Jaguar Land Rover Retail Sales Continue To Recover In Q4 2020 With China Sales Growing Year-On-Year

Esan Bolaji
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Jaguar Land Rover Retail Sales Continue To Recover In Q4 2020 With China Sales Growing Year-On-Year

Jaguar Land Rover marked the end of 2020 with a second successive quarter-on-quarter recovery in sales, despite the continuing impact of Covid-19. 

Retail sales for the quarter ending 31 December 2020 were 128,469 vehicles, 13.1% higher than the 113,569 vehicles sold in the preceding quarter, but down 9.0% on the same period last year. China sales were particularly encouraging, up 20.2% on the prior quarter and 19.1% year-on-year.

Jaguar Land Rover Retail Sales Continue To Recover In Q4 2020 With China Sales Growing Year-On-Year Brandspurng

Retail sales in most other regions also continued to recover and were up significantly on the prior quarter in North America (+31.7%), Overseas (+26.6%) and Europe (+20.5%). However, sales in these regions have not yet recovered to pre-Covid levels with sales for the quarter lower than a year ago in North America (-17.2%), Overseas (-20.0%), Europe (-16.3%) and the UK (-8.9%).

The sales ramp-up of the new Land Rover Defender saw retails rising to 16,286 vehicles in the October to December quarter, up 66.0% on the preceding quarter with sales of the shorter wheelbase Defender 90 has started.

For Jaguar, retail sales of the multi-award-winning all-electric I-PACE were up 69.3% year-on-year with 7,807 sold in the quarter, as demand for electric vehicles continues to grow.

For the calendar year 2020, Jaguar Land Rover retail sales were 425,974, down 23.6% on 2019, reflecting the industry impact of Covid-19 particularly in the first half of the year when plants were shut down for more than two months. However, the company has since seen sales increase quarter-on-quarter by over 53% in the quarter ended 30 September, followed by the 13.1% increase in the most recent quarter.

In response to strengthening global demand, Jaguar Land Rover has continued to roll out its exciting new range of 21 Model Year vehicles, incorporating the very latest technologies.

The company remains committed to its electrification strategy and has a growing portfolio of electrified Jaguar and Land Rover vehicles, embracing fully electric, plug-in hybrid (PHEV) and mild-hybrid (MHEV) vehicles, as well as continuing to offer the latest diesel and petrol engines, giving its customers even more choice.

Following the significant expansion over the year, electrified options now extend to 12 models across the Jaguar and Land Rover portfolios, with PHEV available on 8 vehicle lines and MHEV on 11, as well as the all-electric Jaguar I-PACE.

With sales of new electrified vehicles including the Land Rover Discovery Sport and the Range Rover Evoque PHEVs ramping up through the October to December quarter, a total of 53% of the company’s retail sales for the three-month period were electrified. This included 6.1% all-electric, 5.5% PHEV and 41.4% MHEV.

This brings the share of electrification to 43.3% of the company’s sales for 2020, with that figure poised for further growth in 2021 and beyond.

Felix Brautigam, Jaguar Land Rover Chief Commercial Officer, said:

“2020 was a year of two halves and, although Covid-19 continues to significantly impact the global auto industry, we are delighted to end the year with a second consecutive quarter of sales recovery.

Our performance in China, the region least impacted by Covid-19 in the most recent quarter, has been particularly encouraging with our sales there growing on both a year-on-year and quarter-on-quarter basis.

Other markets are also showing strong signs of recovery, despite second Covid waves across the globe. We are well-placed in keeping our retailers open for business with online sales solutions, even when their doors are closed through lockdowns. This is also evidenced by the Land Rover website being ranked #1 in the most recent J.D. Power Study.

An online ordering system in many markets enables people to reserve their vehicle digitally from home. Combined with safe, sanitised click and collect delivery options, this gives Jaguar and Land Rover customers ultimate convenience and flexibility.

At Land Rover, we have been delighted with the reception of the New Defender, which has just been announced as a European Car of the Year finalist. Land Rover’s most capable and durable model ever was also recently named Top Gear’s “Car of the Year” as well as winning the “Unstoppable Force” award. With 28 global accolades, we are gratified to see the vehicle recognised as worthy of the Defender name.

In today’s changing environment we are particularly proud to now offer an electrified version of every Land Rover including various class-leading Plug-in Hybrids. Together with the completely renewed Discovery and Velar, this will support sales in the challenging market environment.

