For many business leaders of the continent, the African Continental Free Trade Area (AfCFTA) will have a positive impact on intra-African trade by next year.
The Pan African Trade and Private Sector Investment Committee (PAFTRAC) presented the findings of its annual survey of African business leaders on intra-African trade. They highlight the opportunities and challenges facing companies trading in Africa.
“The survey clearly shows that the vast majority of African CEOs believe that the implementation of the AfCFTA will have a positive effect on intra-African trade levels as early as 2022-2023. Of the CEOs surveyed, 93 percent are confident that the AfCFTA will have a positive impact. 26 percent are very confident. Only 4 percent of participants believe that the AfCFTA will have, or has already had, a negative impact on their businesses,” said Professor Pat Utomi, chairman of PAFTRAC, a group of African private sector leaders.
More than 800 leaders from 46 African countries participated in the survey conducted with African Business magazine, says a statement received by APA. The survey provides a unique insight into the challenges and opportunities that exist in trade in Africa. It is an excellent barometer to measure the feelings of the private sector towards African trade and the African Continental Free Trade Area (AfCFTA), adds the report, which also highlights how African companies see opportunities in foreign markets.
“African firms do not appear to be prioritizing exports to one region of the world over another. Nevertheless, the survey showed that while Europe seems to be the preferred destination for exporters, the Middle East is an increasingly popular destination due to growing trade and investment links with Africa,” notes the PAFTRAC President.
Zlecaf, which came into force in January 2021, is still struggling to get off the ground. Its secretary-general, South Africa’s Wamkele Mene, had already expressed fears about the rapid implementation of this intra-African trade treaty, as many states do not have border facilities.
“It is going to take us a long time. If you don’t have the roads, if you don’t have the proper equipment for the customs authorities at the border to facilitate the quick and efficient transit of goods…if you don’t have the infrastructure, both soft and hard, it reduces the scope of this agreement,” said Mene, a trade expert elected by the African Union in February 2020.
ODL/cgd/fss/abj/APA