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AFCFTA to increase opportunities – COMESA

• The AfCFTA is expected to lift around 68 million people out of moderate poverty.
• CBC will assist in creating a conducive environment for the private sector to grow.
• AfCFTA is a good opportunity for industries to exploit the economies of scale.

Common Market for Eastern and Southern Africa (COMESA) Business Council (CBC) says the African Continental Free Trade Area (AfCFTA) has the potential to increase employment opportunities and incomes, helping to expand opportunities for all Africans.

In a statement on the virtual African Continental Free Trade Area (AfCFTA)) stakeholders’ training workshop issued to Money FM News, CBC Chief Executive Officer Sandra Uwera said the AfCFTA is expected to lift around 68 million people out of moderate poverty and make African countries more competitive.

Ms. Uweru elaborated that the AfCFTA will be a game changer for stimulating intra-African trade and trading of manufactured products.

She had since recommended that to fully benefit from the AfCFTA the private sector and businesses must make some adaptations which include Investing in Value Addition in sectors like agriculture and minerals to avoid exports of raw products, Establishing Value Chains using Innovation and technology to produce and export high-quality products which will be competitive in the global market and finding the best source of raw materials.

“In the modern commercial world, it is only innovative and competitive businesses which will succeed in the marketplace,” she said, further urging, “Business captains to put serious thoughts and efforts into product innovation and diversification.”

Meanwhile CBC Chairman Marday Venkatasamy said the aim of AfCFTA is to connect 1.3 billion people across 55 countries in Africa with a combined gross domestic product (GDP) valued at US$3.4 trillion.

Mr. Venkatasamy pointed out that AfCFTA will increase the volume of intra-African trade by 81 % by 2035 and increase the volume of total African exports by 29%.

“The biggest gains from the AfCFTA will be the reduction of non-tariff barriers (NTBs) and implementation of trade facilitation initiatives, which is anticipated to increase intra-African trade,” he pointed out further.

“CBC will assist in creating a conducive environment for the private sector to grow, since it is the major engine for sustainable economic growth and development, job creation and poverty alleviation in Africa” added Mr. Venkatasamy.

And COMESA Secretariat Assistant Secretary-General, Programmes, Ambassador. Dr. Kipyego Cheluget said the launching of AfCFTA on 1st January 2021 presents numerous opportunities for the COMESA business community in African continent, especially with regards to market size.

Dr. Cheluget Stressed the overarching vision of the AfCFTA of “create a single liberalized market for goods and services, facilitated by movement of persons” to deepen the economic integration of the African continent”

“AfCFTA is a good opportunity for industries to exploit the economies of scale and access cheaper raw materials from other countries in the continent,” he said.

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