ATPC DAILY DIGEST 28 JANUARY 2021

Readying regional trade agreements for future crises and pandemics – Policy responses to the COVID-19 pandemic have heavily disrupted trade and supply chains, with many countries putting in place ad hoc trade-restrictive measures, seemingly without any concern about their effect on trading partners – at least during the early stages of the crisis. While such reactions to an unexpected global pandemic are understandable, they are certainly not optimal. They have highlighted the limitations of existing trade agreements, including over 184 regional trade agreements signed by economies in Asia and the Pacific, as well as the multilateral trade rules, in providing guidance on how to respond to emergency or crisis situations in a least trade-restrictive fashion. Against this backdrop, in an effort to accelerate recovery from this crisis and better prepare for the future, UNCTAD together with The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the World Trade Organization (WTO), other UN regional commissions, as well as CUTS and other partners, launched a global initiative on model provisions for trade in times of crisis and pandemic in regional and other trade agreements in May 2020.

While the initiative is still on-going, a key deliverable in 2020 was the organization of a fully online global policy hackathon. Designed to gather innovative ideas on how to improve trade agreements and build back better, it started with a global call to trade experts from governments, international organizations, civil society and the private sector to submit written contributions within 50 days. Response to the call was beyond expectations, with more than 200 proposals submitted, resulting in over 60 final contributions by more than 130 (co-)authors, which went through reviews and evaluation by a core group of experts. All contributions are available in an online repository and a webinar series based on the best-quality contributions was held in November 2020. (UNCTAD)

Key Words: UNCTAD, Global Trade, Business

World Customs Organization dedicates 2021 to bolstering Recovery, Renewal and Resilience for a sustainable supply chain – On 26th January 2021, the Secretary General of the World Customs Organization (WCO), Dr. Kunio Mikuriya, announced that this year’s International Customs Day (ICD), which is marked annually on 26 January, will be celebrated under the slogan: “Customs bolstering Recovery, Renewal and Resilience for a sustainable supply chain”. The global Customs community is invited to implement the theme throughout this year and beyond. As we all move resolutely towards a post-pandemic future in 2021, the Customs community, in collaboration with its partners and stakeholders, will be focusing on recovering from the pandemic and providing support to people and businesses by promoting Renewal efforts along the global supply chain. These efforts are geared towards building Resilience and seeking ways to drive the Recovery process through enhanced collaboration and embracing the digital transformation, along with other advanced technologies, to enable Renewal. This will all be achieved by putting “people” at the centre of change for a Resilient and sustainable supply chain. (WCO)

Key Words: WCO, Global Trade, Business

Services trade recovery not yet in sight - Global services trade in the third quarter of 2020 fell 24% compared to the same period in 2019, according to statistics released by the WTO on 26 January. This represents only a small uptick from the 30% year-on-year decline registered in the second quarter, in marked contrast to the much stronger rebound in goods trade. Preliminary data further suggest that, in November, services trade was still 16% below 2019 levels. Prospects for recovery remain poor since a second wave of COVID-19 infections necessitated new, stricter lockdown measures in many countries, with tightened restrictions on travel and related services extending into the first quarter of 2021.

The latest statistics confirm earlier expectations that services trade would be harder hit by the pandemic than goods trade, which was only down 5% year-on-year in the third quarter. Foregone expenditures on tradeable services could be directed elsewhere, with consumers shifting to goods instead. Unlike goods, services cannot be stockpiled, which means that despite pent-up demand, many of the revenue losses from cancelled flights, holidays abroad, restaurant meals, and cultural/recreational activities are likely to be permanent. Travel remains the most affected service sector, down 68% globally compared with the same period of 2019. In the third quarter of 2020, spending by international travellers was down 88% in Latin America and the Caribbean, 80% in both Asia and Africa, 78% in North America, and 55% in Europe. The relaxation of travel restrictions in Europe during the summer months produced only a modest rebound in services trade in the third quarter. (WTO)

