Today’s Topics:

Rules of origin, SPS and TBT under African Preferential Trade Arrangements – (UNECA)

The US Versus Chinese Investment In Africa – (Forbes)

Insulating a WTO Investment Facilitation Framework from ISDS – (SSRN)

World Trade Organization: How an African head could make a difference –  (BBC)

Angolan president defends "Marshall Plan" for Africa- (ANGOP)

The Role of Digitalization in the Decade of Action for Africa – (tralac)

The Unfinished Agenda of Financing Africa’s COVID-19 Response – (Project Syndicate)

AU-backed app seeks to speed up border re-openings- (Tech Central)

Egypt keen to enhance regional, international cooperation for industrial integration- (Zawya)

Ethiopian in Talks With South African Flag Carrier on Rescue – (Bloomberg)

External trade rebounds on easing global restrictions- (Business Daily)

Rwanda to host the first virtual AGRF summit 8-11 September 2020 –a (AGRF)

Revving up diversification to overcome post COVID-19 challenges – (The Guardian)

ECA’s West Africa office undertakes training in generational economics and national transfer accounts methodologies – (UNECA)

Covid wave brings second quarter slide – (Mail Guardian)

Covid-19 lockdowns in Sadc spawn massive smuggling – (Zimbabwe Independent)

IMPORTANT ANNOUNCEMENT

Rules of origin, SPS and TBT under African Preferential Trade Arrangements - The United Nations Economic Commission for Africa (UNECA) is carrying out a comparative study focused on two crucial non-tariff measures that must be complied with for private sector operators to access preferences: (1) Rules of Origin (RoO) and (2) Technical Barriers to Trade (TBT) and Phyto-Sanitary (SPS) measures.   In this light, we kindly asked for your support and participation a 10-minute survey. Your participation is vital to help us better understand the obstacles that prevent private operators from fully taking advantage of the opportunities arising out of trade agreements, and therefore assist policymakers with designing more inclusive trade agreements. Participate in the survey  at https://docs.google.com/forms/d/1H4I5E9tzHmgGW9DCKQY43TuMzohk6BgLbf5kbO3NA-w/viewform?edit_requested=true. (UNECA)

Key Words: UNECA, Trade Agreements, Rules of Origin

INTERNATIONAL

Insulating a WTO Investment Facilitation Framework from ISDS – Over 100 WTO members are engaged in Structured Discussions aimed at a multilateral framework on investment facilitation for development (Framework). The Framework (meant to be a WTO agreement) seeksto facilitate investment flows by creating legal obligations for states regarding (among other things) enhanced transparency and predictability of investment-facilitation measuresand regulations, improved efficiency and speed of administrative procedures, and the establishment of related ombudsperson-type mechanisms.It is our understanding that, in negotiating this agreement, negotiators intend to create binding disciplines for states, but not to confer enforceable rights on private parties. This raises the issue of the Framework’s potential interaction with obligations contained in international investment agreements (IIAs), especially in the context of investor-state dispute settlement (ISDS). In particular, could ISDS litigants and arbitrators rely on the Framework’s disciplines to add elements to the fair-and-equitable-treatment (FET) standard, claim breaches of umbrellaclauses, or directly incorporatethe Framework’s disciplines via most-favored-nation (MFN) clauses? How can the risk be reduced that the Framework’s obligations will be invoked by private parties ininvestment-treaty disputes? A future Framework can be expected—and needs to state expressly—that it does not cover “market access, the treatment and protection of investment or investors, and ISDS.” (SSRN)

Key Words: WTO, Global Trade, ISDS

The US Versus Chinese Investment In Africa –  The United States recently launched negotiations with Kenya for a free trade agreement. The talks are quite a turnaround. From its onset, the Trump administration has been averse to new commerce initiatives with the continent. In addition, its approach has been more reactive, striving to counter China’s commercial, security and geopolitical influence in Africa, rather than proactive, seeking to fully implement the “Prosper Africa” and “US Africa Strategy.” These proposals initiated in 2018 and 2019 represent a winning American strategy in Africa which should focus on advancing mutual interests. Historically and to date, US economic engagement with the continent has been modest at best. A successful trade agreement would be the latest reinvigorating step per the US Trade Representative's statement, the "two countries recognize that an agreement between them has the potential to serve as a model for additional agreements across Africa." 

