Mthuli pushes for stronger regional trade blocs

ROBIN PHIRI

Zimbabwe’s Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, has urged African nations to strengthen regional trade blocs to counter the challenges posed by escalating geopolitical tensions and growing trade protectionism, Business Times can report.

Professor Ncube emphasised the urgency of accelerating regional economic integration to safeguard Africa’s economic interests.

“The global economic landscape has shifted significantly. Africa must act decisively to deepen regional integration—not just defensively, but as a proactive strategy to harness our continent’s full economic potential,” Professor Ncube stated.

He highlighted the African Continental Free Trade Area (AfCFTA) as a critical vehicle for economic resilience. He noted that fully implementing the AfCFTA would reduce Africa’s dependence on external markets, drive sustainable industrialisation, and create a more self-reliant economic framework.

However, he acknowledged that implementation remains uneven due to structural barriers, inadequate infrastructure, and limited access to trade finance. To address these gaps, he called for a reform of the global financial architecture, making it more responsive to the needs of Africa and other developing economies.

“Aligning national policies with regional integration commitments will bolster economic resilience and foster investor confidence in African markets,” Professor Ncube asserted.

Despite the AfCFTA’s promise, Professor Ncube underscored the persistent structural challenges hindering regional trade integration. These include weak transport and energy infrastructure, which raises trade costs, limited trade finance, restricting access to capital for businesses and regulatory misalignment, slowing cross-border trade.

To tackle these issues, he urged greater investment in infrastructure projects that connect African markets and streamline customs and regulatory frameworks to enhance trade efficiency.

Professor Ncube also stressed the importance of domestic resource mobilisation, arguing that African nations must leverage internal economic potential rather than relying excessively on foreign loans and aid. He emphasised the need for strengthening tax revenue collection mechanisms, enhancing public-private partnerships to attract investments and developing capital markets to mobilise domestic savings for infrastructure projects

“By mobilising domestic resources, African economies can fund their own growth and reduce dependency on external financing, which often comes with restrictive conditions,” Professor Ncube explained.

In addition to financial reforms, Professor Ncube called for leveraging digital innovation and green industrialisation to drive Africa’s long-term growth. He outlined several strategic priorities including expanding digital trade platforms, improving fintech solutions to enhance cross-border transactions and investing in sustainable energy projects and climate finance to ensure long-term economic sustainability

“Africa cannot afford to remain on the margins of the global economy. We must act now to address our economic challenges and seize the opportunities presented by the AfCFTA and other regional integration initiatives,” he emphasized.

Professor Ncube’s remarks underscore the urgent need for Africa to take bold steps in reshaping its economic future. By strengthening regional trade blocs, investing in critical infrastructure, and embracing digital and green industrialisation, Africa can build economic resilience and unlock its full potential in the face of growing global uncertainties.