United Nations Economic Commission for Africa - Southern Africa

ECA-SRO-SA supports the validation of a draft financing model for Micro, Small & Medium Enterprises in the Kingdom of Eswatini

eskinder.tsegaye — Fri, 20 Nov 2020 13:05:40 +0000

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ECA-SRO-SA supports the validation of a draft financing model for Micro, Small & Medium Enterprises in the Kingdom of Eswatini

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ECA-SRO-SA supports the validation of a draft financing model for Micro, Small & Medium Enterprises in the Kingdom of Eswatini

eskinder.tsegaye — Fri, 20 Nov 2020 13:02:52 +0000

Lusaka, Zambia 19 November 2020 - The Government of the Kingdom of Eswatini, through the Ministry of Commerce, Industry and Trade, requested for technical support from the United Nations Economic Commission for Africa (ECA) in developing an inclusive financing model to cater for the needs of MSMEs. In August 2020, a national stakeholder meeting was convened to review an initial draft through an inclusive platform allowing for open dialogue among key constituencies of the MSME ecosystem in Eswatini.

The objective of the validation meeting was to review the draft report from the August consultative meeting and deliberate on key steps for the implementation of the proposed framework. The meeting participants reviewed the report, verified the accuracy of the information contained therein, identified potential gaps, provided necessary inputs and proposed amendments that should form the basis for finalizing the report and subsequent endorsement and launch by the Government of the Kingdom of Eswatini. The meeting also provided a platform for stakeholders to dialogue, network and foster coordination towards supporting the implementation of the financing model for MSMEs.

In his opening statement, the ECA SRO-SA Acting Director, Sizo Mhlanga acknowledged the collaboration with the Government of Eswatini through the MSME Directorate of the Ministry of Commerce, Industry and Trade (MCIT), in the conduct of this activity which had culminated in the validation meeting. He hoped that the validation meeting would identify and understand the critical impediments to MSMEs’ access to finance in the Kingdom and come up with a comprehensive and holistic action plan that would address such constraints and enable sustainable and inclusive enterprise growth.

He noted that, “presenting the report is not the end of the process and developing a model is just the first step in a long process. For frameworks to contribute to the desired outcomes, they must be effectively implemented and this calls for the identification and addressing implementation barriers. Experiences from the region and beyond, show that once policies are adopted, implementation as envisaged becomes a challenge.”

The meeting was chaired by Mr Mluleki Sakhile Dlamini, Director, MSME (MCIT) who presented an overview of the MSMEs’ environment in Eswatini. He thanked SRO-SA for assisting in the production of a tailor-made solution to the issue of of MSMEs’ access to finance. He expressed hope that the implementation of the proposal would help revive the Eswatini economy by promoting a vibrant MSME sector, “which is the back-bone of the country’s economy and key to economic growth and job creation,” he added.

The draft report was presented by ECA consultant Mr. Vinaye Ancharaz who advised that the commissioned study was meant to undertake a situation analysis of the MSME sector in Eswatini, analyze the opportunities and challenges that MSMEs faced, especially in accessing financing and present comparative models, including experiences, lessons and innovative approaches, from other countries on financing MSMEs and propose a comprehensive and inclusive financing model for MSMEs. He cited a 2017 survey by FinScope that estimated that about 70,000 MSMEs in Eswatini employed over 90,000 people (21percent of the workforce) and contributed 50 percent to GDP. The report also revealed that 75 percent of MSMEs were owned by independent entrepreneurs, with no jobs created; 74 percent located in rural areas and about the same proportion were female-headed. Mr Ancharaz noted that the survey indicated that while MSMEs had the potential to contribute a lot more to economic development and poverty reduction in Eswatini, currently, this was not the case due to the MSME ecosystem not yielding the desired impacts.

His research indicated that, “the problem facing MSMEs is more of a lack of preparedness to access finance rather than the availability of finance itself.” The report confirmed that MSMEs in Eswatini did not as such, face the problem of access to finance but rather, there was a lack of effective demands from MSMEs to the banks as they failed to submit required financial and business information. Further to that, Eswatini operated on a cash system and as a result, most MSMEs did not hold bank accounts, rendering it difficult for banks to offer credit due to the inability to monitor informal clients.

The meeting outcomes included: improved understanding of the nature of reforms and capacity building activities that should anchor the revamping of financing schemes and progammes for MSMEs; increased ownership by stakeholders of the reform process; enhanced communication and cooperation among stakeholders and between public and private sectors in the process of policymaking and implementation of the proposed framework; a validated report on a financing model for MSMEs in the Kingdom of Eswatini; and an adopted framework and implementation plan on easing MSMEs’ access to finance in the Kingdom of Eswatini.

