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By Mduduzi Mbada,



In contributing towards the realisation of the kind of society we want, as articulated in the Freedom Charter and our constitution, in February 2020, we presented the Growing Gauteng Together (GGT2030) plan of action that will endeavour to deliver the province of our dreams in terms of the economy and social security. The GGT2030 is about taking forward the implementation of the ten-pillar programme of transformation, modernisation and reindustrialisation of the Gauteng economy.&nbsp;



The GGT2030 plan of action also seeks to develop a sustainable capable state, where millions of people will be empowered to take charge of their destiny. It is about building a sustainable future for all and a society characterized by equality, social justice, prosperity, no crime and gender-based violence and improving the quality of life of its citizens. This is a society free of any form of discrimination and injustice.



The development of the GGT2030 Plan of Action was scientific.&nbsp; It was guided by the Indlulamithi Scenarios 2030, specifically, the Nayi Le Walk scenario, which identities social and economic drivers that can significantly improve the lives of citizens with pro-poor income distribution, inclusive growth, and meaningful social cohesion.



The modelling and development of GGT2030 policy interventions were also done using SA-Linked National-Provincial – which is linked macro-micro model for South Africa developed by the Applied Development Research Solutions (ADRS), which considers the what-if question.&nbsp;



Before the Covid-19 pandemic, we had to analyse major trends such as the demographical shifts that were already taking place globally; Inequality and urbanization which were on the rise; the Fourth Industrial Revolution (4IR) that was already reshaping the way human beings live and work and climate change that was cited as the new existential threat to all of humanity. The importance of understanding global trends is necessary because any successful nation or state should develop measures to anticipate and respond effectively to these trends.



This includes developing responses to the novel COVID-19 pandemic, which has resulted in a global paradigm shift and fundamentally changed life as we have come to know it. The COVID-19 pandemic has brought to the fore the issues of poverty and inequality in both the developed and developing countries. It has, therefore, become imperative for countries to respond not only to the health challenges presented by the Covid-19 pandemic but to purposefully address issues of poverty, inequality and developmental imperatives in their respective regions in response to the pandemic.



The COVID-19 pandemic has brought trauma and shock to the global system and South Africa is not immune. Gauteng as the economic hub of the country, contributing almost 34% to GDP, has had to drastically adjust and lead a comprehensive response to the impact of the COVID-19 pandemic.&nbsp;



True to the nature of pandemics, like volcanos and earthquakes, we know they will happen, but we do not know when, where, and how they will occur. In response to the challenges brought by the COVID-19 pandemic, we have remodelled the GGT2030 plan of action as part of the reconstruction and recovery of our economy. The remodelled GGT2030 is a response to both the social and economic challenges brought on by COVID-19 pandemic. It was done by understanding three scenarios related to the spread of the COVID-19 pandemic specifically in SA. Firstly, under the Low Scenario, about 0.5% of South Africans (i.e. about 300,000) will be infected by COVID-19. Secondly, the Moderate and High Scenarios consider the possibility of COVID-19 infecting close to 1% and 2% of the population (about 600,000 and 1,200,000) respectively. The Low and Moderate Scenarios assume that the pandemic will be contained during the third quarter of 2020, and the economy will begin to recover during the fourth quarter of 2020.&nbsp;



The modelling exercise assisted in introducing new bold policy measures to curb any further social and economic distress in society. Specifically, this includes the introduction of an unemployment grant for all those who have become unemployed, it also includes making public works the employer of last resort for the unskilled-unemployed. This is because, in 2020, EPWP if expanded it will cater for 35% of the unskilled unemployed before expanding the service to all unskilled-unemployed by 2030, with the increase of the daily rate to R 160. We should also introduce a new caregiver grant of R 500, which is allocated for family members that take care of a child who receives either a child support grant or a care dependency grant and an immediate increase of the monthly child support grant to R 500.



With regards to Macro-Economic Policy Reform, there is a need to refocus and realign policies to support growth and employment as evidenced by the easing of monetary policy. This includes a rise in current government expenditure, an increase in investment to stimulate economic services and social infrastructure. This will also require an improvement in the ease of doing business in the province, and an increase in labour productivity of some sectors, the ten growth sectors and an increase in competitiveness in some sectors such as the financial services sector, real estate and business services.



Therefore, the re-modelled GGT2030 also brings the possibility of an expansion of the tourism sector, growth in the trade, catering and accommodation services sector, growth in exports for the agricultural sector, a rise in labour productivity and increased competitiveness of strategic sectors.&nbsp;



It also brings into sharp focus the need to improve industrial policy levers s such as industrial financing incentives as an instrument that can potentially drive industrialization and potentially reduce the trade deficit in the province. In the next five years, we will spend R60 billion &#8211; infrastructure spend to create 100 000 jobs and develop 50 black industrialists. Through Industrial Financing Incentives, total annual investment in the manufacturing sector will increase by&nbsp; R 10 billion during the next 11 years; Special Economic Zones (SEZ) and African integration programmes, will increase total exports by an additional 1.5% after 2020 and catalyse economic growth, employment opportunities and promote entrepreneurship; and the government’s Proudly SA and localisation policies will gradually reduce the import dependency ratios of some sectors by 20% over the next 11 years. Specifically, the Tshwane Automotive SEZ will be one of the biggest since 2010, with a supplier park and a factory producing 200,000 vehicles a year for the Ford Motor Company by 2022. This will be made possible with a scale of investment of over R20 billion by the private sector matched by R3.7 billion by government. The R1.7 billion spending on the build phase alone will be dedicated towards SMMEs, sourced from the Tshwane area and Gauteng at large.&nbsp;&nbsp;



