ATPC DAILY DIGEST 8 OCTOBER 2020

The New Normal: The Commodities Sector Post-Covid-19 - The Covid-19 pandemic is severely impacting the commodities sector, leading to weaker agricultural, oil and metal prices, clear operational hurdles and supply chain disruptions. While the industry is currently in a recovery mode, along with general economic activity, Covid-19 will have a profound long term impact on the commodities sector, amidst changes in government policies, and reassessments of companies' strategic planning. In this special report we explore long term implications the pandemic will have on the Oil & Gas, Mining & Metals and Agribusiness sectors. The report answers key questions including:

How will Covid-19 alter and accelerate ongoing structural Commodities trends?
What new trends will come out as underlying fundamentals for the Commodities sector change and companies reassess their investment and operational strategies?
What does Covid-19 mean for Tech adoption in the Commodities sector?
What does the rise in international and local political risks - aggravated by Covid-19 - mean for Commodities ?

(The Fitch Solutions)

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

Trade shows signs of rebound from COVID-19, recovery still uncertain - The WTO now forecasts a 9.2% decline in the volume of world merchandise trade for 2020, followed by a 7.2% rise in 2021 (Chart 1). These estimates are subject to an unusually high degree of uncertainty since they depend on the evolution of the pandemic and government responses to it. Current data suggests a projected decline for the current year that is less severe than the 12.9% drop foreseen under the more optimistic of two scenarios outlined in the WTO's April trade forecast. Strong trade performance in June and July have brought some signs of optimism for overall trade growth in 2020. Trade growth in COVID-19 related products was particularly strong in these months, showing trade's ability to help governments obtain needed supplies. Conversely, the forecast for next year is more pessimistic than the previous estimate of 21.3% growth, leaving merchandise trade well below its pre-pandemic trend in 2021 (Chart 1).

The performance of trade for the year to date exceeded expectations due to a surge in June and July as lockdowns were eased and economic activity accelerated. The pace of expansion could slow sharply once pent up demand is exhausted and business inventories have been replenished. More negative outcomes are possible if there is a resurgence of COVID‑19 in the fourth quarter. In contrast to trade, GDP fell more than expected in the first half of 2020, causing forecasts for the year to be downgraded. Consensus estimates now put the decline in world market-weighted GDP in 2020 at -4.8% compared to ‑2.5% under the more optimistic scenario outlined in the WTO's April forecast. GDP growth is expected to pick up to 4.9% in 2021, but this is highly dependent on policy measures and on the severity of the disease . (WTO)

Key Words: Global Trade, WTO, World Economy

Preparing for the next chapter in trade and sustainable development governance – The debate over how to ensure sustainable development considerations are incorporated within trade policy-making is now some decades old. The World Trade Organization's Marrakesh Agreement famously enshrined the objective of sustainable development in its preamble 25 years ago, shortly after the landmark 1992 Rio Earth Summit that launched some of the key environmental frameworks of our time, including the UN Framework Convention on Climate Change and the UN Convention on Biological Diversity. A full quarter-century later, the discussion in policy circles has evolved dramatically, and the term “sustainable development” has become far better known and understood. That does not mean, however, that we should be complacent. Many of the old battles from the early 1990s and 2000s are still being waged, while newer concerns have emerged that would have been difficult to predict at the time that any of these institutions and frameworks were enacted. There is now an increased understanding that national and global economies function better when they are also inclusive, where inequalities are addressed, and where sustainability considerations are put front and center. Yet while there is now an active, engaged community on trade and sustainable development, often this work continues in silos. Meanwhile, those who do not work directly in this space may have a broad sense of the importance of sustainability, but not have a window into the technical and political nuances of these policy decisions and what these mean for daily life. (Trade4DevNews)

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

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

ECA, Smart Africa & Future State launch Africa Data Leadership Initiative – The Economic Commission for Africa raised the flag on data governance Tuesday by jointly launching the Africa Data Leadership Initiative (ADLI) with Future State and Smart Africa, creating safe space for policymakers, digital rights experts and entrepreneurs to learn together. The ADLI is a peer network designed for and by African policymakers, consumer rights advocates, and private sector stakeholders to ensure the data economy drives equitable growth and social progress across the continent. The tripartite partnership is creating a peer learning and exchange network in pursuit of three interrelated and interdependent goals:

Creating a dynamic “safe space” in which African policymakers, digital rights experts, and entrepreneurs can learn together and from each other, collaboratively problem solve, and share experiences;
Building a strong base of expertise across the continent to safely unlock the value of data for prosperity and social advancement; and
Contributing to broader initiatives like the African Union-led framework for an African Data Governance Agenda to build a comprehensive data policy for the continent.

