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Visa openness needed to boost trade, tourism —AfDB Veep BY DOMINICK ANDOH (WHATSAPP +233 243376878)
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r. Khaled F. Sherif, Vice-President, Regional Development, Integration and Business Delivery of the African Development Bank (AfDB) has called on African countries to liberalize their visa regimes to encourage more intra-Africa trade and tourism and to reposition the continent for future growth According to the 2020 Africa Visa Openness Index recently published by the African Union Commission and African Development Bank, more countries on the continent are liberalizing their visa regimes and welcoming African travelers. The 2020 Index shows that a record 54% of the continent is accessible for African visitors, who no longer need visas to travel or can get one on arrival, up by 9% since 2016. In 2020, The Gambia joins Seychelles and Benin in allowing visa-free access for all African travelers. In addition, 20 countries moved upwards in rank on the Index, while 50 countries improved or maintained their scores. The report shows a significant rise in e-Visas, offered by 24
countries in Africa. Notwithstanding the gains made, findings show that African citizens still need visas to travel to 46% of African countries. Countries in East and West Africa rank highest among the top
performers, worthy of emulation by countries in the other regions. The Index’s findings reinforce the benefits of prioritizing visa openness solutions in large and small economies, with the biggest gains accruing to
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South African Airways prepares to relaunch in 2021 The Department of Public Enterprises (DPE) has announced an interim six-member South African Airways (SAA) board as the airline prepares to relaunch in 2021. In a statement on Wednesday, the department said Geoff Qhena will chair the board, which also comprises Peter Tshisevhe, June Crawford, PAGE 02
ACI avails fifth COVID-19 economic impact analysis Airports Council International (ACI) World has published its fifth COVID-19 economic impact analysis revealing the devastating effect on the airport industry and the prospects for recovery. PAGE 03
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South African Airways prepares to relaunch in 2021 Bembe Zwane, Professor Edna van Harte and Nick Fadugba. The six, said DPE, are expected to restore proper governance and oversight of the airline during the implementation of a business rescue plan. “As a shareholder on behalf of the government, the DPE is delighted that these experienced professionals have agreed to join the board of SAA. Their combination of academic, financial, legal and aviation experience, with deep knowledge of global aviation and transportation trends, will bring a new perspective as the national carrier prepares to relaunch next year.” The appointments, it said also enhances the independence and balance of the board, whilst continuing the process of transformation and renewal. Qhena is a qualified Chartered Account and a seasoned finance executive. He is a former Chief Executive Officer of the Industrial
Development Corporation, where he was at the helm for 13 years. Tshisevhe is a mergers and acquisitions lawyer with extensive experience in transaction advisory services. He is a director and partner at TGR Attorneys, a leading commercial law firm in Johannesburg. He is also a part-time lecturer at Wits University Law School. He has been retained from the previous board to provide continuity. Crawford, who leads the Aviation Working Group of the South African Business Council, is a leading aviation and tourism leader and professional. She has been the Chief Executive Officer of the Board of Airlines Representatives of South Africa, director at the Air Traffic and Navigation Services and Deputy Chairperson of the Tourism Council of South Africa. Meanwhile, Zwane is an aviation entrepreneur who is a part-owner in an aviation training solutions provider,
a car rental business and an aviation logistics business. She is a former executive at Imperial Logistics and Equity Aviation. Professor Van Harte is an academic and former dean of the faculty of Military Science at the South African National Defence Force’s military academy at Saldanha Bay and former Chairperson of the Defence Service Commission. She has served on various boards and commissions. Sixth board member Nick Fadugba, is an aviation professional with many years in consulting and promoting aviation development on the African continent, including leading the African Airlines Association. He has served as the Chairperson of the African Business Aviation Association and has been involved in discussions on a Single African Air Transport Market (SAATM). In charting the way forward, the DPE said it believes that the key to solving the difficulties facing SAA is
