested the AU leadership to appoint an official specifically to engage global stakeholders to ensure that the African continent will be able to obtain the vaccine when it's available. This will ensure that Africa does not miss out on the vaccine or get insufficient quantities. "I would like to request the Chairperson to consider appointing one of the Heads of State to work closely with Strive (Masiyiwa) who is already on the task to focus on ensuring that Africa obtains the vaccine once it is available," the President said.

Masiyiwa, the Zimbabwean Business Mogul is working closely with the AU to acquire medical supplies and preventive gear for the continent. At the onset of the pandemic, it emerged that countries making individual orders of medical supplies were having a hard time accessing the supplies due to the magnitude of orders globally as well as some restrictions by some economic regions globally. In response to the challenge, the African Union teamed up and appointed Masiyiwa to lead in the coordination of procurement efforts. If the same model of consolidating resources and orders is implemented in vaccine procurement, experts believe that it could improve chances of vaccine access across the continent. Several vaccines have entered the trial stage with numerous others under development. To speed up the process globally, unprecedented international alliances have been formed and billions of dollars have been allocated. Kagame also noted the need to advance the domestic health financing agenda that was propelled by the AU. (The New Times)

Key Words: Africa, Trade and Investment, COVID-19

COMESA To Launch Women’s Digital Networking Platform in Member States – The Common Market for Eastern and Southern Africa (COMESA) will, starting this week, conduct national launches of a digital platform specifically designed to address the information needs of women in the region. COMESA will be rolling out the 50 Million African Women Speak platform (50MAWSP) in 14 Member States between August and November 2020 largely through virtual means owing to restrictions imposed by the COVID-19 pandemic. The launches will kick off in Zimbabwe on 20 August followed by Seychelles on 25 August. The platform which  is accessible at www.womenconnect.org primarily seeks to economically empower women by providing a one-stop shop for a wide range of financial and non-financial services that women need to start and grow successful businesses. It is jointly implemented by COMESA, the East African Community (EAC) and the Economic Community of West African States (ECOWAS) and is funded by the African Development Bank.

Continentally unveiled during the Global Gender Summit in November 2019 in Kigali, Rwanda, the platform enables women in member/partner States of COMESA, EAC and ECOWAS and other African countries to find information on how to run businesses, where to access financial services, how to create business opportunities online and where to access training resources. The COMESA Secretary General H.E Ms. Chileshe Mpundu Kapwepwe has described the initiative as “a very practical way of speaking to the general agenda of empowering women” with its business resources and custom-built social networking features already attracting thousands of women and connecting them to do business with each other  and share experiences in ways that were previously not possible.According to the COMESA Director for Gender and Social Affairs Mrs Beatrice Hamusonde the platform, which is also available as an app, is timely and the perfect response for the region’s women to turn to as they deal with the social and economic challenges which have resulted from the impact of the COVID-19 pandemic.  (COMESA)

Key Words: COMESA, Trade and Investment, COVID-19

The Foreign Aid Game Is Changing - These Are the Opportunities for Africa – There are growing signs that the aid relationship between the Global South and the Global North is changing fast. Many traditional Western donors are reevaluating the role of aid while keeping a close eye on their own national interests. These changes may not be all bad.  Since the turn of the century aid policies have become both complex and fragmented. Four major international development policies and goalsetting projects were launched in 2015 alone. These are the Paris Agreement, the Addis Ababa Action Agenda on Financing for Development, the Sendai Framework for Disaster Risk Reduction and the 2030 Agenda for Sustainable Development.  The global development agenda now includes multiple goals on poverty reduction, economic growth, the environment and climate change. This unprecedented international policy overload is radically altering the aid landscape. As the world’s most developed countries craft a new narrative that more strongly links aid to climate change and humanitarian crises, African countries can tip the balance in their favour. This can provide an opportunity to shape the future of North-South relations.  (The Conversation)

Key Words: Africa, COVID-19, Trade, Investment Policy

WHO, Unicef Urge Safe School Reopening in Africa -  The unprecedented and prolonged school closures aimed at keeping students safe from COVID-19 are harming them in other ways, World Health Organization (WHO) and UNICEF said today, urging governments in Africa to promote the safe reopening of schools while taking measures to limit the spread of the virus. A WHO survey of 39 countries in sub-Saharan Africa found that schools are fully open in only six countries. They are closed in 14 countries and partially open (exam classes) in 19 others. Around a dozen countries are planning to resume classroom learning in September, which is the start of the academic year in some countries. However, the impact of extended education disruption is significant. It includes among others: poor nutrition, stress, increased exposure to violence and exploitation, childhood pregnancies, and overall challenges in mental development of children due to reduced interaction related to school closures.

