AFCFTA IMPLEMENTATION TO SHORE UP ZAMBIA RESILIENCY
FULL implementation of the African Union Continental Free Trade Agreement (AfCFTA) will assist Zambia increase resiliency in the face of future economic shocks.
It can also help usher in the kinds of deep reforms that are necessary to enhance long-term growth, says Centre for Trade Policy and Development (CTPD) Executive Director, Isaac Mwaipopo.
Mr Mwaipopo explained the gains would come about by increasing regional trade, lowering trade costs, and streamlining border procedures.
The AfCFTA, he said, could boost Zambia’s continental and regional trade, jobs and reduced tariffs scheduled to be negotiated.
He said this one when CTPD made a submission to the Parliamentary Committee on National Economy, Trade and Labour Matters on the Ratification of AfCFTA.
“Achieving the gains from AfCFTA is especially important due to the COVID-19 pandemic, which is expected to cause up to US$79 billion in output losses in Africa in 2020 alone,” Mr Mwaipopo said.
Mr Mwaipopo explained that ratification of the AfCFTA by Zambia could signal several elements for the country.
He indicated that most of the opportunities for job creation did not exist in commodity trade such as copper, saying they, on the contrary, existed in value addition.
The AfCTA, Mr Mwaipopo said, presented such potential through value chain development.
He stressed that the AfCFTA could help incentive infrastructure development in Zambia in order to create an enabling environment for entrepreneurial actors such as Small and Medium Enterprises (SMEs to grow and expand into regional markets.
“Zambia is likely to benefit from this pillar of market integration because of the following assumptions. African neighbours are a significant export market of non-traditional exports – mainly unrecorded trade.
“The establishment of the AfCTA will eliminate problematic issues round tariff restrictions, thereby boosting SMEs and driving inclusive growth,” he said.
Mr Mwaipopo however said: “achieving the full potential of AfCFTA will depend on significant policy reforms and trade facilitation measures.”