ATPC DAILY DIGEST 19 OCTOBER 2020

Brexit news latest: Boris Johnson says UK should prepare for No Deal with EU after bust-up with Brussels –Boris Johnson dramatically told Britain to prepare for a No Deal Brexit after a bust-up with Brussels on trade talks. The Prime Minister put the country on notice that its EU departure at the end of the transition period on December 31 could be without a trade deal with the European bloc. Such a scenario would leave businesses facing tariffs and quotas to trade with the European bloc, and transport delays could see some food shortages, a supermarket chief warned. However, the Prime Minister stopped short of fully walking away from the negotiations by telling EU leaders he was still open to seeking to strike a deal if they show a “fundamental change in approach”. In his shock announcement after an EU summit in Brussels told the UK it had to make concessions, Mr Johnson stressed that it now no longer appeared that his aim of a Canada-style trade deal would “work”. He insisted that the Government, “with high hearts and complete confidence”, was willing go for a future with No Deal. But the Pound fell sharply and his rhetoric contrasted with the reality of plans to put toilets on roads in Kent for truckers to use if there are huge queues at Dover to get across the Channel. Most economists also warn that a No Deal departure would be hugely damaging to the economy, and it would also fall far short of the future for the UK trumpeted by the Brexit campaign in 2016. However, less than an hour after Mr Johnson’s statement, European Commission president Ursula von der Leyen said an EU team would be heading to London next week to “intensify” negotiations. Her comment suggested talks would continue despite what may turn out to be sabre-rattling from political leaders, or that Brussels was seeking to avoid blame if they collapse. (Evening Standard)

Key Words: Global Trade, COVID-19, Brexit

Regional development banks play a critical role in COVID-19 response and recovery – During the week of October 12, the World Bank and International Monetary Fund (IMF) met virtually for their 2020 Annual Meetings as the COVID-19 pandemic continues to spread around the world, sickening and killing millions, forcing 1.5 billion children and young people from schools and advanced education, devastating economies, and pushing millions in poverty as lockdowns closed businesses and put workers out of work. Local, national, and global responses began in short order with varying degrees of success. Governments, corporations, civil society and community groups, and citizens of nearly every stripe began to step in and step up to address the escalating impacts of the pandemic in ways large and small. On the largest scale, European Union and United Nations multilateral agencies and international financial institutions such as the Bretton Woods’ World Bank/IMF began to wield their financial might to mobilize emergency capital support and fiscal stimulus packages and to reorient existing lending toward virus containment and response—supporting health systems, social protection, and economic recovery. At the same time, regional development banks (RDBs), arguably long-operating in the global shadow of their bigger Bretton Woods cousins, also leapt into action and are playing a critical role. These multilateral institutions provide financial and technical assistance in concessionary loans or grants for development in low- and middle-income countries within their regions and operating areas to advance a variety of goals in agriculture, education, health, public administration and governance, environmental and natural resource management, infrastructure, financial inclusion and enterprise development. Normally, the term RDB is principally associated with four institutions; the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank (IDB); but can also include others, such as the Islamic Development Bank (IsDB). (Atlantic Council)

Key Words: Global Trade, COVID-19, Regional Integration

New WTO publication addresses common questions about trade and the environment- The WTO launched a new publication to answer commonly raised questions about trade and the environment at a virtual event on 16 October. “Short Answers to Big Questions on the WTO and the Environment” explores trade’s impact on the planet, the policies that governments enact to protect it and the role of the WTO regarding environmental issues. "Environmental issues are woven into the history of the multilateral trading system. But the role of trade and the WTO on the environment is complex, and as a result, it is not always well understood," Deputy Director-General Alan Wolff said at the event. "The short answers to the big questions that we are launching today serve as signposts that can guide us on the road towards a WTO that works better for people, the planet and prosperity in the 21st century." "The debate on trade and the environment is likely to become even more prominent in the years ahead. One big reason is the COVID-19 pandemic, which has pushed environmental issues up the local, national, regional and global policy agendas," DDG Wolff added. "The current crisis calls for a collective response on trade that fosters sustainability, inclusiveness and resilience." His full speech is available here.

