African CEOs optimistic about AfCFTA’s future, despite challenges

CHIEF EXECU TIVES OF BUSINESS organisations and trade experts across Africa have expressed optimism that the African Continental Free Trade Agreement (AfCFTA) will play a major role in business sustenance and economic growth over the next 12-18 months, notwithstanding the numerous challenges that have so far hindered rapid progression.

The optimism is the outcome of a recent survey of 400 CEOs from 44 African countries and two foreign countries, conducted by the PanAfrican private sector trade and investment committee (PAFTRAC).

The respondents expressed strong faith in AfCFTA as over 71 percent were positive that the AfCFTA will encourage them to invest to grow their business regionally. More than half of the respondents (57 percent) also believe that the AfCFTA will open up new markets to export regionally and provide the necessary frameworks to export more commodities and services regionally.

PAFTRAC found that a majority (87 percent) of the CEOs were confident that AfCFTA, asides being on a positive pathway towards increased intra-African trade, has boosted the economic outlook of the business industry since inception.

They posited that AfCFTA, through its international and regional trade strategies and agreements, is one of the key driving forces that would enhance trading opportunities within Africa and accelerate the continent’s move towards economic recovery.

The African CEOs also identified some of the key challenges they foresee to have a negative impact on Africa’s economic recovery prospects. 64 percent of the respondents indicated lack of access to finance, 61 percent pointed at the ongoing impact of the COVID-19 pandemic on economic opportunities, while 48 percent laid emphasis on a slow down or lack of public sector investment and expenditure.

The survey showed that though the appetite for regional trade is strong, a majority of business entrepreneurs see access to trade finance and access to investment capital as the two biggest constraints which need to be addressed when trading regionally.

The respondents also recommended that stakeholders driving the implementation of the AfCFTA ensure that up-to-date information is made accessible on channels that people frequently use to get information on import and export regulations.

Commenting on the result, Pat Utomi, the chair of PAFTRAC, said that the positive sentiment expressed by survey respondents demonstrates the potential of the AfCFTA and the eagerness of Africa’s private sector to take advantage of the market access opportunities it offers.