ATPC DAILY DIGEST 3 SEPTEMBER 2020

African businesses shifting towards new technologies in response to COVID-19 pandemic – The Economic Commission for Africa, jointly with International Economics Consulting Ltd, released the report of the second comprehensive survey on the COVID-19 pandemic and its economic impact across Africa. The online survey was conducted from 16 June to 20 July to provide insights into the effects of the pandemic on economic activity for businesses across Africa, identifying the challenges they face as well as their responses.

The results of the survey show that the top three challenges faced by companies are: a) reduced opportunities to meet new customers; b) drop in demand, and; c) lack of cash flow. Companies have faced serious disruptions in both supply and market due to COVID-19, with unfair pricing seen as a major concern. Feedback from companies about government assistance is mixed with nearly two-thirds of the respondents indicating from moderate to no satisfaction. As a consequence, 50% of the respondents approached financial institutions from which 25% got positive responses; among the latter, 42% were not satisfied with the service due to high interest rates, delays and/or collateral requirements.

When it comes to their performance, companies are currently working at about half their capacity. Company revenues are expected to drop by about 18% in 2020 (as compared to 2019) and lay-offs to increase by 20% in the next three months. Still, the situation could have been worse if a significant share of employees (27%) had not been able to work remotely. It is worth noting that remote working options proved more challenging for Micro, Small and Medium Enterprises (MSMEs), particularly those dealing with goods, whose performance has been relatively more negatively affected than larger-sized companies and more generally those involved in services. Moreover, women are more at risk of being laid-off than men, which is consistent with the fact that, from interviewed companies, women tend to be employed more in MSMEs in which their primary business is related to goods. (UNECA)

Key Words: UNECA, COVID-19, Business

INTERNATIONAL

Value of Dubai Chamber members’ exports to Africa up 20% in June 2020 – Member exports to North Africa accounted for around two-thirds of the export value to Africa for June, or AED 2.05 billion ($558 million). Dubai, UAE: Dubai Chamber of Commerce and Industry recorded a 20% month-on-month (m-o-m) increase in the value of member companies’ exports to Africa in June 2020, which reached AED 2.94 billion ($800 million). The value of exports and re-exports to Africa, tracked by Certificates of Origin (COOs) issued to Dubai Chamber member companies, signalled a rebound in trade activity with Africa to average levels seen during the January-March 2020 period.

A rebound in trade activity - Of the AED 883 million ($240 million) worth of members’ exports and re-exports targeting Sub-Saharan Africa in June, AED 508.3 million ($138.3 million) went to East Africa, AED 249.5 million ($67.9 million) to West Africa, AED 92 million ($25 million) to Central Africa, and AED 33.3 million ($9 million) to Southern Africa. Despite the wide disparity in value among the sub-regions, West Africa, along with Central Africa, were the main drivers of the rebound seen in June. Member exports to North Africa accounted for two-thirds of the export value to Africa for June, or AED 2.05 billion ($558 million), followed by Sub-Saharan Africa AED 883 million ($240 million). On a regional level, the value of members’ exports to Central Africa saw the biggest m-o-m increase of 48%, followed by North Africa (25%), West Africa (12%) and Sub-Saharan Africa (8.6%). (Dubai Chamber)

Key Words: Trade Agreement, Dubai, Africa

WTO faces uncertainty amid Trump threats, successor search – The World Trade Organization is now leaderless. The task facing Roberto Azevedo's successor is mammoth, from the need for reform to fighting protectionism. The process to succeed him is also quite labyrinthine. It's a role that comes with a salary and allowances package of more than $500,000 and a title conferring considerable global prestige. Yet whoever takes up the now vacant position of director-general of the World Trade Organization will have an unenviable job on their hands. Brazil's Roberto Azevedo, whose period in charge ended this week after seven years, has left the role a year earlier than originally planned. He said the decision was personal, but few would blame him for wanting to get out of an organization that has been beset by multiple problems and criticism in recent years.

