East African Business Council (EABC) and Afreximbank has trained SMEs in Rwanda on African Continental Free Trade Area (AfCFTA) protocols.
The two day national sensitization workshop held in Kigali aimed at promoting intra-African trade through raising awareness about (AfCFTA for SMEs and women in business.
EABC Vice Chairperson in Rwanda Dennis Karera hailed Afreximbank for their commitment to enhancing the capacity of the EAC private sector to leverage opportunities arising from liberalized trade within Africa under the AfCFTA framework.
“Despite Africa contributing only around 2.0 per cent to global trade and with just 17 per cent of African exports being intra-African, the AfCFTA offers a chance to boost intra-African trade,” Mr Karera said through a release yesterday.
However, he said, various aspects of the agreement, such as tariff offers and rules of origin, still require finalisation by member states.
“To ensure successful implementation, EABC is focusing on equipping the private sector with the necessary skills to engage in trade with continental partners,” he said.
The two days training started on Monday and the Rwandan SMEs and women traders are the main beneficiaries of the initiative. The AfCFTA has been in effect since January.
EABC and Afreximbank have partnered to raise AfCFTA protocols and their significance to businesses in the East African Community (EAC) region.
Mr Fred Mugabe, Director General of Entrepreneurship and Industry Promotion in Rwanda emphasised the significant role that SMEs play in driving economic development, contributing to almost 90 per cent of the EAC’s GDP.
“However, many SMEs face trade barriers, both tariff and non-tariff, which hinder cross-border trade,” Mr Mugabe said.
Additionally, he said that the AfCFTA is designed to address these challenges across member states, particularly for SMEs, by promoting intra-African trade and investment.
Mr Mugabe said Kigali negotiated 90 per cent tariff liberalisation and started to experience economic gains from the AfCFTA market through its involvement in the guided trade initiative.
The workshop provided an opportunity to discuss AfCFTA’s available opportunities and explore how the private sector can position itself to maximise potential benefits.
The workshop covered topics such as the description of the AfCFTA agreement, the structure of the protocol on trade in goods and its annexes, AfCFTA instruments, and opportunities within the guided trade initiative.