Efforts renewed, the US building closer relationships with African countries can be a vital economic lifeline especially during times of financial instability and uncertainty; Covid-19 being the clearest example. China's relationship with its African partners is complicated, but will hopefully serve as a significant example in the future as the pandemic subsides. China's flagship global development strategy, the Belt and Road Initiative (BRI), has led to $1 trillion spent in roughly 70 countries. Despite Covid-19, the US-China trade war, the Hong Kong security law, and a decline in global trade, China's relationship with Africa can help soften the economic blows. (Forbes)

Key Words: Africa, Global Growth, Business

Angolan president defends "Marshall Plan" for Africa - The Angolan Head of State took this standing when he was participating, by videoconference, in the Third Edition of the Global Manufacturing and Industrialisation Summit. At the event, promoted by the United Nations Industrial Development Agency (UNIDO), President João Lourenço stressed that Africa's economic, industrial and technological development would depend on a serious commitment to the massive training of qualified staff in the most different branches of knowledge. According to the Angolan President, the investment in training must be accompanied by the creation of policies that will motivate the permanence of these executives in their respective countries. The statesman noted that "Africa is one of the continents with the world's greatest reserves of natural resources such as water from rivers and lakes, arable land, forests and abundant mineral resources, including some rare and strategic ones, but it is nevertheless, paradoxically, the least developed continent in economic, industrial and technological terms". João Lourenço considered that "the colonisation to which the continent has been subjected for centuries and the present relations between Africa and the industrialised world have contributed negatively to the present situation, in the unjust trade of the raw materials produced by us and the consumer goods manufactured by the most developed". The President of the Republic argued that it is necessary not only to create jobs in Africa, but also to invest in infrastructure such as roads, ports, railways, the production and distribution of water and electricity, as well as in telecommunications and information technologies". (ANGOP)

Key Words: ANGOP, Africa, Global Trade

PAN AFRICA

World Trade Organization: How an African head could make a difference – With three of the eight candidates to become the next leader of the World Trade Organization (WTO) coming from Africa, BBC Africa business editor Zawadi Mudibo looks at what difference having one of them at the helm would make for the continent. There is a growing feeling among African diplomats that someone from the continent should be at the helm of one of the world's top economic institutions. Whereas an American has always led the World Bank and a European has always been at the head of the International Monetary Fund, an African has never taken an equivalent position.But if one from Nigeria's Ngozi Okonjo-Iweala, Kenya's Amina Mohamed or Egypt's Abdel-Hamid Mamdouh emerges from the long selection process as the WTO's next director-general, the continent can feel that it is playing in the same league as the rest of the world. The WTO sets the rules for global trade and adjudicates in trade disputes between nations. It is also, according to its website, supposed to "open trade for the benefit of all". The Geneva-based organisation's ability to get global agreements of basic principles that every country signs up to has been hamstrung in recent years but the WTO leader has influence and a bully pulpit. The director-general attends G7 and G20 meeting and can broker disputes between world leaders. But is there more to be gained for the continent aside from the diplomatic profile?  (BBC)