Leveraging Smart Africa’s and ECA’s existing platforms, the organisations will promote the peer network among their constituents and solicit input to the data governance issues interrogated through the peer network. In her remarks during the launch, ECA Executive Secretary, Vera Songwe, said the ADLI was yet another stone in the edifice of trying to push data and ICT transformation on the continent. “If we do not find ways of closing the inequality gaps on our continent, we will end up with an even more unequal society which is unstable and may lead to political and civil unrest undermining the recovery” she said in reference to the ongoing novel coronavirus pandemic. Ms. Songwe said ICT and digital transformation is everybody’s business and value creation that exists in the ICT sector was crucial for wealth creation and a more prosperous Africa. “To catch up to the rest of the world and leave no one behind, we must invest quickly, faster and at scale in infrastructure, in particular in digital technology,” she said, adding ICT and digital transformation was everybody's business. (UNECA)

Key Words: Africa, Trade, UNECA

Tripartite Transport Corridor Trip Monitoring System Set for Piloting – Preparatory work for launch of a Corridor Trip Monitoring System (CTMS) pilot project are an advanced stage. The CTMS is an initiative of the tripartite regional blocs; the Common Market for Eastern and Southern Africa (COMESA) the East African Community (EAC) and the Southern Africa Development Community (SADC) on trade and transport facilitation. Piloting of this project is planned for sections of the North-South (NS) and Walvis Bay-Ndola-Lubumbashi (WBNL) Corridors, (which transit Zambia to the Kasumbalesa Border with DR Congo). Initial focus is on Zambia, a well land-linked State with eight neighbouring countries. To prepare the country for the project, a CTMS virtual workshop was conducted for stakeholders, incorporating public and private transport operators and their associations, in August this year. The meeting came up with procedures for operators, drivers/crew members and officials performing compliance validation at border posts and other roadside check points.

nce then, Zambia has now provided coordinates for waypoints, among them, COVID-19 test and isolation for transport crews in various provinces in the pilot corridor: Central, Copperbelt, Lusaka, Southern and Western and North-Western provinces. Operators along these routes are expected to register a trips on the CTMS which has been mapped to enable operators to follow. Two companies in Zambia have started the process of registering their fleet and drivers in preparation for the launch. Zambia has also commenced the procurement procurement of the hand-held devices to be deployed at the roadside for the CTMS Pilot. The devices will be available from 9 October to allow for software installation and training of officials prior to the launch of the Pilot. In addition, Zambia has designated Covid-19 testing centres where transport operators and their drivers can access these services country-wide before the commencement of their cross-border trips. To publicize the initiative, COMESA Secretariat in collaboration with the Cities and Infrastructure for Growth in Zambia (CIGZ) funded by UKAid has developed publicity kit to raise awareness especially on the Tripartite Trade and Transport Facilitation Guidelines aimed at fast-tracking clearance of essential goods and services. (COMESA)

Key Words: Regional Integration, Africa, COMESA

How Africa can curb illicit financial flows to strengthen economies post Covid-19– The Covid-19 pandemic crisis has worsened the vulnerabilities caused by the excessive reliance of African economies on world markets. Africa’s main trade partners include the European Union, China, the United States and United Kingdom. Together they represent more than 50% of the continent’s trade flows. Africa’s dependence on external markets for medicinal and pharmaceutical products is particularly acute — Africa imports more than 95% of these products from outside the continent. As the continent’s main trade partners have been severely hit by the Covid-19 pandemic, Africa has suffered significant business disruptions and output contraction, including in export sectors. Africa’s gross domestic product could contract by 1.4% in 2020, and the continent’s total merchandise exports could decline by 17%. McKinsey estimates that Africa’s manufacturing sector output will shrink by 10% in 2020 — equivalent to a loss of more than $50-billion.

