J# 8 WN#8 NN N =8N# J S#=8N =J 1 1;]; WN#8 NN =`# ìô...2020/03/24 · s a f e t y o f t h e i r w...

COVID-19:LEGAL & BUSINESS

CONSIDERATIONS FOR

AFRICAN BUSINESSES

PREPARED BY

INTRODUCTION

BROOKS & KNIGHTS LEGAL CONSULTANTS PAGE 01

IntroductionThe COVID-19 pandemic is becoming

one of the most ser ious threats to

global markets and internat ional t rade

seen in recent t imes. Border c losures

and travel restr ict ions inst i tuted by

di f ferent countr ies to restrain the

spread of the vi rus, have adversely

af fected transportat ion and other

supply s ide businesses and service

providers. [1]

Uncertainty about the disease has

plagued stocks, bonds and futures

markets wi th negat ive impl icat ions.

Financial markets have suffered losses

and global economic forecasts are

being reassessed and downgraded to

account for the loss in t rade and

income to businesses and

governments resul t ing f rom the

pandemic. [2]

Asian, American and European

governments and pol icy makers have

pursued pol ic ies of social d istancing,

quarant ines and business closures to

curb the spread of the vi rus, [3] a long

with st imulus packages to support

businesses and indiv iduals dur ing the

intervening per iod when work in many

business sectors wi l l be restr icted.[4]

Across the world, in addi t ion to theeffects of the pandemic, markets aresimultaneously suf fer ing the ef fectsof an oi l pr ice war between Russiaand Saudi Arabia, which has seen oi lpr ices fal l ing as low as $21 for WTICrude and $25 for Brent crude (perbarrel) , wi th analysts predict ing a$20/ barrel o i l market. [5]

Afr ica is current ly exper iencing anincrease in cases of COVID-19[6] andAfr ican governments and pol icymakers are pursuing simi lar pol icystrategies[7] as their Asian, Americanand European counterparts. Theserestr ict ions along with the concerningstate of the markets discussed above,have impl icat ions for Afr icanbusinesses, in their deal ings withtheir employees, investments andtrade deal ings and in their deal ingswith the government and regulatoryagencies. Some of theseconsiderat ions wi l l be consideredbelow.

AFRICAN

BUSINESSES &

EMPLOYEES


African Businesses and

EmployeesAfr ican countr ies such as Ghana,Kenya, Niger ia and South Afr ica haveinst i tuted travel restr ict ions, socialdistancing and/ or quarant ine pol ic ies.[8] These pol ic ies are bound to af fectbusinesses as they are general lyobl igated to comply wi th governmentpol ic ies especial ly dur ing a publ icheal th cr is is.

This wi l l inevi tably resul t in businesseschanging their work environmentpol ic ies to protect the heal th andsafety of their workplaces andemployees whi le pr ior i t iz ing businesscont inui ty and the maintenance of thequal i ty of services provided. This may,in some cases, lead to the inst i tut ionof remote work pol ic ies for employees,especial ly those with the capaci ty towork f rom home.

M e a s u r e s f o r W o r k p l a c eE n v i r o n m e n t sBusinesses are encouraged to inst i tuteworkplace heal th and safety prevent ivemeasures and guidel ines in l ine wi ththe World Heal th Organizat ionguidel ines, [9] including ensur ingworkplace environments are c lean andhealthy and promot ing good personaland respiratory hygiene for employees,cl ients and other v is i tors to theworkplace. Restr ict ion of business

travel may be necessary, especial ly inl ight of the t ravel restr ict ions andborder c losures inst i tuted by var iouscountr ies. Companies may also need toinst i tute new sick and annual leaverules to account for i l lnesses andsymptoms pecul iar to COVID-19 and tocater to employees that may prefer tosel f -quarant ine where symptoms arenot evident or the certainty of suchpersons’ contacts wi th infectedpersons is not c lear.

Businesses in essent ia l services areencouraged to consider and mit igatethe r isk of employee lawsui ts relat ingto occupat ional safety and heal thstandards in the workplace. Afr icanbusinesses in the agr icul tural sector,an essent ia l industry for food secur i tydur ing the pandemic, wi l l have toconsider how they manage theirworkplace environment and workerinteract ions dur ing COVID-19,as theymay not be subject to the outr ightrestr ict ions of other manufactur ing andproduct ion industr ies, yet they areresponsible for ensur ing heal thy andhygienic workplaces, especial ly dur ingthe pandemic.