The impossible job?- The most fundamental question facing the global trade body regards its relevance. When the WTO was founded in 1995 as the direct descendant of the General Agreement on Tariffs and Trade (GATT), the mood around global trade was unrecognizable from how it is in 2020. Back then, there was a clear trend toward liberalization and the removal of trade barriers between nations. The appetite for trade deal negotiations was considerable. But the last few years have seen the picture change dramatically. That impulse toward liberalization and negotiation has been replaced by protectionist instincts. There is evidence that the globalization mindset which made the WTO possible in the first place is in retreat across the world. (DW)

Key Words: WTO, COVID-19, Global Trade

Online Repository of Contributions to the Policy Hackathon on Model Provisions for Trade in Times of Crisis and Pandemic – This Online repository provides access to written contributions submitted by participants to the Policy Hackathon on Model Provisions for Trade in Times of Crisis and Pandemic in Regional and Other Trade Agreements. The contributions featured in this Online repository have been made available as received and are under the sole responsibility of their author(s). Upon submission, participants have declared that their contribution is their own autonomous work, that all the sources have been correctly cited and listed as references and that any eventual errors or inaccuracies are the fault of the authors. The contributions do not represent the views of the United Nations or that of any other Policy Hackathon organizing and participating institutions. The inclusion of the contributions in the online repository does not constitute an endorsement of the contents by the United Nations and Policy Hackathon organizers. The contributions are unedited work in progress willingly contributed by their authors during the Policy Hackathon and are publicly accessible for all to use at their own risk with reference to the author(s). It is hoped that this emerging body of knowledge will provide a useful basis and inspiration for trade policymakers and negotiators to develop regional and other trade agreements that can increase trade resilience in times of crisis and pandemic and support recovery and building back better. To make it easier to browse through, the contributions have been grouped according to different topics/categories. (UNESCAP)

Key Words: UNESCAP, COVID-19, Global Trade

PAN AFRICA

Reassessing the magnitude of the growing Russo-African ties – Since the dawn of this century, Russia has made systematic efforts, as a rising power, to recapture its erstwhile position in world politics. These efforts have been facilitated by the domestic political stability under decisive leadership of President Vladimir Putin. Consequently, in 2014 Russia annexed Crimea, fuelled pro–Russian rebellion in Eastern Ukraine, re-established its hegemony over the near east and ensured continuation of the Assad regime in Syria through military support since 2015. Russia’s interactive ties with Turkey, Iran and Syria have made it a major player in west Asia. Russia’s support to Belt and Road Initiative (BRI) of China and growing ties with India and Pakistan has also enlarged its role in Asia. Russia, like China, the USA, France, and India, has steadily started pursuing its interests in the continent of Africa. In fact, the first Russia-Africa summit, organised at Sochi in October 2019, has set the pace for promoting the ties between Russia and 54 African countries in multiple areas of common concern. Forty African leaders and 3000 businessmen had assembled in the Sochi summit. By establishing its presence on a Pan African scale, through the Sochi summit, Russia also attempted to enhance its global stature. Indeed, the Russo-Chinese cooperation in the Eurasian region as also Russia’s significant role in international organisations such as G21, Shanghai Cooperation Organisation (SCO) and Brazil, Russia, India, China and South Africa (BRICS) abundantly highlight the growing role of Russia in world politics. In view of countering the formidable Russo-Chinese partnership, John Bolton, US National Security Advisor, announced new American strategy in 2018 to serve the American interests in Africa involving areas from promoting African development to combatting terror. (ORF)

Key Words: TA, Africa, Russia

Rethinking Healthcare Systems in Africa – African countries have the advantage of being able to adopt the most recent information technologies without having to adapt them to legacy IT facilities. In doing so, healthcare could not only be cheap and cost-effective, but also help reduce bottlenecks, waiting times, and dependencies on health institutions especially where health workers are scarce. To build open platforms, a common infrastructure should first be built to enable coordination and interoperability across the entire health system: an infrastructure bringing together medico-administrative data and all forms of medical data under the aegis of data-sharing and communication between various institutions in order to gain agility. However, this infrastructure has a cost because the volumes of health data are expected to grow exponentially over time. Mobile health technology holds the promise of taking healthcare technology outside the four walls of medical centres and transforming it into a much more modular network. The critical part of this open system is embodied by access to health data that could be used, reused, and shared to facilitate coordination between different health professionals as well as other institutions and private sector companies such as insurance and pharmaceutical companies or any entity willing to conduct a research project of general interest.