Deeper integration - Deepening regional integration on the continent through the African Continental Free Trade Area (AfCFTA) can build resilient economies post-Covid-19. The AfCFTA, if quickly and effectively implemented, can address challenges emanating from Africa’s reliance on world markets, and create more value in local economies. This will, in turn, help to reduce vulnerability to future pandemics. By 2025, the AfCFTA could boost Africa’s total exports by 29%, intracontinental trade by more than 81% and African exports to the rest of the world by 19%, with most of the gains accrued to the manufacturing sector. However, the implementation of AfCFTA requires significant financial resources because of the need to address infrastructure bottlenecks, invest in productive capacities and expand access to operational cash flows by businesses. The continent’s infrastructure financing gap ranges from $68-billion to $108-billion, and its trade finance gap is estimated at $91-billion a year. Other priority actions include setting up and operationalising institutional frameworks to co-ordinate the implementation and monitoring of the agreement, as well as sensitising and developing the capacity of a wide range of actors to realise its objectives. Africa, therefore, needs to mobilise more domestic capital, an effort that is often frustrated by illicit financial outflows, among other impediments. (Mail Guardian)

Key Words: Africa, trade, AfCFTA

Co-operation between African states key in Covid-19 jump-start – As the economic fallout from the Covid-19 pandemic makes its presence felt across sub-Saharan Africa, all eyes are on the next policy moves governments will make to resuscitate growth. There are various tools and mechanisms policymakers could employ as they strive to pick up the pieces, but there is one in particular that has relevance for the continent’s economic fortunes: co-operation. Co-operation is the essence of the African Continental Free Trade Area (AfCFTA) agreement, intended to create a single, liberalised market for the free flow of goods within Africa. If successfully implemented, the agreement has the potential to mitigate the adverse effects of the pandemic on the region’s economies and speed up recovery. Before the pandemic, momentum was building behind the AfCFTA agreement, which 28 out of 54 signatories had already ratified. That momentum has since stalled amid the many border closures precipitated by the pandemic and the deferral of the AfCFTA implementation date of July 2020 to at least 2021.These developments have brought about an inward-looking focus in some African countries — a focus that was in certain instances already evident before the pandemic struck. For some time now, cross-border investment has been shrinking or stagnating relative to world GDP, amid rising nationalism and trade protectionism. Linked to this was a tendency for governments to adopt more interventionist economic approaches and introduce or tighten new foreign investment rules to prevent national or strategically important assets being acquired by foreign interests.Now, with the IMF forecasting that the volume of goods and services trade will shrink by 12% in 2020, it is clear that fragmentation is something Africa can ill afford. Encouraging intra-African trade and getting AfCFTA back on track have become a matter of urgency. (BusinessDaily)

Key Words: Africa, AfCFTA, COVID-19

EAST AFRICA

South Sudan oil firm bids to set up a $500m regional refinery –- South Sudanese oil marketing giant Trinity Energy Ltd is set to inject $10 million worth of new investments in its Kenyan operations and also plans to build a $500 million crude oil refinery in South Sudan to serve the region with refined petroleum products. The firm, which controls close to 40 per cent of the South Sudanese oil market, is planning a 40,000 barrels per day (bpd) modular refinery at Paloch in the oil-rich Upper Nile State, with the potential of expanding capacity to 200,000bpd, as well as petroleum storage facilities at Nesitu, in the south of the country. South Sudan has the third-largest oil reserves on the continent after Libya and Nigeria, estimated at 3.5 billion barrels, with much of it yet to explored. The refinery, to be built by American firm Chemex, is expected to be operational in two to three years, with plans to start distribution of refined petroleum products to Kenya, Uganda, Tanzania and the Democratic Republic of Congo by road, owing to the absence of railway and pipeline connectivity between these countries. The EastAfrican has learnt that the feasibility study and the designs for the proposed refinery have already been concluded with Afreximbank together with big regional banks operating in Juba expected to provide financing.“We are already making steady progress towards our refinery project. We have already identified and secured land for the refinery in Paloch. We have engaged Chemex of the United States as the project manager for this project. Separately we are close to tying up project preparatory work financing from Afreximbank and this will aid in the engineering and design work for the facility,” the firm’s chief executive Robert Mdeza told The EastAfrican in an interview. (The EastAfrican)

