Policy Monitoring and Research Centre (PMRC) has urged the Ministry of Commerce, Trade and Industry to build capacity of local firms to compete in the Continental Free Trade Area (CFTA) market.
Centre Head of Research and Analysis Salim Kaunda told Money FM News that special focus should be given to Industrial policy, Trade policy and other policies related to the cost and ease of doing business in order to encourage investment in the manufacturing sector.
Mr. Kaunda said the Ministry must also provide support for small scale producers to avoid crowding out by a market run by the private sector.
“Small scale producers may adapt to the post-CFTA market through enhanced technical, managerial and financial skills to meet industry standards,” Mr. Kaunda said.
Meanwhile, Mr. Kaunda advised Government to increase sensitization about the CFTA and the impact of Zambia joining as this will equip businesses and manufacturers in strategically positioning themselves to benefit from Continental market.
“Government is urged to conduct research on and prioritize sectors where the country has comparative advantage and build domestic production capacity. There is need to increase sensitization about the CFTA and the impact of Zambia joining because this will equip businesses and manufacturers in strategically positioning themselves to benefit from CFT,” he added.
Continental Free Trade Area (CFTA) covers a market of over 1.2 billion people and a gross domestic product of more than US$2 trillion.
The primary objective of the CFTA Agreement is to create a single market for goods and services which also allows for the free movement of business and natural persons.
The market also seeks to promote sustainable socio-economic and industrial development as well as increase the competitiveness of African economies on the global market.