At Jaguar, the new F-PACE, E-PACE and XF, with significantly enhanced exteriors, beautifully crafted, fully connected interiors, and efficient new powertrains, have been very well received by customers and the media alike. 2021 is a very special year for Jaguar: the legendary Jaguar E-type celebrates its diamond anniversary.

Its dramatic beauty, engaging performance, luxury, and ground-breaking innovation inspire us to this very day. Hence, we were pleased to announce the launch of the limited-edition Jaguar F-TYPE Heritage 60 Edition”.

Jaguar Land Rover is the UK’s largest automotive manufacturer, built around two iconic British car brands. Land Rover is the world’s leading manufacturer of premium all-wheel-drive vehicles. Jaguar is one of the world’s premier luxury marques, as well as being the first ever brand to offer a premium all-electric performance SUV, the Jaguar I-PACE.

Mobile Roaming Subscribers to Reach 918 Million Globally by 2024; Recovering to Pre-pandemic Levels

Esan Bolaji
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Mobile Roaming Subscribers to Reach 918 Million Globally by 2024; Recovering to Pre-pandemic Levels

North American Market to Increase by 192% During Pandemic Recovery

18th January 2021: A new study from Juniper Research has found that the number of international mobile roaming subscribers dropped by 73% to 243 million globally in 2020; caused by travel restrictions arising from the COVID-19 pandemic.

It predicts that mobile roaming subscriber numbers will take until 2024 to exceed 2019 levels; reaching 918 million by 2024, as the travel industry embarks on a prolonged recovery from the long-term impacts of the pandemic.

Mobile Roaming Subscribers to Reach 918 Million Globally by 2024; Recovering to Pre-pandemic Levels Brandspurng
Photo by Brandy Kennedy

North America to Lead Roaming Recovery

The new research, Mobile Roaming: Emerging Opportunities, Regional Analysis & Market Forecasts 2021-2025, predicts that operators in North America will be amongst the first to recover from the impacts of the pandemic on the roaming market.

It found that the region will account for 23% of global roaming revenue by 2025, as border restrictions are lifted and demand for travel returns to normal levels.

The study also anticipates that North America’s recovery will be aided by the region’s early adoption of 5G services, with operators able to increase roaming revenue through the provision of advanced functionality to subscribers.

In response, the research urges operators to focus on expanding 5G roaming agreements in 2021 to capitalise on this revenue growth in the future.

Brexit Marks Uncertain Future for UK Roamers

The research forecasts that the UK will account for 11% of mobile roaming subscribers in Europe by 2025, increasing from 8% in 2020; showing that the revenue opportunity for operators is growing. It found accordingly that UK-based operators are now facing pressure to form individual bilateral agreements with operators in Europe to guarantee continued inclusive roaming for UK subscribers.

Research author Scarlett Woodford noted: ‘Any decisions by UK operators to reintroduce roaming changes would negatively affect customer satisfaction. Operators must approach changes to their roaming policies with caution, in order to avoid an increase in the number of silent roamers and accompanying lost revenue.’

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Here Are The Average Prices Of Petrol, Diesel, Kerosene And Cooking Gas For December 2020

Esan Bolaji
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Here Are The Average Prices Of Petrol, Diesel, Kerosene And Cooking Gas For December 2020

The average price paid by consumers for premium motor spirit (petrol) increased by 14.62% year-on-year and month-on-month by 3.79% to N167.27 in November 2020 from N161.17 in October 2020.

States with the highest average price of premium motor spirit (petrol) were Abia (N178.70), Kebbi (N174.76) and Kwara (N172.33).

States with the lowest average price of premium motor spirit (petrol) were Zamfara (N161.73), Bauchi (N161.78) and Kaduna (N163.83).

Diesel

The average price paid by consumers for Automotive Gas Oil (diesel) increased by 1.79% month-on-month and decreased by -0.59% year-on-year to N223.74 in November 2020 from N219.80 in October 2020.

States with the highest average price of diesel were Benue (N263.33), Kebbi (N258.57) and Taraba (N251.67).

States with the lowest average price of diesel were Kwara (N182.50), Osun (N192.67) and Nassarawa (N196.33).

