ATPC DAILY DIGEST 10 SEPTEMBER 2020

 

Today’s Topics:

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

COVID-19: Shipping data hints to some recovery in global trade – (UNCTAD)

Auditors call for overhaul of EU’s Africa spending- (EURACTIVE)

WTO Director-General Selection Process: Candidates Present Their Visions, Final Phase Kicks Off- (IISD)

LDC group to seek support for 10 years after graduation(The Financial Express)

Shining a light on women in transport – (Sandton Chronicle)

AFRIPI endorses intellectual property cooperation plan in Africa(AfrIPI)

Sub-Saharan Africa to benefit €5bn from EU green plan(Premium Times)

Germany’s Marshall Plan with Africa will promote innovation and harness the potential of Africa’s youth- (tralac)

‘Covid 19, non tariff barriers killing regional trade’ – Experts(The Independent)

Kenya Secures First Horn of Africa Initiative Project to Boost Regional Integration and National Development- (Mirage News)

ECOWAS postpones single currency launch – (The Nation)

Ghana and Côte d’Ivoire taste success in raising price of cocoa – (The Africa Report)

Nigeria: Economic group calls for re-opening of closed borders(Journal du Cameroon)

The port of Lomé is a top transshipment platform for goods transiting to Sahel countries(Togo First)

AfCFTA’s postponement affords Nigeria time for ratification(Naija247news)

Citrus industry negotiates a new trade deal(IOL)

South Africa’s GDP tanks 51% in the second quarter – (Business Tech)

 

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

COVID-19: Shipping data hints to some recovery in global trade The number of ships pulling into ports to unload and load containers rebounded in many parts of the world in the third quarter of 2020, according to new UNCTAD calculations. This offers a hopeful sign for world merchandise trade, which suffered a historic year-on-year fall of 27% in the second quarter. Maritime shipping saw a dramatic slowdown earlier this year as government measures used to curb the COVID-19 pandemic restricted economic activities and travel. By mid-June, the average number of container vessels arriving weekly at ports worldwide had sunk to 8,722, an 8.5% year-on-year drop. But new data show that, globally, the average weekly calls have started to recover, rising to 9,265 by early August, just 3% below the levels of one year earlier. “Most of the manufactured goods that we produce and consume are shipped in containers,” says Shamika N. Sirimanne, director of UNCTAD’s technology and logistics division. “The latest containership port call patterns therefore offer a ray of hope for economic recovery from the pandemic.” A new UNCTAD article explores how data on the movement of vessels – which carry over 80% of the goods traded globally – can help policymakers navigate the troubled waters of a crisis while they wait for official statistics on trade and gross domestic product. “Even in the absence of official trade statistics, maritime transport provides reliable near real-time data that can help policymakers make better decisions in managing the recovery from the COVID-19 crisis,” Ms. Sirimanne says. (UNCTAD)

Key Words: UNCTAD, Global Trade, Economic Growth

Auditors call for overhaul of EU’s Africa spending  The European Court of Auditors, which monitors European Union spending, has called for an overhaul of the bloc’s development spending programmes for African, Caribbean and Pacific (ACP) countries to prioritise domestic manufacturing and energy. In a report published on Tuesday (8 September) examining the use of €435 million of EU funding to Kenya between 2014 and 2020, the Court found that the bloc’s ‘standard formula’ for allocating cash to African countries “does not address their specific development obstacles or the funding gap. The country allocations also did not take into account other donors’ grants or loans.” More broadly, the Court argues that the European Commission should “examine the EU’s method for allocating funding between ACP countries and make it conditional upon the recipient country’s performance and commitment to reforms.” “We did not see sufficient evidence that aid under the 11th European Development Fund is channelled to where it can do most to reduce poverty,” said Juhan Parts, the ECA Member responsible for the report. “Job creation is the most effective and sustainable way to reduce poverty, so EU funds should primarily be focused on economic development,” he added. In July, EU leaders agreed a seven year budget plan that will allocate €26 billion to programmes in sub-Saharan Africa between 2021 and 2027. However, development spending from Europe is likely to come under further pressure in the wake of the COVID-19 pandemic, with recessions among donor countries expected to significantly reduce aid budgets. African leaders are expected to demand more support for their manufacturing, agriculture and energy sectors at an EU-African Union summit scheduled for October, although EU officials are tight-lipped on whether the summit will have to be postponed as a result of COVID-19. The summit had been ear-marked as the setpiece when the two sides would agree on a ‘strategic partnership’ between the two continents.  (EURACTIVE)

