ATPC DAILY DIGEST 14 SEPTEMBER 2020

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

Reforming the World Trade Organization: Prospects for Transatlantic Cooperation and the Global Trade System – The World Trade Organization (WTO), which has been the cornerstone of the multilateral rules-based global trading system since its inception in 1995, faces a make-or-break moment. Even before the COVID-19 pandemic, all three of the organization’s functions – providing a negotiation forum to liberalize trade and establish new rules, monitoring trade policies, and resolving disputes between its 164 members – faced challenges. To reinvigorate the WTO, reform needs to cover all three pillars. Of particular note is the need for a permanent solution to the crisis of the WTO’s Appellate Body and dispute settlement system. The Appellate Body’s operations have effectively been suspended since December 2019, as the US’s blocking of appointments has left the body without a quorum of adjudicators needed to hear appeals. Ending the impasse will require both the procedural and substantive concerns of the US to be addressed. For the most part, these reflect long-standing and systemic issues that not only have been voiced by previous US administrations but are shared by many other WTO members (even if they do not approve of the Trump administration’s tactics).

The crisis with the dispute settlement function of the WTO is closely linked to the breakdown in its negotiation function. While the global trade landscape has changed significantly over the past 25 years, WTO rules have not kept pace. Modernizing the WTO will necessitate the development of a new set of rules for dealing with digital trade and e-commerce. WTO members will also have to deal more effectively with China’s trade policies and practices, including how to better handle state-owned enterprises and industrial subsidies. Addressing the issue of subsidies is becoming more important due to the implications of COVID-19 for state provision of economic support in many countries. A better alignment of trade policy and environmental sustainability is also needed to keep the WTO relevant. To make progress on all these fronts, an increased focus on ‘plurilateral’ negotiations – which involve subsets of WTO members and often focus on a particular sector – could offer a way forward. (Chatham House)

Key Words: WTO, 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

Ambassador Lighthizer’s Five-Point Plan to Reform the WTO Is Our Best Shot At Bringing Jobs and Factories Home - U.S. Trade Representative Robert Lighthizer recently published an op-ed in the Wall Street Journal detailing a five-point plan for reforming the World Trade Organization (WTO). Lighthizer’s plan received superficial criticism from all his usual detractors. But what he proposed is genius. Lighthizer’s plan will expose the hypocrisy of so-called ‘free traders’ and deftly challenges them to essentially put up or shut up once executed. This article breaks down Lighthizer’s five-point plan. It explains how success is possible whether or not others play ball, and why it should be the most consequential development in U.S. trade since the signing of the General Agreement on Tariffs and Trade (GATT) in 1947.

THE GATT BACKSTORY - Before we jump in, a quick primer on the GATT, because that’s what Ambassador Lighthizer’s five-point plan is all about. After WWII, the U.S. was a manufacturing powerhouse and wanted export access to the markets it had just saved from totalitarian domination. To that end, the GATT was negotiated among the world’s market economies. Primarily drafted between the Allied powers, twenty-three nations eventually signed on, including Brazil, India, and even China—although Beijing dropped out after the country’s communist takeover. The GATT did two overarching things, these are the primary two principles of the agreement:

First, it set tariffs among all the signatories under a principle called “Most-Favored Nation” (MFN).
Second, it required all the signatories to provide ‘National Treatment’ to goods imported from other signatory countries.

(CPA)

Key Words: Global Trade, Africa, USA

The Trump administration is investing in African e-commerce startups focused on rural areas – The United States’ International Development Finance Corporation (DFC) has backed two fledgling e-commerce startups operating in East Africa as part of its latest quarterly $3.6 billion investment spend. The DFC confirmed a $5 million equity investment in Copia Global, a Kenya-based e-commerce and logistics startup that focuses on under-served consumers in rural areas. The quarterly spend—the corporation’s largest ever, also included a $1 million equity investment in Kasha, a women-focused e-commerce player operating in Kenya and Uganda. While notable e-commerce companies like Jumia and South Africa’s TakeALot, have raised hundreds of millions of dollars on the promise of dominating urban centers and middle-class customers in Africa’s largest cities, DFC appears to be targeting startups with a more linear focus. Copia serves customers in rural Kenya through a 5,000-strong agent network comprising mainly of local, small shopkeepers who earn commissions by serving as “points of aggregation of orders and delivery distribution.” Essentially, rather than make purchases online via a website or consumer-facing mobile app, Copia customers walk into stores of partnered agents who place orders on their behalf, take payments and serve as delivery points. The startup raised $26 million in a Series B round last year. (Quartz Africa)