Here Are The Average Prices Of Petrol, Diesel, Kerosene And Cooking Gas For December 2020

Kerosene

Average price per litre paid by consumers for National Household Kerosene increased by 0.13% month-on-month and by 11.29% year-on-year to N353.38 in November 2020 from N352.93 in October 2020.

States with the highest average price per litre of kerosene were Ebonyi (N433.33), Benue (N429.17) and Taraba (N411.52).

States with the lowest average price per litre of kerosene were Bayelsa (N212.96), Rivers (N283.33) and Niger (N316.67).

Similarly, the average price per gallon paid by consumers for National Household Kerosene decreased by -1.18% month-on-month and increased by 0.67% year-on-year to N1,218.50 in November 2020 from N1,233.00 in October 2020.

States with the highest average price per gallon of kerosene were Kebbi (N1,377.78), Enugu (N1,363.46) and Nasarawa (N1,328.33).

States with the lowest average price per gallon of kerosene were Osun (N970.45), Delta (N986.43) and Anambra (N1,071.00).

Cooking Gas

The average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased by -0.32% month-on-month and by -2.64% year-on-year to N1,947.47 in November 2020 from N1953.71 in October 2020.

States with the highest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Bauchi (N2,488.32), Borno (N2,396.69) and Adamawa (N2,367.80).

States with the lowest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Enugu (N1,561.00), Imo (N1,662.50) and Osun (N1,683.75).

Similarly, the average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) increased by 0.11% month-on-month and decreased by -0.93% year-on-year to N4,082.97 in November 2020 from N4,078.65 in October 2020.

States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Akwa Ibom (N4,587.60), Bayelsa (N4,558.33) and Cross River (N4,505.77).

States with the lowest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Kano (N3,497.00), Oyo (N3,553.13) and Lagos (N3,682.00).

Implications of Social Unrest for the Nigerian Insurance Industry

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Implications of Social Unrest for the Nigerian Insurance Industry

The Nigerian economy has become increasingly prone to violence and social unrest due to a growing public resentment against the government. Insurgency groups such as Boko Haram, and the killings by the Fulani herdsmen, have also contributed to the vulnerable security condition in Nigeria.

A more recent crisis was the destruction and looting of numerous public and private organizations after hoodlums hijacked the #ENDSARS protest against police brutality. Many business owners were left with huge losses, prompting renewed attention on the role and capacity of the Nigerian insurance industry.

Implications of Social Unrest for the Nigerian Insurance Industry

The Nigerian Insurance Industry

Globally, the insurance industry has been one of the hardest hit by the economic fallout of COIVD-19 due to a spike in insurance claims as many businesses have come under severe financial pressure. Although insurance companies have claimed that pandemic-induced business disruptions are not covered, business owners have insisted that the insurance industry bare some of the financial losses on their businesses.

On the domestic front, the Nigerian insurance industry has not been spared the devastating impact of the pandemic. The sector slid into a recession in Q3’20 after it contracted by 18.67%, following a 29.5% contraction in Q2’20.

The Nigerian insurance industry is embattled with a list of challenges such as the prevailing low-interest-rate environment in Nigeria, which is weighing on the profit margins of many sector players, lower premium income and increased insurance claims amid the fallout of the pandemic.

Social Unrest and the Nigerian Insurance Industry

For a sector still recovering from the effects of COVID-19 and struggling with low-interest income on its assets, the frequent occurrence of social unrest across the country will impact negatively on the financial position of many insurance firms and the overall performance of the industry.

On the other hand, the crisis has increased awareness about the importance of insurance and is capable of resulting in increased insurance penetration in the country. The Nigerian insurance sector is still quite underdeveloped with a penetration rate of 0.7%, significantly below regional peers like South Africa’s 12.89%.

Furthermore, proper responses to insurance claims could pass a message to business owners who have not subscribed to an insurance premium. The crisis has also created more knowledge of required insurance offerings and the need for more specific insurance premiums. This should help insurance companies expand their products thereby increasing the chances of participation among individuals, households and businesses.

Conclusion

As much as the recent civil unrest poses a risk to the profitability and recovery of the Nigerian insurance industry, it has a potential to reposition the industry for growth and development, if sector players adopt the right strategies.

The possibility of mergers and acquisitions within the industry will also help to promote market consolidation and empower sector players to strive for growth.

The National Insurance Commission, the regulatory body overseeing the affairs of the Nigerian insurance industry had issued a guideline for the recapitalization of the industry last year but the deadline for this has been extended to Q3’21 due to the pandemic.