The meeting participants drawn from national stakeholders, including government officials, representatives from the private sector (especially MSMEs), the financial and banking sector, academia and research institutes, civil society organisations, United Nations Country Team (UNCT), as well as the media validated the report subject to some amendments. Participants hoped that the validated MSMEs financing model had the potential to considerably contribute to employment, economic growth and poverty reduction. Furthermore, innovation-driven MSMEs could be a catalyst for structural transformation. This role is well recognized by the government, which has mainstreamed MSME development in its Vision 2022 and the National Development Strategy (NDS).

Issued by:

The Sub-Regional Office for Southern Africa

UN Economic Commission for Africa (ECA)

P.O. Box 30647, Lusaka, Zambia.

Media Contacts:

Mrs. Lavender Degre,

Communication Officer,

Tel: +260 211 228502/5 Ext. 21307

DL: +260 211 376607

Email: lavender.degre@un.org

The role of private sector in Post-COVID Recovery Strategies & Regional Integration in Southern Africa

eskinder.tsegaye — Tue, 17 Nov 2020 16:42:49 +0000

Lusaka, Zambia, 17 November 2020 (ECA) – The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA), in collaboration with the SADC Business Council, organized a virtual Sensitization Forum for the private sector to stimulate discussions and facilitate dialogue on: Post-COVID Recovery Strategies and Regional Integration in Southern Africa: Challenges and Opportunities. The Forum sought to critically review policy implications and potential areas of development that the private sector could engage in as part of building back better and faster in the post-COVID era. It also sought to interrogate the challenges and opportunities faced by the private sector in the regional integration processes.

In his official opening statement, the Acting Director of SRO-SA, Mr. Sizo Mhlanga alluded to the need for countries to create conditions for the private sector to be more effective drivers of industrialization, economic diversification, trade and investment in the region which would result in reinvigorated economic growth and decent jobs. He reiterated ECA’s commitment to supporting member States to harness the benefits of the African Continental Free Trade Area (AfCFTA) for higher levels of socio-economic development and prosperity for its citizens. For ECA, “the AfCFTA is a game changer for the continent and the private sector is a critical actor for realising the gains of the trade regime. It is important therefore that the private sector understands what the AfCFTA is about, how to take advantage of the opportunities and be alive to the challenges and opportunities encountered during its implementation,” he advised.

He further advised that the COVID-19 crisis presented opportunities for member States to rethink their development strategies and take advantage of science, technology and innovation, digitalization, sustainable and inclusive industrialization, climate-friendly strategies and regional integration as pathways for building economic resilience against any future shocks. “The private sector should be the natural partners to enable this – policy makers should therefore ensure that there is greater participation by the private sector in policy development processes and the attendant implementation in the region. “Creating space for public-private sector dialogue and exchanges is therefore critical for policy effectiveness”, Mr. Mhlanga emphasized.

In his opening remarks, Mr. Peter Varndell, Chief Executive Officer, SADC Business Council advised the Forum of his organization’s mandate which involved policy advocacy, marketing intelligence and addressing non-tariff barriers and post-COVID-19 trade issues to support the private sector. He called on all partners to reach out to their newly established organization for partnerships and regional activities to stimulate trade and socio-economic development.

The virtual event was organized in three distinct but inter-related segments. While the first segment focused on: ‘The Impact of COVID-19 on Businesses in Southern Africa: Findings and Policy Recommendations,’ the second, focused on ‘Post-COVID-19 Recovery Strategies for Southern Africa: Challenges and Opportunities for the Private Sector’ and the final segment focused on stakeholder perspectives on regional integration in Southern Africa. Panelists during the first segment, chaired by Ms Daniel Stuebi, Technical Advisor, GIZ included: Mr. Paul Baker, (International Economics Consulting), Mr. Christie Keulder (Survey Warehouse), Mr. Martyn Davies, (Deloitte South Africa); Mr. Giovanni Pasquali (University of Manchester) and Ms. Lily Sommer (ATPC, ECA). The panelists observed that although Africa had been spared by the COVID-19 pandemic in terms of human fatalities, the major challenges to business included, the drop-in demand, low cash flows, high logistics costs, delay in shipments and shortage of supplies. The panel further noted that, access to funding remained a major challenge faced by Micro, Small and Medium-sized Enterprises, particularly with the anticipated second wave of the pandemic and the expected likelihood of global recession, supply chain issues, lack of emergency preparedness plans, challenges on tax, trade and immigration as additional causes for future concern. Furthermore, the panel observed that the automotive value chain in South Africa was already under stress prior to the pandemic and advised that post-COVID-19, the industry had started looking for non-African markets and developed new digital ways of working. The panel noted that the failure of firms, governments and workers to reach an agreement to address the impact of COVID-19 in the apparel sector in Eswatini had resulted in the loss of jobs and public income. To address apparent gender challenges across regional member States, the panel highlighted the need for gender mainstreaming into supporting cross-border and informal traders addressing the impacts of COVID-19.