The publication provides easy-to-understand answers to some of the key questions in the trade and environment debate, such as whether restricting trade would help the environment, whether to buy local, and whether governments can subsidize green technologies. The publication underlines that, while more economic activity and transportation can have an impact on the environment, by promoting development, economic efficiency and the dissemination of environmentally friendly goods and services, trade helps countries use resources efficiently and pursue sustainability objectives. It emphasizes that WTO rules do not prevent ambitious environmental action and that governments are widely using trade measures to protect the environment. (WTO)

Key Words: Global Trade, COVID-19, WTO

EU summit focuses on ties with Africa- The second day of EU leaders’ summit on Friday will focus on relations with Africa.“Today, we'll have the opportunity to tackle the international relations, especially our future relationship with Africa. In December, we'll have in Brussels an important meeting with the African Union,” Charles Michel, president of the European Council, said in a doorstep statement. “It will be the occasion to renew our partnership and even our alliance with Africa, this alliance is natural for geographic reason, for historical reasons, for cultural reasons. There is a huge potential, if we take, together with the African leaders, the right decisions,” he added. Leaders will also discuss COVID-19 pandemic, said Michel, adding the “regional cooperation and coordination at the level of the heads of states and the heads of governments” between EU countries will be strengthened. EU leaders gathered in Brussels on Thursday for two days of discussions on a post-Brexit trade agreement, the coronavirus pandemic, ways to tackle climate change, sanctions on Russia and future relations with Africa. (AA)

Key Words: Global Trade, Africa, EU

PAN AFRICA

African Union launches the first edition of the Africa Migration Report in collaboration with IOM– Cognizant that, the bulk of migration almost 80% in Africa is intra-continental, and conscious of the need to better understand and manage the migration phenomenon for the benefit of the continental aspirations articulated in Agenda 2063, the African Union Commission in partnership with the International Organization for Migration (IOM) with the support of the USA and Switzerland launched virtually the first ever edition of the Africa Migration Report. The first edition, therefore, seeks to provide additional perspectives that ensure a more complete understanding of this complex phenomenon, thereby correcting misconceptions regarding African migration. The launch event drew over 200 technical experts, government ministers and representatives of member states, officials from the development sector, development partners, and other interested individuals. In her remarks, H.E. Amira Elfadil Commissioner for Social Affairs thanked IOM on initiating the migration governance in Africa. She also thanked the support from partners. “My sincere gratitude goes to the partners, the USA and Switzerland who continue to demonstrate commitment solidarity and unwavering support. This is illustrative of their involvement in this very project in respect to the Africa Migration Report that we are delighted to launch today. Of course without the authors, who contributed the Chapters, we would not have such a compelling Report”, said Commissioner Amira. She emphasized that the Africa Migration Report comes at a momentous period of change on the African continent. “Migration as a topic has today taken centre stage in policy discourse in Africa as it is much of the rest of the world. The policy posture and trends are epitomized by the adoption of the Migration Policy Framework for Africa in 2018 and evidenced by the adoption of two Global Compacts – on Refugees and for Migration - that seek to deal with human mobility more holistically” The Commissioner said. (AU)

Key Words: Africa, Trade, Business

Innovative research on preferential trade arrangements in Africa reviewed by Experts- The African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) hosted the third 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 (OACPS). The study is the widest in scope, covering all African sub-regions, and providing an overarching framework for the ECA-OACPS project to assess issues related to preference utilization in Africa and identify areas for improvement. The objective was to evaluate the extent to which African businesses are utilizing the trade agreements available to them, with a specific focus on shining light on the challenges African producers face with trading agreements ‘within’ Africa, which is an under-studied area.