The collaboration of government with the private sector, through the Public-Private Growth Initiative (PPGI), is another initiative that can increase investment both provincially and nationally. This will be achieved through the increased private sector increased investment in the South African economy by R 500 billion over the next 11 years, as their contribution to the broader socio-economic development of the country. With Public Investment Cooperation (PIC) investing R 20 billion in the manufacturing sector for the period between 2021 and 2025 (5 years) will contribute to growth and employment.&nbsp;



We are also working with the Development Bank of South Africa (DBSA) and the Presidency infrastructure division to unlock development in key nodes of the City Region. By funding the bulk infrastructure needed in the post-apartheid cities such as Lanseria, Vaal River City and the Western Corridor, wherein we are investing in an Agro-processing SEZ, as well as implementing accompanying investments in the revitalisation of 15 industrial parks, 12 Agro-Parks and five agro-processing facilities we envisaged significant growth and employment prospects.



Overall, the roadmap to inclusive growth in the province should be deliberate in its efforts of targeting the poor and improving service delivery services to improve the living conditions of poor families in the province. This should also lead to improvements in total employment, the decline in inequality as measured by the Gini coefficient, a decline in government expenditure relative to its debt ratio and improved profits for businesses.&nbsp;



Under the modelled six-pillar policy scenarios, it is projected that the poverty rate will decline by almost 50% from 28% to 15% and that there will be a significant improvement in the delivery of social services (education, health, land reform, housing, etc.) and economic infrastructure across the country (roads, bridges, transportation, etc.) This will particularly improve the living conditions of poor families.



When the GGT2030 is fully implemented, the size of the economy is expected to more than double over the next 11 years, from its current size of about R 1 trillion to a little above R 2 trillion, in 2010 prices. The unemployment rate will be reduced by almost two-thirds from the 36% (Mild COVIT-19 scenario) and 42% (Severe Scenario) in 2020 to 13% by 2030. Per Capita GDP is expected to increase by 70% in real terms (from about R 68, 000 currently to about R 115, 000 in 2030. The provincial poverty rate is expected to reduce by more than 40% over the next decade from 20% (Mild Scenario) and 21.3% (Severe Scenario) in 2020 to 11.5% in 2030. The high-income inequality in the province, measured by the Gini index, is expected to decline by 12 percentage points over the next 11 years. The decline will be from its current value of 70% to 58% by 2030. This will be achieved through a 4 billion per annum spend in buying goods and services from 2000 township enterprises, support 50 black industrialists, supporting 50 emerging black farmers and 20 black agro-processors and supporting of 500 cooperatives in the care economy and the creation of 250 000 sustainable and decent jobs.&nbsp;



The implementation GGT2030 with discipline, and the right kind of skills, including investing in knowledge as a strategic resource, will contribute to the South Africa of our dreams by 2030, it is also plan of action that will contribute towards a South Africa that truly belongs to all who live in it by 2055, the centenary of the Freedom Charter, where poverty and inequality are not the key defining features of social relations but by March towards a prosperous and united South Africa.







Mduduzi Mbada, Head of Policy, Gauteng Provincial Government, Office of the Premier

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OPINION: Growing Gauteng Together plan remodelled as part of reconstruction and recovery of the economy Post-COVID-19.

Africa&#8217;s biggest airport is revving back into life as COVID-19 restrictions ease.



South Africa&#8217;s OR Tambo International Airport, near Johannesburg, expects 210,000 flights to take to the spring skies over Africa, in September, as the country eases the lockdown to level two. This is merely 12% of the pre-COVID-19 traffic at the airport; in May a mere 575 passengers left OR Tambo International Airport on repatriation flights. 



Airlines &#8211; many of them on their knees as COVID-19 restictions virtually shut down international travel &#8211; have booked 2500 slots for planes to take off and land in September. 



“We believe that we are on the road to recovery and that demand will accelerate with Spring weather and growing trust that we are applying health protocols rigorously and consistently,”says General Manager of OR Tambo International fBongiwe Pityi-Vokwana







<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/04/hqdefault-100-e1598559389559.jpg" alt="" class="wp-image-369765" width="695" height="958" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/04/hqdefault-100-e1598559389559.jpg 249w, https://cms.cnbcafrica.com/wp-content/uploads/2020/04/hqdefault-100-e1598559389559-218x300.jpg 218w" sizes="auto, (max-width: 695px) 100vw, 695px" /><figcaption>How Airlines Park Thousands Of Planes</figcaption></figure>



Ninety-five per cent of flights are taking off on time, but the few delays are largely down to passengers forgetting to complete their pre-flight health checks.



“We have found that about 30% of travellers arrive at the airport without having completed the required health questionnaire. This can cause unnecessary delays while people fill in the questionnaire. We appeal to passengers to ensure that they complete the form before they leave for the airport,” says Bongiwe Pityi-Vokwana



The airport’s response to the pandemic included mass screening of 6 000 employees in April and May, which was made possible by the collaboration of the National Department of Health. Since Level 5 of the lockdown, a total of 110 employees out of 38 000 normally working around the airport have tested positive for Covid-19. The airport ecosystem, which has had a 100% recovery rate,currently has six active cases where the individuals are in isolation.



