INTERNATIONAL

Report shows trade restrictions by WTO members at historically high levels – The Director-General’s annual overview of trade-related developments discussed on 12 December at a meeting of the Trade Policy Review Body shows that trade restrictions by WTO members continue at historically high levels. Between mid-October 2018 and mid-October 2019, the trade coverage of import-restrictive measures implemented by members was estimated at USD 747 billion. This is the highest trade coverage recorded since October 2012 and represents an increase of 27% compared to the figure recorded in the previous annual overview (USD 588 billion). The report notes that new trade restrictions and increasing trade tensions added to the uncertainty surrounding international trade and the world economy. In presenting the report to members, Director-General Roberto Azevêdo said: "The report's findings should be of serious concern for WTO members and the broader international community. Historically high levels of trade-restrictive measures are hurting growth, job creation and purchasing power around the world. Strong collective leadership from the membership would make an important contribution to increasing certainty, encouraging investment and bolstering trade and economic growth. Without such action, however, unfavourable trends could become worse." The report shows that 102 new trade-restrictive measures were put in place by members during the review period, including tariff increases, quantitative restrictions, stricter customs procedures, and imposition of import taxes and export duties. The main sectors targeted by the new import restrictions were mineral and fuel oils (17.7%), machinery and mechanical appliances (13%), electrical machinery and parts thereof (11.7%) and precious metals (6%). (WTO)

Key Words: WTO, Trade, Business

Working Party of the Trade Committee - Services exported together with goods - Services exported together with goods With the shift towards services of manufacturing firms, the lines between exports of goods and services are blurring. Not only do manufacturing firms rely on services inputs to create value and to organise their activities in global value chains, they also produce and sell services together with goods, a phenomenon described as the servitisation of manufacturing. Companies tend to add value by providing services and aim at offering integrated solutions to their customers. This trend has important implications for trade policy-making as the trade regime for goods and services is not the same. This report contributes to a better understanding of the way firms combine goods and services in their exports by assessing the prevalence of services sold together with goods, using aggregate and micro-data. This information is used to provide a mapping of the manufacturing industries that produce bundles of goods and services with the relevant GATS sectors. This tool can help policymakers assessing interactions between the trade regime for goods and services and can be used to identify where some joint market access is needed. The report then looks at some of the policy implications and barriers faced by services bundled with goods. When exporting companies no longer provide a simple good but add services, there is both the export of a good and a service. The servitisation leads to situations where barriers to trade in goods affect exports of services and barriers to trade in services affect exports of goods. (OECD)

Key Words: OECD, Trade, Manufacturing

After Challenging Year, Improvement Expected for 2020 –The International Air Transport Association (IATA) forecast that the global airline industry will produce a net profit of $29.3 billion in 2020, improved over a net profit of $25.9 billion expected in 2019 (revised downward from a $28 billion forecast in June). If achieved, 2020 will mark the industry's 11th consecutive year in the black. Economic performance in 2019 was weaker than had been anticipated at the time of the June forecast. This aligns with weaker global GDP growth of 2.5% (versus 2.7% forecast in June) and world trade growth of just 0.9% (down from 2.5% forecast in June). These negative developments contributed to softer passenger and cargo demand and corresponding weaker revenue growth, as passenger yields fell 3.0% and cargo yields dropped 5.0% compared to 2018.  Operating expenses did not rise as much as anticipated (3.8% vs. 7.4% June forecast) largely owing to lower-than-expected fuel costs; but this was not enough to offset the softness in revenue.   "Slowing economic growth, trade wars, geopolitical tensions and social unrest, plus continuing uncertainty over Brexit all came together to create a tougher than anticipated business environment for airlines. Yet the industry managed to achieve a decade in the black, as restructuring and cost-cutting continued to pay dividends. It appears that 2019 will be the bottom of the current economic cycle and the forecast for 2020 is somewhat brighter. The big question for 2020 is how capacity will develop, particularly when, as expected,  the grounded 737 MAX aircraft return to service and delayed deliveries arrive," said Alexandre de Juniac, IATA's Director General and CEO. "(IATA)