The second segment of the deliberations, moderated by Mr. Andrew Mold ECA SRO-EA, included presentations by Trudi Hartzenberg, Trade Law Centre for Southern Africa (TRALAC), Mr. Rafik Feki (UNIDO), Ms. Cecilia Njenga (UNEP), Mr. Benjamin Kwasi Addom, (Wageningen University and Research) and Ms. Sofia Meneses Dias Cassimo, (Mozambique Chamber of Business Women and Entrepreneurship) underscored the challenges of COVID-19 on regional economic development and inequality and called for the recalibration of national and regional policies to address the fallout and also for the introduction of a simplified trading regime to smoothen regional trade and boost economies. The panel highlighted the need for investment in greener technologies to anchor recovery and economic resilience and thus emphasized the need to reallocate capital towards greening of manufacturing and other economic sectors to build more climate resilient and sustainable communities and nations. Furthermore, the panel underscored the role of digitalization in raising agricultural productivity and creating opportunities for small scale farmers and highlighted the role that governments should play in providing data infrastructure. In addition, the panel highlighted the capital, skills, technology and market challenges faced by women entrepreneurs and called for support to these businesses to exploit the opportunities from the AfCFTA.

The final segment on: ‘The private sector in regional integration in Southern Africa’ reviewed the AfCFTA Agreement in terms of its scope, objectives, the protocols and provisions and the role of regional integration in Southern Africa. The panel, chaired by Trudi Hartzenberg, comprised of Mr. Nathi Dhlamini (Business ESwatini); Ms. Madalitso Kazembe, (Malawi Chambers of Commerce and Industry); Mr. Francois Mark (AfriEDX Technology), Mr. William Jimerson (Musa Capital), Mr. Vusi Mabena (Mining Industry Association of Southern Africa); Mr. Joseph Musariri (Federation of Clearing and Forwarding Associations of Southern Africa) and Mr. Jason Blackman, (DHL Express). During this segment, the participants shared perspectives on the challenges to trade in Southern Africa and those impediments precipitated by the COVID-19 pandemic. The panelists identified addressing the regional infrastructure deficit, lowering the costs of doing business, enhancing the provision of information about preferential trade agreements and providing stability in the policy and regulatory environment as key to unlocking the potential of the private sector in the region. The meeting called for support of businesses towards leveraging opportunities from digitalization and the green economy to build back better and faster and bounce beyond. Furthermore, they called for greater private sector engagement in the ongoing AfCFTA negotiations to allow all stakeholders to express any challenges experienced with complying with provisions of regional trade agreements to ensure that these are factored into the processes going forward.

The virtual Forum was attended by over 100 participants drawn from mainly the business community across the 11 SADC member States, the SADC Business Council, government officials and experts, UN organizations and ECA Divisions.

Issued by:

The Sub-Regional Office for Southern Africa

UN Economic Commission for Africa (ECA)

P.O. Box 30647, Lusaka, Zambia.

Contact for more information

Lavender Degre

Communication Officer

Contact: Lavender.degre@un.org

Tel: (260)966797779

AfCFTA expects a wave of ratifications following Angola

eskinder.tsegaye — Tue, 10 Nov 2020 20:15:02 +0000

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AfCFTA expects a wave of ratifications following Angola

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AfCFTA expects a wave of ratifications following Angola

eskinder.tsegaye — Tue, 10 Nov 2020 12:42:15 +0000

Addis Ababa, 8 November 2020, ECA -- The African Continental Free Trade Area (AfCFTA) Agreement expects several ratifications from member countries following Angola's deposit of its ratification instrument with the African Union last week.

Angola's ratification makes it the 30th country to become a State Party to the AfCFTA Agreement. The Angolan move comes less than two months before trading based on the AfCFTA Agreement is scheduled to start on 1 January 2021, thereby raising hopes that more countries will follow Angola's lead before the end of the year.

Angola's ratification was greeted with excitement by the AU Commission, where AUC's Commissioner for Trade Albert Muchanga said: "A new wave has been triggered and we expect more instruments in the coming weeks ahead of the start of trading."

