Trade expositions that focus on fostering growth for Africa’s micro, small and medium enterprises (MSMEs) are critical because it is only through increased exposure and experience that these businesses will be able to grow to eventually become sustainable corporations. It is through this type of growth that these businesses will be in a position to grow Africa’s GDP by embracing the benefits of the African Continental Free Trade Area. 

This is precisely the aim of the Discover Namibia Intra Africa MSME Township Economy Expo which kicked off at the coast yesterday. The local trade fair, of which New Era is one of the sponsors, focuses on fostering economic growth, collaboration, and development domestically and across the continent. 

This much-anticipated expo, scheduled to conclude tomorrow, has brought together a diverse array of participants, including MSMEs and township businesses, with the aim of empowering and showcasing entrepreneurial endeavours that could one day start exporting to other African countries and eventually the rest of the world. 

The expo, which highlights the importance of MSMEs and township businesses in driving economic progress, was designed to facilitate meaningful interactions, knowledge exchange and networking opportunities among participants as it serves as a catalyst for promoting intra-Africa trade. 

It is quite concerning that intra-Africa trade remains at a dismal 15% compared to more than 65% that Africans trade with European countries.

It was this concern that compelled African leaders to finally launch the African Continental Free Trade Area (AfCFTA) agreement some three years ago. Although beset by numerous challenges, what is encouraging is that actual trade under this new trade regime officially commenced in January 2021 with a handful of African companies already taking advantage by shipping their goods at significantly reduced or totally eliminated tariffs. 

These businesses form the basis of an initiative to kick-start intra-African trade through the continent-wide agreement, touted as the biggest free trade accord in the world in terms of population. 

Overall, AfCFTA aims to boost intra-African trade by 60% by 2034 by eliminating almost all tariffs through the creation of an economic bloc of 1.3 billion people with a combined gross domestic product of US$3.4 trillion. 

There is no doubt that as Africans we have to remain at the forefront of disseminating the intra-Africa trade narrative to the 54 countries on the continent.  

But, spreading the African free trade narrative means nothing if the policy and infrastructure challenges engulfing the implementation of the agreement are not adequately addressed. 

Africa’s leaders, businesses, and communities have to prioritise finalising trade policies that eliminate or reduce tariff and non-tariff barriers on the continent for the agreement to actually benefit African consumers. This task is in addition to dealing with issues such as Rules of Origin and numerous other challenges, including the integration of the existing regional economic blocs, including eight blocs recognised as the building blocks of the African Union, such as SADC and COMESA. 

AfCFTA is one of the flagship projects of the AU’s Agenda 2063, under the theme ‘The Africa We Want’. The agreement is highly ambitious, to say the least, and involves a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection. By eliminating barriers to trade in Africa, the ultimate objective of the AfCFTA is to significantly boost intra-Africa trade, particularly trade in value-added production and across all sectors of Africa’s economy.

Meanwhile, to make intra-Africa trade a reality will require the necessary infrastructure to support cross-border trade with each of the continent’s member states. However, with an infrastructure funding gap of up to US$100 billion for development, it is clear the African Continental Free Trade Area cannot succeed without adequate groundwork being laid.