Key Words: WTO, Global Economy, Trade

COVAX Announces new agreement, plans for first deliveries - COVAX, the global initiative to ensure rapid and equitable access to COVID-19 vaccines for all countries, regardless of income level, today announced the signing of an advance purchase agreement with Pfizer for up to 40 million doses of the Pfizer-BioNTech vaccine candidate, which has already received WHO emergency use listing. Rollout will commence with the successful negotiation and execution of supply agreements. In further support of its mission to expedite early availability of vaccines to lower-income countries and help bring a rapid end to the acute stage of the COVID-19 pandemic, COVAX also confirmed today that it will exercise an option – via an existing agreement with Serum Institute of India (SII) – to receive its first 100 million doses of the AstraZeneca/Oxford University-developed vaccine manufactured by SII. Of these first 100 million doses, the majority are earmarked for delivery in the first quarter of the year, pending WHO Emergency Use Listing. The WHO review process, which is currently underway, follows approval for restricted use in emergency situations by the Drugs Controller General of India earlier this month, and is a critical aspect of ensuring that any vaccine procured through COVAX is fully quality assured for international use. According to the latest WHO update, a decision on this vaccine candidate is anticipated by the middle of February. COVAX also anticipates that, via an existing agreement with AstraZeneca, at least 50 million further doses of the AstraZeneca/Oxford vaccine will be available for delivery to COVAX participants in Q1 2021, pending emergency use listing by WHO of the COVAX-specific manufacturing network for these doses. A decision on this candidate is also anticipated by WHO in February. (WHO)

Key Words: WHO, Trade, Investment

PAN AFRICA

Africa can have an inclusive, cohesive and sustainable recovery from Covid - The Covid-19 pandemic is driving Sub-Saharan Africa into its first recession in 25 years, putting economic progress at risk. Recovery will depend on how effective governments and private sector partners are at addressing four key priorities. The African Continental Free Trade Area (AfCFTA), which came into effect on 1 January, can serve as a framework for the region’s economic recovery. The zone aims to connect 1.3-billion people across 55 countries with a combined gross domestic product (GDP) valued at $3.4-trillion. It is estimated that the AfCFTA will increase the volume of intra-African trade by more than 81% by 2035, creating new opportunities for African manufacturers and workers. The World Economic Forum’s Regional Action Group for Africa, in collaboration with Deloitte, recently published a report that addresses how governments and the private sector can leverage this opportunity by building effective regional value chains. Implementing the AfCFTA, which will require the cooperation and coordination of public and private stakeholders, will help usher in the kinds of reforms necessary to enhance long-term growth, reduce poverty and broaden economic inclusion. According to the World Bank, most of the AfCFTA’s income gains are likely to come from trade-facilitation measures that reduce red tape and simplify customs procedures. The Global Alliance for Trade Facilitation, a public-private partnership led by the forum, is working on the ground with governments and the private sector to deliver projects that will help implement the trade facilitation agreement. The alliance has projects in Ghana, Nigeria, Kenya, Malawi and Zambia. (Mail&Guardian)

Key Words: AfCFTA, Business, Trade

Why it’s more expensive to fly within than out of Africa – Flying out of the African continent is way cheaper than flying within it thanks to high taxes, fees and charges slapped on airlines and passengers. This is according to a new report which also states that governments tax the sector heavily as aviation is considered a luxury service. On average, passenger’s fees and charges are twice as much on the continent than in Europe or the Middle East. Latest African Airlines Association (AFRAA) Taxes, Fees and Charges in Africa report shows that passengers travelling within Africa from Kenya pay Sh5,502.5 ($50) in taxes and fees, above the amount paid in Europe, which is Sh3,326.8 ($30.23) and Middle East, Sh3,263 ($29.65). “While the average amount of passengers’ paid taxes and fees in Africa is Sh7,043.2 ($64), passengers are charged Sh3,326.8 ($30.23) in Europe and Sh3,263 ($29.65) in the Middle East despite the fact that traffic is much more significant in these regions,” the AFRAA report shows. Niamey Sh17,905.1 ($162.7), Monrovia Sh15,957.3 ($145), Bissau Sh15,176 ($137.9), Dakar Sh12, 865 ($116.9) and Doula Sh12,722 ($115.6) are some of the costly capitals for passengers in terms of taxes and fees. To ensure affordable air transport as well as traffic on the continent, AFRAA advocates for lowering of these taxes that eat into airline operations. “This will help our airlines to become more competitive, especially against foreign operators, who are based in regions where the taxation is lower comparatively,” AFRAA notes in its 2020 report. Experts say an affordable air transport will develop Africa’s tourism and trade sectors that are the backbone of the continent’s economies. (Business Daily)

