ATPC DAILY DIGEST 18 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

WTO issues report on measures to expedite access to COVID-19 critical goods, services – The note states that trade has played a role in improving access to COVID-19 critical medical goods and services since the start of the pandemic. The shortages of medical personal protective equipment encountered around the world in the early phase of the pandemic have eased, as production and trade have expanded to meet the unparalleled demand spike. Initial data for 41 countries indicates trade in medical goods grew by 38.7 per cent in the first half of 2020, the Secretariat said, although sourcing of certain products remains a challenge for some developing countries. In addition, the note describes a wide range of trade-related measures members have employed, from temporary reductions or deferrals of duties, taxes and charges on COVID-19 critical medical supplies to simplified customs procedures and border clearance. It looks at intellectual property-related measures members have used to facilitate innovation in, and access to, COVID-19 related technologies, such as the use of compulsory or government-use licences, efforts to foster access to relevant patent databases, and steps to make it easier to exchange clinical trial data. It also examines how WTO members have acted to facilitate telemedicine and the international movement of health workers. The large majority of measures referred to in the note are a matter of public record through formal notifications to the WTO, the WTO's trade monitoring report, or its ongoing COVID-19 related monitoring exercise. The report can be found here. (WTO)

Key Words: WTO, Global Trade, Economic Growth

India’s African oil imports hit 10-month high in August: Shipping data – India’s oil imports from Africa jumped to their highest in 10 months in August as refiners switched out more expensive crude from the Middle East, shipping data provided by trade sources showed. The world’s third-biggest oil importer shipped in about 3.95 million barrels per day (bpd) of oil in August, the highest volume since April, with African nations accounting for about 17.5 per cent, the data showed. “Spot prices of west African oil versus Brent were down in the most part of July compared with June. That, along with lower freight, offered an opportunity to buy Nigerian oil,” said Ehsan Ul Haq, analyst with Refinitiv. He said in order to raise revenue, Nigeria was supplying more oil in July than it pledged under a production cut agreement between OPEC and its allies, while Angola was scouting for a new market after the Chinese cut purchases. “And the new home was India.”An internal OPEC report showed Iraq and Nigeria were the least compliant over the May-July period. Strengthening diesel cracks also prompted Indian refiners to buy African grades, while an increase in official selling prices by key Gulf producers, including Saudi Arabia, deterred them, Haq said. India also shipped in Venezuelan oil in August after a gap of two months as Reliance Industries obtained permission from the US to swap diesel for oil. Higher intake of Nigerian and Venezuelan oil lifted the share of OPEC’s oil in India’s overall August imports to 77.6 per cent, the highest since January, from 67.2 per cent last month, the data showed. OPEC’s share was, however, at a record low over the April-August period, the first five months of the fiscal year. (The Hindu Business Line)

Key Words: Global Trade, Africa, India

Europe and Africa at a crossroads - Since her election, EU Commission president Ursula von der Leyen has been trying to maintain an EU leadership role in an overturned multilateral space. The partnership with Africa was dubbed a priority for reasons related to geography, history, economics and migration management. Conversely Europe is Africa’s most important trading partner, although competition from the so-called emerging countries has intensified over the past 20 years. The desire to renew the Africa-Europe partnership has often been evoked but never fully implemented due to a lack of clarity on its objectives, particularly on the African side. In a March 2020 communication, the EU Commission again stated its ambition to forge a ‘partnership of equals’ with Africa. But what does that mean? Although both parties have been committed since 2007 to a strategic partnership that moves away from a focus on aid, this has remained wishful thinking for several reasons. First, the desired collaboration is mainly inspired and driven by the EU. The AU and especially African countries have remaining largely responsive to European issues, and dependent on funding. Second, in their cooperation with the EU, African states are in a scattered row. Some structure their relations with the EU through the African, Caribbean and Pacific Group of States (ACP)-EU partnership governed by the Cotonou Agreement, and others through neighbourhood policies (North Africa). The EU also has specific strategies for the Horn of Africa, the Sahel and the Gulf of Guinea, as well as numerous dialogue processes. This multiplicity of frameworks makes Africa’s willingness to develop a joint and coordinated partnership of equals uncertain. It also complicates the development of common positions for Africa that EU financing instruments have so far structured into distinct regions. However, responsibility doesn’t lie solely with the European partner; African countries sorely lack consensus. (ISS)

