ATPC DAILY DIGEST 4 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

Countries have responded decisively to the COVID-19 crisis, but face significant fiscal challenges ahead – Tax Policy Reforms 2020 describes the latest tax reforms across OECD countries, as well as in Argentina, China, Indonesia and South Africa. The report identifies major tax policy trends adopted before the COVID-19 crisis and takes stock of the tax and broader fiscal measures introduced by countries in response to the pandemic, from its outbreak to June 2020. The report shows that while the size of fiscal packages in response to the COVID-19 crisis has varied across countries, most have been significant, and many countries have taken unprecedented action. It also points out that most countries have adopted a phased approach to COVID-19, gradually adapting their fiscal packages as the crisis has unfolded. Initial government responses focused on providing income support to households and liquidity to businesses to help them stay afloat. As the crisis has continued, many countries expanded their initial response packages. The most recent measures and discussions suggest that the recovery phase will be supported by expansionary fiscal policy in a number of countries. With countries facing such high levels of uncertainty, policy agility will be key and targeted support measures should be maintained as long as needed to avoid scarring effects, according to the report. Once recovery is well underway, governments should shift from crisis management to more structural tax reforms, but they must be careful not to act prematurely as this could jeopardise recovery. “Right now, the focus should be on the economic recovery. Once the recovery is firmly in place, rather than simply returning to business as usual, governments should seize the opportunity to build a greener, more inclusive and more resilient economy,” said Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration. “One path that should be urgently prioritised is environmental tax reform and tax policies to tackle inequalities”. (OECD)

Key Words: OECD, Global Growth, Business

Maritime Informatics: an emerging discipline for a digitally connected efficient, sustainable and resilient industry– Shipping, the most efficient way of transporting goods across the globe, handles about 90% of the world’s trade. It enables regions and countries to exploit their comparative advantage, and thus improves the lot of many citizens. Trade facilitated by shipping and the application of Ricardo’s comparative advantage principle have created a global economy. Competition has contributed to this success, as it generates a constant need to innovate to lower costs even further. Efficiency is the long-term success factor In stable times. Maritime informatics takes a holistic approach to shipping enabling higher levels of transparency, predictability, and visibility of all transport operations connected with shipping. Collaboration starts with information sharing that leads to raise efficiency integrating operations and stretches to digital twinning to enhance operations. The self-organising nature of the shipping industry strongly influences information requirements and the spatial-temporal data needed to manage, for example, a voyage or a port visit. Digital data streams are the fulcrum of coordination, because the many actors involved in a voyage and a port visit must share data in real-time to organise the many associated activities and to ensure connectivity to other means of transport. Strong voices in the shipping industry are pushing for a digital transformation that will satisfy clients’ expectations of transparency and predictability. The maritime industry must strive for the same maturity of transparency and predictability as other transport industries are already seeking and achieving for end-to-end transport chain visibility, reliability and efficiency. Maritime Informatics will be a key factor to achieve this. (UNCTAD)

Key Words: UNCTAD, Global Trade, Business

PAN AFRICA

New collaboration between Novartis and Africa Medical Supplies Platform to facilitate supply of COVID-19 related medicines – The collaboration aims to help alleviate supply and logistical constraints in the African Union member states; Portfolio of 15 generic and over-the-counter (OTC) medicines from Sandoz division will be sold at zero-profit to governments through Africa Medical Supplies Platform (AMSP) to 55 African and 15 Caricom eligible countries; the African Union through the AMSP has integrated vetted medical suppliers to ensure rapid access to affordable COVID-19 related supplies. Novartis (www.Novartis.com) and the African Union (AU) through the Africa Medical Supplies Platform (AMSP) have announced a new collaboration to facilitate the supply of medicines from the Novartis Pandemic Response Portfolio to the AU member states and Caricom countries. The AMSP portal is an online marketplace that enables the supply of COVID-19-related critical medical equipment in Africa. It was developed under the leadership of the AU Special Envoy, Strive Masiyiwa and powered by Janngo, on behalf of Africa Centres for Disease Control and Prevention (Africa CDC). The platform was also developed in partnership with African Export-Import Bank (Afreximbank) and the United Nations Economic Commission for Africa (ECA). This collaboration aims to help alleviate supply and logistical constraints by ensuring efficient and rapid access to the Pandemic Portfolio medicines to African and Caricom governments. The AU comprises 55 Member States, representing all the countries on the African continent, while 15 Caricom countries are eligible for the Pandemic Portfolio.

