The Namibia Trade Forum (NTF) has cautioned that more work needs to be done for Namibia to fully realise the opportunities presented within the African Continental Free Trade Area (AfCFTA).
This comes after Namibia exported its first consignment under the programme, shipping 45 000 tonnes of salt to Nigeria.
While the achievement has been lauded, only one local company, the Walvis Bay Salt Company, took part.
The initial shipment of salt will serve as a proof of concept for other Namibian goods and services going forward as new markets become available.
NTF acting chief executive Rodney Hoaeb says to be competitive in the larger African market, Namibian companies need to ensure their products are truly export ready and thoroughly meet the standards of the targeted market.
“I believe in Namibia there are some products which are made or manufactured without fully realising [these requirements] and going through the entire value chain.
There are a lot of products out there, and if that is not the case, it becomes a challenge in terms of price competitiveness,” he says.
Another vital area to address now that the AfCFTA has been implemented is the harmonisation of banking instruments.
To flourish, Hoaeb says the assurance that money can be sent and received across Africa in safe and affordable ways is needed.
He advocates for services, rather than just physical products, to make use of the agreement.
“Why? Because of Africa’s development will have to come from Africa itself. We have witnessed the recent Covid-19 pandemic and also the tariff impositions – this type of global instability is a motivation for Africa to look at solutions inside,” he says.
The AfCFTA has been described as not only an economic opportunity, but also an opportunity for Namibia to learn from other African nations and benefit from the lessons they have learnt in terms of relying less on outside assistance, he says.
Namibia has been moving towards participation in the AfCFTA for several years, first signing the agreement on 2 July 2018, ratifying it on 25 July 2019, and depositing its instrument of ratification on 1 February 2019.
Currently, the trade agreement encompasses all 55 African nations with the goal of promoting intra-African trade.
This will reduce tariffs and remove barriers to trade within the agreed upon area, as well as implement trade facilitation measures.
Its objectives further include creating a unified market for goods, promoting sustainable economic growth and addressing trade inefficiencies.
“The AfCFTA stands as one of the most ambitious and visionary undertakings of the African Union. It aims to establish a single market across the continent, facilitating the free movement of goods and services, creating a market of over 1.3 billion people, and unlocking a combined gross domestic product of more than US$3.4 trillion (about N$59 trillion).
“It is the clearest expression of Africa’s determination to take charge of its own development narrative,” Erongo governor Neville Andre said this week.
Minister of international relations and trade Selma Ashipala-Musavyi says Namibia would now have access to African markets beyond its traditional reliance on the Southern African Customs Union and Southern African Development Community blocks.
LESS DEPENDENT
“This broadening of trade horizons allows Namibia to tap into new growth opportunities, diversify its export base, and reduce dependency on a limited market. Additionally, Namibia can build stronger industries through innovation, add value to its raw materials, and integrate into regional and continental value chains, and that’s very important.
“Therefore, this launch is a clarion call to action for our businesses to explore new markets, increase production, and for our youth, the young people, to increasingly innovate,” she said.
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Further, while the government will be lending its full support to the project, Ashipala-Musavyi encouraged the private sector to take ownership of the implementation of the agreement.
She said it is in the hands of businesses, entrepreneurs, manufacturers, service providers, and small and medium enterprises to make use of the opportunities the AfCFTA will provide.
Namibia Ports Authority chief executive Andrew Kanime this week expressed his excitement about the launch.
“Africa’s true potential lies not in trading with overseas partners, but with itself.
This is premised on the fact that intra-Africa trade does not only compound the continent’s growth and development, but it also strengthens the much-needed unity between our sister states within the continent,” he said.