Today’s Topics:

OPINION: To build back better, make African trade greener – (Thomas Reuters Foundation News)

4.5 Million African Jobs at Risk due to COVID-19 and Travel Restrictions – (IATA)

Financial policy needs to keep up with the times — and tricks of the trade – (Daily Maverick)

WTO Director-General contender Amina Mohamed outlines her vision & plan – (EWN)

On the role of women trade trainers – (Trade4DevNews)

Africa Insights: A research collaboration with the Centre for Complex Systems in Transition, Stellenbosch University - (Bowmans Law)

Experts meet to review a new study on preferential trade agreement compliance -  (UNECA)

First Geneva Trade Week: Africa’s Digital Trade Integration under Spotlight – (CUTS International)

How can the African air transport sector bounce back? – (AU)

African Digital Health Passport: The Challenge of Personal Data Protection – (APA News)

Djibouti, nation of one million, is building the largest free trade zone in Africa – (Face2FaceAfrica)

Center urges Ethiopian businesses to use Africa free trade – (New Business Ethiopia)

Private sector growth hits 29-month high on rising demand – (Business Daily)

Minister addresses relaunch of African economic integration -  (Angop)

South Africa Air’s Savior Is In Ethiopia, Study Says – (Bloomberg Quint)

Innovation, digital economy engine to drive SA’s growth – (itweb)

INTERNATIONAL

Financial policy needs to keep up with the times — and tricks of the trade - According to the Financial Services Conduct Authority (FSCA), regulation needs to keep up with the times, all while ensuring that consumers are treated fairly. In a media release, the regulator states that “digital disruption is forcing specialist financial services functions and support to become more vigilant and agile. “Regulators are at risk of being left behind as innovation outpaces the rate of regulatory change, which has made it necessary for [financial] regulators to evolve their engagement model to ensure they keep pace with the times,” it states. To this end, the FSCA has partnered with other key oversight bodies and organs of state to form the Intergovernmental Fintech Working Group (IFWG) to effect the required regulatory renaissance, provide a space for safe experimentation and actively advance innovation. Earlier this year the government grouping, which includes the National Treasury, the Financial Intelligence Centre, the Financial Sector Conduct Authority, the National Credit Regulator, the South African Reserve Bank and the South African Revenue Service, launched an innovation hub to help evolve and enable the local financial technology space. The FSCA says the hype around digital assets has led to an increase in scams targeting consumers who are becoming financially vulnerable because of the constrained economic environment.  It says it has noticed a sharp rise in the promotion of pyramid and get-rich-quick schemes where people are promised huge returns in a short space of time, then get scammed of their hard-earned cash without possibilities of recourse. (Daily Maverick)

Key Words: Global Trade, COVID-19, Global Economy

4.5 Million African Jobs at Risk due to COVID-19 and Travel Restrictions –  The International Air Transport Association (IATA) warned that the damage being done to the African aviation industry and on economies by the shutdown of air traffic owing to the COVID-19 pandemic has deepened. According to new data published today by the Air Transport Action Group of which IATA is a member:

• 5 million African jobs will be lost in aviation and industries supported by aviation in 2020. This is well over half of the region’s 7.7 million aviation-related employment.
• 172,00 jobs will be lost in aviation alone in 2020. This is about 40% of the region’s 440,000 aviation.
• GDP supported by aviation in the region will fall by up to $37 billion. This is 58% below pre COVID-19 levels.

“The breakdown in air connectivity in Africa has severe social and economic consequences for millions. No income means the lack of a social safety net for many. Governments need to do all they can to reconnect the continent safely. Keeping borders closed, or imposing measures such as quarantines, that deter air travel, will result in many more livelihoods being lost and further economic shrinkage along with hardship and poverty,” said Muhammad Albakri, IATA’s Regional Vice President for Africa and the Middle East.  (IATA)

