Today’s Topics

Failure to vaccinate globally could cost up to $2,000 per person this year in rich nations- (Oxfam International)

India, Mauritius FTA to come into effect from Apr 1- (Business Standard)

International trade decline not as significant as expected – DP World- (Engineering News)

Africa’s Trade Revolution Needs Peace- (Project Syndicate)

Obinne: Africa must deploy robust fraud management system for trading under AfCTFA- (Modern Ghana)

EU-Africa Partnership: Let African Farmers trade rather than being dependent on aid- (Euractiv)

Transforming The Landscape For African Women Entrepreneurs And Unpacking The Obstacles To Women’s Financing, Offering Solutions- (GNN Liberia)

Nine business ideas to pursue in Africa: Poultry, cannabis, vocational training and more- (How we made it in Africa)

Biden Administration Dampens Kenya's Hopes for Bilateral Trade Deal- (The Maritime Executive)

Focus on TPA Prosperity: Tanga port to make Tanzania major fuel trading hub-  (Dailynews)

Apply higher tariffs on non-EAC goods to grow industries- (Business Daily)

EAC women need help on cross-border trade revamp-  (Dailynews)

AfCFTA: Ghana to be a subsidiary hub for multinationals- Former Oxford Professor- (My Joy Online)

Maximising FG’s Delineation of Free Trade Zones at Airports- (This Day)

JUST IN: Ratification delays could stall AfCFTA, TFTA implementation- (Chronicle)

Strategy to add value to leather sector chain- (The Herald)

INTERNATIONAL

Failure to vaccinate globally could cost up to $2,000 per person this year in rich nations- Rich countries must open the way to cheaper mass-produced COVID-19 vaccines in order to protect every person in the world and avert a $9 trillion “worst case” global economic catastrophe, said Oxfam today. They should also agree this week to inject $650 billion more into the global economy to help developing countries cope with the pandemic’s already devasting effects. The two issues —one around tackling the chronic global scarcity of vaccines that is now sparking trade disputes between and economic shocks among countries, and the other in agreeing a new allocation of Special Drawing Rights (SDRs)— will feature at the World Bank and International Monetary Fund’s (IMF) Spring Meetings April 5-11.  Together, these two initiatives would go a long way towards providing the public health protection and economic stimulus that people and countries all over the world desperately need. Urgent action is needed as COVID-19 continues to spike, mutate and kill whilst continuing to wreak economic havoc. Oxfam is urging IMF members to waste no time in endorsing a $650 billion SDR issuance —enough for low-income countries to nearly double their healthcare spending for a year. This would be a highly welcome move and the culmination of pressure that civil society and others have been applying to member countries to do the right thing. (Oxfam International)

Key Words: Global Trade, Business, COVID-19

India, Mauritius FTA to come into effect from Apr 1 - Several Indian products will enjoy the benefit of greater market access at concessional duties in Mauritius as the free trade agreement signed between the two countries will come into effect from April 1, the commerce ministry said on Wednesday. India and Mauritius signed the Comprehensive Economic Cooperation and Partnership Agreement (CECPA), a kind of free trade pact, on February 22. "Both sides have completed their internal legal procedures and the India-Mauritius CECPA will enter into force on Thursday, 01 April 2021," the ministry said. The pact covers 310 export items for India, including food and beverages, agricultural products, textile and textile articles, base metals, electricals and electronic item, plastics and chemicals, and wood. It said that Mauritius will benefit from preferential market access into India for its 615 products, including frozen fish, speciality sugar, biscuits, fresh fruits, juices, mineral water, beer, alcoholic drinks, soaps, bags, medical and surgical equipment, and apparel. As regards trade in services, Indian service providers will have access to around 115 subsectors such as professional services, computer related services, research and development, telecommunication, construction, education, environmental, financial, tourism, yoga, and audio-visual. (Business Standard)

Key Words: Investment, India, Business

International trade decline not as significant as expected – DP World- Contrary to an expected dramatic decrease in international trade, flows have increased, with 38% of Middle Eastern companies and 32% of African companies managing to expand international sales, a global study of private sector perspectives shows. Commissioned by end-to-end supply chain and logistics company DP World and conducted by the intelligence unit of media company The Economist, the study reveals that supply chain reconfiguration has been a priority for many businesses as they work to overcome the adverse impacts of the Covid-19 pandemic. Globally, 83% of companies are reconfiguring their supply chains, with the Middle East from a regional perspective having the highest share of respondents (96%) whose companies were in the process of reconfiguring their supply chains. In addition, 84% of African businesses responded that they were already in the process of doing so, slightly more than the global average of 83%. The study also examined the impact of the Covid-19 pandemic, with the Middle East having the highest share of respondents (48%) indicating that a demand shock (defined as the difficulty in selling products to customers in international markets) had the greatest negative impact on their firms’ international sales. (Engineering News)

