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<p>There have been arguments for a postponement of the July Start of Trade under the African Continental Free Trade Area (AfCFTA) due to the Covid-19 pandemic. However, trade experts on the continent say that the AfCFTA will help African economies recover from the impact of the pandemic and should stay on track. CNBC Africa spoke to Edem Adzogenu, Co-Chair of the Afro-Champions Initiative Executive Committee for more.</p>


COVID-19: How the pandemic is affecting Africa’s free trade plans

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<p>To pay or not to pay is the question many African countries are grappling with even as they swim in an ocean of foreign debt, amid the global pandemic. African leaders are now calling for debt cancellation to enable them channel their resources to saving lives and salvaging their economies. CNBC Africa spoke to Dr. Andrew Mold, Chief Regional Integration and AfCFTA, Sub-Regional Office for Eastern Africa, UNECA, for more.</p>


African countries seek debt relief amid COVID-19 pandemic


<p>By Banji Oyelaran-Oyeyinka</p>



<p>The COVID-19 pandemic, one of the world’s most significant events, has resulted in cessation of economic activities that will lead to a significant decline in GDP, an unprecedented social disruption, and the loss of millions of jobs. According to estimates by the African Development Bank, the contraction of the region’s economies will cost Sub-Saharan Africa between $35 billion and $100 billion due to an output decline and a steep fall in commodity prices, especially the crash of oil prices.</p>



<p>More fundamentally, the pandemic has brutally exposed the hollowness of African economies on two fronts: the fragility and weakness of Africa’s health and pharmaceutical sectors and the lack of industrial capabilities. The two are complementary.</p>



<p>This is because Africa is almost 100 percent dependent on imports for the supply of medicines.</p>



<p>According to a recent McKinsey (2019) study, China and India supply 70 percent of Sub-Saharan Africa’s demand for medicine, worth $14 billion. China’s and India’s markets are worth $120 billion and $33 billion respectively. Consider a hypothetic situation where both India and China are unable or unwilling to supply the African market? Africa surely faces a health hazard.</p>



<p>The root of Africa’s underdeveloped industrial and health sectors can be encapsulated in three ways. First, some African policy makers simply think that poor countries do not need to industrialize. This group believes the “no-industrial policy” advocates who engage in rhetoric that does not fit the facts. The histories of both Western societies, and contemporary lessons from East Asia, run contrary to that stance.</p>



<p>Clearly, governments have an important role to play in the nature and direction of industrialization. Progressive governments throughout history understand that the faster the rate of growth in manufacturing, the faster the growth of Gross Domestic Product (GDP).</p>



<p>From the <em>Economist</em> magazine five years ago: “BY MAKING things and selling them to foreigners, China has transformed itself—and the world economy with it. In 1990 it produced less than 3% of global manufacturing output by value; its share now is nearly a quarter. China produces about 80% of the world’s air-conditioners, 70% of its mobile phones and 60% of its shoes. Today, China is the world’s leader in manufacturing and produces almost half of the world’s steel.” The keyword is “making”.</p>



<p>Two, rich countries therefore became rich by manufacturing and exporting to others, including high-quality goods and services. Poor African countries remain poor because they continue to produce raw materials for rich countries. For example, 70% of global trade in agriculture is in semi-processed and processed products. Africa is largely absent in this market while the region remains an exporter of raw materials to Asia and the West.</p>



<p>Lastly, African countries are repeatedly told that they cannot compete based on scale economy, and as well, price and quality competitiveness because China will outcompete them. For this reason, they should jettison the idea of local production of drugs, food and the most basic things.</p>



<p>The question is: &nbsp;How did Vietnam, with a population of 95 million, emerge from a brutal 20-year war and lift more than 45 million people out of poverty between 2002 and 2018 and develop a manufacturing base that spans textiles, agriculture, furniture, plastics, paper, tourism and telecommunications? It has emerged as a manufacturing powerhouse, becoming the world’s third-largest exporter of textiles and garments (after China and Bangladesh).</p>



<p>Vietnam currently exports over 10 million tonnes of rice, coming third after India and China.</p>



<p>How is it that Bangladesh, a country far poorer than many African countries, is able to manufacture 97% of all its drugs demand, yet it is next door to India, a powerhouse of drug manufacturing?</p>



<p>The COVID-19 pandemic has exposed Africa. African leaders need to look in the mirror and ask where this continent will be in 2030 and 2063. Africa must adopt progressive industrial policies that create inclusive, prosperous and sustainable societies.</p>