Key Words: IATA, Investment, Global Business

Netflix-inspired tools can reap rewards for farmers, says Nobel winner – What does online streaming giant Netflix have in common with smallholder farmers? Both can benefit from sharing data, according to one of this year's Nobel prize winners. Much as entertainment service Netflix bases recommendations on what viewers have watched, mobile phone-based tools could be used to mine information from some of the world's poorest farmers in return for customised advice. The growth in mobile phone use means such crowdsourced information could be easily distributed, helping small farmers improve yields, said Michael Kremer, co-winner of the 2019 Nobel in economic sciences. "Some of the real gains from this will come from customisation," the Harvard professor told the Thomson Reuters Foundation by phone from Stockholm where he picked up his award this week. "If you can customise information so farmers are getting information on the weather for their particular local area, for the crops they grow, if there's an outbreak of a pest ... you can start to see some of the potential." A rush of innovation aimed at helping the smallholder farmers who provide most of the world's food has seen the development of a range of phone-based agricultural advice tools by governments, companies, and non-profit organisations. Farmers who use the services see their yields raise by an average of about 4% - and technology developments will make them even more effective, predicted Kremer and two co-authors in a research paper published in the journal Science on Thursday. The services could also offer a chance to gather information for far-flung and disparate smallholders which highlight shared issues or opportunities, they said, and allow the tools' creators to hone their advice in response. Farmers could be incentivised by the offer of advice tailored to the information they send, said the paper. (Thomas Reuters Foundation)

Key Words: Global Economic Growth, Development, Business

PAN AFRICAN

Chubb takes stake in ATI to boost African trade - Global insurer Chubb has made a US$10mn equity investment in the African Trade Insurance Agency (ATI), becoming the first global property and casualty insurer to invest in the multilateral political risk and credit insurance agency. ATI supports trade and investment in African member state nations by offering complete risk solutions, including credit insurance and political risk products. It currently has 16 African nations and 10 institutional members as shareholders, and claims to support trade and investment in the countries it represents equivalent to between 1 and 2% of their GDP. Commenting on the deal, chairman and CEO of Chubb, Evan Greenberg, says: “Insurers play a crucial role in helping to drive growth and infrastructure improvements in the developing world.” “With Chubb’s longstanding expertise in political risk and credit underwriting, we see our investment in ATI further advancing their important mission to promote investment, trade and economic growth throughout Africa,” he adds. Chubb operates in 54 countries and territories around the world, and underwrites political risk insurance and reinsurance through its two business fronts, Sovereign Risk and Chubb Global Markets. John Lentaigne, ATI’s acting CEO, comments on the investment: “We are delighted to welcome Chubb as one of our shareholders. Chubb’s global reach, financial strength, and expertise in this field positions them as a strategic shareholder for ATI as we look to build institutional resilience and broaden our global networks. We look forward to Chubb’s future involvement in further promoting ATI’s development mandate across the African continent.”(GTR)

Key Words: GTR, African Trade, Regional Integration

Visa, MFS Africa Team To Take Mobile Wallets Cross-Border - Since the rise of M-Pesa in 2007, mobile money wallets have become prevalent across Africa. And while that addition to the market has made many things possible for consumers in formerly cash-locked economies, there has been a persistent problem of limitations for users once they want to transact outside their home environment.  Because their mobile money wallets lack a virtual or physical network credential associated with them, in general they can not work with international use cases. But that might be changing, as today (Dec. 11) Visa has announced a partnership with pan-African FinTech leader MFS Africa that is designed for bridging the gap between the rapidly growing mobile money ecosystem in Africa and the world of online digital payments by distributing Visa payment credentials via the MFS Africa digital payments hub. That hub connects around 180 million mobile wallets across the continent, and going forward, the new partnership between the entities will allow mobile wallet users on the platform to generate an instant Visa virtual card with a 16-digit number and link it to their mobile money accounts to use for remittances and eCommerce transactions.“In the past few years, we have been relentlessly focused on creating new digital pathways between mobile money users in Africa. Having reached significant scale, we are now turning our focus to connecting our network to the wider world, to unleash the wealth of opportunity that trade with Africa presents to the global economy,” said Dare Okoudjou, founder and CEO of MFS Africa. “We have found in Visa an invaluable partner to support us in the next stage of our expansion. The reach of the Visa network is unparalleled, and we look forward to working with Visa to realize our vision of a world in which no one is limited in what they can achieve when it comes to payments.”(PYMNTS.COM)

