A griculture value chains have the most potential for opportunities under the African Continental Free Trade Area (AfCFTA).
Senior advisor to the secretary general at the AfCFTA, Komla Bissi, yesterday revealed the detailed analysis conducted by the AfCFTA secretariat during the annual Bank Windhoek discussion on agriculture. The series is aimed at informing interested parties on relevant agricultural topics and, concurrently, creating a platform where experts in the sector share knowledge and contribute to the commitment and drive of the agriculture sector.
The AfCFTA is envisaged to promote continental integration, which will make Africa competitive by promoting productivity and enhancing competitiveness and value chains. Furthermore, the benefits would accrue to producers, processors, exporters, importers, consumers and the overall domestic economy.
“Some of the aspects among the value chains that popped up in our analysis were grains and cereals, meat and meat products such as beef, poultry and fish. I believe these are some of the value chains that will be of interest to Namibia,” Bissi stated.
Agriculture remains one of Namibia’s most important sectors, with the majority of the country’s population depending directly or indirectly on the sector for their livelihoods. In addition, agriculture’s contribution to the country’s gross domestic product (GDP) (excluding fishing) over the last five years has been just over 4%.
Bissi added that the AfCFTA secretariat is open for discussions with Namibia to see where and how they can assist the country to further develop its value chains. “We have received a series of requests from governments to help them satisfy domestic food security. We will be happy to support you in looking into these and other areas that you may want. You are currently not meeting the recommended levels of grain storage,” he noted. Namibia has made a strong commitment to the AfCFTA, and has long recognised the potential of the continental agreement in promoting trade and economic growth. To this end, the country has taken several crucial steps to ensure the effective implementation of the agreement.
Namibia ratified the AfCFTA agreement in January 2019, and submitted its tariff offer under the Southern African Customs Union (SACU) configuration, demonstrating its commitment to the vision of a united and prosperous Africa.
At yesterday’s event, deputy trade minister Verna Sinimbo said AfCFTA can promote the trade of agricultural products, making it easier for countries to access a variety of food items, and reduce food shortages.
“The AfCFTA, therefore, allows us to export our surplus agricultural goods, which can stimulate economic development and export diversification. The agreement encourages investments
in agribusiness and value-addition within the agricultural sector. Commercial banks can provide financing for infrastructure and processing facilities to boost the competitiveness of African agricultural products,” the deputy minister added.
She said government is fully committed to the successful implementation of the AfCFTA, and will continue to streamline trade and customs’ procedures to reduce trade barriers and facilitate the movement of goods within the continent.
Sinimbo then called on businesses to explore new market opportunities, and invest in the production of goods and services which can be competitively traded within the AfCFTA framework. The private sector is also expected to embrace innovation and technology to enhance productivity
and competitiveness.
The deputy minister observed that all these activities can only be unlocked once appropriate funding mechanisms are availed, and there are deliberate efforts made to ease access to finance.