Mpho Tebele
Gaborone – Despite its launch being plunged into doubt by the outbreak of the COVID-19 pandemic, analysts believe the need for an African Continental Free Trade Agreement (AfCFTA) is needed now more than ever.
Touted as the second-largest trade pact behind only the World Trade Organisation, the AfCFTA was expected to become operational from July 1, 2020 but this has been indefinitely postponed.
The continental free trade area is seen as a major pillar in Africa’s quest to industrialise by tapping into inherent potentials and building synergies.
At a virtual conference on AfCFTA organised by Conversation Africa last week, panellists were agreed that the corona-induced delay should be used to iron out any outstanding issues that could affect rollout of the trade pact.
Among the panellists were Botswana’s Minister of Finance, Dr Thapelo Matsheka; Business Botswana president Gobusamang Keebine; chairman of the Nairobi Securities Exchange, Dr. Kiprono Kittony; and the president of Ibadan Chamber of Commerce Sir Sola Abondonrin.
Dr Matsheka said, “AfCFTA brings Africans together to reorganise themselves to achieve economic freedom, which should translate into solid and sustainable benefits for African people. A united Africa can produce positive results for Africans by making use of African resources by Africans with Africans.”
Dr Matsheka said Africans should take advantage of the US$3 trillion economy on the continent.
To do this, Dr Matsheka pointed out, was not a walk in the park and required major policy shifts at country and continental level to unlock the full potential of the trade agreement.
“Outside trade and investment policies, it will be necessary for member states to recognise a key element to trade investment co-operation – establishment of a robust financing mechanism which will form an engine of economic growth,” he said.
He said government policies and other fundamentals had to be right to fully support private sector investment that could grow intra-Africa trade.He said investors required a “sense of security through appropriate instruments to safeguard against political risks. It is often the case investments are affected by political risks in Africa”.Dr Matsheka hailed the Southern African Development Community for establishing a regional guarantee scheme aimed at managing and minimising risks associated with trade. He called on other regional economic communities to emulate SADC in this regard.Responding to fears that opening up trade on the continent would unduly benefit the continent’s industrial and manufacturing powerhouses, Dr Matsheka said “the fact of the matter is that there has never […]