the finalisation and implementation of the business rescue process, followed by the start of a restructured airline; appointment of a leadership team; and securing a credible strategic equity partner who can introduce the required technical, financial, and operational expertise into the business. “The new airline will be run in a professional and sustainable manner to support key economic sectors – including tourism, trade with the continent, the local aeronautics industries and local service providers,” said the department. (Source: www. sanews.gov.za)
Visa openness needed to boost trade, tourism —AfDB Veep business, investment, innovation and tourism. Additionally, Further facilitating the free movement of people, goods and services, becomes even more important with the start of trading under the African Continental Free Trade Area (AfCFTA) on 1 January 2021. Dr. Khaled F. Sherif said: “As the evolving fallout of the COVID-19 pandemic has shown, countries increasingly need to look beyond domestic frontiers to boost their economic prospects. Visa openness will support Africa to reposition its future growth.” As close to half of African destinations ease travel restrictions in line with plans to manage the pandemic, travel safety and security remain foremost in policymakers’ and people’s minds as it concerns opening up of borders, and as governments
update measures for permitting travel. As African destinations ease travel restrictions, Amb. Kwesi Quartey, Deputy Chairperson, African Union Commission, notes that: “As the time has come to safely reopen and revive economies across Africa, it is imperative to institute measures that propel the continent and all its citizens forward. Liberalizing a country’s visa regime is a policy tool that can be quickly adopted to do this.” The Africa Visa Openness Index measures the extent to which African countries are open to travelers from other African countries when it comes to visas by looking at what they ask of the citizens when they travel into their countries. The Index is tracking changes in country scores over time to show which countries are making improvements that support people’s freer movement across Africa.
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ACI avails fifth COVID-19 economic impact analysis
The Advisory Bulletin, The impact of COVID-19 on the airport business, reveals the global airport industry will record a reduction of more than 6 billion passengers by the end of 2020 compared to the pre-COVID-19 forecast for 2020, representing a decline of -64.2% of global passenger traffic. Europe and the Middle East are predicted to be the two most impacted regions – with declines above -70% compared to the
projected baseline – while AsiaPacific has embarked on recovery earlier and faster than other regions and is forecasted to close the year 2020 with a decline of -59.2%, which was driven by large domestic markets such as China. Asia-Pacific is the only region recording a decline below -60%. The airport industry was expected to generate about $172 billion (all figures in US Dollars) this year but the COVID-19 crisis impact on airport
revenues will result in a reduction of $111.8 billion (or -65% compared to the pre-COVID-19 forecast). ACI World has developed scenarios exploring the potential recovery trajectory and, under the baseline scenario, domestic passenger traffic is expected to recover to 2019 levels by 2023 with the recovery of international passenger traffic following in 2024 “The pandemic has resulted in a full-scale transportation crisis with
the aviation brought to a virtual halt in April following lockdowns imposed in many countries in the second half of March.” ACI World Director General Luis Felipe de Oliveira said. “We are now seeing some positive signs and prospects are slightly better for recovery but there is still a long way to go. One thing is certain, the world will be different after this pandemic. “Recent announcements of successful vaccine trials are offering hope for a sustained recovery, but vaccination campaigns will take time and the industry needs government assistance and policy support now to lay a solid foundation for recovery. “A consistent approach to testing should be implemented now to promote travel and do away with restrictive quarantine measures with a coordinated and risk-based approach to combining testing and vaccination introduced going forward “Tests and vaccines together will play a key role on the industry recovery, providing passengers with a safe travel environment and foster confidence in air travel. ACI World also found that, in the long run, it is predicted that the global traffic may take up to two decades to return to previously projected traffic levels.