Key Words: Global Trade, Africa, Europe

Food and Agriculture Indicators Reveal Impacts of Pandemic on Data Collection - The Food and Agriculture Organization of the UN (FAO) has released its second SDG Progress Report. It provides updates on the status of the global indicators for which FAO serves as the statistical custodian. The indicators under FAO custodianship measure global targets for SDGs 2 (zero hunger), 5 (gender equality), 6 (clean water and sanitation), 12 (responsible consumption and production), 14 (life below water), 15 (life on land). The report titled, ‘Tracking Progress on Food and Agriculture-related SDG Indicators 2020: A Report on the Indicators under FAO Custodianship,’ was released on 15 September 2020. The first such report, issued in 2019, found that the world was not going to meet most of the SDG targets related to food and agriculture by 2030. In the second report, the FAO finds that the COVID-19 pandemic has not only made it even more difficult to achieve the SDGs, and more unlikely that the food and agriculture targets will be met on time, but it has also made it more difficult to monitor progress. Among the findings on SDG progress:

The prevalence of undernourishment is stagnating, and food insecurity is worsening;
Practices to conserve genetic resources have been disrupted, but in Northern Africa, efforts have increased;
Countries’ legal provisions do not adequately protect the rights of women to land, with only 12% of those assessed providing a very high degree of legal protection;
In Central and Southern Asia and Northern Africa, water stress levels are very high, but globally they are at a safe level;
In Southern Asia, water use efficiency has improved;
An estimated 13.8% of food is lost after harvest on farm and in transport, storage, and processing (it is not yet possible to estimate food waste at retail and consumption stages);
Most countries have made good overall progress in implementing international instruments to combat illegal, unreported and unregulated (IUU) fishing;
Globally, forest area continues to decrease, though at a slightly slower rate; and
The world has made some progress towards sustainable forest management.

(IISD)

Key Words: Global Trade, FAO, SDGs

Mexican nominee to WTO top job pledges to prioritise Africa – A former Deputy Director-General of the World Trade Organisation (WTO) and Mexico’s nominee for the top position of the global trade institution, Dr. Jesús Seade Kuri, has promised to put Africa at the center stage of his leadership should he be voted to lead the organisation. Dr. Kuri, in an exclusive op-ed published in the Business24, did not only recount his long experience working in various capacities in multilateral agencies serving the needs of the continent, but promised to ensure the selection of his deputy from Africa, preferably a female. “I will make every effort to ensure Africa has a (possibly female) DDG, so that we have not one but two senior officers who are familiar with Africa at the top of the organisation,” he said. The Mexican nominee is part of an eminent list of eight persons vying for the position of the Director-General of the WTO, which was left vacant by the retiring Roberto Azevêdo last month. The list includes two nominees from Africa, Nigeria’s Dr. Ngozi Okonjo-Iweala and Kenya’s Ms. Amina C. Mohamed. The time frame for the election is yet to be decided, but the WTO head is chosen by consensus by its 164 member states, based on a recommendation from its selection committee. The winning candidate faces a myriad of problems, chief among them the fallout of the COVID-19 pandemic, with countries seeking to protect their industries more than opting for free trade. (Ghana Web)

Key Words: Global Trade, WTO, Africa

PAN AFRICA

Trade Experts Discuss Trade Negotiation Modalities in Time of COVID-19 – Trade experts from the 21 COMESA Member States met today to review progress on trade negotiations between them and review progress towards concluding Trade in Services negotiations. The virtual meeting, which was the 8th for the COMESA Technical Working Group on Trade in Services, considered the complexities prevailing during this COVID period and provided technical and policy guidance from the Member States regarding the negotiations. Speaking at the meeting, Senior Trade Officer at the COMESA Secretariat Mrs. Alice Twizeye stressed the importance of concluding negotiations on Trade in Services in all the seven identified priority sectors. These include: business, communication, financial transport, construction, energy-related and tourism services. “These have potential to enhance the development and diversification of regional services as well as facilitate an increase in Trade in Services and proactively find solutions to be competitive and trade with third parties outside the region and globally,” she said. COMESA considers Trade in Services as a fundamental economic activity globally given its contribution to job creation, building competitiveness and significantly contributing to economic growth. It creates the need for Member States to streamline their policies and promote it among themselves. Mrs. Twizeye added: “This makes the Trade in Services agenda important for COMESA hence the need for this meeting so that despite COVID19 impact across the world, our Member States can take necessary actions and explore new opportunities to the prevailing challenges.” Previously, most trade negotiations have been conducted in physical meetings. However, in view of pressing need for negotiations to progress, the Secretariat decided to convene the virtual meeting to provide Member States with relevant updates in light of the current logistical challenges of convening a physical session. (COMESA)