Key Words: Global Trade, Africa, USA

IEA says green hydrogen is ‘ready for big time’ and lists Africa as key production site – Africa has been listed, in a new International Energy Agency (IEA) report, as one of the locations that could emerge as dominant in the production of green hydrogen, which the agency says is required to extend the decarbonisation reach of renewable electricity to industries where the direct use of power is difficult, such as steel manufacturing and aviation. Published on September 10, the IEA’s ‘Energy Technology Perspectives 2020’ report says the global capacity of electrolysers, which produce hydrogen from water and electricity, will need to rise sharply as part of a broader, multi-technology effort to align the global energy system with international climate goals. IEA executive director Dr Fatih Birol said the report, which reviewed over 800 technology options, highlighted the scale of the challenge, but also offered policymakers and business leaders insight into the game-changing solutions available for accelerating clean-energy transitions. Besides spreading the use of clean electricity into more parts of the economy, which the report described as the single largest contributor to reaching net-zero emissions by 2070, the decarbonisation role of hydrogen and carbon capture, utilisation and storage (CCUS) was also highlighted. Birol said that both solutions were “ready for the big time”, but that their mass deployment would require supportive government policy so as to direct investors into making the right technology investments. Doing so in line with the IEA’s Sustainable Development Scenario, would result in the share of electricity in final energy demand rising from one-fifth today to nearly 50% in 2070, contributing almost one-fifth of cumulative carbon savings. The Sustainable Development Scenario is calibrated to the Paris Climate Agreement and the United Nations Sustainable Development Agenda for ensuring universal access to modern energy by 2030 and facilitating a dramatic reduction in energy related air pollution. (Engineering News)

Key Words: Global Trade, Africa, IEA

PAN AFRICA

Pan-African Private Sector Trade and Investment Committee (PAFTRAC) challenges WTO to hear Africa’s voice – Communiqué sets out a road map for WTO reform; Communiqué calls for development to be at the centre of WTO reform; Agriculture subsidies and non-tariff barriers highlighted as a specific hindrance to development. Following a meeting convened by the Pan-African Private Sector Trade and Investment Committee (PAFTRAC) and hosted by the Afreximbank, a communiqué addressed to members of the WTO and the eight candidates who have been shortlisted as the institution’s next Director General was released yesterday calling for a wide range of reforms. The communiqué was formulated following numerous consultations with PAFTRAC members, its institutional partners, and through a comprehensive survey of the African private sector. Within it, the Committee have highlighted a number of recommendations to ensure the institution is more effective in growing global trade but doing so in a manner that is fair to all. “Africa has played an important but largely under-valued role in the global economy”. The communiqué stated that “ignoring the voice of Africa and other emerging economies will have dramatic consequences for and undermine the relevance of the WTO and the rules-based system at a time when multilateralism is already under threat.”In the opening remarks at the meeting, the President of the Afreximbank stated that “Africa has played an important but largely under-valued role in the global economy.” He cited that Africa’s global share of trade has fallen from 4.4% in 1970 to 2.5% today, whilst the share of Asia has risen from 7.7% to 20% over that same period. “Whilst this is the result of numerous factors, including fragmented markets and persistent supply-side constraints,” he said, “tariff escalations and stringent standards on final goods in developed economies have limited Africa’s potential to move up value chains.” (Africa Newsroom)

Key Words: AfCFTA, Trade, Regional Integration

AU plans common currency, market for African countries - The African Union-Economic, Social and Cultural Council (AU-ECOSOCC, Nigeria), on Thursday, said it is considering common currency and market for over 50 countries in the continent as part of its development plans under ‘Agenda 2063′. It also expressed its displeasure towards the way many African countries are treating their respective citizens, saying by the end of 2020, it would ‘silent the guns’. Nigeria’s Representative for AU-ECOSOCC, Dr Tunji John, disclosed this in Abuja when the AU delegation conferred an award on the Chairman/CEO ONELINK international, Amb. Nmaa Ahmed, in respect to his appointment as Chairman, Advisory Board to Political Affairs Cluster Committee of the assembly. His words: “The African Union ‘Agenda 2063′ is a brain work for development. The slogan for that agenda is when you say African Union, you will say “Africa we want”. What type of Africa are we envisaging in the next 50 years? We are saying that we need an Africa with a common currency, common market. “When the free protocol, free movement of people can be so eased without any hindrance, a Nigerian can wake up in Nigeria and find his way to South Africa without necessarily queuing for visa in South African Embassies,” he said. John noted that the AU would leave no stone unturned in seeing that policies, programmes and framework for developments on the continent are properly implemented and domesticated across regions the same way SDGs of United Nations is done. He added, “It is also worthy to note that 2020 is a year of silencing the guns within the Africa continent. I would have stood here to be speaking authoritatively, considering the way we have been working with people of like-minds we have put together that all guns would have been put to silence by now if not because of COVID-19. Notwithstanding, we are still assuring the general public that all guns will completely be silent by the end of year 2020.” (The Guardian)