C o n s i d e r a t i o n s f o r R e m o t e W o r kP o l i c i e sAfr ican businesses must also considerand plan for the impl icat ions of remoteworking pol ic ies, especial ly thoseconsiderat ions that are pecul iar to


businesses in Afr ica. For example, theavai labi l i ty of stable power supply andinternet access for employees workingout of the formal of f ice space may be asigni f icant business cont inui ty concernfor Afr ican businesses inst i tut ing remoteworking pol ic ies.

Other general issues such as the ef fectof working from home on work andemployee product iv i ty should also becareful ly considered and planned for.Some helpful measures that businessesmay undertake in th is regard includeproviding employees with al ternatepower and internet for remote work andensur ing employees log and account fortheir hours. However, businesses mustmake the necessary cost-benef i tanalyses in deciding on sui tableopt ions.

For Afr ican businesses in sectors suchas manufactur ing, mining of naturalresources and agr icul ture, which usual lyemploy day labourers and involve higherlevels of c lose contacts betweenworkers, social d istancing and othershel ter- in-place pol ic ies may amount tolayoffs for workers wi thin thoseindustr ies. Some of the governmentpol ic ies discussed in paragraph 4 below(Afr ican Businesses andGovernment/Regulatory Agencies) mightbe relevant to these businesses andemployees.

C o n s i d e r a t i o n s f o r B u s i n e s sR e o r g a n i z a t i o n sThe ef fect of reduced trade andbusiness, especial ly f rom a depressedinternat ional t rade market, wi l l af fectcompany budgets and income and mayin turn resul t in businessreorganizat ions, reduct ion in employeework hours and potent ia l layoffs ofemployees. These businessreorganizat ions are general lyexpected and may even be al lowed,subject to certain considerat ionsincluding the provis ions of relevantlabour laws and ant i -d iscr iminat ionlaws.

L a b o u r a n d A n t i - D i s c r i m i n a t i o nL a w sEach Afr ican country wi l l have i ts ownlabour and ant i -d iscr iminat ion laws thatthe Afr ican businesses within i tsjur isdict ion wi l l be subject to.

Businesses are expected to complywith the provis ions of these laws whenconsider ing reorganizat ion due to theCOVID-19 pandemic. From aninternat ional perspect ive, Afr icanbusinesses may also consider theprovis ions or pr inciples of theDiscr iminat ion (Employment andOccupat ion) Convent ion, 1958 and


the Right to Organize and Col lect iveBargaining Convent ion, 1949, whichare internat ional labour guidel inesrat i f ied by al l Afr ican countr ies. [10]

Afr ican businesses operat ing in sectorswith employees that have col lect ivebargaining powers[11] may be requiredto prepare more detai led businessreorganizat ion plans than those withoutsuch considerat ions.

Employers consider ing layoffs arebound to comply wi th ant i -d iscr iminat ion laws and pol ic ies. Theimpl icat ion of th is is that businessesmay not s imply terminate s ickemployees, employees exhibi t ingsymptoms, employees with high r isk ofi l lness f rom COVID-19, or employeesin contact wi th potent ia l ly i l l persons,nei ther may they be seen to do sowithout legal ly adequate just i f icat ions.

Recommending quarant ine, s ick and/or other paid leave for employeesshould be in accordance with theprovis ions of business handbooks andrules r igorously prepared to accountfor COVID-19 si tuat ions.

Instruct ing employees who are s ick orpotent ia l ly exposed to COVID-19 toundergo sick leave or other remotework measures, may not inevi tably

lead to terminat ion. In order to protectthemselves in the event of some of theinevi table post-COVID-19 unlawfulterminat ion or workplace discr iminat ionlawsui ts, Afr ican businesses areencouraged to develop adequatestrategies and pol ic ies to govern anyrestructur ing of work place pol ic ies toensure a heal thy working environment,as wel l as any businessreorganizat ions. E m p l o y e e s ’ D a t a P r i v a c yEmployers may also be natural lyincl ined to source the heal thinformat ion of employees as part oftheir workplace COVID-19 prevent ionand control strategies.