Key Words: Pan African, Regional Integration, Cross Border Trade

African Permanent Representatives focus on climate change and AfCFTA in retreat with ECA – The second annual retreat of the African Permanent Representatives and the Economic Commission for Africa (ECA) ended in Mahe, Seychelles, late Tuesday following two days of intense dialogue on key development priorities that can lead to accelerated development in Africa. Debate on climate change took centre stage as Ambassadors and ECA experts discussed how the continent, in particular small island developing States (SIDS), can leverage new technologies and research to mitigate the impact and vulnerabilities they face due to their remoteness, frontline exposure and levels of development. Africa has six SIDS namely Cabo Verde, the Comoros, Guinea-Bissau, Mauritius, Sao Tome and Principe, and Seychelles, all highly dependent on the coastal and marine sectors. Whilst their economies are faced with exacerbating climate threats, significant potential also exists to develop through the Blue Economy. The retreat, which brought together representatives from 44 member States, discussed a number of important topics including appropriate response to climate issues, the next phase on the implementation of the African Continental Free Trade Area (AfCTA), how to stem illicit financial flows (IFFs) and the accelerated actions needed if Africa is to deliver the sustainable development goals by 2030. All this as COP 25 is coming to an end in Madrid, Spain, where the international community is gathered to define concrete actions to use in facing the impact of climate change on peace, security and development. (UNECA)

Key Words: UNECA, AfCFTA, Regional Integration

Driving industrialisation in African, Caribbean and Pacific Countries – Tony O Elumelu, founder of the Tony Elumelu Foundation and Chairman, Heirs Holdings and United Bank for Africa Group, urged African, Caribbean and Pacific (ACP) heads of state to improve the business environment in their countries to drive industrialisation and wealth creation in ACP member states.  He said this while presenting the keynote speech on the theme “Industrialisation and Private Sector Engagement for Economic Transformation of ACP States” at the Presidential Dialogue of the 9th ACP Business Summit in Nairobi, Kenya. Elumelu stated that industrialisation will not be achieved without support for small and medium scale enterprises (SMEs) and improved access to electricity. “We cannot hope to industrialise if we do not fix the issue of power if our entrepreneurs spend so much of their resources to power their businesses, how then are they expected to make the investments necessary to upgrade and industrialise? If we do not tackle these pertinent issues, we will be unable to achieve industrialisation, wealth creation and poverty reduction,” he said. He highlighted infrastructure development as another critical area needed to achieve sustainable development, highlighting the major role the United Bank for Africa Group plays in achieving this. “UBA is a force for development in Africa through infrastructure investment and leading the way in cross border payments and services, with the objective of encouraging trade across the continent,” he added. While citing the impact of the flagship Entrepreneurship Programme of the Tony Elumelu Foundation, Elumelu highlighted that the critical role partnership between the private and public sectors, as well as developmental organisations, play in achieving industrialisation. The Tony Elumelu Foundation, private-sector-led philanthropy, is on a mission to catalyse the economic transformation of the continent by empowering young African entrepreneurs – more than 7,500 beneficiaries across 54 African countries thus far – through its Entrepreneurship Programme. (The African Review)

Key Words: Africa, Industrialisation, Regional Integration

COP 25: ‘Africa’s future depends on solidarity’ Leaders and development partners rally around climate change goals – There was standing room only as ministers, diplomats, activists and journalists gathered at the IFEMA conference centre in Madrid to mark Africa Day at the COP 25 climate meeting. Speakers called for a united front to tackle the challenges of climate change in Africa. In the opening statement for Africa Day on Tuesday, Yasmin Fouad, Egypt’s Minister of Environmental Affairs, on behalf of the African Union, said: “We have, and will continue to engage and to seek landing grounds on the outstanding issues. But we must flag our concern at the apparent reluctance by our interlocutors to engage on issues of priority to developing countries, as evidenced by the large number of such issues which have simply been pushed from session to session without any progress.” Africa contributes the least to global warming emissions yet is the continent most vulnerable to climate change, as witnessed by devastating natural disasters recently. Africa Day has been held at the conference every year since COP 17 in 2011 to rally support for the continent’s cause. “The climate disaster issues confronting the continent demand a predictable and unified response,” said UN ASG Mohamed Beavogui, Director General of African Risk Capacity, an agency of the African Union that helps governments respond to natural disasters. “Africa needs to move towards market-based innovative financing models to achieve a strong, united, resilient and globally influential continent. The future of Africa depends on solidarity.” Vera Songwe, Executive Secretary of the UN Economic Commission for Africa (ECA), said the ECA would support African countries to revise their Nationally Determined Contributions (NDCs) to attract private sector investments in clean energy. (UNECA)

