News & Analysis: Trade

Africa’s diversified economies are set to rebound quicker than its extractive giants

“One of the many reasons, African economies have struggled has been the unprecedented capital outflows needed to help manage their economic lockdowns even as foreign direct investment all but disappeared. In 2020, FDI to Africa collapsed by 30%-40% and remittances fell by 9% leaving little room to maneuver for African finance ministers.”

via Quartz Africa

Trade in the Time of Pandemics

“To assure equity and affordability of access to the poor and rich alike, to save lives, and protect everyone, flexibilities in current WTO rules governing trade in medical products during a global public health emergency should be used to the maximum extent possible.”

via Think Global Health

Is Africa Wasting the Pandemic-Induced Economic Crisis?

“In many African countries, the economic response to the crisis so far appears to have been broadly less consistent than the health response. For mitigation measures to be stronger and more effective, and for sustained recovery to take place, governments, central banks, and regional institutions will need to make tough policy choices, promote coordinated and collaborative policy implementation, and embrace bold and innovative reforms.”

via Center for Global Development

2021 needs to be Africa’s ‘focus on the money’ year

“Recent events show that Africa’s dependence on external sources of finance is no longer sustainable. It is time for the continent to develop its own lending institutions.”

via African Business Magazine

The COVID-19 Pandemic is Killing Zimbabwe’s Once-thriving Cross-border Trading Networks

Policies meant to control the spread of COVID-19 have had dramatic negative impacts on Zimbabweans involved in cross-border trade, including in Mutare, a city east of Harare on the border with Mozambique.

via COVID-19 Africa Watch

Digital Disruption in Africa – Mapping Innovations for the AfCFTA in Post COVID-19 Times

“The rise in ecommerce particularly with the onset of COVID-19, signals a strong foundation upon which to leverage 4IR to support digitised inter-regional trade, large scale industrialisation, and the creation of a vibrant African economy.”

via SAIIA

Spain, Morocco Plan to Promote Post-COVID-19 Economic Recovery

“Spanish Minister of Foreign Affairs Arancha Gonzalez Laya said on Tuesday that Spain and Morocco are engaged in promoting their economic recovery. Although the post-pandemic economic recovery is one priority for the two countries, Morocco and Spain share formal agreements in several fields, such as security.”

via Morocco World News

Centum defers $27m investment plans as COVID-19 slows valuation

“Centum Investments Ltd has shelved negotiations for a US $27 million private equity investment over valuation concerns as the COVID-19 pandemic slows activity across emerging economies. The firm, listed on the Nairobi Securities Exchange and cross-listed on the Uganda Securities Exchange, is seeking to invest close to US $54 million in shares of private companies over five years.”

via The East African

Mo Ibrahim: Why Africa must emerge more resilient from the COVID-19 crisis

“Ibrahim warned that 2020 has brought not only the COVID-19 crisis to Africa, but also worrying signs about the state of governance on the continent. He reported that his foundation’s latest Ibrahim Index of African Governance report showed a decline in its measures of good governance for the first time in a decade, even alongside optimism about places such as Sudan that are undergoing democratic revivals.”

via Atlantic Council

Nigeria: Businesses need lower interest rates to kick-start recovery

“Restrictions on movement in Nigeria made it much more expensive to move equipment around. Some clients were short of cash and unable to make advance payments. These included government projects relying on public funding.”

via The Africa Report