Retool, Reset, Restart – From Crisis to Trade and Investment Opportunities:

DrawingLessons and Insights from COVID-19

Trudi Hartzenbergtrudi@tralac.org

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