In Eastern and Southern Africa, UNICEF finds that violence rates against children are up, while nutrition rates are down with more than 10 million children missing school meals. For girls, especially those who are displaced or living in low-income households, the risks are even higher. For example, following school closures triggered by the 2014 West Africa Ebola outbreak, pregnancy rates among teenagers in Sierra Leone doubled and many girls were unable to continue their education when schools reopened. The long-term social and economic impact of extended school shutdown is also concerning. According to a World Bank modelling, school closures in sub-Saharan Africa could result in lifetime earning losses of US$ 4500 per child. This may also be worsened by reduced earning of the parents who are forced to stay at home to take care of the children especially in households that cannot afford child care services.  (WHO)

Key Words: Africa, COVID-19, WHO

EAST AFRICA

Tanzania hands over SADC chair to Mozambique  – Tanzanian President John Magufuli on Monday handed over the chair of the Southern African Development Community (SADC) to his Mozambican counterpart Filipe Nyusi and commended the regional bloc for its fight against the Covid-19 pandemic. He commended the SADC member states when he handed over the chair during the 40th Ordinary Summit of the Heads of State and Government of SADC in a virtual meeting hosted by Tanzania from Chamwino State House in the capital Dodoma.  "Despite of the outbreak of Covid-19, SADC member states have been able not only to reduce the impact caused by this pandemic but also have been able to continue implementing our regional programmes and projects," he said.  According to the SADC secretariat, the regional bloc's economic growth is expected to shrink by an average of about 3.8 percent in 2020, mainly due to the adverse impact of Covid-19.  In her remarks, SADC executive secretary Stergomena Lawrence Tax, said a number of milestones were recorded during the past year, including timely development of SADC guidelines on the movement of goods and services across the region amid Covid-19.  "The guidelines greatly contributed to containment of the spread of Covid-19 and facilitated movement of goods, and thus minimizing disruptions to economic activities, and mitigating socio-economic hardships to SADC citizens," said Tax. (The EastAfrican)

Key Words: East Africa, Trade, Regional Integration

Women in Burundi Empowered to Produce Good Quality Textile - Women working in the textile sector in Burundi will soon be able to produce high quality cloth after undergoing skills and entrepreneurial empowerment through an incubator project supported by the Federation of Women in Business for Eastern and Southern Africa (FEMCOM) in partnership with African Union Development Agency (AUDA-NEPAD) Spanish Fund. The training which is also facilitated through the Business Incubator for African Women Entrepreneurs (BIAWE) project is expected to contribute to creating jobs for women in Burundi.  BIAWE Project Coordinator, Darlene Hakizimana stated that the women entrepreneurs have been equipped with business skills as well as being trained technically to use industrial sewing machines to manufacture creative and well-designed textile products.  Once trained, the women are encouraged to form cooperatives so as to empower themselves financially and through coaching and mentorship programs for sustainability of their startup business. 

Ms. Hakizimana said that the BIAWE project is creating strategic partnerships for the entrepreneurs with different institutions in the country and beyond.  These partnerships will enable them to link with off takers and market for their products. The activity is expected to create a great opportunity for designers and entrepreneurs who would want to craft their own brand with innovative fashion designs.  Using local arts and traditions with attract local, regional and international customers with reasonable cost and be able to compete with imported textiles’ market from other countries. Some of the items earmarked for production include uniforms, branded wear as well as other textile products including embroidery targeted for the local and foreign market,” Ms Hakizimana added. The Burundi Investment Promotion Authority (API) has commended the initiative saying it will greatly benefit the agriculture sector by promoting the growing of local cotton, which is a raw material for most garments and textiles. (COMESA)

Key Words: East Africa, Trade, Regional Integration

WEST AFRICA

Nigeria Accounts for Over 60% Products Under Ecowas Trade Scheme – Minister of State for Foreign Affairs, Zubairu Dada, says Nigeria has over 60 per cent products under the ECOWAS Trade Liberalisation Scheme (ETLS). He also said the country also had over 2,400 companies and 6,900 products under the scheme. Mr Dada said this at the opening of the National Consultation Workshop on the ECOWAS Post 2020 Vision on Thursday in Abuja. The workshop was organised by the Ministry of Foreign Affairs, Federal Ministry of Finance, Budget and National Planning (MBNP), in collaboration with the ECOWAS Commission. He said the authority of Heads of State and Government during its Ordinary Session in June 2007, had adopted the transformation ECOWAS vision 2020. He said it was aimed at setting clear directions and goals to significantly raise the standard of living of the people through conscious and inclusive programmes. Mr Dada stated that the ECOWAS had established a roadmap to come up with a post 2020 vision for the sub-region. He added that the objective of the workshop was to assess the ECOWAS vision 2020 and to ensure that the ECOWAS post vision reflected the country's national interest and regional aspiration. "The goal of the workshop is to articulate the views of various stakeholders on the impact of ECOWAS vision 2020, the expectation of the people of Nigeria with regards to the formulations of ECOWAS vision 2050 document," he said. Mr Dada said remarkable achievements have been recorded in the past years.