“Our collaboration with AMSP is a continuation of our efforts at Novartis to combat COVID-19 across the world,” said Vas Narasimhan, CEO of Novartis. “Together, we are aiming to accelerate and expand access to affordable essential medicines in Africa to meet the very urgent patient needs across the continent as it continues battling this pandemic.” AMSP was developed to ease the difficulties and open up the medical supplies market to Africa, and as part of the Partnership to Accelerate COVID-19 Testing (PACT) of Africa CDC. It integrates African and globally vetted medical suppliers to ensure cost-effectiveness and transparency in the procurement and distribution of COVID-19 related supplies. “Following the successful listing of test kits, personal protective equipment, and clinical management devices, the African Union Chairperson has expanded our mandate to include groundbreaking medicines to treat COVID-19 patients in Africa,” said African Union Special Envoy, Strive Masiyiwa. “As a global pharmaceutical leader, Novartis is a strategic partner for AMSP to unlock access to the latest and best-performing medicines for Africans in an affordable way.” (CNBCafrica)

Key Words: TA, Africa, COVID-19

Absa commits to growing African trade with its award-winning online platform, writes Patricia Holburn – Absa, recent winners at Global Finance’s 2020 World’s Best Corporate/Institutional Digital Banks Awards in Africa, is transforming trade on the continent. The group is broadening access to trade finance by digitising its trade finance offering, ensuring increased trade opportunities that boost economic growth in Africa. “Trade is critical to Africa’s growth,” says Michelle Knowles, pan-African head of trade finance product at Absa Corporate and Investment Bank. It has been hindered by a lack of access to trade finance, despite growing demand for products that give importers and exporters multiple ways of financing trade transactions and a range of proven risk mitigation options.

Trade finance gap set to widen - “There is a demand for trade finance across the region,” Knowles says. But supply is not keeping up, pointing out that the estimated trade finance gap on the continent is $110bn to $120bn. “Only a quarter of Africa’s trade finance needs are being met.” She says the trade finance gap is likely to widen in the next 18 months, leaving businesses facing an uphill battle to access the resources and support they need to fulfil their trade needs. “Trade finance is an integral part of Absa’s business. We are accelerating our efforts to meet the demand for trade finance and be a key provider of trade finance on the continent to enable the free trade agreement,” Knowles says. This includes digitising trade finance products.

African experience and digitization - With its experience on the African continent and ongoing digitisation journey, Absa is well placed to make good on its commitment to grow trade. “Our experience in Africa and understanding of trade finance means we can deliver an accessible trade finance product,” Knowles says. The group launched its online trade finance portal, Trade Management Online, in 2019, and is busy with other automation initiatives focused on their operations and services to further reduce costs, improve efficiency and provide a consistent client experience across all regions. The portal recently won Global Finance’s Best Online Portal in the World’s Best Corporate/Institutional Digital Banks in Africa 2020 round one award. The bank also won the regional award for Best Trade Finance Services. (Cape Talk)

