THE FRIDGE FACTORY FIRST TO TRADE UNDER AFCFTA

EZULWINI – The Fridge Factory in Matsapha is the first local company to start trading under the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative (GTI).

This was revealed by the Minister of Commerce, Industry and Trade, Manqoba Khumalo, during a press conference held at the Happy Valley Hotel yesterday. The minister was addressing the media along with the visiting AfCFTA Secretary General (SG) Wamkele Mene, who is in the country for the ongoing Eswatini International Trade Fair (EITF). Khumalo stated that when Mene was in the country last year in March, they decided to work on a specific company to showcase to other local companies that they could access more markets once they have the AfCFTA trading certificate.

Report

“We are very happy to report that this company has been awarded the certificate and it has started trading under AfCFTA,” said the minister. He said they now want to use that example that indeed the fridge manufacturing company is now able to send its products to certain countries that prior to AfCFTA could not access but now they are able to do so. Khumalo added that they have also seen a huge appetite from other companies to get into the queue to get the AfCFTA trading certificate. The minister said indeed, the country is making meaningful progress with regard to taking advantage of the AfCFTA. He said, however, that it requires concerted efforts and consistent focus from government to ensure that this journey is accelerated.

It is worth noting that last year, in March, government launched the national AfCFTA implementation strategy that provides a road map for Eswatini to maximise its benefits under the AfCFTA, targeting an annual regional export growth of at least 10 per cent. Eswatini is forging towards becoming a well-diversified economy and is on course to diversify its manufacturing base, which accounts for 37 per cent of gross domestic product (GDP)—the highest in the southern African region.

Propels

Thus, Eswatini’s AfCFTA implementation strategy builds on existing efforts and propels the small landlocked country towards increasing its local production base and export orientation.
Speaking during the launch, Acting Chief, Sub-regional Initiatives Section Economic Commission of Africa, Sub-regional Office for Southern Africa, Dr Mzwanele Mfunwa, said the launch accentuated Eswatini’s commitment to leverage the AfCFTA and harness its full potential. He stated that the AfCFTA was not merely about trade but was a powerful engine for economic growth and structural transformation, increasing productive capacities, poverty reduction, and job creation, among other socio-economic benefits, with rising income for marginalised groups including women, youth, persons with disabilities, rural populations and MSMEs.

Meanwhile, Dr Thambo Gina, who was the Acting Minister of Commerce, Industry and Trade, said as a way of increasing the country’s trade and investment opportunities under the AfCFTA, the Kingdom of Eswatini has seen it prudent to develop a national implementation strategy and action plan that charts a pathway for the business community to reap the benefits of the agreement.

Strategy

Dr Gina said the strategy identifies priority export products and services with high export potential, key value chains, value-added, and trade opportunities, as well as constraints, measures and capacities required for the country to take full advantage of the national, bilateral, regional and global markets within the context of the AfCFTA. He added the strategy highlights cross-cutting issues including gender, youth, MSMEs, digital transformation, as well as climate change, in order to ensure inclusivity and sustainability. Further, it recommends the establishment of a National AfCFTA Implementation Committee (NIC) whose overall mandate is to oversee implementation of the strategy and a monitoring and evaluation framework that will track progress on the implementation of the agreement. The Kingdom of Eswatini, as a member of the African Union (AU), signed the agreement establishing the AfCFTA in March 2018 during the Summit of Heads of State and Governments, held in Kigali, Rwanda.

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