Key Words: UNECA, Development, Regional Integration

African Development Bank and African Union to roll-out a continent-wide electricity market Masterplan – The African Development Bank and the African Union Development Agency (AUDA-NEPAD) have agreed to jointly develop a blueprint for a pan-continental electricity network and market. The agreement to set up a Continental Power System Master Plan between the Bank and AUDA-NEPAD was unveiled, on November 29th, during a three-day workshop on the sidelines of Programme for Infrastructure Development (PIDA) Week held in Cairo. The workshop also produced the Masterplan’s terms of reference. “The Continental Power System Master Plan will ensure that competitive electricity markets are developed at regional and continental levels, creating unique opportunities to optimally utilize Africa’s vast energy resources for the benefit of Africa,” said Professor Mosad Elmissiry, a Senior Energy Advisor to AUDA-NEPAD’s CEO. The workshop was aimed at advancing the launch of an Integrated Continental Transmission Network (ICTN) to link national power utilities into regional power pools and, ultimately, into a continent-wide transmission network. Plans also include setting up a market for electricity trading. The Masterplan also will inform the energy component of a PIDA Action Plan, which focuses on key regional integration projects. Development of a unified electricity transmission network and market for electricity trading are viewed as a critical priority to improve the lives of people across the continent. “Most state-owned electric utilities in Africa today are unable to secure the financial resources needed to implement required segments of regional interconnectors and associated national feeder lines,” said Angela Nalikka, the Bank’s manager for National and Regional Power Systems, to explain the impetus for the partnership. (AfDB)

Key Words: AfDB, AU, Regional Integration

NORTH AFRICA

Central Bank of Egypt launches export credit risk company – The Central Bank of Egypt (CBE) has signed off on a new US$600mn export credit risk company in a bid to bolster Egypt’s intra-Africa trade links. The new company, which will be based out of Cairo, will seek to help Egyptian companies win contracts for major projects with African governments, which the African Export-Import Bank (Afreximbank) claims are worth US$60bn annually. CBE expects the company to get started before the end of the year, although says it is still in the process of hiring a CEO and hasn’t yet appointed a board of directors. Explaining the reasons behind the company to GTR, Ramy El-Shaarawy, CBE’s general department head for banking reform, says: “The reason why we started it is to boost exports, of course, especially to Africa, because when you look at the percentage of trade between Egypt and other African countries, we found it to be around 2% of the total exports.” According to CBE’s latest annual report, Egypt’s largest trading partner is the EU, where its volume of trade for 2017-18 came in at US$25bn. The volume of trade with non-Arab African countries by contrast was US$1.4bn. Afreximbank’s president Benedict Oramah says in a statement that the new company will make it easier for Egypt to trade with the rest of Africa, with Afreximbank promising to help it by sharing risks and funding projects where necessary. El-Sharaawy confirms that Afreximbank will back the company, saying: “They’re helping us out in the setup process. And since it will not be that easy to operate from day one alone, we will probably keep them as consultants, walking us hand in hand until we acquire some experience.” (GTR)

Key Words: North Africa, Business, Trade

US and Egypt Launch Centre of Excellence for energy – The Centre of Excellence for Energy at Ain Shams University opened for business, with support from the United States Agency for International Development (USAID) and in close cooperation with the Ministry of Higher Education and the Massachusetts Institute of Technology (MIT).  The establishment of this new centre is part of the long-standing commitment by the United States to support Egypt’s most important priorities, including producing high-quality applied research in energy, delivering world-class training in engineering, and driving innovation in Egypt’s energy sector, while meeting local challenges and contributing to economic growth. The Centre of Excellence for Energy will create scholarship opportunities for students to pursue studies in energy-related fields both in Egypt and the USA and will develop new courses and degree programs in the energy field to address challenges identified by private sector partners. This new centre is part of a five-year, US$90mn USAID initiative that includes a Centre of Excellence for Agriculture hosted at Cairo University in partnership with Cornell University and a Centre of Excellence for Water hosted at Alexandria University in partnership with the American University in Cairo. The three centres focus on areas identified as priorities by the Government of Egypt’s 2030 Vision and will drive research and innovation in sectors that are key to Egypt’s future economic growth. (The African Review)