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The Debt Dogs that Didn’t Bark BY BARRY EICHENGREEN
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ast March, when COVID-19 infected the world economy, many observers feared that emerging markets and developing countries would suffer the most, financially and otherwise. Economically, they relied on commodity exports, remittances, and tourism, all of which fell through the floor with the pandemic. There was every reason to expect a tsunami of financial crises and debt defaults. The tsunami never arrived. Just six countries – Argentina, Ecuador, Belize, Lebanon, Suriname, and Zambia – have defaulted on their sovereign debt, and only the first two have restructured their debts. But much like Sherlock Holmes’s dog that didn’t bark, it’s hard to know whether to be reassured or alarmed by the silence. Reassuringly, the impact of COVID-19 on developing countries, in Africa specifically, has been less than feared. Their young populations are relatively resistant to the coronavirus. Their health systems, in responding to past epidemics, have gained the public’s trust. And China’s quick recovery boosted demand for their commodity exports. Financially as well, current conditions are surprisingly stable. In March, when the crisis erupted, emerging markets hemorrhaged capital. In April, however, the outflows tailed off, and net flows to emerging economies have been positive and growing since. It is not hard to see why. Yields on US ten-year Treasury bonds are below 1%, and the dollar is widely expected to depreciate. European government bond yields are negative. In this environment, a Thai government bond yielding 1.35% is irresistible, even though Thailand displays classic signs of financial trouble ahead: a tourism-dependent economy expected to contract by 7% this year and a government that lacks popular support. If global growth resumes in 2021, aided by the rollout of vaccines and the Fed’s continued commitment to ultralow interest rates, some developing countries may skate through. Yieldhungry investors will continue to display an appetite for their bonds. But other countries, having been hit harder by declining export earnings and collapsing remittances, will have obligations to meet. The Institute of International Finance estimates that nearly $7 trillion of emerging-market
debt will fall due in 2021, triple this year’s level. This is not a crisis that will materialize at some indeterminate future date. The dog will start yowling next year. Where governments have issued debt domestically, their central banks can buy it up, but only at the cost of crashing the currency and scaring off private investors. In addition, twice as much foreign debt is coming due in 2021 compared to this year. Much of this has been rendered effectively unpayable by the economic shock of the pandemic. The G20 has responded with a Debt Service Suspension Initiative (DSSI) that allows 73 low-income countries to defer payments on their governmentto-government debts for a year and a half. The single largest bilateral creditor, China, is now on board, after some initial hesitation. The DSSI is imperfect. Limiting the duration of the suspension and deferring rather than forgiving the interest is a bit miserly. Countries are reluctant to apply for fear of ratingagency downgrades, as happened to Cameroon. Distressed middleincome countries are excluded. Still, something is better than nothing.
The problem is getting private creditors to scale back their claims. Last April, the G20 “called on” private creditors to agree to comparable concessions. Unsurprisingly, their calls went unheeded. Investors were more concerned, predictably, with their own portfolios than the plight of lowincome countries. Subsequently, G20 governments made clear that they had no intention of deferring their claims if the money this freed up simply went to pay off private creditors. But the private sector has made equally clear that it has little interest in concessions. History tells us that private debts are restructured only when creditors become convinced that half a loaf is better than none. And investors are still hoping for the full loaf, with the official sector helping to feed it to them. What more can be done? The United Nations Security Council could pass a resolution instructing its members to shield the assets of low-income countries from litigious creditors, much as it shielded Iraqi assets following the removal of Saddam Hussein. The US Congress could give this measure force of law. Or, after January 20, 2021, President
Joe Biden could issue an executive order instructing the courts to proceed accordingly, as President George W. Bush did in the case of Iraq in 2003. Is there a chance of this happening? Consensus within the UN Security Council is hard to achieve and even harder to maintain. The incoming Biden administration will have limited political capital, limited bandwidth, and an abundance of other problems. Whether it will be prepared to confront the big institutional investors – can you say BlackRock? – remains to be seen. I am optimistic about economic recovery in 2021, but I am less optimistic about the political wherewithal to muzzle the debt dogs. It would please me greatly to be proved wrong.