Key Words: Africa, Trade, Regional Integration

Ethiopian in Talks With South African Flag Carrier on Rescue – Ethiopian Airlines Group is among companies in talks with South Africa’s government about potentially offering support to the country’s insolvent state airline, according to people familiar with the matter. Africa’s biggest carrier is considering ways to help bankrupt South African Airways fly again after more than five months of dormancy, said the people, who asked not to be identified as the talks are private. Taking a stake in the carrier is one of the options under discussion, they said, though negotiations are ongoing and an agreement may not be reached. South Africa needs to raise more than 10 billion rand ($595 million) to revive SAA, according to a rescue plan compiled by administrators and backed by both the state and labor groups. Yet Finance Minister Tito Mboweni has said the funds should come from private sources, committing only to help “mobilize” the required amount. SAA was placed under administrative protection in December, before the coronavirus crisis hit. Much of the funding is likely to come from private financial backers rather than Ethiopian, which would bring more operational expertise to the table, the people said. Ethiopian Chief Executive Officer Tewolde GebreMariam said talks have taken place in the past but were put on hold. He referred questions about the current situation to Abel Alemu, the airline’s regional manager for southern Africawho didn’t immediately comment. (Bloomberg)

Key Words: Private Sector, Africa, COVID-19

The Role of Digitalization in the Decade of Action for Africa – It is widely recognized that digitalization is one of the most powerful tools for implementing the 2030 Agenda for Sustainable Development and Africa’s Agenda 2063. Digital applications are already driving socio-economic transformation, increasing efficient production and distribution of goods and services, opening up new opportunities for income generation for millions of poor people, enhancing connectivity between people, societies, government, and organizations. In the last fifteen years, the growth of digital technology, mainly driven by the mobile revolution and associated innovations has been one of the bright spots for Africa’s development. This progress has also raised hope that we can truly accelerate the implementation of the SDGs. Today, more than 80 per cent of Africa’s population has a mobile phone subscription.[1] Africa is still the least connected region compared to other regions of the world with about 28,2 per cent internet coverage and 34 per cent to mobile broadband. Few citizens have digital IDs, businesses adopting digital technologies remain the exception rather than the norm, and few governments are investing strategically in developing digital infrastructure, services, skills, and entrepreneurship.

There is also a need to adapt and harmonize legislations on technology, including intellectual property and data privacy, to truly unleash Africa’s digital potential. To tackle these challenges, ECA, through its Centre of Excellence for Digital Identity, Trade and Economy, established in 2018, is providing the necessary support to Member States to use digitalization, as catalyst for inclusive and sustainable growth in Africa, contributing significantly to the attainment of the sustainable development goals (SDGs). Together with the African Union Commission, we have developed and started to implement the African Union’s Digital Transformation Strategy for Africa (2020–2030) as a blueprint and master plan for transforming the continent’s economy and societies. ECA in collaboration with the World Bank and others UN System Agencies is also undertaking country level engagement to support the design and implementation of digital ID programmes, including exploiting linkages with the broader digital economy for achieving SDGs. (tralac)

Key Words: Africa, Trade, Regional Integration

The Unfinished Agenda of Financing Africa’s COVID-19 Response – As summer winds down, another wave of COVID-19 infections looms. While cases remain under control in Cambodia, Denmark, Mauritius, and Morocco, they are on the rise in Ethiopia and parts of the United States. Infections have risen so sharply in France, Kenya, and Spain that new lockdowns may be imminent. In Brazil and South Africa, the peak may be yet to come. Few countries are prepared for the menacing autumn that lies ahead. This is particularly true in Africa, where the public-health and economic response has not come anywhere near matching the scale of the COVID-19 crisis. So far, Africa has reported more than 1.2 million COVID-19 infections and over 30,000 deaths. Yet only 12 of Africa’s 54 countries have tested more than 10% of their population. And while community transmission increases, contact-tracing efforts remain tentative. Yet lockdowns cost the continent over $65 billion per month. The International Monetary Fund now expects economic activity in Sub-Saharan Africa to contract by 3.2% this year. While the COVID-19 crisis has spared no country, only some have been able to implement large-scale support schemes. The US quickly passed a $2 trillion stimulus package, including direct payments to households, enhanced unemployment benefits, and financial support for ailing businesses. The United Kingdom’s $400 billion support package has helped to keep businesses afloat and unemployment in check, such as by paying a large share of furloughed employees’ wages. (Project Syndicate)