Key Words: AfCFTA, COMESA, Regional Integration

AfCFTA urged to ensure level playing field for African sugar producers - The African Sugar Development Task Force (ASDTF) called on the African Continental Free Trade Area to ensure a level playing field for African sugar producers as member state negotiators aim to finalise trading rules under the African Continental Free Trade Agreement (AfCFTA) by January 2021. The call is made today during a webinar hosted by Sugaronline, “Aligning the sugar industry with the African Continental Free Trade Agreement. “The African sugar industry has a unique opportunity—right now—to pivot itself and look inwards, rather than outwards as it has done for more than a century” said ASDTF Interim Executive Director Mulhim Eltayeb during the webinar with AfCFTA Secretary General Wamkele Mene and chaired by International Sugar Organization Executive Director José Orive. “The AfCFTA provides a unique opportunity to create preferential markets for African products within the African continent, facilitating preferential trade amongst member states, and reduce or eliminate high tariffs that have restricted intra-continental trade over decades,” said Eltayeb. At the webinar, ASDTF launched a policy paper entitled “African Sugar for Africans” which outlines the opportunities for the African sugar industry should the AfCFTA negotiations be concluded in a way that supports, rather than hinders, its trade and development. S&P Platts data shows a continental sugar deficit of more than 11 million metric tons in 2020 while the International Sugar Organization and the UNFAO estimate the deficit could reach 14 million tons by 2030 under a status quo scenario. Today, that gap is filled predominantly by Latin American, European and Asian imports. But with the right policies in place under the AfCFTA, that demand could be filled with African-origin sugar. (New Business Ethiopia)

Key Words: AU, AfCFTA, Regional Integration

Africa: Lift barriers, increase trade - The 2020 Africa Agriculture Trade Monitor (AATM), published by the International Food Policy Research Institute (IFPRI), has recently been released, providing an analysis of continental and regional trends in African agricultural trade flows and policies. According to the AATM report, the third in a series of flagship reports, policy reactions among the world’s leading food and agricultural producers during the coronavirus pandemic since the beginning of the year have caused disruptions in world supply chains and threatened food-security systems in food import-dependent countries. Furthermore, measures to contain the virus have magnified the negative impact of the crisis on intra-continental trade flows and the livelihoods of millions of people across Africa. But opportunities lie in the crisis, as the foreword to the report points out. Among these is a strong political will to improve intra-African integration with the ratification of the African Continental Free Trade Area (AfCFTA) agreement. This agreement, launched in July 2019, aims to eliminate tariff and non-tariff measures on goods, improve continental integration, and speed up customs procedures that remain a serious barrier to trade performance in Africa. According to the report, countries should not let the pandemic stop progress towards economic integration. It said that agreements like the AfCFTA could provide not only a solid basis for long-term economic development, but also a means of effectively fighting future pandemics by facilitating the cross-border trade of food and medical goods. According to the report, virtual negotiations on the AfCFTA could begin in the coming days and set a new start date for its implementation, possibly before 1 January 2021. A second opportunity lies in an agreement by African states to establish trade corridors and reduce duties to enable the transit of essential goods that are fundamental to combating the pandemic. These short-term measures could also clearly increase intra-African exports, the foreword to the report said. (ahramonline)