In this context, African governments have an obligation to set appropriate rules for the use of patients’ data. Failure to do so represents a severe abdication of their responsibilities. In 2016, the African Union Commission in collaboration with Symantec released a report that found out of 54 countries in Africa, 30 lacked specific legal provisions to fight cybercrime and utilize electronic evidence. Yet, any law regulates only two aspects: access to data and the conditions under which data is transmitted. Cybercrime, however, cannot be defeated by any single law. It has become clear that the collaboration of all stakeholders in the governance and operation of the Internet is required to protect the security and privacy of data including at the national and continental levels. (International Policy Digest)

Key Words: Africa, COVID-19, Regional Integration

COVID-19 Crisis Amplifies the Urgency for Economic Diversification in Africa – The low level of economic diversification in Africa is a leading factor to economic fragility across the continent. The global crisis caused by the COVID-19 pandemic has magnified the risks of low levels of economic diversity and the reliance on limited economic activities, products or channels for trade and foreign direct investments. For example, over-dependence on one type of natural resource (e.g. oil), singular economic activities in agriculture, trade with limited number of countries, over-reliance on a narrow range of exports and/or imports and trade agreement restricted to specific region or countries can be detrimental to the economy.

Africa is endowed with minerals and natural resources. Algeria, Angola, Libya and Nigeria together produce a substantial portion of the world’s crude oil; South Africa and several other African countries are a major source of the world’s gold output; Botswana, the Democratic Republic of Congo (DRC) and Sierra Leone are major sources of diamonds; yet other strategic minerals such as chrome, coltan, bauxite and manganese are major export products from a number of African countries. A good proportion of the world’s tropical hard wood, coffee, cocoa, and rubber exports are produced in Africa. The foreign exchange earnings from these and other natural resources constitute a major source of Africa’s income.

The African Economic Research Consortium (AERC), has undertaken numerous policy oriented research projects to address the issue of low economic diversification and lack of economic structural transformation and to provide appropriate policy advisory for the required reforms and interventions. Some of these studies include: The Fragility of Growth in Africa; Natural Resource Management and Climate Change in Africa and Natural Resource Management in sub-Saharan Africa: Consequences and Policy Options for Africa. In a recent AERC Biannual conference on the theme of “Business environment, competitiveness and growth in Africa,” one paper by Shanta Devarajan focused on “African Competitiveness: What do Natural Resources have to do with it?”. Devarajan makes the point that the effect of natural resources is not the traditional Dutch-disease effects, but rather the indirect effect of natural resources on governance (public expenditures, etc.) and the effects of governance on competitiveness. This seems to provide the links and the explanation why the resource curse has been so pervasive in African economies. The policy orientation in these studies is geared towards bringing policy makers in Africa up to speed on global knowledge frontier of managing natural resources and appropriate economic management under sustainable conditions. (AERCAfrica)

Key Words: Africa, COVID-19, Regional Integration

African carriers post 3% dip in July freight demand, says IATA – The International Air Transport Association (IATA) released July data for global air freight markets showing air cargo demand is stable but at lower levels than 2019. African airlines posted a contraction of 3 percent in July. This was down from a 3.8 percent increase in demand in June. The small Africa-Asia market continued to support the region’s performance. International capacity decreased 33.7 percent. Global demand, measured in cargo tonne-kilometers (CTKs), fell by 13.5 percent in July (-15.5 percent for international operations) compared to the previous year. That is a modest improvement from the 16.6 percent year-on-year drop recorded in June. Seasonally-adjusted demand grew by 2.6 percent month-on-month in July. Global capacity, measured in available cargo tonne-kilometers (ACTKs), shrank by 31.2 percent in July (32.9 percent for international operations) compared to the previous year. This is a small improvement from the 33.4 percent year-on-year drop in June. Belly capacity for international air cargo shrank by 70.5 percent in July compared to the previous year owing to the withdrawal of passenger services amid the Covid-19 pandemic. This was partially offset by a 28.8 percent increase in capacity through expanded use of freighter aircraft. Economic activity continued to recover in July reflected in the performance of the Purchasing Managers’ Index (PMI). The new export orders component of the manufacturing PMI rose by 3.5 points compared to June, and was up 19.8 points since April. The PMI tracking global manufacturing output returned to above 50, consistent with month-on-month growth in output. (Logistics Update Africa)