Key Words: Global Trade, IATA, Business

WTO Director-General contender Amina Mohamed outlines her vision & plan - One of the contenders to be the next World Trade Organisation (WTO) Director-General, Dr Amina Mohamed, from Kenya, on Monday said the China-US trade tensions were among her main priorities. Mohamed is one of five remaining candidates and two African women vying for that position. Representatives of the 164-member body were interviewing the candidates in Geneva, Switzerland. Mohamed is the cabinet secretary for sports, heritage, and culture in Kenya, and a former minister of foreign affairs. She was confident that she had what it takes to rein-in the US and China to play fair in the trade space. “The WTO has managed trade tensions before, and they were between big players. I believe strongly that if it’s a trade dispute the place to resolve it at is the WTO,” Mohamed said. She said while the WTO is a rules-based system with a dispute settlement mechanism, it should also be dynamic. “If we feel that over a period of time we need to tighten some rules, I think it’s important to get that done. It’s also important to read the rule book so that if there are no rules, we sit down and actually engage in multi-lateral negotiation to address issues that are becoming irrelevant,” she said. The WTO is expected to announce the final two contenders on Tuesday and Mohamed is up against candidates from Nigeria, South Korea, Saudi Arabia, and the United Kingdom. (EWN)

Key Words: Global Trade, WTO, Africa

On the role of women trade trainers  – Developing countries tend to have far fewer women in decision-making roles overall, which in the trade context creates greater obstacles for women to become part of global value chains – to highlight a major, practical trade example. According to the International Trade Centre, women face such gendered barriers as official bans to holding certain jobs, maternity obstacles and employment restrictions – all despite doing twice more unpaid care work. This results in working much longer hours than men when considering care work, despite having lower access to capital and productive resources. For example, in agriculture, women tend to be engaged in subsistence production that is consumed within the house, or in the case of being engaged in marketable production, not to have rights to monetary compensation for their work. As a result, there is undoubtedly a male monopoly on trade-related jobs on the ground.

It is well documented that such gender gaps can deepen as a result of trade policies that do not have an explicit gender component. The movement in support of the economic empowerment of women has done much to bring this issue to the forefront of global trade assistance programmes and to shape trade-related technical assistance to developing countries. This has taken the form of successful efforts on affirmative action, gender-based quotas and awareness-raising campaigns. As a result, more women are moving towards opportunities in international trade, but the speed at which this is happening continues to be underwhelming. (Trade4DevNews)

Key Words: Global Trade, Global Economy, Women

PAN AFRICA

OPINION: To build back better, make African trade greener –   Broad consensus is emerging around the silver-lining opportunity to “build back better” from the COVID-19 crisis by creating more sustainable, resilient and inclusive societies. But in the broader context of climate change, what does this mean for Africa, which produces just 2-3% of global carbon dioxide emissions from energy and industrial processes?  In building back better, Africa can take strategic advantage of the landmark African Continental Free Trade Area (AfCFTA) agreement to advance the green transition agenda. Covering goods, services, investment, competition policy, intellectual property rights and e-commerce, AfCFTA offers several pathways forward for Africa.

The United Nations Economic Commission for Africa (UNECA) projects that the AfCFTA could boost intra-African trade by 52% by eliminating import duties, and double this trade by reducing non-tariff barriers. However, such benefits are threatened by climate change and variability which are set to hit Africa hard, raising temperatures more than global averages and producing extreme weather events. Climate effects can reduce agricultural production and yields, damage physical infrastructure, disrupt supply, transport and distribution chains and also harm the biodiversity and natural attractions on which tourism in Africa depends. The green agenda aims to avoid, halt and reverse the adverse impact of climate change. AfCFTA intersects the green agenda through specific provisions in its protocols, and the strategies adopted to drive implementation.

First, AfCFTA protocols can be designed and made operational in support of green growth. Phase I protocols on trade in goods and trade in services, though finalised, can be operationalised with environmental considerations at their core. In finalisng their tariff schedules, member states should not put environment-friendly technology (such as wind turbines or photovoltaic systems) on sensitive or exclusion lists. Two of the five priority sectors for services liberalisation – transport and tourism – offer natural entry points for environmental considerations. And whenever more sectors are added, environmental services must be top priority. Phase II negotiations on investment, competition policy and intellectual property rights (IPRs), and phase III negotiations on e-commerce, are yet to start, presenting an opportunity to embed environmental considerations within these protocols. Indeed, climate change is closely intertwined with phase II and III issues. Incentives can be crafted to facilitate investment in green-friendly infrastructure, energy and research and development. A fine balance is needed to ensure competition regulations promote green innovation without environmental regulations harming competition. Appropriate IPRs are critical to incentivise the development and diffusion of green technologies as well as the protection of biodiversity and traditional knowledge. E-commerce rules will in turn be required to ensure extensive “last-mile” services with short delivery frames that do not exacerbate emissions, and to fast-track the use of efficient, digitalized logistics. (Thomas Reuters Foundation News)

