‘Sound infrastructure key to improve Africa trade’

AFRICA must invest more resources in developing sound infrastructure that supports increased production and promotes efficient intra-regional trading.

ZimTrade chief executive officer, Mr Allan Majuru, said this in Bulawayo last week where his organisation engaged local companies on best options to unlock access to Africa ahead of the 3rd Intra-Africa Trade Fair (IATF) to be held in Cairo, Egypt between November 9 and 15, 2023.

Zimbabwean firms are targeting to forge strong linkages with several potential partners across the continent at the upcoming IATF.

The IATF 2023 is focused on attracting over 1 600 exhibitors, more than 35 000 conference delegates and trade visitors from across Africa and beyond, and should result in US$43 billion of trade and investment deals being concluded.

At the first trade fair in 2018, which was held in Cairo, Egypt signed the largest share of deals out of the US$32 billion worth of trade and investment deals.

Mr Majuru said they have high hopes that during the IATF 2023, infrastructure development will lead the discussions so that countries will get funding to develop their infrastructure.

“One thing we have noticed is that it is difficult to do business as African countries and this is mainly attributed to issues of infrastructure,” he said.

“If we look at what we did at the Beitbridge Border Post, it has made that post more effective and more efficient and I think it’s something that as African countries we should do a lot to make sure that our borders are efficient.

“It’s easier for us to export or import from Europe than for me to send goods to Nigeria. So, infrastructure is key for us to improve our trade and I hope as we go for the IATF a lot of emphasis is going to be put to make sure that we get more funding to improve on our infrastructure.”

Mr Majuru also emphasised the need for Zimbabwean companies to enhance value-addition in a bid to increase exports for value added goods and services.

“If you look at our trade as Zimbabwe, 60 percent of our imports and imports are within Africa but the issue is on what we are trading.

“This is what we want to interrogate more at the IATF. We need to export value-added goods and services. We don’t need to export money and jobs, so the focus is on how we attain value in the country by exporting value added goods and services,” he said.

“As we speak, our exports are predominantly raw materials and we need to improve on that.”

In view of the vast opportunities presented by the African Continental Free Trade Area (AfCFTA), IATF creates a unique platform for Zimbabwean businesses to engage with leading distributors, investors, and visitors from leading nations on the continent.

The trade promotion body said about 30 local firms will participate in IATF 2023 including youth-led and women-led businesses, and small businesses.

Mr Majuru said in 2018, they generated business amounting to about US$3 million at the IATF as it was the first edition. In 2021 he said they generated business amounting to US$25 million and follow-ups went up to about US$30 million.

He said by the end of this year’s IATF in November, they are hoping to close deals worth about US$35 million.

“The good thing about IATF is that it is not about generating dollar value but also learning international best practices as more than 74 countries are going to participate and also it’s a space for local companies to source alternative and affordable raw materials,” said Mr Majuru. — herald