Key Words: Trade, Africa, AfCFTA

Africa rising: Development calls for further cooperation – From the "African Century" to "Africa Rising," Africa's economy has been growing in recent years. Unfortunately, 85 percent of Africans live on less than 5.50 U.S. dollars per day, poverty is a challenge for sustainable development in Africa. Both the UN SDG 2030 and the African Union's Agenda 2063 listeed "poverty reduction" as their primary goal. However, with Covid-19 hitting Africa, what does the continent need to do to facilitate sustainable development and further reduce poverty? What are the new opportunities rising for sustainable development in Africa? CGTN Think Tank hosted the "Africa Rising" forum to discuss topics above with scholars, businessmen and the former ambassador from both China and Africa on September 11. All panelists agreed that African countries need to make a choice on investment to promote development, because the resources and funding are too scarce to cover every sector. The question is, which sector can produce a maximum positive effect with minimum investment in the long-term? Zhang Yongpeng, professor of the China-African Institute, stated that human resource is the most important aspect now. "[I used to select] one local musician to go to one of the musical institutes in Shanghai to study. When he got back, he [also] helped train some singers and other musicians," Professor Zhang said. Cross-country education not only provides Africa with more human resource, but also has a positive spillover effect into the local education and community contribution. However, none of the participants agreed on that as being a long-term solution. On the other hand, Jilles Djon, the General Secretary of the African Chamber of Commerce in China, defended that industrialization should be the priority, especially for energy and electricity. "We cannot produce and export if we do not have energy, right? But the access rate to energy is around 26 percent in Africa. Some countries are still going through that aspect." Djon said. Elizabeth Sidiropoulos, Chief Executive of the South African Institute of International Affairs (SAIIA), agreed with Djon, saying urbanization has been attracting more and more people to the cities, so creating more job opportunities for new comers should be a priority. (CGTN)

Key Words: Africa, AfCFTA, Regional Integration

Africa’s climate change fight gets a boost as Global Center on Adaptation sets up regional home at the African Development Bank – African leaders welcomed the opening of a regional office of the Global Center on Adaptation on Wednesday, voicing hopes it will spur the continent’s efforts to combat climate change. In speeches marking the virtual launch of GCA Africa, the leaders said the Center could also provide an impetus for a more resilient recovery after COVID-19, which they said had compounded climate-induced vulnerabilities. “In the post-COVID period, our objective should not only be to recover and build better but to do so in a climate-conscious way,” said Ethiopian President Sahle-Work Zewde. “There is no (more) stark reminder of the need for us to take urgent action than the devastating impact of climate change that we are witnessing now. We have no other option but to mobilize ourselves more than ever before to safeguard the planet. Time is not on our side,” Zewde noted. Hosted by the African Development Bank at its headquarters in the Ivorian commercial capital, Abidjan, GCA Africa will work with partners across the continent to accelerate adaptation action that protects African communities from climate change. Several regional and global leaders attended the high-level launch. Key speakers included the 8^th UN Secretary-General Ban Ki-moon, co-chair of the Global Center on Adaptation, Ghana’s President Nana Akufo-Addo; Kenyan President Uhuru Kenyatta, IMF Managing Director Kristalina Georgieva, Akinwumi Adesina, President of the African Development Bank Group and Patrick Verkooijen, CEO of GCA. There were also speeches by representatives from the African Union Commission, Dutch businessman and co-chair of the GCA Feike Sijbesma, United Nations Deputy Secretary General Amina Mohammed, Gabonese President Ali Bongo, who is also chairperson of the African Adaptation Initiative, Dag-Inge Ulstein, Minister of International Development for Norway, and Peter Eriksson, Minister for International Development Cooperation for Sweden. Welcoming the opening of GCA Africa, President Akufo-Addo expressed the hope that it will work to scale up the “bright spots” of adaptation on the continent, including Ghana, where development partners have kicked off a project to enhance the resilience of national infrastructure systems against threats of climate change. (AfDB)

