AFCTA: How to drive East Africa’s competitiveness

East African nations are lagging behind in competitiveness, with Kenya ranked 115 out of 152 countries, according to a recent UN study. This poses a significant challenge to the effectiveness of the African Continental Free Trade Agreement (AfCTA) for regional businesses. Victor Otieno, Managing Director at Viffa Consult, emphasizes the importance of preparedness and proactive measures to leverage the opportunities presented by the AfCTA. Otieno highlights the need for East African countries to align their local legislation with the spirit of the trade agreement and emphasizes the role of existing trading blocks like EAC, ECOWAS, and SADC in supporting the AfCTA. The AfCTA aims to boost intra-Africa trade and enhance Africa's position in global trade by leveraging existing regional partnerships. Despite the slow progress in enacting necessary laws, Otieno encourages countries in the region to take progressive steps towards full implementation. The interview with Otieno also delves into the readiness of small and medium enterprises (SMEs) in the region to seize the opportunities presented by the AfCTA. Otieno points out that SMEs face significant challenges, with a high mortality rate and limited access to capital and market intelligence. He suggests that SMEs can aggregate or collaborate under cooperatives to enhance their capital base and improve their advocacy efforts. By coming together, SMEs can pool resources for research and market analysis, enabling them to identify new markets and diversify their product offerings. Otieno emphasizes the importance of SMEs taking the lead in advocating for a conducive business environment, rather than waiting for government intervention. He believes that a collective effort by SMEs and the private sector can exert pressure on governments to address trade barriers and create a more enabling environment for businesses to thrive. By empowering SMEs to drive the conversation and engage with policymakers, East Africa can unlock the full potential of the AfCTA and enhance the region's competitiveness in the global marketplace.