ATPC DAILY DIGEST 15 OCTOBER 2020

WTO members search for compromise as text-based negotiations on fishing subsidies continue –Members focused on the following issues related to the draft consolidated text: a possible definition of “fish”; subsidies to address disasters; due process in determinations of illegal, unreported and unregulated (IUU) fishing, and what to do when territorial claims overlap. The Negotiating Group Chair, Ambassador Santiago Wills of Colombia, had introduced the draft text in June and members in July agreed to use it as the starting point for text-based work to develop new disciplines on fisheries subsidies to prohibit subsidies that go to IUU fishing or contribute to overfishing and overcapacity. The chair reported the latest progress to heads of WTO delegations at the closing meeting of the week, where members also commented on how to further organize the negotiating process. The chair said he was encouraged by the constructive discussions and new textual suggestions. He noted, however, that progress was slow and he urged members to pick up the pace. To do that, he said they should not repeat well known negotiating positions and to find middle ground that met their needs, even it if was not their preference. To this end, members are holding “intersessional” discussions in between the week-long clusters of meetings. Furthermore, a number of members asked the chair to prepare and circulate a revised version of his draft text, particularly as two of the four clusters of meetings scheduled for the last quarter of the year have already taken place. The next cluster of meetings will be held on 2-6 November. (WTO)

Key Words: Global Trade, COVID-19, WTO

ACI and IATA Call for Urgent Industry-Wide Support to Underpin Recovery – Airports Council International (ACI) World and the International Air Transport Association (IATA) reinforced the urgent call for governments to use testing as a means to safely re-open borders and re-establish global connectivity and to prevent the systemic collapse of the aviation industry with non-debt generating financial support. The dual measures would protect countries from the importation of COVID-19 cases, avert an employment crisis in the travel and tourism sector, and ensure that the critical aviation structure remains viable and able to support the economic and social benefits on which the world relies. The Air Transport Action Group (ATAG) estimates that 46 million jobs are at risk because of the loss of connectivity caused by the COVID-19 crisis. The vast majority of these (41.2 million jobs) are in the travel and tourism sector which relies on aviation. The remainder (4.8 million jobs) are spread across direct employment in aviation, including airports and airlines. The viability of the airline sector to support employment is being challenged by the severe and prolonged fall in business:

ACI estimates the airport industry will suffer a -60% reduction in revenues, reaching an unprecedented -$104.5 billion.
IATA estimates that airline revenues will be down at least 50% ($419 billion compared to $838 billion in 2019).

Safely re-opening borders without quarantine by using a coordinated approach to testing would boost the entire economy and be a revenue lifeline for airlines and airports. ACI and IATA have called on the ICAO Council Aviation Recovery Task Force to provide an internationally agreed and recognized approach to testing that can be adopted at a national level. Governments are also urged to address the devastating impact of border closures and other government-imposed travel restrictions by supporting aviation’s viability through direct financial support that:

protects jobs and operations
does not increase debt levels, and
minimizes default on debt and credit losses.

“The COVID-19 pandemic remains an existential crisis and airports, airlines and their commercial partners need direct and swift financial assistance to protect essential operations and jobs,” ACI World Director General Luis Felipe de Oliveira said. (IATA)

Key Words: Global Trade, COVID-19, IATA

Transcript of October 2020 World Economic Outlook Press Briefing - Employment remains well below pre-pandemic levels, and the labor market is increasingly polarized with low-skilled workers, youth, and women being harder hit. The poor are also getting poorer with up to 90 million people expected to fall into extreme poverty just this year. The ascent out of this calamitous Great Lockdown is likely to be long, uneven, and highly uncertain. It is therefore essential that fiscal and monetary policy support are not prematurely withdrawn as best possible. In our latest World Economic Outlook, we continue to project a deep recession in 2020. Global growth is projected to be -4.4 percent, which is a small upgrade from June. This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partially by downgrades in some emerging and developing economies. In 2021, growth is projected to rebound to 5.2 percent, slightly below our June projection. Now, except for China where output is expected to exceed 2019 levels this year, output in both advanced economies and emerging and developing economies are projected to stay below 2019 levels well into 2021. Now, countries that rely heavily on contact-intensive services and oil exports face weaker recoveries compared to manufacturing-led economies. Now, the divergence in income prospects between advanced economies and emerging and developing economies, excluding China, triggered by this pandemic is projected to worsen. We are upgrading our forecast for advanced economies for 2020 to -5.8 percent followed by a rebound in growth to 3.9 percent in 2021. This is a partial recovery. For emerging markets and developing economies, excluding China, instead we have a downgrade, with growth projected to be -5.7 percent in 2020 and then rebounding to 5 percent in 2021. (IMF)