Despite the rigours of the lockdown, OR Tambo International Airport saw 1 555 repatriation and evacuation flights that carried more than 50 000 passengers since April.

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How Africa’s biggest airport is revving up on the runway

CHICAGO (Reuters) &#8211; United Airlines (<a href="https://www.reuters.com/companies/UAL.O">UAL.O</a>) is preparing for the biggest pilot furloughs of its history after announcing on Thursday the need to cut 2,850 pilot jobs this year, or about 21% of the total, without further U.S. government aid.



Airlines, reeling from the devastating impact of the novel coronavirus pandemic on air travel, have asked the U.S. government for another $25 billion to cover employee payroll through March.



The first tranche, which banned any job cuts until Oct. 1, expires at the end of September, but talks in Washington have stalled as Congress has struggled to reach agreement on a broader coronavirus assistance package.



United’s planned cuts, released in a memo to employees and shared with the media, would run between Oct. 1 and Nov. 30. They are significantly higher than the 1,900 announced earlier this week by Delta Air Lines (<a href="https://www.reuters.com/companies/DAL.N">DAL.N</a>) and 1,600 by American Airlines (<a href="https://www.reuters.com/companies/AAL.O">AAL.O</a>).



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Facing a shrinking industry in the years ahead, airlines have generally tried to mitigate the number of forced job cuts by offering early retirement or voluntary departure deals, but some carriers’ packages have been more attractive than others.



“While other airlines have chosen to reduce manpower through voluntary means, it is tragic that United has limited those options for our pilots and instead has chosen to furlough more pilots than ever before in our history,” the union representing United’s 13,000 pilots said in a statement.



United said the numbers were based on current travel demand for the remainder of the year and its anticipated flying schedule, which it said “continues to be fluid with the resurgence of COVID-19 in regions across the U.S.”



Chicago-based United is more exposed than its peers to international travel, which is expected to take longer to rebound from the pandemic.







United, which has warned that 36,000 jobs are on the line across the company, has not yet provided final furlough numbers for other work groups.



American said on Tuesday it was cutting 19,000 jobs in addition to voluntary reductions that will see the company’s workforce shrink by about 30%.



United’s announcement comes on the final day of the Republican National Convention, where President Donald Trump will try to regain momentum against the backdrop of a pandemic that has killed over 180,000 Americans and produced a recession that has resulted in the loss of millions of jobs.

United Airlines announces biggest pilot job cut in its history

JOHANNESBURG (Reuters) &#8211; South Africa’s rand was slightly weaker early on Thursday, ahead of the release of the producer price index (PPI) which will give more clues about inflation dynamics in Africa’s most industrialised economy.



Many analysts expect a rate-cutting cycle by the South African central bank to be over, but there is still a slim chance of further rate cuts in the remainder of the year if inflation pressures remain contained.



At 0632 GMT, the rand traded at 16.9250 versus the dollar, 0.3% weaker than its previous close.



PPI data is due around 0930 GMT and is forecast to show an increase of 1.7% in July, following a 0.5% increase in June.



The consumer price index rose 3.2% last month, data showed on Wednesday. The rand fell after that release as some traders felt it left the door open for the South African Reserve Bank to cut its repo rate again.



The SARB has already cut rates by 300 basis points this year in response to a collapse in inflation and weak economic projections linked to the COVID-19 pandemic.



Government bonds were also a touch weaker early on Thursday, with the yield on the 2030 bond rising 3 basis points to 9.325%.

ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African rand dips before producer price data

HOUSTON (Reuters) &#8211; Hurricane Laura strengthened on Wednesday as it churned over evacuated oil-production platforms in the U.S. Gulf of Mexico and took aim at the energy industry’s refining hub along the Texas/Louisiana coast.



The storm is forecast to become a Category 4 hurricane with heavy rains and catastrophic, 130 mile-per-hour (209 kph) winds that will drive ocean waters up to 30 miles (48 km) inland, forecasters said.



A half a million people in the two states fled the storm, clogging highways out of the area before it makes landfall at about midnight (0500 GMT Thursday).



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



<ul class="wp-block-list"><li><a href="https://www.reuters.com/article/us-storm-laura-energy-colonial/colonial-pipeline-to-continue-normal-operations-ahead-of-hurricane-laura-idUSKBN25M2BW">Colonial Pipeline to continue normal operations ahead of Hurricane Laura</a></li></ul>



The storm resembles 2005’s Hurricane Rita, which caused more than $18 billion in damages and killed more than 120 people, many during a hurried Texas evacuation.



Laura’s 12 mph to 15 mph race to the coast is driving a wall of water, said Jim Foerster, chief meteorologist at DTN, an energy, agriculture and weather data provider.



“The storm surge is going to be catastrophic, easily a 10- to 15-foot (3-4.6 m) surge on top of five to 10 inches (13-25 cm) of rain,” near the storm’s center, said Foerster.



The wall of water presents an “unsurvivable” surge that could stretch as far as 30 miles from the coast, the NHC said.