Key Words: Investment Policy, International Trade, COVID-19

PAN AFRICA

Africa’s Trade Revolution Needs Peace - The African Continental Free Trade Area (AfCFTA), which came into effect in January, could be a game changer in helping to lift the continent out of poverty and onto the path of long-term prosperity. The AfCFTA has the potential to accelerate and alter the composition of foreign direct investment in Africa, thereby diversifying the continent’s sources of growth and boosting its internal and external trade. And merging Africa’s relatively small markets into one of the world’s largest will enable investors to capitalize on greater economies of scale. But Africa risks squandering this huge opportunity unless its leaders can address the continent’s unwelcome reputation as one of the world’s most conflict-prone regions. According to the World Bank, nine African countries currently suffer from high institutional and social fragility; 12 are engaged in medium or high-intensity conflicts. Unsurprisingly, the number of conflict-related deaths in the region has surged from 2,200 in 2010 to an average of 14,000 per year since 2014. Transnational terrorist networks have recently intensified the problem. (Project Syndicate)

Key Words: AfCFTA, COVID-19, Trade

Obinne: Africa must deploy robust fraud management system for trading under AfCTFA - Emmanuel Obinne, West Africa Head of Growth and Partnerships at BPC Banking Technologies is advocating for a robust payment system for trade under the African Continental Free Trade Area. This according to him is crucial in averting any attempt by fraudsters to take advantage of loopholes in the various payment systems. He was speaking in an interview on the new approach by fraudsters in the wake of the COVID 19 pandemic. “I am actually excited about the Free Trade Area being set up and here we are talking about multi-country trading and this will lead to an increase in the volume of digital payments obviously,” he said. Obinne added, “Now because nations are involved in these transactions, I believe that the setting up of business-to-business market places run by the governments among these countries whereby those who are trading under the platforms are brought under one eco systems are averted just as Alibaba, … so you can protect the buyer and seller.” He also cited lack of adequate fraud management solutions as one of three loopholes being explored by fraudsters to perpetrate their crime. “It is logical that you will ordinarily expect that fraud should be dropping but we need to realise that fraudsters are notoriously innovative and they advance even as technology advances and I don’t believe they go to rest.,” he said. (Modern Ghana)

Key Words: Investment Policy, Regional Integration, AfCFTA

EU-Africa Partnership: Let African Farmers trade rather than being dependent on aid- As the EU strives to pursue “green diplomacy” it is important that our European partners strive to support Africa in its efforts to produce more and be the trading partner that Europe needs. We all have growing populations and as a result, a growing demand for food production. As Europe looks into how it can reduce its own use of pesticides, it is important to remember that Africa’s pesticide use and yields are not comparable to that of Europe. We are not talking about the same starting base. Africa uses less crop protection than Europe. Even in corn, a staple crop in Africa, more crop protection is used per hectare in Europe. The average African farm performs at only around 40% of its potential, and on present trends, the continent is set to produce only 13% of its needs by 2050. Already in 2019, half of the world’s population facing food insecurity lived in Africa despite the continent containing 60% of the world’s arable land. Studies also suggest that in Africa, for every 10% increase in farm yields, poverty falls by 7%. As African farmers strive to improve their farming practices to help them produce more, let us not forget that they are not able to rely on tens of billions of Euros of subsidies like their European counterparts. (Euractiv)

Key Words: Investment Policy, Regional Integration, AfCFTA

Transforming The Landscape For African Women Entrepreneurs And Unpacking The Obstacles To Women’s Financing, Offering Solutions- This month, known to many as International Women’s Month, the African Development Bank Group (AfDB) continues to put a spotlight on women-led businesses and financial institutions set to support them. The business experiences of African women running small and medium-sized enterprises, as well as financial institutions supporting them, were the subject of an online event held on 8 March 2021, by the African Development Bank (AfDB) and the African Guarantee Fund (AGF). The businesses are all clients of financial institutions participating in the Affirmative Finance Action for Women in Africa (AFAWA) Guarantee for Growth program. The program is a tri-pillar innovation that aims to unlock up to $3 billion in loans to small and medium enterprises in the next five years. Working through financial institutions, the program addresses the financial and non-financial needs of small and medium enterprises by offering access to finance and technical assistance to enhance their bankability and ability to grow profitable and sustainable businesses. “Women are the heart of our economy and the keys to building a more resilient, inclusive and prosperous society across the continent amidst the global pandemic,” said Vanessa Moungar, the Bank’s Director for Women, Gender and Civil Society, in her welcoming remarks to over 400 online participants.  (GNN Liberia)

