ATPC DAILY DIGEST 21 OCTOBER 2020

Call for participation in training and research on digital trade regulatory integration in African countries – The United Nations Economic Commission for Africa (ECA), through its African Trade Policy Centre (ATPC), invites researchers who are interested in both building their capacity and contributing to fill the data gaps in the area of digital-trade regulatory in Africa, through learning-by-doing, to submit applications for participation in a training and research programme on “Digital-trade regulatory integration”. This programme builds on the ESCAP-OECD research project on “Digital-trade regulatory integration in Asia-Pacific region”. The objective of the Africa-focused programme of this project is to start building a database on digital-trade regulatory restrictiveness, considering the growing importance of digital trade in Africa, particularly in response to COVID-19 and in the perspective of the 3rd Phase (on e-commerce issues) of the negotiations of the African Continental Free Trade Area (AfCFTA) Agreement and its implementation process.

Successful candidates will be trained to collect and verify data and information on national regulations affecting digital trade environment of respective countries. Following the technical guidelines and close supervisions by international experts, including those from OECD, the candidates will be given an assignment to construct a dataset of national digital-trade regulatory restrictiveness. Each successful applicant will have 4 months to complete the assignment by submitting the national digital-trade regulatory restrictiveness dataset and a 2- to 4-page summary of the country’s regulatory profile, which may be co-published by ECA, ESCAP and the researcher or its affiliated institution, as appropriate. Overall expected time commitment is about 1.5 work month, depending on experience of the researcher. (UNECA)

INTERNATIONAL

How biodiversity-friendly trade can support COVID-19 recovery- At the first‑ever global summit dedicated to biodiversity held virtually on 30 September, various leaders said the COVID-19 pandemic is an opportunity for countries to put bold and ambitious environmental action at the heart of their post‑coronavirus economic recovery strategies. One of the tools at countries’ disposal is BioTrade – the collection, production, transformation and commercialization of goods and services derived from biodiversity under BioTrade Principles and Criteria, a set of guidelines that emphasize environmental, social and economic sustainability. Members of the UNCTAD-led BioTrade Stakeholders Steering Committee have issued a call to action urging countries to tap BioTrade for a better recovery from the pandemic, as the conservation and sustainable use of biodiversity can create jobs and economic growth while protecting the planet. “Linking trade, biodiversity and sustainable development is a compulsory pathway towards more resilience at community, private sector and, ultimately, national levels in post-COVID-19 recovery efforts,” said UNCTAD economic affairs officer Lorena Jaramillo.

BioTrade for recovery and resilience- UNCTAD’s BioTrade Initiative promotes legal, traceable and sustainable trade in biodiversity-based goods and services in line with the objectives of the Convention on Biological Diversity (CBD) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), among others. The BioTrade partners and other actors have called on countries to foster a balanced relationship between post-COVID-19 economic recovery policies and the different dimensions of sustainable development. We urge this to be done through the conservation, restoration and sustainable use of biodiversity and building socioeconomic benefits and livelihoods, particularly in rural communities,” their joint statement reads, in part. According to the signatories, this would contribute to building a better, healthier and sustainable future for all: countries, businesses, communities and people. (UNCTAD)

Key Words: Global Trade, COVID-19, UNCTAD

Oxfam: Rich countries are not delivering on $100bn climate finance promise – Wealthy nations are giving less money to poorer ones for climate projects than their official statistics make out, according to analysis by Oxfam. In a report published on Tuesday, the anti-poverty charity found that nearly 80% of climate finance to developing countries took the form of loans, rather than grants. Poor nations were expected to pay richer countries back, often for investment in projects with weak climate credentials. “The excessive use of loans and the provision of non-concessional finance in the name of climate assistance is an overlooked scandal,” the report said. In 2009, rich countries committed to mobilise $100 billion per year by 2020 to help vulnerable nations cut their emissions and cope with climate impacts. Oxfam analysed the latest climate finance figures from 2017-2018, when developed countries reported delivering $59.5 billion in climate finance, about 33% more than in 2015-2016. In total, rich countries gave just $12.5bn in the form of grants, $22bn in loans with better-than-market rates and around $24bn in loans with standard market rates. Interest charges and payments to creditors were not deducted from donor countries’ climate finance figures. Report co-author Tracy Carty identified Japan and France as having the biggest grant-to-loan imbalance in their climate finance, with just 3% of their overall contributions attached to grants. Both were among donor countries giving out the highest percentage of market-rate loans, respectively 24% and 16% of their contributions. Market-rate loans made up 55% of Spain’s climate finance and 22% of Germany’s. (Climate Home News))