Key Words: Africa, Trade, Regional Integration

Japan: To beat China in Africa Abe’s successor needs to take risks– The resignation of Japanese Prime Minister Shinzo Abe will open a new chapter in the historic competition between Japan and China for resources and influence in Africa. Abe’s departure due to ill health will not immediately mean dramatic change. His successor will be chosen from a list of Liberal Democratic Party (LDP) candidates that largely share his views on foreign policy, though perhaps not with the same hawkishness or determination. Yet his departure could be a turning point that will make or break the long-term success of his initiatives in Africa. His successor faces a formidable task in trying to roll back Beijing’s influence in Africa. China is the largest financier of African infrastructure, backing one out of every five projects and is Africa’s largest trading partner, with trade in 2016 totaling $114 billion. Furthermore, Chinese President Xi Jinping promised in 2016 to invest $60 billion into Africa at the Forum on China-Africa Cooperation (FOCAC), while Japan could only contribute $30 billion. Much of China’s success in Africa has been its foreign direct investments both in the public and private sectors. COVID-19 has made debt more of a concern and a liability for African countries. China’s lending practices on the continent have been dubbed “debt trap diplomacy” where credit is extended to a debtor country with the intention of extracting concessions when it cannot sustain the loan payments. Easy access to Chinese credit has sometimes been disastrous for some African economies. (The Africa Report)

Key Words: Africa, COVID-19, Regional Integration

How tourism can lead Covid-19 recovery and why Africa is well-placed to benefit – Around the world, countries are steadily shifting from responding to the Covid-19 pandemic to the recovery phase. And for many, tourism will play a key role here, not least due to its importance in job creation, supporting livelihoods and driving inclusive development. But tourism itself has been hit hard by this unprecedented crisis. During the first five months of the year alone, the world welcomed 300 million fewer international tourists than in 2019, UNWTO data shows. This translates into around US$320 billion in lost revenues, triple the amount lost in 2009 during the global economic crisis. Looking at Africa, there has been a decrease of 47% in international tourists. This sudden and unexpected fall places many millions of jobs and people’s livelihood at risk. Moreover, as the United Nations Secretary-General Antonio Guterres made clear in his landmark Policy Brief on “Covid-19 and Transforming Tourism”, it also places the progress we have been making towards using tourism as a driver of the Sustainable Development Goals, including those relating to gender equality and the conservation of our cultural and natural heritage, in jeopardy. So, how can we get tourism moving again? Above all, it is a matter of trust and confidence. People will only travel again if they feel safe. Moreover, they not only need to be confident that they won’t bring the virus home with them, many also feel a responsibility to not spread it themselves. In this regard, Africa has certain notable advantages over other global regions. For most international tourists, Africa is a prime destination for nature tourism – to see wildlife or to experience unspoiled landscapes and habitats. This lends itself to social distancing, making it relatively easy for every part of the tourism value chain to introduce strict hygiene protocols. Furthermore, Africa, as the World Health Organization (WHO) statistics show, has been the least affected of all global regions. (IOL)

Key Words: Africa, COVID-19, Regional Integration

AU mulls guarantee scheme for small businesses to spur economic transformation – The African Union (AU) is planning to put in place a guarantee scheme for micro, small and medium-sized enterprises (MSME) to speed up the continent’s economic transformation, an official said on Wednesday. Amine Idriss Adoume, director in charge of delivery program and coordination at the African Union Development Agency (AUDA-NEPAD), told a virtual meeting that one of the biggest impediments for the expansion of small businesses in Africa is the lack of affordable finance. “The scheme will be developed jointly with partners and seeks to unlock access to affordable finance for the continent’s small businesses,” Adoume said during the launch of the Pan-African MSME Academy for Kenya. The academy plans to launch across Africa with country-specific content in line with local business environments. Adoume said the academy has been positioned to enable small entrepreneurs to achieve sustainable growth as they emerge through the COVID-19 pandemic. The AU is prioritizing development of MSMEs because of their significance in the region, he said. There are currently between 95 million and 100 million MSMEs in Africa, employing some 300 million people, Adoume said. “They are therefore a key driver of economic growth and employment in the continent,” he added. The AU official said the credit guarantee scheme will be designed to provide comfort to banks so that they can extend loans to MSMEs.

