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Retool, Reset, Restart – From Crisis to Trade and Investment Opportunities:
DrawingLessons and Insights from COVID-19
Trudi [email protected]
24 November 2020
Lessons from COVID-19• COVID-19 has been a stark reminder of our
interdependence and vulnerabilities and marginalisation within ((and between) our economies and societies
• Importance of developing and diversifying our productive capacity (across agriculture, industry and services sectors)
• The pandemic push to digitisation
AfCFTA creates a new trade and integration reality ….
• on the continent – Parallelism is recognised in the AfCFTA Agreement (RECs … continue to exist, and will co-exist with the AfCFTA)
• and globally – new interest from our partners (US; EU; China?) and from private sector e.g. investors
Is there a COVID-19 dividend?And where do we find it – in the
AfCFTA?
AfCFTA is also a flagship project of the AU
Linking the AfCFTA to other Flagship Projects
• Trade facilitation (digitisation opportunity – don’t forget e-commerce) – LINK to BIAT
• Regulatory reform and harmonisation (matters of transport regulation – trade facilitation link) – LINK to PIDA
• Investment, competition and IP governance (essential to assure efficient and equitable distribution of gains) LINK to AIDA
• Governance improvements underpin all the above
Complementary Initiatives - Afreximbanksupporting AfCFTA
Afreximbank is rolling out Quality Assurance Centres to Support Compliance with International Standards and Technical Regulationshttps://www.afreximbank.com/afreximbank-rolling-out-quality-assurance-centres-to-support-compliance-with-international-standards-and-technical-regulations/The African Export-Import Bank (Afreximbank) has announced a $1billion AfCFTA Adjustment Facility, to support countries that may suffer revenue losses during the implementation process of the AfCFTAhttps://newafricanmagazine.com/19145/
Pan African Payments and Settlements System (PAPSS)
A centralised payment and settlement infrastructure for intra-African trade and commerce payments Developed in collaboration with the African Export-Import Bank, Afreximbank, PAPSS will facilitate payments (some informal trade may be channelled through this system too)
An alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost and risk-controlled payment clearing and settlement system.
Addressing cross-border payment challenges, and some forex challenges (perhaps)
And other developments – African Medical Supplies Platform
• African Medical Supplies Platform (AMSP) - launched by President Cyril Ramaphosa (2020 Chairperson of AU))
• Provides access to an African and global base of vetted manufacturers and strategic procurement partners to enable AU Member States to purchase certified medical equipment (e.g. PPE)
• Afreximbank facilitates payments; logistics partners including African national carriers and global freight forwarders will do delivery.
• Strong focus on supporting Africa’s manufacturers (Afreximbankhas developed a $3-bn Pandemic Trade Impact Mitigation Facility (PATIMFA), of which $200 m reserved to support food production & to manufacture & trade in medical equipment and supplies (AfCFTA – AIDA link)
Status Update- ratification of the AfCFTA
Regional Economic Communities (RECs) will continue to exist
These 8 regional economic communities are recognised by the African Union as building blocks for the African economic Community – they are defined as the RECs in the AfCFTA Agreement
ECOWAS
AMU
EAC
ECCAS
COMESA
SADC
IGAD
CEN SAD