The African Continental Free Trade Area (AfCFTA) is a landmark agreement that aims to create a single market for goods and services in Africa, with a population of over 1.3bn people and a combined GDP of over $3 trillion.
The AfCFTA promises to boost intra-African trade, industrialisation, economic diversification, and development.
However, many small and medium enterprises (SMEs) in Zimbabwe and other African countries face challenges and barriers to accessing and exploring new and untapped markets across the continent.
These include a lack of information, high tariffs, complex regulations, non-tariff barriers, poor infrastructure, and low digital literacy.
To address these challenges and empower SMEs to take advantage of the opportunities offered by AfCFTA, the Zimbabwe National Chamber of Commerce (ZNCC), in collaboration with the International Trade Centre (ITC) and the Comesa Business Council (CBC) organised a three-day training on Market Analysis using the African Trade Observatory (ATO) at the Rainbow Towers Hotel from May 8 to 10, 2023.
The ATO is a digital portal that provides businesses with relevant, factual, and real-time trade and market information to help them enter new markets and take advantage of emerging opportunities. The ATO also provides information on regulations, tariffs, and potential markets for different products and services.
The training was attended by over 50 SMEs from various sectors, such as creative and cultural industries, agriculture, manufacturing, services, and tourism. The participants received a certificate in market analysis using the ATO after completing the training.
The participants expressed their satisfaction and appreciation for the training, saying that it was very beneficial and eye-opening for their businesses.
They said that the training changed their vision of only exporting to Europe and made them interested in exporting within Africa using the ATO.
They said that they learned how to identify and compare markets for their products, how to access detailed market access information, how to source raw materials from other countries as part of the regional value chain, and how to do their market research or analysis from home or the office using a laptop and data.
They also said that they were ready to take their products to the African market with the help of this tool.
Some of the participants who shared their testimonies included Zachary Tambudzai from the Bindura University of Science Education (BUSE), who said: “The training was instrumental in empowering SMEs to navigate new potential opportunities available and untapped markets across the African continent in terms of trade in goods and services. The training directly contributed to the acceleration of the implementation of the AfCFTA by bridging the information gap among the SMEs in Zimbabwe.”
Caroline Masvingise Godzongere from Picmost Collection said: “The ATO training gave me the relevant information that I need so that I can trade freely across Africa. The tool helps me explore and tap into the potential markets under the AfCFTA. The biggest lesson I learned is that I can make it in Zimbabwe while exporting my products to other African markets, not just Europe, because African markets are proximate and we share the same cultures, which makes the ease of doing business possible and explorable.”
Buhlenkosi Ostlea Nyathi from Competetive Brand Shapers and OrganiSation of Women in Trade-Zimbabwe (OWIT-Zimbabwe), said: “The training was so beneficial to me as an exporter. It empowers my business to identify and compare markets for my products and access detailed market access information to help me enter new markets. It allows me to take advantage of emerging opportunities, by accessing relevant, factual, and real-time trade and market information. As the president of OWIT-Zimbabwe, I promise to teach my members to understand the opportunities that the ATO brings and to contribute to the achievement of Agenda 2063, Zimbabwe’s Vision 2030, and UN Agenda 2030.”
Hopewell Masundire from CBC said: “The training bridged the information lacuna among SMEs on how to export or import, where to export or import goods and services under the AfCFTA. The ATO platform gives businesses a clear picture of the regulations and tariffs applied to their respective products, and the potential that exists within the continent. Digital literacy is very important to SMEs to catch up with digital trade in the era of the 4th industrial revolution. This is one way of bypassing non-tariff barriers they face in trade, such as bureaucracy, delays, and unnecessary costs from third party players, hence ensuring their profits and sustainability.”
The training was also graced by the presence of Mr. Christopher Mugaga, the CEO of ZNCC, who called on the media to report and highlight the role of SMEs in the country’s economy. He also said that this training was one of the many trainings offered by ZNCC to benefit its members and improve their businesses.
Industry and Commerce minister Sekai Nzenza who was absent, sent a message of appreciation to ZNCC for complementing the government’s efforts by providing such vital training that are important for achieving the National Development Strategy 1 (NDS 1), a strategy that contributes to Vision 2030 of an upper-middle-income economy.
She also said that the government was doing a lot of projects to ensure that Zimbabwean businesses could access new markets. She mentioned some of the projects, such as the dualisation of the Chirundu – Beitbridge road, which connects Zimbabwe to Zambia and South Africa, the expansion of the Robert Gabriel Mugabe International Airport, which will increase its capacity and efficiency, and the expansion of the Beitbridge border post, which will reduce congestion and delays at the busiest border crossing in Southern Africa.
Nzenza also said that the ministry was improving ICT facilities, providing finance, improving infrastructure, and financing SMEs to prepare for AfCFTA. She said the government was creating a knowledge-driven economy by providing different training, signing agreements, doing export promotion and readiness training, and collaborating with the private sector.
The training on market analysis using the ATO was a success and a milestone for the SMEs in Zimbabwe who are eager to participate in the AfCFTA. The training equipped them with the skills and knowledge to use the digital tool to access and explore new and untapped markets across the continent. This also inspired them to change their vision of only exporting to Europe and embrace the opportunities offered by AfCFTA.
The training was a collaborative effort by ZNCC, ITC, and CBC, committed to supporting SMEs in their trade endeavors.
The training was also appreciated by the government, which is working hard to improve the business environment and infrastructure for Zimbabwean businesses.
The training was a step towards achieving Vision 2030 of an upper-middle-income economy and a knowledge-driven economy for rapid industrialisation and modernisation.
Tanatsiwa Dambuza is a graduate with MSc in International Trade and Diplomacy and a Regional Integration Expert and Consultant with special focus on AfCFTA, SADC, EAC and COMESA. He is the Founder of Zimbabwe Institute of African Integration and an advocate for youth, women and SMEs inclusion in regional trade negotiations and processes. He can be contacted on tanatsiwadambuza62@gmail.com or +263779988050