This experts group meeting brought together virtually a small group of specially selected experts including academia, the private sector, regional economic communities and international organizations. The objectives of the meeting were to present the main findings and recommendations of the study, discuss feedback and comments from experts and institutions in attendance, and share best practices from those involved in negotiations. David Luke, Coordinator of the African Trade Policy Centre, emphasised that African producers have no shortage of preferential market access: at least 51 countries outside Africa offer preferential trade arrangements with African countries while within Africa Regional Economic Community (REC) arrangements and soon the African Continental Free Trade Area (AfCFTA) offer preferences for producers. He however noted that Africa’s producers face significant challenges in accessing these preferential market access opportunities, as demonstrated by the “half-utilised” generous preferences of the European Union’s (EU) European Banking Authority (EBA) regime. John Stuart, the expert consultant who led the preparation of the study, presented the main findings and recommendations of the study. (UNECA)

Key Words: Africa, Trade, AfCFTA

Hundreds of trucks parked at borders stall African trade pact- Hundreds of trucks have been parked at Benin’s border for more than a year since its eastern neighbor Nigeria abruptly curbed imports. To the west of Benin, officials in Ghana’s capital have shut Nigerian-owned stores to comply with a law that curbs foreign participation in its retail trade. Such actions embody the hurdles that must be overcome if Africa is to fulfill its vision of instituting a continental free-trade agreement. For now, protectionism remains the name of the game for West Africa’s economic powerhouses, whose governments are preoccupied with overcoming the devastation wrought by the coronavirus. “We’ve lost more than 60% of our business in Nigeria because of the border closure,” said Francis Holly Adzah, international business development director of Kasapreko Co., an Accra-based producer of herbal alcoholic drinks. The free-trade deal is “a useless venture. What is the value when one country chooses to defy all the protocols and close its borders for more than a year and nothing happens?” he said. While Nigeria’s decision to close its land borders with Benin, Niger, Chad and Cameroon has weighed on its trade throughout much of the region, it says the measure was necessary to curtail the smuggling of rice that was sabotaging local production and an inflow of illegal weapons. Businesses in Ghana have been among the worst affected, because Nigeria is its biggest regional trading partner. Nigerian traders, who dominate the retail and distribution of goods across much of western and central Africa, have in turn been hard hit by Ghana’s trading restrictions. Under a law passed in 2013, foreigners must invest a minimum of $1 million and employ a specified number of locals to participate in the retail industry -- a measure the government says is necessary to assist struggling local businesses and create jobs. (Engineering News)

Key Words: Africa, Trade, AfCFTA

Business-boosting African Trade Observatory (ATO) to start virtual demonstrations - An online tool designed to help businessmen and businesswomen in Africa understand how best to trade between African countries came a step closer to becoming fully operational in August 2020 as a demonstration version came onstream. The African Trade Observatory (ATO) – a mechanism being implemented by the International Trade Centre (ITC) to help the new African Continental Free Trade Area (AfCFTA) function when it goes live in 2021 – has begun testing the online dashboard to give real-time trade statistics to African users. Such information will include intra-continental trade flows (traded values, traded quantities, the use of tariff preferences, taxes and fees paid at the border), and information on market conditions (such as taxes applicable at the border and regulatory requirements). The transfer of raw data from providers to the ATO team will be automated where possible to make the collection of quantitative information sustainable. The portal will be divided into three modules to allow users to:

· Compare trade opportunities in Africa

· Explore market access conditions of African partners

· Monitor the implementation process and achievements of the AfCFTA and the Boosting Intra African Trade Action Plan. Members of the ATO Steering Committee were presented with a beta version of the Compare and Explore modules on 21 August 2020. These two pillars of the ATO Dashboard have been designed to support micro, small and medium enterprises in Africa to simplify their market research. A first set of live demonstrations were organized in September and highlighted how users can compare challenges and opportunities of the African markets, and explore market access conditions and business partners to expand their business within the continent. The ATO Steering Committee includes representatives of the African Union Commission, the European Union, ITC, the United Nations Economic Commission for Africa (UNECA), and Regional Economic Communities (RECs). (AU)