Key Words: North Africa, Business, Trade

EAST AFRICA

Tanzania and Rwanda in push to reshape East African logistics - Rwanda and Tanzania individually signed two mega-infrastructure deals in the last week in moves that will undoubtedly reshape the East African region politically and economically. Kenya stands to lose most. Tanzania signed an agreement to link its new railway line to Burundi and the DRC, while a similar deal with Rwanda is said to be in its final stages. The transport ministers of the three countries signed the deal in Kigoma, Tanzania, on 3 December. The first phase of the joint deal will start in Kigoma and end in Gitega, the capital of Burundi, 240km away. It will then be extended into eastern DRC. Each country will have to get funding for its own section, Tanzania’s transport minister, Isack Kamwelwe, said at the signing ceremony. The first phase of Tanzania’s Standard Gauge Railway (SRG), covering 202km from Dar es Salaam to Morogoro, is almost complete. The second phase will connect Morogoro to the administrative capital of Dodoma, even as the East African country also revamps its old metre-gauge railway to enhance connectivity. When complete, the new railway line will cover 1,457km, connecting Dar and the Lake Victoria port city of Mwanza. In May 2018, Rwanda and Tanzania agreed to redesign their joint railway plan, which will start at the Isaka dry port and end in Kigali, to use electric powered trains. In late November, Tanzania’s President John Magufuli said that the two countries are in the final phases of negotiating a deal to build the railway line. (The Africa Report)

Key Words: Regional Integration, East Africa, Trade Agreement

IMF Reaches Staff-Level Agreement on a US$2.9 Billion Financing Package with Ethiopia – An International Monetary Fund (IMF) staff team led by Ms. Sonali Jain-Chandra visited Addis Ababa from October 29 to November 8, 2019 to hold discussions on the 2019 Article IV Consultation for Ethiopia, and the authorities’ request for a three-year US$2.9 billion (SDR 2.1049 billion) financing package that could be supported by the IMF under its Extended Credit Facility (ECF) and Extended Fund Facility (EFF). Discussions with the authorities continued after the mission.  Ms. Jain-Chandra issued the following statement today on the staff-level agreement: “The Ethiopian government and the IMF staff team reached preliminary agreement, subject to approval by the Fund’s Executive Board, on policies that could constitute the basis for Ethiopia’s new program supported by the ECF and EFF arrangements. The overall objective of the program would be to support implementation of the authorities’ Homegrown Economic Reform Program. “The Fund-supported program would consist of five main pillars: (1) durably address the foreign exchange shortage and transition to a more flexible exchange rate regime; (2) strengthen oversight and management of state-owned enterprises to contain debt vulnerabilities; (3) strengthen domestic revenue mobilization and expenditure efficiency to create space for adequate poverty-reducing and essential infrastructure spending; (4) reform the financial sector to support private investment and modernize the monetary policy framework; and (5) strengthen the supervisory framework and financial safety nets.  (IMF)

Key Words: East Africa, Business, Market

The State of Eritrea Becomes Africa Finance Corporation's 24th Member State - Africa Finance Corporation (“AFC” or “the Corporation”) is pleased to announce the accession of the State of Eritrea (“Eritrea”) as its 24 th  member state. This decision was ratified by His Excellency, Isaias Afwerki, President of Eritrea, on 6 November 2019. Eritrea has experienced stable growth; driven by increased investment in the mining and extractive sectors, with an expectation to deliver an average annual GDP growth rate of circa 4-5% between 2019 and 2024. The country’s economic growth strategy highlights a focus on scaling up infrastructure investments, specifically water and energy, to promote agricultural and industrial transformation. Additionally, the government is committed to improving the mining sector through a natural resource planning strategy. AFC, in line with its mandate, has committed to provide financing to the Colluli Mining Share Company for the development and construction of the Colluli Potash Project in the Danakil Depression region of Eritrea. Successful execution of this project will make significant contributions to exports, employment, agricultural productivity, and overall social and economic development of the country. AFC President and CEO, Samaila Zubairu, commented on the announcement: “It is my pleasure to welcome Eritrea as a member state of AFC. The government’s efforts at prioritising infrastructure investments bodes well for the country and we are committed to supporting Eritrea’s economic development programmes.”(AFC)