Barry Eichengreen is Professor of Economics at the University of California, Berkeley. His latest book is The Populist Temptation: Economic Grievance and Political Reaction in the Modern Era. Copyright: Project Syndicate, 2020. www.project-syndicate.org
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UNWTO holds crisis meeting on harmonization of cross-border travel procedures The Global Tourism Crisis Committee has met for the last time in 2020, to continue advancing coordination and cooperation among all parts of the sector. The virtual meeting of the Committee, established by the World Tourism Organization (UNWTO) at the start of the pandemic, was hosted by Portugal ahead of its Presidency of the Council of the European Union, beginning in January. It was accompanied by in-person meetings of the highest political level between the UNWTO leadership, Prime Minister António Costa and the Ministers Foreign Affairs, Augusto Santos Silva. This seventh meeting was focused on ensuring efforts to restart tourism are coordinated and harmonized in terms of cross border travel both pre and postvaccine. UNWTO Secretary-General Zurab Pololikashvili called for more explicit affirmation from governments and international organizations that safe travel is possible and so tourism
can restart responsibly. The meeting began with a message of support from the very highest level of the European Institutions. Margaritis Schinas Vice President of the European Commission, applauded the coordinated approach to addressing the key challenges facing tourism’s restart while stressing the importance of the sector to Europe’s economies and the steps already taken to support businesses and jobs, including through unprecedented levels of financial assistance. Looking beyond vaccines Making contributions to the meeting were Harry Theoharis, Minister of Tourism for Greece and Chair of the Committee’s Technical Group, created in October to advance harmonization of protocols. Alongside this, Nedret Emiroglu, Director, Country Readiness Strengthening, Emergency Preparedness, at the World Health Organization (WHO) outlined the necessary steps for harmonized health
and safety protocols for international tourism. As vaccinations for the COVID-19 virus begin to be administered, the Committee also engaged in a special session on post-vaccine cross-border travel. Committee members stressed that, while recent breakthroughs serve to boost confidence, the tourism sector cannot wait for vaccinations to become a widespread reality. Portugal signals strong support for UNWTO Portugal hosted the meeting of the Global Tourism Crisis Committee just weeks before it is scheduled to assume the Presidency of the Council of the European Union. Secretary-General Pololikashvili received assurances of the highest level during a meeting with António Costa, Prime Minister of the Portuguese Republic. The UNWTO leadership thanked the Prime Minister for his government’s strong and ongoing support for tourism and for recognizing the important role
the sector can play in the country’s social and economic development. This was followed by a meeting between the Secretary-General and Augusto Santos Silva, Minister of Foreign Affairs for Portugal. The country’s strong support of UNWTO’s mission and its commitment to tourism as a driver of development and growth was reaffirmed by Rita Marques, Secretary of State for Tourism. Furthermore, the visit also encompassed the whole spectrum of key priorities– from driving coordination to achieving high-level political support for the sector. Innovation, recognized for its potential to advance recovery and build a more sustainable future for tourism, was also at the fore as the UNWTO delegation met with Portugal’s Secretary of State for the Digital Transformation, André de Aragão Azevedo to discuss start-ups, innovation and their vital place in the future of Portuguese tourism.
Lufthansa Group scoops top airline position on climate protection Once again, the Lufthansa Group has received a positive score on climate protection from the rating organization CDP. For the third time in a row, the aviation group was rated “B” in the world’s largest climate ranking, maintaining its top position among the airlines in Europe. In particular, the ranking confirms the Lufthansa Group’s high level of transparency in the disclosure of CO2 emissions data: Here and in the area of governance, the CDP even awarded the company the top grade “A”. “We are delighted once again about the positive rating in the global CDP ranking. Even during difficult economic times, we are continuing our efforts to make aviation more climatefriendly. This includes investments particularly in fuel-efficient aircraft and the various projects in the field of sustainable aviation fuels. With the ‘mindfulflyer’ application, we have just made it possible for Miles & More members to offset the CO2 emissions of their air travel quickly and easily in the app,” says Christina Foerster, Lufthansa AG Executive Board
Member for Customer, IT & Corporate Responsibility. The Lufthansa Group has been participating in the CDP reporting since 2006, providing relevant interest groups with transparent
information about its climate protection strategy and measures to reduce CO2 emissions. The CDP data is also used to a large extent in other assessments by leading rating agencies. CDP Climate Scores are
awarded annually on a scale from “A” (best result) to “D-”. Companies that provide no or insufficient information are graded with “F”.