Key Words: AU, AfCFTA, Regional Integration

How smallholder farmers can combat their reliance on staple crops - To combat the adverse effects of climate change, smallholder farmers need to adapt and diversify what they grow. That requires finding better ways to share information and knowledge, says Morris Akiri, regional director for Africa at the Centre for Agriculture and Biosciences International. The world’s population relies overwhelmingly on four staple crops which together account for more than three-quarters of our food supply: maize, rice, soybean and wheat. Global food shortages will arise when these crops fail in a warmer climate, as is increasingly the case. We need to diversify. But this requires the world’s 500m small-scale farmers, who grow most of the world’s food, to adapt—which is easier said than done. Smallholders face a number of barriers from lack of knowledge to poor market access.

Sharing knowledge - First, we need to empower smallholders with agricultural and scientific knowledge. Few have access to the wealth of information that would help them grow varied, nutritious produce. Climate change poses a real threat to smallholders and their hopes of diversifying: it makes weather unpredictable and reduces arable land and water. Crop pests and diseases pose a particular threat. As the climate warms, species migrate to new regions where farmers may lack the skills to stop their spread. We need to help smallholders prevent, detect and control these pests. Adaptation is vital, and knowledge is the foundation of adaptation. We must share knowledge about climate-smart farming with smallholders; practical information that strengthens their ability to diversify. Projects such as Climate Smart Villages help smallholders to plant resilient varieties of crops while enriching the soil and restoring agro-ecosystem health. (EIU)

Key Words: Trade, Africa, COVID-19

Why Africa’s Hospitality Sector Is Key To The Continent’s Economic Recovery Post Covid-19 – While Africa still accounts for relatively few Covid-19 deaths compared to the rest of the world, the economic impacts of the pandemic on the continent continue to grow. GDP growth for the continent has been slashed as governments across the globe implement harsh containment measures including international travel bans. In addition, most African governments lack the fiscal capacity to protect businesses and entrepreneurs through stimulus packages as they have in developed nations, such as the U.S. and Europe. One of the worst hit industries in Africa is the tourism and hospitality sector, one of the most significant contributors to the continent’s economic and social growth. Prior to Covid-19, the continent attracted 70m tourist arrivals in 2019, generating more than US$38bn. The sector employs about 25 million people across the Continent. Travel and tourism accounts for one in five of all new jobs created worldwide for the last five years.

The fall-out from Covid-19 looks set to change this picture dramatically over the mid to long-term. Moreover, sub-Saharan Africa’s hospitality sector is highly fragmented with many small players, often operating just a few assets each. In challenging times, this factor compresses the availability and affordability of capital as most hotel owners simply do not have the capacity to weather the storm. Lack of available financing was already one of the most important challenges for the hospitality industry in Africa prior to the Covid-19 crisis. Over the longer-term, the question turns to how finance can be found to lead an eventual rehabilitation of Africa’s hospitality sector and job preservation. There is no doubt that it will emerge looking very different from when it entered the Covid-19 crisis. Rigorous constraints in terms of how people can travel will last a significant period of time both domestically and cross border, adding further pressure. Traditional funding lines are likely to be harder to come by as the continent’s banks try to stabilise and aid recovery across multiple sectors. Private investors have their own cash constraints, and many are in fundraising mode rather than focussing on deployment. (africa.com)