All eyes are now on the 24 signatory countries that have yet to ratify the treaty: Algeria, Benin, Botswana, Burundi, Cape Verde, Central African Republic, Comoros, the Democratic Republic of the Congo, Guinea-Bissau, Lesotho, Liberia, Libya, Madagascar, Malawi, Morocco, Mozambique, Nigeria, Seychelles, Somalia, South Sudan, Sudan, Tanzania, Tunisia, and Zambia. Eritrea remains the only country that has not even signed the AfCFTA Agreement.

The AfCFTA agreement entered into force on 30 May 2019 after the treaty was ratified by 22 countries – the minimum number required by the treaty. Trading was earlier scheduled to start on 1 July this year but was postponed for six months owing to the COVID-19 pandemic.

The AfCFTA aims to create the world's largest free trade area with the potential that brings together more than 1.2 billion people with a GDP of over $2.5 trillion and usher in a new era of development. It has the potential to generate a range of benefits through economy of scale, trade creation, structural transformation, productive employment, and poverty reduction.

Through its African Trade Policy Centre, the ECA has been working with the AUC and member states to deepen Africa's trade integration and effectively implement the agreement through policy advocacy and national strategy development. The ECA also works closely with the International Trade Centre (ITC), the UN Conference on Trade and Development (UNCTAD), and a selection of independent trade experts with the financial support of the European Union (EU) to support the implementation of the AfCFTA across the continent.

Issued by:

Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org

Sensitization Forum for The Private Sector

eskinder.tsegaye — Mon, 09 Nov 2020 21:28:57 +0000

Post-COVID Recovery Strategies and Regional Integration in Southern Africa: Challenges and Opportunities for the Private Sector

16 November 2020

Virtual

The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA), in joint collaboration with the SADC Business Council, is organizing a two -part Sensitization Forum for the private sector to facilitate dialogue on the twin issues of:

(i) Post COVID-19 strategies and policies for Southern Africa – and assessing the challenges and opportunities for the Southern African private sector within these Post COVID-19 strategies and policies; and

(ii) The role of the private sector in regional integration processes in Southern Africa – the challenges and opportunities faced by the private sector in such processes.

Specifically, the Forum will aim to:

To stimulate reflections and discussions on the potential post-COVID-19 strategies and policies that can unleash opportunities for the private sector in Southern Africa as part of building back better.
To stimulate public-private dialogue in the areas of industrialization and regional integration and the role of the private sector in these processes in Southern Africa, as a follow up to the ECA SRO-SA 26th ICSOE.

The virtual event will be organized in two distinct but inter-related sessions.

The first session is titled “Post-COVID recovery strategies in Southern Africa: Challenges and opportunities for the private sector.” This session will among others review the impact of COVID-19 on businesses and their productive/sectoral/cross-border activities and lessons learned and policy implications for building resilience against future shocks;

The second session is titled “The private sector in regional integration in Southern Africa.” This session will review in particular the contents of the AfCFTA in order to inform the private sector participants on the scope, objectives, protocols and provisions of the AfCFTA and the role of regional integration in a post-COVID context of building back better among others.

To participate register here: https://srosa.wufoo.com/forms/z1dke17y0t6dh59/.

Further information on the meeting and any other related matters should be addressed to:

Ms. Dailes Matoka

Senior Staff Assistant

United Nations Economic Commission for Africa

Sub Regional Office for Southern Africa

P.O. Box 30647,

Lusaka, ZAMBIA

Tel: (260) 211 228 502-5

Fax: (260) 211 236 949

E-mail: matokad.uneca@un.org

Copied to:

Ms. Bineswaree Bolaky

Economic Affairs Officer

Sub Regional Initiatives Cluster

United Nations Economic Commission for Africa

Sub regional Office for Southern Africa

P O Box 30647,

Lusaka, ZAMBIA

Tel: (260) 211 376 635

Fax: (260) 211 236 949

E-mail: bineswaree.bolaky@un.org

and

Mr. Sizo Mhlanga

Acting Director/Officer-in-Charge

United Nations Economic Commission for Africa

Sub regional Office for Southern Africa

P O Box 30647,

Lusaka, ZAMBIA

Tel: (260) 211 228 502-5

Fax: (260) 211 236 949

E-mail: mhlangas@un.org

Find out more about ECA-SRO-SA at: https://www.uneca.org/sro-sa/pages/about-office.

Follow us on twitter: @ECA_SRO_SA.