Key Words: Africa, COVID-19, Regional Integration

Debate rages as governments eye excess digital profits – As part of measures to widen tax nets in Nigeria and other African countries, the need for countries to invest in technologies and track digital transactions has been echoed. This formed part of observations made at the just concluded meeting of the African Tax Administration Forum (ATAF) and the African Union Commission (AUC), with the support of the African Development Bank (AfDB), the 4th High-Level Policy Dialogue under the theme: ‘Taxing Rights For Africa In The New World and Effects Of Covid-19: The Role Of Tax Policymakers And Tax Administrators,’ held virtually in Addis Ababa, Ethiopia. Those who led the charge were the Executive Secretary, ATAF, Logan Wort; Chairman, ATAF Executive Council, Muhammad Nami, and Commissioner of Economic Affairs, African Union Commission, Victor Harison. They noted that the COVID-19 pandemic had brought to the fore the focus on the rapidly growing shift to digitalised economy across the globe. The social and economic lockdowns imposed by government worldwide has pushed many individuals and companies onto online platforms to conduct their business. While other sectors of the economy have come to a standstill, the digital sector has boomed. This has huge implications for business models going forward and makes it even more urgent that solutions be found for the taxation of the digital economy that are equitable for source and market jurisdictions.

In Nigeria, for instance, amidst a general downtrend across sectors leading to a dip in the country’s Gross Domestic Product (GDP) by six per cent, the telecommunications sub-sector shone in the second quarter of this year as it grew by 18.1 percent. This performance led to a 15.09 percent growth in the real GDP of the Information and Communications Technology (ICT). Economy experts noted that the performance of the telecoms sector was not unexpected, as it remained the only active sector when the economy was shut down in the second quarter due to the COVID-19 pandemic. Interestingly, it is expected that the growth will be sustained as the telecommunications industry remains a major driver of the economy even before the pandemic. According to the National Bureau of Statistics (NBS), the ICT sector contributed 14.06 per cent to total nominal GDP in Q2 2020, higher than the rate of 13.83 per cent recorded in the same quarter of 2019 and also higher than the 10.31 per cent it contributed in the preceding quarter. (The Guardian)

Key Words: AU, COVID-19, Regional Integration

"It is imperative that we rebuild the tourism sector" – Since Africa is home to many developing countries, including 16 which are landlocked, it is faced with immense pressure to improve its connectivity to global trade. As these vulnerable economies continue to lag behind in the development of key infrastructure, such as road and rail transportation, they have considerable challenges benefitting from trade opportunities due to unreliable movement of their imports and exports, which drives up trade costs. It is against this background that the United Nations Economic Commission for Africa (UNECA) mooted the idea of a Trans-African highway back in 1971, towards the conclusion of the African Independence era. The highway is not just one proposed road, but a mosaic of nine highways extending nearly 40,000 miles across the continent, connecting major African port cities. The longest connects the Mediterranean Sea at Libya’s capital of Tripoli to the Atlantic Ocean off South Africa’s Capetown. The east-west highway connecting the major metropolitan powerhouses of East Africa and West Africa (the ports of Lagos, Nigeria and Mombasa, Kenya) is among the shortest, but it is a very challenging transport corridor.

Although more than half of the road network has been paved, there are numerous missing links, especially on the highway linking Mombasa with Lagos. Countries like the Central Africa Republic and DRC (Democratic Republic of Congo) along this route have a low coverage of paved roads, and tracks are impassable due to difficult terrain or after rain. Militia wars and conflicts are partly to blame, as infrastructure development can only happen in times of peace and stability. The persistent unrest in Somalia led to its exclusion from this transcontinental highway network. Only Nigeria, Cameroon, Uganda and Kenya have completed their roads, with huge parts connecting Uganda, DRC and Central Africa Republic unfinished and in poor condition. This contributes to factors that cause Africa to incur higher transportation costs - in the range of 50-175 percent higher than the developed world - compounded by the fact that most of the African countries are net importers of food and other essential products, like agricultural inputs. (UNECA)