Key Words: Africa, AfCFTA, Regional Integration

AU-backed app seeks to speed up border re-openings – Two major African public bodies are promoting a new technology that could connect the continent’s Covid-19 testing centres and ease a re-opening of travel across the region. The African Union and the Africa Centres for Disease Control and Prevention are encouraging member states to integrate the mobile-based PanaBIOS platform that would allow results from facilities across the continent to be centralised. So far, only Ghana is using the service. “Ghana is being used as the pioneer,” the West African country’s communication minister, Ursula Owusu-Ekuful, said in the capital, Accra. “The learnings from the uptake of the app and the usage of the app will be shared with the Africa CDC and be applied by other African countries,” she said. Most African nations have either kept their borders closed since the pandemic began to spread or re-opened with tight restrictions. Some require multiple negative coronavirus tests and, in some cases, self-isolation at a designated hotel at the expense of the traveller. Ghana, which resumed international flights on Tuesday, still requires a pre-arrival and on-arrival test to gain entry. PanaBIOS may eliminate the need for travellers to take repeated tests so long as they are coming from a country that’s also signed up to the platform, Preston Asante, a spokesman, said at the Ghanaian launch. The implementation of the technology, developed by Koldchain, a Kenyan start-up, is being funded by AfroChampions, an organisation that brings together some of the biggest companies on the continent. (Tech Central)

Key Words: Africa, AU, Regional Integration

NORTH AFRICA

Egypt keen to enhance regional, international cooperation for industrial integration: Trade Minister – Egypt is keen to enhance regional and international cooperation to achieve industrial integration with various worlld development institutions, according to Minister of Trade and Industry Nevine Gamea. Gamea affirmed that this was being conducted in a way that contributes to achieving the UN’s Sustainable Development Goals (SDGs) as part of Egypt’s Vision 2030. The minister’s remarks came during her participation in the virtual Global Manufacturing and Industrialisation Summit, which is being held for the third time. She delivered a speech on behalf of Egypt’s President Abdel Fattah Al-Sisi during the conference, held under the slogan “Glocalisation: Towards Inclusive and Sustainable Global Value Chains”. Gamea indicated that the Egyptian government has undertaken significant efforts to enhance industrial cooperation with many African countries, to implement joint industrial development programmes and projects. These have come in addition to the government’s encouraging Egyptian companies to establish their presence across the African continent to implement infrastructure and logistical linkage projects.

 It is expected that these projects will contribute to supporting Egypt’s trade and joint manufacturing movement on the regional level across Africa. The conference has been organised by the UAE’s Ministry of Industry and Advanced Technology in cooperation with the United Nations Industrial Development Organization (UNIDO). This year’s virtual summit is hosting 100 participants, ranging from political leaders, Ministers of Trade and Industry, and industrial sector leaders from around the world. Gamea said that the summit represents an excellent opportunity to meet experts, industrialists and decision-makers from around the world to exchange ideas, knowledge and experiences. This is aimed at supporting the industrial sector’s role in achieving economic prosperity, setting general frameworks for government policies and strengthening global cooperation. (Zawya)

Key Words: North Africa, COVID-19, Trade

EAST AFRICA

External trade rebounds on easing global restrictions  - Kenya’s expenditure on imports in July rose 14 per cent month-on-month to Sh138.76 billion, signalling increased trade activity in the economy as countries continue to ease measures put in place to reduce the spread of Covid-19. Data from the Kenya National Bureau of Statistics (KNBS) also reveals a continuous increase in the country’s export earnings to Sh52 billion in July from a low of Sh43 billion April. July’s consumption of imported goods was the second highest this year after January’s Sh155 billion. The country’s import bill fell to a low of Sh108 billion in May as a result of the pandemic. Consequently, due to the lower imports in the April to June period, the trade deficit for the first seven months of 2020 narrowed by 19.5 per cent to Sh546 billion from Sh678.9 billion reported over a similar period last year.At the onset of the pandemic global trade volumes were expected to fall, reversing gains made in inter-regional trade, which has been growing over the years. “Shutdown in mass production and supply chain disruptions due to the rare twin supply-demand shock will cause further uncertainty in Africa, a continent already grappling with widespread geopolitical and economic instability,” said the World Bank in June. In a bid to control the spread of the virus, Kenya in April instituted measures that included travel restrictions from countries that were hard hit by the virus, and a ban on importation of second-hand clothes, which was only lifted last month. Non-food industrial suppliers accounted for 39 per cent (Sh54.5 billion) of the country’s July imports, indicating that businesses were coming back to activity. (Business Daily)

