Farirai Machivenyika — The Africa Continental Free Trade Area (AfCFTA) secretariat has approved Zimbabwe's provisional schedules of tariff concession, paving way for the country to start trading, Foreign Affairs and International Trade Minister, Ambassador Frederick Shava, said yesterday.
He was speaking at a breakfast meeting organised by the Zimbabwe Economic Society and the Friedrich-Ebert Stiftung, which ran under the topic, "Perspectives on opportunities and challenges for Zimbabwe under the AfCFTA". Said Ambassador Shava: "This is in view of the fact that Zimbabwe is now close to commencing preferential trading under the AfCFTA, following the technical verification of the country's provisional schedules of tariff concession by the AfCFTA Secretariat.
"This is one of the key prerequisites for a State party to commence preferential trading under the AfCFTA."
The Protocol on Trade in Goods to the AfCFTA Agreement mandates AfCFTA State parties to adopt tariff concession schedules showing the tariff lines that will be liberalised in intra-Africa trade with the progression in the reduction of customs duties from the ordinary rates to zero percent, over a period ranging from five years to 15.
The AfCFTA, which was established in 2018, creates a single continental market for goods and services in Africa.
It further aims to reduce trading problems such as different regulations from one African country to another.
"As you are already aware, the AfCFTA is the world's largest free trade area whose estimated population of 1,3 billion people and combined GDP of approximately US$3,4 trillion offers great trade and investment opportunities to the outside world.
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"In this regard, the AfCFTA seeks to eliminate trade barriers among member States and enhance trade liberalisation, while promoting structural transformation. Importantly, it endeavours to advance trade in value-added products across the continent and beyond," Ambassador Shava added.
e said that with the increase in intra-Africa trade, the AfCFTA unlocks opportunities for both local and global businesses to enter and expand into new markets, while consolidating their footprints in existing markets.
"Opportunities, therefore, exist for Zimbabwean businesses to exploit in the African market, as well as attract Foreign Direct Investment in various sectors of the economy," Ambassador Shava said.
"Currently, trends in the automotive sector reveal a high demand for electric vehicles. With abundant mineral resources that are vital raw materials for the manufacture of electric vehicles, Zimbabwe is primed to play a significant role in the automotive value chain. For instance, Zimbabwe can be a hub for the manufacture of lithium and steel-related components, given the abundance of these minerals in the country."
A study on the African automotive value chain that was done by the African Export and Import Bank (Afreximbank), AfCFTA Secretariat and African Association of Automotive Manufacturers (AAAM), identified several Zimbabwean companies as significant potential players which can contribute towards the African automotive value chain.
These are Chloride Zimbabwe, United Springs, Supreme Gaskets and Kabot Brothers.
