By:Nghiinomenwa-vali Erastus
A manufacturer based anywhere on the continent will have immediate and unfettered access to his or her products in an increasingly borderless market of over 1.3 billion consumers.
These consumers control nearly 3 trillion US dollars’ worth of spending power according to Melaku Desta, Coordinator of the African Trade Policy Centre (ATPC).
That is why the AfCFTA is considered a game changer, he said.
Desta was speaking during the launch of the National Africa Continental Free Trade Area (AfCFTA) Implementation Strategy and Plan (2022-2027), on Monday.
He, however, reminded the policymakers and trade facilitators that the potential statistical growth and monetary gain being cited will remain a dream if there is no practical implementation.
“We also know that we are only describing the potential of the AfCFTA, which potential can be turned into reality only if and to the extent of its implementation,” Destastated.
He also acknowledged the potential for diversification of export markets beyond SACU and SADC and the number of opportunities that can be created.
He also reminded that it will invariably expose Namibian producers and businesses to new challenges, hence the need for building competitiveness.
As a result, “there is an urgent need to explore sources of efficiency improvements across the productive sector through policy and regulatory reforms, and to build export readiness capacity across all sectors especially manufacturing (value addition) and services to enhance competitiveness,” he pointed out.
Beyond policymaking, a strong commitment at the level of the firms to drive productivity, enhance quality control and invest in skills capacity development at every level was also cited as a requisite.
Equally, the availability of e-commerce platforms or digital trade opportunities is an emerging opportunity for Namibia to penetrate regional supply chains, thereby enhancing access to continental and global markets.
Desta touched on Namibia’s huge potential in agro-processing and fish processing; mineral processing and beneficiation; and service-driven value chains, particularly in tourism and travel, financial, transport, communication, business services, educational and health services offer opportunities in a larger market and that these opportunities should be grabbed.
The ATPC coordinator stressed the need to address the infrastructure bottlenecks, both soft and hard, as one key issue that the continent must be cognizant of as it navigates the terrain of improving competitiveness.
“The infrastructure deficit remains the Achilles heel for Africa and continues to undermine economic growth and productivity and raises transportation costs and reduces product competitiveness,” Desta said.
For this, he advised the continent to have an enduring solution if the continent is to fully achieve the objectives of the AfCFTA
THE WAKE-UP CALL
Desta highlighted that the Russia-Ukraine conflict exposed the continent’s dependence on imports for something as basic and essential as daily bread.
Secondly, Covid-19 invoked a worldwide lockdown and tested the continent’s ability to unite and integrate.
He said that the global challenges even exposed the continent’s excessive dependence on imported food, pharmaceuticals and other products essential for its survival.”All these challenges may have left us – and the AfCFTA – stronger,” he remarked.
He added that the continent’s dependence on the export of primary commodities and the import of processed goods has shown, time and time again, that is not the way to develop viable economies that will create the hope of well-paying jobs and decent life opportunities for the youth, as well as a respectable position for the continent in global affairs..
The ATPC coordinator said that the AfCFTA is the continent platform on which it can stand to implement the AU commodity strategy, add value before exporting, and retain a share of the resource rent within Africa.
At the same time, it is also the only way Africa can move up in the global value chain.
“We cannot afford to continue to sit at the bottom of that chain, digging and exporting raw mineral ores or sending out primary agricultural raw materials,” Desta castigated.
He also called upon the continent to use the AfCFTA to replace the many small and fragmented economies and markets on the continent with one single market, to create the economy of scale necessary to make large-scale investment possible and profitable.
Namibia’s National AfCFTA Implementation Strategy contains seven broad policy objectives with detailed action plans: to develop and submit tariff offers and services schedule, to the AfCFTA secretariat, and establish a National Implementation Committee.
The strategy also plans to increase the country’s export market, develop capacity for trade in services and at the same time attract domestic, cross-border and foreign direct investment.
Furthermore, it seeks to revamp the country’s industrial policy and implement it; and focus on women and youth and MSMEs. Email: erastus@thevillager.com.na
U$3 Trillion Worth Of Spending Power Up For Grabs