Key Words: AFC, Investment, Economic Growth

Tanzania Mainland Poverty Assessment: Executive Summary –This report summarizes a comprehensive analysis of poverty and inequality in Tanzania and identifies some priority actions if poverty is to be reduced. The first part is based on the results of the Household Budget Surveys (HBSs) for 2007, 2012, and 2018; several rounds of National Panel Surveys (NPSs); and Demographic Health Survey (DHS) data. It also combines spatial information from the population census and other sources with HBS data to (1) provide a rigorous analysis of the evolution, profile, and determinants of poverty and inequality; (2) exploremovements in and out of poverty and their drivers; and (3) examine the distribution of poverty and living conditions across the country at a detailed geographic level. The second and final part examines the pattern of structural transformation, firm profiles, job creation, and financial inclusion using the rebased GDP figures released in February 2019, plus data from the Statistical Business Register (SBR), Census of Industrial Production (CIP), national accounts, NPS, Integrated Labor Force Surveys (ILFS), and other sources. This executive summary provides an overview ofall the findings.  (World Bank)

Key Words: East Africa, Business, Market

WEST AFRICA

All Africans travelling to Nigeria can get visa on arrival from 2019 –Other Africans travelling to Nigeria will from January 2020 be able to get their visas at the point of entry. This was stated by President Muhammadu Buhari Wednesday at the Aswan Forum for Sustainable Peace and Development in Africa, holding in Egypt. “We in Nigeria have already taken the strategic decision to bring down barriers that have hindered the free movement of our people within the continent by introducing the issuance of visa at the point of entry into Nigeria to all persons holding passports of African countries with effect from January, 2020.” The Nigerian government last year announced visa on arrival policy for selected categories of people. Over 2,000 of such visas were given to potential investors at Nigeria’s main airport in Lagos in July, an official said. The government has also been considering new types of visas for applicants. In his speech at the Egypt event, the Nigerian leader emphasised the need to resolve conflicts across Africa. “As Africans it is important to focus on the issues of conflict prevention and resolution. Conflicts have devastating effects on our societies and they militate against our progress. In this regard, the need to silence the guns cannot be overemphasized,” he said. Read a full statement by the presidency containing Mr Buhari’s speech at the event below. President Muhammadu Buhari has declared that the resolution of conflict situations in African countries remains a key component in the overall development of the continent. (Premium Times)

Key Words: Regional Integration, Trade, Pan African

The Gambia adopts roadmap for educational and training institutions to step up support to youth – Young people in the Gambia can look forward to better educational and training opportunities following the unveiling in Banjul today (10 December) of the Technical and Vocational Education and Training (TVET) Roadmap 2020-2024.  The Roadmap was announced by Mr. Madi O. Jatta, Deputy Permanent Secretary of the Ministry of Higher Education, Research, Science and Technology (MoHERST), during the Sixth National TVET Committee meeting. It is the result of a collaboration between the Government of the Gambia and the International Trade Centre as part of the Jobs, Skills and Finance (JSF) for Women and Youth in The Gambia programme, made possible thanks to financial support by the European Union’s 11th European Development Fund. The launch of the Roadmap follows eight months of extensive consulting with enterprises, training institution and public-sector entities, which have helped define the needs and priorities for developing national skills in the coming five years. Based on detailed mapping and diagnostic, the TVET Roadmap provides clear strategic direction for reforms required to establish market-led, high-quality and accessible technical and vocational education and training, as well as a supplementary apprenticeship system. The Roadmap has been developed to align and complement the objectives of the Gambia’s National Development Plan. By launching the Roadmap, the Gambian government is stepping up its efforts to address insufficient management and teaching capacities, and align training delivery with industry needs. It will also seek to tackle the lack of access to education and training in rural areas, and increase the rate of formal apprenticeships. (ITC)

Key Words: West Africa, ITC, Trade

Markups, Market Imperfections, and Trade Openness : Evidence from Ghana –This paper investigates the impact of Ghana's World Trade Organization (WTO) accession on firm-level product and labor market imperfections. The paper exploits a rich dataset of firm-level information to estimate both markups and the degree of monopsony power enjoyed by manufacturing firms. The results indicate that price-cost margins declined while the degree of monopsony power increased in the wake of WTO accession. These diverging dynamics suggest that firms compress real wages to offset loss of market power in the product market due to increased international competition. This gives rise to an increase in the market imperfection gap, which gradually erodes the pro-competitive gains from trade. The paper contributes to the literature by identifying channels through which allocative inefficiencies and misallocation can persist even after trade liberalization. (World Bank)

