Global trade is predicted to fall by a record 27% in the second quarter of 2020, according to the United Nations Conference on Trade and Development (UNCTAD), an organisation that tracks trade flows. This comes after the coronavirus pandemic distorted the supply and demand for products across the world leading to a severe decline in world trade. There has also been a slump in the export of cars, machine parts, and oil, among other global exports. Almost every category of goods is expected to suffer a fall in trade over the coming months, adding to a 3% decline in the first quarter of the year. According to UNCTAD, the report revealed a huge shock to the global economy from the Covid-19 pandemic. China was the first country to report a decline in trade ahead of a lockdown put in place by the authorities in Beijing in February. The country’s economy shrunk by 6.8% percent in the first quarter of this year. However, China also reported that her trade and Africa plummeted by around 14 per cent estimated at $41 billion in the first three months of 2020 compared to the same period in 2019, according to official figures released by China’s General Administration of Customs. The rest of the developed world followed in March when similar lockdowns were announced. Last week, the International Monetary Fund (IMF) warned that a previous forecast for an unprecedented decline in global GDP growth of 3% this year, the worst since the 1930s depression era, was looking optimistic. The...

The acting Executive Director of the International Trade Centre, Dorothy Tembo says the coronavirus pandemic could represent a risk for the Africa Continental Free Trade Agreement, but African leaders could also turn that into an opportunity for stronger collaboration if specific policies are fast-tracked. She joins CNBC Africa’s Kenneth Igbomor for more insight on this discussion.   Source: CNBC Africa

African countries, at least at the level of regional trade blocs, particularly EAC, SADCC, ECOWAS, will need greater joint efforts, beyond containing coronavirus, to resolve the many intractable problems that have always plagued African economies. As coronavirus engulfs the world and defies efforts to develop a vaccine or find a specific antiviral treatment, one of the questions that the spread of the pandemic has raised in the minds of many ordinary citizens, political leaders, public health strategists and journalists around the world, is whether the trick in fighting the deadly disease lies in cooperation between countries or in isolationism. There seem to be two main responses to this question. Some people say this is a global health crisis, touching more than 187 countries and territories, and as such, it would be fallacious for any country to think that it can go it alone and be successful in stemming the tide of the pandemic and its crippling ripple effects. Others contend that, countries being all different sizes, levels of wealth, types of government that run them and all manner of cultural and geographic boundaries that are defined by the size of their economies, trade, their local interests and a plethora of other considerations, it is already clear that each country sees itself as uniquely placed and wishes to protect itself by extending its physical distancing measures to include closing its doors to the rest of the world. EXPOSED ASPIRATIONS That question has been escalated to levels where the disease has exposed...

African countries, at least at the level of regional trade blocs, particularly EAC, SADCC, ECOWAS, will need greater joint efforts, beyond containing coronavirus, to resolve the many intractable problems that have always plagued African economies. As coronavirus engulfs the world and defies efforts to develop a vaccine or find a specific antiviral treatment, one of the questions that the spread of the pandemic has raised in the minds of many ordinary citizens, political leaders, public health strategists and journalists around the world, is whether the trick in fighting the deadly disease lies in cooperation between countries or in isolationism. There seem to be two main responses to this question. Some people say this is a global health crisis, touching more than 187 countries and territories, and as such, it would be fallacious for any country to think that it can go it alone and be successful in stemming the tide of the pandemic and its crippling ripple effects. Others contend that, countries being all different sizes, levels of wealth, types of government that run them and all manner of cultural and geographic boundaries that are defined by the size of their economies, trade, their local interests and a plethora of other considerations, it is already clear that each country sees itself as uniquely placed and wishes to protect itself by extending its physical distancing measures to include closing its doors to the rest of the world. EXPOSED ASPIRATIONS That question has been escalated to levels where the disease has exposed...

President Paul Kagame Tuesday asked his counterparts in the East African Community (EAC) to continue working together towards addressing the spread of COVID-19. Rwanda has deployed various measures which have effectively minimised the spread of COVID-19. As of March 12, Rwanda had 286 total cases of COVID-19, of which 153 have fully recovered. “We are very much interested in working with the region to see how to effectively manage the problem,” the Head of State noted. Recent cases that have been registered in the country are linked to truck drivers. The government proposed a solution, setting up temporary customs facilities in Kirehe District, from which goods can be cleared and drivers would drive back to Tanzania. “This is undoubtedly a difficult period for our region, and the entire world. We are working to minimise the economic hardship on our citizens, while protecting their health,” Kagame said. “But this will be more effective, as has been stated by Your Excellencies, if we act in concert with one another.” The President emphasised that it is critically important to maintain the flow of trade within the region, working hand in hand with the private sector. “So long as any member of our community is vulnerable, we are all at risk. Therefore, we must work very closely together in the months ahead, to face this challenge as a community of partners,” he said. The consultative meeting held virtually brought was chaired by President Kagame and brought together President of Uganda, Kenya and South Sudan. “We need...

