The ManicaPost
Freedom Mutanda and Lovemore Kadzura
Post Correspondents
AFRICA, historically, has been known for trade with other continents; unfortunately at the expense of intra-Africa trade.
It is for this reason that the 2023 Africa Day theme was apt.
This year’s theme, ‘Acceleration of AfCFTA implementation’, put the trade issues at the center of African development.
Indeed, we need to accelerate the implementation of the trade agreement.
The African Continental Free Trade Area is ambitious as it aims to create a single market for goods and services for the almost 1.3 billion Africans while also deepening the continent’s economic integration.
The market will have a combined Gross Domestic Product of close to US$3,4 trillion.
This will be facilitated by the free movement of people, capital and investment, as well as broad economic integration, inclusive socio-economic development, food security, industrialisation and gender equality.
Being the largest free trade area in the world, AfCFTA brings together AU’s 55 countries and eight regional economic blocs.
Yesterday (Thursday), the African Union celebrated a massive 60 years of existence.
Over the years, African countries have gained political independence.
However, economic independence remains elusive for the majority since Africa has largely remained the supplier of raw materials to other continents, thereby exporting employment.
African oil producing countries continue to sell their natural resources to Western countries while the non-oil producing African countries buy from the Middle East.
For instance, Angola’s top oil exports are with China, India, Italy and Thailand.
Nigeria and other African oil producing countries also sell to other countries outside Africa while their fellow African countries have to incur more expenses in importing the oil from outside Africa.
Intra-Africa trade reduces costs of importing and exporting, while improving the standards of living for Africans.
Sadly the intra-Africa trade has been skewed against the smaller nations.
There are trade treaties signed by African countries, but it appears that implementation is falling short.
As a consequence, the people on the ground do not benefit from the attempts to integrate as direct benefits are few and far between.
President Mnangagwa is on record saying Zimbabwe is open for business.
Since 2019, he has signed Memoranda of Understanding with Botswana, South Africa and Mozambique, among other countries.
These all-weather friends are there to ensure that Zimbabwe attains an upper middle income economy by 2030.
After all, all the natural resources that are required to push the country’s economic growth are found in abundance in Africa.
Zimbabwe’s economic integration with other African countries should see her industrialising at an unprecedented rate.
The country’s Education 5.0 policy is also a wake-up call to many learners.
Education is an avenue to acquire practical skills that should be utilised to build Africa’s economy.
It is encouraging to note that several Zimbabwean institutions of higher learning have recorded an upsurge of inventions through the innovation hubs.
Indeed, Zimbabwe has what it takes to become an upper middle income country by 2030.
Now is the time to light up the fire of industrialisation through intra-Africa trade.
Professor Daniel Chigudu, a researcher, believes that the creation of a single market for goods and services will increase trade among African states.
“Through the implementation of AfCTA, the anticipated trade diversity will boost Africa’s economy,” he said.
On tariffs’ elimination, Professor Chigudu said African countries will increasingly remove import duties and have preferential tariffs applied to imports from other countries.
“Systems of multi-lateral trading set up by AfCFTA can intervene when another country believes there is a breach of an agreement. The dispute settlement mechanism which AFCTA has in place provides for mediation.
“According to the African Trade Policy Centre, women account for about 70 percent of cross-border informal traders. This informal trading exposes women to the vulnerabilities of violence and harassment. With reduced tariffs, it becomes more affordable for women to trade through formal and safer channels.
“Duty elimination also increases small business trading activities. This increased trade by small businesses will help to supply inputs for big businesses. This will spur industrialisation through a competitive manufacturing sector and create employment.
“The size of the AfCFTA promises sustainable growth, economic development and reduced poverty levels in Africa,” said Professor Chigudu.
London-based health expert and traditional leader, Headman Talkmore Mupambawahle believes that Africa Day should be used to reflect on how the continent should become self-sufficient on its medical requirements.
He said it is unhealthy for Africa to procure the majority of its medical requirements from outside the continent.
“One of our economic opportunities is the trade of medicines among African states. The trade of medicines is valued at around US$65 billion and African countries need to stop relying on imports.
“Africa is currently importing a staggering 80 percent of its pharmaceutical and medical consumables.
“The dependency on imports is unsustainable. It is a huge health and security risk. The Covid-19 pandemic exposed our continent’s vulnerability. As a continent, we were pushed at the back of the queue in getting the vaccines.
“The European Union is an example of how important it is to trade with countries within the same geographical location and as a bloc.
“As we celebrate Africa Day, we need to reconfigure our trading styles to reduce dependency. Accelerating the implementation of AfCFTA can be a great tool to unlock Africa’s economic potential,” said Headman Mupambawahle.
However, to achieve all that, Zimbabwe cannot afford to be a pariah state in Africa.
Inclusivity should be the buzz word.
According to the World Bank, it is possible for intra-African exports to grow by up to 109 percent by 2035, with manufactured goods leading the pack.
Africa can turn this vision into a reality.
A journey of a thousand kilometres begins with the first step.