Key Words: AfDB, Trade, COVID-19

EUIPO launch of AfrIPI aims to shake up trademark registration in Africa - AfrIPI is the EUIPO’s first IP-focused project that collaborates with African jurisdictions. Expected to last four years, it was launched in February 2020 and the Project Steering Committee’s inaugural meeting was on 7 September 2020. In addition to the European Commission and the EUIPO, the other project partners are the African Regional Intellectual Property Organisation (ARIPO), the African Intellectual PropertyOrganisation (OAPI) and the African Union Commission. At the inaugural meeting, AfrIPI's general plan and future activities for the coming years were discussed and approved, the main objective of the project being to increase the protection and promotion of IP rights in Africa, thus contributing to national economies, trade and business across the continent. AfrIPI also aims to reinforce EU and African cooperation to further implement all IP-related aspects of the African Continental Free Trade Area (AfCFTA) – the world’s largest free trade area since the formation of the World Trade Organisation. The AfCFTA covers 54 African countries, with the exception of Eritrea, which has not yet signed the agreement. However, due to covid-19, the implementation of the AfCFTA – previously scheduled for 1 July 2020 – has been postponed until 1 January 2021. The EUIPO intends to extend the reach of existing tools and databases (eg, TMview and DesignView) to third countries and provide support to the European Observatory on Infringements of Intellectual Property Rights outside the European Union. Thus, greater collaboration is expected with regard to:

sharing tools and practices;
increasing public awareness of IP rights and their violations; and
improving the sharing of knowledge, skills and methodologies.

(WTR)

Key Words: AfCFTA, Trade, WTR

Remarks at the High-Level Launch of the Global Center on Adaptation Africa – Speech Extract: And this is the topic of our discussion today. In our recent Regional Economic Outlook for Sub-Saharan Africa, we recommend the three areas of focus: enhancing key infrastructure, investing in people and strengthening coping mechanisms. So, let me elaborate on those priorities. First, if we focus on key infrastructure – like irrigation for farmers, flood management systems, storm shelters and climate-smart agriculture – this would underpin growth and a resilient recovery. There are many examples of resilient infrastructure in Africa. Take Mozambique – in 2019, Cyclone Idai hit the coast and devasted the city of Beira. Yet, thanks to extensive drainage systems and well-constructed buildings and roads, the most severe flooding was avoided. Beira Port was operational within days of the cyclone. We must put this lens of resilience on everything we do, and the Global Center on Adaptation Africa will have an important role to play. Second, invest in people. The COVID-19 crisis has shown that resilience includes strong health systems, strong education, good access to digital technology and decent housing and sanitation. When people are supported, they can withstand a crisis. We ought to recognize that the most important ingredient to resilience to climate shocks is investing in people. Three, we must strengthen coping mechanisms like social safety nets that create buffers against shocks. And we should look to combine social safety nets with safety ropes help people climb back up – through measures like access to finance and a supportive economy. We will not make sufficient progress on these priorities unless we come as an international community. For international financial institutions, that means ensuring that finance is available to invest in resilience. (IMF)

Key Words: IMF, COVID-19, AfCFTA

Making the WTO Work for Africa – The contest to succeed Roberto Azevêdo as director-general of the World Trade Organization has entered a crucial new phase, with the first round of voting by WTO members set to end on September 16. Three of the eight contenders are African: Ngozi Okonjo-Iweala, a former Nigerian finance minister; Amina Mohamed, a Kenyan former chair of the WTO General Council; and Abdel-Hamid Mamdouh, a former Egyptian trade negotiator and WTO official. Africans are hoping that one of these three highly competent candidates will emerge victorious when the winner is announced in November. But regardless of who eventually prevails – three of the eight candidates will be eliminated after the first round – Africa must demand a level playing field from the WTO. Trade is vital for Africa’s development and to generate enough good jobs to absorb the 17 million young people who enter the labor market every year. But, for too long, global trade regulations have left the continent holding the short end of the stick. In the 25 years since the WTO succeeded the General Agreement on Tariffs and Trade, the organization has mostly failed to work in the interest of development. Instead, the WTO has largely benefited its chief architects, namely, countries that had already industrialized or were otherwise in positions of strength. The resulting global trade rules did not take the developing world’s circumstances into account. Despite the huge trade volumes – and profits – generated by globalization, Africa’s share of global trade since 1970 has fallen from 4.4% to 2.7%. This is partly because binding supply-side constraints have limited Africa’s exports largely to natural resources and primary commodities. But unfair trade rules also have undermined Africa’s foreign-trade growth in sectors where the region could benefit from comparative advantage. (Project Syndicate)

Key Words: Africa, Economic Growth, WTO

EAST AFRICA

Reform measures augmenting private banks’ capacity - The various reform measures implemented in the financial sector have bolstered private banks’ capacity with the latest being the bank note change which would bring the unbanked community to the sector. In an unprecedented meeting that housed cabinet Ministers, security heads as well as bank board chairs and CEOs together on Monday, Prime Minister Abiy Ahmed assured of the financial sector’s improvement resulted from the reform measures taken thus far. “By any standards, the financial sector has improved hugely.” administration rescued the economy from spiraling downward. It is to be noted that the government was unable to pay public servants’ wages and the country had been listed under a high risk of debt distress, not to mention the dwindling of bank reserve and export revenue.