African Countries Not Ready to Implement Free Trade from January

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African Countries Not Ready to Implement Free Trade from January

AfCFTA’s secretariat says adoption will be slow as many nations lack border facilities. In 2019, 14.4% of official African exports went to other African countries, a small proportion compared with the 52% in intra-Asian trade, according to Afreximbank.

Most African countries are not ready to implement the terms of the African Continental Free Trade Area when the new zone comes into effect on January 1, according to the head of the trade bloc’s secretariat.

Foreign Trade Deficit Worsens to N2.39 trillion amid Further Increase in Import Bill in Q3 2020 brandspurng1

Fifty-four African nations have committed to join AfCFTA but of the 33 countries to have ratified the agreement so far, many lack the customs procedures and infrastructure to facilitate tariff-free trade, said Wamkele Mene, secretary-general of the AfCFTA secretariat.

“It’s going to take us a very long time,” said Mr Mene, a South African trade expert elected by the African Union last February. “If you don’t have the roads if you don’t have the right equipment for customs authorities at the border to facilitate the fast and efficient transit of goods… if you don’t have the infrastructure, both hard and soft, it reduces the meaningfulness of this agreement.”

Mr Mene insisted that the free trade area, which covers a population of 1.2bn and countries with a combined output of $2.6tn, could still be transformative. “We want to move Africa away from this colonial economic model of perpetually being an exporter of primary commodities for processing elsewhere,” he said. “We want to stop approaching tariffs as a tool for revenue. We want tariffs to be a tool for industrial development.”

In 2019, 14.4% of official African exports went to other African countries, a small proportion compared with the 52% in intra-Asian trade and 73% between European nations in the same year, according to Afreximbank, a Cairo-based multilateral trade finance institution.

“We want to stop approaching tariffs as a tool for revenue. We want tariffs to be a tool for industrial development”- Wamkele Mene, secretary-general of the AfCFTA secretariat.

David Luke, who co-ordinates trade policy at the UN Economic Commission for Africa, said that goods traded within Africa were more processed than the raw materials exported from the continent to China, India, Europe and other major trading partners.

“Policymakers have understood that, although trade on the continent is limited, this is value-added trade,” he said. “This is where the jobs are coming from, as opposed to trading with the rest of the world, which is mostly commodities.”

Trade experts said the single market also offered investors potential economies of scale, enabling them, in theory, to manufacture goods in one country and export them tariff-free to the whole continent. Jeffrey Peprah, chief executive of Volkswagen, Ghana, said he hoped eventually to export cars assembled in Accra to other West African countries.

Mr Mene warned it might take years to bring countries’ laws into line with new requirements. Ethiopia, for example, prohibited foreign investment in its financial sector, a potential breach of AfCFTA rules, he said.

As a result, the secretariat could see a flurry of legal challenges from countries on behalf of their corporations, he said. “I’m not saying countries must rush to dispute settlement. All I’m saying is that, if they do, the jurisprudence will bring clarity to the body of trade law that we’ve developed in the form of this agreement.”

For the agreement to work, one western diplomat said the free trade zone must benefit producers in smaller, poorer countries as well as those in more industrialized parts of the continent.

Many countries saw the free trade area as a way of boosting their exports but few had embraced the corollary that they would need to import more, the diplomat said. Mr Mene said the secretariat was working with Afreximbank to establish a pan-African trading platform to allow smaller enterprises to trade effectively across borders and in different currencies.

“Often in trade agreements the big winners are the already industrialized countries and the big corporations who can access the new markets literally overnight,” he said.

If AfCFTA created too many losers and not enough winners, Mr Mene said, there could be a similar backlash against free trade as had occurred in the US and parts of Europe. Then Africans too would conclude, he said, “these trade agreements don’t work”.

NYSC Partners With IITA To Create Opportunities For Nigerian Youth (Photos)

Esan Bolaji
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NYSC Partners With IITA To Create Opportunities For Nigerian Youth (Photos)

The National Youth Service Corps (NYSC) and IITA are partnering to open up opportunities to youth in Nigeria. The two organizations signed a memorandum of understanding (MoU) to that effect during a recent visit of the NYSC Director-General, Brigadier General Shuaibu Ibrahim, to IITA Headquarters, Ibadan.