<p>What then should be done? A three-pronged approached is urgently needed.</p>



<p>First, Africa needs a strong regional coordination mechanism to consolidate small uncompetitive firms operating in small atomistic market structures. With a consumer base of 1.3 billion and $3.3 trillion market under the African Continental Free Trade Area (AfCFTA), the continent has no choice but to bring together its fragmented markets.</p>



<p>Second, Africa needs to build better institutions, strengthen weak ones and introduce the ones missing. No better wake-up call is required than the present pandemic.</p>



<p>Third, one important institution that has been abruptly disrupted is the supply chain for medicines and food, for example. Logistics for transporting capital and consumer goods across the region need predictable structures. Building or strengthening supply chains involve fostering and providing regulations for long-term agreements and competences that leverage both private and public institutional challenges such as customs regulations.</p>



<p>Finally, development finance institutions (DFIs) such as the African Development Bank are mandated to, and are currently, trying to fill the gaps left by private financial institutions. There is an opportunity to Africa to rethink and reengineer its future. The Africa of tomorrow must look inwards for its solutions. &#8211; whether in feeding its own people, build industrial powerhouses led by African champions.</p>



<p>The African Development Bank stands ready to help target and push for deeper economic transformation. Africa needs to execute structurally transformative projects that generate positive externalities and social returns. Keep our eyes on the days after.</p>



<p><em>Professor Banji Oyelaran-Oyeyinka, is the Senior Special Adviser on Industrialization to the President of the African Development Bank. He is a fellow of the Nigerian Academy of Engineering and Professorial Fellow, United Nations University. His recent book is “Resurgent Africa: Structural Transformation and Sustainable Development”, UK: Anthem Press, 2020</em></p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


Sub-Saharan Africa to suffer 23.1% decline in remittances in 2020 – World Bank

Op-Ed: Where will Africa be post COVID-19?

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<p>In the headline, as the impact of the coronavirus outbreak continues, manufacturers, producers and importers in Rwanda are seeking alternative sources of raw materials with China’s production and export capacity expected to slow down. In other news – a new report from UN Economic Commission for Africa has indicated that the successful implementation of the African Continental Free Trade Area could help the Eastern African countries earn about $1.8 billion and revive the region’s intra trade. Finally, Rwanda proceeds with the preparation of the Commonwealth Forum despite the outbreak of the coronavirus. CNBC Africa is joined by Hudson Kuteesa, Journalist of The New Times for more.</p>


Rwanda cancels concerts

Rwanda cancels concerts, sports tournaments due to coronavirus

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Its 133 days until the start of trading under African Continental Free Trade Agreement, so far 54 Countries have signed up and just about 29 countries have ratified the agreement. Nigeria&#8217;s Minister for Industry, Trade and Investment says this ratification will only take place if Nigeria is sure that its industries will be protected. To discuss Nigeria’s trade strategy and the journey to ratify the AfCFTA, Tilewa Adebajo, CEO of CFG Advisory and Mansur Ahmed, President of the Manufacturers Association of Nigeria both join CNBC Africa for more.</p>


Nigeria to review its trade policy ahead of AfCFTA

Expert calls for review of Nigeria’s trade policy ahead of AfCFTA


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1110" height="349" src="https://www.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-1110x349.jpg" alt="" class="wp-image-360311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-1110x349.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-300x94.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-820x258.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-768x241.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-1536x483.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-696x219.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-1068x335.jpg 1068w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1-1337x420.jpg 1337w, https://cms.cnbcafrica.com/wp-content/uploads/2020/02/3526_IATF_Februray_CNBC-Africa-Website-Banner_Version1.jpg 1910w" sizes="auto, (max-width: 1110px) 100vw, 1110px" /></figure>



<p>With seven days of live performances, expert speakers, special cultural highlights and an unprecedented list of exhibitors this year, you will want to delve into everything IATF2020 has to offer. </p>



<p>The biggest trade fair event in Africa, IATF brings together more professionals under one roof than any other event of its kind on the continent. This year, the theme is “Building Bridges for a Successful AfCFTA” focusing on the African Continental Free Trade Area (AfCFTA), a market for goods and services across 55 countries, and paving the way for Africa to better achieve its economic and social goals.</p>



<p>Taking
place in Kigali, Rwanda, on 1 to 7 September, over one billion people will
showcase and exhibit their goods and services, while exploring business and
investment opportunities in Africa.</p>



<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/pWYuaA7LuAE" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen=""></iframe>



<p>With stakeholders
that include investors, SMEs, and the informal sector, IATF2020 has become the
ideal platform to address the challenges affecting intra-African trade and
provide practical and effective solutions to overcome these challenges.</p>



<p>The
inaugural IATF2018, which took place in Cairo, Egypt, was an enormous success,
garnering US$32 billion in trade and investment deals with more than 1 000
exhibitors and 2 500 conference delegates from over 45 countries.</p>



