At the recent GCCA Africa Cold Chain Conference held on August 24, Lesley Wentworth, managing director of Tutwa Consulting Group, shared valuable insights on the potential of the African Continental Free Trade Area (AfCFTA) in enhancing imports and exports of perishables. This is Part 4 of a five-part series.
Despite these challenges, it’s crucial to note that trade under the AfCFTA remains limited in scope, with only about 100 out of 4 500 eligible products currently being traded. However, the agreement has facilitated the trade of value-added products, such as coffee, tea, and batteries, contributing to economic growth and enhancing livelihoods across the continent.
Still, many African countries face significant hurdles, including non-tariff barriers, inadequate infrastructure, and the necessity of strengthening regional value chains. Poor infrastructure is a predominant issue, encompassing not only the quality of roads and railways but also the interconnectivity between countries. The lack of seamless transport routes, especially from major urban centers to more remote areas, complicates logistics and increases trade costs. For example, transporting goods from Durban to the heart of Africa presents challenges such as crossing rivers and navigating poorly maintained roads.
The African Union’s movement of people protocol
Wentworth also touched on the African Union’s Movement of People Protocol, which, while not yet part of the AfCFTA, is essential for regional economic integration. This protocol aims to enhance the free movement of people across borders, promoting trade and collaboration within regional economic communities such as SADC and ECOWAS.
While the AfCFTA presents an extraordinary opportunity for enhancing trade across Africa, several structural challenges must be addressed to maximise its potential. The focus now shifts to fostering collaboration, improving infrastructure, and ensuring the successful implementation of trade agreements, which are crucial for the continent’s economic future.
Enhancing mobility and industrialisation in Africa
Wentworth continued her discussion by highlighting the complexities surrounding the movement of people across African borders. Each regional economic community has its own protocols, yet the African Union offers an overarching framework aimed at facilitating mobility. However, the reality for many African citizens seeking to travel, work, or do business within the continent remains fraught with challenges. For instance, obtaining work permits for South Africa or traveling to Ethiopia often involves navigating a cumbersome bureaucratic process filled with obstacles.
Wentworth emphasized the importance of enabling business professionals to move freely between countries, asserting that streamlined mobility is crucial for preventing operational delays in businesses. While security concerns and national contexts must be addressed, fostering a more accessible movement of people is vital for economic growth.