Key Words: Africa, AfCFTA, Regional Integration

How Africa can manufacture to meet its own pharmaceutical needs – Although pharmaceutical products are currently manufactured in countries such as South Africa, Kenya, Morocco and Egypt, as a whole Africa currently imports more than 80 per cent of its pharmaceutical and medical consumables. It is unsustainable. But as far back as 2007, the New Partnership for Africa’s Development (now the African Union Development Agency, AUDA-NEPAD) sought to address Africa’s overreliance on imports of pharmaceutical products when it developed the Pharmaceutical Manufacturing Plan for Africa (PMPA), as mandated in the Assembly of AU heads of state decision of 2005. In 2012, the Assembly of Heads of State endorsed a PMPA business plan which consists of a package of technical solutions to some of the critical challenges confronting the continent’s pharmaceutical industry. Some of the proposed solutions include strengthening the regulatory systems and establishing a one-stop-shop for information, data and business intelligence for industry players—governments, the private sector, Regional Economic Communities and so on. To boost local pharmaceutical production and in turn improve public health outcomes, the PMPA business plan strongly encourages the procurement of medical products from Africa-based companies. In addition to strengthening the procurement and supply chain management systems, the plan recommends the use of pooled procurement as a mechanism to incentivize local manufacturers to address maternal, new-born and child health. Improved access, quality, availability and affordability of pharmaceutical products, as well as increased economic benefits through sustainability, competitiveness, and self-reliance of the industry, are some of the objectives of the business plan. The PMPA business plan underscores the urgency in addressing the challenges facing the industry. One such challenge is a lack of affordable financing and modern technology, which hampers business expansion. (Africa Renewal)

Key Words: AfCFTA, Trade, COVID-19

The Africa Nexus: Intra-Trade and Investment as drivers of African Development - Brand South Africa today hosted an Africa nexus research reference group webinar with key objectives to determine insights and perspectives on how the African Continental Free Trade (AcFTA) could enable economic recovery and development in the context of the impact of the COVID-19 pandemic. The purpose of the research reference group was to bring South African companies together that have experience of doing business in peer African markets. Over the years Brand South Africa has conducted extensive research in peer markets to determine the reputation, and profile of South Africa as an investor and trade partner. Through this research it has emerged that market entry strategies adopted by South African companies when they enter peer markets is a critical focus area if the country is to deepen its business relations across the continent. This is especially important in this period where the AcFTA is gradually being operationalised. The participants in today’s research reference group were asked to share insights and lessons learnt from their work across the region as either practitioners or business experts. In this context several major lessons emerged. One of the major insights from the session is that African case studies regarding doing business and market entry is in high demand in other regions of the world. This is a result of growing interest in opportunities in the African region. In terms of developing successful market entry strategies it also emerged that the development of local partnerships, networks and relationships of trust is a must have in ensuring one’s success when entering peer African markets. (Brand South Africa)

Key Words: AfCFTA, Trade, COVID-19

COVID-19: New ECA report calls on governments to harmonize trade & cross-border policies – The Economic Commission for Africa (ECA) on Thursday launched a new COVID-19 cross-border trade report urging governments on the continent to adopt and harmonize policies that will help continent strike an appropriate balance between curbing the spread of the virus and facilitating emergency and essential trade. Titled Facilitating cross-border trade through a coordinated African response to COVID-19, the report says continued inefficiencies and disruptions to cross-border trade presented significant challenges for Africa’s fight against COVID-19, and risked holding back the continent’s progress towards the attainment of the sustainable development and goals and Africa’s Agenda 2063. Maintaining trade flows as much as possible during the pandemic will be crucial in providing access to essential food and much-needed medical items and in limiting negative impacts on jobs and poverty, said Mr. Stephen Karingi, Director of the ECA’s Regional Integration and Trade Division (RITD) that penned the report. To curtail the rapid spread of the virus, African nations introduced lockdowns and various restrictions that negatively affected cross-border and transit freight transportation. The border restrictions and regulations have helped minimize infections and deaths across the continent but had a negative impact on cross-border trade and economic activity, hindering both significantly. The report recommends that African nations should cooperate and harmonize COVID-19 border regulations to reduce delays, while not undermining the safety of trade. It proposes fast tracking implementation of existing Regional Economic Community (REC) COVID-19 guidelines, including establishing regional coordinating committees with the primary task of addressing operational issues at national borders. In addition, the report says regional efforts must also be coordinated at continental level through the African Union Commission. A common COVID-19 AU Protocol on trade and transport is needed given the overlap in membership of RECs and shared trade facilitation goals of the African Continental Free Trade Area (AfCFTA). (UNECA)