Key Words: Global Trade, COVID-19, Climate

A Leap Forward on Cross-Border Payments - While international cooperation has gotten us this far, it will be all the more important to implement, and potentially even surpass, the G20 roadmap. Specifically, we need cooperation in four broad areas to ensure improvements to cross-border payments are effective, sustainable, safe, and equitable. First, solutions to cross-border payments must be designed and pursued with all countries in mind. Countries differ considerably in implementation capacity, existing infrastructure, and financial sector development. And with different countries come different users. These cover large companies operating in less liquid markets, cost-conscious small- and medium-sized enterprises, and the 1 billion people sending and receiving remittances (which at an average cost of 7 percent are still double the target set by United Nations’ Development Goals). The G20 roadmap is appropriately flexible given this diversity of needs. Some solutions involve improvements to existing systems, such as devising trustworthy digital identities essential for financial inclusion. Others are more exploratory and consider a world in which we can freely trade digital currencies across borders, much like we send emails today. It is essential that all these solutions continue to be pursued, discussed, tested, and some discarded—with an open mind.

Second, cooperation is essential to overcome countries’ “inaction bias,” and ensure solutions are widely applicable. A simple example is the operating hours of countries’ settlement systems: only when two countries extend hours so they overlap can cross-border transactions be settled in real time. No country will want to act alone. Even then, the two systems must talk to each other. But interoperability is not a given. It requires basic technological, design, legal, and regulatory standards. Cooperation will ensure these satisfy the needs of a wide community, which the IMF can help congregate. Third, cooperation is critical to build solutions that benefit from the experience and perspective of all relevant actors—such as central banks, regulators, finance ministries, anti-trust agencies, data protection agencies, and international organizations. The Financial Stability Board report was exemplary in this respect. Moreover, the public and private sectors must cooperate, recognizing each other’s strengths: private companies to innovate and interact with users, and the public sector to regulate, supervise, and ultimately provide trust to the system. Where possible, public-private solutions should be explored. (IMF)

Key Words: Global Trade, COVID-19, IMF

G20 endorses action plan on trade, investment and supply chains to support growth - Finance ministers and central bank governors of the Group of 20 major economies at their meeting in Riyadh, Saudi Arabia, have agreed on an action plan to facilitate international trade, investment and to build resilience of supply chains to support growth, productivity, innovation, job creation and development, even as they committed themselves to specific actions to navigate the present crisis caused by the coronavirus epidemic. They also committed themselves to strengthen international cooperation and frameworks, endorsed at the 15 April 2020 meeting and take steps to support recovery and achieve strong, sustainable, balanced and inclusive growth. A communique issued at the close of the meeting underscored the urgent need to bring the spread of the virus under control, which is key to supporting global economic recovery. The G20 leaders also committed themselves to continue working together to support the poorest countries as they address health, social and economic challenges associated with the Covid-19 pandemic. In this, the G20 noted the role of the Debt Service Suspension Initiative (DSSI), which allows eligible countries to suspend official bilateral debt service payments through end-2020. The International Monetary Fund (IMF) and the World Bank Group (WBG) estimates that together with exceptional financing, the DSSI is significantly facilitating higher pandemic-related spending. “The IMF and WBG have also continued to work on their proposal of a process to strengthen the quality and consistency of debt data and improve debt disclosure, and we look forward to further efforts in this area. (domain-b.com)