Key Words: AfCFTA, Trade, Africa

Connecting Countries and Cities for Regional Value Chain Integration: A perspective from the World Economic Forum in collaboration with Deloitte- Within the context of operationalizing the African Continental Free Trade Area (AfCFTA) Agreement, as well as continuing to live with the COVID-19 outbreak, the members of the Regional Action Group for Africa identified five pathways as priorities for driving economic recovery and building resilience: new financing models for rapid recovery; unlocking manufacturing to mitigate global supply-chain risks; leveraging integration and regional value chains; revitalizing infrastructure and connectivity; and scaling digital transformation and inclusive innovation. This report is one in a series of reports investigating these pathways, and explores two priorities: first, unlocking manufacturing to mitigate global supply-chain risks; and second, leveraging integration and regional value chains. It also undertakes a review of the status quo of intra- African trade and current African efforts towards liberalizing trade in the continent, and seeks to identify avenues to be explored in order to deepen intra-African trade and unlock production capacity to meet local and global demands in strategic sectors, focusing on the automotive industry. This report reviews the impact of the COVID-19 pandemic on Africa’s supply chains to highlight both the disruptions induced by the pandemic and the opportunities that it presents. (Deloitte )

Key Words: Trade AfCFTA, Africa

Green technology boost for African mining - The key to unlocking value of Kabanga Nickel and enabling the full beneficiation of new era metals in Tanzania is an environment-friendly hydrometallurgy process that eliminates smelting and thus slashes the need for electricity. The Kabanga Nickel Hydromet process – which takes ore to refined metals at lower capital and operating costs cutting carbon dioxide (CO₂) emission by 80% and eliminating sulphur dioxide (SO₂) emission altogether – is seen as a game changer for Tanzania, by providing the maximum in-country value-add to the East African nation. Once developed, Kabanga will produce class 1 nickel and cobalt products – two of the key elements used in electric vehicle (EV) batteries – and London Metal Exchange grade A copper cathode. The World Economic Forum has estimated that demand for high-purity nickel for EV battery production “will increase by a factor of 24 in 2030 compared to 2018 levels”. Mining Weekly can report that the team behind this revolutionary new way of doing things is Lifezone, which is currently also implementing the innovative Kell process at Sedibelo’s Pilanesburg Platinum Mines in South Africa. The innovative new platinum group metals (PGMs) mining and processing project that slashes 82% off electricity use and elevates platinum to a new high level of greenness, leapt out of its starting blocks in North West province this month. “We’ve commenced. The tanks are rolling,” Pallinghurst managing partner and co-founder Arne Frandsen told Mining Weekly in a Zoom interview. (Engineering News)

Key Words: Trade, Economy, Africa

Afreximbank Earmarks $2bn to Finance COVID-19 Vaccines’ Purchase – The President of the African Export-Import Bank (Afreximbank), Prof. Okey Oramah has disclosed that the bank is putting in place a financing facility of $2 billion to assist African countries in the purchase of COVID-19 vaccines, which would be available in the continent in March. He also called on Africans and businesses hoping to reap the benefits of the African Continental Free Trade Area (AfCFTA) agreement to exercise patience with the teething problems that would accompany the implementation of the continental free trade area’s agreement. The AfCFTA took effect official on January 1, 2021. Oramah made the call during an interview on Arise TV. He said: “We should be patient. The AfCFTA implementation will come with challenges. But we should not be daunted with the challenges. We should expect and approach them with a positive spirit to find solutions. I will want every Africa and the Small and Medium Enterprises not to dwell in complaints but to try to find solutions.” Oramah, who is a champion of intra-African trade, regretted that colonial powers had broken Africa into 55 atomistic dissected economies, with some countries so small that they were being ignored even by some companies. This, according to him, brought other difficulties that made African countries not to deal with themselves. Africans, according to him, hardly see an African country as a market but looked to very far land for trades.
He noted that among the implications of having a dissected continent was that Africa has remained an exporter of commodities to the rest of the world for more than 60 years, which create jobs outside the continent at the expense of unemployed teeming youthful African population. (This Day)

