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AFCFTA’S FULL BENEFITS YET TO BE REACHED – FRIDGE FACTORY

16/09/2024 08:16:00 Nhlanganiso Mkhonta

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MBABANE – The true benefits of the AfCFTA are yet to be reached as countries are still phasing out duties that existed prior to the agreement.
This was shared by the Fridge Factory Technical Director Ryden Allmark in an interview with this publication. Recently, the Minister of Commerce, Industry and Trade, Manqoba Khumalo, revealed that this company was one local company to have started trading under the African Continental Free Trade Area (AfCFTA) Guided Trade Initiative (GTI).
The minister was addressing the media along with the visiting AfCFTA Secretary General (SG) Wamkele Mene, who was in the country for the ongoing Eswatini International Trade Fair (EITF). Khumalo stated that when Mene was in the country 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.

Destination

“We are very happy to report that this company has been awarded the certificate and it has started trading under AfCFTA,” said the minister. Allmark confirmed that the Fridge Factory is already using the AfCFTA certificate. He said the certificate is issued for each individual shipment that is sent to the particular destination. “The first time we used an AfCFTA certificate was in 2022,” he said. The director said the whole point of the Africa free trade agreement is to allow trade across the entire continent. He highlighted that Eswatini is part of the Common Market for Eastern and Southern Africa (COMESA) as well as SADC.

He said these two agreements allow them to easily trade amongst those member States; however, now with the AfCFTA, they can theoretically reach all African countries.“However, there is a phase-out period of duties that were existing prior to the agreement, and this period is very long,” he said. Allmark shared that it was fairly easy for the company to send to new countries as they are already a large exporter; however, each new country brought its own challenges with regards to documents required and processes required in order to clear the goods. He said they are learning the process for each new country and the next batch of goods sent will then be much easier. When asked about their overall experience, he said the process to get everything was simple; however, it would be great once the AfCFTA has a more digital system like they had when getting their SADC certificate. “But I am sure this will come in the near future,” he said.

Quality

Allmark said the AfCFTA will definitely help Eswatini increase its export revenue. He said the agreement opens up new markets, as long as there is a drive and education about the new system (which fortunately there is in Eswatini) for local companies, there will be an increase. He added that Africa is a huge market. He encouraged other local companies that, as long as they have a quality product for the right price, the best way to tap into a market is to jump in and try. “Don’t limit your sales to just within your own country,” he said.
It is worth noting that 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 the gross domestic product (GDP)—the highest in the southern African region. 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 incomes for marginalised groups including women, youth, persons with disabilities, rural populations and micro, small and medium enterprises (MSMEs). The country’s AfCFTA 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.