Laura’s path spares Houston, the nation’s fourth largest city, but bring a deadly combination of 120 mph winds, blinding rainfall and storm surge to the Texas/Louisiana state line, Foerster said.



The storm track spans Port Arthur, Texas, to Lake Charles, Louisiana, an area with a half-dozen large oil refineries and natural-gas processing plants. Lake Charles, on the eastern side of the storm eye wall, could see an at six to nine foot wall of water, Foerster said.



The ports of Lake Charles, Louisiana, and Houston, Beaumont, Port Arthur and Orange, Texas, were closed to vessel traffic on Wednesday, the U.S. Coast Guard said



Already, nine oil-processing plants that convert nearly 2.9 million barrels per day of oil into fuel, and account for about 15% of U.S. processing were reducing production or shutting down.



Chevron Corp (<a href="https://www.reuters.com/companies/CVX.N">CVX.N</a>), Exxon Mobil Corp (<a href="https://www.reuters.com/companies/XOM.N">XOM.N</a>) and Motiva Enterprises [MOTIV.UL] had halted or reduced operations at oil refineries in the area on Wednesday.



Oil producers on Tuesday had evacuated 310 offshore oil facilities and shut 1.56 million bpd of crude output, 84% of Gulf of Mexico’s offshore production.



As the storm prepared to strike the Texas/Louisiana border, refiners farther west were expecting to ride it out.Slideshow&nbsp;(2 Images)



Marathon Petroleum Corp (<a href="https://www.reuters.com/companies/MPC.N">MPC.N</a>) and LyondellBasell (<a href="https://www.reuters.com/companies/LYB.N">LYB.N</a>) plan normal production at their Houston-area refineries, according to people familiar with the matter. Marathon did not have an immediate response. LyondellBasell did not immediately reply to a request for comment.



Exxon said its Baytown, Texas, plant outside of Houston, continued to run but was taking precautions in event conditions worsen.

Stronger Hurricane Laura aims at heart of U.S. oil refining industry

WASHINGTON/CHICAGO (Reuters) &#8211; President Donald Trump is weighing executive action to avoid massive layoffs at U.S. airlines if Congress fails to agree a fresh coronavirus stimulus package, White House Chief of Staff Mark Meadows said on Wednesday.



His remarks came a day after American Airlines (<a href="https://www.reuters.com/companies/AAL.O">AAL.O</a>) said its workforce will shrink by 40,000, including 19,000 involuntary cuts, in October without an extension of government aid as the pandemic continues to devastate travel demand.



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“If Congress is not going to work, this president is going to get to work and solve some problems. So hopefully, we can help out the airlines and keep some of those employees from being furloughed,” Meadows said in an interview with Politico.



He suggested, however, that assistance would require legislative action, saying: “It would take a CARES package, I believe, to do it,” referring to the $3 trillion coronavirus relief package that Congress passed earlier this year.



Airline shares were lower in early trading .DJUSAR.



U.S. airlines received $25 billion in payroll aid under the CARES Act to protect jobs through October and the industry has lobbied for another $25 billion to keep workers employed through March, when they hope travel demand will be stronger.



Meadows said he had spoken with officials from American, as well as from United Airlines (<a href="https://www.reuters.com/companies/UAL.O">UAL.O</a>) and Delta Air Lines (<a href="https://www.reuters.com/companies/DAL.N">DAL.N</a>).



“We will continue to work with the administration and our bipartisan supporters in Congress and hope to come to a resolution in a timely fashion,” American said in a statement.



United has warned that 36,000 jobs are at risk. Delta said Monday that it would furlough 1,941 pilots but has not detailed cuts across other employee groups.



“Executive orders will not save our jobs,” said Sara Nelson, international president of the Association of Flight Attendants-CWA told union members at 19 airlines including United.



“It will definitely take Congress acting to keep all of the job requirements in place,” she said on Twitter, while adding: “Good to see WH wants to restart talks.”



Talks between Meadows, Treasury Secretary Steven Mnuchin, House of Representatives Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer ended in early August, with top Democrats and the administration far apart on new legislation.



“Unfortunately, COVID-19 continues to spread and wreak havoc on our industry, and demand for air travel has not returned as anticipated,” the main industry lobby A4A said in a statement, pointing to a challenging fall as airlines prepare to cut jobs and service without additional aid.

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Trump could act unilaterally to avoid U.S. airline layoffs, White House says

JOHANNESBURG (Reuters) &#8211; South Africa’s headline consumer inflation quickened to 3.2% year-on-year in July from 2.2% in June, data from Statistics South Africa showed on Wednesday.



On a month-on-month basis, the consumer price index was at 1.3% in July from 0.5% in the previous month.



Core inflation, which excludes prices of food, non-alcoholic beverages, fuel and energy, was also 3.2% year-on-year in July compared with a rate of 3.0% in June. On a month-on-month basis core inflation rose, to 0.7% from 0.3% previously.

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South Africa consumer inflation rises to 3.2% y/y in July

GABORONE, Botswana (Reuters) &#8211; The Botswana government said there was no guarantee that it would be able to renew a new 10-year sales agreement with De Beers before the end of December, when the current one expires, as the coronavirus pandemic has delayed negotiations.