Key Words: Africa, Trade, AfCFTA

AfCFTA To Commence On January 1 As planned - Mr Wamkele Mene, Secretary General of the African Continental Free Trade Area (AfCFTA), says the continental trade regime will take off as planned on January 1 next year. He said the AfCFTA Secretariat was targeting January 2021 for the commencement of the implementation of the free trade agreement following its postponement due to the outbreak of the COVID-19 pandemic. Mr Mene said this, when he and his team from the AfCFTA Secretariat met the media ahead an engagement with the diplomatic community from Africa Member States based m Accra. He said within 15 years of the implementation of the agreement, 90 per cent of African's trade ought not to pay duty. He inform that within the period, unnecessary barriers to trade and non-tariff barriers must be removed. “We are looking to the agreement mechanisms for the removal of non-tariff barriers to trade on the African Continent,” he said. He expressed gratitude to government and people of Ghana for providing well class resources to enable the Secretariat to advance the objective of an integrated market in Africa. He said it was an indication of Ghana's continuous commitment to Pan Africanism and continuous commitment of taking leadership role to advance the noble objectives of unity and integrated market in Africa. He said COVID-19 had been a delaying factor in the commencement of trading, because out of 55 countries, 42 were either in a full or partial lockdown, barriers were closed and goods were not transiting. The Secretary-General said the AfCFTA was a timely and critical intervention in addressing the COVlD-l9 pandemic, and achieving the social economic transformation of Africa under Agenda 2063 through trade and industrialization. He informed that they had responded to COVID-19 and had provided advice and proposals to Heads of States and Ministers of Trade for the establishment of trade corridors during the period of the pandemic. (Modern Ghana)

Key Words: Africa, Trade, AfCFTA

NORTH AFRICA

AfCFTA: North African Representatives Call for Accelerated Negotiations on E-Commerce – The ECA Office for North Africa held on Wednesday 14 October 2020 a webinar on the African Continental Free Trade Area (AfCFTA) and the mitigation of the COVID-19 Impact on trade strategies in North Africa. The meeting provided representatives of trade ministries, private sector representatives and academics from Algeria, Egypt, Libya, Mauritania, Morocco, Sudan and Tunisia with an opportunity to share their experiences in using national trade strategies to mitigate the impact of the pandemic on populations’ health and access to food, as well as the pandemic’s repercussions on foreign trade. Participants observed that COVID-19 has disrupted supply chains and international trade, triggering a reorganisation of international trade and increased protectionism. “We expected this crisis to impact foreign trade. Between April and May 2020, more than 57 countries across the world took restrictive measures which impacted international trade in medicines and food. However, we did not expect to witness such a decrease in foreign trade within the African continent itself, and especially North Africa where trade between countries is very low and accounting for a mere 3 to 5% of national foreign trade“, said Khaled Hussein, Director a.i. of the ECA Office for North Africa. ECA experts consider that the AfCFTA can help Africa mitigate the impact of the COVID-19 pandemic and speed up its economic recovery, including by helping reduce market fragmentation, facilitating the rise of African value chains and enabling economic diversification. Implementing the AfCFTA would also provide companies - and especially SMEs - which have been hit particularly hard by the pandemic - with an opportunity to access new supply markets and outlets for their products, including online. Participants took note of the delays in the AfCFTA implementation process and stressed the difficulty of having to carry out negotiations remotely. (UNECA)

Key Words: North Africa, Trade, AfCFTA

Morocco amends trade agreement to curtail Turkish imports- The Moroccan government imposed further restrictions on products manufactured in Turkey for a period of five years. It also imposed strict restrictions on Turkish store chains in Morocco, and warned it would close them if they do not comply with measures aimed at promoting Moroccan industry. Under the new measures, customs duties on textiles bearing Turkish seals will increase by 90%. The agreement also stipulates that the Moroccan side will not apply any other duties on imports of Turkish origin, except those covered under articles 18 and 19 of the free trade agreement between the two countries. The Moroccan trade ministry also required Turkish store-chain BIM, which sells Turkish products all over Morocco, to have half of its displayed merchandise be Moroccan-made. It warned that if it does not comply, the 500 stores owned by the chain will be closed. Moroccan Minister of Industry, Trade, Green and Digital Economy Hafid El Alami announced at the beginning of this year that Morocco had a $2 billion annual deficit in commercial relations with Turkey. He said the deficit had prompted Rabat to look for ways to reconfigure commercial relations between the two countries. He acknowledged that his ministry is fighting companies that want to flood the Moroccan market, and that there is a problem in the Moroccan textile sector caused by Turkey. The minister accused Turkey of flooding the Moroccan market with clothing items, suppressing job opportunities for Moroccans. (The Arab Weekly)

