‘Brace for tight competition under AfCFTA’

LOCAL businesses should swiftly embrace technology to enhance competitiveness and boost production capacity to be able to compete effectively under the African Continental Free Trade Area (AfCFTA).

Speaking during a business luncheon organised by the Zimbabwe National Chamber of Commerce (ZNCC) on the sidelines of the Zimbabwe International Trade Fair (ZITF) in Bulawayo on Friday, industry experts said the opening up of the borders under the AfCFTA would bring with it increased competition that demands businesses to transform their operations to make an impact.

AfCFTA(African Continental Free Trade Area)

Zimbabwe is one of the pioneer countries to have signed the AfCFTA agreement, which came into force in January 2021.

In his contribution, Comesa Competition Commission representative, Mr Isaac Tausha, said Zimbabwe has abundant talent in terms of innovation as its citizens have been able to distinguish themselves in different countries where they have led different innovations.

Noting the importance of innovation in creating a competitive advantage for local products and services, he said the country should take advantage of this to steer higher trade.

Mr Isaac Tausha

“Zimbabweans are doing wonders in other countries and creating a conducive environment for them will bring them back to support their country to come up with innovative ways of production,” said Mr Tausha.

“The coming in of the AfCFTA is a good thing but the opening of borders will bring tight competition, which will need businesses to be innovative enough to produce products, which will have a competitive advantage.”

The conference also explored the importance of harnessing Intellectual Property Rights (IPR) to protect local innovations while widening trade earnings.

IP expert and Honey and Blanckenburg Associate Attorney, Mr Jabulani Kwaramba, said innovators should be able to get paid for their innovations if someone wants to use them and this can only be possible if they have IPR.

He said many companies have lost their designs, especially in the global market where local products end up being sold in other countries without the signature of the innovator or country of origin.

“Registering an IPR is not expensive. Organisations like ZNCC should continue offering awareness campaigns to let everyone know the procedures and advantages of having a registered IPR,” he said.

Mr Kwaramba said small and medium enterprises (SMEs) also lack information on how to register their innovations, which calls for more awareness campaigns.

The panelist also said there is a need to upgrade and modernise infrastructure to allow the movement of goods and services in and out of the country.

Industry and Commerce Minister, Dr Sekai Nzenza, said efforts are underway to modernise ports of entry, which has seen the rehabilitation of Beitbridge Border Post, Harare-Beitbridge Road and airports, among others so as to promote trade movement.

Zimbabwe National Chamber of Commerce (ZNCC)

“Efforts are underway to modernise our ports of entry and establish a one-stop border post to ease congestion and facilitate the efficient movement of goods and people, and also monitor linkages,” she said in a speech read on her behalf by the ministry’s chief director of commerce, Dr Douglas Runyowa.

She also called upon businesses to adopt innovation and technology to become competitive in accessing markets around the globe.

Foreign Affairs and International Trade Deputy Minister, Dr David Musabayana, said the global dynamics in trade compel businesses to adopt robust ways of interacting and connecting with the global market, hence the importance of adopting digital transformation strategies and technology.

Dr David Musabayana

“Let me take this opportunity to express my ministry and Government’s commitment to continue to engage traditional trading partners, under various bilateral, regional, and multilateral trading arrangements, to enhance the competitiveness and value of our exports on the global market,” he said.
ZNCC president, Mr Mike Kamungeremu, also advised business to embrace technology and gear up for the AfCFTA. — chronicle