Key Words: Global Trade, Investment, G20

PAN AFRICA

African Agency in Mineral Resource Governance – Citizens of resource-rich countries are demanding greater social and economic benefits from their natural resource endowments, and governments have moved to exert increased control of resource rents for national benefit or, in the worst cases, personal enrichment. In Africa, these tensions are exacerbated by the vestiges of colonialism and narratives of exploitation, legacies of prior waves of nationalization – and now the devastating impact of the COVID-19 pandemic on societies and economies across the continent. For international mining companies and investors, ‘African agency’ is often synonymous with state intervention, resource nationalism, and risk amid unquestionable opportunity. Africa accounts for around 30 percent of the world's mineral resources but attracts only around 15 percent of global exploration spend and accounts for only about 8 percent of global production concentrated in a few jurisdictions. To change this perception, and to support a rejuvenation of the industry across the continent, there is an urgent need for open and collaborative dialogue between government and industry that goes beyond revenue management. Only by working together can the government and industry create a well-managed and sustainable resource sector that continues to work as a force for the development of Africa. (Chatham House)

Key Words: Africa, Trade, Business

Continental and Regional Trade Regimes Need Proper Management to Succeed - There is need for proper management of the interface between the continental and the regional free trade regimes to generate a range of win-win outcomes for various stakeholders in Africa’s integration agenda. According to Dr. Stephen Karingi, the Director, Capacity Building Development at the United Nations Economic Commission for Africa (UNECA), the successful implementation of the African Continental Free Trade Area (AfCFTA) will depend, on how smoothly or otherwise, it is interfaced with pre-existing regional economic communities FTAs and related instruments. He was speaking during his keynote address at the opening of the 7th COMESA Annual Research Forum whose theme is “Harnessing Intra-COMESA Trade through the Interface with African Continental Free Trade Area (AfCFTA)”. “One of the main objectives of the AfCFTA is to accelerate regional and continental integration through the consolidation of the multiple and overlapping trading regimes, embodied in pre-existing RECs FTAs, such as the COMESA,” Dr Karingi noted. “However, as law scholars have already argued, some wordings in the AfCFTA Agreement suggest that this relationship is likely to be more complex. And although this is not what was originally imagined, it now needs to be properly analysed and understood.” He cited Articles 5 and 19 of the AfCFTA which are intended to help navigate the complexity of the relationship with pre-existing intra-African trade instruments. Article 5 for example, does not only recognize ‘RECs’ Free Trade Areas as building blocs for the AfCFTA,it also points to the need to leverage their best practices. Further, Dr Karingi noted that some RECs, individually or collectively, have made great strides in some dimensions of integration, way ahead of what is currently envisioned in the AfCFTA with four African Union-recognized RECs having FTAs that have achieved higher levels of integration than the AfCFTA at the time of its entry into force. (COMESA)

Key Words: Africa, Trade, AfCFTA

The Leader the WTO Needs - With the global trading system under severe pressure, international cooperation to strengthen a rules-based order is vital. Now, perhaps more than ever, we need a World Trade Organization that supports economic recovery, defends multilateralism, rebuilds trust, and rises to the twenty-first-century challenges posed by poverty, inequality, climate change, and – more immediately – the COVID-19 pandemic. We write as representatives of non-government organizations, philanthropists, and business leaders united in our conviction that Ngozi Okonjo-Iweala is uniquely well placed to lead the WTO into a critical new era. It is all too easy to lose sight of why trade matters to ordinary people around the world. Aid plays a critical role in advancing human development. But it is through trade and markets, from local to global, that people work their way out of poverty and countries create jobs, build prosperity, and seize business opportunities. In our interdependent world, an open multilateral trading system overseen by the WTO can benefit all countries. For the world’s poorest countries, trade offers a route to higher value-added production. Managed effectively, and linked to strategies for inclusive growth, international trade can help realize the ambition of the Sustainable Development Goals (SDGs) to eradicate poverty and build shared prosperity. With the world teetering on the brink of historic reversals of hard-won progress on reducing extreme poverty and malnutrition, combating child mortality, and extending educational opportunity, we need a trading system that works for the poor. Okonjo-Iweala is well placed to work with governments to build that system. The hallmark of her career has been an unwavering commitment to poverty reduction, marginalized people, and gender equity. Under her leadership, the WTO would be a force driving progress toward the SDGs. (Project Syndicate)