Key Words: Global Trade, COVID-19, IMF

Close EU-Africa relations more important than ever, says Socialist group leader –

Q: African leaders expect better trade relations with Europe and the ability to build up their own domestic and regional manufacturing capabilities to export more ‘finished’ goods rather than raw materials. What is the S&D group’s position on this?

A: We are advocates of value addition and inclusion of Africa in the global value and supply chains; we have in the past, made input to this effect towards the EU-AFRICA strategy. We are of the strong belief that shifting economic models from extraction to manufacturing benefits both continents. More importantly, our values have a pro-worker bias and we therefore view this as a step towards the creation of millions of decent jobs proportionate to projected population growth. Having said that, it is also important to ensure that the natural resources are used to the benefit of the population, and not just a few. Our group has organised in the past several conferences on the “The resource curse”, and the problem is still there, and it is unfair. We all have a responsibility to turn natural resources into a blessing. Economic growth must be both inclusive and sustainable, and extractive accumulation models are neither. Often basic human rights are not respected. Besides, the sale of minerals is susceptible to price shocks on the global markets, it creates instability and uncertainty. We do not want our African neighbours to make progress today and regress the following day because metal prices have changed overnight, just like we witnessed during this era of COVID-19.

Q: You talk about Africa “becoming a world leader in the production and use of renewable and efficient energy that respects environmental standards”. What should the EU do to facilitate that?

A: Africa has huge deposits of natural gas, and most of it receives up to 10 hours of sunshine a day for the greater part of the year. These two factors place Africa in an advantageous position. Since there is already an energy and power deficit in Africa, it would be very easy to phase out the environmentally unfriendly energy. On top of that, power sources like coal are not benefiting the majority of the people, especially in Sub Sahara Africa, therefore the cost of the transition is low. The EU could offer technical assistance in the transition. In Europe we already have big solar projects – some of them in my own country, Spain – and the experts who can help the transition to self-management in Africa. We also have to bear in mind that companies in the EU can partner with Africans in rolling out the energy infrastructure. This would not only generate energy but jobs on both sides. The Commission has just published its plans to overhaul the Dublin regulations on EU immigration and asylum. Many African governments want the EU to move on legal pathways before agreeing to do more on migrant returns. What is your position on this?

Let me first say that our goal should be to create opportunities in Africa. I am all for legal pathways for migration, and we are working for that. It is a priority for the S&D. However, I wish that people would not have to leave their home and their families because they need to escape from conflict, or famine, from persecution or simply for desperation for the lack of decent jobs for a decent livelihood. We cannot just accept the brain drain of African youth, because Africa also needs all that energy and ambition. So we have to work both ways: to build a future for the young in Africa, and also to improve the EU response to migration. (Euractiv)

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

African trade to be impacted by No-deal Brexit and Covid-19- A No-Deal Brexit compounded by the COVID-19 pandemic could see UK GDP fall by 6% and lose £134 billion pounds annually according to The Outlook for Trade after Brexit report. Thereport, from the leading legal global law firm Baker McKenzie and economic consultancy Oxford Economics, covers four sectors of the UK economy, automotive, consumer goods, healthcare and technology which make up around 40% of the UK’s manufacturing GDP and export 46% of their goods to the EU. The report forecasts the combined economic costs of Brexit and the COVID-19 crisis on the UK economy as well as addressing particular issues relating to exports of four key industries: automotive; consumer goods; healthcare; and technology. It also explores potential policy options for mitigating the resulting damage to business activity, including two specific Free Trade Agreements (FTAs); a trade deal with the US and membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) . Estimates based on data from Oxford Economics suggest that a US-UK deal would provide a boost of only around 0.2% to the UK’s GDP, while membership of the CPTPP would raise GDP by a marginal 0.05%. The report forecasts that over the next decade the UK’s GDP will be 2% lower, the equivalent of £50 billion a year, because of the pandemic, when benchmarked to the level of GDP in 2019. With the UK economy now gradually re-opening, many firms will remain operating well below normal capacity, limiting the pace of the recovery. The report forecasts that in the long-term, the UK’s total exports will be about 2.5% below the levels anticipated before the outbreak. Jenny Revis, partner in the EU, Competition and Trade practice at Baker McKenzie said, “It seems extraordinary that in the midst of the biggest economic shock to the global economy since the Second World War that the British government would consider compounding the impact on the economy of COVID-19 through consciously choosing a No Deal Brexit. (Africa Feeds)