Key Words: Global Trade, Africa, Business

WTO Director-General Selection Process: Candidates Present Their Visions, Final Phase Kicks Off The third and final phase of the World Trade Organization (WTO) Director-General selection process has commenced, after eight candidates for the post (from Egypt, Kenya, the Republic of Korea, Mexico, Moldova, Nigeria, Saudi Arabia, and the UK) “made themselves known to members.” At the SDG Knowledge Hub, we take a look at the candidates’ visions and priorities for the Organization. On 14 May 2020, Roberto Azevêdo (Brazil) announced that he would step down from his post on 31 August, cutting his second term as WTO Director-General short by one year. The first phase of the 2020 Director-General selection process, during which countries nominated their candidates for the position, commenced on 8 June and concluded on 8 July, resulting in eight nominations, which we reported on here. The second phase of the selection process, in which the candidates “make themselves known to members,” concluded on 7 September 2020, and the third phase began. Much of the current discussion centers around the role of the Director-General in helping solve the WTO’s challenges. During the second phase of the selection process, the eight candidates delivered presentations to the General Council, outlining their priorities and proposals on taking the Organization forward. (IISD)

Key Words: Global Trade, Africa, Business

LDC group to seek support for 10 years after graduation - The group of least developed countries (LDCs) has opted to request the rich nations for extending support measures, available to the graduating LDCs, for at least a period of 10 years after they are excluded from the category, officials said. The proposal will be placed in line with the UN General Assembly resolution 59/209, which stated the need for creation of "smooth transition strategies for countries graduating from the list of LDCs". The United Nations, through the resolution number 67/221 of 2012, had called all members of the World Trade Organisation (WTO) to consider extending the existing special and differential treatment measures and exemptions, available to the graduating countries, for a period appropriate to development situation of the country. The LDC group, in a draft communication, recently circulated among the member states, referred to the context of the current COVID-19 crisis "which may reverse many of the development progress, achieved so far by the graduating LDCs". It said since the creation of the category in 1971, only three LDCs have been able to graduate. "The progress accelerated since 2011, and several LDCs are progressively reaching the different graduation thresholds as defined by the UN Committee on Development Policy (CDP)." "While meeting these criteria remains a major achievement, the graduated LDCs still face significant trade and development challenges and risk of falling back in the LDC category, if their progress is not sustained," it noted. (The Financial Express)

Key Words: Global Trade, LDCs, WTO

 

PAN AFRICA

Shining a light on women in transport To shine a light on the importance of having female players in the private and public sector, Consumer News and Business Channel Africa (CNBC Africa) and the Department of Transport partnered with the Rail Safety Regulator (RSR) to host a panel discussion on 25 August. Deputy Transport Minister Dikeledi Magadzi was joined by an all-female line-up of executives which included Gautrain Management Agency executive Nomsa Sivetshe, RSR acting CEO Tshepo Kgara, CEO of Prasa Rail Nosipho Damasane, Transnet Freight Rail chief executive Sizakele Mzimela and African Union (AU) commissioner in charge of infrastructure, energy, ICT and Tourism Dr Amani Abou-Zeid. The discussion aimed to address issues relating to gender-based violence (GBV), disability, women empowerment and transformation in the transport network environment. According to the deputy minister, this partnership with the RSR was in response to President Cyril Ramaphosa’s call for all departments to amplify their efforts to combat gender-based violence and the fight for women empowerment in the public and private sectors. “[While] we acknowledge the continuous issue of GBV, we must always remember that this is a societal problem. As such, we as a community must come up with solutions together to offset or eradicate the problem,” said Magadzi. AU commissioner Abou-Zeid added that definition violence against women goes far beyond a physical nature. “What is more violent than keeping women poor? What is more violent than denying women access to their rightful positions or benefits? This is also violence and we have to acknowledge that,” she said. According to Abou-Zeid the transport industry in Africa is a multi-billion dollar industry and although it is estimated at $100–130 billion a year women take up a very minimal part of the industry. (Sandton Chronicle)