Concept Note

Draft Official Opening Statement by Mr. Sizo Mhlanga - Acting Director, SRO-SA

The 26th ICSOE Meeting of Southern Africa Elects a New Bureau with calls for medium-term fiscal consolidation

Abraham.Tameru — Thu, 29 Oct 2020 14:19:48 +0000

Lusaka, Zambia, 29 October 2020 (ECA) - The 26th Meeting of the Inter-Governmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa elected Lesotho as Chair, Malawi as Vice-Chair and South Africa as Rapporteur to lead the Bureau. Delegates and participants from Angola, Botswana, Eswatini, Lesotho, Malawi, Mauritius, Mozambique, Namibia, South Africa, Zambia and Zimbabwe representing Ministries of Agriculture, Commerce, Economic Development, Finance, Foreign Affairs, Industry and Trade, participated in the 26th ICSOE.

The Minister of Finance, Kingdom of Lesotho, Thabo Sofonea, officially opened the ICSOE, noting in his remarks that the new Bureau was assuming responsibilities in a COVID-19 environment which had impacted negatively on socio economic issues in Southern Africa. He said that, although the current response to the pandemic was through emergency health and economic mitigation measures, fiscal consolidation and structural reforms were required to restore external balance, preserve debt sustainability and stimulate inclusive growth over the medium-term.

The Minister emphasized that to this end, the Government of the Kingdom of Lesotho acknowledged the pivotal role the private sector, especially micro, small and medium enterprises played in the recovery process geared towards the attainment of Sustainable Development Goals (SDGs). In line with the theme of the meeting, “Policies and strategies towards effective private sector led growth and job creation in Southern Africa,” Lesotho had over the years placed the private sector at the centre of economic development programmes and strategies in the National Strategic Development Plan (NSDP). On international, continental and regional aspirations, the Hon Minister noted that, "The theme is also consistent with the global and regional development frameworks which include the UN Sustainable Development Goals (SDGs), African Union Agenda 2063, SADC Regional Indicative Strategic Development Plan (RISDP) 2020-2030 and the SADC Vision 2050.”

In his capacity as a Special Guest, the Minister of Finance, Zimbabwe, Mthuli Ncube, noted that the COVID-19 pandemic had forced many countries to swiftly expand social safety nets to protect the vulnerable from the negative impacts of the pandemic. He advised that the Government of Zimbabwe had introduced, a food grant of ZWL$2.4 billion to cater for food needs of at least 1 million vulnerable individuals for a period of eight months. This included 200,000 micro-enterprise owners whose businesses had been disrupted by the lockdown. He further noted that the pandemic had forced the Government to look more seriously at domestic solutions to addressing the requirements to deal with the fallout.

Some of the domestic initiatives include: the launch on 2nd April 2020 of the Domestic and International Humanitarian Appeal for assistance with a budget of US$1.8 billion for COVID-19 support in conjunction with the United Nations; implementation of the Vulnerable Farmers Input Support Programme, which provides free agricultural inputs to its beneficiaries; last but not the least, assistance to Small and Medium Enterprises (SMEs) to quickly resuscitate their businesses and recover from the effects of COVID-19 through the SME Development Corporation, the Women’s Bank, and the Empower Bank to enable them support small businesses to access working capital.

On behalf of the out-going Chair, Eswatini’s Sibonginkhosi Christopher Mavuso, Promotional Officer, Ministry of Commerce, Industry and Trade commended ECA SRO-SA for providing technical assistance to member States on accelerating the domestication of regional industrialization despite the exigencies of the COVID-19 pandemic which reduced physical engagements with member States. He further applauded the Secretariat for facilitating the ICSOE for member States to dialogue on private sector issues, including micro, small and medium enterprises.

Prior to the opening, Mr. Sizo Mhlanga, Director, ECA Sub-Regional Office for Southern Africa (SRO-SA) in his welcoming remarks, noted that the pandemic had affected the capacity of some countries to meet debt-servicing obligations and thus accelerated the onset of debt unsustainability. He noted that the COVID-19 crisis had indeed highlighted the need for accelerating the building of productive capacities and the implementation of national and regional industrialization strategies as well as improving and strengthening the business environment to unleash opportunities for the Southern African private sector in the sub region and the rest of the continent.

While echoing the observations of the adverse impacts of the pandemic on the local economy including on employment, government finances and other socio-economic development parameters, the United Nations Resident Coordinator in the Kingdom of Lesotho, Mr. Salvator Niyonzima, acknowledged the sterling efforts by the Government as well as by the development partners community in addressing the fallout from the pandemic. He assured Delegates of continued technical support to member States from the United Nations Family.

The representative of the COMESA Secretary General, Ms. Providence Mavubi, Director, Industry and Agriculture called for continued strengthening of collaboration amongst member States, Regional Economic Commissions (RECs), and development partners towards ongoing regional efforts to implement inclusive industrialization policies placing the private sector at the citadel of regional economic growth and job creation. She underlined the support provided by both the COMESA industrialization policy, the local content policy and the micro, small and medium enterprises framework in anchoring private sector growth.

