Zimbabwe readies for trade under AfCFTA
ZIMBABWE has intensified infrastructure development in readiness for the implementation of the African Continental Free Trade Area (AfCFTA) as it seeks to promote efficiency and effectiveness in the movement of goods and people.
AfCFTA is one of the flagship projects of Agenda 2063: The Africa We Want and seeks to significantly boost intra-Africa trade, particularly trade in value-added production and trade across all sectors of Africa’s economy.
It was launched during the 12th Extraordinary Session of the AU Assembly of Heads of State and Government in Niamey — Niger, in July 2019 to create a single continental market with a population of about 1,3 billion people and a combined Gross Domestic Product of approximately US$3,4 trillion.
In his presentation during the Zimbabwe National Chamber of Commerce (ZNCC) AfCFTA workshop in Bulawayo yesterday, Ministry of Foreign Affairs and International Trade economist Mr Shingirai Mareya said preparations are underway in both infrastructure and policies for the nation to implement the AfCFTA.
“Preparations are underway for preferential trade under the AfCFTA. For example, modernisation of road infrastructure and enhanced efficiency at its borders and airports in order to improve trade facilitation, the upgrade and modernisation of the Beitbridge Border Post and the upgrade of Robert Gabriel Mugabe International airport,” he said.
Industrialists and experts have been calling upon African countries to invest more resources in developing sound infrastructure that supports increased production and promotes efficient intra-regional trade.
To fast track the implementation of the AfCFTA, Guided Trade Initiative (GTI), with eight countries that managed to meet minimum requirements was launched in Accra, Ghana on October 7 which seeks to allow commercially meaningful trading, and test the operational, institutional, legal and trade policy environment under the AfCFTA.
Mr Mareya said Zimbabwe submitted its tariff profile where some issues were flagged out and he said the inter-ministerial committee was set up to look into the issues.
He also said Zimbabwe was invited to join the GTI.
“The invitation came in the wake of the adoption of Zimbabwe’s Schedule of Specific Commitments on Trade in Services by the African Union Summit in November 2022. National consultations to come up with a national position on whether to join the initiative or not are underway,” said Mr Mareya.
The AfCFTA is essentially about creating a conducive working environment for the African private sector by reducing barriers to trade, harmonising national policies and regulations across the continent, and by reducing transaction costs more generally.
The AfCFTA will eliminate tariffs on 97 percent of goods traded between state parties to the agreement over a period of 10 years for developing countries and 13 years for least developed countries.
Mr Mareya said when that happens, the business sector will reap the benefits in the form of not only a larger market to export to but also cost savings and associated competitive advantages in that market.
In an interview on the sidelines of the workshop, Lupane State University Business Clinic development manager Mr George Nhepera said the capacity building workshops being held by different organisations on AfCFTA, the private sector has enough platform to get information about the agreement, which will assist them to get prepared.
He said registered companies who are members of different organisations such ZNCC and Confederation of Zimbabwe Industries have managed to access key information.
He however said there are some businesses which include small and medium enterprises that are still lagging behind when it comes to accessing information on AfCFTA, its advantages and what is needed for them to fully participate. — -chronicle