Key Words: Africa, Trade and Transport, Regional Integration

AFRIPI endorses intellectual property cooperation plan in Africa   On 7 September, AfrIPI -the first-ever African cooperation project focusing on Intellectual Property Rights- held its inaugural Project Steering Committee (PSC) meeting. The project partners – the African Regional Intellectual Property Organization (ARIPO), the Organisation Africaine de la Propriété Intellectuelle (OAPI), the African Union Commission (AUC), the European Commission and the EUIPO – discussed and approved the AfrIPI overall plan and future activities for next years. Among other activities, AfrIPI will support the registration of geographical indications (GIs) in Africa and the EU, the development of IP guidelines for OAPI and ARIPO member states, and train IP examiners on international frameworks (such as The Hague Agreement). Now that the AfrIPi overall and annual plans are approved, the project will enhance protection and promotion of IP Rights in Africa, hence contributing to national economies, trade and business in the region.

“The reason why cooperation is so important is that IP rights are closely related to economic wellbeing – in particular sustainable development, the creation of quality jobs, and of balanced trading conditions. In a globalised economy, especially with the internet by-passing physical borders, it is essential that IP rights are understood in a common way and also protected” said Christian Archambeau, EUIPO Executive Director. AfrIPI becomes fully operational in 2020. For four years, it will support the African Continental Free Trade Area (AfCFTA) and boost continental economic integration. AfrIPI, funded by the European Commission and EUIPO, and managed by EUIPO,  aims to strengthen national and regional IP institutions and enforcement systems, while promoting IP benefits to businesses and other economic actors. In doing so, AfrIPI will reinforce EU and Africa cooperation to further implement all IP-related aspects of AfCFTA. This pan-African free trade area is, as of 2018, the largest in the world in terms of the number of participating countries since the formation of the World Trade Organization. (AfrIPI)

Key Words: Trade, Africa, COVID-19

Sub-Saharan Africa to benefit €5bn from EU green plan Sub-Saharan Africa will benefit five billion euros from the EU Green Economy Recovery Plan, an EU official has said. The Head of Unit, Directorate-General for International Cooperation and Development, European Commission, Leonard Mizzi, made this known at the ongoing 2020 virtual summit of the African Green Revolution Forum (AGRF) hosted by Rwanda. Speaking at a panel discussion tagged: “The Key Role of SMEs in Serving Urban Food Markets,” Mr Mizzi said the fund set aside for sub-Saharan Africa was part of the EU’s seven-year green plan from 2021 to 2027. The head of the unit, who also specialises in Rural Development, Food Security and Nutrition, said that the fund would be used to address water, health, sanitation and social economy. “In a team of European context, which is the full firepower of the European Commission, all EU member states, the EU Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD), member states mobilised 11 billion euros; European Commission mobilised 14 billion euros; EIB mobilised 14.5 billion euros; and EBRD mobilised 4 billion euros. “Sub-Saharan Africa will benefit around five billion euros. The money is a composite amount for emergency, humanitarian with a focus on saving lives but it was also made to address water, health, sanitation and social economy.” Mr Mizzi, however, said that the region must demonstrate economic recovery strategies in line with the EU’s green recovery plan to access the fund targeted at the African Continental Free Trade Area. He said that sub-Saharan nations should focus on developing local and regional markets as well as bridging infrastructure gaps. Mr Mizzi said that the region should also ensure harmonised standards of products and trade operation, identify opportunities for SMEs and address issues of food fortification in the region.  (Premium Times)