Under such circumstances, employersare also bound by the pr ivacy and dataprotect ion and ant i -d iscr iminat ion lawsand pol ic ies of their respect ivejur isdict ions Compl iance requirementssuch as the processing of personaldata subject to a just i f iable legal basishas to be compl ied with despi te theprevalence of the COVID-19 pandemic.For instance, in a bid to curtai l theCOVID-19 epidemic, employers mayneed to ask employees to inform themif they have recent ly v is i ted COVID-19high r isk countr ies so as to recommendremote working to such employeeswhere appropr iate.


In such a case, Niger ian employers(for example), wi l l speci f ical ly bebound to comply wi th the legal basisrequirement of the Niger ian DataProtect ion Regulat ion (NDPR) as wel las the requirement to demonstrate thecompl iance of their act ions withprovis ions of the NDPR.[12]

Furthermore, employee heal th datamay not be used or seen to be used byemployers in a discr iminatory mannerto terminate or otherwise prejudiceemployees.

S o m e R e c o m m e n d e d C o n s i d e r a t i o n s /A c t i o n s a) Inst i tut ion of prevent ive workplaceheal th and safety measures andguidel ines.b) For employees with remote workingcapabi l i t ies, provis ion of a l ternatepower (consider ingthat many Afr ican countr ies exper ienceintermit tent power supply) and internetfor work and ensur ing employees logand account for their hours.c) Provis ion of adequate groupinsurance covers for employeesespecial ly those involved in theprovis ion of essent ia l services.d) Preparat ion and update of rules forsick and other paid leave thatadequately consider COVID-19si tuat ions.

e) Preparat ion and update of employeehandbooks and rules in compl iance withlabour and ant i -d iscr iminat ion laws inCOVID-19 si tuat ions.f) Compl iance with nat ional dataprotect ion and pr ivacyrules.

AFRICAN

BUSINESSES,

INVESTMENTS,

TRADE & MARKETS


African Businesses,

Investments, Trade and MarketsWhile the long-term effects of COVID-19 remain uncertain, the pandemicposes ser ious short- term downsidebusiness r isks to Afr ican businessesand the cont inental economy.

F i n a n c i a l M a r k e t s a n d I n v e s t m e n t sAfr ican f inancial markets are alreadyexper iencing COVID-19’s s imi larnegat ive impacts on equi t ies and othersecur i t ies t rading as the rest of theglobal markets. [13]

Foreign equi ty and debt investments inAfr ican businesses wi l l a lso beadversely af fected by COVID-19 asgovernments and businesses in Chinaand Europe, which represent the majorAfr ican investment partners, respondto their own COVID-19 concerns.Potent ia l foreign investors may bereluctant to invest in Afr icanbusinesses given the bear ish out lookof the global f inancial markets.

Afr ican businesses should consider theimpl icat ions of COVID-19-basedrestr ict ions on investments and otherbusiness deal ings. Travel restr ict ionsmay require that meet ings be held overteleconference or other electronicmeans. Transact ions that requireregulatory searches, f i l ings anddisclosures may be stal led or

otherwise delayed i f regulatory of f icesare closed, restr icted or otherwiserestrained from undertaking ful lbusiness funct ions.

For ongoing business investments suchas mergers or acquis i t ions, companyvaluat ions and other pr ice negot iat ionsmay be af fected even af ter thepandemic status is l i f ted.

T r a d e a n d S u p p l y C h a i n sAfr ican businesses are also beingaffected by supply chain disrupt ions inChina, Europe and Central Asia asthese markets become less easi lyaccessible. These disrupt ions areaffect ing Afr ican import and exportbusinesses as the export of Afr icanraw mater ia ls and importat ion ofmachinery and manufactured goodsfrom European, Chinese and Indianmarkets into the cont inent havedecreased.[14]

This decrease may amount to a defaul tunder already exist ing contracts andaffected businesses should beconcerned about the legal impl icat ionsof such defaul t .

F o r c e M a j e u r eThe Chinese government has sought tosupport i ts business owners byissuing force majeure cert i f icates tocompanies defaul t ing on their t rading


obl igat ions. These cert i f icates areintended to protect the holders f rombreach of contract c la ims bycounterpart ies.