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

PAN AFRICA

New investments to lead Africa agri-development – At a time when the rest of the world is re-thinking its approach to commercial agriculture, Africa has a clear opportunity to refresh its approach to the sector and become an emerging force. Big shifts are already happening in food production, land and water use, and the integration of agri-tech and product tracing. If African firms take an early lead during this transition, they will be well placed to compete globally by building enduring assets and commercial advantages beyond primary production. The financing of new investments in agriculture has always relied on a healthy financial eco-system: active banks, sound insurers and lively futures markets. The next set of gains will come from new platforms that allow small and large firms to connect to each other and to their shared stakeholders. Reciprocal exchange of market data will make smaller, efficient players more visible to large buyers. “Without continued advances in agricultural productivity, the whole project of African advancement is at risk,” according to Linda Manda, sector head agribusiness, corporate and investment banking at Stanbic Bank’s parent company, Standard Bank. “The stakes are high for all of us”, says Ms Manda, “because communities in Africa rely on the agriculture industry for much more than food: employment, investment and infrastructure development are all part of the deal.” Over half (52 percent) of all people in Sub-Saharan Africa are employed in agriculture (2019).

Three recent developments: Higher value incentives - Three recent development milestones suggest that African firms are ready to move beyond low-margin primary production while remaining active in agriculture. According to Sola David-Borha, chief executive of Africa regions at Standard Bank, “‘higher-value economic activity is even more likely if finance, technology and trade move deeper into African agriculture. Larger and more open markets, strong supplier networks and technology investments will drive Africa’s growth.” (The Herald)

Key Words: Africa, Trade, Business

Regional Research Forum to Unveil Interface Between Intra-COMESA Trade and the Continental FTA- The 7th COMESA Annual Research Forum will take place from 19 – 21 October 2020 and this year, the focus is how intra-COMESA Trade can be harnessed through interface with the African Continental Free Trade Area (AFCFTA). The virtual event which is being funded by COMESA, the Organization of African, Caribbean and Pacific States (OACPS) and the European Union (EU) will bring together the academia, think tanks, government officers and the private sector from across the region and Africa, to discuss emerging topical issues in regional integration. The theme for this year is: “Harnessing Intra-COMESA Trade through the Interface with African Continental Free Trade Area (AFCFTA)”. According to the COMESA Director of Trade, Dr Christopher Onyango, the theme is motivated by renewed impetus towards consolidation of a single continental market and the role of COMESA in the realization of this goal. COMESA is the largest economic bloc with a membership of 21 member States, a combined GDP of US$ 769 billion, a combined population of over 583 million and therefore a critical pillar in the realization of the African Economic Community. The African regional integration roadmap considers the Regional Economic Communities (RECs) as the building blocks of the African Economic Community as stipulated in the Abuja Treaty of 1991 and the AUs Agenda 2063. COMESA is among the eight RECs in Africa recognized by the AU. “Making up a third of Africa, the vastness of COMESA should be complemented with its dynamism and high trade growth,” Director of Trade, Dr Christopher Onyango says. He adds that since the launch of the COMESA Free Trade Area in 2000, intra-COMESA export of goods has risen from $1.5 Billion to about $10.8 Billion (2019), excluding small scale (informal) trade estimated by UNCTAD and Economic Commission for Africa at about 40% of total trade. “These figures are still not impressive in absolute terms, but the growth is remarkable. What is even more remarkable is the potential as well as the possibility of introducing wholly new products and industries through innovation given the extensive market created by the AfCFTA,” he adds. (COMESA)