The representative of African Union-SARO, Ms. Myranda Lutempo, Senior Policy Officer alluded to the need for all regional activities to be implemented on a continental level to ensure sustainability. Ms. Lutempo advised that the African Union Commission was promoting economic integration and private sector development through several key flagship projects under Agenda 2063. She also acknowledged the “critical role that the micro, small and medium enterprises (MSME) sector played in inclusive economic growth and sustainable job creation”.

The meeting concluded with an outcome document which proffered recommendations and appealed to member States, United Nations and development partners to pull together resources to strengthen the national and regional macroeconomic environment, create a platform for the implementation of the AfCFTA in Southern Africa, enhance the role of the private sector and build back better post-COVID-19.

Issued by:

The Sub-Regional Office for Southern Africa

UN Economic Commission for Africa (ECA)

P.O. Box 30647, Lusaka, Zambia.

Media Contacts:

Ms. Lavender Degre,

Communication Officer,

Tel: +260 211 228502/5 Ext. 21307

DL: +260 211 376607

Email: lavender.degre@un.org

AfCFTA and Trade un Services tops the agenda of the SRO-SA Ad-hoc Expert Group Meeting

eskinder.tsegaye — Tue, 27 Oct 2020 18:38:22 +0000

Lusaka Zambia, 20 October2020 (ECA) – The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA) convened an Ad-hoc Expert Group Meeting on the theme: “The African Continental Free Trade Area (AfCFTA) and Trade in Services: Opportunities and Strategies for Southern Africa.” This Ad-hoc Expert Group Meeting (AEGM) was held as a prelude to the 26th Session of the Inter-Governmental Committee of Senior Officials and Experts (ICSOE) of Southern Africa.

The AEGM brought together senior government officials and experts in regional integration and trade in services from the SADC member States, representatives of the SADC and COMESA Secretariats, representatives from the African Union Commission, academic and research institutions, civil society, professional organisations, the UN family and other ECA Divisions and Sub-Regional Offices.

The 26th ICSOE of Southern Africa to be hosted by the Government of Lesotho under the theme: “Policies and Strategies towards effective Private Sector-led growth and Job Creation in Southern Africa” will be organized virtually on 28-29th October 2020. This AEGM generated key messages and policy recommendations that will be presented to member States for endorsement at the 26^th ICSOE and will be taken into account in the future work programme of SRO-SA. In light of ongoing negotiations on the AfCFTA including under the Protocol on Trade in Services, the AEGM presented an opportunity for informing member States on the current status of trade in services negotiations under the AfCFTA and provided a platform for dialogue and deliberations as to how the Southern African region can better position itself to take advantage of the potential benefits of the AfCFTA in trade in services.

In his welcoming remarks, Mr. Sizo Mhlanga, ECA SRO-SA Director, who advised that the main objective of the AEGM was to discuss how Southern Africa could leverage the opportunities of the AfCFTA to develop a competitive, efficient, high value-added tradable services sector that can promote private sector growth and create decent jobs in the region. “The AEGM deliberations will be critical in shaping policy recommendations on how Southern Africa can harness opportunities from the AfCFTA and its Protocol on Trade in services to accelerate its structural transformation and sustainable developmen,t” he noted.

He called on participants to take this opportunity to apprise member States on the status of negotiations on trade in services under the AfCFTA and most importantly, to reflect on the type of institutional, regulatory and governance reforms that should be put in place to promote intra-regional trade and intra-regional investment and cooperation in the services sector in the sub region.

The meeting was officially opened and chaired by, Mr. Mluleki S. Dlamini, Director, Eswatini Ministry of Commerce, Trade and Industry, Chair of 25th ICSOE Bureau, who commended UNECA for adopting this theme and providing a platform for addressing the important topic of trade in services under the AfCFTA. He called on governments, policymakers and development practitioners to recognise that a deeply integrated Africa would unleash the region’s enormous untapped economic potential and could significantly contribute to the structural transformation of its economies and sustainable development outcomes. He noted that the adoption and entry in force of the AfCFTA was a key achievement and an important milestone in the continental integration agenda. “It is satisfying to observe that we are slowly but surely moving forward with the agreement, with several member States preparing strategies for its implementation. The AfCFTA is a lot more than just a market access initiative for goods and services. It is a lever for driving Africa’s industrialization, economic diversification and sustainable development. This agreement is expected to provide immense opportunities for Africa’s businesses. It will help consolidate the continental market, making it easier for the private sector to take full advantage of value chains across the continent and exploit significant economies of scale. The AfCFTA is indeed expected to contribute towards the development of regional value-chains on the continent and unleash opportunities for MSMEs,” he concluded.