Key Words: Africa, Trade, Business

Africa Insights: A research collaboration with the Centre for Complex Systems in Transition, Stellenbosch University - We understand that our clients and other stakeholders may well be inundated with comment and information from professional service firms. While we do not want to add to an unnecessary burden of information, we do want to prompt discussion about things that are causes for concern, or that are generating optimism or excitement about business opportunities. To this end, we have entered into a unique research collaboration with the University of Stellenbosch’s Centre for Complex Systems in Transition. At the core of the Centre’s work is the drive to find, ‘ways of living that sustain rather than destroy the eco-system within which all society is embedded’. This purpose resonates with our vision as an African law firm, supporting our clients and our people, as they seek to unlock opportunity, overcome challenges and realise the hopes that will shape the future of Africa. Our aim, through this collaboration, is to generate critical analysis of economic, social and business issues that affect the markets we serve, and to share insights with our clients on a regular basis throughout the year. The publications that have been produced through this collaboration are available here. (Bowmans Law)

Key Words: Africa, Trade, AfCFTA

Experts meet to review a new study on preferential trade agreement compliance – The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) today hosted the first of a series of five virtual experts group review meetings on innovative new research on preferential trade arrangements in Africa. The project is in partnership with the Organization of African, Caribbean and Pacific States (ACP). The five studies, which gathered primary survey and interview data virtually over mid-2020, look to provide new answers to some of the critical challenges to how African traders use preferential trading regimes in Africa. This involves dedicated research on:

1. Preferential trade agreement compliance: technical barriers to trade, sanitary and phyto-sanitary requirements and rules of origin
2. Negotiating institutions: putting in the right foundations
3. Preferential trade agreement utilisation
4. Informal cross-border trade
5. E-commerce in preferential trade agreements

The 1st of these studies on preferential trade agreement compliance in the SADC region was held today, on 5 October. The study focuses 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. The regional This experts group meeting brought together virtually a small group of specially selected experts including, customs offices, trade ministries, the private sector, regional economic communities and international organizations. David Luke, Coordinator of the African Trade Policy Centre, during his opening remarks emphasized that the critical purpose of the project was to develop analysis that can improve upon the value that African countries get out of preferential trade agreements in Africa. (UNECA)

Key Words: Africa, Trade, UNECA

First Geneva Trade Week: Africa’s Digital Trade Integration under Spotlight  – “The African Continental Free Trade Area (AfCFTA) offers a unique opportunity for building a stronger and more inclusive participation in e-commerce in Africa”, said Tammo Strümpler on behalf of the German Federal Ministry for Economic Cooperation and Development’s (BMZ) Trade Division, at the opening of a virtual discussion jointly organised with CUTS International Geneva on the opening day of the Geneva Trade Week. Held under the title “Trade and Digital Africa: Innovating for Inclusive and Sustainable Continental Integration”, the discussion aimed to share key research findings and exchange views on what should be the key considerations for African negotiators and other stakeholders for the upcoming e-commerce Protocol under AfCFTA. Other speakers included Yasmin Ismail, Research Fellow, CUTS International Geneva; Jamie Alexander Macleod, Trade Policy Expert, African Trade Policy Centre; and Jane Nalunga, Executive Director, SEATINI Uganda. The session was moderated by Robbert Wiering of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Rashid S Kaukab of CUTS. The digital economy and e-commerce are fast transforming societies globally, including in Africa where digital innovation is providing unprecedented opportunities for uplifting traditionally disadvantaged groups like women and youth. With African countries scheduled to start the process for an e-commerce Protocol to AfCFTA by the end of this year, African stakeholders urgently need to explore innovative solutions to African digital integration, drawing from their experiences in national policy as well as international and regional trade negotiations.

