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ITC: 50pc of MSMEs unaware of AfCFTA

INTERNATIONAL Trade Centre (ITC) survey has revealed that more than half of MSMEs in Africa are unaware of the African Continental Free Trade Area (AfCFTA) agreement and its benefits.
African Continental Free Trade Area (AfCFTA)

DAR ES SALAAM: INTERNATIONAL Trade Centre (ITC) survey has revealed that more than half of MSMEs in Africa are unaware of the African Continental Free Trade Area (AfCFTA) agreement and its benefits.

The ITC, a joint agency of the World Trade Organisation (WTO) and the United Nations dealing with SMEs, said in Dar es Salaam on Wednesday that the continent is sitting on a vast reservoir of untapped intra-African export potential—estimated at 22 billion US dollars.

To support the AfCFTA, the ITC launched the ‘One Trade Africa Initiative’ to empower African MSMEs, women and youth entrepreneurs to fully capitalise on the agreement in partnership with the AfCFTA Secretariat.

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“This training addresses this gap by enhancing the capacity of business support organisations (BSOs) to equip African youth-led SMEs with the necessary tools to seize the benefits of intra-African trade,” said Richard AduGyamfi of the ITC, during the recent launch of a training boot camp for youth entrepreneurs in Dar es Salaam.

“Africa’s young entrepreneurs are the backbone of economies and hold the key to unlocking the potential of the AfCFTA. By equipping them with the right tools, we can create a new era of cross-border trade that drives sustainable economic growth and integration,” he said.

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The training boot camp aimed at equipping youths with essential skills and knowledge to take advantage of export opportunities under the AfCFTA was rolled out by the East African Business Council (EABC) in collaboration with the ITC.

Funded by the European Union, this initiative was part of the EU-East African Community Market Access Upgrade Programme (MARKUP) II.

The three-day training boot camp, titled “Export Readiness for Youth-Led SMEs under the AfCFTA,” convened trainers from East African business support organisations to enhance their capacity to support young entrepreneurs in trading across borders under the AfCFTA.

The training covered key topics such as navigating the AfCFTA protocols, understanding export procedures, leveraging digital platforms for exports and utilising trade information resources.

The EABC Trade in Goods Manager, Mr Frank Dafa, said the AfCFTA has the potential to boost intraAfrica trade by 52.3 per cent by eliminating import duties and to double this trade if non-tariff barriers are also reduced.

“Due to infrastructure challenges, Africa has a low level of intra-trade, which sits at just 18 per cent of total goods traded in the region,” Mr Dafa said.

According to the African Union, the continent is home to more than 400 million youths, making it a prime target for investment and social development. Ms Happiness Nyiti from AJA Ltd shared her success story of exporting more than 20 tonnes of sisal fibres to Ghana under the AfCFTA, illustrating the potential that awaits those ready to engage in intra-African trade.

A recent ITC survey on small and medium-sized African enterprises, found that 60-70 per cent reported low availability of trade-related training and information.

The training aims to familiarise young business leaders with the fundamentals of the AfCFTA, including trade facilitation, tariffs and rules of origin.

Currently, 48 out of 54 countries have signed the agreement, with 89 per cent of the signatories ratifying it. Tanzania, Kenya and Rwanda have commenced trading under the AfCFTA Guided Trade Initiative (GTI).