Key Words: Trade, Economy, Africa

Climate data presents a $2 billion opportunity in Africa alone. Here’s why- Data is a currency of its own in the modern world, so if only a few people can extract, refine and store it, then it will end up widening existing inequality gaps. This is why “data democratisation” has become essential, especially in emerging economies. While the space sector has always leveraged open data, its value has not been tapped by most economies or societies. In this context, the role of satellite imagery could become increasingly important to find innovative solutions to current problems such as pandemics, famines, or climate change. Digital Earth Africa, a unique program launched in February 2019 uses the Open Data Cube and Amazon Web Services to make global satellite imagery more accessible and proves how data can bridge key social and economic inequalities in the twenty-first century.

The problem: Images of Africa’s geographies and coastlines have been recorded by satellites for many years. This free data, which offers a range of insights regarding land and water resources, is openly available but impossible to access, analyse or compute given the massive size of the data sets as well as the great processing power and capabilities required. However, this type of information could be key to tackling a range of challenges across the continent, including:

Unregulated mining and its knock-on effects. One fifth of global gold production takes place in Africa, and this precious material is often extracted illegally, reducing fiscal revenues. It also has enormous environmental impacts as illegal miners level forests and contaminate both water and soil, leading to an uptick in malaria and other diseases. Satellite data can help to identify these illegal mines by providing detailed Earth Observation images.
Untapped economic potential. Widespread data access could foster the growth of the Earth observation industry and of other data sectors in Africa, creating new opportunities and helping the continent more actively participate in the global economy.
Hunger. Clear and intelligible data can also help farmers who are often missing accurate information to make key decisions, such as reliable weather forecasts, water availability and crop development trends. Improved agricultural practice increases food security as the continent copes with feeding a fast-growing population

(World Economic Forum)

Key Words: Trade, Economy, Africa

NORTH AFRICA

Mauritania becomes second signatory state of the Establishment Agreement of Fund for Export Development in Africa (FEDA) - The Islamic Republic of Mauritania has signed the Agreement for the Establishment of the Fund for Export-Development in Africa (FEDA), a development impact-oriented subsidiary of Afreximbank. The agreement was signed on 6th January 2021 by the Minister for Foreign Affairs and International Cooperation, Mr. Ismail Ould Cheikh Ahmed, on behalf of the Islamic Republic of Mauritania. Mauritania becomes the second signatory of the Establishment Agreement after Rwanda signed in November 2020. To complete the FEDA Legal Establishment, two Afreximbank member states are required to sign and ratify the Establishment Agreement. Mauritania’s signature helps move FEDA’s Legal Establishment process forward. The Establishment Agreement grants FEDA legal capacity to conduct business in its own name as an International Organization with Privileges and immunities accorded to other Multilateral Financial Institutions in Mauritania. Professor Benedict Oramah, President and Board Chairman of Afreximbank, and Board Chairman of FEDA said: “The Bank is delighted with the action taken by Mauritania which is a significant step in the Legal Establishment of FEDA, so that it can in its own name start providing capital with a focus on delivering impact in intra-African trade, industrialization, value addition and export development, while providing returns to investors. We look forward to more Afreximbank member countries joining FEDA in the near future so it can scale-up its activities”.
(Afreximbank)

Words: Mauritania, FEDA, Business

Libya to develop its coastal free zones with African states through its railway project and create partnerships with EU

Libyan investment in Africa -The Minister reviewed Libya’s various contributions at the bilateral and regional levels and the role it played in building the African continent in economic and social development through investments and granting loans. These are distributed in more than 25 African countries, and provide more than 30,000 jobs for African youth.

