Majaliwa: Future of African trade depends on a successful AfCFTA

Dar es Salaam. Prime Minister Kassim Majaliwa said yesterday that the future of trade in Africa rests on the successful implementation of the African Continental Free Trade Area (AfCFTA).

Speaking during the opening of the AfCFTA Conference on Women in Trade, Majaliwa said the trading bloc combines countries that share history and have similar economic structures.

Through AfCFTA, he further said, African countries can agree on parallel or similar product standards to eliminate technical trade barriers, unlike countries outside Africa that differ economically from Africa.

“In general, the Africa free trade zone will help African countries develop the economies and prosperity of their people. The full implementation of the AfCFTA will determine the success of intra-African trade if the existing opportunities are utilised properly,” he said.

Women and youth face structural and traditional challenges that prevent them from directly benefiting from business opportunities and benefits.

He therefore urged deliberate efforts to be taken to deal with obstacles that prevent women and young people from using the opportunities arising from the AfCFTA, including technical and financial challenges.

To ensure that no one is left behind in participating and benefiting from the opportunities of the AfCFTA, heads of state decided to encourage the strong participation of stakeholders through a simplified business system to empower youth, women, small entrepreneurs, small businesses, and informal traders, according to Mr Majaliwa.

He noted that governments are about to complete and start the implementation of the Protocol on Women and Youth in Business.

“It is important for this conference to come up with specific plans for actions to be taken and strengthen cooperation to ensure the goal of having a productive participation of women in business under AfCFTA in Africa is reached,” Mr Majaliwa added.

On his part, AfCFTA secretary general Wamkele Mene said progress has been made in the development of the protocol for women, youth, and trade.

Statistics show that 90 percent of all businesses in Africa are small and medium enterprises (SMEs), and 60 percent are owned by women, which account for 80 percent of job creation and contribute to 40 percent of Africa’s combined GDP.

“This is an opportunity for governments to eliminate barriers in trade, particularly those faced by women and youth. We have mobilised $1 million and target reaching $10 million to ensure it re-establishes SMEs, particularly those operating under the AfCFTA,” he said.

 The AfCFTA is the world’s largest free trade area bringing together the 55 countries of the African Union (AU) and eight Regional Economic Communities (RECs) to create a single market for the continent.

The aim is to enable the free flow of goods and services across the continent and boost the trading position of Africa in the global market. The AfCFTA entered into force on May 30, 2019, after 24 Member States deposited their instruments of ratification.