Key Words: UNECA, Africa, Tourism Sector

How Blended Finance Can Accelerate MSME Growth in Africa – As policy makers grapple with the reality that trillions still need to be raised to bridge the gap, innovative finance is proving to be instrumental in offering asset owners and investors options to meet strong policy action with improved funding, especially for underserved sectors like micro, small and medium enterprises (MSMEs). Globally, MSMEs play a crucial role in the economic development and social mobility of millions of people, through the provision of public goods and services, and creation of jobs. In Africa, MSMEs are estimated to contribute to 70% of the region’s total employment. This number should balloon, given the rising population expected to enter the workforce in the next 10 years, but won’t if MSMEs cannot grow. Without adequate support to the MSME sector , unemployment, poverty , and other development challenges will worsen, ultimately delaying sustainable development and economic prosperity on the continent. According to a study by the International Finance Corporation (IFC), MSMEs face an astounding finance gap of over $331bn in Africa. To meet the staggering gap in funding to support MSMEs in the region, there needs to be a greater adoption of innovative forms of financial structuring like blended finance to incentivize commercial investors to invest in MSMEs working towards a sustainable and prosperous Africa. (The Africa Report)

Key Words: SMEs, Africa, Trade

First Local Content Committee Meeting Calls for Local Content as an Enabler of Africa’s Economic Recovery – The African Energy Chamber held its first meeting with its Local Content Committee today, placing local content development at the core of its activities. With several established markets like Nigeria or Angola and frontier energy markets such as Senegal or Uganda, the oil sector supports several of Africa’s economies. As a result, the African local content has become a key priority for government, regulators and industry stakeholders.

Issues around the perceptions and understanding of local content dynamics were major topics of discussion. Key points put forward included the need for African governments and companies to develop better implementation of local content policies and come up with new approaches putting entrepreneurship and capacity building as priorities. From financing African starts ups, SMEs and companies to promoting an enabling business environment, it was agreed that African governments and regulators need to rise up to the task and provide for better conditions and environments for African entrepreneurs to thrive. Established African energy markets such as Congo Brazzaville, Equatorial Guinea or Gabon are still missing a pool of strong local companies across the value-chain, and especially in upstream. Despite producing oil and gas for decades, their environment has remained until now unfavorable to the nurturing of entrepreneurs in oil & gas, especially because of a lack of domestic financing. (Africa Energy Chamber)

Key Words: Africa, Energy Sector, Regional Integration

NORTH AFRICA

Algerians warn EU trade agreement could further decimate economy – As the free trade accord goes into effect this weak, Algeria fears the consequences could be devastating. The last restrictions on commerce between the European Union and Algeria are set to expire Sept. 1. The Association Agreement, signed 15 years ago, provides a glimpse into the lucrative future then-President Abdelaziz Bouteflika and his immediate circle saw for themselves and the country they governed. In 2020, the position, unfortunately, is quite different. For years, Algeria has relied upon the export of hydrocarbons to Europe and the world, while suffocating vast swathes of the private sector under a blanket of bureaucracy and corruption. Now, battered by the coronavirus pandemic, social unrest, graft and the drop in the value of hydrocarbons that began as far back as 2014, Algeria is scrambling to renegotiate the terms of the agreement while bemoaning the absence of significant European investment within the Algerian economy.

According to figures provided to The North African Journal by the president of Algeria’s national association of exporters, Ali Bey Nasri, between 2005 and 2017, Algeria imported $283 billion in goods from EU countries, while exports, principally of petroleum-based products, only reached $12 billion. The agreement as it stands, Nasri said, would be “a disaster for the national economy." It’s one Algiers seems to be acutely aware of, with Algerian President Abdelmadjid Tebboune instructing the country’s trade minister to reassess the deal Aug. 9 — just weeks before the final provisions of the agreement kick in. Despite the 11th hour, the terms of the agreement are unlikely to be a surprise. The initial 12-year transition period of the agreement was extended in 2017, with only products such as steel, textiles, electronics and vehicles subject to tariffs. Nevertheless, given the dismal state of the Algerian economy and, like all countries, the precarious state of the health care sector, many fear that the full impact of the agreement might decimate the Algerian economy. (Al Monitor)