“For about one-and-half year, we attempted to rescue the economy. Debt alone represented 31 percent of the national GDP which is currently made to drop to 25 percent. As a result,we won the increasing interests of international creditors.” The series of measures that were taken by the government had resulted in redeeming the national economy indeed. The home-grown economic program implemented thus far had not only championed in arresting the downward spiraling of the economy but it also helped us regain the growth trajectory. A showcase to this assertion is that at least a 10-billion USD additional finance has been channeled to the economy. The 10-year Perspective Plan drawn recently is also an instrument to lay the foundation of prosperity. There are two contradictory measures in the banking sector. In one hand, Ethiopia claimed to protect the banking sector to only nationals. The growth of the sector had been crippled by various policy measures, on the other. (Ethiopian Press Agency)

Key Words: Ethiopia, Economic Growth, Trade

How Covid-19 is catalysing race for e-banking – The Covid-19 pandemic looks likely to be the catalyst accelerating the reduction of physical branch networks in the banking industry, as lenders eye more uptake of digital services. The pandemic comes at a time when lenders had undertaken new measures in 2019 by cutting costs and restructuring their operations in favour of shift to online banking while focusing on increase in market share and tapping into regional markets. The last Bank Supervision Annual Report 2018 by the Central Bank of Kenya (CBK), shows the number of bank branches decreased from 1,518 in 2017 to 1,505 in 2018. This means 13 branches were closed. Nairobi County registered the highest decrease with the number of physical banking outlets dropping by 11 branches. About 10 counties registered an increase of 12 bank branches while nine counties registered a decrease of 25 bank branches. In 28 counties there was no change in bank branches. The CBK attributed the decrease to the adoption of alternative delivery channels such as mobile, internet and agency banking. KPMG’s associate director, Transformation Martin Kimani said the pandemic could potentially be a significant accelerator of trends that were already starting to gather. “Although banks haven’t had to close all their branches given the essential nature of their services, bank operations have nevertheless felt the impact of the pandemic in most countries,” Mr Kimani said in an interview with Digital Business. “Staff shortages and the safety of employees, combined with less commerce occurring in general, have meant that around a 25 percent of bank branches have shut during the outbreak in many countries and territories. Of the remaining 75 percent, many are open on reduced hours and with reduced staff.” Even as the bank branches are expected to remain open as the crisis passes, Mr Kimani doubts whether the situation will be the same in the long run. (Business Daily)

Key Words: COVID-19, EA, Trade

Illicit Gold Trade Thrives with Impunity in the Democratic Republic of Congo – IMPACT’s (IMPACTTransform.org/en) newest report reveals how the Democratic Republic of Congo’s (DRC) illicit gold trade continues to thrive despite efforts to clean up the sector. Traders and exporters who are legally registered in the DRC, Rwanda, and Uganda are operating without apparent fear of sanction, even after being publicly named by the United Nations and international organizations year after year as contributing to the illicit trade of artisanal DRC gold. In its latest report, "The Intermediaries: Traders Who Threaten the Democratic Republic of Congo’s Efforts for Conflict-Free Gold (bit.ly/DRCIntermediaries),” IMPACT documents how registered traders and exporters provide a sheen of legality by declaring a small percentage of their gold exports while pocketing massive profits from the illicit trade. They thwart attempts to disrupt their scheme by reconfiguring their operations across the region when necessary or by creating phantom entities. This means that gold smuggled out of DRC and flowing onto the legal international gold market –into consumer products—is potentially tied to criminality, money laundering, armed groups, and human rights abuses. “Much effort has been made to strengthen responsible artisanal gold trade in DRC, but as long as these shady intermediaries between the miners and the market operate with impunity, all such efforts are futile,” said Joanne Lebert, IMPACT’s Executive Director. IMPACT found that despite efforts by the DRC government and international actors to introduce traceability and due diligence for artisanal gold supply chains in DRC, the illicit trade appears to be booming: only a fraction of gold production is exported legally, meaning, declared to authorities with all duties and taxes paid. (APO Group)