Key Words: Africa, AfCFTA, Regional Integration

Germany’s Marshall Plan with Africa will promote innovation and harness the potential of Africa’s youth Germany’s Marshall Plan with Africa marks a new era of cooperation between Europe and Africa that could drive industrial development and deliver huge opportunities for the Africa’s fast-growing youth population, according to speakers at the #GMIS2020 Virtual Summit, which took place from September 4-5. At a panel session on day one of #GMIS2020, representatives from the public sector discussed the factors that are needed to promote industrialisation on the African continent and how policymakers, development partners and the private sector can address these opportunities through initiatives like the Marshall Plan. The collaborative initiative aims to help bolster entrepreneurship and innovation and create the estimated 20 million new jobs needed in Africa every year.

H.E. Gerd Müller, Federal Minister for Economic Cooperation and Development of Germany, said that building EU-African relationships would be a priority under Germany’s sixth month tenure of the Presidency of the Council of the European Union, which began on July 1. “Africa is home to six of the world’s eleven quickest-growing economies,” he said. “It has 89% of the world’s copper, cobalt, and rare earth reserves. Africa is the continent of the future. Germany has set up the Development Investment Fund, a support package of one billion euros for German and European companies that want to get involved in Africa, and for African companies seeking financial resources. Germany is supporting African efforts to strengthen inner-African trade and the diversification of exports by promoting the African continental free trade zone.” (tralac)

Key Words: Africa, Trade, EU

 

EAST AFRICA

‘Covid 19, non tariff barriers killing regional trade’ – Experts - Uganda has condemned the continued use of non-tariff barriers by her East African Community neighbors despite several petitions, saying it beats the purpose for which the community was created. Uganda has for long felt that her neighbors, mainly Kenya, Rwanda, and Tanzania keep backtracking when it comes to implementing the free trade treaties that govern the EAC bloc. Recently, sugar exports to Tanzania have been blocked and returned to Uganda, while Kenya has often blocked Uganda’s sugar, poultry, and dairy products. And in all instances, exporters say, there are no proper reasons given. The Assistant Commissioner for Regional and Bilateral Division External Trade at the Ministry of Trade, Richard Okot Okello, says there must be renewed efforts to remove all barriers if intra-regional trade is to be revamped.   He was speaking at an online regional symposium on the effects of Covid-19 on women’s economic empowerment in East Africa, organized by the Eastern African Sub-Regional Support Initiative, EASSI. Okot-Okello says regional countries have persistently put nationalist and protective measures above the regional mechanisms that were put in place to enhance regional integration. On her part, Dr  Juliet  Wakaisuka, a lecturer at Makerere University Business School, expressed worry that in all the support and economic recovery programs, the special plight of women is not being given special attention. She calls for affirmative action like helping women entrepreneurs formalize their business, and supporting them to adapt fully to the digital-based environment.  The Commercial Attache at the Kenyan Embassy in Uganda Robert Okoth said the falling trade between Uganda and Kenya and the barriers in the region are alarming. Uganda’s exports to Kenya dropped 39 per cent in May due to Covid 19 .  (The Independent)