Key Words: Investment Policy, Regional Integration, AfCFTA

Nine business ideas to pursue in Africa: Poultry, cannabis, vocational training and more - Here are nine business opportunities on our radar, as highlighted by top African entrepreneurs and investors.Tapping into demand for poultry in Angola and Mozambique. “Poultry is a large market and in the context of Africa, chicken is at the top of the list,” says Henri de Villeneuve, founder of SAPA, an investment vehicle that supports the entry of European agribusiness groups into East and Southern African markets. To be successful in poultry, he notes, producers must be integrated and control the value chain, starting with the feed. The cost of the feed often accounts for about 70% of the price of the chicken. “Secondly, don’t produce chicken for local consumption close to the sea, because you could be impacted by imports from Brazil or elsewhere. Instead, produce chicken away from the coast as high inland transport costs create a barrier to entry for competitors,” De Villeneuve explains. “It also helps to be aware of abnormal situations or gaps for increased demand. In Angola, everyone wants chicken at Christmas. They will charter 747s to import chicken to meet local demand over this period; if you know this and are ready to act, it can be a great investment opportunity.” Agribusiness prospects in East and Southern Africa: Investor shares his insights. (How we made it in Africa)

Key Words: Trade Policy, Business, Africa

EAST AFRICA

Biden Administration Dampens Kenya's Hopes for Bilateral Trade Deal - The Biden administration's plans to review foreign trade policy and refocus it on America's economic recovery have thrown long-running free trade negotiations with Kenya into disarray. In a development that casts doubts on the future of a bilateral free trade agreement (FTA) with Kenya, United States Trade Representative Katherine Tai has informed Kenyan Minister of Industrialization, Trade and Enterprise Development Betty Maina of the U.S. government's plans to review trade negotiations started by the Trump administration in order to align them with President Biden’s goals.  “Ambassador Tai highlighted her ongoing review of the negotiations to ensure that any agreement aligns with the Biden-Harris administration’s Build Back Better agenda,” said Tai’s office in a statement following a virtual meeting with Maina. “The Biden administration will prioritize trade policies that have tangible benefits for all working Americans, families and communities." The statement added that while the two discussed the importance of the U.S.-Kenya relationship and strengthening ties between both countries, they agreed on the shared priority of supporting African integration and maintaining a sustained dialogue about key issues. The focus on supporting African integration was symbolic, considering that Kenya has come under criticism for undermining regional and continental integration efforts in its unilateral pursuit of foreign trade agreements. (The Maritime Executive)

Key Words: US, East Africa, Trade

Focus on TPA Prosperity: Tanga port to make Tanzania major fuel trading hub - TANZANIA is on course to double its handling capacity of petroleum products and begin supplying of the product to Zanzibar and neighbouring countries when expansion work at Tanga port is completed. Tanzania Ports Authority (TPA) which is handling the port is undertaking a number of projects in the country’s ports, as part of its efforts to improve service delivery and increase government revenues. TPA Director General, Deusdedith Kakoko (suspended) told former Vice-President Samia Suluhu Hassan, in Tanga recently that Tanzania is supplying six million tonnes of fuel and that the ongoing strategies will double the capacity as a result of winning the market in Zambia, Malawi and the Democratic Republic of Congo. (Daily News)

Key Words: East Africa, Business, Trade

Apply higher tariffs on non-EAC goods to grow industries -  The establishment of an effective Common External Tariff in the East Africa region will lead to the exponential growth of the manufacturing sector. A Common External Tariff (CET) is an import tariff or rate adopted and applied by countries within a common market. This tariff is ideally imposed on imports from non-member countries, with the intention of promoting industrialisation in the common region, enhancing the economic development of member States and liberalising regional trade. The EAC is reviewing its CET that, if adopted, will steer manufacturing as we grapple with Covid-19. It is important to highlight the progress made through trade agreements with the EAC. First is the establishment of the EAC Single Customs Territory to facilitate faster clearance and movement of cargo from the port of entry to destination. Second is the implementation of One-Stop Border Posts (OSBPs) aimed at facilitating cross-border movements through reduction of clearancetime. The third is the removal of several Non-Tariff Barriers (NTBs). However, the laxity to implement the EAC CET is straining the competitiveness of the sector and the economic growth. (Business Daily)

Key Words: East Africa, Business, AfCFTA

EAC women need help on cross-border trade revamp - WOMEN within the East African Community (EAC) are in need of facilitation support in cross-border trade after suffering huge loss due to lockdown and travel restrictions imposed by some regional member states. Following the outbreak of Covid-19 pandemic, some countries have restricted movements within and outside their territories, compelling women entrepreneurs to use informal routes. The Eastern African Sub-Regional Support Initiative for the Advancement of Women (EASSI) Executive Director Ms Sheila Mishambi noted that the impact of Covid- 19 on cross-border women traders across East Africa had been immense, forcing closure of at least 64.2 per cent of women-owned businesses. A report on the study carried out since the outbreak of the pandemic in the six member states indicates that around 21.2 per cent of the sampled women reported using informal routes to circumvent the existing Covid-19 measures in EAC partner states, with several narrations of tragic consequences. The report released by the TradeMark East Africa (TMEA), the study provides lessons and suggestions to EAC governments, donors, private sector and other stakeholders for future strategies to navigate the impacts of the coronavirus, from women surveyed and interviewed. (Dailynews)