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Africa’s Dream Destinations
Namibia Namibia is one of the few countries in the world to hold a travel expo amid the COVID-19 pandemic and is also one of the few countries in the world to open up for international tourist arrivals. Secretary General of the United Nations World Tourism Organisation, Zurab Pololikashvili, recently visited the country and launched the Namibian Tourism Expo 2020. This beautiful country’s landscape, wildlife, food and culture capture the beautiful past and celebrates the dynamism and energy of the present generation. It is the featured African destination for this edition. Air Namibia, Ethiopian Airlines and a host of other airlines fly to Namibia from their hubs. Do log on to aviationghana.com to book your trip to this destination. Here are some unusual attractions you ought to see in Namibia.
destination. Guided tours take visitors around the town and through the houses which, today, are filled only with sand. 2. Namibia Sand Sea
1. Kolmanskop Ghost Town, Namibia
The remains of diamond fever taken over by the desert by atlasobscura.com People flocked to what became known as Kolmanskop, Namibia, after the discovery of diamonds in the area in 1908 by Zacharias Lewala, a railway worker, who picked up what he thought was an unusually shiny stone, and showed it to his supervisor. The supervisor, August Stauch, immediately applied for a prospector’s license, and verification confirmed that the first diamond in the region had been found. The diamonds were in such supply that they could be picked off the ground by bare hands, and soon the area was flooded with men wanting to make their fortune. As people arrived with high hopes, houses and other key buildings were built. The new town, which was German-influenced, saw the construction of ballrooms, casinos, theaters, ice factories, and hospitals, as well as the first X-ray station in the southern hemisphere. Prior to World War I, over 2000 pounds (1000 kilos) of diamonds were sifted from the sands of the Namib desert, and Kolmanskop became a diamond boom town. During the war, however, the price of diamonds dropped considerably. On top of this, larger diamonds were later found south of Kolmanskop, in Oranjemund. People picked up and chased after the precious stones. By 1956, the town was completely abandoned. Today, the eerie ghost town is a popular tourist
occurring, so far as anyone can tell. The small, circular patches of bare ground form like bald spots in the otherwise thick grass or fields in Namibia and South Africa, where humans often don’t set foot. Their mysterious origin has lead them to be called “Fairy Circles” colloquially, and legends ranging from local tales of god’s footprints to international recognition as a “UFO hot spot” have sprouted up in short order. But the Fairy Circles are not grand designs like their distant paranormal cousins, crop circles, and bona fide scientific research has led to the conclusion that not only do they occur naturally, but they grow and shrink over time, as if they were alive. Examination of the soil in and around the circles reveals no abnormal insects or parasites, no unusual fungus to speak of. All science has discovered thus far is that they’re not a hoax. 4. Hoba Meteorite near Grootfontein
The beautiful red sand of the Namib Sand Sea flows right up to the actual waves of the ocean. It’s one of the world’s only coastal deserts, with dune fields winding over its 3 million hectares. There are two dune systems at work here, one that is ancient and one that is young. It’s also known as the world’s oldest desert, believed to have been formed by the erosion of materials from thousands of kilometers away. While it is incredibly arid, with fog as the primary source of water, the desert still boasts a wide array of endemic wildlife, including the Welwitschia plant, the Dune Lark, and various reptiles and invertebrates. The Namib Sand Sea was named an UNESCO World Heritage Site in 2013. 3. Fairy Circles of Southern Africa, Namibia
Picture By Stephan Getzin They call them footprints of the gods. Whether in the thickly tufted prairie grass of the southern plains or in the dry stalks of vegetation in the dusty foothills, something is happening in Southern Africa. It doesn’t really matter what the climate or soil conditions are, or who is there to see it or not, or what grazing pattern the local wildlife happens to follow. Rings are forming in the ground. Perfectly round, almost too-good-to-be-true rings, in fact. But they are true, and they are naturally