Key Words: Africa, Trade, AfCFTA

‘Africa Must Think Continental, Focus on Wealth Creation’ - The Chief Executive Officer, Ecobank Transnational Incorporated (ETI), Ade Ayeyemi has reiterated the need for African countries to adopt a continent-wide approach to business and also focus on wealth creation. This, he said would make businesses in the continent to be relevant in the global value chain. According to Ayeyemi, for the African Continental Free Trade Agreement (AfCFTA) to become a reality, there must be commitment and readiness for trade facilitation by the individual nations. Ayeyemi, who spoke at the Ecobank virtual Regional Trade Conference 2020 held recently, said the bank was fully committed to Africa as a pan-African financial institution. He said African governments must unequivocal commit to the continental agreement. He stressed that Ecobank would unequivocally support the implementation of AfCFTA, expressing readiness to use the bank’s pan-african platform to facilitate trade, payment and business and deployment of its strong Africa knowledge to support governments and businesses. The Ecobank CEO emphasised that, “no country is so poor that it has nothing to give and no country is so rich that it has nothing to receive. All of us must come together to become better.” lso speaking, the Executive Director/ Chief Executive, Nigeria Export Promotion Council (NEPC), Segun Awolowo, said with a market of 1.2 billion people and combined GDP of $3 trillion, there was huge potential for Nigeria to increase its export to Africa. According to him, most of exports had been informal exports, but with platforms like Ecobank, “it is going to be formal and add real value to the economy.”He disclosed that in 2018, the export value of Nigeria to Africa totaled around $6.99 billon, “but its export to the rest of the world totaled $45.92 billion. However, Nigeria’s export is majorly crude oil and natural gas which constitute 91 per cent.” (This Day)

Key Words: Africa, Trade, AfCFTA

Tough times for Africa’s upstream oil and gas – Getting upstream oil and gas projects off the ground in sub-Saharan Africa was challenging before the Covid-19 pandemic. Now the operating environment is even tougher, as the industry contends with labour restrictions, disrupted supply chains and the long-term impact on revenues and investment of the collapse in global demand for energy products. International oil companies that previously regarded the acquisition of new hydrocarbons reserves as a primary indicator of their corporate health are now touting the benefits of prudent investment in their existing oil and gas assets and diversification away from riskier upstream activities. That means all but the most attractive, low-cost African acreage will be a hard sell to international investors. This is not good news for either Africa’s would-be entrants to the oil sector promoting frontier acreage, such as Somalia, or for established exporters seeking to shore up dwindling output – and revenues – from existing production through investment in more marginal fields and satellite developments. The region’s largest oil exporters, Nigeria and Angola, fall into the latter category. Nigeria’s central bank reported in August that the value of the country’s crude oil exports fell to $9.48bn in the first quarter 2020, as the pandemic gathered momentum – a 20% drop compared with the previous quarter. The price of Nigeria’s Bonny light crude was over $65/barrel last December but below $15/barrel by April. Fitch Ratings downgraded Angola to CCC in early September. It cited the fall in global oil prices, which it says has exacerbated key vulnerabilities in the Angolan economy, leading to lower external receipts and a sustained weakening of the countrys currency, the kwanza, which has resulted in increasing debt servicing costs and downward pressure on fiscal and external buffers.

Recovery in sight? - However, the picture is not one of unmitigated gloom for African upstream. If a resurgence of coronavirus infections can be averted, the worst impacts of the pandemic on the industry could be behind it. Global oil prices have recovered from their lows, with Brent crude trading at almost $40 in early September, up from lows of $20 in mid-April, indicating demand recovery that could bolster investment. (African Business)

Key Words: Africa, Trade, AfCFTA

Covid-19 and AfCFTA: Africa’s path out of recession? – E-commerce and the use of digital payment systems have taken on greater importance following the outbreak of Covid-19. For example, shortly after the pandemic began, the Kenyan government encouraged citizens to use online or mobile payment methods instead of cash when making transactions, with the central bank announcing in March that banks would waive fees for financial transfers completed via mobile banking. Similar trends have been noted all over the world, with analytics software company Statistica estimating that global digital payments will increase by 14.2% this year despite the economic slowdown. “The Covid-19 pandemic will encourage more people to move away from cash transactions to the extent that they have a choice,” Juliet Anammah, chairwoman of online marketplace Jumia Nigeria, told OBG in an interview in June. “This choice is based on multiple factors, such as access to devices with digital payments, the cost of the transaction and payment solutions. It is important to break down all these elements to make sure the cost of digital transactions is low to encourage more people to go digital.” Naturally, the shift towards digital payments has also had an impact on businesses, with many updating their online offerings. “For those who did not believe in electronic banking or e-commerce, the pandemic has demonstrated that having those options is now a necessity,” John Addo, managing director of Prudential Bank, told OBG. “Most banks had already begun the process of digitalisation, and Covid-19 has provided a clear sense of urgency.” However, beyond simply providing alternative payment options, the development of digital platforms is also impacting the way companies do business. (Oxford Business Group)