“The ideal situation would be to end the talks by December but there are no guarantees that will happen,” said Mmetla Masire, Permanent Secretary in the Ministry of Minerals told Reuters in an interview late on Monday.



The deal is necessary for the Debswana Mining Company, jointly held by the world’s biggest producer De Beers and the Botswana government, as it provides the country with around two-thirds of its foreign exchange and makes up a fifth of its GDP.



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For De Beers, a new deal would mean another 10 years of clarity on the terms of its revenue stream from a country from where it sources 70% of its diamonds and 90% of its sales.



The wealth from diamond mining has helped transform the country from primarily a agri-based economy to one of Africa’s richest countries.



A delay would set back President Mokgweetsi Masisi’s efforts to boost a fledgling diamond polishing and cutting industry and create jobs in a country of 2.2 million with high unemployment.



Masire said the government had resumed talks for a new deal, but travel restrictions have kept the progress slow.



In 2011, De Beers agreed a deal to transfer its global sightholder sales, which accounts for 90% of its total diamond sales, from London to Gaborone, creating thousands of jobs and investment in the southern African country.



Botswana’s government would want a higher allocation of diamonds produced by Debswana for sale from the current 15% agreed in 2011, or get a larger share of rough stones, said Avi Krawitz, an analyst from Israel-based diamond information provider Rapaport.



“This will be a sticking point for De Beers,” he said.



Masire declined to divulge specific terms being negotiated in the talks.



De Beers, a subsidiary of Anglo American Plc, is an important business division for its parent contributing a fifth of its revenue. De Beers has not responded to an emailed request for comment sent on Monday.

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Botswana government says no guarantee on De Beers sales deal by end-2020

As several African countries continue to grapple with spikes in Covid-19 cases, it remains difficult to foresee the Africa that will emerge from the virus. Does the pandemic present an opportunity “to reset Africa”, as suggested by the Nigerian entrepreneur Tony Elumelu, or will the continent’s leaders be faced with the same long-term challenges that have simply been exacerbated by the pandemic?



For months, Africa had escaped relatively unscathed as the global centre of the virus shifted from Asia to Europe to North America and South America. Yet we now know that the number of African infections and deaths is still rising. According to the World Health Organization back in July, 22 of Africa’s 54 countries found that cases had more than doubled in little over a month.



While the primary concern for policymakers should be the health of their citizens, the economic impact of Covid-19 is plain to see. The African Development Bank Group has projected that Africa’s GDP is to contract in 2020 by 1.7 percent in the baseline scenario, which assumes a substantial impact of the virus but over a short duration. The collapse in oil prices has hit Africa’s second and third largest economies &#8211; Nigeria and Angola &#8211; hard, while the collapse of tourism and a drop in demand for agricultural exports to Europe have devastated economies from Kenya and Ethiopia to Cote D’Ivoire, Mauritius and the Seychelles.



Across the globe, the pandemic has damaged international supply chains and many are in agreement that the future is, by necessity, regional. It is clear that economies are having to look inwards, considering how to best support local industry in order to navigate the impact of the ongoing pandemic. While the coronavirus may be a new phenomenon, supporting entrepreneurship and stimulating the diversification of African economies has been a long-term challenge.



As mentioned, the Nigerian entrepreneur Tony Elumelu has said “the pandemic presents an opportunity to reset Africa, create employment and eliminate poverty”, and that the continent must “embrace the new normal”, with disruption in every sector from the digital economy to logistics. He suggests that there is now a “unique opportunity for a united Africa as a strong regional bloc acting in a coordinated fashion”.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-rotated.jpg" alt="" class="wp-image-379931" width="684" height="913" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-rotated.jpg 480w, https://cms.cnbcafrica.com/wp-content/uploads/2020/08/Peter-Burdin-1-225x300.jpg 225w" sizes="auto, (max-width: 684px) 100vw, 684px" /><figcaption>Peter Burdin -&#8220;If a transformation is to take place, it will require investment and training across the board.&#8221;</figcaption></figure>



The fact that the launch of African Continental Free Trade Area has been delayed challenges Elumelu’s plea for strong regional coordination, however, we have seen some examples of a coordinated approach between African nations that does provide significant hope.



Cameroon has sent planes to the Democratic Republic of Congo to help that country get medical support its more remote areas, the African Development Bank has denoted $4 million to South Sudan to bolster its fragile health system, and the African Union has launched a medical supplies platform for all 54 African countries. This is designed to make medical supplies, test kits and protective equipment available across the continent.



Something extraordinary is needed, and there are growing calls for investment to encourage African SMEs to create local supply chains in communities to boost employment. SMEs currently account for 90% of all businesses in Africa. If a transformation is to take place, it will require investment and training across the board. SMEs need support, training and financing to deliver solutions for manufacturing, healthcare, energy, digital innovation, infrastructure, agriculture and other sectors.



It is programmes such as the Citizens Entrepreneur Development Programme launched by the Economics Association of Zambia which exemplify the type of initiative that will be needed across Africa in the post-Covid world. In partnership with investors, including the Zambian business African Green Resources chaired by Zuneid Yousuf, and local NGOs, the independent programme has mobilised $1 million to support small businesses through the provision of funds, skills, and access to markets. The scheme hopes to bring economic opportunities to all parts of Zambia.