In this context, experts on the panel explored inter alia what are the specific challenges and possible solutions for African integration in the digital age also taking into account the Covid 19 impacts; the role of AfCFTA negotiations in this regard; possible links to be established between the WTO and AfCFTA e-commerce tracks; and the role of development partners and NGOs in the process.   Among the main takeaways from the general discussion were: the need for addressing legal framework and infrastructure issues in parallel; while seeking harmonisation of rules and standards among countries is necessary, one-size-fits-all approaches should be avoided in order to ensure that the specific needs and circumstances of each country are considered; and, the process should also involve all relevant stakeholders ranging from the private sector to civil society to women representatives so as to leave no one behind, and factor in the realities and needs of people on the ground. The discussion was informed by the findings of three recent studies by CUTS International Geneva which explored these issues. (CUTS International)

Key Words: AfCFTA, Africa, AfCFTA

How can the African air transport sector bounce back? – “Recovery of aviation is essential to rapid and sustainable recovery of Africa economies post-COVID19. Restoring confidence, stimulating demand, consistency and harmonization in applying health measures, as well as innovation are building blocks for successful restart” stated H.E. Dr Amani Abou-Zeid, Commissioner for Infrastructure and Energy at the opening of the High-Level Webinar on African Aviation in the Aftermath of COVID-19. The webinar aimed at exploring strategies to build back a safe, secure and competitive air transport sector while highlighting the role of development partners like the World Bank. The Commissioner was joined by topnotch industry leaders and government officials, notably the Honorable Pravin J. Gordhan Minister of Public Enterprises of South Africa, Mr Makhtar Diop, the World Bank Vice President for Infrastructure, Mr. Abderahmane Berthé, the Secretary General of the African Airlines Association, among others.

According to the AU Commissioner, the COVID-19 Pandemic has resulted in unprecedented downturn in air transport activity risking economies and livelihoods dependent on travel and tourism. “As countries begin to open their economies and assess the damage from the pandemic, our focus at the AU is to advise governments on best approaches for air transport sector to bounce back and contribute to rapid recovery.” said Dr Amani Abou-Zeid. The discussion focused on the regional strategic approach led by the African Union in support to African countries and the entire aviation industry to ensure acceptable levels of safety, security, efficiency and maintain jobs while ensuring public confidence in air travel during and post COVID-19. It is projected that African airports will experience revenue losses of 51% for the year 2020 due to restrictions still in place on aviation activities, with the loss estimated at USD 2.2 billion as per analysis released by Airport Council International (ACI). Airlines estimates total losses in revenues are at USD 6 billion and have faced a severe cash burn compounded by the serious liquidity issues.  (AU)

Key Words: Africa, trade, COVID-19

African Digital Health Passport: The Challenge of Personal Data Protection – The Covid-19 pandemic crisis has caused disorder in all economic activities.  At a time of economic recovery, the equation of people’s mobility remains a complex subject on which States take concerted but not always consistent action.  The webinar organized by the African Performance Institute (API) was an opportunity for experts to discuss innovative solutions with digital to offer Africans the opportunity to move more freely within the continent.  As such, the project to establish a digital health passport was at the heart of the discussions at this virtual meeting which recorded the participation of Amira Elfadil Mohamed ElFadile, Commissioner for Social Affairs of the African Union, Lacina Koné, Managing Director of Smart Africa, Ibrahima Nour Eddine Diagne, President of African Performance Institute (API) and Managing Director of Gainde 2000, Dawitte Bekele, Vice-President of the Africa Regional Office of the Internet Society (ISOC), Ibrahima Kane Managing Director of Air Senegal and Oumar Khassimou Dia, Director of Air Transport of Senegal. The discussions were moderated by Léocadie Ebakisse of Talent’s Awake.  Although the project was deemed relevant, concerns were raised about the use of traveller data. Lacina Koné, Managing Director of Smart Africa, argues that this digital project should allow tourists to travel and stay unhindered during the pandemic. He believes that with this digital health passport, travellers and airlines will have the confidence to safely transport passengers without Covid-19.  It notes, however, challenges to achieve this ambition such as the protection of personal data on smartphones where travellers' health information will be stored.   (APA News)

Key Words: Africa, trade, COVID-19

EAST AFRICA

Djibouti, nation of one million, is building the largest free trade zone in Africa –- Djibouti is capitalizing on its strategic location on one of the world’s busiest trade routes to build Africa’s largest free trade zone area. The Horn of Africa nation controls the Bab el-Mandeb (“Gate of Tears” in Arabic) which is a crucial chokepoint at the entrance to the Red Sea and the Suez Canal from the Indian Ocean. The Bab el-Mandeb is the world’s fourth most frequented maritime route used by some 30,000 ships every year. Also, after the Ethiopia–Eritrea war, Djibouti has become a gateway for 90% of Ethiopia’s imports, a trading volume that accounts for 90% of Djibouti’s port traffic. In 2018, lowly-populated Djibouti launched the first phase of the project comprising a 240-hectare (593-acre) site. The year before, it had unveiled three new ports and a railway linking it to landlocked Ethiopia, as part of its bid to become a global trade and logistics hub. The $3.5-billion China-backed initiative will span 4,800 hectares when completed and it will become the biggest free trade zone area on the continent. “The volume of goods traveling to East Africa keeps increasing. Every time a product arrives in the continent without being transformed it is a missed opportunity for Africa,” said Aboubaker Omar Hadi, chairman of the Ports and Free Zones Authority.