Adoume noted that commercial banks shy away from providing credit to small businesses because they are perceived to have high default risk. Betty Maina, cabinet secretary at the Kenyan Ministry of Industrialization, Trade and Enterprise Development, said Kenya is also developing a credit guarantee scheme that will support commercial banks to extend financial support to small businesses. MSMEs are a critical part of Kenya’s economy as they constitute over 90 percent of all businesses and provide 30 percent of all employment opportunities, she said. The Kenyan government has also established a list of goods that will be procured by public entities and supplied by local MSMEs, Maina said. (The Independent)

Key Words: AU, COVID-19, Regional Integration

Africa’s Gathering Debt Storm – The COVID-19 crisis is pushing Africa to the financial brink. African governments are under pressure to continue servicing their external loans, leaving them with few resources to confront a historic pandemic and its economic fallout. Without external support – specifically, a comprehensive repayment freeze – some African economies will buckle under their debt burden. The resulting domino effect could imperil the entire continent’s development and harm richer countries, too. The international community’s response so far has been mixed. The most notable step so far – the G20’s Debt Service Suspension Initiative (DSSI) for the world’s poorest countries – covers only official bilateral debt. But 61% of African DSSI countries’ debt-service payments this year will go to private creditors, bondholders, and multilateral lenders like the World Bank. And, despite the G20’s assurances, some countries joining the DSSI were subsequently downgraded by global ratings agencies.

The World Bank has played an unhelpful role here. Although its president, David Malpass, recently The">called for expanded debt relief and even raised the possibility of a write-off, he has also resisted calls for the Bank itself (a major lender to Africa) to freeze debt repayments. Instead, the US-dominated institution seems more interested in scoring political points by urging the China Development Bank to join the G20 initiative, even though doing so would really affect only one African country. Geopolitics are also derailing the promising option of a new allocation of the International Monetary Fund’s Special Drawing Rights (its global reserve asset) in order to unlock extra liquidity. This initiative faces resistance from US President Donald Trump’s administration, which worries that some of the funds would flow to countries like Iran. (Project Syndicate)

Key Words: COVID-19, Africa, Economic Growth

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

Building the post-COVID-19 resilience for Africa’s coffee sector – The Inter African Coffee Organisation (IACO) has joined forces with the International Coffee Organization (ICO) and the Centre for Agriculture and Biosciences International (CABI), to design an emergency intervention program to alleviate the impact of COVID-19 on Africa’s coffee sector. The initiative estimated to cost €12 million (about US$14.3 million) aims to alleviate market disruptions, food, nutrition, and income security challenges facing millions of smallholder coffee farmers across 11 countries for an initial three-year period. The risk posed by COVID-19 on Africa’s agricultural sector remains critical, given the sector accounts for 23 per cent of the continent’s Gross Domestic Product, with food and agricultural exports averaging US$35 billion to US$40 billion annually.

Out of this, agricultural products, including coffee and food, worth US$8 billion flow through intra-regional trade every year, according to a McKinsey’s report calling for the need to safeguard Africa’s food systems against the pandemic. The IACO says COVID-19 has revealed the critical weakness of the agricultural systems in Africa, and particularly the growing concern of its coffee value chain. The ICO projects a loss of exports valued between US$100 million and US$200 million, potentially affecting 6.6 million jobs in the coffee sector, particularly in the East Africa region. "This pandemic has dealt a major blow to the coffee economy. World prices were already bad for producers at the beginning of the year before COVID-19. Unfortunately, the outbreak worsened the downward trend in coffee price to the disadvantage of vulnerable smallholder producers. This is why we are working towards building resilience that will protect our producers," says Dr. Fred Kawuma, Secretary General of the IACO. Activities along the entire value chains across the continent have been disrupted, leading to stockpiling of coffee at farm levels, reduced price to growers, reduced domestic consumption due to closures of coffee roasting units, cessation of movements and meetings, and closure of distribution outlets. (GCRMAG)

Key Words: COVID-19, Africa, Trade

NORTH AFRICA

EU post-covid-19 reconstruction hinges on pertinent policy reforms towards MENA – Centre for European Reform – On May 27, 2020, the EU Commission presented its proposal for a post-pandemic recovery plan to help the bloc overcome the impact of the coronavirus crisis. The plan has however failed to include the grouping’s need to policy reforms towards its southern neighbors in the Middle East and North Africa (MENA), whose economic and political difficulties constitute a burden for some members of the union. Luigi Scazzieri of the Centre for European Reform argues, in a recently published paper, that the pandemic, which hit hard Europe, has made a strategic rethink of the EU’s approach to its southern neighbors even more urgent.

