By: Nana Achiaa Aboagye
Across all continents, Africa is the only expanse with poor cross-border and intra trade activity. Tariffs, non-tariff barriers, extortion, infrastructure deficits, and a lack of finance are some of the challenges working against trade between African nations.
At a conference organised by the Africa Economic Leadership Council (AELC) in Swakopmund Mondesa Namibia, panelists spoke on the theme: Unlocking Intra African Trade Opportunities for MSMEs, Townships, and Grassroots Economies. They point out that AfCFTA is a tool to boost Africa’s economy by increasing trade among Africans and putting in place the appropriate measures to reduce tariffs and non-tariff barriers.
The challenges standing in the way of intra-African trade are a result of bad roads, arduous border checks, harassment, and solicitations from security officials for kickbacks from traders. Discover Namibia’s MSME and Township Economy is a platform to boost cross-border trade for Africa’s economic development. It serves as a catalyst to highlight the importance of MSMEs and township businesses in driving economic progress. This event is a testament to Namibia’s commitment to supporting local businesses and promoting sustainable economic development.
The President of the Swakopmund Business Chamber, Mr. Paul Ndjambula, called on African leaders to remove the bureaucracies from the existing payment system that retard cross-border trading. He called for a regulatory regime to make trading among Africans very easy.
The Resident Representative, United Nations Development Programme, Madam Alka Bhatia, said African Leaders must come together to solve the challenges obstructing intra-African trade on the continent.
The Former Executive Secretary of the Southern African Customs Union, Mrs. Paulina Elago, said Africa must enhance the capability of entrepreneurs to produce competitively on the local market before taking advantage of the AfCFTA. She reiterated that SMES must be supported to be able to produce competitively-quality products in volume for export.
The Executive Director for MSME Development, Innovation, and Acceleration, Namibia Investment Promotion Development Board (NIPDB), Mr. Dino Balotti, said entrepreneurs must first break the barriers to entering the Namibian space, which requires collective efforts before scaling into Africa, adding that we have a responsibility and that not only the government but the private sector and corporate bodies must collectively support entrepreneurship.
He advised entrepreneurs across Africa to add value to their products and services to scale up their businesses.
The CEO of the Ghana International Trade and Finance Conference, Mr. Selasi Koffi Ackom, intimated that Africa should be resolute, adding that we, the citizens of Africa, would have to embrace effort from our leaders and help make AfCFTA a reality, and the Ghana International Trade and Finance Conference is here to support the agenda.
The United Nations Commission for Africa estimates that AfCFTA would expand the size of Africa’s economy to US$29 Trillion by 2050 and increase intra-African trade to 52.3 per cent from the current 11 per cent. It is also envisaged that Africa’s share of global trade will double from three to six per cent when the agreement is implemented.