Most supply contracts wi l l include aforce majeure clause which may betr iggered by COVID-19 related defaul tsand wi l l most def in i te ly be rel ied on bythe party defaul t ing on their sale,purchase or supply obl igat ions underthese contracts. We can expect to seea high number of defaul t c la ims in thecoming months with force majeureimpl icat ions. Afr ican businesses maybe on the claiming or defending side ofany such defaul t sui t and musttherefore consider the impl icat ions oftheir contract terms and theirobl igat ions under contract on thesuccess of their posi t ion.

C o n s i d e r a t i o n s f o r a S u c c e s s f u lF o r c e M a j e u r e C l a i m

Force majeure may be invoked torel ieve the claiming party of performingi ts obl igat ions under contract , whereevents beyond i ts control haveoccurred to hinder performance. Thespeci f ical ly al lowable force majeureevents are usual ly l is ted in the forcemajeure clause along with a catch-al lphrase to cover events not expl ic i t lyprovided for. Events such as act ofgod, epidemics and change of law areusual ly expl ic i t ly provided for in forcemajeure clauses.

We can expect that in future contracts,force majeure clauses wi l l includeprovis ions on pandemics such asCOVID-19. Beyond the expl ic i tc lassi f icat ion of an event as a forcemajeure event, a successful forcemajeure claim general ly requires thesat isfact ion of the fol lowing cr i ter ia:a). that the claimed event is beyondthe reasonable control of the af fectedparty;b). that the af fected party ’s abi l i ty toperform i ts obl igat ions under contractwas prevented or hindered by theclaimed event; andc). the af fected party took al lreasonable steps to seek to avoid theevent or i ts consequences.

The quest ion of force majeure in eachcase wi l l general ly depend on whetherCOVID-19 or any of the resul t inggovernment act ions, i f determined asforce majeure events, has made i timpossible for a party to perform i tsobl igat ions under contract and tomit igate the non- performance. Afr icanbusinesses are also encouraged toconsider mit igat ion strategies for theirsupply contracts to reduce the impactof the pandemic on their businesses.

I n t r a - A f r i c a n T r a d e a s aM i t i g a t i o n S t r a t e g yAfr ican businesses may f ind newtrading partners wi th businesses fromneighbour ing countr ies across the


the cont inent, as they grapple wi thstrategies to mit igate the supply chaindisrupt ions resul t ing f rom COVID-19.[15]

Afr ican countr ies wi l l benef i t f rom thesale and free movement of essent ia lgoods and services such as food andhealth i tems and services across thecont inent, especial ly dur ing theCOVID-19 pandemic, in an ef for t toreduce issues of food and heal thsecur i ty which may ar ise f romdisrupted supply chains.

A framework has already beenestabl ished to faci l i tate intra-Afr icantrading relat ionships in the Afr icanCont inental Free Trade Area (AfCFTA)Agreement s igned by Afr ican memberstates in 2019, under which trading isto begin on 1 July 2020. TheSecretary-General of the AfCFTA hasassured al l stakeholders that COVID-19 is unl ikely to af fect the agreement ’strading start date. [16]

However, Afr ican border and traderestr ict ions[17] as wel l as persist ingprotect ionist pol ic ies[18] may hampersuccessful intra-Afr ican trade. Afr icangovernments therefore play animportant role in ensur ing that intra-Afr ican trade amounts to a successfulmit igat ion strategy. This role isdiscussed in paragraph 4 (Afr icanBusinesses and Government/Regulatory Agencies) below.

L o a n s a n d A f r i c a n B u s i n e s s e sAfr ican businesses which haveundertaken debt faci l i t ies to sponsorcorporate or project matters wi l l beaffected by the disrupt ions resul t ingfrom the COVID-19 pandemic.

Afr ican businesses, ei ther as debtproviders or benef ic iar ies areencouraged to consider theimpl icat ions of COVID-19 on their debtport fo l io. Disrupt ion in supply chainswi l l af fect source of income that formsthe repayment basis for companyloans. Employees who may have takenpayday loans or other quick loans mayhave their repayment scheduleadversely af fected i f they are la id of for their hours are cut due to COVID-19related restr ict ions.