Key Words: EAC, Regional Integration, Trade

Kenya Secures First Horn of Africa Initiative Project to Boost Regional Integration and National Development - The World Bank Board of Directors today approved $750 million in International Development Association (IDA)* financing to improve the movement of people and goods, digital connectivity and access to social services for over 3.2 million people living in the North Eastern region where the Isiolo-Mandera Regional Road Corridor traverses. Through the new operation – the Horn of Africa Gateway Development Project (HoAGDP) – the World Bank will finance the upgrading of 365 kilometers of the 740-kilometers Isiolo-Mandera Regional Road Corridor and 30km of spur roads, while the upgrading of the remaining sections will be financed by other development partners. The HoAGDP will also finance the laying of a fiber optic cable along the entire 740-kilometer corridor with spurs to local communities; trade facilitation measures, such as border management systems and construction of border posts; the provision of basic socio-economic infrastructure for communities living along the corridor; institutional strengthening; as well as emergency response measures in case of a disaster or catastrophe during the life of the project. “The potential of Northeastern Kenya as a transit and regional trade facilitation zone is presently not fully exploited,” says Josphat Sasia, Lead Transport Specialist and Task Team Leader. “This transformative project will integrate the region and enhance security, inclusion, and a sense of equity, which the communities living in this underserved region of Kenya have desired for a long time. Successful implementation of the project will require the support of the leadership and communities of the region.” (Mirage News)

Key Words: East Africa, Regional Integration, Trade

 

WEST AFRICA

ECOWAS postpones single currency launch The Economic Community of West African States (ECOWAS) has postponed the launch of its planned single currency “ECO”, it was learnt. The regional body said a new date for the launch would be announced later. The was contained in a communique issued at the end of the 57th Summit of the Authorities of Heads of State and Government of ECOWAS. The body said the postponement was done to consolidate the achievements. Consequently, a new roadmap for the single currency programme will be developed. Besides, member states are to be exempted from compliance with the convergence criteria in 2020; while also developing a new macroeconomic convergence and stability pact among the ECOWAS member states. The body, however, agreed to maintain the gradual approach for the launching of ECO. “The authority expresses satisfaction at the improved status of macroeconomic convergence in ECOWAS in 2019, compared to 2018. Nevertheless, it notes that while the convergence phase ended on 31 December 2019, the necessary conditions for ECOWAS to move into the stability and performance consolidation phase have not been met, as set out in the Macroeconomic Convergence and Stability Pact among ECOWAS Member States. It also notes the negative impact of COVID-19 on Member States’compliance with ECOWAS macroeconomic convergence in 2020,” the communique stated. (The Nation)

Key Words: West Africa, Regional Integration, Trade

Ghana and Côte d’Ivoire taste success in raising price of cocoa – Through a joint initiative, Ghana and Côte d’Ivoire have managed to convince chocolate traders and makers to raise the price they pay for cocoa. With Côte d’Ivoire and Ghana, the world’s top two cocoa producers, as well as Nigeria, which ranks fifth behind Ecuador and Cameroon, ECOWAS member countries account for 68% of global cocoa supply. In other words, 3.4 million tonnes were harvested in the 2019-2020 season, out of a worldwide total of 5 million tonnes. The problem is that Africa’s cocoa producing countries capture just 3% of global chocolate industry revenue, according to figures from the International Cocoa Organization (ICCO). Although Côte d’Ivoire produced 2.1 million tonnes of cocoa in 2017 (44% of global output), it brought in just $3.3bn (€2.9bn) from the trade, compared to earnings of $22bn[HE1]  for US chocolate majors. While these three West African nations have substantially increased their cocoa production over the past 20 years, it wasn’t until 26 March 2018 that cocoa farmers and trade federations from Côte d’Ivoire and Ghana formed their first strategic partnership agreement.