IITA Deputy Director General, Partnerships for Delivery, Kenton Dashiell, welcomed the NYSC delegation at the Akin Adesina building. He gave an overview of IITA’s history, and Kwesi Atta-Krah, IITA Director of Advocacy and Country Alignment Function, explained the Institute’s activities. The visitors saw more of these as they embarked on a tour of IITA research facilities and innovations.

NYSC partners with IITA to create opportunities for Nigerian youth Brandspurng
NYSC DG, Brig. Gen. Shuaibu Ibrahim, and Kenton Dashiel, IITA DDG Partnerships for Delivery, signing a Memorandum of Understanding (MoU). | www.brandspurng.com

After the tour, Dashiell said that youth have great potential, but they can only realize this when organizations like NYSC and IITA open the doors of opportunities they need.

“While we value our partnership with NYSC, we would like the youth to see and experience greater opportunities in agriculture and develop the skills they need to succeed in this sector. I believe that if IITA works with NYSC on this, it will be a gamechanger,” Dashiell said.

Dashiell appreciated the NYSC team for their service to the nation and their interest in collaborating with IITA. Gen. Ibrahim encouraged the corps members in IITA who are interested to tap into this opportunity and grow this partnership to the next level.

NYSC partners with IITA to create opportunities for Nigerian youth Brandspurng1
NYSC DG and team in a group photograph with IITA corpers and staff. | www.brandspurng.com

As he signed the MoU, the NYSC DG recommended that both organizations have a desk officer to act as an interface to meet timelines. He appreciated IITA, especially Director General Nteranya Sanginga, for his immense contribution to the youths’ success and assured taking the collaboration between IITA and NYSC to greater heights.

IITA Focuses On Integrated Digital Tools For Accelerating Agricultural Transformation In Sub-Saharan Africa

Esan Bolaji
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IITA Focuses On Integrated Digital Tools For Accelerating Agricultural Transformation In Sub-Saharan Africa

IITA has been at the forefront of using information and communication technologies (ICTs) for research management and knowledge sharing, including extension, scaling out, e-learning, collaboration, and agricultural services enhancement.

Recently, ICTs have fast emerged as frontline tools for transforming agricultural systems in sub-Saharan Africa. Governments, developmental organizations, and the donor community are increasingly depending on ICTs to unleash the potential of rural economies and bridge agricultural value chains for enhanced profitability.

Agribusiness-made-easy-through-the-use-of-ICT-brandspurng-IITA Focuses On Integrated Digital Tools For Accelerating Agricultural Transformation In Sub-Saharan Africa
Agribusiness made easy through the use of ICT | www.brandspurng.com

According to Alfred Dixon, Director, Development and Delivery, “IITA believes that sharing and delivery of knowledge and products for adoption by intended end-users using digital platforms are critical to achieving research and development outcomes.” Dixon, along with Lava Kumar, leads the Working Group on Digital Delivery in IITA.

He further pointed out that the use of ICTs to facilitate awareness creation, promote behavioural change among knowledge users, e.g., farmers or processors, and facilitate the adoption of technologies could contribute to the success of delivery efforts.

IITA has used ICTs for precision agriculture, digitalization of the research process, knowledge sharing, and service delivery through tailor-made digital tools, data repositories, and web platforms. Many of these developments emanated from various R4D projects and were designed to fit the project purpose with scope for broader applications.

Two workshops held in late 2019 brought together IITA teams and collaborators to showcase various apps developed in IITA. They also introduced IITA-developed digital tools to extension workers, media, and collaborators working in the same digital space and agricultural solutions or topics.

The workshops improved coordination and developed complementarity between and among ICT tool applications and users in the Institute. This led to practitioners establishing a working group that would develop the beginnings of a strategy on digital delivery and knowledge sharing for IITA.

Kumar said,

“These workshops emphasized the need to integrate and coordinate such efforts as it provides IITA the leverage to showcase its expertise and experiences in this field, among several other benefits.”

A Working Group on Digital Delivery was thus formed to improve the coordination, collaboration, and communication among the various developers of ICTs currently in use for research, development, and delivery at IITA.

This is expected to enhance synergy between the ICT applications, reduce redundancy, and expand the reach of digital delivery of solutions to farmers and end-users for increased impact.

In 2020, the Working Group undertook a survey to determine the available digital tools and the talent involved in the in-house development of such tools. This baseline survey on ICTs and mobile apps revealed the use of over 50 ICT applications developed in-house.

