BY GRACE MACHA IN ARUSHA
The African Continental Free Trade Area (AfCFTA) agreement will lift 20 million people out of extreme poverty by 2035.
Another 60 million will be saved from moderate poverty through enhanced intra-continental trade which came into force in January 2021.
This was announced in Bujumbura early this week as the East African Business Council (EABC took its sensitization drive on AfCFTA to Burundi.
The drive was spearheaded by the apex body of private sector associations in collaboration with the African Export-Import Bank (Afreximbank).
It targeted small and medium-sized enterprises (SMEs) and women in business and youth, the aim being to increase their skills to effectively capitalise on opportunities under the trade pact.
EABC executive director John Bosco Kalisa lauded the Burundi for successful finalization and validation of its AfCFTA National Strategy that will pave the way for seamless implementation.
AfCFTA, already signed and ratified by the majority of African countries, encompasses a market of 1.3 billion consumers, projected to grow to 1.7 billion by 2030.
It is anticipated that by 2030, the combined Gross Domestic Product (GDP) in the continent will be $ 3.4 trillion and consumer spending of nearly $ 4 trillion.
"Furthermore, effective AfCFTA implementation is expected to lift 20 million people out of extreme poverty and 60 million out of moderate poverty by 2035", he said.
Speaking at a workshop to launch the drive, Burundi minister for Trade, Transport, Industry and Tourism Ms
Marie Chantal Nijimbere emphasized the importance of keeping youth and women in business informed about regional and continental trade dynamics.
She acknowledged the challenges, including infrastructural deficits, low industrialization, and persistent non-tariff barriers (NTBs) which, she said, hinder the realization of the AfCFTA's potential.
Furthermore, the minister stressed that the AfCFTA offered the East African Community (EAC) region an opportunity to establish regional value chains.
The continental trade pact would also reduce dependence on external partners, and boost intra-African trade, ultimately improving GDP through domestic value addition.
On his part, Mr. Antoine Muzaneza, Board Director of EABC highlighted that the AfCFTA's implementation is expected to increase investments and FDIs on the continent.
However, policymakers must invest in both hard and soft infrastructure, such as transportation and logistics supply chains, to facilitate cross-border trade.
Mr.Muzaneza, who is also the chairperson with a Burundi business association called Acobu, said building robust distribution networks will necessitate substantial investment.
He emphasized that the AfCFTA's objectives, regardless of their merit, will remain elusive unless micro, small, and medium-sized enterprises were fully roped in.
The enterprises in question form the backbone of trade and production on the continent and can fully exploit emerging opportunities.
He further stressed the need for active engagement by governments, regional and continental institutions, and development partners, with a focus on eliminating NTBs.
To fully harness the AfCFTA's benefits, Regional Economic Communities (RECs) and governments must take the lead in harmonizing policies and legal frameworks to facilitate cross-border trade.
This, however, requires strong political will and the creation of a favorable trade and investment environment.The sensitization workshop attracted over 40 SMEs and women in business.
They assessed the current status of negotiations in order to understand the implications of the AfCFTA protocols on their businesses, preparing them to engage in trade with counterparts across Africa.
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