Key Words: Africa, Trade, AfCFTA

NORTH AFRICA

Turkish exporters complain of new customs delays in Morocco, Algeria – Turkish companies say they are facing new delays in recent weeks exporting clothing to countries in North Africa where one, Morocco, has amended a trade deal allowing it to raise duties by up to 90% on such goods. The exporters of ready-to-wear clothes have complained about unusual requests for paperwork and delays of up to five times the norm clearing customs in Morocco and Algeria, three sector groups told Reuters. The trade ministries in Morocco and Algeria were not immediately available to comment. Reuters could not determine the reason for the delays. The complaints come as textile and clothing manufacturers in North Africa, the Middle East and Eastern Europe position to take advantage of the disruption to global supply chains from the coronavirus pandemic. Big European brands are looking for alternative production hubs, such as Turkey and Morocco, that are located closer than manufacturing giant China. Morocco’s government, worried that a 2004 free trade deal with Turkey has harmed its manufacturers and retailers, said last week that talks that began with Ankara in January led to an amendment in August. A trade ministry source said the amendment allows Morocco to raise duties by up to 90% on 1,200 products including textiles and clothing for five years. Turkey’s trade ministry declined to comment. Giyasettin Eyyupkoca, head of Turkey’s Laleli Industry and Business Association, said Morocco has long imposed the highest legal duties on Turkish imports in order to support domestic production. But in recent months exporters have faced “unofficial and undocumented” delays at the border, he said. “It even takes 10-12 days to clear our goods through customs, instead of two days as usual.” (Reuters)

Key Words: North Africa, Trade, Turkey

EAST AFRICA

Telecoms, imports push sh1trillion tax surplus –-The Uganda Revenue Authority (URA) realized sh1 trillion surplus in the first quarter of the financial year after telecoms and imports performed beyond expectation. The taxman collected sh4 trillion from July to September 2020 beating targets of sh2.99 trillion. John Musinguzi, URA's Commissioner General said that there was increased telecom transactions for voice and text owing to limited COVID-19 mobility. He noted that Mobile money transfers had sh17.52b surplus, phone talk time (sh12.51 b surplus), beer (sh27.69b surplus), and Over the Top OTT taxes (sh8.27b surplus). URA's targets for this financial year 2020/21 have been shaved to sh19.6 trillion from sh20 trillion due to the expected impact of the COVID-19 pandemic on the economy. The surplus in the first quarter was mainly driven by Manufacturing (18.54%), ICT (20.49%), and Wholesale (2.30%) among others. Domestic taxes collection was sh2456.46 b, performing at 131.66% and sh590.75 b above the target, registering a growth of sh51.01 b (2.12%) during the period compared to the same period last Financial Year. International trade tax collections were sh1.7 trillion, performing at 138.87% with a surplus of sh479.79b. Compared to the same period last FY, and customs tax collections grew by sh23.93b (1.42%) year on year. Revenue from accommodation and food services declined by 58.82%, education sector declined by 31.94%, Arts, entertainment and recreation by 55.59% while a decline of 33.56% was registered underwater supply mostly due to COVID-19 lockdown measures. "There was growth for cement, phone talk time, wholesale and retail and spirits. The high demand for cement is due to ongoing infrastructure developments. Demand for spirits increased because it's a raw material for sanitizers," Musinguzi said. (New Vision)