Key Words: EAC, Regional Integration, Trade

RWANDA TO HOST THE FIRST VIRTUAL AGRF SUMMIT 8-11 SEPTEMBER 2020- In light of the COVID-19 pandemic, Hon. Dr. Gérardine Mukeshimana, Minister of Agriculture and Animal Resources Rwanda and Dr. Agnes Kalibata, President of AGRA on behalf of the Government of Rwanda and AGRF partners, announced today at a virtual press briefing that the Tenth Annual AGRF Summit will be held virtually between 8 – 11 September 2020. The AGRF Summit, which brings together over 2000 delegates from governments, the civil society, the private sector, research community and development partners will be held, under the theme: “Feed the Cities, Grow the Continent – Leveraging Urban Food Markets to Achieve Sustainable Food Systems in Africa.” The theme of the summit, “Feed the Cities, Grow the Continent: Leveraging Urban Food Markets to Achieve Sustainable Food Systems in Africa,” is a call to action to rethink our food systems to deliver resilient, better nourished, and more prosperous outcomes for all. According to the UN Food and Agriculture Organisation (FAO), 61 percent of the world population will be living in urban areas by the year 2025. FAO further states that more than half of Sub Saharan Africa (SSA) population could be living in urban areas by 2050 posing huge challenges for poor towns and cities, which already face challenges such as poverty and inequalities. To discuss these issues, high-level dignitaries, including current and former Heads of State and Government; Agriculture and Finance Ministers; Central Bank Governors; top and emerging industry leaders from the private sector; lead representatives of farmer organizations; eminent leaders of global and regional development institutions; and key non-governmental implementing partners have been invited to the virtual summit, which had originally been scheduled to take place in Kigali, Rwanda. (AGRF)

Key Words: East Africa, Regional Integration, Trade

WEST AFRICA

ECA’s West Africa office undertakes training in generational economics and national transfer accounts methodologies – Experts from the ECA Sub-Regional Office for West Africa participated virtually in a capacity building workshop on generational economics and National Transfer Accounts (NTA) methodologies. Organized in partnership with the Regional Consortium for Research in Generational Economics (CREG), the workshop, was aimed at strengthening the capacities of staff to undertake activities that would support member states to integrate demographic dividend issues in their development policies. Staff undertook training along five modules, namely: Theory of Generational Economics, Consumption Profiles, Labour Income Profiles, Life-Cycle Deficit and Demographic Dividend Profiles. In her opening remarks the Director of the ECA SRO-WA, Ngone Diop, said that with a population of 391 million inhabitants in West Africa in 2019 that is estimated to double by 2100, i.e. to 781 million inhabitants, according to the lowest projections, there is a need to invest in the demographic transition arises with urgency.

“Capturing the demographic dividend in West Africa is essential for improving the living conditions of our populations through sustainable development and the structural transformation of our economies," she said. She highlighted the need for staff to familiarise themselves with the handbook for measuring the generational economy, published in 2013 by the United Nations, citing its importance in the Subregional Office’s vision of investing in approaches aligned to demographic economics, adding that the ECA will do everything possible to institutionalize the NTA approach and support countries to institutionalize it. Under the leadership of the ECA Executive Secretary, Ms. Vera Songwe and following the review of the Commission's strategic framework, Centres of Excellence on themes in line with Africa's aspirations for growth and prosperity were set up. The ECA SRO-WA hosts the Centre of Excellence on Demographic Dynamics for Development (DDD). (UNECA)