While most of the region has not been severely hit by the virus itself so far, the EU’s neighbors are suffering from its economic fallout: unemployment and social strife will fuel instability, migration towards Europe and possibly conflict, says the searcher, whose paper was relayed this week by eubulletin website. After he explained how economic hardships fuel illegal migration, the author of the paper noted that Tunisia, Algeria and Morocco, main departure points of the migrants, have seen their economy decimated by the pandemic with lockdown measures to stem the propagation of the coronavirus. The difficult economic situation of these countries has worsened unemployment – a major factor for social unrest – and increased migration attempts towards Europe. To mitigate such movements and help its southern neighbors to remain stable, Scazzieri notes, the EU must make “ambitious offer” to its MENA partners with whom cooperation have been under expected levels whether on the economic or political plans. (The North Africa Post)

Key Words: North Africa, COVID-19, Trade Agreement

EAST AFRICA

Uganda boosts border infrastructure for stronger regional trade position – The Border Export Zone (BEZ) Program, previously called Border Market Program, was adopted in 2010 to position Uganda’s exports into the region and drive the development goals of the country including import substitution and wealth creation. The Ministry of Trade, Industry and Cooperatives Amelia Kyambadde in the last three weeks of August commissioned the construction of investment venture facilities at four Border Export Zones. The Border Export Zone (BEZ) Program, previously called Border Market Program, was adopted in 2010 to position Uganda’s exports into the region and drive the development goals of the country including import substitution and wealth creation. At Lwakhakha, the minister launched the construction of a central market and related facilities; at Busia and Katuna, warehouses and related facilities are being constructed; and in Oraba, they are erecting a commercial building and extension of electricity and other related facilities. These facilities will be ready for use by close of this year, according to the minster. In total, the government eyes setting up 18 zones in order to boost export earnings with better trade infrastructure and capacity building, increase value addition as a result of the demand for quality products and amenities, provide employment and promote investment through Public-Private Partnerships at the zone sites. The Zone sites will also help: improve post-harvest handling and reduce wastage of produce during transportation, processing and drying, improve compliance to standards and marketing quality of products through the use of improved and organized infrastructure, reduce non-tariff barriers and promote formal trading (Kampala Post)

Key Words: East Africa, AfCFTA, Trade Agreement

Plastics ban glitch for US-Kenya trade talks - Global environmental activist group Greenpeace is calling on the government to reject a move by American chemical companies to expand the plastics industry’s footprint across Africa. Kenya is currently in negotiations with Washington over a new trade deal, as President Donald Trump pushes for bilateral pacts in Africa. Currently, plastic is already the US’ biggest export to Kenya, with sales totalling Sh6.21 billion last year, US Congressional filings done in May this year shows. Documents obtained by Greenpeace show that the American Chemistry Council (ACC), a trade association that counts Shell, Exxon and Total among its members, also lobbied against changes to the international Basel Convention, which put new limits on plastic waste entering low and middle income countries. Three years ago, Kenya passed one of the toughest laws on the production, sale, and use of plastic bags, and in May this year, expanded it to outlaw plastics in protected areas.

Request not made yet - Trade and Industry Cabinet Secretary Betty Maina told Bloomberg that the US has yet to table the request. Mr Fredrick Njehu, Greenpeace Africa senior political adviser, urged Kenya not to backslide on the progress made in its plastic-free ambitions by folding to pressure from fossil fuel giants, because it stands to derail the progress made across the entire continent. “Africa is at the forefront of the war on plastics, with 34 out of 54 countries having adopted some regulation to phase out single-use plastic,” said Mr Njehu. In late April, the lobby group wrote to US Trade Representative officials, arguing that Kenya could serve in the future as a hub for supplying US-made chemicals and plastics to other markets in Africa through this trade agreement. The lobby group also called for the lifting of limits placed on the plastic waste trade, which experts believe would circumvent the new Basel Convention rules. “This trade agreement will be an important model for other African states. With this foothold, the United States can play an influential role in shaping trade policy across Africa, as it will enable the US to build a platform for US chemical manufacturers to expand exports to enter new growth markets throughout sub-Saharan Africa,” the lobby group wrote in another separate letter to the chairman of the US International Trade Commission. (Nation)