<p>This
year, IATF2020 will surpass the success of previous years by providing a
platform for businesses to access an integrated market of over 1.2 billion
people with a GDP of over US$2.5 trillion created under the African Continental
Free Trade Area.</p>



<p>IATF2020
does not only serve as a marketplace where buyers and sellers of goods meet,
but also as a business matchmaker, enabling exchanges from business to business
and business to government and political stakeholders.</p>



<p>Additionally,
the IATF2020 Conference will feature leading African and international speakers
who will discuss a variety of topics surrounding African trade and investment
opportunities. There will also be training workshops covering exporting,
standards and marketing.</p>



<p>This
year, visitors and exhibitors will also get to enjoy work from the greatest
creative minds on the continent during the Creative Africa Exchange. The
initiative showcases Africa’s creative economy through music, film, fashion,
and a creative Africa summit.</p>



<p>IATF2020
will host art and craft exhibitions with magnificent pieces that have never
been displayed together before. Visitors will be able to engage with the
artists and craftspeople, and find out how art is leading the way in the
cultural industries.</p>



<p>Traders
who are unable to make it to Rwanda for IATF2020 can still log onto the
IATF2020&nbsp;<a href="https://www.intrafricantradefair.com/en/virtual-trade-fair" target="_blank" rel="noreferrer noopener">Virtual Trade Fair&nbsp;</a>and
showcase goods, services and investment opportunities on the interactive online
platform. The Virtual Trade Fair connects exhibitors and visitors from all
sectors, and provides a platform for delegates and non-attendees to connect in
real-time during the event and for the rest of the year after the Trade Fair
has concluded.&nbsp;</p>



<p>With
exhibitors from all over Africa and beyond, businesses across the public and
private sectors, and SMEs to multinational corporations, IATF2020 simply cannot
be matched anywhere else.</p>



<p>Make
valuable business connections and accelerate your reach into African markets at
IATF2020. </p>



<p>To
register and get more information, visit the IATF website at <a href="https://www.intrafricantradefair.com/en" target="_blank" rel="noreferrer noopener">intrafricantradefair.com/en</a></p>


3526_IATF_Februray_CNBC Africa Website Banner_Version1

IATF is the biggest trade fair event in Africa, here’s what it has to offer

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As slated kick-off date for the AfCFTA draws closer, Nigeria’s Trade, Industry and Investment Minister, Niyi Adebayo says the country’s National Action Committee will not recommend ratification unless they are certain the trade policy will not hurt local industries. In an exclusive interview with CNBC Africa’s Christy Cole, the Minister also spoke about Nigeria’s industrial policy, and the upcoming UK-Nigeria Forum.</p>


‘Nigeria won’t ratify AfCFTA unless local industries are safe’ – Trade Minister Niyi Adebayo

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The Interim Director of One Africa, Edwin Ikhuoria, says to silence the guns of conflict in Africa, the continent’s leaders must first deal with the root cause which is unemployment. Ikhuoria argues that if youths are employed, they will not be available to be radicalised. He discussed this and more with CNBC Africa’s Godfrey Mutizwa on the side-lines of the concluded 33rd African Union Summit.</p>


AU Summit 2020: “This is the year of dealing with root causes of conflicts in Africa” – One Africa’s Edwin Ikhuoria

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The Commissioner for Trade and Industry at the African Union, Albert Muchanga, says the union is ready for the commencement of trade under the African Continental Free Trade Agreement on the first of July this year. While speaking to CNBC Africa’s Godfrey Mutizwa, Muchanga added that the union is almost done with its work on the rules of origin. They discussed this and more on the sidelines of the 33rd African Union Summit.</p>


AU Summit 2020: AFCFTA: How prepared is Africa for July 1st?

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The Community for Eastern and Southern African States (COMESA) sees the creation of the Africa Continental Free Trade Area as further enhancement of its work and a bigger opportunity for business from the region rather than as a threat. CNBC Africa caught up with the COMESA Secretary General, Chileshe Kapwepwe on the side-lines of the AU summit.</p>


AU Summit 2020: Chileshe Kapwepwe brekas down COMESA’s 3 pillars of development

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Silencing the guns is a slogan at this year’s AU summit as part of this the continental body held discussions on the role of women in this initiative. CNBC Africa spoke to UNECA&#8217;s Executive Director, Vera Songwe for more.</p>


AU Summit 2020: UNECA on the role of women in promoting development & security in Africa