“(Djibouti) aims to become a gateway not only to Ethiopia but to South Sudan, Somalia and the Great Lakes region,” he added. “This new free zone will be the country’s first employment reservoir, with more than 15,000 direct and indirect jobs created.” The project is part of China’s “One Belt, One Road” initiative to expand trade routes and a series of infrastructure across 60 countries. It is being constructed by China’s largest public port operator, Dalian Port Corporation Limited. The operations of the port will be a jointly run by the Djibouti Ports and Free Zone Authority and three Chinese companies: China Merchants Holdings, Dalian Port Authority and big data company IZP.  According to Reuters, the agreement calls for the zone to handle $7 billion in trade within two years. Besides, Djibouti will create a unified customs system with China, establish a transit trade center and set up a currency clearing system. At least 21 countries have signed on to operate in the zone which offers tax-free incentives to investors. Port activities in Djibouti account for about 70% of Djibouti’s GDP. Aside from the port expansion, the tiny East Africa nation is home to both Chinese and US military bases. The UK, France, Japan and Saudi Arabia also have military installations there. Land lease for military installations is also a major source of revenue for the Djiboutian government.  (Face2FaceAfrica)

Key Words: East Africa, Business, Trade

Center urges Ethiopian businesses to use Africa free trade – The founder and head of the Center for Accelerated Women’s Economic Empowerment (CAWEE) urges Ethiopian businesses to get prepared to benefit from the African Continental Free Trade Area Agreement (AfCFTA).
Speaking to New Business Ethiopia, the Founder and Executive Director of CAWEE, Nigest Haile, said AfCFTA is a big opportunity for Ethiopian businesses to boost the trade of the country with other African countries. Indicating that Africa’s trade with itself currency represents less than 20 percent, she noted that the AfCFTA that lifts trade tariff, is a great opportunity for the growth of Ethiopian businesses and the economy in general. “For us the AfCFTA brings many opportunities as it allows us to freely move across the border without visa restrictions and trade with other African countries,” she said. As compared to the complex trade system Ethiopian businesses have been dealing with when trading with the United States or Europe, the provisions of AfCFTA enables Ethiopian businesses to easily engage in export and import trading with other African countries, according to Mrs. Nigest. “Even though duty free regimes such as AGOA of the United States are important, the trading system with developed countries are complex,” she said, stressing the simplicity in trade facilitation the AfCFTA is bringing to African businesses, especially women owned small and medium businesses. Women-led AfCFTA implementation
With the support from the U.S. State Department, women owned businesses in Ethiopia, Kenya, Rwanda and Ghana have launched a pilot inactive that allows them to trade with each other. As part this initiative Some Ethiopian women owned businesses are working to open leather products shop in Rwanda, while women in the remaining three countries are also exploring similar opportunities, according to Mrs. Nigest. (New Business Ethiopia)

Key Words: East Africa, Business, Trade

Private sector growth hits 29-month high on rising demand – Kenya’s private sector activity jumped to a 29-month high in September lifted by rising local and foreign consumer demand following the gradual re-opening of the economy in the wake of the Covid-19 pandemic. The Markit Stanbic Bank Kenya’s Purchasing Managers' Index (PMI) — a monthly measure of private sector activity — increased to 56.3 in September from to 53 a month earlier, the highest level since April 2018. "The PMI indicated further improvement in business confidence and operating conditions this (September) month, thanks in large part to the lifting of some domestic Covid-19 containment measures,” Stanbic Bank head of Africa research Jibran Qureishi said in the PMI report. “This should gradually continue to support activity into the end of the year. That said, we ought to be cautious around the possibility of a second wave globally that could dampen external demand again.” President Uhuru Kenyatta on August 27 raised the maximum number allowed in mass gatherings to 100 from 15, boosting consumption at ceremonies such as weddings which had been curtailed at the height of the pandemic. This came on the back of the resumption of international flights from August 1, which increased cargo capacity for Kenya’s fresh produce exports especially to Europe and the Middle East. The restart of domestic flights and easing of inter-county movement in July had, on the other hand, lifted domestic demand. The PMI findings, based on feedback from corporate managers in key economic sectors such as manufacturing and agriculture, found that sales climbed at the fastest pace since January 2016. (Business Daily)

