EABC’s Peter Mathuki on what the AfCFTA means for the private sector

Regional integration has remained a key objective pursued by many African countries as a means to sustainably develop economies. The African Continental Free Trade Area (AFCFTA) stands as a crucial stage in achieving these objectives. CNBC Africa recently had a conversation with Peter Matuki, the CEO and Executive Director at the East African Business Council, to delve into how the region's private sector can capitalize on the opportunities presented by the AFCFTA. Matuki highlighted the immense potential AFCFTA holds for businesses in the region, emphasizing the market of about 1.3 billion people in Africa and a combined GDP of approximately 3.9 trillion US dollars. This landmark initiative shifts the focus from a nationalistic and sub-regional mindset to a unified African approach, opening doors for businesses to operate on a continental scale. The AFCFTA presents a transformative opportunity for businesses to tap into a vast market exceeding 1.3 billion individuals. Matuki underscored the strategic role of the private sector in driving the proper implementation and exploitation of AFCFTA. As the apex body of the private sector in East Africa, the African Business Council is poised to mobilize stakeholders and entrepreneurs to navigate and harness the potential of this expansive market. The COVID-19 pandemic served as a learning curve, prompting companies to explore local production capabilities and reduce reliance on external sources. Matuki advocated for closer collaboration between the private sector and governments to fully leverage the region's resources and manufacturing capacities. By aligning with government policies and promoting intra-African trade, businesses can stimulate economic growth and resilience within the continent. Matuki also highlighted the need for African countries to tap into their unique strengths, such as Rwanda's burgeoning tourism sector, to bolster self-reliance and offer homegrown solutions. The integration brought about by the AFCFTA heralds a new era of opportunity for African economies, empowering them to cater to their needs and enhance trade within the continent. Despite the challenges faced by regional economic blocs like the East African Community (EAC) and Southern African Development Community (SADC), Matuki expressed confidence in leveraging the lessons learned to strengthen inter-regional cooperation and trade frameworks under the AFCFTA. He emphasized the importance of unity and policy harmonization to facilitate seamless business operations across borders, underscoring the collective effort needed to realize the full potential of the AFCFTA. Looking ahead, Matuki called for enhanced collaboration between the public and private sectors to ensure a unified approach towards AFCFTA implementation. By fostering inclusivity, transparency, and a shared vision for future generations, African economies can pave the way for sustainable growth and prosperity. The political goodwill demonstrated by African leaders signals a promising trajectory towards a cohesive and thriving business environment through AFCFTA. With unwavering support from the private sector, AFCFTA promises to unlock Africa's economic potential and drive prosperity for years to come.