Key Words: East Africa, Business, Trade

Ethiopia further opens up sectors to diaspora and foreign nationals – As part of Ethiopia’s plan to liberalise its economy and boost investment, it is set to open up sectors that were once reserved for domestic investors. The new regulation is an extension of the country's new investment proclamation, which came into effect earlier this year that gives equal playing field to Ethiopian-born foreign nationals and foreign investors. “[There are] more opportunities for us as the economy opens up to invest our resources in our birth country, says Addis Alemayehu, an Ethiopian-born Canadian investor engaged in IT and one of the leading communications firms in the country. While Ethiopia had encouraged the diaspora to invest in the nation, its relationship quickly soured following questions of human rights and democracy from activists based in western nations.“We were even banned to sell our own shares in commercial banks when the government abruptly cancelled our rights to do so and we are now back to having been granted rights to own and sell and buy shares in banks” says Bethlehem Seifu, an owner of a digital company engaged in e-commerce.

Diaspora contribution- In the last two years since Abiy Ahmed became Prime Minister, the contribution via the diaspora in Ethiopia’s economy has shown a significant growth. Two commercial banks with an aggregate capital of $400m are under formation by Ethiopian-born foreign nationals living abroad. Annual remittance inflow also averaged $5.5bn over the last years; a significant growth from the $4bn average registered over five years before 2018. (theafricapreport)

Key Words: East Africa, Business, Trade

Tanzania's central bank says economy on track amid COVID-19 pandemic – Tanzania's economy continued to perform satisfactorily despite spillover effects from the global economy due to the COVID-19 pandemic, the central bank said on Tuesday. The Bank of Tanzania said in a statement that the bank's monetary policy committee assessment of the performance and outlook of the economy showed that the it will grow at the projected 5.5 percent in 2020."The macro-economic indicators have continued to remain stable and within agreed regional ranges," said the statement.The statement added that inflation has remained low, averaging 3.3 percent from July to August 2020, and will range between three to five percent in 2020/21 financial year, as earlier projected. "The projection is underpinned by adequate domestic food supply, stable exchange rate, moderate oil prices and prudent monetary and fiscal policies," said the statement. It said foreign exchange reserves remain adequate, above 5 billion U.S. dollars and covering about six months of imports. The statement added that private sector credit growth is strong notwithstanding challenges on global supply chains attributable to the COVID-19 pandemic. (TheStar)

Key Words: East Africa, Business, Trade

Economist call for support for small businesses – Economic experts have called for evidence based research to support the design of interventions for the micro, small and medium size enterprises that can sustain them post COVID-19 pandemic. The economists have expressed fears that bigger enterprises might benefit from current government support at the expense of the micro and small enterprises if support measures are not inclusive for little enterprises.
Dr Sarah Ssewanyana, executive director at the Economic Policy Research Centre said the Uganda National Bureau of Statistics has not collected much information on micro, small and medium size enterprises (MSMEs). This was during the launch of a study on the socio-economic impacts of COVID-19 on MSMEs in Uganda. The study is being conducted by the EPRC and the Canada based International Development Research Centre (IDRC). The minister of trade, industry and cooperatives Amelia Kyambadde launched the three-year study. In a speech read for her by Dr Joshua Ntambi, commissioner MSMEs, Kyambadde said during the pandemic some jobs have been lost, liquidity dried up, some businesses closed. Dr Paul Okwi, senior programme specialist International Development Research Centre (IDRC) said the evidence to support MSMEs has to be strong, politically neutral, actionable and easy to understand. "The policies have to be designed with the involvement of communities, government structures have to function to ensure the uptake of the evidence," Okwi said. "Having evidence does not ensure policies are implemented; we need to put into place deliberate interventions to put policies into actions. We need evidence before interventions are made and the impact assessments of the interventions," Okwi noted. (New Vision)