Key Words: UNECA, Regional Integration, Trade

Revving up diversification to overcome post COVID-19 challenges - The impact of COVID-19 in Africa has created a sense of urgency and inspired calls for coordinated response to mitigate it’s devastating effects and lay the foundation for long-term recovery. Nigeria faces a greater challenge than many other countries from the pandemic as a result of being the largest economy in Africa, with a population of 200 million. Prior to the pandemic, Nigeria had suffered some underlining challenges, which have further heightened the severity of the current crisis on the economy. The economic impact of COVID-19 has been projected to be profound, especially with the fall in the price of crude oil (which has greatly affected the government’s revenue) and the general downturn in major sectors of the economy. Economists at the weekend submitted that diversification both of revenue and gross domestic product (GDP) is critical in a post-COVID-19 era given the volatility of the oil market. They said that despite the emphasis on leveraging the non-oil export particularly the real sector to diversify the economy, earn foreign exchange and create jobs, the implementation of the diversification agenda has continued to suffer setbacks.

They argued that this is the right time to wean the economy from over-dependence on oil and gas, and shield it from vulnerability to global shocks. The Director, Centre for Economic Policy Analysis and Research (CEPAR), University of Lagos, Prof. Ndubisi Nwokoma, warned that the economy might undergo serious challenges unless the diversification project is vigorously pursued, with success recorded in all sectors. “Diversification of the economy has been an agenda of various administrations in Nigeria over time, particularly in the post-1970 oil boom era. It’s not new as an economic policy stand. (The Guardian)

Key Words: WA, Regional Integration, AfCFTA

SOUTHERN AFRICA

Covid wave brings second quarter slide– South Africans should brace themselves for a further slump in the economy, as gross domestic product (GDP) numbers for the second quarter of the year are expected to plummet. Statistics South Africa is due to release the GDP numbers on Tuesday next week. The organisation said the Covid-19 lockdown had affected its ability to collect data. Jeff Schultz, a senior economist at BNP Paribas SA, believes the worst of the coronavirus disruptions are behind us, but says the GDP numbers are likely to be less than desirable.  BNP has downgraded the country’s second quarter GDP growth forecast to -51.5% from the previous 40% estimate.  BNP says the South African Reserve Bank’s GDP estimates for both this year and the next remain tilted to the downside. This contraction is despite the Reserve Bank’s efforts to cut rates by 300 points this year to mitigate the negative effects of Covid-19.  Last month, Reserve Bank governor Lesetja Kganyago speaking at the Cape Town Press Club, said inflation would not be a problem for the country for the next 12 to 18 months. He added that quantitative easing — where the central bank increases money supply by buying government securities or other financial assets — is something the bank would not embark on because the country’s interest rates and inflation are not at zero percent.(Mail Guardian)

Key Words: SA, Business, COVID-19

Covid-19 lockdowns in Sadc spawn massive smuggling – REGIONAL revenue authorities have established collaborative partnerships to combat the proliferation of smuggled goods in the wake of Covid-19 transborder restrictions. Information collected from revenue authorities from five countries suggests that illicit trade, mostly in consumables like alcohol, cigarettes and groceries, has boomed in the five months that regional states imposed lockdowns restricting cross-border movements to contain the spread of the coronavirus. This has, however, opened floodgates for illicit trading across the region’s porous borders. This is enabled by the fact that Sadc countries are highly dependent on each other for goods and services given their interconnectedness. Zambia Revenue Authority (ZRA) public relations officer Topys Sikalinda said they were collaborating with revenue authorities from other countries they share borders with to try and curb smuggling. “We have declared zero tolerance on smuggling of all forms, transit frauds, under declarations, under valuations, miscalculations and false documentations among others. This is our hope for closing the gap on lost revenue and all our neighbours are collaborating with us,” Sikalinda said. He added that the authority was now making use of information and communication tools that help combat smuggling. They have used this information to intercept huge quantities of alcohol and groceries, which were being smuggled from Zimbabwe to Zambia. (Zimbabwe Independent)

Key Words: Regional Integration, Regional Integration, Economic Growth