‘Weak trade facilitation, border management impedes Zim’
TENDAI BHEBE IN BULAWAYO
The World Bank says weak trade facilitation and border management is impeding Zimbabwe’s prospects of benefiting from the continental single market, the African Continental Free Trade Area (AfCFTA).
Speaking at a stakeholders meeting in Bulawayo this week, World Bank’s country economist, Marko Kwaramba, said: “Weak trade facilitation and border management was hindering Zimbabwe from becoming a major player in regional trade and gain from AfCFTA, hence the need to address these issues for the country to benefit from the agreement. However, Zimbabwe’s export performance has improved over the last several years. Productivity premium was, however, low.”
He also urged Zimbabwe authorities to implement tariff reductions required within the AfCFTA.
He said the reduction of non-tariff measures and the implementation of trade facilitation measures would bring the biggest benefits to Zimbabwe.
“The creation of the AfCFTA vast regional market is a major opportunity for Zimbabwe to diversify exports, grow faster and attract foreign direct investment,” Kwaramba said.
The country, Kwaramba said, can reap good rewards from the AfCFTA.
The single continental market is expected address economic challenges and social problems such as poverty in the country.
“It’s not only the firms that will benefit from AfCFTA. Once firms start benefiting, that means poverty will be reduced,” Kwaramba said.
He also highlighted that the creation of AfCFTA was a major opportunity for Zimbabwe to diversify exports, grow faster and attract foreign direct investment (FDI).
“Zimbabwe’s exports of processed foods, agriculture, and manufacturing stand to gain the most in terms of exports to AfCFTA partners supporting the development of intra-regional value chains,” said Kwaramba.
He added: “There is a need to address macro-economic challenges such as the exchange rate discrepancies and the runaway annual inflation.”
The AfCFTA is touted as the world’s biggest single market with 1.2bn people expected to contribute US$3 trillion annually to the continent’s gross domestic product.