Key Words: EAC, Regional Integration, Trade

WEST AFRICA

Airport reopening will fast-track AfCFTA – The Chief Executive Officer of the Chamber for Tourism Industry, Prince Ntiamoah Boampong, has said the reopening of the borders comes at a crucial time when plans are far advanced for the African Continental Free Trade Area (AfCFTA) scheduled for January 2021. The AfCFTA is set to cover a market of about 1.2billion people, and a gross domestic product (GDP) of $2.5 trillion across all 55 African Union member states. The reopening also allows for a proper testing of all the structures requisite for the trade in January next year. Mr. Ntiamoah Boampong noted: “For us as a tourism institution, we are excited about this because that means we can prepare adequately for the full operations of the African Continental Free Trade office. It also shows us that visitors can come from different countries, in and out, and test the robustness of our airport and operations post-Covid and see how we can block all the loopholes that come with any challenges associated with AfCFTA’s operations. “After our Africa Digitization Conference On Tourism and Trade webinar, I believe we have opened the door for trade conversations to be institutionalised and intensified. Almost every country on the continent had virtually gone on break so for AfCFTA’s host country to open its borders is a clear indication that we are open for business. That’s welcoming news for Ghana and AfCFTA. "Trade and tourism are intertwined and inter-linked, and Ghana being a destination for these two activities would quickly help our failing tourism industry to rise up again,” the Chamber’s CEO concluded. (Ghana Web)

Key Words: WA, Regional Integration, AfCFTA

Women Traders Want Borders Reopened – Businesswomen in two of the four Mano River Union countries have called on their respective governments to consider reopening the borders as the economic difficulties continue to severely impact their livelihoods. According to the women, who held a high-level stakeholder engagement meeting along the Liberia-Sierra Leone border recently, the closure of the borders as a result of COVID-19 has brought devastating consequences that they cannot continue to bear. As a result, they claim that they are compelled to risk their lives by crossing at illegal border points, making use of the porosity of the borders. In their quest for reopening the borders, the women said: “There is a need to open the border, but with the care of safety, health, and security measures put in place for all users and to strengthen trade in a secured environment. The women spoke of the devastating blow to and strangulation of their economic growth and stability dealt by the outbreak of the pandemic which has affected the once booming venture of trade. Many of them said they no longer have the means to do their business with the closure of the borders. The women stressed that all their capital has been sucked up due to COVID-19.

According to them, in their desperation to fend for their families, some of their members use any of the over 40 illegal crossing points between the two countries to make ends meet. In some instances, this accordingly leads to fatality. “Our women, who are mostly single parents, are dying because they are taking huge risks for their children and families to survive,” says Bindu Swarary. The Mano River Union (MRU) and the United Nations Development Program (UNDP) joint project high-level stakeholder engagement meetings along the Liberia-Sierra Leone border was a follow-up assessment mission to the two “Class A” borders in Jendema and Bo Waterside. The project focuses on areas of cooperation to enhance the effectiveness of their development efforts in the four MRU countries including Liberia, Guinea, Ivory Coast, and Sierra Leone. (Daily Observer)

Key Words: WA, Regional Integration, COVID-19

Spain takes over from India as Nigeria’s top export destination – Spain took over from India as Nigeria’s top export destination in the second quarter (Q2) of 2020. The European nation got 14% (N310.7 billion) of the total export trade of Nigeria in Q2 as against the 9.87% (N402.93 billion) recorded in Q1 2020. Next is the Netherlands with 10.98% (N243.6 billion), up from 9.72% recorded in Q1 2020. While China received 9.93% share (N220.35 billion), India got 8.81% (N195.5 billion), down from the 15.61% (N637.53 billion) seen in Q1. South Africa got 7.76% (N172.19 billion) share within the same quarter. The report also stated that crude oil exports accounted for 70% (N1.55 trillion) of the total value of exports in Q2 2020. However, crude oil exports decreased in value by 47.2% in Q2 2020 compared to Q1 2020 and 60.5% year-on-year. Further checks by Nairametrics, shows that the latest crude oil export is the lowest recorded in the past four years. The last time a lower value was recorded was in Q2 2016 (N1.49 trillion). Nairametrics had reported on Tuesday when the NBS revealed that Nigeria’s total foreign trade (import and export) dropped by 27.46% year on year in Q2 2020, when compared to N8.61 trillion recorded in the corresponding quarter (Q2) of 2019. This is according to the latest foreign trade report, released by the National Bureau of Statistics.