Key Words: Africa, Trade, WTO

Working Together to Write a New Chapter of the Forum on China-Africa Cooperation in the New Era - China and Africa are good friends and partners sharing the same future and aspirations. In a world undergoing profound changes unseen in a century, we should enhance cooperation more than ever. China will follow through with the import message in the joint congratulatory note of President Xi Jinping and the leader of the African co-chair. Taking the opportunity of the 20th anniversary of FOCAC, we will work with Africa to plan for the future of this mechanism and advance cooperation in economy, trade, and pandemic response, so as to enrich China-Africa comprehensive strategic partnership and build a closer community with a shared future between China and Africa.

We will build the forum into a better cooperation platform that guides China-Africa cooperation. China will adhere to the principle of pursuing shared benefits through consultation and collaboration, and fully tap the enthusiasm, initiative and creativity of the 54 African members of the forum. In response to the evolving situation, we will explore new approaches and ways to develop the forum, constantly enrich and improve its mechanisms, and enhance its power to appeal, rally and inspire. We will give better play to the forum’s role in in planning for, steering and promoting China-Africa practical cooperation in order to inject lasting impetus into the development of China-Africa friendly relations, provide solid guarantee for enhancing China-Africa political mutual trust, and lend emotional support to consolidating China-Africa traditional friendship. (mofcom.gov.cn)

Key Words: Africa, Trade, China

Akufo-Addo opens second AfCFTA Conference today - President Akufo-Addo will open the second edition of the national conference on the implementation of the African Continental Free Trade Area (AfCFTA) Agreement in Accra, today. The two-day conference is on the theme: “Empowering Ghanaian Businesses to Harness the Benefits of the African Continental Free Trade Agreement under the framework of the National Export Development Strategy (NEDS).” The event will bring together relevant stakeholders from the private and public sectors to discuss government’s export development interventions aimed at empowering the private sector to harness the benefits of the AfCFTA. A statement issued by the Ministry of Information in Accra said President Akufo-Addo would use the opportunity to articulate Government’s commitment to the AfCFTA and the empowerment of the private sector to boost Ghana’s trade with continental Africa, with trading scheduled to start on January 1, 2020. Participants expected to attend the conference include; Chief Executive Officers from the Business Community, Senior Policy Makers, Parliamentarians, academia, representatives of civil society organizations, development partners and the media. The first national AfCFTA conference was organized by the Government of Ghana in August 2019. (My Joy Online)

Key Words: Africa, Trade, AfCFTA

NORTH AFRICA

MENA: Trade and Regional Integration are Critical to Economic Recovery in the Post-Covid Era – Trade and integration — within the Middle East and North Africa (MENA) region and with the rest of the world — will be critical to lowering poverty, empowering the poor, and igniting economic growth in the post-COVID era, according to the World Bank’s latest regional economic update. The report, titled Trading Together: Reviving Middle East and North Africa Regional Integration in the Post-Covid Era, paints a comprehensive picture of MENA’s economic situation six months into the COVID-19 pandemic. It examines the lasting effects of the dual economic shocks from the spread of the coronavirus and the collapse in oil prices, and it recommends policy changes and reforms to build a new integration framework across the region.

