…. AfCFTA could unite Africa with E3. 3 billion continental GDP
BY DELISA THWALA
MBABANE– The United Nations Development Programme (UNDP) Eswatini is exploring opportunities for e-commerce for Micro, Small and Medium Enterprises (MSMEs) under the newly-established African Continental Free Trade Area (AfCFTA).
This is the brainchild of the African Union (AU). Founded in 2018 with the aim of boosting Africa’s trading position in the global market, trading under the AfcFTA started in January 2021.
To fulfil its mandate of supporting the Government of the Kingdom of Eswatini to eradicate poverty by creating sustainable jobs, UNDP Eswatini is eyeing AfCFTA to allow local MSMEs access to the continental market.
This follows the signing of the partnership agreement between the United Nations Development Programme (UNDP) and the AfCFTA Secretariat on March 29, 2021.
The partnership agreement was signed by UNDP Regional Director for Africa, Ms. Ahunna Eziakonwa, and AfCFTA Secretary General, Wamkele Mene, who was accompanied by Ambassador Fatima Mohammed Kyari, Permanent Observer of the AU to the United States.
The aim of the partnership agreement is to promote trade as a stimulus for Africa’s socioeconomic recovery from the COVID-19 crisis, and as a driver of sustainable development, particularly for women and youth in Africa, in line with the SDGs and Agenda 2063, Africa’s development blueprint.
The agreement between the two parties came shortly after Eziakonwa’s virtual mission to the Kingdom of Eswatini on March 22-26 where she met with different partners including senior government officials such as Deputy Prime Minister (DPM) Themba Nhlanganiso Masuku. She also participated in the launch of the new Country Programme Document (CPD) for the Kingdom of Eswatini 2021-2025.
In light of these developments, UNDP Eswatini’s Resident Representative, Rose Ssebatindira, convened an engagement meeting between the country office and the Africa E-Trade Group (AeTrade) to discuss possible collaborations that could allow Eswatini traders access to the continental market under AfCFTA.
“At a global level, we are already in partnership with the trade agreement and my team and I are very keen to see how this translates at a country level,” said Ssebatindira.
AeTrade was formed 11 years ago by a group of Africans in the diaspora who collaborated with the AU in 2018 by signing a Memorandum of Understanding for a partnership to help businesses in the informal sector transition to formality in all 54 member states through digital means.
As noted by the UNDP staff, MSMEs in Eswatini, like their peers in other countries on the continent, face numerous structural barriers when trading within Africa, including high tariffs, cumbersome customs processes, unreliable payment systems, breach of contracts and poor adherence to standards.
AeTrade works on addressing these barriers. AeTrade Chief Executive Officer and Chairperson, Mr. Mulualem Syoum, told the UNDP Eswatini that streamlining and digitizing services will enhance trade within the continent. He said there should be a focus in the digital infrastructure to allow connectivity for the ease of doing business.
“Africa is the richest continent in the world, but we need the infrastructure to make the most of it,” he said, adding: “This will allow Africans to manage their own resources rather than having to export raw materials.
He said the aim is to create 22 million jobs by enabling 600 000 entrepreneurs from African countries to access regional, continental and global markets.
