AU treaty

More African signatories to the African Continental Free Trade Area (AfCFTA), have started pulling out to avoid chances of mortgaging ailing indigenous manufacturing capacities.
Latest in the row after Nigeria, South Africa and Egypt, is Zimbabwe.
Minister in charge Zimbabwean Industry and Commerce told the state-controlled Herald newspaper that “Zimbabwe would only be able to fully implement the trade pact in about 15 years when it has fully industrialized so that it can effectively benefit from the market provided by the trade agreement.”
He averred further that “The government was fully aware of the concerns by the local manufacturing sector that it would fail to compete in the free trade area as it is currently facing a myriad of economic challenges.
Recall that the AfCFTA came into effect on May 30 after being ratified by 22 member states including Zimbabwe.
The free trade area, expected to boost intra-Africa trade, will create a continent-wide market of 1.2 billion people worth about $2.5 trillion.
While explaining that Zimbabwean government had made the necessary negotiations with other member states to make sure that they do not reduce the country to a dumping ground, he noted that “I understand the potential risk to it and the biggest one being we are likely to be on the receiving end from big companies who have more competitive products who will use us as a dumping site but obviously we did not ascend to it blindfolded.”
“As a country we have negotiated that we will fully implement the treaty in 15 years so we have more time to industrialize.
“We have more time to make sure that our companies are able to produce competitive products but at the same time we will be able to export to the whole continent.”

By Business Hilights

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.

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