In collaboration with COMESA Women in Business, I recently conducted a workshop to prepare female entrepreneurs for the opportunities presented by the African Continental Free Trade Area (AfCFTA). This agreement marks a significant transformation in trade and commerce across the continent, offering substantial economic opportunities for prepared businesses. Established in 2018, AfCFTA encompasses nearly the entire African continent, with 54 out of 55 African Union nations having ratified the agreement. Eritrea remains the sole country yet to ratifyThe African Continental Free Trade Area (AfCFTA) marks a significant transformation in trade and commerce across the continent, offering substantial economic opportunities for prepared businesses. Established in 2018, AfCFTA encompasses nearly the entire African continent, with 54 out of 55 African Union nations having ratified the agreement. Eritrea remains the sole country yet to ratify.
Breaking Down Trade Barriers: AfCFTA’s Key Measures
A central component of AfCFTA is the elimination of tariffs on 90 percent of goods and the reduction or elimination of non-tariff barriers. These measures aim to streamline trade, reduce red tape, lower compliance costs for traders, and facilitate the integration of African businesses into global supply chains.
AfCFTA is projected to increase intra-African trade by 15 to 25 percent ($50 billion to $70 billion) by 2040, contributing to a $3.4 trillion increase in African GDP by 2030. In response to these opportunities, Zimbabwean businesswomen, under the auspices of COMESA Women in Business (COMFWB), recently participated in a two-day workshop in Harare to prepare their businesses for export and capitalize on AfCFTA.
Understanding the Current Trade Landscape
To fully appreciate the potential of AfCFTA, it’s essential to understand the current trade dynamics. Currently, intra-African trade accounts for only 16 percent of the continent’s exports and 13 percent of its imports, according to the United Nations Conference on Trade and Development (UNCTAD). This indicates that African nations trade more extensively with countries outside the continent. For instance, African trade with Europe is double the annual value of intra-African trade.
African exports to the global market predominantly consist of raw materials and unprocessed goods. Conversely, trade within Africa involves a greater exchange of manufactured and processed goods, which comprise approximately 42 percent of regional exports. AfCFTA is expected to further increase the trade of manufactured goods within the continent, fostering growth opportunities for African manufacturers.
Addressing Non-Tariff Barriers: A Key Focus of AfCFTA
While previous initiatives like ECOWAS, COMESA, and SADC have aimed to increase intra-African trade, they have often been hindered by non-tariff barriers (NTBs), such as complex cross-border procedures. These NTBs include excessive paperwork, lengthy queues at government offices, misaligned office hours, corrupt practices, inconsistent rule interpretations, and inadequate appeal mechanisms.
AfCFTA is designed to overcome these challenges. The agreement has established an NTB Sub-Committee to monitor progress in eliminating NTBs and conduct periodic reviews of each country’s efforts. Each nation is also required to establish a National Monitoring Committee and National NTB Focal Points. This structure enables exporters to report unfair requirements to their country’s NTB focal point, improving information provision and addressing border-related complaints. AfCFTA will also assist traders in complying with technical standards.
Opportunities for African SMEs
African Small and Medium-scale Enterprises (SMEs) are poised to benefit significantly from AfCFTA. Shared tastes and preferences, reduced market entry barriers due to tariff reductions, lower transport and logistics costs, and cultural and linguistic similarities will enhance SMEs’ competitiveness.
Empowering Zimbabwean Businesswomen: The COMFWB Workshop
The COMFWB Zimbabwe Chapter recently organized a workshop for 40 businesswomen from across the country to prepare them for AfCFTA. The workshop commenced with a self-assessment using the International Trade Centre’s SheTrades platform.
This assessment focused on four key areas: strategic competence, marketing and sales competence, production competence, and resource management competence. Participants were then directed to free learning courses and webinars provided by SheTrades to address identified gaps.
The workshop also covered technical aspects of AfCFTA, including trade finance, export market research, partner identification, and compliance with foreign standards and packaging requirements.
Mrs. Birgitta Matenganzara, Chairperson of COMFWB Zimbabwe Chapter, emphasized the evolving ambitions of women in trade, stating, “As women, we want to help Zimbabwe take the lead in exploiting AfCFTA opportunities. Our goal is to help industrialize the nation while increasing cooperation with other women in Comesa. We call upon other stakeholders and trade promotion organizations to engage with women to drive trade.”
Driving a “Made in Africa” Revolution
AfCFTA is expected to catalyze a “Made in Africa” revolution. Zimbabwe, with its robust infrastructure, educated workforce, and established diaspora, is well-positioned to capitalize on these opportunities. Success, however, requires strategic planning. Zimbabwean women, as a vital part of society, are leading the charge in this export revolution.