A first success - On that date, Ivorian President Alassane Ouattara and his Ghanaian counterpart Nana Akufo-Addo signed the Abidjan Declaration, thereby creating “an OPEC for cocoa”. Through this partnership, Côte d’Ivoire and Ghana – which together produce 65% of the world’s cocoa – will harmonise their sales policies to have greater impact and increase their earnings. Back in July 2019, Côte d’Ivoire’s Coffee and Cocoa Board (CCC) and the Ghana Cocoa Board (COCOBOD) successfully imposed a pricing mechanism to help producers earn a living wage. Their suspension of forward sales of cocoa beans had such a negative impact on global prices that, in less than a month, chocolate traders and makers agreed to the idea of a $400 a tonne premium on all cocoa sales contracts. (The Africa Report)

Key Words: West Africa, Regional Integration, Trade

Nigeria: Economic group calls for re-opening of closed borders - It noted with grave concern the rising level of poverty, unemployment and underemployment in Nigeria, which is predominant among young people and has been exacerbated by the impact of COVID-19 and the slump in commodity prices and urged that while efforts at creating short-term jobs across the country is commendable, a lot more effort must be channeled towards re-skilling, retooling and reviewing our school curriculum. The Group lamented the increasing hunger among the Nigerian populace despite the budgetary allocations and huge sums of money disbursed by the Central Bank of Nigeria (CBN) through the Anchor Borrowers’ Programme. It noted that since the inception of this administration, agriculture and the need to ensure zero hunger for Nigerians has received considerable attention and that “a huge gap remains in meeting the food requirements”. “Evidently, the issues are beyond money and therefore, require a complete overhaul of the management of, and support for the agriculture sector and all related sectors – with a view to getting more value for our investments,” it said. The NESG also expressed its concern about the high level of insecurity across the country and its impact on the business environment and investment flows, which has contributed massively to the current food crisis, unemployment, poverty, increasing community clashes, rising bloodshed and the absence of peace and tranquillity in the land. On the issue of borrowing, the NESG noted that Nigeria’s resort to borrowing (either domestic or international), and quantitative easing by the monetary authorities to fund the large deficit, which has now been made worse by the impact of the COVID-19 pandemic. (Journal du Cameroon)

Key Words: WA, Regional Integration, COVID-19

The port of Lomé is a top transshipment platform for goods transiting to Sahel countries Besides striving to have one of Africa’s top container ports, Lomé’s port, according to recent figures, is also improving its performances relating to transit with Sahel countries. The port of Lomé currently handles more than 2.85 million tons of goods destined to these countries. This is almost three times the volume it did in 2013 - 1.26 million tons or 60% of the infrastructure’s overall transit volumes then. The improvement was driven mostly by activities with Burkina Faso, the leading partner of the port of Lomé. Indeed, at the end of 2019, goods transiting to Togo’s northern neighbor represented 77.7% of the port’s transit volumes (against less than 40% seven years earlier).  Moreover, after moving up and down between 2013 and 2016, transit traffic with Niger (whose main partner port is the port of Cotonou, Benin) has been rising steadily since 2017. For Mali, from 2016, more than 100,000 tons of goods have been transiting through Lomé every year (despite most of its goods passing through Dakar, Conakry, and Abidjan). 

Lomé, transshipment port - The port of Lomé is above all a hub in terms of transshipping. Every year for the past four years, more than a million TEU containers are handled by the port before being sent to other ports across the region. This makes Lomé’s port the first container port in the Gulf of Guinea. Last year, the platform recorded container traffic of 1,500,611 TEU containers and 76% of this volume was due for transshipment (compared to 34% in 2013).  (Togo First)

Key Words: WA, Regional Integration, AfCFTA

AfCFTA’s postponement affords Nigeria time for ratification The Nigerian Office for Trade Negotiations (NOTN), says the postponement of the commencement of African Continental Free Trade Area (AfCFTA) will afford Nigeria the opportunity to ratify the agreement. Mr Victor Liman, the Acting Chief Trade Negotiator and Director-General, NOTN made this known in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja. Naija247news recalls that AfCFTA implementation was expected to commence on July 1, but was disrupted because of the COVID-19 pandemic, thereby, causing both positive and negative implications for Nigeria and Africa as a whole. Liman said the postponement gave Nigeria sufficient time to ratify the AfCFTA agreement, which it signed in 2019 and deposited the same instrument of ratification with the Chairperson of the AU Commission in accordance with Articles 23 and 24 of the agreement. He said this applied to the remaining 23 signatory African countries that were yet to ratify the agreement. “Doing so will enhance the opportunity given by the postponement for African countries to further discuss the modalities and agree on the best strategy for the removal of physical trade and non-tariff barriers to trade. “On the other hand, in as much as the postponed period presents an opportunity for Nigeria and other signatory states to ratify the agreement, it can also result in a relunctance to ratify, thereby delaying the speed of further negotiations on trade,” he said. Liman said that from all indications with the reduction in government revenue across Africa, including Nigeria, postponing the commencement of free trade was a matter of economic and fiscal exigency. (Naija247news)