High usage of ICTs by the IITA community is expected, but many of these developments were uncoordinated, resulting in some redundancies and poor awareness about the state of development and progress outside the project structure, underuse of high potential apps beyond the intended scope, and data fragmentation.

The Working Group also came up with a strategy document that outlines several elements to enhance delivery and knowledge sharing. The story highlighting IITA’s efforts in this area can be found on pages 80 to 83 on this link 2019 Annual Report.

IITA gets biotechnology stewardship certification

FG To Establish 6 Correctional Facilities (Photos)

Esan Bolaji
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FG To Establish 6 Correctional Facilities (Photos)

The federal government disclosed on Saturday that it would establish six new modern correctional facilities in the six geo-political zones in the country.

Rauf Aregbesola, the Minister of Interior, made this known in Kano while inspecting the ongoing model maximum security custodial facility project at Janguza in Kumbotso Local Government Area of the state.

FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos)

Aregbesola said the project was part of projects initiated by the federal government to reform the correctional service.

The minister said:

“We are actualising our commitment to reform the correctional service that we have in Nigeria. What we have here is a model of what we expect to have nationwide. Here, we have a 3,000 custodial facility, which we plan to replicate in each of the six geo-political zones in the country. It is designed for inmates awaiting trial, a petty, medium and maximum security facility,”.

FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos)

Aregbesola, who expressed satisfaction with the project, commended President Buhari for his support to the correctional service reforms aimed at enhancing its operations.

In his remarks, the Controller-General, Nigeria Correctional Service (NCoS), Mr Ahmad Jafaru said that the project was designed with dormitories, school, hospital, skills acquisition centre and a mosque, among others. He said the project would be commissioned this year, adding that the ancient Kurmawa Maximum Prison had been upgraded into a rehabilitation centre.

FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos) FG To Establish 6 Correctional Facilities (Photos)

African FTA Growth Impact Too Small to Affect Ratings

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African FTA Growth Impact Too Small to Affect Ratings

The implementation of the African Continental Free Trade Agreement (AfCFTA) on its own is unlikely to be a driver of rating adjustments for regional sovereigns. It could be credit positive in the longer term if successful trade liberalisation leads to an improved business environment more broadly and stronger economic growth in Africa, says Fitch Ratings.

The AfCFTA, which came into effect on 1 January 2021, is set to reduce tariff and non-tariff barriers between its 54 African member states, encompassing all members of the African Union (AU) except Eritrea.

The agreement commits signatories to the phased removal of tariffs on 90% of goods and provides mechanisms for the resolution of trade disputes. It also includes the ambition to lower non-tariff trade barriers, liberalise trade in services, and advance mutual recognition of standards and intellectual property protection.

African FTA Growth Impact Too Small to Affect Ratings Brandspurng1

The impact of trade liberalisation should be positive for the region’s economic potential, but the scale of the impact is likely to be small.

A study published by the AU Commission and OECD in 2019 estimated that removing all tariffs on intra-African trade could boost GDP by 0.65%, a figure that would rise to 3.15% of all non-tariff barriers were also removed. Increased trade integration could support manufacturing investment and productivity gains, but we would expect this impact to materialise only in the long term.

Intra-African trade is currently low. Among Fitch-rated sovereigns in Africa, the median share of exports to other African states in total 2019 exports of goods was just under 19%, based on IMF data.

This is lower than in emerging Asia, a larger region, while broadly in line with trade among developing economies within Latin America or among transition economies in Europe. It reflects in part economic specialisation in primary commodities and Africa’s small share of global GDP.

The number for Africa may be distorted up by the inclusion of re-exports, give the large number of landlocked countries in the continent which receive shipments via ports in neighbouring countries. However, it does not cover informal trade, which is important in many countries.

Exports to ACFTA Signatories as Share of Total Exports (%)

African FTA Growth Impact Too Small to Affect Ratings Brandspurng
Source: Fitch Ratings, IMF Direction of Trade Statistics, Haver Analytics

It is not yet clear how effectively the terms of AfCFTA will be implemented or enforced. Governments may be unwilling to accept limitations on their ability to enact policy, particularly if trade liberalisation requires politically unpopular decisions or interferes with domestic subsidies and exchange controls.