Key Words: East Africa, Business, AfCFTA

WEST AFRICA

AfCFTA: Ghana to be a subsidiary hub for multinationals- Former Oxford Professor- Ghana by virtue of its geographical location has been placed among the biggest beneficiaries of the African Continental Free Trade Agreement (AfCFTA), a former Oxford University professor, Noel Tagoe has said. He is therefore urging the Ghanaian banking industry to team up with its counterparts on the African continent so as to fully benefit from the AfCFTA. Ghana, he projects, will become a subsidiary hub for many multinationals. But for that to be possible, he wants transportation infrastructure to be made a priority to facilitate trading activities. “You cannot import and export without transportation infrastructure. So for those of us who are at the coast, we need very good ports to be able to handle big projects; ensuring that ports work very well is important. Therefore those who are inland [landlocked countries] need other means of carrying freight such as rail, road or air infrastructure – these are pretty costly – there should be an air agreement over Africa,” he said. Continuing, Professor Tagoe said Ghana has started at a good point with the continental free trade by putting laws and policies in place to regulate trading activities and thus urged other African countries to emulate the country. (My Joy Online)

Key Words: AfCFTA, Business, West Africa

Maximising FG’s Delineation of Free Trade Zones at Airports - Recently the federal government announced the designation of five international airports as free trade zones to support the implementation of both the African Continental Free Trade Area (AfCFTA) and Single African Air Transport Market (SAATM) agreements. These airports include the Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano International Airport (MAKIA), Kano; Port Harcourt International (PHIA), Omagwa, and Akanu Ibiam International Airport, Enugu. The Minister of Aviation, Senator Hadi Sirika said that the facilities at these airports would be upgraded to meet international standards so that they would compete effectively with the best facilities in Africa. Industry observers said that the major challenge would be how to maximise the benefits of these free trade zones, noting that such facilities should provide a platform industrial development, boost in export and impetus to manufacturing. THISDAY spoke with a specialist in this area who is the Managing Partner, TMSS Logistics and former General Manager, Business Development, Federal Airports Authority of Nigeria (FAAN), Alhaji Nuhu Adam who pointed out the invaluable gains of a free trade zone, noting that if entrepreneurs and foreigners who wish to invest in the country, explore the offer given by the federal government, the free trade zones would become a game changer in business enterprises around these airports. (This Day)

Key Words: AfCFTA, Business, West Africa

SOUTH AFRICA

Strategy to add value to leather sector chain - The Zimbabwe Leather Sector Strategy (2021-2030) would be officially launched this Friday in Bulawayo with Vice President, Dr Constantine Chiwenga, billed to lead the proceedings. The leather sector is seen as a low-hanging fruit given the country’s competitive advantage in livestock and crop production, which are key sources of raw materials. The Government has earmarked the leather industry for structural transformation along the value chain perspective. Compact groundwork has already been undertaken with the Government, working closely with the private sector, pushing towards the revitalisation of the sector to become one of the biggest employment creators.   The Government approved the new Zimbabwe Leather Sector Strategy last November as part of measures to position the sector for increased domestic value addition and beneficiation so as to promote export-led industrialisation. The move buttresses comprehensive sectoral transformation ambition towards high value addition under the National Development Strategy (NDS1 2021-2025), a five-year blueprint that builds towards the broader upper middle-income vision by 2030. (The Herald)

Key Words: COVID-19, Trade, Zimbabwe

JUST IN: Ratification delays could stall AfCFTA, TFTA implementation - THE Council of Ministers of the Southern African Development Community (Sadc) has urged member states that have not yet signed and ratified the African Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa-East African Community-Sadc (Comesa-EAC-Sadc) Tripartite Free Trade Area (TFTA) to do so to allow for the implementation of the agreements. The call follows a recent virtual SADC Council meeting, which was chaired by Mozambican Foreign Affairs and Cooperation Minister, Verónica Nataniel Macamo Dlhovo, in her capacity as the chairperson of the council. While noting progress on the signature of the Comesa-EAC-Sadc TFTA, the regional leaders stressed that its signing and ratification was critical as it will pave the way for the successful implementation of the AfCFTA. AfCFTA entered into force on 1 January this year with the aim of eliminating over 90 percent of tariffs on goods and also to progressively liberalise trade in services in order to promote production of all goods. However, the volume of trade covered by the agreement’s rules of origin reported so far is lower than expected. (Chronicle)

Key Words: Regional Integration, Trade, SADC