Afr ican businesses are furtherencouraged to restructure their loanport fo l ios to take into considerat ion theeffect of COVID-19 on the markets ingeneral and on their businesses inpart icular. We expect to see a wave ofdebt restructur ings post-COVID-19,including for issues l ike extension ofmorator iums and tenors, revis ion ofinterest payments, re-evaluat ion ofassets or funds from which repaymentis to be made. For example, we expectloan restructur ing for Afr ican oi l andgas companies wi th oi l -based f inancingas the terms upon which those


faci l i t ies were concluded has changed,i .e. the drop in the barrel pr ice ofcrude oi l . Afr ican businesses whoprovide short- term loans to indiv idualsare encouraged to reach out to theirc l ients and customers and proposedebt renegot iat ions where possible tomit igate against mass defaul ts and af lood of smal l c la ims.

S o m e R e c o m m e n d e d C o n s i d e r a t i o n s /A c t i o n sa) Preparat ion of a COVID-19 r iskanalysis matr ix for investments andtrade contracts.b) Teleconferencing for meet ingsrelated to cross border investments.c) Re-assessment of supply contractsfor force majeure provis ions.d) Considerat ion of new tradingpartners as part of mit igat ionstrategies.e) Restructure of loan port fo l io anddebt faci l i ty agreements. f ) Considerat ion of the ef fect ofCOVID-19 on company stockvaluat ions.

AFRICAN

BUSINESSES &GOVERNMENT/REGULATORY

AGENCIES


African Businesses and Government/Regulatory AgenciesAfr ican businesses must also considertheir pol icy environment and thechanges to government economicpol icy in react ion to COVID-19.[19]

P r o p o s e d S t i m u l u s P a c k a g e s t oS u p p o r t B u s i n e s sThe governments of Niger ia and SouthAfr ica have proposed economicSt imulus packages to mit igate COVID-19’s impact. Whi le detai ls of the SouthAfr ican st imulus package are st i l l beingf inal ized, the nat ion’s president notedthat the package wi l l contain f iscal andother measures concluded withbusiness, labour and other relevantinst i tut ions. [20]

Niger ia’s st imulus package includesfunds to increase ef forts to boost localmanufactur ing and import subst i tut ion.[21]

The Central Bank of Niger ia (CBN)also released i ts pol icy measures inresponse to COVID-19.[22]

These measures include an extensionof morator ium on CBN intervent ionfaci l i t ies, a reduct ion of interestrates, targeted credi t faci l i t ies forhouseholds and smal l and mediumenterpr ises af fected by COVID-19,intervent ion faci l i t ies to develop thenat ion’s heal thcare industry andregulatory forbearance to al low banksrestructure the tenor and terms ofloans to businesses and householdsmost af fected by COVID, especial lyin oi l and gas, agr icul ture, andmanufactur ing.

This st imulus package not onlycushions the adverse ef fects ofCOVID-19 but creates businessopportuni t ies for investment especial lyin the nat ion’s heal th care industry

Afr ican businesses whosegovernments, such as Niger ia, haveproposed and/or put economic st imuluspackages in place are encouraged toconsider how these st imulus packagescould support their business port fo l io.


They are also encouraged to fo l lowupdates on the st imulus packages fromtheir nat ional governments in order tocushion the ef fect of the pandemic ontheir businesses.

R a t i f i c a t i o n o f t h e A f C F T AAs discussed in paragraph 3 above(Afr ican Businesses, investments,Trade and Markets), successful intra-Afr ican trade through theimplementat ion of AfCFTA is animportant pol icy i tem which isbenef ic ia l for Afr ican businesses asthey navigate new markets and tradingpartners as part of their mit igat ionstrategies dur ing COVID-19.

However, AfCFTA agreement requiresthat Afr ican nat ions provide a structurefor t rade concessions and other importwaivers to faci l i tate the free movementof goods and services across thecont inent. The supply chain disrupt ioncaused by COVID-19 makes thisrat i f icat ion by al l Afr ican countr ieswho are s ignator ies to the agreement,a more urgent economic pol icydecis ion.