Key Words: North Africa, Trade, Turkey

EAST AFRICA

Djibouti Commences Transformation Of Historical Port- Launch Of East Africa’s International Special Business Zone –- The regeneration will see the historical port transformed into a district called the East Africa International Special Business Zone, which will take place in six phases. The first phase is the International Demonstration Area – the core part of the district – and will have a site area of approximately 220, 500 square metres, a total investment of approximately US$513 million and is due to be completed within 5 years. The first phase involves the construction of an exhibition centre, including a centre of excellence for maritime studies, as well as conference rooms, a hotel and apartments. The whole project will ultimately create around 27,000 jobs, directly and indirectly. Speaking at the inaugural ceremony, Chairman Hadi of DPFZA said: “The regeneration of the Historical Port of Djibouti is the natural continuation of Djibouti’s recent developments. This project implements the Port-Park-City concept, which refers to the integration of ports, industrial parks and services. The ports are a key node in the transportation of goods; the international free trade zone brings added value to these goods; and this new business district will facilitate the development of services, particularly in the financial sector.”

Maximising the country’s geostrategic position - The development of an international business district will advance Djibouti’s Vision 2035, the national development strategy to maximise the country’s geostrategic position. This transformation of the historical Port marks the final step in the implementation of the Port-Park-City concept; the full integration of Djibouti’s ports, industrial parks and services sector. (EABW)

Key Words: East Africa, Business, Trade

The Republic of Congo signed the Treaty for the establishment of the African Medicines Agency (AMA) – The Republic of Congo becomes the eighteenth AU member state that have signed the Treaty for the establishment of the African Medicine Agency (AMA) on 15 October 2020, Addis Ababa, Ethiopia. The AMA treaty was adopted by Heads of States and Government during their 32nd Ordinary Session of the Assembly on 11 February 2019 in Addis Ababa, Ethiopia. Member States are able to sign the treaty at the Headquarters of the Commission in Addis Ababa, Ethiopia. The African Medicine Agency, will enter into force once ratified by fifteen African Union member states. Instruments of ratification have been deposited by three member states at the Commission. AMA will serve as the continental regulatory body that will provide regulatory leadership, to ensure that there are harmonized and strengthened regulatory systems, which govern the regulation of medicines and medical products on the African continent. The Agency will regulate the access to safe, effective, good quality and affordable essential medicines and health technologies. AMA will do this through coordination of on-going regulatory systems, strengthening and harmonizing efforts of the AUC, RECs, Regional Health Organizations (RHOs) and member states, providing regulatory guidance. (SocialNews.XYZ))

Key Words: East Africa, Business, Trade

Kenya Economy Shrinks for First Time in 12 Years on Covid-19- Kenya’s economy contracted for the first time in almost 12 years in the second quarter as the impact of the coronavirus pandemic battered key sectors. Gross domestic product fell 5.7%, compared with growth of 4.9% in the three months through March and expansion of 5.3% in the same period a year earlier, the Kenya National Bureau of Statistics said Thursday on its website. The median of six economists’ estimates in a Bloomberg survey was for a contraction of 2.3%. Kenya confirmed its first Covid-19 inflection in mid-March and later imposed a partial shutdown. Key foreign-income earners including tourism and exports, such as tea, flowers, fruits and vegetables bore the brunt of these measures due to lockdowns in key markets and global travel restrictions.