Key Words: West Africa, Market, Trade Openness

CENTRAL AFRICA

Afreximbank Branch Office to Serve as Gateway into Central Africa – The new branch office being opened by the African Export-Import Bank (Afreximbank) in Yaounde will serve as the Bank’s gateway to the Central African region, Amr Kamel, Afreximbank’s Executive Vice President for Business Development and Corporate Banking, has said. Speaking during a roadshow organised in Yaounde to present the Bank’s products, programmes and facilities to the business community, Mr. Kamel said that the office would bring the Bank closer to local businesses in the region. “We are in the final stages of discussions with the Government authorities to open the branch office,” he told the audience of more that 250 business leaders from all the key sectors of the Cameroonian economy. Mr. Kamel noted that many African countries were taking strategic steps towards decommoditizing their exports and implementing industrialization strategies, saying that they were tired of being heavily commodity-dependent. Many Africans could no longer accept a situation where their development aspirations were defined by the vagaries of the international commodity markets, he explained. He commended the role given to Afreximbank in mobilizing all parties towards the attainment of the goals of Cameroon’s Vision 2035 and pledged that the Bank was committed to assisting both the government and the private sector. Luc Magloire Mbarga Atangana, Minister of Trade of Cameroon, commended Afreximbank for the decision to hold the roadshow in Yaounde and for selecting Cameroon to host the Central Africa Branch Office. He urged the business leaders in attendance to take full advantage of the services offered by Afreximbank in order to exploit the opportunities opened up by the implementation of the African Continental Free Trade Area (AfCFTA). (Afreximbank)

Key Words: AfCFTA, Business, Central Africa

SOUTHERN AFRICA

Mozambique absorbs 25% of India’s investment in Africa – India’s total investment in Mozambique amounts to US$8 billion, representing 25% of the Indian capital invested on the African continent.The figure was revealed in Maputo on Tuesday by the High Commissioner of India in Mozambique during a business conference for companies in the Information and Communication Technologies (ICT) sector. “Mozambique is an important partner for India. We want to increase our relations by focusing on the development of ICTs,” High Commissioner for India Rajeev Kumar said. With the start of production of liquefied natural gas in the Cabo Delgado Rovuma basin scheduled for 2022, Rajeev Kumar argues that Mozambique needs a solid ICT foundation to meet the challenges of this new industry. With half a hundred companies already operating in the Mozambican market, Indian technology and information entrepreneurs want to boost bilateral relations, and are in Maputo looking for business opportunities. Permanent Secretary of the Ministry of Science and Technology, Higher and Professional Technical Education, Celso Laíce, said Mozambique should use Indian experience to extend the use of ICTs. “As a government, we are committed to creating better conditions for the development of ICTs in the country,” he said. India is among Mozambique’s ten largest economic partners, and was the top destination for Mozambican exports in 2018, with a value of US$1.3 billion.  (Club of Mozambique)

Key Words: Southern Africa, Investment, Business

IMF Executive Board Completes the Second Review Under Angola’s Extended Arrangement and Approves US$247 Million Disbursement – On December 5, 2019, the Executive Board of the International Monetary Fund (IMF) completed the Second Review of Angola’s economic program supported by an extended arrangement under the Extended Fund Facility (EFF)[1]. Completion of this review unlocks access to SDR 179 million (about US$247 million), bringing total disbursements under the extended arrangement to SDR 1.073 billion (about US$1.48 billion). In completing the review the Executive Board also approved the authorities’ request for waivers of nonobservance and modification of the performance criteria (PC) on net international reserves and non-accumulation of external debt arrears, an introduction of a new PC on reserve money (ceiling), modifications to three indicative targets (increasing the ceilings on the accumulation of payments arrears and on public debt; and a new indicative ceiling on the issuance of debt guarantees by the Central Government), changes in the timetable of six structural benchmarks (SBs), and five new SBs to underpin fiscal consolidation and transparency, and support financial sector restructuring. Angola’s three-year extended arrangement was approved by the IMF Executive Board on December 7, 2018, in the amount of SDR 2.673 billion (about US$3.7 billion at the time of approval), the equivalent of 361 percent of Angola’s quota (see Press Release No. 18/463). It aims to restore external and fiscal sustainability, improve governance, and diversify the economy to promote sustainable, private sector-led economic growth. Following the Executive Board discussion of Angola’s economic program, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement: “The Angolan authorities have maintained their commitment to the Fund-supported program despite a challenging external and domestic environment. (IMF)

Key Words: SA, IMF, Trade