As the largest known meteorite known on earth, you would think that this 60-ton iron-nickel meteorite would have left an immense blast crater when it fell to earth nearly 80 million years ago. As you head down the dusty roads into the valley where the Farm Hoba is located, the black rock running through the sides of the surrounding hills look as if there was a massive explosion. No one is certain how the meteorite arrived in that spot; it may have bounced across the earth from the original impact site to its present site. The large cuboid shape (about 3-by-3 meters around and 1 meter high) was discovered in 1920 by the owner of the farm, Jacobus Hermanus Brits, when his plow struck it. Brits heard a metallic clang, and his oxen couldn’t pull the plow any further. The American Museum of Natural History in New York City tried to purchase the meteorite in 1954 but couldn’t move it, and the site was declared a National Monument in 1955, though you couldn’t visit it until 1985. The site has now been improved with a pleasant grassy garden and picnic area, as well as easy access to the meteorite. It’s a joy to stand upon as you ponder the rock’s extraterrestrial origins, not to mention its incredible age: The meteorite is estimated to be between 200 and 400 million years old. (www.atlasobscura.com)
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Africa’s Dream Destinations
Namibia (Experiences) ‘The beauty of the desert in Namibia took my breath away’
This photograph, taken in the Namib desert in 2018, captures a sense of freedom for me, that feeling of vastness we get from spending extended time in the wild. I was on a horse-riding safari: 11 days of being outside all day and sleeping beneath the stars. We covered 300km; it was extraordinary. I’d never been to Namibia and although I’d been told about the breathtaking landscape, it still did exactly that … took my breath away. You think of riding through the desert and imagine it will be all sand – but every day the scenery was so diverse – from the plains along the edge of the Namib sand sea in Sossusvlei to mountains and the dramatic, deep Kuiseb Canyon and Gaub Pass. We rode through the Welwitschia plains, Moon valley and along the Swakop River. We were a small group of riders on an adventure with Namibia Horse Safari Company, which always took along a few spare horses, so that any animal that needed a rest could have a day off. In this picture, Telane Greyling, horsewoman extraordinaire, is riding alongside two loose horses. They would just run along with us, sometimes playing around and slaloming with the riders. We galloped across plains and wide-open spaces for what seemed like forever. You get a different appreciation of space and land when you travel on horseback: you feel part of the landscape. It’s slow travel – but I still got caught out by the scenery’s many changes. When did those mountains suddenly appear? How did the endless flat suddenly become rocks? Our guide Andrew Gillies knew the desert intimately and navigated instinctively. Perhaps my favourite part was sleeping under the stars. Tents were available but there was such magic without, even though the temperature dropped below zero some nights and frost greeted us in the morning. I loved sleeping near the horses, hearing them eat, seeing their silhouettes. We would wake before dawn to get ready for another day. There were challenging times: walking out of a steep canyon, leading our horses on a narrow track with sheer drops was tough but incredible, and seeing the horsemanship of Telane and Andrew and the communication they had with their animals was humbling. We learned about the plants and the environment along the way. This part of the desert is sparse in terms of big wildlife – along the ride we saw mountain zebra, oryx, springbok and on one
occasion, a few giraffes, which, for a little group in a huge landscape, added to the sense of wonder. In another part of the desert there are wild horses, a herd believed to be descended from animals that escaped the bombing of the Union of South Africa Troops stationed at Garub in 1915. The horse safari company offers a ride that ends with watching the wild horses while Telane gives a talk about them. She’s involved with the Namibia
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Wild Horses Foundation, which monitors the horses’ health without interfering, only topping up their feed when they need it during a drought. When it was revealed a few years ago that every foal born in the past six years had been taken by a predator, the foundation got government recognition and enough was done to save the horses and they are now breeding again. (Source: The Guardian)
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