"Positive developments in the West African Countries, including continuous efforts being made to carry out political, constitutional and security sector reform, to improve good governance and democracy, among other achievements," he said. The Permanent Secretary of MBNP, Olusola Idowu, represented by David Adeosun, Director Macroeconomic Department in the ministry, said that the workshop would hold in the six geopolitical zones in the country. Mrs Idowu explained that the workshop would have presentations on economic, social and political challenges affecting ECOWAS member countries and the sub-region in general. She said, "The consultation is to ensure that the post 2020 vision reflects the needs and aspirations of the citizenry. "It will also bring the people together in a Focus Group Discussions (FGDs) forum to share ideas." (Premium Times)

Key Words: West Africa, Trade, Regional Integration

Border closures drop international trade revenue by 42% –  Restrictions on movement of goods and people imposed by governments around the world to contain spread of the coronavirus pandemic has significantly affected revenue generated from international trade, as figures published by the Bank of Ghana show a drastic decline of import duty in the first quarter of the year. The First Quarter Bulletin report shows taxes generated from international trade recorded GH¢829.7million, lower than the budget target of GH¢1.2billion, and still lower than GH¢1.4billion recorded in same period of 2019. Total import duty realised was 34 percent below target, and recorded a year on year decline in growth of 42.5 percent. At the beginning of the year, when the coronavirus took centre-stage in the world, countries starting from China began implementing lockdown measures and restrictions on movement of people, which essentially closed down their factories. Since China is Ghana’s biggest international trading partner, most importers couldn’t receive their consignments as planned in the first quarter.

Then in mid-March, when Ghana recorded its first case of the pandemic, government imposed restrictions on travel outside the country’s borders – a ban that remains in force till date – making it impossible for traders in the import business to also travel and bring in goods; hence the resulting effect on revenue generated from taxes on international trade. It is however expected that the opening of borders next month (September 2020), as announced by the president, will significantly improve the revenue situation in the third quarter – as besides the revenue loss to the country, businesses have seen an astronomic jump in the cost of raw materials as high demand for the few available on the market has led to a hike in prices. Taxes from international trade are not the only revenue generation sector negatively affected by the pandemic. According to the report, domestic goods and services tax also recorded a negative deviation of 18.2 percent against its programmed target of GH¢3.6billion. This category of tax comprised excise duty and petroleum tax of over GH¢1billion, VAT collections of GH¢1.8billion, National Health Insurance Levy of GH¢342.1million, GET Fund Levy of GH¢344.6million, and GH¢102.6million from Communication Service Tax. Then also, taxes from income and property of GH¢4.4billion raked in during the first quarter missed the budgeted target by 11.4 percent, but recorded a year on year growth of 21.1 percent. (Ghana Web)

Key Words: Global Trade, West Africa, COVID-19

SOUTHERN AFRICA

South Africa's economy to grow strongly this quarter after record second-quarter fall: Reuters poll – South Africa’s already recession-hit economy likely suffered its deepest-ever contraction in the second quarter but is set to grow strongly in the third as curbs to contain the coronavirus pandemic ease, a Reuters poll found. Economists lowered their forecasts again and now expect an annualised 44.5% contraction in the April-June quarter, compared with the median estimate in a July poll for a 38.7% fall. That would be by far the biggest drop since comparable records began in 1993, the year before South Africa held its first fully democratic elections. Second quarter GDP data is due early next month. The most pessimistic forecast was for a 53% contraction while even the most optimistic predicted 20% shrinkage. Growth is seen recovering in the third quarter, although the forecast 18.6% rebound is not as sharp as the 19.3% predicted last month. JP Morgan wrote that high-frequency data point to a notable recovery of activity in July and August. However, that will not be enough to offset the previous plunge as coronavirus restrictions closed down swathes of the economy. The 2020 median outlook for an 8.0% contraction is unchanged from last month’s poll but next year’s rebound has been cut to 3.1% from 3.5%. “There is higher forecast risk when modelling the sectors for which monthly data is lacking,” Citi economist Gina Schoeman wrote. “We are confident that the agricultural sector will be a lone positive print given that it remained open throughout with fairly good harvests, but this is a small weight in GDP.” (Reuters)

Key Words: SA, Economic Growth, Business