According to the report, Nigeria’s total export during the quarter nosedived by 51.7% to stand at N2.22 trillion, a significant fall when compared to N4.59 trillion recorded in Q2 2019 and N4.08 trillion recorded in the previous quarter. The report also showed that Nigeria’s total foreign trade recorded a decrease of 27.3% when compared to N8.59 trillion recorded in the previous quarter (Q1 2020). The decline is a reflection of the disruptions caused by the COVID-19 pandemic. (Nairametrics)

Key Words: West Africa, Regional Trade, Regional Integration

SOUTHERN AFRICA

Naledi Pandor to lead SA at G20 Foreign Ministers’ meeting - International Relations and Cooperation Minister Naledi Pandor is set to lead South Africa's delegation to the extraordinary G20 Foreign Ministers' Meeting. The virtual meeting is scheduled for Thursday, 3 September 2020. "As was the case following the global financial crisis in 2008 and in line with the G20's historical role of finding solutions to the globe's most pressing challenges, the world will be looking to the G20 countries to lead and coordinate international efforts to counter the human and economic impact of the COVID-19 pandemic," said the Department of International Relations and Cooperation (DIRCO). At their Extraordinary Summit on COVID-19 held in March 2020, G20 leaders tasked the relevant officials to coordinate closely in support of the global efforts to counter the pandemic's impacts. This includes proportionate border management measures in accordance with national regulations and providing assistance where necessary to repatriate citizens. While border management is an essential element of national sovereignty, enhanced international coordination in the implementation, monitoring and phasing out of cross-border measures in the future will amplify their impact and minimise disruptions on people and trade.

"In this regard, the Saudi Presidency has called a meeting of G20 Foreign Ministers to assess lessons learned and to draw collective experiences for dealing with future pandemics," said DIRCO on Wednesday. It is expected that the G20 Foreign Ministers will, among other things, exchange national experiences and discuss lessons learned from the cross-border management measures taken in response to the COVID-19 pandemic. It is also expected that ministers will enhance G20 coordination and possible areas of future cooperation, including the repatriation of nationals and treatment of third-country nationals; and consider possible ways to reinforce the overall preparedness framework for cross-border measures. (Devdiscourse)

Key Words: SA, Business, COVID-19

Chinese investors urged to explore Zambia’s gemstone, emerald sector – Chinese enterprises should consider plowing their investment in Zambia’s vast gemstone and emerald sector which was yearning for more investment, an industry body said on Wednesday. The Emerald Production Watch of Zambia believes that Chinese enterprises will make huge returns if they invested in the country’s gemstone and emerald sector. Kafimbwa Musa, the organization’s president, said the country has many dormant emerald mines which the government should repossess and give to serious investors from foreign investors such as Chinese. “We have so many dormant mines and we are asking the government to repossess them so that we give them to serious investors,” he said in an interview. According to him, Chinese technology and expertise will go a long way in exploiting the precious stones which will benefit not only the investors but the country and communities through tax payments and job creation. While appreciating Chinese investment in Zambia’s copper production, he noted that it was time for the Chinese to diversify in other mining ventures such as mining of precious stones. Meanwhile, the official said the sector has been affected by the COVID-19 pandemic because buyers were not coming forth to buy the stones. He said this has affected production as well as jobs as some mines have been forced to downsize on labour. (CGTN)

Key Words: SADC, Regional Integration, Economic Growth

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 4 SEPTEMBER 2020

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