Libya wants to play positive role in COMESA - He concluded his speech by saying that Libya aspires to have a positive role in COMESA and restore the previous momentum of Libyan investments, which contributed to the consolidation of the relationship with the African continent. Libya wishes to contribute with its qualified and trained cadres in managing COMESA plans and programmes while investing in its strategic location to create a partnership with the European Union, he added.

African states should help save Libyan investments from ”obstacles” - The Foreign Minister stressed Libya’s desire to increase activity to create good joint opportunities calling on African countries to be aware of Libya’s role aimed at strengthening cooperation and partnership and called on African states to contribute to saving its investments from the obstacles they encounter due to their current conditions. A number of Libyan entities participated in this two-day workshop, including Economy, Industry, Agriculture, the Central Bank of Libya, the Insurance Supervision Authority, the Customs Authority, the General Union of Chambers of Commerce and Industry, the Libyan Business Council, the General Company for African Investments, the Export Development Centre and the Libya Africa Investment Portfolio. (Libiya Herald)

Words: North Africa, Trade, Business

EAST AFRICA

Tanzania joins EAC One Area Network – Tanzania just joined the One Area Network adopted by the member countries of the East African Community to harmonize tariffs on voice calls within the region. Until now, the standard was only followed by Kenya, Uganda, Rwanda and South Sudan. In a letter addressed to the EAC Secretariat, Stephen Mbundi, the Permanent Secretary of the Tanzanian Ministry of Foreign Affairs, informed the sub-regional executive body that the United Republic of Tanzania has concluded the consultations and is now ready to begin implementation of the EAC Homelessness Framework. Tanzania's letter comes while the country was in the focus of the EAC's Transport, Communications and Meteorology (TCM) Sector Council. At its 16th meeting held from June 24-28, 2019 in Kampala, Uganda, TCM had given Tanzania until March 31, 2021 to finalize its analysis on the implementation of the "One Area Network". Once Tanzania's implementation of the One Area Network is effective, the EAC expects a consolidation of sub-regional integration, pending Burundi's decision to also join. The population will thus be able to communicate more at low cost. This will be a relief for traders, entrepreneurs, and businessmen in the sub-region. (Ecofin Agency)

Key Words: Trade, Business, East Africa

Covid-19 worsens turbulence facing East Africa's airlines - It is back to the drawing board for airlines in East Africa as a resurgence of Covid-19 further disrupts global travel amid the need to save jobs while turning cash positive. Executives at Kenya Airways, RwandAir and Uganda Airlines all concede to a challenging business environment that has seen a rise in costs, cutbacks in capacity and a revision of business projections to adjust to the new market realities. In its first briefing for the year on January 12, the International Air Transport Association (IATA) said that while the transition from cash-burn to cash-generation was in sight, the next six months would be difficult for airlines. “While we still see airlines turning cash positive within the year, the near-term picture is bleak. Instead of a boost from the year-end holiday period, we got even more restrictions. Governments tightened borders in a knee-jerk response to a virus mutation. Canada, UK, Germany, Japan and others added testing to their Covid-19 measures without removing quarantine requirements. In other words, they have chosen policy measures that will shut down travel,” said IATA chief executive Alexandre de Juniac. While castigating governments for a fixation with achieving a zero-covid world, he warned that a failure to manage a balanced approach to the risks of Covid-19 would see the travel and tourism economy continue to suffer and incur job losses. IATA added that while business confidence had recovered in major Western markets, the challenges for air travel are visible in sub-par airline share prices. According to the Reuters Global Airline share prices index, airline share prices are still trending negative 25 percent below their value during the same period in January 2020. (The EastAfrican)