Afr ican businesses wi l l benef i t f romeasy access to new markets wi th their

geographical neighbours. Theimplementat ion of AfCFTA wi l l t ranslate to a larger inter-cont inentalmarket, avai labi l i ty and access to moreski l led labour, which further impl iesmore job opportuni t ies andconstruct ion of new supply chains toreplace or support those af fected byCOVID-19 disrupt ions. [23]

The European Commission is alreadyworking to ut i l ize the intercont inentalEuropean market to push for crossborder t rade in order to supportbusinesses general ly and the publ icheal th services sector in part iculardur ing the COVID-19 pandemic. [24] I fAfCFTA is rat i f ied and implemented,Afr ica stands to enjoy s imi lar benef i tsthroughout i ts intercont inental market.

Afr ican businesses located in countr iesthat have already rat i f ied the AfCFTAshould consider new trading partnerswith businesses located in othercountr ies who have simi lar ly rat i f iedthe agreement. We expect that thecombinat ion of supply chaindisrupt ions from COVID-19 and the


t rading start date of the AfCFTAagreement wi l l resul t in the negot iat ionof new supply agreements across thecont inent af ter the pandemic is l i f ted.

R e g u l a t o r y D i s c l o s u r e s a n d F i l i n g sAfr ican businesses with regulatoryf i l ings may be af fected by COVID-19restr ict ions especial ly social d istancingpol ic ies may resul t in delayed f i l ings.Businesses may be required toconsider the ef fect of COVID-19 ontheir budgets and income for anyf inancial d isclosures that may bemade.

We encourage regulators to issueextensions on any deadl ines forregulatory f i l ings in considerat ion ofCOVID-19.

S o m e R e c o m m e n d e d C o n s i d e r a t i o n s /A c t i o n sa). Fol low pol icy decis ions made byAfr ican municipal and nat ionalgovernments to support businesses.b). Consider new trading partners wi thAfr ican companies under the AfCFTAagreement.c) . Engage legal counsel for advice ondeal ing with regulatory ent i t ies.


Conclusion

We encourage Afr ican businesses af fected by the novel coronavirus to consider andinst i tute some of the measures recommended in th is mater ia l and engage legalcounsel to ensure legal ly compl iant strategies. Businesses should also keep up todate wi th al l news and insights dur ing this COVID-19 per iod and order theirengagements accordingly as we al l cont inue to assess the scale and impact of th isoutbreak on Afr ican businesses and global markets.

CONCLUSION

REFERENCES


REFERENCES1. Rosamond Hutt , The EconomicEffects of COVID-19 Around the World (WorldEconomic Forum, 17 February2020), avai lable atht tps: / /www.weforum.org/agenda/2020/02/coronavirus-economic-ef fects-global-economy-trade-travel / , accessed on 19 March 2020.2. Yen Nee Lee, 6 Charts Show theCoronavirus Impact on the Global Economyand Markets so far, (CNBC Markets, 11 March2020), avai lable atht tps: / /www.cnbc.com/2020/03/12/coronavirus-impact-on-global-economy-f inancial-markets-in-6-charts.html, accessed on 19 March 2020.3. Alana Semuels, As COVID-19 Crashes theEconomy, Workers and Business OwnersWonder i f Anything Can Save Them FromFinancial Ruin, (Time, 18 March 2020),avai lable atht tps: / / t ime.com/5805526/coronavirus-economy-layoffs/ , accessed on 19 March2020.4. Gabe Alpert , Government St imulusEfforts to Fight COVID-19 Cris is,( Investopedia, 18 Macy 2020), avai lable atht tps: / /www.investopedia.com/government-st imulus-ef forts- to-f ight- the-covid-19-cr is is-4799723, accessed on 19 March 2020.5. Pippa Stevens, Oi l Fal ls 24% in 3rdWorst Day on Record, Sinks to More Than 18-year Low, (CNBC Markets, 18March 2020), avai lable atht tps: / /www.cnbc.com/2020/03/18/oi l -p lummets-to-near-18-year- low-on-pace-for-worst-month-ever.html, accessed on 19 March2020.6. World Health Organizat ion, More Than 600Conf i rmed Cases of COVID-19 in Afr ica, 19March 2020, avai lable atht tps: / /www.afro.who. int /news/more-600-conf i rmed-cases-covid-19-afr ica,accessed on 21 March 2020.