Key Words: East Africa, Business, Trade

WEST AFRICA

Ghana to cement position as ECOWAS automobile production hub – Ghana will cement its position as West African’s automotive production hub in the coming years, according to Fitch Solutions, research arm of ratings agency Fitch. The report noted the expected dominance of the nation in the automobile space in West African is due to the comprehensive policy by the government. “We believe developments in Ghana’s metals sector (steel and aluminium in particular) raises the potential for the country’s nascent autos industry to move up the value chain.” In August this year, President Akufo-Addo laid the foundation stone of an aluminium metal casting factory and CNC machine tooling centre, which creates opportunities for automotive component manufacturing in the country. It added: “aluminium products such as aluminium alloy wheels, transmission housings and certain engine components such as piston rods and cylinder heads could thus be manufactured locally.” “The trend towards light weighting (due to aluminium’s weight reduction properties being beneficial for fuel efficiency) in the autos industry raises opportunities for more aluminium content in vehicles especially as Ghana’s automotive industry develops further”, it noted. Volkswagen and China’s state-owned, Sinotruck, have begun the assembly of vehicles in the country, while Toyota is still in the process of completing its vehicle assembly plant and Nissan is set to begin assembly soon. The UK based research firm said ‘we believe this creates opportunities for these automakers to utilise domestic aluminium and steel autos related products, thus enabling the automotive industry to potentially utilise locally sourced metals.”  Nigeria which is ECOWAS automobile sales leader in volume terms, according to the report, has not captured the appeal of automakers due to policy uncertainty and a tough operating environment. Fitch said aluminium products such as aluminium alloy wheels, transmission housings and certain engine components such as piston rods and cylinder heads could thus be manufactured locally.  (My Joy On Line)

Key Words: West Africa, Regional Integration, Business

AfCFTA: Continental free trade will reduce value erosion of naira –The African Continental Free Trade Area (AfCFTA) agreement will reduce the erosion of the naira, which has suffered nearly 90% devaluation since 2016, through exports of Nigerian made goods and services, and give exposure of the naira to other currencies. This was disclosed by Mr. Francis Anatogu, Secretary, National Action Committee on AfCFTA, in an interview with TVC News on Friday afternoon. Mr. Anatogu said, “As a nation, we recognized the need to diversify from oil; we need to improve exports to grow our GDP,” He added that Nigeria was meant to take preemptive actions before joining the WTO, like the creation of a trade remedy mechanism. He said trade remedy is an area that has been identified by the National Action Committee to ensure Nigeria is not used for dumping. “We are starting with short term measures (trade remedies), and eventually submitting the bill to the National Assembly,” Nairametrics reported last week that the FG is working on trade remedies to protect Nigerian producers from unfair and injurious trade practices from foreign companies that harm domestic industries, which are key factors for the implementation of the African Continental Free Trade Area (AfCFTA). This was disclosed on Thursday by the Head, Trade Remedies Unit National office for Trade Negotiations, Tola Onayemi, at the AfCFTA Sensitization Seminar, organized by the National Action Committee of the implementation of the agreement. On Nigeria’s preparedness for the AfCFTA

Mr. Anatogu said, “We understand how to deal with preferential trade, and are in a better position than a number of African countries.” Naiarametrics also reported last week that Yewande Sadiku, CEO of Nigerian Investment Promotion Council (NIPC), said Nigeria is more ready for the African Continental Free Trade Area (AfCFTA), due to Nigeria’s domestic market manufacturing value addition capacity, which is 7 times the average of the top 20 economies in Africa and other. Mr. Anatogu cited the ECOWAS Trade Liberalization measures, which is not perfect, however, the FG understands the gaps and specific actions that need to be in place to close it. “Even as trade starts, implementation will take longer time; when implementation is agreed, it needs to be quoted in tariff books,” (Nairametrics)

