This archive report was first published on 15 July 2020.
With the COVID-19 pandemic causing unprecedented disruptions to global trade, African countries must seize the opportunity to deepen economic ties and promote intra-Africa trade through the African Continental Free Trade Area (AfCFTA).
As the African Growth and Opportunity Act (Agoa) lapses in 2025, Kenya and other African countries must prepare for a transition to the AfCFTA to complement the continent's economic growth. The pandemic has posed significant challenges to the implementation and vision of the AfCFTA, but it also presents an opportunity for stronger collaboration and specific policies to mitigate its effects.
According to Richard Ngatia, President of the Kenya National Chamber of Commerce and Industry (KNCCI) and Chairman of the Great Lakes Region (GLR) Private Sector Forum (PSF), the business community is ready and willing to support governments and political leadership to realise the benefits of AfCFTA.
Ngatia notes that the pandemic has led to a shift in production in various value chains, with many textile firms changing from making garments to face masks and personal protective equipment. He argues that the business community must identify opportunities to promote intra-Africa trade in various sectors and work best through the AfCFTA framework.
Integration for Africa is the only way to reposition the continent as a ready market through intra-Africa trade, which means further trade liberalisation, removal of trade barriers, and better trade practices amongst all African countries. The business community is ready to support respective governments and political leadership to realise this.
Ngatia concludes that the inevitable high market integration at this age of globalisation is bound to present unlimited investment opportunities, technology transfer, foreign direct investments (FDIs), flow of labour and capital, and increased employment opportunities through exports and imports.
Ultimately, creating a wide entrepreneurial community by strengthening human resource capacity in the region, improving investor programmes, and providing sound infrastructure and supply of talented human capital is crucial for the success of AfCFTA.