It is notable that Nigeria, the continent’s largest and most populous economy, imposed an effective bar on land-border traffic for goods and persons in August 2019, shortly after signing up to AfCFTA, lifting the restrictions only in December 2020.

We believe the removal of non-tariff barriers to trade under AfCFTA is likely to lag behind the agreement’s ambitions, which may blunt its effect. The impact of the East African Community customs union, for example, has been limited by a lack of integration and removal of non-tariff barriers, despite its 15-year history.

Moreover, regional trade growth will continue to face obstacles. Infrastructure shortfalls, including poor roads and port congestion, remain a substantial challenge. More broadly, a lack of reliable power supplies and constraints on access to funding will continue to curb the potential for manufacturing production. Foreign-currency restrictions and bureaucratic impediments further hamper intra-regional trade.

AfCFTA should not affect sovereign creditworthiness, being unlikely to drive a significant change in economic prospects in the near term. Other factors, including the impact and policy response to Covid-19 and macroeconomic stability more generally, will exert a stronger influence on sovereign ratings.

Nonetheless, there is the potential in the longer term for AfCTFA to have a positive effect on economic policies and to support growth and creditworthiness indirectly.

IITA’s Work, Fundamental To Africa’s Stability And Development – Belgian Ambassador

Esan Bolaji
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IITA’s Work, Fundamental To Africa’s Stability And Development – Belgian Ambassador

On a recent visit to IITA Ibadan, the Ambassador of the Kingdom of Belgium to Nigeria, His Excellency, Mr Daniel Bertrand, described the Institute’s work as fundamental for Africa’s stability and development. The Ambassador visited the headquarters for the first time to engage with and understand IITA’s research and operations better.

The Belgian Embassy’s Director, Political and Economic Affairs, Stef Commers, accompanied Ambassador Bertrand. A team of IITA senior management and research staff led by the Deputy Director-General, Partnerships for Delivery, Kenton Dashiell, received the diplomats.

The Belgian delegation meeting with the IITA team before touring the research facilities.
The Belgian delegation meeting with the IITA team before touring the research facilities. | www.brandspurng.com

In his welcome address, Dashiell spoke about IITA’s history from its 1967 inception in Nigeria. “We love working in Nigeria. This is such an important country for Africa and, we believe, for the world.” He said Nigeria’s success in agriculture would help drive the African economy forward, and IITA is proud to be a part of that endeavour.

Dashiell thanked the Belgian government and the people of Belgium for their strong support to IITA over the years, including their support for the banana and cassava breeding programs and the Consortium for Improving Agriculture-based Livelihoods in Central Africa (CIALCA).

One of IITA’s Belgian scientists and Banana Breeder, Rony Swennen, guided the Ambassador through the Institute’s banana research, which takes as much as 20 years to develop high yielding varieties.

He highlighted the success of recently approved varieties in Tanzania and the set-up of a tissue culture facility in Mali. The Director of IITA Central Africa Hub, Bernard Vanlauwe, another Belgian national, gave a presentation underscoring the importance of Belgian support in IITA-related programs, including CIALCA.

The Belgian delegation meeting with the IITA team before touring the research facilities.
Belgian Ambassador HE Daniel Bertrand (center) and Director, Political and Economic Affairs, Stef Commers (3rd from left), with the IITA team. | www.brandspurng.com

During a tour of IITA facilities, the Ambassador made a quick stopover at the Cassava Processing Center. Molecular Geneticist/Breeder Ismail Rabbi, Assistant Cassava Seed Systems Specialist Mercy Diebiru-Ojo, and International Trials Manager Peter Iluebbey gave presentations showcasing the different processes in the cassava value chain, from breeding to value addition and distribution.

Ambassador Bertrand said that he had a positive first impression of IITA’s work and is pleased with how Belgium is contributing to the effort.

During his career in the development sector, he realized “that food and resources are at the centre of conflicts and, you know with demographic growth, food production is vital to stabilize a country, to stabilize a region.” This is why he believes in the importance of the Institute’s work.

The Belgian delegation meeting with the IITA team before touring the research facilities.
Assistant Cassava Seed Systems Specialist Mercy Diebiru-Ojo giving Ambassador Bertrand a presentation on the cassava value chain. | www.

“Food and Agriculture are vital for the development, and I would say survival of Africa,” said the Ambassador. He thanked IITA for what it is doing for the African continent.

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