It is obvious that much more is needed across the continent to stimulate growth, and while it remains extremely difficult to say with any great confidence that economies will be “reset” following the pandemic, it is clear that that when we do reach the other side it cannot simply be business as usual. Long-term challenges remain, and it is true that they have been compounded by the events of 2020, but I remain an optimist.



 Peter Burdin, is the BBC&#8217;s former Africa Bureau Chief

Peter Burdin

OPINION:  Post Covid-19: Is this an opportunity to “reset” African economies?

LONDON (Reuters) &#8211; The International Monetary Fund said on Monday central banks’ independence must be maintained, in a statement in response to a change of Zambia’s central bank governor.



Zambian President Edgar Lungu on Saturday dismissed central bank governor Denny Kalyalya and replaced him with former deputy finance minister Christopher Mphanza Mvunga.



“Without credible institutions and sound policies, sustained economic growth and much needed improvements in living standards will not be possible,” the IMF said.

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IMF says central banks must be independent after change of Zambia’s governor

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LONDON (Reuters) &#8211; When the death of George Floyd forced companies to reflect on why there were so few Black people in their senior ranks, top banks and private equity firms pledged to do better.



But one corner of the finance world &#8211; the hedge fund industry &#8211; made fewer public statements.



Hedge funds are mostly small firms employing people who first made their names in banking. They say their relatively small size and the talent pool they usually hire from makes rapid progress increasing ethnic diversity challenging.



“Those who land in hedge funds are those who have been successful within the banking system in general, so the onus is really on banks creating&nbsp;the talent that will become hedge fund managers,” said Alain Nkontchou, co-founder of Enko Capital who worked on JPMorgan’s proprietary trading desk and at BlueCrest.



Black staff in the industry said there has been little progress in hiring and promoting Black people in 20 years.



A report in 2018 by think tank New Financial found the asset management industry in London as a whole had just 12 Black fund managers. &nbsp;



“I hoped we’d be further on today than we are,” said Marcus Gibbs, head of operations for Europe at an American hedge fund platform, who began working in the industry in 2001 and said he is regularly the only Black person in the room at industry events.



In the United States, 2019 regulatory data showed 8.9% of hedge fund firms were owned by ethnic minorities, including Hispanic, Black, Asian and Native Americans, and they hold just 2.7% of assets.



“I don’t see any Black money managers, people making investment decisions, or Black salespeople,” said Ansumana Bai-Marrow, chief compliance officer at Cairn Capital.



Hedge fund industry consultants said that since Floyd’s killing some hedge fund investors &nbsp;&#8211; particularly among&nbsp;U.S. pension funds &#8211; are asking about diversity.



“In the past, maybe 5% of our clients would engage us on this, now it’s more like a quarter,” said Chris Redmond, head of manager research at consultancy Willis Towers Watson, which advises investors on hedge funds.



“Investors are asking who is on our list of hedge funds who have had good racial and gender diversity.”



Albourne Partners, another adviser to hedge fund investors, also said more clients wanted to know about diversity.



Albourne launched a survey on Aug. 17 asking hedge funds for data on employee and ownership composition, including ethnicity, gender and sexuality, which the consultancy can use to provide information for investors.



“We have seen increased concern and awareness from our clients on this issue over the last few months,” Albourne CEO John Claisse said.



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Reuters asked 30 London-based hedge funds for data on the number of Black staff they employ.



Some funds said they did not disclose diversity data while 11 funds declined to comment, including Lansdowne Partners, Winton Group and Brevan Howard.



TT International Asset Management said that of 89 TT employees, four were Black and one of the four was involved in managing money. The firm also said it plans to start unconscious bias training.



A spokeswoman for Man Group, Europe’s largest hedge fund, said the company does not disclose diversity data but runs a Black employees network and supports #talkaboutblack, a campaign to improve diversity in the City of London.



Black people working at hedge funds told Reuters they have faced an array of negative experiences in the industry.



“I’m going to a lunch, I’m wearing a suit like everyone else and someone comes to me and asks me where the cloakroom is,” said one employee at a fund who did not allow him to speak publicly.



Another senior Black person at a hedge fund who did not wish to be named remembered being repeatedly asked by a colleague to fix his computer problems.



“The guys of my generation are broadly tired. We’ve seen all of this stuff &#8230; when you’re in a conference with your peers and some guy comes up to you and says how do I get to x and y,”.



Daryl Wright, executive board member and head of product &amp; investment management at Lumyna Investments, a platform for hedge funds and asset managers, said the problem was an unconscious association between Black people and negativity.&nbsp;



“I think that’s really what comes into some of the issues we see in the hiring processes, promotions and the way people get treated day to day in the industry.”



Senior hedge fund industry figures said while change has to be led from the top, it needs to start at the bottom.



“It’s quite difficult to address that underrepresentation when there is no middle layer or senior layer to start with,” said Jonathan Sorrell, president of Capstone Investment Advisors.



Sorrell helped to launch a programme this week where eight hedge funds, including CQS, Man Group, Brevan Howard and TT International, joined more than 80 firms in the asset management industry in committing to each hire at least one Black intern. It aims to boost the number of Black portfolio managers in the long-term.



Hedge fund industry group AIMA said it is engaging with Black professionals and with hedge fund leaders who want to take action specifically on Black representation.



