The Zimbabwean government is actively negotiating to ensure sensitive products like clothing, textiles, and sugar are covered in the African Continental Free Trade Area (AfCFTA). The ultimate goal is 100% product trade coverage.
During the Confederation of Zimbabwe Industries congress, Sithembiso Nyoni, the Industry and Commerce Minister, emphasized last week the pivotal role of AfCFTA in reshaping Zimbabwe’s economic framework. Zimbabwe signed onto AfCFTA in 2018 and ratified it the following year.
Highlighting its potential, Nyoni said that AfCFTA could amplify intra-Africa trade by more than 50%. This enhancement comes by removing tariffs and other trade barriers. Currently, AfCFTA allows for trade of 88.3% of goods, which equates to nearly 5,000 products. These products already have established rules of origin.
Nyoni noted, “To achieve full coverage, negotiations concerning sensitive items like clothing, textiles, automotive products, and sugar should conclude this year.”
With the AfCFTA Private Sector Engagement Strategy, the agreement is propelling regional value chains. This strategy aims to provide African nations with opportunities to leverage regional strengths, bolstering competitiveness, diversifying product supplies, and exporting products with greater value addition.
She explained that this strategy initially targets four sectors: agro-processing, automotive, pharmaceuticals, and transportation and logistics. These sectors were chosen considering their potential for import substitution and the existing production capabilities in Africa.
To align with AfCFTA’s objectives, Zimbabwe’s Ministry of Industry and Commerce collaborates with the private sector. This collaboration focuses on shaping, implementing, and supervising sector strategies and value chains that could flourish under AfCFTA.
For AfCFTA to succeed, Nyoni called for cooperation among businesses, regardless of size. By building robust business connections, productivity and trade can be enhanced. Additionally, she urged entities, from manufacturers to retailers, to commit to ethical business practices, benefiting workers, consumers, and the environment.
Nyoni also addressed consumer rights, revealing that her ministry is formulating a Consumer Protection Policy and General Regulations. Newsday Zimbabwe reported that the new policy and regulations will supplement the existing Consumer Protection Act.
Finally, Nyoni expressed her conviction that Zimbabwe’s economic resurgence hinges on transitioning towards industrialization. “The government’s directive,” she said, “is crafting and actualizing policies and strategies that spur industrial development, guiding the sector towards sustained growth.”
