AfCFTA success must be anchored  on technological advancement

Nqobile Bhebhe in Victoria Falls

SMART Africa director general and chief executive officer, Mr Lacina Koné, says the success of the African Continental Free Trade Area (AfCFTA), which is set to be the largest free trade area globally, must be anchored on technological advancement.

The AfCFTA is a flagship project of the African Union’s Agenda 2063, which aims to boost intra-African trade by providing a comprehensive and mutually beneficial trade agreement among the member states, covering trade in goods and services, investment, intellectual property rights, and competition policy.

Under the agreement, Africa expects the AfCFTA implementation to increase mobility of the continent’s people, goods and services with attendant necessities for institutions to harmonise and integrate much of its operational systems, regulations, and mechanisms.

Estimates indicate the AfCFTA could boost the continental economy from about US$3 trillion (2020) to about US$8 trillion by 2030.

Added to that, with the continent’s growing population, AfCFTA is envisaged to be the largest free trade area since the formation of the World Trade Organisation given Africa’s current population of 1,3 billion people, which is expected to grow to 2,5 billion by 2050.

To cement the free trade area that would be powered by technological advancement, the Smart Africa and AfCFTA leadership yesterday signed a memorandum of agreement that seeks to enhance collaboration in information, communication, and technology to develop a Single Digital Market for Africa under the AfCFTA.

The ceremony was conducted on the sidelines of the Transform Africa Summit and witnessed by several ministers from Niger, Ghana, Togo and Mauritius among others.

The summit is Africa’s leading annual forum bringing together global and regional leaders, as well as digital experts to collaborate on new ways of shaping, accelerating, and sustaining Africa’s ongoing digital revolution.

This year it is being held under the theme: “Connect, Innovate and Transform.”

Mr Kone and secretary general of the African Continental Free Trade Area (AfCFTA, Mr Wamkele Mene, signed on behalf of the two institutions.

AfCFTA

The agreement will see them cooperate mainly in the areas of technical support to the development and implementation of the AfCFTA Protocol on Digital Trade, cooperation in work related to digital transformation and promotion of digital financial inclusion.

Another area of focus is the development of a unified approach to digital cross-border payments (including pilot projects) within the AfCFTA, including supporting the implementation and preparation of studies, technical notes and briefs on the implementation and advocacy of the AfCFTA Protocol on Digital Trade.

Speaking to the media at the signing ceremony, Mr Kone expressed optimism that the free trade area will be the largest globally.

“Our successes should be based on the fact that we have a common vision and not that we as Africa have common borders.

“This is a strategic area because the African Continental Free Trade Area will be the biggest free trade area in the world and would be supported by the digital engine that Smart Africa has been spearheading for the past 10 years,” said Mr Kone.

Mr Mene said partnership with Smart Africa will further deepen financial inclusion in the continent and provide huge economic opportunities for the private sector in the digital economy in the continent.

“With the signing of the MOU, we seek to leverage on the expertise of Smart Africa in digital solutions in addressing trade-related challenges and enhancing participation of women-owned businesses and youth in small business enterprises in the digital economy.

“Although we have signed the MOU today (Thursday) we have been working together for some time and the MOU is a formalisation of the working relationship. We will deploy digital technology, digital solutions to the challenge of intra- Africa trade. Whether it is related to digital payments, customs systems digitalization’s and transfer of goods,” he said.

Zimbabwe is pursuing revitalisation of strategic industrial value chains as part of efforts to enhance domestic productivity and substituting imports while positioning local businesses to tap into trade opportunities under AfCFTA.

Guided by the National Development Strategy (NDS1:2021-2025), the Government and the private sector are agreed on the need to up-scale industry operations through leveraging on comprehensive policy reforms being undertaken by the Second Republic led by President Mnangagwa.

Under NDS1, the country has committed to spearheading a dual strategic thrust towards private sector-led economic growth and export-led  growth.

Related to this is the drive to create a favourable operating environment through ease of doing business reforms, supported by international re-engagement on all fronts with focus on economic diplomacy.
The country expects these strategies to boost not only intra-Africa trade but penetration of global value and supply chains.

You Might Also Like

Comments