AfCFTA: Sanctions buster for Zimbabwe
THE African Continental Free Trade Area (AfCFTA) has been identified as a perfect sanction-busting trading platform for the country as it avails more markets in countries that are favourable to Zimbabwe, an economist has said.
The US promulgated the Zimbabwe Democracy and Economic Recovery Act in 2001 which cut all lines of credit from multilateral lending institutions.
Zidera, among other provisions, forbids American banks from processing transactions on behalf of Zimbabwean companies and at times individuals who are not even on the sanctions list.
The sanctions, targeting both the economy and individual Zimbabweans seen as central to decision-making in Government, are estimated to have cost the country up to US$100 billion in lost economic opportunities.
The imposition of the punitive measures was a direct response to the Government’s decision to correct the skewed land ownership which favoured the minority white farmers.
However, the country has been effectively using its resources to counter sanctions.
In an interview on the sidelines of the Zimbabwe National Chamber of Commerce AfCFTA workshop in Bulawayo yesterday, Lupane State University Business Clinic Development manager Mr George Nhepera said the coming into shape of the AfCFTA agreement has provided a trading platform for Zimbabwe and companies should take advantage.
He said the country now has an alternative route for its goods or services and can therefore avoid regions that are not supportive.
Mr Nhepera said the AfCFTA with 55 member countries, is one of the largest free trade areas which could be a game changer for Zimbabwean products.
“AfCFTA is the way to go for us because we are under illegal sanctions imposed by the US and its allies. This grouping of African countries provides us with a very huge market and companies should take advantage of this new market” said Mr Nhepera.
The AfCFTA is meant to create a single market for goods and services from member countries and seeks to boost intra-African trade by removing tariffs.
It is estimated that the new market could boost intra-African trade by up to 52 percent.
Founded in 2018, the AfCFTA became operational on January 1, 2021 becoming the largest free trade area in the world in terms of the number of participating countries since the formation of the World Trade Organisation (WTO).
Its general objectives are to create a single market, deepening the economic integration within the continent, establish a liberalised market through multiple rounds of negotiations, aid the movement of capital and people, facilitating investment, enhance competitiveness of member states within
Africa and in the global market as well as achieve sustainable and inclusive socio-economic development, gender equality and structural transformations within member states.
Zimbabweans who are set to benefit immensely from this new market, have been commended for applying their skills in the development of the country despite the illegal sanctions.
In July 2019 Sadc declared October 25, as the day on which Member States collectively voice their disapproval of the sanctions against Zimbabwe.
On October 25, Zimbabwe will be joined by other Sadc countries as it commemorates the Sadc Anti-Sanctions Day, which will be held under the theme, ‘Harnessing the Youth for Accelerated Socio-Economic Development in the Fight Against Sanctions’.
The theme recognises the youth’s resilience, courage, fortitude and unflinching determination in the face of illegal sanctions. The Second Republic is placing emphasis on value addition and beneficiation of natural resources for optimum profits and benefits to local communities, notwithstanding the negative effects of illegal economic sanctions.-chronicle
