Enhancing Private Sector Associations’ Support for African Continental Free Trade Area

Enhancing Private Sector Associations’ Support for African Continental Free Trade Area

In pursuit of the African Continental Free Trade Area (AfCFTA) overall mandate of creating a single continental market by eliminating trade barriers and boosting intra-Africa trade, TMA organized a dynamic two-day collaboration, learning, and adaptation (CLA) event in Nairobi, Kenya. Supported by the USAID-funded Economic Recovery and Reform program, the event explored the crucial role of private sector apex organizations (PSOs) in supporting businesses to trade under AfCFTA, share lessons learned from companies trading under the AfCFTA Guided Trade Initiative (GTI), and propose strategies to ensure the sustainability of support provided by apex organizations to businesses.

Companies leveraging the AfCFTA, such as Associated Manufacturers (EA) LTD, Kenya Tea Development Agency (KTDA), and Igire Coffee Limited, shared various benefits, such as access to new markets, market expansion, reduced trade tariffs, and competitive market pricing due to subsidized duty. However, cross-cutting challenges included a lack of awareness about export and import procedures, multiplicity of agencies and regulators across countries, logistical and transportation challenges, and exchange rate fluctuations that delay goods movement due to delayed transactions. 

The event brought together diverse participants from Burundi, DR Congo, Djibouti, Ethiopia, Kenya, Rwanda, Somaliland, Tanzania, and Uganda. 

The event yielded the following significant outcomes for the participants:

  • Better understanding of the role of PSOs in the AfCFTA, which will inform program designs for Apex institutions in implementing the AfCFTA.
  • Successful business matchmaking occurred between Tanzania Horticulture Exporters (represented by TAHA) and DRC traders (represented by CIPA) for the supply of avocadoes and onions, resulting in valuable market linkages. TMA will follow up on trade realized due to these engagements; and
  • Awareness and information sharing on export and import processes and procedures were provided by organizations experienced in trading under the GTI, empowering participants with practical insights.