Key Words: Illicit Trade, East Africa, Regional Integration

EAC Urged To Design Post-COVID-19 Business Recovery Program For Women – East African member states have been urged to come up with COVID-19 Business Recovery Programs targeting most traders in the informal sector particularly Women engaged in cross border trade. Women and Business Activists in the region say COVID -19 has greatly affected Women Business Communities especially those who are engaging in cross border trade. This came as a result of the closing of regional Borders. “The closing of the borders negatively impacted on the lives of cross-border traders especially women. “All their capital was consumed thus the need for the EAC to come up with the recovery programme that will support Women in Business to access cheap loans to finance and restart their businesses,” noted Jane Nalunga the Executive Director Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) Uganda while addressing a joint press conference organized by SEATINI and Eastern Africa Sub – Regional Support Initiative for the Advancement of Women (EASSI) Nalunga said although some EAC member states have set up loan facilities in state-owned development banks, such loan facilities cannot be accessed by business community particularly those operating in the informal sector like Women. “For instance, Uganda capitalized Uganda Development Bank with a capital of about UGX1.3 Trillion to enable the business communities to access to cheap loans, however, such loans cannot be accessed by women in the informal sector yet, they have been greatly affected by the outbreak of the COVID-19 pandemic hence government should come up with new financing modalities for the business communities operating in the informal sector,” stressed Nalunga. (Busiweek)

Key Words: EAC, COVID-19, Regional Integration

WEST AFRICA

Nigeria moves to regulate crypto currencies, other digital investments – Nigeria’s Securities and Exchange Commission (SEC) on Monday announced that it would begin to regulate digital currencies and crypto-based companies. A statement by SEC said the general objective of regulation is not to hinder technology or stifle innovation but to create standards that encourage ethical practices that ultimately make for a fair and efficient market. The Nigerian government had in the past described digital currencies as illegal and warned its citizens against it. The crypto-coin investment environment in Nigeria has, thus, been devoid of extant regulation, despite a surge in peoples’ interest in the digital offerings. According to the 2020 Global Crypto Adoption Index compiled by blockchain data analytics firm, Chainalysis, Nigeria ranked highly among other countries where cryptocurrency adoption was quite significant. Nigeria was ranked alongside Ukraine, Russia, China, South Africa, Kenya, and the U.S. – all countries listed among the top-ranking countries by cryptocurrency adoption. The capital market and investment regulator on Monday said digital assets provide alternative investment opportunities for the investing public and it therefore becomes essential to ensure that they “operate in a manner that is consistent with investor protection, the interest of the public, market integrity and transparency”. Section 13 of the Investment and Securities Act, 2007 conferred powers on SEC as the apex regulator of the Nigerian capital market to regulate investments and securities business in Nigeria, it said. In line with these powers, SEC said on Monday that it has adopted a three-pronged objective to regulate innovation, hinged on safety, market deepening and providing solution to problems. (Premium Times)

Key Words: West Africa, Regional Integration, Trade

SOUTHERN AFRICA

South Africa to 'cautiously' reopen borders as lockdown eases – South Africa will reopen its borders to most countries next month, the president said Wednesday, part of a wider easing of anti-coronavirus measures announced as figures continue to improve. The continent's most industrialised economy shuttered its borders at the start of a strict nationwide lockdown on March 27 to limit the spread of the virus. Restrictions on movement and business have been gradually eased since June, but borders stayed sealed to avoid importing the virus from abroad. President Cyril Ramaphosa on Wednesday said most remaining rules will be rolled back from September 20, and that international travel would "gradually and cautiously" resume on October 1st. "We have withstood the coronavirus storm," Ramaphosa said in an address to the nation. "It is time to move to what will become our new normal for as long as the coronavirus is with us." Under the new measures, most gatherings will be permitted at 50 percent of a venue's capacity, with a cap of 250 people for indoor events. A 10pm curfew will be scaled back to midnight and a 50-person limit at recreational facilities will be lifted. Restrictions on sporting events remain in place, however, and face-masks will still be required in public. Travel may also be restricted to and from countries with "high infection rates", Ramaphosa added, explaining that a list would be determined based on "latest scientific data... from those countries". (Nation)

