‘Intra-regional trade an imperative for Africa’

from The Herald

From Victoria Ruzvidzo in Manzini, Swaziland

INTRA-REGIONAL trade in Africa is not an option but an imperative for the African continent to sustainably eradicate poverty, unemployment and poor health systems among its challenges.

This came out strongly here yesterday as the Trade Policy Training Centre in Africa (Trapca) annual conference entered its third day.

Overall, Africa was not ready to sign such agreements as the Economic Partnership Agreements (EPAs) from its current weak position but needed to build capacity through increased trade within regional groups such as Sadc, Comesa, Ecowas and Sacu.

Presently there was not much trade activity within due to a myriad of challenges that included tariff barriers, misconceptions about the quality of local products and other perceptions that led many to believe that products from the continent were inferior to what the rest of the world produced.

Zimbabwe is a member of both Sadc and Comesa.

There was heated debate yesterday regarding the status quo on the continent. Poor trade within regions was reflected in low socio-economic growth and the continent’s inability to claim a significant share of global trade despite its rich endowment of natural resources.

Africa commanded only 2,3 percent of world trade. Intra-Africa trade was the lowest at 14 percent compared to other regions such as the European Union whose figure stood at 60 percent and the North Atlantic Free Trade Area, which was at 50 percent.

"This indicates that we need to do more to trade amongst ourselves. We should value this kind of trade to ensure that we become more competitive as a continent," said Mr Fudzai Pamacheche, a Zimbabwean who heads the African Union’s Private Sector Development, Investment and Resource Mobilisation division based in Ethiopia.

Regions needed to develop their trade capacities and infrastructure while taking the trade debate to a higher level that included not just Government representatives but the private sector as well.

Leaving out the private sector had been a major drawback in fostering intra-regional trade while also compromising Africa’s position in world trade negotiations.

"In most instances we forget the key players involved, which is the private sector. Negotiations should be all-inclusive in character so that they become easy to implement. Involving all stakeholders is critical to allow everyone to make an input," said Mr Pamacheche.

A delegate from Zambia also remarked that Africans lived under the misconception that selling their products to America was much better than trading with other African countries.

"We are our own enemies. We have to defeat that notion so that we boost intra-regional trade and negotiate from a position of strength," he said.

A senior lecturer at the University of Buea in Cameroon Dr Ernest Molua challenged the continent to put its act together and look inwards before negotiating trade pacts elsewhere.

"There have been a lot of missed opportunities to promote trade amongst ourselves," he said.

To enhance trade, it was important that African countries liberalised trade amongst themselves. This could be done through reduction of tariffs, more efficient customs systems, increased political will to promote trade and the adoption of appropriate exchange rate policies.

Furthermore, it was essential that countries diversified their exports.

United Nations Development Programme International Policy Advisor based in Mongolia Dr Koffi Addo challenged the continent to move with the times and realise that world trade polices were largely influenced by regional trade arrangements.

"We should trade more among ourselves before we think of America, United Kingdom etc. Trade is the engine for economic growth and prosperity," he said.

This was echoed by the Minister Consular (Trade) at the Zimbabwean consulate based in Johannesburg Mrs Constance Zhanje who drew much applause when she remarked that it was all about attitude.

"In Africa we need to start changing our attitudes because if we don’t, nobody will. Why should we see some countries buying water from Europe when we have it here," she said.

In his official opening remarks on Monday, Swazi leader King Mswati lll challenged the continent to improve trade within itself.

"It is noteworthy that intra-regional trade is critical to economic development and poverty reduction in Least Developed Countries (LCDs) given that regional integration offers better markets while creating a bigger domestic territory amongst countries.

"It is, therefore, important for us to explore ways of modernising trade facilitations in order to encourage more trade amongst countries in the same region," he said.

Zimbabwe is represented by Mrs Zhanje and two International trade experts from the Ministry of Industry and International trade.