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The African Development Bank (AfDB) has warned that a failure to end conflicts on the continent will undermine plans to accelerate economic integration on the continent. AfDB President Akinwumi Adesina spoke to CNBC Africa on the side-lines of the on-going African Union Summit.</p>


AU Summit 2020: Africa’s youth are our greatest asset & we have to invest in them – Adesina

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The President of African Export-Import Bank, Benedict Oramah says there is political will and support towards initiatives and tasks set out by the bank across Africa. He spoke to CNBC Africa’s Godfrey Mutizwa on the sidelines of the 33rd African Union Summit to share his thought on political support on the continent.</p>


AU Summit 2020: Afreximbank President Oramah: Political will remains key to African free trade

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The 37th African Union Development Agency &#8211; NEPAD Heads of State and Government Orientation Committee (HSGOC) Session took place over the weekend and there, Rwandan President Paul Kagame was elected Chairperson of one of its new agencies that will drive the continent towards achieving Agenda 2063 . CNBC Africa spoke to Ibrahim Mayaki, CEO of NEPAD, for more.</p>


AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

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The second day of the African Union is underway and CNBC Africa&#8217;s Godfrey Mutizwa asked South African Minister of International and Cooperation, Naledi Pandor, about key issues that have been addressed so far and what agenda South Africa is bringing to the African Union as chair.</p>


AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandoor

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

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Director of Macroeconomic Forecasting and Research at African Development Bank (AfDB), Hanan Morsy says Africa is the least efficient in spending on education despite the very strong commitment of African governments. CNBC Africa&#8217;s Godfrey Mutizwa caught up with her on the side-lines of the Africa Union Summit for more.</p>


AU Summit 2020: “By enhancing efficiency

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

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Ahead of the 33rd Ordinary Session of the Assembly of the African Union Commission Summit in Addis Ababa, CNBC Africa’s Godfrey Mutizwa spoke to Dr. Hippolyte Fofack, Chief Economist and Director, Research and International Cooperation at Afreximbank on why Africa should speak with one voice on trade as a way to consolidate its bargaining power on the global stage.</p>


AfCFTA

COVID-19: How the pandemic is affecting Africa’s free trade plans

African countries seek debt relief amid COVID-19 pandemic

Op-Ed: Where will Africa be post COVID-19?

Rwanda cancels concerts, sports tournaments due to coronavirus

Expert calls for review of Nigeria’s trade policy ahead of AfCFTA

IATF is the biggest trade fair event in Africa, here’s what it has to offer

‘Nigeria won’t ratify AfCFTA unless local industries are safe’ – Trade Minister Niyi Adebayo

AU Summit 2020: “This is the year of dealing with root causes of conflicts in Africa” – One Africa’s Edwin Ikhuoria

AU Summit 2020: AFCFTA: How prepared is Africa for July 1st?

AU Summit 2020: Chileshe Kapwepwe brekas down COMESA’s 3 pillars of development

AU Summit 2020: UNECA on the role of women in promoting development & security in Africa

AU Summit 2020: Africa’s youth are our greatest asset & we have to invest in them – Adesina

AU Summit 2020: Afreximbank President Oramah: Political will remains key to African free trade

AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

AU Summit 2020: Afreximbank: Why Africa should speak with one voice on trade

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AfCFTA

COVID-19: How the pandemic is affecting Africa’s free trade plans

African countries seek debt relief amid COVID-19 pandemic

Op-Ed: Where will Africa be post COVID-19?

Rwanda cancels concerts, sports tournaments due to coronavirus

Expert calls for review of Nigeria’s trade policy ahead of AfCFTA

IATF is the biggest trade fair event in Africa, here’s what it has to offer

‘Nigeria won’t ratify AfCFTA unless local industries are safe’ – Trade Minister Niyi Adebayo

AU Summit 2020: “This is the year of dealing with root causes of conflicts in Africa” – One Africa’s Edwin Ikhuoria

AU Summit 2020: AFCFTA: How prepared is Africa for July 1st?

AU Summit 2020: Chileshe Kapwepwe brekas down COMESA’s 3 pillars of development

AU Summit 2020: UNECA on the role of women in promoting development & security in Africa

AU Summit 2020: Africa’s youth are our greatest asset & we have to invest in them – Adesina

AU Summit 2020: Afreximbank President Oramah: Political will remains key to African free trade

AU Summit 2020: 37th HSGOC Session – Kagame tasked with driving Agenda 2063

AU Summit 2020: Addressing conflicts on the continent key to achieving Agenda 2063 goals – Naledi Pandor

AU Summit 2020: “By enhancing efficiency, Africa can reach universal primary education” – AfDB’s Hanan Morsy

AU Summit 2020: Afreximbank: Why Africa should speak with one voice on trade

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