“The poor performance in the quarter was characterized by substantial contractions in accommodation and food services, education, taxes on products, and transportation and storage, which consequently occasioned the significant downturn,” the KNBS said. Africa’s third-biggest economy last had a contraction in the third quarter of 2008, when post election violence caused a drop in output of 1.6%, data from the statistics office show. The second quarter may have been the low point for the Kenyan economy. Leading indicators for the three months through September point to a strong recovery in activity and the central bank sees GDP growth of 3.1% for the year, according to Governor Patrick Njoroge. The International Monetary Fund revised its GDP forecast this month to growth of 1% from an earlier projection of a 0.3% contraction for the year. While the economy appeared to be on a recovery path, it is unlikely it will register growth this year, according to Mark Bohlund, a senior credit research analyst at REDD Intelligence. (Bloomberg)

Key Words: East Africa, Business, Trade

South Sudan abandons plans to introduce new currency – South Sudan said it has reversed its plans to introduce a new currency as the pound continues to depreciate against the U. S. dollar and other major currencies due to the economic crisis. Michael Makuei Lueth, minister of Information and Broadcasting, said the move to change the local currency was only a mere proposal by the economic crisis management committee as a means to salvage the economy from further collapse but was not agreed and passed by the cabinet. “The change of national currency (South Sudanese Pounds) was brought in the discussion of previous cabinet meeting as one of the long-term economic measures, but it was not agreed and passed by the council that time,” Makuei told the reporters in Juba on Wednesday evening. In September, President Salva Kiir established an economic cluster committee to investigate mismanagement of non-oil revenue and also to come up with recommendations to revive the falling economy. Makuei also said the government is in the final process of acquiring a loan that would be injected into the market to stabilize the deteriorating economy. Last month, the central bank said the government had run out of foreign reserves to control the hyperinflation rate in the world’s youngest republic. As of Thursday, 100 U.S. dollars was selling at between 70,000 to 73,000 South Sudanese pounds (SSP) due to the low volume of SSP circulation in the market amid skyrocketing prices of commodities due to speculation. The South Sudan economy has been shattered by several years of civil war and this coupled with the disruptions caused by the COVID-19 pandemic has led to a drastic drop in oil prices, thus dropping the country’s revenues. (CGTN Africa)

Key Words: Trade, Regional Integration, Sudan

WEST AFRICA

Nigeria approves to contribute USD 2 million for 2020 budget of West African Power Pool – The Government of Nigeria has approved its contribution of USD 2 million to the 2020 budget of the West African Power Pool (WAPP), according to a news report by Daily TrustThe Minister of Power, Saleh Mamman has disclosed this to State House after the Federal Executive Council (FEC) chaired by President Muhammadu Buhari at the Presidential Villa, Abuja. WAPP was created by a decision at the 22nd Summit of the Economic Community of West African States (ECOWAS) Authority of Heads of State and Government in 1999. At the 29th Summit of the ECOWAS Authority of Heads of State and Government held in Niamey, in 2006, it adopted the Articles of Agreement for WAPP organization and functions. According to Saleh, participation in the regional market would generate immediate foreign exchange for Nigeria as oil revenue is dwindling. He said: "The pool is about trying to have coordination and synergy among West African countries. This decision has been taken by ECOWAS. It's for the generation of electricity throughout the region so as to have a robust, constant, and steady power supply. It's just like the national grid we have here in Nigeria. Now, we want to have a regional grid. It means in case there is a failure in one country, another can supplement it. The USD 2 million is a contribution." (Devdiscourse)