Key Words: East Africa, Business, Trade

WEST AFRICA

AfCFTA: The Government of Niger, the ECA and the Organization of Industrial Professionals of Niger organise the 4th edition of the trade fair “100% Made in Niger”- On Thursday, October 1, 2020, in Niamey, the Minister of State, Minister of Agriculture and Livestock, Mr Albadé Abouba, representing Prime Minister Brigi Rafini, officially launched the 4th edition of the trade fair “100 % Made in Niger”, together with the “Buy Nigerien” campaign. It took place in the presence of the Minister of Trade and the Promotion of the Private Sector, the Minister of Industry, the Director of the Sub-Regional Office for West Africa of the United Nations Economic Commission for Africa (SRO/WA-ECA), Ngone Diop, and the President of the Organisation of Industrial Professionals of Niger (OPIN). Organised by the Government of Niger, through the Ministry of Trade and the Promotion of the Private Sector, the SRO/WA-ECA and the OPIN, this activity aims to accelerate the process of the industrialisation and economic diversification of the country in the context of the entry into force of the African Continental Free Trade Area (AfCFTA) from January 2021. In his speech, the Minister of Trade and the Promotion of the Private Sector, Mr. Sadou Seydou, recalled that on October 25, 2019, during the meeting of Ministers in charge of Trade in the UEMOA area, it was adopted that the month of October be dedicated as "local consumption month" in the Community area. "This initiative aims to strengthen sub-regional economic integration and the development of intra-community trade that is consistent with the objectives set through the AfCFTA, the start of which is scheduled for January 2021", explained Mr. Sadou Seydou. For her part, the Director of the SRO/WA-ECA, Ngone Diop, recalled that “The ECA played a vital role in the formulation of the AfCFTA and in its adoption by the Heads of State and Government, and will continue to support our countries to accelerate the implementation of this unprecedented Agreement”.(UNECA)

Key Words: Africa, Trade, AfCFTA

Major Boost For Businesses, SDGs As President Akufo-Addo Launches 4BBT – On Tuesday, October 6th 2020, President Nana Addo-Dankwa Akufo-Addo launched 'For Better Business Together (4BBT)' to inspire business-worthy behaviour, discuss and critically analyse specific local issues, and serve as a convergence point for the youth of the world. The move, according to business and industry stakeholders will go a long way to further boost business interest in line with the UN Sustainable Development Goals (SDGs). It also comes with innovative ideas to connect entrepreneurs who have the solutions, and investors with SDG perspectives. The programme which was organised by Ghana's Ministry of Business Development (MoBD) in collaboration with the United Nations Development Programme (UNDP), the International Chamber of Commerce (ICC), and the Business for Peace Foundation(BfP) of Norway was on the theme "Post COVID-19 - Rebuilding Global Businesses Together". Speaking at the event, the president noted that the "For Better Business Together(4BBT) programme is a new global partnership to advance the United Nations Sustainable Development Goals (SDGs) and strengthen businesses in the world following the novel COVID-19 pandemic, which continues to have a devastating effect on the economies of the world, especially on micro, small and medium enterprises (MSMEs). He said the programme is aimed at addressing some of the local sustainability challenges and mobilize local entrepreneurs and businesses to find a longterm solution. Ghana with about 65% of its 30 million population below 30 years, was chosen for the global launch of the 4BBT programme. On his part, the Prime Minister of Norway Erna Solberg said Ghana's high Democratic credentials, political stability, visionary leadership and a vibrant entrepreneurial and start-up ecosystem made her the obvious choice for the global launch of the 4BBT programme. "The president's excellent management of the COVID-19 pandemic has gained global recognition. Hence the outcome of the 4BBT programme is expected to be the facilitation of SDGs aligned investments with potential partnerships in local start-ups / scale-ups and established businesses, to address relevant development challenges," he said. (Modern Ghana)