Key Words: Trade, Business, East Africa

WEST AFRICA

AfCFTA: OPS Pledges to Collaborate with FG - Members of the organised private sector in Nigeria (OPSN) have pledged to work closely with the federal government on the implementation of the African Continental Free Trade Area (AfCFTA) agreement. They made the pledge Monday, during the formal handing over of the leadership of the OPS from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) to the Nigerian Employers’ Consultative Association (NECA). The OPSN is made up of the NACCIMA, the NECA, the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Small Medium Enterprises (NASME) and the Nigerian Association of Small Scale Industrialists. The National President of the NACCIMA, Mrs. Saratu Iya Aliyu, who handed over the mantle of leadership of the group to the President of NECA, Mr. Taiwo Adeniyi, said the OPSN was still grappling to know exactly what was needed for them to do to participate effectively in the AfCFTA. Aliyu said a lot of enlightenment was needed to be done, adding that a lot of things have to be in place because the movement of goods and services from one country to another has its own protocol. She said: “Our members have to know and be educated about the AfCFTA. There is a lot we as the leaders of the organised private sector are trying to know.” Speaking in the same vein, Adeniyi, who is the new Chairperson of the OPSN, said the OPSN was concerned about the operational details of the AfCFTA. Adeniyi said: “We are currently working with the National Action Committee (NAC) to make sure that all of this is stated out. But you will be rest assured that as the OPSN, we are willing to work with the government to get its assurances and be sure that we will not shoot ourselves in the leg. We want to get a full grasp of the implications and modalities of the trade and be assured that we are well protected and that our concerns are taken care of.” (This Day)

Key Words: AfCFTA, Business, West Africa

ECO/AfCFTA: ECOWAS sets new guidelines on single currency and market – On Sunday, January 23, 2021, the member countries of the Economic Community of West African States held their 58th Ordinary Session of the ECOWAS Authority of Heads of State and Government. This virtual meeting saw the establishment of new guidelines regarding the community’s single currency and market. Concerning the single currency (ECO), the ECOWAS communiqué stressed that the deadline for this project, which has already been postponed several times, will be postponed again, particularly following the impact of the coronavirus pandemic on the macroeconomic performance of West African countries. A new macroeconomic convergence and stability deal between member countries is expected to be implemented by 1 January 2022. According to Alpha Barry, Burkina Faso's Minister of Foreign Affairs, this new process should lead to a new roadmap for the single currency by 2025. "Beyond covid-19, we were in a situation where our economies were weak. With the shock of covid-19, the conference suspended the application of the agreement in 2020. The second wave of infections also makes it impossible to deploy the plan in 2021. From January 2022, the convergence pact, which includes the various deficit and inflation criteria to be met, will be implemented. It is estimated that during the three years, the states must make efforts so that in 2025, we can use the common currency," said Lassané Kaboré, Burkinabe Minister of Economy, relayed by Sidwaya. On the other hand, the Heads of State of the Sub-Regional Organization also discussed the African Continental Free Trade Area (AfCFTA). Initially scheduled to come into force last year, the operationalization of this market that officially came into effect on January 1, 2021, had to be postponed. (Ecofin Agency)

Words: West Africa, Trade, Economic Growth

CENTRAL AFRICA

CEMAC: Cameroon proceeds to provisional acceptance of 150-km of roads linking the country to Congo – The Cameroonian Ministry of Public Works (Mintp) informs that today January 26, 2021, it will proceed to the provisional acceptance of 150 kilometers of road linking Cameroon to Congo-Brazzaville in the framework of the CEMAC integration projects. The roads concerned include two lots of the Sangmelima-Ouesso road (700 km) completed in South Cameroon. These are Mintom-Lélé (67.50 km), Lélé-Ntam-Mbalam (53 km) and the 30-km Ntam-Mbalam junction stretch. "The provisional acceptance is carried out through a step-by-step inspection of the works, in the presence of representatives of the project owner, the contracting authority, the financial backers, the company, and the control mission. It is a meticulous task that assesses the technical quality of the works. It will be presided over by the Director-General of Infrastructure Works," the Mintp states. According to the African Development Bank (AfDB), which is the main financial backer of this inter-capital road project, besides developing trade between the two countries, the roads will strengthen regional integration in Central Africa by allowing interconnection on roads linking Cameroon, Congo, DR Congo, Gabon, Equatorial Guinea and Central Africa. The direct beneficiaries of the project are transport users as well as the people living in its area of influence (Sangha Department in northern Congo and the southern region of Cameroon). The project is expected not only to improve the movement of people and goods between the two countries but also to open up areas with high economic potential. (Business in Cameroon)