Key Words: WA, Regional Integration, AfCFTA

 

SOUTHERN AFRICA

South Africa’s GDP tanks 51% in the second quarter – South Africa’s gross domestic product (GDP) dropped by a massive 51% in the second quarter of the year, reflecting the immense damage done to the economy by the Covid-19 lockdown. This pushes South Africa even deeper into recession, after GDP growth for 1Q20 was recorded at -2%, following drops of 0.6% in 3Q19, and 1.4% in 4Q19. It was the fourth consecutive decline in quarterly GDP since the second quarter of 2019, Stats SA said. Manufacturing contracted by 74.9% in the second quarter. All ten manufacturing divisions reported negative growth rates in the second quarter. The divisions that made the largest contributions to the decrease were basic iron and steel, non-ferrous metal products, metal products and machinery; food and beverages; and petroleum, chemical products, rubber and plastic products, Stats SA said. The trade, catering and accommodation industry decreased by 67.6%. Decreased economic activity was reported in wholesale trade, retail trade, motor trade, catering and accommodation. The industry was hit hard as only selected essential goods were allowed to be sold during the early stages of the lockdown. In addition, catering and accommodation establishments were severely restricted during lockdown.  (Business Tech)

Key Words: SA, Business, COVID-19

Citrus industry negotiates a new trade deal   After eleven years of negotiations, South Africa’s citrus industry has been given the go-ahead to export to the Philippines, with the signing of a work plan between the Department of Agriculture, Land Reform and Rural Development, and the Philippines Bureau of Plant and Industry. Agriculture Minister Thoko Didiza made the announcement yesterday as the South African citrus industry estimates that close to 500 000 tons of additional citrus would be available for export by 2024. “The South African citrus industry remains an important sub-sector in agriculture and the department appreciates the ongoing efforts of all concerned parties to ensure promotion, retention and optimisation of South Africa’s export markets for fresh fruit. Both industry and the department will soon communicate to all relevant role players the detailed prescripts of the exports agreement reached with the Philippines towards ensuring full compliance,” the department said. The Citrus Growers Association of Southern Africa (CGA) said with the Philippines importing around 117 000 tons of citrus between 2016 and 2018, the new market will help keep the local industry on its strong growth trajectory. It announced in March that Southern Africa is expected to export a record 143.3 million cartons of citrus fruit to more than 100 countries in 2020. This is a 13% increase when compared to 2019, which saw 126.7 million cartons being exported, generating R20 billion in export revenue and creating 120 000 jobs. “Overall, we expect the citrus industry to grow by a further 500 000 tons over the next three to five years,” said CGA chief executive Justin Chadwick. “Mandarins make up the biggest volumes of citrus imported by the Philippines, with over 80 000 tons imported between 2016 and 2018, the majority (60%) from China, followed by Pakistan (25%). Currently, the largest exporters of mandarins from the Southern Hemisphere to the Philippines are Argentina (8 000 tons or 10%) and Australia (2 000 tons or 3%). Oranges are the second leading citrus import (28 000 tons between 2016 and 2018), with China (22%) and Australia (20%) as the main sources. Lemon imports have also been growing over the past few years, with the US being the predominant supplier followed by China,” he said. (IOL)

Key Words: Regional Integration, SA, Trade