For Gibbs, the hope is that change will unfold much faster than it has done since he started out.



“Now is the time to act,” he said

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Hedge funds in long haul to tackle lack of Black money managers

LONDON (Reuters) &#8211; The COVID-19 pandemic has forced sovereign wealth funds to think the previously unthinkable.



With prime office blocks lying empty around the world, hotels half-vacant and retailers struggling to stay afloat, the funds are retreating from many of the real estate investments that have long been a mainstay of their strategies.



Sovereign wealth funds (SWFs) invested $4.4 billion in the sector in the first seven months of 2020, 65% down from the same period a year ago, according to previously unpublished data provided to Reuters by Global SWF, an industry data specialist.



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The nature of property investments is also shifting, with funds increasingly investing in logistics space, such as warehousing, amid a boom in online commerce during the pandemic, while cutting back on deals for offices and retail buildings.



Such shifts in behaviour can have seismic effects on the global real estate market, given such funds are among the largest investors in property and have interests worth hundreds of billions of dollars in total. Three sovereign funds sit within the top 10 largest real estate investors, according to market specialists IPE Real Assets.



A big question is whether the changes are structural for the funds, for which property is an asset-class staple at about 8% of their total portfolios on average, or a temporary response to a huge, unexpected and unfamiliar global event.



“Real estate is still a big part of sovereign wealth fund portfolios and will continue to be so,” said Diego López, managing director of Global SWF and a former sovereign wealth fund adviser at PwC.



“What COVID has accelerated is the sophistication of SWFs trying to build diversification and resilience into their portfolio &#8211; and hence looking for other asset classes and industries.”



Sovereign funds have been more bearish on property than public pension funds, another big investor in the sector, Global SWF found. While they have outstripped the pension funds in overall investment across most industries and assets this year, by two to one, that ratio is reversed for real estate.



Funds are nursing hits to their existing property portfolios stemming from the introduction of lockdowns and social-distancing restrictions. While other parts of their portfolio, such as stocks and bonds, have rebounded from March’s trough, a real-estate recovery is less assured.



Property capital value globally is expected to drop by 14% in 2020 before rising by 3.4% in 2021, according to commercial real estate services group CBRE. Analysts and academics question whether the pandemic’s impact may prove long-lasting, with more people working from home and shopping online.



“I think there’s a real threat to some commercial business districts in the big cities as I can’t see us all return to the 9-to-5 schlep in, schlep out,” said Yolande Barnes, a real-estate specialist at London university UCL.



The value of property assets of some funds has fallen in 2020, with those experiencing the biggest drops including Singapore’s Temasek Holdings and GIC, Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority (QIA), according to data compiled for Reuters by industry tracker Preqin.



Those four funds have collectively seen the value of such assets drop by $18.1 billion to $132.9 billion, the data showed.



Reuters was unable to confirm whether the fall was due to lower valuations or asset sales. The funds either declined to comment or did not respond.



Many sovereign funds do not publicly disclose data on property investments, with Norway’s one of the exceptions.



The Norwegian fund, which has around $49 billion invested in real estate, up from $47 billion at the end of 2019, said last week its unlisted property portfolio returned minus 1.6% in the first half of 2020.



Sovereign funds have also largely steered clear in 2020 of new direct investments in London or Los Angeles, hotspots in normal times, according to property services firm Jones Lang LaSalle (JLL), which said SWFs were “on the defensive”.

SAMSUNG CSC

Safe bet? Sovereign funds rethink once-reliable real estate

MAPUTO (Reuters) &#8211; French oil major Total has signed a security pact with the Mozambique government to protect a $20 billion natural gas (LNG) project being developed in the southern African country, the company said on Monday.



Mozambican security forces have been battling a low-level insurgency against militias suspected of having links to Islamic State in the gas-rich north of the country.



Violence in the northern Cabo Delgado region has recently claimed dozens of lives. Earlier this month insurgents captured a heavily-defended port in the far northern town of Mocimboa da Praia.



Total’s project includes the development of the Golfinho and Atum natural gas fields in the Offshore Area 1 concession, containing more than 60 trillion cubic feet (Tcf) of gas, and the construction of a liquefaction plant with a capacity of 13.1 million tons per annum.



Initial production is slated by 2024.



“This &#8230; bolsters security measures and endeavours to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry,” Ernesto Elias Tonela, minister of mineral resources and energy, said in the statement.

Mozambique records first COVID-19 death

Total and Mozambique sign security pact for $20 billion natural gas project

LAGOS (Reuters) &#8211; Nigeria’s economy contracted by 6.1% in the second quarter of 2020 from a year earlier, the statistics office said on Monday, as lockdowns in its two main cities and low oil prices took their toll.



The West African country, which has Africa’s largest economy and is the continent’s top oil producer, reported its first coronavirus case in late February. It imposed lockdowns lasting just over a month in commercial hub Lagos and the capital Abuja which ended in early May.

Nigeria_naira

Nigeria’s economy contracts by 6.1% y/y in Q2 – stats office

JOHANNESBURG (Reuters) &#8211; South African banks have given voluntary relief on loans to individuals and corporates of up to 537 billion rand ($31 billion) during the coronavirus pandemic so far, the finance ministry said in a statement on Thursday.



“In total, as at the end of the first week of August, banks had provided voluntary relief on loans with a book value at risk of R537 billion,” it said.