"The MENA region was already lagging behind economically before the COVID-19 pandemic struck. Six months into it, we can see — with stark clarity — the severity of the devastation on lives, livelihoods, and region-wide prosperity," Ferid Belhaj, World Bank Vice President for the Middle East and North Africa, said. "We are continuing to help MENA countries stop the spread of the disease and protect and care for their people. We will keep insisting on the need for MENA countries to give the highest priority to transparency, governance, the rule of law and market contestability, and to instill trust, promote the private sector, and build a new framework for the sustained regional economic integration that will make trade a powerful tool to alleviate poverty and expand access to opportunities for all." (World Bank)

Key Words: North Africa, Trade, World Bank

EAST AFRICA

Sudanese-Ethiopian border reopens for trade –- Three border crossings between Sudan’s Blue Nile state and Ethiopia were officially re-opened on Friday, marking the resumption of trade exchange and border relations between the two countries. Sources from Ed Damazin, capital of Blue Nile state, told Radio Dabanga that the opening was attended by representatives of the Sudanese and Ethiopian authorities.The sources clarified that Blue Nile state now has three official crossings with neighbouring Ethiopia, in addition to other unofficial ones. The crossings are of great importance to the people of the two countries, especially in the field of trade. Sugar, cooking oil, coffee, soap, and perfumes from Ethiopia are sold at markets in Blue Nile state’s Geisan. In 2018, 2.5% of Sudan's exports went to Ethiopia. The Wali (Governor) of Blue Nile state, Abdelrahman Noureldayem, stated that there are security measures in place for the resumption of cross-border trade. Import tax across the state’s border will also be cancelled. In eastern Sudan’s El Gedaref, the National Border Commission office was opened yesterday. This office will take on tasks and responsibilities from the Khartoum office, in order to “actively participate in the planning and development of border areas.” Abulgasem Abdallah, Director of Sudan’s State Border Development Department, said that the Commission’s proximity to the government of El Gedaref will “enable it to quickly and properly handle border issues” and “to coordinate with the Transitional Government in Khartoum in order to develop and implement a radical solution to the Sudanese-Ethiopian border problems”. (Dabanga Sudan)

Key Words: East Africa, Business, Trade

Rwanda ratifies continental aviation constitution, eyes bite of tourismcherry – In an interview with The New Times, the Rwanda Civil Aviation Management (RCAA), said ratification allows a State to realise the benefits that are in the legal instrument, because without ratification, the duties and responsibilities are not assumed. Among the benefits, RCAA said, Rwanda expects a boost in tourism revenues and jobs. “Tourists benefit from enhanced air connectivity because of savings on air fares, more direct routes and frequencies,” the management explained. This, he added, will ultimately lead to air travel convenience and shorter flight time. RCAA also noted that the revised AFCAC constitution considers as important the Yamoussoukro Decision (YD) for liberalisation of air transport in Africa.“The major element in the new constitution is that it empowers AFCAC as an Executing Agency of the YD to follow up on the implementation of the policy of air transport liberalization in Africa.” This, the organisation explained, “Once the policy of Africa’s air transport liberalization policy is enshrined in such a high level continental legal instrument, the liberalization concept is expected to be supported by member states.” The YD is an agreement among the 44 African states which allows the multilateral exchange of up to fifth freedom air traffic rights between African Yamoussoukro Decision Party States using a simple notification procedure. (The New Times)

Key Words: East Africa, Business, Trade

Burundi Investment 1st quarter achievements and Covid-19 impact on foreign trade - Last week, the Burundi Investment Promotion Agency (API in the French acronym) presented the achievements of the 1st quarter of fiscal year 2020/2021. The agency announced that among achievements, 15 certificates of eligibility for the benefits of the Investment Code were granted against 10 certificates granted during the last quarter of 2019/2020. These fifteen certificates correspond to a forecast capital of 710,756,647,229 FBU with a projection of 2,078 jobs. These certificates are granted as part of the monitoring of the destination of exempt goods. 24 temporary certificates of compliance with commitments under the Investment Code were issued in the same period. It was highlighted that 196,506,555,546 BIF has been invested compared to the forecast amount of 153,534,582,436 BIF, or nearly 128%. During the previous quarter, the API facilitated the registration of 1,296 companies and 500 individuals. Out of 1,459 jobs planned, 1,317 jobs have already been created. The Burundi Investment Promotion Agency (API) was created in 2008. Among its agenda: to stimulate investment through the Investment Code which grants privileged customs and tax regimes to local or foreign economic actors who want to get into “priority sectors of the country”. Up to 2018, data shows that 375 companies have benefited from the benefits of the Investment Code in exchange for substantial investments (over 1.5 billion BIF) and decent jobs (nearly 20,000). (Region Week)

