Swazi Observer

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AFCFTA IMPLEMENTATION TO INCREASE INTRA-CONTINENTAL TRADE

By Ministry of Commerce Industry and Trade | 2023-05-03

The Prime Minister Cleopas Dlamini says the African Continental Free Trade Area (AfCFTA) National Strategy and Implementation Plan, which is under development, has a potential to increase Eswatini’s participation in the intra-continental trade.

Currently Eswatini’s exports are mainly to the neighbouring South Africa, which is also necessitated by the fact that the two countries are in a customs union, the Southern African Customs Union with other three countries in the region.

The Prime Minister was speaking when a team of experts from the AfCFTA was making a presentation on the Draft AfCFTA Strategy and Implementation Plan during yesterday’s Cabinet Meeting. The AfCFTA Team comprised the AfCFTA Secretariat, Ministry of Commerce, Industry and Trade and the consultants that are leading in the development of the Strategy and its Implementation Plan.

The Strategy development and Implementation Plan is financed by the Economic Commission for Africa (UNECA) and supported by the Ministry of Commerce, Industry and Trade.
The Director of UNECA, Sub-regional Office for Southern Africa, Eunice Kamwendo said UNECA supports member states to develop various development strategies including the AfCFTA National Strategies to accelerate intra-continental trade.

Currently, 54 of the 55 African Union Member States have signed the Agreement; Eritrea is the only exception. Eswatini is amongst the 46 countries (about 85% of signatories) that have ratified the Agreement as the country was amongst the first eight countries on the continent to ratify the AfCFTA Agreement in 2018.

Stakeholder
The Eswatini National AfCFTA Strategy and Implementation plan which will be validated by stakeholders tomorrow will make Eswatini to be seventh AU Member State to develop and validate the AfCFTA Strategy.

As part of the World Trade Organization (WTO) Trade Facilitation Agreement, the AfCFTA Strategy and Implementation Plan will enhance the already existing trade facilitation initiatives aimed at seamless trade in the continent.

Therefore the implementation of the strategy will be a responsibility of the National Trade Facilitation Committee, which is co-chaired by Business Eswatini, Ministry of Commerce, Industry and Trade and Eswatini Revenue Authority.

Speaking during the same event, the Minister of Commerce, Industry and Trade Manqoba Khumalo emphasized on the benefits of the implementation of the AfCFTA Agreement and that the Strategy will speed-up the process where Eswatini products would have access to all the AU member states market.

According to statistics, Eswatini’s intra-continental exports only accounts for 15 per cent while exports to South Africa are at around 80 percent.

Cabinet Ministers raised pertinent issues important for Eswatini to improve its participation in the intra-continental trade such as inclusive trade where more women, people living with disabilities and the youth can benefit from the intra-Africa trade.

In ensuring that all Emaswati benefit from this trade Agreement, the Ministry of Commerce, Industry and Trade has started sensitization initiatives to ensure every Liswati understands their role especially with regards to their participation in the value chain processes.

The sensitization campaigns will be done by through the utilization of all possible communication platforms to ensure a wider and far reach of the strategy.

The issue of non-tariff barriers (NTBs) at the country’s entry points especially the Ngwenya Border Post was also highlighted as not only posing an NTB to trade but also to tourists, which then waters down the initiative by Eswatini to be a preferred tourism destination.

However, the Draft Strategy and its implementation plan does cover issues of border management through the implementation of the single window project.

Furthermore, the strategy and its implementation plan would leverage on the already existing trade facilitation initiatives from the regional economic blocs as well as the continent. At continental level, there is a Pan African Payment System governed by Member States Central Banks and Ministries of Finance, which allows for the use of each member state’s currency for payments.

Although the strategy development and implementation is supported by UNECA but there are funds available from the AfCFTA Adjustment Fund Eswatini can access when necessary and government through its budgetary system can also support the implementation of the strategy through the implementation of its usual activities.

The Draft AfCFTA National Strategy and Implementation Plan is preceded by a sensitization workshop for all parliamentarians today for them to be up to speed with the Agreement as well as the strategy and implementation plan.

For more information contact
The International Trade Department
Ministry of Commerce, Industry and Trade
Gwamile Street, between DPM’s Office and Eswatini Bank
Phone: 240401808/9
www.itdswaziland.org
https://eswatinitradeportal.gov.sz/

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