Key Words: Algeria, EU, Trade Agreement

China's int'l trade fair to help resist global economic shrinking – China International Fair for Trade in Services (CIFTIS) to be held in Beijing in early September is a good move to help resist the global economic recession amid the COVID-19 pandemic, an Egyptian expert has said.Gamal Bayoumi, head of the Cairo-based Arab Investors Union (AIU), described the upcoming fair as "a good step from China," which is the world's largest exporter and the second largest import market. "In my opinion, we should encourage and take part in the fair, for it is beneficial for us as both exporters and importers," the Egyptian expert told Xinhua in a recent interview. Bayoumi, also a former assistant foreign minister for economic affairs, noted that over the past months, the world has suffered massive losses as a result of the lockdowns and precautionary measures to limit the spread of the coronavirus. "Most world economies are expected to shrink, except a few that will maintain lower growth rates," he said. Bayoumi said he believes China, as the world's second-largest economy, plays a good role in maintaining the global economy. He said that amid the global economic recession, the world should not give up but hold such fairs to try to promote trade and resist economic shrinking, "and this is what China is doing." "We praise China for trying to push forward trade, economy, and services in the world," said the AIU chief, adding that the idea of holding international trade fairs is a good one and Egypt is also experienced in this area. With regards to the Egyptian-Chinese cooperation, Bayoumi said that the two countries have succeeded in developing their ties and opened new areas of cooperation over the years, such as potential joint investment in Africa. (Xinhuanet)

Key Words: China, Global Trade, COVID-19

EAST AFRICA

Tanzania’s infrastructure focuses to promote SADC regional trade - According to one economist from the University of Dar es Salaam (UDSM), Prof Mohammed Bakari, improvement of transport infrastructure such as ports, railways, roads and electricity power plant currently going on in the country, will help further drive the economic growth of SADC member states. Prof Bakari highlighted his findings at his recent presentation he made for the Virtual Workshop across SADC region for Tanzania’s NSAs and talked on Tanzania’s Performance in three areas namely Industrialization, Agriculture and Trade. He said Transport and storage are among the major drivers for the Tanzanian economy and the significant volume is already generated from landlocked SADC member states. (IPP Media)

Key Words: EAC, Regional Integration, SADC

East Africa business recovery strategy on the cards – A study on post-Covid-19 recovery strategy for businesses in the East African region is on cards. It will inform business entities on rebound strategies that would enable them to recover from the pandemic’s devastating impact. “Necessary measures to ensure businesses remain afloat will be suggested,” said the East African Business Council (EABC). The study, to be commissioned by EABC, coincides with the easing of travel restrictions earlier imposed to curb spread of the virus. The apex body of private sector associations believes that, despite the devastation, the region can still navigate out of the adverse impacts of Covid-19. (The Citizen)

Key Words: EAC, Regional Integration, COVID-19

WEST AFRICA

Ghana anticipates US$10bn boost to economy from aluminum trade – Ghana is expected to witness a US$10 billion boost in its economy with government’s plan of exploiting bauxite and aluminum reserves into the Integrated Aluminum Industry. To achieve that objective, the Management of the Ghana Integrated Aluminum Development Corporation (GIADEC), in partnership with the Volta Aluminum Company Limited (VALCO) has deployed a Recovery Plan of retrofitting the VALCO refinery plant to produce at its full capacity of 300,000 tonnes of aluminum per annum. It is also expected to establish three new bauxite mines, and at least two refineries in addition to the existing smelter. The successful implementation of the Recovery Plan is expected to generate 35,000 direct and indirect jobs as well as create a vibrant downstream sector. Mr Kweku Asomah-Cheremeh, the Minister of Lands and Natural Resources, who announced this at the swearing-in of the reconstituted Governing Board of VALCO in Accra, said the aluminum industry was a strategic sector contributing significantly to the manufacturing sector of many key economies globally. In view of that, the Minister said, VALCO aimed at leveraging on the country’s existing bauxite reserves and allied aluminum assets to drive the full commercial exploitation through refining bauxite into Alumina and smelting it into Aluminum as well as encouraging the development of further downstream industries towards accelerating industrial transformation. Mr Asomah-Cheremeh explained that establishing an Integrated Aluminum industry was an opportune and continuous effort by the government to strengthening the capacity of the Aluminum Industry supply chain. (GoldStreet)