South African Finance Minister Tito Mboweni held a meeting with bank chief executives on Wednesday.



Banks in South Africa are seeing one of their worst crises in ages with rising bad loans and hefty impairment charges in an economy which was already in recession before the pandemic. The country&#8217;s bank index .JBANK is currently trading at a discount of almost 40% to the country&#8217;s top 40 index&nbsp;<a href="https://www.reuters.com/finance/markets/index?symbol=.JTOPI">.JTOPI</a>.



However, fund managers have said the banks have requisite balance sheet strength, management depth and strong profitability to weather the storm.



Besides temporary loan relief, the banks have disbursed 14% of the 100 billion rand loan guarantee scheme announced by the government in May, according to the statement.



To Aug. 1., the scheme has disbursed around 14 billion rand out of the 100 billion rand on offer, benefiting almost 10,000 businesses and 15,000 applications still under process, it said.



The loan guarantee scheme, with a total outlay of 200 billion rand, is part of a 500 billion rand package announced by President Cyril Ramaphosa to cushion the impact of coronavirus on South African businesses and individuals.



However, disbursals have still been low as companies are wary of piling up debt and hence changes in the scheme are being worked out, the statement said.

Here’s how to apply for SA’s COVID-19 loan guarantee scheme

South Africa banks offered loan relief of $31 billion during pandemic: statement

BEIJING (Reuters) &#8211; China and the United States have agreed to hold trade talks “in the coming days” to evaluate the progress of their Phase 1 trade deal six months after it took effect in February, the Chinese commerce ministry said on Thursday.



Ministry spokesman Gao Feng made the comments at a weekly briefing held online, but did not elaborate.



<h4 class="wp-block-heading">RELATED COVERAGE</h4>



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They followed Tuesday’s remarks by White House Chief of Staff Mark Meadows that no new high-level trade talks were scheduled, though both sides were in touch about implementing the Phase 1 deal.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2019/12/hqdefault-95.jpg" alt="" class="wp-image-352107" width="629" height="471" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2019/12/hqdefault-95.jpg 480w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/hqdefault-95-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/hqdefault-95-80x60.jpg 80w, https://cms.cnbcafrica.com/wp-content/uploads/2019/12/hqdefault-95-265x198.jpg 265w" sizes="auto, (max-width: 629px) 100vw, 629px" /><figcaption>China’s lessons for South Africa on tackling poverty</figcaption></figure>



The deal, reached on Jan. 15, and seen as a major breakthrough after a two-year long trade dispute between the world’s two largest economies, set ambitious targets for China to sharply boost purchases of U.S. farm and manufactured goods.



But ties quickly soured in the aftermath of the coronavirus pandemic and China’s imposition of a new national security law in Hong Kong.



Both sides traded threats and sanctions on individuals and businesses, such as Chinese video platform TikTok.



Official data also suggests China’s imports of U.S. farm and manufactured goods, energy and services are well behind the pace needed to meet a first-year target increase of $77 billion over 2017 purchases.



China’s purchases have increased as its economy recovers from this year’s coronavirus lockdown, however.



On Tuesday, U.S. President Donald Trump told reporters he had postponed an Aug. 15 review of the trade pact, in frustration over Beijing’s handling of the virus pandemic.

Trump’s Renewed Fight With China Explained

China, United States agree to hold trade talks, Chinese commerce ministry says

ABUJA (Reuters) &#8211; Nigeria expects to spend a record 12.65 trillion naira ($33.20 billion) in 2021 despite severe revenue constraints, according to an outlook released by the Finance Ministry on Monday.



The spending by Africa’s largest economy, still reeling from low oil prices and the new coronavirus pandemic, is a 17.2% jump from the record 10.8 trillion naira budgeted this year.



The projected debt servicing payments would consume 3.1 trillion naira of the spending, or just under 25%.



Additionally, revenues in the year are expected to reach 7.5 trillion naira in 2021, implying a higher deficit.



The document also said spending would focus on completing as many ongoing projects as possible, and that no new works would be allowed unless there were adequare resources to complete ongoing projects.



($1 = 381.0000 naira)

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Economy

OPINION: Growing Gauteng Together plan remodelled as part of reconstruction and recovery of the economy Post-COVID-19.

How Africa’s biggest airport is revving up on the runway

United Airlines announces biggest pilot job cut in its history

South African rand dips before producer price data

Stronger Hurricane Laura aims at heart of U.S. oil refining industry

Trump could act unilaterally to avoid U.S. airline layoffs, White House says

South Africa consumer inflation rises to 3.2% y/y in July

Botswana government says no guarantee on De Beers sales deal by end-2020

OPINION: Post Covid-19: Is this an opportunity to “reset” African economies?

IMF says central banks must be independent after change of Zambia’s governor

Hedge funds in long haul to tackle lack of Black money managers

Safe bet? Sovereign funds rethink once-reliable real estate

Total and Mozambique sign security pact for $20 billion natural gas project

Nigeria’s economy contracts by 6.1% y/y in Q2 – stats office

South Africa banks offered loan relief of $31 billion during pandemic: statement

China, United States agree to hold trade talks, Chinese commerce ministry says

Nigeria eyes record 12.65 trillion naira spending plan for 2021 – document

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