Key Words: East Africa, Business, Trade

EABC Calls For Mutual Recognition Of COVID-19 Certificates Among East African Partner States – The East African Business Council (EABC) is calling for mutual recognition of COVID-19 certificates among East Africa Community (EAC) Partner States and restocking of reagents at border posts, to minimize traffic snarl-ups at the Busia and Malaba border posts. Currently, the traffic of trucks headed to the Busia border starts at Mundika town, 15 kilometers to Busia border while the traffic snarl-up to Malaba one-stop border post is exceeding 30 kilometers. With about 55 trucks stalled per kilometer, this implies that more than 2,400 trucks destined for Uganda are still yet to be cleared. A move disrupting cross-border trade and costing the economy. During the joint mission with the Ministry of EAC Affairs and Regional Development of Kenya and various private sector stakeholders at the Busia One-Stop Border Post (OSBP) and Malaba OSBP, the East African Business Council ascertained that most Ugandan truck drivers are traveling without COVID-19 certificates with plans of being tested at the border points. The increase in the demand of reagents is also reported to have exceeded supply, hence delaying the testing. EABC is urging East African Partner States to provide adequate reagents at the Border Points to accommodate the testing demand. Speaking in Busia OSBP, EABC CEO Dr. Peter Mutuku Mathuki called for a regional coordinated approach in implementing EAC Standard Operating Procedures (SOPs) for truck drivers and joint border collaboration to address the long truck queues and COVID-19 related issues. “It is very critical for transporters in the region to also embrace the recently launched Regional Electronic Cargo and Driver Tracking System (RECDTS) to improve the truck turnaround time and allow Partner States to electronically share truck drivers’ COVID-19 test results, thus minimizing the need for multiple COVID-19 tests in a single trip.” EABC is also calling for cargo trucks to be weighed at the loading point and the next One-Stop Border Post (OSBP). (Capital Business)

Key Words: East Africa, Business, Trade

WEST AFRICA

Trans Gambia Corridor Strengthening Pavement Project, Others Launched – Speaking at the Kerr Ali event, President Barrow revealed that an amount of 68.5million dalasis was provided by the African Development Bank (ADB), to carry out a road safety audit and feasibility studies of the second phase of the Trans Gambia Corridor Strengthening Pavement project. “It will be recalled that the AfDB had earlier provided a grant of GMD 4.35 Million for the first phase. On completion of the studies conducted, the European Union (EU), through an arrangement with the AfDB, also granted The Gambia 16 Million euros which is equivalent to GMD 880 million, to finance the actual strengthening of the Highway. This is what constitutes the second phase of the project,” said President Barrow. The President further commended The African Development Bank and The European Union for supporting The Gambia in its drive to provide the much-needed infrastructural development projects for the people of The Gambia and the sub-region as a whole. He added that the work to be undertaken in phase two of this landmark project includes pavement strengthening of the twenty-four (24) kilometers of the Trans-Gambia Highway, which consists of both pavement overlay and rehabilitation works from the border in the South, at Misera, in the Lower River Region to Kerr Ali, in the North Bank Region. “One of the objectives of the project is to facilitate overland traffic flow between the Northern and Southern parts of The Gambia and Senegal and, by extension, to enhance free movement within the West African region as a whole,” he added. President Barrow further stated that the corridor was a component of the Dakar-Gambia-Bissau-Conakry-Trans-West African Highway, which features on the ECOWAS programme of events, adding, it is also part of the Trans-African Highway, Cairo-Dakar-Lagos. “We encourage the residents within the area to support the project, and cooperate amicably with the contractors. Do not allow any person to obstruct their work or destroy what has been done already,” he told the gathering. (Foroya)

Key Words: West Africa, Regional Integration, Business

Ghana leads on industrial growth by dropping the dogma – Ghana has shown that by dropping the dogma around free market policy, making manufacturing a bipartisan cause and using the government as a problem-solving machine for business, African countries can create jobs and attract investment into industry. The Africa Continental Free Trade (CFTA) agreement now serves as the cornerstone of efforts to transform Africa’s economy. Its ultimate overarching goal is not merely to boost intra-African trade, but to industrialise the continent. Yet the CFTA will face major headwinds in these early years unless African economies demonstrate tangible progress in their industrialisation efforts. Among others, Ghana’s industrial strategy provides an example of how governments can drive industrialisation in a way that aligns to increased trade, thereby supporting the CFTA and its aims. In 2018, Ghana became West Africa’s largest recipient of foreign direct investment (FDI) in West Africa, attracting $3bn and raising its FDI inward stock to $36bn in 2018, up from just $10bn in 2010. Manufacturing is a major component – between 2015 and 2018, $3.8 billion out of a total $11.7 billion in FDI was in this sector and this trend continued in 2019 and 2020. How and why has Ghana succeeded in this way? A plethora of research has attempted to answer this question.(theafricareport)