Key Words: West Africa, Regional Trade, Regional Integration

SOUTHERN AFRICA

MFIs should embrace technology to survive Covid-19 - THE Zimbabwe Association of Microfinance Institutions (Zamfi) has called on its members to embrace digital platforms if they are to survive the adverse impact of the Covid-19 pandemic. The deadly disease was first detected in China last December and has now spread across the globe killing close to one million people. In Zimbabwe, the disease was detected in March and so far over 6 000 people have been with about 195 deaths and about 5 000 recoveries. In line with the World Health Organisation (WHO) guidelines and protocols, Zimbabwe has embarked on lockdown measures to curb the spread of the disease. Business operators have been heavily affected by the lockdown restrictions with technology coming in handy. Zamfi said it conducted a mini survey on the impact of the Covid-19 on the microfinance sector whose outcome revealed the need for players to urgently embrace digital service platforms. “It was quite evident from the survey findings that the old model of brick and mortar in terms of branch network is no more relevant and worth investing in for the majority of MFIs, especially those still keen to remain viable and profitable in the lending business,” said the microfinance association. “The only lucrative and viable option is to embrace digital services platforms associated with cost reduction, limited human to human interaction, efficiency in service delivery and high productivity.”

Zamfi said the establishment of agent networking systems especially for rural population could be a game changer for some MFIs willing to support developmental lending among them small holder farmers. “The Covid-19 pandemic situation is most likely to be with us for a very long period of time until a real breakthrough in vaccines and drugs for its treatment is found. Therefore, the protection of health for frontline staff at the workplace involved largely in collection of outstanding loans, including senior management tasked with strategic leadership of the company shall remain a top priority,” it said. “Portfolio quality is likely to remain a challenge and as such MFIs should be willing to be flexible in rescheduling existing loans while at the same time structuring new loan agreements in a manner that helps clients to easily repay their loans.” The report also confirmed that it has now become harder for MFIs to access funding from shareholders, bank and investors. “This was indicated to be the case by 65,96 percent of the respondents while 14,89 percent noted that it is no different from the period before the lockdown,” said Zamfi. (Chronicle)

Key Words: SA, Business, COVID-19

South Africa working towards reopening international borders – Tourism Minister Mmamoloko Kubayi-Ngubane on Monday said the South African government was working towards the reopening of international travel, which had been put on ice for months since President Cyril Ramaphosa imposed a nationwide lockdown to curb the spread of Covid-19. “Our next step is to work towards the reopening of international travel. With the risk of the virus spread on a downward trend, we are hopeful that the opening of our borders will happen sooner than we are expecting,” Kubayi-Ngubane told delegates as she launched Tourism Month in Cullinan, east of Pretoria. However, she emphasised that the reopening dates of international travel will be determined on the existing level of risk as assessed by the country’s experts. “In terms of demand stimulation, our short-term focus, for now, will be on domestic tourism. We believe that domestic tourism, South Africans travelling and getting to know their own country, can drive market demand to unprecedented levels. Indeed, we had envisaged that domestic tourism will be the first pillar upon which the tourism recovery will kick-start,” she said. During the month of September, Kubayi-Ngubane said, her department will be driving an extensive domestic tourism campaign aimed at getting South Africans to travel and explore the splendour of their country responsibly, under the guidance of the health and safety protocols.

The series of Tourism Month events launched on Monday will culminate in the celebration of World Tourism Day on September 27. The major celebration will be hosted in Gauteng. “The 2020 theme for Tourism Month is 'tourism and rural development'. This year’s theme was conceptualised in recognition of the important role that tourism plays in the development of rural communities by way of poverty alleviation, employment creation and overall stimulation of economic activities,” said Kubayi-Ngubane. “Yet it is these communities that have suffered the most from the devastating impact the pandemic has had on the tourism sector. Without tourism, many of these communities have no other form of economic activity that can help them generate an income. Under this theme, we will undertake a set of activities to foster tourism awareness in local communities, especially within less visited rural areas of each province.” (Engineering News)

Key Words: SADC, Regional Integration, Economic Growth

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 3 SEPTEMBER 2020

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