The official opening was followed by a presentation on, “the African Continental Free Trade Area (AfCFTA) and Trade in Services: Opportunities and Strategies for Southern Africa,” by ECA Consultant, Mr. Paul Baker. The report alluded to the services sector being the most dynamic and promising sector in Southern Africa. “Services is constantly gaining further weight as the key engine of any economy. While agriculture’s contribution to GDP has decreased from 17.5 percent in 2000 to 15.3 percent in 2019, the importance of the services sector is expected to continue increasing, leading both to enhanced service sector exports and increasing wealth,” he advised.

According to his presentation, the AfCFTA can represent a game-changer for the African region. With 54 Contracting Parties and set to become operational on 1 January 2021, the AfCFTA will create a consolidated market of 1.2 billion people and a USD 2.5 trillion economy for goods and services, with the removal of tariff and non-tariff barriers. He recommended that for Southern Africa to benefit from tradable service sectors, supply and policy constraints had to be tackled such as, limited access to financing, limited prospects to serving foreign markets without an established presence, weak infrastructure and limited access to networks and institutional facilities necessary for implementing the provisions of the Protocol on Trade in Services.

In the second session, participating regional experts provided an overview of the services and tradable services sectors in Southern Africa. Mr. Malcom McKinnon, Senior trade policy advisor, SADC Secretariat, highlighted the role of services in manufacturing and noted the high price of services in the SADC. Mr. Andrew Mold, Chief of the AfCFTA and Regional Integration cluster, ECA Sub-Regional Office for East Africa (SRO-EA) emphasised the importance of developing a competitive regional service market to ensure that the benefits were passed to consumers. He cited the ECA SRO-EA econometric study that showed that, “measures taken in East Africa have led to a 65 percent increase in bilateral services in trade and East Africa has revealed strongest comparative advantage.”

On the state of play of trade in services negotiations under the AfCFTA in Southern Africa, Ms. Beatrice Chaytor, Senior expert on trade in services, at the Department of Trade and Industry of the African Union Commission presented the status of trade in services negotiations under the AfCFTA. She informed the meeting that all countries in Africa had signed the Agreement Establishing the AfCFTA (except Eritrea) and the AUC was supporting them in negotiating measures affecting trade in services. The support included training in negotiating techniques and on offers and requests, studies on trade in services and conduct of regulatory audits. Dr. Christopher Onyango, Director, Trade policy, COMESA Secretariat presented a comparison of the state of play of negotiations on trade in services under the various Regional Economic Communities (RECs). The Chief AfCFTA negotiators of Mauritius, Lesotho and Zambia reported on the state of trade in services negotiations in their respective countries. Mauritius market access offers exceeded the General Agreement on Trade in Services (GATS) commitments; Lesotho had scheduled sector specific commitments in almost all service sectors while Zambia intended to make offers on all five priority service sectors of the AfCFTA, namely business services, tourism and travel related services, transport, communication and financial services.

On opportunities and strategies for Southern Africa to benefit from trade in services under the AfCFTA, the e representative from UNCTAD, among others, highlighted the technical support that UNECA and UNCTAD were providing to member States in developing regional value chains in services, within a joint UN Development Account project. Ms. Trudi Hartzenberg, Executive Director of Trade Law Center (TRALAC), South Africa, emphasised on the need to create an internally consistent regulatory ecosystem in services trade across the RECs and the AfCFTA .

Mr. Jason Theede, Senior Labour Mobility and Human Development specialist, International Organization for Migration (IOM) explored the nexus between trade in services and labour mobility and noted the criticality of intra-regional labour mobility in delivering on the benefits of the AfCFTA. He also called on all actors to recognise labour as a regular service which could provide a basis for future bilateral agreements. Mr. Quan Zhao, Trade policy advisor, Division for market development, International Trade Center (ITC) emphasise on the importance and the potential role of digitalization in stimulating trade in services in Southern Africa. He advised of the challenges that needed to be addressed in order for the region to effectively leverage on digitalization to enhance services trade, for example, the need to improve on digital infrastructure and enhancing digital skills development. .

In his closing remarks, the chair, Mr. Mluleki S. Dlamini, applauded participants of the AEGM for, “providing member States with an update of the status of trade in services negotiations as well as stimulating discussions on contentious issues that may impede a swift finalization of such negotiations and on the type of institutional, regulatory and governance structures that should be put in place to promote intra-regional trade, investment and cooperation in the services sectors.”

