Exporting under AfCFTA still a challenge for African companies posturing a significant threat to intra-regional trade.

 

The African Continental Free Trade Area (AfCFTA) offers an opportunity for businesses to take advantage of vast market potential across the African continent. To maximize the benefits of AfCFTA, Africans need to unite and tackle the challenges that exist with the intention to have the Africa we want becoming a reality. the question is , Is Africa a nation or decimated nations at loggerheads? the answer to this question assist in the integration equation of our beloved continent.  The challenges include interalia

- The fragmentation of markets due to different regulations, tariffs, and customs procedures across different RECs

- The complexity of rules of origin and their different implementation across different RECs

- The allegiance to former colonial powers among Lusophone, Francophone, and Anglophone countries within Africa that creates differences in regulatory standards across countries

- The bureaucratic pathologies such as duplication of customs requirements, variations in authorized trading partners, and thick borders that make it difficult for businesses to move goods and access new markets

- The gender-based violence that affects the safety and security of traders, especially women, when crossing borders

- The lack of infrastructure development such as roads, ports, and telecommunications that increases transportation costs and makes exports less competitive

- The documentation complexity that increases administrative burdens and delays for businesses operating across borders

- The different currencies, languages, and former colonial allegiances within African countries that complicate communication and payment processing

The possible solutions include-

- Increasing coordination, collaboration, and standardization of regulations among African countries to harmonize rules and regulations across RECs and AfCFTA.

- Simplification of customs procedures and documentation to facilitate trade and reduce bureaucratic inefficiencies across the continent.

- Enhancing capacity-building programs to help businesses adapt to new regulations and requirements and take advantage of new opportunities that AfCFTA offers.

- Creating a favorable environment for businesses to invest by enhancing access to financing, improving transportation and logistics infrastructure, and creating a more supportive and cooperative trading environment

- Addressing gender-based violence by creating a safe environment for all traders, regardless of gender, and providing adequate support for female traders

 

In conclusion, addressing these challenges requires coordinated efforts from both national and regional policy makers. there is need for adequate political which should override the existing colonial borders and people thinking across these barriers. the success of AfCFTA lies beyond conferences and summits as it requires serious introspection from the African people and African diaspora at large. It must be noted that the AfCFTA is for the Africans and should be by the Africans. Until Africa unite and become a nation there will be no AfCFTA. The redress of the above listed challenges remains in the willingness of the African people to see themselves as a people and I have said on other writings , For AfCFTA to live protectionism must die. 

Levious Chiukira (Ph.D)

Managing Consultant- Gleam Consultancy 

lchiukira@gmail.com