Key Words: UNECA, COVID-19, AfCFTA

How bitcoin gained currency in Africa – Monthly cryptocurrency transfers to and from Africa of under $10,000 (about ¥1.06 million) — typically made by individuals and small businesses — jumped more than 55 percent in a year to reach $316 million in June, the data from U.S. blockchain research firm Chainalysis shows. The number of monthly transfers also rose by almost half, surpassing 600,700, according to Chainalysis, which says the research is the most comprehensive effort yet to map out global crypto use. Much of the activity took place in Nigeria, the continent's biggest economy, along with South Africa and Kenya. This represents a reversal for bitcoin which, despite its birth as a payments tool over a decade ago, has mainly been used for speculation by financial traders rather than for commerce. Why a boom in Africa? Young, tech-savvy populations that have adapted quickly to bitcoin; weaker local currencies that make it harder to get U.S. dollars, the de facto currency of global trade; and complex bureaucracy that complicates money transfers. The bitcoin users interviewed by Reuters, based in five countries from Nigeria to Botswana, said the cryptocurrency was helping people make their businesses nimbler and more profitable, and helping those working in places like Europe and North America hang on to more of the earnings they send home. Yet risks abound. Bitcoin and other cryptocurrencies are unregulated in many countries and their legal status is unclear, meaning there is no safety net and little recourse if you lose funds. For many, converting local currencies to and from bitcoin relies on informal brokers. Prices are volatile, and buying and selling is a complex process that demands technical knowledge. In 2018, the Nigerian central bank warned cryptocurrencies were not legal tender, and that investors were unprotected.

(The Japan Times)

Key Words: Africa, Economic Growth, Bitcoin

EAST AFRICA

Sudan declares state of economic emergency after sharp fall in currency - Sudan declared an economic state of emergency on Thursday after its currency fell sharply in recent weeks, setting up special courts to prosecute what officials called a "systematic operation" to vandalise the economy. The transitional government, in charge of the country since the ouster of Omar al-Bashir last year, will criminalise purchasing, selling, possessing or smuggling raw gold or precious minerals, key hard-currency earners. The pound has declined in recent weeks on what officials blamed on manipulation by those opposing the transitional government. "We are able to simply say what happened is an open war against the revolution, the economy, the government," Information Minister Faisal Saleh told a news conference. Special courts will be set up in coming days to fight smuggling and other illicit activities. Sudan, a gold producer, took steps in June to further open up the precious metals trade to private investors, allowing them to handle all exports and taking the business out of state hands. But authorities recently noted people selling gold at above market price to intentionally move the exchange rate.

"What is happening is a systematic operation to vandalise the Sudanese economy, choke the transitional government, and we will not relent or be complacent," acting Finance Minister Hiba Mohammed Ali said. Bashir's government had tried to crack down on the black-market traders by arresting some of them, but had little success. The currency has been devalued four times since 2018. Inflation in Sudan is second only to that of Venezuela, with the headline rate climbing to 143.78 percent in July. Security forces would also step up border controls to stop the smuggling of commodities, officials said. Justice Minister Nasredeen Abdelbari said Sudan expected to be removed "soon" from a US list of state sponsors of terrorism going back to Bashir's Islamist government. The designation makes Sudan technically ineligible for debt relief and financing from the International Monetary Fund and World Bank. The US Congress must approve any removal. (The EastAfrican)

Key Words: EAC, Regional Integration, Trade

WEST AFRICA

Buhari insists “no kobo” of foreign exchange will be issued for food imports – Buhari insists “no kobo” for food imports sending a loud message to CBN to ban forex for importation for food and fertilizer. President Muhammadu Buhari has warned the Central Bank of Nigeria against implementing any plans geared towards providing forex for the importation of “food items and fertilizers” into the country. The President made this remark via his Twitter handle on Thursday, September 10th as he presided over the National Food Security Council meeting yesterday at the State House, Abuja. According to a series of tweets from the president’s Twitter handle, “I am restating it that nobody importing food or fertilizer should be given foreign exchange from the Central Bank. We will not pay a kobo of our foreign reserves to import food or fertilizer. We will instead empower local farmers and producers.” He also claimed that Nigeria has “a lot of able-bodied young people willing to work, and agriculture is the answer.” Just last week the CBN issued emergency forex importation approvals for companies for the importation of 262,000 tonnes of Maize. The companies are Wacot Limited, Chi farms Limited, Crown Flour Mills Limited, and Premier Feeds Company Limited. It is unclear if this statement by the president affects these plans. (Nairametrics)