Words: Central Africa, CEMAC, Economic Growth

SOUTH AFRICA

Government launches R1.2bn Tourism Equity Fund - Government on Tuesday launched the Tourism Equity Fund aimed at creating an inclusive and growing tourism sector by supporting entrepreneurship and investment on the supply side of the tourism sector. Speaking at the virtual launch of the Tourism Equity Fund (TEF), President Ramaphosa said many jobs in the tourism and associated sectors in the value chain have been shed. “As damaging as this pandemic has been, and continues to be, we can be certain that as infections are brought under control and more areas of economic activity resume, there will be a gradual recovery. “The task before us now is to ensure that we do not simply return to business as usual, but that we accelerate the pace towards achieving our transformation goals,” President Ramaphosa said. According to President Ramaphosa, Tourism directly accounts for 2.9% of South Africa’s GDP and 8.6% indirectly. It supports about one-and-a-half million direct and indirect jobs. President Ramaphosa said South Africa’s tourism base is significant and that it is one of the world’s most popular long-haul destinations. “This is a sector that is labour-intensive and therefore has immense job creation potential. It supports a vibrant and complex value chain. It generates foreign direct investment and significant export earnings. It stimulates and supports the development of small businesses,” the President said. (SANews.gov.za)

Words: South Africa, Trade, Economic Growth

Namibia's customs administrations set to play pivotal role in AfCFTA- Namibia's customs administrations will be an integral part of the African Continental Free Trade Area (AfCFTA), as they unlock and leverage the competitiveness and enhance both continental and global trade logistics, Finance Minister Iipumbu Shiimi said Tuesday. Namibia is excited by the recent launch of the AfCFTA which is brimful of opportunities to strengthen intra-Africa trade, regional and continental value chains, Shiimi said in a statement delivered on his behalf during the World International Customs Day in Windhoek. "Customs administrations are expected to continuously adapt and display agility and dynamism," he said, adding that Namibia is in the process of launching the Namibian Revenue Agency (NamRA) with a mandate to administer state revenue and the reform of customs and excise which will contribute to a more enabling business environment. Shiimi shared some envisaged initiatives which will be part of the implementation of the Customs Modernization Program which will include new clearing agent and risk management policies; establishment of the container control program and electronic data interchange center. "In operationalization of these programs, we are mindful of the advances in technology which if optimally used can streamline our process and improve efficiency," he added. Shiimi meanwhile said it is therefore incumbent upon the Namibia Customs and Excise Administration to pause and examine the country's economic and social projections and benchmark them against international best practices in order to remain relevant and attuned to the latest global developments. (XinhuaNet)

Words: Namibia, AfCFTA, Trade

African banks sign deal to upgrade trade chokepoint at Zimbabwe border- A group of African banks has signed a US$194mn senior debt facility to rehabilitate the Beitbridge border post, a crossing that connects Zimbabwe and South Africa. Rand Merchant Bank (RMB) acted as co-ordinating bank and sponsors’ advisor and, along with Absa, Nedbank and Standard Bank, was a mandated lead arranger (MLA). The African Export-Import Bank (Afreximbank) and the Emerging Africa infrastructure Fund (EAIF) were senior lenders, with the latter also acting as a mezzanine lender. The senior debt facility makes up the majority of the US$297mn project cost; the outstanding balance was obtained via a mezzanine debt of US$21mn and through equity. The Export Credit Insurance Corporation (ECIC), the South African export credit agency (ECA), acted as a commercial and political risk insurer for the senior debt facility and, alongside Afreximbank, was a political risk provider for a portion of the shareholders’ equity and loan investments. By structuring ECA-backed tranches, the banks were able to deliver competitive financing terms through longer tenors and lower interest rates, according to a statement from RMB. The tenor of the senior debt facility is 11 years, while the tenor for the mezzanine debt is one year longer. The proceeds will be used by Zimborders, a border facilities provider, to finance and lead the rehabilitation of the border post on a public-private partnership basis. Beitbridge border post is known for its ageing infrastructure that is unable to support the volume of crossings made each day, resulting in severe delays. (GTR)

Words: Zimbabwe, GTR, Trade

African Trade Policy Center

ATPC DAILY DIGEST 28 JANUARY 2021

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