Key Words: West Africa, Regional Integration, AfCFTA

SOUTHERN AFRICA

South Africa Air’s Savior Is In Ethiopia, Study Says – South Africa should act to preserve its insolvent national airline and seek to partner the carrier with Ethiopian Airlines Group, according to a study commissioned for ruling-party lawmakers. The assessment, seen by Bloomberg, was prepared by African Aviation Services Ltd. and dated Oct. 4. It was presented to a group of African National Congress lawmakers on Monday, according to an ANC official who asked not to be identified because the information isn’t public. South African Airways went into administration in December and now needs more than 10 billion rand ($603 million) to restart, according to a plan produced by the carrier’s business rescuers. The airline hasn’t made a profit since 2011 and has been surviving on government bailouts. “There is inherent value in an existing airline which cannot be easily replicated in a new replacement carrier,” Nick Fadugba, the chief executive officer of African Aviation and the author of the study, wrote in the document. “After a thorough analysis, our preferred strategic equity partner for SAA is Ethiopian Airlines.” Ethiopian Airlines shares a similar “pan-African vision” to SAA and is Africa’s strongest carrier, Fadugba wrote. (BloombergQuint)

Key Words: SA, Regional Integration, Trade

Innovation, digital economy engine to drive SA’s growth – South Africa’s post-COVID-19 economy must be centred on stimulating innovation and the digital economy, says Nomalungelo Gina, deputy minister in the Department of Trade, Industry and Competition (DTIC). Gina made the comments during one of the sessions at last week’s annual South African Innovation Summit, which took place online this year. The deputy minister said the coronavirus has been aggressive in its disruption of the social economy and normal life, further deepening the country’s unemployment and poverty levels. She pointed out that old economic methods are now dying a natural death, and the digital economy, whose bedrock is innovation, is taking over. “Innovation and digitisation will be a necessary condition for building this economy, and will help build various SMMEs of the economy. “It is not an exaggeration that the symbiosis of innovation and digital economy is now a pervasive juggernaut that is globally tearing down any inhibitive firewalls.” Gina explains that countries that have long embraced and cultivated innovations are now leading the world in terms of breaking new ground and innovation. Prior to the COVID-19 pandemic, the South African government was already under immense pressure and this has now been exacerbated. Data from Statistics SA shows gross domestic product (GDP) fell by 16% in the second quarter when compared to the first quarter of 2020, as the COVID-19 lockdown continued to take its toll on the economy. Jobs lost in the second quarter of this year hit the 2.2 million mark, reveals recent data.

Unlocking potential value -The importance of the digital economy and innovation as economic drivers have long been emphasised. At last month’s Huawei Connect 2020 conference, rotating chairman Guo Ping stated the digital economy plays a key role in economic growth. Ping noted the digital economy accounted for a third of China’s total GDP last year, a contribution of two-thirds to total economic growth. In SA, the growth of the digital economy is said to be approximately R59 billion, or 2% of the country’s GDP, according to a document on the Department of Communications and Digital Technologies’ Web site. (itweb)

Key Words: Trade, Regional Integration, SA

Minister addresses relaunch of African economic integration – Foreign Minister Téte António Monday received the chairperson of the Economic Community of Central African States (ECCAS) Commission, Gilberto Veríssimo da Piedade, with whom he discussed the state of integration on the continent. At the end of the meeting, Minister Téte António said that integration is a profound theme, which does not depend solely on diplomacy, but on the people. According to the government official, each state has the responsibility to enforce the implementation of the treaty. In his turn, the ECCAS chairperson, Gilberto Veríssimo da Piedade, said that there were some ideas on how integration should be implemented, but that they needed to be validated, that is why they are counting on Angola to help consolidate those intentions. On his first visit to Angola, after taking office last August, Gilberto Veríssimo da Piedade will also be received by the health minister, Sílvia Lutucuta, who will talk about Covid-19. He hopes to receive experience from Angola, which can serve for other states in the region, in the fight against this pandemic, just as the community should help the country in this fight. Another meeting will be with the Minister of Defence, João Ernesto dos Santos, to address the problems prevailing in the Central African Republic, Cameroon and Chad. The programme of the ECCAS leader's visit also includes separate meetings with the Ministers of Finance, Vera Daves, of Economy and Planning, Sérgio Santos, of Trade and Industry, Victor Fernandes, as well as of Youth and Sports, Ana Paula do Sacramento Neto. The chairperson of the ECCAS is also expected to be received in audience by the President of the Republic, João Lourenço. (Angop)

Key Words: Trade, Regional Integration, Angola