7. Afr ican nat ions have begun to inst i tuteborder and travel restr ict ions to curb thespread of COVID-19 within their terr i tor ies.Bukola Adebayo, Afr ican Countr ies Shut DoorsAgainst Europe, America to CombatCoronavirus, (CNN World, 17 March 2020),avai lable atht tps: / /edi t ion.cnn.com/2020/03/16/afr ica/afr ica-coronavirus-travel-restr ict ions-foreigners/ index.html, accessed on 19 March2020. Nat ions such as South Afr ica andNiger ia have proposed economic st imuluspackages for indiv iduals and businesses tocushion the ef fect of COVID-19. Please seeThando Maeko, Ramaphosa PledgesCOVID-19 Economic St imulus Package,(Business Nat ional , 15 March 2020),avai lable at ht tps: / /mg.co.za/art ic le/2020-03-15-ramaphosa-pledges-covid-19-economic-st imulus-package/, and Alonso Soto, Niger iaCentral Bank COVID-19 St imulus toReach $2.7 bi l l ion (Bloomberg, 18 March2020), avai lable atht tps: / /www.bloomberg.com/news/art ic les/2020-03-18/niger ia-central-bank-covid-19-st imulus-to-reach-2-7-bi l l ion, accessed on 19March 2020.8. Id.9. World Health Organizat ion, Gett ing YourWorkplace Ready for COVID-19, 27February 2020, avai lable atht tps: / /www.who. int /docs/defaul t -source/coronaviruse/gett ing-workplace-ready-for-covid-19.pdf, accessed on 21 March 2020.10. Internat ional Labour Organizat ion, LabourStandards in Afr ica, avai lable atht tps: / /www.i lo.org/afr ica/areas-of-work/ labour-standards/ lang--en/ index.htm,accessed on 19 March 2020. 11. Sectors such as oi l and gas and mining incountr ies wi th strong natural resourcemarkets, usual ly have labour unions to ensurecol lect ive bargaining and protect theirinterests.


For example, in Niger ia, the Niger ia Union ofPetroleum and Natural Gas Workers(NUPENG) and the Petroleum and Natural GasSenior Staf f Associat ion (PENGASSAN)represent oi l and gas workers in the country.In South Afr ica, the pr incipal union for minersis the Nat ional Union of Mineworkers (NUM).12. Sect ion 2.1 of the NDPR13. The Johannesburg and Niger ian StockExchanges have suffered losses due touncertaint ies related to COVID-19. Please seeLarry Classen, COVID-19 Crash: R2.3trnWiped Out, (Moneyweb, 16 March 2020),avai lable atht tps: / /www.moneyweb.co.za/news/markets/another-covid-19-crash/, and Peter Egwuatu &Nkiruka Nnorom, COVID-19: Stock IndexCrashes 15.3% YtD, (Vanguard, 16 March22020), avai lable atht tps: / /www.vanguardngr.com/2020/03/covid-19-stock- index-crashes-15-3-ytd/ , accessedon 19 March 2020.14. Baker McKenzie, The Impact ofCOVID-19 on Key Afr ican Sectors, 10 March2020, avai lable atht tps: / /www.bakermckenzie.com/en/ insight/publ icat ions/2020/03/the- impact-of-covid19-on-key-afr ican-sectors, accessed on 19 March2020.15. The United Nat ions Economic Commissionfor Afr ica has encouraged Afr icannat ions to seize the opportuni ty presented byCOVID-19 disrupt ions to deepen cont inentalt rade. Femi Adekoya, Intra-Afr ican TradeCould Help Mit igate the Impact of COVID-19on Niger ia, Others; (The Guardian, 18 March2020), avai lable atht tps: / /guardian.ng/business-services/ intra-afr ican-trade-could-help-mit igate- impact-of-covid-19-on-niger ia-others/ , accessed on 19March 2020.