The recommentations from the AEGM will enhance understanding of the challenges and opportunities faced by SRO-SA member States in developing competitive, efficient and high value-added tradable services sectors that can allow them to benefit from the AfCFTA. The meeting also contributed to strengthened debate and dialogue on regional integration and steer reflections on the actions needed to accelerate the pace of regional integration in Southern Africa such that member States can better take advantage of the AfCFTA to achieve their national development objectives, the SDGs and Agenda 2063.

Issued by:

The Sub-Regional Office for Southern Africa

UN Economic Commission for Africa (ECA)

P.O. Box 30647, Lusaka, Zambia.

Contact for more information

Lavender Degre

Communication Officer

ECA

Contact: Lavender.degre@un.org

Tel: (260)966797779

ECA SRO-SA to Convene a Virtual Two Days Meeting of the ICSOE

eskinder.tsegaye — Tue, 27 Oct 2020 18:31:14 +0000

Lusaka, Zambia, 27 October 2020 (ECA) – The Economic Commission for Africa (ECA) Office for Southern Africa will organize the 26^th Meeting of the Intergovernmental Committee of Senior Officials and Experts (ICSOE) for Southern Africa virtually on the theme “Policies and Strategic Effective Private Sector Led Growth and Job Creation” from October 28 to 29, 2020. The two-days Meeting which shall be presided over by the incoming Chair, the Government of the Kingdom of Lesotho, will focus on strategies and policies towards supporting the private sector as drivers of development, job creation, and growth in the region.

It will bring together senior government officials and experts in regional integration and trade in services and private sector development from the Southern African Development Community (SADC) member States, representatives of the SADC and Common Market for Eastern and Southern Africa (COMESA) Secretariats, representatives from the African Union Southern Africa Regional Office, academic and research institutions, civil society, professional organisations, financial institutions, the UN family and other ECA Divisions and Sub-Regional Offices. Delegates and participants will discuss among other topics the private sectors’ role, including micro, small and medium scale enterprises, in supporting economic growth, creating decent and sustainable jobs and the role of member States in promoting the private sector to be more competitive and sustainable, thereby contributing to reducing unemployment, hunger and poverty.

Deliberations at the 26^th ICSOE of Southern Africa will not only enable delegates share experiences on how to fully exploit the potential of the private sector for sustainable development and job creation but will provide recommendations on how to strengthen the capacities of the private sector, improve on the competiveness of their services and products at the national, regional and international levels. The Meeting will also discuss how to ensure that both the formal and informal private sector effectively takes full advantage of the opportunities in technology and innovation to enhance trade in goods and services across national borders in the face of the opportunities offered by the African Continental Free Trade Area Agreement.

The ICSOE is part of ECA’s governance machinery, which meets annually to consider, provide guidance, endorse the formulation and implementation of the programmes of work in line with the priorities of each sub region, and proffer recommendations.

Issued by: The Sub-Regional Office for Southern Africa

UNECA, P.O. Box 30647, Lusaka, Zambia.

For more information Contact:

Economic Commission for Africa, Southern Region Office

Lavender Degre, Communication Officer

Contact: Lavender.degre@un.org/ Tel: (260)966797779

For more information about the ECA-SRO-SA work.

please visit: https://www.uneca.org/sro-sa

Reactions and Outlook to COVID-19 In Southern Africa - October 2020

Minilik.Demissie — Wed, 21 Oct 2020 12:44:47 +0000

The United Nations Economic Commission for Africa (ECA), through its sub-regional office for Southern Africa (SRO-SA) and the African Trade Policy Centre (ATPC), together with International Economics Consulting Ltd. jointly carried out a survey on the economic impacts of COVID-19 on businesses across Africa.

First analysed for the African continent as a whole (the global report can be accessed here), results were further examined for the Southern African region.

The regional focused report shows that although the top three challenges faced by Southern African businesses with COVID-19 are the same as for the rest of Africa, both the order and importance of those challenges change significantly. It should also be emphasised that in an attempt to overcome the crisis nearly 69% of the companies operating in Southern Africa have identified new opportunities in reaction to the crisis (slightly higher than in the rest of Africa, 62%). Companies have very innovative ideas to grow their operations and services. Most of the ideas are related to cloud technology and online platforms.

In addition to regional comparisons, the report disaggregates most of the results based on gender. Interestingly, it turns out that companies headed by women seem to have been more active and vocal in reaction to the crisis. For example, it is interesting to note that a greater proportion of businesses headed by women (as compared to those headed by men) contacted financial institutions to address their financial needs. Similarly, women business leaders in the Southern African region have also been more active in raising concerns with the Government on competition issues arising from the crisis.

covid-19_africa_impact_survey_july_2020-southern_africa-201020-final.pdf

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