Key Words: West Africa, Regional Integration, Business

Reopening of land borders! The closure of borders between The Gambia and Senegal has impacted negatively thus amounting to huge economic losses in both countries economies. It was in late March when the two countries closed its borders as part of measures to stem the rise of coronavirus in both countries. This has caused hardship and challenges to many businessmen and even travelers in these countries. The Gambia is getting prepared for the reopening of its borders planned for this Thursday. Many welcome this development as they prepare to continue their daily activities across the two country’s borders. For far too long, Ecowas has been advocating pushing for a borderless region and accelerating socio-economic development in the region. We all know that sustainable development can hardly be attained without regional integration. And that requires collective action by all community members. ECOWAS all this years has been advocating for economic cooperation and regional integration for accelerated development in the region. After almost five months of closure, many Gambians have called on the government to open the land border while enforcing the Health Ministry and WHO guidelines to prevent the spread of Covid-19. Traveling across the two country’s borders is a daily routine for many businessmen and even travelers. When the pandemic strike, this activity has been badly affected and what many have been long anticipating for is when the borders will be reopened. Therefore, reopening of borders is not only a long overdue but a welcome development. For a very long time ECOWAS has been stepping up efforts to create a ‘borderless, peaceful, prosperous and cohesive region’, where people have the capacity to access and harness its enormous resources through the creation of the opportunities for sustainable development and environmental preservation. This will be an elusive dream as our borders remain close. (The Point)

Key Words: West Africa, Regional Integration, AfCFTA

SOUTHERN AFRICA

SB Moyo speaks on Tripartite agreement – Zimbabwe is in the process of coming up with its development strategy within the context of implementing the Tripartite Free Trade Area incorporating the Common Market For Eastern and Southern Africa, the East African Community and the Southern African Development Community, whose trade agreement was signed in June 2015, legislators heard yesterday. Foreign Affairs and International Trade Minister Sibusiso Moyo said implementation of the agreement was on course and Zimbabwe could capitalise on its highly skilled labour to benefit from it. Minister Moyo was moving a motion in the National Assembly to have Parliament ratify the Tripartite agreement signed at Sharm El Sheikh in Egypt on 10 June 2015. “The implementation of the agreement is in progress,” he said. “The secretariat has been put in place and it will be based in Ghana. Zimbabwe has come up with its own development strategy. We have high skills and we have the potential to benefit from the agreement.” Some MPs said Zimbabwe might not benefit meaningfully from the tripartite agreement, given that South Africa, Zimbabwe’s major trading partner, was not a member of Comesa. “South Africa, although is not a member of Comesa, but it is a member of Sadc, so if Sadc ratifies this agreement, South Africa would have entered into the agreement through the back-door,” said Minister Moyo. In his contribution, Norton MP Mr Temba Mliswa said it was time Sadc focused more on economic development than politics. (The Herald)

Key Words: Zimbabwe, Regional Integration, Trade

SA recovery plan to improve economic growth – South Africa’s new Reconstruction and Recovery Plan should help unlock greater job creation and faster economic growth. “The plan contains many practical initiatives which together should improve the underlying investment environment and unlock greater job creation and faster economic growth. Much now depends on how quickly the specific measures proposed in the plan can be implemented,” Nedbank economists said. Some elements of the plan that was unveiled on Thursday, can be implemented “almost immediately – especially the regulatory reform and the energy sector proposals,” said the economists in a research note. “However, the central feature of the plan – the infrastructure drive – will be difficult for government to get off the ground. Even if government managed to overcome its protracted skills and systems constraints in project management, the state will still have to find a solution to the skills exodus and diminished capacity within the construction sector.” Infrastructure is a key element of the plan announced by President Cyril Ramaphosa with the Infrastructure Fund due to provide R100 billion in catalytic finance over the next decade, leveraging as much as R1 trillion in new investment for strategic infrastructure projects. The plan consists of high-impact interventions to kick-start the economy and to lay the foundation for a sustainable recovery. “The plan rests on an infrastructure expansion drive, which will be partially financed by freeing up private savings currently tied up in pension funds. A key ‘enabler’ of the plan is to amend Regulation 28 of the Pension Funds Act to unlock this source of funding for long-term infrastructure projects and to facilitate direct access to pension funds by Development Finance Institutions. This is an economically sound method to unlock faster growth,” said Nedbank. It said that it is also the key recommendation put forward in the International Monetary Fund’s Fiscal Monitor. “An effective public investment drive would reduce South Africa’s long-standing capacity constraints and create considerable employment, which would over the longer term increase the country’s potential growth rate.” (SA News)

Key Words: Trade, Regional Integration, SA

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 19 OCTOBER 2020

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