Key Words: West Africa, Regional Integration, AfCFTA

SOUTHERN AFRICA

Eswatini Rail Link project progressing, developers say – The Eswatini Rail Link (ESRL) project is on track to advance economic development and intra-African trade, the developers noted in a statement on October 12. The project is a joint inter-railway strategic initiative between Transnet Freight Rail (TFR) and Eswatini Railways (ESR) to create a dedicated general freight business (GFB) corridor for Transnet, while providing much-needed additional capacity for ESR. The project entails the construction of a 150-km-long new railway link between Lothair, in South Africa, and Sidvokodvo, in Eswatini, including the upgrading of existing lines, one being the line from Ermelo to Lothair and the other being the line from Sidvokodvo to the logistics hub of Richards Bay, in South Africa. The developers noted that the Eswatini Rail Link project would create jobs and business opportunities. t is anticipated that about 3 400 construction-related jobs will be created in South Africa and 2 700 in Eswatini. Long-term employment arising from train operations and maintenance extends to an estimated 500 jobs in South Africa and 300 in Eswatini. The project is also expected to help develop the skills of the people working on the project and in surrounding communities. Moreover, it is expected to be a catalyst for economic development, improve regional integration and promote intra-African trade. (Engineering News)

Key Words: Eswatini, Regional Integration, Trade

Minister of Mineral Resources & Energy, Hon. Gwede Mantashe, sets out post-pandemic plan for South Africa’s energy sector – Hon. Gwede Mantashe opened day two of AOW Virtual (7-8 October), an online summit from the team behind Africa Oil Week (Africa-OilWeek.com). Minister Mantashe’s address reflects the importance of South Africa’s role in the Africa Oil Week community, as the conference’s host nation for its 26 editions. The goal of AOW Virtual was to reignite the African upstream following a tumultuous year that has featured unprecedented supply and demand shocks in the sector. In his address, Minister Mantashe did not shrink from addressing the devastating effects of COVID-19 on South Africa, having only recovered from the disease himself a few months previously. Though South Africa allowed the energy sector to operate at full capacity following the nationwide lockdown, a decrease in demand for petroleum products over an extended period meant some refineries were still forced to close. Despite this, Minister Mantashe stressed that the tide now looks to be turning, following further relaxation of lockdown restrictions in South Africa as it heads into Summer. He cited recent “rapid increase in demand” for petroleum products in the country, which is now leading to the converse problem of shortages in some areas. The Minister’s address left no doubt that The Department of Mineral Resources & Energy (DMRE) views the energy sector as a catalyst for economic recovery and future growth in South Africa. The Petroleum Resources Development Bill will play a crucial part in this, and in the Minister’s plan to reduce the country’s dependence on hydrocarbon imports. On the recently published Bill, Mantashe commented “We have had consultations with a broad range of stakeholders. Our intention is to have the Bill finalised; to attract investment and ensure synergy between oil and gas activities and our nation’s environment and water resources”. (APO Group)

Key Words: Trade, Regional Integration, SA

We need to move away from GDP as a measure of progress: Dr Mamphela Ramphele – The Covid-19 crisis offers South Africans opportunities to tackle the unfinished agenda of transforming society into a more equitable, resilient and prosperous democracy that promotes the wellbeing of all people, according to academic and businesswoman Dr Mamphela Ramphele. The cofounder of ReimagineSA was the opening speaker at the annual Trialogue Business in Society Conference on 13th October, where she discussed how corporates could play a leading role in strengthening socio-political and economic conditions. Dr Ramphele spoke of great leadership in extraordinary times in world history: “Leaders who rise to the demands of extraordinary crisis tend to be those willing to take the risk to be creative, inventive and courageous. “Such leaders succeed because they dare to break from the known to the unknown, from the familiar to the unfamiliar, from traditional to non-traditional ways, to open up new pathways to more promising futures.” Dr Ramphele focused on three key issues in her virtual address: leadership in challenging times, the process of emerging from the Covid-19 crisis, and education as a platform for innovation and resilience. (BusinessTech)

Key Words: Trade, Regional Integration, SA

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 15 OCTOBER 2020

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