16. Leanne de Bassompierre, Afr ican Free-Trade Deal on Track Despi te CoronavirusDisrupt ion, (Fin24, 12 March 2020), avai lableatht tps: / /www.f in24.com/Economy/Afr ica/afr ican-free-trade-deal-on-track-despi te-coronavirus-disrupt ion-20200312 accessed on 19 March2020.17. Many Afr ican countr ies have closed theirborders or issued travel restr ict ions as part ofCOVID containment strategies. BukolaAdebayo, Afr ican Countr ies Shut DoorsAgainst Europe, America to CombatCoronavirus, supra at note 7.18. For example, Niger ia ’s restr ict ion of r iceimportat ion through i ts land borders resul tedin retal iatory restr ict ions of i ts exports toneighbouring countr ies. Fakoyejo Olalekan,Border Closure Retal iat ion: Ghanaian TradersUnion Shuts Niger ian Shops. To Clamp Downon More (Nairametr ics, 1 November2019), avai lable atht tps: / /nairametr ics.com/2019/11/01/border-closure-retal iat ion-ghanaian-traders-union-shuts-niger ian-shops-to-clamp-down-on-more/,accessed 19 March 2020.19. For example, the Niger ian FederalGovernment recent ly announced cuts to i ts2020 budget in order to account for the ef fectof COVID-19 and the oi l pr ice war on i tsbudgetary est imates. Oladeinde Olawoyin,Coronavirus: Niger ia Cuts Oi l Benchmark to$30, Slashes Capital Budget By 20%, Premium Times, 18 March 2020), avai lable atht tps: / /www.premiumtimesng.com/news/headl ines/382605-coronavirus-niger ia-cuts-oi l -benchmark-to-30-slashes-capi tal-budget-by-20.html, accessed on 19 March 2020.5. 20. Thando Maeko, Ramaphosa PledgesCOVID-19 Economic St imulus Package, supraat note 7.


21. Alonso Soto, Niger ia Central BankCOVID-19 St imulus to Reach $2.7 bi l l ion,supra at note 7.22. CBN Circular to Deposi t Money Banks andthe General Publ ic on: CBN Pol icy Measuresin Response to COVID-19 Outbreak andSpi l lovers, March 16 2020, avai lable atht tps: / /www.cbn.gov.ng/Out/2020/FPRD/CBN%20POLICY%20MEASURES%20IN%20RESPONSE%20TO%20COVID-19%20OUTBREAK%20AND%20SPILLOVERS.pdf, accessed on 19 March 2020.

I f you have more speci f ic enquir iesrelat ing to any of the mattersdiscussed in th is document, or how tomit igate the impact of COVID -19 onyour business, please speak to any ofour Senior Consul tants - contacts inthe next page

BROOKS & KNIGHTS LEGAL CONSULTANTS is a provider of legal advisory and policy consultingservices to individuals, corporates, NGOs and government agencies and organisations. At Brooks &

Knights, we provide expert advice and bespoke solutions to clients in all their legal, business andpolicy issues.

The core of our practice is governed by our mission statement - to provide quality bespoke, client-centred and business oriented legal advisory and policy consulting services to all our clients. Thus,with the understanding that the modern business environment is dynamic and the needs of clientsvary, we adopt, at all times, an innovative and proactive approach to issues and thereby offer our

clients commercial and practical advice that is optimally suited to meet their very needs.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system ortransmitted in any form or by any means without the prior permission in writing of

BROOKS & KNIGHTS LEGAL CONSULTANTS

23. Adetayo Adetuyi & Nnanke Wil l iams,Considerat ions for the Implementat ion of theAfr ican Cont inental Free Trade AreaAgreement, 27 February 2020, avai lable atht tps: / /brooksandknights.com/2020/02/27/considerat ions-for- the- implementat ion-of- the-afr ican-cont inental- f ree-trade-area-afcta-agreement/ , accessed at 21 March 2020.24. European Commission, Message byUrsula von der Leyen, President of theEuropean Commission, on the LatestMeasures to Address the Coronavirus,avai lable at ht tps: / /europa.eu/!Dq37YP,accessed on 23 March 2020.

BROOKS & KNIGHTS LEGAL CONSULTANTS

AUTHORS

Adetayo Adetuyi, LLMSenior Consultant T: 0815 840 2593

E: [email protected]

Nnanke Williams, LLMSenior Consultant T: 0813 810 0210

E: [email protected]

Contact us at:

4 Alh Kanike Str, Ikoyi, LagosTel: 0813 810 0210

E: [email protected]: www.brooksandknights.com

J# 8 WN#8 NN N =8N# J S#=8N =J 1 1;]; WN#8 NN =`# ìô...2020/03/24 · s a f e t y o f t h e i r w...

Documents

Transcript of J# 8 WN#8 NN N =8N# J S#=8N =J 1 1;]; WN#8 NN =`# ìô...2020/03/24 · s a f e t y o f t h e i r w...