Key Words: West Africa, Regional Integration, Trade

SOUTHERN AFRICA

Oil spill threatens Mauritian blue economy, will take “decades to recover” – An oil spill off the coast of Mauritius in July is threating the island nation’s efforts to attain a blue economy. Blue economy is a term used to refer to the sustainable use of ocean resources for economic growth, improved livelihoods and jobs, while preserving the health of the ocean ecosystem. The oil spill was caused by a Japanese-registered cargo vessel, the MV Wakashio that ran aground on July 25 after striking a coral reef, spilling more than 1,000 tonnes of engine oil into the pristine coastal waters of Mauritius. The oil, which has coated beaches, coral reefs and mangroves with a poisonous sludge, has been described as the biggest ecological disaster ever to happen in the Indian Ocean. “We are talking of decades to recover from this damage, and some of it may never recover,” notes Mauritian oceanographer, Vassen Kauppaymuthoo. Mauritius relies heavily on tourism, a sector already heavily impacted by the ongoing Covid-19 pandemic. The sector is the third pillar of the economy after manufacturing and agriculture. It is estimated that more than 100,000 domestic and international tourists annually visit the Blue Bay, where the spill occurred. Scientists note among the factors that are causing great concern are the location of the spill, the type of oil used by the vessel, the time of year, as well as the nature of the beaches. The oil spill occurred at the centre of a network of three internationally renowned and protected nature refuges containing some of the most endangered species on the planet. The Blue Bay Marine Park and the Pointe D’Esny Mangrove Forests are designated as UNESCO Ramsar Protected Sites, as well as the nature preserve of Ile aux Aigrettes, that contain some of the rarest species in the country such as the country’s last remaining low lying ebony forests, which is not found on any other location on the island. (SARDC)

Key Words: SA, Business, COVID-19

Transformation of African Economies – The Case of Botswana as a gateway to doing business in Africa – In order to achieve “A Stronger Europe in the World”, the European Commission identified the development of a new strategy with Africa as a key priority, by “working hand in hand with our neighbours and partners”. With the conclusion of the Cotonou Partnership Agreement on the horizon, this partnership is of increased importance.
In recent EU negotiations, a clear shift in narrative from “development” to “fostering partnerships” is apparent – as seen during the 10th African Union - European Commission meeting in Ethiopia early this year. This shift is also central to the aspirations of the African Union, such as Agenda 2063. In late 2020, Brussels will host the 6th AU-EU Summit. This meeting will take place at a time when Africa’s economic growth continues to increase, estimated to have reached 3.4% in 2019. Botswana’s sound macroeconomic policies, its legal and regulatory frameworks, and strong economic and political institutions make the country a safe and desirable investment destination. With growing infrastructure development and geographically in a central location, Botswana is seen by some as the gateway to doing business in the region, and a credible entry point to access the entire continent. President Mokgweetsi E. K. Masisi, in his 2019 State of the Nation Address, welcomed “sustainable and impactful investment” as a top priority of his Government and committed to transform the country from an upper middle-income country to a high-income country, through the implementation of its blueprint Vision 2036. EURACTIV invites you to this high level Virtual Conference to discuss the new EU Africa Strategy and what can be done to further foster investment. Questions will include:

- What role will the EU have in promoting investment for African Economies?
- How can the 6th AU-EU Summit in October help Africa achieve its transformation goals?
- Is Botswana’s Vision 2036 a good example for forging stronger partnerships with the EU? (EURACTIV)

Key Words: Regional Integration, SA, Trade

New Namibian Terminal 100% operational – A new container terminal at a Namibian port is now fully operational, according to a report by the African Development Bank (ADB). The new terminal at Namibian Ports Authority’s (Namport) Port of Walvis Bay, built between 2014 and 2019 and commissioned in August 2019, is constructed on 40 hectares of land reclaimed from the ocean as part of a nearly US$300m project, said the ADB. It noted “the expansion has steered Walvis Bay towards becoming a logistics hub for southern Africa that aims to meet the growing demand for freight ,while promoting new maritime access to serve the landlocked countries of the Southern Africa Development Community (SADC)”. The ADB provided a ZAR2,982m loan representing over 70% of the project funding.

Project scope - The works included the dredging over 3.9m cubic metres of sand, used partly for the reclamation, construction of a 600m quay wall, the installation of four ship-to-shore (STS) cranes, the construction of a one-kilometre road, and the laying of 2.3km of rail lines. The facility’s electricity supply was also successfully upgraded, the report noted. "Overall, the project has fully achieved its goals," the report said, increasing the terminal's capacity from 355,000 TEUs to 750,000 TEUs yearly. It has also reduced vessel waiting time to less than 8 hours and cut container transit time from 14.5 days to 9.5 days. The demand for services from the Port of Walvis Bay has increased by about 8% following the commissioning of the new terminal, the report notes. (PORTSTRATEGY)

Key Words: Regional Integration, Namibia, Trade

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 14 SEPTEMBER 2020

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