Key Words: SA, Business, COVID-19

SA commits to global socio-economic development - Despite the debilitating effects of the COVID-19 pandemic, South Africa remains committed to promoting the well-being, socio-economic development and upliftment of the country’s people. South Africa, said International Relations and Cooperation Minister Naledi Pandor, is also committed to protecting the planet for future generations to ensure the prosperity of the country, region and continent. The Minister made the remarks during a virtual lecture themed 'South Africa’s place in the changing global order' delivered at the Wits School of Governance on Wednesday. The pandemic, she said, has added a significant new dimension to international relations for countries, resulting in major economic contraction that has altered every aspect of life and livelihoods. Pandor said in the face of the challenging global order, South Africa is guided by its national interest, which has in turn shaped its foreign policy. “In broad brushstrokes, South Africa’s national interest revolves on promoting the well-being, socio-economic development and upliftment of the country’s people, protecting the planet for future generations and ensuring the prosperity of the country, region and continent.” This framework of South Africa’s national interest underpins its foreign policy, which is driven by the pursuit of human rights, development, conflict resolution, nuclear disarmament, climate change and championing the agenda of the countries of the South.

“In pursuit of these strategic goals, South Africa seeks to reposition itself as a consistent moral compass and a principled voice of reason in a changing world that is increasingly characterised by selfish and narrow interests,” Pandor said. The Minister said South Africa’s position is affected by its normative approach, which can largely be considered as driven by the founding values and provisions enshrined in its Constitution, and based on its history of overcoming apartheid and, importantly, its relatively peaceful transition to democracy and efforts at reconciliation. It is these values that have resulted in South Africa being a consistent voice in solidarity with the people of Palestine and Saharawi, and commitment to peace in Africa and the Middle East. (SA News)

Key Words: Regional Integration, SA, Trade

Fish the only product with a diversified market – THE latest trade statistics put fish exports at the top of the country's competitive products, being send to at least 10 countries around the world. This is an achievement no other Namibian product in the top five exports in volume has achieved, according to the latest trade statistics for July 2020, compiled by the Namibia Statistics Agency (NSA). Apart from being the only non-mineral product in the top five exports for many years now, the sector is slowly expanding its market from Spain – which in July accounted for 50,3% of Namibian fish. Spain has been enjoying the bulk of Namibian fish since the statistics can go back in time, but a new trend is emerging with African countries showing a bigger appetite for Namibia's horse mackerel (maasbanker). “Fish primarily destined to Spain, Zambia, South Africa and DRC claimed third position with an 11,7% contribution to total exports,” said the NSA. The diversified market shows competitiveness of the country's boxed fish and gives the country a chance to reduce its dependence on Spain for foreign reserves and income. Namibian fish also managed to go beyond the Southern Africa Customs Union (Sacu) and the Southern Africa Development Community (SADC) blocks to reach the Common Market for Eastern and Southern Africa (Comesa). Despite bilateral agreements, memorandums of understanding, foreign diplomacy visit, trade agreements, presidential visits around the world; there is one thing the country is failing to change – the composition of its export market. Namibia's export market did not change much in July 2020 either, “maintaining the same countries (such as China, South Africa, Belgium and Spain) as in June 2020, with Botswana frequently falling out of the list and being replaced by Zambia,”. These top five markets absorbed 77,7% of Namibian raw materials and fish to the rest of the world. This means Namibia depends on about four countries for its top exports – exposing the country to external shocks. If the economy of one of these top consumers of Namibia minerals contracts, it will have a big impact on Namibia's income and foreign reserves. One other notable absence in the top five export commodities for some years now is beef. Despite reaching American and Chinese markets, beef is still struggling to get on the top five exported products. (The Namibian)

Key Words: Regional Integration, Namibia, Trade

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 18 SEPTEMBER 2020

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