TPSF urges businesses to leverage AfCFTA opportunities
DAR ES SALAAM: TANZANIA Private Sector Foundation (TPSF) has emphasised the importance of equipping businesses with the necessary tools and knowledge to effectively seize the valuable opportunities presented by the African Continental Free Trade Area (AfCFTA).
By enhancing their understanding of trade opportunities and regulations under the AfCFTA, SMEs can better navigate regional markets, increase their competitiveness and expand their export capabilities.
“This initiative not only contributes to the growth of individual businesses but also fosters economic diversification and job creation, ultimately strengthening Tanzania’s position in the continental economy and promoting sustainable economic development,” said TPSF Chief Executive Officer Mr Raphael Maganga told ‘Daily News’ at the weekend.
Mr Maganga said while this presents an opportunity for corporates and SME traders to export products across the continent, it is important to empower businesses with the tools and knowledge needed to access the market and compete with their counterparts.
During the event, more than 50 SMEs were trained by the East African Business Council (EABC) in collaboration with the Team Europe Technical Assistance Facility to support the AfCFTA and Continental Economic Integration (EU-TAF) to enhance their understanding of the AfCFTA.
The training covered key initiatives under the agreement, including the Guided Trade Initiative (GTI), the AfCFTA Adjustment Fund, and value chain integration. He said this initiative aims to equip SMEs with the necessary tools to access the extensive continental market of 1.3 billion consumers.
Ultimately, this effort seeks to strengthen SMEs’ capacity, positioning them for greater success in a competitive regional marketplace with a combined GDP of an estimated 3.4 trillion US dollars the pact links 1.3 billion people living in different parts of the continent.
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Chairman of the Tanzania Shippers Council (TSC), Mr Clement William Kamendu said, “We must work together to reduce transport and logistics costs to ensure we remain competitive,” He noted that due to such barriers, intra-African trade accounts for only 16 per cent of Africa’s total trade volume, compared to 57 per cent in Asia and 68 per cent in Europe.
EABC’s Membership and Business Development Manager, Mr Zephania Shaidi encouraged Tanzanian businesses to look beyond local markets and seize continental trade opportunities under the AfCFTA. According to the International Trade Centre, Tanzania’s goods exports to Africa stood at 2.65 billion US dollars and imports at 1.5 billion US dollars, last year.
He added that the continent’s participation in global value chains is low and primarily driven by commodities. To advance up the value chain, Africa needs value addition, industrialisation, improved infrastructure and the actualisation of an integrated market under the AfCFTA agenda.
EABC is committed to enhancing the capacity of the EAC private sector to trade under the AfCFTA and through the European Union Technical Assistance Facility, will roll out similar workshops across other countries.
The AfCFTA prioritises key value chains to drive intra-African trade and industrial growth. These include agriculture and agri-processing, pharmaceuticals, automotive, transport and logistics, and textiles and apparel.
By focusing on these sectors, the AfCFTA aims to create jobs, boost regional trade, and strengthen Africa’s global competitiveness. The African Export-Import Bank (Afreximbank) and the AfCFTA Secretariat have already established the AfCFTA Adjustment Fund, with operations of the Fund domiciled in Rwanda.
The Fund is expected to support countries and private entities through financing, technical assistance, grants, and mitigation and compensation funding during their transition to the AfCFTA trading regime.
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The SMEs engaged in discussions on value chain analysis to improve their products and services with the goal of discovering gaps and opportunities to enhance operational efficiency, resource utilisation, financial performance, profitability, product quality, and sustainable competitive advantage in light of the AfCFTA.
The event brought together over 50 private sector representatives from diverse industries, including manufacturing, agro-processing, SMEs, creative industries, transport, and government officials.