Key Words: East Africa, Business, Trade

New currency notes gets 1 million Ethiopians into banking system – Ethiopia’s effort to stamp out counterfeiting by introducing new currency notes is pulling people who’ve never had a bank account into the financial system. Over the past four weeks, almost 1 million previously unbanked Ethiopians have handed in their two-decade-old banknotes, according to the central bank. In exchange, they were given a bank account from which they can draw the new notes. The regulator is trying to deter cash hoarding that enables corruption and illegal trading to thrive, and escapes the tax net. The rush of applications forced the nation’s biggest commercial lender to assign more tellers to only handle money changing at its main branch next to its headquarters in the capital, Addis Ababa. The Commercial Bank of Ethiopia branch gained at least 1,000 customers in the past month, while many others deposited cash in accounts that had been dormant. “On the first day of the new currency notes, you wouldn’t believe what happened here -- everybody came,” said Nebyou Birhanu, who heads digital services at CBE. “The money is coming into the bank.” Only 35% of Ethiopian adults held a bank account in 2017, lagging peers such as neighboring Kenya, where the ratio is 82%, according to the World Bank. The Horn of Africa nation of 100 million people is following a process that flopped in India. There steps in 2016 to ban high-denomination currency notes to try weed out cash gained through illegal means backfired as economic growth slowed and millions of daily wage earners lost their livelihoods. While Kenya’s demonetization process that started last year went smoothly, the equivalent of about $68 million was not returned, according to the central bank. South Sudan is also contemplating demonetization to curb illicit financial flows. (IOL)

Key Words: Trade, Regional Integration, Ethiopia

WEST AFRICA

Bissau Customs DG meets Gambian counterpart – As part of efforts to strengthen ties and promote trade between Guinea Bissau and The Gambia, Mr. Dominico Sanea, the director general of the Bissau Guniean Customs on Friday, 16 October 2020 paid a visit to the commissioner general of The Gambia Revenue Authority (GRA). Mr. Sanea was accompanied by his technical advisor, Amadou Diop. The visit was facilitated by Bakutobo Sillah, a business executive with one Abdou Jeng of the Jiboroh Customs Post. In his welcoming remarks, CG Darboe expressed profound appreciation for the visit which he said would go a long way in cementing ties and strengthening trade facilitation between the two countries. This is critical given the huge volume of trade that takes place between Banjul and Bissau. “Today’s meeting being the first of its kind between the two administrations is a welcome development in the context of regional integration and addressing challenges in the free movement of people and goods,” he said. The visit was interspersed with a presentation by Yahya Manneh, director of Technical Services on the GRA model. The presentation delved into the history, structure strategic focus and mandate of the GRA. Unlike the Bissau experience, the GRA is a combination of Customs and Domestic Taxes as operational departments and six other support departments. According to the presentation, GRA collection accounts for 60% of government revenue, which is a fundamental pillar in building a modern country. (The Point)