Egypt's new Ambassador to the Tanzania and the EAC, Mohammed Yasser Ala'Eldeen El Shawaf, said his country was eager to boost trade and technical cooperation EAC Secretary General Amb. Dr Richard Sezibera with the Egyptian Ambassador to Tanzania and the EAC Mohammed Shawaf after the envoy presented his credentials to the Secretary General. Egypt has committed to improve ties with the East African Community. Presenting his credentials to the EAC Secretary General, Dr Richard Sezibera, at the EAC Headquarters in Arusha on Tuesday, Egypt's new Ambassador to the Tanzania and the EAC, Mohammed Yasser Ala'Eldeen El Shawaf, said his country was eager to boost trade and technical cooperation with the EAC Partner States. Welcoming the Egyptian ambassador, Dr. Sezibera described Egypt as an important trading partner for the EAC and praised its outstanding role in promoting negotiations for the Tripartite Free Trade Area (FTA) between the EAC, COMESA and SADC. Dr Sezibera noted that the Tripartite FTA when fully implemented would move the African Continent from the margins of Global Trade, adding that it was a good basis for the Continental Free Trade Area envisioned by the African Union. The Secretary General thanked Egypt for making a tariff offer to the EAC and went on to request Egypt to encourage the other member states to negotiate as a bloc instead of doing so as separate entities saying this would hasten the operationalization of the Tripartite FTA. Source: New Vision

Ahead of last week’s African Union ministerial meeting, prominent business leaders issued a letter to Heads of State to observe the 01 July deadline for the African Continental Free Trade Agreement to come into force. The signatories to the letter say that there is no legitimate reason to postpone the AfCFTA even if they understand that a staggered approach can be used given current circumstances. The letter was written in response to several media articles alleging that African Heads of State are considering to delay the implementation date. One of the signatories is Paulo Gomes, former Executive Director of the World Bank and Chair of the Executive Committee of AfroChampions. The AfroChampions network has been mandated by the African Union to coordinate private sector discussions around the AfCFTA. Gomes stated that the ministers had a duty to respect the current deadline. “We understand that certain parts of the AfCFTA are sensitive. The rules of origins and tariffs need time but we can start with trading of essential goods. That will send a strong message to the world that we are serious about the AfCFTA and to African businesses. The private sector is the biggest beneficiary of the AfCFTA and with supply chains being disrupted globally, it is even more urgent that we have a functioning system within the continent to create continental supply chains.” The signatories argued that governments were right to ensure that the immediate response was a health one. But the looming crisis is economic and the AfCFTA...

EAC ministers responsible for Health, Trade, Transport and EAC Affairs have directed partner states to support local production of essential medical products and supplies including masks, sanitisers, soaps, processed food, ventilators as part of efforts to combat Covid-19 in the region. Through a video conference held here at the weekend, the ministers further directed Partner States to facilitate farmers to continue farming activities during this pandemic and post Covid-19 period. he consultative meeting also directed Partner States to support agro-processing and value chains as an import substitution measure. The ministers also requested Finance dockets among the six EAC countries to establish special purpose financing schemes for small and medium enterprises, to cushion them from the negative effects of the deadly virus. The ministers’ directives was a response to information availed to them that the region’s key productive sectors are already experiencing a slowdown as a result of the global pandemic, with sectors such as agriculture, trade, manufacturing and industry, tourism, offline retail and catering being the worst affected. Among the negative impacts on the regional economy are a food crisis in East Africa and severe disruptions in manufacturing and industry value chains. On the flipside are beneficial developments such as; increased production of face masks in the region; growing popularity of online retail using e-commerce platforms; growing popularity of online entertainment, and increased Telecommuting and distance education. The consultative meeting also discussed progress made on the facilitation of the free movement of goods and services in the region; assessment of...

The first commerce under an Africa-wide free-trade pact will provide new stimulus to countries on the continent to overcome the economic damage of the coronavirus, even if it could be delayed for around six months, according to the most senior official of this agreement. The secretariat of the African Continental Free Trade Area is exploring the feasibility of moving talks involving more than 50 countries and real-time translation into four languages online. However, full border closures by some 30 nations aimed at limiting the spread of the virus is likely to restrict trade flows over the coming months, Wamkele Mene, the secretary-general said in an interview. While the agreement entered into force legally last year, protocols for trade in goods, including tariff concessions, need to be agreed for its implementation and commerce to start on July 1. Disruptions caused by the pandemic have set negotiations back by two and half months. “The consideration for postponement doesn’t mean that there no longer is political will and that there is no longer political commitment,” Mene said by phone from Addis Ababa on Wednesday. “We have to adjust to conditions that unfortunately nobody could have anticipated and we have to give the space to governments to solve the public health crisis as a matter of priority.” Customs Union Africa lags other regions in terms of internal trade, with intracontinental commerce accounting for only 15% of the total, compared with 58% in Asia and more than 70% in Europe. The agreement is meant to...

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