Key Words: West Africa, Regional Integration, Business

SOUTHERN AFRICA

Mthuli Ncube rules out de-dollarisation – Finance Minister Mthuli Ncube says that Zimbabwe is beginning to engage multilateral creditors, with a view of clearing its US$1.8 billion arrears, which will see the country unlock fresh funding to aid its economic growth efforts. Zimbabwe owes US$1.2 billion to the World Bank and US$600 million to the African Bank. Ncube said the clearance plan had been affected by the coronavirus pandemic, which had seen resources being deployed in order to control and curtail the spread of the virus. As a result monthly token payments to the creditors had been suspended. “We were faced with a choice. Do we look for US$1 billion to pay off the World Bank or we look for funding for the productive sector and for social safety nets? We settled for the latter. But now we are beginning to engage again.” Zimbabwe missed out on the US$250 billion the International Monetary Fund made available to its member countries for coronavirus relief funds. The amount is a quarter of the IMF’s $1 trillion lending capacity. Ncube said the Government would pursue two options; bridge financing from the multilateral creditors and a commercial transaction. If the country is to pursue bridge financing, then it would have to complete a Staff Monitored Programme as a prerequisite. The SMP was suspended with a view to ‘recalibrate it’ after Zimbabwe overperformed on its last programme. “But then again the question to ask is if Zimbabwe needs to be on SMP? We actually do not think it’s necessary. We have shown that we are able to have discipline on our own” Ncube said that conversations with commercial funders had begun and depending on the terms offered, this would be the preferred option. Initially Zimbabwe had arranged a syndicated facility with Afreximbank, which also included VTB Bank of Russia and Standard Chartered plc but the structure was seen as unfavourable to the country. Token payments, which used to be around US$150 000 a month, would soon resume. (Zimbabwe Mail)

Key Words: Zimbabwe, Regional Integration, Trade

N$8 million earmarked for informal economy – Through the Southern African Development Community (SADC) trade-related facility, the industrial upgrading modernisation plan (IUMP) is expected to inject around N$8 million into Namibia’s informal economy. The funds are to be distributed to 52 beneficiaries by end of October this year. The Ministry of Industrialisation and Trade says it carried out preliminary work to ensure that the informal economy is safeguarded during Covid-19 pandemic. According to the trade minister, Lucia Iipumbu, to this end, the ministry has introduced Covid-19 startup grants during the first phase of the lockdown that provided grants of at least N$15 000 to each 200 startups. Iipumbu revealed the significant capital injection for the informal economy when speaking in parliament last week. There she stated that an informal economy is a critical place of local livelihoods as well as a significant component of the overall economy. She noted that many informal entities and entities whose lifespan is less than five years old received assistance from the ministry. Iipumbu continued that the trade is in another process of providing an additional 500 Small and Medium Enterprises (SME) the same grant of N$15 000 during October. “The adoption of the national policy will foster an operation that will foster an approach that recognises different levels of the formation such as being traceable through registration with a recognised informal economy association and operating from a normal place,” explained Iipumbu. Furthermore, the minister confirmed that the work of Namibia Investment Promotion Act is at an advance stage: “The ministry has specified and engaged this task to put into place the modern and clear legal framework for the effective promotion facilitation, management of domestic foreign investment, which will also than culminate into the protection of the informal economy.”(New Era Live)

Key Words: Trade, Regional Integration, SA

South Africa’s exports to China were surprisingly better in the 'pandemic quarter' – While South Africa had seen on overall decline in exports during the lockdown, exports to China had grown by just more than 2% year-on-year during the second quarter, says research institute Trade & Industrial Policy Strategies (TIPS). The result is that, during the quarter, China’s dominance as South Africa’s main export destination grew to 13.4% of all exports, at R36.6-billion. The top five products that were exported to China during the second quarter were ores, iron and steel, wood pulp, copper and fruit and nuts, altogether accounting for 88% of South Africa’s total exports to China by value. TIPS finds through its Export Tracker that the quarter experienced a strong decline in the remainder of South Africa’s trading partners in the second quarter. South African exports to Germany, which is generally the country's second-largest export destination, decreased from R23.4-billion worth of exports in the second quarter of last year to R12.4-billion in the second quarter of this year, representing a 47% year-on-year decline. TIPS attributes the fall in exports to this country to the significant decline in vehicle exports. TIPS Export Tracker authors Wendy Nyakabawo and Mawabo Ndlebe explain that the global and local trends for the second quarter reflect the full disruption that the pandemic had on South Africa’s international trade, resulting in it being called the “pandemic quarter”, but it should not be seen as indicative of future trends. (Engineering News)

Key Words: Trade, Regional Integration, SA

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 8 OCTOBER 2020

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