Key Words: West Africa, Regional Integration, Business

NACCIMA Pledges Support for FG’s Economic Stabilisation Measures - The Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) has pledged to partner with the federal government in the ongoing effort to reposition the economy for greater performance. The association said it will participate in the arrangements for the implementation of the economic programmes under the Economic Sustainable Plan (ESP) announced by the federal government to kick-start the economy after the ravaging effect of Covid-19 pandemic, while also working to ensure that Nigeria maximises benefits derivable from the African Continental Free Trade Area (AfCFTA) agreement. These were part of the declaration made by National President of the association, Saratu Aliyu, at a media briefing organised as part of the ceremony to mark the association’s 60th anniversary, to hold in Port Harcourt, Rivers State in November. Aliyu said NACCIMA was instrumental to the ESP instituted by the government for the organised businesses, adding that the association stood as guarantor to its members who benefited from the programme. According to her, the initial stimulus package has since been followed by the Economic Sustainability Plan (ESP) of N2.3trillion. “We have taken due note of the various programmes and projects under the Economic Sustainability Plan and various Stimulus Packages recently unveiled. This includes the N50 billion survival fund for Micro, Small, and Medium Enterprise (MSME) and the N15 billion Guaranteed Uptake Scheme to save 500,000 jobs. (This Day)

Key Words: West Africa, Regional Integration, AfCFTA

SOUTHERN AFRICA

SA could become top exporter of green hydrogen to the world – South Africa could become an effective exporter of cost-effective green hydrogen to the world, given its immense renewable energy potential, according to the inaugural PwC report on hydrogen published yesterday. The report titled ‘Unlocking South Africa’s hydrogen potential’ said that South Africa had one of the highest renewable energy generation potentials in the world citing the billions of rand committed to solar, wind and pumped storage projects across the country. The reported said the Integrated Resource Plan-the blueprint for South Africa's energy mix, which was gazetted last year, made clear guidance for renewables to account for a bigger proportion of the country’s generation capacity. "With so much effort being committed to these renewable initiatives, a clear opportunity exists for South Africa to a couple of renewable generation with hydrogen production through electrolysis. The added benefit of this was that an investment in electrolysis technology would also support the platinum sector and downstream beneficiation, as platinum is the primary component in the electrode assembly," said the report. Pwc experts said that the infrastructure needed to export hydrogen was similar to existing natural gas networks and was already being piloted in Australia and Japan. The report said there would also be significant secondary benefits to increasing South Africa’s commitment to renewable energy and that the need to construct so much renewable capacity would make it increasingly viable to manufacture a number of the components domestically. "South Africa could leverage its existing port infrastructure to support this initiative and, in doing so, protect the jobs and infrastructure that are declining as a result of the drop in global demand for coal exports," said the report. (IOL)

Key Words: Trade, Regional Integration, SA

First merchandise trade surplus in 13 years – NAMIBIA recorded a merchandise trade surplus for the first time in 13 years, thanks to a reduction in imports and an increase in the export of raw minerals. Bank of Namibia that monitors the country's balance of payments noted in its latest Quarterly Bulletin (September 2020) that Namibia recorded a surplus of N$918 million in its merchandise trade account for the second quarter. “Namibia registered a merchandise trade surplus during the second quarter of 2020, the first since the third quarter of 2007, due to a decline in import payments and increased export earnings,” said the central bank. This means for the months of April, May and June (2020), the country did not import a lot of foreign goods, and at the same time, it exported more raw minerals and fish. During the three months, the country imported goods worth N$13,1 billion, and exported N$14 billion worth of goods (mostly minerals including polished diamonds, frozen fish and livestock on the hoof). The N$918 million is an improvement on the first three months of 2020 when the country recorded a trade deficit of N$5,9 billion. The reduction in exports for the three months was driven by the domestic and global lockdown that reduced business operations and individual earnings. A notable reduction in the second quarter was the country's expenditure on consumer goods that fell by more than N$1,0 billion from the first quarter of 2020. Although the trade surplus took about 13 years to achieve, it is significant, given that the merchandise trade account has been fuelling the country's current account deficit due to its high consumer goods imports. (Namibian)

Key Words: Trade, Regional Integration, SA

Centre africain pour la politique commerciale

ATPC DAILY DIGEST 21 OCTOBER 2020

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